Eledon Pharmaceuticals (ELDN) 10-K 2 Apr 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 23, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Trading Symbol	NVUS
Entity Registrant Name	Novus Therapeutics, Inc.
Entity Central Index Key	1,404,281
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,407,024
Entity Public Float			$ 40,621,417

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)		Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents		$ 17,233,000	$ 1,103,000
Restricted cash		70,000	14,000
Prepaid expenses and other current assets		1,697,000	33,000
Total current assets		19,000,000	1,150,000
Property and equipment, net		25,000	31,000
Goodwill		1,867,000
Other assets			15,000
Total assets		20,892,000	1,196,000
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Accounts payable		418,000	338,000
Accrued severance		668,000
Accrued expenses and other liabilities		354,000	113,000
Convertible notes		0	3,447,000
Total liabilities		1,440,000	3,898,000
Commitments and contingencies (Note 8)
Stockholders’ equity (deficit):
Preferred stock, $0.001 par value, 5,000,000 shares authorized and none issued and outstanding at December 31, 2017; $0.001 par value, 6,565,540 shares authorized and 2,170,370 shares issued and outstanding at December 31, 2016	[1]		19,000
Common stock, $0.001 par value, 200,000,000 shares authorized and 7,110,414 shares issued and outstanding at December 31, 2017; $0.001 par value, 9,207,060 shares authorized and 394,306 shares issued and outstanding at December 31, 2016	[2]	7,000
Additional paid-in capital		46,951,000	11,378,000
Receipts on account of preferred stock		0	291,000
Accumulated deficit		(27,506,000)	(14,390,000)
Total stockholders’ equity (deficit)		19,452,000	(2,702,000)
Total liabilities and stockholders’ equity (deficit)		$ 20,892,000	$ 1,196,000
[1]	Number of shares as of December 31, 2016, has been retroactively adjusted to reflect the effect of the exchange ratio of the Reverse Merger consummated on May 9, 2017.
[2]	Number of shares has been retroactively adjusted to reflect the effect of the exchange ratio of the Reverse Merger consummated on May 9, 2017, and the reverse stock-split effected on May 11, 2017.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred shares, par value	$ 0.001	$ 0.001
Preferred shares, shares authorized	5,000,000	44,140,630
Preferred shares, shares issued	0	19,533,331
Preferred shares, shares outstanding	0	19,533,331
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	31,476,614
Common stock, shares issued	7,110,414	394,306
Common stock, shares outstanding	7,110,414	394,306

Consolidated Statements of Oper

Consolidated Statements of Operations and Other Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating expenses
Research and development	$ 2,022	$ 3,191
General and administrative	11,099	1,937
Total operating expenses	13,121	5,128
Loss from operations	(13,121)	(5,128)
Other income (expense), net	5	(527)
Net loss and other comprehensive loss	$ (13,116)	$ (5,655)
Net loss per share, basic and diluted (Note 2)	$ (2.30)	$ (2.46)
Weighted-average common shares outstanding, basic and diluted	4,677,610	382,747

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands		Total	Common Stock [Member]		Preferred Stock [Member]		Additional Paid-In Capital [Member]	Receipts on Account of Preferred Stock [Member]	Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2015		$ 2,782			$ 19	[1]	$ 11,207	$ 291	$ (8,735)
Beginning Balance, Shares at Dec. 31, 2015			373,259	[2]	19,533,331	[1]
Exercise of options, Shares		2,120	21,047	[2]
Stock-based compensation		$ 171					171
Net loss and other comprehensive loss		(5,655)							(5,655)
Ending Balance at Dec. 31, 2016		$ (2,702)			$ 19	[1]	11,378	291	(14,390)
Ending Balance, Shares at Dec. 31, 2016			394,306	[2]	19,533,331	[1]
Exercise of options, Shares		0
Issuance of preferred stock for exercise of warrants		$ 3,119			$ 8	[1]	3,111
Issuance of preferred stock for exercise of warrants, Shares	[1]				7,941,493
Issuance of common stock for cashless exercise of warrants, Shares	[2]		152,580
Conversion of convertible note and accrued interest to common stock		3,447	$ 1	[2]			3,446
Conversion of convertible note and accrued interest to common stock, Shares	[2]		323,261
Receipt on account of contingently convertible stock							291	$ (291)
Receipt on account of contingently convertible stock, Shares	[2]		104,788
Conversion of preferred stock and accrued dividends to common stock			$ 3	[2]	$ (27)	[1]	24
Conversion of preferred stock and accrued dividends to common stock, Shares			3,052,758	[2]	(27,474,824)	[1]
Issuance of common stock in connection with Reverse Merger		23,375	$ 3	[2]			23,372
Issuance of common stock in connection with Reverse Merger, Shares	[2]		2,515,739
Issuance of common stock for cash		4,000					4,000
Issuance of common stock for cash, Shares	[2]		400,400
Issuance of common stock at-the-market		750					750
Issuance of common stock at-the-market, Shares	[2]		167,356
Cancellation of fractional common stock, Shares	[2]		(774)
Stock-based compensation		579					579
Net loss and other comprehensive loss		(13,116)							(13,116)
Ending Balance at Dec. 31, 2017		$ 19,452	$ 7	[2]			$ 46,951		$ (27,506)
Ending Balance, Shares at Dec. 31, 2017	[2]		7,110,414
[1]	Number of shares has been retroactively adjusted to reflect the effect of the exchange ratio of the Reverse Merger consummated on May 9, 2017.
[2]	Number of shares has been retroactively adjusted to reflect the effect of the exchange ratio of the Reverse Merger consummated on May 9, 2017, and the reverse stock-split effected on May 11, 2017.

Consolidated Statements of Sto6

Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
At-The-Market [Member]
Net of issuance costs	$ 24

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating activities
Net loss	$ (13,116)	$ (5,655)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	22	35
Stock-based compensation	579	171
Loss on disposal of equipment	49	9
Fair value of debt in excess of proceeds		517
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(517)	65
Accounts payable and accrued expenses	(1,958)	(65)
Net cash used in operating activities	(14,941)	(4,923)
Investing activities
Cash received from merger transaction	23,250
Proceeds from sale of equipment	8	10
Purchase of property and equipment		(9)
Net cash provided by investing activities	23,258	1
Financing activities
Proceeds from issuance of common stock, net	4,750
Proceeds from exercise of warrants	3,119
Proceeds from convertible note		2,930
Net cash provided by financing activities	7,869	2,930
Net increase (decrease) in cash, cash equivalents and restricted cash	16,186	(1,992)
Cash, cash equivalents and restricted cash at beginning of period	1,117	3,109
Cash, cash equivalents and restricted cash at end of period	17,303	$ 1,117
Noncash activities:
Conversion of promissory note and interest to common stock	3,447
Conversion of contingently issuable shares to common stock	291
Issuance of common stock in merger	23,375
Conversion of preferred shares to common stock	27
Fair value of assets acquired, excluding cash and restricted cash	3,072
Fair value of liabilities assumed	(2,947)
Fair value of net assets acquired in the merger	$ 125

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Description of Business	Note 1. Description of Business Novus Therapeutics is a specialty pharmaceutical company focused on developing products for disorders of the ear, nose, and throat (ENT). Unless otherwise indicated, references to the terms the “combined company”, “Novus”, the “Company”, refer to Otic Pharma, Ltd. prior to the consummation of the Reverse Merger, and Novus Therapeutics, Inc., upon the consummation of the Reverse Merger described herein. The term “Tokai” refers to Tokai Pharmaceuticals, Inc., and its subsidiaries prior to the Reverse Merger. Reverse Merger On December 21, 2016, Tokai, a Delaware corporation, Otic, and the stockholders of Otic Pharma, Ltd., a private limited company organized under the laws of the State of Israel (“Otic”) (each a “Seller” and collectively, the “Sellers”), entered into a Share Purchase Agreement (the “Share Purchase Agreement”), pursuant to which, among other things, each Seller agreed to sell to Tokai, and Tokai agreed to purchase from each Seller, all of the common and preferred shares of Otic (“Otic Shares”) owned by such Seller in exchange for the issuance of a certain number of shares of common stock of Tokai, as determined pursuant to the terms of the Share Purchase Agreement (the “Reverse Merger”). The parties amended and restated the Share Purchase Agreement on March 2, 2017. On May 9, 2017, Tokai, Otic, and the Sellers closed the transaction contemplated by the Share Purchase Agreement, and subsequently effected a reverse stock-split of common stock at a ratio of one-for-nine (see Reverse Stock-Split Private Placement On January 31, 2017, Novus entered into a stock purchase agreement (the “Stock Purchase Agreement”) with certain purchasers named therein (the “Purchasers”), pursuant to which the Purchasers agreed to purchase approximately $4.0 million of the Company’s common stock through the purchase of 400,400 shares of the Company’s common stock at a price of $9.99 per share (the “Private Placement”). The Private Placement closed on May 10, 2017. After giving effect to the issuance of the shares in the Private Placement, the stockholders of Otic owned approximately 64% of the Company’s common stock.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Novus, a Delaware corporation, owns 100% of the issued and outstanding common stock or other ownership interest in Otic. Otic owns 100% of the issued and outstanding common stock or other ownership interest in its U.S. subsidiary, Otic Pharma, Inc. The functional currency of the Company’s foreign subsidiary is the U.S. Dollar; however, certain expenses, assets and liabilities are transacted at the local currency. These transactions are translated from the local currency into U.S. Dollars at exchange rates during or at the end of the reporting period. All significant intercompany accounts and transactions among the entities have been eliminated from the consolidated financial statements. Liquidity and Financial Condition The Company has experienced recurring net losses and negative cash flows from operating activities since its inception. The Company recorded a net loss of $13.1 million for the year ended December 31, 2017. As of December 31, 2017, the Company had cash, cash equivalents, and restricted cash of $17.3 million, working capital of $17.6 million and an accumulated deficit of $27.5 million. Due to continuing research and development activities, the Company expects to continue to incur net losses into the foreseeable future. In order to continue these activities, the Company may need to raise additional funds through future public or private debt and equity financings or strategic collaboration and licensing arrangements. If the Company issues equity or convertible debt securities to raise additional funding, its existing stockholders may experience dilution, it may incur significant financing costs, and the new equity or convertible debt securities may have rights, preferences and privileges senior to those of its existing stockholders. If the Company issues debt securities to raise additional funding, it would incur additional debt service obligations, it could become subject to additional restrictions limiting its ability to operate its business, and it may be required to further encumber its assets. Sufficient additional funding may not be available or be available on acceptable terms. If so, the Company may need to delay, reduce the scope of, or put on hold research and development activities while the Company seeks strategic alternatives. The Company’s ability to raise additional capital in the equity and debt markets is dependent on a number of factors, including, but not limited to, the market demand for the Company’s common stock, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to the Company. At the time of issuance of Otic’s 2016 financial statements, the Company concluded that there was substantial doubt regarding the Company’s ability to continue as a going concern. The Company has performed an analysis and concluded substantial doubt does not exist with respect to the Company being able to continue as a going concern and the Company has sufficient cash resources to continue for a period of at least twelve months from the date of issuance of the consolidated financial statements for the year ended December 31, 2017. Reverse Stock-Split On May 11, 2017, Novus effected a reverse stock-split of its issued and outstanding common stock and options for common stock at a ratio of one-for-nine. The Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware effecting such reverse stock-split. The accompanying consolidated financial statements and notes give retroactive effect to the reverse stock-split for all periods presented. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to the valuation of the convertible debt instrument, stock-based compensation, accruals for liabilities, carrying value of goodwill, and other matters that affect the consolidated financial statements and related disclosures. Actual results could differ materially from those estimates under different assumptions or conditions and the differences may be material to the consolidated financial statements. Cash and Cash Equivalents Cash represents cash deposits held at financial institutions. The Company considers all liquid investments purchased with an original maturity of three months or less and that can be liquidated without prior notice or penalty to be cash equivalents. The carrying value of cash equivalents approximate their fair value due to the short-term maturities of these instruments. Cash equivalents are held for the purpose of meeting short-term liquidity requirements, rather than for investment purposes. The Company had cash equivalents of $0 and $531,000 at December 31, 2017 and 2016, respectively. Restricted Cash Restricted cash represents cash required to be set aside Concentration of Credit Risk and Other Risks and Uncertainties As of December 31, 2017 and 2016, all of the Company’s long-lived assets were located in the United States. Financial instruments that are subject to concentration of credit risk consist primarily of cash equivalents. The Company’s policy is to invest cash in institutional money market funds to limit the amount of credit exposure. At times, the Company maintains cash equivalents in short‑term money market funds and it has not experienced any losses on its cash equivalents. The Company’s products will require approval from the U.S. Food and Drug Administration (“FDA”) and foreign regulatory agencies before commercial sales can commence. There can be no assurance that its products will receive any of these required approvals. The denial or delay of such approvals may impact the Company’s business in the future. The Company is subject to risks common to companies in the pharmaceutical industry, including, but not limited to, new technological innovations, clinical development risk, establishment of appropriate commercial partnerships, protection of proprietary technology, compliance with government and environmental regulations, uncertainty of market acceptance of products, product liability, the volatility of its stock price and the need to obtain additional financing. Business Combinations Accounting for acquisitions requires extensive use of estimates and judgment to measure the fair value of the identifiable tangible and intangible assets acquired, including in-process research and development and liabilities assumed. Additionally, the Company must determine whether an acquired entity is considered a business or a set of net assets because the excess of the purchase price over the fair value of net assets acquired can only be recognized as goodwill in a business combination. The Company accounted for the merger with Tokai as a business combination under the acquisition method of accounting. Consideration paid to acquire Tokai was measured at fair value and included the exchange of Tokai’s common stock and preferred stock. The allocation of the purchase price resulted in recognition of an intangible asset related to goodwill. The operating activity for Tokai, the acquiree for accounting purposes, was immediately integrated with Otic post‑merger, therefore it is not practical to segregate results of operations related specifically to Tokai since the date of acquisition. As a result of the Reverse Merger, historical common stock, stock options and additional paid-in capital, including share and per share amounts, have been retroactively adjusted to reflect the equity structure of the Company. Reportable Segments Operating segments under GAAP are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The CODM is the Company’s Chief Executive Officer and the Company has determined that it operates in one business segment, which is the development of Goodwill Goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired under the acquisition method of accounting. Goodwill is not amortized but is evaluated for impairment during the last fiscal quarter of the year or if indicators of impairment exist that would, more likely than not, reduce the fair value from its carrying amount. Long-Lived Assets Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Additions, major renewals and improvements are capitalized and repair and maintenance costs are charged to expense as incurred. Leasehold improvements are amortized over the remaining life of the initial lease term or the estimated useful lives of the assets, whichever is shorter. The carrying value of long-lived assets, including intangible assets, is evaluated whenever events or changes in business circumstances or the Company’s planned use of long-lived assets indicate, based on undiscounted future operating cash flows, that their carrying amounts may not be fully recoverable or that their useful lives are no longer appropriate. When an indicator of impairment exists, undiscounted future operating cash flows of long-lived assets are compared to their respective carrying value. If the carrying value is greater than the undiscounted future operating cash flows of long-lived assets, the long-lived assets are written down to their respective fair values and an impairment loss is recorded. Fair value is determined primarily using the discounted cash flows expected to be generated from the use of assets. Significant management judgment is required in the forecast of future operating results that are used in the preparation of expected cash flows. No impairments of tangible assets have been identified during the years presented. Research and Development Expenses Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services and non-cash stock-based compensation. Research and development costs are expensed as incurred. Amounts due under contracts with third parties may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. Non-refundable advance payments under agreements are capitalized and expensed as the related goods are delivered or services are performed. The Company’s contracts with third parties to perform various clinical trial activities in the on-going development of potential products. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to its vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, and completion of portions of the clinical trial or similar conditions. The Company’s accrual for clinical trials is based on estimates of the services received and efforts expended pursuant to contracts with clinical trial centers and clinical research organizations. These contracts may be terminated by the Company upon written notice and the Company is generally only liable for actual effort expended by the organizations to the date of termination, although in certain instances the Company may be further responsible for termination fees and penalties. The Company estimates its research and development expenses and the related accrual as of each balance sheet date based on the facts and circumstances known to the Company at that time. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through December 31, 2017. Net Loss Per Share Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, preferred stock, convertible notes and accrued interest, and stock options and warrants are considered to be potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for the periods presented due to the Company’s net loss position. Year Ended December 31, 2017 2016 (In thousands, except share and per share data) Net loss available to stockholders of the company $ (13,116 ) $ (5,655 ) Interest accumulated on preferred shares and on preferred shares contingently issuable for little or no cash (328 ) (917 ) Net loss attributable to stockholders of preferred shares and to stockholders of preferred shares contingently issuable for little or no cash 2,666 5,631 Net loss used in the calculation of basic and diluted loss per share $ (10,778 ) $ (941 ) Net loss per share, basic and diluted $ (2.30 ) $ (2.46 ) Weighted-average number of common shares 4,677,610 382,747 The computation of diluted earnings per share excludes stock options, warrants, and restricted stock units that are anti-dilutive. For the year ended December 31, 2017, common share equivalents of 400,735 shares were anti-dilutive. For the year ended December 31, 2016, common share equivalents of 8,153,389 shares were anti-dilutive. Stock-based Compensation For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The fair value of stock options is determined using the Black-Scholes option pricing model, using assumptions which are subjective and require significant judgment and estimation by management. The risk-free rate assumption was based on observed yields from governmental zero-coupon bonds with an equivalent term. The expected volatility assumption was based on historical volatilities of a group of comparable industry companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical industry. The expected term of stock options represents the weighted-average period that the stock options are expected to be outstanding. Because the Company does not have historical exercise behavior, it determined the expected life assumption using the simplified method, which is an average of the options ordinary vesting period and the contractual term. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The Company has not paid and does not expect to pay dividends at any time in the foreseeable future. The Company recognizes forfeitures on an actual basis and as such did not estimate forfeitures to calculate share based compensation. Stock-based compensation expense related to stock options granted to non-employees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the period the Company expects to receive services from the non-employee. Stock options granted to non-employees are subject to periodic revaluation over their vesting terms. For the year ended December 31, 2017, no excess tax benefits for tax deductions related to stock-based awards were recognized in the accompanying consolidated statements of operations and other comprehensive income as no stock options were exercised. Income Taxes The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company includes interest and penalties related to income taxes, including unrecognized tax benefits, within income tax expense. The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential revisions and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. For additional information, see Note 9. Income Taxes Recently Issued Accounting Pronouncements In January 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (Topic 805) In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting Compensation – Stock Compensation ASU No. 2017-09 will be effective for the Company beginning in its first quarter of 2018. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the passing of H.R. 1/Public Law No. 115-97, commonly known as the Tax Cuts and Jobs Act (the “Act”) and requires certain disclosures about stranded tax effects. The amendments in ASU No. 2018-02 are effective beginning in 2019, with early adoption permitted, and may be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. Federal corporate tax rate in the Act is recognized. The Company is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In November 2016, the FASB issued ASU No. 2016-18, Statements of Cash Flows (Topic 230): Classification and Presentation of Restricted Cash in the Statements of Cash Flows A reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows, is as follows (in thousands): Year Ended December 31, 2017 2016 Cash and cash equivalents $ 17,233 $ 1,103 Restricted cash, as part of current assets 70 14 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 17,303 $ 1,117 Amounts included in restricted cash as part of current assets represented those required to be set aside as security for lease payments for Otic’s Israel facility as of December 31, 2016. Restricted cash as part of current assets on the consolidated balance sheet as of December 31, 2017, represents amounts set aside to maintain a letter of credit for the benefit of the landlord of Tokai’s Boston office.

Reverse Merger

Reverse Merger	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Reverse Merger	Note 3. Reverse Merger The Company completed the Reverse Merger with Tokai as discussed in Note 1. Based on the terms of the Reverse Merger, the Company concluded that the transaction is a business combination pursuant to ASC 805 Business Combinations On May 9, 2017, Tokai issued 4,027,693 shares of its common stock to the stockholders of Otic and the holders of warrants and options of Otic upon the exercise of such options and warrants in exchange for 840,115 Otic Shares. All warrants were exercised as of the merger date and after consummation of the Reverse Merger, Otic stockholders owned a majority of the fully diluted common stock of Novus Therapeutics, Inc. Purchase Consideration The purchase price for Tokai on May 9, 2017, the closing date of the Reverse Merger, was as follows (in thousands): Fair value of Tokai common stock outstanding (1) $ 14,486 Premium paid (2) 8,889 Purchase price $ 23,375 (1) Comprised of 2,515,739 shares of common stock outstanding at the date of the Reverse Merger based on the closing price of $5.76 per share on May 9, 2017, as adjusted for the one-for-nine reverse stock-split on May 11, 2017. (2) Premium paid over fair value of common stock based on net tangible asset multiple of 1.08x book value of Tokai equity of $21.5 million as of May 9, 2017. Allocation of Purchase Consideration The allocation of the estimated purchase price to the acquired assets and liabilities assumed of Tokai, based on their estimated fair values as of May 9, 2017, the close of the transaction, was as follows (in thousands): Cash, cash equivalents, and restricted cash $ 23,250 Prepaids and other current assets 1,132 Property and equipment 73 Goodwill 1,867 Accounts payable, accrued expenses and other liabilities (2,947 ) Net assets acquired $ 23,375 The Company engaged a third-party valuation firm to assist management in its analysis of the fair value of Tokai. All estimates, key assumptions, and forecasts were either provided by or reviewed by management. While the Company chose to utilize a third-party valuation firm, the fair value analysis and related valuations represent the conclusions of management and not the conclusions or statements of any third party. The excess of the total purchase price over the fair value of assets acquired and liabilities assumed was allocated to goodwill. The Company believes that the historical values of Tokai’s current assets and current liabilities approximated fair value based on the short-term nature of such items. Goodwill, which relates principally to intangible assets that do not qualify for separate recognition under GAAP, Pro Forma Results in Connection with Reverse Merger The operating activity for Tokai, the acquiree for accounting purposes, was immediately integrated with Otic post‑merger, therefore it is not practical to segregate results of operations related specifically to Tokai since the date of acquisition. The unaudited financial information in the following table summarizes the combined results of operations of the Company and Tokai, on a pro forma basis, as if the Reverse Merger had occurred at the beginning of the periods presented (in thousands): Year Ended December 31, 2017 2016 Operating expenses Research and development $ 2,481 $ 28,215 General and administrative 9,356 14,361 Total operating expenses 11,837 42,576 Loss from operations (11,837 ) (42,576 ) Other income, net 45 154 Net loss and other comprehensive loss $ (11,792 ) $ (42,422 ) Net loss per share, basic and diluted $ (2.52 ) $ (5.89 ) Weighted-average shares outstanding, basic and diluted 4,677,610 7,208,003 The above unaudited pro forma information was determined based on historical GAAP results of Otic and Tokai. The unaudited pro forma combined results are not necessarily indicative of what the Company’s combined results of operations would have been if the acquisition was completed at the beginning of the periods presented. The unaudited pro forma combined net loss includes pro forma adjustments primarily relating to the following non-recurring items directly attributable to the business combination: • Elimination of transaction costs of $7.2 million and $700,000 incurred during the years ended December 31, 2017 and December 31, 2016, respectively. These amounts have been eliminated on a pro forma basis as they are not expected to have a continuing effect on the operating results of the combined company. • Elimination of a fair value adjustment of $517,000 related to the convertible note issued on July 11, 2016. • An increase in the weighted-average shares outstanding for the period after giving effect to the issuance of Tokai common stock in connection with the Reverse Merger and Private Placement.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4. Fair Value Measurements Financial assets and liabilities are recorded at fair value. At December 31, 2017, the Company had no financial instruments. At December 31, 2016, the Company’s financial instruments included cash equivalents and short-term convertible note. The carrying amount of cash equivalents and short-term convertible note approximate fair value due to the short-term maturities of these instruments. The convertible notes had a term of 12 months. The Company measures the fair value of certain of its financial instruments on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1—Quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. There have been no transfers of assets for liabilities between these fair value measurement classifications during the periods presented. The Company had no financial assets or liabilities measured at fair value on a recurring basis at December 31, 2017. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 531 $ — $ — $ 531 Total assets at fair value $ 531 $ — $ — $ 531 Liabilities Convertible notes $ — $ 3,447 $ — $ 3,447 Total liabilities at fair value $ — $ 3,447 $ — $ 3,447

Prepaid Expenses Other Assets A

Prepaid Expenses Other Assets Accrued Expenses and Other Liabilities	12 Months Ended
	Dec. 31, 2017
Prepaid Expenses Other Assets Accrued Expenses And Other Liabilities [Abstract]
Prepaid Expenses, Other Assets, Accrued Expenses and Other Liabilities	Note 5. Prepaid Expenses, Other Assets, Accrued Expenses and Other Liabilities Prepaid expenses and other current assets consisted of the following as of December 31, 2017 and December 31, 2016 (in thousands): Year Ended December 31, 2017 2016 Prepaid insurance $ 1,518 $ — Prepaid other 161 — Other current assets 18 33 Total prepaid expenses and other current assets $ 1,697 $ 33 Accrued expenses and other liabilities consisted of the following as of December 31, 2017 and December 31, 2016 (in thousands): Year Ended December 31, 2017 2016 Accrued clinical $ 85 $ — Accrued compensation and related expenses — 51 Accrued professional services 158 — Accrued vacation 111 50 Accrued other — 12 Total accrued expenses and other liabilities $ 354 $ 113

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	Note 6. Goodwill The changes in the carrying amount of goodwill consisted of the following as of December 31, 2017 and December 31, 2016 (in thousands): Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Balance as of January 1, 2016 $ — $ — $ — Additions — — — Balance as of December 31, 2016 — — — Additions (1) 1,867 — 1,867 Balance as of December 31, 2017 $ 1,867 $ — $ 1,867 (1) Relates to the Reverse Merger (See Note 3. Reverse Merger

Convertible Note

Convertible Note	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Convertible Note	Note 7. Convertible Note On July 11, 2016, OrbiMed Israel Partners Limited Partnership and Peregrine Management II Ltd. provided Otic with a convertible bridge financing (the “Bridge Financing”) in the aggregate amount of $2.9 million (the “Bridge Financing Amount”), pursuant to a Bridge Financing Agreement (the “Bridge Financing Agreement”). Under the terms of the Bridge Financing Agreement, other than upon occurrence of an Event of Default (as defined in the Bridge Financing Agreement), Otic was not required to repay the Bridge Financing Amount or any portion in cash. The Bridge Financing Agreement further provided that upon a Deemed Liquidation (as defined in Otic’s Articles of Association), the Bridge Financing Amount is convertible into Preferred C Shares of Otic at a price per share representing 85% of the Preferred C Shares’ original issue price. Upon closing of the Reverse Merger, pursuant to the terms of the Bridge Financing Agreement, the Bridge Financing amount converted into 323,261 shares of common stock. The Company concluded the value of the Bridge Financing is predominantly based on a fixed monetary amount known at the date of issuance as represented by the 15% discount on the Company’s shares to be sold upon a Deemed Liquidation event. Accordingly, the Bridge Financing was classified as debt and was remeasured at its fair value of $3.4 million as of December 31, 2016,

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. Commitments and Contingencies Operating Leases The Company leases office space under various operating leases. Total rent expense for all operating leases in the consolidated statements of operations and comprehensive loss was approximately $1.0 million and $188,000 for the year ended December 31, 2017 and 2016, respectively. In February 2015, Tokai entered into a sublease for 15,981 square feet of office space in Boston, Massachusetts. The term of the sublease commenced on April 1, 2015 and expired on December 31, 2016 and subsequently extended through July 31, 2018. In November 2017, the Company terminated the lease early and paid an additional $455,000 in advance rent in conjunction with the lease termination. In September 2015, Otic entered into a three-year operating lease for 5,197 square feet of office space in Irvine, California. The lease has an expiration date of August 31, 2018. Future payments under noncancelable operating leases having initial or remaining terms of one year or more are as follows for the succeeding fiscal year and thereafter (in thousands): 2018 $ 112 Total minimum lease payments $ 112 Restricted Cash and Letter of Credit The Company was required to maintain a letter of credit As of December 31, 2016, the Company maintained a $14,000 restricted cash balance that was used as security for lease payments for Otic’s Israel facility and was invested in highly liquid deposits with original maturities of less than three months. As of March 31, 2017, the restricted cash was released and transferred into general funds. Grants and Licenses From 2012 through 2015, the Company received grants in the amount of approximately $537,000 from the Israeli Innovation Authority (previously the Office of Chief Scientist) of the Israeli Ministry of Economy and Industry designated for investments in research and development. The grants are linked to the U.S. dollar and bear annual interest of LIBOR. The grants are to be repaid as royalties from sales of the products developed by the Company from their investments in research and development. Because the Company has not yet earned revenues related to these investments and cannot estimate potential royalties, no liabilities related to these grants have been recorded as of each period presented. Repayment of the grant is contingent upon the successful completion of the Company’s R&D programs and generating sales. The Company has no obligation to repay these grants, if the R&D program fails, is unsuccessful or aborted or if no sales are generated. The Company had not yet generated sales as of December 31, 2017; therefore, no liability was recorded for the repayment in the accompanying consolidated financial statements. In November 2015, the Company entered into an exclusive license agreement with Scientific Development and Research, Inc. and Otodyne, Inc. (collectively, the “Licensors”) granting it exclusive worldwide rights to develop and commercialize OP-02, a potential first-in-class treatment option for patients at risk for or with otitis media (middle ear inflammation with or without infection), which is often caused by Eustachian tube dysfunction. Under the terms of the agreement, the Company is obligated to use commercially reasonable efforts to seek approval for and commercialize at least one product for otitis media in the U.S. and key European markets (France, Germany, Italy, Spain, and the United Kingdom). The Company is responsible for prosecuting, maintaining, and enforcing all intellectual property and will be the sole owner of improvements. Under the agreement with the Licensors, the Company paid license fees totaling $750,000 and issued 9,780 common shares to the Licensors, which was expensed to research and development during the year ended December,31, 2015. In December 2015, the Licensors completed transfer of all technology, including the active Investigational New Drug application (“IND”) to the Company. The Company is obligated to pay up to $42.1 million in development and regulatory milestones if OP-02 is approved for three indications in the U.S., two in Europe, and two in Japan. The Company is also obligated to pay up to $36.0 million in sales based milestones, beginning with sales exceeding $1.0 billion in a calendar year. The Company is also obligated to pay a tiered royalty for a period up to eight years, on a country-by-country basis. The royalty ranges from a low-single to mid-single percentage of net sales. There were no milestones achieved during the years ended December 31, 2017 or 2016. The Company has a master license agreement with the University of Maryland, Baltimore (“UMB”), which was originally entered into by Tokai. Pursuant to the license agreement, UMB granted an exclusive, worldwide license, with the right to sublicense, and, under certain patents and patent applications to make, have made, use, sell, offer to sell and import certain anti-androgen steroids, including galeterone, for the prevention, diagnosis, treatment or control of any human or animal disease. In addition, UMB granted the Company a first option to receive an exclusive license to UMB’s rights in certain improvements to the licensed products. The Company has exercised its option and acquired exclusive rights to licensed improvements under four amendments to the license agreement. The Company is obligated to pay UMB an annual maintenance fee of $10,000 each year until the first commercial sale of a product developed using the licensed technology. The Company is also obligated to make milestone payments of an additional $50,000 for the filing of each additional investigational new drug application filed for a licensed product, aggregate milestone payments of up to $150,000 associated with the development of a licensed product for a particular non-prostate disease indication, and a $100,000 milestone payment upon the approval by the U.S. Food and Drug Administration (“FDA”) of each new drug application (“NDA”) for a licensed product. There were no milestones achieved during the years ended December 31, 2017 or 2016. The Company must also pay UMB a low-single digit percentage royalty on aggregate worldwide net sales of licensed products, including sales by sublicensees, on a licensed product-by-licensed product and country-by-country basis until the later of the expiration of the last-to-expire applicable licensed patent or ten years after the first commercial sale of the applicable licensed product, in each case in the applicable country. The royalty obligations are subject to specified reductions in the event that additional licenses need to be obtained from third parties or in the event of specified competition from third-party products licensed by UMB. Minimum annual royalty payments to UMB are $50,000 beginning in the year following the year in which the first commercial sale occurs. The Company must also pay UMB 10% of all non-royalty sublicense income received from sublicensees. Finally, the Company is responsible for all patent expenses related to the prosecution and maintenance of the licensed patents. As of December 31, 2017, the Company has not yet developed a commercial product using the licensed technologies, nor has it entered into any sublicense agreements for the technologies. In January 2015, the Company (through Tokai) entered into an exclusive license agreement with The Johns Hopkins University (“Johns Hopkins”) pursuant to which Johns Hopkins granted the Company an exclusive, worldwide license under certain patents and patent applications, and a non-exclusive license under certain know-how, in each case with the right to sublicense, and to make, have made, use, sell, offer to sell and import certain assays to identify androgen receptor variants for use as a companion diagnostic with galeterone. In addition, Johns Hopkins granted the Company an option to negotiate an exclusive license to Johns Hopkins’s rights in certain improvements to the licensed intellectual property. In consideration for the rights granted to the Company under the license agreement, Tokai made an upfront payment to Johns Hopkins of $75,000 following the execution of the license agreement, which was recognized as research and development expense during the year ended December 31, 2015. The Company is obligated to pay Johns Hopkins an annual minimum royalty of up to $30,000 and to make milestone payments to Johns Hopkins upon the achievement of specified technical and commercial milestones. If all such milestones were achieved, the total milestone payments owed to Johns Hopkins would equal $700,000 in the aggregate. During the year ended December 31, 2015, Tokai expensed $50,000 upon the achievement of two of these milestones. The Company has not achieved any other milestones and, therefore, no additional liabilities for such milestone payments have been recorded in the Company’s financial statements. The Company must also pay Johns Hopkins single digit percentage royalties on aggregate worldwide net sales of licensed products (but not galeterone), including sales by sublicensees, on a licensed product-by-licensed product and country-by-country basis until the later of the expiration of the last-to-expire applicable licensed patent or ten years after first commercial sale of the applicable licensed product, in each case in the applicable country. These royalty obligations are subject to specified reductions in the event that additional licenses from third parties are required. The Company must also pay Johns Hopkins 20% of all non-royalty sublicense income received from sublicensees and reimburse Johns Hopkins for patent costs. As of December 31, 2017, the Company has not yet developed a commercial product using the licensed technologies. On October 5, 2017, the Company submitted notice of termination to all parties. The Company no longer has any obligations to UMB as of December 4, 2017, and to John Hopkins as of January 3, 2018. Legal Matters The Company is involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, the Company assesses, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures. The amount of ultimate loss may differ from these estimates. Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding. Because of the uncertainties related to the occurrence, amount, and range of loss on any pending litigation or claim, the Company does not consider a liability probable and is currently unable to predict their ultimate outcome, and, with respect to any pending litigation or claim where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. In the event that opposing litigants in outstanding litigation proceedings or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on the Company’s business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods. Legal Proceedings Doshi Action On August 1, 2016, a purported stockholder of Tokai filed a putative class action lawsuit in the U.S. District Court for the Southern District of New York against Tokai, Jodie P. Morrison, and Lee H. Kalowski, entitled Doshi v. Tokai Pharmaceuticals, Inc., et al., Garbowski, et al. v. Tokai Pharmaceuticals, Inc., et al., Legal Proceedings Related to Tokai IPO On September 22, 2014, Tokai completed the initial public offering of its common stock (the IPO”). Subsequent to the IPO, several lawsuits were filed against Tokai, Jodie P. Morrison, Lee H. Kalowski, Seth L. Harrison, Timothy J. Barberich, David A. Kessler, Joseph A. Yanchik, III, and the underwriters of the IPO. The lawsuits allege that, in violation of the Securities Act of 1933 (“Securities Act”), Tokai’s registration statement for the IPO made false and misleading statements and omissions about Tokai’s clinical trials for galeterone (the “Securities Act claims”). Each lawsuit sought, among other things, unspecified compensatory damages, interest, costs, and attorneys’ fees. Further details on each lawsuit are set forth below. The Company intends to vigorously defend against these claims. Given the uncertainty of litigation, the preliminary stage of these cases, and the legal standards that must be met for, among other things, success on the merits, it cannot estimate the reasonably possible loss or range of loss that may result from these actions. • Jackie888 Action Jackie888, Inc. v. Tokai Pharmaceuticals, Inc., et al., • Garbowski Action Garbowski, et al. v. Tokai Pharmaceuticals, Inc., et al., • Wu Action Wu v. Tokai Pharmaceuticals, Inc., et al., Wu v. Tokai Pharmaceuticals, Inc., et al., United States Supreme Court in Cyan, Inc. v. Beaver County Employees Retirement Fund • Angelos Action Peter B. Angelos v. Tokai Pharmaceuticals, Inc., et al., Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves future claims that may be made against the Company but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future because of these indemnification obligations. No amounts associated with such indemnifications have been recorded to date. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. There have been no contingent liabilities requiring accrual at December 31, 2017 and 2016.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 9. Stock-Based Compensation Otic had one stock compensation plan prior to the Reverse Merger, the 2012 Global Share Incentive Plan (the “2012 Plan”). Under the 2012 Plan, stock options, restricted share units and performance share awards may be granted the Company’s directors, employees and consultants. Options remain outstanding under the 2012 Plan. In connection with the Reverse Merger, all such options converted into options to purchase shares of Tokai common stock, as renamed Novus, and the applicable share amounts and exercise prices were adjusted to reflect the exchange ratio and in connection with the one‑for‑nine reverse stock-split. No additional grants shall be made from the 2012 Plan. Options granted under the 2012 Plan generally expire ten years from the date of grant. Prior to the Reverse Merger, Tokai had two stock compensation plans, the 2014 Stock Incentive Plan (the “2014 Plan”) and the 2007 Stock Incentive Plan (the “2007 Plan”). The 2014 Plan permits the Company to make grants of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights and other stock-based awards to the Company’s employees, officers, directors, consultants and advisors; however, incentive stock options may only be granted to the Company’s employees. The number of shares initially reserved for issuance under the 2014 Plan was 1,700,000 shares of common stock and may be increased by the number of shares under the 2007 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company. The number of shares of common stock that may be issued under the plan is also subject to an annual increase on the first day of each fiscal year equal to the lesser of (i) 1,800,000 shares of the Company’s common stock, (ii) 4% of the number of shares of the Company’s common stock outstanding on the first day of the applicable fiscal year or (iii) an amount determined by the Company’s board of directors. Options remain outstanding under both the 2007 and the 2014 Plan. The number of shares subject to and the exercise prices applicable to these outstanding options were adjusted in connection with the one for nine reverse stock-split. As of December 31, 2017, there were no options issued or outstanding under the 2007 plan. Options granted under the 2007 and 2014 Plans generally expire ten years from the date of grant. The Company intends for the 2014 Plan to be its primary stock compensation plan in the future. Because Otic is considered to be the acquirer for accounting purposes, the pre-Reverse Merger vested stock options granted by Tokai under the 2007 Plan and the 2014 Plan are deemed to have been exchanged for equity awards of the Company and as such the portion of the acquisition date fair value of these equity awards attributable to pre-Reverse Merger service to Tokai were accounted for as a component of the consideration transferred. The exchange of Otic stock options to purchase Tokai common stock, as renamed Novus, was accounted for as a modification of the awards because the legal exchange of the awards is considered a modification of Otic stock options. The modification of the stock options did not result in any incremental compensation expense as the modification did not increase the fair value of the stock options. Stock Option Activity As of December 31, 2017, a total of 3,617,376 options were available for grant under the 2014 Plan. The following table shows the stock option activity, as follows: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In years) (In thousands) Outstanding as of January 1, 2016 63,627 $ 17.70 Granted 13,054 19.75 Exercised (2,120 ) 0.06 $ 2.1 Forfeited (8,074 ) 19.01 Canceled (6,710 ) 19.75 Outstanding as of December 31, 2016 59,777 18.45 8.8 $ 4.3 Granted 595,800 5.54 Options assumed in the Reverse Merger 37,000 5.84 Exercised — — Forfeited / Canceled (10,377 ) 7.78 Outstanding as of December 31, 2017 682,200 $ 6.65 9.2 $ 8.6 Options vested and expected to vest as of December 31, 2017 682,200 $ 6.65 9.2 $ 8.6 Options exercisable as of December 31, 2017 143,657 $ 8.68 8.7 $ 8.6 As of December 31, 2017, the range of exercise prices was between $4.21 and $19.75 for options outstanding. Intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the fair value per share of the common stock on the date of exercise. The aggregate intrinsic value of options exercised during the years ended December 31, 2017 and 2016 was $0 and $2,100, respectively. As of December 31, 2017, total unrecognized stock-based compensation expense related to non-vested equity awards was $2.3 million, which is expected to be recognized over an estimated weighted-average period of 2.5 years. Stock-based Compensation Expense Total compensation expense related to all of the Company’s share-based awards for the years ended December 31, 2017 and December 31, 2016 was comprised of the following (in thousands): Year Ended December 31, 2017 2016 Stock-based compensation classified as: Research and development expense $ 69 $ 65 General and administrative expense 510 106 Total stock-based compensation expense $ 579 $ 171 Stock-based compensation expense for the year ended December 31, 2017 includes $80,000 of stock-based compensation expense related to a performance-based option grant which vested during 2017. Valuation Assumptions The Company determined the grant-date value of stock options using the Black-Scholes option pricing model. The fair value of each stock option grant was determined using assumptions which are subjective and require significant judgment and estimation by management. The risk-free rate assumption was based on observed yields from governmental zero-coupon bonds with an equivalent term. The expected volatility assumption was based on historical volatilities of a group of comparable industry companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical industry. The expected term of stock options represents the weighted-average period that the stock options are expected to be outstanding. Because the Company does not have historical exercise behavior, it determined the expected life assumption using the simplified method, which is an average of the options ordinary vesting period and the contractual term. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The Company has not paid and does not expect to pay dividends at any time in the foreseeable future. The Company recognizes forfeitures on an actual basis and as such did not estimate forfeitures to calculate share based compensation. The following table presents the assumptions used in the Black-Scholes option pricing model to determine the fair value of stock options granted in the periods presented Year Ended December 31, 2017 2016 Expected stock price volatility 78% - 86% 93% Risk-free interest rate 1% - 3% 0.95% Expected life of option (in years) 5 - 7 5 - 6 Estimated dividend yield 0% 0% Prior to the Reverse Merger, the fair value of the shares of common stock underlying the stock options had been the responsibility of and determined by the Company’s Board of Directors. Because there had been no public market for the Company’s common stock, the Board of Directors determined fair value of common stock at the time of grant of the option by considering a number of objective and subjective factors including independent third party valuations of the Company’s common stock, sales prices of convertible preferred stock to unrelated third parties, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, among other factors.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 10. Income Taxes Losses before income taxes and the provision for income taxes are as follows (in thousands): Year Ended December 31, 2017 2016 Losses before income taxes: U.S. $ (12,470 ) $ (2,870 ) Non-U.S. (646 ) (2,785 ) Total $ (13,116 ) $ (5,655 ) The Company is subject to income taxes under the Israeli and U.S. tax laws. The Company was subject to an Israeli corporate tax rate of 25% in the year 2016, 24% in the year 2017 and will be subject to an Israeli corporate tax rate of 23% in the year 2018 and thereafter. The Company was subject to a blended U.S. tax rate (Federal as well as state corporate tax) of 35% in 2016. On December 22, 2017, H.R. 1/Public Law No. 115-97, commonly known as the Tax Cuts and Jobs Act (the “Act”), was signed into law. The effects of this new federal legislation are recognized upon enactment, which is the date a bill is signed into law. The Act includes numerous changes in existing tax law, including a permanent reduction in the federal corporate income tax rate from 35% to 21%, converting to a territorial tax system, and creating various income inclusion and expense limitation provisions. The rate reduction takes effect on January 1, 2018. As a result of the Act, the Company has revalued its net deferred tax assets as of December 31, 2017 to reflect the rate reduction. Based on currently available information, the Company recorded a provisional reduction in its net deferred tax assets of $1.9 million in the fourth quarter of 2017 related to the revaluation of the net deferred tax assets as a result of the Act; however, the revaluation does not result in any additional net income tax expense as the net deferred tax assets are fully offset by the valuation allowance. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Act. SAB 118 provides a measurement period that should not extend beyond one year from the Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Act. Due to insufficient guidance on certain aspects of the Act, such as officer’s compensation, as well as uncertainty around the GAAP treatment associated with many other parts of the Act, such as the implementation of certain international provisions, the Company cannot be certain that all deferred tax assets and liabilities have been established for the future effects of the legislation. Therefore, the final accounting for these provisions is subject to change as further information becomes available and further analysis is complete. Additionally, given the uncertainty and complexity of these new international tax regimes, the Company is continuing to evaluate how these provisions will be accounted for under U.S. generally accepted accounting principles; therefore, the Company has not yet adopted an accounting policy for treating the effects of these provisions as either a component of income tax expense in the period the tax arises, or through adjusting its deferred tax assets and liabilities to account for the estimated future impact of the special international tax regimes. Significant judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. A valuation allowance is established when it is more likely than not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis, and includes a review of all available positive and negative evidence. Factors reviewed include projections of pre-tax book income for the foreseeable future, determination of cumulative pre-tax book income after permanent differences, earnings history, and reliability of forecasting. Based on its review, the Company concluded that it was more likely than not that they would not realize the benefit of its deferred tax assets in the future. This conclusion was based on historical and projected operating performance, as well as the Company’s expectation that its operations will not generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets within the statutory carryover periods. Therefore, the Company maintained a full valuation allowance on its deferred tax assets as of December 31, 2017 and 2016. The Company will continue to assess the need for a valuation allowance on its deferred tax assets by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the statement of operations for the period that the adjustment is determined to be required. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2017 2016 Statutory Federal income tax rate $ (4,460 ) $ (1,923 ) State income taxes, net of Federal tax benefits — — Foreign losses 59 328 Tax credits (2 ) (58 ) Change in statutory rates 1,859 — Stock-based compensation 135 — Permanent items 693 — Other 43 404 Change in valuation allowance 1,673 1,249 Total provision for income taxes $ — $ — Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 consisted of the following (in thousands): Year Ended December 31, 2017 2016 Net operating loss carryforwards $ 4,516 $ 2,928 Research and development tax credits 95 58 Accruals and reserves 221 360 Stock compensation 48 — Depreciation and amortization 139 — Other (rate change) — — Total deferred tax assets 5,019 3,346 Less: Valuation allowance (5,019 ) (3,346 ) Net deferred tax assets $ — $ — The following table reconciles the beginning and ending amounts of unrecognized tax benefits for the years presented (in thousands): Year Ended December 31, 2017 2016 Gross unrecognized tax benefits at the beginning of the year $ — $ — Additions from tax positions taken in the current year 75 — Additions from tax positions taken in prior years 106 — Reductions from tax positions taken in prior years — — Tax settlements — — Gross unrecognized tax benefits at the end of the year $ 181 $ — The deferred income tax assets have been fully offset by a valuation allowance, as realization is dependent on future earnings, if any, the timing and amount of which are uncertain. The net valuation allowance increased by $1.7 million. The Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the Company’s deferred tax assets, and the timing, likelihood, and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At present, the Company does not believe that it is more likely than not that the deferred tax assets will be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the accompanying balance sheets. As of December 31, 2017, and December 31, 2016, the Company had federal net operating loss carryforwards of approximately $12.5 million and $3.3 million, respectively, available to reduce future taxable income. The Company also has state net operating loss carryforwards of $900,000. The Federal net operating loss carryforward begins expiring in 2035 if not utilized. The California net operating loss carryforward begin expiring in 2035 if not utilized. As of December 31, 2017, and December 31, 2016, the Company had Israeli net operating losses of $8.4 million and $7.8 million, respectively, which carryforward indefinitely. The Company has Federal research and development tax credit carryforwards of approximately $132,000. If not utilized, the carryforwards will begin expiring in 2025. The Company has state research and development credit carryforwards or approximately $67,000 which do not expire. Pursuant to Internal Revenue Code (IRC) Sections 382 and 383, annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The Company has not completed an IRC Section 382/383 analysis regarding the limitation of net operating loss and research and development credit carryforwards. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact the Company’s effective tax rate. The Company’s ability to use its remaining net operating loss and tax credit carryforwards may be further limited if the Company experiences a Section 382 ownership change in connection with future changes in the Company’s stock ownership. In the United States, the Company files income tax returns in the U.S. Federal jurisdiction and California. The Company’s tax years for 2015 and forward are subject to examination by the Federal and California tax authorities due to the carryforward of unutilized net operating losses and research and development credits. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. There was no accrued interest and penalties associated with uncertain tax positions as of December 31, 2017 and 2016. The Company has not recorded any interest or penalties in 2017 or 2016.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Stockholders' Equity	Note 11. Stockholders’ Equity Warrants During 2017, the following transactions represent the exercise of all outstanding warrants for the Company’s preferred stock, for total proceeds of approximately $3.1 million: • In March 2017, OrbiMed Israel Partners Limited Partnership, a related party, exercised a warrant to purchase 978,561 shares of Preferred B shares of the Company at $0.41 per share for an aggregate amount of approximately $400,000. • In May 2017, OrbiMed Israel Partners Limited Partnership, a related party, exercised warrants to purchase 6,458,628 shares of Preferred B shares • In May 2017, Peregrine Management II Ltd., a related party, exercised warrants to purchase 192,454 shares of Preferred B shares • In May 2017, Pontifax, in a cashless exercise of its warrants, purchased 90,804 shares of the Company’s common stock. • In the first half of 2017, individual shareholders, in a cashless exercise, purchased 311,850 of the Company’s preferred stock. As of December 31, 2017 and 2016, 0 and 8,094,073 warrants, respectively, were issued and outstanding. Preferred Stock Preferred stock is convertible into common stock at the option of their holders, and confer upon their holders all rights accruing to holders of common stock in the Company on an as-converted basis. In addition, holders of preferred stock were entitled to preference upon a liquidation event and upon distribution of dividends, plus 8% annual interest calculated on the preferred share original issue price, as further detailed in the Company’s Articles of Association. The Reverse Merger met the criteria for a liquidation event as detailed in the Company’s Articles of Association and all shares of preferred stock converted to common stock. Receipts on Account of Preferred Stock On June 20, 2010, Incentive II Management Ltd. (“Incentive”) provided Otic with a loan (the “Incentive Loan”) under a Convertible Loan Agreement (the “Loan Agreement”) between Otic and Incentive. As part of the closing of the Series B Preferred Shares Purchase Agreement in February 2012, Incentive, Otic and the Series B Investors agreed that the Incentive Loan provided by Incentive shall be convertible by Incentive into 104,788 Preferred A Shares (the “Incentive A Shares”), which conversion shall occur upon request by Incentive. Just prior to the Reverse Merger, the Incentive A Shares that were issuable to Incentive were deemed issued and converted into Otic common shares and the loan provided was deemed, for all intents and purposes, as repaid in full pursuant to its terms. As of December 31, 2017, no receipts on account of preferred stock remained outstanding. As the underlying shares were not issued as of December 31, 2016, the funds received in their regard are presented as receipts on account of shares on the Company’s shareholders equity statement. The Incentive A shares are included in basic earnings per share as shares contingently issuable for little or no cash. Equity Distribution Agreement On August 21, 2017, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Piper Jaffray & Co. (“Piper Jaffray”), as sales agent, pursuant to which the Company may offer and sell, from time to time, through Piper Jaffray, up to $8.5 million in shares of its common stock. As of December 31, 2017, the Company had sold 167,356 shares of its common stock through the Equity Distribution Agreement for gross proceeds of approximately $774,000.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 12. Subsequent Events On March 9, 2018, Piper Jaffray sold the remaining shares of the Company’s common stock under the Equity Distribution Agreement. Subsequent to December 31, 2017, 2,296,610 shares of the Company’s common stock were sold by Piper Jaffray, resulting in total gross proceeds of approximately $7.7 million. No further sales will be made pursuant to the Equity Distribution Agreement.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Novus, a Delaware corporation, owns 100% of the issued and outstanding common stock or other ownership interest in Otic. Otic owns 100% of the issued and outstanding common stock or other ownership interest in its U.S. subsidiary, Otic Pharma, Inc. The functional currency of the Company’s foreign subsidiary is the U.S. Dollar; however, certain expenses, assets and liabilities are transacted at the local currency. These transactions are translated from the local currency into U.S. Dollars at exchange rates during or at the end of the reporting period. All significant intercompany accounts and transactions among the entities have been eliminated from the consolidated financial statements.
Liquidity and Financial Condition	Liquidity and Financial Condition The Company has experienced recurring net losses and negative cash flows from operating activities since its inception. The Company recorded a net loss of $13.1 million for the year ended December 31, 2017. As of December 31, 2017, the Company had cash, cash equivalents, and restricted cash of $17.3 million, working capital of $17.6 million and an accumulated deficit of $27.5 million. Due to continuing research and development activities, the Company expects to continue to incur net losses into the foreseeable future. In order to continue these activities, the Company may need to raise additional funds through future public or private debt and equity financings or strategic collaboration and licensing arrangements. If the Company issues equity or convertible debt securities to raise additional funding, its existing stockholders may experience dilution, it may incur significant financing costs, and the new equity or convertible debt securities may have rights, preferences and privileges senior to those of its existing stockholders. If the Company issues debt securities to raise additional funding, it would incur additional debt service obligations, it could become subject to additional restrictions limiting its ability to operate its business, and it may be required to further encumber its assets. Sufficient additional funding may not be available or be available on acceptable terms. If so, the Company may need to delay, reduce the scope of, or put on hold research and development activities while the Company seeks strategic alternatives. The Company’s ability to raise additional capital in the equity and debt markets is dependent on a number of factors, including, but not limited to, the market demand for the Company’s common stock, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to the Company. At the time of issuance of Otic’s 2016 financial statements, the Company concluded that there was substantial doubt regarding the Company’s ability to continue as a going concern. The Company has performed an analysis and concluded substantial doubt does not exist with respect to the Company being able to continue as a going concern and the Company has sufficient cash resources to continue for a period of at least twelve months from the date of issuance of the consolidated financial statements for the year ended December 31, 2017.
Reverse Stock-Split	Reverse Stock-Split On May 11, 2017, Novus effected a reverse stock-split of its issued and outstanding common stock and options for common stock at a ratio of one-for-nine. The Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware effecting such reverse stock-split. The accompanying consolidated financial statements and notes give retroactive effect to the reverse stock-split for all periods presented.
Use of Estimates	Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to the valuation of the convertible debt instrument, stock-based compensation, accruals for liabilities, carrying value of goodwill, and other matters that affect the consolidated financial statements and related disclosures. Actual results could differ materially from those estimates under different assumptions or conditions and the differences may be material to the consolidated financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash represents cash deposits held at financial institutions. The Company considers all liquid investments purchased with an original maturity of three months or less and that can be liquidated without prior notice or penalty to be cash equivalents. The carrying value of cash equivalents approximate their fair value due to the short-term maturities of these instruments. Cash equivalents are held for the purpose of meeting short-term liquidity requirements, rather than for investment purposes. The Company had cash equivalents of $0 and $531,000 at December 31, 2017 and 2016, respectively.
Restricted Cash	Restricted Cash Restricted cash represents cash required to be set aside
Concentration of Credit Risk and Other Risks and Uncertainties	Concentration of Credit Risk and Other Risks and Uncertainties As of December 31, 2017 and 2016, all of the Company’s long-lived assets were located in the United States. Financial instruments that are subject to concentration of credit risk consist primarily of cash equivalents. The Company’s policy is to invest cash in institutional money market funds to limit the amount of credit exposure. At times, the Company maintains cash equivalents in short‑term money market funds and it has not experienced any losses on its cash equivalents. The Company’s products will require approval from the U.S. Food and Drug Administration (“FDA”) and foreign regulatory agencies before commercial sales can commence. There can be no assurance that its products will receive any of these required approvals. The denial or delay of such approvals may impact the Company’s business in the future. The Company is subject to risks common to companies in the pharmaceutical industry, including, but not limited to, new technological innovations, clinical development risk, establishment of appropriate commercial partnerships, protection of proprietary technology, compliance with government and environmental regulations, uncertainty of market acceptance of products, product liability, the volatility of its stock price and the need to obtain additional financing.
Business Combinations	Business Combinations Accounting for acquisitions requires extensive use of estimates and judgment to measure the fair value of the identifiable tangible and intangible assets acquired, including in-process research and development and liabilities assumed. Additionally, the Company must determine whether an acquired entity is considered a business or a set of net assets because the excess of the purchase price over the fair value of net assets acquired can only be recognized as goodwill in a business combination. The Company accounted for the merger with Tokai as a business combination under the acquisition method of accounting. Consideration paid to acquire Tokai was measured at fair value and included the exchange of Tokai’s common stock and preferred stock. The allocation of the purchase price resulted in recognition of an intangible asset related to goodwill. The operating activity for Tokai, the acquiree for accounting purposes, was immediately integrated with Otic post‑merger, therefore it is not practical to segregate results of operations related specifically to Tokai since the date of acquisition. As a result of the Reverse Merger, historical common stock, stock options and additional paid-in capital, including share and per share amounts, have been retroactively adjusted to reflect the equity structure of the Company.
Reportable Segments	Reportable Segments Operating segments under GAAP are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The CODM is the Company’s Chief Executive Officer and the Company has determined that it operates in one business segment, which is the development of
Goodwill	Goodwill Goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired under the acquisition method of accounting. Goodwill is not amortized but is evaluated for impairment during the last fiscal quarter of the year or if indicators of impairment exist that would, more likely than not, reduce the fair value from its carrying amount.
Long-Lived Assets	Long-Lived Assets Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Additions, major renewals and improvements are capitalized and repair and maintenance costs are charged to expense as incurred. Leasehold improvements are amortized over the remaining life of the initial lease term or the estimated useful lives of the assets, whichever is shorter. The carrying value of long-lived assets, including intangible assets, is evaluated whenever events or changes in business circumstances or the Company’s planned use of long-lived assets indicate, based on undiscounted future operating cash flows, that their carrying amounts may not be fully recoverable or that their useful lives are no longer appropriate. When an indicator of impairment exists, undiscounted future operating cash flows of long-lived assets are compared to their respective carrying value. If the carrying value is greater than the undiscounted future operating cash flows of long-lived assets, the long-lived assets are written down to their respective fair values and an impairment loss is recorded. Fair value is determined primarily using the discounted cash flows expected to be generated from the use of assets. Significant management judgment is required in the forecast of future operating results that are used in the preparation of expected cash flows. No impairments of tangible assets have been identified during the years presented.
Research and Development Expenses	Research and Development Expenses Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services and non-cash stock-based compensation. Research and development costs are expensed as incurred. Amounts due under contracts with third parties may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. Non-refundable advance payments under agreements are capitalized and expensed as the related goods are delivered or services are performed. The Company’s contracts with third parties to perform various clinical trial activities in the on-going development of potential products. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to its vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, and completion of portions of the clinical trial or similar conditions. The Company’s accrual for clinical trials is based on estimates of the services received and efforts expended pursuant to contracts with clinical trial centers and clinical research organizations. These contracts may be terminated by the Company upon written notice and the Company is generally only liable for actual effort expended by the organizations to the date of termination, although in certain instances the Company may be further responsible for termination fees and penalties. The Company estimates its research and development expenses and the related accrual as of each balance sheet date based on the facts and circumstances known to the Company at that time. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through December 31, 2017.
Net Loss Per Share	Net Loss Per Share Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, preferred stock, convertible notes and accrued interest, and stock options and warrants are considered to be potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for the periods presented due to the Company’s net loss position. Year Ended December 31, 2017 2016 (In thousands, except share and per share data) Net loss available to stockholders of the company $ (13,116 ) $ (5,655 ) Interest accumulated on preferred shares and on preferred shares contingently issuable for little or no cash (328 ) (917 ) Net loss attributable to stockholders of preferred shares and to stockholders of preferred shares contingently issuable for little or no cash 2,666 5,631 Net loss used in the calculation of basic and diluted loss per share $ (10,778 ) $ (941 ) Net loss per share, basic and diluted $ (2.30 ) $ (2.46 ) Weighted-average number of common shares 4,677,610 382,747 The computation of diluted earnings per share excludes stock options, warrants, and restricted stock units that are anti-dilutive. For the year ended December 31, 2017, common share equivalents of 400,735 shares were anti-dilutive. For the year ended December 31, 2016, common share equivalents of 8,153,389 shares were anti-dilutive.
Stock-based Compensation	Stock-based Compensation For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The fair value of stock options is determined using the Black-Scholes option pricing model, using assumptions which are subjective and require significant judgment and estimation by management. The risk-free rate assumption was based on observed yields from governmental zero-coupon bonds with an equivalent term. The expected volatility assumption was based on historical volatilities of a group of comparable industry companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical industry. The expected term of stock options represents the weighted-average period that the stock options are expected to be outstanding. Because the Company does not have historical exercise behavior, it determined the expected life assumption using the simplified method, which is an average of the options ordinary vesting period and the contractual term. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The Company has not paid and does not expect to pay dividends at any time in the foreseeable future. The Company recognizes forfeitures on an actual basis and as such did not estimate forfeitures to calculate share based compensation. Stock-based compensation expense related to stock options granted to non-employees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the period the Company expects to receive services from the non-employee. Stock options granted to non-employees are subject to periodic revaluation over their vesting terms. For the year ended December 31, 2017, no excess tax benefits for tax deductions related to stock-based awards were recognized in the accompanying consolidated statements of operations and other comprehensive income as no stock options were exercised.
Income Taxes	Income Taxes The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company includes interest and penalties related to income taxes, including unrecognized tax benefits, within income tax expense. The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential revisions and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. For additional information, see Note 9. Income Taxes
Recently Issued or Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements In January 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (Topic 805) In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting Compensation – Stock Compensation ASU No. 2017-09 will be effective for the Company beginning in its first quarter of 2018. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the passing of H.R. 1/Public Law No. 115-97, commonly known as the Tax Cuts and Jobs Act (the “Act”) and requires certain disclosures about stranded tax effects. The amendments in ASU No. 2018-02 are effective beginning in 2019, with early adoption permitted, and may be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. Federal corporate tax rate in the Act is recognized. The Company is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In November 2016, the FASB issued ASU No. 2016-18, Statements of Cash Flows (Topic 230): Classification and Presentation of Restricted Cash in the Statements of Cash Flows A reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows, is as follows (in thousands): Year Ended December 31, 2017 2016 Cash and cash equivalents $ 17,233 $ 1,103 Restricted cash, as part of current assets 70 14 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 17,303 $ 1,117 Amounts included in restricted cash as part of current assets represented those required to be set aside as security for lease payments for Otic’s Israel facility as of December 31, 2016. Restricted cash as part of current assets on the consolidated balance sheet as of December 31, 2017, represents amounts set aside to maintain a letter of credit for the benefit of the landlord of Tokai’s Boston office.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Schedule of Common Share Equivalents Included from Computation of Net Loss Per Share	Year Ended December 31, 2017 2016 (In thousands, except share and per share data) Net loss available to stockholders of the company $ (13,116 ) $ (5,655 ) Interest accumulated on preferred shares and on preferred shares contingently issuable for little or no cash (328 ) (917 ) Net loss attributable to stockholders of preferred shares and to stockholders of preferred shares contingently issuable for little or no cash 2,666 5,631 Net loss used in the calculation of basic and diluted loss per share $ (10,778 ) $ (941 ) Net loss per share, basic and diluted $ (2.30 ) $ (2.46 ) Weighted-average number of common shares 4,677,610 382,747
Reconciliation of Cash, Cash Equivalents, and Restricted Cash	A reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows, is as follows (in thousands): Year Ended December 31, 2017 2016 Cash and cash equivalents $ 17,233 $ 1,103 Restricted cash, as part of current assets 70 14 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 17,303 $ 1,117

Reverse Merger (Tables)

Reverse Merger (Tables)	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Schedule of Purchase Price Consideration	The purchase price for Tokai on May 9, 2017, the closing date of the Reverse Merger, was as follows (in thousands): Fair value of Tokai common stock outstanding (1) $ 14,486 Premium paid (2) 8,889 Purchase price $ 23,375 (1) Comprised of 2,515,739 shares of common stock outstanding at the date of the Reverse Merger based on the closing price of $5.76 per share on May 9, 2017, as adjusted for the one-for-nine reverse stock-split on May 11, 2017. (2) Premium paid over fair value of common stock based on net tangible asset multiple of 1.08x book value of Tokai equity of $21.5 million as of May 9, 2017.
Summary of Allocation of Estimated Purchase Price to Acquired Assets and Liabilities Assumed	The allocation of the estimated purchase price to the acquired assets and liabilities assumed of Tokai, based on their estimated fair values as of May 9, 2017, the close of the transaction, was as follows (in thousands): Cash, cash equivalents, and restricted cash $ 23,250 Prepaids and other current assets 1,132 Property and equipment 73 Goodwill 1,867 Accounts payable, accrued expenses and other liabilities (2,947 ) Net assets acquired $ 23,375
Summary of Combined Results of Operations of Company and Tokai, on a Pro Forma Basis	The unaudited financial information in the following table summarizes the combined results of operations of the Company and Tokai, on a pro forma basis, as if the Reverse Merger had occurred at the beginning of the periods presented (in thousands): Year Ended December 31, 2017 2016 Operating expenses Research and development $ 2,481 $ 28,215 General and administrative 9,356 14,361 Total operating expenses 11,837 42,576 Loss from operations (11,837 ) (42,576 ) Other income, net 45 154 Net loss and other comprehensive loss $ (11,792 ) $ (42,422 ) Net loss per share, basic and diluted $ (2.52 ) $ (5.89 ) Weighted-average shares outstanding, basic and diluted 4,677,610 7,208,003

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 531 $ — $ — $ 531 Total assets at fair value $ 531 $ — $ — $ 531 Liabilities Convertible notes $ — $ 3,447 $ — $ 3,447 Total liabilities at fair value $ — $ 3,447 $ — $ 3,447

Prepaid Expenses Other Assets24

Prepaid Expenses Other Assets Accrued Expenses and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Prepaid Expenses Other Assets Accrued Expenses And Other Liabilities [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following as of December 31, 2017 and December 31, 2016 (in thousands): Year Ended December 31, 2017 2016 Prepaid insurance $ 1,518 $ — Prepaid other 161 — Other current assets 18 33 Total prepaid expenses and other current assets $ 1,697 $ 33
Schedule of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities consisted of the following as of December 31, 2017 and December 31, 2016 (in thousands): Year Ended December 31, 2017 2016 Accrued clinical $ 85 $ — Accrued compensation and related expenses — 51 Accrued professional services 158 — Accrued vacation 111 50 Accrued other — 12 Total accrued expenses and other liabilities $ 354 $ 113

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Changes in the Carrying Amount of Goodwill	The changes in the carrying amount of goodwill consisted of the following as of December 31, 2017 and December 31, 2016 (in thousands): Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Balance as of January 1, 2016 $ — $ — $ — Additions — — — Balance as of December 31, 2016 — — — Additions (1) 1,867 — 1,867 Balance as of December 31, 2017 $ 1,867 $ — $ 1,867 (1) Relates to the Reverse Merger (See Note 3. Reverse Merger

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Payments Under Noncancelable Operating Leases	Future payments under noncancelable operating leases having initial or remaining terms of one year or more are as follows for the succeeding fiscal year and thereafter (in thousands): 2018 $ 112 Total minimum lease payments $ 112

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock Option Activity	The following table shows the stock option activity, as follows: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In years) (In thousands) Outstanding as of January 1, 2016 63,627 $ 17.70 Granted 13,054 19.75 Exercised (2,120 ) 0.06 $ 2.1 Forfeited (8,074 ) 19.01 Canceled (6,710 ) 19.75 Outstanding as of December 31, 2016 59,777 18.45 8.8 $ 4.3 Granted 595,800 5.54 Options assumed in the Reverse Merger 37,000 5.84 Exercised — — Forfeited / Canceled (10,377 ) 7.78 Outstanding as of December 31, 2017 682,200 $ 6.65 9.2 $ 8.6 Options vested and expected to vest as of December 31, 2017 682,200 $ 6.65 9.2 $ 8.6 Options exercisable as of December 31, 2017 143,657 $ 8.68 8.7 $ 8.6
Schedule of Stock-Based Compensation Expense Related to Share-Based Awards	Total compensation expense related to all of the Company’s share-based awards for the years ended December 31, 2017 and December 31, 2016 was comprised of the following (in thousands): Year Ended December 31, 2017 2016 Stock-based compensation classified as: Research and development expense $ 69 $ 65 General and administrative expense 510 106 Total stock-based compensation expense $ 579 $ 171
Schedule of Assumptions Used in Black-Scholes Option Pricing Model to Determine the Fair Value of Stock Options Granted	The following table presents the assumptions used in the Black-Scholes option pricing model to determine the fair value of stock options granted in the periods presented Year Ended December 31, 2017 2016 Expected stock price volatility 78% - 86% 93% Risk-free interest rate 1% - 3% 0.95% Expected life of option (in years) 5 - 7 5 - 6 Estimated dividend yield 0% 0%

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Summary of Losses Before Income Taxes and Provision for Income Taxes	Losses before income taxes and the provision for income taxes are as follows (in thousands): Year Ended December 31, 2017 2016 Losses before income taxes: U.S. $ (12,470 ) $ (2,870 ) Non-U.S. (646 ) (2,785 ) Total $ (13,116 ) $ (5,655 )
Reconciliation of U.S. Federal Statutory Income Tax Rate	A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2017 2016 Statutory Federal income tax rate $ (4,460 ) $ (1,923 ) State income taxes, net of Federal tax benefits — — Foreign losses 59 328 Tax credits (2 ) (58 ) Change in statutory rates 1,859 — Stock-based compensation 135 — Permanent items 693 — Other 43 404 Change in valuation allowance 1,673 1,249 Total provision for income taxes $ — $ —
Schedule of Significant Components Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 consisted of the following (in thousands): Year Ended December 31, 2017 2016 Net operating loss carryforwards $ 4,516 $ 2,928 Research and development tax credits 95 58 Accruals and reserves 221 360 Stock compensation 48 — Depreciation and amortization 139 — Other (rate change) — — Total deferred tax assets 5,019 3,346 Less: Valuation allowance (5,019 ) (3,346 ) Net deferred tax assets $ — $ —
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits	The following table reconciles the beginning and ending amounts of unrecognized tax benefits for the years presented (in thousands): Year Ended December 31, 2017 2016 Gross unrecognized tax benefits at the beginning of the year $ — $ — Additions from tax positions taken in the current year 75 — Additions from tax positions taken in prior years 106 — Reductions from tax positions taken in prior years — — Tax settlements — — Gross unrecognized tax benefits at the end of the year $ 181 $ —

Description of Business - Addit

Description of Business - Additional Information (Detail) $ / shares in Units, $ in Millions	May 11, 2017	May 09, 2017$ / sharesshares	Jan. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2017
Description Of Business [Line Items]
Stock issued during period, shares, reverse stock splits		840,115
Common stock and options for common stock reverse stock split description				one for nine
Stock conversion, conversion ratio				0.111111111
Stock Purchase Agreement [Member]
Description Of Business [Line Items]
Purchasers agreed to pay under Stock purchase agreement | $			$ 4
Tokai Pharmaceuticals Inc [Member]
Description Of Business [Line Items]
Number of shares Issued under Stock purchase agreement			400,400
Price of shares Issued under Stock purchase agreement | $ / shares			$ 9.99
Tokai Pharmaceuticals, Inc. [Member]
Description Of Business [Line Items]
Stock issued during period, shares, reverse stock splits		4,027,693
Common stock and options for common stock reverse stock split description	one-for-nine
Price of shares Issued under Stock purchase agreement | $ / shares		$ 5.76
Tokai Pharmaceuticals, Inc. [Member] | Reverse Stock-Split [Member]
Description Of Business [Line Items]
Stock conversion, conversion ratio	0.111111111
Otic Pharma [Member]
Description Of Business [Line Items]
Common stock and options for common stock reverse stock split description				One-for-nine
Percentage of ownership			64.00%
Otic Pharma [Member] | Reverse Stock-Split [Member]
Description Of Business [Line Items]
Stock conversion, conversion ratio	0.111111111	0.111111111

Summary of Significant Accoun30

Summary of Significant Accounting Policies - Additional Information (Detail)	May 11, 2017	May 09, 2017	Dec. 31, 2017USD ($)Segmentshares	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)
Summary Of Significant Accounting Policies [Line Items]
Net loss			$ (13,116,000)	$ (5,655,000)
Cash and cash equivalents and restricted cash			17,303,000	1,117,000	$ 3,109,000
Working capital			17,600,000
Accumulated deficit			$ (27,506,000)	(14,390,000)
Common stock and options for common stock reverse stock split description			one for nine
Stock conversion, conversion ratio			0.111111111
Cash, cash equivalents and restricted cash, maturity period			three months or less
Cash equivalents			$ 0	$ 531,000
Number of operating business segments | Segment			1
Impairment of tangible assets			$ 0
Antidilutive securities excluded from computation of earnings per share, amount | shares			400,735	8,153,389
Stock options exercised | shares			0	2,120
Income tax examination, likelihood of settlement, description			The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.
Income tax examination, likelihood of settlement, percentage			50.00%
Otic Pharma [Member]
Summary Of Significant Accounting Policies [Line Items]
Ownership percentage			100.00%
Common stock and options for common stock reverse stock split description			One-for-nine
Otic Pharma [Member] | Reverse Stock-Split [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock conversion, conversion ratio	0.111111111	0.111111111
Otic Pharma, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Ownership percentage			100.00%

Summary of Significant Accoun31

Summary of Significant Accounting Policies - Schedule of Common Share Equivalents Included from Computation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Net loss	$ (13,116)	$ (5,655)
Interest accumulated on preferred shares and on preferred shares contingently issuable for little or no cash	(328)	(917)
Net loss attributable to stockholders of preferred shares and to stockholders of preferred shares contingently issuable for little or no cash	2,666	5,631
Net loss used in the calculation of basic and diluted loss per share	$ (10,778)	$ (941)
Net loss per share, basic and diluted	$ (2.30)	$ (2.46)
Weighted-average number of common shares	4,677,610	382,747

Summary of Significant Accoun32

Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 17,233,000	$ 1,103,000
Restricted cash, as part of current assets	70,000	14,000
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$ 17,303,000	$ 1,117,000	$ 3,109,000

Reverse Merger - Additional Inf

Reverse Merger - Additional Information (Detail) - USD ($)	May 09, 2017	Jul. 11, 2016	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Common stock, shares issued			7,110,414	394,306
Tokai Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Common stock, shares issued	4,027,693
Merger transaction costs			$ 7,200,000	$ 700,000
Otic Pharma [Member]
Business Acquisition [Line Items]
Options and warrants in exchange, shares	840,115
Otic Pharma [Member] | Convertible Notes [Member]
Business Acquisition [Line Items]
Fair value adjustment of convertible note		$ 517,000

Reverse Merger - Schedule of Pu

Reverse Merger - Schedule of Purchase Price Consideration (Detail) - Tokai Pharmaceuticals, Inc. [Member] $ in Thousands	May 09, 2017USD ($)
Business Acquisition [Line Items]
Total purchase price	$ 23,375
Common Stock [Member]
Business Acquisition [Line Items]
Total purchase price	14,486
Premium Paid [Member]
Business Acquisition [Line Items]
Total purchase price	$ 8,889

Reverse Merger - Schedule of 35

Reverse Merger - Schedule of Purchase Price Consideration (Parenthetical) (Detail) $ / shares in Units, $ in Thousands	May 11, 2017	May 09, 2017USD ($)$ / sharesshares	Dec. 31, 2017USD ($)shares	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)
Business Acquisition [Line Items]
Common stock outstanding | shares			7,110,414	394,306
Common stock reverse stock split description			one for nine
Common stock reverse stock split ratio			0.111111111
Equity | $			$ 19,452	$ (2,702)	$ 2,782
Tokai Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Common stock outstanding | shares		2,515,739
Closing price per share | $ / shares		$ 5.76
Common stock reverse stock split description	one-for-nine
Premium payment over fair value of common stock based on net tangible asset, rate		1.08
Equity | $		$ 21,500
Reverse Stock-Split [Member] | Tokai Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Common stock reverse stock split ratio	0.111111111

Reverse Merger - Summary of All

Reverse Merger - Summary of Allocation of Estimated Purchase Price to Acquired Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	May 09, 2017
Business Acquisition [Line Items]
Goodwill	$ 1,867
Tokai Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Cash, cash equivalents, and restricted cash		$ 23,250
Prepaids and other current assets		1,132
Property and equipment		73
Goodwill		1,867
Accounts payable, accrued expenses and other liabilities		(2,947)
Net assets acquired		$ 23,375

Reverse Merger - Summary of Com

Reverse Merger - Summary of Combined Results of Operations of Company and Tokai, on a Pro Forma Basis (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating expenses
Research and development	$ 2,481	$ 28,215
General and administrative	9,356	14,361
Total operating expenses	11,837	42,576
Loss from operations	(11,837)	(42,576)
Other income, net	45	154
Net loss and other comprehensive loss	$ (11,792)	$ (42,422)
Net loss per share, basic and diluted	$ (2.52)	$ (5.89)
Weighted-average shares outstanding, basic and diluted	4,677,610	7,208,003

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets transfers level 1 to 2	$ 0	$ 0
Financial assets transfers level 2 to 1	0	0
Financial liabilities transfers level 1 to 2	0	0
Financial liabilities transfers level 2 to 1	0	0
Assets measured at fair value		531,000
Liabilities measured at fair value		$ 3,447,000
Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value	0
Liabilities measured at fair value	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Assets
Assets, fair value		$ 531,000
Liabilities
Liability, fair value		3,447,000
Level 1 [Member]
Assets
Assets, fair value		531,000
Level 2 [Member]
Liabilities
Liability, fair value		3,447,000
Fair Value, Measurements, Recurring [Member]
Assets
Assets, fair value	$ 0
Liabilities
Liability, fair value	$ 0
Fair Value, Measurements, Recurring [Member] | Cash Equivalents [Member]
Assets
Assets, fair value		531,000
Fair Value, Measurements, Recurring [Member] | Convertible Notes [Member]
Liabilities
Liability, fair value		3,447,000
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Cash Equivalents [Member]
Assets
Assets, fair value		531,000
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Convertible Notes [Member]
Liabilities
Liability, fair value		$ 3,447,000

Prepaid Expenses Other Assets40

Prepaid Expenses Other Assets Accrued Expenses and Other Liabilities - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Prepaid Expense And Other Assets Current [Abstract]
Prepaid insurance	$ 1,518
Prepaid other	161
Other current assets	18	$ 33
Total prepaid expenses and other current assets	$ 1,697	$ 33

Prepaid Expenses Other Assets41

Prepaid Expenses Other Assets Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued Liabilities And Other Liabilities [Abstract]
Accrued clinical	$ 85
Accrued compensation and related expenses		$ 51
Accrued professional services	158
Accrued vacation	111	50
Accrued other		12
Total accrued expenses and other liabilities	$ 354	$ 113

Goodwill - Schedule of Changes

Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Additions	$ 1,867
Gross Carrying Amount, Ending balance	1,867
Net Carrying Amount, Ending balance	$ 1,867

Convertible Note - Additional I

Convertible Note - Additional Information (Detail) - USD ($)	May 09, 2017	Jul. 11, 2016	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Percentage on discount on common stock		15.00%
Fair value of debt				$ 3,400,000
Convertible note			$ 0	$ 3,447,000
Otic Pharma [Member] | OrbiMed Israel Partners Limited Partnership and Peregrine Management II Ltd [Member]
Debt Instrument [Line Items]
Convertible bridge financing amount		$ 2,900,000
Common Stock [Member] | Otic Pharma [Member]
Debt Instrument [Line Items]
Bridge financing amount conversion	323,261
Series C Preferred Stock [Member] | Otic Pharma [Member]
Debt Instrument [Line Items]
Percentage of original issue price of shares		85.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended				12 Months Ended
	Dec. 31, 2015USD ($)	Nov. 30, 2015USD ($)shares	Sep. 30, 2015ft²	Feb. 28, 2015ft²	Dec. 31, 2017USD ($)AmendmentMilestone	Dec. 31, 2016USD ($)Milestone	Dec. 31, 2015USD ($)
Other Commitments [Line Items]
Rent expense					$ 1,000,000	$ 188,000
Restricted cash, as part of current assets					$ 70,000	$ 14,000
Number of milestones achieved | Milestone					0	0
Indemnification obligations amount					$ 0
Contingent liabilities					$ 0
License Agreement [Member]
Other Commitments [Line Items]
Sales based milestone payment	$ 36,000,000						$ 36,000,000
Royalty payment period	8 years
License Agreement [Member] | Maximum [Member]
Other Commitments [Line Items]
Development and regulatory milestone payments	$ 42,100,000						42,100,000
License Agreement [Member] | Minimum [Member]
Other Commitments [Line Items]
Sales required to achieve milestone payment	1,000,000,000
Office of Chief Scientist of Israeli Ministry of Economy and Industry [Member]
Other Commitments [Line Items]
Grants received	537,000						537,000
Scientific Development and Research, Inc. and Otodyne, Inc. [Member] | License Agreement [Member]
Other Commitments [Line Items]
License fees paid		$ 750,000
Share issued as consideration | shares		9,780
UMB [Member] | Master License Agreement [Member]
Other Commitments [Line Items]
Number of amendments | Amendment					4
Annual maintenance fee					$ 10,000
Percentage of non-royalty sub license income					10.00%
UMB [Member] | Master License Agreement [Member] | IND [Member] | Upon Filing IND Application For Licensed Product [Member]
Other Commitments [Line Items]
Milestone payment					$ 50,000
UMB [Member] | Master License Agreement [Member] | IND [Member] | Upon FDA Approval [Member]
Other Commitments [Line Items]
Milestone payment					100,000
UMB [Member] | Master License Agreement [Member] | Maximum [Member] | Investigational Drug Application Non Prostate Disease [Member]
Other Commitments [Line Items]
Aggregate milestone payments associated with development of licensed product					150,000
UMB [Member] | Master License Agreement [Member] | Minimum [Member]
Other Commitments [Line Items]
Annual royalty					$ 50,000
Johns Hopkins [Member] | License Agreement [Member]
Other Commitments [Line Items]
Percentage of non-royalty sub license income					20.00%
Potential milestone payments under license agreement							700,000
Milestone payments expensed during period							50,000
Additional liabilities for milestone payments	$ 0						0
Johns Hopkins [Member] | License Agreement [Member] | Research and Development [Member]
Other Commitments [Line Items]
Upfront payment							75,000
Johns Hopkins [Member] | License Agreement [Member] | Minimum [Member]
Other Commitments [Line Items]
Annual royalty							$ 30,000
Letter of Credit [Member] | Tokai’s Boston Office [Member]
Other Commitments [Line Items]
Line of credit for benefit of landlord					$ 70,000
Sublease [Member]
Other Commitments [Line Items]
Area of office space | ft²				15,981
Lease commenced date					Apr. 1, 2015
Leases expiration date					Dec. 31, 2016
Leases extension date					Jul. 31, 2018
Additional advance rent paid for lease termination					$ 455,000
Three-year Operating Lease [Member]
Other Commitments [Line Items]
Area of office space | ft²			5,197
Leases expiration date					Aug. 31, 2018
Operating lease expiration term					3 years

Commitments and Contingencies45

Commitments and Contingencies - Schedule of Future Payments Under Noncancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2017USD ($)
Commitments And Contingencies Disclosure [Abstract]
2,018	$ 112
Total minimum lease payments	$ 112

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details)	May 11, 2017	May 09, 2017	Dec. 31, 2017USD ($)Plan$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock compensation plans | Plan			2
Common stock reverse stock split ratio			0.111111111
Common stock reverse stock split description			one for nine
Number of options issued			595,800	13,054
Number of options outstanding			682,200	59,777	63,627
Range of exercise prices | $ / shares			$ 6.65	$ 18.45	$ 17.70
Aggregate intrinsic value of options exercised | $			$ 0	$ 2,100
Unrecognized stock-based compensation expense | $			$ 2,300,000
Unrecognized stock-based compensation expense, recognized over estimated weighted average period			2 years 6 months
Stock-based compensation expense | $			$ 579,000	$ 171,000
Performance-based Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $			$ 80,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of exercise prices | $ / shares			$ 4.21
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of exercise prices | $ / shares			$ 19.75
2014 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional grants made from the plan			3,617,376
Options granted, expiration period			10 years
Common stock, shares authorized for issuance			1,700,000
Maximum annual increase in common stock reserved for future issuance			1,800,000
Additional shares of common stock, percentage			400.00%
2007 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted, expiration period			10 years
Number of options issued			0
Number of options outstanding			0
Otic Pharma [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock compensation plans | Plan			1
Common stock reverse stock split description			One-for-nine
Tokai Pharmaceuticals, Inc. [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reverse stock split description	one-for-nine
Tokai Pharmaceuticals, Inc. [Member] | 2012 Global Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional grants made from the plan			0
Options granted, expiration period			10 years
Reverse Stock-Split [Member] | Otic Pharma [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reverse stock split ratio	0.111111111	0.111111111
Reverse Stock-Split [Member] | Tokai Pharmaceuticals, Inc. [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reverse stock split ratio	0.111111111

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Shares Issuable Under Options
Outstanding, beginning balance	59,777	63,627
Granted	595,800	13,054
Options assumed in the Reverse Merger	37,000
Exercised	0	(2,120)
Forfeited		(8,074)
Canceled		(6,710)
Forfeited / Canceled	(10,377)
Outstanding, ending balance	682,200	59,777
Options vested and expected to vest as of December 31, 2017	682,200
Options exercisable as of December 31, 2017	143,657
Weighted Average Exercise Price
Outstanding, beginning balance	$ 18.45	$ 17.70
Granted	5.54	19.75
Options assumed in the Reverse Merger	5.84
Exercised		0.06
Forfeited		19.01
Canceled		19.75
Forfeited / Canceled	7.78
Outstanding, ending balance	6.65	$ 18.45
Options vested and expected to vest as of December 31, 2017	6.65
Options exercisable as of December 31, 2017	$ 8.68
Weighted Average Remaining Contractual Term (In years)
Outstanding as of December 31, 2016	9 years 2 months 12 days	8 years 9 months 18 days
Options vested and expected to vest as of December 31, 2017	9 years 2 months 12 days
Options exercisable as of December 31, 2017	8 years 8 months 12 days
Aggregate Intrinsic Value
Aggregate intrinsic value, Exercised	$ 0	$ 2,100
Aggregate intrinsic value, Outstanding	8,600	$ 4,300
Options vested and expected to vest as of December 31, 2017	8,600
Options exercisable as of December 31, 2017	$ 8,600

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Related to Share-Based Awards (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 579	$ 171
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	69	65
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 510	$ 106

Stock-Based Compensation - Sc49

Stock-Based Compensation - Schedule of Assumptions Used in Black-Scholes Option Pricing Model to Determine the Fair Value of Stock Options Granted (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Expected stock price volatility		93.00%
Expected stock price volatility, minimum	78.00%
Expected stock price volatility, maximum	86.00%
Risk-free interest rate		0.95%
Risk-free interest rate, minimum	1.00%
Risk-free interest rate, maximum	3.00%
Estimated dividend yield	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Expected life of option (in years)	5 years	5 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Expected life of option (in years)	7 years	6 years

Income Taxes - Summary of Losse

Income Taxes - Summary of Losses Before Income Taxes and Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Losses before income taxes:
U.S.	$ (12,470)	$ (2,870)
Non-U.S.	(646)	(2,785)
Total	$ (13,116)	$ (5,655)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Tax Credit Carryforward [Line Items]
Federal Income tax rate				35.00%
Federal statutory income tax rate			35.00%
Recorded provisional reduction in net deferred tax assets	$ 1,900,000
Net valuation allowance increased			$ 1,700,000
Research and development tax credit carryforwards for federal and state	95,000		$ 95,000	$ 58,000
Period for which cumulative change in ownership annual use net operating loss and research and development credit carryforwards			3 years
Accrued interest and penalties associated with uncertain tax positions	0		$ 0	0
Interest or penalties recorded during the year			$ 0	0
Minimum [Member]
Tax Credit Carryforward [Line Items]
Percentage of cumulative change in ownership			50.00%
Domestic Tax Authority [Member]
Tax Credit Carryforward [Line Items]
Federal net operating loss carryforwards	12,500,000		$ 12,500,000	$ 3,300,000
Net operating loss carryforward expiration period			2,035
Research and development tax credit carryforwards for federal and state	132,000		$ 132,000
Research and development tax credit carryforwards expiration period			2,025
State and Local Jurisdiction [Member]
Tax Credit Carryforward [Line Items]
State net operating loss carryforwards	900,000		$ 900,000
Research and development tax credit carryforwards for federal and state	67,000		$ 67,000
Research and development tax credit carryforwards expiration description			The Company has state research and development credit carryforwards or approximately $67,000 which do not expire.
Israeli Tax Authority [Member] | Foreign Country [Member]
Tax Credit Carryforward [Line Items]
Income tax rate			24.00%	25.00%
Foreign operating losses carryforwards	$ 8,400,000		$ 8,400,000	$ 7,800,000
California [Member] | State and Local Jurisdiction [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carryforward expiration period			2,035
Scenario, Forecast [Member] | Israeli Tax Authority [Member] | Foreign Country [Member]
Tax Credit Carryforward [Line Items]
Income tax rate		23.00%
Scenario Plan [Member]
Tax Credit Carryforward [Line Items]
Federal statutory income tax rate		21.00%

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of U.S. Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Statutory Federal income tax rate	$ (4,460)	$ (1,923)
Foreign losses	59	328
Tax credits	(2)	(58)
Change in statutory rates	1,859
Stock-based compensation	135
Permanent items	693
Other	43	404
Change in valuation allowance	$ 1,673	$ 1,249

Income Taxes - Schedule of Sign

Income Taxes - Schedule of Significant Components Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 4,516	$ 2,928
Research and development tax credits	95	58
Accruals and reserves	221	360
Stock compensation	48
Depreciation and amortization	139
Total deferred tax assets	5,019	3,346
Less: Valuation allowance	$ (5,019)	$ (3,346)

Income Taxes - Reconciliation54

Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Income Tax Disclosure [Abstract]
Additions from tax positions taken in the current year	$ 75
Additions from tax positions taken in prior years	106
Gross unrecognized tax benefits at the end of the year	$ 181

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended			12 Months Ended
	May 31, 2017	Mar. 31, 2017	Feb. 29, 2012	Dec. 31, 2017	Aug. 21, 2017	Jun. 30, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Proceeds from exercise of warrants				$ 3,119,000
Warrant issued				0			8,094,073
Warrant outstanding				0			8,094,073
Underlying shares issued							0
Receipts on account of preferred stock				$ 0			$ 291,000
Proceeds from issuance of common stock				4,750,000
Piper Jaffray & Co. [Member] | Equity Distribution Agreement [Member]
Class of Stock [Line Items]
Equity distribution agreement maximum value of common shares issuable					$ 8,500,000
Proceeds from issuance of common stock				$ 774,000
Common Stock [Member] | Piper Jaffray & Co. [Member] | Equity Distribution Agreement [Member]
Class of Stock [Line Items]
Common stock number of shares issued				167,356
Preferred Stock [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares						311,850
Percentage of annual interest on preferred share original issue price				8.00%
OrbiMed Israel Partners Limited Partnership [Member] | Common Stock [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	51,477
Peregrine Management II Ltd. [Member] | Common Stock [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	10,299
Pontifax [Member] | Common Stock [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	90,804
Preferred Class B [Member] | OrbiMed Israel Partners Limited Partnership [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	6,458,628	978,561
Warrant exercise price	$ 0.41	$ 0.41
Proceeds from exercise of warrants	$ 2,600,000	$ 400,000
Preferred Class B [Member] | Peregrine Management II Ltd. [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	192,454
Warrant exercise price	$ 0.41
Proceeds from exercise of warrants	$ 79,000
Preferred Stock [Member]
Class of Stock [Line Items]
Proceeds from exercise of warrants				$ 3,100,000
Incentive A Shares [Member]
Class of Stock [Line Items]
Bridge financing amount conversion			104,788
Basic earning per share of shares contingently issuable				$ 0

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	Mar. 09, 2018	Dec. 31, 2017
Subsequent Event [Line Items]
Proceeds from issuance of common stock, net		$ 4,750,000
Piper Jaffray & Co. [Member] | Equity Distribution Agreement [Member]
Subsequent Event [Line Items]
Proceeds from issuance of common stock, net		$ 774,000
Piper Jaffray & Co. [Member] | Equity Distribution Agreement [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Common stock number of shares issued		167,356
Subsequent Event [Member] | Piper Jaffray & Co. [Member] | Equity Distribution Agreement [Member]
Subsequent Event [Line Items]
Proceeds from issuance of common stock, net	$ 7,700,000
Subsequent Event [Member] | Piper Jaffray & Co. [Member] | Equity Distribution Agreement [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Common stock number of shares issued	2,296,610