Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CBYL | |
Entity Registrant Name | CARBYLAN THERAPEUTICS, INC. | |
Entity Central Index Key | 1,348,911 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,322,494 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 59,878 | $ 3,897 |
Prepaid expenses and other current assets | 1,571 | 690 |
Total current assets | 61,449 | 4,587 |
Property and equipment, net | 362 | 180 |
Restricted cash | 50 | 50 |
Deferred public offering costs | 1,648 | |
Other assets | 218 | 179 |
Total assets | 62,079 | 6,644 |
Current liabilities: | ||
Accounts payable | 1,527 | 1,024 |
Accrued expenses | 1,272 | 1,605 |
Loans payable | 965 | 4,435 |
Deferred licensing revenue | 29 | 29 |
Total current liabilities | 3,793 | 7,093 |
Loans payable, net of current portion | 3,601 | |
Convertible promissory notes | 2,131 | |
Derivative liability | 1,495 | |
Preferred stock warrant liability | 463 | |
Deferred licensing revenue, net of current portion | 64 | 85 |
Deferred rent, net of current portion | 2 | |
Total liabilities | $ 7,458 | $ 11,269 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity (deficit) | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized as of September 30, 2015 and none authorized as of December 31, 2014: no shares issued and outstanding as of September 30, 2015 | ||
Common stock, $0.001 par value; 100,000,000 shares authorized as of September 30, 2015 and 45,000,000 shares authorized as of December 31, 2014; 26,322,494 shares issued and outstanding as of September 30, 2015 and 691,312 shares issued and outstanding as of December 31, 2014 | $ 27 | $ 1 |
Additional paid-in capital | 121,556 | 3,593 |
Accumulated deficit | (66,962) | (47,775) |
Total stockholders’ equity (deficit) | 54,621 | (44,181) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ 62,079 | 6,644 |
Convertible Preferred Stock [Member] | ||
Current liabilities: | ||
Convertible preferred stock, $0.001 par value; no shares authorized as of September 30, 2015 and 34,371,305 shares authorized as of December 31, 2014; no shares issued and outstanding as of September 30, 2015 and 8,268,531 shares issued and outstanding as of December 31, 2014 | $ 39,556 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 0 |
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 45,000,000 |
Common stock, shares issued | 26,322,494 | 691,312 |
Common stock, shares outstanding | 26,322,494 | 691,312 |
Convertible Preferred Stock [Member] | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized | 0 | 34,371,305 |
Convertible preferred stock, shares issued | 0 | 8,268,531 |
Convertible preferred stock, shares outstanding | 0 | 8,268,531 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
License Revenue | $ 7 | $ 10 | $ 21 | $ 21 |
Operating Expenses: | ||||
Research and development | 3,533 | 2,088 | 11,939 | 5,263 |
General and administrative | 1,373 | 1,490 | 3,549 | 2,618 |
Total operating expenses | 4,906 | 3,578 | 15,488 | 7,881 |
Loss from Operations | (4,899) | (3,568) | (15,467) | (7,860) |
Other Income (expense): | ||||
Interest income | 2 | 1 | 4 | 2 |
Interest expense | (95) | (357) | (1,100) | (520) |
Loss on extinguishment of convertible promissory notes | (3,177) | |||
Other income (expense), net | 1 | (71) | 553 | (267) |
Net Loss and Comprehensive Loss | $ (4,991) | $ (3,995) | $ (19,187) | $ (8,645) |
Net loss per share to common stockholders, basic and diluted | $ (0.19) | $ (5.89) | $ (1.12) | $ (14.75) |
Weighted average common shares outstanding, basic and diluted | 26,322,494 | 678,189 | 17,203,279 | 586,111 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net loss | $ (19,187) | $ (8,645) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 98 | 37 |
Stock based compensation expense | 444 | 208 |
Change in fair value of preferred stock warrant liability and derivative liability | (520) | 267 |
Non-cash interest expense | 192 | (69) |
Amortization of loan and convertible promissory notes discount | 773 | |
Loss on extinguishment of convertible promissory notes | 3,177 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (881) | (34) |
Other assets | (39) | |
Accounts payable | 503 | 367 |
Accrued expenses | (335) | 975 |
Deferred licensing revenue | (21) | (22) |
Net cash used in operating activities | (15,796) | (6,916) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (280) | (83) |
Net cash used in investing activities | (280) | (83) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of common stock upon exercise of options, net | 149 | 228 |
Proceeds from issuance of common stock, net | 67,908 | |
Deferred public offering costs | (185) | |
Proceeds from loans payable | 2,208 | |
Repayment of loans payable | 4,000 | 5,000 |
Proceeds from convertible promissory notes | (708) | |
Net cash provided by financing activities | 72,057 | 6,543 |
Net increase/(decrease) in cash and cash equivalents | 55,981 | (456) |
Cash and cash equivalents at beginning of period | 3,897 | 9,781 |
Cash and cash equivalents at end of period | 59,878 | 9,325 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 45 | 595 |
Supplemental Disclosures of Non-cash Financing Activities | ||
Issuance of preferred stock warrants | 103 | |
Conversion of preferred stock warrants to common stock warrants | 347 | |
Conversion of preferred stock to common stock | 39,556 | |
Increase accrual of deferred public offering costs | 945 | |
Increase of derivative related to convertible promissory notes at issuance | 1,196 | 1,067 |
Increase of beneficial conversion feature for convertible promissory notes | $ 519 | $ 2,276 |
Formation and Business of the C
Formation and Business of the Company | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company Carbylan Therapeutics, Inc. (the “Company”) is a clinical-stage specialty pharmaceutical company focused on the development and commercialization of novel and proprietary combination therapies that address significant unmet medical needs. The Company’s initial focus is on the development of Hydros-TA, its proprietary, potentially best-in-class intra-articular injectable product candidate to treat pain associated with osteoarthritis of the knee. The Company was incorporated in the state of Delaware on March 26, 2004 as Sentrx Surgical, Inc. The name of the Company was changed to Carbylan Biosurgery, Inc. on December 14, 2005. The name of the Company was changed to Carbylan Therapeutics, Inc. on March 7, 2014. Since commencing operations in 2004, the Company has devoted substantially all of its efforts to identifying and developing product candidates for therapeutic markets, recruiting personnel and raising capital. The Company has devoted predominantly all of its resources to the preclinical and clinical development of, and manufacturing capabilities for, Hydros-TA. The Company has never been profitable and has not yet commenced commercial operations. At September 30, 2015, the Company had an accumulated deficit of approximately $67.0 million. The Company expects to incur increased research and development expenses during the current Phase 3 trial of Hydros-TA and when the Company initiates the second Phase 3 trial of Hydros-TA. Management’s plans with respect to these matters include utilizing a substantial portion of the Company’s capital resources and efforts in completing the development and obtaining regulatory approval for Hydros-TA and expanding the Company’s organization. In March 2015, the Company’s board of directors and stockholders approved a 4-for-1 reverse stock split of the Company’s common and preferred stock. The Company filed an amendment to its certificate of incorporation effecting the reverse stock split on March 13, 2015. All issued and outstanding common stock, convertible preferred stock, warrants for preferred stock, options for common stock and per share amounts contained in the condensed financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. On April 8, 2015, the Company’s registration statement on Form S-1 (File No. 333-201278) relating to the Initial Public Offering (“IPO”) of its common stock was declared effective by the SEC. The IPO closed on April 14, 2015 at which time the Company sold 14,950,000 shares of common stock, which included 1,950,000 shares of common stock purchased by the underwriters upon the full exercise of their option to purchase additional shares of common stock. The Company received cash proceeds of approximately $66.3 million from the IPO, net of underwriting discounts and commissions and IPO expenses paid by the Company. Prior to the closing of the IPO, all outstanding shares of convertible preferred stock converted into 8,268,531 shares of common stock with the related carrying value of $39.6 million reclassified to common stock and additional paid-in capital. In addition, all convertible preferred stock warrants were converted into warrants exercisable for common stock and the convertible promissory notes were converted in to 2,287,120 shares of common stock. On April 14, 2015, the Company filed its Amended and Restated Certificate of Incorporation, authorizing 105,000,000 shares of capital stock, including 100,000,000 shares of authorized common stock and 5,000,000 shares of authorized undesignated preferred stock. Both the common stock and preferred stock have a par value of $0.001 per share. There are no shares of preferred stock outstanding at September 30, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | 2. Summary of Significant Accounting Policies and Basis of Presentation Basis of Presentation The accompanying interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and on a basis consistent with the annual financial statements, and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the periods presented. These interim financial results are not necessarily indicative of the results to be expected for the year ending December 31, 2015, or for any other future annual or interim period. The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Prospectus filed pursuant to Rule 424(b)(4) on April 8, 2015 with the SEC (the “Prospectus”). Use of Estimates The preparation of the interim condensed financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to common stock, stock-based compensation expense, warrant liabilities, accruals, derivative liability, deferred tax valuation allowance and revenue recognition. Management bases its estimates on historical experience or on various other assumptions, including information received from its service providers, which it believes to be reasonable under the circumstances. Actual results could differ from those estimates. Risks and Uncertainties The product candidates developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or foreign regulatory agencies prior to commercial sales. There can be no assurance that the Company’s current and future product candidates will receive the necessary approvals. If the Company is denied approval or approval is delayed, it may have a material adverse impact on the Company’s business and its financial statements. The Company is subject to risks common to companies in the pharmaceutical industry with no commercial operating history, including, but not limited to, dependency on the clinical and commercial success of its product candidates, ability to obtain regulatory approval of its product candidates, the need for substantial additional financing to achieve its goals, uncertainty of broad adoption of its approved products, if any, by physicians and consumers, significant competition and untested manufacturing capabilities. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to launch and commercialize any products or product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be at terms acceptable by the Company. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. The Company invests its excess cash in money market accounts. The Company’s cash and cash equivalents are held by a single financial institution and all cash is held in the United States. Such deposits may, at times, exceed federally insured limits. The Company has not recognized any losses during the periods presented and management does not believe that the Company is exposed to significant credit risk from its cash and cash equivalents. Segment Reporting The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. The Company is a specialty pharmaceutical company focused on the development and commercialization of novel and proprietary combination therapies that address significant unmet medical needs. No product revenue has been generated since inception, and all assets are held in the United States. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity date of 90 days or less on the date of purchase to be cash equivalents. The Company invests its cash in bank deposits and money market funds. Restricted Cash The Company is required to guarantee the credit limit on its corporate credit card with a certificate of deposit of $50,000. The balance is included as restricted cash on the condensed balance sheets. Beneficial Conversion Feature From time to time, the Company may issue convertible promissory notes that have conversion prices that create an embedded beneficial conversion feature on the issuance date. A beneficial conversion feature exists on the date a convertible promissory note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted with the debt. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid-in capital. The debt discount is amortized to interest expense over the term of the note using the effective interest method. Embedded Derivatives Related to Convertible Promissory Notes Embedded derivatives that are required to be bifurcated from the underlying debt instrument (i.e. host) are accounted for and valued as a separate financial instrument. The Company evaluated the terms and features of the convertible promissory notes issued in September 2014 and February 2015 and identified embedded derivatives requiring bifurcation and accounting at fair value because the economic and contractual characteristics of the embedded derivatives met the criteria for bifurcation and separate accounting due to the conversion features (see Note 7 for a description of the conversion features). Fair Value of Financial Instruments Fair value accounting is applied for all financial assets and liabilities, and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Computer equipment 3 years Lab equipment 3 years Furniture and fixtures 5 years Machinery and equipment 3 years Manufacturing equipment 7 years Leasehold improvements are amortized over the lesser of their useful lives or the term of the lease. Upon sale or retirement of the assets, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is recognized in the accompanying interim condensed statement of operations and comprehensive loss in other income (expense), net. Maintenance and repairs are charged to operations as incurred. Pre-clinical and Clinical Trial Accruals The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with clinical research organizations that conduct and manage preclinical and clinical trials on the Company’s behalf. If contracts are modified based upon changes in the clinical trial protocol or scope of work to be performed, the Company modifies the estimates of accrued expenses accordingly. To date, there have been no material differences from its estimates to the amount actually incurred. Preferred Stock Warrant Liability The Company accounts for its warrants as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as derivative liabilities are recorded on the Company’s accompanying balance sheets at their fair value on the date of issuance and are revalued at each subsequent balance sheet date, with fair value changes recognized as increases or reductions to other income (expense), net in the statements of operations and comprehensive loss. Research and Development Expenditures Costs incurred to further the Company’s research and development include salaries and related employee benefits, stock-based compensation expense, costs associated with clinical studies, nonclinical research and development activities, regulatory activities, research-related overhead expenses and fees paid to external service providers and contract research and manufacturing organizations that conduct certain research and development activities on behalf of the Company. Stock-Based Compensation The Company maintains performance incentive plans under which incentive stock options and non-qualified stock options may be granted to employees and non-employees. The Company accounts for stock-based compensation arrangements with employees in accordance with ASC 718, Compensation — Stock Compensation. The Company’s determination of the fair value of stock options on the date of grant utilizes the Black-Scholes option-pricing model, and is impacted by its common stock price as well as changes in assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected term that options will remain outstanding, expected common stock price volatility over the term of the option awards, risk-free interest rates and expected dividends. The fair value is recognized over the period during which an optionee is required to provide services in exchange for the option award, known as the requisite service period (usually the vesting period), on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain tax positions in accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes. Net Loss per Share to Common Stockholders Basic earnings per share to common stockholders is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the periods presented. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and other potentially dilutive securities using the treasury stock method unless the effect is antidilutive. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards update (“ASU”) 2014-09, “Revenue from Contracts with Customers In August 2014, the FASB issued ASU NO. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company follows ASC 820-10, Fair Value Measurements and Disclosures, which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1 Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The Company’s investments in money market funds are measured at fair value on a recurring basis. These money market funds are actively traded and reported daily through a variety of sources. The fair value of the money market fund investments is classified as Level 1. The fair value of the certificates of deposit is classified as Level 2 due to the nature of a contractual restriction with a financial institution that requires the certificate of deposit to remain in place as collateral for the credit card, and therefore the ability to liquidate the investment is limited. As of September 30, 2015, based on borrowing rates that are available to the Company for loans of similar terms and consideration of the Company’s credit risk, the carrying value of the loan payable approximates the fair value using Level 2 inputs. There were no transfers between Level 1 and Level 2 during the periods presented. In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3. During 2014 and through the date of the IPO in April 2015, the Company estimated the fair value of the warrant liability. The Company used the Black-Scholes option-pricing method to calculate the fair value of the warrant liability. Generally, increases or decreases in the fair value of the underlying convertible preferred stock resulted in a similar impact in the fair value measurement of the warrant liability. The fair value of the derivative of the September 2014 and February 2015 convertible promissory notes (see Note 7) was recorded as a derivative liability instrument that is measured at fair value at each reporting period. In connection with the IPO, the convertible promissory notes were converted in to shares of common stock, and the derivative liability is therefore not present at September 30, 2015. At December 31, 2014, the Company remeasured the fair value of the derivative for the September 2014 convertible promissory notes by estimating the fair value of the convertible promissory notes with and without the conversion derivative. To calculate the fair value of the convertible promissory notes without the conversion derivative, the Company estimated the present value of the expected cash payments at an assumed discount rate. To calculate the fair value of the convertible promissory notes with the conversion feature, the Company calculated the present value of the convertible promissory notes upon conversion at an initial public offering, and the present value of the convertible promissory notes at an equity financing. The Company applied a probability of occurrence to all of the conversion scenarios and estimated a weighted value of the notes with the conversion feature. The difference between the fair value of the convertible promissory notes with and without the conversion features is the fair value of the derivative. The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of September 30, 2015 (in thousands) Quoted Price in Active Markets for Identical Significant other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 59,803 $ — $ — $ 59,803 Certificate of deposit — 50 — 50 $ 59,803 $ 50 $ — $ 59,853 Liabilities Derivative liability $ — $ — $ — $ — Preferred stock warrant liability — — — — $ — $ — $ — $ — Fair Value Measurements as of December 31, 2014 (in thousands) Quoted Price in Active Markets for Identical Significant other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 3,825 $ — $ — $ 3,825 Certificate of deposit — 50 — 50 $ 3,825 $ 50 $ — $ 3,875 Liabilities Derivative liability $ — $ — $ 1,495 $ 1,495 Preferred stock warrant liability — — 463 463 $ — $ — $ 1,958 $ 1,958 (1) Included in cash and cash equivalents in the Company’s condensed balance sheet. The change in the fair value of the preferred stock warrant liability is summarized below: Fair value as of December 31, 2014 $ 463 Change in fair value recorded in other income (expense), net $ (116 ) Conversion to common stock warrants at IPO date $ (347 ) Fair value as of September 30, 2015 $ — The following is a summary of the activity of the derivative liability for the nine months ended September 30, 2015: Fair value as of December 31, 2014 $ 1,495 Embedded derivative liability upon issuance of convertible promissory notes 1,196 Change in fair value recorded in other income (expense), net (404 ) Automatic exercise of the derivative liability (2,287 ) Fair value as of September 30, 2015 $ — |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 4. Balance Sheet Components Property and Equipment, Net The following table represents the components of property and equipment (in thousands): September 30, December 31, 2015 2014 Computer equipment $ 30 $ 30 Lab equipment 676 543 Furniture and fixtures 21 21 Machinery and equipment 173 26 Leasehold improvement 55 55 955 675 Less: Accumulated depreciation and amortization (593 ) (495 ) Total property and equipment, net $ 362 $ 180 Depreciation expense for the nine months ended September 30, 2015 and 2014, was $98,000, and $37,000, respectively. Accrued Liabilities (in thousands) September 30, December 31, 2015 2014 Accrued payroll and related expenses $ 706 $ 723 Accrued legal expenses 48 159 Accrued research and clinical trial expenses 467 380 Accrued professional services 51 343 $ 1,272 $ 1,605 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Operating Lease The Company leases its facilities under a noncancelable operating lease which expires on February 29, 2016. The terms of the lease agreement require the Company to provide a security deposit of $69,000. The security deposit is included in other assets on the accompanying condensed balance sheets. The Company has a sub-lease agreement with a tenant for approximately thirty-seven percent of the square footage of the corporate headquarters. Under this agreement, the Company receives $16,000 per month as rental income which is accounted for as a reduction of rent expense. The sub-lease agreement continues until February 29, 2016. Gross rent expense for the three months ended September 30, 2015 and 2014 was $110,000 and $107,000, respectively, and for the nine months ended September 30, 2015 and 2014 was $328,000 and $324,000, respectively. The rental expense is reduced by the sublease rental income amounts of $50,000 and $48,000, respectively, for the three months ended September 30, 2015 and 2014 and $147,000 and $143,000, respectively, for the nine months ended September 30, 2015 and 2014. On July 13, 2015, the Company entered into a lease for an 18,704 square foot facility located in Newark, California (the “Newark Lease”), which will serve as the Company’s future headquarters, with office, R&D and laboratory space. The Company is in the process of remodeling the facility to support future operations. Under the Newark Lease, the landlord is providing an allowance of up to $599,000 to fund appropriate improvements to the facility. The term of the Newark Lease commences when the landlord delivers possession of the facility to the Company, which is currently estimated to be February 2016. Upon commencement of the Newark Lease, the initial term will be approximately six and a half years, with a monthly rental rate starting at $2.65 per square foot in the first year of the lease, escalating each year by 3.0%. The annual rent obligation is expected to be approximately $595,000 for the first year of the lease. The Company will also be responsible for certain other costs, such as insurance, taxes, utilities, maintenance and repairs, a property management fee, and reimbursement of certain expenses related to maintenance of common areas. The Company delivered a security deposit of approximately $149,000 in connection with the execution of the Newark Lease, and this amount is recorded in other assets on the condensed balance sheets. The aggregate future minimum lease payments under the current and future operating lease are as follows: Years ending December 31, (in thousands) 2015 $ 110 2016 618 2017 611 2018 629 2019 648 Remaining years 1,768 Total minimum lease payments $ 4,384 Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves future claims that may be made against the Company but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. No amounts associated with such indemnifications have been recorded to date. From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that a liability has been incurred and that future expenditures can be reasonably estimated. There have been no contingent liabilities requiring accrual or disclosure at September 30, 2015. |
Loan and Security Agreement
Loan and Security Agreement | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Loan and Security Agreement | 6. Loan and Security Agreement In October 2011, the Company entered into a loan and security agreement (the “Loan and Security Agreement”) with a financial institution. In September 2014, the Loan and Security Agreement was amended. The interest rate is 3.95% per annum and the loan is repayable in thirty-six equal monthly installments, following an eighteen-month interest only period. The final balloon interest payment is approximately $0.6 million and is accreted over the life of the loan. The amendment was accounted for as a modification, and the unamortized debt discount as of the date of the modification is being amortized over the new loan period, using the effective interest rate method. The Loan and Security Agreement contains customary representations and warranties, covenants, closing and advancing conditions, events of defaults and termination provisions. The Loan and Security Agreement provides that an event of default will occur if (1) the financial institution determines that it is the clear intention of the Company’s investors to not continue to fund the Company in the amounts and timeframe necessary to enable the Company to satisfy the Company’s financial obligations, (2) there is a material impairment in the financial institution’s security interest in the personal property that is the collateral, (3) the Company defaults in the payment of any amount payable under the agreement when due or (4) the Company breaches any negative covenant or certain affirmative covenants in the agreement (subject to a grace period in certain cases). The repayment of the loan is accelerated following the occurrence of an event of default or otherwise, which would require the Company to immediately pay an amount equal to: (i) all outstanding principal plus accrued but unpaid interest, (ii) the final payment, plus (iii) all other sums, that shall have become due and payable but have not been paid, including interest at the default rate with respect to any past due amounts. As of September 30, 2015, the Company was in compliance with all the covenants in the Loan and Security Agreement. As discussed in Note 1, the Company has completed its IPO and believes it will be able to meet its payment obligations under the Loan and Security Agreement during the twelve months following the most recent balance sheet date. The Company has classified loan payments beyond twelve months to long term. Aggregated annual payments due under the Loan and Security Agreement are as follows: As of September 30, 2015 (in thousands) 2015 $ 45 2016 1,775 2017 2,095 2018 1,391 Total payments 5,306 Less: Interest (806 ) Present value of loans payable 4,500 Less: Debt discount (91 ) Add: Final balloon payment 517 Less: Unamortized portion of final balloon payment (360 ) Loans payable 4,566 Less: Current portion (965 ) Loans payable, net of current portion $ 3,601 |
Convertible Promissory Notes
Convertible Promissory Notes | 9 Months Ended |
Sep. 30, 2015 | |
Long Term Debt [Abstract] | |
Convertible Promissory Notes | 7. Convertible Promissory Notes On September 29, 2014 and February 19, 2015, the Company entered into convertible note purchase agreements and issued convertible promissory notes (the “Notes”) in an aggregate principal amount of $5.0 million and $4.0 million, respectively, to several related parties that own more than 10% of the Company’s capital stock. All principal and accrued interest on the Notes was converted to the Company’s common stock upon the completion of the Company’s initial public offering in April 2015. Upon conversion, 2,287,120 shares of common stock were issued. The Notes provided that upon completion of an initial public offering, the Notes would automatically convert into a number of shares of the Company’s common stock equal to the quotient obtained by dividing the entire principal amount and accrued interest on the Notes by 80% of the initial public offering price per share of the Company’s common stock. The Notes bore interest at a rate of 5% per annum, compounded annually. Due to the automatic conversion features contained in the Notes, the actual number of shares of common stock or preferred stock that would be required if a conversion of the Notes was made through the issuance of the Company’s common or preferred stock could not be predicted prior to the conversion taking place. In addition, the conversion that would occur upon a change in control of the Company met the definition of a put option and was not closely related to the debt. As a result, the automatic conversion features and put option, exclusive of the Series B conversion feature, required derivative accounting treatment and were bifurcated from the Notes and marked to market each reporting period through the statement of operations and comprehensive loss. The fair value of the automatic conversion features and put option of the Notes, exclusive of the Series B conversion feature, were recorded as a derivative liability instrument and measured at fair value at each reporting period. As of December 31, 2014, the Company estimated the fair value of the derivative by estimating the fair value of the Notes with and without the conversion derivative. To calculate the fair value of the Notes without the conversion derivative, the Company estimated the present value of the expected cash payments at an assumed discount rate of 8.25%. To calculate the fair value of the Notes with the conversion feature, the Company calculated the present value of the Notes upon conversion at an initial public offering, and the present value of the Notes at an equity financing. The risk-free rate for the assumed discount period is estimated at 0.05% and 0.15% in the respective conversion scenarios. The risk-free rate for the assumed discount period is estimated at 0.05% and 0.12% in the respective conversion scenarios at the valuation date of December 31, 2014. The Company applied a probability of occurrence to all of the conversion scenarios associated with the derivative and estimated a weighted value of the Notes with the conversion feature. The difference between the fair value of the Notes with and without the conversion features is the derivative. The fair value of the derivative was $1,495,000 as of December 31, 2014. Upon issuance of the February 2015 Notes, the Company calculated the derivative liability using the same methodology and assumptions as those used as of December 31, 2014 because there were not significant changes in the Company or in the operations of the Company that had occurred in that intervening time period. The additional derivative liability recorded upon issuance of the February 2015 Notes was $1,196,000. At April 8, 2015, the Company remeasured the fair value of the derivative liability for the Notes using a methodology similar to the methodology used at December 31, 2014, with a minimal discount period. The fair value of the derivative was $2,287,000. The Company determined that the Notes contain a beneficial conversion feature related to the conversion feature of the Notes into Series B convertible preferred stock. The beneficial conversion feature results from the difference between the fair value of the Company’s common stock at the date of issuance and the Series B Preferred Stock Conversion price of $4.8104 at the date of issuance. The beneficial conversion feature amounted to $2,275,000 for the September 2014 Notes and $158,000 for the February 2015 Notes as of the date of issuance of the respective Notes, and was recorded as a debt discount that would be amortized through the maturity date of the Notes. At April 8, 2015, the beneficial conversion feature amounted to $202,000 for the September 2014 Notes and $158,000 for the February 2015 Notes. The fair value of the shares issued upon conversion of the convertible promissory notes was first allocated to the beneficial conversion feature of $360,000. At April 8, 2015, the loss on extinguishment of the convertible promissory notes was calculated as follows: Fair value of common stock issued upon conversion of convertible promissory notes and accrued interest $ 11,435 Less: Fair value of beneficial conversion feature on conversion date (360 ) Net book value of convertible promissory notes (5,611 ) Fair Value of derivative liability at conversion date (2,287 ) Loss on extinguishment of convertible promissory notes $ 3,177 |
Convertible Preferred Stock War
Convertible Preferred Stock Warrants | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Convertible Preferred Stock Warrants | 8. Convertible Preferred Stock Warrants The Company issued warrants to purchase shares of the Company’s convertible preferred stock at various times in connection with loans payable. Immediately prior to the closing of the IPO, all convertible preferred stock warrants were converted in to warrants exercisable for common stock. The convertible preferred stock warrants outstanding as of December 31, 2014 were as follows (in thousands, except share and per share amounts): Number of Underlying Warrants Exercise Price per Share Fair Value, as of December 31, 2014 Series A preferred stock 20,788 $ 4.81 $ 46 Series B preferred stock 103,941 $ 4.81 $ 417 124,729 $ 463 The fair value of the convertible preferred stock warrant liability was remeasured as of each period end. As of December 31, 2014, the Company remeasured the fair value using a Black-Scholes option-pricing method with the following assumptions: a weighted average remaining life of 6.7 years, an expected volatility of 58.9%, a weighted average risk-free interest rate of 1.80% and no expected dividend. As of April 14, 2015, the Company remeasured the fair value of the convertible preferred stock warrant liability using a Black-Scholes option-pricing method with the following assumptions: the Company’s IPO price of $5.00 per share, a weighted average remaining life of 6.4 years, an expected volatility of 58.3%, a weighted average risk-free interest rate of 1.51% and no expected dividend. The Company evaluated the down-round protection provisions of the warrant agreements by using a Monte Carlo simulation model and determined that the impact of such provisions was immaterial to the fair value of the warrants at the reporting dates. The assumptions are further described as follows: Expected Time to liquidity event — The Company estimated the time to liquidity event based on management’s analysis of the business, market conditions and clinical development. Expected Volatility — The Company estimates the expected volatility based on the average volatility for comparable publicly traded biopharmaceutical companies over a period equal to the expected time to liquidity event. When selecting the publicly traded biopharmaceutical companies, the Company selected companies with comparable characteristics to it, including enterprise value and risk profiles, and with historical share price information sufficient to meet the time to liquidity event. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Risk-Free Interest Rate — The risk-free interest rate is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected time to the liquidity event. Expected Dividend Rate — The Company has never paid any dividends and does not plan to pay dividends in the foreseeable future, and, therefore, used an expected dividend rate of zero in the valuation model. On April 8, 2015, the convertible preferred stock warrants automatically converted to common stock warrants. The convertible preferred stock warrant liability was reclassified to additional paid-in capital. During June 2015, the holder of the common stock warrants exercised those warrants for 56,545 shares of common stock in a cashless exercise. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Federal Home Loan Banks [Abstract] | |
Common Stock | 9. Common Stock As of September 30, 2015 the Company’s Amended and Restated Certificate of Incorporation, as amended, has authorized 100,000,000 shares of common stock at $0.001 par value. 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 receive dividends, as may be declared by the board of directors. As of September 30, 2015, no dividends have been declared. |
Stock Option Plan
Stock Option Plan | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Plan | 10. Stock Option Plan Incentive stock options are granted with exercise prices not less than the estimated fair value of common stock, and non-statutory stock options may be granted with an exercise price of not less than 100% of the estimated fair value of the common stock on the date of grant. Options granted under the Plan expire no later than 10 years from the date of grant. Incentive stock options granted under the Plan vest over periods determined by the Board of Directors, generally over four years. Non-statutory stock options vest based on the terms of the individual agreement, generally from nine months to four years. In April 2014, the Company terminated the 2004 Plan and the board of directors approved the 2014 Stock Option Plan (the 2014 Plan), authorizing 250,000 shares for issuance under the 2014 Plan. Shares underlying any outstanding stock awards or stock option grants previously awarded remain subject to the terms of the 2004 Plan. Any shares available for grant or any shares canceled or forfeited prior to vesting or exercise subsequent to the termination of the 2004 Plan became available for use under the 2014 Plan. Upon the effectiveness of the 2014 Plan, the Company ceased granting any equity awards under the 2004 Plan. In January and February 2015, the board of directors and stockholders, respectively, approved the 2015 Equity Plan (the “2015 Equity Plan”). All future awards will be granted under the 2015 Plan. In connection with the IPO, the Company terminated the 2014 Plan. Shares underlying any outstanding stock option grants previously awarded under the 2014 Plan remain subject to the terms of such plan. Any shares available for grant or any shares canceled or forfeited prior to vesting or exercise subsequent to the termination of the 2014 Plan became available for use under the 2015 Plan. As of September 30, 2015, options for 610,891 shares have been issued under the 2015 Equity Plan. The maximum number of shares of the Company’s common stock that may be delivered in satisfaction of awards under the 2015 Equity Plan is 1,532,534 shares, inclusive of 750,000 shares authorized upon creation of the 2015 Plan. The number of shares available for issuance under the Company’s 2015 Equity Plan will be increased on the first day of each fiscal year beginning in 2016, by an amount equal to the lessor of (1) 1,200,000 shares of stock and (2) four percent (4%) of the outstanding shares of stock on the last day of the immediately preceding year. As of September 30, 2015, the Company had 1,722,262 shares issuable upon exercise of outstanding option awards. In July 2015, the board of directors approved a non-qualified stock option grant of 165,903 shares of the Company’s common stock for an employee as an inducement grant in connection with his commencement of employment. The grant was issued outside of the 2015 Equity Plan. Stockholder approval was not required for this grant in reliance upon the employment inducement award exemption provided by NASDAQ Rule 5635(c)(4). Total stock-based compensation expense related to options and awards granted was allocated as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Research and Development $ 86 $ 60 $ 96 $ 78 General and administrative 203 40 348 130 Total $ 289 $ 100 $ 444 $ 208 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions In September 2014 and February 2015, the Company issued the Notes to several related parties that own more than 10% of the Company’s capital stock (see Note 7). Upon completion of the IPO, those Notes were converted in to shares of the Company’s common stock. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The Company’s effective tax rate is 0% for income tax for the three and nine months ended September 30, 2015 and the Company expects that its effective tax rate for the full year 2015 will be 0%. Based on the weight of available evidence, including cumulative losses since inception and expected future losses, the Company has determined that it is more likely than not that the deferred tax asset amount will not be realized and therefore a valuation allowance has been provided on net deferred tax assets. The Company has substantial net operating loss carry forwards available to offset future taxable income for federal and state income tax purposes. The ability to utilize the net operating losses may be limited due to changes in our ownership as defined by Section 382 of the Internal Revenue Code (the “Code”). Under the provisions of Sections 382 and 383 of the Code, a change of control, as defined in the Code, may impose an annual limitation on the amount of the Company’s net operating loss and tax credit carryforwards, and other tax attributes that can be used to reduce future tax liabilities. The Company files tax returns for U.S. Federal and State of California. The Company is not currently subject to any income tax examinations. Since the Company’s inception, the Company had incurred losses from operations, which generally allows all tax years to remain open. The gross amount of unrecognized tax benefits as of September 30, 2015 is approximately $0.6 million related to the reserve on R&D credits, none of which will affect the effective tax rate if recognized due to the valuation allowance. The Company does not expect any material changes in the next 12 months in unrecognized tax benefits. The Company recognizes interest and/or penalties related to uncertain tax positions. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected in the period that such determination is made. Any interest and penalties are recognized in income tax expense. The Company currently has no interest and penalties related to uncertain tax positions. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events In October 2015, the Company paid approximately $980,000 to the landlord of the Newark Lease for tenant improvement work to be performed. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and on a basis consistent with the annual financial statements, and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the periods presented. These interim financial results are not necessarily indicative of the results to be expected for the year ending December 31, 2015, or for any other future annual or interim period. The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Prospectus filed pursuant to Rule 424(b)(4) on April 8, 2015 with the SEC (the “Prospectus”). |
Use of Estimates | Use of Estimates The preparation of the interim condensed financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to common stock, stock-based compensation expense, warrant liabilities, accruals, derivative liability, deferred tax valuation allowance and revenue recognition. Management bases its estimates on historical experience or on various other assumptions, including information received from its service providers, which it believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Risks and Uncertainties | Risks and Uncertainties The product candidates developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or foreign regulatory agencies prior to commercial sales. There can be no assurance that the Company’s current and future product candidates will receive the necessary approvals. If the Company is denied approval or approval is delayed, it may have a material adverse impact on the Company’s business and its financial statements. The Company is subject to risks common to companies in the pharmaceutical industry with no commercial operating history, including, but not limited to, dependency on the clinical and commercial success of its product candidates, ability to obtain regulatory approval of its product candidates, the need for substantial additional financing to achieve its goals, uncertainty of broad adoption of its approved products, if any, by physicians and consumers, significant competition and untested manufacturing capabilities. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to launch and commercialize any products or product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be at terms acceptable by the Company. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. The Company invests its excess cash in money market accounts. The Company’s cash and cash equivalents are held by a single financial institution and all cash is held in the United States. Such deposits may, at times, exceed federally insured limits. The Company has not recognized any losses during the periods presented and management does not believe that the Company is exposed to significant credit risk from its cash and cash equivalents. |
Segment Reporting | Segment Reporting The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. The Company is a specialty pharmaceutical company focused on the development and commercialization of novel and proprietary combination therapies that address significant unmet medical needs. No product revenue has been generated since inception, and all assets are held in the United States. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity date of 90 days or less on the date of purchase to be cash equivalents. The Company invests its cash in bank deposits and money market funds. |
Restricted Cash | Restricted Cash The Company is required to guarantee the credit limit on its corporate credit card with a certificate of deposit of $50,000. The balance is included as restricted cash on the condensed balance sheets. |
Beneficial Conversion Feature | Beneficial Conversion Feature From time to time, the Company may issue convertible promissory notes that have conversion prices that create an embedded beneficial conversion feature on the issuance date. A beneficial conversion feature exists on the date a convertible promissory note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted with the debt. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid-in capital. The debt discount is amortized to interest expense over the term of the note using the effective interest method. |
Embedded Derivatives Related to Convertible Promissory Notes | Embedded Derivatives Related to Convertible Promissory Notes Embedded derivatives that are required to be bifurcated from the underlying debt instrument (i.e. host) are accounted for and valued as a separate financial instrument. The Company evaluated the terms and features of the convertible promissory notes issued in September 2014 and February 2015 and identified embedded derivatives requiring bifurcation and accounting at fair value because the economic and contractual characteristics of the embedded derivatives met the criteria for bifurcation and separate accounting due to the conversion features (see Note 7 for a description of the conversion features). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value accounting is applied for all financial assets and liabilities, and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Computer equipment 3 years Lab equipment 3 years Furniture and fixtures 5 years Machinery and equipment 3 years Manufacturing equipment 7 years Leasehold improvements are amortized over the lesser of their useful lives or the term of the lease. Upon sale or retirement of the assets, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is recognized in the accompanying interim condensed statement of operations and comprehensive loss in other income (expense), net. Maintenance and repairs are charged to operations as incurred. |
Pre-clinical and Clinical Trial Accruals | Pre-clinical and Clinical Trial Accruals The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with clinical research organizations that conduct and manage preclinical and clinical trials on the Company’s behalf. If contracts are modified based upon changes in the clinical trial protocol or scope of work to be performed, the Company modifies the estimates of accrued expenses accordingly. To date, there have been no material differences from its estimates to the amount actually incurred. |
Preferred Stock Warrant Liability | Preferred Stock Warrant Liability The Company accounts for its warrants as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as derivative liabilities are recorded on the Company’s accompanying balance sheets at their fair value on the date of issuance and are revalued at each subsequent balance sheet date, with fair value changes recognized as increases or reductions to other income (expense), net in the statements of operations and comprehensive loss. |
Research and Development Expenditures | Research and Development Expenditures Costs incurred to further the Company’s research and development include salaries and related employee benefits, stock-based compensation expense, costs associated with clinical studies, nonclinical research and development activities, regulatory activities, research-related overhead expenses and fees paid to external service providers and contract research and manufacturing organizations that conduct certain research and development activities on behalf of the Company. |
Stock-Based Compensation | Stock-Based Compensation The Company maintains performance incentive plans under which incentive stock options and non-qualified stock options may be granted to employees and non-employees. The Company accounts for stock-based compensation arrangements with employees in accordance with ASC 718, Compensation — Stock Compensation. The Company’s determination of the fair value of stock options on the date of grant utilizes the Black-Scholes option-pricing model, and is impacted by its common stock price as well as changes in assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected term that options will remain outstanding, expected common stock price volatility over the term of the option awards, risk-free interest rates and expected dividends. The fair value is recognized over the period during which an optionee is required to provide services in exchange for the option award, known as the requisite service period (usually the vesting period), on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain tax positions in accordance with ASC 740-10, Accounting for Uncertainty in Income Taxes. |
Net Loss per Share to Common Stockholders | Net Loss per Share to Common Stockholders Basic earnings per share to common stockholders is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the periods presented. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and other potentially dilutive securities using the treasury stock method unless the effect is antidilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards update (“ASU”) 2014-09, “Revenue from Contracts with Customers In August 2014, the FASB issued ASU NO. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern |
Summary of Significant Accoun20
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Estimated Useful Life of Property and Equipment | Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Computer equipment 3 years Lab equipment 3 years Furniture and fixtures 5 years Machinery and equipment 3 years Manufacturing equipment 7 years |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Fair Value Hierarchy for Assets and Liabilities Measured on a Recurring Basis | The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of September 30, 2015 (in thousands) Quoted Price in Active Markets for Identical Significant other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 59,803 $ — $ — $ 59,803 Certificate of deposit — 50 — 50 $ 59,803 $ 50 $ — $ 59,853 Liabilities Derivative liability $ — $ — $ — $ — Preferred stock warrant liability — — — — $ — $ — $ — $ — Fair Value Measurements as of December 31, 2014 (in thousands) Quoted Price in Active Markets for Identical Significant other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Assets Money market funds (1) $ 3,825 $ — $ — $ 3,825 Certificate of deposit — 50 — 50 $ 3,825 $ 50 $ — $ 3,875 Liabilities Derivative liability $ — $ — $ 1,495 $ 1,495 Preferred stock warrant liability — — 463 463 $ — $ — $ 1,958 $ 1,958 (1) Included in cash and cash equivalents in the Company’s condensed balance sheet. |
Preferred Stock Warrant Liability [Member] | |
Summary of Change in Fair Value of Preferred Stock Warrant Liability | The change in the fair value of the preferred stock warrant liability is summarized below: Fair value as of December 31, 2014 $ 463 Change in fair value recorded in other income (expense), net $ (116 ) Conversion to common stock warrants at IPO date $ (347 ) Fair value as of September 30, 2015 $ — |
Derivative Liability [Member] | |
Summary of Activity of Derivative Liability | The following is a summary of the activity of the derivative liability for the nine months ended September 30, 2015: Fair value as of December 31, 2014 $ 1,495 Embedded derivative liability upon issuance of convertible promissory notes 1,196 Change in fair value recorded in other income (expense), net (404 ) Automatic exercise of the derivative liability (2,287 ) Fair value as of September 30, 2015 $ — |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Property and Equipment | The following table represents the components of property and equipment (in thousands): September 30, December 31, 2015 2014 Computer equipment $ 30 $ 30 Lab equipment 676 543 Furniture and fixtures 21 21 Machinery and equipment 173 26 Leasehold improvement 55 55 955 675 Less: Accumulated depreciation and amortization (593 ) (495 ) Total property and equipment, net $ 362 $ 180 |
Schedule of Accrued Liabilities | Accrued Liabilities (in thousands) September 30, December 31, 2015 2014 Accrued payroll and related expenses $ 706 $ 723 Accrued legal expenses 48 159 Accrued research and clinical trial expenses 467 380 Accrued professional services 51 343 $ 1,272 $ 1,605 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Current and Future Operating Lease | The aggregate future minimum lease payments under the current and future operating lease are as follows: Years ending December 31, (in thousands) 2015 $ 110 2016 618 2017 611 2018 629 2019 648 Remaining years 1,768 Total minimum lease payments $ 4,384 |
Loan and Security Agreement (Ta
Loan and Security Agreement (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Annual Payments Due Under Loan and Security Agreement | Aggregated annual payments due under the Loan and Security Agreement are as follows: As of September 30, 2015 (in thousands) 2015 $ 45 2016 1,775 2017 2,095 2018 1,391 Total payments 5,306 Less: Interest (806 ) Present value of loans payable 4,500 Less: Debt discount (91 ) Add: Final balloon payment 517 Less: Unamortized portion of final balloon payment (360 ) Loans payable 4,566 Less: Current portion (965 ) Loans payable, net of current portion $ 3,601 |
Convertible Promissory Notes (T
Convertible Promissory Notes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Long Term Debt [Abstract] | |
Schedule of Loss on Extinguishment of Convertible Promissory Notes | At April 8, 2015, the loss on extinguishment of the convertible promissory notes was calculated as follows: Fair value of common stock issued upon conversion of convertible promissory notes and accrued interest $ 11,435 Less: Fair value of beneficial conversion feature on conversion date (360 ) Net book value of convertible promissory notes (5,611 ) Fair Value of derivative liability at conversion date (2,287 ) Loss on extinguishment of convertible promissory notes $ 3,177 |
Convertible Preferred Stock W26
Convertible Preferred Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Convertible Preferred Stock Warrants | Immediately prior to the closing of the IPO, all convertible preferred stock warrants were converted in to warrants exercisable for common stock. The convertible preferred stock warrants outstanding as of December 31, 2014 were as follows (in thousands, except share and per share amounts): Number of Underlying Warrants Exercise Price per Share Fair Value, as of December 31, 2014 Series A preferred stock 20,788 $ 4.81 $ 46 Series B preferred stock 103,941 $ 4.81 $ 417 124,729 $ 463 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense related to options and awards granted was allocated as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Research and Development $ 86 $ 60 $ 96 $ 78 General and administrative 203 40 348 130 Total $ 289 $ 100 $ 444 $ 208 |
Formation and Business of the28
Formation and Business of the Company - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 14, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares |
Organization And Basis Of Presentation [Line Items] | |||
Entity Incorporation, State Name | Delaware | ||
Date of incorporation | Mar. 26, 2004 | ||
Accumulated deficit | $ | $ 66,962 | $ 47,775 | |
Reverse stock split, description | In March 2015, the Company’s board of directors and stockholders approved a 4-for-1 reverse stock split of the Company’s common and preferred stock. The Company filed an amendment to its certificate of incorporation effecting the reverse stock split on March 13, 2015. All issued and outstanding common stock, convertible preferred stock, warrants for preferred stock, options for common stock and per share amounts contained in the condensed financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented | ||
Reverse Stock Split, Conversion Ratio | 0.25 | ||
Proceeds from issuance of common stock, net | $ | $ 67,908 | ||
Carrying value of convertible preferred stock into common stock | $ | $ 39,556 | ||
Capital stock, shares authorized | 105,000,000 | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 45,000,000 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 0 |
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding | 0 | ||
Convertible Promissory Notes [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Conversion of notes into common stock, shares | 2,287,120 | ||
Convertible Preferred Stock [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Convertible preferred stock converted into common stock | 8,268,531 | ||
Carrying value of convertible preferred stock into common stock | $ | $ 39,600 | ||
IPO [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Proceeds from issuance of common stock, net | $ | $ 66,300 | ||
IPO [Member] | Common Stock [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Shares of common stock sold | 14,950,000 | ||
Over-Allotment Option [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Shares of common stock sold | 1,950,000 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies Basis of Presentation - Additional Information (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Certificates of Deposit Included as Restricted Cash | $ 50,000 | $ 50,000 |
Certificate of Deposit [Member] | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Certificates of Deposit Included as Restricted Cash | $ 50,000 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies Basis of Presentation - Estimated Useful Life of Property and Equipment (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 3 years |
Lab Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 5 years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 3 years |
Manufacturing Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 7 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Sep. 30, 2015USD ($) |
Fair Value Disclosures [Abstract] | |
Transfers between Level 1 and Level 2, Assets | $ 0 |
Transfers between Level 2 and Level 1, Assets | 0 |
Transfers between Level 1 and Level 2, Liabilities | 0 |
Transfers between Level 2 and Level 1, Liabilities | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Hierarchy for Assets and Liabilities Measured on a Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair value | $ 59,853 | $ 3,875 |
Liabilities, Fair value | 1,958 | |
Derivative Liability [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair value | 1,495 | |
Preferred Stock Warrant Liability [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair value | 463 | |
Quoted Price in Active Markets for Identical Assets Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair value | 59,803 | 3,825 |
Significant other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair value | 50 | 50 |
Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair value | 1,958 | |
Significant Unobservable Inputs Level 3 [Member] | Derivative Liability [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair value | 1,495 | |
Significant Unobservable Inputs Level 3 [Member] | Preferred Stock Warrant Liability [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair value | 463 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair value | 59,803 | 3,825 |
Money Market Funds [Member] | Quoted Price in Active Markets for Identical Assets Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair value | 59,803 | 3,825 |
Certificate of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair value | 50 | 50 |
Certificate of Deposit [Member] | Significant other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair value | $ 50 | $ 50 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Change in Fair Value of Preferred Stock Warrant Liability (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Conversion to common stock warrants at IPO date | $ (347) |
Preferred Stock Warrant Liability [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value as of December 31, 2014 | 463 |
Change in fair value recorded in other income (expense), net | (116) |
Conversion to common stock warrants at IPO date | $ (347) |
Fair Value Measurements - Sum34
Fair Value Measurements - Summary of Activity of Derivative Liability (Detail) - Derivative Liability [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value as of December 31, 2014 | $ 1,495 |
Embedded derivative liability upon issuance of convertible promissory notes | 1,196 |
Change in fair value recorded in other income (expense), net | (404) |
Automatic exercise of the derivative liability | $ (2,287) |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 955 | $ 675 |
Less: Accumulated depreciation and amortization | (593) | (495) |
Total property and equipment, net | 362 | 180 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 30 | 30 |
Lab Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 676 | 543 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 21 | 21 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 173 | 26 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 55 | $ 55 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization | $ 98 | $ 37 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 706 | $ 723 |
Accrued legal expenses | 48 | 159 |
Accrued research and clinical trial expenses | 467 | 380 |
Accrued professional services | 51 | 343 |
Total accrued liabilities | $ 1,272 | $ 1,605 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jul. 13, 2015USD ($)ft²$ / ft² | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Other Commitments [Line Items] | |||||
Rental income per month, sub-lease agreement | $ 16,000 | ||||
Gross rent expense | $ 110,000 | $ 107,000 | 328,000 | $ 324,000 | |
Sublease rental income | 50,000 | $ 48,000 | 147,000 | $ 143,000 | |
Indemnification Guarantee | |||||
Other Commitments [Line Items] | |||||
Contingent liabilities | 0 | $ 0 | |||
Facility located in Newark, California | |||||
Other Commitments [Line Items] | |||||
Security deposit | $ 149,000 | ||||
Gross rent expense | $ 595,000 | ||||
Area of square foot lease premises | ft² | 18,704 | ||||
Estimated lease commencement date | Feb. 1, 2016 | ||||
Operating leases, initial term of contract | 6 years 6 months | ||||
Monthly rental rate per square foot | $ / ft² | 2.65 | ||||
Annual base rent percentage | 3.00% | ||||
Facility located in Newark, California | Maximum [Member] | |||||
Other Commitments [Line Items] | |||||
Operating leases allowance for improvements | $ 599,000 | ||||
Non Cancellable Operating Lease [Member] | |||||
Other Commitments [Line Items] | |||||
Lease expiration date | Feb. 29, 2016 | ||||
Non Cancellable Operating Lease [Member] | Other Noncurrent Assets [Member] | |||||
Other Commitments [Line Items] | |||||
Security deposit | $ 69,000 | $ 69,000 | |||
Sublease Agreement [Member] | |||||
Other Commitments [Line Items] | |||||
Lease expiration date | Feb. 29, 2016 | ||||
Percentage of square footage leased | 37.00% |
Commitments and Contingencies39
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Current and Future Operating Lease (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,015 | $ 110 |
2,016 | 618 |
2,017 | 611 |
2,018 | 629 |
2,019 | 648 |
Remaining years | 1,768 |
Total minimum lease payments | $ 4,384 |
Loan and Security Agreement - A
Loan and Security Agreement - Additional Information (Detail) - Loan and Security Agreement [Member] $ in Thousands | 1 Months Ended | 9 Months Ended |
Sep. 30, 2014USD ($)Installment | Sep. 30, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.95% | |
Loan repayment description | The loan is repayable in thirty-six equal monthly installments, following an eighteen-month interest only period. The final balloon interest payment is approximately $0.6 million and is accreted over the life of the loan. | |
Number of equal monthly installments | Installment | 36 | |
Interest repayment period | 18 months | |
Frequency of payments | Equal monthly installments | |
Final balloon interest payment | $ 600 | $ 517 |
Event of default description | The Loan and Security Agreement provides that an event of default will occur if (1) the financial institution determines that it is the clear intention of the Company’s investors to not continue to fund the Company in the amounts and timeframe necessary to enable the Company to satisfy the Company’s financial obligations, (2) there is a material impairment in the financial institution’s security interest in the personal property that is the collateral, (3) the Company defaults in the payment of any amount payable under the agreement when due or (4) the Company breaches any negative covenant or certain affirmative covenants in the agreement (subject to a grace period in certain cases). The repayment of the loan is accelerated following the occurrence of an event of default or otherwise, which would require the Company to immediately pay an amount equal to: (i) all outstanding principal plus accrued but unpaid interest, (ii) the final payment, plus (iii) all other sums, that shall have become due and payable but have not been paid, including interest at the default rate with respect to any past due amounts. |
Loan and Security Agreement -41
Loan and Security Agreement - Annual Payments Due Under Loan and Security Agreement (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | |||
Less: Current portion | $ (965) | $ (4,435) | |
Loans payable, net of current portion | 3,601 | ||
Loan and Security Agreement [Member] | |||
Debt Instrument [Line Items] | |||
2,015 | 45 | ||
2,016 | 1,775 | ||
2,017 | 2,095 | ||
2,018 | 1,391 | ||
Total payments | 5,306 | ||
Less: Interest | (806) | ||
Present value of loans payable | 4,500 | ||
Less: Debt discount | (91) | ||
Final balloon interest payment | 517 | $ 600 | |
Less: Unamortized portion of final balloon payment | (360) | ||
Loans payable | 4,566 | ||
Less: Current portion | (965) | ||
Loans payable, net of current portion | $ 3,601 |
Convertible Promissory Notes -
Convertible Promissory Notes - Additional Information (Detail) - USD ($) | Apr. 08, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Feb. 19, 2015 | Sep. 29, 2014 |
Debt Instrument [Line Items] | |||||
Derivative liability | $ 1,495,000 | ||||
Convertible Promissory Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Initial public offering period | April 2,015 | ||||
Debt instrument interest rate | 5.00% | ||||
Debt instrument payment terms | Annually | ||||
Present value of the notes assumed discount rate | 8.25% | ||||
Derivative liability | $ 2,287,000 | $ 1,495,000 | |||
Debt instrument conversion price | $ 4.8104 | ||||
Debt instrument, convertible, beneficial conversion feature | 360,000 | ||||
Convertible Promissory Notes [Member] | Fair Value of Notes With Conversion Derivative [Member] | |||||
Debt Instrument [Line Items] | |||||
Risk-free interest rate | 0.05% | 0.05% | |||
Convertible Promissory Notes [Member] | Fair Value of Notes without Conversion Derivative [Member] | |||||
Debt Instrument [Line Items] | |||||
Risk-free interest rate | 0.15% | 0.12% | |||
Convertible Promissory Notes [Member] | Related Parties that own more than ten percent of the company capital [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible debt, aggregate principal amount | $ 4,000,000 | $ 5,000,000 | |||
Debt instrument conversion rate | 80.00% | ||||
Convertible Promissory Notes [Member] | Related Parties that own more than ten percent of the company capital [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Ownership held by related parties | 10.00% | ||||
February 2015 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Fair value of derivative liability at issuance | $ 1,196,000 | ||||
Debt instrument, convertible, beneficial conversion feature | 158,000 | 158,000 | |||
September 2014 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, convertible, beneficial conversion feature | $ 202,000 | $ 2,275,000 |
Convertible Promissory Notes 43
Convertible Promissory Notes - Schedule of Loss on Extinguishment of Convertible Promissory Notes (Detail) - USD ($) | Apr. 08, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Extinguishment Of Debt [Line Items] | |||
Fair Value of derivative liability at conversion date | $ (1,495,000) | ||
Loss on extinguishment of convertible promissory notes | $ 3,177,000 | ||
Convertible Promissory Notes [Member] | |||
Extinguishment Of Debt [Line Items] | |||
Fair value of beneficial conversion feature on conversion date | $ (360,000) | ||
Net book value of convertible promissory notes | (5,611,000) | ||
Fair Value of derivative liability at conversion date | (2,287,000) | $ (1,495,000) | |
Loss on extinguishment of convertible promissory notes | 3,177,000 | ||
Convertible Promissory Notes [Member] | Common Stock [Member] | |||
Extinguishment Of Debt [Line Items] | |||
Fair value of common stock issued upon conversion of convertible promissory notes and accrued interest | $ 11,435,000 |
Convertible Preferred Stock W44
Convertible Preferred Stock Warrants - Schedule of Convertible Preferred Stock Warrants (Detail) $ / shares in Units, $ in Thousands | Dec. 31, 2014USD ($)$ / sharesshares |
Class of Warrant or Right [Line Items] | |
Number of Shares Underlying Warrants | shares | 124,729 |
Fair Value | $ 463 |
Series A Convertible Preferred Stock [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Shares Underlying Warrants | shares | 20,788 |
Warrant Exercise price,per share | $ / shares | $ 4.81 |
Fair Value | $ 46 |
Series B Convertible Preferred Stock [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Shares Underlying Warrants | shares | 103,941 |
Warrant Exercise price,per share | $ / shares | $ 4.81 |
Fair Value | $ 417 |
Convertible Preferred Stock W45
Convertible Preferred Stock Warrants - Additional Information (Detail) - Series B Warrants [Member] - $ / shares | Apr. 14, 2015 | Dec. 31, 2014 | Jun. 30, 2015 |
Class of Warrant or Right [Line Items] | |||
Weighted average remaining life | 6 years 4 months 24 days | 6 years 8 months 12 days | |
Expected volatility rate | 58.30% | 58.90% | |
Weighted average risk-free interest rate | 1.51% | 1.80% | |
Expected dividend rate | 0.00% | 0.00% | |
Common stock warrants cashless exercise | 56,545 | ||
IPO [Member] | |||
Class of Warrant or Right [Line Items] | |||
Offering price per share | $ 5 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Apr. 14, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 45,000,000 |
Description of voting rights to shareholders | Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. | ||
Common stock dividends declared | $ 0 |
Stock Option Plan - Additional
Stock Option Plan - Additional Information (Detail) - shares | Sep. 30, 2015 | Jul. 31, 2015 | Sep. 30, 2015 | Apr. 30, 2014 |
2004 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted, vesting period | 4 years | |||
Stock incentive plan, termination period | 2014-04 | |||
2004 Stock Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted, expiration period | 10 years | |||
2004 Stock Incentive Plan [Member] | Non-Statutory Stock Options [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted exercise price, based on percentage of estimated fair value | 100.00% | |||
Stock options granted, vesting period | 9 months | |||
2004 Stock Incentive Plan [Member] | Non-Statutory Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted, vesting period | 4 years | |||
2014 Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 250,000 | |||
2015 Equity Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 750,000 | 750,000 | ||
Stock option, shares issued | 610,891 | |||
Shares available for future awards | 1,532,534 | 1,532,534 | ||
Number of shares available for issuance | 1,200,000 | 1,200,000 | ||
Percentage of maximum outstanding shares of stock | 4.00% | |||
Shares issuable upon exercise of outstanding option awards | 1,722,262 | 1,722,262 | ||
Share-based compensation arrangement by share-based payment award, description | The number of shares available for issuance under the Company’s 2015 Equity Plan will be increased on the first day of each fiscal year beginning in 2016, by an amount equal to the lessor of (1) 1,200,000 shares of stock and (2) four percent (4%) of the outstanding shares of stock on the last day of the immediately preceding year. | |||
Non-Qualified Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option, shares issued | 165,903 |
Stock Option Plan - Schedule of
Stock Option Plan - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock based compensation expense | $ 289 | $ 100 | $ 444 | $ 208 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock based compensation expense | 86 | 60 | 96 | 78 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock based compensation expense | $ 203 | $ 40 | $ 348 | $ 130 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Minimum [Member] | Convertible Promissory Notes [Member] | Related Parties that own more than ten percent of the company capital [Member] | |
Related Party Transaction [Line Items] | |
Ownership held by related parties | 10.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate | 0.00% | 0.00% | |
Gross unrecognized tax benefits related to reserve on R&D credits | $ 600,000 | $ 600,000 | |
Material changes in the next 12 months in unrecognized tax benefits | $ 0 | 0 | |
Interest and penalties related to uncertain tax positions | $ 0 | ||
Forecast [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate | 0.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | 1 Months Ended |
Oct. 31, 2015USD ($) | |
Facility located in Newark, California | Subsequent Event [Member] | |
Operating Leased Assets [Line Items] | |
Payment to landlord for tenant improvements | $ 980,000 |