Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ONVO | |
Entity Registrant Name | ORGANOVO HOLDINGS, INC. | |
Entity Central Index Key | 1,497,253 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 92,426,404 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 86,000,000 | $ 50,142,000 |
Accounts receivable | 132,000 | 0 |
Inventory | 69,000 | 66,000 |
Prepaid expenses and other current assets | 795,000 | 1,054,000 |
Total current assets | 86,996,000 | 51,262,000 |
Fixed assets, net | 3,381,000 | 2,042,000 |
Restricted cash | 78,800 | 78,800 |
Other assets, net | 107,000 | 106,000 |
Total assets | 90,563,000 | 53,489,000 |
Current Liabilities | ||
Accounts payable | 1,030,000 | 1,387,000 |
Accrued expenses | 1,646,000 | 2,257,000 |
Deferred rent | 1,088,000 | 759,000 |
Deferred revenue | 1,433,000 | 227,000 |
Capital lease obligation | 2,000 | 5,000 |
Warrant liabilities | 26,000 | 126,000 |
Total current liabilities | 5,225,000 | 4,761,000 |
Deferred revenue, net of current portion | 19,000 | 32,000 |
Total liabilities | 5,244,000 | 4,793,000 |
Commitments and Contingencies (Note 4) | 0 | 0 |
Stockholders’ Equity | ||
Common stock, $0.001 par value; 150,000,000 shares authorized, 92,426,404 and 81,536,724 shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively | 92,000 | 82,000 |
Additional paid-in capital | 216,013,000 | 170,909,000 |
Accumulated deficit | (130,786,000) | (122,295,000) |
Total stockholders’ equity | 85,319,000 | 48,696,000 |
Total Liabilities and Stockholders’ Equity | $ 90,563,000 | $ 53,489,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Mar. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 92,426,404 | 81,536,724 |
Common stock, shares outstanding | 92,426,404 | 81,536,724 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||
Product and service | $ 209 | $ 0 |
Collaborations | 14 | 69 |
Grants | 83 | 30 |
Total Revenues | 306 | 99 |
Selling, general, and administrative expenses | 4,622 | 3,695 |
Research and development expenses | 4,142 | 2,814 |
Loss from Operations | (8,458) | (6,410) |
Other Income (Expense) | ||
Change in fair value of warrant liabilities | (38) | (30) |
Interest expense | (3) | 0 |
Interest income | 8 | 7 |
Total Other Income (Expense) | (33) | (23) |
Net Loss | $ (8,491) | $ (6,433) |
Net loss per common share—basic and diluted | $ (0.10) | $ (0.08) |
Weighted average shares used in computing net loss per common share—basic and diluted | 82,993,966 | 78,241,373 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net loss | $ (8,491) | $ (6,433) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 135 | 96 |
Change in fair value of warrant liabilities | 38 | 30 |
Stock-based compensation | 1,780 | 1,537 |
Amortization of warrants issued for services | (95) | 141 |
Increase (decrease) in cash resulting from changes in: | ||
Accounts receivable | (132) | (60) |
Inventory | (3) | (8) |
Prepaid expenses and other assets | 256 | 117 |
Accounts payable | (357) | 513 |
Accrued expenses | (611) | 460 |
Deferred rent | (8) | 112 |
Deferred revenue | 1,193 | 130 |
Net cash used in operating activities | (6,295) | (3,365) |
Cash Flows From Investing Activities | ||
Purchases of fixed assets | (1,135) | (238) |
Net cash used in investing activities | (1,135) | (238) |
Cash Flows From Financing Activities | ||
Proceeds from issuance of common stock and exercise of warrants, net | 43,214 | 224 |
Proceeds from exercise of stock options | 77 | 111 |
Principal payments on capital lease obligations | (3) | (2) |
Net cash provided by financing activities | 43,288 | 333 |
Net Increase (Decrease) in Cash and Cash Equivalents | 35,858 | (3,270) |
Cash and Cash Equivalents at Beginning of Period | 50,142 | 48,167 |
Cash and Cash Equivalents at End of Period | 86,000 | 44,897 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest | 0 | 0 |
Income Taxes | $ (3) | $ 0 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 3 Months Ended | 40 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | |
Statement Of Cash Flows [Abstract] | |||
Warrant liability reduced | $ 138,000 | $ 55,000 | |
Leasehold improvements | $ 337,000 | $ 481,000 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note Nature of operations and basis of presentation References in these notes to the unaudited condensed consolidated financial statements to “Organovo Holdings, Inc.,” “Organovo Holdings,” “we,” “us,” “our,” “the Company” and “our Company” refer to Organovo Holdings, Inc. and its consolidated subsidiaries. The Company is an early commercial stage company, developing and commercializing functional three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. Since its inception, the Company has devoted its efforts primarily to developing and commercializing a platform technology and functional human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs, raising capital and building infrastructure. In November 2014, the Company announced the full commercial release of its first product, the exVive3D ™ Human Liver Tissue for use in toxicology and other preclinical drug testing. As of June 30, 2015, the Company has not yet realized significant revenues from its planned principal operations. The Company’s activities are subject to significant risks and uncertainties including failing to successfully develop products and services based on its technology and to achieve the market acceptance necessary to generate sufficient revenues and to achieve and sustain profitability. The accompanying interim condensed consolidated financial statements have been prepared by the Company, without audit, in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of its financial position, results of operations, stockholders’ equity and cash flows in accordance with generally accepted accounting principles (“GAAP”). The balance sheet at March 31, 2015 is derived from the Company’s audited balance sheet at that date. In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, which are only normal and recurring, necessary for a fair statement of the Company’s financial position, results of operations, stockholders’ equity and cash flows. These financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report filed on Form 10-K for the year ended March 31, 2015 filed with the Securities and Exchange Commission (the “SEC”) on June 9, 2015. Operating results for interim periods are not necessarily indicative of operating results for the Company’s fiscal year ending March 31, 2016. NYSE MKT Listing On July 9, 2013, the Company announced that its common stock had been approved for listing on the NYSE MKT. Shares began trading on the NYSE MKT on July 11, 2013 under the symbol “ONVO”. Prior to that time, the Company’s shares were quoted on the OTC QX. Liquidity As of June 30, 2015, the Company had an accumulated deficit of approximately $130.8 million. The Company also had negative cash flows from operations of approximately $6.3 million during the three months ended June 30, 2015. Through June 30, 2015, the Company has financed its operations primarily through the sale of convertible notes, the private placement of equity securities, the public offering of common stock, and through revenue derived from grants, product sales, collaborative research agreements and research service agreements. Based on its current operating plan and available cash resources, the Company has sufficient resources to fund its business for at least the next twelve months. On June 23, 2015, the Company closed an underwritten public offering in which it sold an aggregate of 10,838,750 shares of common stock and raised gross proceeds of approximately $46.1 million. The Company’s future capital needs will depend on the revenues it generates through its commercialization efforts and the resources it elects to spend to pursue its product development efforts and implement its business plan. As a result, the Company cannot predict with certainty when it may be required to secure additional capital to fund its future operations. The Company intends to cover its future operating expenses through cash on hand, through revenue derived from grants, product sales, collaborative research agreements and research services agreements and through the issuance of additional equity or debt securities. Depending on market conditions, we cannot be sure that additional financing will be available when needed or that, if available, financing will be obtained on terms favorable to us or to our stockholders. Having insufficient funds may require us to delay, scale back, or eliminate some or all of our development programs or relinquish rights to our technology on less favorable terms than we would otherwise choose. Failure to obtain adequate financing could eventually adversely affect our ability to operate as a going concern. If we raise additional funds from the issuance of equity securities, substantial dilution to our existing stockholders would likely result. If we raise additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict our ability to operate our business. Use of estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant estimates used in preparing the condensed consolidated financial statements include those assumed in computing the valuation of warrants, revenue recognized under the proportional performance model, the valuation of stock-based compensation expense, and the valuation allowance on deferred tax assets. Financial instruments For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, inventory, prepaid expenses and other current assets, accounts payable, accrued expenses, deferred revenue and capital lease obligations, the carrying amounts are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. Cash and cash equivalents The Company considers all highly liquid investments with original maturities of 90 days or less to be cash equivalents. Derivative financial instruments The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency. The Company reviews the terms of convertible debt and equity instruments it issues to determine whether there are derivative instruments, including an embedded conversion option that is required to be bifurcated and accounted for separately as a derivative financial instrument. In circumstances where a host instrument contains more than one embedded derivative instrument, including a conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Also, in connection with the sale of convertible debt and equity instruments, the Company may issue freestanding warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. Derivative instruments are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the convertible debt or equity instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds allocated to the convertible host instruments are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the convertible instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method. Restricted cash As of June 30, 2015 and March 31, 2015, the Company had approximately $78,800 of restricted cash deposited with a financial institution. The entire amount is held in certificates of deposit to support a letter of credit agreement related to the Company’s facility lease. Inventory Inventories are stated at the lower of the cost or market (first-in, first-out). Inventory consisted of approximately $69,000 and $66,000 in raw materials as of June 30, 2015 and March 31, 2015, respectively, net of reserves. The Company provides inventory allowances based on excess or obsolete inventories determined based on anticipated use in the final product. The reserve for obsolete inventory at June 30, 2015 and March 31, 2015 was approximately $32,000 and $31,000, respectively. Fixed assets and depreciation Property and equipment are carried at cost. Expenditures that extend the life of the asset are capitalized and depreciated. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets or, in the case of leasehold improvements, over the lesser of the useful life of the related asset or the remaining lease term. The estimated useful lives of the fixed assets range between three and seven years. Impairment of long-lived assets In accordance with authoritative guidance, the Company reviews its long-lived assets, including property and equipment and other assets, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. To determine recoverability of its long-lived assets, the Company evaluates whether future undiscounted net cash flows will be less than the carrying amount of the assets and adjusts the carrying amount of its assets to fair value. Management has determined that no impairment of long-lived assets has occurred through June 30, 2015. Fair value measurement Financial assets and liabilities are measured at fair value, which is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: · Level 1 — Quoted prices in active markets for identical assets or liabilities. · Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company has issued warrants, of which some are classified as derivative liabilities as a result of the terms in the warrants that provide for down-round protection in the event of a dilutive issuance. The Company uses Level 3 inputs for its valuation methodology for the warrant derivative liabilities. The estimated fair values were determined using a Monte Carlo option pricing model based on various assumptions (see Note 2). The Company’s derivative liabilities are adjusted to reflect estimated fair value at each period end, with any decrease or increase in the estimated fair value being recorded in other income or expense accordingly, as adjustments to the fair value of derivative liabilities. Various factors are considered in the pricing models the Company uses to value the warrants, including the Company’s current stock price, the remaining life of the warrants, the volatility of the Company’s stock price, and the risk-free interest rate. Future changes in these factors may have a significant impact on the computed fair value of the warrant liability. The estimated fair values of the liabilities measured on a recurring basis are as follows: Fair Value Measurements at June 30 Balance at June 30, Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Warrant liability $ 26 — — $ 26 Balance at March Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Warrant liability $ 126 — — $ 126 The following table presents the activity for liabilities measured at estimated fair value using unobservable inputs for the three months ended June 30, 2015: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability (in thousands) Balance at March 31, 2015 $ 126 Issuances — Adjustments to estimated fair value 38 Warrant liability removal due to settlements (138 ) Warrant liability reclassified to equity — Balance at June 30, 2015 $ 26 Research and development Research and development expenses, including direct and allocated expenses, consist of independent research and development costs, as well as costs associated with sponsored research and development. Research and development costs are expensed as incurred. Income taxes Deferred income taxes are recognized for the tax consequences in future years for differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the combination of the tax payable for the year and the change during the year in deferred tax assets and liabilities. Revenue recognition The Company’s revenues are derived from research service agreements, product sales, collaborative research agreements, and grants from the National Institute of Health (“NIH”), U.S. Treasury Department and private not-for-profit organizations. The Company recognizes revenue when the following criteria have been met: (i) persuasive evidence of an arrangement exists; (ii) services have been rendered or product has been delivered; (iii) price to the customer is fixed and determinable; and (iv) collection of the underlying receivable is reasonably assured. Billings to customers or payments received from customers are included in deferred revenue on the balance sheet until all revenue recognition criteria are met. As of June 30, 2015 and March 31, 2015, the Company had approximately $1,452,000 and $259,000, respectively, in deferred revenue related to its grants, collaborative research programs and research service agreements. Revenue arrangements with multiple deliverables The Company periodically enters into revenue arrangements that contain multiple deliverables. Judgment is required to properly identify the accounting units of the multiple deliverable transactions and to determine the manner in which revenue should be allocated among the accounting units. Moreover, judgment is used in interpreting the commercial terms and determining when all criteria of revenue recognition have been met for each deliverable in order for revenue recognition to occur in the appropriate accounting period. For multiple deliverable agreements, consideration is allocated at the inception of the agreement to all deliverables based on their relative selling price. The relative selling price for each deliverable is determined using vendor-specific objective evidence (“VSOE”) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, the Company uses its best estimate of the selling price for the deliverable. While changes in the allocation of the arrangement consideration between the units of accounting will not affect the amount of total revenue recognized for a particular sales arrangement, any material changes in these allocations could impact the timing of revenue recognition, which could affect the Company’s results of operations. The Company expects to periodically receive license fees for non-exclusive research licensing associated with funded research projects. License fees under these arrangements are recognized over the term of the contract or development period as it has been determined that such licenses do not have stand-alone value. Product revenue The Company recognizes product revenue at the time of shipment to the customer, provided all other revenue recognition criteria have been met. To date, the Company has not recognized significant revenue from commercial product sales. As our commercial sales increase, we expect to establish a reserve for estimated product returns that will be recorded as a reduction to revenue. That reserve will be maintained to account for future return of products sold in the current period. The reserve will be reviewed quarterly and will be estimated based on an analysis of our historical experience related to product returns. Revenue from research service agreements For research service agreements that contain only a single or primary deliverable, the Company defers any up-front fees collected from customers, and recognizes revenue for the delivered element only when it determines there are no uncertainties regarding customer acceptance. During the three months ended June 30, 2015, the Company received a $1,000,000 up-front fee from a customer. As there were no delivered elements during the quarter, this amount remains in deferred revenue as of June 30, 2015. Research and development revenue under collaborative agreements The Company’s collaboration revenue consists of license and collaboration agreements that contain multiple elements, including non-refundable up-front fees, payments for reimbursement of third-party research costs, payments for ongoing research, payments associated with achieving specific development milestones and royalties based on specified percentages of net product sales, if any. The Company considers a variety of factors in determining the appropriate method of revenue recognition under these arrangements, such as whether the elements are separable, whether there are determinable fair values and whether there is a unique earnings process associated with each element of a contract. The Company recognizes revenue from research funding under collaboration agreements when earned on a “proportional performance” basis as research hours are incurred. The Company performs services as specified in each respective agreement on a best-efforts basis, and is reimbursed based on labor hours incurred on each contract. The Company initially defers revenue for any amounts billed or payments received in advance of the services being performed, and recognizes revenue pursuant to the related pattern of performance, based on total labor hours incurred relative to total labor hours estimated under the contract. Grant revenues During August of 2013, the Company was awarded a research grant by a private, not-for-profit organization for up to $251,700, contingent on go/no-go decisions made by the grantor at the completion of each stage of research as outlined in the grant award. Revenues from the grant are based upon internal costs incurred that are specifically covered by the grant, plus an additional rate that provides funding for overhead expenses. Revenue is recognized when the Company incurs expenses that are related to the grant. Revenue recognized under this grant was approximately $9,000 and $30,000 for the three months ended June 30, 2015 and 2014, respectively. During September of 2014, the NIH awarded the Company a research grant totaling approximately $222,000. The grant provides for fixed payments based on the achievement of certain milestones. As such, revenue will be recognized upon completion of substantive milestones. Revenue recognized under this grant was approximately $74,000 for the three months ended June 30, 2015. Stock-based compensation The Company accounts for stock-based compensation in accordance with the Financial Accounting Standards Board’s (“FASB”) ASC Topic 718, Compensation — Stock Compensation, The Company accounts for equity instruments, including restricted stock or stock options, issued to non-employees in accordance with authoritative guidance for equity based payments to non-employees. Stock options issued to non-employees are accounted for at their estimated fair value determined using the Black-Scholes option-pricing model. The fair value of options granted to non-employees is re-measured as they vest, and the resulting increase in value, if any, is recognized as expense during the period the related services are rendered. Restricted stock issued to non-employees is accounted for at its estimated fair value as it vests. Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company is required to record all components of comprehensive income (loss) in the financial statements in the period in which they are recognized. Net income (loss) and other comprehensive income (loss), including unrealized gains and losses on investments, are reported, net of their related tax effect, to arrive at comprehensive income (loss). For the three months ended June 30, 2015 and 2014, respectively, the comprehensive loss was equal to the net loss. Net loss per share Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options and warrants, the assumed release of restriction of restricted stock units, and shares subject to repurchase as the effect would be anti-dilutive. No dilutive effect was calculated for the three months ended June 30, 2015 or 2014, as the Company reported a net loss for each respective period and the effect would have been anti-dilutive. Common stock equivalents excluded from computing diluted net loss per share were approximately 10.2 million and 7.8 million for the three months ended June 30, 2015 and 2014, respectively. |
Derivative Liability
Derivative Liability | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Liability | Note 2. Derivative Liability During 2011 and 2012, the Company issued five-year warrants to purchase its common stock. For certain of these warrants, the exercise price is protected against down-round financing throughout the term of the warrant. Pursuant to ASC 815-15 and ASC 815-40, the fair value of the warrants was recorded as a derivative liability on the issuance dates. The Company revalues the warrants classified as derivative liabilities as of the end of each reporting period. The estimated fair value of the outstanding warrant liabilities was less than $0.1 million and approximately $0.1 million as of June 30, 2015 and March 31, 2015, respectively. The changes in fair value of the derivative liabilities were an increase of approximately $38,000 and an increase of approximately $30,000 for the three months ended June 30, 2015 and 2014, respectively, and are included in other income (expense) in the statements of operations. During the three months ended June 30, 2015 and 2014, 38,234 and 8,647 warrants, respectively, that were classified as derivative liabilities were exercised. The warrants were revalued as of the settlement dates, and the change in fair value was recognized to earnings. The derivative liabilities were valued at the end of each reporting period using a Monte Carlo valuation model with the following assumptions: June 30, 2015 March 31, 2015 June 30, 2014 Closing price per share of common stock $ 3.77 $ 3.54 $ 8.35 Exercise price per share $ 1.00 $ 1.00 $ 1.00 Expected volatility 73.90 % 76.80 % 78.20 % Risk-free interest rate 0.64 % 0.56 % 1.62 % Dividend yield — — — Remaining expected term of underlying securities (years) 1.71 1.96 2.71 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Note Common stock The Company filed a shelf registration statement on Form S-3 (File No. 333-189995), or the 2013 Shelf, with the SEC on July 17, 2013 authorizing the offer and sale in one or more offerings of up to $100,000,000 in aggregate of common stock, preferred stock, debt securities, warrants to purchase common stock, preferred stock or debt securities, or any combination of the foregoing, either individually or as units comprised of one or more of the other securities. This 2013 Shelf was declared effective by the SEC on July 26, 2013. On August 2, 2013, the Company, entered into an Underwriting Agreement with Lazard Capital Markets LLC, acting as representative of the underwriters named in the Underwriting Agreement and joint book-runner with Oppenheimer & Co. Inc., relating to the issuance and sale of 10,350,000 shares of the Company’s common stock, which includes the issuance and sale of 1,350,000 shares pursuant to an overallotment option exercised by the Underwriters on August 5, 2013 (the “2013 Offering”). JMP Securities LLC and Maxim Group LLC each acted as co-managers for the 2013 Offering. The price to the public in the 2013 Offering was $4.50 per share, and the Underwriters purchased the shares from the Company pursuant to the Underwriting Agreement at a price of $4.23 per share. The net proceeds to the Company from the 2013 Offering were approximately $43.4 million, after deducting underwriting discounts and commissions and other offering expenses of $3.2 million payable by the Company, including the Underwriters’ exercise of the overallotment option. The transactions contemplated by the Underwriting Agreement closed on August 7, 2013. In November 2013, the Company entered into an equity distribution agreement with an investment banking firm. Under the terms of the distribution agreement, the Company may offer and sell up to 4,000,000 shares of its common stock, from time to time, through the investment bank in “at the market” offerings, as defined by the SEC, and pursuant to the 2013 Shelf. During the three months ended June 30, 2015 and 2014, the Company issued no shares of common stock in at the market offerings under the distribution agreement. As of June 30, 2015, the Company has issued 2,532,180 shares of common stock in at the market offerings under the distribution agreement, with net proceeds of $19.6 million. In December 2014, the Company entered into an equity offering sales agreement with another investment banking firm. Under the terms of the sales agreement, the Company may offer and sell shares of its common stock, from time to time, through the investment bank in “at the market” offerings, as defined by the SEC, and pursuant to the 2013 Shelf. During the three months ended June 30, 2015, the Company issued no shares of common stock in at the market offerings under the sales agreement. As of June 30, 2015, the Company sold 1,000,000 shares of common stock in ATM offerings under the sales agreement, with net proceeds of approximately $6.2 million. The Company filed a second shelf registration statement on Form S-3 (File No. 333-202382), or the 2015 Shelf, with the SEC on February 27, 2015 authorizing the offer and sale in one or more offerings of up to $190,000,000 in aggregate of common stock, preferred stock, debt securities, warrants to purchase common stock, preferred stock or debt securities, or any combination of the foregoing, either individually or as units compromised one or more of the other securities. This shelf was declared effective by the SEC on March 17, 2015. On June 18, 2015, the Company entered into an Underwriting Agreement with Jefferies LLC and Piper Jaffray & Co., acting as representatives of the underwriters named in the 2015 Underwriting Agreement and as joint book-running managers, relating to the issuance and sale of 9,425,000 shares of the Company’s common stock, par value $0.001 per share (the “2015 Offering”). The price to the public in the 2015 Offering was $4.25 per share, and the Underwriters have agreed to purchase the shares from the Company pursuant to the 2015 Underwriting Agreement at a price of $3.995 per share. Under the terms of the 2015 Underwriting Agreement, the Company granted the Underwriters an option, exercisable for 30 days, to purchase up to an additional 1,413,750 shares. The Company issued 10,838,750 shares of common stock pursuant to the 2015 Underwriting Agreement, including shares issuable upon the exercise of the over-allotment option, with net proceeds of approximately $43.2 million, after deducting underwriting discounts and commissions and expenses payable by the Company. The shares were issued pursuant to the 2015 Shelf. The Company will limit future sales under the 2013 distribution agreement and the 2014 sales agreement to ensure that it does not exceed the maximum amount available for sale under its 2013 Shelf. Based on its use of the 2013 Shelf through June 30, 2015, the Company cannot sell more than an aggregate of $26,777,785 in shares of common stock under the 2013 distribution agreement and the 2014 sales agreement. In addition, during the three months ended June 30, 2015 and 2014, the Company issued 30,186 and 110,600 shares of common stock upon exercise of 38,234 and 111,647 warrants, respectively. Finally, during the three months ended June 30, 2015, the Company issued 25,503 shares of common stock upon exercise of 25,503 stock options. During the three months ended June 30, 2014, the Company issued 60,522 shares of common stock upon exercise of 60,522 stock options. Restricted stock awards In May 2008, the Board of Directors of the Company approved the 2008 Equity Incentive Plan (the “2008 Plan”). The 2008 Plan authorized the issuance of up to 1,521,584 common shares for awards of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock award units, and stock appreciation rights. The 2008 Plan terminates on July 1, 2018. No shares have been issued under the 2008 Plan since 2011, and the Company does not intend to issue any additional shares from the 2008 Plan in the future. In January 2012, the Board of Directors of the Company approved the 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan authorized the issuance of up to 6,553,986 shares of common stock for awards of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, and other stock or cash awards. The Board of Directors and stockholders of the Company approved an amendment to the 2012 Plan in August 2013 to increase the number of shares of common stock that may be issued under the 2012 Plan by 5,000,000 shares, for an aggregate of 11,553,986 shares issuable under the 2012 Plan. The 2012 Plan terminates ten years after its adoption. During the three months ended June 30, 2015 and 2014, there were 2,259 and 2,301 shares of restricted stock, respectively, cancelled related to shares of common stock returned to the Company, at the option of the holders, to cover the tax liability related to the vesting of 6,250 and 6,250 restricted stock units, respectively. Upon the return of the common stock, an equal number of stock options with immediate vesting were granted to the individuals at the vesting date market value strike price. A summary of the Company’s restricted stock award activity from March 31, 2015 through June 30, 2015 is as follows: Number of Shares Unvested at March 31, 2015 258,750 Granted — Vested (6,250 ) Canceled / forfeited (2,500 ) Unvested at June 30, 2015 250,000 The fair value of each restricted common stock award is recognized as stock-based compensation expense over the vesting term of the award. The Company recorded restricted stock-based compensation expense in operating expenses for employees and non-employees of approximately $103,000 and $133,000 for the three months ended June 30, 2015 and 2014, respectively. Stock-based compensation expense included in research and development was $0 and $4,000 for the three months ended June 30, 2015 and 2014, respectively. Stock-based compensation expense included in general and administrative expense was $103,000 and $129,000 for the three months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, total unrecognized restricted stock-based compensation expense was approximately $115,000, which will be recognized over a weighted average period of 0.46 years. Stock options Under the 2012 Plan, 1,762,641 and 266,801 stock options were issued during the three months ended June 30, 2015 and 2014, respectively, at various exercise prices. The stock options generally vest (i) on the one year anniversary of the grant date, (2) quarterly over a three year period, or (3) over a four-year period, with 25% vesting on either the one year anniversary of employment or the one year anniversary of the vesting commencement date, and the remainder vesting ratably over the remaining term. A summary of the Company’s stock option activity for the three months ended June 30, 2015 is as follows: Options Outstanding Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at March 31, 2015 7,113,548 $ 5.21 $ 4,969,499 Options granted 1,762,641 $ 4.92 Options canceled (24,003 ) $ 5.75 Options exercised (25,503 ) $ 3.01 $ 61,484 Outstanding at June 30, 2015 8,826,683 $ 5.16 $ 5,493,770 Vested and Exercisable at June 30, 2015 3,684,516 $ 3.99 $ 4,641,630 The weighted-average remaining contractual term of options exercisable and outstanding at June 30, 2015 was approximately 7.52 years. The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. Stock-based compensation expense is recognized over the vesting period using the straight-line method. The fair value of stock options was estimated at the grant date using the following weighted average assumptions: Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 Dividend yield — — Volatility 74.25 % 78.02 % Risk-free interest rate 1.65 % 1.56 % Expected life of options 6.00 years 6.00 years Weighted average grant date fair value $ 3.22 $ 4.94 The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. Due to the Company’s limited historical data, the estimated volatility incorporates the historical and implied volatility of comparable companies whose share prices are publicly available. The risk-free interest rate assumption was based on the U.S. Treasury rates. The weighted average expected life of options was estimated using the average of the contractual term and the weighted average vesting term of the options. Certain options granted to consultants are subject to variable accounting treatment and are required to be revalued until vested. The total stock option-based compensation recorded as operating expense was approximately $1,677,000 and $1,405,000 for the three months ended June 30, 2015 and 2014, respectively. Expense included in research and development was $349,000 and $248,000 for the three months ended June 30, 2015 and 2014, respectively. Expense included in general and administrative was $1,328,000 and $1,157,000 for the three months ended June 30, 2015 and 2014, respectively. The total unrecognized compensation cost related to unvested stock option grants as of June 30, 2015 was approximately $15,232,000 and the weighted average period over which these grants are expected to vest is 2.73 years. Warrants During the three months ended June 30, 2015 and 2014, 38,234 and 8,647 warrants, respectively, were exercised through a cashless exercise provision for issuance of 30,186 and 7,600 shares of common stock, respectively. During the three months ended June 30, 2014, 103,000 warrants were exercised at prices ranging from $1.00 to $2.21 for total proceeds of 224,000. In addition, during the three months ended June 30, 2015, a warrant that was previously expected to be issued to a service provider and had been expensed in prior periods at its approximate value of $130,000, was cancelled, and the amount was reversed against operating expense during the quarter. Of the warrants exercised during the three months ended June 30, 2015 and 2014, 38,234 and 8,647, respectively were derivative liabilities and were valued at the settlement date. For the three months ended June 30, 2015 and 2014, approximately $138,000 and $55,000, respectively of the warrant liability was removed due to the exercise of these warrants. (See Note 2). During November 2013 the Company entered into an agreement with a consultant for services. In connection with the agreement, the Company issued 75,000 warrants to purchase common stock, at a price of $7.36, with a life of five years, to be earned over a twelve month service period. The fair value of the warrants was estimated to be approximately $404,000, which was recognized as a prepaid asset and has been amortized over the term of the consulting agreement. These warrants were classified as equity instruments because they do not contain any anti-dilution provisions. The Black-Scholes model, using a volatility rate of 96.90% and a risk-free interest rate factor of 0.60%, was used to determine the value. The Company recognized approximately $101,000 during the three months ended June 30, 2014 related to these services. As of December 31, 2014, these warrants were fully expensed. Additionally, during September 2014, the Company issued 50,000 warrants to a consultant in recognition of services previously provided. These warrants were classified as equity instruments because they do not contain any anti-dilution provisions. As of December 31, 2014, the full amount of the warrants related to these services, approximately $273,000, had been recognized. During November 2014 the Company entered into an agreement with a consultant for services. In connection with the agreement, the Company issued 145,000 warrants to purchase common stock, at a price of $6.84, with a life of five years, to be earned over a seventeen month service period ending on March 31, 2016. The final number of vested warrant shares will be determined, at the discretion of management, based on management’s judgment of the satisfaction of specific performance metrics prior to the earliest to occur of March 31, 2016 or the termination of the consulting arrangement with the Company. The initial fair value of the warrants was estimated to be approximately $309,000, which is being revalued and amortized over the term of the consulting agreement. These warrants were classified as equity instruments because they do not contain any anti-dilution provisions. The Black-Scholes model, using a volatility rate of 76.78% and a risk-free interest rate factor of 1.37%, was used to determine the value. The Company recognized approximately $34,000 during the three months ended June 30, 2015, related to these services. The following table summarizes warrant activity for the three months ended June 30, 2015: Warrants Weighted- Average Exercise Price Balance at March 31, 2015 1,178,109 $ 2.59 Granted — $ - Exercised (38,234 ) $ 1.00 Cancelled (37,500 ) $ 7.36 Balance at June 30, 2015 1,102,375 $ 2.49 The warrants outstanding at June 30, 2015 are exercisable at prices between $0.85 and $7.62 per share, and have a weighted average remaining term of approximately 2.14 years. Common stock reserved for future issuance Common stock reserved for future issuance consisted of the following at June 30, 2015: Common stock warrants outstanding 1,102,375 Common stock options outstanding under the 2008 Plan 622,192 Common stock options outstanding and reserved under the 2012 Plan 9,392,028 Total 11,116,595 Preferred stock The Company is authorized to issue 25,000,000 shares of preferred stock. There are no shares of preferred stock currently outstanding, and the Company has no present plans to issue shares of preferred stock. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 4. Commitments and Contingencies Operating leases The Company leases office and laboratory space under a non-cancelable operating lease which was entered into in February 2012 and amended in December 2013 and March 2015, and a non-cancelable operating lease entered into on January 9, 2015, with the future minimum lease payments from the leases included below. The Company records rent expense on a straight-line basis over the life of the leases and records the excess of expense over the amounts paid as deferred rent. In addition, one of the leases provides for certain improvements made for the Company’s benefit to be funded by the landlord. Such costs, totaling approximately $481,000 to date, have been capitalized as fixed assets and included in deferred rent. Rent expense was approximately $277,000 and $235,000 for the three months ended June 30, 2015 and 2014, respectively. On February 27, 2012, the Company entered into a facilities lease at 6275 Nancy Ridge Drive (the “Original Lease”), San Diego, CA 92121, with occupancy as of July 15, 2012. The base rent under the lease was approximately $38,800 per month with 3% annual escalators. The lease term was 48 months with an option for the Company to extend the lease at the end of the lease term. On December 5, 2013, the Company entered into a First Amendment (the “Amendment”) to the Original Lease, together with the Amendment, (the “Amended Lease”). Pursuant to the Amendment, the Company expanded the size of its facility by approximately 15,268 square feet (the “Expansion Premises”) from approximately 15,539 square feet (the “Original Premises”) for a total of approximately 30,807 square feet. The Amended Lease provides for base rent (i) on the Original Premises to continue at approximately $38,800 per month, with annual escalators, until August 1, 2016, at which point the base rent shall be payable at the same rate per rentable square foot as the Expansion Premises and (ii) on the Expansion Premises of approximately $38,934 per month, with 3% annual escalators, not to commence until two months after the earlier of (A) the date that the landlord delivers possession of the Expansion Premises to the Company with the work in the Expansion Lab Premises (as defined in the Amendment) substantially complete and (B) the date the landlord could have delivered the Expansion Premises with the work in the Expansion Lab Premises (as defined in the Amendment) substantially complete but for certain delays of the Company. Additionally, the Company has a right of first refusal on adjacent additional premises of approximately 14,500 square feet. The term of the Amended Lease expires on the seven-year anniversary of the earlier of (A) the date that the landlord delivers possession of the Expansion Premises to the Company and (B) the date the landlord could have delivered the Expansion Premises but for certain delays of the Company (the “Expansion Premises Commencement Date”). The Expansion Premises Commencement Date was September 1, 2014. The Company also has the option to terminate the Amended Lease on the 5-year anniversary of the Expansion Premises Commencement Date. The Expansion Premises contains office, laboratory, and clean room areas. On March 12, 2015, the Company entered into a Second Amendment to the Original Lease (the “Second Amendment), to adjust the square footage covered by Amended Lease and an additional portion of the building containing approximately 335 rentable square feet (“Second Expansion Premises”). This square footage adjustment was the result of the re-measurement of each suite and the building overall. The net adjustment to overall leased space was an increase of 88 square feet with a corresponding increase in monthly rental payments at the same rate per square foot as the Expansion Premises. On January 9, 2015, the Company entered into an agreement to lease a second facility consisting of 5,803 rentable square feet of office and lab space located at 6310 Nancy Ridge Drive, San Diego, CA 92121. The term of the lease is 36 months, beginning on February 1, 2015 and ending on January 31, 2018, with monthly rental payments of approximately $12,000 commencing on April 1, 2015. In addition, there are annual rent escalations of 3.0% on each 12-month anniversary of the lease commencement date. Future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of June 30, 2015, are as follows (in thousands): Fiscal year ended March 31, 2016 $ 861 Fiscal year ended March 31, 2017 1,157 Fiscal year ended March 31, 2018 1,145 Fiscal year ended March 31, 2019 1,041 Fiscal year ended March 31, 2020 1,072 Thereafter 1,571 Total $ 6,847 Legal Matters In addition to commitments and obligations in the ordinary course of business, the Company is subject to various claims and pending and potential legal actions arising out of the normal conduct of its business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its financial statements. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing litigation contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against it may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of its potential liability. The Company regularly reviews contingencies to determine the adequacy of its accruals and related disclosures. During the period presented, the Company has not recorded any accrual for loss contingencies associated with such claims or legal proceedings; determined that an unfavorable outcome is probable or reasonably possible; or determined that the amount or range of any possible loss is reasonably estimable. However, the outcome of legal proceedings and claims brought against the Company is subject to significant uncertainty. Therefore, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period, the Company’s consolidated financial statements for that reporting period could be materially adversely affected. Spencer Trask Matter Also in June, 2013, STV initiated an arbitration in which it is alleging (1) breach of contract, and (2) breach of confidentiality obligations under the terms of the PAA. STV is seeking compensation (including a cash fee and warrants to purchase common stock) as a result of the Company’s warrant tender offer in December 2012 and its warrant redemption in 2013, and damages for breach of confidentiality provisions in relation to the contacting of warrant holders who participated in the warrant tender offer. The Company believes there was no breach of confidentiality, as the Company’s tender offer was made to warrant holders of record relating to warrants already owned by them and whose identity was public information via a Registration Statement on Form S-1 the Company was required to file to register the resale of the shares underlying their warrants. In January 2014, the Supreme Court of New York stayed the New York litigation, finding that the arbitrator should determine in the first instance which disputes between the Company and STV should proceed in the Arbitration and which disputes between the Company and STV should proceed in the New York Court. The parties are proceeding in the Arbitration and the Company has reserved its right to file a summary disposition motion with regard to the proper venue for its claims under the WSAA. The date for the Arbitration (previously scheduled for July, 2015) has been taken off the calendar but may be rescheduled for the fall of 2015. The Company believes that the assertions made against it by STV are without merit and the Company intends to continue to vigorously defend against the claims made by STV. |
Concentrations
Concentrations | 3 Months Ended |
Jun. 30, 2015 | |
Risks And Uncertainties [Abstract] | |
Concentrations | Note 5. Concentrations Credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments. The Company maintains cash balances at various financial institutions located in the United States. Accounts at these institutions are secured by the Federal Deposit Insurance Corporation. Balances may exceed federally insured limits. The Company has not experienced losses in such accounts, and management believes that the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Jun. 30, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 6. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern—Disclosures of Uncertainties about an entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 7. Subsequent Events None. |
Description of Business and S14
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of operations and basis of presentation References in these notes to the unaudited condensed consolidated financial statements to “Organovo Holdings, Inc.,” “Organovo Holdings,” “we,” “us,” “our,” “the Company” and “our Company” refer to Organovo Holdings, Inc. and its consolidated subsidiaries. The Company is an early commercial stage company, developing and commercializing functional three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. Since its inception, the Company has devoted its efforts primarily to developing and commercializing a platform technology and functional human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs, raising capital and building infrastructure. In November 2014, the Company announced the full commercial release of its first product, the exVive3D ™ Human Liver Tissue for use in toxicology and other preclinical drug testing. As of June 30, 2015, the Company has not yet realized significant revenues from its planned principal operations. The Company’s activities are subject to significant risks and uncertainties including failing to successfully develop products and services based on its technology and to achieve the market acceptance necessary to generate sufficient revenues and to achieve and sustain profitability. The accompanying interim condensed consolidated financial statements have been prepared by the Company, without audit, in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of its financial position, results of operations, stockholders’ equity and cash flows in accordance with generally accepted accounting principles (“GAAP”). The balance sheet at March 31, 2015 is derived from the Company’s audited balance sheet at that date. In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, which are only normal and recurring, necessary for a fair statement of the Company’s financial position, results of operations, stockholders’ equity and cash flows. These financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report filed on Form 10-K for the year ended March 31, 2015 filed with the Securities and Exchange Commission (the “SEC”) on June 9, 2015. Operating results for interim periods are not necessarily indicative of operating results for the Company’s fiscal year ending March 31, 2016. |
Use of estimates | Use of estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant estimates used in preparing the condensed consolidated financial statements include those assumed in computing the valuation of warrants, revenue recognized under the proportional performance model, the valuation of stock-based compensation expense, and the valuation allowance on deferred tax assets. |
Financial instruments | Financial instruments For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, inventory, prepaid expenses and other current assets, accounts payable, accrued expenses, deferred revenue and capital lease obligations, the carrying amounts are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments with original maturities of 90 days or less to be cash equivalents. |
Derivative financial instruments | Derivative financial instruments The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency. The Company reviews the terms of convertible debt and equity instruments it issues to determine whether there are derivative instruments, including an embedded conversion option that is required to be bifurcated and accounted for separately as a derivative financial instrument. In circumstances where a host instrument contains more than one embedded derivative instrument, including a conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Also, in connection with the sale of convertible debt and equity instruments, the Company may issue freestanding warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. Derivative instruments are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the convertible debt or equity instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds allocated to the convertible host instruments are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the convertible instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method. |
Restricted cash | Restricted cash As of June 30, 2015 and March 31, 2015, the Company had approximately $78,800 of restricted cash deposited with a financial institution. The entire amount is held in certificates of deposit to support a letter of credit agreement related to the Company’s facility lease. |
Inventory | Inventory Inventories are stated at the lower of the cost or market (first-in, first-out). Inventory consisted of approximately $69,000 and $66,000 in raw materials as of June 30, 2015 and March 31, 2015, respectively, net of reserves. The Company provides inventory allowances based on excess or obsolete inventories determined based on anticipated use in the final product. The reserve for obsolete inventory at June 30, 2015 and March 31, 2015 was approximately $32,000 and $31,000, respectively. |
Fixed assets and depreciation | Fixed assets and depreciation Property and equipment are carried at cost. Expenditures that extend the life of the asset are capitalized and depreciated. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets or, in the case of leasehold improvements, over the lesser of the useful life of the related asset or the remaining lease term. The estimated useful lives of the fixed assets range between three and seven years. |
Impairment of long-lived assets | Impairment of long-lived assets In accordance with authoritative guidance, the Company reviews its long-lived assets, including property and equipment and other assets, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. To determine recoverability of its long-lived assets, the Company evaluates whether future undiscounted net cash flows will be less than the carrying amount of the assets and adjusts the carrying amount of its assets to fair value. Management has determined that no impairment of long-lived assets has occurred through June 30, 2015. |
Fair value measurement | Fair value measurement Financial assets and liabilities are measured at fair value, which is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: · Level 1 — Quoted prices in active markets for identical assets or liabilities. · Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company has issued warrants, of which some are classified as derivative liabilities as a result of the terms in the warrants that provide for down-round protection in the event of a dilutive issuance. The Company uses Level 3 inputs for its valuation methodology for the warrant derivative liabilities. The estimated fair values were determined using a Monte Carlo option pricing model based on various assumptions (see Note 2). The Company’s derivative liabilities are adjusted to reflect estimated fair value at each period end, with any decrease or increase in the estimated fair value being recorded in other income or expense accordingly, as adjustments to the fair value of derivative liabilities. Various factors are considered in the pricing models the Company uses to value the warrants, including the Company’s current stock price, the remaining life of the warrants, the volatility of the Company’s stock price, and the risk-free interest rate. Future changes in these factors may have a significant impact on the computed fair value of the warrant liability. The estimated fair values of the liabilities measured on a recurring basis are as follows: Fair Value Measurements at June 30 Balance at June 30, Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Warrant liability $ 26 — — $ 26 Balance at March Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Warrant liability $ 126 — — $ 126 The following table presents the activity for liabilities measured at estimated fair value using unobservable inputs for the three months ended June 30, 2015: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability (in thousands) Balance at March 31, 2015 $ 126 Issuances — Adjustments to estimated fair value 38 Warrant liability removal due to settlements (138 ) Warrant liability reclassified to equity — Balance at June 30, 2015 $ 26 |
Research and development | Research and development Research and development expenses, including direct and allocated expenses, consist of independent research and development costs, as well as costs associated with sponsored research and development. Research and development costs are expensed as incurred. |
Income taxes | Income taxes Deferred income taxes are recognized for the tax consequences in future years for differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the combination of the tax payable for the year and the change during the year in deferred tax assets and liabilities. |
Revenue recognition | Revenue recognition The Company’s revenues are derived from research service agreements, product sales, collaborative research agreements, and grants from the National Institute of Health (“NIH”), U.S. Treasury Department and private not-for-profit organizations. The Company recognizes revenue when the following criteria have been met: (i) persuasive evidence of an arrangement exists; (ii) services have been rendered or product has been delivered; (iii) price to the customer is fixed and determinable; and (iv) collection of the underlying receivable is reasonably assured. Billings to customers or payments received from customers are included in deferred revenue on the balance sheet until all revenue recognition criteria are met. As of June 30, 2015 and March 31, 2015, the Company had approximately $1,452,000 and $259,000, respectively, in deferred revenue related to its grants, collaborative research programs and research service agreements. |
Revenue arrangements with multiple deliverables | Revenue arrangements with multiple deliverables The Company periodically enters into revenue arrangements that contain multiple deliverables. Judgment is required to properly identify the accounting units of the multiple deliverable transactions and to determine the manner in which revenue should be allocated among the accounting units. Moreover, judgment is used in interpreting the commercial terms and determining when all criteria of revenue recognition have been met for each deliverable in order for revenue recognition to occur in the appropriate accounting period. For multiple deliverable agreements, consideration is allocated at the inception of the agreement to all deliverables based on their relative selling price. The relative selling price for each deliverable is determined using vendor-specific objective evidence (“VSOE”) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, the Company uses its best estimate of the selling price for the deliverable. While changes in the allocation of the arrangement consideration between the units of accounting will not affect the amount of total revenue recognized for a particular sales arrangement, any material changes in these allocations could impact the timing of revenue recognition, which could affect the Company’s results of operations. The Company expects to periodically receive license fees for non-exclusive research licensing associated with funded research projects. License fees under these arrangements are recognized over the term of the contract or development period as it has been determined that such licenses do not have stand-alone value. |
Product revenue | Product revenue The Company recognizes product revenue at the time of shipment to the customer, provided all other revenue recognition criteria have been met. To date, the Company has not recognized significant revenue from commercial product sales. As our commercial sales increase, we expect to establish a reserve for estimated product returns that will be recorded as a reduction to revenue. That reserve will be maintained to account for future return of products sold in the current period. The reserve will be reviewed quarterly and will be estimated based on an analysis of our historical experience related to product returns. |
Revenue from research service agreements | Revenue from research service agreements For research service agreements that contain only a single or primary deliverable, the Company defers any up-front fees collected from customers, and recognizes revenue for the delivered element only when it determines there are no uncertainties regarding customer acceptance. During the three months ended June 30, 2015, the Company received a $1,000,000 up-front fee from a customer. As there were no delivered elements during the quarter, this amount remains in deferred revenue as of June 30, 2015. |
Research and development revenue under collaborative agreements | Research and development revenue under collaborative agreements The Company’s collaboration revenue consists of license and collaboration agreements that contain multiple elements, including non-refundable up-front fees, payments for reimbursement of third-party research costs, payments for ongoing research, payments associated with achieving specific development milestones and royalties based on specified percentages of net product sales, if any. The Company considers a variety of factors in determining the appropriate method of revenue recognition under these arrangements, such as whether the elements are separable, whether there are determinable fair values and whether there is a unique earnings process associated with each element of a contract. The Company recognizes revenue from research funding under collaboration agreements when earned on a “proportional performance” basis as research hours are incurred. The Company performs services as specified in each respective agreement on a best-efforts basis, and is reimbursed based on labor hours incurred on each contract. The Company initially defers revenue for any amounts billed or payments received in advance of the services being performed, and recognizes revenue pursuant to the related pattern of performance, based on total labor hours incurred relative to total labor hours estimated under the contract. |
Grant revenues | Grant revenues During August of 2013, the Company was awarded a research grant by a private, not-for-profit organization for up to $251,700, contingent on go/no-go decisions made by the grantor at the completion of each stage of research as outlined in the grant award. Revenues from the grant are based upon internal costs incurred that are specifically covered by the grant, plus an additional rate that provides funding for overhead expenses. Revenue is recognized when the Company incurs expenses that are related to the grant. Revenue recognized under this grant was approximately $9,000 and $30,000 for the three months ended June 30, 2015 and 2014, respectively. During September of 2014, the NIH awarded the Company a research grant totaling approximately $222,000. The grant provides for fixed payments based on the achievement of certain milestones. As such, revenue will be recognized upon completion of substantive milestones. Revenue recognized under this grant was approximately $74,000 for the three months ended June 30, 2015. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation in accordance with the Financial Accounting Standards Board’s (“FASB”) ASC Topic 718, Compensation — Stock Compensation, The Company accounts for equity instruments, including restricted stock or stock options, issued to non-employees in accordance with authoritative guidance for equity based payments to non-employees. Stock options issued to non-employees are accounted for at their estimated fair value determined using the Black-Scholes option-pricing model. The fair value of options granted to non-employees is re-measured as they vest, and the resulting increase in value, if any, is recognized as expense during the period the related services are rendered. Restricted stock issued to non-employees is accounted for at its estimated fair value as it vests. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company is required to record all components of comprehensive income (loss) in the financial statements in the period in which they are recognized. Net income (loss) and other comprehensive income (loss), including unrealized gains and losses on investments, are reported, net of their related tax effect, to arrive at comprehensive income (loss). For the three months ended June 30, 2015 and 2014, respectively, the comprehensive loss was equal to the net loss. |
Net loss per share | Net loss per share Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options and warrants, the assumed release of restriction of restricted stock units, and shares subject to repurchase as the effect would be anti-dilutive. No dilutive effect was calculated for the three months ended June 30, 2015 or 2014, as the Company reported a net loss for each respective period and the effect would have been anti-dilutive. Common stock equivalents excluded from computing diluted net loss per share were approximately 10.2 million and 7.8 million for the three months ended June 30, 2015 and 2014, respectively. |
Liquidity | Liquidity As of June 30, 2015, the Company had an accumulated deficit of approximately $130.8 million. The Company also had negative cash flows from operations of approximately $6.3 million during the three months ended June 30, 2015. Through June 30, 2015, the Company has financed its operations primarily through the sale of convertible notes, the private placement of equity securities, the public offering of common stock, and through revenue derived from grants, product sales, collaborative research agreements and research service agreements. Based on its current operating plan and available cash resources, the Company has sufficient resources to fund its business for at least the next twelve months. On June 23, 2015, the Company closed an underwritten public offering in which it sold an aggregate of 10,838,750 shares of common stock and raised gross proceeds of approximately $46.1 million. The Company’s future capital needs will depend on the revenues it generates through its commercialization efforts and the resources it elects to spend to pursue its product development efforts and implement its business plan. As a result, the Company cannot predict with certainty when it may be required to secure additional capital to fund its future operations. The Company intends to cover its future operating expenses through cash on hand, through revenue derived from grants, product sales, collaborative research agreements and research services agreements and through the issuance of additional equity or debt securities. Depending on market conditions, we cannot be sure that additional financing will be available when needed or that, if available, financing will be obtained on terms favorable to us or to our stockholders. Having insufficient funds may require us to delay, scale back, or eliminate some or all of our development programs or relinquish rights to our technology on less favorable terms than we would otherwise choose. Failure to obtain adequate financing could eventually adversely affect our ability to operate as a going concern. If we raise additional funds from the issuance of equity securities, substantial dilution to our existing stockholders would likely result. If we raise additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict our ability to operate our business. |
Description of Business and S15
Description of Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Estimated Fair Values of Liabilities Measured on Recurring Basis | The estimated fair values of the liabilities measured on a recurring basis are as follows: Fair Value Measurements at June 30 Balance at June 30, Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Warrant liability $ 26 — — $ 26 Balance at March Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Warrant liability $ 126 — — $ 126 |
Activity for Liabilities Measured at Estimated Fair Value Using Unobservable Inputs | The following table presents the activity for liabilities measured at estimated fair value using unobservable inputs for the three months ended June 30, 2015: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Derivative Liability (in thousands) Balance at March 31, 2015 $ 126 Issuances — Adjustments to estimated fair value 38 Warrant liability removal due to settlements (138 ) Warrant liability reclassified to equity — Balance at June 30, 2015 $ 26 |
Derivative Liability (Tables)
Derivative Liability (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Assumptions Used to Value Derivative Liabilities at End of Each Reporting Period | The derivative liabilities were valued at the end of each reporting period using a Monte Carlo valuation model with the following assumptions: June 30, 2015 March 31, 2015 June 30, 2014 Closing price per share of common stock $ 3.77 $ 3.54 $ 8.35 Exercise price per share $ 1.00 $ 1.00 $ 1.00 Expected volatility 73.90 % 76.80 % 78.20 % Risk-free interest rate 0.64 % 0.56 % 1.62 % Dividend yield — — — Remaining expected term of underlying securities (years) 1.71 1.96 2.71 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Summary of Company's Restricted Stock Award Activity | A summary of the Company’s restricted stock award activity from March 31, 2015 through June 30, 2015 is as follows: Number of Shares Unvested at March 31, 2015 258,750 Granted — Vested (6,250 ) Canceled / forfeited (2,500 ) Unvested at June 30, 2015 250,000 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the three months ended June 30, 2015 is as follows: Options Outstanding Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at March 31, 2015 7,113,548 $ 5.21 $ 4,969,499 Options granted 1,762,641 $ 4.92 Options canceled (24,003 ) $ 5.75 Options exercised (25,503 ) $ 3.01 $ 61,484 Outstanding at June 30, 2015 8,826,683 $ 5.16 $ 5,493,770 Vested and Exercisable at June 30, 2015 3,684,516 $ 3.99 $ 4,641,630 |
Fair Value of Employee Stock Options | The fair value of stock options was estimated at the grant date using the following weighted average assumptions: Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 Dividend yield — — Volatility 74.25 % 78.02 % Risk-free interest rate 1.65 % 1.56 % Expected life of options 6.00 years 6.00 years Weighted average grant date fair value $ 3.22 $ 4.94 |
Summary of Warrant Activity | The following table summarizes warrant activity for the three months ended June 30, 2015: Warrants Weighted- Average Exercise Price Balance at March 31, 2015 1,178,109 $ 2.59 Granted — $ - Exercised (38,234 ) $ 1.00 Cancelled (37,500 ) $ 7.36 Balance at June 30, 2015 1,102,375 $ 2.49 |
Common Stock Reserved for Future Issuance | Common stock reserved for future issuance consisted of the following at June 30, 2015: Common stock warrants outstanding 1,102,375 Common stock options outstanding under the 2008 Plan 622,192 Common stock options outstanding and reserved under the 2012 Plan 9,392,028 Total 11,116,595 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments Required under Operating Leases that have Initial or Remaining Non-Cancelable Lease Terms in Excess of One Year | Future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of June 30, 2015, are as follows (in thousands): Fiscal year ended March 31, 2016 $ 861 Fiscal year ended March 31, 2017 1,157 Fiscal year ended March 31, 2018 1,145 Fiscal year ended March 31, 2019 1,041 Fiscal year ended March 31, 2020 1,072 Thereafter 1,571 Total $ 6,847 |
Description of Business and S19
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jun. 23, 2015 | Sep. 30, 2014 | Aug. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Accumulated deficit | $ (130,786,000) | $ (122,295,000) | ||||
Cash flow from operations | $ 6,295,000 | $ 3,365,000 | ||||
Sale of common stock shares | 10,838,750 | 25,503 | 60,522 | |||
Gross proceeds from sale of common stock shares | $ 46,100,000 | |||||
Restricted cash | $ 78,800 | 78,800 | ||||
Inventory | 69,000 | 66,000 | ||||
Obsolete inventory reserve | $ 32,000 | 31,000 | ||||
Estimated useful life of the fixed assets | The estimated useful lives of the fixed assets range between three and seven years. | |||||
Impairment of long-lived assets | $ 0 | |||||
Revenue recognized under grants | 83,000 | $ 30,000 | ||||
Dilutive effect | $ 0 | $ 0 | ||||
Common stock equivalents excluded from computing diluted net loss per share | 10,200,000 | 7,800,000 | ||||
NIH Research Grants [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized under grants | $ 74,000 | |||||
Revenue recognized under grants | $ 222,000 | |||||
Private, Not-for-Profit Organization [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized under grants | 9,000 | $ 30,000 | ||||
Research and Development Services [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred revenue | 1,452,000 | $ 259,000 | ||||
Research and Development Services [Member] | Up Front Payment Arrangement [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred revenue | $ 1,000,000 | |||||
Maximum [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Maturity of highly liquid investment | 90 days | |||||
Useful life of fixed assets, range | 7 years | |||||
Maximum [Member] | Private, Not-for-Profit Organization [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized under grants | $ 251,700 | |||||
Minimum [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of fixed assets, range | 3 years |
Description of Business and S20
Description of Business and Summary of Significant Accounting Policies - Estimated Fair Values of Liabilities Measured on Recurring Basis (Detail) - Warrants [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrant liability | $ 26 | $ 126 |
Quoted Prices in Active Markets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrant liability | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrant liability | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrant liability | 26 | 126 |
Significant Other Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Warrant liability | $ 26 | $ 126 |
Description of Business and S21
Description of Business and Summary of Significant Accounting Policies - Activity for Liabilities Measured at Estimated Fair Value Using Unobservable Inputs (Detail) - Significant Other Unobservable Inputs (Level 3) [Member] - Warrants [Member] $ in Thousands | 3 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Warrant Derivative Liability, Beginning balance | $ 126 |
Issuances | 0 |
Adjustments to estimated fair value | 38 |
Warrant liability removal due to settlements | (138) |
Warrant liability reclassified to equity | 0 |
Warrant Derivative Liability, Ending balance | $ 26 |
Derivative Liability - Addition
Derivative Liability - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2015 | |
Derivative [Line Items] | |||||||
Warrants maturity term | 5 years | 5 years | 5 years | 5 years | |||
Estimated fair value of the outstanding warrant liabilities | $ 26,000 | $ 126,000 | |||||
Change in fair value of warrant liabilities | $ 38,000 | $ 30,000 | |||||
Exercised derivative liabilities | 38,234 | 8,647 | |||||
Warrants [Member] | |||||||
Derivative [Line Items] | |||||||
Estimated fair value of the outstanding warrant liabilities | $ 100,000 | ||||||
Warrants [Member] | Maximum [Member] | |||||||
Derivative [Line Items] | |||||||
Estimated fair value of the outstanding warrant liabilities | $ 100,000 |
Derivative Liability - Assumpti
Derivative Liability - Assumptions Used to Value Derivative Liabilities at Closing Dates of Private Placements (Detail) - Warrant Derivative Liability [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Closing price per share of common stock | $ 3.77 | $ 8.35 | $ 3.54 |
Exercise price per share | $ 1 | $ 1 | $ 1 |
Expected volatility | 73.90% | 78.20% | 76.80% |
Risk-free interest rate | 0.64% | 1.62% | 0.56% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Remaining expected term of underlying securities (years) | 1 year 8 months 16 days | 2 years 8 months 16 days | 1 year 11 months 16 days |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Jun. 23, 2015 | Jun. 18, 2015 | Aug. 02, 2013 | Nov. 30, 2013 | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2015 | Feb. 27, 2015 | Aug. 31, 2013 | Jul. 17, 2013 | Jan. 31, 2012 | May. 31, 2008 |
Class Of Stock [Line Items] | |||||||||||||
Issuance of common stock | 92,426,404 | 81,536,724 | |||||||||||
Offering price per share | $ 4.50 | ||||||||||||
Proceeds from issuance of common stock | $ 43,400,000 | ||||||||||||
Underwriting discounts and commissions and other offering expenses | $ 3,200,000 | ||||||||||||
Issuance of common stock from stock options exercises, net, Shares | 10,838,750 | 25,503 | 60,522 | ||||||||||
Gross proceeds from sale of common stock shares | $ 46,100,000 | ||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||||||
Issuance of common stock from warrant exercises, net, Shares | 30,186 | 110,600 | |||||||||||
Warrants exercised | 38,234 | 111,647 | |||||||||||
Stock option exercised | 25,503 | 60,522 | |||||||||||
Stock option granted with immediate vesting | 2,259 | 2,301 | |||||||||||
Research and development expense [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Total employee stock-based compensation recorded as operating expenses | $ 0 | $ 4,000 | |||||||||||
General and administrative expense [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Total employee stock-based compensation recorded as operating expenses | $ 103,000 | 129,000 | |||||||||||
Restricted stock units (RSUs) [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Restricted stock surrendered | 2,259 | 2,301 | |||||||||||
Restricted stock awards vested during the period | 6,250 | 6,250 | |||||||||||
Restricted stock [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Restricted stock awards vested during the period | 6,250 | ||||||||||||
Total employee stock-based compensation recorded as operating expenses | $ 103,000 | $ 133,000 | |||||||||||
Unrecognized restricted stock-based compensation expense | $ 115,000 | ||||||||||||
Total unrecognized compensation cost related, weighted average period | 5 months 16 days | ||||||||||||
Equity Distribution Agreement [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Issuance of common stock from stock options exercises, net, Shares | 2,532,180 | 0 | |||||||||||
Value of shares sold under equity distribution agreement | $ 19,600,000 | ||||||||||||
Equity Offering Sales Agreement [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Issuance of common stock | 0 | ||||||||||||
Issuance of common stock from stock options exercises, net, Shares | 1,000,000 | ||||||||||||
Gross proceeds from sale of common stock shares | $ 6,200,000 | ||||||||||||
Maximum [Member] | Equity Distribution Agreement [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Securities authorized for offer and sale, amount | $ 26,777,785 | ||||||||||||
Number of shares to be offered and sold in equity distribution agreement | 4,000,000 | ||||||||||||
Underwriting Agreement [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Stock option exercisable, period | 30 days | ||||||||||||
Additional common stock issued on exercise of option by underwriters | 1,413,750 | ||||||||||||
Equity Incentive Plan 2008 [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Common shares authorized to be issued | 1,521,584 | ||||||||||||
Termination date of Equity Incentive Plan | Jul. 1, 2018 | ||||||||||||
Shares issued during the year | 0 | ||||||||||||
Equity Incentive Plan 2012 [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Common shares authorized to be issued | 5,000,000 | 6,553,986 | |||||||||||
Shares available for issuance | 11,553,986 | ||||||||||||
Termination period of Equity Incentive Plan | 10 years | ||||||||||||
IPO [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Securities authorized for offer and sale, amount | $ 190,000,000 | $ 100,000,000 | |||||||||||
Secondary Offering [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Issuance of common stock | 10,350,000 | ||||||||||||
Offering price per share | $ 4.23 | ||||||||||||
Secondary Offering [Member] | Underwriting Agreement [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Issuance of common stock | 10,838,750 | ||||||||||||
Offering price per share | $ 4.25 | ||||||||||||
Gross proceeds from sale of common stock shares | $ 43,200,000 | ||||||||||||
Common stock, par value | $ 0.001 | ||||||||||||
Over Allotment Option | Underwriting Agreement [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Issuance of common stock | 9,425,000 | 1,350,000 | |||||||||||
Sale of stock price per share net of fees | $ 3.995 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Company's Restricted Stock Award Activity (Detail) - Restricted stock [Member] | 3 Months Ended |
Jun. 30, 2015shares | |
Class Of Stock [Line Items] | |
Beginning balance, Unvested, Number of Shares | 258,750 |
Granted, Number of Shares | 0 |
Vested, Number of Shares | (6,250) |
Canceled / forfeited, Number of Shares | (2,500) |
Ending balance, Unvested, Number of Shares | 250,000 |
Stockholders' Equity - Additi26
Stockholders' Equity - Additional Information 1 (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Class Of Stock [Line Items] | ||
Issuances of common stock from stock option exercises, Shares | 25,503 | 60,522 |
Weighted-average remaining contractual term of options exercisable | 7 years 6 months 7 days | |
Weighted-average remaining contractual term of options outstanding | 7 years 6 months 7 days | |
Total unrecognized compensation cost related to unvested stock option grants | $ 15,200,000 | |
Research and development expense [Member] | ||
Class Of Stock [Line Items] | ||
Total employee stock-based compensation recorded as operating expenses | 0 | $ 4,000 |
General and administrative expense [Member] | ||
Class Of Stock [Line Items] | ||
Total employee stock-based compensation recorded as operating expenses | $ 103,000 | $ 129,000 |
2012 Plan [Member] | ||
Class Of Stock [Line Items] | ||
Issuances of common stock from stock option exercises, Shares | 1,762,641 | 266,801 |
Stock options [Member] | ||
Class Of Stock [Line Items] | ||
Total employee stock-based compensation recorded as operating expenses | $ 1,677,000 | $ 1,405,000 |
Total unrecognized compensation cost related, weighted average period | 2 years 8 months 23 days | |
Stock options [Member] | Research and development expense [Member] | ||
Class Of Stock [Line Items] | ||
Total employee stock-based compensation recorded as operating expenses | $ 349,000 | 248,000 |
Stock options [Member] | General and administrative expense [Member] | ||
Class Of Stock [Line Items] | ||
Total employee stock-based compensation recorded as operating expenses | $ 1,328,000 | $ 1,157,000 |
Stock options [Member] | 2012 Plan [Member] | ||
Class Of Stock [Line Items] | ||
Award vesting conditions | stock options generally vest (i) on the one year anniversary of the grant date, (2) quarterly over a three year period, or (3) over a four-year period, with 25% vesting on either the one year anniversary of employment or the one year anniversary of the vesting commencement date | |
Stock options [Member] | 2012 Plan [Member] | Yearly Vesting [Member] | ||
Class Of Stock [Line Items] | ||
Award vesting percentage | 25.00% |
Stockholders' Equity - Summar27
Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options Outstanding, Beginning balance | 7,113,548 | |
Granted, Options Outstanding | 1,762,641 | |
Canceled, Options Outstanding | (24,003) | |
Exercised, Options Outstanding | (25,503) | (60,522) |
Options Outstanding, Ending balance | 8,826,683 | |
Vested and Exercisable, Options Outstanding | 3,684,516 | |
Weighted-Average Exercise Price, Options Beginning balance | $ 5.21 | |
Options granted, Weighted-Average Exercise Price | 4.92 | |
Options canceled, Weighted-Average Exercise Price | 5.75 | |
Options exercised, Weighted-Average Exercise Price | 3.01 | |
Weighted-Average Exercise Price, Options Ending balance | 5.16 | |
Vested and Exercisable, Weighted-Average Exercise Price | $ 3.99 | |
Aggregate Intrinsic Value, Options Beginning balance | $ 4,969,499 | |
Options Exercised, Aggregate Intrinsic Value | 61,484 | |
Aggregate Intrinsic Value, Options Ending balance | 5,493,770 | |
Vested and Exercisable at December 30, 2014 | $ 4,641,630 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value of Employee Stock Options (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Dividend yield | 0.00% | 0.00% | ||
Volatility | 76.78% | 96.90% | 74.25% | 78.02% |
Risk-free interest rate | 1.37% | 0.60% | 1.65% | 1.56% |
Expected life of options | 6 years | 6 years | ||
Weighted average grant date fair value | $ 3.22 | $ 4.94 |
Stockholders' Equity - Additi29
Stockholders' Equity - Additional Information 2 (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2012 | Mar. 31, 2011 | |
Class Of Stock [Line Items] | |||||||
Warrant liability reduced | $ 138,000 | $ 55,000 | |||||
Exercised derivative liabilities | 38,234 | 8,647 | |||||
Warrants to purchase common stock | 145,000 | 75,000 | |||||
Warrants maturity term | 5 years | 5 years | 5 years | 5 years | |||
Volatility | 76.78% | 96.90% | 74.25% | 78.02% | |||
Risk-free interest rate | 1.37% | 0.60% | 1.65% | 1.56% | |||
Recognized expenses of warrants | $ 101,000 | ||||||
Warrants earned, service period | 17 months | 12 months | |||||
Warrants issued | 50,000 | ||||||
Weighted-average remaining contractual term of options exercisable | 7 years 6 months 7 days | ||||||
Preferred stock, shares authorized | 25,000,000 | ||||||
Preferred stock, shares outstanding | 0 | ||||||
Consultation Service Agreement September 2014 | |||||||
Class Of Stock [Line Items] | |||||||
Recognized expenses of warrants | $ 273,000 | ||||||
Consultation Service Agreement November 2014 | |||||||
Class Of Stock [Line Items] | |||||||
Recognized expenses of warrants | $ 34,000 | ||||||
Minimum [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Warrants exercisable price, per share | $ 0.85 | ||||||
Maximum [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Warrants exercisable price, per share | $ 7.62 | ||||||
Warrants [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Number of warrant exercised through cashless | 38,234 | 8,647 | |||||
Cashless exercise for issuance of common stock | 30,186 | 7,600 | |||||
Number Of Warrants Exercised | 103,000 | ||||||
Warrants exercisable price, per share | $ 6.84 | $ 7.36 | |||||
Warrant liability reduced | $ 224,000 | ||||||
Amount reversed against operating expense | $ 130,000 | ||||||
Warrants liability | $ 138,000 | $ 55,000 | |||||
Estimated fair value of warrants | $ 309,000 | $ 404,000 | |||||
Weighted-average remaining contractual term of options exercisable | 2 years 1 month 21 days | ||||||
Warrants [Member] | Minimum [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Warrants exercisable price, per share | $ 1 | ||||||
Warrants [Member] | Maximum [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Warrants exercisable price, per share | $ 2.21 |
Stockholders' Equity - Summar30
Stockholders' Equity - Summary of Warrant Activity (Detail) - $ / shares | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options Outstanding, Beginning balance | 7,113,548 | |
Granted, Options Outstanding | 1,762,641 | |
Exercised, Options Outstanding | (25,503) | (60,522) |
Options Outstanding, Ending balance | 8,826,683 | |
Weighted-Average Exercise Price, Options Beginning balance | $ 5.21 | |
Granted, Weighted-Average Exercise Price | 4.92 | |
Exercised, Weighted-Average Exercise Price | 3.01 | |
Weighted-Average Exercise Price, Options Ending balance | $ 5.16 | |
Warrants [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options Outstanding, Beginning balance | 1,178,109 | |
Granted, Options Outstanding | 0 | |
Exercised, Options Outstanding | (38,234) | |
Cancelled, Options Outstanding | (37,500) | |
Options Outstanding, Ending balance | 1,102,375 | |
Weighted-Average Exercise Price, Options Beginning balance | $ 2.59 | |
Granted, Weighted-Average Exercise Price | 0 | |
Exercised, Weighted-Average Exercise Price | 1 | |
Cancelled, Weighted-Average Exercise Price | 7.36 | |
Weighted-Average Exercise Price, Options Ending balance | $ 2.49 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Detail) | Jun. 30, 2015shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 11,116,595 |
Warrants [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 1,102,375 |
Stock options [Member] | Equity Incentive Plan 2008 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 622,192 |
Stock options [Member] | Equity Incentive Plan 2012 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 9,392,028 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jan. 09, 2015USD ($)ft² | Dec. 05, 2013USD ($)ft² | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Mar. 12, 2015ft² |
Commitments And Contingencies Disclosure [Abstract] | ||||||
Leasehold improvements | $ | $ 337,000 | $ 481,000 | ||||
Rent expense | $ | 277,000 | $ 235,000 | ||||
Base rent under the lease | $ | $ 12,000 | $ 38,800 | $ 38,800 | |||
Base rent escalators | 3.00% | 3.00% | 3.00% | 3.00% | ||
Lease term with option to extend | 48 months | |||||
Increased office space size | 15,268 | 335 | ||||
Area of leased office space | 5,803 | 15,539 | ||||
Total office space under lease agreement | 30,807 | |||||
Lease expiration date | Aug. 1, 2016 | |||||
Rent expense per month | $ | $ 38,934 | |||||
Additional office space | 14,500 | |||||
Expansion premises commencement date | Sep. 1, 2014 | |||||
Increase of net adjustment leased space | 88 | |||||
Lease term | 36 months | |||||
Lease rental period start date | Feb. 1, 2015 | |||||
Lease rental period end date | Jan. 31, 2018 |
Commitments and Contingencies33
Commitments and Contingencies - Future Minimum Rental Payments Required under Operating Leases that have Initial or Remaining Non-Cancelable Lease Terms in Excess of One Year (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Fiscal year ended March 31, 2016 | $ 861 |
Fiscal year ended March 31, 2017 | 1,157 |
Fiscal year ended March 31, 2018 | 1,145 |
Fiscal year ended March 31, 2019 | 1,041 |
Fiscal year ended March 31, 2020 | 1,072 |
Thereafter | 1,571 |
Total | $ 6,847 |