Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 04, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'OTIC | ' |
Entity Registrant Name | 'Otonomy, Inc. | ' |
Entity Central Index Key | '0001493566 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 21,173,270 |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $165,155 | $37,284 |
Restricted cash | 0 | 75 |
Prepaid and other current assets | 2,177 | 1,654 |
Total current assets | 167,332 | 39,013 |
Property and equipment, net | 952 | 683 |
Other long-term assets | 41 | 61 |
Total assets | 168,325 | 39,757 |
Current liabilities: | ' | ' |
Accounts payable | 1,748 | 2,014 |
Accrued expenses | 2,486 | 384 |
Accrued compensation | 1,254 | 244 |
Current portion of deferred rent | 83 | 73 |
Total current liabilities | 5,571 | 2,715 |
Convertible preferred stock warrant liability | 0 | 646 |
Deferred rent, net of current portion | 156 | 220 |
Total liabilities | 5,727 | 3,581 |
Commitments and Contingencies | ' | ' |
Convertible preferred stock | ' | ' |
Stockholders' equity (deficit): | ' | ' |
Preferred stock, $0.001 par value; 10,000,000 and 0 shares authorized at September 30, 2014 and December 31, 2013, respectively; no shares issued or outstanding at September 30, 2014 and December 31, 2013 | ' | ' |
Common stock, $0.001 par value; 200,000,000 and 11,851,717 shares authorized at September 30, 2014 and December 31, 2013, respectively; 21,172,221 and 75,325 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 21 | ' |
Additional paid-in capital | 255,252 | 580 |
Accumulated deficit | -92,675 | -59,557 |
Total stockholders' equity (deficit) | 162,598 | -58,977 |
Total liabilities, convertible preferred stock, and stockholders' equity (deficit) | 168,325 | 39,757 |
Series A Convertible Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Convertible preferred stock | ' | 10,561 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Convertible preferred stock | ' | 23,007 |
Series C Convertible Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Convertible preferred stock | ' | $61,585 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized | 0 | 9,519,809 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 11,851,717 |
Common stock, shares Issued | 21,172,221 | 75,325 |
Common stock, Shares outstanding | 21,172,221 | 75,325 |
Series A Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, authorized | 0 | 404,671 |
Preferred stock, shares issued | 0 | 339,863 |
Preferred stock, shares outstanding | 0 | 339,863 |
Preferred stock, liquidation preference | $0 | $2,987 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, authorized | 0 | 1,708,076 |
Preferred stock, shares issued | 0 | 1,708,076 |
Preferred stock, shares outstanding | 0 | 1,708,076 |
Preferred stock, liquidation preference | 0 | 15,014 |
Series C Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, authorized | 0 | 7,407,062 |
Preferred stock, shares issued | 0 | 7,040,026 |
Preferred stock, shares outstanding | 0 | 7,040,026 |
Preferred stock, liquidation preference | $0 | $92,823 |
Condensed_Statements_of_Operat
Condensed Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating expenses: | ' | ' | ' | ' |
Research and development | $7,361 | $3,548 | $24,616 | $9,698 |
General and administrative | 2,040 | 807 | 5,169 | 2,284 |
Total operating expenses | 9,401 | 4,355 | 29,785 | 11,982 |
Loss from operations | -9,401 | -4,355 | -29,785 | -11,982 |
Other (expense) income: | ' | ' | ' | ' |
Interest expense | -31 | -1,478 | -39 | -2,524 |
Change in fair value of convertible preferred stock warrant liability | -2,632 | 189 | -3,300 | 2,713 |
Other income (expense), net | 33 | -3 | 41 | -9 |
Total other (expense) income | -2,630 | -1,292 | -3,298 | 180 |
Net loss and comprehensive loss | -12,031 | -5,647 | -33,083 | -11,802 |
Accretion to redemption value of convertible preferred stock | -7 | -130 | -35 | -526 |
Net loss attributable to common stockholders | ($12,038) | ($5,777) | ($33,118) | ($12,328) |
Net loss per share attributable to common stockholders, basic and diluted | ($1.23) | ($76.69) | ($9.83) | ($165.29) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 9,823,690 | 75,325 | 3,369,437 | 74,585 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($33,083) | ($11,802) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 152 | 194 |
Stock-based compensation | 895 | 125 |
Non-cash interest expense | 39 | 2,524 |
Change in fair value of convertible preferred stock warrant liability | 3,300 | -2,713 |
Deferred rent | -54 | -9 |
Changes in operating assets and liabilities: | ' | ' |
Prepaid and other assets | -542 | -74 |
Accounts payable | -814 | -249 |
Accrued expenses | 2,076 | 450 |
Accrued compensation | 1,010 | 413 |
Net cash used in operating activities | -27,021 | -11,141 |
Cash flows from investing activities: | ' | ' |
Decrease in restricted cash | 75 | ' |
Purchases of property and equipment | -402 | -445 |
Net cash used in investing activities | -327 | -445 |
Cash flows from financing activities: | ' | ' |
Proceeds from convertible notes payable | ' | 7,009 |
Proceeds from issuance of convertible preferred stock, net of issuance costs | 49,239 | 22,641 |
Proceeds from issuance of common stock in initial public offering, net of fees | 104,681 | ' |
Proceeds from exercise of stock options, net of early exercise liability | 98 | 5 |
Proceeds from exercise of preferred stock warrants | 1,201 | ' |
Net cash provided by financing activities | 155,219 | 29,655 |
Net change in cash | 127,871 | 18,069 |
Cash at beginning of period | 37,284 | 4,663 |
Cash at end of period | 165,155 | 22,732 |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Purchase of property and equipment in accounts payable and accrued expenses | 19 | 7 |
Conversion of convertible notes payable and accrued interest into convertible preferred stock | ' | 15,982 |
Deferred initial public offering costs in accounts payable and accrued expenses | $555 | ' |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Description of Business and Basis of Presentation | ' |
1. Description of Business and Basis of Presentation | |
Description of Business | |
Otonomy, Inc. (the Company) was incorporated in the state of Delaware on May 6, 2008. The Company is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapeutics for the treatment of diseases and disorders of the ear. The Company’s proprietary technology is designed to deliver drug that is retained in the ear for an extended period of time following a single local administration. Utilizing this technology, the Company has advanced three product candidates into development. AuriProTM is a sustained-exposure formulation of the antibiotic ciprofloxacin for which the Company has recently completed two Phase 3 clinical trials in pediatric patients with middle ear effusion at the time of tympanostomy tube placement surgery. OTO-104 is a sustained-exposure formulation of the steroid dexamethasone that is in a Phase 2b clinical trial for the treatment of patients with Ménière’s disease. OTO-311 is a sustained-exposure formulation of the N-methyl-D-aspartate (NMDA) receptor antagonist gacyclidine in preclinical development as a potential treatment for tinnitus. | |
Initial Public Offering | |
In August 2014, the Company completed its initial public offering (the IPO) of 7,187,500 shares of common stock, which includes the exercise in full by the underwriters of their option to purchase up to 937,500 shares of common stock, at an offering price of $16.00 per share. Proceeds from the IPO were approximately $104.1 million, net of underwriting discounts and commissions and offering-related transaction costs incurred, which included $0.6 million of offering-related transaction costs incurred but not yet paid as of September 30, 2014. In connection with the IPO: (i) the Company’s outstanding shares of convertible preferred stock were automatically converted into 13,619,569 shares of common stock, (ii) the warrants exercisable for Series A convertible preferred stock were automatically converted into warrants exercisable for 142,113 shares of common stock and (iii) the warrants exercisable for Series C convertible preferred stock were exercised and such shares were automatically converted into 228,902 shares of common stock. | |
Reverse Stock Split | |
On July 31, 2014, the Company filed an amendment to its amended and restated certificate of incorporation, affecting a one-for-35.16 reverse stock split of its outstanding common and convertible preferred stock, which was approved by the Company’s board of directors on July 29, 2014. The accompanying condensed financial statements and notes to the condensed financial statements give retroactive effect to the reverse split for all periods presented. | |
Basis of Presentation | |
As of September 30, 2014, the Company has devoted substantially all of its efforts to product development, raising capital, and building infrastructure and has not realized revenues from its planned principal operations. The accompanying condensed financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred operating losses and negative cash flows from operating activities since inception. As of September 30, 2014, the Company had a cash balance of $165.2 million and an accumulated deficit of $92.7 million. The Company anticipates that it will continue to incur net losses into the foreseeable future as it: (i) continues the development and begins commercialization of its product candidates AuriPro, OTO-104 and OTO-311; (ii) works to develop additional product candidates through research and development programs; and (iii) expands its corporate infrastructure. The Company plans to continue to fund its losses from operations and capital funding needs through future debt and/or equity financings or other sources, such as potential collaboration agreements. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, and/or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations, and future prospects. | |
Unaudited Interim Financial Information | |
The accompanying interim condensed financial statements are unaudited. These unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and following the requirements of the United States Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited interim condensed financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position, its results of operations and its cash flows for the periods presented. These statements do not include all disclosures required by GAAP and should be read in conjunction with the Company’s financial statements and accompanying notes for the fiscal year ended December 31, 2013, contained in the Company’s final prospectus dated August 12, 2014 filed by the Company with the SEC on August 13, 2014 pursuant to Rule 424(b) under the Securities Act of 1933, as amended, in connection with the Company’s IPO. The results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results expected for the full fiscal year or any other interim period or any future year or period. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
2. Summary of Significant Accounting Policies | |||||||||
Use of Estimates | |||||||||
The accompanying condensed financial statements have been prepared in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expense during the reporting period. The most significant estimates in the Company’s financial statements relate to clinical trial accruals, equity awards and the valuation of convertible preferred stock warrants. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. | |||||||||
Segment Reporting | |||||||||
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment. | |||||||||
Cash | |||||||||
Cash consists of cash and highly liquid investments with original maturities of three months or less at the date of purchase. Cash is readily available in checking and savings accounts. | |||||||||
Fair Value of Financial Instruments | |||||||||
The carrying value of the Company’s cash, prepaid expenses and other current assets, other long-term assets, accounts payable, accrued expenses, and accrued compensation approximate fair value due to the short-term nature of these items. | |||||||||
Property and Equipment | |||||||||
Property and equipment generally consist of manufacturing equipment, furniture and fixtures, computers, and scientific and office equipment and are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets (generally three to ten years). Leasehold improvements are stated at cost and are depreciated on a straight-line basis over the lesser of the remaining term of the related lease or the estimated useful lives of the assets. Repairs and maintenance costs are charged to expense as incurred. | |||||||||
Clinical Trial Expense Accruals | |||||||||
As part of the process of preparing the Company’s condensed financial statements, the Company is required to estimate expenses resulting from the Company’s obligations under contracts with vendors, clinical research organizations and consultants and under clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided under such contracts. | |||||||||
The Company’s objective is to reflect the appropriate clinical trial expenses in its financial statements by recording those expenses in the period in which services are performed and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured by patient progression and the timing of various aspects of the trial. The Company determines accrual estimates through financial models taking into account discussion with applicable personnel and outside service providers as to the progress or state of its trials. During the course of a clinical trial, the Company adjusts its clinical expense if actual results differ from its estimates. The Company makes estimates of accrued expenses as of each balance sheet date based on the facts and circumstances known at that time. Accordingly, the Company’s clinical trial accruals are dependent upon accurate reporting by contract research organizations and other third-party vendors. | |||||||||
Research and Development | |||||||||
Research and development expenses include the costs associated with the Company’s research and development activities, including salaries, benefits and occupancy costs. Also included in research and development expenses are third-party costs incurred in conjunction with contract manufacturing for the Company’s research and development programs and clinical trials, including the cost of clinical trial drug supply, costs incurred by contract research organizations and regulatory expenses. Research and development costs are expensed as incurred. | |||||||||
Patent Expenses | |||||||||
The Company expenses all costs as incurred in connection with patent applications (including direct application fees, and the legal and consulting expenses related to making such applications) and such costs are included in general and administrative expenses in the accompanying condensed statements of operations. | |||||||||
Convertible Preferred Stock Warrants | |||||||||
Prior to the Company’s IPO, warrants exercisable for shares of the Company’s Series A and Series C convertible preferred stock were classified as liabilities in the accompanying condensed balance sheets based upon the characteristics and provisions of each instrument. Convertible preferred stock warrants were classified as derivative liabilities and were recorded at their fair value on the date of issuance. At each reporting date the convertible preferred stock warrants were revalued, with fair value changes recognized as increases in or decreases to the change in fair value of convertible preferred stock warrant liability in the accompanying condensed statements of operations. | |||||||||
In connection with the IPO, all of the Company’s outstanding warrants to purchase convertible preferred stock were either (i) exercised and the underlying shares of preferred stock were automatically converted into shares of common stock or (ii) converted into warrants to purchase common stock. Prior to the exercise and conversion of the warrants to purchase convertible preferred stock, the Company performed the final revaluation of the warrant liability upon the closing of the IPO in August 2014 and recorded the $2.6 million increase in fair value to change in fair value of convertible preferred stock warrant liability in the accompanying condensed statements of operations. The warrant liability was then reclassified to additional paid-in capital on the accompanying condensed balance sheets. | |||||||||
Stock-based Compensation | |||||||||
The Company accounts for stock-based compensation expense related to stock options and employee stock purchase plan (ESPP) rights by estimating the fair value on the date of grant using the Black-Scholes-Merton option pricing model net of estimated forfeitures. For awards subject to time-based vesting conditions, stock-based compensation expense is recognized using the straight-line method. | |||||||||
The Company accounts for stock options granted to non-employees, including members of the scientific advisory board, using the fair value approach. Stock options granted to non-employees are subject to periodic revaluation over their vesting terms with the related expense being recognized as research and development and/or general and administrative expense in the accompanying condensed statements of operations. | |||||||||
Income Taxes | |||||||||
The accounting guidance for uncertainty in income taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities based on the technical merits of the position. | |||||||||
The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and the tax reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. When the Company establishes or reduces the valuation allowance against its deferred tax assets, its provision for income taxes will increase or decrease, respectively, in the period such determination is made. | |||||||||
Net Loss Per Share | |||||||||
Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, potentially dilutive securities are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive and therefore, basic and diluted net loss per share were the same for all periods presented. | |||||||||
Potentially dilutive securities excluded from the calculation of diluted net loss per share attributable to common stockholders are as follows (in common stock equivalent shares): | |||||||||
Three and Nine Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Convertible preferred stock | — | 6,882,572 | |||||||
Warrants to purchase convertible preferred stock | — | 483,517 | |||||||
Warrants to purchase common stock | 142,113 | — | |||||||
Unvested restricted common stock subject to repurchase | 16,294 | — | |||||||
Options to purchase common stock | 2,058,910 | 373,375 | |||||||
2,217,317 | 7,739,464 | ||||||||
Recently Issued Accounting Standards | |||||||||
In June 2014, new guidance was issued that eliminates the financial reporting distinction between development stage entities and other reporting entities under GAAP, thereby eliminating the requirements to present inception-to-date information in the statements of operations, stockholders’ equity (deficit) and cash flows or label the financial statements as those of a development stage entity. The Company has early adopted, as permitted, the new guidance for its financial statements for the three- and nine-month periods ended September 30, 2014, and therefore has not labeled its financial statements as those of a development stage entity or included any inception-to-date information. The new standards are to be applied retrospectively and impact the presentation of the financial statements, but do not impact the Company’s financial position or results of operations. |
Balance_Sheet_Details
Balance Sheet Details | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Balance Sheet Details | ' | ||||||||
3. Balance Sheet Details | |||||||||
Prepaid and Other Current Assets | |||||||||
Prepaid and other current assets are comprised of the following (in thousands): | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Prepaid clinical trial costs | $ | 1,054 | $ | 1,478 | |||||
Other | 1,123 | 176 | |||||||
Total | $ | 2,177 | $ | 1,654 | |||||
Property and Equipment, Net | |||||||||
Property and equipment, net consists of the following (in thousands): | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Laboratory equipment | $ | 1,088 | $ | 908 | |||||
Manufacturing equipment | 607 | 392 | |||||||
Computer equipment and software | 114 | 93 | |||||||
Leasehold improvements | 67 | 67 | |||||||
Office furniture | 17 | 17 | |||||||
1,893 | 1,477 | ||||||||
Less: accumulated depreciation and amortization | (941 | ) | (794 | ) | |||||
Total | $ | 952 | $ | 683 | |||||
Depreciation expense was $0.1 million for each of the three month periods ended September 30, 2014 and 2013 and $0.2 million for each of the nine month periods ended September 30, 2014 and 2013. | |||||||||
Accrued Expenses | |||||||||
Accrued expenses consist of the following (in thousands): | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Accrued clinical trial costs | $ | 1,892 | $ | 196 | |||||
Accrued other | 594 | 188 | |||||||
Total | $ | 2,486 | $ | 384 | |||||
Notes_Payable_and_Convertible_
Notes Payable and Convertible Preferred Stock Warrants | 9 Months Ended |
Sep. 30, 2014 | |
Text Block [Abstract] | ' |
Notes Payable and Convertible Preferred Stock Warrants | ' |
4. Notes Payable and Convertible Preferred Stock Warrants | |
Notes Payable | |
In August 2012 and October 2012, the Company entered into a note and warrant purchase agreement (the 2012 Convertible Note Agreement) under which the Company issued $8.0 million in secured convertible promissory notes (the 2012 Notes) with a stated interest rate of 8% per annum. In January 2013, the Company issued an additional $7.0 million in secured convertible promissory notes in a subsequent closing under the 2012 Convertible Note Agreement (the 2013 Notes). | |
In connection with the issuance of the 2012 Notes and the 2013 Notes, the Company issued warrants which were convertible into Series C convertible preferred stock. The debt discount was amortized using the effective interest rate method over the term of the convertible notes to interest expense in the accompanying condensed statements of operations. | |
In August 2013, the 2012 Notes and the 2013 Notes in the amount of approximately $16.0 million, including interest, converted into 1,818,191 shares of Series C convertible preferred stock. Concurrent with the closing of the Series C convertible preferred stock, the warrants issued in conjunction with the 2012 Notes and the 2013 Notes converted into warrants for the purchase of an aggregate of 341,404 shares of Series C convertible preferred stock with an exercise price of $8.79 per share. | |
Warrants | |
Outstanding warrants as of December 31, 2013 consisted of warrants to purchase 64,801 shares of Series A convertible preferred stock at an exercise price of $31.092 and warrants to purchase 341,404 shares of Series C convertible preferred stock at an exercise price $8.79 per share. The shares of Series A convertible preferred stock were convertible into shares of common stock at a ratio of 1:2.193204365. The shares of Series C convertible preferred stock were convertible into shares of common stock at a ratio of 1:1. | |
In connection with the closing of the IPO, (i) the Series A convertible preferred stock warrants automatically converted into warrants to purchase 142,113 shares of common stock at an exercise price of $14.1765 per share, which warrants remained outstanding as of September 30, 2014, and (ii) of the 341,404 Series C convertible preferred stock warrants, 204,773 warrants were net exercised for 92,271 shares of Series C convertible preferred stock, the remaining warrants for the purchase of 136,631 shares of Series C convertible preferred stock were cash exercised for proceeds to the Company of $1.2 million, and all of the shares of Series C convertible preferred stock were automatically converted to shares of common stock. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
5. Commitments and Contingencies | |||||||||||||||||
License Agreements | |||||||||||||||||
The following table summarizes costs recognized, in research and development, under the Company’s license agreements and other non-cancellable royalty and milestone obligations (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
License and other fees | $ | 7 | $ | 7 | $ | 19 | $ | 44 | |||||||||
Milestone fees | — | — | — | 100 | |||||||||||||
Total license and related fees | $ | 7 | $ | 7 | $ | 19 | $ | 144 | |||||||||
Intellectual Property Licenses | |||||||||||||||||
The Company has acquired exclusive rights to develop patented rights, information rights and related know-how for the Company’s AuriPro, OTO-104 and OTO-311 product candidates and potential future product candidates under licensing agreements with third parties in the course of its research and development activities. The licensing rights obligate the Company to make payments to the licensors for license fees, milestones, license maintenance fees and royalties. Annual license and maintenance fees related to these agreements is $25,000. The license and maintenance fees will continue until the first commercial sale of a product. In addition, the Company issued 710 shares of common stock as compensation for one of the licenses. The Company is also responsible for patent prosecution costs. | |||||||||||||||||
Under one of these agreements, the Company has achieved five development milestones, totaling $1.2 million, related to its clinical trials for both AuriPro and OTO-104. The Company may be obligated to make additional milestone payments under these agreements as follows (in thousands, except share data): | |||||||||||||||||
Shares of | Cash | ||||||||||||||||
Common Stock | Payments | ||||||||||||||||
Development | 1,066 | $ | 3,235 | ||||||||||||||
Regulatory | 1,066 | 12,670 | |||||||||||||||
Commercialization | — | 1,000 | |||||||||||||||
Total | 2,132 | $ | 16,905 | ||||||||||||||
In addition, the Company may owe royalties of less than five percent on sales of commercial products, if any, developed using these licensed technologies. The Company may also be obligated to pay to the licensors a percentage of fees received if and when the Company sublicenses the technology. As of September 30, 2014, the Company has not yet developed a commercial product using the licensed technologies and it has not entered into any sublicense agreements for the technologies. | |||||||||||||||||
Other Royalty Arrangements | |||||||||||||||||
The Company entered into an agreement related to three provisional patents for AuriPro under which the Company may be obligated to pay a one-time milestone payment of $0.5 million upon the first commercial sale of an approved product and to pay royalties of less than one percent on product sales. The royalties are payable until the later of: (i) the expiration of the last to expire patent owned by the Company in such country covering AuriPro; or (ii) 10 years after the first commercial sale of AuriPro after receipt of regulatory approval for AuriPro in such country. |
Fair_Value
Fair Value | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value | ' | ||||||||||||||||
6. Fair Value | |||||||||||||||||
The accounting guidance defines fair value, establishes a consistency framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance establishes a three-tier fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These tiers are based on the source of the inputs and are as follows: | |||||||||||||||||
Level 1: | Observable inputs such as quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2: | Inputs other than quoted prices in active markets that are observable either directly or indirectly. | ||||||||||||||||
Level 3: | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||
The Company held no financial assets or liabilities measured at fair value on a recurring basis as of September 30, 2014. The following fair value hierarchy tables present information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | |||||||||||||||||
Fair Value Measurement at December 31, 2013 | |||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities: | |||||||||||||||||
Convertible preferred stock warrants(1) | $ | 646 | $ | — | $ | — | $ | 646 | |||||||||
Total liabilities | $ | 646 | $ | — | $ | — | $ | 646 | |||||||||
-1 | Convertible preferred stock warrant liabilities to purchase Series A and Series C convertible preferred stock at December 31, 2013 were classified as Level 3 and were measured using a hybrid of the option pricing model and the PWERM. The key inputs into the models include the probability and timing of expected liquidity events, discount rates and the selection of appropriate market-comparable transactions and multiples to apply to the Company’s various historical and forecasted operational metrics. | ||||||||||||||||
No Level 3 liabilities were outstanding as of September 30, 2014. At December 31, 2013, Level 3 liabilities consisted of convertible preferred stock warrant liabilities. The following table provides a reconciliation of the convertible preferred stock warrant liabilities measured at fair value using Level 3 significant unobservable inputs (in thousands): | |||||||||||||||||
Convertible | |||||||||||||||||
Preferred Stock | |||||||||||||||||
Warrant Liability | |||||||||||||||||
Balance at December 31, 2012 | $ | 2,909 | |||||||||||||||
Issuance of convertible preferred stock warrants | 570 | ||||||||||||||||
Change in fair value | (2,833 | ) | |||||||||||||||
Balance at December 31, 2013 | 646 | ||||||||||||||||
Change in fair value | 3,300 | ||||||||||||||||
Reclassification to additional paid-in capital upon closing of IPO | (3,946 | ) | |||||||||||||||
Balance at September 30, 2014 | $ | — | |||||||||||||||
Changes in the fair value of the convertible preferred stock warrant liability were recognized in change in fair value of convertible preferred stock warrant liability in the accompanying condensed statements of operations. |
Convertible_Preferred_Stock_an
Convertible Preferred Stock and Stockholders' Equity (Deficit) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Convertible Preferred Stock and Stockholders' Equity (Deficit) | ' | ||||||||
7. Convertible Preferred Stock and Stockholders’ Equity (Deficit) | |||||||||
Convertible Preferred Stock | |||||||||
As of December 31, 2013, there were 339,863 shares of Series A convertible preferred stock outstanding, 1,708,076 shares of Series B convertible preferred stock outstanding, and 7,040,026 shares of Series C convertible preferred stock outstanding. In April 2014, the Company completed the sale of 4,126,080 shares of Series D convertible preferred stock to new and existing investors for net cash proceeds of $49.2 million. | |||||||||
In connection with the IPO, all of the Company’s outstanding shares of convertible preferred stock were automatically converted into 13,619,569 shares of common stock. The shares of Series A convertible preferred stock were convertible into shares of common stock at a ratio of 1:2.193204365 at the option of the holder, subject to certain anti-dilution and other adjustments. The shares of Series B convertible preferred stock, Series C convertible preferred stock and Series D convertible preferred stock were convertible into shares of common stock at a ratio of 1:1 at the option of the holder, subject to certain anti-dilution and other adjustments. | |||||||||
No preferred stock dividends were ever paid or declared by the Company. | |||||||||
Common Stock Subject to Repurchase | |||||||||
The Company’s 2010 Equity Incentive Plan (the 2010 Plan) allows for early exercise of certain option awards issued under the plan. As of September 30, 2014, options had been exercised for the purchase of 16,294 shares of common stock, which were unvested and subject to repurchase. Under the authoritative guidance, early exercise is not considered an exercise for accounting purposes and, therefore, any payment for unvested shares is recognized as a liability at the original exercise price. As of September 30, 2014, the Company has recorded an early exercise liability of $54,000 and no shares have been repurchased by the Company. As of December 31, 2013, no options had been early exercised. | |||||||||
Common Stock Reserved for Future Issuance | |||||||||
Common stock reserved for future issuance is as follows (in common equivalent shares): | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Conversion of convertible preferred stock | $ | — | $ | 9,493,489 | |||||
Warrants for the purchase of convertible preferred stock | — | 483,517 | |||||||
Warrants for the purchase of common stock | 142,113 | — | |||||||
Common stock options issued and outstanding | 2,058,910 | 1,235,705 | |||||||
Common stock options available for future grant | 2,602,675 | 537,993 | |||||||
Common stock reserved for issuance under ESPP | 380,000 | — | |||||||
Total common stock reserved for future issuance | $ | 5,183,698 | $ | 11,750,704 | |||||
Stock_Compensation_Plans
Stock Compensation Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock Compensation Plans | ' | ||||||||||||||||
8. Stock Compensation Plans | |||||||||||||||||
2010 Equity Incentive Plan | |||||||||||||||||
The Company granted awards under the 2010 Plan until June 2014. The terms of the 2010 Plan provide for the grant of incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the Code), to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units and stock appreciation rights to the Company’s employees, directors and consultants, and the Company’s parent and subsidiary corporations’ employees and consultants. The compensation committee of the board of directors had the authority to approve the employees and other service providers to whom equity awards were granted and had the authority to determine the terms of each award, subject to the terms of the 2010 Plan, including (i) the number of shares of common stock subject to the award; (ii) when the award becomes exercisable; (iii) the option or stock appreciation right exercise price, which must be at least 100% of the fair market value of the common stock as of the date of grant; and (iv) the duration of the option or stock appreciation right (which may not exceed 10 years). Options granted under the 2010 Plan generally are scheduled to vest over four years, subject to continued service, and subject to certain acceleration of vesting provisions, and expire no later than 10 years from the date of grant. In connection with the adoption of the 2014 Plan, the Company terminated the 2010 Plan for future use and provided that no further equity awards are to be granted under the 2010 Plan. All outstanding awards under the 2010 Plan will continue to be governed by their existing terms. | |||||||||||||||||
2014 Equity Incentive Plan | |||||||||||||||||
In July 2014, the Company’s board of directors adopted and the Company’s stockholders approved a 2014 Equity Incentive Plan (the 2014 Plan), and the 2014 Plan became effective August 11, 2014. The 2014 Plan permits the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to the Company’s employees, directors and consultants and the Company’s parent and subsidiary corporations’ employees and consultants. | |||||||||||||||||
Under the 2014 Plan, a total of 2,606,875 shares of common stock have been reserved for issuance as of July 30, 2014, including 386,875 shares of common stock previously available for issuance under the 2010 Plan. In addition, the shares to be reserved for issuance under the 2014 Plan will also include shares subject to stock options or similar awards granted under the 2010 Plan that expire or terminate without having been exercised in full and shares issued pursuant to awards granted under the Company’s 2010 Plan that are forfeited to or repurchased by the Company. | |||||||||||||||||
The number of shares available for issuance under the 2014 Plan will also include an annual increase on the first day of each fiscal year beginning in 2015, equal to the least of (i) 2,500,000 shares; (ii) 5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as the Company’s board of directors may determine. | |||||||||||||||||
The compensation committee of the board of directors has the authority to approve the employees and other service providers to whom equity awards are granted and to determine the terms of each award, subject to the terms of the 2014 Plan. The compensation committee may determine the number of shares subject to an award, except that the 2014 Plan provides certain limits on the number of awards that may be granted to non-employee members of the board of directors under the 2014 Plan in any fiscal year. Options and stock appreciation rights granted under the 2014 Plan must have a per share exercise price equal to at least 100% of the fair market value of a shares of the common stock as of the date of grant and may not expire later than 10 years from the date of grant. | |||||||||||||||||
During the three and nine months ended September 30, 2014, the number of shares of common stock issued pursuant to stock option exercises was 11,437 and 60,925, respectively. | |||||||||||||||||
2014 Employee Stock Purchase Plan | |||||||||||||||||
In July 2014, the Company’s board of directors adopted and the stockholders approved the Company’s 2014 Employee Stock Purchase Plan (the ESPP), which became effective upon adoption by the Company’s board of directors. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The offering periods generally start on the first trading day on or after June 1 and December 1 of each year and end on the first trading day on or before June 1 and December 1 approximately twenty-four months later, and will include six-month purchase periods. The administrator may, in its discretion, modify the terms of future offering periods. Due to the timing of our initial public offering, the first offering period started on August 12, 2014 and will end on June 1, 2016. | |||||||||||||||||
The ESPP initially authorized the issuance of 380,000 shares of the Company’s common stock pursuant to rights granted to employees for their payroll deductions. The number of shares available for issuance under the ESPP will also include an annual increase on the first day of each fiscal year beginning in 2015, equal to the least of (i) 800,000 shares; (ii) 1.5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as the Company’s board of directors may determine. | |||||||||||||||||
During the three and nine months ended September 30, 2014, no shares of common stock have been issued pursuant to ESPP purchases. | |||||||||||||||||
Stock-based Compensation Expense | |||||||||||||||||
Total non-cash stock-based compensation expense recognized in the accompanying condensed statements of operations is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Research and development | $ | 244 | $ | 14 | $ | 407 | $ | 40 | |||||||||
General and administrative | 243 | 29 | 488 | 85 | |||||||||||||
Total stock-based compensation | $ | 487 | $ | 43 | $ | 895 | $ | 125 | |||||||||
As of September 30, 2014, total unrecognized compensation cost related to stock options was $3.9 million which was expected to be recognized over a remaining weighted-average vesting period of 3.5 years. |
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
As of September 30, 2014, the Company has devoted substantially all of its efforts to product development, raising capital, and building infrastructure and has not realized revenues from its planned principal operations. The accompanying condensed financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred operating losses and negative cash flows from operating activities since inception. As of September 30, 2014, the Company had a cash balance of $165.2 million and an accumulated deficit of $92.7 million. The Company anticipates that it will continue to incur net losses into the foreseeable future as it: (i) continues the development and begins commercialization of its product candidates AuriPro, OTO-104 and OTO-311; (ii) works to develop additional product candidates through research and development programs; and (iii) expands its corporate infrastructure. The Company plans to continue to fund its losses from operations and capital funding needs through future debt and/or equity financings or other sources, such as potential collaboration agreements. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, and/or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations, and future prospects. | |
Unaudited Interim Financial Information | ' |
Unaudited Interim Financial Information | |
The accompanying interim condensed financial statements are unaudited. These unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and following the requirements of the United States Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited interim condensed financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position, its results of operations and its cash flows for the periods presented. These statements do not include all disclosures required by GAAP and should be read in conjunction with the Company’s financial statements and accompanying notes for the fiscal year ended December 31, 2013, contained in the Company’s final prospectus dated August 12, 2014 filed by the Company with the SEC on August 13, 2014 pursuant to Rule 424(b) under the Securities Act of 1933, as amended, in connection with the Company’s IPO. The results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results expected for the full fiscal year or any other interim period or any future year or period. | |
Use of Estimates | ' |
Use of Estimates | |
The accompanying condensed financial statements have been prepared in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expense during the reporting period. The most significant estimates in the Company’s financial statements relate to clinical trial accruals, equity awards and the valuation of convertible preferred stock warrants. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. | |
Segment Reporting | ' |
Segment Reporting | |
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment. | |
Cash | ' |
Cash | |
Cash consists of cash and highly liquid investments with original maturities of three months or less at the date of purchase. Cash is readily available in checking and savings accounts. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The carrying value of the Company’s cash, prepaid expenses and other current assets, other long-term assets, accounts payable, accrued expenses, and accrued compensation approximate fair value due to the short-term nature of these items. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment generally consist of manufacturing equipment, furniture and fixtures, computers, and scientific and office equipment and are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets (generally three to ten years). Leasehold improvements are stated at cost and are depreciated on a straight-line basis over the lesser of the remaining term of the related lease or the estimated useful lives of the assets. Repairs and maintenance costs are charged to expense as incurred. | |
Clinical Trial Expense Accruals | ' |
Clinical Trial Expense Accruals | |
As part of the process of preparing the Company’s condensed financial statements, the Company is required to estimate expenses resulting from the Company’s obligations under contracts with vendors, clinical research organizations and consultants and under clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided under such contracts. | |
The Company’s objective is to reflect the appropriate clinical trial expenses in its financial statements by recording those expenses in the period in which services are performed and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured by patient progression and the timing of various aspects of the trial. The Company determines accrual estimates through financial models taking into account discussion with applicable personnel and outside service providers as to the progress or state of its trials. During the course of a clinical trial, the Company adjusts its clinical expense if actual results differ from its estimates. The Company makes estimates of accrued expenses as of each balance sheet date based on the facts and circumstances known at that time. Accordingly, the Company’s clinical trial accruals are dependent upon accurate reporting by contract research organizations and other third-party vendors. | |
Research and Development | ' |
Research and Development | |
Research and development expenses include the costs associated with the Company’s research and development activities, including salaries, benefits and occupancy costs. Also included in research and development expenses are third-party costs incurred in conjunction with contract manufacturing for the Company’s research and development programs and clinical trials, including the cost of clinical trial drug supply, costs incurred by contract research organizations and regulatory expenses. Research and development costs are expensed as incurred. | |
Patent Expenses | ' |
Patent Expenses | |
The Company expenses all costs as incurred in connection with patent applications (including direct application fees, and the legal and consulting expenses related to making such applications) and such costs are included in general and administrative expenses in the accompanying condensed statements of operations. | |
Convertible Preferred Stock Warrants | ' |
Convertible Preferred Stock Warrants | |
Prior to the Company’s IPO, warrants exercisable for shares of the Company’s Series A and Series C convertible preferred stock were classified as liabilities in the accompanying condensed balance sheets based upon the characteristics and provisions of each instrument. Convertible preferred stock warrants were classified as derivative liabilities and were recorded at their fair value on the date of issuance. At each reporting date the convertible preferred stock warrants were revalued, with fair value changes recognized as increases in or decreases to the change in fair value of convertible preferred stock warrant liability in the accompanying condensed statements of operations. | |
In connection with the IPO, all of the Company’s outstanding warrants to purchase convertible preferred stock were either (i) exercised and the underlying shares of preferred stock were automatically converted into shares of common stock or (ii) converted into warrants to purchase common stock. Prior to the exercise and conversion of the warrants to purchase convertible preferred stock, the Company performed the final revaluation of the warrant liability upon the closing of the IPO in August 2014 and recorded the $2.6 million increase in fair value to change in fair value of convertible preferred stock warrant liability in the accompanying condensed statements of operations. The warrant liability was then reclassified to additional paid-in capital on the accompanying condensed balance sheets. | |
Stock-based Compensation | ' |
Stock-based Compensation | |
The Company accounts for stock-based compensation expense related to stock options and employee stock purchase plan (ESPP) rights by estimating the fair value on the date of grant using the Black-Scholes-Merton option pricing model net of estimated forfeitures. For awards subject to time-based vesting conditions, stock-based compensation expense is recognized using the straight-line method. | |
The Company accounts for stock options granted to non-employees, including members of the scientific advisory board, using the fair value approach. Stock options granted to non-employees are subject to periodic revaluation over their vesting terms with the related expense being recognized as research and development and/or general and administrative expense in the accompanying condensed statements of operations. | |
Income Taxes | ' |
Income Taxes | |
The accounting guidance for uncertainty in income taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities based on the technical merits of the position. | |
The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and the tax reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. When the Company establishes or reduces the valuation allowance against its deferred tax assets, its provision for income taxes will increase or decrease, respectively, in the period such determination is made. | |
Net Loss Per Share | ' |
Net Loss Per Share | |
Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, potentially dilutive securities are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive and therefore, basic and diluted net loss per share were the same for all periods presented. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In June 2014, new guidance was issued that eliminates the financial reporting distinction between development stage entities and other reporting entities under GAAP, thereby eliminating the requirements to present inception-to-date information in the statements of operations, stockholders’ equity (deficit) and cash flows or label the financial statements as those of a development stage entity. The Company has early adopted, as permitted, the new guidance for its financial statements for the three- and nine-month periods ended September 30, 2014, and therefore has not labeled its financial statements as those of a development stage entity or included any inception-to-date information. The new standards are to be applied retrospectively and impact the presentation of the financial statements, but do not impact the Company’s financial position or results of operations. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders | ' | ||||||||
Potentially dilutive securities excluded from the calculation of diluted net loss per share attributable to common stockholders are as follows (in common stock equivalent shares): | |||||||||
Three and Nine Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Convertible preferred stock | — | 6,882,572 | |||||||
Warrants to purchase convertible preferred stock | — | 483,517 | |||||||
Warrants to purchase common stock | 142,113 | — | |||||||
Unvested restricted common stock subject to repurchase | 16,294 | — | |||||||
Options to purchase common stock | 2,058,910 | 373,375 | |||||||
2,217,317 | 7,739,464 | ||||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||
Prepaid and Other Current Assets | ' | ||||||||
Prepaid and other current assets are comprised of the following (in thousands): | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Prepaid clinical trial costs | $ | 1,054 | $ | 1,478 | |||||
Other | 1,123 | 176 | |||||||
Total | $ | 2,177 | $ | 1,654 | |||||
Property and Equipment, Net | ' | ||||||||
Property and equipment, net consists of the following (in thousands): | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Laboratory equipment | $ | 1,088 | $ | 908 | |||||
Manufacturing equipment | 607 | 392 | |||||||
Computer equipment and software | 114 | 93 | |||||||
Leasehold improvements | 67 | 67 | |||||||
Office furniture | 17 | 17 | |||||||
1,893 | 1,477 | ||||||||
Less: accumulated depreciation and amortization | (941 | ) | (794 | ) | |||||
Total | $ | 952 | $ | 683 | |||||
Accrued Expenses | ' | ||||||||
Accrued expenses consist of the following (in thousands): | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Accrued clinical trial costs | $ | 1,892 | $ | 196 | |||||
Accrued other | 594 | 188 | |||||||
Total | $ | 2,486 | $ | 384 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Costs Recognized Under License Agreements and Other Non-Cancellable Royalty and Milestone Obligations | ' | ||||||||||||||||
The following table summarizes costs recognized, in research and development, under the Company’s license agreements and other non-cancellable royalty and milestone obligations (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
License and other fees | $ | 7 | $ | 7 | $ | 19 | $ | 44 | |||||||||
Milestone fees | — | — | — | 100 | |||||||||||||
Total license and related fees | $ | 7 | $ | 7 | $ | 19 | $ | 144 | |||||||||
Schedule of Additional Milestone Payments | ' | ||||||||||||||||
The Company may be obligated to make additional milestone payments under these agreements as follows (in thousands, except share data): | |||||||||||||||||
Shares of | Cash | ||||||||||||||||
Common Stock | Payments | ||||||||||||||||
Development | 1,066 | $ | 3,235 | ||||||||||||||
Regulatory | 1,066 | 12,670 | |||||||||||||||
Commercialization | — | 1,000 | |||||||||||||||
Total | 2,132 | $ | 16,905 | ||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Assets and Liabilities Measured on a Recurring Basis | ' | ||||||||||||||||
The following fair value hierarchy tables present information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | |||||||||||||||||
Fair Value Measurement at December 31, 2013 | |||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities: | |||||||||||||||||
Convertible preferred stock warrants(1) | $ | 646 | $ | — | $ | — | $ | 646 | |||||||||
Total liabilities | $ | 646 | $ | — | $ | — | $ | 646 | |||||||||
-1 | Convertible preferred stock warrant liabilities to purchase Series A and Series C convertible preferred stock at December 31, 2013 were classified as Level 3 and were measured using a hybrid of the option pricing model and the PWERM. The key inputs into the models include the probability and timing of expected liquidity events, discount rates and the selection of appropriate market-comparable transactions and multiples to apply to the Company’s various historical and forecasted operational metrics. | ||||||||||||||||
Reconciliation of the Convertible Preferred Stock Warrant Liabilities Measured at Fair Value, Unobservable Inputs | ' | ||||||||||||||||
The following table provides a reconciliation of the convertible preferred stock warrant liabilities measured at fair value using Level 3 significant unobservable inputs (in thousands): | |||||||||||||||||
Convertible | |||||||||||||||||
Preferred Stock | |||||||||||||||||
Warrant Liability | |||||||||||||||||
Balance at December 31, 2012 | $ | 2,909 | |||||||||||||||
Issuance of convertible preferred stock warrants | 570 | ||||||||||||||||
Change in fair value | (2,833 | ) | |||||||||||||||
Balance at December 31, 2013 | 646 | ||||||||||||||||
Change in fair value | 3,300 | ||||||||||||||||
Reclassification to additional paid-in capital upon closing of IPO | (3,946 | ) | |||||||||||||||
Balance at September 30, 2014 | $ | — | |||||||||||||||
Convertible_Preferred_Stock_an1
Convertible Preferred Stock and Stockholders' Equity (Deficit) (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Schedule of Common Stock Reserved for Future Issuance | ' | ||||||||
Common Stock Reserved for Future Issuance | |||||||||
Common stock reserved for future issuance is as follows (in common equivalent shares): | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Conversion of convertible preferred stock | $ | — | $ | 9,493,489 | |||||
Warrants for the purchase of convertible preferred stock | — | 483,517 | |||||||
Warrants for the purchase of common stock | 142,113 | — | |||||||
Common stock options issued and outstanding | 2,058,910 | 1,235,705 | |||||||
Common stock options available for future grant | 2,602,675 | 537,993 | |||||||
Common stock reserved for issuance under ESPP | 380,000 | — | |||||||
Total common stock reserved for future issuance | $ | 5,183,698 | $ | 11,750,704 | |||||
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Non-cash Stock Based Compensation Expense | ' | ||||||||||||||||
Total non-cash stock-based compensation expense recognized in the accompanying condensed statements of operations is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Research and development | $ | 244 | $ | 14 | $ | 407 | $ | 40 | |||||||||
General and administrative | 243 | 29 | 488 | 85 | |||||||||||||
Total stock-based compensation | $ | 487 | $ | 43 | $ | 895 | $ | 125 | |||||||||
Description_of_Business_and_Ba2
Description of Business and Basis of Presentation - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | |
Series C Convertible Preferred Stock Warrants [Member] | Series C Convertible Preferred Stock Warrants [Member] | IPO [Member] | IPO [Member] | IPO [Member] | Common stock [Member] | Common stock [Member] | Common stock [Member] | Common stock [Member] | Warrants to purchase common stock [Member] | ||||
Series A Preferred Stock Warrants [Member] | Series C Convertible Preferred Stock Warrants [Member] | Series C Convertible Preferred Stock [Member] | IPO [Member] | IPO [Member] | IPO [Member] | Over-Allotment Option [Member] | IPO [Member] | ||||||
Series C Convertible Preferred Stock Warrants [Member] | Convertible preferred stock [Member] | Series C Convertible Preferred Stock [Member] | Series A Preferred Stock Warrants [Member] | ||||||||||
Series C Convertible Preferred Stock Warrants [Member] | |||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 7,187,500 | ' | ' | 937,500 | ' |
Price per share | ' | ' | ' | ' | ' | ' | ' | ' | $16 | ' | ' | ' | ' |
Net proceeds from initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | $104,100,000 | ' | ' | ' | ' |
Offering-related transaction costs incurred but not yet paid | 555,000 | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' |
Shares issued upon conversion of convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | 92,271 | ' | 13,619,569 | 228,902 | ' | ' |
Number of warrants | ' | ' | ' | 341,404 | 341,404 | 142,113 | 341,404 | ' | ' | ' | ' | ' | 142,113 |
Reverse stock split description | 'On July 31, 2014, the Company filed an amendment to its amended and restated certificate of incorporation, affecting a one-for-35.16 reverse stock split of its outstanding common and convertible preferred stock, which was approved by the Company's board of directors on July 29, 2014. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split conversion ratio | 0.028441411 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | 165,155,000 | ' | 37,284,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated deficit | $92,675,000 | ' | $59,557,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' |
Change in fair value of convertible preferred stock warrant liability | $2,632 | $2,632 | ($189) | $3,300 | ($2,713) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the calculation of diluted net loss per share | 2,217,317 | 7,739,464 | 2,217,317 | 7,739,464 |
Convertible preferred stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the calculation of diluted net loss per share | ' | 6,882,572 | ' | 6,882,572 |
Warrants to purchase convertible preferred stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the calculation of diluted net loss per share | ' | 483,517 | ' | 483,517 |
Warrants to purchase common stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the calculation of diluted net loss per share | 142,113 | ' | 142,113 | ' |
Unvested restricted common stock subject to repurchase [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the calculation of diluted net loss per share | 16,294 | ' | 16,294 | ' |
Options to purchase common stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the calculation of diluted net loss per share | 2,058,910 | 373,375 | 2,058,910 | 373,375 |
Balance_Sheet_Details_Prepaid_
Balance Sheet Details - Prepaid and Other Current Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Prepaid clinical trial costs | $1,054 | $1,478 |
Other | 1,123 | 176 |
Total | $2,177 | $1,654 |
Balance_Sheet_Details_Property
Balance Sheet Details - Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,893 | $1,477 |
Less: accumulated depreciation and amortization | -941 | -794 |
Total | 952 | 683 |
Laboratory Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,088 | 908 |
Manufacturing Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 607 | 392 |
Computer Equipment and Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 114 | 93 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 67 | 67 |
Office Furniture [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $17 | $17 |
Balance_Sheet_Details_Addition
Balance Sheet Details - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation expense | $0.10 | $0.10 | $0.20 | $0.20 |
Balance_Sheet_Details_Accrued_
Balance Sheet Details - Accrued Expenses (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued clinical trial costs | $1,892 | $196 |
Accrued other | 594 | 188 |
Total | $2,486 | $384 |
Notes_Payable_and_Convertible_1
Notes Payable and Convertible Preferred Stock Warrants - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 31, 2012 | Jan. 31, 2014 | |
Series C Convertible Preferred Stock [Member] | Series C Convertible Preferred Stock Warrants [Member] | Series C Convertible Preferred Stock Warrants [Member] | Series C Convertible Preferred Stock Warrants [Member] | Series C Convertible Preferred Stock Warrants [Member] | Series A Preferred Stock Warrants [Member] | Series A Preferred Stock Warrants [Member] | 2012 Notes Payable [Member] | 2013 Notes Payable [Member] | |||
IPO [Member] | IPO [Member] | IPO [Member] | |||||||||
Series C Convertible Preferred Stock [Member] | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from convertible notes payable | ' | $7,009,000 | ' | ' | ' | ' | ' | ' | ' | $8,000,000 | $7,000,000 |
Interest rate of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' |
Amount of debt converted | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued upon conversion of debt | ' | ' | 1,818,191 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants | ' | ' | ' | 341,404 | 341,404 | 341,404 | ' | ' | 142,113 | ' | ' |
Exercise price of warrants | ' | ' | ' | $8.79 | $8.79 | ' | ' | $31.09 | $14.18 | ' | ' |
Warrants to purchase shares, outstanding | ' | ' | ' | ' | ' | ' | ' | 64,801 | ' | ' | ' |
Preferred stock warrants conversion ratio | ' | ' | ' | 1 | ' | ' | ' | 2.193204365 | ' | ' | ' |
Shares issued upon conversion of convertible preferred stock | ' | ' | ' | ' | ' | ' | 92,271 | ' | ' | ' | ' |
Shares issued upon conversion of convertible preferred stock | ' | ' | ' | ' | ' | ' | 136,631 | ' | ' | ' | ' |
Proceeds from exercise of warrants | $1,201,000 | ' | ' | ' | ' | $1,200,000 | ' | ' | ' | ' | ' |
Shares converted upon conversion of convertible preferred stock | ' | ' | ' | ' | ' | 204,773 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Summary of Costs Recognized Under License Agreements and Other Non-Cancellable Royalty and Milestone Obligations (Detail) (License Agreements [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
License Agreements [Member] | ' | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' | ' |
License and other fees | $7 | $7 | $19 | $44 |
Milestone fees | ' | ' | ' | 100 |
Total license and related fees | $7 | $7 | $19 | $144 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Milestone | |
Intellectual Property [Member] | ' |
Other Commitments [Line Items] | ' |
Annual license and maintenance fees | $25,000 |
Common stock, shares issued as compensation for license | 710 |
Number of milestones achieved | 5 |
Milestone fees | 1,200,000 |
Maximum percentage of royalties on sales | 5.00% |
Royalty Agreements [Member] | ' |
Other Commitments [Line Items] | ' |
Milestone fees | $500,000 |
Maximum percentage of royalties on sales | 1.00% |
Number of provisional patents | 3 |
Royalty period | '10 years |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Additional Milestone Payments (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
Other Commitments [Line Items] | ' |
Shares of Common Stock | 2,132 |
Cash Payments | $16,905 |
Development [Member] | ' |
Other Commitments [Line Items] | ' |
Shares of Common Stock | 1,066 |
Cash Payments | 3,235 |
Regulatory [Member] | ' |
Other Commitments [Line Items] | ' |
Shares of Common Stock | 1,066 |
Cash Payments | 12,670 |
Commercialization [Member] | ' |
Other Commitments [Line Items] | ' |
Cash Payments | $1,000 |
Fair_Value_Fair_Value_Assets_a
Fair Value - Fair Value Assets and Liabilities Measured on a Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities: | ' | ' |
Convertible preferred stock warrants | $0 | $646 |
Total liabilities | ' | 646 |
Level 1 [Member] | ' | ' |
Liabilities: | ' | ' |
Convertible preferred stock warrants | ' | ' |
Total liabilities | ' | ' |
Level 2 [Member] | ' | ' |
Liabilities: | ' | ' |
Convertible preferred stock warrants | ' | ' |
Total liabilities | ' | ' |
Level 3 [Member] | ' | ' |
Liabilities: | ' | ' |
Convertible preferred stock warrants | ' | 646 |
Total liabilities | ' | $646 |
Fair_Value_Reconciliation_of_t
Fair Value - Reconciliation of the Convertible Preferred Stock Warrant Liabilities Measured at Fair Value, Unobservable Inputs (Detail) (Convertible Preferred Stock Warrant Liability [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Convertible Preferred Stock Warrant Liability [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | $646 | $2,909 |
Issuance of convertible preferred stock warrants | ' | 570 |
Change in fair value | 3,300 | -2,833 |
Reclassification to additional paid-in capital upon closing of IPO | -3,946 | ' |
Ending balance | ' | $646 |
Convertible_Preferred_Stock_an2
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Aug. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Common stock [Member] | Common Stock Subject to Repurchase [Member] | Common Stock Subject to Repurchase [Member] | Convertible preferred stock [Member] | Convertible preferred stock [Member] | Series A Convertible Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series D Convertible Preferred Stock [Member] | Series D Convertible Preferred Stock [Member] | Series C Convertible Preferred Stock [Member] | Series C Convertible Preferred Stock [Member] | |||
IPO [Member] | Common stock [Member] | ||||||||||||||
IPO [Member] | |||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preferred stock outstanding | ' | ' | ' | ' | ' | ' | ' | 0 | 339,863 | 0 | 1,708,076 | ' | ' | 0 | 7,040,026 |
Sale of Convertible Preferred Stock | ' | ' | 7,187,500 | ' | ' | ' | ' | ' | ' | ' | ' | 4,126,080 | ' | ' | ' |
Proceeds from issuance of convertible preferred stock | $49,239,000 | $22,641,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $49,200,000 | ' | ' | ' |
Convertible preferred stock outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,040,026 |
Shares issued upon conversion of convertible preferred stock | ' | ' | ' | ' | ' | ' | 13,619,569 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock conversion ratio | ' | ' | ' | ' | ' | ' | ' | 2.193204365 | ' | 1 | ' | ' | 1 | 1 | ' |
Preferred stock dividends | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Early exercised option awards | ' | ' | ' | 16,294 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Early exercised option awards liability | ' | ' | ' | $54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible_Preferred_Stock_an3
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Schedule of Common Stock Reserved for Future Issuance (Detail) | Sep. 30, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ' | ' |
Total common stock reserved for future issuance | 5,183,698 | 11,750,704 |
Convertible preferred stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total common stock reserved for future issuance | ' | 9,493,489 |
Warrants to purchase convertible preferred stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total common stock reserved for future issuance | ' | 483,517 |
Warrants to purchase common stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total common stock reserved for future issuance | 142,113 | ' |
Common stock options issued and outstanding [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total common stock reserved for future issuance | 2,058,910 | 1,235,705 |
Common stock options available for future grant [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total common stock reserved for future issuance | 2,602,675 | 537,993 |
2014 Employee Stock Purchase Plan [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total common stock reserved for future issuance | 380,000 | ' |
Stock_Compensation_Plans_Addit
Stock Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Sep. 30, 2014 |
2014 Employee Stock Purchase Plan [Member] | 2014 Employee Stock Purchase Plan [Member] | Equity Incentive Plan 2014 [Member] | Equity Incentive Plan 2014 [Member] | Equity Incentive Plan 2014 [Member] | Equity Incentive Plan 2014 [Member] | Equity Incentive Plan 2014 [Member] | Equity Incentive Plan 2014 [Member] | Equity Incentive Plan 2010 [Member] | Equity Incentive Plan 2010 [Member] | Equity Incentive Plan 2010 [Member] | ||||
Maximum [Member] | Common stock [Member] | Common stock [Member] | Maximum [Member] | Minimum [Member] | Option or stock appreciation Right [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price, percentage of fair market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% |
Description of stock option plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Plan, including (i) the number of shares of common stock subject to the award; (ii) when the award becomes exercisable; (iii) the option or stock appreciation right exercise price, which must be at least 100% of the fair market value of the common stock as of the date of grant; and (iv) the duration of the option or stock appreciation right (which may not exceed 10 years). | ' | ' |
Options granted rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Options granted under the 2010 Plan generally are scheduled to vest over four years, subject to continued service, and subject to certain acceleration of vesting provisions, and expire no later than 10 years from the date of grant. |
Stock option plan, vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' |
Contractual term of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | '10 years |
Common shares reserved for issuance | 5,183,698 | 5,183,698 | 11,750,704 | 380,000 | ' | ' | 2,606,875 | ' | ' | ' | ' | ' | 386,875 | ' |
Annual increase in common shares reserved for issuance | ' | ' | ' | 800,000 | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Annual increase in common shares reserved for issuance, percentage of total shares of common stock | ' | ' | ' | 1.50% | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in share issuance, description | ' | ' | ' | 'Issuance under the ESPP will also include an annual increase on the first day of each fiscal year beginning in 2015, equal to the least of (i) 800,000 shares; (ii) 1.5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as the Company's board of directors may determine. | ' | 'The number of shares available for issuance under the 2014 Plan will also include an annual increase on the first day of each fiscal year beginning in 2015, equal to the least of (i) 2,500,000 shares; (ii) 5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as the Company's board of directors may determine. | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock shares issued | ' | ' | ' | ' | ' | ' | ' | 11,437 | 60,925 | ' | ' | ' | ' | ' |
Offering periods under plan | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Eligible compensation contribution | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering period description | ' | ' | ' | 'The offering periods generally start on the first trading day on or after June 1 and December 1 of each year and end on the first trading day on or before June 1 and December 1 approximately twenty-four months later, and will include six-month purchase periods. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock issued pursuant to ESPP purchases | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to stock options | $3.90 | $3.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining weighted-average vesting period | ' | '3 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Compensation_Plans_Summa
Stock Compensation Plans - Summary of Non-cash Stock Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $487 | $43 | $895 | $125 |
Research and development [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 244 | 14 | 407 | 40 |
General and administrative [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $243 | $29 | $488 | $85 |