Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 20, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CARA | ||
Entity Registrant Name | Cara Therapeutics, Inc. | ||
Entity Central Index Key | 1346830 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 22,824,919 | ||
Entity Public Float | $226,478,179 |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $52,663 | $12,357 |
Income tax receivable | 200 | 61 |
Prepaid expenses | 287 | 2,140 |
Total current assets | 53,150 | 14,558 |
Property and equipment, net | 2,084 | 2,825 |
Restricted cash | 700 | 700 |
Total assets | 55,934 | 18,083 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,946 | 1,958 |
Deferred Revenue | 1,452 | 3,475 |
Total current liabilities | 3,398 | 5,433 |
Deferred lease obligation | 874 | 1,139 |
Commitments and contingencies (Note 18) | ||
Convertible Preferred stock; $0.001 par value; zero shares and 29,402,200 shares authorized at December 31, 2014 and December 31, 2013, respectively; zero shares and 29,186,929 shares at December 31, 2014 and December 31, 2013 issued and outstanding, respectively; aggregate liquidation preference of zero and $65,969 at December 31, 2014 and December 31, 2013, respectively | 65,586 | |
Stockholders' (deficit) equity: | ||
Preferred stock; $0.001 par value; 5,000,000 shares and zero shares authorized at December 31, 2014 and December 31, 2013, respectively; zero shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | ||
Common stock; $0.001 par value; 100,000,000 shares and 50,000,000 shares authorized at December 31, 2014 and December 31, 2013, respectively; 22,802,039 shares and 4,288,243 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 23 | 4 |
Additional paid-in capital | 131,840 | 8,377 |
Accumulated deficit | -80,201 | -62,456 |
Total stockholders' (deficit) equity | 51,662 | -54,075 |
Total liabilities, convertible preferred stock and stockholders' (deficit) equity | $55,934 | $18,083 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Feb. 05, 2014 | Jan. 30, 2014 | Jan. 16, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||||||
Statement of Financial Position [Abstract] | ||||||
Convertible Preferred stock, par value | $0.00 | $0.00 | ||||
Convertible Preferred stock, shares authorized | 0 | 29,402,200 | 26,636,118 | |||
Convertible Preferred stock, shares issued | 0 | 29,186,929 | 29,186,929 | 26,636,118 | ||
Convertible Preferred stock, shares outstanding | 0 | 29,186,929 | 29,186,929 | 26,636,118 | ||
Convertible Preferred stock, aggregate liquidation preference | $0 | $65,969 | $58,530 | |||
Preferred stock, par value | $0.00 | $0.00 | $0.00 | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 0 | |||
Preferred stock, shares issued | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Common stock, par value | $0.00 | $0.00 | $0.00 | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 50,000,000 | |||
Common stock, shares issued | 22,802,039 | 5,750,000 | 4,288,243 | |||
Common stock, shares outstanding | 22,802,039 | 4,288,243 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
License and milestone fees | $302 | $9,637 | $1,190 |
Collaborative revenue | 2,201 | 2,225 | |
Clinical compound revenue | 674 | 102 | |
Total revenue | 3,177 | 11,964 | 1,190 |
Operating expenses: | |||
Research and development | 15,068 | 8,685 | 4,597 |
General and administrative | 6,181 | 3,516 | 2,829 |
Total operating expenses | 21,249 | 12,201 | 7,426 |
Operating loss | -18,072 | -237 | -6,236 |
Interest income (expense), net | 126 | -3,756 | -66 |
Loss before benefit from income taxes | -17,946 | -3,993 | -6,302 |
Benefit from income taxes | 201 | 30 | 31 |
Net loss | -17,745 | -3,963 | -6,271 |
Net loss available to common stockholders: | |||
Basic and Diluted | ($17,745) | ($3,072) | ($6,271) |
Loss per share available to common stockholders: | |||
Basic and Diluted | ($0.85) | ($0.74) | ($1.90) |
Weighted average shares: | |||
Basic and Diluted | 20,965,935 | 4,133,138 | 3,299,993 |
Statements_of_Convertible_Pref
Statements of Convertible Preferred Stock and Stockholders' (Deficit) Equity (USD $) | Total | Junior Convertible Preferred Stock [Member] | Junior A Convertible Preferred Stock [Member] | Initial Public Offering [Member] | Private Placement [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Beneficial Conversion Feature on Convertible Promissory Notes [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Initial Public Offering [Member] | Private Placement [Member] | USD ($) | Initial Public Offering [Member] | Private Placement [Member] | USD ($) | USD ($) | Junior Convertible Preferred Stock [Member] | Junior A Convertible Preferred Stock [Member] | USD ($) |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||
Balance, Value at Dec. 31, 2011 | $58,168 | |||||||||||||||
Balance, Value at Dec. 31, 2011 | -52,064 | 3 | 1,046 | -53,113 | ||||||||||||
Balance, Shares at Dec. 31, 2011 | 26,462,507 | |||||||||||||||
Balance, Shares at Dec. 31, 2011 | 3,236,637 | |||||||||||||||
Issuance of stock, Value | 86 | 86 | 354 | |||||||||||||
Issuance of stock, Shares | 58,061 | 173,611 | ||||||||||||||
Beneficial conversion feature on convertible promissory notes | 2,050 | |||||||||||||||
Stock-based compensation expense | 61 | 61 | ||||||||||||||
Shares issued upon exercise of stock options, Value | 55 | 55 | ||||||||||||||
Shares issued upon exercise of stock options, Shares | 34,000 | |||||||||||||||
Net loss | -6,271 | -6,271 | ||||||||||||||
Balance, Value at Dec. 31, 2012 | -58,133 | 3 | 1,248 | -59,384 | ||||||||||||
Balance, Value at Dec. 31, 2012 | 58,522 | 354 | 58,522 | 2,050 | ||||||||||||
Balance, Shares at Dec. 31, 2012 | 3,328,698 | |||||||||||||||
Balance, Shares at Dec. 31, 2012 | 26,636,118 | 173,611 | 26,636,118 | |||||||||||||
Preferred stock converted to common shares, Value | 4,466 | 1 | 3,574 | 891 | -4,466 | |||||||||||
Preferred stock converted to common shares, Shares | 959,545 | -2,246,743 | ||||||||||||||
Issuance of stock, Value | 7,642 | |||||||||||||||
Convertible promissory notes converted to Series D preferred stock, Value | 3,888 | |||||||||||||||
Issuance of stock, Shares | 2,105,263 | |||||||||||||||
Convertible promissory notes converted to Series D preferred stock, Shares | 2,692,291 | |||||||||||||||
Beneficial conversion feature on convertible promissory notes | 1,382 | |||||||||||||||
Reclassification of beneficial conversion feature | 3,432 | 3,432 | -3,432 | |||||||||||||
Stock-based compensation expense | 123 | 123 | ||||||||||||||
Net loss | -3,963 | -3,963 | ||||||||||||||
Balance, Value at Dec. 31, 2013 | -54,075 | 4 | 8,377 | -62,456 | ||||||||||||
Balance, Value at Dec. 31, 2013 | 65,586 | 354 | 7,642 | 65,586 | ||||||||||||
Balance, Shares at Dec. 31, 2013 | 4,288,243 | |||||||||||||||
Balance, Shares at Dec. 31, 2013 | 29,186,929 | 173,611 | 2,105,263 | 29,186,929 | ||||||||||||
Preferred stock converted to common shares, Value | 65,586 | 13 | 65,573 | -65,586 | ||||||||||||
Preferred stock converted to common shares, Shares | 12,554,171 | -29,186,929 | ||||||||||||||
Issuance of stock, Value | 56,297 | 100 | 6 | 56,291 | 100 | |||||||||||
Issuance of stock, Shares | 5,750,000 | 11,442 | ||||||||||||||
Stock-based compensation expense | 1,371 | 1,371 | ||||||||||||||
Shares issued upon exercise of stock options, Value | 128 | 128 | ||||||||||||||
Shares issued upon exercise of stock options, Shares | 191,800 | |||||||||||||||
Shares issued upon cashless exercise of warrants, Value | 0 | 0 | 0 | 0 | ||||||||||||
Shares issued upon cashless exercise of warrants, Shares | 6,383 | |||||||||||||||
Net loss | -17,745 | -17,745 | ||||||||||||||
Balance, Value at Dec. 31, 2014 | $51,662 | $23 | $131,840 | ($80,201) | ||||||||||||
Balance, Shares at Dec. 31, 2014 | 22,802,039 | |||||||||||||||
Balance, Shares at Dec. 31, 2014 | 0 |
Statements_of_Convertible_Pref1
Statements of Convertible Preferred Stock and Stockholders' (Deficit) Equity (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Initial Public Offering [Member] | |
Sale of common stock, per share | $11 |
Underwriting discounts and commissions and offering expenses | $6,953 |
Private Placement [Member] | |
Sale of common stock, per share | $8.74 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net loss | ($17,745) | ($3,963) | ($6,271) |
Adjustments to reconcile net loss to net cash (used in) provided by operations: | |||
Stock-based compensation expense | 1,371 | 123 | 61 |
Change in fair value of liability under license agreement | -35 | -25 | |
Accrued interest and amortization of beneficial conversion feature on promissory notes | 3,605 | 25 | |
Depreciation & amortization | 783 | 789 | 1,021 |
Deferred rent costs | -265 | -238 | -214 |
Amortization of financing costs | 117 | 4 | |
Loss on sale of property and equipment | 286 | ||
Changes in operating assets and liabilities: | |||
Other receivables | 18 | ||
Income tax receivable | -139 | -30 | 8 |
Prepaid expenses | 388 | -1,736 | 73 |
Restricted cash | 294 | ||
Accounts payable and accrued expenses | -12 | 722 | -1,311 |
Deferred revenue | -2,023 | 3,475 | |
Net cash (used in) provided by operating activities | -17,642 | 2,829 | -6,031 |
Investing activities | |||
Purchases of property and equipment | -42 | -5 | |
Proceeds from sale of property and equipment | 511 | ||
Net cash (used in) provided by investing activities | -42 | -5 | 511 |
Financing activities | |||
Proceeds from convertible promissory notes | 1,462 | 2,538 | |
Financing costs on convertible promissory notes | -70 | -47 | |
Repayment of convertible promissory notes | -311 | ||
Repayment of long-term debt | -307 | -446 | |
Proceeds from sale of common stock | 100 | 86 | |
Proceeds from the exercise of stock options | 128 | 55 | |
Proceeds from initial public offering, net of issuance costs | 57,762 | ||
Net cash provided by financing activities | 57,990 | 8,416 | 2,540 |
Net cash increase (decrease) for the period | 40,306 | 11,240 | -2,980 |
Cash and cash equivalents at beginning of period | 12,357 | 1,117 | 4,097 |
Cash and cash equivalents at end of period | 52,663 | 12,357 | 1,117 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 37 | 20 | |
Noncash financing activities | |||
Conversion of convertible preferred stock to common stock | 65,586 | ||
Reclassification of prepaid IPO costs paid in 2013 | 1,465 | ||
Conversion of convertible promissory notes to Series D convertible preferred stock | 3,888 | ||
Junior Convertible Preferred Stock [Member] | |||
Financing activities | |||
Proceeds from sale of convertible preferred stock | 354 | ||
Junior A Convertible Preferred Stock [Member] | |||
Financing activities | |||
Proceeds from sale of convertible preferred stock | $7,642 |
Business
Business | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Business | 1. Business |
Cara Therapeutics, Inc. (the “Company”) is a clinical-stage biopharmaceutical corporation formed on July 2, 2004. The Company is focused on developing and commercializing new chemical entities designed to alleviate pain and pruritus by selectively targeting kappa opioid receptors. The Company’s primary activities to date have been organizing and staffing the Company, developing its product candidates, including conducting preclinical studies and clinical trials of CR845-based product candidates and raising capital. | |
The Company’s registration statement on Form S-1 (File No 333-192230) relating to its initial public offering (“IPO”) was declared effective by the Securities and Exchange Commission on January 30, 2014. The Company registered the offering and sale of 5,750,000 shares of common stock (including 750,000 shares upon exercise of an option by the underwriters) at a public offering price of $11.00 per share for an aggregate offering price of $63,250. As a result of the IPO, the Company received net proceeds of $56,297 after deducting $6,953 of underwriting discounts and commissions and offering expenses paid by the Company. | |
Prior to the IPO, the Company raised several rounds of equity financing and issued debt, resulting in aggregate net proceeds of approximately $73,309, including $7,642 in connection with a Stock Purchase Agreement, which the Company entered into with Maruishi Pharmaceutical Co., Ltd. (“Maruishi”) in April 2013. In addition, in April 2013, the Company entered into a License Agreement with Maruishi, which added $15,000 in cash (see Note 11, Collaborations). | |
As of December 31, 2014, the Company had unrestricted cash and cash equivalents of $52,663 and an accumulated deficit of $80,201. The Company has incurred substantial losses and negative cash flows from operations in nearly every fiscal period since inception, and expects operating losses and negative cash flows to continue into the foreseeable future. The Company recognized net loss available to common stockholders of $17,745 and had net cash flows used in operating activities of $17,642 for the year ended December 31, 2014. The Company expects that cash and cash equivalents at December 31, 2014 will be sufficient to fund its operations beyond one year. | |
The Company is subject to risks common to other life science companies including, but not limited to, uncertainty of product development and commercialization, lack of marketing and sales history, development by its competitors of new technological innovations, dependence on key personnel, market acceptance of products, product liability, protection of proprietary technology, ability to raise additional financing, and compliance with Food and Drug Administration (“FDA”) and other government regulations. If the Company does not successfully commercialize any of its product candidates, it will be unable to generate recurring product revenue or achieve profitability. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with generally-accepted accounting principles in the United States (“GAAP”) requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from the Company’s estimates and assumptions. Significant estimates include useful lives of fixed assets, the periods over which certain revenues will be recognized, including licensing and collaborative revenue recognized from non-refundable up-front and milestone payments, the determination of prepaid research and development clinical costs and accrued research projects, the amount of non-cash compensation costs related to share-based payments to employees and non-employees and the periods over which those costs are expensed and the likelihood of realization of deferred tax assets. | |||||||||
Fair Value Measurements | |||||||||
The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities. The carrying amount of each of those financial instruments is generally considered to be representative of their respective fair values because of the short-term nature of those instruments. | |||||||||
Current accounting guidance defines fair value, establishes a framework for measuring fair value in accordance with Accounting Standards Codification (“ASC”) section 820, and requires certain disclosures about fair value measurements. | |||||||||
The valuation techniques included in the guidance are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect market assumptions and are classified into the following fair value hierarchy: | |||||||||
• | Level 1 – Observable inputs – quoted prices in active markets for identical assets and liabilities. | ||||||||
• | Level 2 – Observable inputs other than the quoted prices in active markets for identical assets and liabilities – such as quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, or other inputs that are observable or can be corroborated by observable market data. | ||||||||
• | Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable and require the company to develop relevant assumptions. | ||||||||
The following table summarizes the financial assets measured at fair value on a recurring basis as of December 31, 2014 and 2013 and by level within the fair value hierarchy: | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Level 1 | Level 1 | ||||||||
Financial assets | |||||||||
Cash equivalents: | |||||||||
Money market savings account and checking account | $ | 52,663 | $ | 12,357 | |||||
Restricted cash: | |||||||||
Bank Certificate of Deposit | 700 | 700 | |||||||
Total | $ | 53,363 | $ | 13,057 | |||||
The following table represents a rollforward of the fair value of Level 3 instruments (significant unobservable inputs): | |||||||||
Year Ended | |||||||||
December 31, 2013 | |||||||||
Liabilities | |||||||||
Balance at beginning of period | $ | 76 | |||||||
Amounts acquired or issued | — | ||||||||
Net (gains) losses (realized and unrealized) | (76 | ) | |||||||
Net settlements | — | ||||||||
Balance at end of period | $ | — | |||||||
The balance at January 1, 2013 includes (1) the fair value of the contingent call option liability related to the convertible promissory notes ($41) (see Note 7, Convertible Promissory Notes) and (2) the fair value of the liability under the Glasgow License Agreement ($35) (see Note 14, License and Research Agreement). The gain related to the convertible promissory notes was recognized as an offset to interest expense and the gain related to the Glasgow License Agreement was recognized as an offset to R&D expense. | |||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature. | |||||||||
Concentration of Credit Risk | |||||||||
Financial instruments, which potentially subject the Company to significant concentration of credit risk, consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. | |||||||||
Reclassifications | |||||||||
Certain revenue within the Statement of Operations has been reclassified from Collaborative revenue to Clinical compound revenue to conform to the current year presentation. | |||||||||
Property and Equipment | |||||||||
Property and equipment (consisting of computer, office and laboratory equipment, furniture and fixtures, software and leasehold improvements) are stated at cost, net of accumulated depreciation and amortization of leasehold improvements. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the lesser of their useful lives or the life of the lease. | |||||||||
Asset Category | Useful Lives | ||||||||
Computer and office equipment | 5 years | ||||||||
Laboratory equipment | 8 years | ||||||||
Furniture and fixtures | 7 years | ||||||||
Software | 3 years | ||||||||
Leasehold improvements | 10 years | ||||||||
Long-Lived Assets | |||||||||
ASC 360, Property, Plant and Equipment, addresses the financial accounting and reporting for impairment or disposal of long-lived assets. The Company reviews the recorded values of long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. | |||||||||
Common Stock and Convertible Preferred Stock Valuation | |||||||||
Due to the absence of an active market for the Company’s common stock and convertible preferred stock prior to its IPO, the Company utilized methodologies in accordance with the framework of the American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation (the “Practice Aid”) to estimate the fair value of its common stock and convertible preferred stock at various reporting dates and in conjunction with various transactions. Each valuation included estimates and assumptions that required the Company’s judgment. These estimates included assumptions regarding future performance, including the probability of successful completion of preclinical studies and clinical trials and FDA approval of product candidates containing CR845, and the probability and estimated time to complete financing and collaborative transactions. Significant changes to the key assumptions used in the valuations could have resulted in different fair values of common stock and convertible preferred stock at each valuation date. | |||||||||
Revenue Recognition | |||||||||
In general, the Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; the Company’s price to the customer is fixed or determinable; collectability is reasonably assured and delivery has occurred or services have been rendered. | |||||||||
The Company has entered into license agreements to develop, manufacture and commercialize drug products. The terms of these agreements typically contain multiple elements, including licenses and research and development services. Payments to the Company under these agreements may include nonrefundable license fees, payments for research activities, payments based upon the achievement of certain milestones and royalties on any resulting net product sales. There are no performance, cancellation, termination or refund provisions in any of the arrangements that contain material financial consequences to the Company. | |||||||||
The Company records revenue related to these agreements in accordance with ASC 605-25, Revenue Recognition Multiple-Element Arrangements. In order to account for these agreements, the Company identifies the deliverables included within an arrangement and evaluates which deliverables represent separate units of accounting based on whether certain criteria are met, including whether the delivered element has stand-alone value to the counterparty. The consideration received is then allocated among the separate units of accounting based on each unit’s relative selling price. The identification of individual elements in a multiple-element arrangement and the estimation of the selling price of each element involves significant judgment, including evaluation as to whether each delivered element has standalone value. | |||||||||
The Company determines the estimated selling price for deliverables within each agreement using vendor specific objective evidence (“VSOE”) of selling price, if available, or third party evidence (“TPE”) of selling price if VSOE is not available, or the Company’s best estimate of selling price, if neither VSOE nor TPE is available. Determining the best estimate of selling price for a deliverable requires significant judgment. Because the Company does not have VSOE or third party evidence of selling price to determine the estimated selling price of a license to its proprietary technology, it typically uses its best estimate of a selling price to estimate the selling prices for licenses to its proprietary technology. In making these estimates, the Company considers market conditions and entity-specific factors, including those contemplated in negotiating the agreements, as well as internally developed estimates that include assumptions related to the market opportunity, estimated development costs, probability of success and the time needed to commercialize a product candidate pursuant to the license. In validating its best estimate of selling price, the Company evaluates whether changes in the key assumptions used to determine its best estimate of selling price will have a significant effect on the allocation of arrangement consideration between deliverables. The Company recognizes consideration allocated to an individual element when all other revenue recognition criteria are met for that element. | |||||||||
Arrangement consideration allocated to license deliverables that represent separate units of accounting is recognized as revenue at the outset of the agreement assuming the general criteria for revenue recognition noted above have been met. Arrangement consideration allocated to license deliverables which do not represent separate units of accounting is deferred. The Company has determined that its license deliverables represent separate units of accounting because the counterparty has the right to sublicense and manufacture in its territory, as defined. | |||||||||
Arrangement consideration allocated to research and development services which represent separate units of accounting is recognized as the services are performed, assuming the general criteria for revenue recognition noted above have been met. The Company has determined that its research and developments services deliverables, as applicable, represent separate units of accounting because similar services are sold separately by other vendors. | |||||||||
The Company’s license agreements include contingent milestone payments related to specified clinical development milestones and regulatory milestones. Development milestones are payable when a product candidate initiates or advances into different clinical trial phases. Regulatory milestones are payable upon submission for marketing approval with the FDA or other countries’ regulatory authorities or on receipt of actual marketing approvals for the compound or for additional indications. At the inception of each agreement that includes milestone payments, the Company evaluates whether each such payment is a milestone payment as defined by ASC 605-28, Revenue Recognition – Milestone Method, because achievement requires performance by the Company and, at inception of the arrangement, there is substantive uncertainty that the event will be achieved, or whether the payment is a contingent payment, because achievement requires performance by the counterparty. | |||||||||
If the payment meets the criteria of a milestone payment, the Company evaluates whether such milestone is considered to be substantive. This evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) the entity’s performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, (b) the consideration relates solely to past performance and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. The Company evaluates factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the respective milestone and the level of effort and investment required to achieve the respective milestone in making this assessment. | |||||||||
The Company recognizes substantive milestone payments as revenue upon the achievement of the milestone, assuming all other revenue recognition criteria are met. If any milestone payment is considered not to be a substantive milestone or is considered to be a contingent payment, the Company initially defers the milestone payment, allocates it to the deliverables based on relative selling price in the same proportion as at inception of the agreement, immediately recognizes revenue to the extent of any delivered elements and recognizes the portion attributable to any undelivered elements over the remaining term of its performance obligations. If no such performance obligations exist, milestones that are considered not to be substantive or are considered to be contingent payments are generally recognized as revenue upon achievement, assuming all other revenue recognition criteria are met. | |||||||||
Royalty revenue is recognized when earned. To date, no royalties have been earned or were otherwise due to the Company. | |||||||||
Research and Development Expenses | |||||||||
Research and development (“R&D”) costs are charged to expense as incurred. Costs incurred under agreements with third parties are charged to expense as incurred in accordance with the specific contractual performance terms of such agreements. Research and development expenses include, among other costs, salaries and other personnel-related costs, costs to conduct clinical trials, costs to manufacture product candidates and clinical supplies, laboratory supplies costs and facility-related costs. Non-refundable research and development advance payments are deferred and capitalized as prepaid R&D expense. The capitalized amounts are expensed as the related goods are delivered or services are performed. As of December 31, 2014 and 2013, the Company recorded $177 and $262 as prepaid R&D expense, respectively. | |||||||||
Income Taxes | |||||||||
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred income tax assets are reduced, as necessary, by a valuation allowance when management determines it is more likely than not that some or all of the tax benefits will not be realized. | |||||||||
The Company applies the provisions of ASC 740, Income Taxes, which prescribes a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. The financial statements reflect expected future tax consequences of such positions presuming the taxing authorities possess full knowledge of the position and all relevant facts. There were no material uncertain tax positions taken as of December 31, 2014 and December 31, 2013. The Company does not have any interest or penalties accrued related to tax positions as it does not have any unrecognized tax benefits. In the event the Company determines that accrual of interest or penalties are necessary in the future, the amount will be presented as a component of interest expense. | |||||||||
Stock-Based Compensation | |||||||||
The Company grants stock options to employees, non-employee members of the Company’s Board of Directors and non-employee consultants as compensation for services performed. Employee and non-employee members of the Board of Directors’ awards of stock-based compensation are accounted for in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees and non-employee directors, including grants of stock options, to be recognized in the Statements of Operations based on their grant date fair values. The grant date fair value of stock options is estimated using the Black-Scholes option valuation model. | |||||||||
Using this model, fair value is calculated based on assumptions with respect to (i) the fair value or market price of the Company’s common stock on the grant date; (ii) expected volatility of the Company’s common stock price, (iii) the periods of time over which employees and members of the Company’s Board of Directors are expected to hold their options prior to exercise (expected lives), (iv) expected dividend yield on the Company’s common stock, and (v) risk-free interest rates. | |||||||||
Prior to the effective date of the registration statement related to the Company’s IPO in January 2014, the Company utilized methodologies in accordance with the Practice Aid to determine the fair value of the Company’s common stock on any given date. Subsequently, the stock price input to the Black-Scholes model for each stock option granted is the closing price of the Company’s common stock as quoted on The NASDAQ Global Market on the grant date. | |||||||||
Expected volatility is based on an analysis of guideline companies in accordance with ASC 718. The expected life of stock options granted to employees and members of the Company’s Board of Directors is determined using the average of the vesting period and term, an accepted method for the Company’s option grants under the SEC’s Staff Accounting Bulletin No. 107, Share-Based Payment. The expected dividend yield is zero as the Company has never paid dividends and does not currently anticipate paying any in the foreseeable future. Risk-free interest rates are based on quoted U.S. Treasury rates for securities with maturities approximating the options’ expected lives. | |||||||||
The Company applies a forfeiture rate to the number of unvested awards in each reporting period in order to accrue share-based compensation expense based on an estimate of the number of awards that are expected to vest. Estimated forfeiture rates are based upon historical data of awards that were cancelled prior to vesting. The Company adjusts the total amount of compensation cost recognized for each award, in the period in which each award vests, to reflect the actual forfeitures related to that award. To the extent that the actual forfeiture rate for an award is lower than the estimated forfeiture rate, additional compensation expense is recorded in the period that the award vests. Changes in the Company’s estimated forfeiture rate will result in changes in the rate at which compensation cost for an award is recognized over its vesting period. | |||||||||
The Company accounts for options granted to non-employee consultants under ASC 505-50, Equity-Based Payments to Non-Employees. As such, the Company estimates the fair value of each such option using the Black-Scholes model, with the expected life of stock options granted to non-employees initially equal to the options’ maximum contractual life of ten years, at issuance, and then revalues the option on each reporting date until performance is complete. Under ASC 505-50, upon re-measurement of each award, income or expense is recognized during its vesting term. Compensation cost relating to awards with service-based graded vesting schedules is recognized using the straight-line method. | |||||||||
Income (Loss) Per Share | |||||||||
The Company computes basic net income (loss) per share by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted net income per share includes the potential dilutive effect of common stock equivalents as if such securities were converted or exercised during the period, when the effect is dilutive. Common stock equivalents include convertible preferred stock, convertible promissory notes and outstanding stock options and stock warrants, which are included under the treasury stock method when dilutive. The computation of diluted net loss per share for each of the years ended December 31, 2012, 2013 and 2014 does not include common stock equivalents since such inclusion would be antidilutive. | |||||||||
During the years ended December 31, 2013 and 2012, the Company computed basic net income (loss) per share available to common stockholders using the “two-class” method, which includes the weighted average number of shares of common stock outstanding during the period and other securities that participate in dividends (a participating security). Prior to the IPO, the Company’s shares of convertible preferred stock were participating securities as defined by ASC 260-10, Earnings Per Share. In conjunction with the closing of the IPO on February 5, 2014, all outstanding shares of convertible preferred stock were automatically converted to shares of the Company’s common stock (see Note 9, Convertible Preferred Stock). | |||||||||
Under the two-class method, basic net income (loss) per share available to common stockholders is computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. The Company allocates net income on a pari passu (equal) basis to both common and preferred stockholders. Net losses are not allocated to preferred stockholders as they do not have an obligation to share in the Company’s net losses. Diluted net income (loss) per share is computed using the more dilutive of (1) the two-class method, or (2) the “if-converted” method. | |||||||||
All calculations of net income (loss) per share, both basic and diluted, reflect the 1-for-2.5 reverse stock split (see Note10, Stockholders’ (Deficit) Equity). Refer to Note 15, Net Loss per Share, for the Company’s calculations of net loss per share available to common stockholders for the periods presented. | |||||||||
Segment Reporting | |||||||||
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment, which includes all activities related to the discovery and development of novel therapeutics to treat serious medical conditions, including pain and pruritus. | |||||||||
Leases | |||||||||
The Company recognizes rent expense for operating leases on a straight-line basis over the term of the lease, beginning on the date the Company takes possession of the property. Rent expense includes the base amounts stated in the lease agreement as well as the effect of reduced or free rent and rent escalations. At lease inception, the Company determines the lease term by assuming the exercise of those renewal options that are reasonably assured because of the significant economic penalty that exists for not exercising those options. The exercise of renewal options is at the Company’s sole discretion. The expected lease term is one of the factors used to determine whether a lease is classified operating or capital and is used to calculate the straight-line rent expense. The difference between the cash paid to the landlord and the amount recognized as rent expense on a straight-line basis is included in deferred rent and classified within long-term liabilities. Cash reimbursements received from landlords for leasehold improvements and other cash payments received from landlords as lease incentives are recorded as deferred rent and classified as long-term liabilities. Deferred rent related to landlord incentives is amortized using the straight-line method over the lease term as an offset to rent expense. Penalties paid to landlords to terminate a lease before the contractual end date of the lease are recognized on an undiscounted basis in the Statements of Operations. | |||||||||
Litigation Reserves | |||||||||
The Company may become involved in the future in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. Accruals are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. The Company reviews these reserves at least quarterly and adjusts these reserves to reflect current law, progress of each case, opinions and views of legal counsel and other advisers, the Company’s experience in similar matters and intended response to the litigation. The Company expenses amounts for administering or litigating claims as incurred. Accruals for legal proceedings, if any, are included in Accounts payable and accrued expenses in the Balance Sheets. | |||||||||
Recent Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 provides a single authoritative source of guidance and, thereby, is meant to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. ASU 2014-09 changes the principle under which the Company will recognize revenue from contracts with customers from one which requires the Company to satisfy specific criteria before recognizing revenue to one which requires the Company to recognize revenue in an amount that reflects the consideration to which it expects to be entitled in exchange for the transfer of promised goods or services to customers. The amount of revenue to be recognized in any reporting period is determined by applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for the Company for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period (i.e., January 1, 2017). Early application is not permitted. The Company is allowed to adopt ASU 2014-09 either (1) retrospectively to each prior reporting period presented using several practical expedients related to completed contracts and required disclosures, or (2) retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application, including disclosure of the effect of using this method of adoption on the financial statement line items. The Company is currently in the process of deciding which method of adoption it will use and the effect of adoption of ASU 2014-09 on its results of operations, financial position and cash flows. | |||||||||
In August 2014, the FASB issued Accounting Standards Update 2014-15 Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 codifies, for the first time within GAAP, management’s responsibility to evaluate whether there is substantial doubt about the Company’s ability to continue as a going concern and to provide related footnote disclosures in connection with preparing financial statements for each annual and interim reporting period. Substantial doubt about the Company’s ability to continue as a going concern exists when there are conditions or events, considered in the aggregate, that are known and reasonably knowable at the date that the financial statements are issued, that indicate that the Company will be unable to meet its obligations as they become due within one year after that date. ASU 2014-15 requires the Company to disclose the nature of those conditions or events when they are present, management’s plans to mitigate those conditions or events and whether or not such plans alleviated the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. Prior to adoption of ASU 2014-15, the Company evaluated the need to disclose its ability to continue as a going concern for a reasonable period of time based on projections of its ability to meet its obligations as they become due within a period of one year from the balance sheet date. Upon adoption of ASU 2014-15, that period will be extended to include one year from the date the financial statements are issued and the Company will be required to make the applicable disclosures in its financial statements. The Company does not expect that the adoption of ASU 2014-15 will have a material effect on its financial position, results of operations or cash flows. |
Prepaid_expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Prepaid expenses | 3. Prepaid expenses |
As of December 31, 2014, prepaid expenses was $287, consisting of $92 of prepaid insurance, $177 of prepaid R&D clinical costs and $18 of other costs. As of December 31, 2013, prepaid expenses was $2,140, consisting of $1,833 of IPO costs, $262 of prepaid R&D clinical costs, $34 of prepaid insurance, and $11 of other costs. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment, Net | 4. Property and Equipment, Net | ||||||||
Property and equipment, net consists of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Computer and office equipment | $ | 309 | $ | 275 | |||||
Laboratory equipment | 233 | 233 | |||||||
Furniture and fixtures | 156 | 153 | |||||||
Software | 126 | 126 | |||||||
Leasehold improvements | 7,453 | 7,453 | |||||||
$ | 8,276 | $ | 8,240 | ||||||
Less accumulated depreciation and amortization | 6,192 | 5,415 | |||||||
Property and equipment, net | $ | 2,084 | $ | 2,825 | |||||
Depreciation and amortization expense included in research and development expense and general and administrative expense was $783, $789 and $1,021 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
During the third quarter of 2012, the Company sold most of its laboratory equipment for net proceeds of $511 resulting in a net loss of $286, included in general and administrative expense. |
Restricted_Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | 5. Restricted Cash |
The Company is required to maintain a stand-by letter of credit as security under the Shelton Lease (refer to Note 18, Commitments and Contingencies). The Company’s bank requires the Company to maintain a restricted cash balance equal to the stand-by letter of credit, which is invested in a bank certificate of deposit. The letter of credit balance remains at $700 through the end of the lease term in 2017. As of December 31, 2014 and 2013, the Company has $700 of restricted cash in long-term assets. |
Accounts_Payable_and_Accrued_E
Accounts Payable and Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Expenses | 6. Accounts Payable and Accrued Expenses | ||||||||
Accounts payable and accrued expenses consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accounts payable | $ | 515 | $ | 676 | |||||
Accrued research projects | 549 | 405 | |||||||
Accrued professional fees | 266 | 739 | |||||||
Accrued compensation and benefits | 504 | 83 | |||||||
Accrued other | 112 | 55 | |||||||
$ | 1,946 | $ | 1,958 | ||||||
Convertible_Promissory_Notes
Convertible Promissory Notes | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Convertible Promissory Notes | 7. Convertible Promissory Notes |
In December 2012 and February 2013, the Company issued an aggregate of $4,000 principal amount of Convertible Promissory Notes (“Notes”) due August 28, 2013 (“Maturity Date”). The sale was consummated through two closings. The initial closing was on December 28, 2012 for $2,538 principal amount. The final closing was on February 28, 2013 for $1,462 principal amount. All of the Notes were purchased by current stockholders, all of whom were given the opportunity to buy their pro rata share of the Notes. The holders of preferred stock who did not participate in the Note financing had their shares of preferred stock converted into common stock at their respective then applicable conversion rates. As a result, as of February 2013, 2,246,743 shares of preferred stock were converted into 959,545 shares of common stock. | |
Because the original terms of the preferred stock were modified to reflect this mandatory conversion, the Company determined that the preferred stock had been extinguished. Accordingly, the conversion date difference between the carrying value of the preferred stock converted ($4,466) and the fair value of the common stock issued ($3,575) has been recorded as a gain ($891) within accumulated deficit. | |
The Notes bore interest at 8% per annum and had a Maturity Date of August 28, 2013. The Notes were not eligible to be repaid prior to the maturity date without the consent of the holders of a majority in interest of the outstanding aggregate principal amount of the Notes. The Notes included an optional conversion feature and a mandatory conversion feature. | |
The optional conversion feature allowed the Note holder, any time prior to the Maturity Date, to elect to convert the balance of the note plus accrued interest into Series D convertible preferred stock at a conversion price of $1.444244 per share. In accordance with ASC 470-20, Debt with Conversion and Other Options, the Company determined that the intrinsic value of the beneficial conversion feature embedded in the Notes issued in the initial closing was $2,050, based on the estimated fair value of the Series D convertible preferred stock as of December 31, 2012 of $2.61 per share, and this intrinsic value was recorded as a debt discount, to be accreted to interest expense over the term of the Notes. As of December 31, 2012, the Company amortized $25 of debt discount to interest expense. As of February 28, 2013, the final closing of the Note financing, the Company determined that the intrinsic value of the beneficial conversion feature of the Notes issued in the final closing was $1,382 and recorded this amount as an additional debt discount. For the year ended December 31, 2013, the Company amortized $3,407 of debt discount to interest expense. | |
The mandatory conversion of the Notes would have occurred in the event the Company issued or sold equity securities on or before August 28, 2013 of not less than $10,000. In this event, the Notes plus all accrued interest would have automatically converted into the issued class of equity securities at a price per share equal to 90% of the cash price paid by the investors in the new equity securities. In accordance with ASC 815-15, Derivatives and Hedging, the Company was required to record the embedded mandatory conversion feature as a free-standing financial instrument, as the conversion feature was a substantial contingent call option. The Company recorded $41 as the fair value of the contingent call option liability related to the Notes issued in the initial closing of the Note financing as of December 31, 2012, with a corresponding amount recorded as additional debt discount, with the debt discount to be accreted to interest expense over the life of the Notes. Any increases or decreases to the fair value of the contingent call option would be recorded in operations through the life of the Notes. | |
The Company estimated the fair value of the contingent call option by estimating the accreted value of the Notes upon conversion, with consideration provided for the 10% price discount and the probability of the Company closing an equity offering in excess of $10,000 before August 28, 2013. The Company classified the liability within Level 3 of the fair value hierarchy as the probability factor is an unobservable input and significant to the valuation model. Increases in the probability of an equity offering closing before August 28, 2013 in excess of $10,000 would increase the fair value of the liability. In April 2013, the estimated fair value of the contingent call option of $41 was reduced to zero with an equal reduction in interest expense, since the Company estimated the probability of closing a $10,000 equity offering before August 28, 2013 as zero, following the receipt of $23,000 in connection with the Maruishi transaction in April 2013, which removed the need for a $10,000 financing prior to August 28, 2013. | |
Prior to the Maturity Date, the Company received notice from Note holders to convert Notes in the aggregate amount of $3,888 in principal plus accrued interest, into 2,692,291 shares of Series D convertible preferred stock, and the remaining Notes, in the aggregate amount of $311 in principal and accrued interest, were repaid during October 2013. | |
Deferred financing costs related to the convertible promissory notes were amortized over the life of the related debt using the effective interest method. For the years ended December 31, 2013 and 2012, deferred financing costs of $117, and $4, respectively, were amortized and included in interest expense. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. Long-Term Debt |
In September 2007, the Company entered into a $4,000 term loan (“Loan”) with Connecticut Innovations Inc. (“CII”). The Loan carried a 7% interest rate and was payable in monthly installments over five years. The Loan was collateralized by property and equipment which was owned by the Company that was located in Shelton, Connecticut. The CII Loan contained certain non-financial covenants, including the requirement that the Company maintain its principal place of business and conduct the majority of its operations in Connecticut. If the Company failed to maintain its Connecticut presence, all amounts due under the Loan would be immediately due and payable with the cumulative interest rate increasing to 25%. | |
On September 4, 2012, the Company and CII amended the Loan to defer all payments due between July 1, 2012 and December 31, 2012 until January 2, 2013 and to increase the interest rate to 8.5%. The Company repaid the remaining principal balance of $307 plus accrued interest outstanding under the Loan in April 2013. | |
In connection with the Loan, the Company issued to CII a warrant to purchase 19,851 shares of common stock at an exercise price of $10.08. The fair value of such warrant at the date of issuance was determined not to be material. The warrant also incorporated the non-financial covenants of the Loan described above. If the Company failed to maintain its Connecticut presence, it would be required to pay CII the excess of the market price of the common stock over the warrant exercise price for all unexercised shares represented by the warrant and/or the exercise price paid plus the market price on any shares acquired through a previous exercise of the warrants. On July 31, 2014, CII exercised its outstanding warrant in a cashless exercise, resulting in the issuance of 6,383 shares of the Company’s common stock. |
Convertible_Preferred_Stock
Convertible Preferred Stock | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||
Convertible Preferred Stock | 9. Convertible Preferred Stock | ||||||||||||||||||||
In May 2012, the Company issued to Chong Kun Dang Pharmaceutical Corporation (“CKD”) 173,611 shares of Junior convertible preferred stock, $0.001 par value per share (“Junior Preferred Stock”) having an estimated fair value of $354. The shares were sold as part of the license transaction with CKD (refer to Note 11, Collaborations). | |||||||||||||||||||||
In connection with the Notes (refer to Note 7, Convertible Promissory Notes), as of February 2013, the holders of 2,246,743 shares of preferred stock who did not participate in the Note financing had their shares of preferred stock converted into 959,545 shares of common stock. | |||||||||||||||||||||
In April 2013, the Company issued to Maruishi (refer to Note, 11 Collaborations) 2,105,263 shares of Junior A convertible preferred stock (“Junior A Preferred Stock”), having an estimated fair value of $7,663. The shares were sold as part of the license transaction with Maruishi. | |||||||||||||||||||||
In September 2013, the Company issued an aggregate of 2,692,291 shares of Series D convertible preferred stock upon the conversion of the Notes (refer to Note 7, Convertible Promissory Notes). Each series of convertible preferred stock is referred to as that series’ Preferred Stock. All series of convertible stock are, collectively, referred to as Preferred Stock. The following tables summarize the outstanding Preferred Stock as of December 31, 2013 and December 31, 2012: | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Preferred | Preferred | Liquidation | Carrying | Common Stock | |||||||||||||||||
Shares | Shares Issued | Preference | Value | Issuable Upon | |||||||||||||||||
Authorized | and | Conversion | |||||||||||||||||||
Outstanding | |||||||||||||||||||||
Junior | 173,611 | 173,611 | $ | 500 | $ | 354 | 69,444 | ||||||||||||||
Junior A | 2,105,263 | 2,105,263 | 8,000 | 7,642 | 842,105 | ||||||||||||||||
Series A | 1,677,118 | 1,677,118 | 1,677 | 1,677 | 670,830 | ||||||||||||||||
Series B | 2,254,417 | 2,254,417 | 4,509 | 4,509 | 980,163 | ||||||||||||||||
Series C | 10,930,946 | 10,930,946 | 33,886 | 33,886 | 5,173,413 | ||||||||||||||||
Series D | 12,260,845 | 12,045,574 | 17,397 | 17,518 | 4,818,216 | ||||||||||||||||
29,402,200 | 29,186,929 | $ | 65,969 | $ | 65,586 | 12,554,171 | |||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Preferred | Preferred | Liquidation | Carrying | Common Stock | |||||||||||||||||
Shares | Shares Issued | Preference | Value | Issuable Upon | |||||||||||||||||
Authorized | and | Conversion | |||||||||||||||||||
Outstanding | |||||||||||||||||||||
Junior | 173,611 | 173,611 | $ | 500 | $ | 354 | 69,444 | ||||||||||||||
Junior A | — | — | — | — | — | ||||||||||||||||
Series A | 2,000,000 | 2,000,000 | 2,000 | 2,000 | 800,000 | ||||||||||||||||
Series B | 2,370,000 | 2,370,000 | 4,740 | 4,740 | 1,030,434 | ||||||||||||||||
Series C | 11,706,450 | 11,706,450 | 36,290 | 36,290 | 5,540,457 | ||||||||||||||||
Series D | 10,386,057 | 10,386,057 | 15,000 | 15,138 | 4,154,422 | ||||||||||||||||
26,636,118 | 26,636,118 | $ | 58,530 | $ | 58,522 | 11,594,757 | |||||||||||||||
Upon the closing of the Company’s IPO on February 5, 2014, all 29,186,929 shares of the Company’s Preferred Stock that were issued and outstanding on that date were automatically converted into an aggregate of 12,554,171 shares of its common stock. As of December 31, 2014, there were no shares of Preferred Stock authorized or outstanding. | |||||||||||||||||||||
Prior to automatic conversion of the Preferred Stock to common stock upon the closing of the Company’s IPO, the following terms and conditions applied to the Preferred Stock: | |||||||||||||||||||||
Liquidation Preferences | |||||||||||||||||||||
In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Company, including a deemed liquidation event, as defined in the Company’s amended and restated certificate of incorporation, the following liquidation preferences as of December 31, 2013 were payable to the holders of Preferred Stock: Series D Preferred Stock, aggregate liquidation preference of $17,397, plus declared, but unpaid dividends; Series C Preferred Stock, aggregate liquidation preference of $33,886, plus declared, but unpaid dividends; Series B Preferred Stock, aggregate liquidation preference of $4,509, plus declared, but unpaid dividends; Series A Preferred Stock, aggregate liquidation preference of $1,677 plus declared, but unpaid dividends; Junior A Preferred Stock, aggregate liquidation preference of $8,000 plus declared, but unpaid dividends; and Junior Preferred Stock, aggregate liquidation preference of $500 plus declared, but unpaid dividends. The Series D Preferred Stock liquidation preferences are senior to Series C Preferred Stock liquidation preferences, the Series C Preferred Stock liquidation preferences are senior to the Series B Preferred Stock liquidation preferences, the Series B Preferred Stock liquidation preferences are senior to the Series A Preferred Stock liquidation preferences, the Series A Preferred Stock liquidation preferences are senior to the Junior A Preferred Stock liquidation preferences, and the Junior A Preferred Stock liquidation preferences are senior to the Junior Preferred Stock liquidation preferences. If all amounts would have been paid to the holders of the Preferred Stock in respect of their liquidation preferences, then the remaining assets of the Company would have been distributed pro rata to the holders of Series D Preferred Stock and the common stockholders, subject to a maximum of an additional $4.332732 per share for the holders of Series D Preferred Stock. As a result, the Series D Preferred Stock’s total liquidation preference could have been up to $70,000, exclusive of any declared, but unpaid dividends. | |||||||||||||||||||||
The amount that each holder of Preferred Stock would have received upon liquidation, dissolution or winding up of the Company would have been the greater of the cumulative amounts described above or the amount that such holder of Preferred Stock would have received if the shares of Preferred Stock converted into common stock immediately prior to the liquidation, dissolution or winding up of the Company. | |||||||||||||||||||||
As of December 31, 2013, since the Preferred Stock may have become redeemable upon an event that was outside of the control of the Company, the Preferred Stock was classified outside of permanent equity. | |||||||||||||||||||||
Conversion | |||||||||||||||||||||
Each holder of Preferred Stock had the right to convert any or all of such holder’s Preferred Stock into common stock at any time. As of December 31, 2013, Junior Preferred Stock, Junior A Preferred Stock, Series A Preferred Stock and Series D Preferred Stock were convertible into common stock at a conversion ratio of one to 0.4 and Series B and Series C were convertible into common stock at a conversion ratio of one to 0.434782 and one to 0.473282, respectively. The conversion ratio for all Preferred Stock was subject to adjustment based on certain events specified in the Company’s amended and restated certificate of incorporation, including a stock split, if the Company pays a dividend to common stockholders without a corresponding dividend to the Preferred Stockholders or if the Company sells, or is deemed to sell, common stock at a price per share that is less than the then effective conversion prices of each class of Preferred Stock. Pursuant to these provisions, the conversion ratio for the Series B Preferred Stock and Series C Preferred Stock was adjusted upon the issuance of the Series D Preferred Stock. | |||||||||||||||||||||
Automatic Conversion | |||||||||||||||||||||
Contemporaneously with the closing of a qualified public offering of common stock, as defined in the Company’s amended and restated certificate of incorporation, or upon a vote of the holders of a majority of the Preferred Stock, voting together as a single class, and holders of at least 67% of the Series D Preferred Stock, all outstanding shares of Preferred Stock would automatically convert into common stock at the then effective applicable conversion rates for such shares. Contemporaneously with the closing of the Company’s IPO, all outstanding shares of Preferred Stock were automatically converted into common stock at the then effective applicable conversion rates for such shares (see above). | |||||||||||||||||||||
Dividends | |||||||||||||||||||||
Dividends on all series of outstanding Preferred Stock were payable when and if declared by the Company’s Board of Directors. No dividends shall be paid to the holders of the Company’s common stock unless equivalent dividends have been declared and paid on each series of outstanding Preferred Stock. Through December 31, 2014, no dividends were declared or paid by the Company. | |||||||||||||||||||||
Voting Rights | |||||||||||||||||||||
As set forth in the Company’s amended and restated certificate of incorporation, the holders of Series A, Series B, Series C and Series D Preferred Stock (“Senior Preferred Stock”) were entitled to vote as one class, with common stockholders, based on the number of shares of common stock each holder would receive upon conversion of their Senior Preferred Stock into shares of common stock, for all matters except for the approval of certain major actions by the Company and the election of directors. Subject to certain ownership thresholds and certain nomination and approval rights set forth in the Company’s amended and restated certificate of incorporation and an amended and restated voting agreement by and among the Company and certain stockholders of the Company, directors are elected as follows: common stockholders vote as a separate class for the election of two directors; the holders of Series D Preferred Stock vote as a separate class for the election of one director; the holders of Series C Preferred Stock vote as a separate class for the election of three directors; and the holders of Senior Preferred Stock vote as a combined class for the election of one director. Upon the closing of the Company’s initial public offering on February 5, 2014, the voting agreement terminated and the Company’s stockholders no longer have any special rights regarding the election or designation of members of its Board of Directors. | |||||||||||||||||||||
Registration Rights | |||||||||||||||||||||
The holders of shares of Preferred Stock have certain registration rights as set forth in an amended and restated investors’ rights agreement by and among the Company and certain of its stockholders. |
Stockholders_Deficit_Equity
Stockholders' (Deficit) Equity | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Stockholders' (Deficit) Equity | 10. Stockholders’ (Deficit) Equity | ||||||||
On January 16, 2014, the Company’s Board of Directors approved an Amended and Restated Certificate of Incorporation, which, among other things, increased the authorized number of shares of the Company’s common stock, par value $0.001 per share, from 50,000,000 to 100,000,000 and authorized 5,000,000 shares of undesignated preferred stock, par value $0.001 per share, that may be issued from time to time by the Board of Directors of the Company in one or more series. As of December 31, 2014, there were 22,802,039 shares of common stock and no shares of preferred stock issued and outstanding. | |||||||||
The Company’s Board of Directors and stockholders approved a 1-for-2.5 reverse stock split of the Company’s common stock effective on January 16, 2014, which resulted in an adjustment to the preferred stock conversion price to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. All share and per share amounts in the financial statements and notes thereto in this Annual Report on Form 10-K have been retroactively adjusted for all periods presented to give effect to this reverse stock split. | |||||||||
On January 30, 2014, the Company’s registration statement on Form S-1 relating to its IPO was declared effective, providing for the sale of 5,750,000 shares of the Company’s common stock at a public offering price of $11.00 per share (see Note 1, Business). | |||||||||
On December 1, 2014, the Company sold 11,442 shares of common stock to its Chief Medical Officer at $8.74 per share (which was the closing price of the Company’s common stock on the NASDAQ Global Market on that date) for gross proceeds of $100. The shares of common stock have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and have been sold pursuant to an exemption from registration contained in the Securities Act based in part upon the purchaser’s representations contained in the purchase agreement. | |||||||||
The following table summarizes common stock reserved for conversion of Preferred Stock and the exercise of warrants and options at December 31, 2014 and 2013. On February 5, 2014, all shares of Preferred Stock automatically converted to shares of common stock (see Note 9, Convertible Preferred Stock). On July 31, 2014, all outstanding warrants were exercised (see Note 8, Long Term Debt). | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Conversion of Series A convertible preferred | — | 670,830 | |||||||
Conversion of Series B convertible preferred | — | 901,757 | |||||||
Conversion of Series C convertible preferred | — | 4,372,369 | |||||||
Conversion of Series D convertible preferred | — | 4,818,216 | |||||||
Conversion of Junior convertible preferred | — | 69,444 | |||||||
Conversion of Junior A convertible preferred | — | 842,105 | |||||||
Series B and C anti-dilution shares | — | 879,450 | |||||||
Exercise of warrant | — | 19,851 | |||||||
Exercise of stock options | 1,898,360 | 1,247,959 | |||||||
1,898,360 | 13,821,981 | ||||||||
Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to dividends when and if declared by the Board of Directors, subject to the preferential rights of the holders of preferred stock, if any. | |||||||||
As described in Note 2, Summary of Significant Accounting Policies – Common Stock and Convertible Preferred Stock Valuation, prior to its IPO, the Company utilized methodologies in accordance with the Practice Aid to support the fair value of its common stock at key points in time. In conducting these valuations, the Company considered all objective and subjective factors that it believed to be relevant for each valuation conducted, including its best estimate of its business condition, prospects and operating performance at each valuation date. |
Collaborations
Collaborations | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborations | 11. Collaborations |
Chong Kun Dang Pharmaceutical Corporation | |
In April, 2012, the Company entered into a license agreement with Chong Kun Dang Pharmaceutical Corporation (“CKD”) that provides CKD with the exclusive rights to develop, manufacture and commercialize products containing CR845, the Company’s lead product candidate, in South Korea. Under the agreement, the Company received a non-refundable and non-creditable amount of $1,000 and is eligible to receive milestone payments totaling $3,750, relating to pre-defined clinical development ($2,250) and regulatory events ($1,500), as well as royalties on sales of any marketed products containing CR845. The Company has accounted for the milestones under ASC 605 Revenue Recognition – Milestone Method. At the time of execution of this license agreement, there was significant uncertainty as to whether the stated milestones would be achieved. In conjunction with this uncertainty, the Company has determined that the milestones are substantive in nature as they are commensurate with the enhancement of value of the delivered license as they relate to clinical success and advancement within the FDA drug development platform. The milestones also relate solely to past performance and monetary investment of the Company to achieve the clinical advancement. | |
In exchange for the $1,000, the Company provided CKD with the license for CR845 and issued CKD 173,611 shares of Junior Preferred Stock. The Company recorded the issuance of the 173,611 shares of Junior Preferred Stock as a capital transaction for $354, which represented the shares’ estimated fair value as of the transaction date. The remaining proceeds of $646 were recorded as license revenue as the license was the only deliverable within the agreement that had stand-alone value and was determined to be a separate unit of accounting under ASC 605-25, Revenue Recognition Multiple – Element Arrangements. | |
In addition, the Company received milestone payments of $750 during the year ended December 31, 2012 related to the Company’s achievement of U.S. clinical development milestones stated in the CKD license agreement. The next potential milestone that the Company could be entitled to receive under the CKD license agreement will be a clinical development milestone for the completion of a Phase 1b clinical trial in the U.S. for a certain indication. If achieved, this milestone will result in a $250 payment being due to the Company. | |
During the year ended December 31, 2012, the Company recorded license and milestone revenue related to the CKD license agreement of $1,190, net of South Korean withholding tax of $206. | |
Maruishi Pharmaceutical Co., Ltd. | |
In April 2013, the Company entered into a license agreement with Maruishi under which the Company granted Maruishi an exclusive license to develop, manufacture, and commercialize products containing CR845 for acute pain and uremic pruritus in Japan. The Company and Maruishi are each responsible to use commercially reasonable efforts, at its expense, to develop, obtain regulatory approval for and commercialize CR845 in the United States and Japan, respectively. In addition, the Company will provide Maruishi specific clinical development services for CR845 used in Maruishi’s field of use. | |
Under the terms of the agreement, the Company received an upfront non-refundable, non-creditable license fee of $15,000. As indicated in Note 2, Summary of Significant Accounting Policies – Revenue Recognition, the Company accounts for arrangements of this type under ASC 605-25, Revenue Recognition—Multiple Element Arrangements. The Company has identified two deliverables under this guidance: (1) the license; and (2) the R&D services specific to the uremic pruritus field of use. The Company has determined that the license has standalone value because Maruishi has the right to sublicense and manufacture CR845 in Japan. The second deliverable is the R&D services, which also have standalone value as similar services are sold separately by other vendors. Since both license and R&D services separability criteria have been met, they are being accounted for as separate units of accounting at the outset of the arrangement. | |
As a result, the total value of the arrangement of $15,337 (consisting of the $15,000 upfront payment, plus the additional amount assigned to these deliverables as a result of the Junior A Preferred Stock premium, see below) was allocated between the two units of accounting. The Company used its best estimate of the selling price of these units of accounting, since, as described in Note 2 Summary of Significant Accounting Policies – Revenue Recognition, neither VSOE nor TPE was available. To determine these estimates, the Company used a discounted cash flow method that forecasted and analyzed CR845 in the Japanese market, the phase of clinical development as well as considering recent similar license arrangements within the same phase of clinical development, therapeutic area, type of agreement, etc. As a result, at inception of this license agreement, the management of the Company determined that the license and the R&D services had estimated selling prices of $10,200 and $6,200, respectively. The resulting percentage allocations were applied to the $15,337 of total consideration, which resulted in $9,637 being assigned to the license unit of accounting, which was recognized immediately as license revenue, while $5,700 was assigned to the R&D services unit of accounting. The amount assigned to the R&D services unit of accounting was initially recorded as deferred revenue and is being recognized as revenue as the services are provided. Upon achievement of a milestone by Maruishi during June 2014, the Company deferred a portion of the milestone payment (see below). | |
The Company is also entitled to receive aggregate milestone payments of $8,000 for events performed by Maruishi in Japan and $2,500 for events performed by the Company in the U.S. The Company accounts for any future milestone payments under ASC 605-28 Revenue Recognition – Milestone Method (see Note 2, Summary of Significant Accounting Policies). At the time of execution of this license agreement, there was significant uncertainty as to whether the stated milestones would be achieved. In conjunction with this uncertainty, the Company has determined that the milestones achieved in the U.S. are substantive in nature as they are commensurate with the enhancement of value of the delivered license as they relate to clinical success and advancement within the FDA drug development platform. However, the milestones achieved by Maruishi in Japan are not substantive and will be accounted for as contingent consideration. | |
During June 2014, Maruishi completed a Phase 1 clinical trial in Japan related to CR845 in acute post-operative pain, which constituted achievement of one of the milestones specified in the license agreement. As the milestone was considered not to be substantive, the payment was accounted for as contingent consideration. Accordingly, the Company allocated the non-refundable contingent payment of $480, net of a contractual foreign currency exchange adjustment, to the two deliverables in the same proportion as the initial upfront payment had been allocated. The portion of the contingent payment allocated to the previously delivered license deliverable ($302) was recognized as license revenue entirely at the time of achievement of the milestone. A portion of the contingent payment allocated to the R&D services deliverable ($88) was recognized as collaborative revenue at the time of achievement of the milestone to the extent of R&D services provided through that date and the remainder ($90) was deferred and is being recognized as collaborative revenue through the period during which the Company provides R&D services to Maruishi. | |
The next potential milestone that the Company could be entitled to receive under the Maruishi license agreement will be a clinical development milestone for the initiation of a Phase 1 clinical trial in Japan for a certain indication. If achieved, this milestone will result in a $2,000 payment being due to the Company. | |
Along with the R&D services performed by the Company for Maruishi, the Company supplies Maruishi with CR845 clinical material as an accommodation. The Company had previously entered into manufacturing and service agreements with third parties to manufacture CR845. Payments made by the Company to third parties based on firm and fixed commitments by Maruishi to purchase CR845 from the Company are capitalized as prepaid expense. During the manufacturing process, title and risk of loss remains with the third party until the Company has paid in full for the material. | |
Once the Company has title to the CR845 and has delivered it to Maruishi, prepaid expense related to that CR845 is reduced with an offset to R&D expense. At that time, Maruishi reimburses the Company for its external and internal costs for purchasing CR845 and processing the sale to Maruishi and the Company recognizes clinical compound revenue for the reimbursement amount. Deposits received from Maruishi prior to delivery of CR845 are recorded as deferred revenue. | |
The Company is also eligible to receive tiered, low double digit royalties with respect to any sales of the licensed product sold in Japan by Maruishi. Additionally, the Company can receive sublicense fees (subject to certain credits for milestone payments already made) if Maruishi enters into a sublicense agreement regarding the product candidates. | |
Also, in conjunction with entering into this arrangement, Maruishi purchased 2,105,263 shares of Junior A Preferred Stock of the Company pursuant to a stock purchase agreement for a purchase price of $3.80 per share, for total consideration of $8,000. These shares have been recorded at their fair value of $7,663 or $3.64 per share. As a result, the premium of $337 was allocated to the arrangement consideration (see above). | |
As of December 31, 2014 and 2013, the Company had $1,452 and $3,475, respectively, of deferred revenue pursuant to the R&D services deliverable under the license agreement with Maruishi. | |
During the years ended December 31, 2014 and 2013, the Company recognized $302 and $9,637, respectively, of license fee revenue, $2,201 and $2,225, respectively, of collaborative revenue from the amortization of deferred revenue arising from the portion of the upfront payment received pursuant to the license agreement with Maruishi that was allocated to the R&D services deliverable and $674 and $102, respectively, from the sale of CR845 clinical compound. | |
The Company incurred R&D expense related to the Maruishi license agreement of $3,558 (consisting of $3,000 of clinical trial costs related to the R&D services deliverable and $558 related to cost of clinical compound sold to Maruishi) and $2,452 (consisting of $2,420 of clinical trial costs related to the R&D services deliverable and $32 related to cost of clinical compound sold to Maruishi) during years ended December 31, 2014 and 2013, respectively. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation | 12. Stock-Based Compensation | ||||||||||||
2014 Equity Incentive Plan | |||||||||||||
The Company’s Board of Directors adopted, and its stockholders subsequently approved, its 2014 Equity Incentive Plan, or 2014 Plan, in January 2014. The 2014 Plan became effective immediately upon the signing of the underwriting agreement for the Company’s IPO. The 2014 Plan is administered by the Company’s Board of Directors or a duly authorized committee thereof (the “Plan Administrator”). The 2014 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards and other forms of equity compensation (collectively, “Stock Awards”). Additionally, the 2014 Plan provides for the grant of performance cash awards. Incentive stock options may be granted only to employees. All other awards may be granted to employees, including officers, non-employee directors, and non-employee consultants. No incentive stock options may be granted under the 2014 Plan after the tenth anniversary of the effective date of the 2014 Plan. Stock Awards granted under the 2014 Plan vest at the rate specified by the Plan Administrator, which, to date, has been 25% on the first anniversary of the date of grant and the balance ratably over the next 36 months. The Plan Administrator determines the term of Stock Awards granted under the 2014 Plan up to a maximum of ten years. | |||||||||||||
Initially, the aggregate number of shares of the Company’s common stock that may be issued pursuant to Stock Awards under the 2014 Plan is 1,600,000 shares. Additionally, the number of shares of the Company’s common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year, beginning on January 1, 2015 and continuing through and including January 1, 2024, by 3% of the total number of shares of the Company’s capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company’s Board of Directors. The maximum number of shares that may be issued pursuant to the exercise of incentive stock options under the 2014 Plan is 30,000,000 shares. On January 1, 2015, the aggregate number of shares of common stock that may be issued pursuant to stock awards under the Company’s 2014 Equity Incentive Plan automatically increased to 2,284,061. | |||||||||||||
2004 Stock Incentive Plan | |||||||||||||
The Company’s 2004 Stock Incentive Plan (the “2004 Plan”), as amended, was adopted by the Company’s Board of Directors and stockholders. Under the 2004 Plan, the Company has granted stock options to selected officers, employees and consultants of the Company. The Company’s Board of Directors administers the 2004 Plan. Options granted under the 2004 Plan have a maximum term of ten years. Options issued generally vest 25% on the first anniversary date of grant and the balance ratably over the next 36 months. Although as of December 31 2013, 757,799 shares remained available for future issuance pursuant to the grant of options or restricted share awards under the 2004 Plan, following the effectiveness of the 2014 Plan in January 2014, no additional options or restricted share awards were granted under the 2004 Plan. As of September 30, 2014, the 2004 Plan has expired and no further grants of stock options or restricted stock are allowed. | |||||||||||||
The Company accounts for stock options granted to employees and non-employee members of the Board of Directors in accordance with ASC 718, Compensation – Stock Compensation. The Company also occasionally grants stock options to non-employee consultants. Such grants are accounted for pursuant to ASC 505-50, Equity-Based Payments to Non-Employees (refer to Note 2, Summary of Significant Accounting Policies – Stock-Based Compensation). | |||||||||||||
A summary of the Company’s stock option activity related to employees, non-employee members of the Board of Directors and non-employee consultants as of December 31, 2014 and changes during the year then ended is as follows: | |||||||||||||
Number of | Weighted- | Aggregate | |||||||||||
Options | Average | Intrinsic | |||||||||||
Exercise Price | Value | ||||||||||||
Outstanding at December 31, 2013 | 490,160 | $ | 1.34 | ||||||||||
Granted | 884,000 | 11.24 | |||||||||||
Exercised | (191,800 | ) | 0.67 | ||||||||||
Forfeited | (160,000 | ) | 13.26 | ||||||||||
Outstanding at December 31, 2014 | 1,022,360 | $ | 8.16 | $ | 2,763 | ||||||||
Weighted average remaining contractual life as of December 31, 2014 (yrs) | 7.78 | ||||||||||||
Options exercisable at December 31, 2014 | 299,735 | $ | 2.11 | $ | 2,366 | ||||||||
Weighted average remaining contractual life as of December 31, 2014 (yrs) | 3.9 | ||||||||||||
Options vested and expected to vest at December 31, 2014 | 990,191 | $ | 8.05 | $ | 2,743 | ||||||||
Weighted average remaining contractual life as of December 31, 2014 (yrs) | 7.73 | ||||||||||||
The total fair value of options vested during the years ended December 31, 2014, 2013 and 2012 was $393 and $75 and $65, respectively. The intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $2,055, $0 and $10, respectively. | |||||||||||||
During the years ended December 31, 2013 and 2012, the Company did not grant any stock options to employees, non-employee members of the Board of Directors or non-employee consultants. The fair values of the stock options granted to those groups during the year ended December 31, 2014 were estimated using the Black-Scholes option valuation model with the following ranges of assumptions (see Note 2, Summary of Significant Accounting Policies – Stock-Based Compensation): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | |||||||||||||
Risk-free interest rate | 1.64% – 2.72% | ||||||||||||
Expected volatility | 64.9% – 71.3% | ||||||||||||
Expected dividend yield | 0% | ||||||||||||
Expected life of employee and Board of Directors’ options (in years) | 6.25 | ||||||||||||
Expected life of non-employee options (in years) | 10 | ||||||||||||
The weighted average grant date fair value of options granted to employees, non-employee members of the Board of Directors for their Board service and non-employee consultants during the year ended December 31, 2014 was $7.09. | |||||||||||||
At the end of each fiscal quarter during the years ended December 31, 2014, 2013 and 2012, the Company used the Black-Scholes option valuation model with the following ranges of assumptions to re-measure the fair value of all outstanding vested options that had been granted to non-employee consultants until each option grant was fully vested. | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rate | 1.96% – 2.72% | 2.5% – 3.2% | 1.77% | ||||||||||
Expected volatility | 69% – 71% | 71% – 72% | 73% | ||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Expected life of non-employee options (in years) | 6 – 10 | 1.5 – 7 | 2 – 8 | ||||||||||
Under ASC 505-50, upon re-measurement of each award, income or expense is recognized during its vesting term. | |||||||||||||
The weighted average fair values of outstanding vested options that had been granted to non-employee consultants as re-measured during the years ended December 31, 2014, 2013 and 2012 were $10.77, $6.54 and $1.77, respectively. | |||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recognized compensation expense in the accompanying Statements of Operations relating to stock options, as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Research and development | $ | 349 | $ | 71 | $ | 48 | |||||||
General and administrative | 1,022 | 52 | 13 | ||||||||||
Total stock option expense | $ | 1,371 | $ | 123 | $ | 61 | |||||||
As of December 31, 2014, the total compensation expense relating to unvested options granted to employees, non-employee members of the Board of Directors and non-employee consultants that had not yet been recognized was $3,768, which is expected to be realized over a weighted average period of 3.24 years. The Company will issue shares upon exercise of options from common stock reserved. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 13. Income Taxes | ||||||||||||
The Company’s benefit from income taxes is as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | (201 | ) | (30 | ) | (31 | ) | |||||||
(201 | ) | (30 | ) | (31 | ) | ||||||||
Deferred: | |||||||||||||
Federal | — | — | — | ||||||||||
State | — | — | — | ||||||||||
— | — | — | |||||||||||
Benefit from income taxes | $ | (201 | ) | $ | (30 | ) | $ | (31 | ) | ||||
The Company’s tax benefits relate to state research and development tax credits exchanged for cash. The State of Connecticut provides companies with the opportunity to exchange certain research and development credit carryforwards for cash in exchange for foregoing the carryforward of the research and development credit. The program provides for such exchange of the research and development credits at a rate of 65% of the annual research and development credit, as defined. | |||||||||||||
A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations is as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income taxes using U.S. federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes, net of federal benefit | 5.23 | % | 6.03 | % | 5.6 | % | |||||||
Impact of R&D tax credit on effective tax rate | 3.03 | % | 12.04 | % | 0 | % | |||||||
Impact of foreign tax credit on effective tax rate | 0 | % | 0 | % | 3.27 | % | |||||||
Stock option shortfalls and cancellations | -0.69 | % | 0 | % | -2.54 | % | |||||||
Provision to return adjustments | -0.57 | % | -1.42 | % | -1.95 | % | |||||||
Change in valuation allowance | -39.88 | % | -49.9 | % | -37.89 | % | |||||||
1.12 | % | 0.75 | % | 0.49 | % | ||||||||
Significant components of the Company’s deferred tax assets are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Net operating loss carryforwards | $ | 27,094 | $ | 21,433 | |||||||||
Federal and state tax credits | 3,508 | 2,947 | |||||||||||
Accelerated depreciation | 1,018 | 860 | |||||||||||
Deferred revenue | 566 | — | |||||||||||
Stock-based compensation expense | 333 | 85 | |||||||||||
Rent expense | 114 | 136 | |||||||||||
Amortization of R&D intangible assets | 56 | 67 | |||||||||||
Accrued vacation | 27 | 32 | |||||||||||
32,716 | 25,560 | ||||||||||||
Valuation allowance | (32,716 | ) | (25,560 | ) | |||||||||
Net deferred tax asset | $ | — | $ | — | |||||||||
A 100% valuation allowance has been recorded on the deferred tax asset as of December 31, 2014 and 2013 because management believes it is more likely than not that the asset will not be realized. The change in the valuation allowance during 2014 and 2013 was $7,156 and $667, respectively. | |||||||||||||
The Company has a tax benefit of approximately $401 related to the exercise of non-qualified stock options and the disqualified disposition of incentive stock options. Pursuant to ASC 718, the benefit will be recognized and recorded to additional paid-in-capital when the benefit is realized through the reduction of taxes payable. | |||||||||||||
The Company applies the provisions of ASC 740, Income Taxes, which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. The financial statements reflect expected future tax consequences of such positions presuming the taxing authorities possess full knowledge of the position and all relevant facts. As of December 31, 2014 and 2013, the Company had no unrecognized tax benefits or related interest and penalties accrued. In the event the Company determines that accrual of interest or penalties are necessary in the future, the amount will be presented as a component of interest expense. | |||||||||||||
At December 31, 2014, the Company had federal and state net operating loss carryforwards of approximately $71,369 and $65,260 respectively. The federal and state tax loss carryforwards will begin to expire in 2026 and 2027, respectively, unless previously utilized. The losses may also be subject to limitation pursuant to Internal Revenue Code 382. The Company also had federal and state research and development tax credit carryforwards of approximately $2,854 and $678, respectively. The federal credits will begin expiring in 2025 unless previously utilized. The Connecticut credit carryforwards have no expiration period. Because of the net operating loss and research credit carryforwards, tax years 2007 through 2014 remain open to U.S. federal and state tax examinations. |
License_and_Research_Agreement
License and Research Agreement | 12 Months Ended |
Dec. 31, 2014 | |
Research and Development [Abstract] | |
License and Research Agreement | 14. License and Research Agreement |
Effective April 2005, the Company entered into a semi-exclusive worldwide royalty-free license agreement (the “Glasgow License Agreement”) for a certain G protein-coupled receptor (“GPCR”) assay technology with the University of Glasgow (“Glasgow”). The Company issued 200,000 shares of its common stock to Glasgow as compensation for this license. | |
Upon an exit event, including an IPO or as otherwise defined in the Glasgow License Agreement, Glasgow had the option to require the Company to guarantee a return of $1,000 on its 200,000 shares of common stock. If the proceeds from the exit event resulted in a return of less than $1,000, the Company was required to make an additional license payment by giving Glasgow cash or through the issuance of additional shares (at the Company’s option), as specified in the Glasgow License Agreement. In accordance with ASC 480, Distinguishing Liabilities from Equity, the Company initially recorded the fair value of this option as both a long-term liability and research and development expense. The Company estimated the fair value of the option using the Black-Scholes option valuation model with consideration given to the probability of an exit event occurring below the guaranteed amount. The fair value of the liability was estimated at each subsequent balance sheet date, with any increases or decreases to the fair value recorded as increases or decreases to research and development expense and the related liability. As of December 31, 2013, the estimated fair value of the liability was reduced to zero based on the Company’s estimated fair value of common stock after the Maruishi transaction (see Note 11, Collaborations). The Company classified the liability within Level 3 as the probability factor is an unobservable input and significant to the valuation model. The Company used a probability factor of 10% in all periods from 2005 to 2013. The probability rate was based on the successful progress of the Company’s product candidates containing CR845 and the Company’s expectation of an exit event value below the guaranteed amount. An increase in the probability rate would have resulted in a higher liability while an increase in the stock price would have reduced the liability. The decrease in the value of the liability of $35 in 2013 was the result of changes in the observable inputs (i.e. stock value, interest rates and volatility) and was recorded in research and development expense. The closing of the Company’s IPO on February 5, 2014 constituted an exit event under the Glasgow License Agreement. Since the public offering price in the IPO was $11.00 per share, the aggregate exit event value was greater than the guaranteed amount. Consequently, as of December 31, 2014, the Company no longer has a liability under the Glasgow License Agreement. |
Net_Loss_per_Share
Net Loss per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net Loss per Share | 15. Net Loss per Share | ||||||||||||
The Company computes net loss per share available to common stockholders in accordance with ASC 260-10, Earnings per Share (see Note 2, Significant Accounting Policies – Income (Loss) per Share). | |||||||||||||
The denominators used in the net loss per share available to common stockholders computations are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic: | |||||||||||||
Weighted average shares outstanding | 20,965,935 | 4,133,138 | 3,299,993 | ||||||||||
Diluted: | |||||||||||||
Weighted average shares outstanding – Basic | 20,965,935 | 4,133,138 | 3,299,993 | ||||||||||
Convertible preferred stock* | — | — | — | ||||||||||
Common stock options* | — | — | — | ||||||||||
Common stock warrants* | — | — | — | ||||||||||
Convertible promissory notes (as converted)* | — | — | — | ||||||||||
Demoninator for diluted net loss per share available to common stockholders | 20,965,935 | 4,133,138 | 3,299,993 | ||||||||||
* | No amounts were considered as their effects would be anti-dilutive. | ||||||||||||
Basic and diluted net loss per share available to common stockholders are computed as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net loss | $ | (17,745 | ) | $ | (3,963 | ) | $ | (6,271 | ) | ||||
Add back: extinguishment of preferred shares | — | 891 | — | ||||||||||
Net loss available to common stockholders – Basic and Diluted | $ | (17,745 | ) | $ | (3,072 | ) | $ | (6,271 | ) | ||||
Net loss per share available to common stockholders: | |||||||||||||
Basic and Diluted | $ | (0.85 | ) | $ | (0.74 | ) | $ | (1.90 | ) | ||||
Weighted-average common shares outstanding available to common stockholders | |||||||||||||
Basic and Diluted | 20,965,935 | 4,133,138 | 3,299,993 | ||||||||||
Securities outstanding at the end of the respective periods presented below, that could potentially dilute basic earnings per share in the future, that were not included in the computation of diluted net loss per share because to do so would have been antidilutive are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Convertible preferred stock | — | 12,554,171 | 11,594,757 | ||||||||||
Common stock options | 1,022,360 | 490,160 | 557,160 | ||||||||||
Common stock warrants | — | 19,851 | 19,851 | ||||||||||
Convertible promissory notes | — | — | 702,928 | ||||||||||
All shares of the Company’s convertible preferred stock were automatically converted to shares of the Company’s common stock upon the closing of the IPO on February 5, 2014 (see Note 9, Convertible Preferred Stock). All convertible promissory notes were either converted into shares of the Company’s Series D convertible preferred stock or repaid in cash by December 31, 2013 (see Note 7, Convertible Promissory Notes). All common stock warrants were exercised in a cashless exercise on July 31, 2014 (see Note 8, Long-Term Debt). |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. Related Party Transactions |
The Company is party to a consulting agreement with a founder and a common stockholder of the Company who provides scientific advisory services. Total expenses under this agreement were $169, $134 and $129 for the years ended December 31, 2014, 2013 and 2012, respectively. Included in accounts payable and accrued expenses as of December 31, 2014 and 2013, respectively, was $35 and $0 for amounts due to this stockholder. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | 17. Employee Benefit Plan |
In February 2006, the Company adopted a defined contribution retirement plan that complies with Section 401(k) of the Internal Revenue Code. All employees over the age of 21 are eligible to participate in the plan after three consecutive months of service. Employees are able to defer a portion of their pay into the plan on the first day of the quarter on or after the day all age and service requirements have been met. The plan allows the Company to match employee contributions; however, there have not been any matching contributions paid through December 31, 2014. Effective January 1, 2015, all eligible employees will receive an employer contribution equal to 3% of their salary up to the annual IRS limit. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 18. Commitments and Contingencies | ||||
Operating Leases | |||||
The Company leases its operating facility located in Shelton, Connecticut. The lease agreement, as amended, requires monthly lease payments through October 2017. The lease is renewable thereafter for two successive terms of five years. At inception of the lease, the Company received an incentive allowance from the landlord of $2,127. The Company recorded the incentive allowance as leasehold improvements and deferred lease obligation. The Company is recording monthly rent expense associated with the lease on a straight-line basis over the ten-year minimum term of the lease reduced by the amortization of the deferred lease obligation over the same time period. As a result of this straight-line basis, deferred lease obligation includes $582 and $790 of unamortized incentive allowance plus $292 and $349 of accrued rent at December 31, 2014 and 2013, respectively. | |||||
Total rent expense under the operating lease was $643, $616 and $618 for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||
Future minimum rental payments under the operating lease at December 31, 2014 are as follows: | |||||
2015 | $ | 886 | |||
2016 | 913 | ||||
2017 | 740 | ||||
Total | $ | 2,539 | |||
In conjunction with the signing of the Shelton, Connecticut lease, the Company entered into a standby letter of credit agreement for $2,170, which expires on May 31, 2017 as a security deposit for the premises. In accordance with the terms of the lease, because no drawing was made against the standby letter of credit nor has any default under the operating lease occurred, the amount of the letter of credit was automatically reduced by $294 annually starting March 1, 2008 until the stated amount reached a balance of $700, which occurred in 2012. This standby letter of credit is secured with restricted cash (refer to Note 5, Restricted Cash). |
Legal_Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | 19. Legal Matters |
From time to time, the Company may become involved in arbitrations or legal proceedings that arise in the ordinary course of its business. The Company cannot predict the timing or outcome of these claims and proceedings. Currently, the Company is not involved in any such arbitration and/or legal proceeding that it expects to have a material effect on its financial condition, results of operations or business. |
Quarterly_Results_of_Operation
Quarterly Results of Operations | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations | 20. Quarterly Results of Operations (Unaudited) | ||||||||||||||||
The following tables contain selected financial data for each quarter of the years ended December 31, 2014 and 2013. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for each quarter of the years ended December 31, 2014 and 2013. The operating results for any period are not necessarily indicative of results for any future periods. | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 178 | $ | 960 | $ | 1,125 | $ | 914 | |||||||||
Net loss available to common stockholders – Basic and Diluted | (3,383 | ) | (3,645 | ) | (6,545 | ) | (4,172 | ) | |||||||||
Loss per share available to common stockholders – Basic and Diluted | $ | (0.22 | ) | $ | (0.16 | ) | $ | (0.29 | ) | $ | (0.18 | ) | |||||
Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | — | $ | 9,973 | $ | 1,018 | $ | 973 | |||||||||
Net (loss) income available to common stockholders – Basic | (1,748 | ) | 1,475 | (4,575 | ) | (2,093 | ) | ||||||||||
Net (loss) income available to common stockholders – Diluted | (1,748 | ) | 5,424 | (4,575 | ) | (2,093 | ) | ||||||||||
(Loss) income per share available to common stockholders – Basic | $ | (0.48 | ) | $ | 0.34 | $ | (1.07 | ) | $ | (0.49 | ) | ||||||
(Loss) income per share available to common stockholders – Diluted | $ | (0.48 | ) | $ | 0.33 | $ | (1.07 | ) | $ | (0.49 | ) | ||||||
During the year ended December 31, 2013, the Company used the two-class method to calculate income (loss) per share (refer to Note 2 – Significant Accounting Policies – Income (Loss) per Share). During the second quarter of the year ended December 31, 2013, the Company recorded net income, although for the full year ended December 31, 2013, the Company recorded net loss. For purposes of calculating basic net income per share for the second quarter, the Company excluded from the numerator $3,869 of net income attributable to participating securities. For purposes of calculating diluted earnings per share, such amount was included in the numerator together with interest on convertible promissory notes. Common shares issuable upon exercise of outstanding stock options, assumed conversion of convertible preferred stock and convertible promissory notes were included in the denominator on an as-if converted basis. | |||||||||||||||||
However, net loss for the full year ended December 31, 2013 was not allocated to preferred stockholders because they are not obligated to participate in the Company’s net losses. Diluted loss per share excluded common shares issuable upon exercise of outstanding stock options, assumed conversion of convertible preferred stock and convertible promissory notes because they were anti-dilutive. Consequently, the sum of net (loss) income and net (loss) income per share for the quarters in the table above do not equal those measures for the full year ended December 31, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Use of Estimates | Use of Estimates | ||||||||
The preparation of financial statements in conformity with generally-accepted accounting principles in the United States (“GAAP”) requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from the Company’s estimates and assumptions. Significant estimates include useful lives of fixed assets, the periods over which certain revenues will be recognized, including licensing and collaborative revenue recognized from non-refundable up-front and milestone payments, the determination of prepaid research and development clinical costs and accrued research projects, the amount of non-cash compensation costs related to share-based payments to employees and non-employees and the periods over which those costs are expensed and the likelihood of realization of deferred tax assets. | |||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||
The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities. The carrying amount of each of those financial instruments is generally considered to be representative of their respective fair values because of the short-term nature of those instruments. | |||||||||
Current accounting guidance defines fair value, establishes a framework for measuring fair value in accordance with Accounting Standards Codification (“ASC”) section 820, and requires certain disclosures about fair value measurements. | |||||||||
The valuation techniques included in the guidance are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect market assumptions and are classified into the following fair value hierarchy: | |||||||||
• | Level 1 – Observable inputs – quoted prices in active markets for identical assets and liabilities. | ||||||||
• | Level 2 – Observable inputs other than the quoted prices in active markets for identical assets and liabilities – such as quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, or other inputs that are observable or can be corroborated by observable market data. | ||||||||
• | Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable and require the company to develop relevant assumptions. | ||||||||
The following table summarizes the financial assets measured at fair value on a recurring basis as of December 31, 2014 and 2013 and by level within the fair value hierarchy: | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Level 1 | Level 1 | ||||||||
Financial assets | |||||||||
Cash equivalents: | |||||||||
Money market savings account and checking account | $ | 52,663 | $ | 12,357 | |||||
Restricted cash: | |||||||||
Bank Certificate of Deposit | 700 | 700 | |||||||
Total | $ | 53,363 | $ | 13,057 | |||||
The following table represents a rollforward of the fair value of Level 3 instruments (significant unobservable inputs): | |||||||||
Year Ended | |||||||||
December 31, 2013 | |||||||||
Liabilities | |||||||||
Balance at beginning of period | $ | 76 | |||||||
Amounts acquired or issued | — | ||||||||
Net (gains) losses (realized and unrealized) | (76 | ) | |||||||
Net settlements | — | ||||||||
Balance at end of period | $ | — | |||||||
The balance at January 1, 2013 includes (1) the fair value of the contingent call option liability related to the convertible promissory notes ($41) (see Note 7, Convertible Promissory Notes) and (2) the fair value of the liability under the Glasgow License Agreement ($35) (see Note 14, License and Research Agreement). The gain related to the convertible promissory notes was recognized as an offset to interest expense and the gain related to the Glasgow License Agreement was recognized as an offset to R&D expense. | |||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature. | |||||||||
Concentration of Credit Risk | Concentration of Credit Risk | ||||||||
Financial instruments, which potentially subject the Company to significant concentration of credit risk, consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. | |||||||||
Property and Equipment | Property and Equipment | ||||||||
Property and equipment (consisting of computer, office and laboratory equipment, furniture and fixtures, software and leasehold improvements) are stated at cost, net of accumulated depreciation and amortization of leasehold improvements. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the lesser of their useful lives or the life of the lease. | |||||||||
Asset Category | Useful Lives | ||||||||
Computer and office equipment | 5 years | ||||||||
Laboratory equipment | 8 years | ||||||||
Furniture and fixtures | 7 years | ||||||||
Software | 3 years | ||||||||
Leasehold improvements | 10 years | ||||||||
Long-Lived Assets | Long-Lived Assets | ||||||||
ASC 360, Property, Plant and Equipment, addresses the financial accounting and reporting for impairment or disposal of long-lived assets. The Company reviews the recorded values of long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. | |||||||||
Common Stock and Convertible Preferred Stock Valuation | Common Stock and Convertible Preferred Stock Valuation | ||||||||
Due to the absence of an active market for the Company’s common stock and convertible preferred stock prior to its IPO, the Company utilized methodologies in accordance with the framework of the American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation (the “Practice Aid”) to estimate the fair value of its common stock and convertible preferred stock at various reporting dates and in conjunction with various transactions. Each valuation included estimates and assumptions that required the Company’s judgment. These estimates included assumptions regarding future performance, including the probability of successful completion of preclinical studies and clinical trials and FDA approval of product candidates containing CR845, and the probability and estimated time to complete financing and collaborative transactions. Significant changes to the key assumptions used in the valuations could have resulted in different fair values of common stock and convertible preferred stock at each valuation date. | |||||||||
Revenue Recognition | Revenue Recognition | ||||||||
In general, the Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; the Company’s price to the customer is fixed or determinable; collectability is reasonably assured and delivery has occurred or services have been rendered. | |||||||||
The Company has entered into license agreements to develop, manufacture and commercialize drug products. The terms of these agreements typically contain multiple elements, including licenses and research and development services. Payments to the Company under these agreements may include nonrefundable license fees, payments for research activities, payments based upon the achievement of certain milestones and royalties on any resulting net product sales. There are no performance, cancellation, termination or refund provisions in any of the arrangements that contain material financial consequences to the Company. | |||||||||
The Company records revenue related to these agreements in accordance with ASC 605-25, Revenue Recognition Multiple-Element Arrangements. In order to account for these agreements, the Company identifies the deliverables included within an arrangement and evaluates which deliverables represent separate units of accounting based on whether certain criteria are met, including whether the delivered element has stand-alone value to the counterparty. The consideration received is then allocated among the separate units of accounting based on each unit’s relative selling price. The identification of individual elements in a multiple-element arrangement and the estimation of the selling price of each element involves significant judgment, including evaluation as to whether each delivered element has standalone value. | |||||||||
The Company determines the estimated selling price for deliverables within each agreement using vendor specific objective evidence (“VSOE”) of selling price, if available, or third party evidence (“TPE”) of selling price if VSOE is not available, or the Company’s best estimate of selling price, if neither VSOE nor TPE is available. Determining the best estimate of selling price for a deliverable requires significant judgment. Because the Company does not have VSOE or third party evidence of selling price to determine the estimated selling price of a license to its proprietary technology, it typically uses its best estimate of a selling price to estimate the selling prices for licenses to its proprietary technology. In making these estimates, the Company considers market conditions and entity-specific factors, including those contemplated in negotiating the agreements, as well as internally developed estimates that include assumptions related to the market opportunity, estimated development costs, probability of success and the time needed to commercialize a product candidate pursuant to the license. In validating its best estimate of selling price, the Company evaluates whether changes in the key assumptions used to determine its best estimate of selling price will have a significant effect on the allocation of arrangement consideration between deliverables. The Company recognizes consideration allocated to an individual element when all other revenue recognition criteria are met for that element. | |||||||||
Arrangement consideration allocated to license deliverables that represent separate units of accounting is recognized as revenue at the outset of the agreement assuming the general criteria for revenue recognition noted above have been met. Arrangement consideration allocated to license deliverables which do not represent separate units of accounting is deferred. The Company has determined that its license deliverables represent separate units of accounting because the counterparty has the right to sublicense and manufacture in its territory, as defined. | |||||||||
Arrangement consideration allocated to research and development services which represent separate units of accounting is recognized as the services are performed, assuming the general criteria for revenue recognition noted above have been met. The Company has determined that its research and developments services deliverables, as applicable, represent separate units of accounting because similar services are sold separately by other vendors. | |||||||||
The Company’s license agreements include contingent milestone payments related to specified clinical development milestones and regulatory milestones. Development milestones are payable when a product candidate initiates or advances into different clinical trial phases. Regulatory milestones are payable upon submission for marketing approval with the FDA or other countries’ regulatory authorities or on receipt of actual marketing approvals for the compound or for additional indications. At the inception of each agreement that includes milestone payments, the Company evaluates whether each such payment is a milestone payment as defined by ASC 605-28, Revenue Recognition – Milestone Method, because achievement requires performance by the Company and, at inception of the arrangement, there is substantive uncertainty that the event will be achieved, or whether the payment is a contingent payment, because achievement requires performance by the counterparty. | |||||||||
If the payment meets the criteria of a milestone payment, the Company evaluates whether such milestone is considered to be substantive. This evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) the entity’s performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, (b) the consideration relates solely to past performance and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. The Company evaluates factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the respective milestone and the level of effort and investment required to achieve the respective milestone in making this assessment. | |||||||||
The Company recognizes substantive milestone payments as revenue upon the achievement of the milestone, assuming all other revenue recognition criteria are met. If any milestone payment is considered not to be a substantive milestone or is considered to be a contingent payment, the Company initially defers the milestone payment, allocates it to the deliverables based on relative selling price in the same proportion as at inception of the agreement, immediately recognizes revenue to the extent of any delivered elements and recognizes the portion attributable to any undelivered elements over the remaining term of its performance obligations. If no such performance obligations exist, milestones that are considered not to be substantive or are considered to be contingent payments are generally recognized as revenue upon achievement, assuming all other revenue recognition criteria are met. | |||||||||
Royalty revenue is recognized when earned. To date, no royalties have been earned or were otherwise due to the Company. | |||||||||
Research and Development Expenses | Research and Development Expenses | ||||||||
Research and development (“R&D”) costs are charged to expense as incurred. Costs incurred under agreements with third parties are charged to expense as incurred in accordance with the specific contractual performance terms of such agreements. Research and development expenses include, among other costs, salaries and other personnel-related costs, costs to conduct clinical trials, costs to manufacture product candidates and clinical supplies, laboratory supplies costs and facility-related costs. Non-refundable research and development advance payments are deferred and capitalized as prepaid R&D expense. The capitalized amounts are expensed as the related goods are delivered or services are performed. As of December 31, 2014 and 2013, the Company recorded $177 and $262 as prepaid R&D expense, respectively. | |||||||||
Income Taxes | Income Taxes | ||||||||
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred income tax assets are reduced, as necessary, by a valuation allowance when management determines it is more likely than not that some or all of the tax benefits will not be realized. | |||||||||
The Company applies the provisions of ASC 740, Income Taxes, which prescribes a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. The financial statements reflect expected future tax consequences of such positions presuming the taxing authorities possess full knowledge of the position and all relevant facts. There were no material uncertain tax positions taken as of December 31, 2014 and December 31, 2013. The Company does not have any interest or penalties accrued related to tax positions as it does not have any unrecognized tax benefits. In the event the Company determines that accrual of interest or penalties are necessary in the future, the amount will be presented as a component of interest expense. | |||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||
The Company grants stock options to employees, non-employee members of the Company’s Board of Directors and non-employee consultants as compensation for services performed. Employee and non-employee members of the Board of Directors’ awards of stock-based compensation are accounted for in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees and non-employee directors, including grants of stock options, to be recognized in the Statements of Operations based on their grant date fair values. The grant date fair value of stock options is estimated using the Black-Scholes option valuation model. | |||||||||
Using this model, fair value is calculated based on assumptions with respect to (i) the fair value or market price of the Company’s common stock on the grant date; (ii) expected volatility of the Company’s common stock price, (iii) the periods of time over which employees and members of the Company’s Board of Directors are expected to hold their options prior to exercise (expected lives), (iv) expected dividend yield on the Company’s common stock, and (v) risk-free interest rates. | |||||||||
Prior to the effective date of the registration statement related to the Company’s IPO in January 2014, the Company utilized methodologies in accordance with the Practice Aid to determine the fair value of the Company’s common stock on any given date. Subsequently, the stock price input to the Black-Scholes model for each stock option granted is the closing price of the Company’s common stock as quoted on The NASDAQ Global Market on the grant date. | |||||||||
Expected volatility is based on an analysis of guideline companies in accordance with ASC 718. The expected life of stock options granted to employees and members of the Company’s Board of Directors is determined using the average of the vesting period and term, an accepted method for the Company’s option grants under the SEC’s Staff Accounting Bulletin No. 107, Share-Based Payment. The expected dividend yield is zero as the Company has never paid dividends and does not currently anticipate paying any in the foreseeable future. Risk-free interest rates are based on quoted U.S. Treasury rates for securities with maturities approximating the options’ expected lives. | |||||||||
The Company applies a forfeiture rate to the number of unvested awards in each reporting period in order to accrue share-based compensation expense based on an estimate of the number of awards that are expected to vest. Estimated forfeiture rates are based upon historical data of awards that were cancelled prior to vesting. The Company adjusts the total amount of compensation cost recognized for each award, in the period in which each award vests, to reflect the actual forfeitures related to that award. To the extent that the actual forfeiture rate for an award is lower than the estimated forfeiture rate, additional compensation expense is recorded in the period that the award vests. Changes in the Company’s estimated forfeiture rate will result in changes in the rate at which compensation cost for an award is recognized over its vesting period. | |||||||||
The Company accounts for options granted to non-employee consultants under ASC 505-50, Equity-Based Payments to Non-Employees. As such, the Company estimates the fair value of each such option using the Black-Scholes model, with the expected life of stock options granted to non-employees initially equal to the options’ maximum contractual life of ten years, at issuance, and then revalues the option on each reporting date until performance is complete. Under ASC 505-50, upon re-measurement of each award, income or expense is recognized during its vesting term. Compensation cost relating to awards with service-based graded vesting schedules is recognized using the straight-line method. | |||||||||
Income (Loss) Per Share | Income (Loss) Per Share | ||||||||
The Company computes basic net income (loss) per share by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted net income per share includes the potential dilutive effect of common stock equivalents as if such securities were converted or exercised during the period, when the effect is dilutive. Common stock equivalents include convertible preferred stock, convertible promissory notes and outstanding stock options and stock warrants, which are included under the treasury stock method when dilutive. The computation of diluted net loss per share for each of the years ended December 31, 2012, 2013 and 2014 does not include common stock equivalents since such inclusion would be antidilutive. | |||||||||
During the years ended December 31, 2013 and 2012, the Company computed basic net income (loss) per share available to common stockholders using the “two-class” method, which includes the weighted average number of shares of common stock outstanding during the period and other securities that participate in dividends (a participating security). Prior to the IPO, the Company’s shares of convertible preferred stock were participating securities as defined by ASC 260-10, Earnings Per Share. In conjunction with the closing of the IPO on February 5, 2014, all outstanding shares of convertible preferred stock were automatically converted to shares of the Company’s common stock (see Note 9, Convertible Preferred Stock). | |||||||||
Under the two-class method, basic net income (loss) per share available to common stockholders is computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. The Company allocates net income on a pari passu (equal) basis to both common and preferred stockholders. Net losses are not allocated to preferred stockholders as they do not have an obligation to share in the Company’s net losses. Diluted net income (loss) per share is computed using the more dilutive of (1) the two-class method, or (2) the “if-converted” method. | |||||||||
All calculations of net income (loss) per share, both basic and diluted, reflect the 1-for-2.5 reverse stock split (see Note10, Stockholders’ (Deficit) Equity). Refer to Note 15, Net Loss per Share, for the Company’s calculations of net loss per share available to common stockholders for the periods presented. | |||||||||
Segment Reporting | Segment Reporting | ||||||||
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment, which includes all activities related to the discovery and development of novel therapeutics to treat serious medical conditions, including pain and pruritus. | |||||||||
Leases | Leases | ||||||||
The Company recognizes rent expense for operating leases on a straight-line basis over the term of the lease, beginning on the date the Company takes possession of the property. Rent expense includes the base amounts stated in the lease agreement as well as the effect of reduced or free rent and rent escalations. At lease inception, the Company determines the lease term by assuming the exercise of those renewal options that are reasonably assured because of the significant economic penalty that exists for not exercising those options. The exercise of renewal options is at the Company’s sole discretion. The expected lease term is one of the factors used to determine whether a lease is classified operating or capital and is used to calculate the straight-line rent expense. The difference between the cash paid to the landlord and the amount recognized as rent expense on a straight-line basis is included in deferred rent and classified within long-term liabilities. Cash reimbursements received from landlords for leasehold improvements and other cash payments received from landlords as lease incentives are recorded as deferred rent and classified as long-term liabilities. Deferred rent related to landlord incentives is amortized using the straight-line method over the lease term as an offset to rent expense. Penalties paid to landlords to terminate a lease before the contractual end date of the lease are recognized on an undiscounted basis in the Statements of Operations. | |||||||||
Litigation Reserves | Litigation Reserves | ||||||||
The Company may become involved in the future in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. Accruals are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. The Company reviews these reserves at least quarterly and adjusts these reserves to reflect current law, progress of each case, opinions and views of legal counsel and other advisers, the Company’s experience in similar matters and intended response to the litigation. The Company expenses amounts for administering or litigating claims as incurred. Accruals for legal proceedings, if any, are included in Accounts payable and accrued expenses in the Balance Sheets. | |||||||||
Reclassifications | Reclassifications | ||||||||
Certain revenue within the Statement of Operations has been reclassified from Collaborative revenue to Clinical compound revenue to conform to the current year presentation. | |||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 provides a single authoritative source of guidance and, thereby, is meant to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. ASU 2014-09 changes the principle under which the Company will recognize revenue from contracts with customers from one which requires the Company to satisfy specific criteria before recognizing revenue to one which requires the Company to recognize revenue in an amount that reflects the consideration to which it expects to be entitled in exchange for the transfer of promised goods or services to customers. The amount of revenue to be recognized in any reporting period is determined by applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for the Company for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period (i.e., January 1, 2017). Early application is not permitted. The Company is allowed to adopt ASU 2014-09 either (1) retrospectively to each prior reporting period presented using several practical expedients related to completed contracts and required disclosures, or (2) retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application, including disclosure of the effect of using this method of adoption on the financial statement line items. The Company is currently in the process of deciding which method of adoption it will use and the effect of adoption of ASU 2014-09 on its results of operations, financial position and cash flows. | |||||||||
In August 2014, the FASB issued Accounting Standards Update 2014-15 Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 codifies, for the first time within GAAP, management’s responsibility to evaluate whether there is substantial doubt about the Company’s ability to continue as a going concern and to provide related footnote disclosures in connection with preparing financial statements for each annual and interim reporting period. Substantial doubt about the Company’s ability to continue as a going concern exists when there are conditions or events, considered in the aggregate, that are known and reasonably knowable at the date that the financial statements are issued, that indicate that the Company will be unable to meet its obligations as they become due within one year after that date. ASU 2014-15 requires the Company to disclose the nature of those conditions or events when they are present, management’s plans to mitigate those conditions or events and whether or not such plans alleviated the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. Prior to adoption of ASU 2014-15, the Company evaluated the need to disclose its ability to continue as a going concern for a reasonable period of time based on projections of its ability to meet its obligations as they become due within a period of one year from the balance sheet date. Upon adoption of ASU 2014-15, that period will be extended to include one year from the date the financial statements are issued and the Company will be required to make the applicable disclosures in its financial statements. The Company does not expect that the adoption of ASU 2014-15 will have a material effect on its financial position, results of operations or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes the financial assets measured at fair value on a recurring basis as of December 31, 2014 and 2013 and by level within the fair value hierarchy: | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Level 1 | Level 1 | ||||||||
Financial assets | |||||||||
Cash equivalents: | |||||||||
Money market savings account and checking account | $ | 52,663 | $ | 12,357 | |||||
Restricted cash: | |||||||||
Bank Certificate of Deposit | 700 | 700 | |||||||
Total | $ | 53,363 | $ | 13,057 | |||||
Summary of Rollforward of Fair Value of Level 3 Instruments | The following table represents a rollforward of the fair value of Level 3 instruments (significant unobservable inputs): | ||||||||
Year Ended | |||||||||
December 31, 2013 | |||||||||
Liabilities | |||||||||
Balance at beginning of period | $ | 76 | |||||||
Amounts acquired or issued | — | ||||||||
Net (gains) losses (realized and unrealized) | (76 | ) | |||||||
Net settlements | — | ||||||||
Balance at end of period | $ | — | |||||||
Summary of Useful Lives of Property and Equipment | Property and equipment (consisting of computer, office and laboratory equipment, furniture and fixtures, software and leasehold improvements) are stated at cost, net of accumulated depreciation and amortization of leasehold improvements. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the lesser of their useful lives or the life of the lease. | ||||||||
Asset Category | Useful Lives | ||||||||
Computer and office equipment | 5 years | ||||||||
Laboratory equipment | 8 years | ||||||||
Furniture and fixtures | 7 years | ||||||||
Software | 3 years | ||||||||
Leasehold improvements | 10 years |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment, Net | Property and equipment, net consists of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Computer and office equipment | $ | 309 | $ | 275 | |||||
Laboratory equipment | 233 | 233 | |||||||
Furniture and fixtures | 156 | 153 | |||||||
Software | 126 | 126 | |||||||
Leasehold improvements | 7,453 | 7,453 | |||||||
$ | 8,276 | $ | 8,240 | ||||||
Less accumulated depreciation and amortization | 6,192 | 5,415 | |||||||
Property and equipment, net | $ | 2,084 | $ | 2,825 | |||||
Accounts_Payable_and_Accrued_E1
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accounts payable | $ | 515 | $ | 676 | |||||
Accrued research projects | 549 | 405 | |||||||
Accrued professional fees | 266 | 739 | |||||||
Accrued compensation and benefits | 504 | 83 | |||||||
Accrued other | 112 | 55 | |||||||
$ | 1,946 | $ | 1,958 | ||||||
Convertible_Preferred_Stock_Ta
Convertible Preferred Stock (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||
Schedule of Convertible Preferred Stock | The following tables summarize the outstanding Preferred Stock as of December 31, 2013 and December 31, 2012: | ||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Preferred | Preferred | Liquidation | Carrying | Common Stock | |||||||||||||||||
Shares | Shares Issued | Preference | Value | Issuable Upon | |||||||||||||||||
Authorized | and | Conversion | |||||||||||||||||||
Outstanding | |||||||||||||||||||||
Junior | 173,611 | 173,611 | $ | 500 | $ | 354 | 69,444 | ||||||||||||||
Junior A | 2,105,263 | 2,105,263 | 8,000 | 7,642 | 842,105 | ||||||||||||||||
Series A | 1,677,118 | 1,677,118 | 1,677 | 1,677 | 670,830 | ||||||||||||||||
Series B | 2,254,417 | 2,254,417 | 4,509 | 4,509 | 980,163 | ||||||||||||||||
Series C | 10,930,946 | 10,930,946 | 33,886 | 33,886 | 5,173,413 | ||||||||||||||||
Series D | 12,260,845 | 12,045,574 | 17,397 | 17,518 | 4,818,216 | ||||||||||||||||
29,402,200 | 29,186,929 | $ | 65,969 | $ | 65,586 | 12,554,171 | |||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Preferred | Preferred | Liquidation | Carrying | Common Stock | |||||||||||||||||
Shares | Shares Issued | Preference | Value | Issuable Upon | |||||||||||||||||
Authorized | and | Conversion | |||||||||||||||||||
Outstanding | |||||||||||||||||||||
Junior | 173,611 | 173,611 | $ | 500 | $ | 354 | 69,444 | ||||||||||||||
Junior A | — | — | — | — | — | ||||||||||||||||
Series A | 2,000,000 | 2,000,000 | 2,000 | 2,000 | 800,000 | ||||||||||||||||
Series B | 2,370,000 | 2,370,000 | 4,740 | 4,740 | 1,030,434 | ||||||||||||||||
Series C | 11,706,450 | 11,706,450 | 36,290 | 36,290 | 5,540,457 | ||||||||||||||||
Series D | 10,386,057 | 10,386,057 | 15,000 | 15,138 | 4,154,422 | ||||||||||||||||
26,636,118 | 26,636,118 | $ | 58,530 | $ | 58,522 | 11,594,757 | |||||||||||||||
Stockholders_Deficit_Equity_Ta
Stockholders' (Deficit) Equity (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Summary of Common Stock Reserved for Conversion of Preferred Stock and Exercise of Warrants and Options | The following table summarizes common stock reserved for conversion of Preferred Stock and the exercise of warrants and options at December 31, 2014 and 2013. On February 5, 2014, all shares of Preferred Stock automatically converted to shares of common stock (see Note 9, Convertible Preferred Stock). On July 31, 2014, all outstanding warrants were exercised (see Note 8, Long Term Debt). | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Conversion of Series A convertible preferred | — | 670,830 | |||||||
Conversion of Series B convertible preferred | — | 901,757 | |||||||
Conversion of Series C convertible preferred | — | 4,372,369 | |||||||
Conversion of Series D convertible preferred | — | 4,818,216 | |||||||
Conversion of Junior convertible preferred | — | 69,444 | |||||||
Conversion of Junior A convertible preferred | — | 842,105 | |||||||
Series B and C anti-dilution shares | — | 879,450 | |||||||
Exercise of warrant | — | 19,851 | |||||||
Exercise of stock options | 1,898,360 | 1,247,959 | |||||||
1,898,360 | 13,821,981 | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Stock Option Activity | A summary of the Company’s stock option activity related to employees, non-employee members of the Board of Directors and non-employee consultants as of December 31, 2014 and changes during the year then ended is as follows: | ||||||||||||
Number of | Weighted- | Aggregate | |||||||||||
Options | Average | Intrinsic | |||||||||||
Exercise Price | Value | ||||||||||||
Outstanding at December 31, 2013 | 490,160 | $ | 1.34 | ||||||||||
Granted | 884,000 | 11.24 | |||||||||||
Exercised | (191,800 | ) | 0.67 | ||||||||||
Forfeited | (160,000 | ) | 13.26 | ||||||||||
Outstanding at December 31, 2014 | 1,022,360 | $ | 8.16 | $ | 2,763 | ||||||||
Weighted average remaining contractual life as of December 31, 2014 (yrs) | 7.78 | ||||||||||||
Options exercisable at December 31, 2014 | 299,735 | $ | 2.11 | $ | 2,366 | ||||||||
Weighted average remaining contractual life as of December 31, 2014 (yrs) | 3.9 | ||||||||||||
Options vested and expected to vest at December 31, 2014 | 990,191 | $ | 8.05 | $ | 2,743 | ||||||||
Weighted average remaining contractual life as of December 31, 2014 (yrs) | 7.73 | ||||||||||||
Summary of Assumptions Used in Black-Scholes Option Pricing Model | The fair values of the stock options granted to those groups during the year ended December 31, 2014 were estimated using the Black-Scholes option valuation model with the following ranges of assumptions (see Note 2, Summary of Significant Accounting Policies – Stock-Based Compensation): | ||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | |||||||||||||
Risk-free interest rate | 1.64% – 2.72% | ||||||||||||
Expected volatility | 64.9% – 71.3% | ||||||||||||
Expected dividend yield | 0% | ||||||||||||
Expected life of employee and Board of Directors’ options (in years) | 6.25 | ||||||||||||
Expected life of non-employee options (in years) | 10 | ||||||||||||
Summary of Compensation Expense Relating to Stock Options | During the years ended December 31, 2014, 2013 and 2012, the Company recognized compensation expense in the accompanying Statements of Operations relating to stock options, as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Research and development | $ | 349 | $ | 71 | $ | 48 | |||||||
General and administrative | 1,022 | 52 | 13 | ||||||||||
Total stock option expense | $ | 1,371 | $ | 123 | $ | 61 | |||||||
Re-Measurement [Member] | |||||||||||||
Summary of Assumptions Used in Black-Scholes Option Pricing Model | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rate | 1.96% – 2.72% | 2.5% – 3.2% | 1.77% | ||||||||||
Expected volatility | 69% – 71% | 71% – 72% | 73% | ||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Expected life of non-employee options (in years) | 6 – 10 | 1.5 – 7 | 2 – 8 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Income Taxes (Benefit) | The Company’s benefit from income taxes is as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | (201 | ) | (30 | ) | (31 | ) | |||||||
(201 | ) | (30 | ) | (31 | ) | ||||||||
Deferred: | |||||||||||||
Federal | — | — | — | ||||||||||
State | — | — | — | ||||||||||
— | — | — | |||||||||||
Benefit from income taxes | $ | (201 | ) | $ | (30 | ) | $ | (31 | ) | ||||
Schedule of Reconciliation of Income Taxes Computed Using U.S. Federal Statutory Rate to that Reflected in Operations | A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations is as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income taxes using U.S. federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes, net of federal benefit | 5.23 | % | 6.03 | % | 5.6 | % | |||||||
Impact of R&D tax credit on effective tax rate | 3.03 | % | 12.04 | % | 0 | % | |||||||
Impact of foreign tax credit on effective tax rate | 0 | % | 0 | % | 3.27 | % | |||||||
Stock option shortfalls and cancellations | -0.69 | % | 0 | % | -2.54 | % | |||||||
Provision to return adjustments | -0.57 | % | -1.42 | % | -1.95 | % | |||||||
Change in valuation allowance | -39.88 | % | -49.9 | % | -37.89 | % | |||||||
1.12 | % | 0.75 | % | 0.49 | % | ||||||||
Schedule of Significant Components of Company's Deferred Tax Assets | Significant components of the Company’s deferred tax assets are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Net operating loss carryforwards | $ | 27,094 | $ | 21,433 | |||||||||
Federal and state tax credits | 3,508 | 2,947 | |||||||||||
Accelerated depreciation | 1,018 | 860 | |||||||||||
Deferred revenue | 566 | — | |||||||||||
Stock-based compensation expense | 333 | 85 | |||||||||||
Rent expense | 114 | 136 | |||||||||||
Amortization of R&D intangible assets | 56 | 67 | |||||||||||
Accrued vacation | 27 | 32 | |||||||||||
32,716 | 25,560 | ||||||||||||
Valuation allowance | (32,716 | ) | (25,560 | ) | |||||||||
Net deferred tax asset | $ | — | $ | — | |||||||||
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Denominators Used in Net Loss Per Share Available to Common Stockholders | The denominators used in the net loss per share available to common stockholders computations are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic: | |||||||||||||
Weighted average shares outstanding | 20,965,935 | 4,133,138 | 3,299,993 | ||||||||||
Diluted: | |||||||||||||
Weighted average shares outstanding – Basic | 20,965,935 | 4,133,138 | 3,299,993 | ||||||||||
Convertible preferred stock* | — | — | — | ||||||||||
Common stock options* | — | — | — | ||||||||||
Common stock warrants* | — | — | — | ||||||||||
Convertible promissory notes (as converted)* | — | — | — | ||||||||||
Demoninator for diluted net loss per share available to common stockholders | 20,965,935 | 4,133,138 | 3,299,993 | ||||||||||
* | No amounts were considered as their effects would be anti-dilutive. | ||||||||||||
Computation of Basic and Diluted Net Loss Per Share Available to Common Stockholders | Basic and diluted net loss per share available to common stockholders are computed as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net loss | $ | (17,745 | ) | $ | (3,963 | ) | $ | (6,271 | ) | ||||
Add back: extinguishment of preferred shares | — | 891 | — | ||||||||||
Net loss available to common stockholders – Basic and Diluted | $ | (17,745 | ) | $ | (3,072 | ) | $ | (6,271 | ) | ||||
Net loss per share available to common stockholders: | |||||||||||||
Basic and Diluted | $ | (0.85 | ) | $ | (0.74 | ) | $ | (1.90 | ) | ||||
Weighted-average common shares outstanding available to common stockholders | |||||||||||||
Basic and Diluted | 20,965,935 | 4,133,138 | 3,299,993 | ||||||||||
Schedule of Anti-Dilutive Common Stock Equivalents Excluded from Calculations of Diluted Net Loss per Share | Securities outstanding at the end of the respective periods presented below, that could potentially dilute basic earnings per share in the future, that were not included in the computation of diluted net loss per share because to do so would have been antidilutive are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Convertible preferred stock | — | 12,554,171 | 11,594,757 | ||||||||||
Common stock options | 1,022,360 | 490,160 | 557,160 | ||||||||||
Common stock warrants | — | 19,851 | 19,851 | ||||||||||
Convertible promissory notes | — | — | 702,928 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments Under Operating Leases | Future minimum rental payments under the operating lease at December 31, 2014 are as follows: | ||||
2015 | $ | 886 | |||
2016 | 913 | ||||
2017 | 740 | ||||
Total | $ | 2,539 | |||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Selected Financial Data for Each Quarter | The following tables contain selected financial data for each quarter of the years ended December 31, 2014 and 2013. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for each quarter of the years ended December 31, 2014 and 2013. The operating results for any period are not necessarily indicative of results for any future periods. | ||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 178 | $ | 960 | $ | 1,125 | $ | 914 | |||||||||
Net loss available to common stockholders – Basic and Diluted | (3,383 | ) | (3,645 | ) | (6,545 | ) | (4,172 | ) | |||||||||
Loss per share available to common stockholders – Basic and Diluted | $ | (0.22 | ) | $ | (0.16 | ) | $ | (0.29 | ) | $ | (0.18 | ) | |||||
Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | — | $ | 9,973 | $ | 1,018 | $ | 973 | |||||||||
Net (loss) income available to common stockholders – Basic | (1,748 | ) | 1,475 | (4,575 | ) | (2,093 | ) | ||||||||||
Net (loss) income available to common stockholders – Diluted | (1,748 | ) | 5,424 | (4,575 | ) | (2,093 | ) | ||||||||||
(Loss) income per share available to common stockholders – Basic | $ | (0.48 | ) | $ | 0.34 | $ | (1.07 | ) | $ | (0.49 | ) | ||||||
(Loss) income per share available to common stockholders – Diluted | $ | (0.48 | ) | $ | 0.33 | $ | (1.07 | ) | $ | (0.49 | ) |
Business_Additional_Informatio
Business - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jan. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | Dec. 31, 2011 |
Nature Of Business [Line Items] | ||||||||||
Date of formation | 2-Jul-04 | |||||||||
Common stock, shares issued | 5,750,000 | 22,802,039 | 22,802,039 | 4,288,243 | ||||||
Common stock, shares issued upon exercise by underwriters | 750,000 | |||||||||
Aggregate gross offering proceeds | $63,250 | |||||||||
Net proceeds as a result of IPO | 56,297 | 57,762 | ||||||||
Underwriting discounts and commissions | 6,953 | |||||||||
Net proceeds from equity financing and issuance of debt prior to the IPO | 73,309 | |||||||||
Unrestricted cash and cash equivalents | 52,663 | 52,663 | 12,357 | 1,117 | 4,097 | |||||
Accumulated deficit | 80,201 | 80,201 | 62,456 | |||||||
Net cash (used in) provided by operating activities | 17,642 | -2,829 | 6,031 | |||||||
Net loss available to common stockholders | 4,172 | 6,545 | 3,645 | 3,383 | 17,745 | 3,072 | 6,271 | |||
Initial Public Offering [Member] | ||||||||||
Nature Of Business [Line Items] | ||||||||||
Public offering price | $11 | $11 | $11 | |||||||
Maruishi Stock Purchase Agreement [Member] | ||||||||||
Nature Of Business [Line Items] | ||||||||||
Net proceeds from equity financing and issuance of debt prior to the IPO | 7,642 | |||||||||
Maruishi License Agreement [Member] | ||||||||||
Nature Of Business [Line Items] | ||||||||||
Upfront license fee | $15,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) (Recurring [Member], Level 1 [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets | ||
Total | $53,363 | $13,057 |
Money Market Savings Account and Checking Account [Member] | ||
Financial assets | ||
Cash equivalents | 52,663 | 12,357 |
Bank Certificate of Deposit [Member] | ||
Financial assets | ||
Restricted cash | $700 | $700 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Summary of Rollforward of Fair Value of Level 3 Instruments (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Liabilities | |
Balance at beginning of period | $76 |
Amounts acquired or issued | 0 |
Net (gains) losses (realized and unrealized) | -76 |
Net settlements | $0 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2013 | Apr. 30, 2013 | |
Segments | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of liability | $76,000 | ||||
Original maturity period of highly liquid investments | Three months or less | ||||
Royalty revenue | 0 | ||||
Prepaid R&D expense | 177,000 | 262,000 | |||
Expected dividend yield | 0.00% | ||||
Reverse stock split, description | 1-for-2.5 reverse stock split | ||||
Reverse stock split, ratio | 2.5 | ||||
Number of operating segments | 1 | ||||
Glasgow License Agreement [Member] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of liability | 0 | 35,000 | |||
Beneficial Conversion Feature on Convertible Promissory Notes [Member] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of liability | $41,000 | $0 | |||
Maximum [Member] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Maximum contractual life | 10 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Summary of Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Computer and Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 5 years |
Laboratory Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 8 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 7 years |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 3 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 10 years |
Prepaid_Expenses_Additional_In
Prepaid Expenses - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $287 | $2,140 |
Prepaid insurance | 92 | 34 |
Prepaid R&D clinical costs | 177 | 262 |
Other costs | 18 | 11 |
IPO costs | $1,833 |
Property_and_Equipment_Net_Pro
Property and Equipment, Net - Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $8,276 | $8,240 |
Less accumulated depreciation and amortization | 6,192 | 5,415 |
Property and equipment, net | 2,084 | 2,825 |
Computer and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 309 | 275 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 233 | 233 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 156 | 153 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 126 | 126 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $7,453 | $7,453 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $783 | $789 | $1,021 | |
Proceeds from sale of property and equipment | 511 | |||
Loss on sale of property and equipment | 286 | |||
Laboratory Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from sale of property and equipment | 511 | |||
Loss on sale of property and equipment | $286 |
Restricted_Cash_Additional_Inf
Restricted Cash - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash in long-term assets | $700 | $700 | |
Standby Letter of Credit [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Letter of credit, remaining amount | $700 | $700 |
Accounts_Payable_and_Accrued_E2
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accounts payable | $515 | $676 |
Accrued research projects | 549 | 405 |
Accrued professional fees | 266 | 739 |
Accrued compensation and benefits | 504 | 83 |
Accrued other | 112 | 55 |
Total | $1,946 | $1,958 |
Convertible_Promissory_Notes_A
Convertible Promissory Notes - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Oct. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Aug. 28, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2012 | Feb. 28, 2013 | Feb. 28, 2013 | Jan. 01, 2013 | Dec. 28, 2012 | |
Debt Instrument [Line Items] | |||||||||||
Fair value of liability | $76,000 | $76,000 | |||||||||
Percentage of discount on conversion price | 10.00% | ||||||||||
Probability of closing a $10,000 equity offering before August 28, 2013 | 0.00% | ||||||||||
Convertible promissory notes converted to Series D convertible preferred stock, Value | 3,888,000 | ||||||||||
Repayment of convertible promissory notes | 311,000 | 311,000 | |||||||||
Deferred financing costs | 117,000 | 4,000 | 4,000 | ||||||||
Maruishi License Agreement [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount received in connection with Maruishi transaction | 23,000,000 | ||||||||||
Series D Convertible Preferred Stock [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Convertible promissory notes converted to Series D convertible preferred stock, Shares | 2,692,291 | ||||||||||
Convertible promissory notes converted to Series D convertible preferred stock, Value | 3,888,000 | ||||||||||
Optional Conversion Feature [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt conversion feature, description | The optional conversion feature allowed the Note holder, any time prior to the Maturity Date, to elect to convert the balance of the note plus accrued interest into Series D convertible preferred stock at a conversion price of $1.444244 per share. | ||||||||||
Amortization of debt discount to interest expense | 3,407,000 | 25,000 | |||||||||
Optional Conversion Feature [Member] | Series D Convertible Preferred Stock [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Conversion price per share | $1.44 | $1.44 | |||||||||
Estimated fair value of preferred stock | $2.61 | ||||||||||
Mandatory Conversion Feature [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt conversion feature, description | The mandatory conversion of the Notes would have occurred in the event the Company issued or sold equity securities on or before August 28, 2013 of not less than $10,000. In this event, the Notes plus all accrued interest would have automatically converted into the issued class of equity securities at a price per share equal to 90% of the cash price paid by the investors in the new equity securities. | ||||||||||
Latest date equity securities issued for mandatory conversion | 28-Aug-13 | ||||||||||
Conversion condition, value of shares issued | 10,000,000 | ||||||||||
Amount in which promissory notes are converted as a percentage of the price paid by new investors | 90.00% | ||||||||||
Beneficial Conversion Feature on Convertible Promissory Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt, face amount | 4,000,000 | 1,462,000 | 1,462,000 | 2,538,000 | |||||||
Number of closings | 2 | ||||||||||
Debt, maturity date | 28-Aug-13 | ||||||||||
Debt, initial closing date | 28-Dec-12 | ||||||||||
Debt, final closing date | 28-Feb-13 | ||||||||||
Debt, interest rate | 8.00% | 8.00% | |||||||||
Beneficial conversion feature | 1,382,000 | 2,050,000 | |||||||||
Fair value of liability | 0 | 41,000 | |||||||||
Beneficial Conversion Feature on Convertible Promissory Notes [Member] | Optional Conversion Feature [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Beneficial conversion feature | 2,050,000 | 1,382,000 | |||||||||
Beneficial Conversion Feature on Convertible Promissory Notes [Member] | Mandatory Conversion Feature [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of liability | 41,000 | 41,000 | |||||||||
Convertible Preferred Stock [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Preferred stock converted to common shares | -2,246,743 | -29,186,929 | 2,246,743 | 2,246,743 | |||||||
Carrying value of convertible preferred stock | 4,466,000 | ||||||||||
Common Stock [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Preferred stock converted to common shares | 959,545 | 12,554,171 | 959,545 | 959,545 | |||||||
Fair value of common stock issued | 3,575,000 | ||||||||||
Accumulated Deficit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain on conversion of preferred stock to common stock | $891,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | Sep. 30, 2007 | Sep. 04, 2012 |
Debt Instrument [Line Items] | |||||||
Repayment of long-term debt | $307 | $446 | |||||
Exercise price, per share | $10.08 | ||||||
Number of shares to be purchased under warrant | 19,851 | ||||||
Warrant exercise date | 31-Jul-14 | ||||||
Common stock issued in result of warrants exercise | 6,383 | ||||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt, face amount | 4,000 | ||||||
Debt, interest rate | 7.00% | 8.50% | |||||
Debt, frequency of periodic payments | Monthly installments over five years | ||||||
Debt, payment period | 5 years | ||||||
Debt, default description | If the Company failed to maintain its Connecticut presence, all amounts due under the Loan would be immediately due and payable with the cumulative interest rate increasing to 25%. | ||||||
Debt, cumulative interest rate | 25.00% | ||||||
Repayment of long-term debt | $307 |
Convertible_Preferred_Stock_Ad
Convertible Preferred Stock - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Feb. 05, 2014 | Dec. 31, 2014 | Feb. 28, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-12 | Apr. 30, 2013 | |
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 29,186,929 | 0 | 29,186,929 | 26,636,118 | ||||||
Convertible Preferred stock, par value | $0.00 | 0.001 | ||||||||
Convertible Preferred stock, shares outstanding | 29,186,929 | 0 | 29,186,929 | 26,636,118 | ||||||
Conversion of stock, shares issued | 12,554,171 | |||||||||
Closing date of IPO | 5-Feb-14 | |||||||||
Convertible Preferred stock, shares authorized | 0 | 29,402,200 | 26,636,118 | |||||||
Liquidation preference | $0 | 65,969,000 | $58,530,000 | |||||||
Preferred stock to common stock conversion ratio | 2.5 | |||||||||
Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Preferred stock converted to common shares | -29,186,929 | 2,246,743 | 2,246,743 | -2,246,743 | ||||||
Convertible promissory notes converted to Series D convertible preferred stock, Shares | 2,692,291 | |||||||||
Convertible Preferred stock, shares outstanding | 29,186,929 | 26,636,118 | 26,462,507 | |||||||
Dividends declared or paid | 0 | |||||||||
Common Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Preferred stock converted to common shares | 12,554,171 | 959,545 | 959,545 | 959,545 | ||||||
Junior Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 173,611 | 173,611 | ||||||||
Convertible Preferred stock, shares outstanding | 173,611 | 173,611 | ||||||||
Convertible Preferred stock, shares authorized | 173,611 | 173,611 | ||||||||
Liquidation preference | 500,000 | 500,000 | ||||||||
Preferred stock to common stock conversion ratio | 0.4 | |||||||||
Junior Convertible Preferred Stock [Member] | Chong Kun Dang Pharmaceutical Corporation [Member] | Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 173,611 | |||||||||
Convertible Preferred stock, par value | $0.00 | |||||||||
Convertible Preferred stock, estimated fair value | 354,000 | |||||||||
Junior A Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 2,105,263 | |||||||||
Convertible Preferred stock, shares outstanding | 2,105,263 | |||||||||
Convertible Preferred stock, shares authorized | 2,105,263 | |||||||||
Liquidation preference | 8,000,000 | |||||||||
Preferred stock to common stock conversion ratio | 0.4 | |||||||||
Junior A Convertible Preferred Stock [Member] | Maruishi Pharmaceutical Co., Ltd. [Member] | Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 2,105,263 | |||||||||
Convertible Preferred stock, estimated fair value | 7,663,000 | |||||||||
Series D Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 12,045,574 | 10,386,057 | ||||||||
Convertible promissory notes converted to Series D convertible preferred stock, Shares | 2,692,291 | |||||||||
Convertible Preferred stock, shares outstanding | 12,045,574 | 10,386,057 | ||||||||
Convertible Preferred stock, shares authorized | 12,260,845 | 10,386,057 | ||||||||
Liquidation preference | 17,397,000 | 15,000,000 | ||||||||
Preferred stock to common stock conversion ratio | 0.4 | |||||||||
Minimum percentage of stock required for conversion of outstanding Preferred Stock to common stock | 67.00% | |||||||||
Series D Convertible Preferred Stock [Member] | Maximum [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Liquidation preference | 70,000,000 | |||||||||
Liquidation preference per share | 4.332732 | |||||||||
Series C Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 10,930,946 | 11,706,450 | ||||||||
Convertible Preferred stock, shares outstanding | 10,930,946 | 11,706,450 | ||||||||
Convertible Preferred stock, shares authorized | 10,930,946 | 11,706,450 | ||||||||
Liquidation preference | 33,886,000 | 36,290,000 | ||||||||
Preferred stock to common stock conversion ratio | 0.473282 | |||||||||
Series B Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 2,254,417 | 2,370,000 | ||||||||
Convertible Preferred stock, shares outstanding | 2,254,417 | 2,370,000 | ||||||||
Convertible Preferred stock, shares authorized | 2,254,417 | 2,370,000 | ||||||||
Liquidation preference | 4,509,000 | 4,740,000 | ||||||||
Preferred stock to common stock conversion ratio | 0.434782 | |||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Convertible Preferred stock, shares issued | 1,677,118 | 2,000,000 | ||||||||
Convertible Preferred stock, shares outstanding | 1,677,118 | 2,000,000 | ||||||||
Convertible Preferred stock, shares authorized | 1,677,118 | 2,000,000 | ||||||||
Liquidation preference | 1,677,000 | $2,000,000 | ||||||||
Preferred stock to common stock conversion ratio | 0.4 |
Convertible_Preferred_Stock_Sc
Convertible Preferred Stock - Schedule of Convertible Preferred Stock (Detail) (USD $) | Dec. 31, 2014 | Feb. 05, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||||
Temporary Equity [Line Items] | ||||
Preferred Shares Authorized | 0 | 29,402,200 | 26,636,118 | |
Preferred Shares Issued | 0 | 29,186,929 | 29,186,929 | 26,636,118 |
Preferred Shares Outstanding | 0 | 29,186,929 | 29,186,929 | 26,636,118 |
Liquidation preference | $0 | $65,969 | $58,530 | |
Carrying Value | 65,586 | 58,522 | ||
Common Stock Issuable Upon Conversion | 12,554,171 | 11,594,757 | ||
Junior Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred Shares Authorized | 173,611 | 173,611 | ||
Preferred Shares Issued | 173,611 | 173,611 | ||
Preferred Shares Outstanding | 173,611 | 173,611 | ||
Liquidation preference | 500 | 500 | ||
Carrying Value | 354 | 354 | ||
Common Stock Issuable Upon Conversion | 69,444 | 69,444 | ||
Junior A Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred Shares Authorized | 2,105,263 | |||
Preferred Shares Issued | 2,105,263 | |||
Preferred Shares Outstanding | 2,105,263 | |||
Liquidation preference | 8,000 | |||
Carrying Value | 7,642 | |||
Common Stock Issuable Upon Conversion | 842,105 | |||
Series A Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred Shares Authorized | 1,677,118 | 2,000,000 | ||
Preferred Shares Issued | 1,677,118 | 2,000,000 | ||
Preferred Shares Outstanding | 1,677,118 | 2,000,000 | ||
Liquidation preference | 1,677 | 2,000 | ||
Carrying Value | 1,677 | 2,000 | ||
Common Stock Issuable Upon Conversion | 670,830 | 800,000 | ||
Series B Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred Shares Authorized | 2,254,417 | 2,370,000 | ||
Preferred Shares Issued | 2,254,417 | 2,370,000 | ||
Preferred Shares Outstanding | 2,254,417 | 2,370,000 | ||
Liquidation preference | 4,509 | 4,740 | ||
Carrying Value | 4,509 | 4,740 | ||
Common Stock Issuable Upon Conversion | 980,163 | 1,030,434 | ||
Series C Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred Shares Authorized | 10,930,946 | 11,706,450 | ||
Preferred Shares Issued | 10,930,946 | 11,706,450 | ||
Preferred Shares Outstanding | 10,930,946 | 11,706,450 | ||
Liquidation preference | 33,886 | 36,290 | ||
Carrying Value | 33,886 | 36,290 | ||
Common Stock Issuable Upon Conversion | 5,173,413 | 5,540,457 | ||
Series D Convertible Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred Shares Authorized | 12,260,845 | 10,386,057 | ||
Preferred Shares Issued | 12,045,574 | 10,386,057 | ||
Preferred Shares Outstanding | 12,045,574 | 10,386,057 | ||
Liquidation preference | 17,397 | 15,000 | ||
Carrying Value | $17,518 | $15,138 | ||
Common Stock Issuable Upon Conversion | 4,818,216 | 4,154,422 |
Stockholders_Deficit_Equity_Ad
Stockholders' (Deficit) Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jan. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 01, 2014 | Jan. 16, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 50,000,000 | |||
Common stock, par value | $0.00 | $0.00 | $0.00 | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 0 | |||
Preferred stock, par value | $0.00 | $0.00 | $0.00 | |||
Common stock, shares outstanding | 22,802,039 | 4,288,243 | ||||
Preferred stock, shares issued | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Reverse stock split, description | 1-for-2.5 reverse stock split | |||||
Reverse stock split, ratio | 2.5 | |||||
Reverse stock split, effective date | 16-Jan-14 | |||||
Common stock, shares issued | 5,750,000 | |||||
Gross proceeds of common stock | $100 | $86 | ||||
Preferred stock, conversion date | 5-Feb-14 | |||||
Outstanding warrants exercised, date | 31-Jul-14 | |||||
Initial Public Offering [Member] | ||||||
Class of Stock [Line Items] | ||||||
Public offering price | 11 | $11 | ||||
Chief Medical Officer [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares issued | 11,442 | |||||
Public offering price | $8.74 | |||||
Gross proceeds of common stock | $100 |
Stockholders_Deficit_Equity_Su
Stockholders' (Deficit) Equity - Summary of Common Stock Reserved For Conversion of Preferred Stock and Exercise of Warrants and Options (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||
Exercise of warrant | 19,851 | |
Exercise of stock options | 1,898,360 | 1,247,959 |
Common stock reserved for conversion of Preferred Stock and exercise of warrants and options | 1,898,360 | 13,821,981 |
Series A Convertible Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock reserved for conversion of Preferred Stock | 670,830 | |
Series B Convertible Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock reserved for conversion of Preferred Stock | 901,757 | |
Series C Convertible Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock reserved for conversion of Preferred Stock | 4,372,369 | |
Series D Convertible Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock reserved for conversion of Preferred Stock | 4,818,216 | |
Junior Convertible Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock reserved for conversion of Preferred Stock | 69,444 | |
Junior A Convertible Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock reserved for conversion of Preferred Stock | 842,105 | |
Series B and C Anti-Dilution Shares [Member] | ||
Class of Stock [Line Items] | ||
Common stock reserved for conversion of Preferred Stock | 879,450 |
Collaborations_Additional_Info
Collaborations - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Jun. 30, 2014 | Apr. 30, 2013 | Feb. 05, 2014 | 31-May-12 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
License and milestone revenue | $302 | $9,637 | $1,190 | |||||
Deferred R&D service revenue | 1,452 | 3,475 | ||||||
Collaborative revenue | 2,201 | 2,225 | ||||||
Issuance of convertible preferred stock | 0 | 29,186,929 | 26,636,118 | 29,186,929 | ||||
Revenue recognized from sale of clinical compound | 674 | 102 | ||||||
Research and development expense | 15,068 | 8,685 | 4,597 | |||||
Junior Convertible Preferred Stock [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Issuance of convertible preferred stock | 173,611 | 173,611 | ||||||
Junior A Convertible Preferred Stock [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Issuance of convertible preferred stock | 2,105,263 | |||||||
Maruishi License Agreement [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Research and development expense | 3,558 | 2,452 | ||||||
Clinical trial costs related to the R&D services deliverable | 3,000 | 2,420 | ||||||
Cost of clinical compound sold to Maruishi | 558 | 32 | ||||||
Chong Kun Dang Pharmaceutical Corporation [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Upfront non-refundable, non-creditable license fee | 1,000 | |||||||
Milestone payments receivable | 3,750 | |||||||
License and milestone revenue | 1,190 | 646 | ||||||
Milestone payments | 750 | |||||||
Revenue recognized from substantive milestones | 250 | |||||||
South Korean Withholding tax | 206 | |||||||
Chong Kun Dang Pharmaceutical Corporation [Member] | Junior Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Issuance of convertible preferred stock, Shares | 173,611 | |||||||
Issuance of convertible preferred stock, Value | 354 | |||||||
Issuance of convertible preferred stock | 173,611 | |||||||
Chong Kun Dang Pharmaceutical Corporation [Member] | Clinical Development [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Milestone payments receivable | 2,250 | |||||||
Chong Kun Dang Pharmaceutical Corporation [Member] | Regulatory Events [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Milestone payments receivable | 1,500 | |||||||
Maruishi Pharmaceutical Co., Ltd. [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Upfront non-refundable, non-creditable license fee | 15,000 | |||||||
License and milestone revenue | 302 | 9,637 | ||||||
Revenue recognized from substantive milestones | 2,500 | |||||||
Value of arrangement | 15,337 | |||||||
Deferred R&D service revenue | 1,452 | 3,475 | ||||||
Revenue recognized from nonsubstantive milestones | 8,000 | |||||||
Non-refundable contingent payment | 480 | |||||||
Collaborative revenue | 2,201 | 2,225 | ||||||
Stock purchase agreement, purchase price of preferred stock | 8,000 | |||||||
Stock purchase agreement, purchase price fair value of preferred stock | 7,663 | |||||||
Stock purchase agreement, purchase price fair value of preferred stock per share | $3.64 | |||||||
Stock purchase agreement, purchase price premium of preferred stock | 337 | |||||||
Revenue recognized from sale of clinical compound | 674 | 102 | ||||||
Maruishi Pharmaceutical Co., Ltd. [Member] | Junior A Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Issuance of convertible preferred stock | 2,105,263 | |||||||
Stock purchase agreement, purchase price of preferred stock per share | $3.80 | |||||||
Maruishi Pharmaceutical Co., Ltd. [Member] | Clinical Development [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Milestone payment due | 2,000 | |||||||
Maruishi Pharmaceutical Co., Ltd. [Member] | License [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
License and milestone revenue | 302 | 9,637 | ||||||
Estimated selling price | 10,200 | |||||||
Maruishi Pharmaceutical Co., Ltd. [Member] | R & D Services [Member] | ||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||
Estimated selling price | 6,200 | |||||||
Deferred R&D service revenue | 90 | 5,700 | ||||||
Collaborative revenue | $88 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2015 | Sep. 30, 2014 | Jan. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of options vested | $393 | $75 | $65 | |||
Intrinsic value of options exercised | 2,055 | 0 | 10 | |||
Options granted | 0 | 0 | ||||
Fair value of options granted | $7.09 | |||||
Compensation expense not yet recognized | $3,768 | |||||
Weighted average period of compensation expense not yet recognized | 3 years 2 months 27 days | |||||
Re-Measurement [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of options granted | $10.77 | $6.54 | $1.77 | |||
2014 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options that may be granted after the tenth anniversary of the 2014 Plan | 0 | |||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 1,600,000 | |||||
Annual increase in number of shares reserved for issuance as a percentage of shares of capital stock outstanding through January 1, 2024 | 3.00% | |||||
Options granted | 884,000 | |||||
2014 Equity Incentive Plan [Member] | Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in aggregate number of shares that may be issued | 2,284,061 | |||||
2014 Equity Incentive Plan [Member] | Share-Based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of vested shares on first anniversary of grant date | 25.00% | |||||
2014 Equity Incentive Plan [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period of awards granted | 36 months | |||||
2014 Equity Incentive Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Term of awards granted | 10 years | |||||
2014 Equity Incentive Plan [Member] | Incentive Stock Options [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 30,000,000 | |||||
2004 Stock Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future issuance | 757,799 | 0 | 0 | |||
2004 Stock Incentive Plan [Member] | Share-Based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of vested shares on first anniversary of grant date | 25.00% | |||||
2004 Stock Incentive Plan [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period of awards granted | 36 months | |||||
2004 Stock Incentive Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Term of awards granted | 10 years |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Granted | 0 | 0 | |
2014 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Outstanding at December 31, 2013 | 490,160 | ||
Number of Options, Granted | 884,000 | ||
Number of Options, Exercised | -191,800 | ||
Number of Options, Forfeited | -160,000 | ||
Number of Options, Outstanding at December 31, 2014 | 1,022,360 | ||
Number of Options, Outstanding, Weighted average remaining contractual life as of December 31, 2014 | 7 years 9 months 11 days | ||
Number of Options, Options exercisable at December 31, 2014 | 299,735 | ||
Number of Options, Exercisable, Weighted average remaining contractual life as of December 31, 2014 | 3 years 10 months 24 days | ||
Number of Options, Options vested and expected to vest at December 31, 2014 | 990,191 | ||
Number of Options, Vested and expected to vest, Weighted average remaining contractual life as of December 31, 2014 | 7 years 8 months 23 days | ||
Weighted-Average Exercise Price, Outstanding at December 31, 2013 | $1.34 | ||
Weighted-Average Exercise Price, Granted | $11.24 | ||
Weighted-Average Exercise Price, Exercised | $0.67 | ||
Weighted-Average Exercise Price, Forfeited | $13.26 | ||
Weighted-Average Exercise Price, Outstanding at December 31, 2014 | $8.16 | ||
Weighted-Average Exercise Price, Options exercisable at December 31, 2014 | $2.11 | ||
Weighted-Average Exercise Price, Options vested and expected to vest at December 31, 2014 | $8.05 | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2014 | $2,763 | ||
Aggregate Intrinsic Value, Options exercisable at December 31, 2014 | 2,366 | ||
Aggregate Intrinsic Value, Options vested and expected to vest at December 31, 2014 | $2,743 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Assumptions Used in Black-Scholes Option Pricing Model (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, minimum | 1.64% |
Risk-free interest rate, maximum | 2.72% |
Expected volatility, minimum | 64.90% |
Expected volatility, maximum | 71.30% |
Expected dividend yield | 0.00% |
Employee and Board of Directors Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life of options (in years) | 6 years 3 months |
Nonemployee Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life of options (in years) | 10 years |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Re-measurement of Assumptions Used in Black-Scholes Option Pricing Model (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.64% | ||
Risk-free interest rate, maximum | 2.72% | ||
Expected volatility, minimum | 64.90% | ||
Expected volatility, maximum | 71.30% | ||
Expected dividend yield | 0.00% | ||
Nonemployee Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life of options (in years) | 10 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life of options (in years) | 10 years | ||
Re-Measurement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.77% | ||
Risk-free interest rate, minimum | 1.96% | 2.50% | |
Risk-free interest rate, maximum | 2.72% | 3.20% | |
Expected volatility | 73.00% | ||
Expected volatility, minimum | 69.00% | 71.00% | |
Expected volatility, maximum | 71.00% | 72.00% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Re-Measurement [Member] | Minimum [Member] | Nonemployee Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life of options (in years) | 6 years | 1 year 6 months | 2 years |
Re-Measurement [Member] | Maximum [Member] | Nonemployee Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life of options (in years) | 10 years | 7 years | 8 years |
StockBased_Compensation_Summar3
Stock-Based Compensation - Summary of Compensation Expense Relating to Stock Options (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock option expense | $1,371 | $123 | $61 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock option expense | 349 | 71 | 48 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock option expense | $1,022 | $52 | $13 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Taxes (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $0 | $0 | $0 |
State | -201 | -30 | -31 |
Total Current | -201 | -30 | -31 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Total Deferred | 0 | 0 | 0 |
Benefit from income taxes | ($201) | ($30) | ($31) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||
Percentage of annual research and development credit for cash | 65.00% | |
Valuation allowance on the deferred tax asset | 100.00% | 100.00% |
Change in valuation allowance | $7,156,000 | $667,000 |
Tax benefit on exercise of non-qualified stock options and disqualified disposition of incentive stock options | 401,000 | |
Unrecognized tax benefits | 0 | 0 |
Unrecognized tax benefits, related interest and penalties | 0 | 0 |
Tax examinations, description | Tax years 2007 through 2014 remain open to U.S. federal and state tax examinations. | |
Earliest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Open tax years | 2007 | |
Latest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Open tax years | 2014 | |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 71,369,000 | |
Federal [Member] | Earliest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Tax loss carryforwards expiration year | 2026 | |
Federal [Member] | Research and Development Tax Credit Carryforward [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | 2,854,000 | |
Federal [Member] | Research and Development Tax Credit Carryforward [Member] | Earliest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Tax credit expiration year | 2025 | |
State and Local [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 65,260,000 | |
State and Local [Member] | Earliest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Tax loss carryforwards expiration year | 2027 | |
State and Local [Member] | Research and Development Tax Credit Carryforward [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | $678,000 |
Income_Taxes_Schedule_of_Recon
Income Taxes - Schedule of Reconciliation of Income Taxes Computed Using U.S. Federal Statutory Rate to that Reflected in Operations (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income taxes using U.S. federal statutory rate | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal benefit | 5.23% | 6.03% | 5.60% |
Impact of R&D tax credit on effective tax rate | 3.03% | 12.04% | 0.00% |
Impact of foreign tax credit on effective tax rate | 0.00% | 0.00% | 3.27% |
Stock option shortfalls and cancellations | -0.69% | 0.00% | -2.54% |
Provision to return adjustments | -0.57% | -1.42% | -1.95% |
Change in valuation allowance | -39.88% | -49.90% | -37.89% |
Total | 1.12% | 0.75% | 0.49% |
Income_Taxes_Schedule_of_Signi
Income Taxes - Schedule of Significant Components of Company's Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $27,094 | $21,433 |
Federal and state tax credits | 3,508 | 2,947 |
Accelerated depreciation | 1,018 | 860 |
Deferred revenue | 566 | |
Stock-based compensation expense | 333 | 85 |
Rent expense | 114 | 136 |
Amortization of R&D intangible assets | 56 | 67 |
Accrued vacation | 27 | 32 |
Gross deferred tax asset | 32,716 | 25,560 |
Valuation allowance | -32,716 | -25,560 |
Net deferred tax asset | $0 | $0 |
License_and_Research_Agreement1
License and Research Agreement - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||||||||
Apr. 01, 2005 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2005 | Feb. 05, 2014 | Jan. 01, 2013 | |
Research and Development Assets Acquired Other than Through Business Combination [Line Items] | |||||||||||||
Fair value of liability | 76,000 | ||||||||||||
IPO closing date | 5-Feb-14 | ||||||||||||
Glasgow License Agreement [Member] | |||||||||||||
Research and Development Assets Acquired Other than Through Business Combination [Line Items] | |||||||||||||
Issuance of common stock as compensation | 200,000 | ||||||||||||
Guarantee return on common stock issued as compensation | 1,000,000 | ||||||||||||
Fair value of liability | 0 | 35,000 | |||||||||||
Probability factor percentage | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||
Decrease in fair value of liability | ($35,000) | ||||||||||||
Public offering price in the IPO | $11 | ||||||||||||
IPO closing date | 5-Feb-14 |
Net_Loss_per_Share_Computation
Net Loss per Share - Computation of Denominators Used in Net Loss per Share Available to Common Stockholders (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Basic: | |||
Weighted average shares outstanding | 20,965,935 | 4,133,138 | 3,299,993 |
Diluted: | |||
Weighted average shares outstanding - Basic | 20,965,935 | 4,133,138 | 3,299,993 |
Convertible preferred stock | 0 | 0 | 0 |
Common stock options | 0 | 0 | 0 |
Common stock warrants | 0 | 0 | 0 |
Convertible promissory notes (as converted) | 0 | 0 | 0 |
Denominator for diluted net loss per share available to common stockholders | 20,965,935 | 4,133,138 | 3,299,993 |
Net_Loss_per_Share_Computation1
Net Loss per Share - Computation of Basic and Diluted Net Loss Per Share Available to Common Stockholders (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||
Net loss | ($17,745) | ($3,963) | ($6,271) | ||||
Add back: extinguishment of preferred shares | 891 | ||||||
Net loss available to common stockholders - Basic and Diluted | ($4,172) | ($6,545) | ($3,645) | ($3,383) | ($17,745) | ($3,072) | ($6,271) |
Net loss per share available to common stockholders: | |||||||
Basic and Diluted | ($0.18) | ($0.29) | ($0.16) | ($0.22) | ($0.85) | ($0.74) | ($1.90) |
Weighted-average common shares outstanding available to common stockholders | |||||||
Basic and Diluted | 20,965,935 | 4,133,138 | 3,299,993 |
Net_Loss_per_Share_Schedule_of
Net Loss per Share - Schedule of Anti-Dilutive Common Stock Equivalents Excluded from Calculations of Diluted Net Loss Per Share (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 1,022,360 | 490,160 | 557,160 |
Common Stock Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 19,851 | 19,851 | |
Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 12,554,171 | 11,594,757 | |
Beneficial Conversion Feature on Convertible Promissory Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 702,928 |
Net_Loss_per_Share_Additional_
Net Loss per Share - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
Warrant exercise date | 31-Jul-14 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Consulting Agreement [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consulting Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, total expenses | $169 | $134 | $129 |
Related party transaction, due to stockholder | $35 | $0 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Jan. 01, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution retirement plan, description | All employees over the age of 21 are eligible to participate in the plan after three consecutive months of service. | |
Subsequent Event [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution retirement plan, employer contribution percentage | 3.00% | |
Minimum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution retirement plan, employee eligible age to participate | 21 years | |
Defined contribution retirement plan, employee eligible service period | 3 months |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Commitments [Line Items] | |||
Operating lease, expiration date | 2017-10 | ||
Operating lease, renewable term description | The lease is renewable thereafter for two successive terms of five years. | ||
Incentive allowance received | $2,127,000 | ||
Unamortized incentive allowance | 582,000 | 790,000 | |
Accrued rent | 292,000 | 349,000 | |
Operating lease, rent expense | 643,000 | 616,000 | 618,000 |
Minimum [Member] | |||
Other Commitments [Line Items] | |||
Term of lease | 10 years | ||
Standby Letter of Credit [Member] | |||
Other Commitments [Line Items] | |||
Letter of credit, amount | 2,170,000 | ||
Letter of credit, expiration date | 31-May-17 | ||
Amounts of drawings against letter of credit | 0 | ||
Letter of credit, annual reduction from 2008 to 2012 | 294,000 | ||
Letter of credit, remaining amount | $700,000 | $700,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Payments Under Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $886 |
2016 | 913 |
2017 | 740 |
Total | $2,539 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations - Schedule of Selected Financial Data for Each Quarter (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $914 | $1,125 | $960 | $178 | $973 | $1,018 | $9,973 | $3,177 | $11,964 | $1,190 | |
Net (loss) income available to common stockholders - Basic | -2,093 | -4,575 | 1,475 | -1,748 | |||||||
Net loss available to common stockholders - Basic and Diluted | -4,172 | -6,545 | -3,645 | -3,383 | -17,745 | -3,072 | -6,271 | ||||
Net (loss) income available to common stockholders - Diluted | ($2,093) | ($4,575) | $5,424 | ($1,748) | |||||||
Loss per share available to common stockholders - Basic and Diluted | ($0.18) | ($0.29) | ($0.16) | ($0.22) | ($0.85) | ($0.74) | ($1.90) | ||||
(Loss) income per share available to common stockholders - Basic | ($0.49) | ($1.07) | $0.34 | ($0.48) | |||||||
(Loss) income per share available to common stockholders - Diluted | ($0.49) | ($1.07) | $0.33 | ($0.48) |
Quarterly_Results_of_Operation3
Quarterly Results of Operations - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 |
Quarterly Financial Information Disclosure [Abstract] | |
Net income attributable to participating securities | $3,869 |