Fate Therapeutics (FATE) 10-Q13 May 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2014	9-May-14
Document and Entity Information	'	'
Entity Registrant Name	'FATE THERAPEUTICS INC	'
Entity Central Index Key	'0001434316	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	20,514,567
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$47,881	$54,036
Prepaid expenses and other current assets	382	615
Total current assets	48,263	54,651
Property and equipment, net	1,264	810
Restricted cash	122	122
Total assets	49,649	55,583
Current liabilities:	'	'
Accounts payable	1,330	682
Accrued expenses	1,641	2,039
Current portion of deferred rent	61	53
Repurchase liability for unvested equity awards	82	94
Long-term debt, current portion	1,240	1,732
Total current liabilities	4,354	4,600
Deferred rent	118	135
Commitments and contingencies (Note 4)	'	'
Stockholders' equity:	'	'
Preferred stock, $0.001 par value; authorized shares-5,000,000 at March 31, 2014 and December 31, 2013; no shares issued or outstanding	'	'
Common stock, $0.001 par value; authorized shares - 150,000,000 at March 31, 2014 and December 31, 2013; issued and outstanding shares - 20,463,849 at March 31, 2014 and 20,434,080 at December 31, 2013	20	20
Additional paid-in capital	138,646	137,337
Deficit accumulated during the development stage	-93,489	-86,509
Total stockholders' equity	45,177	50,848
Total liabilities and stockholders' equity	$49,649	$55,583

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Condensed Consolidated Balance Sheets	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, authorized shares	150,000,000	150,000,000
Common stock, issued shares	20,463,849	20,434,080
Common stock, outstanding shares	20,463,849	20,434,080

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended		83 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Revenues:	'	'	'
Collaboration revenue	'	$209	$2,927
Grant revenue	'	263	2,084
Total revenue	'	472	5,011
Operating expenses:	'	'	'
Research and development	4,522	2,531	61,508
General and administrative	2,415	1,297	33,125
Total operating expenses	6,937	3,828	94,633
Loss from operations	-6,937	-3,356	-89,622
Other income (expense):	'	'	'
Interest income	'	1	192
Interest expense	-43	-100	-2,684
Income from 48D tax credit	'	'	1,231
Loss on extinguishment of debt	'	'	-332
Change in fair value of warrant liability	'	12	35
Change in fair value of exchangeable shares	'	-105	-2,309
Total other expense, net	-43	-192	-3,867
Net loss and comprehensive loss	($6,980)	($3,548)	($93,489)
Net loss per common share, basic and diluted (in dollars per share)	($0.34)	($2.92)	'
Weighted-average common shares used to compute basic and diluted net loss per share (in shares)	20,346,856	1,213,286	'

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended		83 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Operating activities	'	'	'
Net loss	($6,980)	($3,548)	($93,489)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Depreciation and amortization	123	157	2,631
Issuances of common stock for technology	'	'	57
Stock-based compensation	871	75	3,194
Amortization of discounts	8	18	543
Noncash interest expense	10	22	1,179
Deferred rent	-9	-59	179
Deferred revenue	'	-21	'
Stock-based milestone charges and change in fair value of exchangeable shares	375	105	3,693
Change in fair value of preferred stock warrants	'	-12	-35
Loss on disposal of assets	'	'	135
Loss on extinguishment of debt	'	'	332
Changes in operating assets and liabilities:	'	'	'
Prepaid expenses and other current assets	304	49	-1,673
Accounts payable and accrued expenses	43	-719	3,890
Net cash used in operating activities	-5,255	-3,933	-79,364
Investing activities	'	'	'
Purchase of property and equipment	-398	-7	-4,059
Proceeds from sale of property and equipment	'	'	208
Restricted cash	'	'	-122
Net cash used in investing activities	-398	-7	-3,973
Financing activities	'	'	'
Issuance of common stock, net of repurchases and issuance costs	-2	'	292
Repurchase of common stock for cash	'	'	-7
Proceeds from initial public offering, net of offering	'	'	40,480
Issuance of convertible promissory notes	'	'	32,236
Proceeds from long-term debt	'	'	6,400
Payments on long-term debt	-500	-500	-6,829
Issuance of preferred stock for cash, net of offering costs	'	'	58,646
Net cash (used in) provided by financing activities	-502	-500	131,218
Net change in cash and cash equivalents	-6,155	-4,440	47,881
Cash and cash equivalents at beginning of the period	54,036	9,087	'
Cash and cash equivalents at end of the period	$47,881	$4,647	$47,881

Organization_and_Summary_of_Si

Organization and Summary of Significant Accounting Policies	3 Months Ended
Organization and Summary of Significant Accounting Policies	Mar. 31, 2014
Organization and Summary of Significant Accounting Policies	'
Organization and Summary of Significant Accounting Policies	'
	1. Organization and Summary of Significant Accounting Policies

	Organization

	Fate Therapeutics, Inc. (the “Company”) was incorporated in the state of Delaware on April 27, 2007 and has its principal operations in San Diego, California. The Company is a clinical-stage biopharmaceutical company engaged in the discovery and development of pharmacologic modulators of adult stem cells. Based on the Company’s understanding of key biological mechanisms that guide the fate of adult stem cells, the Company has built two platforms that optimize the activity and enhance the therapeutic potential of adult stem cells: its hematopoietic stem cell, or HSC, modulation platform and its muscle satellite stem cell, or Satellite Cell, modulation platform.

	As of March 31, 2014, the Company has devoted substantially all of its efforts to product development, raising capital and building infrastructure and has not generated revenues from its planned principal operations. Accordingly, the Company is considered to be in the development stage.

	Initial Public Offering

	On October 4, 2013, the Company completed its initial public offering (the “IPO”) whereby it sold 7,666,667 shares of common stock at a public offering price of $6.00 per share. Gross proceeds from the offering were $46.0 million. After giving effect to underwriting discounts, commissions and other cash costs related to the offering, net proceeds were $40.5 million. In addition, each of the following occurred in connection with the completion of the IPO on October 4, 2013:

	· the conversion of all outstanding shares of the Company’s convertible preferred stock into 7,229,590 shares of the Company’s common stock;

	· the conversion of the Company’s $22.1 million of outstanding principal and accrued interest on its convertible notes into 3,679,401 shares of common stock, the write-off of $0.3 million of unamortized debt discount and the related cash repayment of $1.7 million of outstanding principal and accrued interest on the convertible notes;

	· the issuance of 480,763 shares of the Company’s common stock pursuant to the redemption of an aggregate of 900,000 exchangeable shares of Fate Therapeutics (Canada) Inc. (“Fate Canada”), resulting in a final fair value adjustment charge of $0.4 million on the exchangeable shares, and the resultant reclassification of the exchangeable share liability to additional paid-in capital;

	· the conversion of warrants to purchase 230,000 shares of convertible preferred stock into warrants to purchase 36,074 shares of the Company’s common stock, and the resultant reclassification of the warrant liability to additional paid-in capital; and

	· the filing of an amended and restated certificate of incorporation on October 3, 2013, authorizing 150,000,000 shares of common stock and 5,000,000 shares of undesignated preferred stock.

	Use of Estimates

	The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). The preparation of the Company’s consolidated financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The most significant estimates in the Company’s consolidated financial statements relate to the valuation of equity awards and accrued expenses. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions.

	Principles of Consolidation

	The consolidated financial statements include the accounts of the Company and its subsidiaries, Fate Canada, Fate Therapeutics Ltd., incorporated in the United Kingdom, and Destin Therapeutics Inc., incorporated in Canada. To date, the aggregate operations of these subsidiaries have not been significant and all intercompany transactions and balances have been eliminated in consolidation.

	Cash and Cash Equivalents

	Cash and cash equivalents include cash in readily available checking and savings accounts, money market accounts and money market funds. The Company considers all highly liquid investments with an original maturity of three months or less from the date of purchase to be cash equivalents.

	Unaudited Interim Financial Information

	The accompanying interim condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP and following the requirements of the United States Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position and its results of operations and comprehensive loss and its cash flows for periods presented. These statements do not include all disclosures required by GAAP and should be read in conjunction with the Company’s financial statements and accompanying notes for the fiscal year ended December 31, 2013, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed by the Company with the SEC on March 17, 2014. The results for the three months ended March 31, 2014 are not necessarily indicative of the results expected for the full fiscal year or any other interim period or any future year or period.

	Revenue Recognition

	The Company recognizes revenues when all four of the following criteria are met: (i) persuasive evidence that an agreement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectibility is reasonably assured.

	Revenue arrangements with multiple elements are analyzed to determine whether the elements can be divided into separate units of accounting or whether the elements must be accounted for as a single unit of accounting. The Company divides the elements into separate units of accounting and applies the applicable revenue recognition criteria to each of the elements, if the delivered elements have value to the customer on a stand-alone basis, if the arrangement includes a general right of return relative to the delivered elements, and if the delivery or performance of the undelivered elements is considered probable and substantially within the Company’s control.

	For transactions entered into prior to 2011, revenue was allocated to each element based on its relative fair value when objective and reliable evidence of fair value existed for all elements in an arrangement. If an element was sold on a stand-alone basis, the fair value of the element was the price charged for the element. When the Company was unable to establish fair value for delivered elements or when fair value of undelivered elements had not been established, revenue was deferred until all elements were delivered or until fair value could be objectively determined for any undelivered elements.

	Beginning in 2011, revenue is allocated to each element at the inception of the arrangement using the relative selling price method that is based on a three-tier hierarchy. The relative selling price method requires that the estimated selling price for each element be based on vendor-specific objective evidence (“VSOE”) of fair value, which represents the price charged for each element when it is sold separately or, for an element not yet being sold separately, the price established by management. When VSOE of fair value is not available, third-party evidence (“TPE”) of fair value is acceptable, or a best estimate of selling price is used if neither VSOE nor TPE is available. A best estimate of selling price should be consistent with the objective of determining the price at which the Company would transact if the element were sold regularly on a stand-alone basis and should also take into account market conditions and company-specific factors. The Company has not entered into or materially modified any multiple element arrangements subsequent to 2010.

	Revenue arrangements with multiple elements may include license fees, research and development payments, milestone payments, other contingent payments, and royalties on any product sales derived from collaborations. The Company recognizes nonrefundable license fees with stand-alone value as revenue at the time that the Company has satisfied all performance obligations, and recognizes license fees without stand-alone value as revenue in combination with any undelivered performance obligations. The Company recognizes a research and development payment as revenue over the term of the collaboration agreement as contracted amounts are earned, or reimbursable costs are incurred, under the agreement, where contracted amounts are considered to be earned in relative proportion to the performance required under the applicable agreement. The Company recognizes a milestone payment, which is contingent upon the achievement of a milestone in its entirety, as revenue in the period in which the milestone is achieved only if the milestone meets all criteria to be considered substantive. These criteria include the following: (i) the consideration being earned should be commensurate with either the Company’s performance to achieve the milestone or the enhancement of the value of the item delivered as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) the consideration being earned should relate solely to past performance; (iii) the consideration being earned should be reasonable relative to all deliverables and payment terms in the arrangement; and (iv) the milestone should be considered in its entirety and cannot be bifurcated into substantive and nonsubstantive components. Any amounts received pursuant to revenue arrangements with multiple elements prior to satisfying the Company’s revenue recognition criteria are recorded as deferred revenue on the Company’s consolidated balance sheets.

	Revenue from government grants is recorded when reimbursable expenses are incurred under the grant in accordance with the terms of the grant award. The receivable for reimbursable amounts that have not been collected is reflected in prepaid and other current assets.

	Stock-Based Compensation

	Stock-based compensation expense represents the cost of the grant date fair value of employee stock option grants recognized over the requisite service period of the awards (usually the vesting period) on a straight-line basis, net of estimated forfeitures. For stock option grants for which vesting is subject to performance-based milestones, the expense is recorded over the remaining service period after the point when the achievement of the milestone is probable or the performance condition has been achieved. For stock option grants for which vesting is subject to both performance-based milestones and market conditions, expense is recorded over the derived service period after the point when the achievement of the performance-based milestone is probable or the performance condition has been achieved. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model, with the exception of option grants for which vesting is subject to both performance-based milestones and market conditions, which are valued using a lattice based model.

	The Company accounts for stock options and restricted stock awards to non-employees using the fair value approach. Stock options and restricted stock awards to non-employees are subject to periodic revaluation over their vesting terms. For stock option grants for which vesting is subject to performance-based milestones, the expense is recorded over the remaining service period after the point when the performance condition has been achieved.

	Net Loss Per Common Share

	Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, without consideration for common stock equivalents. Excluded from the weighted-average number of shares outstanding are shares which have been issued upon the early exercise of stock options and are subject to future vesting and unvested restricted stock totaling 88,043 shares and 120,822 shares for the three months ended March 31, 2014 and 2013, respectively. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock method. Dilutive common stock equivalents for the periods presented include convertible preferred stock, warrants for the purchase of convertible preferred stock and common stock, exchangeable shares and common stock options outstanding under the Company’s stock option plan. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position.

	For the three months ended March 31, 2014, the Company realized a net loss of $7.0 million. Shares of potentially dilutive securities totaled approximately 2.5 million for the three months ended March 31, 2014, including options to purchase approximately 2.2 million shares of common stock with an exercise price less than the average quarterly market price of the underlying common shares.

For the three months ended March 31, 2013, the Company realized a net loss of $3.5 million. Shares of potentially dilutive securities totaled approximately 9.2 million for the three months ended March 31, 2013.

Asset_Acquisition_of_Verio_The

Asset Acquisition of Verio Therapeutics Inc.	3 Months Ended
	Mar. 31, 2014
Asset Acquisition of Verio Therapeutics Inc.	'
Asset Acquisition of Verio Therapeutics Inc.	'
	2. Asset Acquisition of Verio Therapeutics Inc.

	On April 7, 2010, the Company acquired Verio Therapeutics Inc. (“Verio”), a development stage company headquartered in Ottawa, Ontario to gain access to its exclusively licensed intellectual property.

	In connection with the asset acquisition of Verio, the stockholders of Verio received 900,000 non-voting shares of Fate Canada (the “Exchangeable Shares”) that were initially exchangeable into 138,462 shares of the Company’s common stock and, subject to the validation of certain scientific data and the achievement of certain preclinical, clinical, commercial and financial milestones, were exchangeable for up to 884,605 shares of the Company’s common stock.

	As a result of the Company’s IPO on October 4, 2013, 480,763 shares of the Company’s common stock were issued during the fourth quarter of 2013 pursuant to the redemption of the Exchangeable Shares. The total number of shares of the Company’s common stock issued upon the exchange of the Exchangeable Shares as a result of the IPO increased from 138,462 shares of the Company’s common stock to a total of 480,763 shares of the Company’s common stock based upon the achievement of certain contractual milestones.

	During the three months ended March 31, 2014, based on the assessed achievement of certain pre-clinical milestones, 38,462 shares of the Company’s common stock were deemed earned, but not issued, resulting in a $0.4 million charge to research and development expense.

	In addition to the 38,462 shares of the Company’s common stock deemed earned but not issued during the three months ended March 31, 2014, the Company may issue an additional 365,380 shares of the Company’s common stock based on the achievement of additional contractual milestones as follows: (i) 38,461 shares for the achievement of certain pre-clinical milestones, (ii) 211,538 shares for the achievement of certain clinical milestones and (iii) 115,381 shares for the achievement of certain commercialization milestones, such that the maximum aggregate number of shares of the Company’s common stock that may be issued related to the Verio acquisition is 884,605.

	At the date of the achievement of a milestone, the fair value of the additional shares is charged to research and development expense and recorded in additional paid-in capital. Prior to the Company’s IPO, at the end of each reporting period, any changes in the fair value of Exchangeable Shares resulting from changes in the fair value of the underlying common stock of the Company were recorded as a component of other income (expense). As of the IPO date, the exchangeable share liability was reclassified into additional paid-in capital.

	The changes in the number of shares of the Company’s common stock issuable upon the achievement of stock-based milestones and the initial fair value of the shares are summarized as follows (in thousands, except share and per share amounts):

		Common	Fair Value Per		Initial Fair
		Stock	Share of		Value of
			Underlying		Common Stock
			Common Stock

	April 2010	138,462	$	1.69	$	234
	March 2011	92,308	1.69		156
	May 2011	115,380	1.69		195
	April 2012	57,691	1.37		78
	July 2013	76,922	4.49		346
	March 2014	38,462	9.74		375
		519,225			$	1,384

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2014
Fair Value Measurements	'
Fair Value Measurements	'
	3. Fair Value Measurements

	The carrying amounts of accounts payable and accrued liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. Based on the borrowing rates currently available to the Company for loans with similar terms, which is considered a Level 2 input as described below, the Company believes that the fair value of long-term debt approximates its carrying value.

	The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

	Level 1: Observable inputs such as quoted prices in active markets;

	Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

	Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

	Financial assets measured at fair value on a recurring basis consist of the Company’s cash equivalents. As of March 31, 2014 and December 31, 2013, the carrying amount of cash equivalents was $46.3 million and $52.3 million, respectively, which approximates fair value and was determined based upon Level 1 inputs. Cash equivalents primarily consisted of money market funds. As of March 31, 2014 and December 31, 2013, the Company did not hold any Level 2 or Level 3 financial assets that are recorded at fair value on a recurring basis.

	Financial liabilities that were measured at fair value on a recurring basis included the preferred stock warrant liability and exchangeable shares for the periods the liabilities were outstanding. None of the Company’s non-financial assets or liabilities is recorded at fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented.

	As of March 31, 2014 and December 31, 2013, the Company had no liabilities measured at fair value on a recurring basis.

LongTerm_Debt_Commitments_and_

Long-Term Debt, Commitments and Contingencies	3 Months Ended
	Mar. 31, 2014
Long-Term Debt, Commitments and Contingencies	'
Long-Term Debt, Commitments and Contingencies	'
	4. Long-Term Debt, Commitments and Contingencies

	Long-Term Debt

	Long-term debt and unamortized discount balances (excluding convertible debt) are as follows (in thousands):

		March 31, 2014			December
					31, 2013

	Long-term debt	$	1,250		$	1,750
	Less current portion of long-term debt	(1,250		)	(1,750		)
	Long-term debt, net of current portion	$	—		$	—

	Current portion of long-term debt	$	1,250		$	1,750
	Current portion of debt discount	(10		)	(18		)
	Current portion of long-term debt, net	$	1,240		$	1,732

	Facility Lease

	The Company leases certain office and laboratory space from a stockholder of the Company under a non-cancelable operating lease. The lease expires in June 2016. The lease is subject to additional charges for common area maintenance and other costs. In connection with the lease, the Company entered into a cash-collateralized irrevocable standby letter of credit in the amount of $0.1 million. As of March 31, 2014, future minimum payments under the operating lease are $2.1 million.

Stockholders_Equity

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2014
Stockholders' Equity	'
Stockholders' Equity	'
	5. Stockholders’ Equity

	Stock option activity under all equity and stock option plans is summarized as follows:

		Number of		Weighted-
		Options		Average Price

	Balance at December 31, 2013	1,726,991		$	2.3
	Granted	743,376		6.73
	Canceled	(47,677	)	5.13
	Exercised	(29,769	)	1.89
	Balance at March 31, 2014	2,392,921		$	3.63

	The allocation of stock-based compensation for all options and restricted stock awards is as follows (in thousands):

		Three Months Ended
		March 31,
		2014			2013

	Research and development	$	565		$	38
	General and administrative	306			37
		$	871		$	75

	As of March 31, 2014, the outstanding options included 161,689 performance-based options for which the achievement of the performance-based vesting provisions was determined not to be probable. The aggregate grant date fair value of these unvested options at March 31, 2014 was $0.7 million.

	As of March 31, 2014, the unrecognized compensation cost related to outstanding options (excluding those with performance-based conditions) was $5.0 million and is expected to be recognized as expense over approximately 3.3 years.

	The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants were as follows:

		Three Months Ended
		March 31,
		2014		2013

	Risk-free interest rate	2	%	1.1	%
	Expected volatility	94.5	%	89.7	%
	Expected term (in years)	6.07		6.06
	Expected dividend yield	0	%	0	%

	The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the non-employee stock option grants were as follows:

		Three Months Ended
		March 31,
		2014		2013

	Risk-free interest rate	2.2	%	1.3	%
	Expected volatility	94.5	%	89.7	%
	Remaining contractual term (in years)	6.7		8.29
	Expected dividend yield	0	%	0	%

Organization_and_Summary_of_Si1

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
Organization and Summary of Significant Accounting Policies	'
Initial Public Offering	'
	Initial Public Offering

	On October 4, 2013, the Company completed its initial public offering (the “IPO”) whereby it sold 7,666,667 shares of common stock at a public offering price of $6.00 per share. Gross proceeds from the offering were $46.0 million. After giving effect to underwriting discounts, commissions and other cash costs related to the offering, net proceeds were $40.5 million. In addition, each of the following occurred in connection with the completion of the IPO on October 4, 2013:

	· the conversion of all outstanding shares of the Company’s convertible preferred stock into 7,229,590 shares of the Company’s common stock;

	· the conversion of the Company’s $22.1 million of outstanding principal and accrued interest on its convertible notes into 3,679,401 shares of common stock, the write-off of $0.3 million of unamortized debt discount and the related cash repayment of $1.7 million of outstanding principal and accrued interest on the convertible notes;

	· the issuance of 480,763 shares of the Company’s common stock pursuant to the redemption of an aggregate of 900,000 exchangeable shares of Fate Therapeutics (Canada) Inc. (“Fate Canada”), resulting in a final fair value adjustment charge of $0.4 million on the exchangeable shares, and the resultant reclassification of the exchangeable share liability to additional paid-in capital;

	· the conversion of warrants to purchase 230,000 shares of convertible preferred stock into warrants to purchase 36,074 shares of the Company’s common stock, and the resultant reclassification of the warrant liability to additional paid-in capital; and

	· the filing of an amended and restated certificate of incorporation on October 3, 2013, authorizing 150,000,000 shares of common stock and 5,000,000 shares of undesignated preferred stock.
Use of Estimates	'
	Use of Estimates

	The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). The preparation of the Company’s consolidated financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The most significant estimates in the Company’s consolidated financial statements relate to the valuation of equity awards and accrued expenses. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions.
Principles of Consolidation	'
	Principles of Consolidation

	The consolidated financial statements include the accounts of the Company and its subsidiaries, Fate Canada, Fate Therapeutics Ltd., incorporated in the United Kingdom, and Destin Therapeutics Inc., incorporated in Canada. To date, the aggregate operations of these subsidiaries have not been significant and all intercompany transactions and balances have been eliminated in consolidation.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents

	Cash and cash equivalents include cash in readily available checking and savings accounts, money market accounts and money market funds. The Company considers all highly liquid investments with an original maturity of three months or less from the date of purchase to be cash equivalents.
Revenue Recognition	'
	Revenue Recognition

	The Company recognizes revenues when all four of the following criteria are met: (i) persuasive evidence that an agreement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectibility is reasonably assured.

	Revenue arrangements with multiple elements are analyzed to determine whether the elements can be divided into separate units of accounting or whether the elements must be accounted for as a single unit of accounting. The Company divides the elements into separate units of accounting and applies the applicable revenue recognition criteria to each of the elements, if the delivered elements have value to the customer on a stand-alone basis, if the arrangement includes a general right of return relative to the delivered elements, and if the delivery or performance of the undelivered elements is considered probable and substantially within the Company’s control.

	For transactions entered into prior to 2011, revenue was allocated to each element based on its relative fair value when objective and reliable evidence of fair value existed for all elements in an arrangement. If an element was sold on a stand-alone basis, the fair value of the element was the price charged for the element. When the Company was unable to establish fair value for delivered elements or when fair value of undelivered elements had not been established, revenue was deferred until all elements were delivered or until fair value could be objectively determined for any undelivered elements.

	Beginning in 2011, revenue is allocated to each element at the inception of the arrangement using the relative selling price method that is based on a three-tier hierarchy. The relative selling price method requires that the estimated selling price for each element be based on vendor-specific objective evidence (“VSOE”) of fair value, which represents the price charged for each element when it is sold separately or, for an element not yet being sold separately, the price established by management. When VSOE of fair value is not available, third-party evidence (“TPE”) of fair value is acceptable, or a best estimate of selling price is used if neither VSOE nor TPE is available. A best estimate of selling price should be consistent with the objective of determining the price at which the Company would transact if the element were sold regularly on a stand-alone basis and should also take into account market conditions and company-specific factors. The Company has not entered into or materially modified any multiple element arrangements subsequent to 2010.

	Revenue arrangements with multiple elements may include license fees, research and development payments, milestone payments, other contingent payments, and royalties on any product sales derived from collaborations. The Company recognizes nonrefundable license fees with stand-alone value as revenue at the time that the Company has satisfied all performance obligations, and recognizes license fees without stand-alone value as revenue in combination with any undelivered performance obligations. The Company recognizes a research and development payment as revenue over the term of the collaboration agreement as contracted amounts are earned, or reimbursable costs are incurred, under the agreement, where contracted amounts are considered to be earned in relative proportion to the performance required under the applicable agreement. The Company recognizes a milestone payment, which is contingent upon the achievement of a milestone in its entirety, as revenue in the period in which the milestone is achieved only if the milestone meets all criteria to be considered substantive. These criteria include the following: (i) the consideration being earned should be commensurate with either the Company’s performance to achieve the milestone or the enhancement of the value of the item delivered as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) the consideration being earned should relate solely to past performance; (iii) the consideration being earned should be reasonable relative to all deliverables and payment terms in the arrangement; and (iv) the milestone should be considered in its entirety and cannot be bifurcated into substantive and nonsubstantive components. Any amounts received pursuant to revenue arrangements with multiple elements prior to satisfying the Company’s revenue recognition criteria are recorded as deferred revenue on the Company’s consolidated balance sheets.

	Revenue from government grants is recorded when reimbursable expenses are incurred under the grant in accordance with the terms of the grant award. The receivable for reimbursable amounts that have not been collected is reflected in prepaid and other current assets.
Stock-Based Compensation	'
	Stock-Based Compensation

	Stock-based compensation expense represents the cost of the grant date fair value of employee stock option grants recognized over the requisite service period of the awards (usually the vesting period) on a straight-line basis, net of estimated forfeitures. For stock option grants for which vesting is subject to performance-based milestones, the expense is recorded over the remaining service period after the point when the achievement of the milestone is probable or the performance condition has been achieved. For stock option grants for which vesting is subject to both performance-based milestones and market conditions, expense is recorded over the derived service period after the point when the achievement of the performance-based milestone is probable or the performance condition has been achieved. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model, with the exception of option grants for which vesting is subject to both performance-based milestones and market conditions, which are valued using a lattice based model.

	The Company accounts for stock options and restricted stock awards to non-employees using the fair value approach. Stock options and restricted stock awards to non-employees are subject to periodic revaluation over their vesting terms. For stock option grants for which vesting is subject to performance-based milestones, the expense is recorded over the remaining service period after the point when the performance condition has been achieved.
Net Loss Per Common Share	'
	Net Loss Per Common Share

	Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, without consideration for common stock equivalents. Excluded from the weighted-average number of shares outstanding are shares which have been issued upon the early exercise of stock options and are subject to future vesting and unvested restricted stock totaling 88,043 shares and 120,822 shares for the three months ended March 31, 2014 and 2013, respectively. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock method. Dilutive common stock equivalents for the periods presented include convertible preferred stock, warrants for the purchase of convertible preferred stock and common stock, exchangeable shares and common stock options outstanding under the Company’s stock option plan. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position.

	For the three months ended March 31, 2014, the Company realized a net loss of $7.0 million. Shares of potentially dilutive securities totaled approximately 2.5 million for the three months ended March 31, 2014, including options to purchase approximately 2.2 million shares of common stock with an exercise price less than the average quarterly market price of the underlying common shares.

	For the three months ended March 31, 2013, the Company realized a net loss of $3.5 million. Shares of potentially dilutive securities totaled approximately 9.2 million for the three months ended March 31, 2013.

Asset_Acquisition_of_Verio_The1

Asset Acquisition of Verio Therapeutics Inc. (Tables)	3 Months Ended
	Mar. 31, 2014
Asset Acquisition of Verio Therapeutics Inc.	'
Asset Acquisition of Verio Therapeutics Inc.	'
	The changes in the number of shares of the Company’s common stock issuable upon the achievement of stock-based milestones and the initial fair value of the shares are summarized as follows (in thousands, except share and per share amounts):

		Common	Fair Value Per		Initial Fair
		Stock	Share of		Value of
			Underlying		Common Stock
			Common Stock

	April 2010	138,462	$	1.69	$	234
	March 2011	92,308	1.69		156
	May 2011	115,380	1.69		195
	April 2012	57,691	1.37		78
	July 2013	76,922	4.49		346
	March 2014	38,462	9.74		375
		519,225			$	1,384

LongTerm_Debt_Commitments_and_1

Long-Term Debt, Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2014
Long-Term Debt, Commitments and Contingencies	'
Schedule of long-term debt and unamortized discount balances (excluding convertible debt)	'
	Long-term debt and unamortized discount balances (excluding convertible debt) are as follows (in thousands):

		March 31, 2014			December
					31, 2013

	Long-term debt	$	1,250		$	1,750
	Less current portion of long-term debt	(1,250		)	(1,750		)
	Long-term debt, net of current portion	$	—		$	—

	Current portion of long-term debt	$	1,250		$	1,750
	Current portion of debt discount	(10		)	(18		)
	Current portion of long-term debt, net	$	1,240		$	1,732

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	3 Months Ended
Stockholders' Equity (Tables)	Mar. 31, 2014
Stockholders' Equity	'
Summary of stock option activity under the Plan	'

		Number of		Weighted-
		Options		Average Price

	Balance at December 31, 2013	1,726,991		$	2.3
	Granted	743,376		6.73
	Canceled	(47,677	)	5.13
	Exercised	(29,769	)	1.89
	Balance at March 31, 2014	2,392,921		$	3.63
Schedule of allocation of stock-based compensation for all options and restricted stock awards	'
	The allocation of stock-based compensation for all options and restricted stock awards is as follows (in thousands):

		Three Months Ended
		March 31,
		2014			2013

	Research and development	$	565		$	38
	General and administrative	306			37
		$	871		$	75
Employee stock option	'
Stockholders' Equity	'
Schedule of weighted-average assumptions used to determine the fair value of stock option grants	'

		Three Months Ended
		March 31,
		2014		2013

	Risk-free interest rate	2	%	1.1	%
	Expected volatility	94.5	%	89.7	%
	Expected term (in years)	6.07		6.06
	Expected dividend yield	0	%	0	%
Non-employee stock option	'
Stockholders' Equity	'
Schedule of weighted-average assumptions used to determine the fair value of stock option grants	'

		Three Months Ended
		March 31,
		2014		2013

	Risk-free interest rate	2.2	%	1.3	%
	Expected volatility	94.5	%	89.7	%
	Remaining contractual term (in years)	6.7		8.29
	Expected dividend yield	0	%	0	%

Organization_and_Summary_of_Si2

Organization and Summary of Significant Accounting Policies (Details) (USD $)	0 Months Ended	3 Months Ended		83 Months Ended
	Oct. 04, 2013	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013
	Oct. 04, 2013	item	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013
Organization and Summary of Significant Accounting Policies	'	'	'	'	'
Number of platforms	'	2	'	'	'
Initial Public Offering	'	'	'	'	'
Shares sold in initial public offering	7,666,667	'	'	'	'
Public offering price (in dollars per share)	$6	'	'	'	'
Gross proceeds from initial public offering	$46,000,000	'	'	'	'
Net proceeds from initial public offering	40,480,000	'	'	40,480,000	'
Conversion convertible preferred stock into common stock	7,229,590	'	'	'	'
Principal amount of convertible debt converted	22,100,000	'	'	'	'
Number of shares of common stock issued upon conversion of debt	3,679,401	'	'	'	'
Write-off of unamortized debt discount	300,000	'	'	'	'
Repayment of outstanding principal and unpaid accrued interest in cash	1,700,000	'	'	'	'
Common stock issuable upon redemption of exchangeable shares	480,763	'	'	'	'
Exchangeable shares of Fate Canada for redemption	900,000	'	'	'	'
Fair value adjustment charge on the exchangeable shares	$400,000	'	$105,000	$2,309,000	'
Warrants to purchase shares of convertible preferred stock which are converted	230,000	'	'	'	'
Warrants to purchase shares of common stock issued on conversion	36,074	'	'	'	'
Common stock authorized (in shares)	150,000,000	150,000,000	'	150,000,000	150,000,000
Preferred stock authorized (in shares)	5,000,000	5,000,000	'	5,000,000	5,000,000

Organization_and_Summary_of_Si3

Organization and Summary of Significant Accounting Policies (Details 2) (USD $)	3 Months Ended		83 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Revenue recognition	'	'	'
Four criteria needed for Company to recognize revenue	'(i) persuasive evidence that an agreement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectibility is reasonably assured	'	'
Shares excluded from weighted average number of shares attributable to share based payments	88,043	120,822	'
Net loss	($6,980)	($3,548)	($93,489)
Potentially dilutive securities (in shares)	2,500,000	9,200,000	'
Options to purchase shares of common stock included in potentially dilutive securities (in shares)	2,200,000	'	'

Asset_Acquisition_of_Verio_The2

Asset Acquisition of Verio Therapeutics Inc. (Details) (USD $)

0 Months Ended

3 Months Ended

83 Months Ended

3 Months Ended

0 Months Ended

3 Months Ended

In Thousands, except Share data, unless otherwise specified

Oct. 04, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Apr. 07, 2010

Mar. 31, 2014

Maximum

Verio

Maximum

Apr-10

Mar-11

May-11

Apr-12

Jul-13

Mar-14

Acquisition

Common Stock issued

884,605

900,000

Shares issuable on exchange of Common Stock

138,462

519,225

884,605

138,462

92,308

115,380

57,691

76,922

38,462

Common stock issued pursuant to the redemption of the exchangeable shares

480,763

Deemed earned common stock yet to be issued (in shares)

38,462

Research and development expense

$4,522

$2,531

$61,508

$400

Potential increase in shares issuable on exchange of Exchangeable Shares based on achievement of additional milestones

365,380

Potential increase in shares issuable on achievement of certain preclinical milestones

38,461

Potential increase in shares issuable on achievement of certain clinical milestones

211,538

Potential increase in shares issuable on achievement of certain commercialization milestones

115,381

Fair value per share of underlying common stock (in dollars per share)

$1.69

$1.37

$4.49

$9.74

Initial Fair Value of Common Stock (in dollars)

$1,384

$234

$156

$195

$78

$346

$375

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair value measurements	'	'
Transfer of assets from level 1 to level 2	$0	'
Transfer of assets from level 2 to level 1	0	'
Transfer of liabilities from level 1 to level 2	0	'
Transfer of liabilities from level 2 to level 1	0	'
Recurring	'	'
Fair value measurements	'	'
Liabilities	0	0
Non-recurring	'	'
Fair value measurements	'	'
Non-financial assets	0	'
Non-financial liabilities	0	'
Carrying amount \| Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'
Fair value measurements	'	'
Cash equivalents	$46.30	$52.30

LongTerm_Debt_Commitments_and_2

Long-Term Debt, Commitments and Contingencies (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Long-term debt	'	'
Long-term debt	$1,250,000	$1,750,000
Less current portion of long-term debt	-1,250,000	-1,750,000
Current portion of debt discount	-10,000	-18,000
Current portion of long-term debt, net	1,240,000	1,732,000
Cash-collateralized irrevocable standby letter of credit	100,000	'
Future minimum payments under the operating lease	$2,100,000	'

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)

3 Months Ended

0 Months Ended

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Research and development

General and administrative

Stock option

Employee stock option

Non-employee stock option

Performance-based

Number of Options

Balance at the beginning of the period (in shares)

1,726,991

Granted (in shares)

743,376

Canceled (in shares)

-47,677

Exercised (in shares)

-29,769

Balance at the end of the period (in shares)

2,392,921

161,689

Weighted-Average Price

Balance at the beginning of the period (in dollars per share)

$2.30

Granted (in dollars per share)

$6.73

Canceled (in dollars per share)

$5.13

Exercised (in dollars per share)

$1.89

Balance at the end of the period (in dollars per share)

$3.63

Total stock-based compensation expense

$871,000

$75,000

$565,000

$38,000

$306,000

$37,000

Aggregate grant date fair value

700,000

Unrecognized compensation cost related to outstanding options

$5,000,000

Expected recognition period of unrecognized compensation cost

'3 years 3 months 18 days

Weighted-average assumptions to determine fair value of stock options

Risk-free interest rate (as a percent)

2.00%

1.10%

2.20%

1.30%

Expected volatility (as a percent)

94.50%

89.70%

94.50%

89.70%

Expected term

'6 years 25 days

'6 years 22 days

Remaining contractual term

'6 years 8 months 12 days

'8 years 3 months 14 days

Expected dividend yield (as a percent)

0.00%