Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Milestone Pharmaceuticals Inc. | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,490,742 | |
Entity Central Index Key | 0001408443 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 110,824 | $ 85,947 |
Short-term investments (note 3) | 35,000 | 29 |
Research and development tax credits receivable | 357 | 290 |
Prepaid expenses | 5,032 | 1,398 |
Other receivables | 338 | 387 |
Total current assets | 151,551 | 88,051 |
Operating lease right-of-use asset (note 2) | 243 | |
Property and equipment | 43 | 30 |
Total assets | 151,837 | 88,081 |
Current liabilities | ||
Accounts payable and accrued liabilities (note 4) | 6,288 | 4,477 |
Current portion of operating lease liabilities (note 2) | 175 | |
Income taxes payable | 56 | |
Total current liabilities | 6,463 | 4,533 |
Operating lease liabilities (note 2) | 61 | |
Total liabilities | 6,524 | 4,533 |
Convertible Preferred Shares | ||
Convertible preferred shares | 138,758 | |
Shareholders' Equity (Deficit) (note 1 and 5) | ||
Common shares, no par value, unlimited shares authorized, 24,490,742 shares issued and outstanding as of June 30, 2019 596,787 shares issued and outstanding as of December 31, 2018 | 226,211 | 2,039 |
Additional paid-in capital | 3,116 | 2,655 |
Cumulative translation adjustment | (1,634) | (1,634) |
Accumulated deficit | (82,380) | (58,270) |
Total shareholders' equity (deficit) | 145,313 | (55,210) |
Total liabilities, convertible preferred shares and shareholders' equity | $ 151,837 | 88,081 |
Class A-1 preferred shares | ||
Convertible Preferred Shares | ||
Convertible preferred shares | 2,027 | |
Class A-2 preferred shares | ||
Convertible Preferred Shares | ||
Convertible preferred shares | 12,643 | |
Class B preferred shares | ||
Convertible Preferred Shares | ||
Convertible preferred shares | 17,198 | |
Class C preferred shares | ||
Convertible Preferred Shares | ||
Convertible preferred shares | 27,236 | |
Class D-1 preferred shares | ||
Convertible Preferred Shares | ||
Convertible preferred shares | 64,719 | |
Class D-2 preferred shares | ||
Convertible Preferred Shares | ||
Convertible preferred shares | $ 14,935 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Common shares, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, Shares authorized (in shares) | Unlimited | Unlimited |
Common shares, Shares issued (in shares) | 24,490,742 | 596,787 |
Common shares, Shares outstanding (in shares) | 24,490,742 | 596,787 |
Class A-1 preferred shares | ||
Preferred shares, par value (in dollars per share) | $ 0 | |
Preferred shares, shares authorized (in shares) | Unlimited | |
Preferred shares, Shares issued (in shares) | 372,211 | |
Class A-2 preferred shares | ||
Preferred shares, par value (in dollars per share) | $ 0 | |
Preferred shares, shares authorized (in shares) | Unlimited | |
Preferred shares, Shares issued (in shares) | 2,443,914 | |
Class B preferred shares | ||
Preferred shares, par value (in dollars per share) | $ 0 | |
Preferred shares, shares authorized (in shares) | Unlimited | |
Preferred shares, Shares issued (in shares) | 2,830,907 | |
Class C preferred shares | ||
Preferred shares, par value (in dollars per share) | $ 0 | |
Preferred shares, shares authorized (in shares) | Unlimited | |
Preferred shares, Shares issued (in shares) | 3,786,878 | |
Class D-1 preferred shares | ||
Preferred shares, par value (in dollars per share) | $ 0 | |
Preferred shares, shares authorized (in shares) | Unlimited | |
Preferred shares, Shares issued (in shares) | 6,893,236 | |
Class D-2 preferred shares | ||
Preferred shares, par value (in dollars per share) | $ 0 | |
Preferred shares, shares authorized (in shares) | Unlimited | |
Preferred shares, Shares issued (in shares) | 1,223,656 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating expenses | ||||
Research and development, net of tax credits (note 7) | $ 10,527 | $ 2,551 | $ 18,292 | $ 5,642 |
General and administrative | 1,641 | 750 | 2,620 | 1,189 |
Commercial | 2,166 | 375 | 4,352 | 1,100 |
Loss from operations | (14,334) | (3,676) | (25,264) | (7,931) |
Interest income, net of bank charges | 672 | 89 | 1,172 | 180 |
Loss and comprehensive loss before income taxes | (13,662) | (3,587) | (24,092) | (7,751) |
Income tax (recovery) expense | (4) | 2 | 18 | 18 |
Net loss and comprehensive loss for the period | $ (13,658) | $ (3,589) | $ (24,110) | $ (7,769) |
Weighted average number of shares outstanding, basic and diluted (note 1) | 13,190,638 | 282,322 | 6,931,611 | 275,450 |
Net loss per share, basic and diluted (note 8) | $ (1.04) | $ (12.71) | $ (3.48) | $ (28.20) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit and Convertible Preferred Shares - USD ($) $ in Thousands | Common shares | Class A-1 preferred shares | Class A-2 preferred shares | Class B preferred shares | Class C preferred shares | Class D-1 preferred shares | Class D-2 preferred shares | Additional paid-in capital | Cumulative translation adjustment | Accumulated deficit | Total |
Balance at the beginning of period at Dec. 31, 2017 | $ 1,228 | $ 2,372 | $ (1,634) | $ (35,085) | |||||||
Balance at the beginning of period (in shares) at Dec. 31, 2017 | 239,990 | ||||||||||
Temporary Equity, Balance at the beginning of period at Dec. 31, 2017 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 0 | $ 0 | |||||
Temporary Equity, Balance at the beginning of period (in shares) at Dec. 31, 2017 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 0 | 0 | |||||
Total Equity, Balance at the beginning of period at Dec. 31, 2017 | $ 25,985 | ||||||||||
Increase (Decrease) in Stockholders' Equity and Temporary Equity [Roll Forward] | |||||||||||
Net loss and comprehensive loss | (4,181) | (4,181) | |||||||||
Exercise of stock options (note 5) | $ 55 | (25) | 30 | ||||||||
Exercise of stock options (note 5) (in shares) | 37,675 | ||||||||||
Share-based compensation (note 5) | 125 | 125 | |||||||||
Balance at the end of period at Mar. 31, 2018 | $ 1,283 | 2,472 | (1,634) | (39,266) | |||||||
Balance at the end of period (in shares) at Mar. 31, 2018 | 277,665 | ||||||||||
Temporary Equity, Balance at the end of period at Mar. 31, 2018 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 0 | $ 0 | |||||
Temporary Equity, Balance at the end of period (in shares) at Mar. 31, 2018 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 0 | 0 | |||||
Total Equity, Balance at the end of period at Mar. 31, 2018 | 21,959 | ||||||||||
Balance at the beginning of period at Dec. 31, 2017 | $ 1,228 | 2,372 | (1,634) | (35,085) | |||||||
Balance at the beginning of period (in shares) at Dec. 31, 2017 | 239,990 | ||||||||||
Temporary Equity, Balance at the beginning of period at Dec. 31, 2017 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 0 | $ 0 | |||||
Temporary Equity, Balance at the beginning of period (in shares) at Dec. 31, 2017 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 0 | 0 | |||||
Total Equity, Balance at the beginning of period at Dec. 31, 2017 | 25,985 | ||||||||||
Increase (Decrease) in Stockholders' Equity and Temporary Equity [Roll Forward] | |||||||||||
Net loss and comprehensive loss | $ (7,769) | ||||||||||
Exercise of stock options (note 5) | (32) | ||||||||||
Exercise of stock options (note 5) (in shares) | 42,781 | ||||||||||
Share-based compensation (note 5) | 204 | ||||||||||
Balance at the end of period at Jun. 30, 2018 | $ 1,297 | 2,544 | (1,634) | (42,855) | |||||||
Balance at the end of period (in shares) at Jun. 30, 2018 | 282,771 | ||||||||||
Temporary Equity, Balance at the end of period at Jun. 30, 2018 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 0 | $ 0 | |||||
Temporary Equity, Balance at the end of period (in shares) at Jun. 30, 2018 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 0 | 0 | |||||
Total Equity, Balance at the end of period at Jun. 30, 2018 | $ 18,456 | ||||||||||
Balance at the beginning of period at Mar. 31, 2018 | $ 1,283 | 2,472 | (1,634) | (39,266) | |||||||
Balance at the beginning of period (in shares) at Mar. 31, 2018 | 277,665 | ||||||||||
Temporary Equity, Balance at the beginning of period at Mar. 31, 2018 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 0 | $ 0 | |||||
Temporary Equity, Balance at the beginning of period (in shares) at Mar. 31, 2018 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 0 | 0 | |||||
Total Equity, Balance at the beginning of period at Mar. 31, 2018 | 21,959 | ||||||||||
Increase (Decrease) in Stockholders' Equity and Temporary Equity [Roll Forward] | |||||||||||
Net loss and comprehensive loss | (3,589) | (3,589) | |||||||||
Exercise of stock options (note 5) | $ 14 | (7) | 7 | ||||||||
Exercise of stock options (note 5) (in shares) | 5,106 | ||||||||||
Share-based compensation (note 5) | 79 | 79 | |||||||||
Balance at the end of period at Jun. 30, 2018 | $ 1,297 | 2,544 | (1,634) | (42,855) | |||||||
Balance at the end of period (in shares) at Jun. 30, 2018 | 282,771 | ||||||||||
Temporary Equity, Balance at the end of period at Jun. 30, 2018 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 0 | $ 0 | |||||
Temporary Equity, Balance at the end of period (in shares) at Jun. 30, 2018 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 0 | 0 | |||||
Total Equity, Balance at the end of period at Jun. 30, 2018 | 18,456 | ||||||||||
Balance at the beginning of period at Dec. 31, 2018 | $ 2,039 | 2,655 | (1,634) | (58,270) | $ (55,210) | ||||||
Balance at the beginning of period (in shares) at Dec. 31, 2018 | 596,787 | 596,787 | |||||||||
Temporary Equity, Balance at the beginning of period at Dec. 31, 2018 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 64,719 | $ 14,935 | $ 138,758 | ||||
Temporary Equity, Balance at the beginning of period (in shares) at Dec. 31, 2018 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 6,893,236 | 1,223,656 | |||||
Total Equity, Balance at the beginning of period at Dec. 31, 2018 | 83,548 | ||||||||||
Increase (Decrease) in Stockholders' Equity and Temporary Equity [Roll Forward] | |||||||||||
Net loss and comprehensive loss | (10,452) | (10,452) | |||||||||
Exercise of stock options (note 5) | $ 51 | (26) | 25 | ||||||||
Exercise of stock options (note 5) (in shares) | 18,153 | ||||||||||
Share-based compensation (note 5) | 211 | 211 | |||||||||
Balance at the end of period at Mar. 31, 2019 | $ 2,090 | 2,840 | (1,634) | (68,722) | |||||||
Balance at the end of period (in shares) at Mar. 31, 2019 | 614,940 | ||||||||||
Temporary Equity, Balance at the end of period at Mar. 31, 2019 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 64,719 | $ 14,935 | |||||
Temporary Equity, Balance at the end of period (in shares) at Mar. 31, 2019 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 6,893,236 | 1,223,656 | |||||
Total Equity, Balance at the end of period at Mar. 31, 2019 | 73,332 | ||||||||||
Balance at the beginning of period at Dec. 31, 2018 | $ 2,039 | 2,655 | (1,634) | (58,270) | $ (55,210) | ||||||
Balance at the beginning of period (in shares) at Dec. 31, 2018 | 596,787 | 596,787 | |||||||||
Temporary Equity, Balance at the beginning of period at Dec. 31, 2018 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 64,719 | $ 14,935 | $ 138,758 | ||||
Temporary Equity, Balance at the beginning of period (in shares) at Dec. 31, 2018 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 6,893,236 | 1,223,656 | |||||
Total Equity, Balance at the beginning of period at Dec. 31, 2018 | 83,548 | ||||||||||
Increase (Decrease) in Stockholders' Equity and Temporary Equity [Roll Forward] | |||||||||||
Net loss and comprehensive loss | $ (24,110) | ||||||||||
Exercise of stock options (note 5) | (26) | ||||||||||
Exercise of stock options (note 5) (in shares) | 18,153 | ||||||||||
Share-based compensation (note 5) | 487 | ||||||||||
Balance at the end of period at Jun. 30, 2019 | $ 226,211 | 3,116 | (1,634) | (82,380) | $ 145,313 | ||||||
Balance at the end of period (in shares) at Jun. 30, 2019 | 24,490,742 | 24,490,742 | |||||||||
Temporary Equity, Balance at the end of period at Jun. 30, 2019 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Temporary Equity, Balance at the end of period (in shares) at Jun. 30, 2019 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total Equity, Balance at the end of period at Jun. 30, 2019 | $ 145,313 | ||||||||||
Balance at the beginning of period at Mar. 31, 2019 | $ 2,090 | 2,840 | (1,634) | (68,722) | |||||||
Balance at the beginning of period (in shares) at Mar. 31, 2019 | 614,940 | ||||||||||
Temporary Equity, Balance at the beginning of period at Mar. 31, 2019 | $ 2,027 | $ 12,643 | $ 17,198 | $ 27,236 | $ 64,719 | $ 14,935 | |||||
Temporary Equity, Balance at the beginning of period (in shares) at Mar. 31, 2019 | 372,211 | 2,443,914 | 2,830,907 | 3,786,878 | 6,893,236 | 1,223,656 | |||||
Total Equity, Balance at the beginning of period at Mar. 31, 2019 | 73,332 | ||||||||||
Increase (Decrease) in Stockholders' Equity and Temporary Equity [Roll Forward] | |||||||||||
Net loss and comprehensive loss | (13,658) | (13,658) | |||||||||
Share-based compensation (note 5) | 276 | 276 | |||||||||
Issuance of common shares (note 5) | $ 85,363 | 85,363 | |||||||||
Issuance of common shares (note 5) (in shares) | 6,325,000 | ||||||||||
Preferred share conversion (note 5) | $ 138,758 | $ (2,027) | $ (12,643) | $ (17,198) | $ (27,236) | $ (64,719) | $ (14,935) | ||||
Preferred share conversion (note 5) | 17,550,802 | (372,211) | (2,443,914) | (2,830,907) | (3,786,878) | (6,893,236) | (1,223,656) | ||||
Balance at the end of period at Jun. 30, 2019 | $ 226,211 | $ 3,116 | $ (1,634) | $ (82,380) | $ 145,313 | ||||||
Balance at the end of period (in shares) at Jun. 30, 2019 | 24,490,742 | 24,490,742 | |||||||||
Temporary Equity, Balance at the end of period at Jun. 30, 2019 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Temporary Equity, Balance at the end of period (in shares) at Jun. 30, 2019 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total Equity, Balance at the end of period at Jun. 30, 2019 | $ 145,313 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net loss for the period | $ (24,110) | $ (7,769) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of property and equipment | 5 | 5 |
Share-based compensation expense (note 5) | 487 | 204 |
Changes in operating assets and liabilities: | ||
Other receivables | 49 | (69) |
Research and development tax credits receivable | (67) | 247 |
Prepaid expenses | (3,634) | (343) |
Operating lease, net | (7) | |
Accounts payable and accrued liabilities | 1,082 | (415) |
Income taxes payable | (56) | (4) |
Net cash used in operating activities | (26,251) | (8,144) |
Investing activities | ||
Acquisition of property and equipment | (18) | (5) |
Acquisition of short-term investments | (35,000) | |
Redemption of short-term investments | 29 | 15,035 |
Net cash (used) provided by investing activities | (34,989) | 15,030 |
Financing activities | ||
Net proceeds from issuance of common shares in Initial Public Offering (note 5) | 86,092 | |
Issuance of common shares on exercise of share options (note 5) | 25 | 37 |
Net cash provided by financing activities | 86,117 | 37 |
Net increase in cash and cash equivalents during the period | 24,877 | 6,923 |
Cash and cash equivalents - Beginning of period | 85,947 | 10,880 |
Cash and cash equivalents - End of period | $ 110,824 | $ 17,803 |
Organization and nature of oper
Organization and nature of operations | 6 Months Ended |
Jun. 30, 2019 | |
Organization and nature of operations | |
Organization and nature of operations | 1 Organization and nature of operations Milestone Pharmaceuticals Inc. (Milestone or the Company) is a Phase 3 clinical-stage biopharmaceutical company incorporated under the Business Corporations Act of Quebec. Milestone is dedicated to developing and commercializing etripamil for the treatment of cardiovascular indications. Etripamil is a novel, potent short-acting calcium channel blocker that the Company designed and is developing as a rapid-onset nasal spray to be administered by the patient to terminate episodes of paroxysmal supraventricular tachycardia as they occur. Reverse stock split On April 26, 2019, the Company’s Board of Directors approved an amendment to the Company’s articles of incorporation to effect a 1-for-5.3193 reverse stock split of the Company’s common shares, convertible preferred shares and the share options of the Company. Accordingly, all common shares, convertible preferred shares, share options and per share amounts in these unaudited interim consolidated financial statements have been retroactively adjusted for all periods presented to give effect to the reverse stock split. The reverse stock split was effected on April 26, 2019. On May 13, 2019, the Company completed its initial public offering ("IPO"), whereby the Company issued 5,500,000 common shares at a public offering price of $15.00 per share. The shares began trading on The Nasdaq Global Select Market on May 9, 2019 . On May 15, 2019, the underwriters fully exercised their option to purchase an additional 825,000 common shares at the public offering price of $15.00 per share. The gross proceeds received by the Company from the offering were $94.9 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. Upon the closing of the IPO, all outstanding shares of Class A1, A2, B, C, D1 and D2 preferred shares converted into 17,550,802 common shares. |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2019 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2 Summary of significant accounting policies a) Basis of consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Milestone Pharmaceuticals USA, Inc. Milestone Pharmaceuticals USA, Inc. began its operations on March 3, 2017. All intercompany transactions and balances have been eliminated. b) Basis of presentation and use of accounting estimates These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and on a basis consistent with those accounting principles followed by the Company and disclosed in note 2 of its most recent annual consolidated financial statements, except for the adoption of ASC 842 “Leases” described in c) below. Certain information, in particular the accompanying notes normally included in the annual financial statements prepared in accordance with US GAAP have been omitted or condensed. Accordingly, the unaudited interim condensed consolidated financial statements do not include all the information required for full annual financial statements, and therefore, should be read in conjunction with the annual consolidated financial statements and the notes thereto for the year ended December 31, 2018. In the opinion of the Company's management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2019, and its results of operations for the three and six months ended June 30, 2019 and 2018. The condensed consolidated balance sheet as of December 31, 2018, was derived from audited annual consolidated financial statements, but does not contain all of the footnote disclosures required by accounting principles generally accepted in the United States of America. These unaudited interim condensed consolidated financial statements are presented in US dollars, which is the Company’s functional currency. The preparation of unaudited interim condensed consolidated financial statements in conformity with US GAAP requires the Company to make estimates and judgments that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements and the reported amounts of revenue and expenses during the period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. Significant estimates and judgments include, but are not limited to, research and development tax credits recoverable, research and development expenses, and share-based compensation. Accordingly, actual results may differ from those estimates and such differences may be material. c) Adoption of New Accounting Standards Effective January 1, 2019, the Company adopted Accounting Standards Update (ASU) No. 2016-02, “Leases”. This ASU requires substantially all leases to be recorded on the balance sheet as right-of-use asset and lease obligations. The Company elected the package of practical expedients permitted under the transition guidance and applied the modified retrospective approach which allowed the Company to carry forward the historical lease classification. Adoption of this standard resulted in the recording of an operating lease right-of-use asset and corresponding operating lease liabilities of $0.3 million. The Company’s condensed consolidated balance sheets for reporting periods beginning on January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported in accordance with previous guidance. The Company does not record an operating lease right-of-use asset and corresponding lease liability for leases with an initial term of twelve months or less and recognizes lease expense for these leases as incurred over the lease term. Upon adoption date, the Company had only one operating lease with a remaining term of less than 12 months for its offices located in Charlotte, NC, which had a termination date of July 31, 2019, and for which the Company was not reasonably certain of renewing the lease. In the second quarter ended June 30, 2019, the lease was extended for an additional month to end on August 31, 2019. The remaining operating lease payments are $12 as of June 30, 2019. Operating lease right-of-use asset and operating lease liabilities are recognized upon the adoption date based on the present value of lease payments over the remaining lease term. The Company does not have a public credit rating and carries no debt. As such, several factors were considered in the determination of its incremental borrowing rate used in determining the present value of lease payments. The Company examined the Bloomberg credit ratings for similar companies; assumed equivalency between the Canadian and US markets for collateralized debt; factored in the cumulative dividend rate on convertible preferred shares; and used short-term rates for the remaining lease term of 23 months. This resulted in an incremental borrowing rate of 8%. Lease expense is recognized on a straight-line basis over the lease term , which is accomplished by increasing the amortization of the right-of-use asset as interest expense on the lease liability declines over the lease term. The Company’s lease arrangement does not have lease and non-lease components which are accounted for separately. The adoption of the accounting standard did not materially impact the Company’s consolidated statement of operations or its consolidated statement of cash flows for the six months ended June 30, 2019. The Company's only one-operating lease right-of-use asset is as follows as at June 30, 2019: Right-of-use adoption date of January 1, 2019 $ 321 Amortization of right-of-use asset during the six-month period ending June 30, 2019 (78) $ 243 Operating lease expenses of $78 are included in general and administrative operating expenses in the consolidated statement loss and comprehensive loss, and within operating activities in the statement of cash flows for the six-month period ended June 30, 2019. The following table summarizes the future minimum lease payments of right-of-use assets operating lease as at June 30, 2019: July 1, 2019 to June 30, 2020 $ 187 July 1, 2020 to November 30, 2020 62 249 Less interest (13) $ 236 As at December 31, 2018, the Company had a lease commitment for its headquarters located in Ville Saint-Laurent, Quebec, expiring on November 30, 2020 with an option to renew for an additional three years and a commitment for its office located in Charlotte, North Carolina, expiring on July 30, 2019. The minimum lease payments as at December 31, 2018 were as follows: Lease Lease operating base rent Total lease expenses expenses commitment 2019 $ 86 $ 130 $ 216 2020 79 85 164 $ 165 $ 215 $ 380 Total rental expense under operating leases for the year ended December 31, 2018 was $232. On June 3, 2019, the Company entered into a new lease arrangement for a three-year term for its office located in Charlotte, NC. The Company will recognize the operating lease right-of-use asset and operating lease liabilities at the lease expected commencement date on September 1, 2019. A security deposit of $19 was recorded in prepaid expenses as at June 30, 2019 related to the new lease arrangement. |
Short-term investments
Short-term investments | 6 Months Ended |
Jun. 30, 2019 | |
Short-term investments | |
Short-term investments | 3 Short-term investments Short-term investments are comprised of term deposits issued in US currency, earning interest ranging from 2.47% to 2.48%, maturing between September 30, 2019 and October 25, 2019. |
Accounts payable and accrued li
Accounts payable and accrued liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Accounts payable and accrued liabilities | |
Accounts payable and accrued liabilities | 4 Accounts payable and accrued liabilities Accounts payable and accrued liabilities comprised the following: June 30, 2019 December 31, 2018 Trade accounts payable $ 3,228 $ 2,603 Accrued research & development liabilities 1,691 1,012 Other accrued liabilities 645 164 Accrued compensation and benefits payable 724 698 $ 6,288 $ 4,477 |
Shareholders' equity (deficit)
Shareholders' equity (deficit) | 6 Months Ended |
Jun. 30, 2019 | |
Shareholders' equity (deficit) | |
Shareholders' equity (deficit) | 5 Shareholders’ equity (deficit) Authorized share capital An unlimited number of common shares, voting and participating, without par value. In May 2019, the Company completed its initial public offering ("IPO"), whereby the Company issued in total 6,325,000 common shares at a public offering price of $15.00 per share (note 1) . The gross proceeds received by the Company from the offering were $94.9 million. Upon the closing of the IPO, all outstanding shares of Class A1, A2, B, C, D1 and D2 preferred shares converted into 17,550,802 common shares. The Company's board of directors adopted and its shareholders approved the 2019 Employee Share Purchase Plan ("ESPP") in April 2019, which became effective on May 8, 2019. The number of common shares initially reserved for issuance under the ESPP was 278,734 common shares. The number of shares reserved for issuance will automatically increase on January 1 of each calendar year, beginning on January 1, 2020 through January 1, 2029, by the lesser of (1) 1% of the total number of shares of the Company's share capital outstanding on the last day of the calendar month before the date of the automatic increase and (2) 487,837 shares; provided that before the date of any such increase, the Company's board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). As of June 30, 2019, no common shares have been issued under the ESPP. The first offering period has not yet been decided by the Company's board of directors. During the six-month period ended June 30, 2019, the Company issued a total of 18,153 common shares [2018 – 42,781] for a total cash consideration of $25 [2018 - $37] pursuant to the exercise of 18,153 stock options [2018 – 42,781] at an average exercise price of US$1.3225 per option [2018 – US$0.8298]. As a result, an amount of $26 [2018 - $32] previously included in additional paid-in capital related to the exercised options has been credited to share capital and deducted from additional paid-in capital. Additional paid-in capital Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Opening balance $ 2,840 $ 2,472 $ 2,655 $ 2,372 Share-based compensation expense 276 79 487 204 Exercise of stock options — (7) (26) (32) Closing balance $ 3,116 $ 2,544 $ 3,116 $ 2,544 Share-based compensation The Company's board of directors adopted and its shareholders approved the 2019 Equity Incentive Plan (the "2019 Plan") in April 2019, which became effective on May 8, 2019 in connection with the IPO. Initially, the maximum number of the Company's common shares that may be issued under the 2019 Plan is 4,710,564 shares, which is the sum of (1) 1,923,501 new shares, plus (2) the number of shares (not to exceed 2,787,063 shares) (i) that remained available for the issuance of awards under the Company's Stock Option Plan (the "2011 Plan") at the time the 2019 Plan became effective, and (ii) any shares subject to outstanding options or other share awards that were granted under the 2011 Plan that terminate, expire or are otherwise forfeited, reacquired or withheld. In addition, the number of the Company's common shares reserved for issuance under the 2019 Plan will automatically increase on January 1 of each calendar year, starting on January 1, 2020 through January 1, 2029, in an amount equal to 4% of the total number of the Company's capital shares outstanding on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by the Company's board of directors. As of May 8, 2019, the Company's 2011 Plan was terminated and no further option grants will be made under the 2011 Plan. On October 15, 2018, the Company amended for a third time and restated the 2011 Plan whereby options to purchase common shares of the Company’s shares may be granted to directors, officers, employees, consultants and members of the scientific advisory board. The 2011 Plan was administered by the Board of Directors. The Board of Directors determined the number of options to be granted, the vesting period and the exercise price of new options. It was the Company’s policy to establish the exercise price at an amount that approximated the fair value of the underlying shares on the date of grant as determined by the Board of Directors. Under the 2011 Plan, unless otherwise decided by the Board of Directors, options vest and are exercisable as follows: 25% are exercisable from the first anniversary of grant date and 2.0833% become available at the end of each month after the first anniversary of grant date. The 2011 Plan was terminated as of May 8, 2019 and a total of 2,393,631 options are still outstanding at June 30, 2019. As of June 30, 2019, there were 2,322,573 options available for awards under the 2019 Plan, of which 46,998 were granted, leaving 2,275,575 available for future grants. The total outstanding and exercisable options from the 2011 Plan and 2019 Plan as at June 30 were as follows: 2019 2018 Weighted Weighted average average Number exercise Number exercise of shares price of shares price Outstanding at beginning of period 2,295,045 $ 1.7714 968,782 $ 1.1330 Forfeited/cancelled — — (12,198) 1.0958 Granted – 2011 Plan 116,739 9.4152 887,432 1.5400 Granted – 2019 Plan 46,998 15.0000 — — Exercised (18,153) 1.3225 (42,781) 0.8298 Outstanding at end of period 2,440,629 $ 2.3963 1,801,235 $ 1.3405 Exercisable at end of period 771,478 $ 1.3777 563,565 $ 1.0266 As of June 30, 2019, the weighted average remaining contractual life was 8.3 years [2018 – 8.6 years]. The weighted average remaining contractual life was 6.6 years for vested options [2018 – 6.9 years]. There were no options forfeited for the six-month period ended June 30, 2019 (2018 –12,198). Options granted are valued using the Black-Scholes option pricing model. Amortization of the fair value of the options over vesting years has been expensed and credited to additional paid-in capital in shareholders’ equity (deficit). The weighted average fair values of options granted in the six-month period ended June 30, 2019 was $7.8518 per share [2018 - $1.1114]. Share-based compensation expense recognized for the six-month period ended June 30, 2019 was $487 [2018 - $204]. As of June 30, 2019, there was $3,434 [2018 - $1,360] of total unrecognized compensation cost, related to non-vested share options, which is expected to be recognized over a remaining weighted average vesting period of 2.9 years [2018 – 3.2 years]. The non-vested options as at June 30 were as follows: 2019 2018 Weighted Weighted Number average Number average of options fair value of options fair value Non-vested at beginning of period 1,706,303 $ 1.3458 451,113 $ 1.0266 Forfeited/cancelled — — (12,198) 1.0639 Granted – 2011 Plan 116,739 6.6491 887,432 1.1114 Granted – 2019 Plan 46,998 10.7731 — — Vested, outstanding (200,889) 1.1787 (88,600) 1.0958 Non-vested share options at end of period 1,669,151 $ 2.0041 1,237,747 $ 1.0798 The fair value of share-based payment transaction is measured using Black-Scholes valuation model. This model also requires assumptions, including expected option life, volatility, risk-free interest rate and dividend yield, which greatly affect the calculated values. The fair value of options granted was estimated using the Black-Scholes option pricing model, resulting in the following weighted average assumptions for the options granted for the three-month and six-month periods ended June 30: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Exercise price $ 12.05 $ 1.54 $ 11.02 $ 1.54 Share price $ 12.05 $ 1.54 $ 11.02 $ 1.54 Volatility 82 % 82 % 81 % 82 % Risk-free interest rate 2.36 % 2.73 % 2.41 % 2.77 % Expected life 6.25 years 6.25 years 6.25 years 6.25 years Dividend % % % % Expected volatility is determined using comparable companies for which the information is publicly available. The risk-free interest rate is determined based on the US sovereign rates benchmark in effect at the time of grant with a remaining term equal to the expected life of the option. Expected option life is determined based on the simplified method as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The simplified method is an average of the contractual term of the options and its ordinary vesting period. Dividend yield is based on the share option’s exercise price and expected annual dividend rate at the time of grant. The Company recognized share-based compensation expense as follows for the three and six months ended June 30: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Administration $ 133 $ 21 $ 203 $ 50 Research and development 109 49 234 125 Commercial activities 34 10 50 29 $ 276 $ 80 $ 487 $ 204 |
Net loss per share
Net loss per share | 6 Months Ended |
Jun. 30, 2019 | |
Net loss per share | |
Net loss per share | 6 Net loss per share Basic and diluted net loss per common share is determined by dividing net loss applicable to common shareholders by the weighted average number of common shares outstanding during the period. The outstanding convertible preferred shares and share-based compensation have been excluded from the calculation because their effects would be anti-dilutive. Therefore, the weighted average number of shares used to calculate both basic and diluted loss per share are the same. The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as of June 30, as they would be anti-dilutive: 2019 2018 Convertible preferred shares — 9,433,910 Share options and unvested restricted share awards 2,440,629 1,801,235 2,440,629 11,235,145 Amounts in the table above reflect the common share equivalents of the noted instruments. |
Government assistance
Government assistance | 6 Months Ended |
Jun. 30, 2019 | |
Government assistance | |
Government assistance | 7 Government assistance The Company incurred research and development expenditures that are eligible for investment tax credits. The investment tax credits recorded are based on management’s estimates of amounts expected to be recovered and are subject to audit by the taxation authorities. These amounts have been recorded as a reduction of research and development expenditures for an amount of $171 for the six-month period ended June 30, 2019 [2018 - $148]. |
Fair value of financial instrum
Fair value of financial instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair value of financial instruments | |
Fair value of financial instruments | 8 Fair value of financial instruments Pursuant to the accounting guidance for fair value measurement and its subsequent updates, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a hierarchy for inputs used in measuring fair value that minimizes the use of unobservable inputs by requiring the use of observable market data when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on active market data. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. The fair value hierarchy is broken down into the three input levels summarized below: Level 1 – Valuations are based on quoted prices in active markets for identical assets or liabilities and readily accessible by the Company at the reporting date. Level 2 – Valuations based on inputs other than the quoted prices in active markets that are observable either directly or indirectly in active markets. Level 3 – Valuations based on unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. The Company has determined that the carrying values of its short-term financial assets and liabilities approximate their fair value given the short-term nature of these instruments. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of significant accounting policies | |
Basis of consolidation | a) Basis of consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Milestone Pharmaceuticals USA, Inc. Milestone Pharmaceuticals USA, Inc. began its operations on March 3, 2017. All intercompany transactions and balances have been eliminated. |
Basis of presentation and use of accounting estimates | b) Basis of presentation and use of accounting estimates These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and on a basis consistent with those accounting principles followed by the Company and disclosed in note 2 of its most recent annual consolidated financial statements, except for the adoption of ASC 842 “Leases” described in c) below. Certain information, in particular the accompanying notes normally included in the annual financial statements prepared in accordance with US GAAP have been omitted or condensed. Accordingly, the unaudited interim condensed consolidated financial statements do not include all the information required for full annual financial statements, and therefore, should be read in conjunction with the annual consolidated financial statements and the notes thereto for the year ended December 31, 2018. In the opinion of the Company's management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2019, and its results of operations for the three and six months ended June 30, 2019 and 2018. The condensed consolidated balance sheet as of December 31, 2018, was derived from audited annual consolidated financial statements, but does not contain all of the footnote disclosures required by accounting principles generally accepted in the United States of America. These unaudited interim condensed consolidated financial statements are presented in US dollars, which is the Company’s functional currency. The preparation of unaudited interim condensed consolidated financial statements in conformity with US GAAP requires the Company to make estimates and judgments that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements and the reported amounts of revenue and expenses during the period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. Significant estimates and judgments include, but are not limited to, research and development tax credits recoverable, research and development expenses, and share-based compensation. Accordingly, actual results may differ from those estimates and such differences may be material. |
Adoption of New Accounting Standards | c) Adoption of New Accounting Standards Effective January 1, 2019, the Company adopted Accounting Standards Update (ASU) No. 2016-02, “Leases”. This ASU requires substantially all leases to be recorded on the balance sheet as right-of-use asset and lease obligations. The Company elected the package of practical expedients permitted under the transition guidance and applied the modified retrospective approach which allowed the Company to carry forward the historical lease classification. Adoption of this standard resulted in the recording of an operating lease right-of-use asset and corresponding operating lease liabilities of $0.3 million. The Company’s condensed consolidated balance sheets for reporting periods beginning on January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported in accordance with previous guidance. The Company does not record an operating lease right-of-use asset and corresponding lease liability for leases with an initial term of twelve months or less and recognizes lease expense for these leases as incurred over the lease term. Upon adoption date, the Company had only one operating lease with a remaining term of less than 12 months for its offices located in Charlotte, NC, which had a termination date of July 31, 2019, and for which the Company was not reasonably certain of renewing the lease. In the second quarter ended June 30, 2019, the lease was extended for an additional month to end on August 31, 2019. The remaining operating lease payments are $12 as of June 30, 2019. Operating lease right-of-use asset and operating lease liabilities are recognized upon the adoption date based on the present value of lease payments over the remaining lease term. The Company does not have a public credit rating and carries no debt. As such, several factors were considered in the determination of its incremental borrowing rate used in determining the present value of lease payments. The Company examined the Bloomberg credit ratings for similar companies; assumed equivalency between the Canadian and US markets for collateralized debt; factored in the cumulative dividend rate on convertible preferred shares; and used short-term rates for the remaining lease term of 23 months. This resulted in an incremental borrowing rate of 8%. Lease expense is recognized on a straight-line basis over the lease term , which is accomplished by increasing the amortization of the right-of-use asset as interest expense on the lease liability declines over the lease term. The Company’s lease arrangement does not have lease and non-lease components which are accounted for separately. The adoption of the accounting standard did not materially impact the Company’s consolidated statement of operations or its consolidated statement of cash flows for the six months ended June 30, 2019. The Company's only one-operating lease right-of-use asset is as follows as at June 30, 2019: Right-of-use adoption date of January 1, 2019 $ 321 Amortization of right-of-use asset during the six-month period ending June 30, 2019 (78) $ 243 Operating lease expenses of $78 are included in general and administrative operating expenses in the consolidated statement loss and comprehensive loss, and within operating activities in the statement of cash flows for the six-month period ended June 30, 2019. The following table summarizes the future minimum lease payments of right-of-use assets operating lease as at June 30, 2019: July 1, 2019 to June 30, 2020 $ 187 July 1, 2020 to November 30, 2020 62 249 Less interest (13) $ 236 As at December 31, 2018, the Company had a lease commitment for its headquarters located in Ville Saint-Laurent, Quebec, expiring on November 30, 2020 with an option to renew for an additional three years and a commitment for its office located in Charlotte, North Carolina, expiring on July 30, 2019. The minimum lease payments as at December 31, 2018 were as follows: Lease Lease operating base rent Total lease expenses expenses commitment 2019 $ 86 $ 130 $ 216 2020 79 85 164 $ 165 $ 215 $ 380 Total rental expense under operating leases for the year ended December 31, 2018 was $232. On June 3, 2019, the Company entered into a new lease arrangement for a three-year term for its office located in Charlotte, NC. The Company will recognize the operating lease right-of-use asset and operating lease liabilities at the lease expected commencement date on September 1, 2019. A security deposit of $19 was recorded in prepaid expenses as at June 30, 2019 related to the new lease arrangement. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of significant accounting policies | |
Schedule of operating lease right-of-use asset | The Company's only one-operating lease right-of-use asset is as follows as at June 30, 2019: Right-of-use adoption date of January 1, 2019 $ 321 Amortization of right-of-use asset during the six-month period ending June 30, 2019 (78) $ 243 |
Schedule of future minimum lease payments of right-of-use assets operating lease | The following table summarizes the future minimum lease payments of right-of-use assets operating lease as at June 30, 2019: July 1, 2019 to June 30, 2020 $ 187 July 1, 2020 to November 30, 2020 62 249 Less interest (13) $ 236 |
Schedule of minimum lease payments | The minimum lease payments as at December 31, 2018 were as follows: Lease Lease operating base rent Total lease expenses expenses commitment 2019 $ 86 $ 130 $ 216 2020 79 85 164 $ 165 $ 215 $ 380 |
Accounts payable and accrued _2
Accounts payable and accrued liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounts payable and accrued liabilities | |
Schedule of accounts payable and accrued liabilities | June 30, 2019 December 31, 2018 Trade accounts payable $ 3,228 $ 2,603 Accrued research & development liabilities 1,691 1,012 Other accrued liabilities 645 164 Accrued compensation and benefits payable 724 698 $ 6,288 $ 4,477 |
Shareholders' equity (deficit)
Shareholders' equity (deficit) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Shareholders' equity (deficit) | |
Schedule of additional paid-in capital | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Opening balance $ 2,840 $ 2,472 $ 2,655 $ 2,372 Share-based compensation expense 276 79 487 204 Exercise of stock options — (7) (26) (32) Closing balance $ 3,116 $ 2,544 $ 3,116 $ 2,544 |
Schedule of outstanding and exercisable options | The total outstanding and exercisable options from the 2011 Plan and 2019 Plan as at June 30 were as follows: 2019 2018 Weighted Weighted average average Number exercise Number exercise of shares price of shares price Outstanding at beginning of period 2,295,045 $ 1.7714 968,782 $ 1.1330 Forfeited/cancelled — — (12,198) 1.0958 Granted – 2011 Plan 116,739 9.4152 887,432 1.5400 Granted – 2019 Plan 46,998 15.0000 — — Exercised (18,153) 1.3225 (42,781) 0.8298 Outstanding at end of period 2,440,629 $ 2.3963 1,801,235 $ 1.3405 Exercisable at end of period 771,478 $ 1.3777 563,565 $ 1.0266 |
Schedule of non-vested share options activity | The non-vested options as at June 30 were as follows: 2019 2018 Weighted Weighted Number average Number average of options fair value of options fair value Non-vested at beginning of period 1,706,303 $ 1.3458 451,113 $ 1.0266 Forfeited/cancelled — — (12,198) 1.0639 Granted – 2011 Plan 116,739 6.6491 887,432 1.1114 Granted – 2019 Plan 46,998 10.7731 — — Vested, outstanding (200,889) 1.1787 (88,600) 1.0958 Non-vested share options at end of period 1,669,151 $ 2.0041 1,237,747 $ 1.0798 |
Schedule of weighted average assumptions for the options granted | The fair value of options granted was estimated using the Black-Scholes option pricing model, resulting in the following weighted average assumptions for the options granted for the three-month and six-month periods ended June 30: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Exercise price $ 12.05 $ 1.54 $ 11.02 $ 1.54 Share price $ 12.05 $ 1.54 $ 11.02 $ 1.54 Volatility 82 % 82 % 81 % 82 % Risk-free interest rate 2.36 % 2.73 % 2.41 % 2.77 % Expected life 6.25 years 6.25 years 6.25 years 6.25 years Dividend % % % % |
Schedule of share-based compensation expense | The Company recognized share-based compensation expense as follows for the three and six months ended June 30: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Administration $ 133 $ 21 $ 203 $ 50 Research and development 109 49 234 125 Commercial activities 34 10 50 29 $ 276 $ 80 $ 487 $ 204 |
Net loss per share (Tables)
Net loss per share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net loss per share | |
Schedule of potentially dilutive securities excluded from the computation of diluted weighted average shares | The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as of June 30, as they would be anti-dilutive: 2019 2018 Convertible preferred shares — 9,433,910 Share options and unvested restricted share awards 2,440,629 1,801,235 2,440,629 11,235,145 |
Organization and nature of op_2
Organization and nature of operations (Details) $ / shares in Units, $ in Millions | May 15, 2019$ / sharesshares | May 13, 2019$ / sharesshares | Apr. 26, 2019 | May 31, 2019USD ($)$ / sharesshares |
Organization and nature of operations | ||||
Reverse stock split | 0.1880 | |||
Initial public offering | Common shares | ||||
Organization and nature of operations | ||||
Number of shares issued during the period | 5,500,000 | 6,325,000 | ||
Share Price | $ / shares | $ 15 | $ 15 | ||
Gross proceeds of initial public offering | $ | $ 94.9 | |||
Number of preferred shares converted in to common shares | 17,550,802 | |||
Underwriters option | Common shares | ||||
Organization and nature of operations | ||||
Number of shares issued during the period | 825,000 | |||
Share Price | $ / shares | $ 15 |
Summary of significant accoun_4
Summary of significant accounting policies - Adoption of ASU 2016-02 (Details) $ in Thousands | Jan. 01, 2019USD ($)lease | Jun. 30, 2019USD ($) |
Adoption of New Accounting Standards | ||
Operating lease right-of use asset | $ 321 | $ 243 |
Operating lease liabilities | 236 | |
Carrying value of debt | $ 0 | |
Remaining lease term | 23 months | |
Incremental borrowing rate | 8.00% | |
Charlotte, NC | ||
Adoption of New Accounting Standards | ||
Remaining operating lease payments | $ 12 | |
ASU 2016-02, Leases | ||
Adoption of New Accounting Standards | ||
Election of practical expedients package | true | |
ASU 2016-02, Leases | Charlotte, NC | ||
Adoption of New Accounting Standards | ||
Short-term lease commitment | true | |
Number of short-term operating leases | lease | 1 | |
ASU 2016-02, Leases | Adjustment | ||
Adoption of New Accounting Standards | ||
Operating lease right-of use asset | $ 300 | |
Operating lease liabilities | $ 300 |
Summary of significant accoun_5
Summary of significant accounting policies - Changes in ROU assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jan. 01, 2019 | |
Changes in operating lease right-of-use asset | ||
Amortization of right-of-use asset during the six-month period ending June 30, 2019 | $ (78) | |
Operating lease right-of use asset | 243 | $ 321 |
Operating lease expenses | $ 78 |
Summary of significant accoun_6
Summary of significant accounting policies - Future minimum lease payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Future minimum lease payments | |
July 1, 2019 to June 30, 2020 | $ 187 |
July 1, 2020 to November 30, 2020 | 62 |
Total future minimum lease payments | 249 |
Less interest | (13) |
Operating lease liability | $ 236 |
Summary of significant accoun_7
Summary of significant accounting policies - Minimum lease payments under ASU 840 (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Lease operating expenses | |
2019 | $ 86 |
2020 | 79 |
Total | 165 |
Lease base rent expenses | |
2019 | 130 |
2020 | 85 |
Total | 215 |
Total lease commitment | |
2019 | 216 |
2020 | 164 |
Total | 380 |
Rental expense under operating leases | $ 232 |
Ville Saint-Laurent, Quebec | |
Operating leases | |
Additional term (in years) | 3 years |
Summary of significant accoun_8
Summary of significant accounting policies - New lease arrangement (Details) - Charlotte, NC - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 03, 2019 |
Facility leases | ||
Operating lease, term | 3 years | |
Security deposit | $ 19 |
Short-term investments (Details
Short-term investments (Details) - Term Deposits | 6 Months Ended |
Jun. 30, 2019 | |
Maximum | |
Net Investment Income [Line Items] | |
Earning interest rate | 2.48% |
Minimum | |
Net Investment Income [Line Items] | |
Earning interest rate | 2.47% |
Accounts payable and accrued _3
Accounts payable and accrued liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts payable and accrued liabilities | ||
Trade accounts payable | $ 3,228 | $ 2,603 |
Accrued research & development liabilities | 1,691 | 1,012 |
Other accrued liabilities | 645 | 164 |
Accrued compensation and benefits payable | 724 | 698 |
Accounts payable and accrued liabilities | $ 6,288 | $ 4,477 |
Shareholders' equity (deficit_2
Shareholders' equity (deficit) - Authorized share capital (Details) - USD ($) $ / shares in Units, $ in Thousands | May 13, 2019 | May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | May 08, 2019 |
Authorized share capital | |||||
Number of shares options exercised | 18,153 | 42,781 | |||
Average exercise price (in dollar per share) | $ 1.3225 | $ 0.8298 | |||
Amount reclassified from APIC to share capital | $ (26) | $ (32) | |||
Initial public offering | Common shares | |||||
Authorized share capital | |||||
Number of shares issued during the period | 5,500,000 | 6,325,000 | |||
Share Price | $ 15 | $ 15 | |||
Gross proceeds of initial public offering | $ 94,900 | ||||
Number of preferred shares converted in to common shares | 17,550,802 | ||||
Options | Common shares | |||||
Authorized share capital | |||||
Cash consideration | $ 25 | $ 37 | |||
Number of shares issued upon exercise of options | 18,153 | 42,781 | |||
Number of shares options exercised | 18,153 | 42,781 | |||
Employee Share Purchase Plan 2019 | Common shares | |||||
Authorized share capital | |||||
Number of common shares initially reserved for issuance | 278,734 | ||||
Percentage of shares reserved for future issuance | 1.00% | ||||
Additional shares reserved for issuance | 487,837 | ||||
Number of shares issued under the ESPP | 0 |
Shareholders' equity (deficit_3
Shareholders' equity (deficit) - Additional paid-in capital (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Additional paid-in capital | ||||||
Balance at the beginning of period | $ (55,210) | $ (55,210) | ||||
Share-based compensation expense | $ 276 | 211 | $ 79 | $ 125 | ||
Exercise of stock options | 25 | 7 | 30 | |||
Balance at the end of period | 145,313 | 145,313 | ||||
Additional paid-in capital | ||||||
Additional paid-in capital | ||||||
Balance at the beginning of period | 2,840 | 2,655 | 2,472 | 2,372 | 2,655 | $ 2,372 |
Share-based compensation expense | 276 | 211 | 79 | 125 | 487 | 204 |
Exercise of stock options | (26) | (7) | (25) | (26) | (32) | |
Balance at the end of period | $ 3,116 | $ 2,840 | $ 2,544 | $ 2,472 | $ 3,116 | $ 2,544 |
Shareholders' equity (deficit_4
Shareholders' equity (deficit) - Share-based compensation -Summary (Details) - shares | 6 Months Ended | |||||
Jun. 30, 2019 | May 08, 2019 | May 07, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based compensation | ||||||
Options outstanding | 2,440,629 | 2,295,045 | 1,801,235 | 968,782 | ||
2011 Plan | ||||||
Share-based compensation | ||||||
Total number of shares available for awards under the plan | 2,787,063 | |||||
Options outstanding | 2,393,631 | |||||
2011 Plan | Options | Share-based Compensation Award, Tranche One | ||||||
Share-based compensation | ||||||
Percentage of shares to vest | 25.00% | |||||
2011 Plan | Options | Share-based Compensation Award, Tranche Two | ||||||
Share-based compensation | ||||||
Percentage of shares to vest | 2.0833% | |||||
2019 Plan | ||||||
Share-based compensation | ||||||
Total number of shares available for awards under the plan | 4,710,564 | |||||
Number of new shares available for awards under the plan | 1,923,501 | |||||
Percentage of shares reserved for future issuance | 4.00% | |||||
2019 Plan | Options | ||||||
Share-based compensation | ||||||
Total number of shares available for awards under the plan | 2,322,573 | |||||
Aggregate number of shares granted | 46,998 | |||||
Available for future grants | 2,275,575 |
Shareholders' equity (deficit_5
Shareholders' equity (deficit) - Share-based compensation - Outstanding and exercisable options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Outstanding and exercisable options, number of shares | ||||
Outstanding at beginning of period | 2,295,045 | 968,782 | ||
Forfeited/cancelled | (12,198) | |||
Exercised | (18,153) | (42,781) | ||
Outstanding at end of period | 2,440,629 | 1,801,235 | 2,440,629 | 1,801,235 |
Exercisable at end of period | 771,478 | 563,565 | 771,478 | 563,565 |
Outstanding and exercisable options, weighted average exercise price | ||||
Outstanding at beginning of period | $ 1.7714 | $ 1.1330 | ||
Forfeited/expired | 1.0958 | |||
Granted | 7.8518 | 1.1114 | ||
Exercised | 1.3225 | 0.8298 | ||
Outstanding at end of period | $ 2.3963 | $ 1.3405 | 2.3963 | 1.3405 |
Exercisable at end of period | $ 1.3777 | $ 1.0266 | $ 1.3777 | $ 1.0266 |
Weighted average remaining contractual life (in years) | 8 years 3 months 18 days | 8 years 7 months 6 days | ||
Weighted average remaining contractual life for vested options (in years) | 6 years 7 months 6 days | 6 years 10 months 24 days | ||
Options forfeited | 0 | 12,198 | ||
Share-based compensation expense | $ 276 | $ 80 | $ 487 | $ 204 |
Unrecognized compensation cost | $ 3,434 | $ 1,360 | $ 3,434 | $ 1,360 |
Expected period for recognition | 2 years 10 months 24 days | 3 years 2 months 12 days | ||
2011 Plan | ||||
Outstanding and exercisable options, number of shares | ||||
Granted | 116,739 | 887,432 | ||
Outstanding at end of period | 2,393,631 | 2,393,631 | ||
Outstanding and exercisable options, weighted average exercise price | ||||
Granted | $ 9.4152 | $ 1.5400 | ||
2019 Plan | ||||
Outstanding and exercisable options, number of shares | ||||
Granted | 46,998 | |||
Outstanding and exercisable options, weighted average exercise price | ||||
Granted | $ 15 |
Shareholders' equity (deficit_6
Shareholders' equity (deficit) - Share-based compensation - Non-vested share options (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of options | ||
Non-vested at beginning of period | 1,706,303 | 451,113 |
Forfeited/expired | (12,198) | |
Vested, outstanding | (200,889) | (88,600) |
Non-vested share options at end of period | 1,669,151 | 1,237,747 |
Weighted average fair value | ||
Non-vested at beginning of period | $ 1.3458 | $ 1.0266 |
Forfeited/expired | 1.0639 | |
Vested, outstanding | 1.1787 | 1.0958 |
Non-vested at end of period | $ 2.0041 | $ 1.0798 |
2011 Plan | ||
Number of options | ||
Granted | 116,739 | 887,432 |
Weighted average fair value | ||
Granted | $ 6.6491 | $ 1.1114 |
2019 Plan | ||
Number of options | ||
Granted | 46,998 | |
Weighted average fair value | ||
Granted | $ 10.7731 |
Shareholders' equity (deficit_7
Shareholders' equity (deficit) - Share-based compensation - Weighted average assumptions for the options granted (Details) - Options - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based compensation | ||||
Exercise price (in dollars per share) | $ 12.05 | $ 1.54 | $ 11.02 | $ 1.54 |
Share price (in dollars per share) | $ 12.05 | $ 1.54 | $ 11.02 | $ 1.54 |
Volatility (as a percent) | 82.00% | 82.00% | 81.00% | 82.00% |
Risk-free interest rate (as a percent) | 2.36% | 2.73% | 2.41% | 2.77% |
Expected life (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Dividend (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% |
Shareholders' equity (deficit_8
Shareholders' equity (deficit) - Share-based compensation - Recognized share-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based compensation | ||||
Share-based compensation expense | $ 276 | $ 80 | $ 487 | $ 204 |
Administration | ||||
Share-based compensation | ||||
Share-based compensation expense | 133 | 21 | 203 | 50 |
Research and development | ||||
Share-based compensation | ||||
Share-based compensation expense | 109 | 49 | 234 | 125 |
Commercial activities | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 34 | $ 10 | $ 50 | $ 29 |
Net loss per share (Details)
Net loss per share (Details) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net loss per share | ||
Potentially dilutive securities excluded from the computation of diluted weighted average shares outstanding | 2,440,629 | 11,235,145 |
Convertible preferred shares | ||
Net loss per share | ||
Potentially dilutive securities excluded from the computation of diluted weighted average shares outstanding | 9,433,910 | |
Share options and unvested restricted share awards | ||
Net loss per share | ||
Potentially dilutive securities excluded from the computation of diluted weighted average shares outstanding | 2,440,629 | 1,801,235 |
Government assistance (Details)
Government assistance (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Government assistance | ||
Research and development expenditures eligible for investment tax credits | $ 171 | $ 148 |