Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 13, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33958 | |
Entity Registrant Name | SELLAS Life Sciences Group, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8099512 | |
Entity Address, Address Line One | 7 Times Square, Suite 2503, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | (917) | |
Local Phone Number | 438-4353 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | SLS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,461,978 | |
Entity Central Index Key | 0001390478 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,340 | $ 7,277 |
Restricted cash and cash equivalents | 100 | 100 |
Stock subscription receivable | 0 | 308 |
Prepaid expenses and other current assets | 1,789 | 557 |
Total current assets | 5,229 | 8,242 |
Operating lease right-of-use asset | 984 | 217 |
In-process research and development | 5,700 | 5,700 |
Goodwill | 1,914 | 1,914 |
Deposits and other assets | 687 | 536 |
Total assets | 14,514 | 16,609 |
Current liabilities: | ||
Accounts payable | 2,426 | 3,902 |
Accrued expenses and other current liabilities | 1,809 | 1,171 |
Operating lease liability | 90 | 217 |
Total current liabilities | 4,325 | 5,290 |
Operating lease liability, non-current | 918 | 0 |
Deferred tax liability | 262 | 262 |
Warrant liability | 33 | 52 |
Contingent consideration | 5,193 | 4,912 |
Total liabilities | 10,731 | 10,516 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; Series A convertible preferred stock, 17,500 shares designated; no shares issued and outstanding at June 30, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.0001 par value; 350,000,000 shares authorized, 6,717,900 and 5,080,100 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively. | 7 | 5 |
Additional paid-in capital | 113,491 | 107,235 |
Accumulated deficit | (109,715) | (101,147) |
Total stockholders’ equity | 3,783 | 6,093 |
Total liabilities and stockholders’ equity | $ 14,514 | $ 16,609 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 6,717,900 | 5,080,100 |
Common stock, shares outstanding (in shares) | 6,717,900 | 5,080,100 |
Series A Preferred Stock | ||
Preferred stock, shares authorized (in shares) | 17,500 | 17,500 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses: | ||||
Research and development | $ 2,280 | $ 1,381 | $ 4,144 | $ 3,240 |
General and administrative | 1,987 | 2,638 | 4,187 | 5,138 |
Total operating expenses and operating loss | (4,267) | (4,019) | (8,331) | (8,378) |
Non-operating (expense) income, net: | ||||
Change in fair value of warrant liability | (16) | 962 | 19 | 1,157 |
Change in fair value of contingent consideration | (143) | (95) | (281) | (482) |
Interest income, net | 1 | 18 | 25 | 32 |
Total non-operating (expense) income, net | (158) | 885 | (237) | 707 |
Net loss | (4,425) | (3,134) | (8,568) | (7,671) |
Deemed dividend arising from warrant modifications | 0 | (952) | (78) | (1,391) |
Net loss attributable to common stockholders | $ (4,425) | $ (4,086) | $ (8,646) | $ (9,062) |
Per share information: | ||||
Net loss per common share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.66) | $ (6.33) | $ (1.32) | $ (16.56) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 6,717,900 | 645,965 | 6,546,440 | 547,212 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 0 | 440,529 | |||
Beginning balance at Dec. 31, 2018 | $ 5,245 | $ 0 | $ 1 | $ 87,099 | $ (81,855) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock and common stock warrants, net of issuance costs (in shares) | 527,344 | ||||
Issuance of common stock and common stock warrants, net of issuance costs | 13,416 | 13,416 | |||
Issuance of common stock for exercise of warrants, net of offering costs (in shares) | 63,000 | ||||
Issuance of common stock for exercise of warrants, net of offering costs | 3,275 | 3,275 | |||
Issuance of common stock upon exercise of pre-funded warrants (in shares) | 971,830 | ||||
Issuance of common stock upon exercise of pre-funded warrants | 5 | $ 1 | 4 | ||
Stock-based compensation | 311 | 311 | |||
Impact of anti-dilution protection on liability-classified warrants | (243) | (243) | |||
Net loss | (7,671) | (7,671) | |||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 2,002,703 | |||
Ending balance at Jun. 30, 2019 | 14,338 | $ 0 | $ 2 | 103,862 | (89,526) |
Beginning balance (in shares) at Mar. 31, 2019 | 0 | 483,529 | |||
Beginning balance at Mar. 31, 2019 | 2,950 | $ 0 | $ 1 | 89,341 | (86,392) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock and common stock warrants, net of issuance costs (in shares) | 527,344 | ||||
Issuance of common stock and common stock warrants, net of issuance costs | 13,416 | 13,416 | |||
Issuance of common stock for exercise of warrants, net of offering costs (in shares) | 20,000 | ||||
Issuance of common stock for exercise of warrants, net of offering costs | 1,045 | 1,045 | |||
Issuance of common stock upon exercise of pre-funded warrants (in shares) | 971,830 | ||||
Issuance of common stock upon exercise of pre-funded warrants | 5 | $ 1 | 4 | ||
Stock-based compensation | 126 | 126 | |||
Impact of anti-dilution protection on liability-classified warrants | (70) | (70) | |||
Net loss | (3,134) | (3,134) | |||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 2,002,703 | |||
Ending balance at Jun. 30, 2019 | 14,338 | $ 0 | $ 2 | 103,862 | (89,526) |
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 5,080,100 | |||
Beginning balance at Dec. 31, 2019 | 6,093 | $ 0 | $ 5 | 107,235 | (101,147) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock and common stock warrants, net of issuance costs (in shares) | 1,189,000 | ||||
Issuance of common stock and common stock warrants, net of issuance costs | 5,963 | $ 1 | 5,962 | ||
Issuance of common stock upon exercise of pre-funded warrants (in shares) | 448,800 | ||||
Issuance of common stock upon exercise of pre-funded warrants | 4 | $ 1 | 3 | ||
Stock-based compensation | 291 | 291 | |||
Net loss | (8,568) | (8,568) | |||
Ending balance (in shares) at Jun. 30, 2020 | 0 | 6,717,900 | |||
Ending balance at Jun. 30, 2020 | 3,783 | $ 0 | $ 7 | 113,491 | (109,715) |
Beginning balance (in shares) at Mar. 31, 2020 | 0 | 6,717,900 | |||
Beginning balance at Mar. 31, 2020 | 8,062 | $ 0 | $ 7 | 113,345 | (105,290) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 146 | 146 | |||
Net loss | (4,425) | (4,425) | |||
Ending balance (in shares) at Jun. 30, 2020 | 0 | 6,717,900 | |||
Ending balance at Jun. 30, 2020 | $ 3,783 | $ 0 | $ 7 | $ 113,491 | $ (109,715) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (8,568) | $ (7,671) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Non-cash stock-based compensation | 291 | 311 |
Change in operating lease right of use assets | 24 | 0 |
Change in fair value of common stock warrants | (19) | (1,153) |
Change in fair value of contingent consideration | 281 | 482 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (1,383) | (315) |
Accounts payable | (1,476) | (263) |
Accrued expenses and other current liabilities | 638 | (1,038) |
Net cash used in operating activities | (10,212) | (9,647) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of offering costs | 5,963 | 13,781 |
Collection of stock subscription receivable | 308 | 0 |
Net proceeds from exercise of warrants | 4 | 3,280 |
Net cash provided by financing activities | 6,275 | 17,061 |
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | (3,937) | 7,414 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at the beginning of period | 7,377 | 5,451 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of period | 3,440 | 12,865 |
Supplemental disclosure of cash flow information: | ||
Cash received during the periods for interest | 25 | 32 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Operating right of use asset and current and non-current lease liability | 976 | 550 |
Impact of anti-dilution protection on liability-classified warrants | 0 | 243 |
Offering expenses in accounts payable and accrued expenses and other current liabilities | $ 0 | $ 365 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Overview SELLAS Life Sciences Group, Inc. (the "Company" or "SELLAS") is a late-stage clinical biopharmaceutical company focused on novel cancer immunotherapeutics for a broad range of cancer indications. SELLAS’ lead product candidate, galinpepimut-S ("GPS"), is licensed from Memorial Sloan Kettering Cancer Center and targets the Wilms Tumor 1 ("WT1") protein, which is present in an array of tumor types. GPS has potential as a monotherapy or in combination to address a broad spectrum of hematologic malignancies and solid tumor indications. In January 2020, the Company commenced a Phase 3 trial for GPS monotherapy in patients with acute myeloid leukemia, or AML, in the maintenance setting after achievement of their second complete remission. SELLAS’ second product candidate, nelipepimut-S ("NPS"), is a HER2-directed cancer immunotherapy with potential for the treatment of patients with early stage breast cancer with low to intermediate HER2 expression, otherwise known as HER2 1+ or 2+, which includes triple negative breast cancer patients, following standard of care. As used in this Quarterly Report on Form 10-Q, the words the "Company," and "SELLAS" refer to SELLAS Life Sciences Group, Inc. and its consolidated subsidiaries following the completion of the business combination with Galena Biopharma, Inc., a Delaware corporation ("Galena"), and SELLAS Life Sciences Group, Ltd., a privately held Bermuda exempted company ("Private SELLAS") in December 2017. This business combination is referred to as the Merger. Upon completion of the Merger, the Company's name changed from "Galena Biopharma, Inc." to "SELLAS Life Sciences Group, Inc." and the Company's financial statements became those of Private SELLAS. |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity | Liquidity The Company has not generated any revenues, including from product sales, and has funded operations primarily from the proceeds of sales of its equity interests and convertible notes. It is likely that additional financing, beyond the financings described below, will be required by the Company to continue to fund its research and development activities. No assurance can be given that any such financing will be available when needed or that the Company’s research and development efforts will be successful. The Company cannot be certain at this time of the impact of the COVID-19 pandemic on its ability to raise additional capital as needed. On July 31, 2020, the Company entered into a Securities Purchase Agreement (the “PIPE Purchase Agreement”) with certain investors (the “PIPE Investors”), pursuant to which the Company agreed to issue and sell, in a private placement directly to the PIPE Investors (the "July 2020 PIPE Offering"), 2,744,078 shares of its common stock and accompanying warrants to purchase an aggregate of up to 2,744,078 shares of common stock at a combined purchase price of $3.335 per share and accompanying warrant. The warrants are immediately exercisable at an exercise price of $3.30 per share and will expire five years from the date of issuance. The gross proceeds to the Company from the July 2020 PIPE Offering were approximately $9.2 million before deducting the placement agent fee and related offering expenses. The July 2020 PIPE Offering closed on August 4, 2020. On January 9, 2020, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain investors (the “Investors”), pursuant to which the Company agreed to issue and sell, in a registered direct offering by the Company directly to the Investors (the “January 2020 Registered Offering”), (i) an aggregate of 1,189,000 shares of common stock at an offering price of $3.9825 per share and (ii) an aggregate of 448,800 pre-funded warrants exercisable for shares of common stock (the “Pre-Funded Warrants”) at an offering price of $3.9725 per Pre-Funded Warrant, for gross proceeds of approximately $6.5 million before deducting the placement agent fee and related offering expenses. In a concurrent private placement, the Company issued to the Investors who participated in the January 2020 Registered Offering warrants exercisable for an aggregate of 818,900 shares of common stock at an exercise price of $3.93 per share. Each warrant is immediately exercisable and will expire five and one-half years from the issuance date. The net proceeds to the Company from the January 2020 Registered Offering, after deducting underwriting discounts and commissions and other estimated offering expenses, and excluding the exercise of any warrants, were approximately $6.0 million. The Company regularly explores alternative means of financing its operations and seeks funding through various sources, including public and private securities offerings, collaborative arrangements with third parties and other strategic alliances and business transactions. The Company currently does not have any commitments to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable terms, if at all. If the Company cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its research and development programs or enter into collaborations with third parties to commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently, consider various other strategic alternatives, including a merger or sale of the Company, or cease operations. If the Company engages in collaborations, it may receive lower consideration upon commercialization of such products than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the product development process. The Company has evaluated the guidance of Accounting Standards Codification ("ASC") 205-40, Presentation of Financial Statements - Going Concern , in order to determine whether there is substantial doubt about its ability to continue as a going concern for one year from the date its financial statements are available to be issued. The Company has prepared its consolidated financial statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses and negative cash flows from operations since inception and it expects to generate losses from operations for the foreseeable future primarily due to research and development costs for its product candidates, which raises substantial doubt about the Company’s ability to continue as a going concern. Various internal and external factors will affect whether and when the Company’s product candidates become approved drugs and how significant their market share will be, some of which are outside of the Company’s control. The length of time and cost of developing and commercializing these product candidates and/or the failure of any of them at any stage of the drug approval process will materially affect the Company’s financial condition and future operations. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. As of June 30, 2020, the Company had cash and cash equivalents of approximately $3.3 million, and restricted cash and cash equivalents of $0.1 million. The Company has incurred recurring losses and negative cash flows from operations and has an accumulated deficit of $109.7 million as of June 30, 2020. In addition, the Company had current liabilities of $4.3 million as of June 30, 2020. The Company expects its cash and cash equivalents as of June 30, 2020, together with the proceeds from the July 2020 PIPE Offering, will enable the Company to fund its operating expenses and capital expenditure requirements through the second quarter of 2021. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The Summary of Significant Accounting Policies included in the Company's 2019 Annual Report have not materially changed, except as set forth below. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. Unless the context otherwise indicates, reference in these notes to the "Company" refer to SELLAS Life Sciences Group, Inc., and its wholly owned subsidiaries, Private SELLAS, SLSG Limited, LLC, Sellas Life Sciences Limited, and Apthera, Inc. The functional currency of the Company's non-U.S. operations is the U.S. dollar. Unaudited Interim Results These consolidated financial statements and accompanying notes should be read in conjunction with the Company's annual consolidated financial statements and the notes thereto included in the 2019 Annual Report. The accompanying consolidated financial statements at June 30, 2020 and for the three and six months ended June 30, 2020 and 2019, are unaudited, but include all adjustments, consisting of normal recurring entries, that management believes to be necessary for a fair presentation of the periods presented. Interim results are not necessarily indicative of results for a full year. Balance sheet amounts as of December 31, 2019 have been derived from the audited financial statements as of that date. Reverse Stock Split On November 6, 2019, the Company filed a certificate of amendment to its amended and restated Certificate of Incorporation to effect a 1 - for - 50 reverse stock split of the Company's outstanding shares of common stock, which became effective on November 7, 2019. The shares of common stock underlying the Company's outstanding options and warrants were also proportionately adjusted for the reverse stock split. In addition, the number of shares of common stock available for issuance under the Company’s equity incentive plans and employee stock purchase plan were proportionately adjusted for the reverse stock split. Further, the per share exercise prices for options granted under such plans were proportionately adjusted for the reverse stock split. The reverse stock split reduced the number of shares of the Company’s common stock that were outstanding at November 8, 2019 from 227,800,147 to 4,549,208, after the cancellation of fractional shares. No fractional shares were issued in connection with the reverse stock split. Stockholders who otherwise held fractional shares of the Company’s common stock as a result of the reverse stock split received a cash payment in lieu of such fractional shares. These consolidated financial statements give retroactive effect to such reverse stock split and all share and per share amounts have been adjusted accordingly. Restricted Stock Units with Performance and Service Conditions During the six months ended June 30, 2020, the Board of Directors granted restricted stock units ("RSUs") to certain employees that vest based on performance and service conditions. The fair values of the RSUs are measured on the date of grant and are based on the Company's closing stock price on such date. Compensation expense is recognized for the number of RSUs expected to be earned, provided the requisite service period has been rendered, after assessing the probability that certain performance criteria will be met. Cumulative adjustments are recorded each quarter to reflect the estimated outcome of the performance-related conditions until the date results are determined and settled. If performance criteria are not met or are not expected to be met, any compensation expense previously recognized to date associated with the RSUs will be reversed. Net Loss Per Share Net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities, such as warrants, stock options and unvested restricted stock that would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive (in thousands): Six Months Ended June 30, 2020 2019 Common stock warrants 1,120 2,855 Stock options 208 27 RSUs 170 — 1,498 2,882 Recent Accounting Pronouncements Adopted In August 2018, FASB issued No. ASU 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU No. 2018-13") . ASU No. 2018-13 modifies, adds and removes certain specific disclosure requirements on fair value measurements in Topic 820. The amendments in ASU No. 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. This standard became effective for the Company on January 1, 2020 and did not have a material impact on the Company's disclosures. For the new disclosure regarding our Level 3 instruments, please read Note 4 to these consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Accounting ("ASU No. 2018-07") , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. ASU No. 2018-07 supersedes ASC 505-50 and expands the scope of ASC 718, Compensation - Stock Compensation (Topic 718) ("ASC 718") , to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. As a result, most of the guidance in ASC 718 associated with employee share-based payments, including most of its requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. ASU No. 2018-07 generally requires an entity to use a modified retrospective transition approach, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year, for all (1) liability-classified nonemployee awards that have not been settled as of the adoption date and (2) equity-classified nonemployee awards for which a measurement date has not been established. This standard became effective for the Company on January 1, 2020 and did not have a material impact on the Company's consolidated financial statements and related disclosure. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets (in thousands): Description June 30, 2020 Quoted Prices In Significant Other Unobservable Assets: Cash equivalents $ 3,000 $ 3,000 $ — $ — Total assets measured and recorded at fair value $ 3,000 $ 3,000 $ — $ — Liabilities: Warrant liability $ 33 $ — $ — $ 33 Contingent consideration 5,193 — — 5,193 Total liabilities measured and recorded at fair value $ 5,226 $ — $ — $ 5,226 Description December 31, 2019 Quoted Prices In Significant Other Unobservable Assets: Cash equivalents $ 7,027 $ 7,027 $ — $ — Total assets measured and recorded at fair value $ 7,027 $ 7,027 $ — $ — Liabilities: Warrant liability $ 52 $ — $ — $ 52 Contingent consideration 4,912 — — 4,912 Total liabilities measured and recorded at fair value $ 4,964 $ — $ — $ 4,964 The Company did not transfer any financial instruments into or out of Level 3 classification during the six months ended June 30, 2020 or the year ended December 31, 2019. See Note 8, Warrants to Acquire Shares of Common Stock, for a reconciliation of the changes in the fair value of the warrant liability for the six months ended June 30, 2020. A reconciliation of the change in the fair value of the contingent consideration liability for the six months ended June 30, 2020 is as follows (in thousands): Fair Value Contingent consideration, December 31, 2019 $ 4,912 Change in the estimated fair value of the contingent consideration 281 Contingent consideration, June 30, 2020 $ 5,193 The fair value of the contingent consideration is measured at the end of each reporting period using Level 3 inputs in a probability-weighted, discounted cash-outflow model. The contingent consideration relates to Galena's acquisition of Apthera, Inc. in 2011 and the future contingent payments of up to $32.0 million based on the achievement of certain development and commercial milestones relating to the Company’s nelipepimut-S ("NPS") product candidate, of which $2.0 million has been paid to date. The remaining contingent consideration of up to $30.0 million is payable at the election of the Company in either cash or shares of common stock, provided that the Company may not issue any shares in satisfaction of any contingent consideration unless it has first obtained approval from its stockholders in accordance with Rule 5635(a) of the Nasdaq Marketplace Rules. The significant unobservable assumptions include the probability of achieving each milestone, the date the Company expects to reach the milestone, and a determination of present value factors used to discount future expected cash outflows. Changes in fair value reflect new information about the probability and anticipated timing of meeting the conditions of the milestone payments. In the absence of new information, changes in fair value will only reflect the interest component of contingent consideration related to the passage of time. As of June 30, 2020, estimated future contingent milestone payments related to the Company's business range from zero, if no milestone events are achieved, to a maximum of $30.0 million if all development and commercial milestones are reached. As of June 30, 2020, resulting probability-weighted cash flows were discounted using a weighted average cost of capital of 11.8% for development milestones and cost of debt of 3.6% for the commercial milestones. The Company estimates the timing of achievement of these development milestones to range from five |
Balance Sheet Accounts
Balance Sheet Accounts | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Accounts | Balance Sheet Accounts Prepaid expenses and other current assets consist of the following (in thousands): June 30, 2020 December 31, 2019 Insurance $ 1,015 $ 200 Clinical development 535 224 Professional services 104 49 Other 135 84 Prepaid expenses and other current assets $ 1,789 $ 557 Accrued expenses and other current liabilities consist of the following (in thousands): June 30, 2020 December 31, 2019 Clinical trial costs $ 1,043 $ 371 Compensation and related benefits 487 606 Professional fees 279 194 Accrued expenses and other current liabilities $ 1,809 $ 1,171 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Office Space Rental During the second quarter of 2020, the Company entered into a non-cancelable operating lease for certain executive, administrative, and general business office space for its headquarters in New York, New York, which began on June 5, 2020 and has a term through December 31, 2024. The Company recognized a current operating lease liability of $0.1 million and a non-current operating lease liability of $0.9 million with a corresponding right of use asset ("ROU") of $1.0 million, which is based on the present value of the minimum rental payments of the lease. The discount rate of the Company's operating lease under ASC 842 is the Company's estimated incremental borrowing rate of 13%. As of June 30, 2020, the lease has a remaining term of 4.5 years. The Company had a non-cancelable operating lease for office space in New York, New York, which began on August 1, 2018 with a term through July 31, 2020. The Company adopted ASC 842 in the first quarter of 2019 and as a result of the adoption, the Company recognized a current operating lease liability of $0.4 million and a non-current operating lease liability of $0.2 million with a corresponding ROU of $0.6 million, which is based on the present value of the minimum lease payments of the lease. The discount rate used to account for the Company's operating lease under ASC 842 is the Company’s estimated incremental borrowing rate of 13%. As of June 30, 2020, the lease had a remaining term of less than 1.0 year and the lease expired on July 31, 2020. Rent expense related to the Company's operating leases was approximately $0.1 million for each of the three months ended June 30, 2020 and 2019. Rent expense related to the Company's operating leases was approximately $0.2 million for each of the six months ended June 30, 2020. Future minimum lease payments under the Company's non-cancelable operating leases are as follows as of June 30, 2020 (in thousands): Future minimum lease payments: 2020 (remaining) $ 107 2021 302 2022 311 2023 321 2024 330 Total future minimum lease payments 1,371 Less: imputed interest (363) Current and non-current operating lease liability $ 1,008 Operating lease amortization of the ROU asset was $0.1 million for each of the three months ended June 30, 2020 and 2019 and $0.2 million for each of the six months ended June 30, 2020 and 2019. Legal Proceedings From time to time, the Company is subject to various pending or threatened legal actions and proceedings, including those that arise in the ordinary course of its business, which may include employment matters, breach of contract disputes and stockholder litigation. Such actions and proceedings are subject to many uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, when the Company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, as of the date hereof, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Company’s consolidated results of operations, financial position or cash flows. The Company’s predecessor company, Galena, was involved in multiple legal proceedings and administrative actions, including stockholder class actions, both state and federal, and to which the Company is now subject, as follows: On February 13, 2017, certain putative shareholder securities class action complaints were filed in federal court alleging, among other things, that Galena and certain of Galena's former officers and directors failed to disclose that Galena’s promotional practices for Abstral ® (fentanyl sublingual tablets) were allegedly improper and that Galena may be subject to civil and criminal liability, and that these alleged failures rendered Galena’s statements about its business misleading. The actions were consolidated, lead plaintiffs were named by the U.S. District Court for the District of New Jersey and a consolidated complaint was filed. The Company filed a motion to dismiss the consolidated complaint. On August 21, 2018, the Company's motion to dismiss the consolidated complaint was granted without prejudice to file an amended complaint. On September 20, 2018, the plaintiffs filed an amended complaint. On October 22, 2018, the Company filed a motion to dismiss the amended complaint. On November 13, 2019, the U.S. District Court for the District of New Jersey granted the Company's motion to dismiss. On December 20, 2019, the lead plaintiffs filed a Second Amended Consolidated Class Action Complaint. On January 29, 2020, the Company filed a motion to dismiss the amended complaint. In March 2017, a derivative complaint was filed in the U.S. District Court for the District of New Jersey against the Company’s former directors and Galena, as a nominal defendant. In July 2017, a derivative complaint was filed in California state court against the Company’s former directors and Galena, as a nominal defendant. In January 2018, a derivative complaint was filed in the U.S. District Court for the District of New Jersey against the Company’s former directors, officers and employees, and the Company as a nominal defendant. These complaints purport to assert derivative claims for breach of fiduciary duty on the Company’s behalf against the Company’s former directors and, in certain of the complaints, certain of the Company’s former officers and former employees, based on substantially similar facts as alleged in the putative shareholder securities class action complaints mentioned above. The derivative lawsuit filed in California state court is currently stayed pending resolution of a motion to dismiss in the referenced securities class action. On July 13, 2020 and July 16, 2020, respectively, the Company filed motions to dismiss the two complaints filed in the U.S. District Court for the District of New Jersey. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock The Company has authorized up to 5,000,000 shares of preferred stock, $0.0001 par value per share, for issuance. Common Stock The Company has authorized up to 350,000,000 shares of common stock, $0.0001 par value per share, for issuance. On October 29, 2019, the Company entered into an Equity Distribution Agreement (the "Distribution Agreement") with Maxim Group LLC (the "Agent"), pursuant to which the Company was permitted to offer and sell shares of common stock through the Agent having an aggregate offering price up to $5.0 million in gross proceeds. In connection with such sales, the Agent collected fees equal to 3% of the gross sales price of all shares of common stock sold. Sales of the shares under the Distribution Agreement were made in transactions deemed to be "at the market offering" as defined in Rule 415 under the Securities Act of 1933. Shares sold under the Distribution Agreement were offered and sold pursuant to the Company's effective registration statement on Form S-3. During the year ended December 31, 2019, the Company sold 524,097 shares of common stock pursuant to the Distribution Agreement for net proceeds of $2.7 million. The Distribution Agreement was terminated on January 9, 2020. There were no shares of common stock sold pursuant to the Distribution Agreement in 2020. On January 9, 2020, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain investors (the “Investors”), pursuant to which the Company agreed to issue and sell, in a registered direct offering by the Company directly to the Investors (the “January 2020 Registered Offering”), (i) an aggregate of 1,189,000 shares of common stock, par value $0.0001 per share, of the Company, at an offering price of $3.9825 per share and (ii) an aggregate of 448,800 pre-funded warrants exercisable for shares of common stock at an offering price of $3.9725 per pre-funded warrant, for gross proceeds of approximately $6.5 million before deducting the placement agent fee and related offering expenses. In a concurrent private placement, the Company issued to the Investors who participated in the January 2020 Registered Offering warrants exercisable for an aggregate of 818,900 shares of common stock at an exercise price of $3.93 per share. Each warrant is immediately exercisable and will expire five and one-half years from the issuance date. The net proceeds to the Company from the January 2020 Registered Offering, after deducting the placement agent fee and other estimated offering expenses, and excluding the exercise of any warrants, was approximately $6.0 million. As of June 30, 2020, the Company has shares of common stock reserved for future issuance as follows (in thousands): Warrants outstanding 1,120 Stock options outstanding 208 RSUs outstanding 170 Shares reserved for future issuance under the Company’s 2019 Equity Incentive Plan 101 Shares reserved for future issuance under the Employee Stock Purchase Plan 8 Total common stock reserved for future issuance 1,607 Stock Subscription Receivable Prior to December 31, 2019, the Company sold 75,000 shares of common stock for gross proceeds of $0.3 million. As the gross cash proceeds of $0.3 million were not received until January 2, 2020, the Company recorded a stock subscription receivable of $0.3 million as of December 31, 2019. |
Warrants to Acquire Shares of C
Warrants to Acquire Shares of Common Stock | 6 Months Ended |
Jun. 30, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants to Acquire Shares of Common Stock | Warrants to Acquire Shares of Common Stock Warrants Outstanding The following is a summary of the activity of the Company's warrants to acquire shares of common stock for the six months ended June 30, 2020 (in thousands): Warrant Issuance Outstanding, December 31, 2019 Granted Exercised Canceled/Expired Outstanding, June 30, 2020 Expiration January 2020 Offering — 819 — — 819 July 2025 Pre-funded January 2020 Offering — 449 (449) — — July 2025 June 2019 Offering 2 — — — 2 June 2024 March 2019 Exercise Agreement 63 — — — 63 March 2024 July 2018 Offering 208 — — — 208 July 2023 Series A Convertible Preferred 19 — — — 19 September 2023 2017 Equilibria 6 — — — 6 December 2022 Galena February 2017 1 — — — 1 February 2022 Galena Other 3 — — (1) 2 January 2022 302 1,268 (449) (1) 1,120 Warrants to acquire shares of common stock consist of warrants that may be settled in cash, which are liability-classified warrants, and equity-classified warrants. Warrants Classified as Liabilities Liability-classified warrants consist of warrants to acquire common stock issued in connection with previous equity financings for Series A Convertible Preferred Stock, Galena's February 2017 financing, and various other Galena equity financings that were assumed by the Company at the consummation of the Merger. These warrants may be settled in cash and were determined not to be indexed to the Company’s common stock. The estimated fair value of outstanding warrants accounted for as liabilities is determined at each balance sheet date. Any decrease or increase in the estimated fair value of the warrant liability since the most recent balance sheet date is recorded in the consolidated statement of operations as change in fair value of warrant liability. The fair value of the warrants is estimated using a Black-Scholes pricing model with the following inputs: As of June 30, 2020 Warrant Issuance Outstanding (in thousands) Strike price (per share) Expected term (years) Volatility % Risk-free rate % Series A Convertible Preferred 19 $ 7.50 3.25 128.56 % 0.19 % Galena February 2017 1 $ 1,650.00 1.62 129.14 % 0.16 % Galena Other 2 $ 30,901.09 1.54 129.14 % 0.16 % As of December 31, 2019 Warrant Issuance Outstanding (in thousands) Strike price (per share) Expected term (years) Volatility % Risk-free rate % Series A Convertible Preferred 19 $ 7.50 3.75 112.84 % 1.64 % Galena February 2017 1 $ 1,650.00 2.12 114.91 % 1.64 % Galena Other 3 $ 41,494.00 1.43 114.91 % 1.64 % The expected volatility assumptions are based on the Company's implied volatility in combination with the implied volatilities of similar publicly traded entities. The expected life assumption is based on the remaining contractual terms of the warrants. The risk-free rate is based on the zero coupon rates in effect at the time of valuation. The dividend yield used in the pricing model is zero, because the Company has no present intention to pay cash dividends. The changes in fair value of the warrant liability for the six months ended June 30, 2020 were as follows (in thousands): Warrant Issuance Warrant liability, December 31, 2019 Fair value of warrants granted Fair value of warrants exercised Adjustment to exercise price of warrants Change in fair value of warrants Warrant liability, June 30, 2020 Series A Convertible Preferred $ 52 $ — $ — $ — $ (19) $ 33 Galena February 2017 — — — — — — $ 52 $ — $ — $ — $ (19) $ 33 Warrants Classified as Equity The pre-funded warrants exercisable for shares of common stock and warrants to acquire shares of common stock issued during the January 2020 Offering and concurrent private placement were recorded as equity upon issuance. During its evaluation of equity classification of these pre-funded warrants and common stock purchase warrants, the Company considered the conditions as prescribed within ASC 815-40, Derivatives and Hedging, Contracts in an Entity’s own Equity (“ASC 815-40”). The conditions within ASC 815-40 are not subject to a probability assessment. The pre-funded warrants exercisable for shares of common stock and warrants to acquire shares of common stock do not fall under the liability criteria within ASC 480, Distinguishing Liabilities from Equity , as they are not puttable and do not represent an instrument that has a redeemable underlying security. The pre-funded warrants exercisable for shares of common stock and warrants to acquire shares of common stock do meet the definition of a derivative instrument under ASC 815, but are eligible for the scope exception as they are indexed to the Company’s own stock and would be classified in permanent equity if freestanding. Warrant Modification On March 6, 2019, the Company entered into a Warrant Exercise Agreement (the "March 2019 Exercise Agreement") with one of the holders of the Company's warrants issued in July 2018. Pursuant to the March 2019 Exercise Agreement, new warrants to purchase up to an aggregate of approximately 76,000 shares of common stock at an exercise price of $70.00 per share ("March 2019 Exercise Agreement Warrants") were issued on a share-for-share basis in an amount equal to the number of the warrants issued in 2018 that were cash exercised by the warrant holder prior to May 31, 2019. On January 2, 2020, the Company amended the March 2019 Exercise Agreement Warrants to provide for an exercise price of $7.50 per share (subject to adjustment for stock splits and the like). The reduced exercise price of the 63,000 March 2019 Exercise Agreement Warrants increased the fair value of these warrants by approximately $0.1 million during the six months ended June 30, 2020, which is recorded as a deemed dividend increasing the net loss attributable to common stockholders and additional paid-in-capital. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2017 Equity Incentive Plan On December 29, 2017, the 2017 Equity Incentive Plan was approved by the stockholders of the Company, which provided for the issuance of up to a maximum of 24,204 shares of common stock underlying stock options granted prior to September 10, 2019. The 2017 Equity Incentive Plan was terminated upon the approval of the 2019 Incentive Plan subject to outstanding stock options granted under the 2017 Equity Incentive Plan that remain exercisable through maturity for the Company's employees and directors. 2019 Equity Incentive Plan On September 10, 2019, the 2019 Equity Incentive Plan was approved by the stockholders of the Company, which currently allows for issuance of up to (i) 454,005 shares of common stock in connection with the grant of stock-based awards, including stock options, restricted stock, restricted stock units, stock appreciation rights and other types of awards as deemed appropriate plus (ii) 2,684 shares of common stock under the 2017 Equity Incentive Plan that were forfeited back to the Company subsequent to September 10, 2019 and are available for future issuance. The number of shares reserved for issuance under the 2019 Equity Incentive Plan will automatically increase on January 1 of each year, for a period of not more than four years, commencing on January 1, 2020 and ending on (and including) January 1, 2023, by an amount equal to the lesser of (i) 5% of the total number of shares of common stock outstanding at the end of the prior fiscal year; and (ii) an amount determined by the board of directors or authorized committee. As of June 30, 2020, 100,689 shares of common stock were reserved for future grants under the 2019 Equity Incentive Plan. The following table summarizes the components of stock-based compensation expense in the consolidated statements of operations for the three and six months ended June 30, 2020 and 2019, respectively (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 4 $ (43) $ 5 $ (4) General and administrative 142 169 286 315 Total stock-based compensation $ 146 $ 126 $ 291 $ 311 Options to Purchase Shares of Common Stock The Company uses the Black-Scholes option-pricing model to determine the fair value of all its stock options granted. The assumptions used during the three and six months ended June 30, 2020 and 2019, respectively, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Risk free interest rate 0.53 % — % 0.62 % 2.49 % Volatility 108.08 % — % 106.24 % 96.57 % Expected lives (years) 6.25 0.00 6.15 6.20 Expected dividend yield — % — % — % — % The weighted-average grant date fair value of options granted during the three months ended June 30, 2020 was $1.35. There were no options granted during the three months ended June 30, 2019. The weighted-average grant date fair value of options granted during the six months ended June 30, 2020 and 2019 was $1.53 and $54.00, respectively. The Company’s expected common stock price volatility assumption is based upon the Company's own implied volatility in combination with the implied volatility of a basket of comparable companies. The expected life assumptions for employee grants were based upon the simplified method, which averages the contractual term of the Company’s options of ten years with the average vesting term of four years for an average of approximately six years. The expected life assumptions for non-employees were based upon the contractual term of the option. The dividend yield assumption is zero because the Company has never paid cash dividends and presently has no intention to do so. The risk-free interest rate used for each grant was also based upon prevailing short-term interest rates. The Company accounts for forfeitures as they occur. As of June 30, 2020, there was $1.0 million of unrecognized compensation cost related to outstanding stock options that is expected to be recognized as a component of the Company’s operating expenses over a weighted-average period of 2.26 years. The following table summarizes stock option activity of the Company for the six months ended June 30, 2020: Total Weighted Weighted Average Remaining Contractual Term (in years) Aggregate Outstanding at December 31, 2019 21,520 $ 112.81 8.98 $ — Granted 186,000 1.87 $ — Outstanding at June 30, 2020 207,520 $ 13.38 9.58 $ 197 Options exercisable at June 30, 2020 9,681 $ 130.81 8.41 $ — The aggregate intrinsic values of outstanding and exercisable stock options at June 30, 2020 were calculated based on the closing price of the Company’s common stock as reported on the Nasdaq Capital Market on June 30, 2020 of $2.93 per share. The aggregate intrinsic value equals the positive difference between the closing fair market value of the Company’s common stock and the exercise price of the underlying stock options. RSUs with Performance and Service Conditions The Company granted RSUs subject to both performance-based and service-based vesting conditions to certain of its employees pursuant to the Company's 2019 Equity Incentive Plan that will settle in shares of common stock. These RSUs vest based on the achievement of certain clinical and regulatory milestones and the respective employee's continued employment with the Company. As of June 30, 2020, there was $0.3 million of unrecognized compensation cost related to outstanding RSUs. The following table summarizes RSU activity of the Company for the six months ended June 30, 2020: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2019 — $ — Granted 170,000 $ 1.89 Vested — $ — Unvested at June 30, 2020 170,000 $ 1.89 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated all events or transactions that occurred after June 30, 2020 up through the date these financial statements were issued. Other than as disclosed elsewhere in the notes to the consolidated financial statements, including below, the Company did not have any material subsequent events. On July 31, 2020, the Company entered into a Securities Purchase Agreement (the “PIPE Purchase Agreement”) with certain investors (the “PIPE Investors”), pursuant to which the Company agreed to issue and sell, in a private placement directly to the PIPE Investors (the "July 2020 PIPE Offering"), 2,744,078 shares of its common stock and accompanying warrants to purchase an aggregate of up to 2,744,078 shares of common stock at a combined purchase price of $3.335 per share and accompanying warrant. The warrants are immediately exercisable at an exercise price of $3.30 per share and will expire five years from the date of issuance. The gross proceeds to the Company from the July 2020 PIPE Offering were approximately $9.2 million before deducting the placement agent fee and related offering expenses. The July 2020 PIPE Offering closed on August 4, 2020. The shares of common stock and warrants described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission ("SEC") or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. Pursuant to a registration rights agreement with the PIPE Investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of the shares of common stock and the shares issuable upon exercise of the warrants. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. Unless the context otherwise indicates, reference in these notes to the "Company" refer to SELLAS Life Sciences Group, Inc., and its wholly owned subsidiaries, Private SELLAS, SLSG Limited, LLC, Sellas Life Sciences Limited, and Apthera, Inc. The functional currency of the Company's non-U.S. operations is the U.S. dollar. |
Restricted Stock Units with Performance and Service Conditions | Restricted Stock Units with Performance and Service Conditions During the six months ended June 30, 2020, the Board of Directors granted restricted stock units ("RSUs") to certain employees that vest based on performance and service conditions. The fair values of the RSUs are measured on the date of grant and are based on the Company's closing stock price on such date. Compensation expense is recognized for the number of RSUs expected to be earned, provided the requisite service period has been rendered, after assessing the probability that certain performance criteria will be met. Cumulative adjustments are recorded each quarter to reflect the estimated outcome of the performance-related conditions until the date results are determined and settled. If performance criteria are not met or are not expected to be met, any compensation expense previously recognized to date associated with the RSUs will be reversed. |
Net Loss Per Share | Net Loss Per Share Net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities, such as warrants, stock options and unvested restricted stock that would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted In August 2018, FASB issued No. ASU 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU No. 2018-13") . ASU No. 2018-13 modifies, adds and removes certain specific disclosure requirements on fair value measurements in Topic 820. The amendments in ASU No. 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. This standard became effective for the Company on January 1, 2020 and did not have a material impact on the Company's disclosures. For the new disclosure regarding our Level 3 instruments, please read Note 4 to these consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Accounting ("ASU No. 2018-07") , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. ASU No. 2018-07 supersedes ASC 505-50 and expands the scope of ASC 718, Compensation - Stock Compensation (Topic 718) ("ASC 718") , to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. As a result, most of the guidance in ASC 718 associated with employee share-based payments, including most of its requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. ASU No. 2018-07 generally requires an entity to use a modified retrospective transition approach, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year, for all (1) liability-classified nonemployee awards that have not been settled as of the adoption date and (2) equity-classified nonemployee awards for which a measurement date has not been established. This standard became effective for the Company on January 1, 2020 and did not have a material impact on the Company's consolidated financial statements and related disclosure. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Weighted Average Shares Outstanding | The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive (in thousands): Six Months Ended June 30, 2020 2019 Common stock warrants 1,120 2,855 Stock options 208 27 RSUs 170 — 1,498 2,882 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets (in thousands): Description June 30, 2020 Quoted Prices In Significant Other Unobservable Assets: Cash equivalents $ 3,000 $ 3,000 $ — $ — Total assets measured and recorded at fair value $ 3,000 $ 3,000 $ — $ — Liabilities: Warrant liability $ 33 $ — $ — $ 33 Contingent consideration 5,193 — — 5,193 Total liabilities measured and recorded at fair value $ 5,226 $ — $ — $ 5,226 Description December 31, 2019 Quoted Prices In Significant Other Unobservable Assets: Cash equivalents $ 7,027 $ 7,027 $ — $ — Total assets measured and recorded at fair value $ 7,027 $ 7,027 $ — $ — Liabilities: Warrant liability $ 52 $ — $ — $ 52 Contingent consideration 4,912 — — 4,912 Total liabilities measured and recorded at fair value $ 4,964 $ — $ — $ 4,964 |
Reconciliation of Level 3 Liabilities | A reconciliation of the change in the fair value of the contingent consideration liability for the six months ended June 30, 2020 is as follows (in thousands): Fair Value Contingent consideration, December 31, 2019 $ 4,912 Change in the estimated fair value of the contingent consideration 281 Contingent consideration, June 30, 2020 $ 5,193 |
Balance Sheet Accounts (Tables)
Balance Sheet Accounts (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): June 30, 2020 December 31, 2019 Insurance $ 1,015 $ 200 Clinical development 535 224 Professional services 104 49 Other 135 84 Prepaid expenses and other current assets $ 1,789 $ 557 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): June 30, 2020 December 31, 2019 Clinical trial costs $ 1,043 $ 371 Compensation and related benefits 487 606 Professional fees 279 194 Accrued expenses and other current liabilities $ 1,809 $ 1,171 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments under the Company's non-cancelable operating leases are as follows as of June 30, 2020 (in thousands): Future minimum lease payments: 2020 (remaining) $ 107 2021 302 2022 311 2023 321 2024 330 Total future minimum lease payments 1,371 Less: imputed interest (363) Current and non-current operating lease liability $ 1,008 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | As of June 30, 2020, the Company has shares of common stock reserved for future issuance as follows (in thousands): Warrants outstanding 1,120 Stock options outstanding 208 RSUs outstanding 170 Shares reserved for future issuance under the Company’s 2019 Equity Incentive Plan 101 Shares reserved for future issuance under the Employee Stock Purchase Plan 8 Total common stock reserved for future issuance 1,607 |
Warrants to Acquire Shares of_2
Warrants to Acquire Shares of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Warrant Activity Table | The following is a summary of the activity of the Company's warrants to acquire shares of common stock for the six months ended June 30, 2020 (in thousands): Warrant Issuance Outstanding, December 31, 2019 Granted Exercised Canceled/Expired Outstanding, June 30, 2020 Expiration January 2020 Offering — 819 — — 819 July 2025 Pre-funded January 2020 Offering — 449 (449) — — July 2025 June 2019 Offering 2 — — — 2 June 2024 March 2019 Exercise Agreement 63 — — — 63 March 2024 July 2018 Offering 208 — — — 208 July 2023 Series A Convertible Preferred 19 — — — 19 September 2023 2017 Equilibria 6 — — — 6 December 2022 Galena February 2017 1 — — — 1 February 2022 Galena Other 3 — — (1) 2 January 2022 302 1,268 (449) (1) 1,120 |
Fair Value of Warrants is Estimated Using Black-Scholes Option Pricing Model | The fair value of the warrants is estimated using a Black-Scholes pricing model with the following inputs: As of June 30, 2020 Warrant Issuance Outstanding (in thousands) Strike price (per share) Expected term (years) Volatility % Risk-free rate % Series A Convertible Preferred 19 $ 7.50 3.25 128.56 % 0.19 % Galena February 2017 1 $ 1,650.00 1.62 129.14 % 0.16 % Galena Other 2 $ 30,901.09 1.54 129.14 % 0.16 % As of December 31, 2019 Warrant Issuance Outstanding (in thousands) Strike price (per share) Expected term (years) Volatility % Risk-free rate % Series A Convertible Preferred 19 $ 7.50 3.75 112.84 % 1.64 % Galena February 2017 1 $ 1,650.00 2.12 114.91 % 1.64 % Galena Other 3 $ 41,494.00 1.43 114.91 % 1.64 % |
Changes in Fair Value of Warrant Liability | The changes in fair value of the warrant liability for the six months ended June 30, 2020 were as follows (in thousands): Warrant Issuance Warrant liability, December 31, 2019 Fair value of warrants granted Fair value of warrants exercised Adjustment to exercise price of warrants Change in fair value of warrants Warrant liability, June 30, 2020 Series A Convertible Preferred $ 52 $ — $ — $ — $ (19) $ 33 Galena February 2017 — — — — — — $ 52 $ — $ — $ — $ (19) $ 33 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Allocated Stock-based Compensation Expense | The following table summarizes the components of stock-based compensation expense in the consolidated statements of operations for the three and six months ended June 30, 2020 and 2019, respectively (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 4 $ (43) $ 5 $ (4) General and administrative 142 169 286 315 Total stock-based compensation $ 146 $ 126 $ 291 $ 311 |
Assumptions for Option Grants Issued | The Company uses the Black-Scholes option-pricing model to determine the fair value of all its stock options granted. The assumptions used during the three and six months ended June 30, 2020 and 2019, respectively, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Risk free interest rate 0.53 % — % 0.62 % 2.49 % Volatility 108.08 % — % 106.24 % 96.57 % Expected lives (years) 6.25 0.00 6.15 6.20 Expected dividend yield — % — % — % — % |
Stock Option Activity | The following table summarizes stock option activity of the Company for the six months ended June 30, 2020: Total Weighted Weighted Average Remaining Contractual Term (in years) Aggregate Outstanding at December 31, 2019 21,520 $ 112.81 8.98 $ — Granted 186,000 1.87 $ — Outstanding at June 30, 2020 207,520 $ 13.38 9.58 $ 197 Options exercisable at June 30, 2020 9,681 $ 130.81 8.41 $ — |
Summary of RSU Activity | The following table summarizes RSU activity of the Company for the six months ended June 30, 2020: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2019 — $ — Granted 170,000 $ 1.89 Vested — $ — Unvested at June 30, 2020 170,000 $ 1.89 |
Liquidity (Details)
Liquidity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2020 | Jan. 09, 2020 | Jan. 02, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 30, 2019 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Number of shares of stock (in shares) | 0 | 524,097 | 75,000 | |||
Common stock to be called by warrants (in shares) | 818,900 | |||||
Net proceeds of common stock | $ 300 | $ 2,700 | $ 300 | |||
Cash and cash equivalents | $ 3,340 | 7,277 | ||||
Restricted cash and cash equivalents | 100 | 100 | ||||
Accumulated deficit | 109,715 | $ 101,147 | ||||
Accounts payable and accrued liabilities | $ 4,300 | |||||
Pre-Funded Warrants | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Gross proceeds from warrant exercises | $ 6,500 | |||||
Offering (in dollars per share) | $ 3.9725 | |||||
Warrants exercisable (in shares) | 448,800 | |||||
Net proceeds of common stock | $ 6,000 | |||||
PIPE Investors | Subsequent Event | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Number of shares of stock (in shares) | 2,744,078 | |||||
Common stock to be called by warrants (in shares) | 2,744,078 | |||||
Stock price per share (in dollars per share) | $ 3.335 | |||||
Warrant exercise price (in dollars per share) | $ 3.30 | |||||
Warrant term | 5 years | |||||
Gross proceeds from warrant exercises | $ 9,200 | |||||
Investor | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Warrant exercise price (in dollars per share) | $ 3.93 | |||||
Warrant term | 5 years 6 months | |||||
Aggregate common stock (in shares) | 1,189,000 | |||||
Offering (in dollars per share) | $ 3.9825 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) | Nov. 07, 2019shares | Jun. 30, 2020shares | Dec. 31, 2019shares | Nov. 08, 2019shares |
Accounting Policies [Abstract] | ||||
Reverse stock split ratio | 0.02 | |||
Common stock, shares outstanding (in shares) | 227,800,147 | 6,717,900 | 5,080,100 | 4,549,208 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Antidilutive Securities (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,498 | 2,882 |
Common stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,120 | 2,855 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 208 | 27 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 170 | 0 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Purchase Price Consideration, Measured at Estimated Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Liabilities: | ||
Warrant liability | $ 33 | $ 52 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 3,000 | 7,027 |
Total assets measured and recorded at fair value | 3,000 | 7,027 |
Liabilities: | ||
Warrant liability | 33 | 52 |
Contingent consideration | 5,193 | 4,912 |
Total liabilities measured and recorded at fair value | 5,226 | 4,964 |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets (Level 1) | ||
Assets: | ||
Cash equivalents | 3,000 | 7,027 |
Total assets measured and recorded at fair value | 3,000 | 7,027 |
Liabilities: | ||
Warrant liability | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities measured and recorded at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Total assets measured and recorded at fair value | 0 | 0 |
Liabilities: | ||
Warrant liability | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities measured and recorded at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Total assets measured and recorded at fair value | 0 | 0 |
Liabilities: | ||
Warrant liability | 33 | 52 |
Contingent consideration | 5,193 | 4,912 |
Total liabilities measured and recorded at fair value | $ 5,226 | $ 4,964 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Liabilities (Details) - Unobservable Inputs (Level 3) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration, beginning balance | $ 4,912 |
Change in the estimated fair value of the contingent consideration | 281 |
Contingent consideration, ending balance | $ 5,193 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Apthera, Inc. | 6 Months Ended | |
Jun. 30, 2020USD ($) | Dec. 31, 2011USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration payable, maximum amount | $ 30,000,000 | $ 32,000,000 |
Contingent consideration paid | 2,000,000 | |
Contingent consideration | 30,000,000 | |
Contingent consideration payable, minimum amount | $ 0 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business combination, contingent consideration, timing of development milestones | 5 years | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business combination, contingent consideration, timing of development milestones | 8 years | |
Weighted average cost of capital | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business combination, contingent consideration, measurement input | 0.118 | |
Cost of debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business combination, contingent consideration, measurement input | 0.036 |
Balance Sheet Accounts - Prepai
Balance Sheet Accounts - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Insurance | $ 1,015 | $ 200 |
Clinical development | 535 | 224 |
Professional services | 104 | 49 |
Other | 135 | 84 |
Prepaid expenses and other current assets | $ 1,789 | $ 557 |
Balance Sheet Accounts - Accrue
Balance Sheet Accounts - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Clinical trial costs | $ 1,043 | $ 371 |
Compensation and related benefits | 487 | 606 |
Professional fees | 279 | 194 |
Accrued expenses and other current liabilities | $ 1,809 | $ 1,171 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease liability | $ 90 | $ 90 | $ 217 | ||||
Operating lease liability, non-current | 918 | 918 | 0 | ||||
Operating lease right-of-use asset | 984 | 984 | $ 217 | ||||
Rent expense | 100 | $ 100 | 200 | ||||
Operating lease amortization | $ 100 | $ 100 | $ 200 | $ 200 | |||
Office Space Lease Expiring December 31, 2024 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease, discount rate (as a percent) | 13.00% | 13.00% | |||||
Operating lease, remaining term | 4 years 6 months | ||||||
Office Space Lease Expiring July 31, 2020 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease, discount rate (as a percent) | 13.00% | ||||||
Operating lease, remaining term | 1 year | ||||||
ASU 2016-02 | Office Space Lease Expiring December 31, 2024 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease liability | $ 100 | $ 100 | |||||
Operating lease liability, non-current | 900 | 900 | |||||
Operating lease right-of-use asset | $ 1,000 | $ 1,000 | |||||
ASU 2016-02 | Office Space Lease Expiring July 31, 2020 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease liability | $ 400 | ||||||
Operating lease liability, non-current | 200 | ||||||
Operating lease right-of-use asset | $ 600 |
Commitments and Contingencies_2
Commitments and Contingencies - Maturities of Lease Liabilities - 842 (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 (remaining) | $ 107 |
2021 | 302 |
2022 | 311 |
2023 | 321 |
2024 | 330 |
Total future minimum lease payments | 1,371 |
Less: imputed interest | (363) |
Current and non-current operating lease liability | $ 1,008 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 09, 2020 | Jan. 02, 2020 | Oct. 29, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 30, 2019 |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Number of shares of stock (in shares) | 0 | 524,097 | 75,000 | |||
Net proceeds of common stock | $ 300 | $ 2,700 | $ 300 | |||
Common stock to be called by warrants (in shares) | 818,900 | |||||
Stock subscription receivable | $ 0 | $ 308 | ||||
Pre-Funded Warrants | ||||||
Class of Stock [Line Items] | ||||||
Net proceeds of common stock | $ 6,000 | |||||
Offering (in dollars per share) | $ 3.9725 | |||||
Warrants exercisable (in shares) | 448,800 | |||||
Gross proceeds from warrant exercises | $ 6,500 | |||||
Investor | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.0001 | |||||
Aggregate common stock (in shares) | 1,189,000 | |||||
Offering (in dollars per share) | $ 3.9825 | |||||
Warrant exercise price (in dollars per share) | $ 3.93 | |||||
Warrant term | 5 years 6 months | |||||
Distribution Agreement | ||||||
Class of Stock [Line Items] | ||||||
Sale of shares, common stock gross proceeds | $ 5,000 | |||||
Percentage gross proceeds from the sale of share (as a percent) | 3.00% |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock are Reserved for Future Issuance (Details) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants outstanding (in shares) | 1,120,000 | 302,000 |
Stock options outstanding (in shares) | 207,520 | 21,520 |
Shares reserved for future issuance under the Company’s 2019 Equity Incentive Plan (in shares) | 101,000 | |
Shares reserved for future issuance under the Employee Stock Purchase Plan (in shares) | 8,000 | |
Total common stock reserved for future issuance (in shares) | 1,607,000 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs outstanding (in shares) | 170,000 | 0 |
Warrants to Acquire Shares of_3
Warrants to Acquire Shares of Common Stock - Warrants Outstanding (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2020shares | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 302 |
Granted (in shares) | 1,268 |
Exercised (in shares) | (449) |
Canceled/Expired (in shares) | (1) |
Outstanding, end of period (in shares) | 1,120 |
January 2020 Offering | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 0 |
Granted (in shares) | 819 |
Exercised (in shares) | 0 |
Canceled/Expired (in shares) | 0 |
Outstanding, end of period (in shares) | 819 |
Pre-funded January 2020 Offering | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 0 |
Granted (in shares) | 449 |
Exercised (in shares) | (449) |
Canceled/Expired (in shares) | 0 |
Outstanding, end of period (in shares) | 0 |
June 2019 Offering | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 2 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Canceled/Expired (in shares) | 0 |
Outstanding, end of period (in shares) | 2 |
March 2019 Exercise Agreement | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 63 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Canceled/Expired (in shares) | 0 |
Outstanding, end of period (in shares) | 63 |
July 2018 Offering | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 208 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Canceled/Expired (in shares) | 0 |
Outstanding, end of period (in shares) | 208 |
Series A Convertible Preferred | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 19 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Canceled/Expired (in shares) | 0 |
Outstanding, end of period (in shares) | 19 |
2017 Equilibria | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 6 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Canceled/Expired (in shares) | 0 |
Outstanding, end of period (in shares) | 6 |
Galena February 2017 | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 1 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Canceled/Expired (in shares) | 0 |
Outstanding, end of period (in shares) | 1 |
Galena Other | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 3 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Canceled/Expired (in shares) | (1) |
Outstanding, end of period (in shares) | 2 |
Warrants to Acquire Shares of_4
Warrants to Acquire Shares of Common Stock - Fair Value of Warrants is Estimated Using Black-Scholes Option Pricing Model (Details) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 1,120 | 302 |
Measurement Input, Risk Free Interest Rate | ||
Class of Warrant or Right [Line Items] | ||
Warrants and rights outstanding, measurement input | 0 | |
Measurement Input, Expected Dividend Rate | ||
Class of Warrant or Right [Line Items] | ||
Warrants and rights outstanding, measurement input | 0 | |
Series A Convertible Preferred | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 19 | 19 |
Strike price (in dollars per share) | $ 7.50 | $ 7.50 |
Expected term (years) | 3 years 3 months | 3 years 9 months |
Volatility % | 128.56% | 112.84% |
Risk-free rate % | 0.19% | 1.64% |
Galena February 2017 | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 1 | 1 |
Strike price (in dollars per share) | $ 1,650 | $ 1,650 |
Expected term (years) | 1 year 7 months 13 days | 2 years 1 month 13 days |
Volatility % | 129.14% | 114.91% |
Risk-free rate % | 0.16% | 1.64% |
Galena Other | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 2 | 3 |
Strike price (in dollars per share) | $ 30,901.09 | $ 41,494 |
Expected term (years) | 1 year 6 months 14 days | 1 year 5 months 4 days |
Volatility % | 129.14% | 114.91% |
Risk-free rate % | 0.16% | 1.64% |
Warrants to Acquire Shares of_5
Warrants to Acquire Shares of Common Stock - Changes in Fair Value of Warrant Liability (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Class of Warrant or Right, Fair Value [Roll Forward] | |
Warrant liability, beginning balance | $ 52 |
Fair value of warrants granted | 0 |
Fair value of warrants exercised | 0 |
Adjustment to exercise price of warrants | 0 |
Change in fair value of warrants | (19) |
Warrant liability, ending balance | 33 |
Series A Convertible Preferred | |
Class of Warrant or Right, Fair Value [Roll Forward] | |
Warrant liability, beginning balance | 52 |
Fair value of warrants granted | 0 |
Fair value of warrants exercised | 0 |
Adjustment to exercise price of warrants | 0 |
Change in fair value of warrants | (19) |
Warrant liability, ending balance | 33 |
Galena February 2017 | |
Class of Warrant or Right, Fair Value [Roll Forward] | |
Warrant liability, beginning balance | 0 |
Fair value of warrants granted | 0 |
Fair value of warrants exercised | 0 |
Adjustment to exercise price of warrants | 0 |
Change in fair value of warrants | 0 |
Warrant liability, ending balance | $ 0 |
Warrants to Acquire Shares of_6
Warrants to Acquire Shares of Common Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 02, 2020 | Jun. 30, 2020 | Jan. 09, 2020 | Mar. 06, 2019 |
Class of Warrant or Right [Line Items] | ||||
Common stock to be called by warrants (in shares) | 818,900 | |||
Number of warrants exercised (in shares) | 449,000 | |||
Series A Convertible Preferred | ||||
Class of Warrant or Right [Line Items] | ||||
Common stock to be called by warrants (in shares) | 76,000 | |||
Warrant exercise price (in dollars per share) | $ 7.50 | $ 70 | ||
Number of warrants exercised (in shares) | 0 | |||
Warrants 2019 | ||||
Class of Warrant or Right [Line Items] | ||||
Number of warrants exercised (in shares) | 63,000 | |||
Warrants 2020 | ||||
Class of Warrant or Right [Line Items] | ||||
Decrease (increase) in warrant fair value | $ 0.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 10, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 29, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock reserved for issuance (in shares) | 1,607,000 | 1,607,000 | ||||
Weighted average exercise price, granted (in dollars per share) | $ 1.35 | $ 0 | $ 1.53 | $ 54 | ||
Averages contractual term | 10 years | |||||
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% | ||
Unrecognized compensation cost, options | $ 1 | $ 1 | ||||
Operating expenses weighted average period | 2 years 3 months 3 days | |||||
Closing price of the Company's common stock (in dollars per share) | $ 2.93 | $ 2.93 | ||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average exercise price, granted (in dollars per share) | $ 1.89 | |||||
Unrecognized compensation cost | $ 0.3 | $ 0.3 | ||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Average vesting term | 6 years | |||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Average vesting term | 4 years | |||||
2017 Equity Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock reserved for issuance (in shares) | 2,684 | 2,684 | ||||
2017 Equity Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock authorized for issuance (in shares) | 24,204 | |||||
2019 Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock authorized for issuance (in shares) | 454,005 | |||||
Shares of common stock reserved for issuance (in shares) | 100,689 | 100,689 | ||||
Options expire from date of grant | 4 years | |||||
Increase in number of shares available for future issuance under stock based awards (as a percent) | 5.00% |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocated Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share based compensation expense | $ 146 | $ 126 | $ 291 | $ 311 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share based compensation expense | 4 | (43) | 5 | (4) |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share based compensation expense | $ 142 | $ 169 | $ 286 | $ 315 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions for Option Grants Issued (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Risk free interest rate | 0.53% | 0.00% | 0.62% | 2.49% |
Volatility | 108.08% | 0.00% | 106.24% | 96.57% |
Expected lives (years) | 6 years 3 months | 0 years | 6 years 1 month 24 days | 6 years 2 months 12 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Total Number of Shares | ||
Options outstanding, beginning balance (in shares) | 21,520 | |
Granted (in shares) | 186,000 | |
Options outstanding, ending balance (in shares) | 207,520 | 21,520 |
Exercisable (in shares) | 9,681 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 112.81 | |
Granted (in dollars per share) | 1.87 | |
Ending balance (in dollars per share) | 13.38 | $ 112.81 |
Exercisable (in dollars per share) | $ 130.81 | |
Weighted average remaining contractual term, outstanding (in years) | 9 years 6 months 29 days | 8 years 11 months 23 days |
Weighted average remaining contractual term, options exercisable (in years) | 8 years 4 months 28 days | |
Aggregate Intrinsic Value | ||
Beginning balance | $ 0 | |
Granted | 0 | |
Ending balance | 197 | $ 0 |
Exercisable | $ 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSU Activity (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Weighted Average Grant Date Fair Value | ||||
Granted (in dollars per share) | $ 1.35 | $ 0 | $ 1.53 | $ 54 |
RSUs | ||||
Shares | ||||
Beginning balance (in shares) | 0 | |||
Granted (in shares) | 170,000 | |||
Vested (in shares) | 0 | |||
Ending balance (in shares) | 170,000 | 170,000 | ||
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 0 | |||
Granted (in dollars per share) | 1.89 | |||
Vested (in dollars per share) | 0 | |||
Ending balance (in dollars per share) | $ 1.89 | $ 1.89 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 30, 2019 | Jan. 09, 2020 |
Subsequent Event [Line Items] | |||||
Number of shares of stock (in shares) | 0 | 524,097 | 75,000 | ||
Common stock to be called by warrants (in shares) | 818,900 | ||||
Subsequent Event | PIPE Investors | |||||
Subsequent Event [Line Items] | |||||
Number of shares of stock (in shares) | 2,744,078 | ||||
Common stock to be called by warrants (in shares) | 2,744,078 | ||||
Stock price per share (in dollars per share) | $ 3.335 | ||||
Warrant exercise price (in dollars per share) | $ 3.30 | ||||
Warrant term | 5 years | ||||
Gross proceeds from warrant exercises | $ 9.2 |