NVN Liquidation (NOVNQ) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 10, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	NOVN
Entity Registrant Name	NOVAN, INC.
Entity Central Index Key	1,467,154
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		15,938,659

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 55,664	$ 45,688
Deferred offering costs		309
Prepaid expenses and other current assets	457	936
Total current assets	56,121	46,933
Restricted cash	539	539
Intangible assets	75
Property and equipment, net	13,698	2,344
Total assets	70,433	49,816
Current liabilities:
Accounts payable	5,024	1,626
Accrued compensation	1,896	1,047
Accrued outside research and development services	9,877	1,088
Accrued legal and professional fees	1,038	512
Other accrued expenses	1,388	534
Deferred rent		25
Capital lease obligation, current portion	10	6
Current liabilities of discontinued operations		257
Total current liabilities	19,233	5,095
Capital lease obligation, net of current portion	34	4
Facility financing obligation	7,752
Total liabilities	27,019	5,099
Commitments and contingencies (Notes 3, 4 and 6)
Stockholders’ equity (deficit):
Preferred stock value
Common stock value	2	0
Additional paid-in-capital	153,539	3,253
Treasury stock, at cost	(155)
Accumulated deficit	(109,972)	(63,334)
Total stockholders’ equity (deficit)	43,414	(60,081)
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)	$ 70,433	49,816
Mezzanine B Convertible Preferred Stock
LIABILITIES CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock value		32,840
Mezzanine A Convertible Preferred Stock
LIABILITIES CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock value		50,420
Series 4 Convertible Preferred Stock
LIABILITIES CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock value		11,000
Series 3 Convertible Preferred Stock
LIABILITIES CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock value		7,538
Series 2 Convertible Preferred Stock
LIABILITIES CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock value		2,000
Series 1 Convertible Preferred Stock
LIABILITIES CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock value		1,000
Non-voting Common Stock
Stockholders’ equity (deficit):
Common stock value		$ 0

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	22,000,000
Common stock, shares outstanding	15,938,659	2,426,890
Treasury stock, shares	9,500	0
Mezzanine B Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares designated	0	5,000,000
Convertible preferred stock, shares issued	0	1,242,069
Convertible preferred stock, shares outstanding	0	1,242,069
Convertible preferred stock value for liquidation preference		$ 32,840
Mezzanine A Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares designated	0	3,677,622
Convertible preferred stock, shares issued	0	3,677,622
Convertible preferred stock, shares outstanding	0	3,677,622
Convertible preferred stock value for liquidation preference		$ 50,420
Series 4 Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares designated	0	1,833,333
Convertible preferred stock, shares issued	0	1,833,333
Convertible preferred stock, shares outstanding	0	1,833,333
Convertible preferred stock value for liquidation preference		$ 11,000
Series 3 Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares designated	0	1,349,382
Convertible preferred stock, shares issued	0	1,322,570
Convertible preferred stock, shares outstanding	0	1,322,570
Convertible preferred stock value for liquidation preference		$ 7,538
Series 2 Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares designated	0	1,226,242
Convertible preferred stock, shares issued	0	1,226,242
Convertible preferred stock, shares outstanding	0	1,226,242
Convertible preferred stock value for liquidation preference		$ 2,000
Series 1 Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares designated	0	1,229,862
Convertible preferred stock, shares issued	0	1,229,862
Convertible preferred stock, shares outstanding	0	1,229,862
Convertible preferred stock value for liquidation preference		$ 1,000
Voting Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	22,000,000
Common stock, shares issued	15,948,159	2,235,838
Common stock, shares outstanding	15,938,659	2,235,838
Non-voting Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	0	229,263
Common stock, shares issued	0	191,052
Common stock, shares outstanding	0	191,052

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating expenses:
Research and development	$ 14,988	$ 3,177	$ 37,361	$ 9,875
General and administrative	2,493	2,449	9,327	5,858
Total operating expenses	17,481	5,626	46,688	15,733
Operating loss	(17,481)	(5,626)	(46,688)	(15,733)
Other income, net	7	30	50	30
Loss from continuing operations	(17,474)	(5,596)	(46,638)	(15,703)
Loss from discontinued operations		(480)		(1,191)
Net loss and comprehensive loss	$ (17,474)	$ (6,076)	$ (46,638)	$ (16,894)
Loss per share, basic and diluted:
Continuing operations	$ (5.76)	$ (2.45)	$ (17.64)	$ (6.96)
Discontinued operations		(0.21)		(0.53)
Net loss per share, basic and diluted	$ (5.76)	$ (2.66)	$ (17.64)	$ (7.49)
Weighted-average common shares outstanding, basic and diluted	3,033,967	2,281,001	2,644,116	2,256,536

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flow from operating activities:
Net loss	$ (46,638)	$ (16,894)
Loss from discontinued operations		1,191
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	575	452
Share-based compensation	861	710
Gain on disposal of property and equipment	(2)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	479	(654)
Accounts payable	2,182	210
Accrued compensation	849	179
Accrued outside research and development services	8,789	418
Accrued legal and professional fees	3	61
Accrued expenses	561	957
Other	(25)	(22)
Net cash used in continuing operating activities	(32,366)	(13,392)
Net cash used in discontinued operating activities	(257)	(708)
Net cash used in operating activities	(32,623)	(14,100)
Cash flow from investing activities:
Purchases of property and equipment	(3,410)	(1,099)
Purchase of intangible asset	(75)
Net cash used in continuing investing activities	(3,485)	(1,099)
Net cash used in discontinued investing activities		(84)
Net cash used in investing activities	(3,485)	(1,183)
Cash flow from financing activities:
Proceeds from issuance of preferred stock		34,259
Proceeds from initial public offering, net of underwriting fees and commissions	47,785
Payments related to public offering costs	(1,480)
Proceeds from exercise of stock options	34	17
Purchase of treasury stock	(155)
Payments on capital lease obligation	(5)	(4)
Payments on facility financing obligation	(95)
Net cash provided by financing activities	46,084	34,272
Net increase in cash and cash equivalents	9,976	18,989
Cash and cash equivalents as of beginning of period	45,688	7,419
Cash and cash equivalents as of end of period	55,664	26,408
Supplemental disclosure of cash flow information:
Cash paid for interest	260	1
Supplemental disclosure of non-cash investing and financing activities:
Purchases of equipment with accounts payable and accrued expenses	723	$ 32
Equipment acquired through capital lease	39
Non-cash addition to construction in progress related to build-to-suit lease and facility financing obligation	7,847
Non-cash addition to deferred offering costs	1,710
Conversion of convertible preferred stock and non-voting common stock to voting common stock	104,798
Deferred offering costs reclassified to additional paid-in capital	$ 3,190

Organization and Significant Ac

Organization and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	Note 1: Organization and Significant Accounting Policies Business Description and Basis of Presentation Novan, Inc. (“Novan” and together with its subsidiaries, the “Company”), is a North Carolina based clinical-stage drug development company focused on the development and commercialization of innovative nitric oxide-based therapies in dermatology. Novan was incorporated in January 2006 under the state laws of Delaware and its subsidiaries were organized in May 2015 under the state laws of North Carolina. In December 2015, KNOW Bio, LLC (“KNOW Bio”) was organized under the state laws of North Carolina. On December 30, 2015, the Company completed the distribution of 100% of the outstanding member interests of KNOW Bio to Novan’s stockholders (the “Distribution”), pursuant to which KNOW Bio became an independent privately held company. Beginning in the fourth quarter of 2015, KNOW Bio’s financial results for periods prior to the Distribution have been reflected in the Company’s consolidated statements of operations, retrospectively, as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations in the December 31, 2015 consolidated balance sheet and liabilities outstanding as of December 31, 2015 not assumed by KNOW Bio as part of the distribution are classified as discontinued operations. See Note 2—Discontinued Operations for additional information. The Company’s consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As of September 30, 2016, the Company had an accumulated deficit of $109,972. The Company has reported a net loss in all fiscal periods since inception and expects to incur substantial losses in the future to conduct research and development and pre-commercialization activities. These factors raise substantial doubt about its ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. The Company needs to raise additional funds through equity or debt financings or generate revenues from collaborative partners prior to the commercialization of the Company’s product candidates. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s results of operations and financial condition. Additionally, there is no assurance that the Company can achieve its development milestones or that its intellectual property rights will not be challenged. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Reverse stock-split and amendments to certificate of incorporation On September 7, 2016, following approval by the Company’s Board of Directors and the Company’s stockholders, the Company amended its certificate of incorporation effecting a 1-for-1.2 reverse stock split of its voting and non-voting common stock and a proportional adjustment to the existing conversion ratio of each series of its convertible preferred stock. As a result of the reverse stock split, the Company also adjusted the share amounts under its employee incentive plan. All disclosure of common shares and per common share data in the accompanying financial statements and related notes have been adjusted to reflect the reverse stock split and adjustment of preferred stock conversion ratios for all periods presented. The reverse stock split did not cause an adjustment to the par value or the authorized shares of the voting and non-voting common stock or the convertible preferred stock. However, subsequent to the reverse stock split and in conjunction with the closing of the Company’s initial public offering, (“IPO”), the certificate was further amended to provide for an adjustment to the number of authorized shares to 210,000,000 shares of capital stock, of which 200,000,000 shares have been designated as $0.0001 par value common stock, and 10,000,000 shares have been designated as $0.0001 par value preferred stock. Initial public offering On September 26, 2016, the Company completed the IPO of its common stock. The Company sold an aggregate of 4,715,000 shares of common stock under the registration statement on Form S-1 declared effective by the Securities and Exchange Commission (“SEC”) on September 20, 2016, at a public offering price of $11.00 per share for aggregate gross proceeds of $51,865. Net proceeds were $44,595, after deducting underwriting discounts and commissions of $ Basis of Consolidation The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Unaudited Interim Condensed Consolidated Financial Statements The accompanying interim condensed consolidated financial statements and the related footnote disclosures are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP on the same basis as the audited consolidated financial statements and in the opinion of management, reflect all adjustments of a normal, recurring nature that are necessary for the fair statement of the Company’s financial position as of September 30, 2016 and its results of operations and cash flows for the nine months ended September 30, 2016 and 2015. The results for the nine months ended September 30, 2016 are not necessarily indicative of the results expected for the full fiscal year or any future period. These interim financial statements should be read in conjunction with the financial statements and notes set forth in the Company’s registration statement on Form S-1 under the Securities Act of 1933, as amended, filed with and declared effective by the SEC on September 20, 2016. Leases The Company leases office space and certain equipment under non-cancelable lease agreements. The leases are reviewed for classification as operating or capital leases. For operating leases, rent is recognized on a straight-line basis over the lease period. For capital leases, the Company records the leased asset with a corresponding liability. Payments are recorded as reductions to the liability with an appropriate interest charge recorded based on the then-outstanding remaining liability. The Company considers the nature of the renovations and the Company’s involvement during the construction period of newly leased office space to determine if it is considered to be the owner of the construction project during the construction period. If the Company determines that it is the owner of the construction project, it is required to capitalize the fair value of the building as well as the construction costs incurred, including capitalized interest, on its consolidated balance sheet along with a corresponding financing liability (“build-to-suit accounting”). Upon completion of the construction of the facility under a build-to-suit lease, the Company assesses whether the circumstances qualify for sales recognition under the sale-leaseback accounting guidance. If the lease meets the sale-leaseback criteria, the Company will remove the asset and related financial obligation from the balance sheet and evaluate the lease for treatment as a capital or operating lease. If upon completion of construction, the project does not meet the sale-leaseback criteria, the leased property will be treated as an asset financing for financial reporting purposes. Deferred Offering Costs Deferred offering costs, consisting of legal, accounting, filing and other fees directly related to the offering, are offset against proceeds from each offering. Offering costs incurred prior to the completion of an offering are initially capitalized as current assets, evaluated each period for likelihood of completion and subsequently reclassified to additional paid-in capital upon completion of the offering. Share-Based Compensation Employees. The Company applies the fair value method of accounting for share-based compensation, which requires all such compensation to employees, including the grant of employee stock options, to be recognized in the statement of operations based on its fair value at the measurement date (generally the grant date). The expense associated with share-based compensation is recognized on a straight-line basis over the service period of each award. Share-based awards granted to non-employee directors as compensation for serving on the Company’s Board of Directors are accounted for in the same manner as employee share-based compensation awards. Non-employees. For share-based compensation granted to non-employees, the measurement date is generally considered to be the date when all services have been rendered or the date that options are fully vested. The fair value of each option grant is estimated using a Black-Scholes option-pricing model on the grant date using expected volatility, risk-free interest rate, expected life of options and fair value per share assumptions. Due to limited historical data, the Company estimates stock price volatility based on the actual volatility of comparable publicly traded companies over the expected life of the option. In evaluating similarity, the Company considered factors such as industry, stage of life cycle, financial leverage, size and risk profile. The Company does not have sufficient history of exercise of stock options to estimate the expected term of employee stock options and thus continues to calculate expected life based on the mid-point between the vesting date and the contractual term, which is in accordance with the simplified method. The expected term for share-based compensation granted to non-employees is the contractual life. The risk-free rate is based on the U.S. Treasury yield curve during the expected life of the option. For option grants occurring prior to the Company’s IPO in September 2016, the fair value of common stock was estimated by a third-party valuation specialist and approved by the Board of Directors as of the grant date. For options granted to non-employee directors on September 20, 2016 in conjunction with the pricing of the IPO, pursuant to the non-employee director compensation policy, the fair value of common stock was equal to the public offering price of $11.00 per share. For option grants occurring subsequent to the Company’s IPO in September 2016, the fair value of common stock will be based upon the closing stock price as of the grant date. Income Taxes The Company did not record a federal or state income tax benefit for the three and nine months ended September 30, 2016 and 2015 due to its conclusion that a full valuation allowance is required against the Company’s deferred tax assets . Deferred tax assets and liabilities are determined based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. In estimating future tax consequences, all expected future events are considered other than enactment of changes in the tax law or rates. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company’s policy for recording interest and penalties is to record them as a component of interest expense and general and administrative expenses. As of September 30, 2016 and December 31, 2015, the Company accrued no interest related to uncertain tax positions. Tax years that remain subject to examination by federal and state tax jurisdictions date back to the year ended December 31, 2008. The Company has not been informed by any tax authorities for any jurisdiction that any of its tax years are under examination. The determination of recording or releasing a tax valuation allowance is made, in part, pursuant to an assessment performed by management regarding the likelihood that the Company will generate future taxable income against which benefits of its deferred tax assets may or may not be realized. This assessment requires management to exercise judgment and make estimates with respect to its ability to generate taxable income in future periods. In accordance with Section 382 of the Internal Revenue Code of 1986, as amended, a change in equity ownership of greater than 50% within a three-year period results in an annual limitation on the Company’s ability to utilize its net operating loss carryforwards created during the tax periods prior to the change in ownership. The Company has not determined whether ownership changes exceeding this threshold, including the Company’s recent IPO, have occurred. If a change in equity ownership has occurred which exceeds the Section 382 threshold, a portion of the Company’s net operating loss carryforwards may be limited. Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive for all periods presented. The following securities, presented on a common stock equivalent basis, have been excluded from the calculation of weighted average common shares outstanding for both the three and nine months ended September 30, 2016 and 2015 because the effect is anti-dilutive. The convertible preferred stock securities will no longer be potentially dilutive in future periods because, as discussed above, in September 2016, upon completion of the IPO, all outstanding shares of the convertible preferred stock were converted into shares of common stock at their conversion prices. September 30, 2016 2015 Convertible preferred stock — 7,741,284 Stock options outstanding 698,970 443,607 Recently Issued Accounting Standards Accounting Pronouncements Adopted In April 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-08, Property, Plant and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity and has applied it in the accompanying financial statements for presentation and disclosure of KNOW Bio as discontinued operations (see Note 2 ). The Company will also apply, as applicable, the guidance to future dispositions or classifications as held for sale. In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity In February 2015, the FASB issued ASU No. 2015-2, Consolidation (Topic 810): Amendments to the Consolidation Analysis Accounting Pronouncements Being Evaluated In May 2014, the FASB and the International Accounting Standards Board issued a converged standard on the recognition of revenue from contracts with customers. The converged standard has been codified within Topic 606, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 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 November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In October 2016, the FASB issued ASU No. 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control,

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2016
Discontinued Operations And Disposal Groups [Abstract]
Discontinued Operations	Note 2: Discontinued Operations On December 14, 2015, the Board of Directors of Novan approved the separation of its non-dermatological assets and rights from Novan, Inc. through the Distribution. To consummate the Distribution, the Company’s Board of Directors declared a pro rata dividend of KNOW Bio member units to Novan’s stockholders of record as of the close of business on December 29, 2015 (the “Record Date”). Each Novan stockholder received one member unit of KNOW Bio for every share of Novan preferred or common stock held at the close of business on the Record Date. The Distribution occurred on December 30, 2015 (the “Distribution Date”). Immediately following the Distribution, KNOW Bio became an independent, privately-held company and the Company does not own an equity interest in KNOW Bio and has no significant influence by contract or other means. The results of KNOW Bio have been classified as discontinued operations in the condensed consolidated statements of operations for all periods presented. Additionally, the related liabilities outstanding as of December 31, 2015 not assumed by KNOW Bio as part of the Distribution are classified as discontinued operations in the accompanying condensed consolidated balance sheets. At the Distribution Date, KNOW Bio had cash of $5,200 and equipment of $125. The cash included in the Distribution was recorded as a dividend distribution. Certain intellectual property rights were licensed to KNOW Bio as further described in Note 4—Technology Agreement. The financial results of KNOW Bio through the Distribution are presented as loss from discontinued operations in the consolidated statements of operations. The following table presents the financial results of KNOW Bio: Three Months Ended September 30, Nine Months Ended September 30, 2015 2015 Federal research contract and grant revenue $ 40 $ 229 Other contract and grant revenue — — Total revenue 40 229 Operating expenses: Research and development 472 1,295 General and administrative 48 125 Total operating expenses 520 1,420 Loss from discontinued operations $ (480 ) $ (1,191 ) The following table presents the aggregate carrying amount of the classes of liabilities of discontinued operations of KNOW Bio. December 31, 2015 Accounts payable $ 133 Accrued payroll 124 Total liabilities classified as discontinued operations in the consolidated balance sheets $ 257

Research and Development Licens

Research and Development Licenses	9 Months Ended
	Sep. 30, 2016
Research And Development [Abstract]
Research and Development Licenses	Note 3: Research and Development Licenses The Company has entered into various licensing agreements with universities and other research institutions under which the Company receives the rights, and in some cases substantially all of the rights, of the inventors, assignee or co-assignee to produce and market technology protected by certain patents and patent applications. The Company’s primary license agreement is with the University of North Carolina (“UNC”) and has been described in further detail within the subsection below. The counterparties to the Company’s various other licensing agreements are the University of Akron Research Foundation, Public Health Services, Hospital for Special Surgery, Strakan International S.A.R.L., which is a licensee of the University of Aberdeen, and KIPAX AB. The Company is generally required to make milestone payments based on development milestones and will be required to make royalty payments based on a percentage of future sales of covered products or a percentage of sublicensing revenue. Costs to acquire rights under license agreements and pre-commercialization milestone payments are classified as research and development expenses in the condensed consolidated statements of operations. Research and development expense recognized in connection with the incurrence of such costs totaled $25 and $125 during the three and nine months ended September 30, 2016, respectively, and $200 and $260 during the three and nine months ended September 30, 2015, respectively. The Company is generally required by the various licensing agreements to reimburse the licensor for certain legal and other patent related costs. These costs are expensed as incurred and are classified as general and administrative expenses in the consolidated statements of operations. General and administrative expense recognized in connection with the incurrence of such costs totaled $19 and $87 during the three and nine months ended September 30, 2016, respectively, and $41 and $80 during the three and nine months ended September 30, 2015, respectively. These license arrangements could require the Company to make payments upon achievement of certain milestones by the Company. As future royalty payments are directly related to future revenues (either sales or sublicensing), future commitments cannot be determined. No accrual for future payments under these agreements has been recorded, as the Company cannot estimate if, when or in what amount payments may become due. UNC License Agreement The UNC License Agreement provides the Company with an exclusive license to issued patents and pending applications directed to the Company’s library of Nitricil compounds, including patents issued in the U.S., Japan and Australia with claims intended to cover NVN1000, the new chemical entity (“NCE”) for the Company’s SB204, SB206 and SB208 product candidates. In connection with the UNC Agreement, the Company issued 115,865 shares of non-voting common stock to UNC and paid an upfront cash payment of $5 to UNC. During 2009, an additional 75,187 shares of non-voting common stock were issued to UNC in relation to the anti-dilution provision contained in the UNC Agreement. Upon completion of the IPO in September 2016, all shares of UNC’s non-voting common stock were converted to common stock.

Technology Agreement

Technology Agreement	9 Months Ended
	Sep. 30, 2016
Technology Licensing Agreements [Abstract]
Technology Agreement	Note 4: Technology Agreement In connection with the Distribution, the Company granted to KNOW Bio, through two separate agreements, exclusive licenses, with the right to sublicense, to certain U.S. and foreign patents and patent applications controlled by the Company as of the execution date of the agreement, and under one of the agreements, patents and patent applications that may become controlled by the Company during the three years immediately following the execution date of such agreement, directed towards nitric oxide-releasing compositions and methods of manufacturing thereof, including methods of manufacturing and other nitric oxide-based therapeutics. Additionally, the Company granted to KNOW Bio exclusive sublicenses, with the ability to further sublicense, under certain of the U.S. and foreign patents and patent applications exclusively licensed to the Company from UNC and another third party directed towards nitric oxide-releasing compositions, to develop and commercialize products utilizing the licensed technology. Under the exclusive sublicense to the UNC patents and applications, KNOW Bio is subject to the terms and conditions under the UNC License Agreement, including milestone and diligence payment obligations. There were no milestone or royalty payments required during the three and nine months ended September 30, 2016 and 2015. The exclusive license agreements and sublicense agreements will continue for so long as there is a valid patent claim under the respective agreement, unless earlier terminated, and upon expiration, will continue as perpetual non-exclusive licenses. KNOW Bio has the right to terminate each such agreement, for any reason upon ninety days advance written notice to the Company.

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2016
Property Plant And Equipment [Abstract]
Property and Equipment, Net	Note 5: Property and Equipment, Net Property and equipment consisted of the following: September 30, December 31, 2016 2015 Computer equipment $ 445 $ 283 Furniture and fixtures 476 89 Laboratory equipment 4,523 2,995 Office equipment 48 36 Leasehold improvements 1,166 692 Construction in progress (1) 9,296 — 15,954 4,095 Less: Accumulated depreciation and amortization (2,256 ) (1,751 ) $ 13,698 $ 2,344 (1) The Company capitalizes construction in progress and records corresponding liabilities when it is considered the owner, for accounting purposes, during the construction period. See Note 1—Organization and Significant Accounting Policies for the Company’s accounting policy relating to build-to-suit leases. Also see Note 6—Commitments and Contingencies for further discussion of this capitalized construction in progress project. Depreciation expense was $187 and $575 for the three and nine months ended September 30, 2016, respectively, and $166 and $452 for the three and nine months ended September 30, 2015, respectively.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6: Commitments and Contingencies Lease Obligations Operating Leases The Company leases facilities under non-cancelable operating leases with various expiration dates through February 2017, following lease amendments made during the third quarter of 2016. Future minimum lease payments totaling $94 are due during the period of October 2016 to February 2017. These leased facilities housed the Company’s corporate headquarters until October 2016, and will continue to house a portion of the Company’s research, development and drug compound manufacturing activities until completion of the renovations associated with the build-to-suit lease, as described below. Rent expense for operating leases totaled $165 and $374 for the three and nine months ended September 30, 2016 and $82 and $247 for the three and nine months ended September 30, 2015. Build-to-Suit Lease In August 2015, the Company entered into a lease agreement for approximately 51,000 rentable square feet of facility space in Morrisville, North Carolina, commencing in April 2016. This facility began to house the Company’s corporate headquarters in October 2016 and will house the Company’s primary research, development and drug compound manufacturing operations after completion of the construction period of the lease. The initial term of the lease agreement extends through June 30, 2026. The Company has an option to extend the lease agreement by five years upon completion of the initial lease term. Current contractual base rent payments are $90 per month, subject to a three percent increase annually over the term of the lease agreement. As a result of the nature of and the involvement in the renovations during the construction period of the leased space, the Company is the “deemed owner,” for accounting purposes only, of the construction project and is required to capitalize the fair value of the building as well as the construction costs incurred by either the landlord or the Company on its consolidated balance sheet pursuant to FASB ASC 840, Leases Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. The Company is not subject to any current pending legal matters or claims. The Company has entered into, and expects to continue to enter into, contracts in the normal course of business with various third parties who support its clinical trials, preclinical research studies and other services related to its development activities. The scope of the services under these agreements can generally be modified at any time, and the agreement can be terminated by either party after a period of notice and receipt of written notice. There have been no terminations as of September 30, 2016. Indemnification In the ordinary course of business, the Company has entered into contractual arrangements under which it has agreed to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and out of intellectual property infringement claims made by third parties. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. The Company’s obligations under these agreements may be limited in terms of time or amount, and in some instances, the Company may have recourse against third parties for certain payments. The terms of such obligations vary. It is not possible to make a reasonable estimate of the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. No material indemnification liabilities were identified or accrued in the accompanying financial statements.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stockholders’ Equity	Note 7: Stockholders’ Equity Capital Structure Authorized Shares . In conjunction with the completion of the IPO in September 2016, the Company amended its amended and restated certificate of incorporation and amended and restated bylaws. The amendment provides for 210,000,000 authorized shares of capital stock, of which 200,000,000 shares have been designated as $0.0001 par value common stock, and 10,000,000 shares have been designated as $0.0001 par value preferred stock. Convertible Preferred Stock The Company issued multiple series of convertible preferred stock between 2008 and 2015. In September 2016, in conjunction with the Company’s IPO, all outstanding shares of convertible preferred stock automatically converted into an aggregate of 8,776,269 shares of common stock at their conversion prices. The significant features of the convertible preferred stock series in place immediately prior to the conversion to common shares are summarized in the subsection below. The following table summarizes designated, issued and outstanding preferred shares as of September 26, 2016, immediately prior to the automatic conversion of all convertible preferred stock into shares of common stock in conjunction with the IPO: Designated Issued and Outstanding Series 1 Convertible Preferred 1,229,862 1,229,862 Series 2 Convertible Preferred 1,226,242 1,226,242 Series 3 Convertible Preferred 1,349,382 1,322,570 Series 4 Convertible Preferred 1,833,333 1,833,333 Mezzanine A Convertible Preferred 3,677,622 3,677,622 Mezzanine B Convertible Preferred 5,000,000 1,242,069 Total 14,316,441 10,531,698 The following table summarizes preferred stock activity during the nine months ended September 30, 2016: Mezzanine B Mezzanine A Series 4 Series 3 Series 2 Series 1 Shares Shares Shares Shares Shares Shares Balance as of December 31, 2015 1,242,069 3,677,622 1,833,333 1,322,570 1,226,242 1,229,862 Automatic conversion to common stock (1,242,069 ) (3,677,622 ) (1,833,333 ) (1,322,570 ) (1,226,242 ) (1,229,862 ) Balance as of September 30, 2016 — — — — — — Significant Features of Series 1, Series 2, Series 3, Series 4, Mezzanine A and Mezzanine B Convertible Preferred Stock Voting . The holders of Series 1, Series 2, Series 3, Series 4, Mezzanine A and Mezzanine B were entitled to vote equally with the shares of common stock. Dividends . Holders of preferred shares were entitled to dividends if and when declared by the Board of Directors. As of September 30, 2016, other than the Distribution (see Note 1—Organization and Significant Accounting Policies), no dividends had been declared. Conversion . Each share of Series 1, Series 2, Series 3, Series 4, Mezzanine A and Mezzanine B were convertible at the option of the holder at any time after the date of issuance into such a number of common shares as is determined by dividing the original issue price by the conversion price in effect at the time of the conversion. The conversion prices were subject to adjustment for subdivisions, dividends, combinations, reclassifications, merger, sale, etc. As discussed in Note 1—Organization and Significant Accounting Policies, the Company’s 1-for-1.2 reverse stock split of the Company’s shares of common stock resulted in a proportional adjustment to the existing conversion ratio of each series of convertible preferred stock, effective September 7, 2016. Automatic Conversion . Each share of Series 1, Series 2, Series 3, Series 4, Mezzanine A and Mezzanine B automatically converted into common stock at the then effective conversion prices for each series upon the completion of the IPO of the Company’s common stock because gross proceeds from the IPO exceeded $40,000. Consent Rights . Without consent of the holders of a majority of Series 1, Series 2, Series 3, Series 4, Mezzanine A and Mezzanine B shares, the Company could not take certain actions, including liquidation, dissolution, recapitalization or reorganization; increase or decrease the number of authorized shares of preferred or common stock; authorize or issue shares of capital stock with preferences or priorities over the existing shares of preferred stock; or effect any amendment to the certificate of incorporation or bylaws of the Company which would have had an adverse effect on the holders of Series 1, Series 2, Series 3, Series 4, Mezzanine A and Mezzanine B. Liquidation Preference . Upon liquidation, dissolution, or winding up of the Company, holders of the Mezzanine B would have been entitled to receive, prior and in preference to any distribution of the assets to holders of Mezzanine A, Series 4, Series 3, Series 2, Series 1 or common stock, an amount equal to the greater of the original purchase price or the per share amount on an as converted basis. After such distribution to the holders of Mezzanine B, the holders of Mezzanine A would have been entitled to receive, prior and in preference to any distribution of the assets to holders of Series 4, Series 3, Series 2, Series 1 or common stock, an amount equal to the greater of the original purchase price or the per share amount on an as converted basis. After such distribution to the holders of Mezzanine A, the holders of the Series 4 would have been entitled to receive, prior and in preference to any distribution of the assets to holders of Series 3, Series 2, Series 1 or common stock, an amount equal to the greater of the original purchase price or the per share amount on an as converted basis. After such distribution to the holders of Series 4, the holders of Series 3 would have been entitled to receive, prior and in preference to any distribution of the assets to holders of Series 2, Series 1 or common stock, an amount equal to the greater of the original purchase price or the per share amount on an as converted basis. After such distribution to the holders of Series 3, the holders of Series 2 would have been entitled to receive, prior and in preference to any distribution of the assets to holders of Series 1 or common stock, an amount equal to the greater of the original purchase price or the per share amount on an as converted basis. After such distribution to the holders of Mezzanine B, Mezzanine A, Series 4, Series 3 and Series 2, the holders of Series 1 would have been entitled to receive, prior and in preference to any distribution of the assets to holders of common stock, an amount equal to the greater of the original purchase price or the per share amount on an as converted basis. Any assets remaining after such preferential distributions would be distributed to holders of common stock. Anti-Dilution . Series 1, Series 2, Series 3, Series 4, Mezzanine A and Mezzanine B had a weighted average anti-dilution provision which protected against stock splits, stock dividends and recapitalizations. Prior to the IPO, in September 2016, the Company’s Board of Directors and existing stockholders approved a waiver of the existing preferred stock holders’ rights within the certificate of incorporation pertaining to (i) a notice requirement for the mandatory conversion of preferred stock to common stock in the IPO and (ii) the application of anti-dilution provisions with respect to issuance of common stock in the IPO. Stock Repurchase During the nine months ended September 30, 2016, the Company repurchased 9,500 shares of common stock for an aggregate price of $155 from an executive of the Company who is also a member of the Company’s Board of Directors. The repurchase of these shares is recorded as treasury stock on the Company’s condensed consolidated balance sheet as of September 30, 2016. Significant Features of Non-Voting Common Stock Each share of non-voting common stock would have automatically been converted into one share of common stock, as adjusted for any dividends and stock-splits, upon the closing of a qualified public offering of the Company’s common stock. As of December 31, 2015, other than the Distribution (see Note 1—Organization and Significant Accounting Policies), there were no previously declared dividends or stock-splits. As discussed in Note 1—Organization and Significant Accounting Policies, the Company’s stockholders approved a 1-for-1.2 reverse stock split of the Company’s shares of common stock, including all outstanding non-voting common stock, effective September 7, 2016. Subsequently, in conjunction with the Company’s IPO, all outstanding shares of non-voting common stock were converted into an aggregate of 191,052 shares of common stock. Preferred Stock The Company’s amended and restated certificate of incorporation provides the Company’s Board of Directors with the authority to issue $0.0001 par value preferred stock from time to time in one or more series by adopting a resolution and filing a certificate of designations. Voting powers, designations, preferences, dividend rights, conversion rights and liquidation preferences shall be stated and expressed in such resolutions. There were 10,000,000 and zero shares of preferred stock designated as of September 30, 2016 and December 31, 2015, respectively. There were no shares issued or outstanding as of September 30, 2016 and December 31, 2015. Common Stock Authorized, Issued and Outstanding Common Shares The Company’s common stock has a par value of $0.0001 per share and consists of 200,000,000 and 22,000,000 authorized shares as of September 30, 2016 and December 31, 2015, respectively. There were 15,938,659 and 2,235,838 shares of voting common stock outstanding as of September 30, 2016 and December 31, 2015, respectively. The following table summarizes common stock share activity for the nine months ended September 30, 2016: Common Stock Voting Non-voting Shares Shares Total Balance as of December 31, 2015 2,235,838 191,052 2,426,890 Exercise of stock options 30,000 — 30,000 Common stock repurchase (9,500 ) — (9,500 ) Conversion of preferred stock 8,776,269 — 8,776,269 Conversion of non-voting common stock 191,052 (191,052 ) — Common stock issued through IPO 4,715,000 — 4,715,000 Balance as of September 30, 2016 15,938,659 — 15,938,659 The Company had reserved shares of common stock for future issuance as follows: September 30, 2016 December 31, 2015 Outstanding stock options 698,970 458,234 For possible future issuance under 2008 Stock Plan (Note 8) — 405,893 For possible future issuance under 2016 Stock Plan (Note 8) 746,429 — 1,445,399 864,127

Stock Option Plan

Stock Option Plan	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Option Plan	Note 8: Stock Option Plan 2008 Stock Plan During 2008, the Company adopted the 2008 Stock Plan (the “2008 Plan”). As amended, a total of 1,416,666 shares of common stock were reserved for issuance under the 2008 Plan. As of September 20, 2016, immediately prior to the IPO, 222,061 shares were available for future stock option grants. Eligible plan participants include employees, directors, and consultants. The 2008 Plan permitted the granting of incentive stock options, nonqualified stock options, and other stock-based awards. As further described below, as of September 20, 2016, no additional awards will be granted under the 2008 Plan. 2016 Stock Plan Effective September 20, 2016 (the “Effective Date”), the Company adopted the 2016 Incentive Award Plan (the “2016 Plan”). The 2016 Plan is the successor to the 2008 Plan. As of the Effective Date, no additional awards will be granted under the 2008 Plan, but all stock awards granted under the 2008 Plan prior to the Effective Date will remain subject to the terms of the 2008 Plan. Under both the 2008 Plan and the 2016 Plan, options to purchase the Company’s common stock may be granted at a price no less than the fair value of a common stock share on the date of grant. The fair value shall be the closing sales price for a share as quoted on any established securities exchange for such grant date or the last preceding date for which such quotation exists. Vesting terms of options issued are determined by the board of directors or compensation committee of the board. The Company’s stock options vest based on terms in the stock option agreements, generally at a rate of one-third for each anniversary of the vesting commencement date for three years. Stock options have a maximum term of ten years. As of September 30, 2016, there were a total of 746,429 shares of common stock available for future issuance under the 2016 Plan. Stock Compensation Expense During the three and nine months ended September 30, 2016, the Company recorded employee share-based compensation expense from continuing operations of $327 and $861, respectively. During the three and nine months ended September 30, 2015, the Company recorded employee share-based compensation expense from continuing operations of $231 and $710, respectively. Total share-based compensation expense included in the consolidated statements of operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Research and development $ 95 $ 128 $ 274 $ 407 General and administrative 232 103 587 303 Discontinued operations — 45 — 134 $ 327 $ 276 $ 861 $ 844 Stock option activity for the nine months ended September 30, 2016 is as follows: Shares Subject to Outstanding Options Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding as of December 31, 2015 458,234 $ 6.26 Options granted 274,402 13.87 Options forfeited (3,666 ) 12.25 Options exercised (30,000 ) 1.12 Options outstanding as of September 30, 2016 698,970 $ 9.44 8.64 $ 7,507,360

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 9: Related Party Transactions During the three and nine months ended September 30, 2015, the Company paid a former director $50 and $63, respectively, in conjunction with a research and development consulting agreement. No such payments were made during the three and nine months ended September 30, 2016. These costs are expensed as incurred and are classified as research and development expenses in the condensed consolidated statements of operations. Board members held 2,486,656 shares of convertible preferred stock as of December 31, 2015. As discussed in Note 1—Organization and Significant Accounting Policies, all convertible preferred stock was converted into common stock in conjunction with the IPO in September 2016. As a result, Board members held zero preferred shares as of September 30, 2016. Board members held 1,561,916 and 1,761,416 shares of the Company’s common stock as of September 30, 2016 and December 31, 2015, respectively. See Note 7—Stockholders’ Equity regarding a repurchase of common stock from a related party officer and director of the Company.

Organization and Significant 15

Organization and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Consolidation	Basis of Consolidation The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Unaudited Interim Condensed Consolidated Financial Statements	Unaudited Interim Condensed Consolidated Financial Statements The accompanying interim condensed consolidated financial statements and the related footnote disclosures are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP on the same basis as the audited consolidated financial statements and in the opinion of management, reflect all adjustments of a normal, recurring nature that are necessary for the fair statement of the Company’s financial position as of September 30, 2016 and its results of operations and cash flows for the nine months ended September 30, 2016 and 2015. The results for the nine months ended September 30, 2016 are not necessarily indicative of the results expected for the full fiscal year or any future period. These interim financial statements should be read in conjunction with the financial statements and notes set forth in the Company’s registration statement on Form S-1 under the Securities Act of 1933, as amended, filed with and declared effective by the SEC on September 20, 2016.
Leases	Leases The Company leases office space and certain equipment under non-cancelable lease agreements. The leases are reviewed for classification as operating or capital leases. For operating leases, rent is recognized on a straight-line basis over the lease period. For capital leases, the Company records the leased asset with a corresponding liability. Payments are recorded as reductions to the liability with an appropriate interest charge recorded based on the then-outstanding remaining liability. The Company considers the nature of the renovations and the Company’s involvement during the construction period of newly leased office space to determine if it is considered to be the owner of the construction project during the construction period. If the Company determines that it is the owner of the construction project, it is required to capitalize the fair value of the building as well as the construction costs incurred, including capitalized interest, on its consolidated balance sheet along with a corresponding financing liability (“build-to-suit accounting”). Upon completion of the construction of the facility under a build-to-suit lease, the Company assesses whether the circumstances qualify for sales recognition under the sale-leaseback accounting guidance. If the lease meets the sale-leaseback criteria, the Company will remove the asset and related financial obligation from the balance sheet and evaluate the lease for treatment as a capital or operating lease. If upon completion of construction, the project does not meet the sale-leaseback criteria, the leased property will be treated as an asset financing for financial reporting purposes.
Deferred Offering Costs	Deferred Offering Costs Deferred offering costs, consisting of legal, accounting, filing and other fees directly related to the offering, are offset against proceeds from each offering. Offering costs incurred prior to the completion of an offering are initially capitalized as current assets, evaluated each period for likelihood of completion and subsequently reclassified to additional paid-in capital upon completion of the offering.
Share-Based Compensation	Share-Based Compensation Employees. The Company applies the fair value method of accounting for share-based compensation, which requires all such compensation to employees, including the grant of employee stock options, to be recognized in the statement of operations based on its fair value at the measurement date (generally the grant date). The expense associated with share-based compensation is recognized on a straight-line basis over the service period of each award. Share-based awards granted to non-employee directors as compensation for serving on the Company’s Board of Directors are accounted for in the same manner as employee share-based compensation awards. Non-employees. For share-based compensation granted to non-employees, the measurement date is generally considered to be the date when all services have been rendered or the date that options are fully vested. The fair value of each option grant is estimated using a Black-Scholes option-pricing model on the grant date using expected volatility, risk-free interest rate, expected life of options and fair value per share assumptions. Due to limited historical data, the Company estimates stock price volatility based on the actual volatility of comparable publicly traded companies over the expected life of the option. In evaluating similarity, the Company considered factors such as industry, stage of life cycle, financial leverage, size and risk profile. The Company does not have sufficient history of exercise of stock options to estimate the expected term of employee stock options and thus continues to calculate expected life based on the mid-point between the vesting date and the contractual term, which is in accordance with the simplified method. The expected term for share-based compensation granted to non-employees is the contractual life. The risk-free rate is based on the U.S. Treasury yield curve during the expected life of the option. For option grants occurring prior to the Company’s IPO in September 2016, the fair value of common stock was estimated by a third-party valuation specialist and approved by the Board of Directors as of the grant date. For options granted to non-employee directors on September 20, 2016 in conjunction with the pricing of the IPO, pursuant to the non-employee director compensation policy, the fair value of common stock was equal to the public offering price of $11.00 per share. For option grants occurring subsequent to the Company’s IPO in September 2016, the fair value of common stock will be based upon the closing stock price as of the grant date.
Income Taxes	Income Taxes The Company did not record a federal or state income tax benefit for the three and nine months ended September 30, 2016 and 2015 due to its conclusion that a full valuation allowance is required against the Company’s deferred tax assets . Deferred tax assets and liabilities are determined based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. In estimating future tax consequences, all expected future events are considered other than enactment of changes in the tax law or rates. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company’s policy for recording interest and penalties is to record them as a component of interest expense and general and administrative expenses. As of September 30, 2016 and December 31, 2015, the Company accrued no interest related to uncertain tax positions. Tax years that remain subject to examination by federal and state tax jurisdictions date back to the year ended December 31, 2008. The Company has not been informed by any tax authorities for any jurisdiction that any of its tax years are under examination. The determination of recording or releasing a tax valuation allowance is made, in part, pursuant to an assessment performed by management regarding the likelihood that the Company will generate future taxable income against which benefits of its deferred tax assets may or may not be realized. This assessment requires management to exercise judgment and make estimates with respect to its ability to generate taxable income in future periods. In accordance with Section 382 of the Internal Revenue Code of 1986, as amended, a change in equity ownership of greater than 50% within a three-year period results in an annual limitation on the Company’s ability to utilize its net operating loss carryforwards created during the tax periods prior to the change in ownership. The Company has not determined whether ownership changes exceeding this threshold, including the Company’s recent IPO, have occurred. If a change in equity ownership has occurred which exceeds the Section 382 threshold, a portion of the Company’s net operating loss carryforwards may be limited.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive for all periods presented. The following securities, presented on a common stock equivalent basis, have been excluded from the calculation of weighted average common shares outstanding for both the three and nine months ended September 30, 2016 and 2015 because the effect is anti-dilutive. The convertible preferred stock securities will no longer be potentially dilutive in future periods because, as discussed above, in September 2016, upon completion of the IPO, all outstanding shares of the convertible preferred stock were converted into shares of common stock at their conversion prices. September 30, 2016 2015 Convertible preferred stock — 7,741,284 Stock options outstanding 698,970 443,607
Recently Issued Accounting Standards	Recently Issued Accounting Standards Accounting Pronouncements Adopted In April 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-08, Property, Plant and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity and has applied it in the accompanying financial statements for presentation and disclosure of KNOW Bio as discontinued operations (see Note 2 ). The Company will also apply, as applicable, the guidance to future dispositions or classifications as held for sale. In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity In February 2015, the FASB issued ASU No. 2015-2, Consolidation (Topic 810): Amendments to the Consolidation Analysis Accounting Pronouncements Being Evaluated In May 2014, the FASB and the International Accounting Standards Board issued a converged standard on the recognition of revenue from contracts with customers. The converged standard has been codified within Topic 606, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 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 November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In October 2016, the FASB issued ASU No. 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control,

Organization and Significant 16

Organization and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Anti-dilutive Securities Excluded from Calculation of Weighted Average Common Shares Outstanding	The following securities, presented on a common stock equivalent basis, have been excluded from the calculation of weighted average common shares outstanding for both the three and nine months ended September 30, 2016 and 2015 because the effect is anti-dilutive. The convertible preferred stock securities will no longer be potentially dilutive in future periods because, as discussed above, in September 2016, upon completion of the IPO, all outstanding shares of the convertible preferred stock were converted into shares of common stock at their conversion prices. September 30, 2016 2015 Convertible preferred stock — 7,741,284 Stock options outstanding 698,970 443,607

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2016
Discontinued Operations And Disposal Groups [Abstract]
Financial Results of KNOW Bio Through Distribution Presented as Income (Loss) from Discontinued Operations in Consolidated Statements of Operations and Aggregate Carrying Amount of Classes of Liabilities	The financial results of KNOW Bio through the Distribution are presented as loss from discontinued operations in the consolidated statements of operations. The following table presents the financial results of KNOW Bio: Three Months Ended September 30, Nine Months Ended September 30, 2015 2015 Federal research contract and grant revenue $ 40 $ 229 Other contract and grant revenue — — Total revenue 40 229 Operating expenses: Research and development 472 1,295 General and administrative 48 125 Total operating expenses 520 1,420 Loss from discontinued operations $ (480 ) $ (1,191 ) The following table presents the aggregate carrying amount of the classes of liabilities of discontinued operations of KNOW Bio. December 31, 2015 Accounts payable $ 133 Accrued payroll 124 Total liabilities classified as discontinued operations in the consolidated balance sheets $ 257

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2016
Property Plant And Equipment [Abstract]
Components of Property and Equipment	Property and equipment consisted of the following: September 30, December 31, 2016 2015 Computer equipment $ 445 $ 283 Furniture and fixtures 476 89 Laboratory equipment 4,523 2,995 Office equipment 48 36 Leasehold improvements 1,166 692 Construction in progress (1) 9,296 — 15,954 4,095 Less: Accumulated depreciation and amortization (2,256 ) (1,751 ) $ 13,698 $ 2,344 (1) The Company capitalizes construction in progress and records corresponding liabilities when it is considered the owner, for accounting purposes, during the construction period. See Note 1—Organization and Significant Accounting Policies for the Company’s accounting policy relating to build-to-suit leases. Also see Note 6—Commitments and Contingencies for further discussion of this capitalized construction in progress project.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Convertible Preferred Stock	The following table summarizes designated, issued and outstanding preferred shares as of September 26, 2016, immediately prior to the automatic conversion of all convertible preferred stock into shares of common stock in conjunction with the IPO: Designated Issued and Outstanding Series 1 Convertible Preferred 1,229,862 1,229,862 Series 2 Convertible Preferred 1,226,242 1,226,242 Series 3 Convertible Preferred 1,349,382 1,322,570 Series 4 Convertible Preferred 1,833,333 1,833,333 Mezzanine A Convertible Preferred 3,677,622 3,677,622 Mezzanine B Convertible Preferred 5,000,000 1,242,069 Total 14,316,441 10,531,698
Summary of Preferred Stock Activity	The following table summarizes preferred stock activity during the nine months ended September 30, 2016: Mezzanine B Mezzanine A Series 4 Series 3 Series 2 Series 1 Shares Shares Shares Shares Shares Shares Balance as of December 31, 2015 1,242,069 3,677,622 1,833,333 1,322,570 1,226,242 1,229,862 Automatic conversion to common stock (1,242,069 ) (3,677,622 ) (1,833,333 ) (1,322,570 ) (1,226,242 ) (1,229,862 ) Balance as of September 30, 2016 — — — — — —
Summary of Common Stock Activity	The following table summarizes common stock share activity for the nine months ended September 30, 2016: Common Stock Voting Non-voting Shares Shares Total Balance as of December 31, 2015 2,235,838 191,052 2,426,890 Exercise of stock options 30,000 — 30,000 Common stock repurchase (9,500 ) — (9,500 ) Conversion of preferred stock 8,776,269 — 8,776,269 Conversion of non-voting common stock 191,052 (191,052 ) — Common stock issued through IPO 4,715,000 — 4,715,000 Balance as of September 30, 2016 15,938,659 — 15,938,659
Schedule of Reserved Shares of Common Stock for Future Issuance	The Company had reserved shares of common stock for future issuance as follows: September 30, 2016 December 31, 2015 Outstanding stock options 698,970 458,234 For possible future issuance under 2008 Stock Plan (Note 8) — 405,893 For possible future issuance under 2016 Stock Plan (Note 8) 746,429 — 1,445,399 864,127

Stock Option Plan (Tables)

Stock Option Plan (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Share-based Compensation Expenses	During the three and nine months ended September 30, 2016, the Company recorded employee share-based compensation expense from continuing operations of $327 and $861, respectively. During the three and nine months ended September 30, 2015, the Company recorded employee share-based compensation expense from continuing operations of $231 and $710, respectively. Total share-based compensation expense included in the consolidated statements of operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Research and development $ 95 $ 128 $ 274 $ 407 General and administrative 232 103 587 303 Discontinued operations — 45 — 134 $ 327 $ 276 $ 861 $ 844
Summary of Stock Option Activity	Stock option activity for the nine months ended September 30, 2016 is as follows: Shares Subject to Outstanding Options Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding as of December 31, 2015 458,234 $ 6.26 Options granted 274,402 13.87 Options forfeited (3,666 ) 12.25 Options exercised (30,000 ) 1.12 Options outstanding as of September 30, 2016 698,970 $ 9.44 8.64 $ 7,507,360

Organization and Significant 21

Organization and Significant Accounting Policies - Additional Information (Details)	Sep. 26, 2016USD ($)$ / sharesshares	Sep. 07, 2016	Sep. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares
Organization And Significant Accounting Policies [Line Items]
Accumulated deficit | $			$ (109,972,000)	$ (63,334,000)
Reverse stock-split, description			1-for-1.2 reverse stock split
Reverse stock-split ratio		0.8333	0.8333
Capital stock, shares authorized | shares			210,000,000
Common stock, shares authorized | shares			200,000,000	22,000,000
Common stock, par value | $ / shares			$ 0.0001	$ 0.0001
Preferred stock, shares authorized | shares			10,000,000	0
Preferred stock, par value | $ / shares			$ 0.0001	$ 0.0001
Stock issued during period, shares issued in initial public offering | shares			4,715,000
Accrued interest related to uncertain tax positions | $			$ 0	$ 0
Common Stock
Organization And Significant Accounting Policies [Line Items]
Public offering price per share | $ / shares	$ 11
Initial Public Offering
Organization And Significant Accounting Policies [Line Items]
Stock issued during period, shares issued in initial public offering | shares	4,715,000
Public offering price per share | $ / shares	$ 11
Gross proceeds from initial public offering | $	$ 51,865,000
Net proceeds from issuance of initial public offering | $	44,595,000
Underwriting discounts and commissions | $	4,080,000
Offering expenses | $	$ 3,190,000
Common stock shares issued upon conversion of convertible preferred stock and non-voting common stock | shares	8,967,321
KNOW Bio
Organization And Significant Accounting Policies [Line Items]
Percentage of outstanding member interests of KNOW Bio distributed to stockholders				100.00%

Organization and Significant 22

Organization and Significant Accounting Policies - Summary of Anti-dilutive Securities Excluded from Calculation of Weighted Average Common Shares Outstanding (Details) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)		7,741,284
Stock Options Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	698,970	443,607

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Details) - KNOW Bio - USD ($) $ in Thousands	Dec. 30, 2015	Sep. 30, 2016
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Distribution date of record		Dec. 29, 2015
Distribution payment date		Dec. 30, 2015
Cash on dividend distribution	$ 5,200
Equipment distribution declared	$ 125

Discontinued Operations - Summa

Discontinued Operations - Summary of Financial Results of KNOW Bio Through The Distribution In Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Operating expenses:
Loss from discontinued operations	$ (480)	$ (1,191)
KNOW Bio
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total grant revenue	40	229
Operating expenses:
Research and development	472	1,295
General and administrative	48	125
Total operating expenses	520	1,420
Loss from discontinued operations	(480)	(1,191)
KNOW Bio | Federal Research
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total grant revenue	$ 40	$ 229

Discontinued Operations - Sum25

Discontinued Operations - Summary of Aggregate Carrying Amount of Classes of Liabilities (Details) - KNOW Bio $ in Thousands	Dec. 31, 2015USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Accounts payable	$ 133
Accrued payroll	124
Total liabilities classified as discontinued operations in the consolidated balance sheets	$ 257

Research and Development Lice26

Research and Development Licenses - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2009
Research And Development Licenses [Line Items]
Research and development expense	$ 14,988,000	$ 3,177,000	$ 37,361,000	$ 9,875,000
General and administrative expense	2,493,000	2,449,000	$ 9,327,000	5,858,000
Non-voting common stock shares, issued			4,715,000
Licensing Agreements
Research And Development Licenses [Line Items]
Research and development expense	25,000	200,000	$ 125,000	260,000
General and administrative expense	$ 19,000	$ 41,000	87,000	$ 80,000
Accrual for future payments			0
UNC License Agreement
Research And Development Licenses [Line Items]
License agreement payment in regulatory and commercial milestones			$ 425,000
Projected expiration date of patents			2,033
Upfront cash payment			$ 5,000
UNC License Agreement | Non-voting Common Stock
Research And Development Licenses [Line Items]
Non-voting common stock shares, issued			115,865		75,187

Technology Agreement - Addition

Technology Agreement - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Milestone and royalty payments	$ 0	$ 0	$ 0	$ 0

Property and Equipment, Net - C

Property and Equipment, Net - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Furniture and fixtures	$ 476	$ 89
Leasehold improvements	1,166	692
Construction in progress	9,296
Property, Plant and Equipment, Gross	15,954	4,095
Less: Accumulated depreciation and amortization	(2,256)	(1,751)
Property, Plant and Equipment, Net	13,698	2,344
Computer Equipment
Property, Plant and Equipment [Line Items]
Equipment	445	283
Laboratory Equipment
Property, Plant and Equipment [Line Items]
Equipment	4,523	2,995
Office Equipment
Property, Plant and Equipment [Line Items]
Equipment	$ 48	$ 36

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property Plant And Equipment [Abstract]
Depreciation expense	$ 187	$ 166	$ 575	$ 452

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Aug. 31, 2015ft²
Commitments And Contingencies [Line Items]
Operating lease expiration date			Feb. 28, 2017
Future minimum operating lease payments due	$ 94		$ 94
Rent expense for operating leases	165	$ 82	374	$ 247
Property and equipment, net	13,698		13,698		$ 2,344
Facility lease obligation	7,752		$ 7,752
Build-to-Suit Lease
Commitments And Contingencies [Line Items]
Operating lease expiration date			Jun. 30, 2026
Rentable square feet of additional facility space | ft²						51,000
Optional term of extending lease agreement			5 years
Current contractual base rent payments per month			$ 90
Percentage of increase in annual rental payments			3.00%
Capitalized interest expense	259		$ 259
Facility lease obligation	7,752		7,752		$ 0
Construction costs financed by landlord			7,847
Payments for financial obligation			95
Construction in Progress | Build-to-Suit Lease
Commitments And Contingencies [Line Items]
Property and equipment, net	$ 9,296		$ 9,296

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details)	Sep. 26, 2016shares	Sep. 07, 2016	Sep. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2015$ / sharesshares
Equity [Line Items]
Capital stock, shares authorized			210,000,000
Common stock, shares authorized			200,000,000	22,000,000
Common stock, par value | $ / shares			$ 0.0001	$ 0.0001
Preferred stock, shares authorized			10,000,000	0
Preferred stock, par value | $ / shares			$ 0.0001	$ 0.0001
Automatic conversion of preferred stock	8,776,269		8,776,269
Reverse stock-split ratio		0.8333	0.8333
Common stock repurchased, shares			9,500
Common stock repurchased, value | $			$ 155,000
Number of common shares issued on conversion of non-voting common stock			191,052
Non-voting dividends declared | $			$ 0
Number of series of preferred stock, description			Time to time in one or more series by adopting a resolution and filing a certificate of designations
Preferred stock, shares issued			0	0
Preferred stock, shares outstanding			0	0
Common stock, shares outstanding			15,938,659	2,426,890
Minimum
Equity [Line Items]
IPO gross proceeds threshold that triggers automatic conversion of preferred stock | $			$ 40,000,000
Convertible Preferred Stock
Equity [Line Items]
Conversion of stock, description			Each share of Series 1, Series 2, Series 3, Series 4, Mezzanine A and Mezzanine B were convertible at the option of the holder at any time after the date of issuance into such a number of common shares as is determined by dividing the original issue price by the conversion price in effect at the time of the conversion.
Non-voting Common Stock
Equity [Line Items]
Common stock, shares authorized			0	229,263
Common stock, par value | $ / shares			$ 0.0001	$ 0.0001
Conversion of stock, description			Each share of non-voting common stock would have automatically been converted into one share of common stock, as adjusted for any dividends and stock-splits, upon the closing of a qualified public offering of the Company’s common stock.
Number of common shares issued on conversion of non-voting common stock			(191,052)
Common stock, shares outstanding			0	191,052
Voting Common Stock
Equity [Line Items]
Common stock, shares authorized			200,000,000	22,000,000
Common stock, par value | $ / shares			$ 0.0001	$ 0.0001
Automatic conversion of preferred stock			8,776,269
Common stock repurchased, shares			9,500
Number of common shares issued on conversion of non-voting common stock			191,052
Common stock, shares outstanding			15,938,659	2,235,838

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Convertible Preferred Stock (Details) - shares	Sep. 30, 2016	Sep. 26, 2016	Dec. 31, 2015
Class Of Stock [Line Items]
Convertible preferred stock, shares designated		14,316,441
Convertible preferred stock, shares issued		10,531,698
Convertible preferred stock, shares outstanding		10,531,698
Series 1 Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock, shares designated	0	1,229,862	1,229,862
Convertible preferred stock, shares issued	0	1,229,862	1,229,862
Convertible preferred stock, shares outstanding	0	1,229,862	1,229,862
Series 2 Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock, shares designated	0	1,226,242	1,226,242
Convertible preferred stock, shares issued	0	1,226,242	1,226,242
Convertible preferred stock, shares outstanding	0	1,226,242	1,226,242
Series 3 Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock, shares designated	0	1,349,382	1,349,382
Convertible preferred stock, shares issued	0	1,322,570	1,322,570
Convertible preferred stock, shares outstanding	0	1,322,570	1,322,570
Series 4 Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock, shares designated	0	1,833,333	1,833,333
Convertible preferred stock, shares issued	0	1,833,333	1,833,333
Convertible preferred stock, shares outstanding	0	1,833,333	1,833,333
Mezzanine A Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock, shares designated	0	3,677,622	3,677,622
Convertible preferred stock, shares issued	0	3,677,622	3,677,622
Convertible preferred stock, shares outstanding	0	3,677,622	3,677,622
Mezzanine B Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock, shares designated	0	5,000,000	5,000,000
Convertible preferred stock, shares issued	0	1,242,069	1,242,069
Convertible preferred stock, shares outstanding	0	1,242,069	1,242,069

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Preferred Stock Activity (Details) - shares	Sep. 26, 2016	Sep. 30, 2016
Class Of Stock [Line Items]
Automatic conversion to common stock	8,776,269	8,776,269
Convertible preferred stock shares, ending balance	10,531,698
Mezzanine B Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock shares, beginning balance		1,242,069
Automatic conversion to common stock		(1,242,069)
Convertible preferred stock shares, ending balance	1,242,069	0
Mezzanine A Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock shares, beginning balance		3,677,622
Automatic conversion to common stock		(3,677,622)
Convertible preferred stock shares, ending balance	3,677,622	0
Series 4 Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock shares, beginning balance		1,833,333
Automatic conversion to common stock		(1,833,333)
Convertible preferred stock shares, ending balance	1,833,333	0
Series 3 Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock shares, beginning balance		1,322,570
Automatic conversion to common stock		(1,322,570)
Convertible preferred stock shares, ending balance	1,322,570	0
Series 2 Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock shares, beginning balance		1,226,242
Automatic conversion to common stock		(1,226,242)
Convertible preferred stock shares, ending balance	1,226,242	0
Series 1 Convertible Preferred Stock
Class Of Stock [Line Items]
Convertible preferred stock shares, beginning balance		1,229,862
Automatic conversion to common stock		(1,229,862)
Convertible preferred stock shares, ending balance	1,229,862	0

Stockholders' Equity - Summar34

Stockholders' Equity - Summary of Common Stock Activity (Details) - shares	Sep. 26, 2016	Sep. 30, 2016
Equity [Line Items]
Common stock shares, beginning balance		2,426,890
Exercise of stock options		30,000
Common stock repurchase		(9,500)
Conversion of preferred stock	8,776,269	8,776,269
Conversion of non-voting common stock		191,052
Common stock issued through IPO		4,715,000
Common stock shares, ending balance		15,938,659
Voting Common Stock
Equity [Line Items]
Common stock shares, beginning balance		2,235,838
Exercise of stock options		30,000
Common stock repurchase		(9,500)
Conversion of preferred stock		8,776,269
Conversion of non-voting common stock		191,052
Common stock issued through IPO		4,715,000
Common stock shares, ending balance		15,938,659
Non-voting Common Stock
Equity [Line Items]
Common stock shares, beginning balance		191,052
Conversion of non-voting common stock		(191,052)
Common stock shares, ending balance		0

Stockholders' Equity - Schedu35

Stockholders' Equity - Schedule of Reserved Shares of Common Stock for Future Issuance (Details) - shares	Sep. 30, 2016	Dec. 31, 2015
Equity [Line Items]
Common stock shares reserved for future issuance	1,445,399	864,127
2008 Stock Plan
Equity [Line Items]
Common stock shares reserved for future issuance		405,893
2016 Stock Plan
Equity [Line Items]
Common stock shares reserved for future issuance	746,429
Outstanding stock options
Equity [Line Items]
Common stock shares reserved for future issuance	698,970	458,234

Stock Option Plan - Additional

Stock Option Plan - Additional Information (Details) - USD ($) $ in Thousands	Sep. 20, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2008
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense from continuing operations		$ 327	$ 276	$ 861	$ 844
Continuing Operations
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense from continuing operations		$ 327	$ 231	$ 861	$ 710
2008 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares reserved for future issuance						1,416,666
Additional awards to be granted under the plan	0
Stock options vesting period				3 years
Stock options expiration period				10 years
2008 Stock Plan | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting percentage				33.33%
2008 Stock Plan | Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting percentage				33.33%
2008 Stock Plan | Tranche Three
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting percentage				33.33%
2016 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares reserved for future issuance	833,333
Number of shares available for future stock option grants, immediately prior to IPO		746,429		746,429
Stock options vesting period				3 years
Stock options expiration period				10 years
2016 Stock Plan | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting percentage				33.33%
2016 Stock Plan | Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting percentage				33.33%
2016 Stock Plan | Tranche Three
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting percentage				33.33%
Initial Public Offering | 2008 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for future stock option grants, immediately prior to IPO	222,061

Stock Option Plan - Schedule of

Stock Option Plan - Schedule of Share-based Compensation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based compensation expense	$ 327	$ 276	$ 861	$ 844
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based compensation expense	95	128	274	407
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based compensation expense	$ 232	103	$ 587	303
Discontinued operations
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based compensation expense		$ 45		$ 134

Stock Option Plan - Summary of

Stock Option Plan - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Shares Subject to Outstanding Options
Options outstanding as of December 31, 2015 | shares	458,234
Options granted | shares	274,402
Options forfeited | shares	(3,666)
Options exercised | shares	(30,000)
Options outstanding as of September 30, 2016 | shares	698,970
Weighted-Average Exercise Price Per Share
Options outstanding as of December 31, 2015 | $ / shares	$ 6.26
Options granted | $ / shares	13.87
Options forfeited | $ / shares	12.25
Options exercised | $ / shares	1.12
Options outstanding as of September 30, 2016 | $ / shares	$ 9.44
Weighted- Average Remaining Contractual Term (in years)
Options outstanding as of September 30, 2016	8 years 7 months 21 days
Aggregate Intrinsic Value
Options outstanding as of September 30, 2016 | $	$ 7,507,360

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 26, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Research and development expense	$ 14,988	$ 3,177	$ 37,361	$ 9,875
Convertible preferred stock, number of shares held					10,531,698
Common stock, number of shares held	15,938,659		15,938,659			2,426,890
Former Director Providing Services under Research and Development Consulting Agreement
Related Party Transaction [Line Items]
Research and development expense	$ 0	$ 50	$ 0	$ 63
Board Member Share Holdings
Related Party Transaction [Line Items]
Convertible preferred stock, number of shares held	0		0			2,486,656
Common stock, number of shares held	1,561,916		1,561,916			1,761,416