Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | IOVANCE BIOTHERAPEUTICS, INC. | |
Entity Central Index Key | 0001425205 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | IOVA | |
Entity Common Stock, Shares Outstanding | 123,514,231 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 54,093 | $ 82,152 |
Short-term investments | 385,925 | 386,371 |
Prepaid expenses and other current assets | 4,735 | 6,640 |
Total Current Assets | 444,753 | 475,163 |
Property and equipment, net | 3,504 | 2,683 |
Operating lease right-of-use assets | 9,957 | 0 |
Long-term assets | 3,288 | 2,975 |
Total Assets | 461,502 | 480,821 |
Current Liabilities | ||
Accounts payable | 7,589 | 2,739 |
Accrued expenses | 8,489 | 11,659 |
Operating lease liabilities | 6,059 | 0 |
Total Current Liabilities | 22,137 | 14,398 |
Non-Current Liabilities | ||
Operating lease liabilities | 4,380 | 0 |
Other liabilities | 53 | 230 |
Total Non-Current Liabilities | 4,433 | 230 |
Total Liabilities | 26,570 | 14,628 |
Commitments and contingencies (Note 9) | ||
Stockholders' Equity | ||
Common stock, $0.000041666 par value; 150,000,000 shares authorized, 123,395,113 and 123,415,576 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 5 | 5 |
Accumulated other comprehensive income (loss) | 138 | (42) |
Additional paid-in capital | 844,789 | 838,984 |
Accumulated deficit | (410,006) | (372,760) |
Total Stockholders' Equity | 434,932 | 466,193 |
Total Liabilities and Stockholders' Equity | 461,502 | 480,821 |
Series A Convertible Preferred stock [Member] | ||
Stockholders' Equity | ||
Preferred stock,Value | 0 | 0 |
Total Stockholders' Equity | 0 | 0 |
Series B Convertible Preferred stock [Member] | ||
Stockholders' Equity | ||
Preferred stock,Value | 6 | 6 |
Total Stockholders' Equity | $ 6 | $ 6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Common Stock, Par or Stated Value Per Share | $ 0.000041666 | $ 0.000041666 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 123,395,113 | 123,415,576 |
Common Stock, Shares, Outstanding | 123,395,113 | 123,415,576 |
Series A Convertible Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 17,000 | 17,000 |
Preferred Stock, Shares Issued | 194 | 194 |
Preferred Stock, Shares Outstanding | 194 | 194 |
Preferred Stock, Redemption Amount | $ 194 | $ 194 |
Series B Convertible Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 11,500,000 | 11,500,000 |
Preferred Stock, Shares Issued | 5,854,845 | 5,854,845 |
Preferred Stock, Shares Outstanding | 5,854,845 | 5,854,845 |
Preferred Stock, Redemption Amount | $ 27,811 | $ 27,811 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | $ 0 | $ 0 |
Costs and expenses | ||
Research and development expenses | 30,905 | 19,912 |
General and administrative expenses | 9,081 | 6,965 |
Total costs and expenses | 39,986 | 26,877 |
Loss from operations | (39,986) | (26,877) |
Other income | ||
Interest income, net | 3,036 | 362 |
Net Loss | $ (36,950) | $ (26,515) |
Net Loss Per Common Share, Basic and Diluted | $ (0.30) | $ (0.31) |
Weighted-Average Common Shares Outstanding, Basic and Diluted | 123,415 | 84,350 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Loss | $ (36,950) | $ (26,515) |
Other comprehensive income: | ||
Unrealized gain on short-term investments | 180 | 0 |
Comprehensive Loss | $ (36,770) | $ (26,515) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Series A Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] |
Beginning Balance at Dec. 31, 2017 | $ 145,481 | $ 3 | $ 394,651 | $ 0 | $ (249,180) | $ 0 | $ 7 |
Beginning Balance (in Shares) at Dec. 31, 2017 | 73,164,914 | 1,694 | 7,378,241 | ||||
Stock-based compensation expense | 4,104 | 4,104 | |||||
Vesting of restricted shares issued for services | 0 | ||||||
Vesting of restricted shares issued for services (in shares) | 11,459 | ||||||
Cancellation of restricted shares | 0 | ||||||
Cancellation of restricted shares (in Shares) | (4,408) | ||||||
Tax payments related to shares withheld for vested restricted stock units | (60) | $ 0 | (60) | ||||
Common stock issued upon exercise of warrants | 1,826 | 1,826 | |||||
Common stock issued upon exercise of warrants (in Shares) | 730,381 | ||||||
Common stock issued upon exercise of stock options | 5,630 | $ 0 | 5,630 | ||||
Common stock issued upon exercise of stock options (in shares) | 703,071 | ||||||
Unrealized gain on short-term investments | 0 | ||||||
Common stock sold in public offering, net of offering costs | 162,092 | 162,092 | |||||
Common stock sold in public offering, net of offering costs (in shares) | 15,000,000 | ||||||
Net loss | (26,515) | (26,515) | |||||
Ending Balance at Mar. 31, 2018 | 292,558 | $ 3 | 568,243 | 0 | (275,695) | $ 0 | $ 7 |
Ending Balance (in Shares) at Mar. 31, 2018 | 89,605,417 | 1,694 | 7,378,241 | ||||
Beginning Balance at Dec. 31, 2018 | 466,193 | $ 5 | 838,984 | (42) | (372,760) | $ 0 | $ 6 |
Beginning Balance (in Shares) at Dec. 31, 2018 | 123,415,576 | 194 | 5,854,845 | ||||
Stock-based compensation expense | 5,846 | 5,846 | |||||
Vesting of restricted shares issued for services | 1 | $ 1 | 0 | ||||
Vesting of restricted shares issued for services (in shares) | 7,037 | ||||||
Tax payments related to shares withheld for vested restricted stock units | (71) | (71) | |||||
Common stock issued upon exercise of stock options | 69 | $ 0 | 69 | ||||
Common stock issued upon exercise of stock options (in shares) | 5,000 | ||||||
Unrealized gain on short-term investments | 180 | 180 | |||||
Cancellation of common shares from settlement of dispute | (336) | $ (1) | (335) | ||||
Cancellation of common shares from settlement of dispute (in Shares) | (32,500) | ||||||
Net loss | (36,950) | (36,950) | |||||
Ending Balance at Mar. 31, 2019 | 434,932 | $ 5 | 844,789 | $ 138 | (410,006) | $ 0 | $ 6 |
Ending Balance (in Shares) at Mar. 31, 2019 | 123,395,113 | 194 | 5,854,845 | ||||
Adoption of ASU 2018-07 | $ 0 | $ 0 | $ 296 | $ (296) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net loss | $ (36,950) | $ (26,515) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 271 | 228 |
Noncash lease expense | 1,424 | 0 |
Loss on disposal of assets | 0 | 9 |
Gain on settlement of dispute | (335) | 0 |
Accretion (amortization) of discounts and premiums on investments | (1,232) | 0 |
Stock-based compensation expense | 5,846 | 4,104 |
Changes in assets and liabilities: | ||
Prepaid expenses, other assets, and long-term assets | 1,592 | (368) |
Operating lease liabilities (right-of-use assets) | (942) | 0 |
Accounts payable | 4,582 | 5,239 |
Accrued expenses and other liabilities | (3,346) | (546) |
Net cash used in operating activities | (29,090) | (17,849) |
Cash Flows from Investing Activities | ||
Maturities of short-term investments | 91,042 | 0 |
Purchase of short-term investments | (89,185) | 0 |
Purchase of property and equipment | (824) | (22) |
Net cash provided by (used in) investing activities | 1,033 | (22) |
Cash Flows from Financing Activities | ||
Tax payments related to shares withheld for vested restricted stock awards | (71) | (62) |
Proceeds from the issuance of common stock upon exercise of warrants | 0 | 1,826 |
Proceeds from the issuance of common stock upon exercise of options | 69 | 5,630 |
Proceeds from the issuance of common stock, net | 0 | 162,186 |
Net cash (used in) provided by financing activities | (2) | 169,580 |
Net (decrease) / increase in cash and cash equivalents | (28,059) | 151,709 |
Cash and Cash Equivalents, Beginning of Period | 82,152 | 145,373 |
Cash and Cash Equivalents, End of Period | 54,093 | 297,082 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Unrealized gain on short-term investments | 180 | 0 |
Acquisitions of property and equipment included in accounts payable | (268) | (12) |
Offering costs under accounts payable and accrued expenses | $ 0 | $ (93) |
GENERAL ORGANIZATION AND BUSINE
GENERAL ORGANIZATION AND BUSINESS | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL ORGANIZATION AND BUSINESS | NOTE 1. GENERAL ORGANIZATION AND BUSINESS Iovance Biotherapeutics, 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. Tumor infiltrating lymphocyte or TIL therapy is a platform technology that has been studied and continues to be studied for the treatment of metastatic melanoma, metastatic cervical cancer, and various other cancers by the National Cancer Institute, or NCI. The Company’s lead product candidate, lifileucel (formerly known as LN-144) for metastatic melanoma, is an autologous adoptive cell therapy utilizing TIL, which are T cells derived from patients’ tumors. The Company is also developing a second product candidate, an autologous adoptive cell therapy utilizing TIL for the treatment of cancers other than metastatic melanoma, which is known as LN-145. The Company is investigating the effectiveness and safety of TIL therapy for the treatment of metastatic melanoma, squamous cell carcinoma of the head and neck, cervical cancer, and metastatic non-small cell lung cancer through company sponsored trials, as well as other oncology indications. The Company is currently conducting the pivotal cohort of its innovaTIL-01 clinical trial, also known as C-144-01, of lifileucel in patients with metastatic melanoma. The Company has recently amended the protocol of its innovaTIL-04 clinical trial, also known as C-145-04, of LN-145 in cervical cancer patients in anticipation of discussions with the U.S. Food and Drug Administration (“FDA”) on a potential registrational path. On June 1, 2017, the Company reincorporated to become a company governed by Delaware corporation laws. Basis of Presentation of Unaudited Condensed Consolidated Financial Information The unaudited condensed consolidated financial statements of the Company for the three months ended March 31, 2019 and 2018 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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 GAAP 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, 2018, was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2019. These financial statements should be read in conjunction with that report. Liquidity The Company is currently engaged in the development of therapeutics to fight cancer, specifically solid tumors. The Company currently does not have any commercial products and has not yet generated any revenues from its business. The Company currently does not anticipate that it will generate any revenues from the sale or licensing of any of its product candidates during the 12 months from the date these financial statements are issued. The Company has incurred a net loss of $37.0 million for the three months ended March 31, 2019 and used $29.1 million of cash in its operating activities during the three months ended March 31, 2019. In January 2018, the Company closed an underwritten public offering of 15,000,000 shares of the Company’s common stock at a public offering price of $11.50 per share, before underwriting discounts. The net proceeds from the offering, after deducting the underwriting discounts and commissions and other offering expenses payable by the Company, were $162.0 million. In October 2018, the Company completed an underwritten public offering of 25,300,000 shares of the Company’s common stock at a public offering price of $9.97 per share, before underwriting discounts. The net proceeds from the offering, after deducting the underwriting discounts and commissions and other offering expenses payable by the Company, were $236.7 million. As of March 31, 2019, the Company had $440.0 million of cash and cash equivalents and short-term investments ($54.1 million of cash and cash equivalents and $385.9 million in short-term investments). The Company expects to further increase its research and development activities, which will increase the amount of cash used during 2019 and beyond. Specifically, the Company expects continued spending on its current and planned clinical trials, continued expansion of manufacturing activities, including construction of a manufacturing facility, higher payroll expenses as the Company increases its professional and scientific staff, increased research and development activities and initiation of pre-commercial activities. However, the extent and the timing of these expenditures are under the control of the Company. Based on the funds the Company has available as of the date these financial statements are issued, the Company believes that it has sufficient capital to fund its anticipated operating expenses for at least next twelve months from the date these financial statements are issued Concentrations of Risk The Company is subject to credit risk from our portfolio of cash equivalents and short-term investments. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. The Company does not believe it is exposed to any significant concentrations of credit risk from these financial instruments. The goals of its investment policy, in order of priority, are as follows: safety and preservation of principal and diversification of risk; liquidity of investments sufficient to meet cash flow requirements; and a competitive after-tax rate of return. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash, Cash Equivalents, and Short-term Investments The Company’s cash and cash equivalents include short-term investments with original maturities of three months or less when purchased. The Company's short-term investments are classified as “available-for-sale”. The Company includes these investments in current assets and carries them at fair value. Unrealized gains and losses on available-for-sale securities are included in accumulated other comprehensive loss. The cost of debt securities is adjusted for the amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in net interest income in the consolidated statements operations. Gains and losses on securities sold are recorded based on the specific identification method and are included in net interest income in the consolidated statement of operations. The Company has not incurred any realized gains or losses from sales of securities to date. 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. Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the sum of the weighted average number of shares of common stock outstanding and the dilutive common stock equivalent shares outstanding during the period. The Company’s potentially dilutive common stock equivalent shares, which include incremental common shares issuable upon (i) the exercise of outstanding stock options and warrants (ii) vesting of restricted stock units and restricted stock awards, and (iii) conversion of preferred stock, are only included in the calculation of diluted net loss per share when their effect is dilutive. At March 31, 2019 and 2018, the following outstanding common stock equivalents have been excluded from the calculation of net loss per share because their impact would be anti-dilutive. March 31, 2019 2018 Stock options 9,274,973 6,951,067 Warrants - 5,570,835 Series A Convertible Preferred Stock* 97,000 847,000 Series B Convertible Preferred Stock* 5,854,845 7,378,241 Restricted stock units 57,285 103,123 15,284,103 20,850,266 * on an as-converted basis The dilutive effect of potentially dilutive securities would be reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company's common stock could result in a greater dilutive effect from potentially dilutive securities. Fair Value Measurements Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, fair value is defined as the price at which an asset could be exchanged, or a liability transferred in a transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or parameters are not available, valuation models are applied. Assets and liabilities recorded at fair value in the Company’s 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 1—Inputs 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. Level 2—Are 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 the Company holds that are generally assessed under Level 2 are corporate bonds and commercial paper. The Company utilizes 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. The Company uses quotes from external pricing service providers and other on-line quotation systems to verify the fair value of investments provided by its third-party pricing service providers. The Company reviews independent service auditor’s reports from its third-party pricing service providers particularly regarding the controls over pricing and valuation of financial instruments and ensure that its internal controls address certain control deficiencies, if any, and complementary user entity controls are in place. The Company does not have fair valued assets classified under Level 2 as of March 31, 2019 and December 31, 2018. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities 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. The Company’s financial instruments consist of cash and cash equivalents, short-term investments, and accounts payable, all of which are reported at their respective fair value on its consolidated balance sheets. The Company does not have fair valued assets classified under Level 3 as of March 31, 2019 and December 31, 2018. As of March 31, 2019 and December 31, 2018, financial assets measured at fair value on a recurring basis are categorized in the table below based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total US treasury securities $ 234,681 $ - $ - $ 234,681 US government agency securities 151,244 - - 151,244 Total $ 385,925 $ - $ - $ 385,925 Assets at Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total US treasury securities $ 265,393 $ - $ - $ 265,393 US government agency securities 120,978 - - 120,978 Total $ 386,371 $ - $ - $ 368,371 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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 valuation of short-term investments, the useful lives of property and equipment, accounting for potential liabilities, the valuation allowance associated with the Company’s deferred tax assets, and the assumptions made in valuing stock instruments issued for services. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Iovance Biotherapeutics, Inc. and its wholly-owned subsidiary, Iovance Biotherapeutics GmbH. All intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all the Company's consolidated operations. Leases The Company determines if an arrangement includes a lease at inception. Operating leases are included in its condensed consolidated balance sheet as Operating lease right-of-use assets and Operating lease liabilities as of March 31, 2019. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the net present value of lease payments, the Company uses an estimated incremental borrowing rate that is applicable to the Company based on the information available at later of the lease commencement date or the date of adoption of Accounting Standard Update (ASU) No. 2016-02 and ASU No. 2018-10, Leases (together “Topic 842”). The operating lease right-of-use assets also include any lease payments made and exclude lease incentives. The Company’s leases may include options to extend or terminate the lease, which is considered in the lease term when it is reasonably certain that the Company will exercise any such options. Lease expense is recognized on a straight-line basis over the expected lease term. The Company has elected not to apply the recognition requirements of Topic 842 for short-term leases. For lease agreements entered into after the adoption of Topic 842 that include lease and non-lease components, such components are generally accounted for separately. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance, Topic 840. See “Recently Adopted Accounting Pronouncements - Leases” below, for more information about the impact of the adoption on Topic 842. 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 FASB where the value of the award is measured on the date of grant and recognized over the vesting period. Upon the adoption of ASU No. 2018-07, Compensation-Stock Compensation (“Topic 718”), the Company accounts for stock option grants to non-employees in the same manner as grants to employees, therefore no longer requiring a remeasurement at the then-current fair values at each reporting date until the share options have vested. The nonemployee awards that contain a performance condition that affects the quantity of other terms of the award are measured based on the outcome that is probable. 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. The stock-based compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model. The assumptions used in the Black-Scholes option pricing model could materially affect compensation expense recorded in future periods. The Company has in the past issued restricted shares of its common stock for share-based compensation programs. The Company measures the compensation cost with respect to restricted shares issued to employees based upon the estimated fair value of the equity instruments at the date of the grant, which is recognized as an expense over the period during which an employee is required to provide services in exchange for the award. The fair value of restricted stock units is based on the closing price of the Company’s common stock on the grant date. Total stock-based compensation expense related to all of the Company’s stock-based awards was recorded on the statements of operations as follows (in thousands): Three Months Ended March 31, 2019 2018 Research and development $ 2,701 $ 2,000 General and administrative 3,145 2,104 Total stock-based compensation expense $ 5,846 $ 4,104 Total stock-based compensation expenses broken down based on each individual instrument were as follows (in thousands): Three Months Ended March 31, 2019 2018 Stock option expense $ 5,779 $ 4,037 Restricted stock unit expense 67 67 Total stock-based compensation expense $ 5,846 $ 4,104 Preferred Stock The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, preferred shares are classified as stockholders’ equity. Convertible Instruments The Company applies the accounting standards for derivatives and hedging and for distinguishing liabilities from equity when accounting for hybrid contracts that feature conversion options. The accounting standards require companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (i) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (ii) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (iii) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The derivative is subsequently marked to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations. Conversion options that contain variable settlement features such as provisions to adjust the conversion price upon subsequent issuances of equity or equity linked securities at exercise prices more favorable than that featured in the hybrid contract generally result in their bifurcation from the host instrument. The Company also records, when necessary, deemed dividends for the intrinsic value of the conversion options embedded in preferred stock based upon the difference between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred stock. Recently Adopted Accounting Guidance Leases On January 1, 2019, the Company adopted Topic 842, which establishes a new lease accounting method for lessees. The updated guidance requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The Company elected the package of practical expedients requiring no reassessment of whether any expired or existing contracts are or contain leases, the lease classification of any expired or existing leases, or initial direct costs for any existing leases. The standard had a material impact on its consolidated balance sheets by recognizing Operating lease right-of-use assets and Operating lease liabilities for operating leases but did not have an impact on our consolidated statement of operations or cash flows. The adoption of the Topic 842 resulted in recognition of Operating lease right-of-use assets of $10.4 million and $4.9 million Operating lease liabilities – current, and $5.8 million of Operating lease liabilities – noncurrent as of January 1, 2019, the date of adoption. Improvements to Nonemployee Share-Based Payment Accounting On January 1, 2019, the Company adopted Topic 718, which eliminates the separate accounting method for nonemployee share-based payment awards and generally requires companies to account for share-based payment transactions with nonemployees in the same manner as share-based payment transactions with employees. Under the new guidance, nonemployee share-based payment transactions are measured at the grant-date fair value and are no longer remeasured at the then-current fair values at each reporting date until the share options have vested. The guidance requires a modified-retrospective approach in transition. The Company compared the cumulative amounts that were recorded for its nonemployee share-based payments through December 31, 2018 immediately preceding the date of adoption to the cumulative amounts that should be recognized at the adoption date and recognized a cumulative effect of the transition adjustment of $0.3 million to retained earnings as of the date of adoption, January 1, 2019. Presentation of Stockholders’ Equity In August 2018, the Security Exchange Commission (SEC) adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The Company has included its first presentation of changes in stockholders’ equity in this Quarterly Report on Form 10-Q for the three months ended March 31, 2019 and 2018. Fair Value Measurements Disclosure In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates disclosure requirement regarding transfers between level 1 and level 2 of the fair value of hierarchy, however, adds disclosure requirements on the range and weighted average used to develop significant unobservable inputs for level 3 fair value measurements. The Company adopted the guidance on January 1, 2019, however, there was no adjustment required to its disclosures as it did not have fair value assets classified under level 2 or 3 as of March 31, 2019 and December 31, 2018. Subsequent Event The Company’s management evaluates events that have occurred after the balance sheet date but before the financial statements are issued. See Note 11 Subsequent Event. Reclassifications Certain amounts within the balance sheets for the prior period have been reclassified to conform with the current period presentation. These reclassifications had no impact on the Company's previously reported financial position or cash flows for any of the periods presented. |
CASH EQUIVALENTS AND SHORT-TERM
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | NOTE 3. CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents and short-term investments consist of the following (in thousands): March 31, December 31, 2019 2018 Cash equivalents - Money market funds $ 42,795 $ 25,968 Cash equivalents total $ 42,795 $ 25,968 Cash equivalents in the tables above exclude cash demand deposits of $11.3 million and $56.2 million as of March 31, 2019 and December 31, 2018, respectively (in thousands). March 31, December 31, Short-term Investments 2019 2018 US treasury securities $ 234,681 $ 265,393 US government agency securities 151,244 120,978 Short-term investments total $ 385,925 $ 386,371 The cost and fair value of cash equivalents and short-term investments at March 31, 2019 and December 31, 2018 were as follows (in thousands): Gross Gross Unrealized Unrealized As of March 31, 2019 Cost Accretion Gains Losses Fair Value US treasury securities $ 233,427 $ 1,204 $ 66 $ (16 ) $ 234,681 US government agency securities 150,414 742 90 (2 ) 151,244 Total $ 383,841 $ 1,946 $ 156 $ (18 ) $ 385,925 Gross Gross Unrealized Unrealized As of December 31, 2018 Cost Accretion Gains Losses Fair Value US treasury securities $ 264,619 $ 813 $ 19 $ (58 ) $ 265,393 US government agency securities 120,653 328 21 (24 ) 120,978 Total $ 385,272 $ 1,141 $ 40 $ (82 ) $ 386,371 Unrealized gains and losses are included in accumulated other comprehensive loss. All short-term investments held by the Company as of March 31, 2019 and December 31, 2018 have a maturity of less than one year. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | NOTE 4. BALANCE SHEET COMPONENTS Accrued liabilities consist of the following (in thousands): March 31, December 31, 2019 2018 Accrued payroll and employee related expenses $ 2,225 $ 4,113 Legal and related services 1,033 825 Clinical related 2,560 3,424 Manufacturing related 1,789 2,684 Accrued other 882 489 Deferred rent - current - 124 $ 8,489 $ 11,659 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 5. STOCKHOLDERS’ EQUITY Public Offerings In September 2017, the Company closed an underwritten public offering of 8,846,154 shares of the Company’s common stock at a public offering price of $6.50 per share, before underwriting discounts, which included 1,153,846 shares issued upon the exercise in full by the underwriter of its option to purchase additional shares at the public offering price less the underwriting discounts. The gross proceeds from the offering, before deducting the underwriting discounts and commissions and other offering expenses payable by the Company, were $57.5 million, with net proceeds to the Company of $53.7 million. In January 2018, the Company closed an underwritten public offering of 15,000,000 shares of the Company’s common stock at a public offering price of $11.50 per share, before underwriting discounts, which included 1,956,521 shares issued upon the exercise in full by the underwriter of its option to purchase additional shares at the public offering price less the underwriting discount. The gross proceeds from the offering, before deducting the underwriting discounts and commissions and other offering expenses payable by the Company, were $172.5 million, with net proceeds to the Company of $162.0 million. On October 17, 2018, the Company completed an underwritten public offering of 25,300,000 shares of the Company’s common stock at a public offering price of $9.97 per share, before underwriting discounts, which included 3,300,000 shares issued upon the exercise in full by the underwriter of its option to purchase additional shares at the public offering price less the underwriting discount. The gross proceeds from the offering, before deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company, were $252.2 million, with net proceeds to the Company of $236.7 million. Preferred Stock The Company’s certificate of incorporation authorizes the issuance of up to 50,000,000 shares of “blank check” preferred stock. At March 31, 2019, 17,000 shares were designated as Series A Convertible Preferred Stock (“Series A Convertible Preferred Stock”) and 11,500,000 Series A Convertible Preferred Stock A total of 17,000 The Series A Convertible Preferred Stock may, at the option of each investor, be converted into fully paid and non-assessable shares of common stock. The holders of shares of Series A Convertible Preferred Stock do not have the right to vote on matters that come before the Company’s stockholders. In the event of any dissolution or winding up of the Company, proceeds shall be paid pari passu among the holders of common stock and preferred stock, pro rata based on the number of shares held by each holder. The Company may not declare, pay or set aside any dividends on shares of capital stock of the Company (other than dividends on shares of common stock payable in shares of common stock) unless the holders of the Series A Convertible Preferred Stock shall first receive an equal dividend on each outstanding share of Series A Convertible Preferred Stock. The common shares issued were determined on a formula basis of 500 common shares for each share of Series A Convertible Preferred Stock converted. No Shares of Series A Convertible Preferred Stock were converted during the three months ended March 31, 2019 or 2018. At March 31, 2019, 194 shares of Series A Convertible Preferred Stock (that are convertible into 97,000 shares of common stock) remained outstanding. Series B Convertible Preferred Stock A total of 11,500,000 shares of Series B Convertible Preferred Stock are authorized for issuance under the Company’s Series B Certificate of Designation of Rights, Preferences and Privileges of Series B Convertible Preferred Stock. The shares of Series B Convertible Preferred Stock have a stated value of $4.75 per share and are convertible into shares of the Company’s common stock at an initial conversion price of $4.75 per share. Holders of Series B Convertible Preferred Stock are entitled to dividends on an as-if-converted basis in the same form as any dividends actually paid on shares of the Series A Convertible Preferred Stock or the Company’s common stock. So long as any Series B Convertible Preferred Stock remains outstanding, the Company may not redeem, purchase or otherwise acquire any material amount of the Series A Convertible Preferred Stock or any securities junior to the Series B Convertible Preferred Stock. No shares of Series B Convertible Preferred Stock were converted during the three months ended March 31, 2019 and 2018. At March 31, 2019, 5,854,845 shares of Series B Preferred Stock (that are convertible into 5,854,845 shares of common stock) remained outstanding. Warrants There were no remaining outstanding warrants as of March 31, 2019 and December 31, 2018. Cancellation of Common Shares On September 30, 2013 , Iovance and a third party entered into an agreement under which the Company issued 50,000 shares of unregistered stock in the Company to the third party. On January 16, 2019 , the two parties entered into a confidential settlement agreement in connection with a di spute related to their prior relationship and activities. As part of the settlement, the third party returned 32,500 shares of common stock to the Company for cancellation and retained the remaining 17,500 shares. The Company included a gain of $335,000 on cancellation of 32,500 shares in Other income in its condensed consolidated statement of operations. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | NOTE 6. STOCK BASED COMPENSATION Stock Plans On October 14, 2011, the Company adopted the 2011 Equity Incentive Plan (the “2011 Plan”). Employees, directors, consultants and advisors of the Company are eligible to participate in the 2011 Plan. The 2011 Plan initially had 180,000 shares of common stock reserved for issuance in the form of incentive stock options, non-qualified options, common stock, and grant appreciation rights. The 2011 Plan was not approved by the Company’s stockholders within the required one-year period following its adoption and, accordingly, no incentive stock options can be granted under the 2011 plan, but non-qualified options, common stock and grant appreciation rights can still be granted. In August 2013, the Company’s Board of Directors and a majority of the Company’s stockholders approved an amendment to increase the number of shares available under the 2011 Plan from 180,000 shares to 1,700,000 shares, and an amendment to increase the number of options or other awards that can be granted to any one person during a twelve (12) month period from 50,000 shares to 300,000 shares. The foregoing amendment to the 2011 Plan became effective in September 2013. On August 20, 2014, the Company’s Board of Directors amended the 2011 Plan to increase the number of shares available for issuance upon the exercise of stock options under the 2011 Plan from 1,700,000 to 1,900,000 shares, effective immediately. As of March 31, 2019, 376,240 shares were available for future grant under the 2011 Plan. On September 19, 2014, the Company’s Board of Directors adopted the Iovance Biotherapeutics, Inc. 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan was approved by the Company’s stockholders at the Company’s 2014 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 shares of the Company’s common stock. On April 10, 2015, the Board of Directors amended the 2014 Plan to increase the total number of shares that can be issued under the 2014 Plan to 4,000,000 shares of the Company’s common stock. The increase in shares available for issuance under the 2014 Plan was approved by the Company’s stockholders at the Company’s 2015 Annual Meeting of Stockholders in June 2015. On August 16, 2016, the Company’s stockholders approved an increase in the total number of shares that can be issued under the 2014 Plan to 9,000,000 shares of the Company’s common stock. As of March 31, 2019, 5,223 shares were available for grant under the Company’s 2014 Plan. On April 22, 2018, the Board of Directors adopted the Iovance Biotherapeutics, Inc. 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan was approved by the Company’s stockholders at the Annual Meeting of Stockholders held in June 2018. The 2018 Plan as approved by the stockholders authorized the issuance up to an aggregate of 6,000,000 shares of common stock reserved for issuance in the form of incentive (qualified) stock options, non-qualified options, common stock, stock appreciation rights, restricted stock awards, restricted stock units, other stock-based awards, other cash-based awards or any combination of the foregoing. As of March 31, 2019, 4,183,900 shares were available for grant under the 2018 Plan. Restricted Stock Units On June 1, 2016, the Company entered into a restricted stock unit agreement with the Company’s new Chief Executive Officer, Maria Fardis, Ph.D., pursuant to which the Company granted Dr. Fardis 550,000 non-transferrable restricted stock units at fair market value of $5.87 per share as an inducement for employment pursuant to Nasdaq Listing Rule 5635(c)(4). The 550,000 restricted stock units vest in installments as follows: (i) 137,500 restricted stock units vested upon the first anniversary of the effective date of Dr. Fardis’ employment agreement; (ii) 275,000 restricted stock units vest upon the satisfaction of certain clinical trial milestones; and (iii) 137,500 restricted stock units vest in equal monthly installments over the 36-month period following the first anniversary of the effective date of Dr. Fardis’ employment, provided that Dr. Fardis has been continuously employed with the Company as of such vesting dates. As of March 31, 2019, 57,285 restricted stock units remained unvested. Stock-based compensation expense for restricted stock units are measured based on the closing fair market value of the Company's common stock on the date of grant. The stock-based compensation expenses relating to restricted stock units were $0.1 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively, recorded as part of general and administrative expenses. As of March 31, 2019, $0.3 million of total unrecognized compensation costs related to non-vested restricted stock units to be recognized over a weighted average period of 1.17 years. Stock Options A summary of the status of stock options at March 31, 2019, and the changes during the three months then ended, is presented in the following table: Weighted Weighted Aggregate Number Average Average Intrinsic of Exercise Remaining Value (in Options Price Contract Life thousands) Outstanding at January 1, 2019 6,889,287 $ 10.25 Granted 2,462,100 10.82 Exercised (5,000 ) 8.30 Expired/Forfeited (71,414 ) 11.05 Outstanding at March 31, 2019 9,274,973 $ 10.40 8.46 $ 9,916 Options exercisable at March 31, 2019 3,892,634 $ 8.85 7.31 $ 7,247 The Company recorded stock-based compensation costs related to options of $5.8 million and $4.1 million for the three months ended March 31, 2019 and 2018. As of March 31, 2019, there was $45.7 million of total unrecognized compensation expense related to the options to be recognized over a weighted average period of 2.14 years. The weighted average grant date fair value for employee options granted under the Company's stock option plans during the three months ended March 31, 2019 and 2018 was $6.99 and $15.52 per option respectively. The aggregate intrinsic value in the table above reflects the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the three months ended March 31, 2019 and the exercise price of the options, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all option holders exercised their options on March 31, 2019. The intrinsic value of the Company’s stock options changes based on the closing price of the Company’s common stock. The following table summarizes the assumptions relating to options granted pursuant to the Company’s equity incentive plans for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, Assumptions: 2019 2018 Expected term (years) 6.06 5.13 – 6.50 Expected volatility 70.78% 170.85% - 200.28% Risk-free interest rate 2.59% 2.27% - 2.77% Expected dividend yield 0% 0% Expected Dividend Yield —The Company has never paid dividends and does not expect to pay dividends in the foreseeable future. Risk-Free Interest Rate —The risk-free interest rate was based on the market yield currently available on United States Treasury securities with maturities approximately equal to the option’s expected term. Expected Term —The expected term of the stock option grants was calculated based on historical exercises, cancellations, and forfeitures of stock options and outstanding option shares. Expected Volatility —The expected volatility is based on the historical volatility for the Company's stock over a period equal to the expected terms of the options. Forfeiture Rate —The Company recognizes forfeitures as they occur. Each of the inputs discussed above is subjective and generally requires significant management judgment. |
LICENSES AND AGREEMENTS
LICENSES AND AGREEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Licenses And Agreements [Abstract] | |
LICENSES AND AGREEMENTS | NOTE 7. LICENSES AND AGREEMENTS National Institutes of Health (“NIH”) and the National Cancer Institute (“NCI”) Cooperative Research and Development Agreement (“CRADA”) In August 2011, the Company signed a five-year CRADA with the NCI to work with Dr. Steven Rosenberg on developing adoptive cell immunotherapies that are designed to destroy metastatic melanoma cells using a patient’s tumor infiltrating lymphocytes. In January 2015, the Company executed an amendment to the CRADA to include four new indications. As amended, in addition to metastatic melanoma, the CRADA included the development of TIL therapy for the treatment of patients with bladder, lung, triple-negative breast, and Human Papilloma Virus (“HPV”)-associated cancers. In August 2016, the NCI and the Company entered into a second amendment to the CRADA. The principal changes effected by the second amendment included (i) extending the term of the CRADA by another five years to August 2021, and (ii) modifying the focus on the development of unmodified TIL as a stand-alone therapy or in combination with FDA licensed products and commercially available reagents routinely used for adoptive cell therapy. The parties will continue the development of improved methods for the generation and selection of TIL with anti-tumor reactivity in metastatic melanoma, bladder, lung, breast, and HPV-associated cancers. Pursuant to the terms of the CRADA, the Company is currently required to make quarterly payments of $0.5 million to the NCI for support of research activities. To the extent the Company licenses patent rights relating to a TIL-based product candidate, the Company will be responsible for all patent-related expenses and fees, past and future, relating to the TIL-based product candidate. In addition, the Company may be required to supply certain test articles, including TIL, grown and processed under cGMP conditions, suitable for use in clinical trials, where the Company holds the investigational new drug application for such clinical trial. The extended CRADA has a five-year term expiring in August 2021. The Company or the NCI may unilaterally terminate the CRADA for any reason or for no reason at any time by providing written notice at least 60 days before the desired termination date. The Company recorded costs associated with the CRADA of $0.5 million for the three months ended March 31, 2019 and 2018 as research and development expenses. Patent License Agreement Related to the Development and Manufacture of TIL Effective October 5, 2011, the Company entered into an Exclusive Patent License Agreement (the “Patent License Agreement”) with the NIH, an agency of the United States Public Health Service within the Department of Health and Human Services, which was subsequently amended on February 9, 2015 and October 2, 2015. Pursuant to the Patent License Agreement, as amended, the NIH granted the Company licenses, including exclusive, co-exclusive, and non-exclusive licenses, to certain technologies relating to autologous tumor infiltrating lymphocyte adoptive cell therapy products for the treatment of metastatic melanoma, lung, breast, bladder and HPV-positive cancers. The Patent License Agreement requires the Company to pay 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 royalty payments on the achievement of certain clinical and regulatory milestones for each of the various indications and other direct costs incurred by the NIH pursuant to the agreement. Exclusive Patent License Agreement Related to TIL Selection On February 10, 2015, the Company entered into an exclusive patent license agreement (the “Exclusive Patent License Agreement”) with the NIH under which the Company received an exclusive license to the NIH’s rights to patent-pending technologies related to methods for improving adoptive cell therapy through 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. Under the Exclusive Patent License Agreement, the Company agreed to pay customary royalties based on a percentage of net sales of a licensed product (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 clinical studies involving licensed technologies, 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 and Clinical Grant Agreements with Moffitt In December 2016, the Company entered into a new three-year Sponsored Research Agreement with H. Lee Moffitt Cancer Center (“Moffitt”). At the same time, the Company entered into a clinical grant agreement with Moffitt to support an ongoing clinical trial at Moffitt that combines TIL therapy with nivolumab for the treatment of patients with metastatic melanoma. In June 2017, the Company entered into a second clinical grant agreement with Moffitt to support a new clinical trial at Moffitt that combines TIL therapy with nivolumab for the treatment of patients with non-small cell lung cancer, under which the Company obtained a non-exclusive, royalty-free license to any new Moffitt inventions made in the performance of the agreement. Under both clinical grant agreements with Moffit, the Company has non-exclusive rights to clinical data arising from the respective clinical trials. The Company recorded research and development costs of $0.3 million and $0.6 million for the three months ended March 31, 2019 and 2018, respectively, in connection with the research collaboration and clinical grant agreements with Moffitt. Exclusive License Agreements with Moffitt The Company entered into a license agreement with Moffitt (the “First Moffitt License”), effective as of June 28, 2014, under which the Company received a world-wide license to Moffitt’s rights to patent-pending technologies related to methods for improving TIL for adoptive cell therapy using toll-like receptor agonists. Unless earlier terminated, the term of the license extends until the earlier of the expiration of the last issued patent related to the licensed technology or 20 years after the effective date of the license agreement. Pursuant to the First Moffitt License, the Company paid an upfront licensing fee in the amount of $0.1 million. A patent issuance fee will also be payable under the First Moffitt License, 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 First Moffitt License related to the treatment of any cancers in the United States, Europe and Japan and in other countries designated by the Company in agreement with Moffitt. No expenses were recorded for the First Moffitt License for the three months ended March 31, 2019 and 2018. The Company entered into a license agreement with Moffitt effective as of May 7, 2018 (the “Second Moffitt License”), under which the Company received a license to Moffitt’s rights to patent-pending technologies related to the use of 4-1BB agonists in conjunction with TIL manufacturing processes and therapies. The Company continues to develop TIL therapies using 4-1BB agonists in manufacturing in conjunction with M.D. Anderson Cancer Center. Pursuant to the Second Moffitt License, the Company paid an upfront licensing fee in the amount of $0.1 million in 2018. An annual license maintenance fee will be also payable commencing on the first anniversary of the effective date. In addition, the Company agreed to pay an annual commercial use payment for each indication for which a first sale has occurred, which in the aggregate amounts to up to $0.4 million a year. No expenses were recorded for the Second Moffitt License for the three months ended March 31, 2019 and 2018. PolyBioCept PolyBioCept Exclusive and Co-Exclusive License Agreement On September 14, 2016, the Company entered into an exclusive and co-exclusive license agreement (the “PolyBioCept Agreement”) with PolyBioCept AB, a corporation organized under the laws of Sweden (“PolyBioCept”). PolyBioCept has filed two patent applications with claims related to a cytokine cocktail for use in expansion of lymphocytes, one of which has been abandoned. Under the PolyBioCept Agreement, the Company received the exclusive right and license to PolyBioCept’s intellectual property to develop, manufacture, market and genetically engineer TIL produced by expansion, selection and enrichment using a proprietary cytokine cocktail. The Company also received a co-exclusive license (with PolyBioCept) to develop, manufacture and market genetically engineered TIL under the same intellectual property. The licenses are for the use in all cancers and are worldwide in scope, with the exception that the uses in melanoma are not included for certain countries of the former Soviet Union. The Company paid PolyBioCept a total of $2.5 million as an up-front exclusive license payment. The Company will also have to make additional milestone payments to PolyBioCept under the PolyBioCept Agreement if, and when, (i) certain product development milestones are achieved, (ii) certain regulatory approvals have been obtained from the FDA and/or the European Medicines Agency, and (iii) certain product sales targets are achieved. The milestone payments will be payable both in cash (U.S. dollars) and in shares of the Company’s common stock. If all of the foregoing product development, regulatory approval and sales milestone payments are met, the Company will have to pay PolyBioCept an additional $8.7 million and will have to issue to PolyBioCept a total 2,219,376 shares of unregistered common stock. In addition to these potential payments, the Company reimbursed PolyBioCept up to $0.2 million in expenses related to the transfer of know-how and paid PolyBioCept $0.1 million as a clinical trials management fee. The PolyBioCept Agreement has an initial term of 30 years and may be extended for additional five-year periods. No expense was recorded for the three months ended March 31, 2019 and 2018 in connection with this agreement. M.D. Anderson Cancer Center Strategic Alliance Agreement On April 17, 2017, the Company entered into a Strategic Alliance Agreement (the “SAA”) with M.D. Anderson Cancer Center (“MDACC”) under which the Company and MDACC agreed to conduct clinical and preclinical research studies. The Company agreed in the SAA to provide total funding not to exceed approximately $14.2 million for the performance of the multi-year studies under the SAA. In return, the Company acquired all rights to inventions resulting from the studies and has been granted a non-exclusive, sub-licensable, royalty-free, and perpetual license to specified background intellectual property of MDACC reasonably necessary to exploit, including the commercialization thereof. The Company has also been granted certain rights in clinical data generated by MDACC outside of the clinical trials to be performed under the SAA. The SAA’s term shall continue in effect until the later of the fourth anniversary of the SAA or the completion or termination of the research and receipt by the Company of all deliverables due from MDACC thereunder. In May 2017, the Company made a prepayment of $1.4 million under this agreement. The Company recorded $1.2 million associated with the MDACC SAA for the three months ended March 31, 2019 as research and development expenses. No expense was recognized for the same period in 2018. MedImmune In December 2015, the Company entered into a collaboration agreement (the “MedImmune Agreement”) with MedImmune, the global biologics research and development arm of AstraZeneca (“MedImmune”), to conduct clinical and preclinical research immuno-oncology. Under the MedImmune Agreement, the Company funded and sought to conduct at least one clinical trial combining MedImmune's PD-L1 inhibitor, durvalumab, with TIL for the treatment of patients. MedImmune supplied durvalumab for the clinical trials. On April 3, 2019, the Company and MedImmune announced that the study was closed because of a changing treatment landscape and a lack of enrollment, and the collaboration agreement was terminated as of April 1, 2019. WuXi Apptech, Inc. (“WuXi”) In November 2016, the Company entered into a three-year manufacturing and services agreement (“MSA”) with WuXi AppTech, Inc. (“Wuxi”) pursuant to which WuXi agreed to provide manufacturing and other services. Under the agreement, the Company entered into two statements of work for two cGMP manufacturing suites to be established and operated by WuXi for the Company, one of the suites is expected to be capable of being used for the commercial manufacture of our products. The statements of work for each facility include a fixed component to reserve a dedicated suite and a variable component, mainly labor and materials used during the manufacturing process. The fee payable under the first statement of work for the use of one of the manufacturing suites during the first year of the agreement, including the fees for the necessary personnel, was $2.5 million. The second statement of work, under which WuXi agreed to establish and operate a second, dedicated facility for a late stage/commercial manufacturing cGMP suite requires the Company to pay approximately $5.85 million during the first year of the agreement. The Company and WuXi have extended the term of the related statements of work until May 2020. The Company recorded costs associated with agreements with WuXi of $3.8 million and $2.8 million for three months ended March 31, 2019 and 2018 respectively, as research and development expenses. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 3 Months Ended |
Mar. 31, 2019 | |
Loss Contingency [Abstract] | |
LEGAL PROCEEDINGS | NOTE 8. LEGAL PROCEEDINGS Class Action Lawsuit. On April 10, 2017, the SEC announced settlements with the Company and with other public companies and unrelated parties in the In the Matter of Certain Stock Promotion settlement with the SEC is consistent with its previous disclosures (including in our Annual Report on Form 10-K that the Company filed with the SEC on March 9, 2017). On April 14, 2017, a purported shareholder filed a complaint seeking class action status in the United States District Court, Northern District of California for violations of the federal securities laws ( Leonard DeSilvio v. Lion Biotechnologies, Inc., et al., case no. 3:17cv2086) against the Company and three of its former officers and directors. On April 19, 2017, a second class action complaint (Amra Kuc vs. Lion Biotechnologies, Inc., et al., case no. 3:17-cv-2188) was filed in the same court. Both complaints allege, among other things, that the defendants violated the federal securities laws by making materially false and misleading statements, or by failing to make certain disclosures, regarding the actions taken by Manish Singh, the former CEO, and the former investor relations firm that were the subject of the In the Matter of Certain Stock Promotions investigation. On July 20, 2017, the plaintiff in the Kuc case filed a notice to voluntarily dismiss that case. The court entered an order dismissing the Kuc complaint on July 21, 2017. On July 26, 2017, the court appointed a movant as lead plaintiff. On September 8, 2017, the lead plaintiff filed an amended complaint ( Jay Rabkin v. Lion Biotechnologies, Inc., et al., case no. 3:17-cv-2086) seeking class action status that alleges, among other things, that the defendants violated federal securities laws by making materially false and misleading statements, or by failing to make certain disclosures, regarding the actions taken by Manish Singh and its former investor relations firm that were the subject of the In the Matter of Certain Stock Promotions SEC investigation. On February 5, 2018, the court entered an order dismissing two of plaintiff’s six claims. As the result of mediation, on September 28, 2018, lead plaintiff filed an unopposed motion for settlement, the cost of which, if approved, is expected to be borne by the Company’s insurance carrier and would result in no loss to the Company. The court gave preliminary approval to the proposed settlement on November 30, 2018. A hearing was held on April 12, 2019 to determine whether the proposed settlement was fair, reasonable, and adequate, and whether the claims should be dismissed. On April 17, 2019, the court approved the final settlement, involving a payment of $3,250,000 by the Company’s insurance carrier to a settlement fund, awarded attorney’s fees and costs to be paid to plaintiff’s counsel from the settlement fund, approved the plan of allocation for settlement class members, and ordered that the claims against the Company should be dismissed with prejudice. The Company does not expect to incur any costs or expenses in connection with this settlement. Derivative Lawsuits. On December 15, 2017, a purported stockholder derivative complaint was filed by plaintiff Kevin Fong against the Company, as nominal defendant, and certain of the current and former officers and directors, and others, as defendants, in the U.S. District Court for the District of Delaware (case no. 1:17-cv-1806). The complaint alleges breaches of fiduciary duties, unjust enrichment, and violations of Section 14(a) of the Securities Exchange Act of 1934 and Rule 14a-9 promulgated thereunder arising from the SEC’s investigation in the In the Matter of Certain Stock Promotions investigation and our April 10, 2017 settlement thereof, and seeks unspecified damages on behalf of the Company and injunctive relief. On March 28, 2018, a purported stockholder derivative complaint was filed by plaintiff Nazeer Khaleeluddin on behalf of the Company, against the Company, as nominal defendant, and certain of the Company’s current and former officers and directors, and others, as defendants, in the U.S. District Court for the District of Delaware (case no. 1:18-cv-00469). The complaint alleges, among other things, violations of securities law, breach of fiduciary duty, aiding and abetting, waste of corporate assets, and unjust enrichment. The complaint is based on claims arising from the SEC’s investigation in the In the Matter of Certain Stock Promotions investigation and the Company’s April 10, 2017 settlement thereof, and seeks unspecified damages on behalf of our company and injunctive relief. On May 1, 2018, the court consolidated this case with the aforementioned purported stockholder derivative case filed by plaintiff Kevin Fong. The Company intends to vigorously defend against the foregoing complaints. Based on the early stage of the litigation, it is not possible to estimate the amount or range of possible loss that might result from an adverse judgment or a settlement of these matters. Solomon Capital, LLC. On April 8, 2016, a lawsuit titled Solomon Capital, LLC, Solomon Capital 401(K) Trust, Solomon Sharbat and Shelhav Raff v. Lion Biotechnologies, Inc. was filed by Solomon Capital, LLC, Solomon Capital 401(k) Trust, Solomon Sharbat and Shelhav Raff against the Company in the Supreme Court of the State of New York, County of New York (index no. 651881/2016). The plaintiffs allege that, between June and November 2012 they provided to the Company $0.1 million and that they advanced and paid on our behalf an additional $0.2 million. The complaint further alleges that the Company agreed to (i) provide them with promissory notes totaling $0.2 million, plus interest, (ii) issue a total of 111,425 shares to the plaintiffs (before the 1-for-100 reverse split of our common stock effected in March 2013), and (iii) allow the plaintiffs to convert the foregoing funds into our securities in the next transaction. The plaintiffs allege that they should have been able to convert their advances and payments into shares of our common stock in the restructuring that was affected in May 2013. Based on the foregoing, the plaintiffs allege causes for breach of contract and unjust enrichment and demand judgment against the Company in an unspecified amount exceeding $1.5 million, plus interest and attorneys’ fees. On June 3, 2016, the Company filed an answer and counterclaims in the lawsuit. In its counterclaims, the Company alleges that the plaintiffs misrepresented their qualifications to assist the Company in fundraising and that they failed to disclose that they were under investigation for securities laws violations. The Company is seeking damages in an amount exceeding $0.5 million and an order rescinding any and all agreements that the plaintiffs contend entitled them to obtain stock in the Company. On April 19, 2017, the court granted plaintiffs’ counsel’s motion to withdraw from the case. On May 25, 2017, plaintiffs filed a notice that they had hired new counsel. On June 7, 2017, the judge presiding over the case recused herself because of a conflict of interest arising from her relationship with plaintiffs’ new attorneys and the case was subsequently assigned to a new judge. On April 20, 2018, the court held a hearing regarding plaintiff’s motion to dismiss the Company’s amended counterclaims and affirmative defense for fraudulent inducement. On August 15, 2018, the court entered an order granting the plaintiffs’ motion and dismissed the Company’s amended counterclaims and eleventh affirmative defense for fraudulent inducement without leave to amend. On September 14, 2018, the Company filed a notice of appeal related to this order, and on November 5, 2018, the Company filed its memorandum of law in support of its appeal of the order dismissing the Company’s amended counterclaims and affirmative defense for fraudulent inducement. On January 2, 2019, plaintiffs filed their memorandum of law in opposition to the appeal. On January 18, 2019, the Company filed its reply brief in support of its appeal of the order dismissing its amended counterclaims and affirmative defense for fraudulent inducement. On April 4, 2019, the appellate court ordered that the Company’s amended counterclaims and its affirmative defense for fraudulent inducement be reinstated. The Company intends to vigorously defend the complaint and pursue its counterclaims. Litigation Involving Dr. Steven Fischkoff. On June 13, 2017, in an action titled Steven Fischkoff v. Lion Biotechnologies, Inc. and Maria Fardis , Dr. Steven Fischkoff, our former Vice President and Chief Medical Officer, filed a lawsuit against the Company in the Supreme Court of the State of New York, County of New York. Dr. Fischkoff was dismissed by the Company on March 28, 2017. Dr. Fischkoff was terminated “for cause” as that term is defined in his employment agreement. In his complaint, Dr. Fischkoff alleges breaches of his employment agreement and violation of New York Labor Law for failure to pay monies purportedly owed to him, and seeks to recover amounts including severance pay and retention bonus (totaling $300,000), a prorated incentive bonus, and amounts relating to unvested options to 150,000 shares of our common stock, together with prejudgment interest, costs, expenses and attorneys’ fees. On July 5, 2017, we filed a removal petition and removed the lawsuit to the United States District Court for the Southern District of New York, where the case has been assigned case no. 1:17-cv-05041. On July 14, 2017, the Company filed a partial answer and counterclaims against Dr. Fischkoff, denying his allegations, and alleging breach of contract and related claims, breach of fiduciary duty, and state and federal trade secret misappropriation and related claims, and sought a temporary restraining order and preliminary injunction against Dr. Fischkoff. On July 18, 2017, the court issued a temporary restraining order against Dr. Fischkoff requiring him to return our materials, prohibiting him from disclosing or using the Company’s materials, and granting expedited discovery. On June 25, 2018, pursuant to a stipulation between the parties, the court entered a permanent injunction prohibiting Dr. Fischkoff from disclosing, possessing, or using any of the Company’s proprietary materials or trade secrets. On July 5, 2018, the court entered an order dismissing two of Dr. Fischkoff’s claims against the Company and Dr. Fardis. On October 18, 2018, Dr. Fischkoff amended his complaint to assert a new claim for defamation arising from SEC filings in which the Company provided the information about this litigation. The Company intends to vigorously defend against Dr. Fischkoff’s lawsuit and pursue the Company’s counterclaims. Based on the current stage of the litigation, it is not possible to estimate the amount or range of (i) a possible loss that might result from an adverse judgment or settlement of this action, or (ii) the potential recovery that might result from a favorable judgment or a settlement of this action. Other Matters. During the second quarter of 2016, warrants representing 128,500 shares were exercised. The 128,500 shares of common stock had previously been registered for re-sale. However, the Company believes that these 128,500 warrant shares were sold by the holders in open market transactions in May 2016 at a time when the registration statement was ineffective. Accordingly, those sales were not made in accordance with Sections 5 and 10(a)(3) of the Securities Act of 1933, as amended, and the purchasers of those shares may have rescission rights (if they still own the shares) or claims for damages (if they no longer own the shares). The amount of any such liability is uncertain and as such, an accrual for any potential loss has not been made. The Company believes that any claims brought against it would not result in a material impact to the Company’s financial position or results of operations. The Company has not accrued a loss for a potential claim associated with this matter as it is unable to estimate any at this time. In connection with the Company’s reincorporation from Nevada to Delaware in 2017, the Company (as a Delaware corporation) untimely filed a post-effective amendment to adopt a Form S-8 registration statement that the Company filed (as a Nevada corporation) to register the shares underlying the 2011 Plan. Before the Company filed the required post-effective amendment, options to purchase 200,000 shares were exercised under the 2011 Plan. The effect of the delayed post-effective amendment filing on the 200,000 option shares is uncertain, but the issuance and sale of the shares may not have been in compliance with the Form S-8 registration statement. The existence of any liability to the Company, and the amount of any such liability to the Company, as a result of the issuance of the 200,000 shares is uncertain. Accordingly, no accrual for a potential claim has been made by the Company in its financial statements. The Company may be involved, from time to time, in legal proceedings and claims arising in the ordinary course of our business. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that it believes will result in a probable loss. While there can be no assurances as to the ultimate outcome of any legal proceeding or other loss contingency involving the Company, management does not believe any pending matter will be resolved in a manner that would have a material adverse effect on our financial position, results of operations or cash flows. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | NOTE 9. LEASES As described further in “Note 2. Summary of Significant Accounting Policies”, the Company adopted Topic 842 as of January 1, 2019. Prior period amounts have not been adjusted and continue to be reported in accordance with its historic accounting under ASU Topic 840- Leases (Topic 840). Facilities Leases The Company has evaluated the following facility leases and determined that, effective upon the adoption of Topic 842, they were all operating leases. Operating lease right-of-use assets and liabilities were recognized as of January 1, 2019 based on the present value of the remaining lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company utilized a third party in determining an incremental borrowing rate based on the information available as of the adoption date of Topic 842 to obtain the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease which are included in the lease term when it is reasonably certain that it will exercise any such options. Lease expense is recognized on a straight-line basis over the expected lease term. The Company elected not to apply the recognition requirements of Topic 842 for short-term leases that have a lease term of 12 months or less. Tampa Lease In December 2014, the Company commenced a five-year non-cancellable operating lease with the University of South Florida Research Foundation for a 5,115 square foot facility located in Tampa, Florida. The facility is part of the University of South Florida research park and is used as the Company’s research and development facilities. The Company has the option to extend the lease term of this facility for an additional five-year period on the same terms and conditions, except that the base rent for the renewal term will be increased in accordance with the applicable consumer price index. In April 2015, the Company amended the original lease agreement to increase the rentable space to 6,043 square feet. In September 2016, the Company further increased the rentable space to 8,673 square feet. The per square foot cost and term of the lease were unchanged, and rent payments are approximately $20,000 per month. The lease expires in December 2019. San Carlos Lease On August 4, 2016, the Company entered into an agreement to lease 8,733 square feet in San Carlos, California. The term of the lease is 54 months subsequent to the commencement date and will expire in April 2021. Monthly lease payments are approximately $38,000. On April 28, 2017, the Company entered into a sublease agreement with Teradata US, Inc., pursuant to which the Company agreed to sublease certain office space located adjacent to the Company's headquarters for approximately $26,000 per month. The space consists of approximately 11,449 rentable square feet in the building located in San Carlos, California. The sublease for this space expired on October 31, 2018. Monthly lease payments were approximately $26,000. On October 19, 2018, the Company entered into an agreement to lease 12,322 square feet of office space located adjacent to the Company's headquarters in San Carlos, California. This lease replaces the sublease of 11,449 square feet of office space in the same facility that expired on October 31, 2018. The term of the lease is 30 months subsequent to the commencement date, November 1, 2018, and will expire in April 2021. Monthly lease payments are approximately $59,000, subject to an annual increase of 3%. New York Lease The Company leased office space in New York for a monthly rental of approximately $18,000 a month from January 2017 through July 2017. On June 5, 2017, the Company entered into an agreement whereby the Company will lease office space from August 1, 2017 to July 31, 2018, for approximately $9,000 a month. On April 20, 2018, the Company entered into an agreement to extend the lease term to January 31, 2019 for approximately $7,000 a month. On November 2, 2018, the Company entered into an agreement to extend the lease term to July 31, 2019 for approximately $4,000 a month. Manufacturing Contracts The Company uses contract manufacturing organizations (collectively the “CMOs” and each a “CMO”) to manufacture and supply TILs for clinical and commercial purposes. The CMO contractual obligations consist of the use of manufacturing facilities and minimum fixed commitment fees, such as personnel, general support fees, and minimum production or material fees. In addition to the minimum fixed commitment fees, the CMO contractual obligations include variable costs such as production and material costs in excess of the minimum quantity specified in each CMO agreement. During the term of each CMO agreement, the Company has access to and control of the use of a dedicated suite in each of the CMOs’ facilities for manufacturing activities. In conjunction with the adoption of Topic 842 on January 1, 2019, the Company reevaluated all of its material contracts it has, to determine whether they contain a lease under the current lease guidance Topic 840. An arrangement is considered a lease or contains a lease if an underlying asset is explicitly or implicitly identified and use of the asset is controlled by the customer. Based on this evaluation, the Company concluded that all of its contracts with CMOs contained embedded operating leases because the suites used for its production are implicitly identified, is only used by the Company exclusively during the contractual term of the arrangements, and the CMOs have no substantive contractual rights to substitute the facilities used by the Company. Further, the Company controls the use of the facilities by obtaining all of the economic benefits from the use of the facilities and direct the use of the facilities throughout the period of use. The terms of the CMO contracts include options to terminate the lease with an advance notice of five to six months. The termination clauses and extension clauses are included in the calculation of the lease term for each of the CMOs when it is reasonably certain that it will not exercise such options. The guidance requires the Company to first identify a lease deliverable and non-lease deliverable included in the arrangements, and then allocate the fixed contractual consideration to the lease deliverable(s) and the non-lease deliverable(s) on a relative standalone selling price basis to determine the amount of operating lease right-of-use assets and liabilities. The Company identified the use of a dedicated suite as a single lease deliverable, and related labor services as a single non-lease deliverable in each of the CMO arrangements. Judgment is required to determine the relative standalone selling price of each deliverable as the observable standalone selling prices are not readily available. Therefore, management used estimates and assumptions in determining relative standalone selling price of lease of a suite and labor service using information that includes market and other observable inputs to the extent possible. The Company leases certain furniture and equipment that has a lease term of 12 months or less. Since the commencement date does not include an option to purchase the underlying asset, the Company elected not to apply the recognition requirements of Topic 842 for short-term leases, however, the lease costs that pertain to the short-term leases are disclosed in the components of lease costs table below. The balance sheet classification of the Company’s right-of-use asset and lease liabilities was as follows: March 31, 2019 Operating lease right-of-use assets $ 9,957 Operating lease liabilities Current portion included in current liabilities 6,059 long-term portion included in non-current liabilities 4,380 Total Operating lease liabilities $ 10,439 The components of lease expenses, which were included in Total expenses in the Company’s consolidated statement of operations, were as follows: For the Three Months Ended March 31, 2019 Operating lease cost $ 1,594 Variable lease cost 896 Short-term lease cost 19 Total lease cost 2,509 Variable lease cost is determined based on performance or usage in accordance with the contractual agreements, and not based on an index or rate. Cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2019 was $1.4 million and were included in Net cash provided by operating activities in its consolidated statement of cash flows. Upon the adoption of Topic 842 on January 1, 2019, the Company increased noncash balances of operating lease right-of-use assets and operating lease liabilities by $10.4 million and $10.7 million, respectively. During the three months ended March 31, 2019, the Company additionally increased noncash balance of operating lease right-of-use assets and operating lease liability by $1.0 million as a result of lease modifications. As of March 31, 2019, the maturities of the Company’s operating lease liabilities were as follows (in thousands): Facility leases CMO embedded leases Total Remainder of 2019 $ 1,066 $ 3,975 $ 5,041 2020 1,223 3,366 4,589 2021 419 994 1,413 2022 - 144 144 2023 - - - Thereafter - - - Total lease payments $ 2,708 $ 8,479 $ 11,187 Less: Present value adjustment (189 ) (559 ) (748 ) Operating lease liabilities $ 2,519 $ 7,920 $ 10,439 Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate based on the information available at the date of adoption of Topic 842. As of March 31, 2019, the weighted average remaining lease term is 1.86 years and the weighted average discount rate used to determine the operating lease liabilities was 8.4%. Disclosures related to periods prior to adoption of Topic 842 As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows: Facility leases CMO embedded leases Total 2019 $ 1,373 $ 5,088 $ 6,461 2020 1,223 3,366 4,589 2021 418 994 1,412 2022 - 144 144 2023 - - - Thereafter - - - Total lease payments $ 3,014 $ 9,592 $ 12,606 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10. RELATED PARTY TRANSACTIONS A former member of the Company’s Board of Directors was an attorney at a law firm, TroyGould PC, that rendered legal services to the Company during the period of his directorship until June 6, 2018, but did not provide legal services to the Company himself during that period. The Company paid TroyGould PC $0.1 million for the three months ended March 31, 2019 and 2018. On September 14, 2017, the Company entered into a three-year consulting agreement with Iain Dukes, D. Phil, the Chairman of the Board of Directors. As compensation for his consulting services, the Company granted Dr. Dukes a stock option to purchase up to 150,000 shares of the Company’s common stock, at an exercise price of $7.30 per share. Under the consulting agreement, Dr. Dukes agreed to provide the Company with services regarding business development opportunities, licensing transactions and technology acquisitions by the Company, and any such strategic initiatives appropriate for the Company that Dr. Dukes may identify. The granted stock options vest in 12 quarterly installments (with 1/12th of the option shares having vested on the date of grant). The vesting of the granted stock options will accelerate, and the entire award will become fully vested upon the closing of a significant licensing transaction, a material product acquisition, a material strategic transaction, or upon a change of control transaction. The Company recognized $0.1 million and $0.4 million in stock-based compensation expense related to this consulting agreement during the three months ended March 31, 2019 and 2018, respectively. In addition, in connection with the adoption of ASC 2018-07, the Company recognized $0.3 million to retained earnings as of January 1, 2019. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11. SUBSEQUENT EVENT On May 2, 2019, the Company entered into an agreement to lease approximately 1,500 square feet of office space in Philadelphia, Pennsylvania until July 1, 2019 for a rate of $2,000 a month, and then approximately 4,500 square feet of office space for the remainder of a three year term at an initial rate of $11,063 per month, subject to annual increases of 2.5%. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash, Cash Equivalents, and Short-term Investments The Company’s cash and cash equivalents include short-term investments with original maturities of three months or less when purchased. The Company's short-term investments are classified as “available-for-sale”. The Company includes these investments in current assets and carries them at fair value. Unrealized gains and losses on available-for-sale securities are included in accumulated other comprehensive loss. The cost of debt securities is adjusted for the amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in net interest income in the consolidated statements operations. Gains and losses on securities sold are recorded based on the specific identification method and are included in net interest income in the consolidated statement of operations. The Company has not incurred any realized gains or losses from sales of securities to date. 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. |
Loss per Share | Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the sum of the weighted average number of shares of common stock outstanding and the dilutive common stock equivalent shares outstanding during the period. The Company’s potentially dilutive common stock equivalent shares, which include incremental common shares issuable upon (i) the exercise of outstanding stock options and warrants (ii) vesting of restricted stock units and restricted stock awards, and (iii) conversion of preferred stock, are only included in the calculation of diluted net loss per share when their effect is dilutive. At March 31, 2019 and 2018, the following outstanding common stock equivalents have been excluded from the calculation of net loss per share because their impact would be anti-dilutive. March 31, 2019 2018 Stock options 9,274,973 6,951,067 Warrants - 5,570,835 Series A Convertible Preferred Stock* 97,000 847,000 Series B Convertible Preferred Stock* 5,854,845 7,378,241 Restricted stock units 57,285 103,123 15,284,103 20,850,266 * on an as-converted basis The dilutive effect of potentially dilutive securities would be reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company's common stock could result in a greater dilutive effect from potentially dilutive securities. |
Fair Value Measurements | Fair Value Measurements Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, fair value is defined as the price at which an asset could be exchanged, or a liability transferred in a transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or parameters are not available, valuation models are applied. Assets and liabilities recorded at fair value in the Company’s 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 1—Inputs 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. Level 2—Are 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 the Company holds that are generally assessed under Level 2 are corporate bonds and commercial paper. The Company utilizes 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. The Company uses quotes from external pricing service providers and other on-line quotation systems to verify the fair value of investments provided by its third-party pricing service providers. The Company reviews independent service auditor’s reports from its third-party pricing service providers particularly regarding the controls over pricing and valuation of financial instruments and ensure that its internal controls address certain control deficiencies, if any, and complementary user entity controls are in place. The Company does not have fair valued assets classified under Level 2 as of March 31, 2019 and December 31, 2018. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities 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. The Company’s financial instruments consist of cash and cash equivalents, short-term investments, and accounts payable, all of which are reported at their respective fair value on its consolidated balance sheets. The Company does not have fair valued assets classified under Level 3 as of March 31, 2019 and December 31, 2018. As of March 31, 2019 and December 31, 2018, financial assets measured at fair value on a recurring basis are categorized in the table below based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total US treasury securities $ 234,681 $ - $ - $ 234,681 US government agency securities 151,244 - - 151,244 Total $ 385,925 $ - $ - $ 385,925 Assets at Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total US treasury securities $ 265,393 $ - $ - $ 265,393 US government agency securities 120,978 - - 120,978 Total $ 386,371 $ - $ - $ 368,371 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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 valuation of short-term investments, the useful lives of property and equipment, accounting for potential liabilities, the valuation allowance associated with the Company’s deferred tax assets, and the assumptions made in valuing stock instruments issued for services. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Iovance Biotherapeutics, Inc. and its wholly-owned subsidiary, Iovance Biotherapeutics GmbH. All intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all the Company's consolidated operations. |
Leases | Leases The Company determines if an arrangement includes a lease at inception. Operating leases are included in its condensed consolidated balance sheet as Operating lease right-of-use assets and Operating lease liabilities as of March 31, 2019. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the net present value of lease payments, the Company uses an estimated incremental borrowing rate that is applicable to the Company based on the information available at later of the lease commencement date or the date of adoption of Accounting Standard Update (ASU) No. 2016-02 and ASU No. 2018-10, Leases (together “Topic 842”). The operating lease right-of-use assets also include any lease payments made and exclude lease incentives. The Company’s leases may include options to extend or terminate the lease, which is considered in the lease term when it is reasonably certain that the Company will exercise any such options. Lease expense is recognized on a straight-line basis over the expected lease term. The Company has elected not to apply the recognition requirements of Topic 842 for short-term leases. For lease agreements entered into after the adoption of Topic 842 that include lease and non-lease components, such components are generally accounted for separately. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance, Topic 840. See “Recently Adopted Accounting Pronouncements - Leases” below, for more information about the impact of the adoption on Topic 842. |
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 FASB where the value of the award is measured on the date of grant and recognized over the vesting period. Upon the adoption of ASU No. 2018-07, Compensation-Stock Compensation (“Topic 718”), the Company accounts for stock option grants to non-employees in the same manner as grants to employees, therefore no longer requiring a remeasurement at the then-current fair values at each reporting date until the share options have vested. The nonemployee awards that contain a performance condition that affects the quantity of other terms of the award are measured based on the outcome that is probable. 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. The stock-based compensation expense is recorded based upon the value derived from the Black-Scholes option pricing model. The assumptions used in the Black-Scholes option pricing model could materially affect compensation expense recorded in future periods. The Company has in the past issued restricted shares of its common stock for share-based compensation programs. The Company measures the compensation cost with respect to restricted shares issued to employees based upon the estimated fair value of the equity instruments at the date of the grant, which is recognized as an expense over the period during which an employee is required to provide services in exchange for the award. The fair value of restricted stock units is based on the closing price of the Company’s common stock on the grant date. Total stock-based compensation expense related to all of the Company’s stock-based awards was recorded on the statements of operations as follows (in thousands): Three Months Ended March 31, 2019 2018 Research and development $ 2,701 $ 2,000 General and administrative 3,145 2,104 Total stock-based compensation expense $ 5,846 $ 4,104 Total stock-based compensation expenses broken down based on each individual instrument were as follows (in thousands): Three Months Ended March 31, 2019 2018 Stock option expense $ 5,779 $ 4,037 Restricted stock unit expense 67 67 Total stock-based compensation expense $ 5,846 $ 4,104 |
Preferred Stock | Preferred Stock The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, preferred shares are classified as stockholders’ equity. |
Convertible Instruments | Convertible Instruments The Company applies the accounting standards for derivatives and hedging and for distinguishing liabilities from equity when accounting for hybrid contracts that feature conversion options. The accounting standards require companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (i) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (ii) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (iii) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The derivative is subsequently marked to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations. Conversion options that contain variable settlement features such as provisions to adjust the conversion price upon subsequent issuances of equity or equity linked securities at exercise prices more favorable than that featured in the hybrid contract generally result in their bifurcation from the host instrument. The Company also records, when necessary, deemed dividends for the intrinsic value of the conversion options embedded in preferred stock based upon the difference between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred stock. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance Leases On January 1, 2019, the Company adopted Topic 842, which establishes a new lease accounting method for lessees. The updated guidance requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The Company elected the package of practical expedients requiring no reassessment of whether any expired or existing contracts are or contain leases, the lease classification of any expired or existing leases, or initial direct costs for any existing leases. The standard had a material impact on its consolidated balance sheets by recognizing Operating lease right-of-use assets and Operating lease liabilities for operating leases but did not have an impact on our consolidated statement of operations or cash flows. The adoption of the Topic 842 resulted in recognition of Operating lease right-of-use assets of $10.4 million and $4.9 million Operating lease liabilities – current, and $5.8 million of Operating lease liabilities – noncurrent as of January 1, 2019, the date of adoption. Improvements to Nonemployee Share-Based Payment Accounting On January 1, 2019, the Company adopted Topic 718, which eliminates the separate accounting method for nonemployee share-based payment awards and generally requires companies to account for share-based payment transactions with nonemployees in the same manner as share-based payment transactions with employees. Under the new guidance, nonemployee share-based payment transactions are measured at the grant-date fair value and are no longer remeasured at the then-current fair values at each reporting date until the share options have vested. The guidance requires a modified-retrospective approach in transition. The Company compared the cumulative amounts that were recorded for its nonemployee share-based payments through December 31, 2018 immediately preceding the date of adoption to the cumulative amounts that should be recognized at the adoption date and recognized a cumulative effect of the transition adjustment of $0.3 million to retained earnings as of the date of adoption, January 1, 2019. Presentation of Stockholders’ Equity In August 2018, the Security Exchange Commission (SEC) adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The Company has included its first presentation of changes in stockholders’ equity in this Quarterly Report on Form 10-Q for the three months ended March 31, 2019 and 2018. Fair Value Measurements Disclosure In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates disclosure requirement regarding transfers between level 1 and level 2 of the fair value of hierarchy, however, adds disclosure requirements on the range and weighted average used to develop significant unobservable inputs for level 3 fair value measurements. The Company adopted the guidance on January 1, 2019, however, there was no adjustment required to its disclosures as it did not have fair value assets classified under level 2 or 3 as of March 31, 2019 and December 31, 2018. |
Subsequent Events | Subsequent Event The Company’s management evaluates events that have occurred after the balance sheet date but before the financial statements are issued. See Note 11 Subsequent Event. |
Reclassifications | Reclassifications Certain amounts within the balance sheets for the prior period have been reclassified to conform with the current period presentation. These reclassifications had no impact on the Company's previously reported financial position or cash flows for any of the periods presented. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | At March 31, 2019 and 2018, the following outstanding common stock equivalents have been excluded from the calculation of net loss per share because their impact would be anti-dilutive. March 31, 2019 2018 Stock options 9,274,973 6,951,067 Warrants - 5,570,835 Series A Convertible Preferred Stock* 97,000 847,000 Series B Convertible Preferred Stock* 5,854,845 7,378,241 Restricted stock units 57,285 103,123 15,284,103 20,850,266 * on an as-converted basis |
Schedule of Assets Measured at Fair Value | As of March 31, 2019 and December 31, 2018, financial assets measured at fair value on a recurring basis are categorized in the table below based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total US treasury securities $ 234,681 $ - $ - $ 234,681 US government agency securities 151,244 - - 151,244 Total $ 385,925 $ - $ - $ 385,925 Assets at Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total US treasury securities $ 265,393 $ - $ - $ 265,393 US government agency securities 120,978 - - 120,978 Total $ 386,371 $ - $ - $ 368,371 |
Schedule of Stock-Based Compensation | Total stock-based compensation expense related to all of the Company’s stock-based awards was recorded on the statements of operations as follows (in thousands): Three Months Ended March 31, 2019 2018 Research and development $ 2,701 $ 2,000 General and administrative 3,145 2,104 Total stock-based compensation expense $ 5,846 $ 4,104 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Total stock-based compensation expenses broken down based on each individual instrument were as follows (in thousands): Three Months Ended March 31, 2019 2018 Stock option expense $ 5,779 $ 4,037 Restricted stock unit expense 67 67 Total stock-based compensation expense $ 5,846 $ 4,104 |
CASH EQUIVALENTS AND SHORT-TE_2
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Schedule of Cash, Money Market Funds and Short-Term Investments | Cash equivalents and short-term investments consist of the following (in thousands): March 31, December 31, 2019 2018 Cash equivalents - Money market funds $ 42,795 $ 25,968 Cash equivalents total $ 42,795 $ 25,968 Cash equivalents in the tables above exclude cash demand deposits of $11.3 million and $56.2 million as of March 31, 2019 and December 31, 2018, respectively (in thousands). March 31, December 31, Short-term Investments 2019 2018 US treasury securities $ 234,681 $ 265,393 US government agency securities 151,244 120,978 Short-term investments total $ 385,925 $ 386,371 |
Schedule of Unrealized Gains and Losses | The cost and fair value of cash equivalents and short-term investments at March 31, 2019 and December 31, 2018 were as follows (in thousands): Gross Gross Unrealized Unrealized As of March 31, 2019 Cost Accretion Gains Losses Fair Value US treasury securities $ 233,427 $ 1,204 $ 66 $ (16 ) $ 234,681 US government agency securities 150,414 742 90 (2 ) 151,244 Total $ 383,841 $ 1,946 $ 156 $ (18 ) $ 385,925 Gross Gross Unrealized Unrealized As of December 31, 2018 Cost Accretion Gains Losses Fair Value US treasury securities $ 264,619 $ 813 $ 19 $ (58 ) $ 265,393 US government agency securities 120,653 328 21 (24 ) 120,978 Total $ 385,272 $ 1,141 $ 40 $ (82 ) $ 386,371 |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): March 31, December 31, 2019 2018 Accrued payroll and employee related expenses $ 2,225 $ 4,113 Legal and related services 1,033 825 Clinical related 2,560 3,424 Manufacturing related 1,789 2,684 Accrued other 882 489 Deferred rent - current - 124 $ 8,489 $ 11,659 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Status of Stock Options | A summary of the status of stock options at March 31, 2019, and the changes during the three months then ended, is presented in the following table: Weighted Weighted Aggregate Number Average Average Intrinsic of Exercise Remaining Value (in Options Price Contract Life thousands) Outstanding at January 1, 2019 6,889,287 $ 10.25 Granted 2,462,100 10.82 Exercised (5,000 ) 8.30 Expired/Forfeited (71,414 ) 11.05 Outstanding at March 31, 2019 9,274,973 $ 10.40 8.46 $ 9,916 Options exercisable at March 31, 2019 3,892,634 $ 8.85 7.31 $ 7,247 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the assumptions relating to options granted pursuant to the Company’s equity incentive plans for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, Assumptions: 2019 2018 Expected term (years) 6.06 5.13 – 6.50 Expected volatility 70.78% 170.85% - 200.28% Risk-free interest rate 2.59% 2.27% - 2.77% Expected dividend yield 0% 0% |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related To Leases [Table Text Block] | The balance sheet classification of the Company’s right-of-use asset and lease liabilities was as follows: March 31, 2019 Operating lease right-of-use assets $ 9,957 Operating lease liabilities Current portion included in current liabilities 6,059 long-term portion included in non-current liabilities 4,380 Total Operating lease liabilities $ 10,439 |
Lease, Cost [Table Text Block] | The components of lease expenses, which were included in Total expenses in the Company’s consolidated statement of operations, were as follows: For the Three Months Ended March 31, 2019 Operating lease cost $ 1,594 Variable lease cost 896 Short-term lease cost 19 Total lease cost 2,509 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of March 31, 2019, the maturities of the Company’s operating lease liabilities were as follows (in thousands): Facility leases CMO embedded leases Total Remainder of 2019 $ 1,066 $ 3,975 $ 5,041 2020 1,223 3,366 4,589 2021 419 994 1,413 2022 - 144 144 2023 - - - Thereafter - - - Total lease payments $ 2,708 $ 8,479 $ 11,187 Less: Present value adjustment (189 ) (559 ) (748 ) Operating lease liabilities $ 2,519 $ 7,920 $ 10,439 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows: Facility leases CMO embedded leases Total 2019 $ 1,373 $ 5,088 $ 6,461 2020 1,223 3,366 4,589 2021 418 994 1,412 2022 - 144 144 2023 - - - Thereafter - - - Total lease payments $ 3,014 $ 9,592 $ 12,606 |
GENERAL ORGANIZATION AND BUSI_2
GENERAL ORGANIZATION AND BUSINESS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Oct. 17, 2018 | Jan. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2013 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income (Loss) Attributable to Parent | $ (36,950) | $ (26,515) | ||||||
Cash, Cash Equivalents, and Short-term Investments | 385,925 | $ 386,371 | ||||||
Cash and Cash Equivalents, at Carrying Value | 54,093 | 297,082 | $ 82,152 | $ 145,373 | ||||
Short-term Investments | 385,900 | |||||||
Stock Issued During Period, Shares, New Issues | 25,300,000 | 50,000 | ||||||
Proceeds from Issuance of Common Stock | $ 236,700 | 0 | 162,186 | |||||
Shares Issued, Price Per Share | $ 9.97 | |||||||
Net Cash Provided by (Used in) Operating Activities | $ (29,090) | $ (17,849) | ||||||
Underwriter [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 3,300,000 | |||||||
IPO [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 15,000,000 | 8,846,154 | ||||||
Proceeds from Issuance of Common Stock | $ 162,000 | $ 53,700 | ||||||
Shares Issued, Price Per Share | $ 11.50 | $ 6.50 | ||||||
IPO [Member] | Underwriter [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 1,956,521 | 1,153,846 | ||||||
Proceeds from Issuance of Common Stock | $ 162,000 | $ 57,500 | ||||||
Common Stock [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 25,300,000 | 15,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15,284,103 | 20,850,266 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9,274,973 | 6,951,067 | |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 5,570,835 | |
Restricted Stock Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 57,285 | 103,123 | |
Series A Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 97,000 | 847,000 |
Series B Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 5,854,845 | 7,378,241 |
[1] | on an as-converted basis |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets, Fair Value Disclosure | $ 385,925 | $ 368,371 |
US treasury securities [Member] | ||
Assets, Fair Value Disclosure | 234,681 | 265,393 |
US Government agency securities [Member] | ||
Assets, Fair Value Disclosure | 151,244 | 120,978 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure | 385,925 | 386,371 |
Fair Value, Inputs, Level 1 [Member] | US treasury securities [Member] | ||
Assets, Fair Value Disclosure | 234,681 | 265,393 |
Fair Value, Inputs, Level 1 [Member] | US Government agency securities [Member] | ||
Assets, Fair Value Disclosure | 151,244 | 120,978 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | US treasury securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | US Government agency securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US treasury securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Government agency securities [Member] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost, Total | $ 5,846 | $ 4,104 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost, Total | 2,701 | 2,000 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost, Total | $ 3,145 | $ 2,104 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 5,846 | $ 4,104 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 5,779 | 4,037 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 67 | $ 67 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | $ 300 | |
Operating lease right-of-use assets | 9,957 | 10,400 | $ 0 |
Operating Lease, Liability, Noncurrent | 4,380 | 5,800 | 0 |
Operating Lease, Liability, Current | $ 6,059 | $ 4,900 | $ 0 |
CASH EQUIVALENTS AND SHORT-TE_3
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Cash equivalents total | $ 54,093 | $ 82,152 | $ 297,082 | $ 145,373 |
Demand Deposits [Member] | ||||
Cash equivalents total | 11,300 | 56,200 | ||
Money market funds [Member] | ||||
Cash equivalents total | $ 42,795 | $ 25,968 |
CASH EQUIVALENTS AND SHORT-TE_4
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash, Cash Equivalents, and Short-term Investments | $ 385,925 | $ 386,371 |
US Treasury Securities [Member] | ||
Cash, Cash Equivalents, and Short-term Investments | 234,681 | 265,393 |
US government agency securities [Member] | ||
Cash, Cash Equivalents, and Short-term Investments | $ 151,244 | $ 120,978 |
CASH EQUIVALENTS AND SHORT-TE_5
CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cost | $ 383,841 | $ 385,272 |
Accretion | 1,946 | 1,141 |
Gross Unrealized Gains | 156 | 40 |
Gross Unrealized Losses | (18) | (82) |
Fair Value | 385,925 | 386,371 |
US treasury securities [Member] | ||
Cost | 233,427 | 264,619 |
Accretion | 1,204 | 813 |
Gross Unrealized Gains | 66 | 19 |
Gross Unrealized Losses | (16) | (58) |
Fair Value | 234,681 | 265,393 |
US Government agency securities [Member] | ||
Cost | 150,414 | 120,653 |
Accretion | 742 | 328 |
Gross Unrealized Gains | 90 | 21 |
Gross Unrealized Losses | (2) | (24) |
Fair Value | $ 151,244 | $ 120,978 |
BALANCE SHEET COMPONENTS (Detai
BALANCE SHEET COMPONENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued payroll and employee related expenses | $ 2,225 | $ 4,113 |
Legal and related services | 1,033 | 825 |
Clinical related | 2,560 | 3,424 |
Manufacturing related | 1,789 | 2,684 |
Accrued other | 882 | 489 |
Deferred rent - current | 0 | 124 |
Accrued liabilities | $ 8,489 | $ 11,659 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Jan. 16, 2019 | Oct. 17, 2018 | Jan. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2013 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 25,300,000 | 50,000 | ||||||
Proceeds from Issuance of Common Stock | $ 236,700,000 | $ 0 | $ 162,186,000 | |||||
Shares Issued, Price Per Share | $ 9.97 | |||||||
Stock Repurchased and Retired During Period, Shares | 32,500 | |||||||
Common Stock Shares Retained | 17,500 | |||||||
Other Income [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Gain loss On cancel of Shares | $ 335,000 | |||||||
Underwriter [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 3,300,000 | |||||||
Proceeds From Issuance Of Common Stock Gross | $ 252,200,000 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 25,300,000 | 15,000,000 | ||||||
Conversion of Stock, Shares Issued | 5,854,845 | |||||||
IPO [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 15,000,000 | 8,846,154 | ||||||
Proceeds from Issuance of Common Stock | $ 162,000,000 | $ 53,700,000 | ||||||
Shares Issued, Price Per Share | $ 11.50 | $ 6.50 | ||||||
IPO [Member] | Underwriter [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 1,956,521 | 1,153,846 | ||||||
Proceeds from Issuance of Common Stock | $ 162,000,000 | $ 57,500,000 | ||||||
Series A Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred Stock, Shares Authorized | 17,000 | 17,000 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||
Preferred Stock, Shares Outstanding | 194 | 194 | ||||||
Series A Convertible Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of Stock, Shares Issued | 500 | |||||||
Preferred Stock, Shares Authorized | 17,000 | |||||||
Preferred Stock, Shares Outstanding | 194 | |||||||
Series A Convertible Preferred Stock [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of Stock, Shares Converted | 97,000 | |||||||
Series A Convertible Preferred Stock [Member] | Private Placement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of Stock, Price Per Share | $ 2 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 1,000 | |||||||
Series B Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred Stock, Shares Authorized | 11,500,000 | 11,500,000 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||
Preferred Stock, Shares Outstanding | 5,854,845 | 5,854,845 | ||||||
Series B Convertible Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred Stock, Shares Authorized | 11,500,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 4.75 | |||||||
Convertible Price Per Shares | $ 4.75 | |||||||
Blank Check [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred Stock, Shares Authorized | 50,000,000 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) - Employee Stock Option [Member] | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Number of Options | |
Outstanding, beginning balance | shares | 6,889,287 |
Granted | shares | 2,462,100 |
Exercised | shares | (5,000) |
Expired/Cancelled | shares | (71,414) |
Outstanding, ending balance | shares | 9,274,973 |
Exercisable | shares | 3,892,634 |
Weighted Average Exercise Price | |
Outstanding, beginning balance | $ / shares | $ 10.25 |
Granted | $ / shares | 10.82 |
Exercised | $ / shares | 8.30 |
Expired/Cancelled | $ / shares | 11.05 |
Outstanding, ending balance | $ / shares | 10.40 |
Exercisable | $ / shares | $ 8.85 |
Weighted Average Remaining Contractual Life | |
Outstanding | 8 months 13 days |
Exercisable | 7 months 9 days |
Aggregate Intrinsic Value | |
Outstanding, beginning balance | $ | $ 9,916 |
Exercisable | $ | $ 7,247 |
STOCK BASED COMPENSATION (Det_2
STOCK BASED COMPENSATION (Details 1) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.59% | |
Expected term (in years) | 6 years 21 days | |
Expected volatility | 70.78% | |
Maximum [Member] | ||
Risk-free interest rate | 2.77% | |
Expected term (in years) | 6 years 6 months | |
Expected volatility | 200.28% | |
Minimum [Member] | ||
Risk-free interest rate | 2.27% | |
Expected term (in years) | 5 years 1 month 17 days | |
Expected volatility | 170.85% |
STOCK BASED COMPENSATION (Det_3
STOCK BASED COMPENSATION (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jun. 02, 2016 | Aug. 31, 2013 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 22, 2018 | Apr. 16, 2016 | Apr. 10, 2015 | Sep. 19, 2014 | Aug. 20, 2014 | Oct. 14, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 45,700 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 20 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 137,500 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 6.99 | $ 15.52 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | an amendment to increase the number of options or other awards that can be granted to any one person during a twelve (12) month period from 50,000 shares to 300,000 shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 57,285 | |||||||||
Share-based Compensation | $ 5,846 | $ 4,104 | ||||||||
Restricted Common Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | 100 | $ 100 | ||||||||
Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | $ 300 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 2 months 1 day | |||||||||
Restricted Stock [Member] | Chief Executive Officer [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 550,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.87 | |||||||||
First Anniversary [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 137,500 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months | |||||||||
Satisfaction Of Clinical Trial Milestones [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 275,000 | |||||||||
2011 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 376,240 | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,700,000 | 1,900,000 | 180,000 | |||||||
2011 Equity Incentive Plan [Member] | Minimum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 180,000 | |||||||||
2014 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 | 2,350,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,223 | |||||||||
2014 Equity Incentive Plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,000,000 | |||||||||
2018 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,000,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,183,900 |
LICENSES AND AGREEMENTS (Detail
LICENSES AND AGREEMENTS (Details Textual) - USD ($) $ in Thousands | Sep. 14, 2016 | Apr. 17, 2017 | Nov. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | May 31, 2017 |
Research and Development Expense | $ 30,905 | $ 19,912 | ||||
Research and Development Arrangement [Member] | ||||||
Prepaid Expense, Current | $ 1,400 | |||||
Research Collaboration And Clinical Grant Agreements [Member] | ||||||
Research and Development Expense | 300 | 600 | ||||
Maximum [Member] | Research and Development Arrangement [Member] | ||||||
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross | $ 14,200 | |||||
National Cancer Institute [Member] | ||||||
Research and Development Expense | $ 500 | |||||
Moffitt License Agreement [Member] | ||||||
Agreement Term | 20 years | |||||
Cooperative Research and Development Agreement [Member] | ||||||
Research and Development Expense | $ 500 | |||||
Agreement Term | 5 years | |||||
PolyBioCept, AB - Exclusive and Co-Exclusive License Agreement [Member] | ||||||
Additional Milestone Payable | $ 8,700 | |||||
Number Of Unregistered Common Stock To Be Issued | 2,219,376 | |||||
Reimbursement In Relation To Transfer Of Knowhow | $ 200 | |||||
Clinical Trials Management Fees Payable | $ 100 | |||||
Initial Term Of Licence Agreement | 30 years | |||||
Payment For Upfront Exclusive License | $ 2,500 | |||||
WuXi Apptech, Inc - Manufacturing and Services Agreement [Member] | ||||||
Research and Development Expense | $ 3,800 | $ 2,800 | ||||
WuXi Apptech, Inc - Manufacturing and Services Agreement [Member] | Manufacturing Suites [Member] | ||||||
Manufacturing and Services Agreement, Amount Payable | $ 2,500 | |||||
WuXi Apptech, Inc - Manufacturing and Services Agreement [Member] | Commercial Manufacturing cGMP Suite [Member] | ||||||
Manufacturing and Services Agreement, Amount Payable | $ 5,850 | |||||
Research Collaboration and Clinical Grant Agreements with Moffitt [Member] | ||||||
Research and Development Expense | 1,200 | |||||
Moffitt License Agreement One [Member] | ||||||
Payments For Upfront Licensing Fee | 100 | |||||
Moffitt License Agreement Two [Member] | ||||||
Payments For Upfront Licensing Fee | 100 | |||||
Additional Milestone Payable | $ 400 |
LEGAL PROCEEDINGS (Details Text
LEGAL PROCEEDINGS (Details Textual) | Jun. 13, 2017USD ($)shares | Jun. 03, 2016USD ($) | Nov. 30, 2012USD ($) | Jun. 30, 2012USD ($) | Mar. 31, 2019shares | Jun. 30, 2016shares | Apr. 08, 2016USD ($) |
Loss Contingency, Damages Sought, Value | $ | $ 500,000 | ||||||
Common Stock Registered For Resale | shares | 128,500 | ||||||
Number of share options or share units exercised during the current period. | shares | 128,500 | ||||||
Twenty Eleven Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 200,000 | ||||||
Dr. Steven Fischkoff [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 150,000 | ||||||
Severance Pay And Retention Bonus | $ | $ 300,000 | ||||||
Warrant [Member] | |||||||
Shares Sold Under Ineffective Registration | shares | 128,500 | ||||||
Minimum [Member] | |||||||
Loss Contingency, Estimate of Possible Loss | $ | $ 1,500,000 | ||||||
Solomon Capital, LLC [Member] | |||||||
Proceeds from Related Party Debt | $ | $ 100,000 | $ 200,000 | |||||
Debt Instrument, Convertible, Number of Equity Instruments | 111,425 | ||||||
Solomon Capital, LLC [Member] | Commercial Paper [Member] | |||||||
Debt Instrument, Face Amount | $ | $ 200,000 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 9,957 | $ 10,400 | $ 0 |
Operating lease liabilities | |||
Current portion included in current liabilities | 6,059 | 4,900 | 0 |
long-term portion included in non-current liabilities | 4,380 | 5,800 | $ 0 |
Total Operating lease liabilities | $ 10,439 | $ 10,700 |
LEASES (Details 1)
LEASES (Details 1) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,594 |
Variable lease cost | 896 |
Short-term lease cost | 19 |
Total lease cost | $ 2,509 |
LEASES (Details 2)
LEASES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Remainder of 2019 | $ 5,041 | |
2020 | 4,589 | |
2021 | 1,413 | |
2022 | 144 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 11,187 | |
Less: Present value adjustment | (748) | |
Operating lease liabilities | 10,439 | $ 10,700 |
Facility Leases [Member] | ||
Remainder of 2019 | 1,066 | |
2020 | 1,223 | |
2021 | 419 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 2,708 | |
Less: Present value adjustment | (189) | |
Operating lease liabilities | 2,519 | |
CMO Embedded Leases [Member] | ||
Remainder of 2019 | 3,975 | |
2020 | 3,366 | |
2021 | 994 | |
2022 | 144 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 8,479 | |
Less: Present value adjustment | (559) | |
Operating lease liabilities | $ 7,920 |
LEASES (Details 3)
LEASES (Details 3) | Dec. 31, 2018USD ($) |
2019 | $ 6,461 |
2020 | 4,589 |
2021 | 1,412 |
2022 | 144 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 12,606 |
Facility Leases [Member] | |
2019 | 1,373 |
2020 | 1,223 |
2021 | 418 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 3,014 |
CMO Embedded Leases [Member] | |
2019 | 5,088 |
2020 | 3,366 |
2021 | 994 |
2022 | 144 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | $ 9,592 |
LEASES (Details Textual)
LEASES (Details Textual) | Nov. 02, 2018USD ($) | Oct. 19, 2018USD ($) | Jul. 31, 2017USD ($) | Sep. 30, 2016USD ($)ft² | Aug. 04, 2016USD ($)ft² | Mar. 31, 2019USD ($) | Apr. 20, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 05, 2017USD ($) | Apr. 28, 2017ft² | Apr. 30, 2015ft² | Dec. 31, 2014ft² |
Lease Expiration Term | 30 months | ||||||||||||
Operating Leases, Future Minimum Payments Due | $ 11,187,000 | ||||||||||||
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 3.00% | ||||||||||||
Operating Lease, Weighted Average Remaining Lease Term | 1 year 10 months 9 days | ||||||||||||
Operating Lease, Weighted Average Discount Rate, Percent | 8.40% | ||||||||||||
Increase Decrease In Operating Lease Liability And Right Of Use Asset | $ 1,000,000 | ||||||||||||
Operating Lease, Liability | 10,439,000 | $ 10,700,000 | |||||||||||
Operating lease right-of-use assets | 9,957,000 | $ 10,400,000 | $ 0 | ||||||||||
Operating Lease, Payments | $ 59,000 | $ 1,400,000 | |||||||||||
Teradata Us Inc [Member] | |||||||||||||
Area of Land | ft² | 11,449 | ||||||||||||
San Carlos Lease [Member] | Land [Member] | |||||||||||||
Area of Land | ft² | 8,733 | 26,000 | |||||||||||
Lease Expiration Term | 54 months | ||||||||||||
Operating Leases, Future Minimum Payments Due | $ 38,000 | ||||||||||||
New York Lease [Member] | |||||||||||||
Operating Leases, Rent Expense | $ 4,000 | ||||||||||||
New York Lease [Member] | Office Space [Member] | |||||||||||||
Operating Leases, Rent Expense | $ 7,000 | ||||||||||||
Operating Leases, Future Minimum Payments Due | $ 9,000 | ||||||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 18,000 | ||||||||||||
Tampa Lease [Member] | |||||||||||||
Area of Land | ft² | 8,673 | 6,043 | 5,115 | ||||||||||
Operating Leases, Rent Expense | $ 20,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Sep. 14, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 |
Payments for Legal Services | $ 100 | $ 100 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | The granted stock options vest in 12 quarterly installments (with 1/12th of the option shares having vested on the date of grant). | ||||
Share-based Compensation | 5,846 | 4,104 | |||
Retained Earnings (Accumulated Deficit) | (410,006) | $ (372,760) | |||
Accounting Standards Update 2018-07 [Member] | |||||
Retained Earnings (Accumulated Deficit) | $ 300 | ||||
Consulting Agreement [Member] | |||||
Share-based Compensation | $ 100 | $ 400 | |||
Board of Directors Chairman [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 150,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 7.30 |
SUBSEQUENT EVENT (Details Textu
SUBSEQUENT EVENT (Details Textual) | Jul. 02, 2019USD ($)ft² | May 02, 2019USD ($)ft² | Oct. 19, 2018USD ($) | Mar. 31, 2019USD ($) |
Operating Lease, Payments | $ 59,000 | $ 1,400,000 | ||
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 3.00% | |||
Lease Expiration Term | 30 months | |||
Subsequent Event [Member] | ||||
Area of Land | ft² | 4,500 | 1,500 | ||
Operating Lease, Payments | $ 11,063 | $ 2,000 | ||
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 2.50% | |||
Lease Expiration Term | 3 years |