Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2019 | Feb. 07, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Rezolute, Inc. | |
Entity Central Index Key | 0001509261 | |
Current Fiscal Year End Date | --06-30 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | RZLT | |
Entity Common Stock, Shares Outstanding | 293,320,891 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 18,182 | $ 11,573 |
Restricted cash | 1,530 | 0 |
Prepaid expenses and other | 257 | 571 |
Total current assets | 19,969 | 12,144 |
Right-of-use assets, net | 497 | 0 |
Property and equipment, net | 38 | 44 |
Intangible assets, net | 26 | 29 |
Lease security deposits | 35 | 35 |
Total assets | 20,565 | 12,252 |
Current liabilities: | ||
Accounts payable | 1,253 | 563 |
Accrued liabilities: | ||
Compensation and benefits | 800 | 790 |
Other | 641 | 526 |
Current portion of license fees payable to Xoma | 2,609 | 6,500 |
Current portion of operating lease liabilities | 239 | 0 |
Total current liabilities | 5,542 | 8,379 |
Operating lease liabilities, net of current portion | 287 | 0 |
Other non-current liabilities | 48 | 121 |
License fees payable to Xoma, net of current portion | 0 | 2,000 |
Total liabilities | 5,877 | 10,500 |
Commitments and contingencies (Notes 7) | ||
Stockholders' equity : | ||
Preferred Stock, $0.001 par value; 20,000 shares authorized, no shares issued | ||
Common Stock, $0.001 par value, 500,000 shares authorized; 293,321 and 210,390 shares issued and outstanding as of December 31, 2019 and June 30, 2019, respectively | 293 | 210 |
Additional paid-in capital | 153,044 | 128,445 |
Accumulated deficit | (138,649) | (126,903) |
Total stockholders' deficit | 14,688 | 1,752 |
Total liabilities and stockholders' deficit | $ 20,565 | $ 12,252 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
Condensed Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000 | 20,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000 | 500,000 |
Common stock, shares issued | 293,321 | 210,390 |
Common stock, shares outstanding | 293,321 | 210,390 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Research and development: | ||||
Compensation and benefits, net of related party reimbursements | $ 1,750 | $ 372 | $ 3,168 | $ 929 |
Clinical trial costs | 1,922 | 1 | 2,913 | 4 |
Consultants and outside services | 972 | 126 | 1,458 | 173 |
Material manufacturing costs | 254 | 472 | 441 | 545 |
Facilities and other | 140 | 338 | 292 | 588 |
Total research and development | 5,038 | 1,309 | 8,272 | 2,239 |
General and administrative: | ||||
Compensation and benefits | 981 | 1,382 | 2,317 | 2,632 |
Professional fees | 273 | 99 | 633 | 265 |
Facilities and other | 428 | 292 | 677 | 531 |
Total general and administrative | 1,682 | 1,773 | 3,627 | 3,428 |
Loss on sale of equipment | 46 | 0 | 23 | |
Impairment of long-lived assets | 33 | 0 | 33 | |
Total operating expenses | 6,720 | 3,161 | 11,899 | 5,723 |
Operating loss | (6,720) | (3,161) | (11,899) | (5,723) |
Non-operating income (expense): | ||||
Interest and other income | 54 | 287 | 153 | 395 |
Interest expense | (1,288) | (2,199) | ||
Net loss | $ (6,666) | $ (4,162) | $ (11,746) | $ (7,527) |
Net loss per common share - basic and diluted | $ (0.02) | $ (0.07) | $ (0.04) | $ (0.12) |
Weighted average number of common shares outstanding - basic and diluted | 293,321 | 62,124 | 282,277 | 62,145 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Jun. 30, 2018 | $ 62 | $ 90,161 | $ (94,184) | $ (3,961) |
Balance (in shares) at Jun. 30, 2018 | 62,166 | |||
Stock-based compensation | $ 0 | 1,694 | 0 | 1,694 |
Fair value of warrants issued to consultants for services | 0 | 6 | 0 | 6 |
Shareholder surrender of shares for no consideration | $ 0 | 0 | 0 | 0 |
Shareholder surrender of shares for no consideration (in shares) | (300) | |||
Net loss | $ 0 | 0 | (7,527) | (7,527) |
Balance at Dec. 31, 2018 | $ 62 | 91,861 | (101,711) | (9,788) |
Balance (in shares) at Dec. 31, 2018 | 61,866 | |||
Balance at Jun. 30, 2018 | $ 62 | 90,161 | (94,184) | (3,961) |
Balance (in shares) at Jun. 30, 2018 | 62,166 | |||
Net loss | 30,400 | |||
Balance at Jun. 30, 2019 | $ 210 | 128,445 | (126,903) | 1,752 |
Balance (in shares) at Jun. 30, 2019 | 210,390 | |||
Balance at Sep. 30, 2018 | $ 62 | 91,044 | (97,549) | (6,443) |
Balance (in shares) at Sep. 30, 2018 | 62,166 | |||
Stock-based compensation | 816 | 816 | ||
Fair value of warrants issued to consultants for services | 1 | 1 | ||
Net loss | (4,162) | (4,162) | ||
Balance at Dec. 31, 2018 | $ 62 | 91,861 | (101,711) | (9,788) |
Balance (in shares) at Dec. 31, 2018 | 61,866 | |||
Balance at Jun. 30, 2019 | $ 210 | 128,445 | (126,903) | 1,752 |
Balance (in shares) at Jun. 30, 2019 | 210,390 | |||
Stock-based compensation | $ 0 | 2,059 | 0 | 2,059 |
Fair value of warrants issued to consultants for services | 0 | 73 | 0 | 73 |
Issuance of common stock for cash: Related parties at $0.29 per share | $ 69 | 19,931 | 0 | 20,000 |
Issuance of common stock for cash: Related parties at $0.29 per share (in shares) | 68,966 | |||
Issuance of common stock for cash: Other Investors at $0.29 per share | $ 14 | 4,036 | 0 | 4,050 |
Issuance of common stock for cash: Other Investors at $0.29 per share (in shares) | 13,965 | |||
Advisory fees and other offering costs | $ 0 | (1,500) | 0 | (1,500) |
Net loss | 0 | 0 | (11,746) | (11,746) |
Balance at Dec. 31, 2019 | $ 293 | 153,044 | (138,649) | 14,688 |
Balance (in shares) at Dec. 31, 2019 | 293,321 | |||
Balance at Sep. 30, 2019 | $ 293 | 152,308 | (131,983) | 20,618 |
Balance (in shares) at Sep. 30, 2019 | 293,321 | |||
Stock-based compensation | 665 | 665 | ||
Fair value of warrants issued to consultants for services | 71 | 71 | ||
Net loss | (6,666) | (6,666) | ||
Balance at Dec. 31, 2019 | $ 293 | $ 153,044 | $ (138,649) | $ 14,688 |
Balance (in shares) at Dec. 31, 2019 | 293,321 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) | 6 Months Ended |
Dec. 31, 2019$ / shares | |
Condensed Consolidated Statements of Stockholders' Equity (Deficit) | |
Issuance of common stock for cash: Related parties, per share | $ 0.29 |
Issuance of common stock for cash: Other Investors, per share | $ 0.29 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (11,746) | $ (7,527) |
Stock-based compensation expense | 2,059 | 1,694 |
Depreciation and amortization expense | 9 | 42 |
Fair value of warrants issued for services | 73 | 6 |
Accretion of debt discount and issuance costs | 0 | 1,581 |
Impairment of long-lived assets | 0 | 33 |
Loss on sale of equipment | 0 | 23 |
Gain on lease termination | 0 | (168) |
Gain from change in fair value of embedded derivatives | 0 | (74) |
Changes in operating assets and liabilities: | ||
Decrease in prepaid expenses and other assets | 423 | 249 |
Increase in accounts payable | 690 | 337 |
Increase (decrease) in accrued liabilities | (28) | 721 |
Decrease in license fees payable to Xoma | (5,891) | 0 |
Net cash used in operating activities | (14,411) | (3,083) |
Cash Flows Provided by Investing Activities: | ||
Proceeds from sale of equipment | 0 | 195 |
Cash Flows From Financing Activities: | ||
Payments for advisory fees and other offering costs | (1,500) | 0 |
Proceeds from Series AA financing exclusivity payment | 0 | 1,500 |
Net cash provided by financing activities | 22,550 | 1,500 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 8,139 | (1,388) |
Cash, cash equivalents and restricted cash, beginning of period | 11,573 | 1,646 |
Cash, cash equivalents and restricted cash, end of period | 19,712 | 258 |
Cash, Cash equivalents and Restricted cash: | ||
Cash and cash equivalents, end of period | 18,182 | 258 |
Restricted cash, end of period | 1,530 | 0 |
Cash, cash equivalents and restricted cash, end of period | 19,712 | 258 |
Supplementary Cash Flow Information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | 0 | 0 |
Related Parties [Member] | ||
Cash Flows From Financing Activities: | ||
Proceeds from issuance of common stock | 20,000 | 0 |
Other Investors [Member] | ||
Cash Flows From Financing Activities: | ||
Proceeds from issuance of common stock | $ 4,050 | $ 0 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2019 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — NATURE OF OPERATIONS AND SUMMARY OF SIGNFICANT ACCOUNTING POLICIES Nature of Operations Rezolute, Inc. (the “Company”) is a clinical stage biopharmaceutical company incorporated in Delaware in 2010. Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the SEC for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The condensed consolidated balance sheet as of June 30, 2019, has been derived from the Company’s audited consolidated financial statements. The unaudited interim financial statements should be read in conjunction with the Company’s 2019 Form 10-K, which contains the Company’s audited financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operations, for the year ended June 30, 2019. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnote disclosures necessary for a comprehensive presentation of financial position, results of operations, and cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the three and six months ended December 31, 2019 are not necessarily indicative of the financial condition and results of operations that may be expected for any future interim period or for the fiscal year ending June 30, 2020. Segment Information The Company’s Chief Executive Officer also serves as the Company’s chief operating decision maker (the “CODM”) for purposes of allocating resources and assessing performance based on financial information of the Company. Since its inception, the Company has determined that its activities as a clinical stage biopharmaceutical company are classified as a single reportable operating segment. Reclassifications Certain amounts in the previously issued comparative interim financial statements for the three and six months ended December 31, 2018 have been reclassified to conform to the current interim financial statement presentation. These reclassifications had no effect on the previously reported net loss, working capital, cash flows and stockholders’ equity (deficit). Consolidation The Company has three wholly owned subsidiaries consisting of AntriaBio Delaware, Inc., Rezolute (Bio) Ireland Limited, and Rezolute Bio UK, Ltd. The accompanying consolidated financial statements include the accounts of the Company and its three wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts in the consolidated financial statements and the accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant accounting estimates include, but are not necessarily limited to, fair value of share-based payments and warrants, management’s assessment of going concern, clinical trial accrued liabilities, estimates of the probability and potential magnitude of contingent liabilities, and the valuation allowance for deferred tax assets due to continuing and expected future operating losses. Actual results could differ from those estimates. Risks and Uncertainties The Company's operations may be subject to significant risks and uncertainties including financial, operational, regulatory and other risks associated with a clinical stage company, including the potential risk of business failure as discussed further in Note 2. Research and Development Costs Research and development costs are expensed as incurred. Intangible assets for in-licensing costs incurred under license agreements with third parties are charged to expense, unless the licensing rights have separate economic value in alternative future research and development projects or otherwise. Clinical Trial Accruals Clinical trial costs are a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services. Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are deferred and recognized as expense in the period that the related goods are delivered, or services are performed. Stock Options with Market, Performance and Service Conditions The Company has granted stock options with vesting that is dependent on achieving certain market, performance and service conditions (“Hybrid Options”). For purposes of recognizing compensation cost, the Company determines the requisite service period as the longest of the derived, implicit and explicit vesting periods for each of the market, performance and service conditions, respectively. Compensation cost will be recognized beginning on such date that achievement of the performance condition is considered probable and continuing through the end of the requisite service period. Determination of the requisite service period and valuation of the Hybrid Options using the Black-Scholes-Merton (“BSM”) option-pricing model will be calculated on the date that the performance condition is considered probable. If the Hybrid Options do not ultimately vest as a result of failure to achieve a service condition, any previously recognized compensation cost will be reversed. Leases The Company determines if an arrangement includes a lease as of the date an agreement is entered into. Operating leases are included in right-of-use (“ROU”) assets and operating lease liabilities in the Company's Condensed Consolidated Balance Sheets. ROU assets and operating lease liabilities are initially recognized based on the present value of the future minimum lease payments at the commencement date of the lease. The Company generally uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments. The Company's leases may include options to extend or terminate the lease ; these options are included in the calculation of ROU assets and operating lease liabilities when it is reasonably certain that the Company will exercise the options. Lease expense is recognized on a straight-line basis over the lease term. The Company has elected not to apply the recognition requirements for short-term leases. For lease agreements with lease and non-lease components, the Company generally accounts for them separately. Recent Accounting Pronouncements Recently Adopted Standards. The following accounting standards were adopted during the six months ended December 31, 2019: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2016-02, Leases (Topic 842). This ASU requires the Company to recognize right-of-use assets and operating lease liabilities on the balance sheet and also disclose key information about leasing arrangements. On July 1, 2019, the Company adopted this new standard using the modified retrospective approach in accordance with Leases - Targeted Improvements (ASU No. 2018-11). The Company elected the package of practical expedients permitted under the transition guidance within ASU No. 2018-11, which among other things, allowed the Company to carry forward the historical lease classification of those leases in place as of July 1, 2019. The impact of adoption resulted in the recognition of right-of-use assets and operating lease liabilities for the discounted present value of the future lease payments on leases that were in effect on July 1, 2019, as follows (in thousands): Right-of-use assets recorded under new standard $ Operating lease liabilities recorded under new standard: Current $ 227 Long-term 406 Total 633 Eliminate previously existing deferred rent liability (28) Net increase in liabilities due to adoption of new standard $ 605 Please refer to Note 3 for further information about the right-of-use assets and operating lease liabilities recognized under this standard. Due to the Company’s election to adopt this standard effective July 1, 2019, rent expense was recognized under the accounting standard that was previously in effect for all periods prior to July 1, 2019. In June 2018, the FASB issued ASU 2018-07, “ Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ,” which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. The new standard does not apply to warrants issued to a lender or investor in a financing transaction. The Company adopted ASU 2018-07 effective July 1, 2019. Prior to the adoption of ASU 2018-07, the Company accounted for stock options and warrants granted to non-employees based on the fair value of the goods and services, or the equity instrument, whichever could be measured more reliably. If fair value of the equity instrument was more reliably determined, fair value of the equity instrument was required to be re-measured until the performance commitment date was achieved, which resulted in the recognition of subsequent changes in fair value. Under the new standard, the fair value of the goods and services acquired from non-employees is solely determined using the fair value of the equity instruments issued and measurement of fair value is fixed on the grant date. The Company also made an accounting policy election to recognize the impact of forfeitures of non-employee awards in the period that the forfeiture occurs. The impact of adopting this standard was immaterial to the Company’s unaudited condensed consolidated financial statements. Standard Required to be Adopted in Future Years. The following accounting standard is not yet effective; management has not completed its evaluation to determine the impact that adoption of this standard will have on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the guidance on the impairment of financial instruments. This update adds an impairment model (known as the current expected credit losses model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes, as an allowance, its estimate of expected credit losses. In November 2018, ASU 2016-13 was amended by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. ASU 2018-19 changes the effective date of the credit loss standards (ASU 2016-13) to fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Further, the ASU clarifies that operating lease receivables are not within the scope of ASC 326-20 and should instead be accounted for under the new leasing standard, ASC 842. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not currently expected to have a material impact on our financial statements upon adoption. |
LIQUIDITY
LIQUIDITY | 6 Months Ended |
Dec. 31, 2019 | |
LIQUIDITY | |
LIQUIDITY | NOTE 2 — LIQUIDITY The Company is in the clinical stage and has not yet generated any revenues. For the fiscal year ended June 30, 2019, the Company incurred a net loss of $30.4 million and net cash used in operating activities amounted to $15.3 million. For the six months ended December 31, 2019, the Company incurred a net loss of $11.7 million and net cash used in operating activities amounted to $14.4 million. As of December 31, 2019, the Company had an accumulated deficit of $138.6 million. As of December 31, 2019, the Company had cash, cash equivalents and restricted cash of $19.7 million and total liabilities of $5.9 million. As discussed in Note 5, in July and August 2019 the Company received aggregate net proceeds of approximately $22.6 million from the issuance of approximately 82.9 million shares of Common Stock to investors in a private placement. Management believes the Company’s existing cash, cash equivalents and restricted cash balance of $19.7 million will be adequate to carry out currently planned activities through February 2021. The Company has flexibility to delay clinical programs, if necessary, to ensure that adequate capital resources are available to fund activities for the next 12 months. Therefore, if additional financing is not obtained by the second quarter of calendar year 2020, management plans to delay clinical spending and reduce discretionary spending in order to ensure that the Company’s most important clinical initiatives continue to be funded for the next 12 months. Management believes it has the ability to effectively manage these expenditures to enable the Company to have sufficient liquidity to operate through February 2021. The Company expects to continue pursuing equity and/or debt financings to provide funding for clinical programs and other planned activities for the foreseeable future. There are no assurances that the Company will be able to obtain additional financing equity offerings and bank financings in the future. Even if these financing sources are available, they may be on terms that are not acceptable to management and the Company’s stockholders. |
RIGHT-OF-USE ASSETS
RIGHT-OF-USE ASSETS | 6 Months Ended |
Dec. 31, 2019 | |
RIGHT-OF-USE ASSETS | |
RIGHT-OF-USE ASSETS | NOTE 3 — RIGHT-OF-USE ASSETS As discussed in Note 1, the Company adopted ASU 2016-02, Leases (Topic 842) effective July 1, 2019. As of July 1, 2019, the Company had two leases in effect, consisting of (i) a lease for its headquarters location in Redwood City, California that was entered into on January 25, 2019, that provides for monthly rent of approximately $21,000 through the expiration date in March 2022, and (ii) a lease for office space in Bend, Oregon entered into on February 7, 2019, that provides for monthly rent of approximately $2,700 through the expiration date in February 2021. The impact of adoption of ASU 2016-02 resulted in the recognition of right-of-use ("ROU") assets for $0.6 million and operating lease liabilities for the discounted present value of the future lease payments on these leases of approximately $0.6 million. For the three and six months ended December 31, 2019, under ASC 842 the Company had operating lease expense of approximately $71,000 and $129,000, respectively. For the three and six months ended December 31, 2018, under the previous lease accounting standard the Company had operating lease expense of approximately $151,000 and $303,000, respectively. The Company determined the operating lease liability of approximately $633,000 as of July 1, 2019 based upon a discount rate of 10.0% and assuming that the Company will not exercise its option to extend the headquarters lease for an additional three years. The discount rate represents the Company’s estimated incremental borrowing rate for debt with similar lender rights as the underlying operating lease terms. Balance Sheet Presentation As of December 31, 2019 and on the adoption date of July 1, 2019, the carrying value of ROU assets and operating lease liabilities are as follows (in thousands): December 31, July 1, 2019 2019 Right-of-Use Assets , net $ 497 $ 605 Operating Lease Liabilities: Current $ 239 $ 227 Long-term 287 406 Total $ 526 $ 633 As of December 31, 2019, the weighted average remaining lease term under operating leases was 2.1 years, and the weighted average discount rate for operating lease liabilities was 10.0%. For the six months ended December 31, 2019, cash paid for amounts included in the measurement of operating lease liabilities amounted to $136,000, which is included in net cash used in operating activities in the unaudited condensed consolidated statement of cash flows. Future Lease Payments Future payments under operating lease agreements as of December 31, 2019 are as follows (in thousands): Fiscal year ending June 30, Remainder of fiscal year 2020 $ 139 2021 272 2022 170 Total lease payments 581 Less imputed interest (55) Present value of operating lease liabilities $ 526 |
LICENSE AGREEMENTS
LICENSE AGREEMENTS | 6 Months Ended |
Dec. 31, 2019 | |
LICENSE AGREEMENTS | |
LICENSE AGREEMENTS | NOTE 4 — LICENSE AGREEMENTS Xoma License Agreement On December 6, 2017, the Company entered into a license agreement (“License Agreement”) with XOMA Corporation (“Xoma”), through its wholly-owned subsidiary, XOMA (US) LLC, pursuant to which Xoma granted an exclusive global license to the Company to develop and commercialize Xoma 358 (formerly X358, now RZ358) for all indications. On January 7, 2019, the License Agreement was amended whereby the Company was required to make five cash payments to Xoma totaling $8.5 million on or before specified staggered future dates (the “Future Cash Payments”). As a result of this amendment to the License Agreement, the Company recognized a liability in January 2019 for the entire $8.5 million of Future Cash Payments. The amended License Agreement provides that if future qualified financings occur before the Future Cash Payments are fully paid, the Company is required to pay Xoma 15% of the net proceeds from such financings (“Early Payments”) to be credited against the remaining unpaid Future Cash Payments in the reverse order of their future payment date. Obligations to make the Future Cash Payments following a qualified financing and the obligations to make Early Payments shall end when the Future Cash Payments are fully paid for the total of $8.5 million. As discussed in Note 5, the Company completed equity financings for net proceeds of approximately $22.6 million in July and August 2019, which resulted in the obligation to make Early Payments of approximately $3.4 million. Presented below is a summary of the amounts payable under the amended License Agreement along with cash payments made for the six months ended December 31, 2019 (in thousands): Balance Cash Payments Balance June 30, Early Scheduled December 31, Scheduled Payment Date 2019 Payments Payments 2019 September 30, 2019 $ 1,500 $ — $ (1,500) $ — December 31, 2019 1,000 — (1,000) — March 31, 2020 2,000 — — 2,000 June 30, 2020 2,000 (1,391) — 609 September 30, 2020 2,000 (2,000) — — Total 8,500 $ (3,391) $ (2,500) 2,609 Less long-term portion of payable (2,000) — Current portion of payable $ 6,500 $ 2,609 The amendment to the License Agreement also revised the amount the Company is required to expend on development of RZ358 and related licensed products and revised provisions with respect to the Company’s diligence efforts in conducting clinical studies. Additionally, upon the future commercialization of RZ358, the Company would be required to pay royalties to Xoma based on the net sales of the related products. As of December 31, 2019, Xoma owns approximately 8.1 million shares of the Company’s Common Stock. The License Agreement provides Xoma with the right and option to require the Company to use its best efforts to facilitate orderly sales of the shares to a third party or purchase the shares (the “Put Option”). Xoma may exercise the Put Option for up to a total of 2.5 million shares of Common Stock for the calendar year ending December 31, 2020, and up to an additional 2.5 million shares thereafter. If Xoma exercises the Put Option, the Company is required to use its best efforts to assist Xoma in facilitating the sale of shares to third-party purchasers or purchase the shares for its own account. The price per share under the Put Option is equal to the average of the closing bid and asked prices of the Common Stock on the date the Put Option is exercised. ActiveSite License Agreement On August 4, 2017, the Company entered into a Development and License Agreement with ActiveSite Pharmaceuticals, Inc. (“ActiveSite”) pursuant to which the Company acquired the rights to ActiveSite’s Plasma Kallikrein Inhibitor program (“PKI Portfolio”). The Company is initially using the PKI Portfolio to develop an oral PKI therapeutic for diabetic macular edema (RZ402) and may use the PKI Portfolio to develop other therapeutics for different indications. The ActiveSite License Agreement requires various milestone payments ranging from $1.0 million to $10.0 million when milestone events occur, up to $46.5 million of aggregate milestone payments. The first milestone payment for $1.0 million is due after completion of the preclinical work and submission of an Initial Drug Application, or IND, to the U.S. Food and Drug Administration. The Company is also required to pay royalties equal to 2.0% of any sales of products that use the PKI Portfolio. Through December 31, 2019, no events occurred that would result in the requirement to make milestone payments and no royalties have been incurred. |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) | 6 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS' EQUITY (DEFICIT) | |
STOCKHOLDERS' EQUITY (DEFICIT) | NOTE 5 — STOCKHOLDERS’ EQUITY (DEFICIT) Changes in Stockholders’ Equity (Deficit) For changes in stockholders’ equity (deficit) for the six months ended December 31, 2019 and 2018, please refer to the unaudited condensed consolidated statements of stockholders’ equity (deficit) on page 3. The following table presents changes in stockholders’ equity for the three months ended December 31, 2019 and 2018: Additional Total Common Stock Paid-in Accumulated Stockholders’ Shares Amount Capital Deficit Equity (Deficit) Three Months Ended December 31, 2019: Balances, September 30, 2019 293,321 $ 293 $ 152,308 $ (131,983) $ 20,618 Stock-based compensation — — 665 — 665 Fair value of warrants issued to consultants for services — — 71 — 71 Net loss — — — (6,666) (6,666) Balances, December 31, 2019 293,321 $ 293 $ 153,044 $ (138,649) $ 14,688 Additional Total Common Stock Paid-in Accumulated Stockholders’ Shares Amount Capital Deficit Deficit Three Months Ended December 31, 2018: Balances, September 30, 2018 62,166 $ 62 $ 91,044 $ (97,549) $ (6,443) Stock-based compensation — — 816 — 816 Fair value of warrants issued to consultants for services — — 1 — 1 Shareholder surrender of shares for no consideration (300) — — — — Net loss — — — (4,162) (4,162) Balances, December 31, 2018 61,866 $ 62 $ 91,861 $ (101,711) $ (9,788) Equity Offerings In January 2019, the Company closed an equity offering with two new investors (the “New Investors”) that resulted in cash proceeds of $25.0 million and the issuance of an aggregate of approximately 113.6 million shares of the Company’s Common Stock in April 2019. The Company granted each of the New Investors a call option whereby upon the earlier of (i) December 31, 2020 and (ii) such date that the Company requests the New Investors to provide additional financing, each New Investor was entitled to purchase up to $10.0 million of Common Stock at a purchase price equal to the greater of (i) $0.29 per share or (ii) 75% of the volume weighted average closing price (“VWAP”) of the Company’s Common Stock during the thirty consecutive trading days prior to the date of the notice. On June 19, 2019, the Company entered into a financial advisory agreement to undertake a private placement (the "Private Placement") of (i) the shares of Common Stock issuable under the call option issued to the New Investors for a total of $20.0 million, plus (ii) $10 million of equity or equity equivalent securities to be issued to other investors. On July 23, 2019, the Company entered into a purchase agreement whereby the New Investors exercised their call option to purchase an aggregate of approximately 69.0 million shares of Common Stock for gross cash proceeds of $20.0 million. Since VWAP for the previous thirty consecutive trading days was $0.20 per share, the New Investors exercised the call option at a purchase price of $0.29 per share. In addition, during July and August 2019 other investors purchased an aggregate of approximately 14.0 million shares of Common Stock at a purchase price of $0.29 per share for gross cash proceeds of $4.1 million. Pursuant to the financial advisory agreement, the Company agreed to pay a fee of 6.0% of the gross proceeds received from these private placements. The total advisory fees and other offering costs related to these issuances in July and August 2019 amounted to approximately $1.5 million, resulting in net proceeds of $22.6 million for the six months ended December 31, 2019. As discussed in Note 4, the completion of these financings resulted in the obligation to make Early Payments of approximately $3.4 million under the License Agreement with Xoma. With the closing of the Private Placement, under the terms of the financial advisory agreement until August 2020, the financial advisors have a right of first refusal to serve as Joint Bookrunners or Joint Placement Agents in any offering the Company undertakes. Restricted Cash In connection with the private placement discussed above, one of the investors purchased approximately 13.1 million shares of Common Stock for gross proceeds of $3.8 million. The Company agreed to spend the proceeds for research and development of RZ358 or for the Company’s planned uplisting of its Common Stock to a national stock exchange. For the three and six months ended December 31, 2019, the Company made qualified expenditures of $1.6 million and $2.3 million, respectively. As of December 31, 2019, the restricted cash balance amounted to $1.5 million. Reverse Stock Split In August 2019, the Company’s Board of Directors approved a reverse stock split (the “Reverse Stock Split”) that was subject to stockholder approval at a special meeting that was concluded on October 28, 2019. Stockholders approved the proposal whereby the Board of Directors has the ability at any time on or before October 23, 2020 to execute the Reverse Stock Split and set the exchange ratio between 20 and 100 shares of the Company’s outstanding Common Stock, $0.001 par value per share, into one issued and outstanding share of Common Stock, without any change in the par value per share or the number of shares of common stock authorized. As of the date of this Report, the Board of Directors has not taken action to effect the Reverse Stock Split. If the Reverse Stock Split is subsequently implemented, the number of shares subject to outstanding stock options and warrants will also be adjusted with a corresponding increase in the related exercise prices. |
STOCK-BASED COMPENSATION AND WA
STOCK-BASED COMPENSATION AND WARRANTS | 6 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION AND WARRANTS | |
STOCK-BASED COMPENSATION AND WARRANTS | NOTE 6 — STOCK-BASED COMPENSATION AND WARRANTS Stock Option Plans The Company currently has three active stock option plans consisting of the 2015 Non-Qualified Stock Option Plan (the “2015 Plan”), the 2016 Non-Qualified Stock Option Plan, as amended (the “2016 Plan”), and the 2019 Non Qualified Stock Option Plan (the “2019 Plan”). On July 31, 2019, the 2019 Plan was adopted by the Board of Directors and provides authority to grant non-qualified stock options for up to 15.0 million shares of the Company’s Common Stock. The Company also has stock options outstanding to purchase up to approximately 2.2 million shares of Common Stock under the 2014 Stock and Incentive Plan (the “2014 Plan”) that terminated on March 21, 2019. Stock options outstanding under the 2014 Plan expire pursuant to their contractual provisions on various dates in 2021. Presented below is a summary of the number of shares authorized, outstanding, and available for future grants under each of the Company’s stock option plans (in thousands): Termination Number of Shares Description Date Authorized Outstanding Available 2014 Plan March 2019 2,185 2,185 — 2015 Plan February 2020 6,850 4,605 2,245 2016 Plan October 2021 28,000 26,231 1,769 2019 Plan July 2029 15,000 15,000 — Total 52,035 48,021 4,014 July 2019 Grants On July 31, 2019, the Board of Directors granted stock options for an aggregate of approximately 34.0 million shares of Common Stock to certain officers and employees at an exercise price of $0.29 per share. The closing price of the Company’s shares of Common Stock on the date of grant was approximately $0.21 per share. The option grants were designated for approximately 19.0 million shares under the 2016 Plan and 15.0 million shares under the 2019 Plan. As of July 31, 2019, the number of shares subject to stock options, the related fair value and compensation that was immediately recognized for vested options are as follows (in thousands): Time-Based Vesting Unvested Number of Shares Hybrid Vested Unvested Options Total Executive officers 3,588 (1) 11,562 (1)(3) 7,550 (2)(3) 22,700 Other employees 921 (1) 6,629 (1) 3,700 (2) 11,250 Total 4,509 18,191 11,250 (6) 33,950 Total fair value $ 817 (4) $ 3,297 (5) (1) Stock options are subject to time-based vesting in two tranches, whereby (i) 25% of such options are immediately exercisable for employees who have been employed by the Company for more than one year, and for employees that have been employed by the Company less than one year, 25% of such options will vest on the one year anniversary of the employee’s start date, and (ii) the remaining 75% of the stock options will vest ratably over a period of 36 months beginning on the vesting date for the initial 25% tranche. (2) Stock options that commence vesting upon the achievement of market, performance and service conditions (‘Hybrid Options”). These options will vest ratably over a period of 36 months beginning when all of the following have occurred: (i) the option recipient has been employed by the Company for at least one year, (ii) the Company’s shares of Common Stock have been listed for trading on a national stock exchange, and (iii) such date no later than July 31, 2023, when the Company’s closing stock price exceeds $0.58 per share for 20 trading days in any consecutive 30 day period. (3) In August 2019, an executive officer terminated employment which resulted in forfeiture of stock options shown in the table above with time-based vesting for 0.8 million shares and Hybrid Options for 0.4 million shares. (4) Represents the aggregate grant date fair value for stock options that were immediately vested on the grant date, which is included in stock-based compensation expense for the six months ended December 31, 2019. (5) Represents the aggregate grant date fair value for stock options that were not immediately vested on the grant date and will be charged to expense from the grant date through the respective vesting dates through July 2023. (6) The Company has not recognized any expense related to these stock options for the three and six months ended December 31, 2019, since it is not yet probable that the performance condition will be achieved. The Company will begin recognizing compensation expense at such time that the performance condition is probable and continuing through the end of the requisite service period. Determination of the requisite service period and valuation of the Hybrid Options will be calculated on the date that the performance condition is considered probable. In November 2019, the Company granted an additional 1,995,000 shares to certain employees, a director and members of the scientific advisory board at an exercise price of $0.29. These options were granted under the 2015 Plan, vest ratably over periods ranging from 36 to 48 months and expire ten years after the grant date. The estimated fair value of these stock options was $0.2 million as of the grant date. Stock Options Outstanding The following table sets forth a summary of the combined stock option activity under all of the Company’s stock option plans for the six months ended December 31, 2019 (shares in thousands): Shares Price (1) Term (2) Outstanding, beginning of period 13,865 $ 1.60 6.4 Granted 35,945 0.29 Forfeited (1,789) 0.43 Outstanding, end of period 48,021 0.66 8.6 Vested, end of period 17,237 1.20 7.0 (1) Represents the weighted average exercise price. (2) Represents the weighted average remaining contractual term for the number of years until the stock options expire. Stock-based compensation expense is included in compensation and benefits under the following captions in the unaudited condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Research and development $ 351 $ 61 $ 925 $ 191 General and administrative 314 755 1,134 1,503 Total $ 665 $ 816 $ 2,059 $ 1,694 Unrecognized stock-based compensation expense related to stock options that provide solely for time-based vesting as of December 31, 2019 is approximately $4.8 million. This amount is expected to be recognized over a remaining weighted average period of 2.2 years. Unrecognized compensation cost has not yet been determined for an aggregate of 11,250,000 shares for the Hybrid Options since the valuation is required to be performed on the date that the performance condition becomes probable. However, based on preliminary estimates using the BSM option-pricing model, management believes the aggregate fair value will be approximately $2.0 million before adjusting for forfeitures. For the six months ended December 31, 2019, the aggregate fair value of stock options granted for approximately 24.7 million shares of Common Stock that provide solely for time-based vesting, amounted to $4.3 million or approximately $0.18 per share as of the grant date. Fair value was computed using the BSM option-pricing model and will result in the recognition of compensation cost ratably over the expected vesting period of the stock options. For the six months ended December 31, 2019, the fair value of each time-based option was estimated on the date of grant using the BSM option-pricing model, with the following weighted-average assumptions: Valuation Inputs Fair value of common stock on grant date $ 0.21 Exercise price of stock options 0.29 Expected volatility 118 % Risk free interest rate 1.9 % Expected term (years) 6.5 Dividend yield % Warrants The Company has issued warrants in conjunction with various debt and equity financings and for services. For the three and six months ended December 31, 2019, no warrants were exercised. Presented below is a summary of warrant activity for the six months ended December 31, 2019 (shares in thousands): Shares Price (1) Term (2) Outstanding, beginning of period 45,997 $ 1.34 2.3 Warrants issued for consulting services 700 (3) 0.29 Warrant expirations (361) 1.90 Outstanding, end of period 46,336 1.32 1.9 (1) Represents the weighted average exercise price. (2) Represents the weighted average remaining contractual term for the number of years until the warrants expire. (3) Represents warrants granted for consulting services in November 2019 with an expiration date in November 2024. The fair value the warrants of $67,000 was determined using the BSM model. Since the warrants were immediately vested, this entire amount is included in consulting and outside services under research and development expenses for the three and six months ended December 31, 2019. Key assumptions for the valuation of these warrants included the closing price of the Company’s shares of common stock of $0.13 on the grant date, the exercise price of $0.29 per share, historical volatility of 119%, and an expected term of 5 years. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 7 — COMMITMENTS AND CONTINGENCIES Commitments Please refer to Notes 4 and 5 for further discussion of commitments to make milestone payments and to pay royalties under license agreements, and to make certain qualified expenditures related to the Company’s restricted cash balance. Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of operations in the normal course of business. As of December 31, 2019, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the Company’s results of operations. At each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies . Legal fees are expensed as incurred. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 8 — RELATED PARTY TRANSACTIONS Equity Issuances As discussed in Note 5, on July 23, 2019 the New Investors agreed to purchase an aggregate of approximately 69.0 million shares of Common Stock at an issuance price of $0.29 per share for gross proceeds of $20.0 million. This purchase was made pursuant to the terms of the call option that was issued in connection with an equity offering in January 2019 that resulted in gross proceeds of $25.0 million. The New Investors currently own an aggregate of approximately 62% of the Company’s outstanding shares of Common Stock. Master Services Agreement Effective July 1, 2019, the Company entered into a Master Services Agreement (“MSA”) with the New Investors whereby the Company agreed to assist the New Investors in an evaluation of their long acting growth hormone program referred to as GX-H9. For the six months ended December 31, 2019, the Company charged the New Investors for employee services of $103,000 and reimbursable expenses incurred with unrelated parties of $144,000, for a total of approximately $247,000. As of December 31, 2019, the Company had collected all of these receivables. Amounts charged under the MSA for employee services are reflected as a reduction of research and development compensation costs in the accompanying unaudited condensed consolidated statement of operations for the six months ended December 31, 2019. |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION | 6 Months Ended |
Dec. 31, 2019 | |
SUPPLEMENTAL FINANCIAL INFORMATION | |
SUPPLEMENTAL FINANCIAL INFORMATION | NOTE 9 —SUPPLEMENTAL FINANCIAL INFORMATION Bonuses and Termination of Employment Agreement On July 31, 2019, the Board of Directors approved cash bonus payments to three executive officers for past services totaling $448,000. The liability is included in accrued compensation and benefits in the consolidated balance sheet as of June 30, 2019. In August 2019, the Company paid the cash bonus payments to the three executive officers. On July 31, 2019, the Company also entered into an employment agreement with an executive officer that provided for an annual base salary of $265,000, which was subsequently terminated in August 2019. Interest and Other Income Interest and other income are as follows for the three and six months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Interest income $ 54 $ — $ 153 $ — Gain on lease termination — 168 — 168 Gain from change in fair value of embedded derivatives — 55 — 74 Rental income — 64 — 153 Total $ 54 $ 287 $ 153 $ 395 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Income Taxes | NOTE 10 — INCOME TAXES Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date operating results, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating results for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. For the three and six months ended December 31, 2019, the Company did not record any income tax benefit due to a full valuation allowance on its deferred tax assets. The Company did not have any material changes to its conclusions regarding valuation allowances for deferred income tax assets or uncertain tax positions for the three and six months ended December 31, 2019 and 2018. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 11 — EARNINGS PER SHARE For the three and six months ended December 31, 2019 and 2018, basic and diluted net loss per share were the same since all common stock equivalents were anti-dilutive. As of December 31, 2019 and 2018, the following outstanding potential common stock equivalents were excluded from the computation of diluted net loss per share since the impact of inclusion was anti-dilutive (in thousands): 2019 2018 Stock options 48,021 18,701 Warrants 46,336 45,666 Total 94,357 64,367 |
FINANCIAL INSTRUMENTS AND SIGNI
FINANCIAL INSTRUMENTS AND SIGNIFICANT CONCENTRATIONS | 6 Months Ended |
Dec. 31, 2019 | |
FINANCIAL INSTRUMENTS AND SIGNIFICANT CONCENTRATIONS | |
FINANCIAL INSTRUMENTS AND SIGNIFICANT CONCENTRATIONS | NOTE 12 — FINANCIAL INSTRUMENTS AND SIGNIFICANT CONCENTRATIONS Fair Value Measurements Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it transacts and considers assumptions that market participants would use when pricing the asset or liability. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair measurement: Level 1—Quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2—Other than quoted prices included in Level 1 that are observable for the asset and liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3—Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any market activity for the asset or liability at measurement date. Due to the relatively short maturity of the respective instruments, the fair value of cash and cash equivalents, restricted cash, receivables from related parties, accounts payable and accrued liabilities approximated their carrying values as of December 31, 2019 and June 30, 2019. The Company did not have any assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and June 30, 2019. The Company’s policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the three and six months ended December 31, 2019 and 2018, the Company did not have any transfers of its assets or liabilities between levels of the fair value hierarchy. Significant Concentrations Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash and cash equivalents at high-quality financial institutions. For the six months ended December 31, 2019, cash deposits have exceeded the amount of federal insurance provided on such deposits. As of December 31, 2019 and June 30, 2019, the Company had cash, cash equivalents, and restricted cash with a single financial institution with an aggregate balance of $19.7 million and $11.6 million, respectively. The Company has never experienced any losses related to its investments in cash and cash equivalents. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13 — SUBSEQUENT EVENT In January 2020, the Company’s Board of Directors approved bonus payments to the Company’s executive officers and employees for a total of approximately $0.7 million. These bonuses related to services performed during 2019. Accordingly, the Company recognized this amount as compensation expense for the three and six months ended December 31, 2019. |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations | Nature of Operations Rezolute, Inc. (the “Company”) is a clinical stage biopharmaceutical company incorporated in Delaware in 2010. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the SEC for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The condensed consolidated balance sheet as of June 30, 2019, has been derived from the Company’s audited consolidated financial statements. The unaudited interim financial statements should be read in conjunction with the Company’s 2019 Form 10-K, which contains the Company’s audited financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operations, for the year ended June 30, 2019. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnote disclosures necessary for a comprehensive presentation of financial position, results of operations, and cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the three and six months ended December 31, 2019 are not necessarily indicative of the financial condition and results of operations that may be expected for any future interim period or for the fiscal year ending June 30, 2020. |
Segment Information | Segment Information The Company’s Chief Executive Officer also serves as the Company’s chief operating decision maker (the “CODM”) for purposes of allocating resources and assessing performance based on financial information of the Company. Since its inception, the Company has determined that its activities as a clinical stage biopharmaceutical company are classified as a single reportable operating segment. |
Reclassifications | Reclassifications Certain amounts in the previously issued comparative interim financial statements for the three and six months ended December 31, 2018 have been reclassified to conform to the current interim financial statement presentation. These reclassifications had no effect on the previously reported net loss, working capital, cash flows and stockholders’ equity (deficit). |
Consolidation | Consolidation The Company has three wholly owned subsidiaries consisting of AntriaBio Delaware, Inc., Rezolute (Bio) Ireland Limited, and Rezolute Bio UK, Ltd. The accompanying consolidated financial statements include the accounts of the Company and its three wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts in the consolidated financial statements and the accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant accounting estimates include, but are not necessarily limited to, fair value of share-based payments and warrants, management’s assessment of going concern, clinical trial accrued liabilities, estimates of the probability and potential magnitude of contingent liabilities, and the valuation allowance for deferred tax assets due to continuing and expected future operating losses. Actual results could differ from those estimates. |
Risks and Uncertainties | Risks and Uncertainties The Company's operations may be subject to significant risks and uncertainties including financial, operational, regulatory and other risks associated with a clinical stage company, including the potential risk of business failure as discussed further in Note 2. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Intangible assets for in-licensing costs incurred under license agreements with third parties are charged to expense, unless the licensing rights have separate economic value in alternative future research and development projects or otherwise. |
Clinical Trial Accruals | Clinical Trial Accruals Clinical trial costs are a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services. Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are deferred and recognized as expense in the period that the related goods are delivered, or services are performed. |
Stock Options with Market, Performance and Service Conditions | Stock Options with Market, Performance and Service Conditions The Company has granted stock options with vesting that is dependent on achieving certain market, performance and service conditions (“Hybrid Options”). For purposes of recognizing compensation cost, the Company determines the requisite service period as the longest of the derived, implicit and explicit vesting periods for each of the market, performance and service conditions, respectively. Compensation cost will be recognized beginning on such date that achievement of the performance condition is considered probable and continuing through the end of the requisite service period. Determination of the requisite service period and valuation of the Hybrid Options using the Black-Scholes-Merton (“BSM”) option-pricing model will be calculated on the date that the performance condition is considered probable. If the Hybrid Options do not ultimately vest as a result of failure to achieve a service condition, any previously recognized compensation cost will be reversed. |
Leases | Leases The Company determines if an arrangement includes a lease as of the date an agreement is entered into. Operating leases are included in right-of-use (“ROU”) assets and operating lease liabilities in the Company's Condensed Consolidated Balance Sheets. ROU assets and operating lease liabilities are initially recognized based on the present value of the future minimum lease payments at the commencement date of the lease. The Company generally uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments. The Company's leases may include options to extend or terminate the lease ; these options are included in the calculation of ROU assets and operating lease liabilities when it is reasonably certain that the Company will exercise the options. Lease expense is recognized on a straight-line basis over the lease term. The Company has elected not to apply the recognition requirements for short-term leases. For lease agreements with lease and non-lease components, the Company generally accounts for them separately. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Standards. The following accounting standards were adopted during the six months ended December 31, 2019: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2016-02, Leases (Topic 842). This ASU requires the Company to recognize right-of-use assets and operating lease liabilities on the balance sheet and also disclose key information about leasing arrangements. On July 1, 2019, the Company adopted this new standard using the modified retrospective approach in accordance with Leases - Targeted Improvements (ASU No. 2018-11). The Company elected the package of practical expedients permitted under the transition guidance within ASU No. 2018-11, which among other things, allowed the Company to carry forward the historical lease classification of those leases in place as of July 1, 2019. The impact of adoption resulted in the recognition of right-of-use assets and operating lease liabilities for the discounted present value of the future lease payments on leases that were in effect on July 1, 2019, as follows (in thousands): Right-of-use assets recorded under new standard $ Operating lease liabilities recorded under new standard: Current $ 227 Long-term 406 Total 633 Eliminate previously existing deferred rent liability (28) Net increase in liabilities due to adoption of new standard $ 605 Please refer to Note 3 for further information about the right-of-use assets and operating lease liabilities recognized under this standard. Due to the Company’s election to adopt this standard effective July 1, 2019, rent expense was recognized under the accounting standard that was previously in effect for all periods prior to July 1, 2019. In June 2018, the FASB issued ASU 2018-07, “ Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ,” which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. The new standard does not apply to warrants issued to a lender or investor in a financing transaction. The Company adopted ASU 2018-07 effective July 1, 2019. Prior to the adoption of ASU 2018-07, the Company accounted for stock options and warrants granted to non-employees based on the fair value of the goods and services, or the equity instrument, whichever could be measured more reliably. If fair value of the equity instrument was more reliably determined, fair value of the equity instrument was required to be re-measured until the performance commitment date was achieved, which resulted in the recognition of subsequent changes in fair value. Under the new standard, the fair value of the goods and services acquired from non-employees is solely determined using the fair value of the equity instruments issued and measurement of fair value is fixed on the grant date. The Company also made an accounting policy election to recognize the impact of forfeitures of non-employee awards in the period that the forfeiture occurs. The impact of adopting this standard was immaterial to the Company’s unaudited condensed consolidated financial statements. Standard Required to be Adopted in Future Years. The following accounting standard is not yet effective; management has not completed its evaluation to determine the impact that adoption of this standard will have on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the guidance on the impairment of financial instruments. This update adds an impairment model (known as the current expected credit losses model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes, as an allowance, its estimate of expected credit losses. In November 2018, ASU 2016-13 was amended by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. ASU 2018-19 changes the effective date of the credit loss standards (ASU 2016-13) to fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Further, the ASU clarifies that operating lease receivables are not within the scope of ASC 326-20 and should instead be accounted for under the new leasing standard, ASC 842. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not currently expected to have a material impact on our financial statements upon adoption. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of impact of adoption reflected in Consolidated financial statements | Right-of-use assets recorded under new standard $ Operating lease liabilities recorded under new standard: Current $ 227 Long-term 406 Total 633 Eliminate previously existing deferred rent liability (28) Net increase in liabilities due to adoption of new standard $ 605 |
RIGHT-OF-USE ASSETS (Tables)
RIGHT-OF-USE ASSETS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
RIGHT-OF-USE ASSETS | |
Summary of carrying value of ROU assets and operating lease liabilities | As of December 31, 2019 and on the adoption date of July 1, 2019, the carrying value of ROU assets and operating lease liabilities are as follows (in thousands): December 31, July 1, 2019 2019 Right-of-Use Assets , net $ 497 $ 605 Operating Lease Liabilities: Current $ 239 $ 227 Long-term 287 406 Total $ 526 $ 633 |
Summary of future lease payments related to operating lease agreements | Future payments under operating lease agreements as of December 31, 2019 are as follows (in thousands): Fiscal year ending June 30, Remainder of fiscal year 2020 $ 139 2021 272 2022 170 Total lease payments 581 Less imputed interest (55) Present value of operating lease liabilities $ 526 |
LICENSE AGREEMENTS (Tables)
LICENSE AGREEMENTS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
LICENSE AGREEMENTS | |
Summary of the amounts payable under the amended License Agreement along with cash payments made. | Presented below is a summary of the amounts payable under the amended License Agreement along with cash payments made for the six months ended December 31, 2019 (in thousands): Balance Cash Payments Balance June 30, Early Scheduled December 31, Scheduled Payment Date 2019 Payments Payments 2019 September 30, 2019 $ 1,500 $ — $ (1,500) $ — December 31, 2019 1,000 — (1,000) — March 31, 2020 2,000 — — 2,000 June 30, 2020 2,000 (1,391) — 609 September 30, 2020 2,000 (2,000) — — Total 8,500 $ (3,391) $ (2,500) 2,609 Less long-term portion of payable (2,000) — Current portion of payable $ 6,500 $ 2,609 |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS' EQUITY (DEFICIT) | |
Summary of changes in stockholder's equity | The following table presents changes in stockholders’ equity for the three months ended December 31, 2019 and 2018: Additional Total Common Stock Paid-in Accumulated Stockholders’ Shares Amount Capital Deficit Equity (Deficit) Three Months Ended December 31, 2019: Balances, September 30, 2019 293,321 $ 293 $ 152,308 $ (131,983) $ 20,618 Stock-based compensation — — 665 — 665 Fair value of warrants issued to consultants for services — — 71 — 71 Net loss — — — (6,666) (6,666) Balances, December 31, 2019 293,321 $ 293 $ 153,044 $ (138,649) $ 14,688 Additional Total Common Stock Paid-in Accumulated Stockholders’ Shares Amount Capital Deficit Deficit Three Months Ended December 31, 2018: Balances, September 30, 2018 62,166 $ 62 $ 91,044 $ (97,549) $ (6,443) Stock-based compensation — — 816 — 816 Fair value of warrants issued to consultants for services — — 1 — 1 Shareholder surrender of shares for no consideration (300) — — — — Net loss — — — (4,162) (4,162) Balances, December 31, 2018 61,866 $ 62 $ 91,861 $ (101,711) $ (9,788) |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND WARRANTS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION AND WARRANTS | |
Schedule of the number of shares authorized, outstanding, and available for future grants under stock option | Presented below is a summary of the number of shares authorized, outstanding, and available for future grants under each of the Company’s stock option plans (in thousands): Termination Number of Shares Description Date Authorized Outstanding Available 2014 Plan March 2019 2,185 2,185 — 2015 Plan February 2020 6,850 4,605 2,245 2016 Plan October 2021 28,000 26,231 1,769 2019 Plan July 2029 15,000 15,000 — Total 52,035 48,021 4,014 |
Schedule of options granted to executive officers and other employees | As of July 31, 2019, the number of shares subject to stock options, the related fair value and compensation that was immediately recognized for vested options are as follows (in thousands): Time-Based Vesting Unvested Number of Shares Hybrid Vested Unvested Options Total Executive officers 3,588 (1) 11,562 (1)(3) 7,550 (2)(3) 22,700 Other employees 921 (1) 6,629 (1) 3,700 (2) 11,250 Total 4,509 18,191 11,250 (6) 33,950 Total fair value $ 817 (4) $ 3,297 (5) (1) Stock options are subject to time-based vesting in two tranches, whereby (i) 25% of such options are immediately exercisable for employees who have been employed by the Company for more than one year, and for employees that have been employed by the Company less than one year, 25% of such options will vest on the one year anniversary of the employee’s start date, and (ii) the remaining 75% of the stock options will vest ratably over a period of 36 months beginning on the vesting date for the initial 25% tranche. (2) Stock options that commence vesting upon the achievement of market, performance and service conditions (‘Hybrid Options”). These options will vest ratably over a period of 36 months beginning when all of the following have occurred: (i) the option recipient has been employed by the Company for at least one year, (ii) the Company’s shares of Common Stock have been listed for trading on a national stock exchange, and (iii) such date no later than July 31, 2023, when the Company’s closing stock price exceeds $0.58 per share for 20 trading days in any consecutive 30 day period. (3) In August 2019, an executive officer terminated employment which resulted in forfeiture of stock options shown in the table above with time-based vesting for 0.8 million shares and Hybrid Options for 0.4 million shares. (4) Represents the aggregate grant date fair value for stock options that were immediately vested on the grant date, which is included in stock-based compensation expense for the six months ended December 31, 2019. (5) Represents the aggregate grant date fair value for stock options that were not immediately vested on the grant date and will be charged to expense from the grant date through the respective vesting dates through July 2023. (6) The Company has not recognized any expense related to these stock options for the three and six months ended December 31, 2019, since it is not yet probable that the performance condition will be achieved. The Company will begin recognizing compensation expense at such time that the performance condition is probable and continuing through the end of the requisite service period. Determination of the requisite service period and valuation of the Hybrid Options will be calculated on the date that the performance condition is considered probable. In November 2019, the Company granted an additional 1,995,000 shares to certain employees, a director and members of the scientific advisory board at an exercise price of $0.29. These options were granted under the 2015 Plan, vest ratably over periods ranging from 36 to 48 months and expire ten years after the grant date. The estimated fair value of these stock options was $0.2 million as of the grant date. |
Schedule of summary of combined stock option activity | The following table sets forth a summary of the combined stock option activity under all of the Company’s stock option plans for the six months ended December 31, 2019 (shares in thousands): Shares Price (1) Term (2) Outstanding, beginning of period 13,865 $ 1.60 6.4 Granted 35,945 0.29 Forfeited (1,789) 0.43 Outstanding, end of period 48,021 0.66 8.6 Vested, end of period 17,237 1.20 7.0 (1) Represents the weighted average exercise price. (2) Represents the weighted average remaining contractual term for the number of years until the stock options expire. |
Schedule of the fair value of stock options was estimated on the date of grant using the BSM option-pricing model using following weighted-average assumptions | Valuation Inputs Fair value of common stock on grant date $ 0.21 Exercise price of stock options 0.29 Expected volatility 118 % Risk free interest rate 1.9 % Expected term (years) 6.5 Dividend yield % |
Schedule of Stock-based compensation expense | Stock-based compensation expense is included in compensation and benefits under the following captions in the unaudited condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Research and development $ 351 $ 61 $ 925 $ 191 General and administrative 314 755 1,134 1,503 Total $ 665 $ 816 $ 2,059 $ 1,694 |
Summary of warrant activity | Presented below is a summary of warrant activity for the six months ended December 31, 2019 (shares in thousands): Shares Price (1) Term (2) Outstanding, beginning of period 45,997 $ 1.34 2.3 Warrants issued for consulting services 700 (3) 0.29 Warrant expirations (361) 1.90 Outstanding, end of period 46,336 1.32 1.9 (1) Represents the weighted average exercise price. (2) Represents the weighted average remaining contractual term for the number of years until the warrants expire. |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
SUPPLEMENTAL FINANCIAL INFORMATION | |
Schedule of interest expense | Three Months Ended Six Months Ended December 31, December 31, 2019 2018 2019 2018 Interest income $ 54 $ — $ 153 $ — Gain on lease termination — 168 — 168 Gain from change in fair value of embedded derivatives — 55 — 74 Rental income — 64 — 153 Total $ 54 $ 287 $ 153 $ 395 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
Summary of potential common stock equivalents outstanding were excluded from the computation of diluted net loss per share | As of December 31, 2019 and 2018, the following outstanding potential common stock equivalents were excluded from the computation of diluted net loss per share since the impact of inclusion was anti-dilutive (in thousands): 2019 2018 Stock options 48,021 18,701 Warrants 46,336 45,666 Total 94,357 64,367 |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of adoption (Details) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2019USD ($)item | Jul. 01, 2019USD ($) | Jun. 30, 2019USD ($) | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Right-of-use assets recorded under new standard | $ 497 | $ 605 | $ 0 |
Operating lease liabilities recorded under new standard: Current | 239 | 227 | 0 |
Operating lease liabilities recorded under new standard: Long-term | 287 | 406 | $ 0 |
Total | $ 526 | $ 633 | |
Number of wholly owned subsidiaries | item | 3 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Right-of-use assets recorded under new standard | $ 605 | ||
Operating lease liabilities recorded under new standard: Current | 227 | ||
Operating lease liabilities recorded under new standard: Long-term | 406 | ||
Total | 633 | ||
Eliminate deferred rent liability under current accounting standard | (28) | ||
Net increase in liabilities due to adoption of new standard | $ 605 |
LIQUIDITY (Details)
LIQUIDITY (Details) - USD ($) $ in Thousands, shares in Millions | Jul. 23, 2019 | Jan. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
LIQUIDITY | |||||||||||
Net loss | $ (6,666) | $ (4,162) | $ (11,746) | $ (7,527) | $ 30,400 | ||||||
Net cash used in operating activities | (14,411) | (3,083) | 15,300 | ||||||||
Accumulated deficit | (138,649) | (138,649) | (126,903) | ||||||||
Cash, cash equivalents and restricted cash | $ 19,700 | 19,712 | $ 258 | 19,712 | $ 258 | 11,573 | $ 1,646 | ||||
Liabilities | $ 5,877 | $ 5,877 | $ 10,500 | ||||||||
Cash proceeds from equity offering | $ 25,000 | $ 113,600 | $ 25,000 | $ 22,600 | |||||||
Number of shares issued | 69 | 82.9 |
RIGHT-OF-USE ASSETS - Additiona
RIGHT-OF-USE ASSETS - Additional Information (Details) | Jul. 01, 2019lease | Feb. 07, 2019USD ($) | Jan. 25, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Lessee, Lease, Description [Line Items] | |||||||
Number Of Leases | lease | 2 | ||||||
Cash paid for amounts included in measurement of operating lease liabilities | $ 136,000 | ||||||
Operating lease expense under the previous lease accounting standard | $ 71,000 | $ 151,000 | $ 129,000 | $ 303,000 | |||
Discount rate | 10.00% | 10.00% | |||||
Renewal term | 3 years | 3 years | |||||
CA | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Monthly rent | $ 21,000 | ||||||
OR | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Monthly rent | $ 2,700 |
RIGHT-OF-USE ASSETS - Assets an
RIGHT-OF-USE ASSETS - Assets and operating lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jul. 01, 2019 | Jun. 30, 2019 |
Carrying value of ROU assets and operating lease liabilities | |||
Right-of-Use Assets | $ 497 | $ 605 | $ 0 |
Operating Lease Liabilities: | |||
Current | 239 | 227 | 0 |
Long-term | 287 | 406 | $ 0 |
Total | $ 526 | $ 633 | |
Weighted average remaining lease term | 2 years 1 month 6 days | ||
Weighted average discount rate | 10.00% |
RIGHT-OF-USE ASSETS - Operating
RIGHT-OF-USE ASSETS - Operating lease agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jul. 01, 2019 |
Future lease payments related to operating lease agreements | ||
Remainder of fiscal year 2020 | $ 139 | |
2021 | 272 | |
2022 | 170 | |
Total lease payments | 581 | |
Less imputed interest | (55) | |
Present value of operating lease liabilities | $ 526 | $ 633 |
LICENSE AGREEMENTS (Detail)
LICENSE AGREEMENTS (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2019 | Jan. 07, 2019 | |
Cash activity | |||
Less long term portion of payable | $ 0 | $ (2,000) | |
Current portion of payable | 2,609 | 6,500 | |
License agreement | |||
Cash activity | |||
Early Payments | (3,391) | ||
Scheduled Payments | (2,500) | ||
Total license fee payable | 2,609 | 8,500 | $ 8,500 |
Less long term portion of payable | 0 | (2,000) | |
Current portion of payable | 2,609 | 6,500 | |
September 30, 2019 | License agreement | |||
Cash activity | |||
Early Payments | 0 | ||
Scheduled Payments | (1,500) | ||
Total license fee payable | 0 | 1,500 | |
December 31, 2019 | License agreement | |||
Cash activity | |||
Early Payments | 0 | ||
Scheduled Payments | (1,000) | ||
Total license fee payable | 0 | 1,000 | |
March 31, 2020 | License agreement | |||
Cash activity | |||
Early Payments | 0 | ||
Scheduled Payments | 0 | ||
Total license fee payable | 2,000 | 2,000 | |
June 30, 2020 | License agreement | |||
Cash activity | |||
Early Payments | (1,391) | ||
Scheduled Payments | 0 | ||
Total license fee payable | 609 | 2,000 | |
September 30, 2020 | License agreement | |||
Cash activity | |||
Early Payments | (2,000) | ||
Scheduled Payments | 0 | ||
Total license fee payable | $ 0 | $ 2,000 |
LICENSE AGREEMENT - ADDITIONAL
LICENSE AGREEMENT - ADDITIONAL INFORMATION - (Detail) - USD ($) shares in Millions, $ in Millions | Aug. 04, 2017 | Dec. 31, 2019 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Qualified Financing Future Cash Payments, Early Payments Obligation | $ 3.4 | |
License agreement | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Proceeds from Issuance of Private Placement, Net of Advisory Fees Payable | 22.6 | |
Qualified Financing Future Cash Payments, Early Payments Obligation | 3.4 | |
ActiveSite Pharmaceuticals, Inc. [Member] | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Maximum Amount of Milestone Events | 46.5 | |
First milestone payment due after completion of the preclinical work | $ 1 | |
Royalties percentage | 2.00% | |
Minimum | ActiveSite Pharmaceuticals, Inc. [Member] | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Milestone Payments | $ 1 | |
Maximum | ActiveSite Pharmaceuticals, Inc. [Member] | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Milestone Payments | $ 10 | |
Xoma | License agreement | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Stock Issued During Period, Shares, Other | 8.1 | |
Put Option [Member] | Xoma | License agreement | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Description Of Option Indexed To Issuers Equity Shares | Xoma may exercise the Put Option for up to a total of 2.5 million shares of Common Stock for the calendar year ending December 31, 2020, and up to an additional 2.5 million shares thereafter. |
STOCKHOLDERS' EQUITY (DEFICIT_2
STOCKHOLDERS' EQUITY (DEFICIT) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity | |||||
Balance | $ 20,618 | $ (6,443) | $ 1,752 | $ (3,961) | $ (3,961) |
Stock-based compensation | 665 | 816 | 2,059 | 1,694 | |
Fair value of warrants issued to consultants for services | 71 | 1 | 73 | 6 | |
Net loss | (6,666) | (4,162) | (11,746) | (7,527) | 30,400 |
Balance | 14,688 | (9,788) | 14,688 | (9,788) | 1,752 |
Common Stock | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance | $ 293 | $ 62 | $ 210 | $ 62 | $ 62 |
Balance (in shares) | 293,321 | 62,166 | 210,390 | 62,166 | 62,166 |
Stock-based compensation | $ 0 | $ 0 | |||
Fair value of warrants issued to consultants for services | 0 | 0 | |||
Shareholder surrender of shares for no consideration (in shares) | (300) | ||||
Net loss | 0 | 0 | |||
Balance | $ 293 | $ 62 | $ 293 | $ 62 | $ 210 |
Balance (in shares) | 293,321 | 61,866 | 293,321 | 61,866 | 210,390 |
Additional Paid-in Capital | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance | $ 152,308 | $ 91,044 | $ 128,445 | $ 90,161 | $ 90,161 |
Stock-based compensation | 665 | 816 | 2,059 | 1,694 | |
Fair value of warrants issued to consultants for services | 71 | 1 | 73 | 6 | |
Net loss | 0 | 0 | |||
Balance | 153,044 | 91,861 | 153,044 | 91,861 | 128,445 |
Accumulated Deficit | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance | (131,983) | (97,549) | (126,903) | (94,184) | (94,184) |
Stock-based compensation | 0 | 0 | |||
Fair value of warrants issued to consultants for services | 0 | 0 | |||
Net loss | (6,666) | (4,162) | (11,746) | (7,527) | |
Balance | $ (138,649) | $ (101,711) | $ (138,649) | $ (101,711) | $ (126,903) |
STOCKHOLDERS' EQUITY (DEFICIT_3
STOCKHOLDERS' EQUITY (DEFICIT) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 23, 2019 | Jun. 19, 2019 | Jan. 31, 2019 | Aug. 31, 2019 | Jul. 23, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 |
Class of Stock [Line Items] | ||||||||||||
Qualified expenditures | $ 1,600 | $ 2,300 | ||||||||||
Restricted cash balance | $ 1,530 | $ 1,530 | $ 0 | |||||||||
Cash proceeds from equity offering | $ 25,000 | $ 113,600 | $ 25,000 | $ 22,600 | ||||||||
Stock Issued During Period, Shares, New Issues | 69,000,000 | 82,900,000 | ||||||||||
Purchase of Common Stock | 10,000,000 | |||||||||||
Share Price | $ 0.29 | $ 0.29 | ||||||||||
Volume weighted average closing price of common stock | 75.00% | |||||||||||
Purchase of Common Stock | 10,000,000 | |||||||||||
Proceeds from Stock Options Exercised | $ 4,300 | |||||||||||
Early payments obligation | $ 3,400 | 3,400 | ||||||||||
Common Stock, No Par Value | $ 0.001 | $ 0.001 | ||||||||||
Maximum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 100 | |||||||||||
Minimum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | 20 | |||||||||||
Other Investors [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 10,000,000 | 14,000,000 | ||||||||||
Share Price | $ 0.29 | $ 0.29 | ||||||||||
Gross proceeds from issuance of common stock | $ 4,100 | $ 4,050 | $ 0 | |||||||||
Investor [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Cash proceeds from equity offering | $ 20,000 | |||||||||||
Stock Issued During Period, Shares, New Issues | 20,000,000 | 69,000,000 | ||||||||||
Share Price | $ 0.29 | $ 0.29 | ||||||||||
VWAP for the previous thirty consecutive trading days | $ 0.20 | |||||||||||
Percent of advisory fee payable | 6.00% | |||||||||||
Amount of advisory fee payable | $ 1,500 | $ 1,500 | ||||||||||
Proceeds from Stock Options Exercised | $ 20,000 | |||||||||||
Private Placement [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 13,100,000 | |||||||||||
Gross proceeds from issuance of common stock | $ 3,800 | |||||||||||
Private Placement [Member] | Investor [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Net proceeds from private placement | $ 22,600 |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND WARRANTS - Stock option plans (Details) - shares shares in Thousands | Dec. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 52,035 | 33,950 | |
Number of shares outstanding | 48,021 | 13,865 | |
Number of shares available | 4,014 | ||
2014 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 2,185 | ||
Number of shares outstanding | 2,185 | ||
2015 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 6,850 | ||
Number of shares outstanding | 4,605 | ||
Number of shares available | 2,245 | ||
2016 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 28,000 | ||
Number of shares outstanding | 26,231 | ||
Number of shares available | 1,769 | ||
2019 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 15,000 | ||
Number of shares outstanding | 15,000 |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND WARRANTS - Fair value and compensation (Details) - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2019 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 33,950 | 52,035 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 4,509 | 17,237 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 18,191 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 817 | |
Share Based Compensation Arrangement By Sharebased Payment Award Options Non vested Fair Value | $ 3,297 | |
Executive Officers [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 22,700 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 3,588 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 11,562 | |
Other employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 11,250 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 921 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 6,629 | |
Hybrid Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 11,250 | |
Hybrid Options | Executive Officers [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 7,550 | |
Hybrid Options | Other employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 3,700 |
STOCK-BASED COMPENSATION AND _5
STOCK-BASED COMPENSATION AND WARRANTS - Stock options outstanding (Details) - $ / shares shares in Thousands | Jul. 31, 2019 | Jun. 30, 2019 | Nov. 30, 2019 | Dec. 31, 2019 |
Number of Options | ||||
Outstanding | 13,865 | |||
Granted | 34,000 | 67,000 | 35,945 | |
Forfeited | (1,789) | |||
Outstanding | 13,865 | 48,021 | ||
Vested | 4,509 | 17,237 | ||
Weighted Average Exercise Price | ||||
Outstanding | $ 1.60 | |||
Granted | 0.29 | |||
Forfeited | 0.43 | |||
Outstanding | $ 1.60 | $ 0.13 | 0.66 | |
Vested | $ 1.20 | |||
Weighted Average Remaining Contractual Life | ||||
Weighted Average Remaining Contractual Lives | 6 years 4 months 24 days | 8 years 7 months 6 days | ||
Vested | 7 years |
STOCK-BASED COMPENSATION AND _6
STOCK-BASED COMPENSATION AND WARRANTS - Stock based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 665 | $ 816 | $ 2,059 | $ 1,694 |
Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 351 | 61 | 925 | 191 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 314 | $ 755 | $ 1,134 | $ 1,503 |
STOCK-BASED COMPENSATION AND _7
STOCK-BASED COMPENSATION AND WARRANTS - Weighted average assumptions (Details) - $ / shares | 1 Months Ended | 6 Months Ended |
Nov. 30, 2019 | Dec. 31, 2019 | |
STOCK-BASED COMPENSATION AND WARRANTS | ||
Grant date fair value of common stock | $ 0.21 | |
Fair value of common stock on grant date | 0.29 | |
Exercise price of stock options | $ 0.29 | $ 0.29 |
Expected volatility | 119.00% | 118.00% |
Risk free interest rate | 1.90% | |
Expected term (years) | 5 years | 6 years 6 months |
Dividend yield | 0.00% |
STOCK-BASED COMPENSATION AND _8
STOCK-BASED COMPENSATION AND WARRANTS - Warrants (Details) shares in Thousands | 6 Months Ended |
Dec. 31, 2019$ / sharesshares | |
STOCK-BASED COMPENSATION AND WARRANTS | |
Outstanding, beginning of fiscal year, Shares | shares | 45,997 |
Outstanding, beginning of fiscal year, Price | $ / shares | $ 1.34 |
Outstanding, beginning of fiscal year, Term | 2 years 3 months 18 days |
Warrants issued for: Consulting services, Shares | shares | 700 |
Warrants issued for: Consulting services, Price | $ / shares | $ 0.29 |
Warrant expirations, Shares | shares | (361) |
Warrant expirations, Price | $ / shares | $ 1.90 |
Outstanding, end of fiscal year, Shares | shares | 46,336 |
Outstanding, end of fiscal year, Price | $ / shares | $ 1.32 |
Outstanding, end of fiscal year, Term | 1 year 10 months 24 days |
STOCK-BASED COMPENSATION AND _9
STOCK-BASED COMPENSATION AND WARRANTS - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2019 | Nov. 30, 2019 | Aug. 31, 2019 | Dec. 31, 2019 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 34,000,000 | 67,000,000 | 35,945,000 | ||
Proceeds from Stock Options Exercised | $ 4,300 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.18 | ||||
Weighted Average Exercise Price | $ 0.13 | $ 0.66 | $ 1.60 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, stock options | $ 4,800 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days | ||||
Class of Warrant or Right, Outstanding, Consulting Services | 700,000 | ||||
Exercise price of stock options | $ 0.29 | $ 0.29 | |||
Aggregate fair value before adjusting for forfeitures | $ 2,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.32 | $ 1.34 | |||
Estimated fair value of stock options | $ 817 | ||||
Minimal Stock Price For Vesting | 0.58 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 0.21 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 33,950,000 | 52,035,000 | |||
Expected volatility | 119.00% | 118.00% | |||
Expected term (years) | 5 years | 6 years 6 months | |||
Hybrid Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, stock options | $ 0 | ||||
Time-based vesting [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 24,700,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 800,000 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 400,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months | ||||
Tranche [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 75.00% | ||||
2014 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options outstanding terminated | 2,200,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,185,000 | ||||
2015 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,995,000 | ||||
Weighted Average Exercise Price | $ 0.29 | ||||
Expiration period | 10 years | ||||
Estimated fair value of stock options | $ 200 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,850,000 | ||||
2015 Plan [Member] | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months | ||||
2015 Plan [Member] | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 48 months | ||||
Employees and Directors | Non Qualified Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 15,000,000 | ||||
2016 Plan [Member] | Share-based Payment Arrangement, Employee [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 19,000,000 | ||||
2019 Plan [Member] | Share-based Payment Arrangement, Employee [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 15,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.29 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 0.21 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ / shares in Units, shares in Millions | Jul. 23, 2019 | Jun. 19, 2019 | Jan. 31, 2019 | Jul. 23, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||||||||
Number of shares issued | 69 | 82.9 | ||||||
Price per share | $ 0.29 | |||||||
Gross proceeds from issuance | $ 25,000,000 | $ 113,600,000 | $ 25,000,000 | $ 22,600,000 | ||||
Master Services Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Employee Services | $ 103,000 | |||||||
Reimbursable expenses incurred with unrelated parties | 144,000 | |||||||
Total employee services reimbursable expenses incurred with unrelated parties | $ 247,000 | |||||||
Investor [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued | 20 | 69 | ||||||
Price per share | $ 0.29 | $ 0.29 | ||||||
Gross proceeds from issuance | $ 20,000,000 | |||||||
Ownership interest by related party | 62.00% |
SUPPLEMENTAL FINANCIAL INFORM_3
SUPPLEMENTAL FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and other income | ||||
Interest income | $ 54 | $ 153 | ||
Gain on lease termination | $ 168 | 0 | $ 168 | |
Gain from change in fair value of embedded derivatives | 55 | 0 | 74 | |
Rental income | 64 | 0 | 153 | |
Total | $ 54 | $ 287 | $ 153 | $ 395 |
SUPPLEMENTAL FINANCIAL INFORM_4
SUPPLEMENTAL FINANCIAL INFORMATION - Additional Information (Details) | Jul. 31, 2019USD ($) |
Other Financial Information [Line Items] | |
Cash bonus payments approved | $ 448,000 |
Employment Agreements | |
Other Financial Information [Line Items] | |
Annual base salary | $ 265,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Thousands | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common stock equivalents were excluded from the computation of diluted net loss per share | 94,357 | 64,367 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common stock equivalents were excluded from the computation of diluted net loss per share | 48,021 | 18,701 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common stock equivalents were excluded from the computation of diluted net loss per share | 46,336 | 45,666 |
FINANCIAL INSTRUMENTS AND SIG_2
FINANCIAL INSTRUMENTS AND SIGNIFICANT CONCENTRATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Aug. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
FINANCIAL INSTRUMENTS AND SIGNIFICANT CONCENTRATIONS | |||||
Cash, cash equivalents, and restricted cash | $ 19,712 | $ 19,700 | $ 11,573 | $ 258 | $ 1,646 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2020USD ($) | |
Company's Executive Officers And Employees [Member] | |
Subsequent Event [Line Items] | |
Employee Benefits and Share-based Compensation | $ 0.7 |