Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 01, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | REVA Medical, Inc. | |
Entity Central Index Key | 1,496,268 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Trading Symbol | RVA | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,082,778 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 11,845 | $ 25,814 |
Short-term investments | 497 | 995 |
Prepaid expenses and other current assets | 287 | 406 |
Total current assets | 12,629 | 27,215 |
Non-Current Assets: | ||
Property and equipment, net | 2,887 | 2,920 |
Other non-current assets | 60 | 60 |
Total non-current assets | 2,947 | 2,980 |
Total Assets | 15,576 | 30,195 |
Current Liabilities: | ||
Accounts payable | 711 | 651 |
Accrued expenses and other current liabilities | 1,714 | 2,213 |
Total current liabilities | 2,425 | 2,864 |
Long-Term Liabilities: | ||
Convertible Notes Payable | 57,540 | 37,780 |
Common stock warrant liability | 29,940 | 15,389 |
Other long-term liabilities | 1,902 | 611 |
Total Long-term liabilities | 89,382 | 53,780 |
Total Liabilities | $ 91,807 | $ 56,644 |
Commitments and contingencies (Note 7) | ||
Stockholders' Equity (Deficit): | ||
Common stock | $ 3 | $ 3 |
Undesignated preferred stock ― $0.0001 par value; 5,000,000 shares authorized; no shares issued or outstanding | ||
Additional paid-in capital | $ 228,683 | $ 226,094 |
Accumulated deficit | (304,917) | (252,546) |
Total Stockholders' Equity (Deficit) | (76,231) | (26,449) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 15,576 | $ 30,195 |
Class B common stock | ||
Stockholders' Equity (Deficit): | ||
Common stock |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,707,778 | 33,529,778 |
Common stock, shares outstanding | 33,707,778 | 33,529,778 |
Undesignated preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Undesignated preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Expense: | ||||
Research and development | $ 4,404 | $ 2,930 | $ 11,735 | $ 10,782 |
General and administrative | 1,818 | 1,516 | 4,973 | 5,768 |
Loss from operations | (6,222) | (4,446) | (16,708) | (16,550) |
Other Income (Expense): | ||||
Interest income | 1 | 1 | 7 | 6 |
Interest expense | (475) | (1,410) | ||
Loss on change in fair value of convertible notes payable and warrant liability | (28,180) | (34,311) | ||
Other income | 8 | 48 | 51 | 38 |
Other income (expense) | (28,646) | 49 | (35,663) | 44 |
Net Loss and Comprehensive Loss | $ (34,868) | $ (4,397) | $ (52,371) | $ (16,506) |
Net Loss Per Common Share: | ||||
Net loss per share, basic and diluted | $ (1.04) | $ (0.13) | $ (1.56) | $ (0.49) |
Shares used to compute net loss per share, basic and diluted | 33,647,104 | 33,383,894 | 33,543,151 | 33,361,805 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (52,371) | $ (16,506) |
Non-cash adjustments to reconcile net loss to net cash used for operating activities: | ||
Depreciation and amortization | 811 | 780 |
Stock-based compensation | 2,368 | 2,940 |
Interest on convertible notes payable | 1,410 | |
Loss on change in fair value of convertible notes payable and warrant liability | 34,311 | |
Other non-cash expenses | 41 | 14 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 119 | 235 |
Accounts payable | 36 | (647) |
Accrued expenses and other current liabilities | (490) | (858) |
Other long-term liabilities | (119) | (78) |
Net cash used for operating activities | (13,884) | (14,120) |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (754) | (383) |
Maturities of investments | 498 | 1,492 |
Net cash provided by (used for) investing activities | (256) | 1,109 |
Cash Flows from Financing Activities: | ||
Proceeds from issuances of common stock | 221 | 222 |
Costs of issuing convertible notes payable and warrants | (50) | (143) |
Net cash provided by financing activities | 171 | 79 |
Net Decrease in Cash and Cash Equivalents | (13,969) | (12,932) |
Cash and Cash Equivalents at Beginning of Period | 25,814 | 19,229 |
Cash and Cash Equivalents at End of Period | 11,845 | 6,297 |
Supplemental Non-Cash Information: | ||
Property and equipment in accounts payable at end of period | $ 36 | $ 2 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Background and Basis of Presentation | 1. Background : REVA Medical, Inc. (“REVA” or the “Company”) was incorporated in California in 1998 under the name MD3, Inc. In March 2002, we changed our name to REVA Medical, Inc. In October 2010, we reincorporated in Delaware. We established a non-operating wholly owned subsidiary, REVA Germany GmbH, in 2007. In these notes the terms “us,” “we,” or “our” refer to REVA and our consolidated subsidiary unless context dictates otherwise. We do not yet have a product available for sale; our product(s) will become available following completion of required clinical studies with acceptable data and when, and if, we receive regulatory approval. We are currently developing and testing a bioresorbable stent to treat vascular disease in humans. This stent, which we have named Fantom Fantom Fantom In December 2010 we completed an initial public offering (the “IPO”) of our common stock in Australia and registered with the U.S. Securities and Exchange Commission (“SEC”) and, consequently, became an SEC filer. Our stock is traded in the form of CHESS Depository Interests (“CDIs”) on the Australian Securities Exchange (“ASX”); each share of our common stock is equivalent to ten CDIs. Our trading symbol is “RVA.AX.” Basis of Presentation : We have prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the SEC for reporting of interim financial information and, therefore, certain information and footnote disclosures normally included in annual financial statements have been omitted. Accordingly, these interim financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and with the audited financial statements and accompanying footnotes included in our Annual Report on Form 10-K (the “Form 10-K”) for the year ended December 31, 2014. Our consolidated financial statements include the accounts of REVA and our wholly owned subsidiary. All intercompany transactions and balances, if any, have been eliminated in consolidation. These interim consolidated financial statements are unaudited; the consolidated balance sheet as of December 31, 2014 was derived from the Company’s audited financial statements included in our Form 10-K for the year ended December 31, 2014. The interim financial statements have been prepared on the same basis as our annual financial statements and, in our opinion, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results of these interim periods have been included. The results of operations for the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period. Liquidity : In November 2014, we completed a financing to provide ongoing capital for our operations. The financing comprised the issuance of $25,000,000 in convertible notes and 8,750,000 warrants for the purchase of common stock. The convertible notes and the warrants remained outstanding, and we had $12,342,000 in cash and investments available for operations, as of September 30, 2015. Subsequent to our third quarter end, on October 1, 2015, we received cash proceeds of $9,506,000 from the issuance of common stock upon the exercise of 4,375,000 warrants, which provided us cash and investments available for operations of $21,848,000 as of October 1, 2015. We believe this October 1, 2015 balance will be sufficient to fund our operating and capital needs into, and possibly through, the third fiscal quarter of 2016. The remaining 4,375,000 warrants are exercisable at a price of $2.6073 per share; when and if they are exercised, we have the potential to receive $11,407,000 additional cash proceeds. We have experienced recurring losses and negative cash flows from operating activities since our inception and, as of September 30, 2015, we had an accumulated deficit of $304,917,000. Until we generate revenue, and at a level to support our cost structure, we expect to continue to incur substantial operating losses and net cash outflows. Even if we do attain revenue, we may never become profitable and even if we do attain profitable operations, we may not be able to sustain that profitability or positive cash flows on a recurring basis. These conditions, combined with the uncertainty of the timing of receipt of proceeds, if any, from the exercise of warrants to purchase common stock, raise substantial doubt about our ability to continue as a going concern. 1. (continued) Liquidity (continued) : If the remaining warrants are not exercised, or are not exercised to coincide with the timing of our liquidity needs, or even if the warrants are exercised, we may need to raise further capital in the future to fund our operations until such time as we can sustain positive cash flows. If we are unable to raise sufficient additional capital when needed, we may be compelled to reduce the scope of our operations and planned capital expenditures or sell certain assets, including our intellectual property assets. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Use of Estimates : In order to prepare our financial statements in conformity with GAAP, we are required to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Our most significant estimates relate to the fair value of our convertible notes payable, the fair value of our warrant liability, our operating expense accruals, including clinical study expenses, and stock-based compensation. Actual results could differ from our estimates. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2. We measure the fair value of our financial and non-financial assets and liabilities at each reporting date in accordance with the fair value hierarchy according to GAAP, which requires that f air value measurements be classified and disclosed in one of the following three categories: Level 1 – Quoted market prices for identical assets or liabilities in active markets at the measurement date; Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities in active or non-active markets, or other inputs that can be corroborated by observable market data for substantially the full term of an asset or liability; and, Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of an asset or liability, including management’s best estimate of the factors that market participants would use in pricing an asset or liability at the measurement date. We carry our convertible notes payable and common stock warrant liability at fair value. We carry our other financial instruments at amortized cost, which we consider to be reasonable estimates of their respective fair values due to their short-term nature and, therefore, fair value information is not provided in the following table; these other financial instruments include cash, investments, accounts payable, and accrued expenses. Utilizing the lowest level inputs available under the measurement hierarchy, the fair values of our measured financial instruments are as follows: Level 2 Level 3 Fair Value at December 31, 2014: (in thousands) Assets: Certificates of deposit due in one year or less $ 991 $ — Liabilities: Convertible notes payable — 37,780 Common stock warrant liability — 15,389 $ — $ 53,169 Fair Value at September 30, 2015: Assets: Certificates of deposit due in one year or less $ 496 $ — Liabilities: Convertible notes payable — 57,540 Common stock warrant liability — 29,940 $ — $ 87,480 2. Fair Value Measurements We had no Level 1 financial instruments through September 30, 2015. Our Level 2 financial assets consist of certificates of deposit (“CDs”) that are held to maturity and carried at cost; their fair value is determined each reporting period through quoted market prices of similar instruments in active markets. Unrealized losses on these CDs as of December 31, 2014 and September 30, 2015 were $4,000 and $1,000, respectively. Our Level 3 financial liabilities, which are recurring, consist of convertible notes payable (the “Notes”) and warrants for the purchase of common stock, all of which were issued in November 2014. The fair values of these liabilities are determined utilizing a binomial valuation model, which requires use of unobservable inputs that are determined by management, with the assistance of independent experts. These inputs represent our best estimates, but involve certain inherent uncertainties. We used the market value of the underlying stock, a life equal to the contractual life of the financial instrument, incremental borrowing rates and bond yields that correspond to instruments of similar credit worthiness and the instrument’s remaining life, an estimate of volatility based on the historical prices of our trading securities, and we made assumptions as to our abilities to test and commercialize our product(s), to obtain future financings when and if needed, and to comply with the terms and conditions of our Notes. A summary of the assumptions used to value the Notes and warrants is as follows: December 31, September 30, 2014 2015 Market price per share of common stock $3.35 $5.62 Risk-free interest rate 2.30% 1.95% Expected volatility of common stock 87.2% 88.5% Expected life – years 4.87 4.12 Bond yield of equivalent securities 28.4% 29.0% A significant change in the market price per share, expected volatility, or bond yield of equivalent securities, in isolation, would result in significantly higher or lower fair value measurements. In combination, changes in these inputs could result in a significantly higher or lower fair value measurement if the input changes were to be aligned, or could result in a minimally higher or lower fair value measurement if the input changes were of a compensating nature. A total of $28,180,000 and $34,311,000 in unrealized losses arising from the change in fair value on our Level 3 financial liabilities were recorded during the three- and nine-month periods ended September 30, 2015, respectively. Our Level 3 fair value activity through September 30, 2015 is as follows: Level 3 (in thousands) Balance at December 31, 2014 $ 53,169 Losses from Change in Fair Value: Convertible notes payable 5,270 Common stock warrant liability 861 Balance at June 30, 2015 59,300 Losses from Change in Fair Value: Convertible notes payable 14,490 Common stock warrant liability 13,690 Balance at September 30, 2015 $ 87,480 |
Convertible Notes Payable and W
Convertible Notes Payable and Warrants to Purchase Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Convertible Notes Payable And Warrants To Purchase Common Stock Disclosure [Abstract] | |
Convertible Notes Payable and Warrants to Purchase Common Stock | 3. Convertible Notes Payable and Warrants to Purchase Common Stock In November 2014, we issued 250 convertible notes payable, each with a face value of $100,000, for total cash proceeds of $25,000,000. The Notes are convertible into 11,506,155 shares of common stock, which is a conversion rate of $2.17275 per share. The Notes are convertible at any time at the holders’ election, except the Notes will automatically convert in the case where we have received a CE Mark approval for our Fantom Following an analysis of the embedded and derivative features of the Notes upon their issuance in 2014, and a projection of the volatility of their effective interest rates under the cost method, we elected to utilize fair value accounting for the Notes. Management believes the fair value method of accounting provides a more appropriate presentation of these liabilities than would be provided under the cost method. The fair value of the Notes as of September 30, 2015 was calculated to be $57,540,000, which was $32,540,000 more than the unpaid principal balance of the Notes. The increases of $14,490,000 and $19,760,000 in the fair value of the Notes during the three and nine months ended September 30, 2015, respectively, were recorded as losses in the consolidated statement of operations. In connection with the issuance of the Notes in November 2014, we issued warrants to the noteholders to purchase up to 8,750,000 shares of common stock. On October 1, 2015, a total of 4,375,000 warrants were exercised for $9,506,000 cash proceeds. The remaining 4,375,000 warrants are exercisable immediately at $2.6073 per share and expire in November 2019 if not exercised. None of the warrants had been exercised as of September 30, 2015. The fair value of the warrants as of September 30, 2015 was calculated to be $29,940,000. The increases of $13,690,000 and $14,551,000 in fair value of the warrant liability during the three and nine months ended September 30, 2015, respectively, were recorded as losses in the consolidated statement of operations. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Details | 4. Property and Equipment and Accrued Expenses : Components of our property and equipment and accrued expenses and other current liabilities are as follows: December 31, September 30, 2014 2015 (in thousands) Property and Equipment: Furniture, office equipment, and software $ 648 $ 651 Laboratory equipment 5,187 5,839 Leasehold improvements 2,361 2,385 8,196 8,875 Accumulated depreciation and amortization (5,276 ) (5,988 ) $ 2,920 $ 2,887 Accrued Expenses and Other Current Liabilities: Accrued salaries and other employee costs $ 1,315 $ 736 Accrued operating expenses 769 800 Accrued use taxes and other 129 178 $ 2,213 $ 1,714 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. We have reported tax net operating losses since our inception through September 30, 2015; therefore, no provision for income taxes has been recorded since our inception. The net operating tax loss carryforwards arising from our net losses may be available to offset future taxable income for income tax purposes; however, under Internal Revenue Code (“IRC”) Sections 382 and 383, use of the net operating tax loss carryforwards, as well as our research tax credit carryforwards, may be limited based on cumulative changes in ownership. We have established a valuation allowance against our net deferred tax assets due to the uncertainty surrounding the realization of those assets and we, therefore, have no deferred asset or liability balance for any reporting period. We periodically evaluate the recoverability of the deferred tax assets and, when it is determined that it is more-likely-than-not that the deferred tax assets are realizable, the valuation allowance will be reduced. Due to our valuation allowance, future changes in our unrecognized tax benefits will not impact our effective tax rate. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 6. The Plan : Our 2010 Equity Incentive Plan, as amended (the “Plan”), provides for grants of incentive and non-qualified stock options for purchase of our common stock at a price per share equal to the closing market price on the date of grant and for awards of restricted stock units and restricted stock for no consideration payable by the recipient. The number of shares reserved for issuance under the Plan may be increased annually by up to three percent of the outstanding stock of the Company and on January 1, 2015, an additional 1,002,893 shares were reserved for issuance under the Plan. An aggregate of 7,956,153 shares are reserved for issuance under the Plan as of September 30, 2015. All stock issuances under the Plan are made with new shares from our authorized but unissued common stock. The term of grants and awards under the Plan may not exceed ten years. Employees, non-employee directors, and consultants are eligible to participate in the Plan. For purposes of determining stock-based compensation expense, we include non-employee directors with employees; we account for consultant compensation expense separately. Option activity under the Plan is as follows Weighted Average Options Exercise Outstanding Price Balance at December 31, 2013 4,046,650 $7.15 Granted 637,000 $3.53 Cancelled (180,500 ) $6.61 Exercised (259,725 ) $0.95 Balance at December 31, 2014 4,243,425 $7.01 Granted 2,152,500 $4.50 Cancelled (232,342 ) $2.85 Exercised (178,000 ) $1.25 Balance at September 30, 2015 5,985,583 $6.44 The majority of options granted by the Company vest over four years, with 25 percent vesting on the one-year anniversary of the vesting commencement date and 75 percent vesting in equal monthly installments thereafter. Those options are exercisable at any time but, if exercised, are subject to a lapsing right of repurchase by us at the exercise price until fully vested. During March 2015, we granted a total of 316,000 options that vest based on certain performance achievements of the Company. We estimated the vesting term, which ranges from approximately nine months to two years with a weighted average vesting term of 15 months, on the date of grant based on our internal timelines and operating projections. No tax benefits arising from stock-based compensation have been recognized in the consolidated statements of operations and comprehensive loss through September 30, 2015. 6. (continued) The Plan (continued): During July 2012, January 2013, and May 2013 we awarded 33,000 shares, 40,000 shares, and 47,500 shares, respectively, of restricted stock; 25 percent of each award vests on each annual anniversary date of the award. Through September 30, 2015, none of the restricted stock had been cancelled. During March 2015, we awarded 824,200 restricted stock units (“RSUs”) to employees. These RSUs vest based on certain performance achievements of the Company; we estimated the vesting term, which ranges from approximately 14 months to two years with a weighted average vesting term of 17 months, on the date of award based on our internal timelines and operating projections. During May 2015, we awarded 160,000 RSUs to employee and non-employee directors; such RSUs vest on the earlier of May 26, 2016 or one day prior to our 2016 annual stockholder meeting. Each RSU entitles the recipient to one share of our common stock upon vesting. Through September 30, 2015, none of the RSUs had vested and none had been cancelled. Grants and Awards to Employees : We account for option grants, restricted stock awards, and RSU awards to employees based on their estimated fair values on the date of grant or award, with the resulting stock-based compensation recorded over the requisite service period on a straight-line basis. For the options and RSUs that vest upon performance achievements, we record only the compensation expense for the performance targets that are probable of being achieved and we record such expense on a straight-line basis over the vesting period. During the nine months ended September 30, 2015, we determined that two of the three performance targets for our performance-based awards were probable of being achieved and, therefore, recorded expense for those awards only. Stock-based compensation arising from employee options and awards under the Plan is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Employee Stock-Based Compensation: (in thousands) Research and development expense $ 282 $ 448 $ 855 $ 1,162 General and administrative expense 465 535 2,026 1,179 $ 747 $ 983 $ 2,881 $ 2,341 The fair value of restricted stock and RSU awards is equal to the closing market price of our common stock on the date of award. The fair value of options granted was estimated on the date of grant using the following weighted- average assumptions: Nine Months Ended September 30, 2014 2015 Risk-free interest rate 2.33% 1.82% Expected volatility of common stock 59.3% 55.6% Expected life in years 6.14 6.16 Dividend yield 0% 0% The assumed risk-free interest rate was based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected life of the option. The assumed volatility was calculated from the historical market prices of a selected group of publicly traded companies considered to be our peers; we use peer group data due to the fact that we have limited historical trading data. For options that vest based on passage of time, the expected option life was calculated using the simplified method under the accounting standard for stock compensation and a ten-year option expiration; we use the simplified method because we do not yet have adequate history as a public company to establish a reasonable expected life. For options that vest based on performance achievements, the expected life was calculated based on the requisite service periods estimated by management and a ten-year option expiration. The expected dividend yield of zero reflects that we have not paid cash dividends since inception and do not intend to pay cash dividends in the foreseeable future. The options granted to employees during the nine months ended September 30, 2015 had a weighted average grant date fair value of $2.40. The aggregate intrinsic value of options exercised during the nine months ended September 30, 2014 and 2015 was $561,000 and $417,000, respectively. 6. (continued) Stock Options to Consultants : We account for stock options granted to consultants at their fair value. Under this method, the fair value is estimated at each reporting date during the vesting period using the Black-Scholes option-pricing model. The resulting stock-based compensation expense, or income if the fair value declines in a reporting period, is recorded over the consultant’s service period. Options to purchase 110,000 shares of common stock were granted to consultants during the nine months ended September 30, 2014; no options were granted to consultants during the nine months ended September 30, 2015. All stock options granted to consultants had either vested or been cancelled as of March 31, 2015; therefore, no compensation expense was recorded during the three months ended September 30, 2015. Stock-based compensation expense or (income) arising from consultant options granted under the Plan is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Consultant Stock-Based Compensation: (in thousands) Research and development expense $ (6 ) $ — $ 67 $ — General and administrative expense 16 — (8 ) 27 $ 10 $ — $ 59 $ 27 The weighted-average fair value of unvested consultant options at September 30, 2014 was estimated to be $1.15 per share based on weighted-average assumptions of a risk-free interest rate of 2.47 percent, volatility of 58.7 percent, an option life of 9.19 years, and a dividend yield of zero percent. The assumed risk-free interest rate was based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected life of the option. The assumed volatility was calculated from the historical market prices of a selected group of publicly traded companies considered to be our peers; we use peer group data due to the fact that we have limited historical trading data. The expected option life is the remaining term of the option. The expected dividend yield of zero reflects that we have not paid cash dividends since inception and do not intend to pay cash dividends in the foreseeable future. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies We have licensed certain patents and other intellectual property rights related to the composition and coating of our bioresorbable stent and our other biomaterial products. Terms of these licenses include provisions for royalty payments on any future sales of products, if any, utilizing this technology, with provisions for minimum royalties once product sales begin. The amount of royalties varies depending upon type of product, use of product, stage of product, location of sale, and ultimate sales volume, and ranges from a minimum of approximately $25 per unit to a maximum of approximately $100 per unit sold, with license provisions for escalating minimum royalties that could be as high as $2.2 million per year. Additionally, in the event we sublicense the technology and receive certain milestone payments, the licenses require that up to 40 percent of the milestone amount be paid to the licensors. Additional terms of the technology licenses include annual licensing payments of $175,000 until the underlying technology has been commercialized. Terms of the licenses also include other payments to occur during commercialization that could total $950,000, payment of $350,000 upon a change in control of ownership, payments of up to $300,000 annually to extend filing periods related to certain technology, and payment of patent filing, maintenance, and defense fees. The license terms remain in effect until the last patent expires. |
Net Loss Per Common Share
Net Loss Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | 8. 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 for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common share equivalents outstanding for the period determined using the treasury-stock method and the if-converted method, as applicable. For purpose of this calculation, common stock options and restricted stock subject to forfeiture are considered to be common stock equivalents; common share equivalents are included in the calculation of diluted net loss per share only when their effect is dilutive. The following weighted average shares were excluded from the computations of diluted net loss per share because including them would have been antidilutive. Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Weighted Average Shares Excluded from EPS: Options to purchase common stock 4,408,842 4,466,191 4,384,484 4,425,491 Unvested restricted stock 83,559 53,435 94,992 64,869 Restricted stock units — 984,200 — 696,356 Warrants to purchase common stock — 8,750,000 — 8,750,000 Common share equivalents of convertible notes — 11,506,156 — 11,506,156 4,492,401 25,759,982 4,479,476 25,442,872 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events On October 1, 2015, the Company received cash proceeds of $9,506,000 and issued 4,375,000 shares of common stock from the exercise of warrants. Following the exercise, a total of 38,082,778 shares of common stock were outstanding and 4,375,000 warrants remained outstanding. |
Background and Basis of Prese15
Background and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation : We have prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the SEC for reporting of interim financial information and, therefore, certain information and footnote disclosures normally included in annual financial statements have been omitted. Accordingly, these interim financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and with the audited financial statements and accompanying footnotes included in our Annual Report on Form 10-K (the “Form 10-K”) for the year ended December 31, 2014. Our consolidated financial statements include the accounts of REVA and our wholly owned subsidiary. All intercompany transactions and balances, if any, have been eliminated in consolidation. These interim consolidated financial statements are unaudited; the consolidated balance sheet as of December 31, 2014 was derived from the Company’s audited financial statements included in our Form 10-K for the year ended December 31, 2014. The interim financial statements have been prepared on the same basis as our annual financial statements and, in our opinion, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results of these interim periods have been included. The results of operations for the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period. |
Liquidity | Liquidity : In November 2014, we completed a financing to provide ongoing capital for our operations. The financing comprised the issuance of $25,000,000 in convertible notes and 8,750,000 warrants for the purchase of common stock. The convertible notes and the warrants remained outstanding, and we had $12,342,000 in cash and investments available for operations, as of September 30, 2015. Subsequent to our third quarter end, on October 1, 2015, we received cash proceeds of $9,506,000 from the issuance of common stock upon the exercise of 4,375,000 warrants, which provided us cash and investments available for operations of $21,848,000 as of October 1, 2015. We believe this October 1, 2015 balance will be sufficient to fund our operating and capital needs into, and possibly through, the third fiscal quarter of 2016. The remaining 4,375,000 warrants are exercisable at a price of $2.6073 per share; when and if they are exercised, we have the potential to receive $11,407,000 additional cash proceeds. We have experienced recurring losses and negative cash flows from operating activities since our inception and, as of September 30, 2015, we had an accumulated deficit of $304,917,000. Until we generate revenue, and at a level to support our cost structure, we expect to continue to incur substantial operating losses and net cash outflows. Even if we do attain revenue, we may never become profitable and even if we do attain profitable operations, we may not be able to sustain that profitability or positive cash flows on a recurring basis. These conditions, combined with the uncertainty of the timing of receipt of proceeds, if any, from the exercise of warrants to purchase common stock, raise substantial doubt about our ability to continue as a going concern. 1. (continued) Liquidity (continued) : If the remaining warrants are not exercised, or are not exercised to coincide with the timing of our liquidity needs, or even if the warrants are exercised, we may need to raise further capital in the future to fund our operations until such time as we can sustain positive cash flows. If we are unable to raise sufficient additional capital when needed, we may be compelled to reduce the scope of our operations and planned capital expenditures or sell certain assets, including our intellectual property assets. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. |
Use of Estimates | Use of Estimates : In order to prepare our financial statements in conformity with GAAP, we are required to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Our most significant estimates relate to the fair value of our convertible notes payable, the fair value of our warrant liability, our operating expense accruals, including clinical study expenses, and stock-based compensation. Actual results could differ from our estimates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values of investments and liabilities, determined from level 2 and 3 inputs | Level 2 Level 3 Fair Value at December 31, 2014: (in thousands) Assets: Certificates of deposit due in one year or less $ 991 $ — Liabilities: Convertible notes payable — 37,780 Common stock warrant liability — 15,389 $ — $ 53,169 Fair Value at September 30, 2015: Assets: Certificates of deposit due in one year or less $ 496 $ — Liabilities: Convertible notes payable — 57,540 Common stock warrant liability — 29,940 $ — $ 87,480 |
Summary of assumptions used to value the Notes and warrants | December 31, September 30, 2014 2015 Market price per share of common stock $3.35 $5.62 Risk-free interest rate 2.30% 1.95% Expected volatility of common stock 87.2% 88.5% Expected life – years 4.87 4.12 Bond yield of equivalent securities 28.4% 29.0% |
Summary of fair value of financial liabilities determined from "Level 3" inputs | Level 3 (in thousands) Balance at December 31, 2014 $ 53,169 Losses from Change in Fair Value: Convertible notes payable 5,270 Common stock warrant liability 861 Balance at June 30, 2015 59,300 Losses from Change in Fair Value: Convertible notes payable 14,490 Common stock warrant liability 13,690 Balance at September 30, 2015 $ 87,480 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheet Details [Abstract] | |
Schedule of Property and Equipment | Property and Equipment and Accrued Expenses : Components of our property and equipment and accrued expenses and other current liabilities are as follows: December 31, September 30, 2014 2015 (in thousands) Property and Equipment: Furniture, office equipment, and software $ 648 $ 651 Laboratory equipment 5,187 5,839 Leasehold improvements 2,361 2,385 8,196 8,875 Accumulated depreciation and amortization (5,276 ) (5,988 ) $ 2,920 $ 2,887 Accrued Expenses and Other Current Liabilities: Accrued salaries and other employee costs $ 1,315 $ 736 Accrued operating expenses 769 800 Accrued use taxes and other 129 178 $ 2,213 $ 1,714 |
Schedule of Accrued Expenses and Other Current Liabilities | December 31, September 30, 2014 2015 (in thousands) Property and Equipment: Furniture, office equipment, and software $ 648 $ 651 Laboratory equipment 5,187 5,839 Leasehold improvements 2,361 2,385 8,196 8,875 Accumulated depreciation and amortization (5,276 ) (5,988 ) $ 2,920 $ 2,887 Accrued Expenses and Other Current Liabilities: Accrued salaries and other employee costs $ 1,315 $ 736 Accrued operating expenses 769 800 Accrued use taxes and other 129 178 $ 2,213 $ 1,714 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of the option activity under the plan | Weighted Average Options Exercise Outstanding Price Balance at December 31, 2013 4,046,650 $7.15 Granted 637,000 $3.53 Cancelled (180,500 ) $6.61 Exercised (259,725 ) $0.95 Balance at December 31, 2014 4,243,425 $7.01 Granted 2,152,500 $4.50 Cancelled (232,342 ) $2.85 Exercised (178,000 ) $1.25 Balance at September 30, 2015 5,985,583 $6.44 |
Equity awards to employees | |
Schedule of the expense (income) recorded under the plan | Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Employee Stock-Based Compensation: (in thousands) Research and development expense $ 282 $ 448 $ 855 $ 1,162 General and administrative expense 465 535 2,026 1,179 $ 747 $ 983 $ 2,881 $ 2,341 |
Schedule of the weighted-average assumptions used to estimate fair value of options granted | Nine Months Ended September 30, 2014 2015 Risk-free interest rate 2.33% 1.82% Expected volatility of common stock 59.3% 55.6% Expected life in years 6.14 6.16 Dividend yield 0% 0% |
Equity awards to consultants | |
Schedule of the expense (income) recorded under the plan | Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Consultant Stock-Based Compensation: (in thousands) Research and development expense $ (6 ) $ — $ 67 $ — General and administrative expense 16 — (8 ) 27 $ 10 $ — $ 59 $ 27 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average shares excluded from the computation of diluted net loss per share | Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Weighted Average Shares Excluded from EPS: Options to purchase common stock 4,408,842 4,466,191 4,384,484 4,425,491 Unvested restricted stock 83,559 53,435 94,992 64,869 Restricted stock units — 984,200 — 696,356 Warrants to purchase common stock — 8,750,000 — 8,750,000 Common share equivalents of convertible notes — 11,506,156 — 11,506,156 4,492,401 25,759,982 4,479,476 25,442,872 |
Background and Basis of Prese20
Background and Basis of Presentation (Details) | Oct. 01, 2015USD ($)shares | Nov. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2015USD ($)itemshares | Dec. 31, 2014USD ($) | Dec. 31, 2010 |
Background and Basis of Presentation | |||||
Number of patients enrolled in a clinical trial of bioresorbable stent product | item | 110 | ||||
Common Stock Conversion Rate | 10 | ||||
Liquidity | |||||
Cash and investments | $ 12,342,000 | ||||
Proceeds from notes payable and warrants | $ 25,000,000 | ||||
Warrants issued to purchase common stock (in shares) | shares | 8,750,000 | ||||
Retained Earnings (Accumulated Deficit) | $ (304,917,000) | $ (252,546,000) | |||
Subsequent Event | |||||
Liquidity | |||||
Proceeds from exercise of warrants | $ 9,506,000 | ||||
Cash and investments | $ 21,848,000 | ||||
Warrants to purchase common stock | |||||
Liquidity | |||||
Warrants exercised | shares | 0 | ||||
Convertible rate into common stock | $ / shares | $ 2.6073 | ||||
Warrants to purchase common stock | Subsequent Event | |||||
Liquidity | |||||
Warrants exercised | shares | 4,375,000 | ||||
Expected | Maximum | |||||
Liquidity | |||||
Proceeds from exercise of warrants | $ 11,407,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Certificates of deposit due in one year or less | $ 497,000 | $ 995,000 | ||||
Convertible Notes Payable | 57,540,000 | 37,780,000 | ||||
Common stock warrant liability | $ 29,940,000 | $ 15,389,000 | ||||
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | ||||||
Market price per share of common stock | $ 5.62 | $ 3.35 | ||||
Risk-free interest rate | 1.95% | 2.30% | ||||
Expected volatility of common stock | 88.50% | 87.20% | ||||
Expected life – years | 4 years 1 month 13 days | 4 years 10 months 13 days | ||||
Bond yield of equivalent securities | 29.00% | 28.40% | ||||
Unrealized gains (losses) arising from change in fair value of Level 3 financial liabilities | $ (28,180,000) | $ (34,311,000) | ||||
Losses/(Gains) from Change in Fair Value: | ||||||
Convertible notes payable | 14,490,000 | 19,760,000 | ||||
Common stock warrant liability | 13,690,000 | 14,551,000 | ||||
Level 2 | ||||||
Unrealized losses | $ 1,000,000 | $ 4,000,000 | ||||
Level 2 | Certificates of Deposit | ||||||
Certificates of deposit due in one year or less | 496,000 | 991,000 | ||||
Level 3 | ||||||
Convertible Notes Payable | 57,540,000 | 37,780,000 | ||||
Common stock warrant liability | 29,940,000 | 15,389,000 | ||||
Liabilities | 87,480,000 | $ 53,169,000 | 53,169,000 | $ 53,169,000 | $ 87,480,000 | $ 53,169,000 |
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract] | ||||||
Unrealized gains (losses) arising from change in fair value of Level 3 financial liabilities | (28,180,000) | (34,311,000) | ||||
Financial Liabilities Fair Value Disclosure. | ||||||
Beginning balance | 59,300,000 | 53,169,000 | 53,169,000 | |||
Losses/(Gains) from Change in Fair Value: | ||||||
Convertible notes payable | 14,490,000 | 5,270,000 | ||||
Common stock warrant liability | 13,690,000 | 861,000 | ||||
Ending balance | $ 87,480,000 | $ 59,300,000 | $ 87,480,000 | $ 53,169,000 |
Convertible Notes Payable and22
Convertible Notes Payable and Warrants to Purchase Common Stock (Details) | Oct. 01, 2015USD ($)shares | Nov. 30, 2014USD ($)itemNote$ / sharesshares | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)shares | Dec. 31, 2014USD ($) |
Number of convertible notes payable | Note | 250 | ||||
Proceeds from notes payable and warrants | $ 25,000,000 | ||||
Convertible Notes Payable | $ 57,540,000 | $ 57,540,000 | $ 37,780,000 | ||
Convertible notes excluding unpaid principal balance | 32,540,000 | ||||
Increase (decrease) in fair value of Notes | 14,490,000 | 19,760,000 | |||
Warrants issued to purchase common stock (in shares) | shares | 8,750,000 | ||||
Common stock warrant liability | 29,940,000 | 29,940,000 | $ 15,389,000 | ||
Increase (decrease) in fair value of Warrants | $ 13,690,000 | $ 14,551,000 | |||
Subsequent Event | |||||
Proceeds from exercise of warrants | $ 9,506,000 | ||||
Warrants to purchase common stock | |||||
Convertible rate into common stock | $ / shares | $ 2.6073 | ||||
Warrants exercised | shares | 0 | ||||
Warrants to purchase common stock | Subsequent Event | |||||
Warrants exercised | shares | 4,375,000 | ||||
Convertible Notes Payable | |||||
Face Amount | $ 100,000 | ||||
Number of converted shares of common stock | shares | 11,506,155 | ||||
Convertible rate into common stock | $ / shares | $ 2.17275 | ||||
Consecutive trading days | item | 20 | ||||
Interest rate (as a percent) | 7.54% | ||||
Minimum | Convertible Notes Payable | |||||
Market trading price | $ / shares | $ 0.60 |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property and Equipment: | ||
Property and equipment, gross | $ 8,875 | $ 8,196 |
Accumulated depreciation and amortization | (5,988) | (5,276) |
Property and equipment, net | 2,887 | 2,920 |
Accrued Expenses and Other Current Liabilities: | ||
Accrued salaries and other employee costs | 736 | 1,315 |
Accrued operating expenses | 800 | 769 |
Accrued use taxes and other | 178 | 129 |
Accrued expenses and other current liabilities, total | 1,714 | 2,213 |
Furniture, office equipment, and software | ||
Property and Equipment: | ||
Property and equipment, gross | 651 | 648 |
Laboratory equipment | ||
Property and Equipment: | ||
Property and equipment, gross | 5,839 | 5,187 |
Leasehold improvements | ||
Property and Equipment: | ||
Property and equipment, gross | $ 2,385 | $ 2,361 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | $ 0 |
Deferred tax assets | 0 |
Deferred tax liability | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | Jan. 02, 2015 | May. 31, 2015 | Mar. 31, 2015 | May. 31, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Stock-Based Compensation | |||||||||
Granted (in shares) | 2,152,500 | 637,000 | |||||||
Additional information related to fair values of options granted | |||||||||
Granted (in shares) | 2,152,500 | 637,000 | |||||||
Equity awards to employees | |||||||||
Stock-Based Compensation | |||||||||
Term of options granted under the plan | 10 years | ||||||||
Additional information related to fair values of options granted | |||||||||
Expiration term | 10 years | ||||||||
Weighted average grant date fair value (in dollars per share) | $ 2.40 | ||||||||
Intrinsic value of options exercised | $ 417,000 | $ 561,000 | |||||||
Risk-free interest rate (as a percent) | 1.82% | 2.33% | |||||||
Expected volatility of common stock (as a percent) | 55.60% | 59.30% | |||||||
Expected life | 6 years 1 month 28 days | 6 years 1 month 21 days | |||||||
Dividend yield (as a percent) | 0.00% | 0.00% | |||||||
Equity awards to consultants | |||||||||
Stock-Based Compensation | |||||||||
Granted (in shares) | 0 | 110,000 | |||||||
Additional information related to fair values of options granted | |||||||||
Weighted average grant date fair value (in dollars per share) | $ 1.15 | ||||||||
Granted (in shares) | 0 | 110,000 | |||||||
Risk-free interest rate (as a percent) | 2.47% | ||||||||
Expected volatility of common stock (as a percent) | 58.70% | ||||||||
Expected life | 9 years 2 months 9 days | ||||||||
Dividend yield (as a percent) | 0.00% | ||||||||
2010 Equity Incentive Plan [Member] | |||||||||
Stock-Based Compensation | |||||||||
Number of shares added in reserve | 1,002,893 | ||||||||
Total number of shares in reserve with additional shares under the Plan | 7,956,153 | ||||||||
Vesting periods | 4 years | ||||||||
Tax benefits from stock based compensation | $ 0 | ||||||||
2010 Equity Incentive Plan [Member] | Share-based Compensation Award, Tranche One | |||||||||
Stock-Based Compensation | |||||||||
Vesting percentage | 25.00% | ||||||||
2010 Equity Incentive Plan [Member] | Share-based Compensation Award, Tranche Two | |||||||||
Stock-Based Compensation | |||||||||
Vesting percentage | 75.00% | ||||||||
2010 Equity Incentive Plan [Member] | Equity awards to employees | |||||||||
Stock-Based Compensation | |||||||||
Granted (in shares) | 316,000 | ||||||||
Additional information related to fair values of options granted | |||||||||
Granted (in shares) | 316,000 | ||||||||
2010 Equity Incentive Plan [Member] | Restricted stock | |||||||||
Stock-Based Compensation | |||||||||
Annual vesting percent | 25.00% | 25.00% | 25.00% | ||||||
Shares of restricted stock awarded | 47,500 | 40,000 | 33,000 | ||||||
Shares of restricted stock cancelled | 0 | ||||||||
2010 Equity Incentive Plan [Member] | Restricted stock units | |||||||||
Stock-Based Compensation | |||||||||
Shares of restricted stock awarded | 0 | ||||||||
Shares of restricted stock cancelled | 0 | ||||||||
Number of shares awarded | 160,000 | 824,200 | |||||||
Employee share of common stock upon vesting | 1 | ||||||||
Maximum | 2010 Equity Incentive Plan [Member] | |||||||||
Stock-Based Compensation | |||||||||
Increment in the number of shares reserved under the Plan annually (as a percent) | 3.00% | ||||||||
Term of options granted under the plan | 10 years | ||||||||
Additional information related to fair values of options granted | |||||||||
Expiration term | 10 years | ||||||||
Maximum | 2010 Equity Incentive Plan [Member] | Equity awards to employees | |||||||||
Stock-Based Compensation | |||||||||
Vesting period | 2 years | ||||||||
Maximum | 2010 Equity Incentive Plan [Member] | Restricted stock units | |||||||||
Stock-Based Compensation | |||||||||
Vesting period | 2 years | ||||||||
Weighted Average [Member] | 2010 Equity Incentive Plan [Member] | Equity awards to employees | |||||||||
Stock-Based Compensation | |||||||||
Vesting period | 15 months | ||||||||
Weighted Average [Member] | 2010 Equity Incentive Plan [Member] | Restricted stock units | |||||||||
Stock-Based Compensation | |||||||||
Vesting period | 17 months | ||||||||
Minimum | 2010 Equity Incentive Plan [Member] | Equity awards to employees | |||||||||
Stock-Based Compensation | |||||||||
Vesting period | 9 months | ||||||||
Minimum | 2010 Equity Incentive Plan [Member] | Restricted stock units | |||||||||
Stock-Based Compensation | |||||||||
Vesting period | 14 months |
Stock-Based Compensation (Det26
Stock-Based Compensation (Details 1) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Options Outstanding | ||
Balance at the beginning of period (in shares) | 4,243,425 | 4,046,650 |
Granted (in shares) | 2,152,500 | 637,000 |
Cancelled (in shares) | (232,342) | (180,500) |
Exercised (in shares) | (178,000) | (259,725) |
Balance at the end of period (in shares) | 5,985,583 | 4,243,425 |
Weighted Average Exercise Price | ||
Balance at the beginning of period (in dollars per share) | $ 7.01 | $ 7.15 |
Granted (in dollars per share) | 4.50 | 3.53 |
Cancelled (in dollars per share) | 2.85 | 6.61 |
Exercised (in dollars per share) | 1.25 | 0.95 |
Balance at the end of period (in dollars per share) | $ 6.44 | $ 7.01 |
Stock-Based Compensation (Det27
Stock-Based Compensation (Details 2) - Equity awards to employees - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Stock-Based Compensation: | ||||
Total stock-based compensation | $ 983 | $ 747 | $ 2,341 | $ 2,881 |
Research and development expense | ||||
Employee Stock-Based Compensation: | ||||
Total stock-based compensation | 448 | 282 | 1,162 | 855 |
General and administrative expense | ||||
Employee Stock-Based Compensation: | ||||
Total stock-based compensation | $ 535 | $ 465 | $ 1,179 | $ 2,026 |
Stock-Based Compensation (Det28
Stock-Based Compensation (Details 3) - Equity awards to employees | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Additional information related to fair values of options granted | ||
Risk-free interest rate (as a percent) | 1.82% | 2.33% |
Expected volatility of common stock (as a percent) | 55.60% | 59.30% |
Expected life | 6 years 1 month 28 days | 6 years 1 month 21 days |
Dividend yield (as a percent) | 0.00% | 0.00% |
Stock-Based Compensation (Det29
Stock-Based Compensation (Details 4) - Equity awards to consultants - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Additional information related to fair values of options granted | |||
Total stock-based compensation | $ 10 | $ 27 | $ 59 |
Research and development expense | |||
Additional information related to fair values of options granted | |||
Total stock-based compensation | (6) | 67 | |
General and administrative expense | |||
Additional information related to fair values of options granted | |||
Total stock-based compensation | $ 16 | $ 27 | $ (8) |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2015USD ($)$ / item | |
Commitment and Contingencies | |
License provisions for escalating minimum royalties | $ 2,200,000 |
Annual licensing payment | 175,000 |
Other payments of royalty agreement occur during commercialization | 950,000 |
Contingent license fee payable only upon a change in ownership of licensee | $ 350,000 |
Minimum | |
Commitment and Contingencies | |
Royalty payment per unit (in dollar per unit) | $ / item | 25 |
Maximum | |
Commitment and Contingencies | |
Royalty payment per unit (in dollar per unit) | $ / item | 100 |
Milestone amounts paid to the licensors (as a percent) | 40.00% |
Annual payments to extend filing periods related to certain technology | $ 300,000 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Weighted Average Shares Excluded from EPS: | ||||
Total weighted average shares excluded | 25,759,982 | 4,492,401 | 25,442,872 | 4,479,476 |
Options to purchase common stock | ||||
Weighted Average Shares Excluded from EPS: | ||||
Total weighted average shares excluded | 4,466,191 | 4,408,842 | 4,425,491 | 4,384,484 |
Restricted stock | ||||
Weighted Average Shares Excluded from EPS: | ||||
Total weighted average shares excluded | 53,435 | 83,559 | 64,869 | 94,992 |
Restricted stock units | ||||
Weighted Average Shares Excluded from EPS: | ||||
Total weighted average shares excluded | 984,200 | 696,356 | ||
Warrants to purchase common stock | ||||
Weighted Average Shares Excluded from EPS: | ||||
Total weighted average shares excluded | 8,750,000 | 8,750,000 | ||
Common share equivalents from convertible notes | ||||
Weighted Average Shares Excluded from EPS: | ||||
Total weighted average shares excluded | 11,506,156 | 11,506,156 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Oct. 01, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||
Common stock, shares outstanding | 33,707,778 | 33,529,778 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Proceeds from exercise of warrants | $ 9,506,000 | ||
Common stock, shares outstanding | 38,082,778 | ||
Warrants outstanding | 4,375,000 | ||
Warrants to purchase common stock | |||
Subsequent Event [Line Items] | |||
Warrants exercised | 0 | ||
Warrants to purchase common stock | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Warrants exercised | 4,375,000 |