Leap Therapeutics (LPTX) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document and Entity Information
Entity Registrant Name	LEAP THERAPEUTICS, INC.
Entity Central Index Key	1,509,745
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,392,414
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 23,800	$ 793
Research and development incentive receivable	3,167	3,053
Prepaid expenses and other current assets	319	183
Total current assets	27,286	4,029
Property and equipment, net	159	119
Research and development incentive receivable, net of current portion	397
Deferred offering costs		1,402
Other assets	937	907
Total assets	28,779	6,457
Current liabilities:
Accounts payable	2,793	3,225
Accrued expenses	1,819	2,658
Notes payable and accrued interest-related party		30,274
Total current liabilities	4,612	36,157
Commitments and contingencies
Stockholders' equity (deficiency):
Common stock, $0.001 par value; 100,000,000 and 58,500,000 shares authorized at March 31, 2017 and December 31, 2016, respectively; 9,392,414 and 0 shares outstanding as of March 31, 2017 and December 31, 2016, respectively	9
Additional paid-in capital	134,347	145
Accumulated other comprehensive income (loss)	(105)	294
Accumulated deficit	(110,084)	(100,670)
Total stockholders' equity (deficiency)	24,167	(100,231)
Total liabilities, convertible preferred stock and stockholders' equity (deficiency)	$ 28,779	6,457
Series A Redeemable Convertible Preferred Stock
Current liabilities:
Convertible preferred stock		11,800
Series B Convertible Preferred Stock
Current liabilities:
Convertible preferred stock		28,189
Series C Convertible Preferred Stock
Current liabilities:
Convertible preferred stock		$ 30,542

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Stockholders' deficiency:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000	58,500,000
Common stock, outstanding shares	9,392,414	0
Convertible preferred stock
Convertible Preferred Stock
Convertible preferred stock, authorized shares	0	42,500,000
Series A Redeemable Convertible Preferred Stock
Convertible Preferred Stock
Convertible preferred stock, authorized shares	0	9,000,000
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, issued shares	0	9,000,000
Convertible preferred stock, outstanding shares	0	9,000,000
Convertible preferred stock, liquidation preference	$ 0	$ 11,800
Series B Convertible Preferred Stock
Convertible Preferred Stock
Convertible preferred stock, authorized shares	0	21,500,000
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, issued shares	0	21,500,000
Convertible preferred stock, outstanding shares	0	21,500,000
Convertible preferred stock, liquidation preference	$ 0	$ 28,189
Series C Convertible Preferred Stock
Convertible Preferred Stock
Convertible preferred stock, authorized shares	0	12,000,000
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, issued shares	0	11,781,984
Convertible preferred stock, outstanding shares	0	11,781,984
Convertible preferred stock, liquidation preference	$ 0	$ 30,542

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating expenses:
Research and development	$ 6,404	$ 4,087
General and administrative	3,804	1,056
Total operating expenses	10,208	5,143
Loss from operations	(10,208)	(5,143)
Interest income	50
Interest expense-related party	(121)	(113)
Australian research and development incentives	397	0
Foreign currency gains	468	109
Net loss	(9,414)	$ (5,147)
Accretion of preferred stock to redemption value	(244)
Net loss attributable to common stockholders	$ (9,658)
Net loss per share - basic and diluted (in dollars per share)	$ (1.39)
Weighted average common shares outstanding - basic and diluted (in shares)	6,945,623

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (9,414)	$ (5,147)
Other comprehensive loss:
Foreign currency translation adjustments	(399)	(11)
Comprehensive loss	$ (9,813)	$ (5,158)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive income (loss)	Accumulated Deficit	Series A Redeemable Convertible Preferred Stock	Series B Convertible Preferred Stock	Series C Convertible Preferred Stock	Total
Balance at the beginning of the period (in shares) at Dec. 31, 2016					9,000,000	21,500,000	11,781,984
Increase (Decrease) in Shares Outstanding
Conversion of notes payable - related party and accrued interest into stock (in shares)	1,950,768
Conversion of convertible preferred stock to common stock (in shares)	3,174,523				(9,000,000)	(21,500,000)	(11,781,984)
Issuance of stock (in shares)	1,010,225
Issuance of common stock in connection with merger with Macrocure (in shares)	3,256,898
Balance at the end of the period (in shares) at Mar. 31, 2017	9,392,414
Balance at the beginning of the period at Dec. 31, 2016					$ 11,800	$ 28,189	$ 30,542
Increase (Decrease) in Redeemable Convertible Preferred Stock
Accretion to redemption value					37	90	117
Conversion of convertible preferred stock to common stock					$ (11,837)	$ (28,279)	$ (30,659)
Balance at the beginning of the period at Dec. 31, 2016		$ 145	$ 294	$ (100,670)				$ (100,231)
Increase (Decrease) in Stockholders' Deficit
Accretion to redemption value		(244)						(244)
Conversion of notes payable-related party and accrued interest into common stock	$ 2	31,143						31,145
Conversion of convertible preferred stock to common stock	3	70,772						70,775
Issuance of common stock, net of issuance costs of $947	1	9,052						9,053
Issuance of common stock in connection with merger with Macrocure, net of offering costs of $1,402	3	19,856						19,859
Foreign currency translation adjustment			(399)					(399)
Stock-based compensation		3,623						3,623
Net loss				(9,414)				(9,414)
Balance at the end of the period at Mar. 31, 2017	$ 9	$ 134,347	$ (105)	$ (110,084)				$ 24,167

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical)
Issuance of common stock, issuance costs	$ 947
Reclassification of deferred offering costs to additional paid-in capital	$ 1,402

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (9,414)	$ (5,147)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	25
Stock-based compensation expense	3,623	9
Non-cash interest expense-related party	121	113
Changes in operating assets and liabilities, net of impact of assumed net assets from Macrocure:
Prepaid expenses and other assets	(70)	152
Research and development incentive receivable	(397)
Accounts payable and accrued expenses	(237)	740
Net cash used in operating activities	(6,349)	(4,133)
Cash flows from investing activities:
Purchases of property and equipment	(65)	(30)
Net cash used in investing activities	(65)	(30)
Cash flows from financing activities:
Proceeds from issuance of common stock in connection with merger with Macrocure	21,165
Proceeds from the sale of common stock	10,000
Proceeds from notes payable-related party	750	6,900
Payment of deferred offering costs	(2,067)
Net cash provided by financing activities	29,848	6,900
Effect of exchange rate changes on cash and cash equivalents	(427)	(11)
Net increase in cash and cash equivalents	23,007	2,726
Cash and cash equivalents at beginning of period	793	405
Cash and cash equivalents at end of period	23,800	3,131
Supplemental disclosure of non-cash financing activities:
Accretion of preferred stock to redemption value	244	$ 1,124
Conversion of notes payable-related party and accrued interest into common stock	31,145
Conversion of convertible preferred stock into common stock	70,775
Value of net assets assumed from merger with Macrocure, excluding cash	$ 96

Nature of Business, Basis of Pr

Nature of Business, Basis of Presentation and Liquidity	3 Months Ended
	Mar. 31, 2017
Nature of Business, Basis of Presentation and Liquidity
Nature of Business, Basis of Presentation and Liquidity	1. Nature of Business, Basis of Presentation and Liquidity Nature of Business Leap Therapeutics, Inc. was incorporated in the state of Delaware as Dekkun Corporation on January 3, 2011 and changed its name to HealthCare Pharmaceuticals, Inc. effective May 29, 2014, and then to Leap Therapeutics, Inc. effective November 16, 2015 (the “Company”). During 2015, HealthCare Pharmaceuticals Pty Ltd. (“HCP Australia”) was formed and is a wholly owned subsidiary of the Company. During January 2017, the Company merged with Macrocure Ltd. (now “Leap Therapeutics Ltd.”) and its wholly-owned subsidiary Macrocure, Inc. (see Note 3). The Company is a biopharmaceutical company acquiring and developing novel therapeutics at the leading edge of cancer biology. The Company’s approach is designed to target compelling tumor-promoting and immuno-oncology pathways to generate durable clinical benefit and enhanced outcomes for patients. The Company’s programs are monoclonal antibodies that target key cellular pathways that enable cancer to grow and spread and specific mechanisms that activate the body’s immune system to identify and attack cancer. The Company’s two clinical stage programs are: · DKN-01: A monoclonal antibody targeting Dickkopf-related protein 1, or DKK1, a protein that regulates important cell signaling pathways, known as the Wnt pathways, and influences the immune environment around tumor cells as the Companyll as tumor cell growth. When DKN-01 binds to DKK1, Wnt signaling pathways and the tumor microenvironment are altered, and an anti-tumor effect can be generated. The Company is testing DKN-01 in ongoing clinical trials in patients with esophagogastric cancer, alone and in combination with paclitaxel, and in patients with biliary tract cancer, in combination with gemcitabine and cisplatin. And investigator-initiated study of DKN-01 in combination with sorafenib is planned in patients with liver cancer. The Company have studied DKN-01 as a monotherapy in patients with non-small cell lung cancer. DKN-01-based therapies have generated responses and clinical benefit in these patient populations. · TRX518: A monoclonal antibody targeting the glucocorticoid-induced tumor necrosis factor-related receptor, or GITR, a receptor found on the surface of a wide range of immune cells. TRX518 has been specifically engineered to enhance the immune system’s anti-tumor response by activating GITR signaling, or GITR agonism, to activate tumor fighting white blood cells, or T effector cells, and decrease the activity of potentially tumor-protective white blood cells, or T regulatory cells, without causing the immune cells to be destroyed. The Company believes GITR is an ideal immune system agonist target through this two-pronged approach of stimulating an anti-tumor response and reducing immune suppression. The Company is conducting two clinical trials of TRX518 in patients with advanced solid tumors and have evidence of biomarker modulation and clinical activity. The Company intends to apply the Company’s extensive experience identifying and developing transformational products to aggressively develop these antibodies and build a pipeline of programs that has the potential to change the practice of cancer medicine. Reverse Stock Split On January 20, 2017, the Company effected a 1-for-19.86754 reverse stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company’s Preferred Stock (see Note 3). Accordingly, all share and per share amounts for all periods presented in the accompanying financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this reverse stock split and adjustment of the preferred stock conversion ratios. Unaudited Interim Consolidated Financial Information The accompanying condensed consolidated financial statements as of March 31, 2017 and for the three months ended March 31, 2017 and 2016 have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2017. The condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments which are necessary for a fair presentation of the Company’s financial position as of March 31, 2017 and results of operations and cash flows for the three months ended March 31, 2017 and 2016. Such adjustments are of a normal and recurring nature. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2017. Liquidity Since inception, the Company has been engaged in organizational activities, including raising capital, and research and development activities. The Company does not yet have a product that has been approved by the Food and Drug Administration (the “FDA”), has not generated any revenues and has not yet achieved profitable operations, nor has it ever generated positive cash flows from operations. There is no assurance that profitable operations, if achieved, could be sustained on a continuing basis. Further, the Company’s future operations are dependent on the success of the Company’s efforts to raise additional capital, its research and commercialization efforts, regulatory approval, and, ultimately, the market acceptance of the Company’s products. In accordance with ASC 205-40, Going Concern, the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued. As of March 31, 2017, the Company had an accumulated deficit of $110,084. During the three months ended March 31, 2017, the Company incurred a loss of $9,414 and used $6,349 of cash in operations. The Company expects to continue to generate operating losses in the foreseeable future. The Company expects that its cash and cash equivalents of $23,800 at March 31, 2017, together with the receipt of $3,167 of research and development tax incentive payments in 2017 from the Commonwealth of Australia as a result of the 2016 research and development activities of the Company’s Australian subsidiary, HCP Australia, will be sufficient to fund its operating expenses for at least the next 12 months from issuance of the condensed consolidated financial statements. In addition, the Company will seek additional funding through public or private equity financings or government programs and will seek funding or development program cost-sharing through collaboration agreements or licenses with larger pharmaceutical or biotechnology companies. If the Company does not obtain additional funding or development program cost-sharing, the Company would be forced to delay, reduce or eliminate certain clinical trials or research and development programs, reduce or eliminate discretionary operating expenses, and delay company and pipeline expansion, which would adversely affect its business prospects. The inability to obtain funding, as and when needed, would have a negative impact on the Company’s financial condition and ability to pursue its business strategies.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated in the consolidation. Use of Estimates The presentation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Research and development incentive income and receivable The Company recognizes other income from Australian research and development incentives when there is reasonable assurance that the income will be received, the relevant expenditure has been incurred, and the consideration can be reliably measured. The research and development incentive is one of the key elements of the Australian Government’s support for Australia’s innovation system and is supported by legislative law primarily in the form of the Australian Income Tax Assessment Act 1997, as long as eligibility criteria are met. Management has assessed the Company’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the research and development incentive regime described above. At each period end, management estimates the refundable tax offset available to the Company based on available information at the time. Under the program, a percentage of eligible research and development expenses incurred by the Company through its subsidiary in Australia are reimbursed. The percentage was 45% for the year ended December 31, 2016 and 43.5% for the three months ended March 31, 2017. The research and development incentive receivable represents an amount due in connection with the above program. The Company has recorded a research and development incentive receivable of $3,564 and $3,053 as of March 31, 2017 and December 31, 2016, respectively, in the consolidated balance sheet and other income from Australian research and development incentives of $397 and $0 in the consolidated statements of operations and comprehensive loss for the three months ended March 31, 2017 and 2016, respectively, related to refundable research and development incentive program payments in Australia. Foreign Currency Translation The financial statements of the Company’s foreign subsidiary are measured using the local currency as the functional currency. Assets and liabilities of this subsidiary are translated into U.S. dollars at exchange rates as of the consolidated balance sheet date. Equity is translated at historical exchange rates. Revenues and expenses are translated into U.S. dollars at average rates of exchange in effect during the year. The resulting cumulative translation adjustments have been recorded as a separate component of stockholders’ equity (deficiency). Realized foreign currency transaction gains and losses are included in the results of operations. Deferred Offering Costs The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficiency) as a reduction of additional paid-in capital generated as a result of the offering. As of December 31, 2016, the Company had recorded $1,402 of deferred offering costs in contemplation of the merger with Macrocure Ltd. and in substance recapitalization of the Company. On January 23, 2017, the Company reclassified $1,402 of deferred offering costs to additional paid-in capital as a reduction of the proceeds from the merger with Macrocure Ltd. and in substance recapitalization of the Company (see Note 3). Other Assets Other assets as of March 31, 2017 and December 31, 2016 included $902 and $907, respectively, of deposits made by the Company with certain service providers that are to be applied to future payments due under the service agreements or returned to the Company if not utilized. In addition, as of March 31, 2017, other assets included a deposit of $35 related to the operating lease for the Company’s office space in Cambridge, Massachusetts. Net Loss per Share Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including the assumed exercise of stock options. There were no common shares outstanding during the three months ended March 31, 2016, and accordingly, basic and diluted net loss per share is not presented for that period. New Accounting Pronouncements The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies”, in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2016. Summarized below are the accounting pronouncements adopted subsequent to December 31, 2016. Effective January 1, 2017, the Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The adoption of the new guidance had no impact on the Company's condensed consolidated financial statements. Effective January 1, 2017, the Company adopted ASU 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The adoption of the new guidance had no impact on the Company's condensed consolidated financial statements.

Merger with Macrocure and Relat

Merger with Macrocure and Related Transactions	3 Months Ended
	Mar. 31, 2017
Merger with Macrocure and Related Transactions
Merger with Macrocure and Related Transactions	3. Merger with Macrocure and Related Transactions Merger with Macrocure Ltd. The Company entered into a definitive merger agreement (the “Merger Agreement”), dated as of August 29, 2016, with Macrocure Ltd. (“Macrocure”), a publicly held, clinical-stage biotechnology company based in Petach Tikva, Israel, and M-Co Merger Sub Ltd. (“Merger Sub”), a wholly owned subsidiary of the Company which provided for the merger of Macrocure with and into Merger Sub, with Macrocure continuing after the merger as a wholly owned subsidiary of the Company. On January 23, 2017, the Company issued 3,256,898 shares of its common stock, net of fractional shares paid in cash, in exchange for 100% of the outstanding ordinary shares of Macrocure Ltd. upon consummation of the merger. Pursuant to the terms of the merger agreement, each holder of Macrocure’s ordinary shares received approximately 0.1815 shares of the Company’s common stock, plus cash in lieu of fractional shares based on a value of the Company’s common stock of $9.90 per share. The exchange ratio was based on a final net cash calculation, as of the closing, of $21,875. The merger was accounted for as an in-substance recapitalization of the Company, as the transaction was, in essence, an exchange of shares of the Company’s common stock (and options and warrants exercisable therefor) for cash. Apart from cash, the net assets acquired were $96, and all Macrocure employees were terminated as of the effective time of the merger. Macrocure’s cash and nominal assets and liabilities were measured and recognized at their fair values as of the date of the merger, and combined with the assets, liabilities and results of operations of the Company. All Macrocure stock options granted under the Macrocure stock option plans (whether or not then exercisable) and all warrants to purchase Macrocure ordinary shares that were outstanding prior to the effective time of the merger became options and warrants, respectively, to purchase the Company’s common stock equal to the number of ordinary shares of Macrocure issuable upon exercise of such stock options and warrants multiplied by the exchange ratio, with a corresponding exercise price equal to the exercise price of such stock options or warrants divided by the exchange ratio. All outstanding and unexercised Macrocure stock options and warrants assumed by the Company may be exercised solely for shares of the Company’s common stock. Vesting of all unvested Macrocure equity awards issued and outstanding was accelerated at the effective time of the merger, and all such equity awards issued and outstanding at the time of the merger remained issued and outstanding. For accounting purposes, since the acceleration of vesting was negotiated in contemplation of the merger, the remaining unrecognized compensation expense associated with the original grant date fair value of the awards of $280 was recognized as a one-time charge in the Company’s condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2017. In addition, the exercise period for all Macrocure options outstanding at the effective time of the merger was extended beyond the respective periods provided in the original awards. The Company recorded a one-time charge of $504 in connection with the extension of the exercise periods in the unaudited consolidated statement of operations and comprehensive loss for the three months ended March 31, 2017 equal to the difference in the fair value of the options immediately prior to and immediately following the modification of the exercise period. In connection with the merger, the Company applied to be listed on the NASDAQ Global Market. NASDAQ approved the listing, and trading in the Company’s common stock commenced on January 24, 2017, under the trading symbol “LPTX”. Recapitalization and Amendments to Certificate of Incorporation On January 20, 2017, in connection with and prior to the completion of the merger with Macrocure, (a) all of the Company’s outstanding shares of convertible preferred stock were converted into 3,174,523 shares of common stock, (b) the outstanding note payable and accrued interest was converted into 1,950,768 shares of common stock, and (c) the Company amended and restated its certificate of incorporation and bylaws to, among other things: (i) authorize 100,000,000 shares of common stock; (ii) eliminate all references to the previously existing series of the Company’s preferred stock; (iii) authorize 10,000,000 shares of undesignated preferred stock that may be issued from time to time by the Company’s board of directors and (iv) effect a one for 19.86754 reverse stock split of the Company’s common stock outstanding immediately prior to the filing of the amended and restated certificate of incorporation. Subscription Agreement On January 20, 2017, prior and subject to the consummation of the merger, the Company and HealthCare Ventures IX, L.P. (“HCV IX”) entered into a subscription agreement pursuant to which HCV IX purchased 1,010,225 shares of the Company’s common stock for $10,000, at a purchase price per share of $9.90. Stock Option Grants On January 20, 2017, in connection with the consummation of the merger with Macrocure, the Company made an option grant to each of three executives to purchase 330,303 of shares of common stock, for a total of 990,909 shares of common stock, pursuant to our Amended and Restated 2012 Equity Incentive Plan. The options were granted at an exercise price $9.90 per share. The options will vest 33% on the first anniversary of the date of grant, and thereafter in equal monthly installments over a period of two years, generally subject to the executive’s continued employment. Royalty Agreement and Letter Agreement On January 23, 2017, immediately prior to the merger, the Company entered into a royalty agreement with Leap Shareholder Royalty Vehicle, LLC, a Delaware limited liability company (the “Royalty Vehicle”), a special purpose vehicle formed for the specific purpose of entering into the royalty agreement. In connection with the transactions contemplated by the merger agreement, the Company declared a special distribution of certain royalty rights to each of its holders of common stock outstanding immediately prior to the effective time of the merger. These holders collectively beneficially owned or controlled 100% of the Company’s outstanding common stock at the time of the merger. Pursuant to the royalty agreement, the Company will pay to the special purpose vehicle (i) 5% of the Company’s net sales of products incorporating its TRX518 compound and (ii) 2% of the Company’s net sales of products incorporating its DKN-01 compound. The royalty agreement has an indefinite term, and neither the Company nor the special purpose vehicle has the right to terminate. The Company accounted for the royalty rights as a loss contingency.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2017
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets	4. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: March 31, December 31, 2017 2016 Goods and services tax receivable $ $ Insurance Other Prepaid expenses and other current assets $ $

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2017
Accrued Expenses
Accrued Expenses	5. Accrued Expenses Accrued expenses consist of the following: March 31, December 31, 2017 2016 Clinical trials $ $ Professional fees Payroll and related expenses Accrued expenses $ $

Notes Payable-Related Party

Notes Payable-Related Party	3 Months Ended
	Mar. 31, 2017
Notes Payable-Related Party
Notes Payable-Related Party	6. Notes Payable—Related Party During 2014, the Company entered into a convertible promissory note with a stockholder, and made multiple drawdowns under the note throughout 2014 and 2015. The note accrued interest at a rate of 8% per year until the principal of the note was either repaid or otherwise converted. During 2016, the Company made additional drawdowns under the convertible promissory note totaling $25,900, and as of December 31, 2016, the Company owed $29,000 aggregate principal and $1,274 of accrued interest in connection with the promissory note. Interest expense from the related-party note for the three months ended March 31, 2017 and 2016 was $121 and $113, respectively. The accrued interest as of December 31, 2016 of $1,274 is included in note payable and accrued interest-related party in the accompanying consolidated balance sheet as of December 31, 2016. On January 13, 2017, the Company received aggregate proceeds of $750 from an amendment and restatement of the promissory note. On January 20, 2017, in accordance with its terms and in connection with and prior and subject to the consummation of the merger with Macrocure, the outstanding note payable, including principal and accrued interest totaling $31,145, was converted into 1,950,768 shares of common stock.

Equity Incentive Plans

Equity Incentive Plans	3 Months Ended
	Mar. 31, 2017
Equity Incentive Plans
Equity Incentive Plans	7. Equity Incentive Plans Equity Incentive Plans In September 2012, the Company adopted the 2012 Equity Incentive Plan, as amended (the “Plan”), which provides designated employees of the Company and its affiliates, certain consultants and advisors who perform services for the Company and its affiliates, and nonemployee members of the Board of Directors of the Company and its affiliates with the opportunity to receive grants of incentive stock options, nonqualified stock options and stock awards. As of December 31, 2016, the aggregate number of shares of common stock of the Company that may be issued under the Plan was 61,483. As of December 31, 2016, 17,963 shares remained available for future grant under the Plan. On January 20, 2017, the Company’s stockholders approved the amended and restated 2012 Equity Incentive Plan (the “2012 Plan”), which amended and restated the Plan and was effective in connection with the completion of the Company’s merger with Macrocure. A total of 1,387,204 shares of common stock were reserved for issuance under the 2012 Plan. As of March 31, 2017, no shares remained available for future grant under the 2012 Plan. On January 20, 2017, the Company’s stockholders approved the 2016 Equity Incentive Plan (the “2016 Plan”), which was effective in connection with the completion of the Company’s merger with Macrocure. The number of shares of common stock issuable pursuant to outstanding awards granted under the 2016 Plan may not exceed the number that is equal to the sum of (i) 854,321 shares of common stock plus (ii) the number of shares of common stock (not to exceed 103,023 shares) subject to out-of-the-money options issued by Macrocure prior to the closing of the merger and assumed by the Company pursuant to the merger agreement upon consummation of the merger that expire unexercised. Beginning on January 1, 2018, the number of shares of common stock authorized for issuance pursuant to the 2016 Plan will be increased each January 1 by an amount equal to four percent (4%) of the Company’s outstanding common stock as of the end of the immediately preceding calendar year or such other amount as determined by the compensation committee of the Company’s Board of Directors. In connection with the merger with Macrocure in January 2017, the Company assumed the Macrocure 2013 Share Incentive Plan (the “2013 Plan”), the Macrocure 2008 Stock Option Plan (the “2008 Plan”) and all stock options outstanding under each of the 2013 Plan and the 2008 Plan immediately prior to the consummation of the merger. By virtue of the terms of the Merger Agreement and the 2013 Plan or the 2008 Plan, as applicable, each stock option outstanding immediately prior to the consummation of the merger was automatically converted into a stock option exercisable for a number of shares of the Company’s common stock calculated based on the exchange ratio and the exercise price per share of such outstanding stock option. The Company could also make awards of restricted stock under the 2012 Plan and the 2016 Plan (together, the “Equity Plans”). Restricted stock may be issued under the Equity Plans for such consideration, in cash, other property or services, or any combination thereof, as is determined by the Board of Directors. During the restriction period applicable to the shares of restricted stock, such shares shall be subject to limitations on transferability, subject to forfeiture or repurchase by the Company and/or subject to other terms and conditions. Upon lapse of such restrictions, the stock certificates representing shares of common stock shall be delivered to the grantee. A summary of activity under the Equity Plans is as follows: Weighted Average Weighted Aggregate Exercise Price Average Remaining Intrinsic Options Per Share Life in Years Value Outstanding at December 31, 2016 $ $ Granted $ Forfeited ) $ Outstanding at March 31, 2017 $ $ Options exercisable at March 31, 2017 $ $ Options unvested at March 31, 2017 $ $ During the three months ended March 31, 2017 and 2016 the Company recognized $3,623 and $9, respectively, of stock-based compensation expense. The Company did not grant any stock options during the three months ended March 31, 2016. The grant date fair value of the options granted during the three months ended March 31, 2017 was estimated at the date of grant using the Black-Scholes option valuation model. The expected life was estimated using the “simplified” method as defined by the Securities and Exchange Commission’s Staff Accounting Bulletin 107, Share-Based Payment. The expected volatility was based on the historical volatility of comparable public companies from a representative peer group selected based on industry and market capitalization data. The risk-free interest rate was based on the continuous rates provided by the U.S. Treasury with a term approximating the expected life of the option. The expected dividend yield was 0% because the Company does not expect to pay any dividends for the foreseeable future. The Company elected the straight-line attribution method in recognizing the grant date fair value of options issued over the requisite service periods of the awards, which are generally the vesting periods. Stock options generally vest over a three or four year period, as determined by the Compensation Committee of the Board of Directors at the time of grant. The options expire ten years from the grant date. As of March 31, 2017, there was approximately $7,173 of unrecognized compensation cost related to nonvested stock options, which is expected to be recognized over a remaining weighted-average period of approximately 2.65 years. Stock-based compensation expense was classified in the condensed consolidated statements of operations as follows: Three Months Ended March 31, 2017 2016 Research and development $ $ General and administrative Total $ $

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2017
Net Loss Per Share
Net Loss Per Share	8. Net Loss Per Share There were no common shares outstanding during the three months ended March 31, 2016, and accordingly, the Company has not presented basic and diluted net loss per share for that period. Basic and diluted net loss per share for the three months ended March 31, 2017 was calculated as follows: Three Months Ended March 31, 2017 Numerator: Net loss $ ) Accretion of preferred stock to redemption value ) Net loss attributable to common stockholders $ ) Denominator: Weighted average number of common shares outstanding - basic and diluted Net loss per share attributable to common stockholders - basic and diluted $ ) The Company’s potentially dilutive securities include stock options and convertible preferred stock. These securities were excluded from the computation of diluted net loss per share for the three months ended March 31, 2017 and would have been excluded from the computation for the three months ended March 31, 2016, as the effect would be to reduce the net loss per share. The following table includes the potential common shares, presented based on amounts outstanding at each period end, that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: March 31, 2017 2016 Options to purchase common stock Warrants assumed from Macrocure — Convertible preferred stock and accrued dividends (as converted to common stock) — In addition to the potentially dilutive securities noted above, as of March 31, 2016, the Company had outstanding notes payable—related party for which principal and unpaid accrued interest due under the notes will automatically be converted into the class of the Company’s stock issued in the Company’s next qualified financing, as defined, based on a conversion price equal to the price per share paid by the investors in the financing. Because the necessary conditions for conversion of the notes had not been met during the three months ended March 31, 2016, these notes have been excluded from the table above. On January 20, 2017, in connection with and prior to the completion of the merger with Macrocure, the Company’s Charter and Bylaws were amended to reflect the conversion of all outstanding shares of the Company’s convertible preferred stock into 3,174,523 shares of common stock, and to reflect the conversion of the outstanding note payable and accrued interest into 1,950,768 shares of common stock.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies Lease Agreement —Effective January 1, 2017, the Company entered into an assignment agreement to assume an operating lease for its office space in Cambridge, Massachusetts. Annual rent under the lease, exclusive of operating expenses and real estate taxes, will be $289 for the 12-month period ending July 31, 2017, increasing to $297 for the 12-month period ending July 31, 2018 and increasing to $305 for the period ending April 30, 2019. The lease agreement expires April 30, 2019, and the Company has the option to extend the term through April 30, 2022. Manufacturing Agreements —The Company is party to manufacturing agreements with vendors to manufacture TRX518 and DKN-01, our lead product candidates, for use in clinical trials. As of March 31, 2017, noncancelable commitments under these agreements totaled $5,738. License and Service Agreement —On January 3, 2011, the Company entered into a license agreement with Eli Lilly and Company (“Lilly”) to grant a license to the Company for certain intellectual property rights relating to pharmaceutically active compounds that may be useful in the treatment of bone healing, cancer and, potentially, other medical conditions. Prior to December 31, 2016 the Company issued 9,000,000 shares of Series A Stock to Lilly in consideration for the grant of the license. As defined in the license agreement, the Company would be required to pay royalties to Lilly based upon a percentage in the low single digits of net sales of developed products, if and when achieved. However, there can be no assurance that clinical or commercialization success of developed products will occur, and no royalties have been paid or accrued through March 31, 2017. License Agreement —On May 28, 2015, the Company entered into a license agreement with Lonza Sales AG (“Lonza”), pursuant to which Lonza granted the Company a world-wide, non-exclusive license for certain intellectual property relating to a gene expression system for manufacturing DKN-01. As defined in the license agreement, the Company would be required to pay royalties to Lonza based on a percentage in the low single digits of net sales of DKN-01, if and when achieved. However, there can be no assurance that clinical or commercialization success will occur, and no royalties have been paid or accrued through March 31, 2017. Legal Proceedings —At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. A patent covering TRX518 and its uses was granted to the Company by the European Patent Office. Three notices of opposition to this patent were filed by two major pharmaceutical companies and an individual, possibly on behalf of a major pharmaceutical company. At the conclusion of the opposition proceedings in 2016, the Opposition Division of the European Patent Office that heard the case issued an interlocutory decision indicating that the Company’s patent should be maintained with modified claims that differ from the claims as originally granted. These claims cover the TRX518 antibody and uses of TRX518 in a method of enhancing an immune response in a subject. In July 2016, the Company filed an appeal of the decision of the Opposition Division seeking to obtain broader claims that more closely reflect the claims as granted in the patent. The Board of Appeal has not scheduled a date for the appeal hearing. The Company is appealing the decision of the Opposition Division of the European Patent Office. In 2016, a patent covering the use of TRX518 in combination with a chemotherapeutic agent for treating cancer was granted to the Company by the European patent office. In March 2017, notices of opposition to this patent were filed by ten different entities, including several major pharmaceutical companies. The Company intends to defend the patent as granted through opposition proceedings. Indemnification Agreements —In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of March 31, 2017 or 2016.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions
Related Party Transactions	10. Related Party Transactions During the three months ended March 31, 2016, the Company reimbursed an entity related to one of its stockholders for shared office space and office related expenses. The total amount charged to the Company was approximately $58 in the three months ended March 31, 2016, all of which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive loss. Effective January 1, 2017, the Company entered into an assignment agreement to assume the operating lease for its office space in Cambridge, Massachusetts, and accordingly, the Company was not required to reimburse the related party during the three months ended March 31, 2017. During the three months ended March 31, 2017 and 2016, the Company executed promissory notes with stockholders (See Note 6). The Company has a license agreement with a stockholder (See Note 10).

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated in the consolidation.
Use of Estimates	Use of Estimates The presentation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Research and development incentive income and receivable	Research and development incentive income and receivable The Company recognizes other income from Australian research and development incentives when there is reasonable assurance that the income will be received, the relevant expenditure has been incurred, and the consideration can be reliably measured. The research and development incentive is one of the key elements of the Australian Government’s support for Australia’s innovation system and is supported by legislative law primarily in the form of the Australian Income Tax Assessment Act 1997, as long as eligibility criteria are met. Management has assessed the Company’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the research and development incentive regime described above. At each period end, management estimates the refundable tax offset available to the Company based on available information at the time. Under the program, a percentage of eligible research and development expenses incurred by the Company through its subsidiary in Australia are reimbursed. The percentage was 45% for the year ended December 31, 2016 and 43.5% for the three months ended March 31, 2017. The research and development incentive receivable represents an amount due in connection with the above program. The Company has recorded a research and development incentive receivable of $3,564 and $3,053 as of March 31, 2017 and December 31, 2016, respectively, in the consolidated balance sheet and other income from Australian research and development incentives of $397 and $0 in the consolidated statements of operations and comprehensive loss for the three months ended March 31, 2017 and 2016, respectively, related to refundable research and development incentive program payments in Australia.
Foreign Currency Translation	Foreign Currency Translation The financial statements of the Company’s foreign subsidiary are measured using the local currency as the functional currency. Assets and liabilities of this subsidiary are translated into U.S. dollars at exchange rates as of the consolidated balance sheet date. Equity is translated at historical exchange rates. Revenues and expenses are translated into U.S. dollars at average rates of exchange in effect during the year. The resulting cumulative translation adjustments have been recorded as a separate component of stockholders’ equity (deficiency). Realized foreign currency transaction gains and losses are included in the results of operations.
Deferred Offering Costs	Deferred Offering Costs The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficiency) as a reduction of additional paid-in capital generated as a result of the offering. As of December 31, 2016, the Company had recorded $1,402 of deferred offering costs in contemplation of the merger with Macrocure Ltd. and in substance recapitalization of the Company. On January 23, 2017, the Company reclassified $1,402 of deferred offering costs to additional paid-in capital as a reduction of the proceeds from the merger with Macrocure Ltd. and in substance recapitalization of the Company (see Note 3).
Other Assets	Other Assets Other assets as of March 31, 2017 and December 31, 2016 included $902 and $907, respectively, of deposits made by the Company with certain service providers that are to be applied to future payments due under the service agreements or returned to the Company if not utilized. In addition, as of March 31, 2017, other assets included a deposit of $35 related to the operating lease for the Company’s office space in Cambridge, Massachusetts.
Net Loss per Share	Net Loss per Share Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including the assumed exercise of stock options. There were no common shares outstanding during the three months ended March 31, 2016, and accordingly, basic and diluted net loss per share is not presented for that period.
New Accounting Pronouncements	New Accounting Pronouncements The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies”, in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2016. Summarized below are the accounting pronouncements adopted subsequent to December 31, 2016. Effective January 1, 2017, the Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The adoption of the new guidance had no impact on the Company's condensed consolidated financial statements. Effective January 1, 2017, the Company adopted ASU 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The adoption of the new guidance had no impact on the Company's condensed consolidated financial statements.

Prepaid Expenses and Other Cu20

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Prepaid Expenses and Other Current Assets
Schedule of prepaid expenses and other current assets	March 31, December 31, 2017 2016 Goods and services tax receivable $ $ Insurance Other Prepaid expenses and other current assets $ $

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2017
Accrued Expenses
Schedule of accrued expenses	March 31, December 31, 2017 2016 Clinical trials $ $ Professional fees Payroll and related expenses Accrued expenses $ $

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	3 Months Ended
	Mar. 31, 2017
Equity Incentive Plans
Summary of stock option activity under the Equity Plans	Weighted Average Weighted Aggregate Exercise Price Average Remaining Intrinsic Options Per Share Life in Years Value Outstanding at December 31, 2016 $ $ Granted $ Forfeited ) $ Outstanding at March 31, 2017 $ $ Options exercisable at March 31, 2017 $ $ Options unvested at March 31, 2017 $ $
Schedule of stock-based compensation expense as classified in the condensed consolidated statements of operations	Three Months Ended March 31, 2017 2016 Research and development $ $ General and administrative Total $ $

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Net Loss Per Share
Schedule of basic and diluted net loss per share	Three Months Ended March 31, 2017 Numerator: Net loss $ ) Accretion of preferred stock to redemption value ) Net loss attributable to common stockholders $ ) Denominator: Weighted average number of common shares outstanding - basic and diluted Net loss per share attributable to common stockholders - basic and diluted $ )
Schedule of potentially anti-dilutive securities excluded from calculation of diluted net loss per share	March 31, 2017 2016 Options to purchase common stock Warrants assumed from Macrocure — Convertible preferred stock and accrued dividends (as converted to common stock) —

Nature of Business, Basis of 24

Nature of Business, Basis of Presentation and Liquidity - Reverse Stock Split (Details)	Jan. 20, 2017	Mar. 31, 2017item
Reverse Stock Split
Number of clinical trials		2
Common Stock
Reverse Stock Split
Stock split ratio	0.05033

Nature of Business, Basis of 25

Nature of Business, Basis of Presentation and Liquidity - Liquidity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Liquidity
Accumulated deficit	$ 110,084		$ 100,670
Net loss	9,414	$ 5,147
Cash used in operations	6,349	4,133
Cash and cash equivalents	23,800	$ 3,131	793	$ 405
Research and development tax incentive payments expected in 2017	$ 3,167		$ 3,053
Minimum period to fund Operating expense	12 months

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Research and development incentive income and receivable
Research and development expenses reimbursed (as a percent)		43.50%		45.00%
Research and development incentive receivable		$ 3,564		$ 3,053
Other income from Australian research and development incentives		397	$ 0
Deferred Offering Costs
Deferred offering costs				1,402
Reclassification of deferred offering costs to additional paid-in capital	$ 1,402	1,402
Other Assets
Other assets		937		$ 907
Other assets excluding deposit for operating lease		902
Deposit related to operating lease for office space in Cambridge, Massachusetts		$ 35
Net Loss per Share
Common stock, outstanding shares		9,392,414	0	0

Merger with Macrocure and Rel27

Merger with Macrocure and Related Transactions - Merger with Macrocure Ltd. (Details) $ / shares in Units, $ in Thousands	Jan. 23, 2017USD ($)$ / sharesshares	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Merger with Macrocure
Value of net assets assumed from merger with Macrocure, excluding cash		$ 96
Compensation cost related to Macrocure equity awards, not yet recognized			$ 7,173
Macrocure | Common Stock
Merger with Macrocure
Common stock shares issued | shares	3,256,898
Percentage of outstanding ordinary shares acquired	100.00%
Approximate number of the Company's shares issued for each share of Macrocure's ordinary shares	0.1815
Common share value (in dollars per share) | $ / shares	$ 9.90
Final net cash calculation at closing	$ 21,875
Value of net assets assumed from merger with Macrocure, excluding cash	$ 96
Compensation cost related to Macrocure equity awards, not yet recognized		280
One-time charge with the extension of the exercise periods		$ 504

Merger with Macrocure and Rel28

Merger with Macrocure and Related Transactions - Amendments to Certificate of Incorporation (Details)	Jan. 20, 2017shares	Mar. 31, 2017shares	Dec. 31, 2016shares
Merger with Macrocure
Common stock, shares authorized		100,000,000	58,500,000
Common Stock
Merger with Macrocure
Common stock, shares authorized	100,000,000
Preferred Stock, shares authorized	10,000,000
Stock split ratio	0.05033
Common Stock | Conversion of preferred stock into common stock
Merger with Macrocure
Shares issued on conversion of preferred stock	3,174,523
Common Stock | Conversion of notes payable - related party and accrued interest into common stock
Merger with Macrocure
Shares issued on conversion of notes payable and related accrued interest	1,950,768

Merger with Macrocure and Rel29

Merger with Macrocure and Related Transactions - Subscription Agreement (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 20, 2017	Mar. 31, 2017
Merger with Macrocure
Purchase price		$ 9,053
HCV IX | Subscription Agreement
Merger with Macrocure
Issuance of stock (in shares)	1,010,225
Purchase price	$ 10,000
Price per share (in dollars per share)	$ 9.90

Merger with Macrocure and Rel30

Merger with Macrocure and Related Transactions - Stock Option Grants (Details) - 2012 Plan - Macrocure	Jan. 20, 2017item$ / sharesshares
Merger with Macrocure
Number of executives | item	3
Common Stock
Merger with Macrocure
Number of shares which can be purchased by each executive	330,303
Aggregate number of shares which can be purchased by executives	990,909
Exercise price | $ / shares	$ 9.90
Vesting period subsequent to the first anniversary of the grant date	2 years
Common Stock | Vesting on first anniversary
Merger with Macrocure
Options vesting on the first anniversary date of the grants (as a percent)	33.00%
Vesting period	1 year

Merger with Macrocure and Rel31

Merger with Macrocure and Related Transactions - Royalty Agreement and Letter Agreement (Details) - Royalty Vehicle	Jan. 23, 2017
Merger with Macrocure
Collective beneficial ownership (as a percent)	100.00%
TRX 518 compound | Royalty Agreement
Merger with Macrocure
Royalties payable	5.00%
DKN-01 compound | Royalty Agreement
Merger with Macrocure
Royalties payable	2.00%

Prepaid Expenses and Other Cu32

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Prepaid Expenses and Other Current Assets
Goods and services tax receivable	$ 54	$ 117
Insurance	149	30
Other	116	36
Prepaid expenses and other current assets	$ 319	$ 183

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accrued Expenses
Clinical trials	$ 1,065	$ 2,545
Professional fees	514	88
Payroll and related expenses	240	25
Accrued expenses	$ 1,819	$ 2,658

Notes Payable-Related Party (De

Notes Payable-Related Party (Details) - USD ($) $ in Thousands	Jan. 20, 2017	Jan. 13, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2014
Proceeds from promissory notes
Proceeds from promissory notes			$ 750	$ 6,900
Interest expense			121	113
Conversion of notes payable-related party and accrued interest into common stock			31,145
Common Stock
Proceeds from promissory notes
Conversion of notes payable-related party and accrued interest into common stock			2
Conversion of notes payable - related party and accrued interest into common stock | Common Stock
Proceeds from promissory notes
Shares issued on conversion of notes payable and related accrued interest	1,950,768
Convertible Promissory notes | Convertible promissory note executed with stockholder | Stockholder
Proceeds from promissory notes
Proceeds from promissory notes		$ 750			$ 25,900
Promissory notes payable outstanding					29,000
Note interest rate (as a percent)						8.00%
Interest expense			$ 121	$ 113
Accrued interest expense					$ 1,274
Convertible Promissory notes | Convertible promissory note executed with stockholder | Stockholder | Conversion of notes payable - related party and accrued interest into common stock
Proceeds from promissory notes
Conversion of notes payable-related party and accrued interest into common stock	$ 31,145

Equity Incentive Plans (Details

Equity Incentive Plans (Details) - shares	Jan. 20, 2017	Mar. 31, 2017	Dec. 31, 2016
2012 Plan
Equity Incentive Plans
Number of options or stock awards available for grant under the Plan		0	17,963
2012 Plan | Maximum
Equity Incentive Plans
Number of options or stock awards available for grant under the Plan			61,483
Common Stock | 2012 Plan
Equity Incentive Plans
Shares reserved for issuance	1,387,204
Common Stock | 2016 Plan
Equity Incentive Plans
Annual increase in authorized shares (as a percent)	4.00%
Common Stock | 2016 Plan | Maximum
Equity Incentive Plans
Shares issuable	854,321
Out-of-the-money options | Common Stock | 2016 Plan | Maximum
Equity Incentive Plans
Additional shares issuable	103,023

Equity Incentive Plans - Stock

Equity Incentive Plans - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Options
Outstanding balance at the beginning of the period (in shares)	53,228
Granted (in shares)	1,825,858
Forfeited (in shares)	(11,628)
Outstanding balance at the end of the period (in shares)	1,867,458		53,228
Exercisable at the end of the period (in shares)	664,767
Options unvested at end of period (in shares)	1,202,691
Weighted Average Exercise Price per Share
Outstanding balance at the beginning of the period (in dollars per share)	$ 4.93
Granted (in dollars per share)	13.81
Forfeited (in dollars per share)	4.77
Outstanding balance at the end of the period (in dollars per share)	13.62		$ 4.93
Exercisable at the end of the period (in dollars per share)	20.42
Options unvested at end of period (in dollars per share)	$ 9.85
Weighted Average Remaining Life in Years
Outstanding balance	9 years 1 month 17 days		7 years
Options exercisable at end of period	7 years 10 months 28 days
Options unvested at end of period	9 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding balance	$ 295
Options exercisable at the end of the period	256
Options unvested at end of period	39
Stock-based compensation expense	$ 3,623	$ 9
Dividend yield (as a percent)	0.00%
Expiration period	10 years
Compensation cost related to the nonvested awards not yet recognized			$ 7,173
Weighted average period for recognition of compensation cost			2 years 7 months 24 days
Minimum
Aggregate Intrinsic Value
Vesting period	3 years
Maximum
Aggregate Intrinsic Value
Vesting period	4 years
Research and development expense
Aggregate Intrinsic Value
Stock-based compensation expense	$ 1,678	7
General and administrative expense
Aggregate Intrinsic Value
Stock-based compensation expense	$ 1,945	$ 2

Net Loss Per Share - Basic and

Net Loss Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net loss	$ (9,414)	$ (5,147)
Accretion of preferred stock to redemption value	(244)
Net loss attributable to common stockholders	$ (9,658)
Denominator:
Weighted average common shares outstanding - basic and diluted (in shares)	6,945,623
Net loss per share attributable to common stockholders - basic and diluted (in dollars per share)	$ (1.39)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive (Details) - shares	Jan. 20, 2017	Mar. 31, 2017	Mar. 31, 2016
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share		1,921,974	3,431,816
Common Stock | Conversion of preferred stock into common stock
Securities excluded from computation of diluted net loss per share
Shares issued on conversion of preferred stock	3,174,523
Common Stock | Conversion of notes payable - related party and accrued interest into common stock
Securities excluded from computation of diluted net loss per share
Shares issued on conversion of notes payable and related accrued interest	1,950,768
Stock Options
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share		1,867,458	59,274
Warrants assumed from Macrocure
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share		54,516
Convertible preferred stock and accrued dividends (as converted to common stock)
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share			3,372,542

Commitments and Contingencies -

Commitments and Contingencies - Lease Agreement (Details) $ in Thousands	Jan. 01, 2017USD ($)
Operating lease - 12 month period ending July 31, 2017
Commitments and Contingencies
Annual rent	$ 289
Operating lease - 12 month period ending July 31, 2018
Commitments and Contingencies
Annual rent	297
Operating lease - period ending April 30, 2019
Commitments and Contingencies
Annual rent	$ 305

Commitments and Contingencies40

Commitments and Contingencies - Manufacturing, License and Other Agreements (Details) - USD ($) $ in Thousands	Dec. 30, 2016	Mar. 31, 2017
TRX518 and DKN-01
Commitments and Contingencies
Noncancelable commitments		$ 5,738
License and service agreements
Commitments and Contingencies
Accrued royalties		0
License and service agreements | Preferred Class A
Commitments and Contingencies
Issuance of stock in consideration for license (in shares)	9,000,000
Licensing agreements
Commitments and Contingencies
Accrued royalties		$ 0

Commitments and Contingencies41

Commitments and Contingencies - Legal Proceedings (Details)	1 Months Ended	3 Months Ended
	Mar. 31, 2017company	Mar. 31, 2017individualcompanyitem
TRX518
Loss Contingencies
Number of notices of opposition filed | item		3
Number of major companies that filed notices of opposition		2
Number of individuals that filed notices of opposition | individual		1
TRX518 and Chemotherapeutic
Loss Contingencies
Number of notices of opposition filed	10

Related Party Transactions (Det

Related Party Transactions (Details) - Stockholder - Shared office space and office related expenses $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)shareholder
Related Party Transactions
Number of stockholders | shareholder	1
Amount due to related parties | $	$ 58