Assembly Biosciences (ASMB) 10-Q 9 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 03, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	ASSEMBLY BIOSCIENCES, INC.
Entity Central Index Key	1,426,800
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	ASMB
Entity Common Stock, Shares Outstanding		17,225,554

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 23,794,088	$ 27,107,526
Marketable securities, at fair value	34,851,387	40,556,652
Other current assets	609,351	704,287
Total current assets	59,254,826	68,368,465
Long-term assets
Marketable securities, at fair value	7,900,260	23,392,129
Property, plant and equipment, net	128,453	148,609
Security deposits	205,344	197,158
Intangible assets	29,000,000	29,000,000
Goodwill	12,638,136	12,638,136
Total long-term assets	49,872,193	65,376,032
Total assets	109,127,019	133,744,497
Current liabilities
Accounts payable	3,837,964	1,363,698
Accrued expenses	3,644,282	2,039,204
Total current liabilities	7,482,246	3,402,902
Long-term liabilities
Deferred tax liabilities	11,600,000	11,600,000
Total long-term liabilities	11,600,000	11,600,000
Total liabilities	19,082,246	15,002,902
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	0	0
Common stock, $0.001 par value; 50,000,000 shares authorized; 17,225,554 and 17,225,662 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	17,226	17,226
Additional paid-in capital	287,544,895	283,511,859
Accumulated other comprehensive loss	(836,568)	(821,585)
Accumulated deficit	(196,680,780)	(163,965,905)
Total stockholders' equity	90,044,773	118,741,595
Total liabilities and stockholders' equity	$ 109,127,019	$ 133,744,497

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	17,225,554	17,225,662
Common stock, shares outstanding	17,225,554	17,225,662

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating expenses:
Research and development	$ 8,833,027	$ 4,630,148	$ 24,470,634	$ 13,132,336
General and administrative	2,845,898	2,492,078	8,939,573	8,347,013
Total operating expenses	11,678,925	7,122,226	33,410,207	21,479,349
Loss from operations	(11,678,925)	(7,122,226)	(33,410,207)	(21,479,349)
Other income (expenses)
Interest and other income	378,381	502,684	1,313,407	772,183
Realized loss from marketable securities	(273,573)	1,609	(618,075)	1,609
Total other income	104,808	504,293	695,332	773,792
Net loss	(11,574,117)	(6,617,933)	(32,714,875)	(20,705,557)
Unrealized loss recognized in accumulated other comprehensive loss before reclassification	(270,779)	(252,050)	(633,058)	(386,269)
Reclassification adjustment of unrealized loss (gain) included in net loss	273,573	(1,609)	618,075	(1,609)
Comprehensive loss	$ (11,571,323)	$ (6,871,592)	$ (32,729,858)	$ (21,093,435)
Net loss per share, basic and diluted	$ (0.67)	$ (0.38)	$ (1.90)	$ (1.36)
Weighted average common shares outstanding, basic and diluted	17,225,554	17,205,863	17,225,625	15,189,395

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net loss	$ (32,714,875)	$ (20,705,557)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	55,250	47,949
Stock-based compensation	4,033,036	6,355,453
Realized loss from marketable securities	618,075	(1,609)
Changes in operating assets and liabilities:
Other current assets	94,936	(580,011)
Accounts payable	2,474,266	556,738
Accrued expenses	1,605,078	1,140,024
Security deposits	(8,186)	(55,121)
Net cash used in operating activities	(23,842,420)	(13,242,134)
Cash flows from investing activities
Purchases of fixed assets	(35,094)	(47,991)
Purchases of marketable securities	(7,951,256)	(63,668,536)
Redemptions of marketable securities	28,515,332	2,699,778
Net cash provided by (used in) investing activities	20,528,982	(61,016,749)
Cash flows from financing activities
Proceeds from common stock sold, net of underwriters' discounts and cost	0	81,014,989
Proceeds from exercise of stock options	0	554,268
Net cash provided by financing activities	0	81,569,257
Net (decrease) increase in cash and cash equivalents	(3,313,438)	7,310,374
Cash and cash equivalents at the beginning of the period	27,107,526	29,091,113
Cash and cash equivalents at the end of the period	23,794,088	36,401,487
Supplemental disclosure of cash flow information:
Change in unrealized loss on marketable securities available-for-sale	(14,983)	(387,878)
Cashless exercise of warrants	$ 0	$ 88

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2016 - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2015	$ 118,741,595	$ 17,226	$ 283,511,859	$ (821,585)	$ (163,965,905)
Balance (in shares) at Dec. 31, 2015		17,225,662
Stock-based compensation	4,033,036	$ 0	4,033,036	0	0
Change in unrealized loss on marketable securities	(14,983)	0	0	(14,983)	0
Cancellation of common stock	0	$ 0	0	0	0
Cancellation of common stock (in shares)		(108)
Net loss	(32,714,875)	$ 0	0	0	(32,714,875)
Balance at Sep. 30, 2016	$ 90,044,773	$ 17,226	$ 287,544,895	$ (836,568)	$ (196,680,780)
Balance (in shares) at Sep. 30, 2016		17,225,554

Business

Business	9 Months Ended
	Sep. 30, 2016
Organization, Business and Basis Of Presentation [Abstract]
Business	Note 1 - Business Overview Assembly Biosciences, Inc. (“Assembly” or the “Company”) is a biotechnology company advancing two innovative platform programs: (i) HBV-cure program, which is advancing a new class of oral therapeutics for the treatment of hepatitis B virus (HBV) infection and (ii) microbiome program, which is a novel class of oral biological therapeutics, which are designed to restore health to a dysbiotic microbiome. The Company’s HBV-cure program is aimed at increasing the current low cure rates for patients with HBV and is pursuing several drug candidates that inhibit multiple viral targets throughout the HBV lifecycle for possible use alone or in combination therapy. Assembly has discovered several novel core protein Allosteric Modulators (CpAMs), which are small molecules that directly target and allosterically modulate a number of HBV core protein (HBc) functions. The Company’s microbiome program consists of a fully integrated platform that includes a robust strain identification and selection process, methods for strain isolation and growth under current Good Manufacturing Practices (cGMP) conditions, and a patent-pending delivery system, GEMICEL TM C. difficile infections Liquidity The Company has not derived any revenue from product sales to date as it currently has no approved products. Once a product has been developed, it will need to be approved for sale by the U.S. Food and Drug Administration (FDA) or an applicable foreign regulatory agency. Since inception, the Company’s operations have been financed primarily through the sale of equity securities, the proceeds from the exercise of warrants and stock options and the issuance of debt. The Company has incurred losses from operations and negative cash flows from operating activities since inception and expects to continue to incur substantial losses for the next several years as it continues its product development efforts. Management believes the Company currently has sufficient funds to meet its operating requirements for at least the next twelve months. If the Company cannot generate significant cash from its operations, it intends to obtain any additional funding it requires through strategic relationships, public or private equity or debt financings, grants or other arrangements. The Company cannot assure such funding will be available on reasonable terms, if at all.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Summary Of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies The accompanying condensed consolidated interim financial statements include the accounts of the Company and its subsidiary. All intercompany balances and transactions have been eliminated. The accompanying condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (SEC) and on the same basis as the Company prepares its annual audited consolidated financial statements. The condensed consolidated balance sheet as of September 30, 2016, condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2016 and 2015, condensed consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015, and condensed consolidated statement of changes in stockholders’ equity for the nine months ended September 30, 2016 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016 or for any future interim period. The consolidated balance sheet at December 31, 2015 has been derived from audited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2015, and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on March 11, 2016 (the “2015 Annual Report”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the accompanying financial statements include recoverability and useful lives (indefinite) of intangible assets, assessment of impairment of goodwill, and the fair value of stock options and warrants granted to employees, consultants, directors, investors, licensors, placement agents and underwriters. The Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions. There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2015 Annual Report. Certain reclassifications have been made to previous period amounts to conform to the current period presentation on the condensed consolidated statements of operations and comprehensive loss. The unrealized gain on available-for-sale securities has been included in accumulated other comprehensive loss, and the amount of gain reclassified out of accumulated other comprehensive loss into realized gain from marketable securities when the securities were sold was $ 1,609 Property and equipment are stated at cost and consist of lab equipment, computer hardware and software and leaseholder improvements. The Company computes depreciation under the straight-line method over the following estimated useful life of the related assets: • Lab equipment 3 to 5 years • Computer hardware and software 3 to 5 years Leasehold improvements are amortized over the remaining terms of the respective leases or the estimated useful life of the leasehold improvements, whichever is less. Maintenance and repair costs are expensed as incurred. Basic net loss per share of common stock excludes dilution and is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity unless inclusion of such shares would be anti-dilutive. Since the Company has only incurred losses, basic and diluted net loss per share is the same. Nine Months Ended September 30, 2016 2015 Warrants to purchase common stock 16,909 56,349 Options to purchase common stock 4,377,201 3,244,984 Total 4,394,110 3,301,333 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2016, FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 840) In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customer In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, disclosures.

Marketable Securities

Marketable Securities	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Note 3 - Marketable Securities September 30, 2016 Amortized Cost Gross Unrealized Gross Unrealized Fair Value Short-term available-for-sale securities Corporate bonds $ 32,815,798 $ - $ (798,140) $ 32,017,658 Government and agency obligations 1,225,000 1,641 - 1,226,641 Municipal bonds 1,596,160 10,928 - 1,607,088 35,636,958 12,569 (798,140) 34,851,387 Long-term available-for-sale securities Corporate bonds 7,951,257 14,327 (65,324) 7,900,260 7,951,257 14,327 (65,324) 7,900,260 Total $ 43,588,215 $ 26,896 $ (863,464) $ 42,751,647 December 31, 2015 Amortized Cost Gross Unrealized Fair Value Short-term available-for-sale securities Corporate bonds $ 41,126,524 $ (569,872) $ 40,556,652 41,126,524 (569,872) 40,556,652 Long-term available-for-sale securities Government and agency obligations 1,225,000 (3,834) 1,221,166 Municipal bonds 1,596,160 (4,384) 1,591,776 Corporate bonds 20,822,682 (243,495) 20,579,187 23,643,842 (251,713) 23,392,129 Total $ 64,770,366 $ (821,585) $ 63,948,781 The contractual term to maturity of short-term marketable securities held by the Company as of September 30, 2016 is less than one year 1 to 2 years Quoted prices in active markets for identical assets (Level 1) $ - Quoted prices for similar assets observable in the marketplace (Level 2) 42,751,647 Significant unobservable inputs (Level 3) - Total $ 42,751,647 The fair values of marketable securities are determined using quoted market prices from daily exchange traded markets based on the closing prices as of September 30, 2016 and December 31, 2015. There were no transfers of marketable securities between Levels 1, 2 and 3 for the nine months ended September 30, 2016 and 2015. Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 10,117,141 $ (45,335) $ 26,357,649 $ (818,129) $ 36,474,790 $ (863,464) Total $ 10,117,141 $ (45,335) $ 26,357,649 $ (818,129) $ 36,474,790 $ (863,464) The Company has determined that the unrealized losses are deemed to be temporary impairments as of September 30, 2016. The Company believes that the unrealized losses generally are caused by increases in the risk premiums required by market participants rather than an adverse change in cash flows or a fundamental weakness in the credit quality of the issuer or underlying assets. Because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, it does not consider the investment in corporate bonds to be other-than-temporarily impaired at September 30, 2016.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	Note 4 - Property, Plant and Equipment, Net September 30, December 31, Useful life (Years) 2016 2015 Computer hardware and software 3 $ 86,228 $ 84,065 Lab equipment 3 to 5 177,782 177,782 Office equipment 3 to 5 1,109 1,109 Leasehold improvements 1 32,931 - Total property, plant and equipment 298,050 262,956 Less: Accumulated depreciation and amortization (169,597) (114,347) Property, plant and equipment, net $ 128,453 $ 148,609 Depreciation expense for the three months ended September 30, 2016 and 2015 was approximately $ 18,000 18,000 Depreciation expense for the nine months ended September 30, 2016 and 2015 was approximately $ 55,000 48,000

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses	Note 5 - Accrued Expenses September 30, December 31, 2016 2015 Accrued expenses: Salaries, bonuses and employee benefits $ 2,477,812 $ 1,628,975 Severance accrued for former CEO - 106,777 Research and development expenses 713,888 120,700 General and administrative expenses 452,582 - Other - 182,752 Total accrued expenses $ 3,644,282 $ 2,039,204

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Stockholders' Transactions [Abstract]
Stockholders' Equity	Note 6 - Stockholders’ Equity Common Stock On July 10, 2014, the Company’s stockholders approved a 1-for-5 reverse stock split of the issued and outstanding shares of the Company’s common stock, par value $ 0.001 1.45 108 Options In July 2010, the stockholders approved the 2010 Equity Incentive Plan (the “2010 Plan”), under which, as of September 30, 2016, there were outstanding options to purchase an aggregate of 714,209 In July 2014, the stockholders approved the 2014 Stock Incentive Plan (the “2014 Plan”). On June 2, 2016, at the 2016 Annual Meeting of Stockholders (the “Annual Meeting”), the stockholders of the Company approved the amendment and restatement of the Company’s 2014 Plan (the “Amended and Restated 2014 Plan”). Pursuant to the terms of the Amended and Restated 2014 Plan, the maximum number of shares reserved for issuance thereunder is 4,160,000 1,600,000 3,041,341 1,046,570 21,251 Number of Shares Weighted Average Total Intrinsic Outstanding as of December 31, 2015 3,367,784 $ 7.16 $ 3,971,205 Granted 1,058,000 7.07 430,650 Forfeited (48,583) 10.15 - Outstanding as of September 30, 2016 4,377,201 $ 7.10 $ 3,554,711 Options vested and exercisable 2,921,597 $ 6.69 $ 2,714,765 Nine Months Ended September 30, 2016 2015 Exercise price $5.84 - $8.14 $9.42 - $16.55 Expected stock price volatility 86.5% - 91.8% 89.18% - 95.55% Risk-free rate of interest 1.36% - 1.94% 1.49% - 2.08% Term (years) 5.37 - 7.00 5.13 - 6.97 Future Stock Option Three months ended December 31, 2016 $ 1,117,796 Year ended December 31, 2017 2,722,769 Year ended December 31, 2018 1,233,560 Year ended December 31, 2019 488,828 Year ended December 31, 2020 100,085 Total $ 5,663,038 Unamortized stock-based compensation expense amounted to $ 5.7 1.8 Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Research and development $ 772,835 $ 148,963 $ 2,341,842 $ 2,624,265 General and administrative 282,208 1,000,466 1,691,194 3,731,188 Total stock-based compensation expense $ 1,055,043 $ 1,149,429 $ 4,033,036 $ 6,355,453 Warrants There was no warrant activity for the nine months ended September 30, 2016. The weighted average remaining contractual life of 16,909 3.7

Commitments

Commitments	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments	Note 7 - Commitments Real Property Leases The Company leases office space for corporate functions in Carmel, IN under a lease agreement with a monthly lease payment of approximately $ 5,958 4,089 The Company leases office and laboratory space in San Francisco, California under a sublease that expires in December 2017. Research activities for the HBV-cure program are also being conducted at laboratory space leased from Indiana University at Bloomington, IN that expires in December 2017. Research activities for the microbiome program will also be conducted at office and laboratory space leased from the University of Florida Research Foundation in Alachua, FL that expires in May 2017. The total leasing expenses for the three months ended September 30, 2016 and 2015 were approximately $ 318,000 159,000 1.1 456,000 Equipment Lease Pursuant to a Master Lease agreement dated November 25, 2014, the Company leases certain equipment. The equipment lease expense for the three months ended September 30, 2016 and 2015 amounted to approximately $ 227,000 70,000 483,000 171,000

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Summary Of Significant Accounting Policies [Abstract]
Basis of presentation	The accompanying condensed consolidated interim financial statements include the accounts of the Company and its subsidiary. All intercompany balances and transactions have been eliminated. The accompanying condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (SEC) and on the same basis as the Company prepares its annual audited consolidated financial statements. The condensed consolidated balance sheet as of September 30, 2016, condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2016 and 2015, condensed consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015, and condensed consolidated statement of changes in stockholders’ equity for the nine months ended September 30, 2016 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016 or for any future interim period. The consolidated balance sheet at December 31, 2015 has been derived from audited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2015, and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on March 11, 2016 (the “2015 Annual Report”).
Use of Estimates	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the accompanying financial statements include recoverability and useful lives (indefinite) of intangible assets, assessment of impairment of goodwill, and the fair value of stock options and warrants granted to employees, consultants, directors, investors, licensors, placement agents and underwriters. The Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions.
Significant Accounting Policies	There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2015 Annual Report.
Reclassification	Certain reclassifications have been made to previous period amounts to conform to the current period presentation on the condensed consolidated statements of operations and comprehensive loss. The unrealized gain on available-for-sale securities has been included in accumulated other comprehensive loss, and the amount of gain reclassified out of accumulated other comprehensive loss into realized gain from marketable securities when the securities were sold was $ 1,609
Property and Equipment	Property and Equipment Property and equipment are stated at cost and consist of lab equipment, computer hardware and software and leaseholder improvements. The Company computes depreciation under the straight-line method over the following estimated useful life of the related assets: • Lab equipment 3 to 5 years • Computer hardware and software 3 to 5 years Leasehold improvements are amortized over the remaining terms of the respective leases or the estimated useful life of the leasehold improvements, whichever is less. Maintenance and repair costs are expensed as incurred.
Loss per Share of Common Stock	Basic net loss per share of common stock excludes dilution and is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity unless inclusion of such shares would be anti-dilutive. Since the Company has only incurred losses, basic and diluted net loss per share is the same. Nine Months Ended September 30, 2016 2015 Warrants to purchase common stock 16,909 56,349 Options to purchase common stock 4,377,201 3,244,984 Total 4,394,110 3,301,333
Recent Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2016, FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 840) In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customer In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, disclosures.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Summary Of Significant Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Nine Months Ended September 30, 2016 2015 Warrants to purchase common stock 16,909 56,349 Options to purchase common stock 4,377,201 3,244,984 Total 4,394,110 3,301,333

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-sale Securities Reconciliation	Marketable securities consist of the following as of September 30, 2016 and December 31, 2015: September 30, 2016 Amortized Cost Gross Unrealized Gross Unrealized Fair Value Short-term available-for-sale securities Corporate bonds $ 32,815,798 $ - $ (798,140) $ 32,017,658 Government and agency obligations 1,225,000 1,641 - 1,226,641 Municipal bonds 1,596,160 10,928 - 1,607,088 35,636,958 12,569 (798,140) 34,851,387 Long-term available-for-sale securities Corporate bonds 7,951,257 14,327 (65,324) 7,900,260 7,951,257 14,327 (65,324) 7,900,260 Total $ 43,588,215 $ 26,896 $ (863,464) $ 42,751,647 December 31, 2015 Amortized Cost Gross Unrealized Fair Value Short-term available-for-sale securities Corporate bonds $ 41,126,524 $ (569,872) $ 40,556,652 41,126,524 (569,872) 40,556,652 Long-term available-for-sale securities Government and agency obligations 1,225,000 (3,834) 1,221,166 Municipal bonds 1,596,160 (4,384) 1,591,776 Corporate bonds 20,822,682 (243,495) 20,579,187 23,643,842 (251,713) 23,392,129 Total $ 64,770,366 $ (821,585) $ 63,948,781
Schedule Of Available For Sale Securities Fair Value Measurement Categories	The fair value of marketable securities was classified into fair value measurement categories as of September 30, 2016 as follows: Quoted prices in active markets for identical assets (Level 1) $ - Quoted prices for similar assets observable in the marketplace (Level 2) 42,751,647 Significant unobservable inputs (Level 3) - Total $ 42,751,647
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	The following table shows the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2016. Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 10,117,141 $ (45,335) $ 26,357,649 $ (818,129) $ 36,474,790 $ (863,464) Total $ 10,117,141 $ (45,335) $ 26,357,649 $ (818,129) $ 36,474,790 $ (863,464)

Property, Plant and Equipment17

Property, Plant and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment, consists of the following: September 30, December 31, Useful life (Years) 2016 2015 Computer hardware and software 3 $ 86,228 $ 84,065 Lab equipment 3 to 5 177,782 177,782 Office equipment 3 to 5 1,109 1,109 Leasehold improvements 1 32,931 - Total property, plant and equipment 298,050 262,956 Less: Accumulated depreciation and amortization (169,597) (114,347) Property, plant and equipment, net $ 128,453 $ 148,609

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Schedule Accrued Expenses	September 30, December 31, 2016 2015 Accrued expenses: Salaries, bonuses and employee benefits $ 2,477,812 $ 1,628,975 Severance accrued for former CEO - 106,777 Research and development expenses 713,888 120,700 General and administrative expenses 452,582 - Other - 182,752 Total accrued expenses $ 3,644,282 $ 2,039,204

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	A summary of the Company’s option activity and related information for the nine-month period ended September 30, 2016 is as follows: Number of Shares Weighted Average Total Intrinsic Outstanding as of December 31, 2015 3,367,784 $ 7.16 $ 3,971,205 Granted 1,058,000 7.07 430,650 Forfeited (48,583) 10.15 - Outstanding as of September 30, 2016 4,377,201 $ 7.10 $ 3,554,711 Options vested and exercisable 2,921,597 $ 6.69 $ 2,714,765
Assumptions for Weighted Average Fair Value of Options Granted	The fair value of the options granted for the nine months ended September 30, 2016 and 2015, were based on the following assumptions: Nine Months Ended September 30, 2016 2015 Exercise price $5.84 - $8.14 $9.42 - $16.55 Expected stock price volatility 86.5% - 91.8% 89.18% - 95.55% Risk-free rate of interest 1.36% - 1.94% 1.49% - 2.08% Term (years) 5.37 - 7.00 5.13 - 6.97
Estimated Future Stock Based Expenses Relating to Unvested Stock Options	Estimated future stock-based compensation expense relating to unvested stock options is as follows: Future Stock Option Three months ended December 31, 2016 $ 1,117,796 Year ended December 31, 2017 2,722,769 Year ended December 31, 2018 1,233,560 Year ended December 31, 2019 488,828 Year ended December 31, 2020 100,085 Total $ 5,663,038
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	Stock-based compensation expense for the three and nine months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Research and development $ 772,835 $ 148,963 $ 2,341,842 $ 2,624,265 General and administrative 282,208 1,000,466 1,691,194 3,731,188 Total stock-based compensation expense $ 1,055,043 $ 1,149,429 $ 4,033,036 $ 6,355,453

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,394,110	3,301,333
Warrants To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	16,909	56,349
Options To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,377,201	3,244,984

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Marketable Securities, Realized Gain (Loss), Total	$ (273,573)	$ 1,609	$ (618,075)	$ 1,609
Lab equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life			5 years
Lab equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life			3 years
Computer hardware and software [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life			5 years
Computer hardware and software [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life			3 years

Marketable Securities (Details)

Marketable Securities (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 43,588,215	$ 64,770,366
Gross Unrealized Gain	26,896
Gross Unrealized Loss	(863,464)	(821,585)
Fair Value	42,751,647	63,948,781
Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	35,636,958	41,126,524
Gross Unrealized Gain	12,569
Gross Unrealized Loss	(798,140)	(569,872)
Fair Value	34,851,387	40,556,652
Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,951,257	23,643,842
Gross Unrealized Gain	14,327
Gross Unrealized Loss	(65,324)	(251,713)
Fair Value	7,900,260	23,392,129
US Government Agencies Debt Securities [Member] | Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,225,000
Gross Unrealized Gain	1,641
Gross Unrealized Loss	0
Fair Value	1,226,641
US Government Agencies Debt Securities [Member] | Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,225,000
Gross Unrealized Loss		(3,834)
Fair Value		1,221,166
Corporate Bond Securities [Member] | Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	32,815,798	41,126,524
Gross Unrealized Gain	0
Gross Unrealized Loss	(798,140)	(569,872)
Fair Value	32,017,658	40,556,652
Corporate Bond Securities [Member] | Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,951,257	20,822,682
Gross Unrealized Gain	14,327
Gross Unrealized Loss	(65,324)	(243,495)
Fair Value	7,900,260	20,579,187
Municipal Bonds [Member] | Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,596,160
Gross Unrealized Gain	10,928
Gross Unrealized Loss	0
Fair Value	$ 1,607,088
Municipal Bonds [Member] | Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,596,160
Gross Unrealized Loss		(4,384)
Fair Value		$ 1,591,776

Marketable Securities (Details

Marketable Securities (Details 1) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	$ 42,751,647	$ 63,948,781
Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	0
Fair Value, Inputs, Level 2 [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	42,751,647
Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	$ 0

Marketable Securities (Detail24

Marketable Securities (Details 2)	Sep. 30, 2016USD ($)
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	$ 10,117,141
Unrealized Losses, Less than 12 Months	(45,335)
Fair Value, 12 Months or More	26,357,649
Unrealized Losses,12 Months or More	(818,129)
Fair Value, Total	36,474,790
Unrealized Losses, Total	(863,464)
Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	10,117,141
Unrealized Losses, Less than 12 Months	(45,335)
Fair Value, 12 Months or More	26,357,649
Unrealized Losses,12 Months or More	(818,129)
Fair Value, Total	36,474,790
Unrealized Losses, Total	$ (863,464)

Marketable Securities - Additio

Marketable Securities - Additional Information (Details)	9 Months Ended
	Sep. 30, 2016
Short-term Investments [Member]
Available For Sale Securities Maturity Term	less than one year
Other Long-term Investments [Member]
Available For Sale Securities Maturity Term	1 to 2 years

Property, Plant and Equipment26

Property, Plant and Equipment, Net (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 298,050	$ 262,956
Less: Accumulated depreciation and amortization	(169,597)	(114,347)
Property, plant and equipment, net	128,453	148,609
Computer hardware and software [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 86,228	84,065
Property, Plant and Equipment, Useful Life	3 years
Lab equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 177,782	177,782
Lab equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Lab equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 1,109	1,109
Office equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Office equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 32,931	$ 0
Property, Plant and Equipment, Useful Life	1 year

Property, Plant and Equipment27

Property, Plant and Equipment, Net - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation	$ 18,000	$ 18,000	$ 55,250	$ 47,949

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Accrued expenses:
Salaries, bonuses and employee benefits	$ 2,477,812	$ 1,628,975
Severance accrued for former CEO	0	106,777
Research and development expenses	713,888	120,700
General and administrative expenses	452,582	0
Other	0	182,752
Total accrued expenses	$ 3,644,282	$ 2,039,204

Stockholders' Equity (Details)

Stockholders' Equity (Details) - Stock Option [Member]	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Number of Shares
Option, Outstanding at beginning of period | shares	3,367,784
Option, Granted | shares	1,058,000
Option, Forfeited | shares	(48,583)
Option, Outstanding at end of period | shares	4,377,201
Options vested and exercisable | shares	2,921,597
Weighted Average Exercise Price
Option, Outstanding at beginning of period | $ / shares	$ 7.16
Option, Granted | $ / shares	7.07
Option, Forfeited | $ / shares	10.15
Option, Outstanding at end of period | $ / shares	7.1
Options vested and exercisable | $ / shares	$ 6.69
Total Intrinsic Value
Option, Outstanding at beginning of period | $	$ 3,971,205
Option, Granted | $	430,650
Option, Forfeited | $	0
Option, Outstanding at end of period | $	3,554,711
Options vested and exercisable | $	$ 2,714,765

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1) - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Maximum [Member]
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Exercise price	$ 8.14	$ 16.55
Expected stock price volatility	91.80%	95.55%
Risk-free rate of interest	1.94%	2.08%
Term (years)	7 years	6 years 11 months 19 days
Minimum [Member]
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Exercise price	$ 5.84	$ 9.42
Expected stock price volatility	86.50%	89.18%
Risk-free rate of interest	1.36%	1.49%
Term (years)	5 years 4 months 13 days	5 years 1 month 17 days

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2)	Sep. 30, 2016USD ($)
Stockholders Equity Note [Line Items]
Three months ended December 31, 2016	$ 1,117,796
Year ended December 31, 2017	2,722,769
Year ended December 31, 2018	1,233,560
Year ended December 31, 2019	488,828
Year ended December 31, 2020	100,085
Total	$ 5,663,038

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 1,055,043	$ 1,149,429	$ 4,033,036	$ 6,355,453
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	772,835	148,963	2,341,842	2,624,265
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 282,208	$ 1,000,466	$ 1,691,194	$ 3,731,188

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 02, 2016	Sep. 30, 2016	Dec. 31, 2015	Jul. 11, 2014
Stockholders Equity Note [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		$ 5.7
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 9 months 18 days
Common Stock Par Or Stated Value Per Share		$ 0.001	$ 0.001	$ 1.45
Class of Warrant or Right, Outstanding		16,909
Warrant [Member]
Stockholders Equity Note [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term		3 years 8 months 12 days
Amended and Restated 2014 Plan [Member]
Stockholders Equity Note [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized		21,251
Common Stock [Member]
Stockholders Equity Note [Line Items]
Stockholders' Equity, Reverse Stock Split		1-for-5 reverse stock split
Stock Repurchased and Retired During Period, Shares		108
Common Stock Par Or Stated Value Per Share				$ 0.001
2010 Stock Incentive Plan [Member]
Stockholders Equity Note [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number		714,209
2014 Stock Incentive Plan [Member]
Stockholders Equity Note [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number		3,041,341
Common Stock, Capital Shares Reserved for Future Issuance	4,160,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross		1,046,570
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,600,000

Commitments - Additional Inform

Commitments - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Commitments and Contingencies Disclosure [Line Items]
Operating Leases, Rent Expense	$ 318,000	$ 159,000	$ 1,100,000	$ 456,000
Operating Lease Expiration Month and Year			2021-06
Operating Leases, Rent Expense, Net, Total			$ 5,958
Equipment Lease [Member]
Commitments and Contingencies Disclosure [Line Items]
Operating Leases, Rent Expense	$ 227,000	$ 70,000	$ 483,000	$ 171,000
Administrative Functions [Member]
Commitments and Contingencies Disclosure [Line Items]
Operating Lease Expiration Month and Year			2016-11
Operating Leases, Rent Expense, Net, Total			$ 4,089