Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CNAT | ' |
Entity Registrant Name | 'Conatus Pharmaceuticals Inc | ' |
Entity Central Index Key | '0001383701 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 15,619,879 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $35,135,391 | $4,036,091 |
Marketable securities | 24,456,557 | 3,989,473 |
Prepaid and other current assets | 613,612 | 76,184 |
Total current assets | 60,205,560 | 8,101,748 |
Property and equipment, net | 21,805 | 29,604 |
Other assets | 14,395 | 14,395 |
Total assets | 60,241,760 | 8,145,747 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 774,540 | 1,087,346 |
Accrued compensation | 381,070 | 325,555 |
Total current liabilities | 1,155,610 | 1,412,901 |
Convertible preferred stock warrant liability | ' | 160,345 |
Note payable | 1,000,000 | 1,000,000 |
Stockholders' equity (deficit): | ' | ' |
Common stock, $0.0001 par value, 120,000,000 shares authorized at September 30, 2013 and December 31, 2012, 15,619,879 shares issued and 15,335,069 shares outstanding, excluding 284,810 shares subject to repurchase at September 30, 2013, 1,207,091 shares issued and 1,052,606 shares outstanding, excluding 154,485 shares subject to repurchase, at December 31, 2012 | 1,562 | 105 |
Additional paid-in capital | 127,377,725 | 470,982 |
Accumulated other comprehensive income | 11,732 | 551 |
Deficit accumulated during the development stage | -69,304,869 | -58,807,509 |
Total stockholders' equity (deficit) | 58,086,150 | -58,335,871 |
Total liabilities, convertible preferred stock and stockholders' equity (deficit) | 60,241,760 | 8,145,747 |
Series A Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Convertible Preferred Stock | ' | 32,208,532 |
Series B Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Convertible Preferred Stock | ' | $31,699,840 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | |||
Preferred stock, par value | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 |
Preferred stock, shares authorized | ' | ' | 44,827,538 | 44,827,538 | 50,300,000 | 50,300,000 |
Preferred stock, shares issued | ' | ' | 0 | 42,494,218 | 0 | 36,417,224 |
Preferred stock, shares outstanding | ' | ' | 0 | 42,494,218 | 0 | 36,417,224 |
Common stock, par value | $0.00 | $0.00 | ' | ' | ' | ' |
Common stock, shares authorized | 120,000,000 | 120,000,000 | ' | ' | ' | ' |
Common stock, shares issued | 15,619,879 | 1,207,091 | ' | ' | ' | ' |
Common stock, shares outstanding | 15,335,069 | 1,052,606 | ' | ' | ' | ' |
Common stock, shares subject to repurchase | 284,810 | 154,485 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | 99 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Operating expenses: | ' | ' | ' | ' | ' |
Research and development | $1,885,567 | $1,774,322 | $3,970,441 | $4,022,462 | $44,795,589 |
General and administrative | 1,107,668 | 737,460 | 2,526,894 | 2,169,685 | 20,643,486 |
Total operating expenses | 2,993,235 | 2,511,782 | 6,497,335 | 6,192,147 | 65,439,075 |
Other income (expense): | ' | ' | ' | ' | ' |
Interest income | 7,788 | 5,705 | 7,920 | 22,327 | 1,366,670 |
Interest expense | -203,917 | -17,500 | -417,661 | -52,500 | -1,192,490 |
Other income (expense) | 7,911 | -4,354 | -7,040 | -39 | 234,359 |
Other financing expense | -139,328 | -56,700 | -3,576,750 | -91,793 | -4,267,839 |
Total other expense | -327,546 | -72,849 | -3,993,531 | -122,005 | -3,859,300 |
Net loss | -3,320,781 | -2,584,631 | -10,490,866 | -6,314,152 | -69,298,375 |
Other comprehensive income (loss): | ' | ' | ' | ' | ' |
Net unrealized gains (losses) on marketable securities | 11,732 | -1,571 | 11,181 | 6,812 | 11,732 |
Comprehensive loss | -3,309,049 | -2,586,202 | -10,479,685 | -6,307,340 | -69,286,643 |
Reconciliation of net loss to net income (loss) applicable to common stockholders: | ' | ' | ' | ' | ' |
Net loss | -3,320,781 | -2,584,631 | -10,490,866 | -6,314,152 | -69,298,375 |
Gain on extinguishment of convertible preferred stock | ' | ' | 11,491,043 | ' | 11,491,043 |
Deemed distribution from promissory note issuance | ' | ' | -474,561 | ' | -474,561 |
Net income applicable to participating securities | ' | ' | -525,616 | ' | ' |
Net income (loss) applicable to common stockholders-basic | ($3,320,781) | ($2,584,631) | ' | ($6,314,152) | ($58,281,893) |
Net income (loss) per share applicable to common stockholders: (Note 2) | ' | ' | ' | ' | ' |
Basic | ($0.28) | ($2.55) | ' | ($6.24) | ' |
Diluted | ($0.28) | ($2.55) | ' | ($6.24) | ' |
Weighted average shares outstanding used in computing net income (loss) per share applicable to common stockholders: | ' | ' | ' | ' | ' |
Basic | 11,664,328 | 1,012,117 | 4,660,027 | 1,012,117 | ' |
Diluted | 11,664,328 | 1,012,117 | 4,660,027 | 1,012,117 | ' |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | 99 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Operating activities | ' | ' | ' |
Net loss | ($10,490,866) | ($6,314,152) | ($69,298,375) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' | ' |
Depreciation | 7,799 | 6,242 | 207,065 |
Share-based compensation expense | 101,379 | 105,751 | 498,761 |
Noncash other financing expense | 3,618,093 | 91,793 | 4,802,291 |
Acquisition of in-process research and development | ' | ' | 1,250,000 |
Share-based compensation in lieu of salaries | ' | ' | 659,224 |
Noncash license expense | ' | ' | 2,249,999 |
Amortization (accretion) of premium (discount) on investments | 42,936 | 146,676 | -78,680 |
Changes in operating assets and liabilities: | ' | ' | ' |
Prepaid expenses and other current assets | -537,428 | 2,239 | -613,612 |
Other asset | ' | ' | -14,395 |
Accounts payable and accrued expenses | -312,806 | -242,306 | 818,376 |
Accrued compensation | 17,634 | -273,585 | 330,709 |
Net cash used in operating activities | -7,553,259 | -6,477,342 | -59,188,637 |
Investing activities | ' | ' | ' |
Maturities of investments | 3,725,000 | 14,528,000 | 104,507,865 |
Purchase of investments | -24,223,839 | -7,567,942 | -128,874,010 |
Cash paid to acquire in-process research and development | ' | ' | -250,000 |
Capital expenditures | ' | -15,016 | -228,870 |
Net cash provided by (used in) investing activities | -20,498,839 | 6,945,042 | -24,845,015 |
Financing activities | ' | ' | ' |
Issuance of promissory notes | 1,001,439 | ' | 7,201,439 |
Issuance of warrants | 113 | ' | 347 |
Distribution to wholly owned subsidiary in connection with spin-off of Idun | -500,000 | ' | -500,000 |
Issuance of preferred stock for cash, net of offering costs | ' | ' | 53,731,226 |
Public offering costs | -2,771,546 | ' | -2,771,546 |
Issuance of common stock | 61,421,392 | 14,585 | 61,507,577 |
Net cash provided by financing activities | 59,151,398 | 14,585 | 119,169,043 |
Net increase in cash and cash equivalents | 31,099,300 | 482,285 | 35,135,391 |
Cash and cash equivalents at beginning of period | 4,036,091 | 3,072,839 | ' |
Cash and cash equivalents at end of period | 35,135,391 | 3,555,124 | 35,135,391 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for interest | 71,083 | 52,500 | 240,639 |
Supplemental schedule of non-cash investing and financing activities: | ' | ' | ' |
Conversion of notes payable for preferred stock | ' | ' | 6,736,946 |
Issuance of warrants in conjunction with debt | 625,792 | ' | 2,361,223 |
Issuance of note payable related to acquisition of in-process research and development | ' | ' | $1,000,000 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
Conatus Pharmaceuticals Inc. (the Company) was incorporated in the state of Delaware on July 13, 2005. The Company is a biotechnology company focused on the development and commercialization of novel medicines to treat liver disease. | |
As of September 30, 2013, the Company has devoted substantially all of its efforts to product development, and has not realized revenues from its planned principal operations. Accordingly, the Company is considered to be in the development stage. | |
The Company has a limited operating history and the sales and income potential of the Company’s business and market are unproven. The Company has experienced net losses since its inception, and, as of September 30, 2013, had an accumulated deficit of $69,304,869. The Company expects to continue to incur net losses for at least the next several years. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support the Company’s cost structure. | |
The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange commission (SEC) related to a quarterly report on Form 10-Q. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The operating results presented in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2012 included in the Company’s final prospectus filed with the SEC on July 25, 2013 relating to the Company’s Registration Statement on Form S-1 (File No. 333-189305) for its initial public offering (IPO). | |
In July 2013, the Company implemented a 1-for-8.25 reverse stock split of its outstanding common stock. The accompanying condensed consolidated financial statements give effect to the reverse split for all periods presented. | |
In July 2013, the Company completed the IPO of 6,000,000 shares of common stock at an offering price of $11.00 per share. The Company received net proceeds of approximately $59.0 million, after deducting underwriting discounts, commissions and offering-related transaction costs. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The condensed consolidated financial statements at December 31, 2012 include all the accounts of the Company and its wholly-owned subsidiary, Idun Pharmaceuticals, Inc. (Idun). All intercompany balances and transactions have been eliminated in consolidation. In January 2013, the assets and rights related to the drug candidate emricasan were distributed from Idun to the Company. Following that distribution, Idun was spun off from the Company. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risk on its cash. Additionally, the Company established guidelines regarding approved investments and maturities of investments, which are designed to maintain safety and liquidity. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The Company considers all highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. | |||||||||||||||||
Investments | |||||||||||||||||
The Company classifies its investments as available-for-sale and records such assets at estimated fair value in the balance sheet, with unrealized gains and losses, if any, reported as a component of other comprehensive income (loss) within the statements of operations and comprehensive loss and as a separate component of stockholders’ equity (deficit). The Company invests its excess cash balances primarily in corporate debt securities and money market funds with strong credit ratings. Realized gains and losses are calculated on the specific identification method and recorded as interest income. There have been no realized gains and losses for the periods ending September 30, 2013, the year ended December 31, 2012, and for the period from July 13, 2005 (inception) to September 30, 2013. | |||||||||||||||||
At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is other-than-temporary. The Company considers factors including: the significance of the decline in value compared to the cost basis, underlying factors contributing to a decline in the prices of securities in a single asset class, the length of time the market value of the security has been less than its cost basis, the security’s relative performance versus its peers, sector or asset class, expected market volatility and the market and economy in general. When the Company determines that a decline in the fair value below its cost basis is other-than-temporary, the Company recognizes an impairment loss in the year in which the other-than-temporary decline occurred. There have been no other-than-temporary declines in value of marketable securities for the periods ended September 30, 2013, the year ended December 31, 2012, and for the period from July 13, 2005 (inception) to September 30, 2013, as it is more likely than not the Company will hold the securities until maturity or a recovery of the cost basis. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying amounts of accounts payable, accrued expenses, and accrued compensation are reasonable estimates of their fair value because of the short maturity of these items. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment, which consists of furniture and fixtures, computers and office equipment and leasehold improvements, are stated at cost and depreciated over the estimated useful lives of the assets (three to five years) using the straight-line method. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. | |||||||||||||||||
Long-Lived Assets | |||||||||||||||||
The Company regularly reviews the carrying value and estimated lives of all of its long-lived assets, including property and equipment to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. The determinants used for this evaluation include management’s estimate of the asset’s ability to generate positive income from operations and positive cash flow in future periods as well as the strategic significance of the assets to the Company’s business objective. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset’s fair value. The Company has not recognized any impairment losses through September 30, 2013. | |||||||||||||||||
Research and Development Expenses | |||||||||||||||||
All research and development costs are charged to expense as incurred. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The Company’s policy related to accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. As of December 31, 2012, there are no unrecognized tax benefits included in the consolidated balance sheet that would, if recognized, affect the Company’s effective tax rate. The Company has not recognized interest and penalties in the consolidated balance sheets or consolidated statements of operations and comprehensive loss. The Company is subject to U.S. and California taxation. As of December 31, 2012, the Company’s tax years beginning 2005 to date are subject to examination by taxing authorities. | |||||||||||||||||
Convertible Preferred Stock Warrant Liability | |||||||||||||||||
The Company has issued freestanding warrants exercisable to purchase shares of its Series A and Series B convertible preferred stock. These warrants were classified as a liability in the accompanying consolidated balance sheets prior to the completion of the IPO, as the terms for redemption of the underlying security were outside the Company’s control. The Series A convertible preferred stock warrants were recorded at fair value using the Black-Scholes option pricing model. The Series B convertible preferred stock warrants were recorded at fair value using a Monte Carlo model. The fair value of all warrants, except as noted below, was remeasured at each financial reporting date using the Black-Scholes option pricing model with any changes in fair value being recognized in other financing income (expense), a component of other income (expense), in the accompanying statements of operations. The Company ceased the remeasurement of the fair value upon exercise of the Series A warrants, and the Series B warrants becoming exercisable for shares of common stock, immediately prior to the completion of the Company’s IPO in July 2013. | |||||||||||||||||
Comprehensive Loss | |||||||||||||||||
The Company is required to report all components of comprehensive loss, including net loss, in the consolidated financial statements in the period in which they are recognized. Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from nonowner sources, including unrealized gains and losses on investments. Comprehensive gains (losses) have been reflected in the condensed consolidated statements of operations and comprehensive loss for all periods presented. | |||||||||||||||||
Net Income (Loss) Per Share | |||||||||||||||||
Basic net income (loss) per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net income (loss) by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities, which include convertible preferred stock, warrants and outstanding stock options under the stock option plan, have been excluded from the computation of diluted net income (loss) per share in the periods in which they would be anti-dilutive. | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) applicable to common stockholders | $ | (3,320,781 | ) | $ | (2,584,631 | ) | $ | — | $ | (6,314,152 | ) | ||||||
Denominator for basic and diluted net income (loss) per share: | |||||||||||||||||
Weighted average common shares outstanding for basic and diluted | 11,664,328 | 1,012,117 | 4,660,027 | 1,012,117 | |||||||||||||
Net income (loss) per share applicable to common stockholders: | |||||||||||||||||
Basic | $ | (0.28 | ) | $ | (2.55 | ) | $ | — | $ | (6.24 | ) | ||||||
Diluted | $ | (0.28 | ) | $ | (2.55 | ) | $ | — | $ | (6.24 | ) | ||||||
The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred stock | — | 9,565,021 | — | 9,565,021 | |||||||||||||
Warrants to purchase preferred stock-Series A | — | 280,675 | — | 280,675 | |||||||||||||
Common stock warrants | 149,704 | — | 149,704 | — | |||||||||||||
Common stock options | 730,590 | 549,411 | 730,590 | 549,411 | |||||||||||||
Common stock subject to repurchase | 284,810 | 176,781 | 284,810 | 176,781 | |||||||||||||
Total | 1,165,104 | 10,571,888 | 1,165,104 | 10,571,888 | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
3. Fair Value Measurements | |||||||||||||||||
The accounting guidance 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 defined as 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, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1: | Includes financial instruments for which quoted market prices for identical instruments are available in active markets. | ||||||||||||||||
Level 2: | Includes financial instruments for which there are inputs other than quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets with insufficient volume or infrequent transaction (less active markets) or model-driven valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||||||||||||
Level 3: | Includes financial instruments for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including management’s own assumptions. | ||||||||||||||||
Below is a summary of assets and liabilities measured at fair value as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
September 30, 2013 | Quoted | Significant | Significant | ||||||||||||||
Prices in | Other | Unobservable Inputs | |||||||||||||||
Active | Observable | (Level 3) | |||||||||||||||
Markets | Inputs | ||||||||||||||||
for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 34,521,369 | $ | 34,521,369 | $ | — | $ | — | |||||||||
Corporate debt securities | 22,698,842 | — | 22,698,842 | — | |||||||||||||
Debt securities in government sponsored entities | 1,502,715 | — | 1,502,715 | — | |||||||||||||
Municipal bonds | 255,000 | — | 255,000 | — | |||||||||||||
Total assets | $ | 58,977,926 | $ | 34,521,369 | $ | 24,456,557 | $ | — | |||||||||
Fair Value Measurements Using | |||||||||||||||||
December 31, 2012 | Quoted | Significant | Significant | ||||||||||||||
Prices in | Other | Unobservable Inputs | |||||||||||||||
Active | Observable | (Level 3) | |||||||||||||||
Markets | Inputs | ||||||||||||||||
for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 3,874,153 | $ | 3,874,153 | $ | — | $ | — | |||||||||
Municipal bonds | 260,000 | — | 260,000 | — | |||||||||||||
Corporate debt securities | 3,729,473 | — | 3,729,473 | — | |||||||||||||
Total assets | $ | 7,863,626 | $ | 3,874,153 | $ | 3,989,473 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Convertible preferred stock warrant liability | $ | 160,345 | $ | — | $ | — | $ | 160,345 | |||||||||
Total liabilities | $ | 160,345 | $ | — | $ | — | $ | 160,345 | |||||||||
The Company’s marketable securities, consisting principally of debt securities, are classified as available-for-sale, are stated at fair value and consist of Level 2 financial instruments in the fair value hierarchy. The Company determines the fair value of its debt security holdings based on pricing from a service provider. The service provider values the securities based on using market prices from a variety of industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. | |||||||||||||||||
The fair value of the convertible preferred stock warrant liability was determined based on “Level 3” inputs and utilized the Black-Scholes option pricing model for the Series A convertible preferred stock warrants. The Series B convertible preferred stock warrants utilized a Monte Carlo model. The warrant liabilities were marked to market before converting to equity at the IPO. The following table presents activity for the convertible preferred stock warrant liability measured at fair value using significant unobservable Level 3 inputs during the years ended December 31, 2012 and the nine months ended September 30, 2013. | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurements at | |||||||||||||||||
Reporting Date | |||||||||||||||||
Using Significant | |||||||||||||||||
Unobservable | |||||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Balance at December 31, 2011 | $ | 68,786 | |||||||||||||||
Changes in fair value reflected as other financing expense | 91,559 | ||||||||||||||||
Balance at December 31, 2012 | 160,345 | ||||||||||||||||
Issuance of preferred stock warrants | 625,679 | ||||||||||||||||
Changes in fair value reflected as other financing expense | 3,457,184 | ||||||||||||||||
Conversion to equity at IPO | (4,243,208 | ) | |||||||||||||||
Balance at September 30, 2013 | $ | — | |||||||||||||||
The fair value of the convertible promissory notes was determined based on “Level 3” inputs and valued the notes utilizing an estimated cost of debt from publicly available information on issuances of high yield fixed income securities issued by comparable companies. The Company concluded that a 15% discount rate was appropriate, resulting in an initial fair value for the notes of approximately $970,000. The discount was accreted to interest expense through the Company’s IPO and was accreted completely at IPO as the notes plus accrued interest converted to common stock at IPO. The following table presents activity for the convertible promissory notes measured at fair value using significant unobservable Level 3 inputs during the years ended December 31, 2012 and the nine months ended September 30, 2013. | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurements at | |||||||||||||||||
Reporting Date | |||||||||||||||||
Using Significant | |||||||||||||||||
Unobservable | |||||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Balance at December 31, 2012 | $ | — | |||||||||||||||
Issuance of convertible promissory notes | 970,000 | ||||||||||||||||
Accretion of debt discount to interest expense | 31,439 | ||||||||||||||||
Conversion to equity at IPO | (1,001,439 | ) | |||||||||||||||
Balance at September 30, 2013 | $ | — | |||||||||||||||
Investments
Investments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Investments Schedule [Abstract] | ' | ||||||||||||||||||||
Investments | ' | ||||||||||||||||||||
4. Investments | |||||||||||||||||||||
The Company invests its excess cash in money market funds and debt instruments of financial institutions, corporations, and municipal bonds. The following tables summarize the Company’s marketable securities: | |||||||||||||||||||||
As of September 30, 2013 | Maturity | Amortized | Unrealized | Unrealized | Estimated fair | ||||||||||||||||
(in years) | Cost | Gains | Losses | value | |||||||||||||||||
Corporate debt securities | 1 or less | $ | 22,687,884 | $ | 10,958 | $ | — | $ | 22,698,842 | ||||||||||||
Municipal bonds | 1 or less | 255,000 | — | — | 255,000 | ||||||||||||||||
Debt securities in government sponsored entities | 1-2 years | 1,501,941 | 774 | — | 1,502,715 | ||||||||||||||||
Total | $ | 24,444,825 | $ | 11,732 | $ | — | $ | 24,456,557 | |||||||||||||
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property and Equipment | ' | ||||||||||||
5. Property and Equipment | |||||||||||||
Property and equipment consist of the following: | |||||||||||||
Useful Life | September 30, | December 31, | |||||||||||
In Years | 2013 | 2012 | |||||||||||
Furniture and fixtures | 4 | $ | 112,876 | $ | 112,876 | ||||||||
Computer equipment and office equipment | 4 | 95,199 | 95,199 | ||||||||||
Leasehold improvements | 4 | 3,645 | 3,645 | ||||||||||
211,720 | 211,720 | ||||||||||||
Less accumulated depreciation and amortization | (189,915 | ) | (182,116 | ) | |||||||||
$ | 21,805 | $ | 29,604 | ||||||||||
Notes_Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Notes Payable | ' |
6. Notes Payable | |
In July 2010, the Company entered into a $1,000,000 promissory note payable to Pfizer Inc. The note bears interest at 7% per annum which is paid quarterly and matures on July 29, 2020. The note payable prohibits the Company from paying cash dividends and is subject to acceleration upon specified events of default as defined in the agreement including the failure to notify Pfizer of certain material adverse events. In July 2013, the note payable to Pfizer was amended to become convertible into shares of the Company’s common stock following the completion of the IPO, at the option of the holder, at a price per share equal to the fair market value of the common stock on the date of conversion. | |
In May 2013, the Company entered into a note and warrant purchase agreement with certain existing investors pursuant to which it sold, in a private placement, an aggregate of $1.0 million of convertible promissory notes (the 2013 Notes), and issued warrants exercisable to purchase 1,124,026 shares of Series B Preferred Stock (the 2013 Warrants). The 2013 Notes accrued interest at a rate of 6% per annum and were due and payable on the earlier of (1) any date after November 30, 2013 upon which holders of 75% of the outstanding principal amount of all such 2013 Notes demand repayment, or (2) the occurrence of a change of control of the Company, subject in each case to their earlier conversion in the event the Company completed a qualified initial public offering or private placement of debt and/or equity. The 2013 Notes did not provide for any potential adjustments to the stated conversion rates other than in the event of stock splits, stock dividends and recapitalizations. The conversion of the 2013 Notes in the event of a qualified initial public offering or private placement of equity was deemed to be the predominant settlement mechanism. As this predominant settlement mechanism provided for the settlement of a fixed monetary amount in a variable number of equity instruments, the Company concluded that it was appropriate to recognize the 2013 Notes at fair value. The Company valued the 2013 Notes utilizing an estimated cost of debt from publicly available information on issuances of high yield fixed income securities issued by comparable companies. The Company concluded that a 15% discount rate was appropriate, resulting in an initial fair value for the 2013 Notes of approximately $970,000. Upon completion of the IPO, the 2013 Notes plus accrued interest automatically converted into 91,948 shares of common stock. | |
The 2013 Warrants were exercisable for an aggregate of 1,124,026 shares of Series B Preferred Stock at an exercise price of $0.90 per share. Upon completion of the IPO, the 2013 Warrants became exercisable for an aggregate of 136,236 shares of common stock at an exercise price of $7.43 per share. The 2013 Warrants will expire on May 30, 2018. The 2013 Warrants were initially accounted for as liabilities with changes in fair value recognized within the consolidated statement of operations. The Company determined that the initial value of the 2013 Warrants was $506,000. The 2013 Warrants were valued utilizing a Monte Carlo simulation of various weighted scenarios. Following the IPO, the 2013 Warrants were reclassified into equity at their fair value at the time of the completion of the IPO. | |
The valuation at the issuance of the 2013 Notes and 2013 Warrants resulted in a deemed distribution in the amount of $474,561 accounted for as a reduction in net income attributable to common stockholders. | |
In July 2013, the Company entered into a loan and security agreement, (the Credit Facility) with Oxford Finance LLC and Silicon Valley Bank (the Lenders). The Credit Facility provided funding for an aggregate principal amount of up to $15.0 million. The first term loan of the Credit Facility was funded in July 2013 in the amount of $1.0 million. On September 25, 2013, the Company prepaid the outstanding advances under the Credit Facility. Accordingly, the Credit Facility was terminated on September 25, 2013. In connection with the funding of the first term loan under the Credit Facility, the Company issued warrants to the Lenders to purchase up to an aggregate of 111,112 shares of Series B convertible preferred stock at an exercise price of $0.90 per share (Lender Warrants). The Lender Warrants will expire on July 3, 2023. The Lender Warrants were initially accounted for as liabilities with the changes in fair value recognized within the consolidated statement of operations. | |
The Lender Warrants were initially valued at $119,679, and such amount was recognized as additional expense. Upon completion of the IPO, the Lender Warrants became exercisable for an aggregate of 13,468 shares of common stock at an exercise price of $7.43 per share. Following the IPO, the Lender Warrants were reclassified into equity at their fair value at the time of the completion of the IPO. |
Stockholders_Equity_Deficit
Stockholders' Equity (Deficit) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Stockholders' Equity (Deficit) | ' | ||||||||
7. Stockholders’ Equity (Deficit) | |||||||||
Common Stock | |||||||||
During 2005, the Company sold 727,273 shares of common stock to founders for approximately $6,000. During 2006, the Company sold 181,818 shares of common stock to founders for approximately $45,000, subject to certain restrictions that have since been released. | |||||||||
In July 2013, the Company implemented a 1-for-8.25 reverse stock split of its outstanding common stock. The accompanying condensed consolidated financial statements give effect to the reverse split for all periods presented. | |||||||||
In July 2013, the Company completed the IPO of 6,000,000 shares of common stock at an offering price of $11.00 per share. The Company received net proceeds of approximately $59.0 million, after deducting underwriting discounts, commissions and offering-related transaction costs. | |||||||||
Convertible Preferred Stock | |||||||||
Between August 2005 and July 2006, the Company borrowed from certain officers and investors an aggregate principal amount of $1,200,000 under convertible promissory notes. The convertible promissory notes had an annual interest rate of 8% and a conversion premium on principal and accrued interest of 15%. The principal, accrued interest and conversion premium under the convertible promissory notes converted into shares of Series A convertible preferred stock (Series A Preferred Stock) in October 2006, in connection with the initial closing of the Series A Preferred Stock financing. | |||||||||
During 2006, the Company entered into agreements with the founding officers and several investors who collectively purchased 10,160,885 shares of Series A Preferred Stock at $0.75 per share for $5,500,000 in cash, the conversion of the bridge financing noted above, plus related accrued interest and conversion premium of $261,439, and the issuance of preferred stock to employees of approximately $659,224 for services (Initial Closing). Additionally, the Company issued 333,333 shares of the Series A Preferred Stock in satisfaction of its initial license payment to Roche Palo Alto LLC and F. Hoffman-La Roche Ltd. (collectively, Roche) (Note 8). | |||||||||
In May 2007, the Company closed the second round of its Series A Preferred Stock financing, providing the Company with $22,000,000 in gross proceeds from the issuance of an additional 29,333,334 shares of Series A Preferred Stock (Second Closing). Additionally, the Company’s Board of Directors determined that the Company had obtained satisfactory completion of certain preclinical studies of its product candidate, which was licensed from Roche, which triggered an additional $3,500,000 payment in cash and $2,000,000, in the form of the issuance of an additional 2,666,666 shares of Series A Preferred Stock to Roche. | |||||||||
The holders of the Series A Preferred Stock were entitled to receive noncumulative dividends at a rate of $0.06 per share per annum. The Series A Preferred Stock dividends were payable when and if declared by the Company’s Board of Directors. As of September 30, 2013, the Company’s Board of Directors had not declared any dividends. The Series A Preferred Stock dividends were payable in preference and in priority to any dividends on common stock. | |||||||||
Included in the terms of the Series A Preferred Stock agreement were certain rights granted to the holders of the Series A Preferred Stock issued in the Initial Closing which obligated the Company to deliver additional shares of Series A Preferred Stock at a specified price in the future at the potential Second Closing based on the achievement of a milestone or at the option of the holders of the Series A Preferred Stock (the Tranche Right). The Series A Preferred Stock, based on its “deemed liquidation” terms, was classified outside of stockholder’s deficit. Accordingly, the Tranche Right to purchase additional shares was valued and classified as a liability in 2006 and 2007. The carrying value was adjusted at each reporting date for any material changes in its estimated fair value. The estimated fair value was determined using a valuation model which considered the probability of achieving a milestone, if any, the entity’s cost of capital, the estimated time period the Tranche Right would be outstanding, consideration received for the instrument with the Tranche Right, the number of shares to be issued to satisfy the Tranche Right, and at what price and any changes in the fair value of the underlying instrument to the Tranche Right. At December 31, 2006, the change in fair value of the Tranche Right was immaterial. In 2007, the change in fair value of the Tranche Right of $530,977 was recorded as other financing expense and the adjusted carrying value of the Tranche Right of $1,827,784 was reclassified to convertible preferred stock on the balance sheet upon the Second Closing in May 2007. | |||||||||
In February 2011, the Company closed the first round of its Series B convertible preferred stock (Series B Preferred Stock) financing, providing the Company with $20,000,000 in gross proceeds from the issuance of 22,222,223 shares of Series B Preferred Stock. Upon the first closing, 5,861,667 shares of Series B Preferred Stock were issued upon the conversion of convertible bridge notes and related accrued interest under the terms of the convertible bridge financing agreement. In March 2011, the Company completed an additional closing to a new investor of its Series B Preferred Stock financing, providing the Company with $7,500,000 in gross proceeds from the issuance of an additional 8,333,334 shares of Series B Preferred Stock. | |||||||||
The holders of the Series B Preferred Stock were entitled to receive noncumulative dividends at a rate of $0.072 per share per annum. The Series B Preferred Stock dividends were payable when and if declared by the Company’s Board of Directors. As of September 30, 2013, the Company’s Board of Directors had not declared any dividends. The Series B Preferred Stock dividends were payable in preference and in priority to any dividends on common stock and Series A Preferred Stock. | |||||||||
The Series B Preferred Stock, based on its “deemed liquidation” terms, was classified outside of stockholders’ deficit. | |||||||||
On May 30, 2013, 15,576,789 shares of the Company’s convertible preferred stock were converted into 1,557,678 shares of common stock (188,808 shares on a post-reverse split basis) as a result of one preferred stock investor not purchasing a pro rata share of the 2013 Notes. As a result of this transaction, a gain on the extinguishment of preferred stock was recognized as income applicable to common stockholders and an addition to additional paid-in capital in the amount of $11,491,043, which represented the difference between the carrying value of the 15,576,789 shares of convertible preferred stock and the fair value of the 188,808 shares of common stock. | |||||||||
In connection with the IPO in July 2013, all 63,334,653 outstanding shares of convertible preferred stock converted into an aggregate of 7,676,914 shares of common stock. | |||||||||
Warrants | |||||||||
The Company issued warrants to purchase a total of 2,333,320 shares of Series A Preferred Stock in conjunction with a convertible bridge financing in 2010 and issued the 2013 Warrants and Lender Warrants in conjunction with a convertible bridge financing and Credit Facility funding in 2013. The Company initially accounted for the warrants as liabilities because they were exercisable for shares of preferred stock that was classified outside of permanent equity. The convertible preferred stock warrant liability was required to be recorded at fair value at the grant date of the warrants and the carrying value adjusted at each reporting date. The Company revalued the warrants at July 30, 2013 (date of IPO closing) and September 30, 2012, and recorded the change in the value of the warrants of $139,328 for the three months ended September 30, 2013 and $3,457,184 for the nine months ended September 30, 2013 as other financing expense. The Company recorded the change in the value of the warrants of $56,700 for the three months ended September 30, 2012 and $91,793 for the nine months ended September 30, 2012 as other financing expense. The Series A warrants converted to 280,675 shares of common stock as a result of the net exercise of such warrants at the IPO. Upon the completion of the IPO, the 2013 Warrants and the Lender Warrants became exercisable for an aggregate of 149,704 shares of common stock at an exercise price of $7.43 per share. Following the IPO, the 2013 Warrants and Lender Warrants were reclassified into equity at their fair value at the time of the completion of the IPO. | |||||||||
Common Stock | |||||||||
The following shares of common stock are reserved for future issuance at September 30, 2013: | |||||||||
Convertible common stock warrants | 149,704 | ||||||||
Stock options issued and outstanding | 730,590 | ||||||||
Authorized for future option grants | 827,278 | ||||||||
1,707,572 | |||||||||
The following table summarizes the Company’s stock option activity under all stock option plans for the nine months ended September 30, 2013: | |||||||||
Total Options | Weighted- | ||||||||
Average | |||||||||
Exercise | |||||||||
Price | |||||||||
Balance at December 31, 2012 | 690,223 | $ | 0.8 | ||||||
Granted | 226,935 | 9.43 | |||||||
Exercised | (174,447 | ) | 0.24 | ||||||
Cancelled | (12,121 | ) | 0.09 | ||||||
Balance at September 30, 2013 | 730,590 | $ | 3.63 | ||||||
The Company recorded stock-based compensation of $75,463 and $28,677 for the three months ended September 30, 2013 and 2012, respectively, and $101,379 and $105,751 for the nine months ended September 30, 2013 and 2012, respectively. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments | ' |
8. Commitments | |
The Company leases certain office space under a noncancelable operating lease with terms through June 30, 2014. The rent expense for the three months ended September 30, 2013 and 2012 was $45,003 and $38,514, respectively. The rent expense for the nine months ended September 30, 2013 and 2012 was $122,032 and $114,202, respectively. Future minimum payments under the aforementioned noncancelable operating lease total $132,390. | |
In July 2010, the Company entered into a stock purchase agreement with Pfizer, pursuant to which the Company acquired all of the outstanding stock of Idun. Under the agreement, the Company may be required to make payments to Pfizer totaling $18.0 million upon the achievement of specified regulatory milestones. |
Spinoff_of_Idun_Pharmaceutical
Spin-off of Idun Pharmaceuticals, Inc. | 9 Months Ended |
Sep. 30, 2013 | |
Restructuring And Related Activities [Abstract] | ' |
Spin-off of Idun Pharmaceuticals, Inc. | ' |
9. Spin-off of Idun Pharmaceuticals, Inc. | |
In January 2013, the Company spun off its subsidiary Idun to the Company’s stockholders. Prior to the spin-off, rights relating to emricasan were distributed to the Company by Idun pursuant to a distribution agreement. The spin-off was conducted as a dividend of all of the outstanding capital stock of Idun to the Company’s stockholders. As a result, the Company no longer held any capital stock of Idun. In connection with the spin-off, the Company contributed $500,000 to Idun to provide for Idun’s initial working capital requirements. The assets remaining in Idun at the time of the spin-off consisted of cash, intellectual property rights and license and collaboration agreements unrelated to emricasan. Other than the cash of $500,000, none of the assets held by Idun had any historical carrying value at the time of the spin-off. As a result, the Company recognized a reduction in equity as a result of the spin-off of $500,000, representing the carrying value of Idun in the Company’s consolidated financial statements at the time of the spin-off. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The condensed consolidated financial statements at December 31, 2012 include all the accounts of the Company and its wholly-owned subsidiary, Idun Pharmaceuticals, Inc. (Idun). All intercompany balances and transactions have been eliminated in consolidation. In January 2013, the assets and rights related to the drug candidate emricasan were distributed from Idun to the Company. Following that distribution, Idun was spun off from the Company. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Concentrations of Credit Risk | ' | ||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risk on its cash. Additionally, the Company established guidelines regarding approved investments and maturities of investments, which are designed to maintain safety and liquidity. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The Company considers all highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. | |||||||||||||||||
Investments | ' | ||||||||||||||||
Investments | |||||||||||||||||
The Company classifies its investments as available-for-sale and records such assets at estimated fair value in the balance sheet, with unrealized gains and losses, if any, reported as a component of other comprehensive income (loss) within the statements of operations and comprehensive loss and as a separate component of stockholders’ equity (deficit). The Company invests its excess cash balances primarily in corporate debt securities and money market funds with strong credit ratings. Realized gains and losses are calculated on the specific identification method and recorded as interest income. There have been no realized gains and losses for the periods ending September 30, 2013, the year ended December 31, 2012, and for the period from July 13, 2005 (inception) to September 30, 2013. | |||||||||||||||||
At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is other-than-temporary. The Company considers factors including: the significance of the decline in value compared to the cost basis, underlying factors contributing to a decline in the prices of securities in a single asset class, the length of time the market value of the security has been less than its cost basis, the security’s relative performance versus its peers, sector or asset class, expected market volatility and the market and economy in general. When the Company determines that a decline in the fair value below its cost basis is other-than-temporary, the Company recognizes an impairment loss in the year in which the other-than-temporary decline occurred. There have been no other-than-temporary declines in value of marketable securities for the periods ended September 30, 2013, the year ended December 31, 2012, and for the period from July 13, 2005 (inception) to September 30, 2013, as it is more likely than not the Company will hold the securities until maturity or a recovery of the cost basis. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying amounts of accounts payable, accrued expenses, and accrued compensation are reasonable estimates of their fair value because of the short maturity of these items. | |||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment, which consists of furniture and fixtures, computers and office equipment and leasehold improvements, are stated at cost and depreciated over the estimated useful lives of the assets (three to five years) using the straight-line method. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. | |||||||||||||||||
Long-Lived Assets | ' | ||||||||||||||||
Long-Lived Assets | |||||||||||||||||
The Company regularly reviews the carrying value and estimated lives of all of its long-lived assets, including property and equipment to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. The determinants used for this evaluation include management’s estimate of the asset’s ability to generate positive income from operations and positive cash flow in future periods as well as the strategic significance of the assets to the Company’s business objective. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset’s fair value. The Company has not recognized any impairment losses through September 30, 2013. | |||||||||||||||||
Research and Development Expenses | ' | ||||||||||||||||
Research and Development Expenses | |||||||||||||||||
All research and development costs are charged to expense as incurred. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
The Company’s policy related to accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. As of December 31, 2012, there are no unrecognized tax benefits included in the consolidated balance sheet that would, if recognized, affect the Company’s effective tax rate. The Company has not recognized interest and penalties in the consolidated balance sheets or consolidated statements of operations and comprehensive loss. The Company is subject to U.S. and California taxation. As of December 31, 2012, the Company’s tax years beginning 2005 to date are subject to examination by taxing authorities. | |||||||||||||||||
Convertible Preferred Stock Warrant Liability | ' | ||||||||||||||||
Convertible Preferred Stock Warrant Liability | |||||||||||||||||
The Company has issued freestanding warrants exercisable to purchase shares of its Series A and Series B convertible preferred stock. These warrants were classified as a liability in the accompanying consolidated balance sheets prior to the completion of the IPO, as the terms for redemption of the underlying security were outside the Company’s control. The Series A convertible preferred stock warrants were recorded at fair value using the Black-Scholes option pricing model. The Series B convertible preferred stock warrants were recorded at fair value using a Monte Carlo model. The fair value of all warrants, except as noted below, was remeasured at each financial reporting date using the Black-Scholes option pricing model with any changes in fair value being recognized in other financing income (expense), a component of other income (expense), in the accompanying statements of operations. The Company ceased the remeasurement of the fair value upon exercise of the Series A warrants, and the Series B warrants becoming exercisable for shares of common stock, immediately prior to the completion of the Company’s IPO in July 2013. | |||||||||||||||||
Comprehensive Loss | ' | ||||||||||||||||
Comprehensive Loss | |||||||||||||||||
The Company is required to report all components of comprehensive loss, including net loss, in the consolidated financial statements in the period in which they are recognized. Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from nonowner sources, including unrealized gains and losses on investments. Comprehensive gains (losses) have been reflected in the condensed consolidated statements of operations and comprehensive loss for all periods presented. | |||||||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||||||
Net Income (Loss) Per Share | |||||||||||||||||
Basic net income (loss) per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net income (loss) by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities, which include convertible preferred stock, warrants and outstanding stock options under the stock option plan, have been excluded from the computation of diluted net income (loss) per share in the periods in which they would be anti-dilutive. | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) applicable to common stockholders | $ | (3,320,781 | ) | $ | (2,584,631 | ) | $ | — | $ | (6,314,152 | ) | ||||||
Denominator for basic and diluted net income (loss) per share: | |||||||||||||||||
Weighted average common shares outstanding for basic and diluted | 11,664,328 | 1,012,117 | 4,660,027 | 1,012,117 | |||||||||||||
Net income (loss) per share applicable to common stockholders: | |||||||||||||||||
Basic | $ | (0.28 | ) | $ | (2.55 | ) | $ | — | $ | (6.24 | ) | ||||||
Diluted | $ | (0.28 | ) | $ | (2.55 | ) | $ | — | $ | (6.24 | ) | ||||||
The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred stock | — | 9,565,021 | — | 9,565,021 | |||||||||||||
Warrants to purchase preferred stock-Series A | — | 280,675 | — | 280,675 | |||||||||||||
Common stock warrants | 149,704 | — | 149,704 | — | |||||||||||||
Common stock options | 730,590 | 549,411 | 730,590 | 549,411 | |||||||||||||
Common stock subject to repurchase | 284,810 | 176,781 | 284,810 | 176,781 | |||||||||||||
Total | 1,165,104 | 10,571,888 | 1,165,104 | 10,571,888 | |||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) applicable to common stockholders | $ | (3,320,781 | ) | $ | (2,584,631 | ) | $ | — | $ | (6,314,152 | ) | ||||||
Denominator for basic and diluted net income (loss) per share: | |||||||||||||||||
Weighted average common shares outstanding for basic and diluted | 11,664,328 | 1,012,117 | 4,660,027 | 1,012,117 | |||||||||||||
Net income (loss) per share applicable to common stockholders: | |||||||||||||||||
Basic | $ | (0.28 | ) | $ | (2.55 | ) | $ | — | $ | (6.24 | ) | ||||||
Diluted | $ | (0.28 | ) | $ | (2.55 | ) | $ | — | $ | (6.24 | ) | ||||||
Summary of Outstanding Potentially Dilutive Securities Excluded in Calculation of Diluted Net Loss Per Share | ' | ||||||||||||||||
The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred stock | — | 9,565,021 | — | 9,565,021 | |||||||||||||
Warrants to purchase preferred stock-Series A | — | 280,675 | — | 280,675 | |||||||||||||
Common stock warrants | 149,704 | — | 149,704 | — | |||||||||||||
Common stock options | 730,590 | 549,411 | 730,590 | 549,411 | |||||||||||||
Common stock subject to repurchase | 284,810 | 176,781 | 284,810 | 176,781 | |||||||||||||
Total | 1,165,104 | 10,571,888 | 1,165,104 | 10,571,888 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value | ' | ||||||||||||||||
Below is a summary of assets and liabilities measured at fair value as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
September 30, 2013 | Quoted | Significant | Significant | ||||||||||||||
Prices in | Other | Unobservable Inputs | |||||||||||||||
Active | Observable | (Level 3) | |||||||||||||||
Markets | Inputs | ||||||||||||||||
for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 34,521,369 | $ | 34,521,369 | $ | — | $ | — | |||||||||
Corporate debt securities | 22,698,842 | — | 22,698,842 | — | |||||||||||||
Debt securities in government sponsored entities | 1,502,715 | — | 1,502,715 | — | |||||||||||||
Municipal bonds | 255,000 | — | 255,000 | — | |||||||||||||
Total assets | $ | 58,977,926 | $ | 34,521,369 | $ | 24,456,557 | $ | — | |||||||||
Fair Value Measurements Using | |||||||||||||||||
December 31, 2012 | Quoted | Significant | Significant | ||||||||||||||
Prices in | Other | Unobservable Inputs | |||||||||||||||
Active | Observable | (Level 3) | |||||||||||||||
Markets | Inputs | ||||||||||||||||
for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 3,874,153 | $ | 3,874,153 | $ | — | $ | — | |||||||||
Municipal bonds | 260,000 | — | 260,000 | — | |||||||||||||
Corporate debt securities | 3,729,473 | — | 3,729,473 | — | |||||||||||||
Total assets | $ | 7,863,626 | $ | 3,874,153 | $ | 3,989,473 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Convertible preferred stock warrant liability | $ | 160,345 | $ | — | $ | — | $ | 160,345 | |||||||||
Total liabilities | $ | 160,345 | $ | — | $ | — | $ | 160,345 | |||||||||
Convertible promissory notes [Member] | ' | ||||||||||||||||
Fair Value Measurement of Using Significant Unobservable Level 3 Inputs | ' | ||||||||||||||||
The following table presents activity for the convertible promissory notes measured at fair value using significant unobservable Level 3 inputs during the years ended December 31, 2012 and the nine months ended September 30, 2013. | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurements at | |||||||||||||||||
Reporting Date | |||||||||||||||||
Using Significant | |||||||||||||||||
Unobservable | |||||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Balance at December 31, 2012 | $ | — | |||||||||||||||
Issuance of convertible promissory notes | 970,000 | ||||||||||||||||
Accretion of debt discount to interest expense | 31,439 | ||||||||||||||||
Conversion to equity at IPO | (1,001,439 | ) | |||||||||||||||
Balance at September 30, 2013 | $ | — | |||||||||||||||
Preferred stock warrant liability [Member] | ' | ||||||||||||||||
Fair Value Measurement of Using Significant Unobservable Level 3 Inputs | ' | ||||||||||||||||
The following table presents activity for the convertible preferred stock warrant liability measured at fair value using significant unobservable Level 3 inputs during the years ended December 31, 2012 and the nine months ended September 30, 2013. | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurements at | |||||||||||||||||
Reporting Date | |||||||||||||||||
Using Significant | |||||||||||||||||
Unobservable | |||||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Balance at December 31, 2011 | $ | 68,786 | |||||||||||||||
Changes in fair value reflected as other financing expense | 91,559 | ||||||||||||||||
Balance at December 31, 2012 | 160,345 | ||||||||||||||||
Issuance of preferred stock warrants | 625,679 | ||||||||||||||||
Changes in fair value reflected as other financing expense | 3,457,184 | ||||||||||||||||
Conversion to equity at IPO | (4,243,208 | ) | |||||||||||||||
Balance at September 30, 2013 | $ | — | |||||||||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Investments Schedule [Abstract] | ' | ||||||||||||||||||||
Summary of Marketable Securities | ' | ||||||||||||||||||||
The following tables summarize the Company’s marketable securities: | |||||||||||||||||||||
As of September 30, 2013 | Maturity | Amortized | Unrealized | Unrealized | Estimated fair | ||||||||||||||||
(in years) | Cost | Gains | Losses | value | |||||||||||||||||
Corporate debt securities | 1 or less | $ | 22,687,884 | $ | 10,958 | $ | — | $ | 22,698,842 | ||||||||||||
Municipal bonds | 1 or less | 255,000 | — | — | 255,000 | ||||||||||||||||
Debt securities in government sponsored entities | 1-2 years | 1,501,941 | 774 | — | 1,502,715 | ||||||||||||||||
Total | $ | 24,444,825 | $ | 11,732 | $ | — | $ | 24,456,557 | |||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Schedule of Property and Equipment | ' | ||||||||||||
Property and equipment consist of the following: | |||||||||||||
Useful Life | September 30, | December 31, | |||||||||||
In Years | 2013 | 2012 | |||||||||||
Furniture and fixtures | 4 | $ | 112,876 | $ | 112,876 | ||||||||
Computer equipment and office equipment | 4 | 95,199 | 95,199 | ||||||||||
Leasehold improvements | 4 | 3,645 | 3,645 | ||||||||||
211,720 | 211,720 | ||||||||||||
Less accumulated depreciation and amortization | (189,915 | ) | (182,116 | ) | |||||||||
$ | 21,805 | $ | 29,604 | ||||||||||
Stockholders_Equity_Deficit_Ta
Stockholders' Equity (Deficit) (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Summary of Common Stock Reserved for Future Issuance | ' | ||||||||
The following shares of common stock are reserved for future issuance at September 30, 2013: | |||||||||
Convertible common stock warrants | 149,704 | ||||||||
Stock options issued and outstanding | 730,590 | ||||||||
Authorized for future option grants | 827,278 | ||||||||
1,707,572 | |||||||||
Summary of Stock Option Activity | ' | ||||||||
The following table summarizes the Company’s stock option activity under all stock option plans for the nine months ended September 30, 2013: | |||||||||
Total Options | Weighted- | ||||||||
Average | |||||||||
Exercise | |||||||||
Price | |||||||||
Balance at December 31, 2012 | 690,223 | $ | 0.8 | ||||||
Granted | 226,935 | 9.43 | |||||||
Exercised | (174,447 | ) | 0.24 | ||||||
Cancelled | (12,121 | ) | 0.09 | ||||||
Balance at September 30, 2013 | 730,590 | $ | 3.63 | ||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation - Additional Information (Detail) (USD $) | 1 Months Ended | ||
Jul. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' | ' |
Accumulated deficit | ' | $69,304,869 | $58,807,509 |
Reverse stock split of outstanding common stock | '1-for-8.25 | ' | ' |
Reverse stock split of outstanding common stock ratio | 0.12 | ' | ' |
Common stock issued in IPO | 6,000,000 | ' | ' |
Offering price, per share | $11 | ' | ' |
Net proceeds from IPO | $59,000,000 | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of the assets | '3 years |
Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of the assets | '5 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 99 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Numerator: | ' | ' | ' | ' | ' |
Net income (loss) applicable to common stockholders | ($3,320,781) | ($2,584,631) | ' | ($6,314,152) | ($58,281,893) |
Denominator for basic and diluted net income (loss) per share: | ' | ' | ' | ' | ' |
Weighted average common shares outstanding for basic and diluted | 11,664,328 | 1,012,117 | 4,660,027 | 1,012,117 | ' |
Net income (loss) per share applicable to common stockholders: | ' | ' | ' | ' | ' |
Basic | ($0.28) | ($2.55) | ' | ($6.24) | ' |
Diluted | ($0.28) | ($2.55) | ' | ($6.24) | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Summary of Outstanding Potentially Dilutive Securities Excluded in Calculation of Diluted Net Loss Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Outstanding potentially dilutive securities | 1,165,104 | 10,571,888 | 1,165,104 | 10,571,888 |
Convertible preferred stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Outstanding potentially dilutive securities | ' | 9,565,021 | ' | 9,565,021 |
Series A Preferred Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Outstanding potentially dilutive securities | ' | 280,675 | ' | 280,675 |
Common stock warrants [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Outstanding potentially dilutive securities | 149,704 | ' | 149,704 | ' |
Common stock options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Outstanding potentially dilutive securities | 730,590 | 549,411 | 730,590 | 549,411 |
Common stock subject to repurchase [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Outstanding potentially dilutive securities | 284,810 | 176,781 | 284,810 | 176,781 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | $58,977,926 | $7,863,626 |
Liability fair value | ' | 160,345 |
Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 34,521,369 | 3,874,153 |
Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 22,698,842 | 3,729,473 |
Debt securities in government sponsored entities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 1,502,715 | ' |
Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 255,000 | 260,000 |
Convertible preferred stock warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liability fair value | ' | 160,345 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 34,521,369 | 3,874,153 |
Liability fair value | ' | ' |
Level 1 [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 34,521,369 | 3,874,153 |
Level 1 [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Level 1 [Member] | Debt securities in government sponsored entities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Level 1 [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Level 1 [Member] | Convertible preferred stock warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liability fair value | ' | ' |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 24,456,557 | 3,989,473 |
Liability fair value | ' | ' |
Level 2 [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Level 2 [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 22,698,842 | 3,729,473 |
Level 2 [Member] | Debt securities in government sponsored entities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 1,502,715 | ' |
Level 2 [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | 255,000 | 260,000 |
Level 2 [Member] | Convertible preferred stock warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liability fair value | ' | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Liability fair value | ' | 160,345 |
Level 3 [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Level 3 [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Level 3 [Member] | Debt securities in government sponsored entities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Level 3 [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets fair value | ' | ' |
Level 3 [Member] | Convertible preferred stock warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liability fair value | ' | $160,345 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Measurement of Using Significant Unobservable Level 3 Inputs (Detail) (Level 3 [Member], USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Convertible promissory notes [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | ' | ' |
Issuance of securities | 970,000 | ' |
Accretion of debt discount to interest expense | 31,439 | ' |
Conversion to equity at IPO | -1,001,439 | ' |
Ending balance | ' | ' |
Preferred stock warrant liability [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | 160,345 | 68,786 |
Issuance of securities | 625,679 | ' |
Changes in fair value reflected as other financing expense | 3,457,184 | 91,559 |
Conversion to equity at IPO | -4,243,208 | ' |
Ending balance | ' | $160,345 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional information (Detail) (Convertible promissory notes [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Convertible promissory notes [Member] | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' |
Discount rate on fair value | 15.00% |
Initial fair value of notes | $970,000 |
Investments_Summary_of_Marketa
Investments -Summary of Marketable Securities (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | $24,444,825 |
Unrealized Gains | 11,732 |
Unrealized Losses | ' |
Estimated fair value | 24,456,557 |
Corporate debt securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Maturity (in years) | '1 or less |
Amortized Cost | 22,687,884 |
Unrealized Gains | 10,958 |
Unrealized Losses | ' |
Estimated fair value | 22,698,842 |
Municipal bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Maturity (in years) | '1 or less |
Amortized Cost | 255,000 |
Unrealized Gains | ' |
Unrealized Losses | ' |
Estimated fair value | 255,000 |
Debt securities in government sponsored entities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Maturity (in years) | '1-2 years |
Amortized Cost | 1,501,941 |
Unrealized Gains | 774 |
Unrealized Losses | ' |
Estimated fair value | $1,502,715 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $211,720 | $211,720 |
Less accumulated depreciation and amortization | -189,915 | -182,116 |
Property and equipment, net | 21,805 | 29,604 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Useful Life | '4 years | ' |
Property and equipment, gross | 112,876 | 112,876 |
Computers equipment and office equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Useful Life | '4 years | ' |
Property and equipment, gross | 95,199 | 95,199 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Useful Life | '4 years | ' |
Property and equipment, gross | $3,645 | $3,645 |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (USD $) | 9 Months Ended | 99 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Jul. 31, 2006 | 31-May-13 | Sep. 30, 2013 | Jul. 31, 2013 | 31-May-13 | Jul. 31, 2013 | 31-May-13 | Jul. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2010 | |
Oxford Finance LLC and Silicon Valley Bank [Member] | 2013 Warrants [Member] | Convertible promissory notes [Member] | Convertible promissory notes [Member] | Convertible promissory notes [Member] | Convertible promissory notes [Member] | Convertible promissory notes [Member] | Term loan one [Member] | Series B Preferred Stock [Member] | Stock options issued and outstanding [Member] | Stock options issued and outstanding [Member] | Series B convertible preferred stock [Member] | Pfizer Inc. [Member] | Pfizer Inc. [Member] | ||||
2013 Warrants [Member] | 2013 Warrants [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Convertible promissory notes [Member] | 2013 Warrants [Member] | Convertible promissory notes [Member] | Term loan one [Member] | Promissory note [Member] | Promissory note [Member] | |||||||||
2013 Warrants [Member] | 2013 Warrants [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable | $1,000,000 | $1,000,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 |
Debt instrument, Interest rate | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' |
Debt instrument, Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29-Jul-20 | ' |
Convertible promissory note | ' | ' | ' | ' | ' | 1,000,000 | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity and repayment terms | ' | ' | ' | ' | ' | 'The 2013 Notes accrued interest at a rate of 6% per annum and were due and payable on the earlier of (1) any date after November 30, 2013 upon which holders of 75% of the outstanding principal amount of all such 2013 Notes demand repayment, or (2) the occurrence of a change of control of the Company, subject in each case to their earlier conversion in the event the Company completed a qualified initial public offering or private placement of debt and/or equity. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate on fair value | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial fair value of notes | ' | ' | ' | ' | ' | ' | 970,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant exercisable to purchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,124,026 | 13,468 | 136,236 | ' | ' | ' |
Exercise price of warrant per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | 7.43 | 7.43 | 0.9 | ' | ' |
Warrant expiration date | ' | ' | ' | ' | ' | ' | ' | ' | 30-May-18 | ' | ' | ' | ' | ' | 3-Jul-23 | ' | ' |
Initial value of warrants | ' | ' | ' | ' | ' | ' | ' | ' | 506,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Deemed distribution from promissory note and warrant issuance | 474,561 | 474,561 | ' | ' | ' | ' | ' | ' | ' | 474,561 | ' | ' | ' | ' | ' | ' | ' |
Conversion of notes plus accrued interest into shares of common stock | ' | ' | ' | ' | 91,948 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Warrant issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,112 | ' | ' |
Credit facility termination date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25-Sep-13 | ' | ' |
Carrying value of warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $119,679 | ' | ' |
Stockholders_Equity_Deficit_Ad
Stockholders' Equity (Deficit) - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 99 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||
Jul. 31, 2013 | 30-May-13 | 31-May-07 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2006 | Dec. 31, 2005 | Sep. 30, 2013 | 31-May-07 | Jul. 31, 2006 | 31-May-13 | 31-May-07 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2006 | Dec. 31, 2012 | 31-May-07 | Dec. 31, 2006 | Feb. 28, 2011 | Mar. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-13 | Jul. 31, 2013 | 30-May-13 | Jul. 31, 2013 | 31-May-13 | |
Roche License Agreement [Member] | Convertible promissory notes [Member] | Convertible promissory notes [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Convertible preferred stock [Member] | Convertible preferred stock [Member] | Stock options issued and outstanding [Member] | Stock options issued and outstanding [Member] | |||||||||||
Roche License Agreement [Member] | Roche [Member] | Convertible promissory notes [Member] | 2013 Warrants [Member] | Convertible promissory notes [Member] | |||||||||||||||||||||||||
2013 Warrants [Member] | 2013 Warrants [Member] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued to founders | ' | ' | ' | ' | ' | ' | ' | 181,818 | 727,273 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, value of shares issued to founders | ' | ' | ' | ' | ' | ' | ' | $45,000 | $6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued to founding officers and investors | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,160,885 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuing price per share | $11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from the issuance of common stock | 59,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split outstanding common stock | '1-for-8.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split of outstanding common stock ratio | 0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate of convertible promissory notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion premium on principal and accrued interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, value of shares issued to founding officers and investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest and conversion premium amount | ' | ' | ' | ' | ' | ' | ' | 261,439 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of preferred stock, value | ' | ' | ' | ' | ' | ' | ' | 659,224 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,208,532 | 2,000,000 | ' | ' | ' | ' | 31,699,840 | ' | ' | ' | ' | ' |
Preferred stock, additional shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,333,334 | 0 | 0 | ' | 42,494,218 | 2,666,666 | 333,333 | 22,222,223 | 7,500,000 | 0 | 36,417,224 | ' | ' | ' | ' | ' |
Gross proceeds from issuance of additional shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,731,226 | ' | ' | ' | 22,000,000 | ' | ' | ' | ' | ' | ' | 20,000,000 | 8,333,334 | ' | ' | ' | ' | ' | ' | ' |
License payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncumulative dividends to shareholders, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.06 | ' | ' | ' | ' | ' | ' | $0.07 | ' | ' | ' | ' | ' | ' |
Change in fair value of Tranche Right | ' | ' | 530,977 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted carrying value of Tranche Right | ' | ' | 1,827,784 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock issued upon conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,861,667 | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preferred stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | 42,494,218 | ' | ' | ' | ' | 0 | 36,417,224 | ' | 63,334,653 | 15,576,789 | ' | ' |
Common stock due to conversion, shares | ' | 1,557,678 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares on a post-reverse stock split basis | ' | 188,808 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to additional paid in capital, carrying amount | ' | 11,491,043 | ' | ' | ' | 11,491,043 | ' | ' | ' | 11,491,043 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of shares | 7,676,914 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,333,320 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other financing income (expense) | ' | ' | ' | 139,328 | 56,700 | 3,576,750 | 91,793 | ' | ' | 4,267,839 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preferred stock warrants | ' | ' | ' | 280,675 | ' | 280,675 | ' | ' | ' | 280,675 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant exercisable to purchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,124,026 | ' | ' | 13,468 | 136,236 |
Exercise price of warrant per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | ' | ' | 7.43 | 7.43 |
Share-based compensation expense | ' | ' | ' | $75,463 | $28,677 | $101,379 | $105,751 | ' | ' | $498,761 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Deficit_Su
Stockholders' Equity (Deficit) - Summary of Common Stock Reserved for Future Issuance (Detail) | Sep. 30, 2013 |
Common Stock Reserved For Future Issuance [Abstract] | ' |
Convertible common stock warrants | 149,704 |
Stock options issued and outstanding | 730,590 |
Authorized for future option grants | 827,278 |
Shares of common stock are reserved for future issuance | 1,707,572 |
Stockholders_Equity_Deficit_Su1
Stockholders' Equity (Deficit) - Summary of Stock Option Activity (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Total Options, Beginning balance | 690,223 |
Total Options, Granted | 226,935 |
Total Options, Exercised | -174,447 |
Total Options, Cancelled | -12,121 |
Total Options, Ending balance | 730,590 |
Weighted-Average Exercise Price, Beginning balance | $0.80 |
Weighted-Average Exercise Price, Granted | $9.43 |
Weighted-Average Exercise Price, Exercised | $0.24 |
Weighted-Average Exercise Price, Cancelled | $0.09 |
Weighted-Average Exercise Price, Ending balance | $3.63 |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2010 | |
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' |
Rent expense | $45,003 | $38,514 | $122,032 | $114,202 | ' |
Future minimum payments for noncancelable operating lease | 132,390 | ' | 132,390 | ' | ' |
Noncancelable operating lease term | ' | ' | 30-Jun-14 | ' | ' |
Stock purchase agreement, amount payable upon the achievement of specified regulatory milestone | ' | ' | ' | ' | $18,000,000 |
Spinoff_of_Idun_Pharmaceutical1
Spin-off of Idun Pharmaceuticals, Inc. - Additional Information (Detail) (Idun Pharmaceuticals, Inc. [Member], USD $) | 1 Months Ended |
Jan. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ' |
Change in equity as a result of spin-off | $500,000 |
Spin-off [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Payments for restructuring | $500,000 |