Kura Oncology (KURA) 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 02, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	KURA
Entity Registrant Name	Kura Oncology, Inc.
Entity Central Index Key	1,422,143
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		21,367,747

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	[1]
Current assets:
Cash and cash equivalents	$ 6,783	$ 15,443
Short-term investments	67,785	70,303
Accounts receivable, related party	261	430
Prepaid expenses and other current assets	886	693
Total current assets	75,715	86,869
Property and equipment, net	47	71
Other long-term assets	542	319
Total assets	76,304	87,259
Current liabilities:
Accounts payable and accrued expenses	4,184	4,118
Accounts payable and accrued expenses, related party	1,088	937
Total current liabilities	5,272	5,055
Long-term debt, net	7,308
Other long-term liabilities	58	101
Total liabilities	12,638	5,156
Stockholders' equity:
Preferred stock, $0.0001 par value; 10,000 shares authorized; no shares issued and outstanding
Common stock, $0.0001 par value; 200,000 shares authorized; 21,368 and 21,371 shares issued; and 19,045 and 18,138 shares outstanding as of September 30, 2016 and December 31, 2015, respectively, excluding 2,323 and 3,233 shares subject to repurchase as of September 30, 2016 and December 31, 2015, respectively	2	2
Additional paid-in capital	110,162	108,484
Accumulated other comprehensive income (loss)	11	(87)
Accumulated deficit	(46,509)	(26,296)
Total stockholders' equity	63,666	82,103
Total liabilities and stockholders' equity	$ 76,304	$ 87,259
[1]	The balance sheet data at December 31, 2015 has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.

Condensed Balance Sheets (Unau3

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015	[1]
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	21,368,000	21,371,000
Common stock, shares outstanding	19,045,000	18,138,000
Number of shares, subject to repurchase	2,323,000	3,233,000
[1]	The balance sheet data at December 31, 2015 has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating Expenses:
Research and development	$ 4,305	$ 3,642	$ 11,831	$ 9,591
Research and development, related party	1,011	993	3,070	3,073
General and administrative	1,717	1,779	5,920	4,308
General and administrative, related party	25	14	68	51
Total operating expenses	7,058	6,428	20,889	17,023
Other Income (Expense):
Management fee income, related party	195	300	690	900
Interest income	131	38	369	60
Interest expense	(194)		(383)	(42)
Interest expense, related party				(46)
Total other income	132	338	676	872
Net loss	$ (6,926)	$ (6,090)	$ (20,213)	$ (16,151)
Net loss per share, basic and diluted	$ (0.37)	$ (0.57)	$ (1.09)	$ (1.98)
Weighted average number of shares used in computing net loss per share, basic and diluted	18,850	10,723	18,549	8,136
Comprehensive Loss:
Net loss	$ (6,926)	$ (6,090)	$ (20,213)	$ (16,151)
Unrealized gain (loss) on marketable securities	(34)	15	98	1
Comprehensive loss	$ (6,960)	$ (6,075)	$ (20,115)	$ (16,150)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016		Sep. 30, 2015
Operating Activities
Net loss	$ (20,213)		$ (16,151)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	1,503		1,663
Non-cash license fee expense			500
Change in value of derivative liability			268
Non-cash interest expense	27		37
Non-cash interest expense, related party			42
Depreciation expense	23		13
Amortization of discount on marketable securities	119		104
Changes in operating assets and liabilities:
Accounts receivable, related party	169		(349)
Prepaid expenses and other current assets	(193)		(644)
Other long-term assets	(223)		(288)
Accounts payable and accrued expenses	(26)		2,561
Accounts payable and accrued expenses, related party	151		923
Other long-term liabilities	52		(999)
Net cash used in operating activities	(18,611)		(12,320)
Investing Activities
Maturities of marketable securities	43,705
Purchases of marketable securities	(41,207)		(30,129)
Purchases of property and equipment			(49)
Net cash provided by (used in) investing activities	2,498		(30,178)
Financing Activities
Proceeds from issuance of long-term debt, net	7,453
Proceeds from issuance of common stock, net			47,586
Proceeds from issuance of convertible notes payable			4,290
Proceeds from issuance of convertible notes payable, related party			710
Proceeds from issuance of restricted stock awards			3
Net cash provided by financing activities	7,453		52,589
Net (decrease) increase in cash and cash equivalents	(8,660)		10,091
Cash and cash equivalents at beginning of period	15,443	[1]	1,124
Cash and cash equivalents at end of period	$ 6,783		11,215
Supplemental disclosure of non-cash financing activities:
Conversion of convertible notes and related accrued interest to common stock			4,327
Conversion of convertible notes and related accrued interest to common stock, related party			$ 3,288
[1]	The balance sheet data at December 31, 2015 has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Organization and Basis of Presentation	1. Organization and Basis of Presentation The Company Kura Oncology, Inc., is a clinical stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer. We focus on the development of small molecule product candidates that target cell signaling pathways that are important to driving the progression of certain cancers. We aim to employ molecular diagnostics to identify patients with cancers who are likely to benefit from our targeted product candidates. References in these Notes to Unaudited Condensed Financial Statements to the “Company” or “we”, “our” or “us”, refer to Kura Oncology, Inc., a private Delaware corporation incorporated in the State of Delaware in August 2014, for the periods prior to our reverse merger transaction which took place on March 6, 2015, or the Merger, and Kura Oncology, Inc., a Delaware corporation incorporated in November 2007 and formerly known as Zeta Acquisition Corp. III, a public shell company, for the periods following the Merger. Basis of Presentation The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed with the Securities and Exchange Commission on March 17, 2016, from which we derived our balance sheet as of December 31, 2015. The accompanying condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying condensed financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying condensed financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of our management, necessary to a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of the condensed financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the amounts reported in our condensed financial statements and accompanying notes. The amounts reported could differ under different estimates and assumptions. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that management believes to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during the period from transactions and other events and non-owner sources. For the periods presented, accumulated other comprehensive income (loss) consists solely of unrealized gains and losses on marketable securities. Net Loss per Share We calculated basic net loss per common share by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. Dilutive common stock equivalents are comprised of unvested restricted stock awards, outstanding stock options and outstanding warrants. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the antidilutive effect of the securities. Because of our net loss, unvested restricted stock awards representing an aggregate of 2,322,453 and 3,571,875 shares of common stock, options to purchase an aggregate of 1,176,591 and 410,000 shares of common stock and warrants to purchase an aggregate of 67,976 and zero shares of common stock are excluded from the calculation of diluted net loss per common share for the three and nine months ended September 30, 2016 and 2015, respectively, due to the anti-dilutive effect of the securities. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-02, Leases (Topic 842), which amends the existing accounting standards for accounting for leases. The amendments are to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheets and disclosure of key information about leasing arrangements. This pronouncement is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. The guidance is required to be adopted at the earliest period presented using a modified retrospective approach. We are currently evaluating the impact these amendments will have on our condensed financial statements and the timing of when we will adopt the guidance. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 changes certain aspects of accounting for share-based payments to employees and involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Specifically, ASU 2016-09 requires that all income tax effects of share-based awards be recognized as income tax expense or benefit in the reporting period in which they occur. Additionally, ASU 2016-09 amends existing guidance to allow forfeitures of share-based awards to be recognized as they occur. Previous guidance required that share-based compensation expense include an estimate of forfeitures. We elected to early adopt ASU 2016-09 in the quarter ended June 30, 2016 with an effective date of January 1, 2016 and made a policy election to account for forfeitures as they occur. The cumulative effect of adoption was recorded in the quarter ended June 30, 2016 and had an immaterial impact to our condensed financial statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815),

Available-for-Sale Securities

Available-for-Sale Securities	9 Months Ended
	Sep. 30, 2016
Investments Debt And Equity Securities [Abstract]
Available-for-Sale Securities	3. Available-for-Sale Securities We invest in available-for-sale securities consisting of money market funds, U.S. Treasury securities, corporate debt securities, commercial paper and government sponsored entities securities. Available-for-sale securities are classified as part of either cash and cash equivalents or short-term investments in the condensed balance sheets. Available-for-sale securities with maturities of three months or less from the date of purchase have been classified as cash equivalents, and were $4.0 million and $13.0 million as of September 30, 2016 and December 31, 2015, respectively. The following tables summarize, by major security type, our available-for-sale securities with maturities of more than three months from the date of purchase classified as short-term investments, in thousands: As of September 30, 2016 Maturity (in years) Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities 2 or less $ 30,517 $ 18 $ (1 ) $ 30,534 Commercial paper 1 or less 17,775 — — 17,775 Corporate debt securities 2 or less 12,876 1 (9 ) 12,868 Government sponsored entities 1 or less 6,606 2 — 6,608 Total $ 67,774 $ 21 $ (10 ) $ 67,785 As of December 31, 2015 Maturity (in years) Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities 2 or less $ 16,007 $ — $ (18 ) $ 15,989 Commercial paper 1 or less 18,367 — — 18,367 Corporate debt securities 2 or less 22,758 — (48 ) 22,710 Government sponsored entities 2 or less 13,258 — (21 ) 13,237 Total $ 70,390 $ — $ (87 ) $ 70,303 Our available-for-sale investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date, which reflects management’s intention to use the proceeds from sales of these securities to fund our operations, as necessary. As of September 30, 2016, $66.3 million of our investments had maturities less than one year and $5.5 million had maturities between one to two years. There were no realized gains or losses for the three and nine months ended September 30, 2016. As of September 30, 2016, $14.6 million of our marketable securities were in gross unrealized loss positions, all of which had been in such position for less than twelve months. We reviewed our marketable securities as of September 30, 2016 and determined that the unrealized losses were not considered to be other-than-temporary based upon (i) the financial strength of the issuing institution and (ii) the fact that all securities have been in an unrealized loss position for less than twelve months. In addition, we do not intend to sell these securities and it is not more likely than not that we will be required to sell these securities before the recovery of their amortized cost basis

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements As a basis for considering assumptions that market participants would use in pricing an asset or liability, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and • Level 3 - Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Available-for-sale marketable securities consist of U.S. Treasury securities, which were measured at fair value using Level 1 inputs, and corporate debt securities, commercial paper and government sponsored entities, which were measured at fair value using Level 2 inputs. We determine the fair value of Level 2 related securities with the aid of valuations provided by third parties using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or prices for similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. We validate the fair values of Level 2 financial instruments by comparing these fair values to a third-party pricing source. No transfers between levels have occurred during the periods presented. The following tables summarize, by major security type, our cash equivalents and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy, in thousands: As of September 30, 2016 Total Estimated Fair Value Level 1 Level 2 Cash equivalents: Money market funds $ 4,009 $ 4,009 $ — Short-term investments: U.S. Treasury securities 30,534 30,534 — Commercial paper 17,775 — 17,775 Corporate debt securities 12,868 — 12,868 Government sponsored entities 6,608 — 6,608 Total short-term investments 67,785 30,534 37,251 $ 71,794 $ 34,543 $ 37,251 As of December 31, 2015 Total Estimated Fair Value Level 1 Level 2 Cash equivalents: Money market funds $ 12,984 $ 12,984 $ — Short-term investments: U.S. Treasury securities 15,989 15,989 — Commercial paper 18,367 — 18,367 Corporate debt securities 22,710 — 22,710 Government sponsored entities 13,237 — 13,237 Total short-term investments 70,303 15,989 54,314 $ 83,287 $ 28,973 $ 54,314 We believe that our term loan facility bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics and, accordingly, the carrying value of the term loan facility approximates fair value. The fair value of our term loan facility is determined using Level 2 inputs in the fair value hierarchy.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	9 Months Ended
	Sep. 30, 2016
Payables And Accruals [Abstract]
Accounts Payable and Accrued Liabilities	5. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following, in thousands: September 30, 2016 December 31, 2015 Accounts payable $ 817 $ 902 Accrued compensation and benefits 1,231 1,282 Other accrued expenses 2,136 1,934 Total accounts payable and accrued expenses $ 4,184 $ 4,118

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	6. Long-Term Debt On April 27, 2016, we entered into a loan and security agreement, or the Loan Agreement, with Oxford Finance LLC and Silicon Valley Bank, or the Lenders, pursuant to which the Lenders provided a loan facility of up to $20.0 million. Upon entering into the Loan Agreement, we borrowed $7.5 million from the Lenders, or Term A Loan. We may, at our sole discretion, borrow up to an additional $12.5 million at any time between December 31, 2016 and May 1, 2017, or Term B Loan, and together with the Term A Loan, the Term Loans, subject to our successful advancement of KO-947, a small molecule inhibitor of extracellular signal regulated kinase, into Phase 1 clinical trials. In addition, each Term B Loan must be in an amount equal to the lesser of $5.0 million or the amount that is remaining under the Term B Loan. All of the Term Loans will mature on November 1, 2020 , or Maturity Date. Repayment of the We are subject to customary affirmative and restrictive covenants under the term loan facility. Our obligations under the Loan Agreement are secured by a first priority security interest in substantially all of our current and future assets, other than our intellectual property. We have also agreed not to encumber our intellectual property assets, except as permitted by the Loan Agreement. The Loan Agreement also contains customary indemnification obligations and customary events of default, including, among other things, our failure to fulfill certain obligations under the Loan Agreement and the occurrence of a material adverse change in our business, operations, or condition (financial or otherwise), a material impairment of the prospect of repayment of any portion of the loan, or a material impairment in the perfection or priority of Lenders’ lien in the collateral or in the value of such collateral. In the event of default by us under the Loan Agreement, the Lenders would be entitled to exercise their remedies thereunder, including the right to accelerate the debt, upon which we may be required to repay all amounts then outstanding under the Loan Agreement. The conditional exercisable call option related to the event of default is considered to be an embedded derivative which is required to be bifurcated and accounted for as a separate financial instrument. In the periods presented, the value of the embedded derivative is not material, but could become material in future periods if an event of default became more probable than is currently estimated. As of September 30, 2016, we were in compliance with all material covenants under the Loan Agreement and there had been no material adverse change. In connection with the Term A Loan, we issued to the Lenders warrants to purchase up to 67,976 shares of our common stock at an exercise price of $3.31 per share, or the Warrants. The Warrants are exercisable, in whole or in part, and will terminate on the earlier of April 27, 2026 or the closing of certain merger or consolidation transactions If we borrow under the Term B Loan, upon the funding of the Term B Loan, we will issue to the Lenders additional warrants to purchase shares of our common stock equal to 3.00% of each Term B Loan amount divided by the lower of (i) the ten day average closing price of our common stock reported on the Nasdaq Global Select Market prior to funding or (ii) the closing price of our common stock reported on the Nasdaq Global Select Market on the day prior to funding. Such lower amount of (i) and (ii) above will also be the exercise price per share for such warrants. The terms of such warrants would be substantially the same as those contained in the Warrants. The following table summarizes future minimum payments under the term loan facility as of September 30, 2016, in thousands: Year Ending December 31, 2016 $ 147 2017 589 2018 2,305 2019 3,344 2020 3,421 Total future minimum payments 9,806 Less: interest payments (2,306 ) Principal amount of long-term debt 7,500 Less: Unamortized discount (192 ) Long-term debt, net of unamortized discount 7,308 Current portion of long-term debt — Long-term debt, net $ 7,308

Equity Incentive Plan

Equity Incentive Plan	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Incentive Plan	7. Equity Incentive Plan The following table summarizes share-based compensation expense for all equity awards granted, in thousands: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Research and development $ 372 $ 433 $ 919 $ 1,440 General and administrative 212 101 584 223 Total share-based compensation expense $ 584 $ 534 $ 1,503 $ 1,663 For the three months ended September 30, 2016 and 2015, we recognized share-based compensation expense related to stock options of $298,000 and $122,000, respectively, of which $13,000 and $9,000 related to non-employee stock options, respectively. For the nine months ended September 30, 2016 and 2015, we recognized share-based compensation expense related to stock options of $0.8 million and $211,000, respectively, of which $26,000 and $24,000 related to non-employee stock options, respectively. For the three months ended September 30, 2016 and 2015, we recognized share-based compensation expense related to restricted stock awards totaling $286,000 and $412,000, respectively, of which $253,000 and $378,000 related to non-employee restricted stock awards, respectively. For the nine months ended September 30, 2016 and 2015, we recognized share-based compensation expense related to restricted stock awards totaling $0.7 million and $1.5 million, respectively, of which $0.6 million and $1.3 million related to non-employee restricted stock awards, respectively. As of September 30, 2016, unrecognized compensation costs related to employee stock options and restricted stock awards were approximately $3.0 million and $261,000, respectively, which are expected to be recognized over a weighted average period of approximately 2.9 years and 2.0 years, respectively.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	8. Related Party Transactions Our president and chief executive officer is also the sole managing member of our affiliated company Araxes Pharma LLC, or • Facility Sublease We sublease office space from Wellspring Biosciences LLC, or Wellspring, a wholly owned subsidiary of Araxes. For the three months ended September 30, 2016 and 2015, rent expense related to this sublease was $28,000 and $24,000, respectively. For the nine months ended September 30, 2016 and 2015, rent expense related to this sublease was $80,000 and $73,000, respectively. Pursuant to the terms of the sublease as amended in June 2016, the sublease will expire on October 31, 2019. • Management Fees Effective April 2016, we amended our management services agreement with Araxes. Under the amended agreement, Araxes pays us a fixed fee of $65,000 per month for management services, which is reduced from the prior fixed fee of $100,000 per month. In addition, the agreement allows for Araxes to reimburse us an amount equal to the number of full time equivalents, or FTE, performing research and development services for Araxes, at an annual FTE rate of approximately $350,000, plus actual expenses as reasonably incurred. The initial term expired on December 31, 2015 but, pursuant to the terms of the agreement, renews automatically for additional consecutive one-year periods. The agreement may be terminated by either party with a notice of at least 30 days prior to the expiration of the then-renewal term. For the three months ended September 30, 2016 and 2015, we recorded reimbursements of $66,000 and $79,000, respectively, and for the nine months ended September 30, 2016 and 2015, we recorded reimbursements of $258,000 and $200,000, respectively, for research and development services provided to Araxes, which was recorded as a reduction to research and development expenses on the condensed statements of operations and comprehensive loss. As of September 30, 2016 and December 31, 2015, $261,000 and $430,000 related to management fees and reimbursements of research and development services, respectively, are included in accounts receivable, related party on the condensed balance sheets. • Services Agreement We have a services agreement with Wellspring which allows for payment of research and development services provided to us of an amount equal to the number of FTE’s performing the services, at an annual FTE rate of $400,000, plus actual expenses as reasonably incurred. The initial term of this services agreement expired on December 31, 2015 but, pursuant to the terms of the agreement, renews automatically for additional consecutive one-year periods. The agreement may be terminated by either party with a notice of at least 30 days prior to the expiration of the then-renewal term. For the three months ended September 30, 2016 and 2015, we recognized $1.0 million in both periods, and for the nine months ended September 30, 2016 and 2015, we recognized $3.2 million in both periods from research and development services provided to us under this agreement as research and development expense, related party on the condensed statements of operations and comprehensive loss. As of September 30, 2016 and December 31, 2015, $1.1 million and $0.9 million, respectively, related to research and development services under this agreement are included in accounts payable and accrued expenses, related party on the condensed balance sheets.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during the period from transactions and other events and non-owner sources. For the periods presented, accumulated other comprehensive income (loss) consists solely of unrealized gains and losses on marketable securities.
Net Loss per Share	Net Loss per Share We calculated basic net loss per common share by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. Dilutive common stock equivalents are comprised of unvested restricted stock awards, outstanding stock options and outstanding warrants. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the antidilutive effect of the securities. Because of our net loss, unvested restricted stock awards representing an aggregate of 2,322,453 and 3,571,875 shares of common stock, options to purchase an aggregate of 1,176,591 and 410,000 shares of common stock and warrants to purchase an aggregate of 67,976 and zero shares of common stock are excluded from the calculation of diluted net loss per common share for the three and nine months ended September 30, 2016 and 2015, respectively, due to the anti-dilutive effect of the securities.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-02, Leases (Topic 842), which amends the existing accounting standards for accounting for leases. The amendments are to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheets and disclosure of key information about leasing arrangements. This pronouncement is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. The guidance is required to be adopted at the earliest period presented using a modified retrospective approach. We are currently evaluating the impact these amendments will have on our condensed financial statements and the timing of when we will adopt the guidance. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 changes certain aspects of accounting for share-based payments to employees and involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Specifically, ASU 2016-09 requires that all income tax effects of share-based awards be recognized as income tax expense or benefit in the reporting period in which they occur. Additionally, ASU 2016-09 amends existing guidance to allow forfeitures of share-based awards to be recognized as they occur. Previous guidance required that share-based compensation expense include an estimate of forfeitures. We elected to early adopt ASU 2016-09 in the quarter ended June 30, 2016 with an effective date of January 1, 2016 and made a policy election to account for forfeitures as they occur. The cumulative effect of adoption was recorded in the quarter ended June 30, 2016 and had an immaterial impact to our condensed financial statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815),

Available-for-Sale Securities (

Available-for-Sale Securities (Tables)	9 Months Ended
	Sep. 30, 2016
Investments Debt And Equity Securities [Abstract]
Available-for-Sale Securities Classified as Short-Term Investments	The following tables summarize, by major security type, our available-for-sale securities with maturities of more than three months from the date of purchase classified as short-term investments, in thousands: As of September 30, 2016 Maturity (in years) Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities 2 or less $ 30,517 $ 18 $ (1 ) $ 30,534 Commercial paper 1 or less 17,775 — — 17,775 Corporate debt securities 2 or less 12,876 1 (9 ) 12,868 Government sponsored entities 1 or less 6,606 2 — 6,608 Total $ 67,774 $ 21 $ (10 ) $ 67,785 As of December 31, 2015 Maturity (in years) Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities 2 or less $ 16,007 $ — $ (18 ) $ 15,989 Commercial paper 1 or less 18,367 — — 18,367 Corporate debt securities 2 or less 22,758 — (48 ) 22,710 Government sponsored entities 2 or less 13,258 — (21 ) 13,237 Total $ 70,390 $ — $ (87 ) $ 70,303

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule Of Fair Value Measurements, By Major Security Type	The following tables summarize, by major security type, our cash equivalents and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy, in thousands: As of September 30, 2016 Total Estimated Fair Value Level 1 Level 2 Cash equivalents: Money market funds $ 4,009 $ 4,009 $ — Short-term investments: U.S. Treasury securities 30,534 30,534 — Commercial paper 17,775 — 17,775 Corporate debt securities 12,868 — 12,868 Government sponsored entities 6,608 — 6,608 Total short-term investments 67,785 30,534 37,251 $ 71,794 $ 34,543 $ 37,251 As of December 31, 2015 Total Estimated Fair Value Level 1 Level 2 Cash equivalents: Money market funds $ 12,984 $ 12,984 $ — Short-term investments: U.S. Treasury securities 15,989 15,989 — Commercial paper 18,367 — 18,367 Corporate debt securities 22,710 — 22,710 Government sponsored entities 13,237 — 13,237 Total short-term investments 70,303 15,989 54,314 $ 83,287 $ 28,973 $ 54,314

Accounts Payable and Accrued 17

Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Payables And Accruals [Abstract]
Accounts Payable and Accrued Liabilities	Accounts payable and accrued liabilities consisted of the following, in thousands: September 30, 2016 December 31, 2015 Accounts payable $ 817 $ 902 Accrued compensation and benefits 1,231 1,282 Other accrued expenses 2,136 1,934 Total accounts payable and accrued expenses $ 4,184 $ 4,118

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Future Minimum Payments under Term Loan Facility	The following table summarizes future minimum payments under the term loan facility as of September 30, 2016, in thousands: Year Ending December 31, 2016 $ 147 2017 589 2018 2,305 2019 3,344 2020 3,421 Total future minimum payments 9,806 Less: interest payments (2,306 ) Principal amount of long-term debt 7,500 Less: Unamortized discount (192 ) Long-term debt, net of unamortized discount 7,308 Current portion of long-term debt — Long-term debt, net $ 7,308

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Share-based Compensation Expense	The following table summarizes share-based compensation expense for all equity awards granted, in thousands: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Research and development $ 372 $ 433 $ 919 $ 1,440 General and administrative 212 101 584 223 Total share-based compensation expense $ 584 $ 534 $ 1,503 $ 1,663

Summary of Significant Accoun20

Summary of Significant Accounting Policies - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Unvested Restricted Stock Awards
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	2,322,453	3,571,875	2,322,453	3,571,875
Stock Option
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	1,176,591	410,000	1,176,591	410,000
Warrants
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	67,976	0	67,976	0

Available-for-Sale Securities -

Available-for-Sale Securities - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Investments Debt And Equity Securities [Abstract]
Cash equivalents	$ 4,000,000	$ 4,000,000	$ 13,000,000
Investments with maturities less than one year	66,300,000	66,300,000
Investments with maturities between one to two years	5,500,000	5,500,000
Available-for-sale securities, realized gains or losses	0	0
Marketable securities gross unrealized loss positions for less than twelve months	$ 14,600,000	$ 14,600,000

Available-for-Sale Securities22

Available-for-Sale Securities - Available-for-Sale Securities are Classified as Short-Term Investments (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 67,774	$ 70,390
Unrealized Gains	21
Unrealized Losses	(10)	(87)
Fair Value	$ 67,785	$ 70,303	[1]
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	2 or less	2 or less
Amortized Cost	$ 30,517	$ 16,007
Unrealized Gains	18
Unrealized Losses	(1)	(18)
Fair Value	$ 30,534	$ 15,989
Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	2 or less	2 or less
Amortized Cost	$ 12,876	$ 22,758
Unrealized Gains	1
Unrealized Losses	(9)	(48)
Fair Value	$ 12,868	$ 22,710
Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	1 or less	1 or less
Amortized Cost	$ 17,775	$ 18,367
Fair Value	$ 17,775	$ 18,367
Government Sponsored Entities
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	1 or less	2 or less
Amortized Cost	$ 6,606	$ 13,258
Unrealized Gains	2
Unrealized Losses		(21)
Fair Value	$ 6,608	$ 13,237
[1]	The balance sheet data at December 31, 2015 has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.

Fair Value Measurements - Fair

Fair Value Measurements - Fair Values of Investment Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	$ 67,785	$ 70,303	[1]
Government Sponsored Entities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	6,608	13,237
Fair Value Measurements on Recurring Basis
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	67,785	70,303
Cash equivalents and short-term investments	71,794	83,287
Fair Value Measurements on Recurring Basis | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	4,009	12,984
Fair Value Measurements on Recurring Basis | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	30,534	15,989
Fair Value Measurements on Recurring Basis | Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	12,868	22,710
Fair Value Measurements on Recurring Basis | Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	17,775	18,367
Fair Value Measurements on Recurring Basis | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	30,534	15,989
Cash equivalents and short-term investments	34,543	28,973
Fair Value Measurements on Recurring Basis | Level 1 | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	4,009	12,984
Fair Value Measurements on Recurring Basis | Level 1 | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	30,534	15,989
Fair Value Measurements on Recurring Basis | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	37,251	54,314
Cash equivalents and short-term investments	37,251	54,314
Fair Value Measurements on Recurring Basis | Level 2 | Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	12,868	22,710
Fair Value Measurements on Recurring Basis | Level 2 | Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	17,775	18,367
Fair Value Measurements on Recurring Basis | Government Sponsored Entities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	6,608	13,237
Fair Value Measurements on Recurring Basis | Government Sponsored Entities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments	$ 6,608	$ 13,237
[1]	The balance sheet data at December 31, 2015 has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.

Accounts Payable and Accrued 24

Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Payables And Accruals [Abstract]
Accounts payable	$ 817	$ 902
Accrued compensation and benefits	1,231	1,282
Other accrued expenses	2,136	1,934
Total accounts payable and accrued expenses	$ 4,184	$ 4,118	[1]
[1]	The balance sheet data at December 31, 2015 has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($)	Apr. 27, 2016	Sep. 30, 2016
Debt Instrument [Line Items]
Maximum borrowing capacity under term loans	$ 20,000,000
Principal amount outstanding on loan		$ 7,500,000
Term loan remaining borrowing capacity	12,500,000
Additional borrowing description		We may, at our sole discretion, borrow up to an additional $12.5 million at any time between December 31, 2016 and May 1, 2017, or Term B Loan, and together with the Term A Loan, the Term Loans, subject to our successful advancement of KO-947, a small molecule inhibitor of extracellular signal regulated kinase, into Phase 1 clinical trials.
Term A Loan
Debt Instrument [Line Items]
Principal amount outstanding on loan	7,500,000
Final payment due on the maturity date	600,000
Fair Value Of Warrants	$ 172,000
Term A Loan | Term Loan Warrants
Debt Instrument [Line Items]
Warrants exercisable exercise price	$ 3.31
Warrants termination date		Apr. 27, 2026
Volatility Rate	70.92%
Expected Term	10 years
Risk Free Interest Rate	2.11%
Dividend yield	0.00%
Term A Loan | Maximum | Term Loan Warrants
Debt Instrument [Line Items]
Warrants issued to purchase of common stock	67,976
Term B Loan
Debt Instrument [Line Items]
Description of required debt amount		each Term B Loan must be in an amount equal to the lesser of $5.0 million or the amount that is remaining under the Term B Loan.
Term B Loan | Term Loan Warrants
Debt Instrument [Line Items]
Warrant shares percentage issued of loan amount	3.00%
Number of trading days for average closing price	10 days
Term B Loan | Minimum
Debt Instrument [Line Items]
Term B Loan Minimum draw amount	$ 5,000,000
Term Loans
Debt Instrument [Line Items]
Term loan facility maturity date	Nov. 1, 2020
Description of term loan payment terms		All of the Term Loans will mature on November 1, 2020, or Maturity Date. Repayment of the Term Loans is interest only through May 1, 2018, followed by 30 equal monthly payments of principal plus accrued interest commencing on June 1, 2018
Percentage of prime rate included in effective interest rate	4.25%
Final payment as a percentage of amounts borrowed	7.50%
Team loan effective interest rate description		The per annum interest rate for any outstanding Term Loans is the greater of (i) 7.75% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 4.25%.
Unused fee description		unused fee on the earlier of May 2, 2017 or prior repayment of the Term Loans in an amount equal to (a) 2.00% multiplied by (b) $20.0 million minus the aggregate amount of the Term Loans drawn on or before May 1, 2017.
Term Loans | Base Rate
Debt Instrument [Line Items]
Commitment fee percentage on unused capacity	2.00%
Term Loans | Transaction Occurring Assumption One
Debt Instrument [Line Items]
Prepayment fee equal to outstanding principal amount	1.00%
Term Loans | Transaction Occurring Assumption Two
Debt Instrument [Line Items]
Prepayment fee equal to outstanding principal amount	2.00%
Term Loans | Transaction Occurring Assumption Three
Debt Instrument [Line Items]
Prepayment fee equal to outstanding principal amount	3.00%
Term Loans | Minimum | Base Rate
Debt Instrument [Line Items]
Minimum percentage of interest rate on outstanding borrowings	7.75%

Long-Term Debt - Future Minimum

Long-Term Debt - Future Minimum Payments under Term Loan Facility (Detail) $ in Thousands	Sep. 30, 2016USD ($)
Debt Disclosure [Abstract]
2,016	$ 147
2,017	589
2,018	2,305
2,019	3,344
2,020	3,421
Total future minimum payments	9,806
Less: interest payments	(2,306)
Principal amount of long-term debt	7,500
Less: Unamortized discount	(192)
Long-term debt, net of unamortized discount	7,308
Long-term debt, net	$ 7,308

Equity Incentive Plan - Summary

Equity Incentive Plan - Summary of Share-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 584	$ 534	$ 1,503	$ 1,663
Research and development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	372	433	919	1,440
General and administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 212	$ 101	$ 584	$ 223

Equity Incentive Plan - Additio

Equity Incentive Plan - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 584,000	$ 534,000	$ 1,503,000	$ 1,663,000
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	298,000	122,000	800,000	211,000
Non-employee share based compensation expense	13,000	9,000	26,000	24,000
Unrecognized stock option compensation expenses	3,000,000		$ 3,000,000
Weighted average service period			2 years 10 months 24 days
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	286,000	412,000	$ 700,000	1,500,000
Non-employee share based compensation expense	253,000	$ 378,000	600,000	$ 1,300,000
Unrecognized stock option compensation expenses	$ 261,000		$ 261,000
Weighted average service period			2 years

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	Apr. 30, 2016	Dec. 18, 2014	Oct. 01, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Accounts receivable, related party				$ 261,000		$ 261,000		$ 430,000	[1]
Research and development, related party				1,011,000	$ 993,000	3,070,000	$ 3,073,000
Accounts payable and accrued expenses, related party				1,088,000		1,088,000		937,000	[1]
Wellspring Biosciences LLC
Related Party Transaction [Line Items]
Rent expense related to office space sublease				28,000	24,000	80,000	73,000
Sublease expiration date		Oct. 31, 2019
Agreement expiration date			Dec. 31, 2015
Agreement termination notice period			30 days
Research and development services expense at full time equivalents rate			$ 400,000
Research and development, related party				1,000,000	1,000,000	3,200,000	3,200,000
Accounts payable and accrued expenses, related party				1,100,000		$ 1,100,000		900,000
Araxes Pharma LLC
Related Party Transaction [Line Items]
Management Fee, Description						Effective April 2016, we amended our management services agreement with Araxes. Under the amended agreement, Araxes pays us a fixed fee of $65,000 per month for management services, which is reduced from the prior fixed fee of $100,000 per month. In addition, the agreement allows for Araxes to reimburse us an amount equal to the number of full time equivalents, or FTE, performing research and development services for Araxes, at an annual FTE rate of approximately $350,000, plus actual expenses as reasonably incurred. The initial term expired on December 31, 2015 but, pursuant to the terms of the agreement, renews automatically for additional consecutive one-year periods. The agreement may be terminated by either party with a notice of at least 30 days prior to the expiration of the then-renewal term.
Management service agreement, fixed	$ 65,000		$ 100,000
Management service agreement, full time equivalents performing research and development services	$ 350,000
Agreement expiration date			Dec. 31, 2015
Agreement termination notice period			30 days
Amount received on research and development services				66,000	$ 79,000	$ 258,000	$ 200,000
Accounts receivable, related party				$ 261,000		$ 261,000		$ 430,000
[1]	The balance sheet data at December 31, 2015 has been derived from audited financial statements at that date. It does not include, however, all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.