Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Lion Biotechnologies, Inc. | |
Entity Central Index Key | 1,425,205 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 47,833,934 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 10,210 | $ 44,910 |
Money market funds | 20,562 | |
Short-term investments available for sale | 79,374 | |
Prepaid and other current assets | 245 | $ 67 |
Total Current Assets | 110,391 | 44,977 |
Property and equipment, net of accumulated depreciation of $794 and $103 | 1,833 | 1,532 |
Total Assets | 112,224 | 46,509 |
Current Liabilities | ||
Accounts payable | 1,161 | 1,249 |
Accrued expenses | 1,608 | 328 |
Accrued payable to officers and former directors | 86 | 86 |
Total Current Liabilities | $ 2,855 | $ 1,663 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.001 par value; 50,000,000 shares authorized, 3,694 shares and 5,694 shares issued and outstanding, respectively | ||
Common stock, $0.000041666 par value; 150,000,000 shares authorized, 47,807,398 and 33,750,188 shares issued and outstanding, respectively | $ 2 | $ 2 |
Common stock to be issued, 245,153 shares | 245 | 245 |
Accumulated other comprehensive income | 38 | |
Additional paid-in capital | 204,929 | 121,161 |
Accumulated deficit | (95,845) | (76,562) |
Total Stockholders' Equity | 109,369 | 44,846 |
Total Liabilities and Stockholders' Equity | $ 112,224 | $ 46,509 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Balance Sheets [Abstract] | ||
Property and equipment, accumulated depreciation | $ 794 | $ 103 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 3,694 | 5,694 |
Preferred stock, shares outstanding | 3,694 | 5,694 |
Common stock, par value (in dollars per share) | $ 0.000041666 | $ 0.000041666 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 47,807,398 | 33,750,188 |
Common stock, shares outstanding | 47,807,398 | 33,750,188 |
Common stock to be issued shares | 245,153 | 245,153 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Statements of Operations [Abstract] | ||||
Revenues | ||||
Costs and expenses | ||||
Operating expenses | $ 2,660 | $ 2,449 | $ 7,259 | $ 6,155 |
Research and development | 4,983 | 354 | 12,147 | 1,018 |
Total costs and expenses | 7,643 | 2,803 | 19,406 | 7,173 |
Loss from operations | (7,643) | (2,803) | (19,406) | (7,173) |
Other income (expense) | ||||
Interest income | 8 | 5 | 123 | 5 |
Net Loss | $ (7,635) | $ (2,798) | $ (19,283) | $ (7,168) |
Net Loss Per Share, Basic and Diluted | $ (0.16) | $ (0.11) | $ (0.44) | $ (0.30) |
Weighted-Average Common Shares Outstanding, Basic and Diluted | 47,271,593 | 26,632,908 | 43,398,650 | 24,107,787 |
Condensed Statements of Operat5
Condensed Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Expense [Member] | ||||
Share-based Compensation | $ 1,452 | $ 658 | $ 3,726 | $ 1,905 |
Research and Development Expense [Member] | ||||
Share-based Compensation | $ 895 | $ 282 | $ 2,050 | $ 817 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Loss | $ (7,635) | $ (2,798) | $ (19,283) | $ (7,168) |
Other comprehensive income: | ||||
Unrealized gain on short-term investments | 38 | 38 | ||
Comprehensive Loss | $ (7,597) | $ (2,798) | $ (19,245) | $ (7,168) |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Common Stock To Be Issued [Member] | Additional Paid-In Capital [Member] | Comprehensive Income [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2014 | $ 44,846 | $ 2 | $ 245 | $ 121,161 | $ (76,562) | ||
Balance (in shares) at Dec. 31, 2014 | 5,694 | 33,750,188 | |||||
Fair value of vested stock options | 4,223 | 4,223 | |||||
Common stock issued upon exercise of warrants | 9,618 | 9,618 | |||||
Common stock issued upon exercise of warrants (in shares) | 3,847,210 | ||||||
Common stock issued upon exercise of options | $ 66 | 66 | |||||
Common stock issued upon exercise of options (in shares) | 10,000 | ||||||
Common stock issued upon conversion of preferred shares | |||||||
Common stock issued upon conversion of preferred shares (in shares) | (2,000) | 1,000,000 | |||||
Common stock sold in public offering, net of offering costs | $ 68,308 | 68,308 | |||||
Common stock sold in public offering, net of offering costs (in shares) | 9,200,000 | ||||||
Vesting of restricted shares issued for services | 1,553 | 1,553 | |||||
Unrealized gain on short-term investments | 38 | $ 38 | |||||
Net loss | (19,283) | (19,283) | |||||
Balance at Sep. 30, 2015 | $ 109,369 | $ 2 | $ 245 | $ 204,929 | $ 38 | $ (95,845) | |
Balance (in shares) at Sep. 30, 2015 | 3,694 | 47,807,398 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net loss | $ (19,283) | $ (7,168) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 691 | 23 |
Fair value of vested stock options | 4,223 | 1,896 |
Vesting of restricted shares issued for services | 1,553 | 825 |
Changes in assets and liabilities: | ||
Prepaid and other current assets | (179) | 118 |
Accounts payable and accrued expenses | 1,193 | (1,012) |
Net cash used in operating activities | (11,802) | $ (5,318) |
Cash Flows From Investing Activities | ||
Increase in money market funds | (20,562) | |
Purchase of short-term investments | (95,236) | |
Maturities of short-term investments | 15,900 | |
Purchases of property and equipment | (992) | $ (167) |
Net cash used in investing activities | (100,890) | (167) |
Cash Flows From Financing Activities | ||
Proceeds from the issuance of common stock upon exercise of warrants | 9,618 | $ 3,002 |
Proceeds from the issuance of common stock upon exercise of options | 66 | |
Proceeds from the issuance of common stock, net | 68,308 | |
Net cash provided by financing activities | 77,992 | $ 3,002 |
Net Decrease In Cash And Cash Equivalents | (34,700) | (2,483) |
Cash and Cash Equivalents, Beginning of Period | 44,910 | 19,673 |
Cash and Cash Equivalents, End of Period | 10,210 | $ 17,190 |
Supplement non-cash financing activities | ||
Unrealized gain on short-term investments | $ 38 |
GENERAL ORGANIZATION AND BUSINE
GENERAL ORGANIZATION AND BUSINESS | 9 Months Ended |
Sep. 30, 2015 | |
GENERAL ORGANIZATION AND BUSINESS [Abstract] | |
GENERAL ORGANIZATION AND BUSINESS | NOTE 1. GENERAL ORGANIZATION AND BUSINESS Lion Biotechnologies, Inc. (the Company, we, us or our) is a clinical-stage biopharmaceutical company focused on the development and commercialization of novel cancer immunotherapy products designed to harness the power of a patient's own immune system to eradicate cancer cells. Our lead program is an adoptive cell therapy utilizing tumor-infiltrating lymphocytes (TIL), which are T cells derived from patients' tumors, for the treatment of metastatic melanoma. The TIL are then activated and expanded ex vivo and then infused back into the patient to fight their tumor cells. The Company was originally incorporated under the laws of the state of Nevada on September 17, 2007. Until March 2010, we were an inactive company known as Freight Management Corp. On March 15, 2010, we changed our name to Genesis Biopharma, Inc., and in 2011 we commenced our current business. Basis of Presentation of Unaudited Condensed Financial Information The unaudited condensed financial statements of the Company for the nine months ended September 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2014 was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2014 included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the SEC) on March 16, 2015. These financial statements should be read in conjunction with that report. Liquidity We are currently engaged in the development of therapeutics to fight cancer, we do not have any commercial products and have not yet generated any revenues from our biopharmaceutical business. We currently do not anticipate that we will generate any revenues during 2015 from the sale or licensing of any products. In addition, we have not generated any revenues from our prior business plans. We have not had any revenues and are still in the development stage. As shown in the accompanying condensed financial statements, we have incurred a net loss of $ 19.3 11.8 110.1 109.4 107.5 During 2015, we expect to further ramp up our operations, which will increase the amount of cash we will use in our operations. Our budget for 2015 includes increased spending on research and development activities, higher payroll expenses as we increase our professional staff, the costs associated with operating our new Tampa, Florida, research facility, as well as ongoing payments under the Cooperative Research and Development Agreement (CRADA) we have entered into with the National Cancer Institute (NCI). Based on the funds we had available on September 30, 2015, we believe that we have sufficient capital to fund our anticipated operating expenses for at least 24 months. On March 3, 2015, the Company sold 9,200,000 8.00 68.3 6,000,000 5.75 32.2 23.3 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES | 9 Months Ended |
Sep. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES Cash and Cash Equivalents The Company considers highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. The carrying amounts reported in the Balance Sheets for cash and cash equivalents are valued at cost, which approximates their fair value. Short-term Investments The Company's short-term investments represent available for sale securities and are recorded at fair value and unrealized gains and losses are recorded within accumulated other comprehensive income (loss). The estimated fair value of the available for sale securities is determined based on quoted market prices or rates for similar instruments. In addition, the cost of debt securities in this category is adjusted for amortization of premium and accretion of discount to maturity. The Company evaluates securities with unrealized losses to determine whether such losses, if any, are other than Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives of two five Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, excluding unvested shares of restricted common stock. Shares of restricted stock subject to vesting are included in basic weighted average common shares outstanding from the time they vest. Diluted earnings per share is computed by dividing the net income applicable to common stock holders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive. When calculating diluted net income per share, shares of restricted stock subject to vesting are included in diluted weighted average common shares outstanding as of their grant date. At September 30, 2015 and 2014, basic and diluted net loss per share are the same, as the effect of potentially dilutive securities was antidilutive. At September 30, 2015, potentially dilutive securities include options to acquire 2,704,195 7,237,216 1,847,000 494,001 1,098,750 11,172,426 2,847,000 Fair Value Measurements Under FASB ASC 820, Fair Value Measurements and Disclosures Assets and liabilities recorded at fair value in our financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: Level 1Inputs are unadjusted, quoted prices in active markets for identical assets at the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The fair valued assets we hold that are generally included under this Level 1 are money market securities where fair value is based on publicly quoted prices. Level 2Are inputs, other than quoted prices included in Level 1, that are either directly or indirectly observable for the asset or liability through correlation with market data at the reporting date and for the duration of the instrument's anticipated life. The fair valued assets we hold that are generally assessed under Level 2 are corporate bonds and commercial paper. We utilize third party pricing services in developing fair value measurements where fair value is based on valuation methodologies such as models using observable market inputs, including benchmark yields, reported trades, broker/dealer quotes, bids, offers and other reference data. We use quotes from external pricing service providers and other on-line quotation systems to verify the fair value of investments provided by our third party pricing service providers. We review independent auditor's reports from our third party pricing service providers particularly regarding the controls over pricing and valuation of financial instruments and ensure that our internal controls address certain control deficiencies, if any, and complementary user entity controls are in place. Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management's best estimate of what market participants would use in pricing the asset or liability at the reporting date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. We do not have fair valued assets classified under Level 3. Fair Value on a Recurring Basis Financial assets measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of September 30, 2015 Level 1 Level 2 Level 3 Total Money market funds $ 20,562 $ - $ - $ 20,562 Corporate debt securities - 79,374 - 79,374 Total $ 20,562 $ 79,374 $ $ 99,936 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include accounting for potential liabilities and the assumptions made in valuing stock instruments issued for services. Stock-Based Compensation The Company periodically grants stock options and warrants to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option grants to employees based on the authoritative guidance provided by the Financial Accounting Standards Board where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option grants to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. The Company issues restricted shares of its common stock for share-based compensation programs. The Company measures the compensation cost with respect to restricted shares to employees based upon the estimated fair value of the equity instruments at the date of the grant, and is recognized as expense over the period which an employee is required to provide services in exchange for the award. The fair value of the Company's common stock option grants is estimated using a Black-Scholes option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the common stock options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model, and based on actual experience. The assumptions used in the Black-Scholes option pricing model could materially affect compensation expense recorded in future periods. Total stock-based compensation expense related to all of our stock-based awards was as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Operating expenses $ 1,492 $ 658 $ 3,726 $ 1,905 Research and development 895 282 2,050 817 Total stock-based compensation expense $ 2,387 $ 940 $ 5,776 $ 2,722 Research and Development Research and development costs consist primarily of fees paid to consultants and outside service providers, patent fees and costs, and other expenses relating to the acquisition, design, development and testing of the Company's treatments and product candidates. Research and development costs are expensed as incurred, unless the achievement of milestones, the completion of contracted work, or other information indicates that a different expensing schedule is more appropriate. The Company reviews the status of its research and development contracts on a quarterly basis. Concentrations Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and short-term investments. The Company maintains cash balances at one bank. As of September 30, 2015, the Company's cash balances were in excess of insured limits maintained at this bank. Management believes that the financial institution that hold the Company's cash are financially sound and, accordingly, minimal credit risk exists. At September 30, 2015, the Company's short-term investments were invested in short-term fixed income debt securities of domestic and foreign high credit issuers and in money market funds. The Company's investment policy limits investments to certain types of instruments such as certificates of deposit, money market instruments, obligations issued by the U.S. government and U.S. government agencies as well as corporate debt securities, and places restrictions on maturities and concentration by type and issuer. At September 30, 2015, approximately 56 25 19 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted in annual reporting periods beginning after December 15, 2016, and the interim periods within that year, and either full retrospective adoption or modified retrospective adoption is permitted. The Company is in the process of evaluating the impact of ASU 2014-09 on the Company's financial statements and disclosures. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation Stock Compensation (Topic 718). The pronouncement was issued to clarify the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company's consolidated financial position or results of operations. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. Reclassifications In presenting the Company's statement of operations for the three and nine month periods ended September 30, 2014, the Company has reclassified $ 0.8 0.3 |
CASH, MONEY MARKET FUNDS, AND S
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS | 9 Months Ended |
Sep. 30, 2015 | |
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS [Abstract] | |
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS | NOTE 3. CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS Cash, money market funds, and short-term investments consist of the following (in thousands): September 30, 2015 December 31, 2014 Checking and savings accounts (reported as cash and cash equivalents) $ 10,210 $ 45 Money market funds 20,562 - Corporate debt securities (reported as short-term investments) 79,374 - $ 110,146 $ 45 Money market funds and short-term investments include the following securities with gross unrealized gains and losses (in thousands): Gross Gross Unrealized Unrealized September 30, 2015 Cost Gains Gains Fair Value Money market funds $ 20,562 $ - $ - $ 20,562 Corporate debt securities 79,336 38 - 79,374 Total $ 99,897 $ 38 $ - $ 99,936 As of September 30, 2015, the contractual maturities of our money market funds and short-term investments were (in thousands): Within One Year Money market funds $ 20,562 Corporate debt securities 79,374 $ 99,936 At September 30, 2015,the Company's short-term investments were invested in short-term fixed income debt securities and notes of domestic and foreign high credit issuers and in money market funds. The Company's investment policy limits investments to certain types of instruments such as certificates of deposit, money market instruments, obligations issued by the U.S. government and U.S. government agencies as well as corporate debt securities, and places restrictions on maturities and concentration by type and issuer. At September 30, 2015, the Company's short-term investments totaled $ 80 56 25 19 20.6 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2015 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4. PROPERTY AND EQUIPMENT Property and equipment are comprised of the following as of (in thousands): September 30, 2015 December 31, 2014 Laboratory equipment $ 1,563 $ 688 Leasehold improvements 853 762 Computer, software, and office equipment 211 185 2,627 1,635 Accumulated depreciation (794 ) (103 ) $ 1,833 $ 1,532 Depreciation expense for the three and nine months ended September 30, 2015 and 2014 was $ 266 691 5 23 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 5. STOCKHOLDERS' EQUITY Public offering On March 3, 2015, the Company completed an underwritten public offering of 9,200,000 8.00 68.3 Issuance of common stock upon conversion of preferred stock During the nine months ended September 30, 2015, the Company issued 1,000,000 2,000 500 Common stock with vesting terms During 2014, the Company granted 797,500 three 5.3 1.3 1.5 2.5 When calculating basic net income (loss) per share, these shares are included in basic weighted average common shares outstanding from the time they vest. When calculating diluted net income (loss) per share, these shares are included in diluted weighted average common shares outstanding from the time they are granted, unless they are antidilutive. Shares of restricted stock granted above are subject to forfeiture to the Company or other restrictions that will lapse in accordance with a vesting schedule determined by our Board. The following table summarizes restricted common stock activity: Number of Shares Weighted Average Grant Date Fair Value Non-vested shares, January 1, 2015 757,500 $ 6.84 Granted Vested (233,499 ) 4.37 Forfeited (30,000 ) 8.24 Non-vested shares, September 30, 2015 494,001 $ 6.56 |
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS | 9 Months Ended |
Sep. 30, 2015 | |
STOCK OPTIONS AND WARRANTS [Abstract] | |
STOCK OPTIONS AND WARRANTS | NOTE 6. STOCK OPTIONS AND WARRANTS Stock Options A summary of the status of stock options at September 30, 2015, and the changes during the nine months then ended, is presented in the following table: Weighted Weighted Average Aggregate Shares Average Remaining Intrinsic Under Exercise Contractual Value Option Price Life (in thousands) Outstanding at January 1, 2015 1,857,877 $ 7.31 8.2 $ 2,875 Granted 943,750 9.18 9.8 Exercised (10,000 ) Expired/Forfeited (87,432 ) 5.92 7.29 - Outstanding at September 30, 2015 2,704,195 $ 8.05 8.16 $ 64 Exercisable at September 30, 2015 883,449 $ 8.63 6.67 $ 98 During the nine months ended September 30, 2015, the Company granted options to purchase 943,750 one three 8.3 211 1.57 zero 6 During the nine months ended September 30, 2015 and 2014, the Company recorded compensation costs of $ 4.1 1.9 10.3 nine three On September 19, 2014, The Company's Board of Directors adopted the Lion Biotechnologies, Inc. 2014 Equity Incentive Plan (the 2014 Plan). The 2014 Plan was approved by our stockholders at the annual meeting of stockholders held in November 2014. The 2014 Plan as approved by the stockholders authorized the issuance up to an aggregate of 2,350,000 1,650,000 4,000,000 Warrants A summary of the status of stock warrants at September 30, 2015, and the changes during the nine months then ended, is presented in the following table: Weighted Weighted Average Aggregate Shares Average Remaining Intrinsic Under Exercise Contractual Value Warrants Price Life (in thousands) Outstanding at December 31, 2014 11,084,426 $ 2.51 3.85 $ 59,518 Issued - Exercised (3,847,210 ) $ 2.50 Expired - Outstanding and exercisable at September 30, 2015 7,237,216 $ 2.51 3.3 $ 23,593 During the nine months ended September 30, 2015, the Company received $ 9.6 3,847,210 |
LICENSE AND COMMITMENTS
LICENSE AND COMMITMENTS | 9 Months Ended |
Sep. 30, 2015 | |
LICENSE AND COMMITMENTS [Abstract] | |
LICENSE AND COMMITMENTS | NOTE 7. LICENSE AND COMMITMENTS National Institutes of Health and the National Cancer Institute Cooperative Research and Development Agreement Effective August 5, 2011, the Company signed a Cooperative Research and Development Agreement (CRADA) with the National Institutes of Health and the National Cancer Institute (NCI). Under the terms of the five-year cooperative research and development agreement, the Company will work with Dr. Steven A. Rosenberg, M.D., Ph.D., chief of NCI's Surgery Branch, to develop adoptive cell immunotherapies that are designed to destroy metastatic melanoma cells using a patient's tumor infiltrating lymphocytes. On January 22, 2015, the Company executed an amendment (the Amendment) to the CRADA to include four new indications. As amended, in addition to metastatic melanoma, the CRADA now also includes the development of TIL therapy for the treatment of patients with bladder, lung, triple-negative breast, and HPV-associated cancers. Under the Amendment, the NCI also has agreed to provide the Company with samples of all tumors covered by the Amendment for performing studies related to improving TIL selection and/or TIL scale-out production and process development. Although the CRADA has a five year term, either party to the CRADA has the right to terminate the CRADA upon 60 days' notice to the other party. National Institutes of Health Development and Manufacture TIL Effective October 5, 2011, the Company entered into a Patent License Agreement with the National Institutes of Health, an agency of the United States Public Health Service within the Department of Health and Human Services (NIH), which License Agreement was subsequently amended on February 9, 2015 and October 2, 2015. Pursuant to the License Agreement as amended, NIH granted to the Company an exclusive worldwide right and license to develop and manufacture certain proprietary autologous tumor infiltrating lymphocyte adoptive cell therapy products for the treatment of metastatic melanoma, ovarian cancer, breast cancer, and colorectal cancer. The License Agreement requires the Company to pay royalties based on a percentage of net sales (which percentage is in the mid-single digits and subject to certain annual minimum royalty payments), a percentage of revenues from sublicensing arrangements, and lump sum benchmark royalty payments on the achievement of certain clinical and regulatory milestones for each of the various indications and other direct costs incurred by NIH pursuant to the agreement. NIH - Exclusive Patent License Agreement On February 10, 2015, the Company entered into an exclusive Patent License Agreement with the NIH under which the Company received an exclusive, world-wide license to the NIH's rights in and to two patent-pending technologies related to methods for improving tumor-infiltrating lymphocytes for adoptive cell therapy. The licensed technologies relate to the more potent and efficient production of TIL from melanoma tumors by selecting for T-cell populations that express various inhibitory receptors. Unless terminated sooner, the license shall remain in effect until the last licensed patent right expires. In consideration for the exclusive rights granted under the exclusive Patent License Agreement, the Company agreed to pay the NIH a non-refundable upfront licensing fee which was recognized as research and development expense during the nine months ended September 30, 2015. The Company also agreed to pay customary royalties based on a percentage of net sales (which percentage is in the mid-single digits), a percentage of revenues from sublicensing arrangements, and lump sum benchmark payments upon the successful completion of the Company's first Phase 2 clinical study, the successful completion of the Company's first Phase 3 clinical study, the receipt of the first FDA approval or foreign equivalent for a licensed product or process resulting from the licensed technologies, the first commercial sale of a licensed product or process in the United States, and the first commercial sale of a licensed product or process in any foreign country. H. Lee Moffitt Cancer Center Research Collaboration Agreement In September, 2014, we entered into a research collaboration agreement with the H. Lee Moffitt Cancer Center and Research Institute, Inc. to jointly engage in transitional research and development of adoptive tumor-infiltrating lymphocyte cell therapy with improved anti-tumor properties and process. Exclusive License Agreement On July 21, 2014, the Company entered into an Exclusive License Agreement (the Moffitt License Agreement), effective as of June 28, 2014, with the H. Lee Moffitt Cancer Center and Research Institute, Inc. (Moffitt) under which the Company received an exclusive, world-wide license to Moffitt's rights in and to two patent-pending technologies related to methods for improving tumor-infiltrating lymphocytes for adoptive cell therapy. Unless earlier terminated, the term of the license extends until the earlier of the expiration of the last patent related to the licensed technology or 20 years after the effective date of the license agreement. Pursuant to the Moffitt License Agreement, the Company paid an upfront licensing fee which was recognized as research and development expense during 2014. A patent issuance fee will also be payable under the Moffitt License Agreement, upon the issuance of the first U.S. patent covering the subject technology. In addition, the Company agreed to pay milestone license fees upon completion of specified milestones, customary royalties based on a specified percentage of net sales (which percentage is in the low single digits) and sublicensing payments, as applicable, and annual minimum royalties beginning with the first sale of products based on the licensed technologies, which minimum royalties will be credited against the percentage royalty payments otherwise payable in that year. The Company will also be responsible for all costs associated with the preparation, filing, maintenance and prosecution of the patent applications and patents covered by the Moffitt License Agreement related to the treatment of any cancers in the United States, Europe and Japan and in other countries selected that the Company and Moffitt agreed to. During the nine months ended September 30, 2015 and 2014, the Company recognized $ 2.5 0.9 Future guaranteed commitments under all of the Company's agreements amount to (in thousands): Year Amount 2015 $ 3,104 2016 2,874 Total $ 5,978 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended |
Sep. 30, 2015 | |
LEGAL PROCEEDINGS [Abstract] | |
LEGAL PROCEEDINGS | NOTE 8. LEGAL PROCEEDINGS On August 18, 2015, MBA Holdings, LLC filed a breach of contract lawsuit against the Company in the Superior Court of California, County of Los Angeles (MBA Holdings, LLC v. Lion Biotechnologies, Inc., Case BC 591513). The complaint alleges that the Company and MBA Holdings, LLC were parties to (i) a June 15, 2012 Finder's Fee Agreement, (ii) a Confidentiality, Non-Disclosure and Non-Circumvention Agreement, dated June 13, 2012, and (iii) a Consulting Agreement, dated July 9, 2012, and that the Company breached these agreements by failing to compensate MBA Holdings for introducing Roth Capital Partners, LLC and Highline Research Advisors LLC to the Company in connection with the $ 23.3 7,746,000 The Company believes that there is no merit to the claims made by MBA Holdings in the complaint. On September 9, 2015 the Company provided MBA Holdings with evidence that the Company dealt with a certain investment banker on a financing transaction at least six months before MBA Holdings purportedly introduced the Company to the banker, and that a certain research analyst group were known to the Company prior to the purported introduction. Accordingly, the Company has demanded that MBA Holdings dismiss the lawsuit. To date, MBA Holdings has not served the complaint on the Company, dismissed the lawsuit, or responded to the Company's last communications. Accordingly, on October 26, 2015 the Company renewed its demand on MBA and its counsel to dismiss the suit or face exposure to damages for malicious prosecution, voluntarily entered an appearance in the case, and initiated discovery proceedings for the purpose of pursuing an early resolution of the case in the Company's favor. The Company intends to vigorously defend itself in this matter and will seek a prevailing-party award of its attorney's fees and other litigation costs pursuant to contractual provisions in the agreements appended to MBA's complaint. There are no other pending legal proceedings to which the Company is a party or of which its property is the subject other than as previously reported. |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. The carrying amounts reported in the Balance Sheets for cash and cash equivalents are valued at cost, which approximates their fair value. |
Short-term Investments | Short-term Investments The Company's short-term investments represent available for sale securities and are recorded at fair value and unrealized gains and losses are recorded within accumulated other comprehensive income (loss). The estimated fair value of the available for sale securities is determined based on quoted market prices or rates for similar instruments. In addition, the cost of debt securities in this category is adjusted for amortization of premium and accretion of discount to maturity. The Company evaluates securities with unrealized losses to determine whether such losses, if any, are other than |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives of two five |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, excluding unvested shares of restricted common stock. Shares of restricted stock subject to vesting are included in basic weighted average common shares outstanding from the time they vest. Diluted earnings per share is computed by dividing the net income applicable to common stock holders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive. When calculating diluted net income per share, shares of restricted stock subject to vesting are included in diluted weighted average common shares outstanding as of their grant date. At September 30, 2015 and 2014, basic and diluted net loss per share are the same, as the effect of potentially dilutive securities was antidilutive. At September 30, 2015, potentially dilutive securities include options to acquire 2,704,195 7,237,216 1,847,000 494,001 1,098,750 11,172,426 2,847,000 |
Fair Value Measurements | Fair Value Measurements Under FASB ASC 820, Fair Value Measurements and Disclosures Assets and liabilities recorded at fair value in our financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: Level 1Inputs are unadjusted, quoted prices in active markets for identical assets at the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The fair valued assets we hold that are generally included under this Level 1 are money market securities where fair value is based on publicly quoted prices. Level 2Are inputs, other than quoted prices included in Level 1, that are either directly or indirectly observable for the asset or liability through correlation with market data at the reporting date and for the duration of the instrument's anticipated life. The fair valued assets we hold that are generally assessed under Level 2 are corporate bonds and commercial paper. We utilize third party pricing services in developing fair value measurements where fair value is based on valuation methodologies such as models using observable market inputs, including benchmark yields, reported trades, broker/dealer quotes, bids, offers and other reference data. We use quotes from external pricing service providers and other on-line quotation systems to verify the fair value of investments provided by our third party pricing service providers. We review independent auditor's reports from our third party pricing service providers particularly regarding the controls over pricing and valuation of financial instruments and ensure that our internal controls address certain control deficiencies, if any, and complementary user entity controls are in place. Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management's best estimate of what market participants would use in pricing the asset or liability at the reporting date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. We do not have fair valued assets classified under Level 3. |
Fair Value on a Recurring Basis | Fair Value on a Recurring Basis Financial assets measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of September 30, 2015 Level 1 Level 2 Level 3 Total Money market funds $ 20,562 $ - $ - $ 20,562 Corporate debt securities - 79,374 - 79,374 Total $ 20,562 $ 79,374 $ $ 99,936 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include accounting for potential liabilities and the assumptions made in valuing stock instruments issued for services. |
Stock-Based Compensation | Stock-Based Compensation The Company periodically grants stock options and warrants to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option grants to employees based on the authoritative guidance provided by the Financial Accounting Standards Board where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option grants to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. The Company issues restricted shares of its common stock for share-based compensation programs. The Company measures the compensation cost with respect to restricted shares to employees based upon the estimated fair value of the equity instruments at the date of the grant, and is recognized as expense over the period which an employee is required to provide services in exchange for the award. The fair value of the Company's common stock option grants is estimated using a Black-Scholes option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the common stock options, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model, and based on actual experience. The assumptions used in the Black-Scholes option pricing model could materially affect compensation expense recorded in future periods. Total stock-based compensation expense related to all of our stock-based awards was as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Operating expenses $ 1,492 $ 658 $ 3,726 $ 1,905 Research and development 895 282 2,050 817 Total stock-based compensation expense $ 2,387 $ 940 $ 5,776 $ 2,722 |
Research and Development | Research and Development Research and development costs consist primarily of fees paid to consultants and outside service providers, patent fees and costs, and other expenses relating to the acquisition, design, development and testing of the Company's treatments and product candidates. Research and development costs are expensed as incurred, unless the achievement of milestones, the completion of contracted work, or other information indicates that a different expensing schedule is more appropriate. The Company reviews the status of its research and development contracts on a quarterly basis. |
Concentrations | Concentrations Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and short-term investments. The Company maintains cash balances at one bank. As of September 30, 2015, the Company's cash balances were in excess of insured limits maintained at this bank. Management believes that the financial institution that hold the Company's cash are financially sound and, accordingly, minimal credit risk exists. At September 30, 2015, the Company's short-term investments were invested in short-term fixed income debt securities of domestic and foreign high credit issuers and in money market funds. The Company's investment policy limits investments to certain types of instruments such as certificates of deposit, money market instruments, obligations issued by the U.S. government and U.S. government agencies as well as corporate debt securities, and places restrictions on maturities and concentration by type and issuer. At September 30, 2015, approximately 56 25 19 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted in annual reporting periods beginning after December 15, 2016, and the interim periods within that year, and either full retrospective adoption or modified retrospective adoption is permitted. The Company is in the process of evaluating the impact of ASU 2014-09 on the Company's financial statements and disclosures. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation Stock Compensation (Topic 718). The pronouncement was issued to clarify the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company's consolidated financial position or results of operations. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. |
Reclassifications | Reclassifications In presenting the Company's statement of operations for the three and nine month periods ended September 30, 2014, the Company has reclassified $ 0.8 0.3 |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES [Abstract] | |
Schedule of Assets Measured at Fair Value | Assets at Fair Value as of September 30, 2015 Level 1 Level 2 Level 3 Total Money market funds $ 20,562 $ - $ - $ 20,562 Corporate debt securities - 79,374 - 79,374 Total $ 20,562 $ 79,374 $ $ 99,936 |
Schedule of Stock-Based Compensation | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Operating expenses $ 1,492 $ 658 $ 3,726 $ 1,905 Research and development 895 282 2,050 817 Total stock-based compensation expense $ 2,387 $ 940 $ 5,776 $ 2,722 |
CASH, MONEY MARKET FUNDS, AND19
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS [Abstract] | |
Schedule of Cash, Money Market Funds and Short-Term Investments | September 30, 2015 December 31, 2014 Checking and savings accounts (reported as cash and cash equivalents) $ 10,210 $ 45 Money market funds 20,562 - Corporate debt securities (reported as short-term investments) 79,374 - $ 110,146 $ 45 |
Schedule of Unrealized Gains and Losses | Gross Gross Unrealized Unrealized September 30, 2015 Cost Gains Gains Fair Value Money market funds $ 20,562 $ - $ - $ 20,562 Corporate debt securities 79,336 38 - 79,374 Total $ 99,897 $ 38 $ - $ 99,936 |
Schedule of Contractual Maturities | Within One Year Money market funds $ 20,562 Corporate debt securities 79,374 $ 99,936 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Schedule of Property and Equipment | September 30, 2015 December 31, 2014 Laboratory equipment $ 1,563 $ 688 Leasehold improvements 853 762 Computer, software, and office equipment 211 185 2,627 1,635 Accumulated depreciation (794 ) (103 ) $ 1,833 $ 1,532 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
STOCKHOLDERS' EQUITY [Abstract] | |
Schedule of Restricted Stock Activity | Number of Shares Weighted Average Grant Date Fair Value Non-vested shares, January 1, 2015 757,500 $ 6.84 Granted Vested (233,499 ) 4.37 Forfeited (30,000 ) 8.24 Non-vested shares, September 30, 2015 494,001 $ 6.56 |
STOCK OPTIONS AND WARRANTS (Tab
STOCK OPTIONS AND WARRANTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
STOCK OPTIONS AND WARRANTS [Abstract] | |
Schedule of Status of Stock Options | Weighted Weighted Average Aggregate Shares Average Remaining Intrinsic Under Exercise Contractual Value Option Price Life (in thousands) Outstanding at January 1, 2015 1,857,877 $ 7.31 8.2 $ 2,875 Granted 943,750 9.18 9.8 Exercised (10,000 ) Expired/Forfeited (87,432 ) 5.92 7.29 - Outstanding at September 30, 2015 2,704,195 $ 8.05 8.16 $ 64 Exercisable at September 30, 2015 883,449 $ 8.63 6.67 $ 98 |
Schedule of Status of Stock Warrants | Weighted Weighted Average Aggregate Shares Average Remaining Intrinsic Under Exercise Contractual Value Warrants Price Life (in thousands) Outstanding at December 31, 2014 11,084,426 $ 2.51 3.85 $ 59,518 Issued - Exercised (3,847,210 ) $ 2.50 Expired - Outstanding and exercisable at September 30, 2015 7,237,216 $ 2.51 3.3 $ 23,593 |
LICENSE AND COMMITMENTS (Tables
LICENSE AND COMMITMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
LICENSE AND COMMITMENTS [Abstract] | |
Schedule of Purchase Obligation | Year Amount 2015 $ 3,104 2016 2,874 Total $ 5,978 |
GENERAL ORGANIZATION AND BUSI24
GENERAL ORGANIZATION AND BUSINESS (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Mar. 03, 2015 | Dec. 22, 2014 | Nov. 05, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
GENERAL ORGANIZATION AND BUSINESS [Abstract] | ||||||||
Net loss | $ (7,635) | $ (2,798) | $ (19,283) | $ (7,168) | ||||
Net cash used in operating activities | (11,802) | $ (5,318) | ||||||
Cash, money market funds and short-term investments | 110,146 | 110,146 | $ 45 | |||||
Stockholder's equity | 109,369 | 109,369 | $ 44,846 | |||||
Working capital | $ 107,500 | 107,500 | ||||||
Shares issued during period | 9,200,000 | 6,000,000 | ||||||
Share price | $ 8 | $ 5.75 | ||||||
Proceeds from the issuance of common stock, net | $ 68,300 | $ 32,200 | $ 68,308 | |||||
Proceeds from issuance of private placement | $ 23,300 |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Concentration Risk [Line Items] | |||
Stock-based compensation cost reclassified | $ 0.8 | $ 0.3 | |
Equity Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,704,195 | 1,098,750 | |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,237,216 | 11,172,426 | |
Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,847,000 | 2,847,000 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 494,001 | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 2 years | ||
Five Companies [Member] | Short-term investments [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 56.00% | ||
Various Other Domestic Issuers [Member] | Short-term investments [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 25.00% | ||
Foreign Issuer [Member] | Short-term investments [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Schedule of Assets Measured at Fair Value) (Details) - Fair Value, Measurements, Recurring [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | $ 99,936 |
Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | 20,562 |
Corporate Debt Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | 79,374 |
Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | 20,562 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | $ 20,562 |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | $ 79,374 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | $ 79,374 |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value | |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, fair value |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 2,387 | $ 940 | $ 5,776 | $ 2,722 |
Operating expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,492 | 658 | 3,726 | 1,905 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 895 | $ 282 | $ 2,050 | $ 817 |
CASH, MONEY MARKET FUNDS, AND28
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS (Schedule of Cash, Money Market Funds, and Short-Term Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS [Abstract] | ||||
Checking and savings accounts (reported as cash and cash equivalents) | $ 10,210 | $ 44,910 | $ 17,190 | $ 19,673 |
Money market funds | 20,562 | |||
Corporate debt securities (reported as short-term investments) | 79,374 | |||
Total | $ 110,146 | $ 45 |
CASH, MONEY MARKET FUNDS, AND29
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS (Schedule of Gross Unrealized Gains and Losses) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Schedule of Cost-method Investments [Line Items] | |
Amortized Cost | $ 99,897 |
Gross Unrealized Gains | $ 38 |
Gross Unrealized Losses | |
Fair Value | $ 99,936 |
Money Market Funds [Member] | |
Schedule of Cost-method Investments [Line Items] | |
Amortized Cost | $ 20,562 |
Gross Unrealized Gains | |
Gross Unrealized Losses | |
Fair Value | $ 20,562 |
Corporate Debt Securities [Member] | |
Schedule of Cost-method Investments [Line Items] | |
Amortized Cost | 79,336 |
Gross Unrealized Gains | $ 38 |
Gross Unrealized Losses | |
Fair Value | $ 79,374 |
CASH, MONEY MARKET FUNDS, AND30
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS (Schedule of Contractual Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS [Abstract] | ||
Money market funds | $ 20,562 | |
Corporate debt securities | 79,374 | |
Total | $ 99,936 |
CASH, MONEY MARKET FUNDS, AND31
CASH, MONEY MARKET FUNDS, AND SHORT-TERM INVESTMENTS (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | ||
Short-term investments available for sale | $ 79,374 | |
Money market funds | $ 20,562 | |
Five Companies [Member] | Short-term investments [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 56.00% | |
Various Other Domestic Issuers [Member] | Short-term investments [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 25.00% | |
Foreign Issuer [Member] | Short-term investments [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 19.00% |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 2,627 | $ 2,627 | $ 1,635 | ||
Accumulated depreciation | (794) | (794) | (103) | ||
Property and equipment, net | 1,833 | 1,833 | 1,532 | ||
Depreciation expense | 266 | $ 5 | 691 | $ 23 | |
Laboratory equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,563 | 1,563 | 688 | ||
Leasehold improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 853 | 853 | 762 | ||
Computer, software, and office equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 211 | $ 211 | $ 185 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 03, 2015 | Dec. 22, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||||
Shares issued during period | 9,200,000 | 6,000,000 | |||
Share price | $ 8 | $ 5.75 | |||
Proceeds from the issuance of common stock, net | $ 68,300 | $ 32,200 | $ 68,308 | ||
Conversion of Stock, Shares Issued | 1,000,000 | ||||
Conversion of Stock, Shares Converted | 2,000 | ||||
Restricted Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Granted | 797,500 | ||||
Vesting period | 3 years | ||||
Nonvested, fair value | $ 5,300 | ||||
Share-based compensation | $ 1,300 | ||||
Vested, fair value | $ 1,500 | ||||
Unrecognized compensation cost | $ 2,500 | ||||
Series A Convertible Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Conversion of Stock, Shares Converted | 500 |
STOCKHOLDER'S EQUITY (Schedule
STOCKHOLDER'S EQUITY (Schedule of Restricted Stock Activity) (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Shares | |
Non-vested shares, January 1, 2015 | shares | 757,500 |
Vested | shares | (233,499) |
Forfeited | shares | (30,000) |
Non-vested shares, September 30, 2015 | shares | 494,001 |
Weighted Average Grant Date Fair Value | |
Non-vested shares, January 1, 2015 | $ 6.84 |
Vested | 4.37 |
Forfeited | 8.24 |
Non-vested shares, September 30, 2015 | $ 6.56 |
STOCK OPTIONS AND WARRANTS (Nar
STOCK OPTIONS AND WARRANTS (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Apr. 10, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Nov. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from warrant exercises | $ 9,618 | $ 3,002 | ||
Warrant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | ||||
Exercised | 3,847,210 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 943,750 | |||
Exercised | 10,000 | |||
Share-based compensation | $ 4,100 | $ 1,900 | ||
Unrecognized compensation cost | 10,300 | |||
Fair value of options | $ 8,300 | |||
Expected volatility | 211.00% | |||
Discount rate | 1.57% | |||
Expected dividend yield | 0.00% | |||
Expected life | 6 years | |||
2014 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 4,000,000 | 2,350,000 | ||
Number of additional shares authorized | 1,650,000 | |||
Minimum [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, period for recognition | 9 months | |||
Vesting period | 1 year | |||
Maximum [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, period for recognition | 3 years | |||
Vesting period | 3 years |
STOCK OPTIONS AND WARRANTS (Sch
STOCK OPTIONS AND WARRANTS (Schedule of Status of Stock Options) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Shares Under Option | ||
Outstanding, beginning balance | 1,857,877 | |
Granted | 943,750 | |
Exercised | (10,000) | |
Expired/Forfeited | (87,432) | |
Outstanding, ending balance | 2,704,195 | 1,857,877 |
Exercisable | 883,449 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance | $ 7.31 | |
Granted | 9.18 | |
Expired/Forfeited | 5.92 | |
Outstanding, ending balance | 8.05 | $ 7.31 |
Exercisable | $ 8.63 | |
Weighted Average Remaining Contractual Life | ||
Outstanding | 8 years 1 month 28 days | 8 years 2 months 12 days |
Granted | 9 years 9 months 18 days | |
Expired/Forfeited | 7 years 3 months 14 days | |
Exercisable | 6 years 8 months 1 day | |
Aggregate Intrinsic Value | ||
Outstanding, beginning balance | $ 2,875 | |
Expired/Forfeited | ||
Outstanding, ending balance | $ 64 | $ 2,875 |
Exercisable | $ 98 |
STOCK OPTIONS AND WARRANTS (S37
STOCK OPTIONS AND WARRANTS (Schedule of Status of Stock Warrants) (Details) - Warrant [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Shares Under Warrants | ||
Outstanding, beginning balance | 11,084,426 | |
Issued | ||
Exercised | (3,847,210) | |
Expired | ||
Outstanding, ending balance | 7,237,216 | 11,084,426 |
Exercisable | 7,237,216 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance | $ 2.51 | |
Exercised | 2.50 | |
Outstanding, ending balance | 2.51 | $ 2.51 |
Exercisable | $ 2.51 | |
Weighted Average Remaining Contractual Life | ||
Outstanding | 3 years 3 months 18 days | 3 years 10 months 6 days |
Exercisable | 3 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding, beginning balance | $ 59,518 | |
Outstanding, ending balance | 23,593 | $ 59,518 |
Exercisable ending balance | $ 23,593 |
LICENSE AND COMMITMENTS (Narrat
LICENSE AND COMMITMENTS (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
LICENSE AND COMMITMENTS [Abstract] | ||
License agreement expense | $ 2.5 | $ 0.9 |
LICENSE AND COMMITMENTS (Schedu
LICENSE AND COMMITMENTS (Schedule of Purchase Obligation) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
LICENSE AND COMMITMENTS [Abstract] | |
2,015 | $ 3,104 |
2,016 | 2,874 |
Total | $ 5,978 |
LEGAL PROCEEDINGS (Details)
LEGAL PROCEEDINGS (Details) - USD ($) | 1 Months Ended | 9 Months Ended |
Nov. 05, 2013 | Sep. 30, 2015 | |
LEGAL PROCEEDINGS [Abstract] | ||
Proceeds from issuance of private placement | $ 23,300,000 | |
Damages sought | $ 7,746,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Subsequent Event [Line Items] | ||
Proceeds from warrant exercises | $ 9,618 | $ 3,002 |
Warrant [Member] | ||
Subsequent Event [Line Items] | ||
Purchase of common stock | 3,847,210 |