Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ARAV | ||
Entity Registrant Name | Aravive, Inc. | ||
Entity Central Index Key | 0001513818 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 11,276,500 | ||
Entity Public Float | $ 59,763,689 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 56,992 | $ 81,146 |
Prepaid expenses and other current assets | 1,038 | 562 |
Total current assets | 58,030 | 81,708 |
Restricted cash | 2,396 | 2,383 |
Property and equipment, net | 32 | 798 |
Build-to-suit lease asset, net (Note 7) | 8,651 | 8,888 |
Intangible asset, net | 341 | |
Other assets | 20 | |
Total assets | 69,470 | 93,777 |
Current liabilities | ||
Accounts payable | 426 | 1,500 |
Accrued liabilities | 1,365 | 4,093 |
Deferred revenue | 146 | |
Total current liabilities | 1,937 | 5,593 |
Contingent payable | 264 | |
Build-to-suit lease obligation (Note 7) | 7,324 | 5,428 |
Total liabilities | 9,525 | 11,021 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity | ||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized at December 31, 2018 and December 31, 2017; zero shares issued and outstanding at December 31, 2018 and December 31, 2017 | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized at December 31, 2018 and December 31, 2017; 11,266,151 and 5,989,688 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 1 | 1 |
Additional paid-in capital | 510,509 | 456,987 |
Accumulated deficit | (450,565) | (374,232) |
Total stockholders' equity | 59,945 | 82,756 |
Total liabilities and stockholders’ equity | $ 69,470 | $ 93,777 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 11,266,151 | 5,989,688 |
Common stock, shares outstanding | 11,266,151 | 5,989,688 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | ||
Total revenue | $ 1,371 | $ 40,000 |
Operating expenses | ||
Research and development | 11,075 | 94,612 |
Write-off of acquired in-process research and development | 38,313 | |
General and administrative | 27,395 | 29,870 |
Total operating expenses | 76,783 | 124,482 |
Loss from operations | (75,412) | (84,482) |
Interest income | 989 | 847 |
Interest expense | (2,429) | (528) |
Other income (expense), net | 519 | (1,063) |
Net loss before provision for income taxes | (76,333) | (85,226) |
Benefit from income taxes | (247) | |
Net loss | $ (76,333) | $ (84,979) |
Net loss per share- basic and diluted | $ (10.64) | $ (14.47) |
Weighted-average common shares used to compute net loss per share- basic and diluted | 7,171 | 5,871 |
Contract Revenue [Member] | ||
Revenue | ||
Total revenue | $ 40,000 | |
Grant Revenue [Member] | ||
Revenue | ||
Total revenue | $ 1,371 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (76,333) | $ (84,979) |
Other comprehensive loss: | ||
Unrealized loss on cash flow hedge | 350 | |
Comprehensive loss | $ (76,333) | $ (84,629) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Accumulated Deficit [Member] |
Beginning Balances at Dec. 31, 2016 | $ 151,068 | $ 1 | $ 440,670 | $ (350) | $ (289,253) |
Beginning Balances, shares at Dec. 31, 2016 | 5,807,314 | ||||
Issuance of common stock upon exercise of options | $ 2,504 | 2,504 | |||
Issuance of common stock upon exercise of options, shares | 141,833 | 141,833 | |||
Issuance of common stock under employee benefit plans | $ 464 | 464 | |||
Issuance of common stock under employee benefit plans, shares | 40,541 | ||||
Stock-based compensation | 13,349 | 13,349 | |||
Other comprehensive income | 350 | $ 350 | |||
Net loss | (84,979) | (84,979) | |||
Ending Balances at Dec. 31, 2017 | 82,756 | $ 1 | 456,987 | (374,232) | |
Ending Balances, shares at Dec. 31, 2017 | 5,989,688 | ||||
Issuance of common stock upon exercise of options | $ 35 | 35 | |||
Issuance of common stock upon exercise of options, shares | 3,643 | 3,643 | |||
Issuance of common stock under employee benefit plans | $ 17 | 17 | |||
Issuance of common stock under employee benefit plans, shares | 130,905 | ||||
Stock-based compensation | 16,139 | 16,139 | |||
Issuance of common stock for the merger transaction | 37,331 | 37,331 | |||
Issuance of common stock for the merger transaction, shares | 5,141,915 | ||||
Net loss | (76,333) | (76,333) | |||
Ending Balances at Dec. 31, 2018 | $ 59,945 | $ 1 | $ 510,509 | $ (450,565) | |
Ending Balances, shares at Dec. 31, 2018 | 11,266,151 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (76,333) | $ (84,979) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 1,060 | 311 |
Write-off of acquired IPR&D | 38,313 | |
Stock-based compensation expense | 16,139 | 13,349 |
Changes in assets and liabilities, net of acquisition | ||
Prepaid expenses and other assets | (224) | 3,940 |
Accounts payable | (1,744) | 142 |
Deferred revenue | (1,371) | |
Accrued liabilities | (5,097) | (8,805) |
Income taxes payable | (247) | |
Upfront payment from collaboration partner | (40,000) | |
Net cash used in operating activities | (29,257) | (116,289) |
Cash flows from investing activities | ||
Purchase of property and equipment | (33) | (745) |
Leasehold improvements for build-to-suit asset | (3,558) | |
Cash paid to acquire IPR&D | (2,076) | |
Cash acquired in the merger transaction | 5,277 | |
Net cash provided by (used in) investing activities | 3,168 | (4,303) |
Cash flows from financing activities | ||
Inducement on build-to-suit lease obligation | 1,896 | |
Proceeds from issuance of common stock | 52 | 2,968 |
Net cash provided by financing activities | 1,948 | 2,968 |
Net decrease in cash, cash equivalents and restricted cash | (24,141) | (117,624) |
Cash, cash equivalents and restricted cash at beginning of period | 83,529 | 201,153 |
Cash, cash equivalents and restricted cash at end of period | 59,388 | 83,529 |
Supplemental disclosure of noncash items | ||
Build-to-suit lease transaction | $ 5,428 | |
Issuance of common stock for the merger transaction | $ 37,331 |
Formation and Business of the C
Formation and Business of the Company | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company Aravive, Inc. (“Aravive” or the “Company”) was incorporated on December 10, 2008 in the State of Delaware. Aravive is a clinical stage biopharmaceutical company focused on developing innovative therapies that target important survival pathways for cancer. Prior to the Merger, as described in Note 16, “Merger with Aravive Biologics, Inc.,” Aravive (then known as Versartis, Inc.) was an endocrine-focused biopharmaceutical company that was developing a long-acting recombinant human growth hormone for the treatment of growth hormone deficiency. The “Company” refers to Aravive as a combined company following the completion of the Merger with Aravive Biologics, Inc. (“Private Aravive”). The Merger became effective on October 12, 2018. On October 15, 2018, Versartis, Inc. changed its name to Aravive, Inc. The Company has been primarily performing research and development activities, including clinical trials, filing patent applications, hiring personnel, and raising capital to support and expand these activities. Its headquarters and principal operations are located in Houston, Texas. The Company’s product candidates, Aravive-S6 (AVB-S6), are a set of novel, high-affinity, soluble Fc-fusion proteins designed to block the activation of the GAS6-AXL signaling pathway by intercepting the binding of GAS6 to its receptor AXL. The Company has generated preclinical data for AVB-S6 proteins in both acute myeloid leukemia and certain advanced solid tumors including ovarian, renal, pancreatic, and breast cancers. The Company’s current development program benefits from the availability of a complementary serum-based biomarker that it expects will help accelerate drug development and reduce risk by allowing the Company to select a pharmacologically active dose, better monitoring of therapeutic responses and perhaps better selection of responder patient populations. In its recently completed Phase 1 clinical trial with its clinical product candidate, AVB-S6-500, the Company established proof of mechanism by demonstrating full GAS6 neutralization at all doses tested. Importantly, the lead protein candidate had a favorable safety profile preclinically and in the first in human study. In July 2016, Private Aravive was approved for a $20 million Product Development Award from the Cancer Prevention Institute of Texas (“CPRIT Grant”). The CPRIT Grant is expected to allow Private Aravive to develop the product candidates referenced above through clinical trials. The CPRIT Grant is effective as of June 1, 2016 and terminates on May 31, 2019, unless extended with CPRIT’s approval. After the termination date, Aravive is not permitted to retain any unused grant award proceeds without CPRIT’s approval, but Aravive’s royalty and other obligations, including its obligation to repay the disbursed grant proceeds under certain circumstances, survive the termination of the agreement. The CPRIT Grant is subject to customary CPRIT funding conditions including a matching funds requirement where Aravive will match 50% of funding from the CPRIT Grant. Consequently, Aravive is required to raise $10.0 million in matching funds over the three-year project. Aravive has raised all of its required $10.0 million in matching funds. Private Aravive’s award from CPRIT requires it to pay CPRIT a portion of its revenues from sales of certain products by it, or received from its licensees or sublicensees, at tiered percentages of revenue in the low- to mid-single digits until the aggregate amount of such payments equals 400% of the grant award proceeds, and thereafter at a rate of less than one percent for as long as Aravive maintains government exclusivity. In addition, the grant contract also contains a provision that provides for repayment to CPRIT of the full amount of the grant proceeds under certain specified circumstances involving relocation of Aravive’s principal place of business outside Texas. As consideration for the rights granted as part of a license agreement with Stanford University, Private Aravive is obligated to pay yearly license fees and milestone payments, and a royalty based on net sales of products covered by the patent-related rights. More specifically, Aravive is obligated to pay Stanford University (i) annual license payments (ii) milestone payments of up to an aggregate of $1,000,000 upon achievement of clinical and regulatory milestones, and (iii) royalties equal to a percentage (in the low single digits) of net sales of licensed products; provided that the annual license payments made will offset (and be credited against) any royalties due in such license year. In the event of a sublicense to a third party of any rights based on the patents that are solely owned by Stanford University, Private Aravive is obligated to pay royalties to Stanford University equal to a percentage of what Aravive would have been required to pay to Stanford University had it sold the products under sublicense itself. In addition, in such event Aravive is required to pay to Stanford University a percent of sublicensing income. In the event of a termination, Private Aravive will be obligated to pay all amounts that accrued prior to such termination. In connection with the completion of the Merger, on October 15, 2018, the amended and restated certificate of incorporation of the Company was amended to effect, at 12:01 a.m. Eastern Time on October 16, 2018, a reverse split of Company Common Stock at a ratio of 1-for-6 (the “Amended Certificate”). All share and per share amounts in the consolidated financial statements have been retroactively adjusted for all periods presented to give effect to the reverse split, including reclassifying an amount equal to the reduction in par value to additional paid-in capital. The Reverse Split affected all issued and outstanding shares of Common Stock, as well as Common Stock underlying stock options and restricted stock units outstanding immediately prior to the effectiveness of the Reverse Split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of the accompanying consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The accompanying consolidated financial statements are consolidated for the years ended December 31, 2018 and 2017 and include the accounts of Aravive, Inc. and its wholly-owned subsidiaries, Versartis Cayman Holdings Company, incorporated in 2014, Versartis GmbH, incorporated in 2015 and Private Aravive, incorporated in 2007, which was not included as a subsidiary in 2017. After 2015, the Cayman and GmbH subsidiaries became dormant. All intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all of the Company's subsidiaries and consolidated operations. Liquidity and Capital Resources Since inception, the Company has incurred net losses and negative cash flows from operations. At December 31, 2018, the Company had an accumulated deficit of $450.6 million and working capital of $56.1 million. Since inception, the Company has incurred net losses and negative cash flows from operations. The Company expects to continue to incur losses from costs related to the development of AVB-S6-500 and related administrative activities for the foreseeable future. As of December 31, 2018, the Company had a cash and cash equivalents balance of $57.0 million consisting of cash and investments in highly liquid U.S. money market funds. While the Company believes that its existing cash and cash equivalents will be sufficient to sustain operations for at least the next 12 months from the issuance of these financial statements, based on its current business plan, the Company will need to obtain additional financing to advance our clinical development program to later stages of development and commercialize our clinical product candidate. Although management has been successful in raising capital in the past, including $59.1 million in October and November 2016, there can be no assurance that the Company will be successful or that any needed financing will be available in the future at terms acceptable to the Company. Correction of Quarterly Information During the fourth quarter ended December 31, 2018, the Company determined that the amount related to the inducement on build-to-suit lease obligation as reflected within one line in the investing activities section of the unaudited consolidated statement of cash flows for the three-, six-, and nine-month periods ended March 31, 2018, June 30, 2018, and September 30, 2018, respectively, filed on Form 10-Q, should have been classified as cash flows provided from financing activities. There is no impact to the consolidated statements of operations and comprehensive loss or consolidated balance sheets for any of these periods. The Company evaluated the effect of this misclassification and concluded it was not material to any of its previously issued unaudited consolidated financial statements. Upon revision, cash flows from investing activities for the three-, six-, and nine-month periods ended March 31, 2018, June 30, 2018, and September 30, 2018, decreased by $1.5 million, $1.9 million, and $1.9 million, respectively and cash flows from financing activities for the respective periods increased by $1.5 million, $1.9 million, and $1.9 million, respectively. This adjustment had no impact to the Company’s financial position, results of operations or cash flows as of and for the year ended December 31, 2018. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. Concentration of c r Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. All of the Company’s cash and cash equivalents are held at several financial institutions that management believes are of high credit quality. Such deposits may exceed federally insured limits. During 2017, the Company entered into forward foreign currency contracts that exposed it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company does, however, seek to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties. Derivative Financial Instruments The Company engages in transactions denominated in foreign currencies and, as a result, is exposed to changes in foreign currency exchange rates. To manage the volatility resulting from fluctuating foreign currency exchange rates, the Company has in the past entered into option and forward foreign currency exchange contracts. The Company accounts for its derivative instruments as either assets or liabilities on the balance sheet and measures them at fair value. The Company assesses, both at inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting the changes in cash flows of the hedged items. If the Company determines that a forecasted transaction is no longer probable of occurring, it discontinues hedge accounting for the affected portion of the hedge instrument, and any related unrealized gain or loss on the contract is recognized in other comprehensive income (expense). Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of the Company’s products, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. Products developed by the Company require clearances from the U.S. Food and Drug Administration (“FDA”), the Pharmaceuticals Medicines and Devices Agency (“PMDA”), or other international regulatory agencies prior to commercial sales. There can be no assurance that the products will receive the necessary clearances. If the Company was denied clearance, clearance was delayed or the Company was unable to maintain clearance, it could have a material adverse impact on the Company. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to launch and commercialize any product candidates for which it receives regulatory approval. Cash and c e The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At December 31, 2018 and 2017 the Company’s cash and cash equivalents were held in multiple institutions with the United States and Europe and included deposits in money market funds which were unrestricted as to withdrawal or use. Restricted cash consists of a letter of credit to secure the Company’s obligations under the build-to-suit lease. Property and e Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally between three and five years. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or the term of the lease. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected in operations in the period realized. Build-to-Suit Lease In the Company’s recent lease arrangement (as described in Note 7), the Company was involved in the construction of the building. To the extent the Company is involved with the structural improvements of the construction project or takes construction risk prior to the commencement of a lease, accounting guidance requires the Company to be considered the owner for accounting purposes of these types of projects during the construction period. Therefore, the Company records an asset in property and equipment on the consolidated balance sheet for the replacement cost of the Company’s leased portion of the pre-existing building. The Company records a corresponding build-to-suit lease obligation on its consolidated balance sheets representing the amounts paid by the lessor. Upon completion of construction, the Company considered the requirements for sale-leaseback accounting treatment, including evaluating whether all risks of ownership have been transferred back to the landlord, as evidenced by a lack of continuing involvement in the leased property. The Company’s assessment of the arrangement did not qualify for sale-leaseback accounting treatment; therefore the building asset remains on the Company’s consolidated balance sheets at its historical cost, and such asset is depreciated over its estimated useful life. The initial recording of these assets and liabilities is classified as non-cash investing and financing items, respectively, for purposes of the consolidated statements of cash flows. Impairment of Long-Lived Assets The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by the comparison of the carrying amount to the future net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value (i.e. determined through estimating projected discounted future net cash flows or other acceptable methods of determining fair value) arising from the asset. There have been no such impairments of long-lived assets during the years ended December 31, 2018 and 2017. Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these items. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level I Unadjusted quoted prices in active markets for identical assets or liabilities; Level II Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level III Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level I assets as of December 31, 2018 and 2017. Level I securities are comprised of highly liquid money market funds. Preclinical and Clinical Trial Accruals The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations (“CROs”) that conduct and manage clinical trials on the Company’s behalf. The Company estimates preclinical and clinical trial expenses based on the services performed, pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. Research and d Research and development costs are charged to operations as incurred. Research and development costs include, but are not limited to, payroll and personnel expenses, laboratory supplies, consulting costs, external research and development expenses and allocated overhead, including rent, equipment depreciation, and utilities. Costs to acquire technologies to be used in research and development that have not reached technological feasibility and have no alternative future use are expensed to research and development costs when incurred. Income t The Company accounts for income taxes under the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The provision for income taxes includes income taxes paid or payable for the current year plus the change in deferred taxes during the year. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. Stock-Based c For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the nonemployee. Consolidated Statement of Operations and Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. Specifically, the Company includes cumulative foreign currency translation adjustments and net unrealized gains and losses on effective cash flow hedges. Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, stock options and restricted stock units are considered to be potentially dilutive securities. Because the Company has reported a net loss for the years ended December 31, 2018 and 2017, diluted net loss per common share is the same as basic net loss per common share for those periods. In-process Research & Development I n-process research and development, or IPR&D, was recorded at its relative fair value using a discounted cash flow model and was assigned to acquired research and development assets that were not fully developed as of the completion of the Merger. IPR&D acquired in an asset purchase is capitalized on the Company’s balance sheet at its acquisition-date fair value if the acquired IPR&D has alternative future use. For the IPR&D that was acquired from the Merger it was determined that the IPR&D had no alternative future use and therefore it was expensed immediately following the Merger. Fair value measurement was classified as Level 3 under the fair value hierarchy. Intangible Asset Intangible assets consist of an assembled workforce which was acquired as part of the Merger. Intangible assets with definite lives are amortized based on their pattern of economic benefit over their estimated useful lives and reviewed periodically for impairment. The estimated useful life of the assembled workforce is 3 years. Revenue Recognition The Company’s sole source of revenue for 2018 was grant revenue related to the CPRIT contract, which is being accounted for under ASC 606. ASC 606 introduces a new framework for analyzing potential revenue transactions by identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when (or as) the Company satisfies a performance obligation. The performance obligations of the Contract include developing AVB-S6-500 for use in cancer patients through research and development efforts and a noncommercial license from CPRIT. Management has concluded that the license and R&D services should be combined into a single performance obligation as both are highly interdependent - a license cannot be effectively granted without the corresponding research basis and CPRIT cannot benefit from the license without the R&D services and are therefore not capable of being distinct. As of the Merger date, Private Aravive had received $15.4 million from the CPRIT grant. Aravive received $2.6 million in February 2019, subsequent to December 31, 2018. Funds received are reflected in deferred revenue as a liability until revenue is earned. Grant revenue is recognized when qualifying costs are incurred. As of December 31, 2018, the Company had deferred revenue of $0.1 million. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective is not expected to have a material impact on the Company’s financial position or results of operations upon adoption. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting . This amendment provides additional guidance related to share-based payment transactions for acquiring goods or services from nonemployees. The guidance will be effective for the Company for fiscal years beginning after December 15, 2018, including the interim periods within that fiscal year. The Company has not yet adopted this new guidance and does not expect it to have a material impact on the Company’s consolidated financial statements when the new standard is implemented. Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made In May 2017, the FASB issued, ASU-2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This guidance clarifies when changes to the terms and conditions of share-based awards must be accounted for as modifications. The guidance does not change the accounting treatment for modifications. The guidance, which became effective on January 1, 2018, has not had a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued, ASU-2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business. In November 2016, the FASB issued, ASU-2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash As of December 31, 2018 December 31, 2017 Consolidated Balance Sheets Cash and cash equivalents $ 56,992 $ 81,146 Restricted cash 2,396 2,383 Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows $ 59,388 $ 83,529 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), Targeted Improvements The Company elected to adopt the standard on January 1, 2019 using the alternative transition method provided by ASU 2018-11 whereby the Company will record right-of-use (“ROU”) assets and lease liabilities for its existing leases as of January 1, 2019, as well as a cumulative-effect adjustment to retained earnings of initially applying the new standard as of January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the practical expedients to not reassess its prior conclusions about lease identification under the new standard, to not reassess lease classification, and to not reassess initial direct costs. The Company will not elect the practical expedient allowing the use-of-hindsight which would require the Company to reassess the lease term of its leases based on all facts and circumstances through the effective date. In May 2014, the FASB issued a new accounting standard that amends the guidance for the recognition of revenue from contracts with customers to transfer goods and services. The FASB has subsequently issued additional, clarifying standards to address issues arising from implementation of the new revenue recognition standard. The new revenue recognition standard and clarifying standards are effective for interim and annual periods beginning on January 1, 2018, and may be adopted earlier, but not before January 1, 2017. The revenue standards are required to be adopted by taking either a full retrospective approach or a modified retrospective approach. The Company has adopted the new revenue standard as of January 1, 2018 using a modified retrospective application to each prior reporting period presented. Through January 1, 2018 the Company had no open contracts and previously recorded a total of $40.0 million of contract revenues at December 31, 2017 received from Teijin Limited under an exclusive license and supply agreement which was considered substantially complete as of December 31, 2017. The adoption did not have an effect on the Company’s consolidated financial statements on the adoption date and no adjustment to retained earnings as of January 1, 2018 was required. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Prepaid expenses and other current assets (in thousands) December 31, 2018 2017 Preclinical and clinical $ 416 $ 261 Lease receivable 606 — Other 16 301 Total $ 1,038 $ 562 Property and equipment, net (in thousands) December 31, 2018 2017 Equipment and furniture $ 1,442 $ 1,409 Buildings, leasehold and building improvements 134 134 1,576 1,543 Less: Accumulated depreciation and amortization (1,544 ) (745 ) Property and equipment, net $ 32 $ 798 Depreciation expense was approximately $1.1 million and $0.3 million for the years ended December 31, 2018 and 2017, respectively. Intangible asset, net (in thousands) December 31, 2018 2017 Assembled workforce $ 366 $ — 366 — Less: Accumulated amortization (25 ) — Intangible asset, net $ 341 $ — Amortization expense is expected to be approximately $0.1 million in each year over the next 2.5 years. Build-to-suit lease asset, net (in thousands) December 31, 2018 2017 Build-to-suit lease asset $ 8,986 $ 8,986 8,986 8,986 Less: Accumulated depreciation and amortization (335 ) (98 ) Build-to-suit lease asset, net $ 8,651 $ 8,888 Accrued liabilities (in thousands) December 31, 2018 2017 Payroll and related $ 509 $ 2,058 Preclinical and clinical 563 1,694 Professional services — 204 Other 293 137 Total $ 1,365 $ 4,093 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company’s financial instruments consist principally of cash and cash equivalents, prepaid expenses, foreign currency exchange contracts, accounts payable and accrued liabilities. The remaining financial instruments are reported on the Company’s consolidated balance sheets at amounts that approximate current fair value. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Fair Value Measurements at December 31, 2018 Total Level 1 Assets Money market funds $ 48,389 $ 48,389 Fair Value Measurements at December 31, 2017 Total Level 1 Assets Money market funds $ 62,428 $ 62,428 The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the years ended December 31, 2018 or 2017. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 5. Derivative Financial Instruments The Company’s relationships with vendors in foreign countries expose it to market risk associated with foreign currency exchange rate fluctuations between the U.S. dollar and various foreign currencies, the most significant of which is the Euro. In order to manage this risk, the Company hedges a portion of its foreign currency exposures related to certain forecasted operating expenses using foreign currency exchange forward or option contracts. In general, the market risk related to these contracts is offset by corresponding gains and losses on the hedged transactions. By working only with major financial institutions and closely monitoring current market conditions, the Company seeks to limit its counterparty risk to these contracts. Therefore, the Company’s overall risk of loss in the event of a counterparty default is exposed to the currency risk. The Company does not enter into derivative contracts for trading or speculative purposes. The Company hedges its exposure to foreign currency exchange rate fluctuations for forecasted operating expenses that are denominated in a non-functional currency. The derivative instruments the Company uses to hedge this exposure are designated as cash flow hedges and have maturity dates of 12 months or less. Upon executing a hedging contract and quarterly thereafter, the Company assesses both retrospective and prospective hedge effectiveness using regression analysis to assert the hedge is highly effective at offsetting changes in cash flow. The Company includes time value in its effectiveness assessment and recognizes any ineffectiveness in other income (expense). The effective component of the Company’s hedge is recorded in accumulated other comprehensive income (OCI) within stockholders' equity and subsequently reclassified into earnings when the hedged exposure affects earnings. Derivatives not designated as hedges are not speculative and are used to manage the Company’s economic exposure to foreign exchange rate movements but do not meet the strict hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. All of the gains and losses related to the hedged forecasted transaction reported in accumulated other comprehensive income at December 31, 2016 were reclassified to research and development expenses as of December 31, 2017. While all of the Company’s derivative contracts allow it the right to offset assets or liabilities, the Company has presented amounts on a gross basis. Under the International Swap Dealers Association, Inc. master agreements with the respective counterparties of the foreign currency exchange contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. The Company does not have any credit contingent features associated with its derivatives. The following table summarizes the effect of our foreign currency exchange contracts on the Company’s consolidated financial statements (in thousands): As of December 31, 2018 2017 Derivatives designated as hedges: Gains (losses) reclassified from accumulated OCI into operating expenses (effective portion) $ — $ (350 ) From time to time, the Company may discontinue cash flow hedges and as a result, record related amounts in other income (expense), net on its consolidated statements of operations. The Company did not record any amounts in other income (expense), net at December 31, 2018 or December 31, 2017 as a result of the discontinuance of cash flow hedges. As of December 31, 2018 and 2017, the Company held no derivative contracts. |
Teijin Agreement
Teijin Agreement | 12 Months Ended |
Dec. 31, 2018 | |
License And Supply Agreement [Abstract] | |
Teijin Agreement | 6. Teijin Agreement In August 2016, the Company, entered into an Exclusive License and Supply Agreement (the “Agreement”) with Teijin Limited, or Teijin, a pharmaceutical company based in Japan, pursuant to which the Company granted to Teijin an exclusive license to develop, use, sell, offer for sale, import, and otherwise commercialize, in Japan, any pharmaceutical product incorporating somavaratan (VRS-317) , while the Company retains exclusive rights to somavaratan in the rest of the world. Under the Agreement, the development and commercialization of somavaratan products in Japan would have been overseen by a joint steering committee composed of representatives of Teijin and the Company. The Company would have been responsible for completing (at the Company’s expense) all ongoing clinical studies, including the current pediatric Growth Hormone Deficiency (GHD) Phase 2/3 trial, and its related long-term safety study, and the Company would have also been responsible for a portion of the costs associated with any additional trials, if they are required by the Japanese authorities for approval of the Marketing Authorization Application, or MAA, in Japan in the pediatric indication, up to a cap on our share of such costs of $5.0 million. Following the MAA submission in Japan, Teijin would have been responsible for conducting any additional Japanese studies for the pediatric or any other indications, at its own expense. In September 2017, the Phase 3 VELOCITY trial of somavaratan failed to reach its primary endpoint. As a result, because Japanese approval relied upon a positive Phase 3 Velocity trial result, the Japan pediatric GHD Phase 3 trial and its related long-term safety study have been discontinued. In January 2018, the Company received notice from Teijin that it was, pursuant to the agreement’s terms, terminating the Agreement, effective as of January 31, 2018. The notice of termination followed discussions between the Company and Teijin regarding the failure of the Company’s Phase 3 VELOCITY trial to meet its primary endpoint during which the Company and Teijin determined that continuing with the Agreement was no longer in the best interests of either party. Under the Agreement, the Company had granted to Teijin an exclusive license to develop, use, sell, offer for sale, import and otherwise commercialize, in Japan, any pharmaceutical product incorporating somavaratan (VRS-317). In exchange for such rights, the Company received an upfront fixed and non-refundable payment of $40 million from Teijin and could potentially have also received up to $125 million in development, regulatory and sales milestone payments, in addition to transfer pricing and a royalty calculated on net sales in Japan. The termination is not associated with any early termination penalty or any further payments by either party. Upon termination of the license agreement, the Company assessed whether to recognize the upfront payment as revenue in accordance with ASC 605-25 Multiple-Element Arrangements, as of December 31, 2017. From receipt of the $40.0 million in August 2016 through September 30, 2017, the Company concluded that persuasive evidence of an arrangement did not yet exist as certain key economic terms that may have significantly impacted economics of the Agreement were yet to be negotiated and finalized by the parties as part of the commercial supply agreement. The Company reviewed the Agreement noting that remaining efforts made by the Company from October 2017 through January 2018 were not deemed a deliverable under the Agreement. These remaining efforts consisted solely of activities related to shutting down the clinical sites because of the VELOCITY trial failing to meet its primary endpoint. The actions undertaken to close sites would have occurred with or without a third party and were not an obligation specific to, nor were they described, in the agreement. As such, the Company’s obligations under the Agreement were substantively complete at December 31, 2017. |
Build-to-Suit Lease
Build-to-Suit Lease | 12 Months Ended |
Dec. 31, 2018 | |
Leases Operating [Abstract] | |
Build-to-Suit Lease | 7. Build-to-Suit Lease In March 2017, the Company entered into an operating facility lease agreement for approximately 34,500 rentable square feet located at 1020 Marsh Road, Menlo Park, California and for approximately 17,400 rentable square feet located at 1060 Marsh Road. In September 2017, the Company opted out of its intent to occupy 1060 Marsh Road. $1.9 million for the 1020 Space, for Under the terms of the lease agreement, the Company has indemnified the landlord during the construction period. Accordingly, for accounting purposes, the Company has concluded that it is the deemed owner of the building during the construction period and the Company capitalized approximately $8.9 million within property and equipment and recognized an $7.3 million corresponding build-to-suit obligation in non-current liabilities in the consolidated balance sheet as of December 31, 2018. Of the $8.9 million, approximately $3.5 million has been recorded as a build-to-suit asset related to construction costs incurred by the Company as of December 31, 2018. In August 2018, the Company entered into an operating sublease agreement with EVA Automation, Inc. (“EVA”) for the 1020 Space referenced above. The 1020 Space Sublease commenced on October 1, 2018 for 72 months. EVA is entitled to an abatement of base rent of approximately $0.9 million for the first five full calendar months of the term of the sublease. Lease income associated with this sublease is recorded in other income in the accompanying consolidated statement of operations. The Company has recorded lease income associated with this sublease of approximately $0.6 million for the year ended December 31, 2018. This sublease income has been recorded as a receivable in prepaid expenses and other current assets on the accompanying consolidated balance sheet. Future base rent and additional rent EVA shall pay to the Company over the sublease term as of December 31, 2018, are as follows (in thousands): Year Ending December 31, 2019 $ 2,068 2020 2,479 2021 2,544 2022 2,611 2023 2,680 Thereafter 2,284 $ 14,666 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Facility Leases In March 2014, the Company entered into an operating facility lease agreement to lease approximately 12,900 square feet in Menlo Park, California for its headquarters building for a period of thirty-nine months. The term of this lease ended in August 2017. In December 2015, the Company entered into an operating sublease agreement to lease approximately 10,900 square feet of additional office space in Menlo Park for a period of twenty-four months. The term of this lease ended in December 2017. In March 2017, the Company entered into an operating facility lease agreement for approximately 34,500 rentable square feet located at 1020 Marsh Road, Menlo Park, California. The lease commenced in August 2017 for a period of 86 months with one renewal option for a five-year term. The total obligation under this lease is approximately $17.0 million as of December 31, 2018. The Company is considered the "accounting owner" of the 1020 Space as a build-to-suit lease asset and has recorded a build-to-suit lease obligation on its consolidated balance sheets. Additional information regarding the build-to-suit lease is included in Note 7. In October 2018, the Company executed a sublease agreement in Palo Alto, California for approximately 4,240 square feet for office space. The rental term of the sublease commenced on October 30, 2018 and expires August 31, 2020. The total obligation for the Company under this lease is approximately $0.3 million. Rent expense was $0.3 million and $1.5 million, Future minimum payments under the Company’s lease obligations as of December 31, 2018, are as follows (in thousands): Year Ending December 31, 2019 $ 3,048 2020 2,980 2021 2,930 2022 3,009 2023 3,089 Thereafter 2,364 $ 17,420 Boehringer Ingelheim Commercial Supply Agreement In December 2016, through the Company’s subsidiary, Versartis GmbH, entered into a Commercial Supply Agreement with Boehringer Ingelheim Biopharmaceuticals GmbH (“BI”), pursuant to which the Company engaged BI as a contract manufacturer to manufacture the bulk drug substance for our proprietary long-acting human growth hormone, somavaratan, fill it into the final container and closure and supply such drug product to us for commercial use. Under the agreement, each calendar year the Company was required to reserve minimum drug substance manufacturing capacity, order from BI a minimum number of batches of drug substance, and purchase and take possession of a minimum number of batches of drug product. If the Company did not order and purchase these minimum quantities, it would have needed to pay fees to BI based on the shortfalls in its product orders or purchases, unless there was a supply failure or supply interruption by BI. The agreement included customary terms and conditions relating to, among other things, forecast, ordering, delivery, inspection, acceptance and product warranties. In September 2017, the Phase 3 VELOCITY trial of somavaratan failed to reach its primary endpoint. As a result, the Company notified BI of its termination of their commercial supply agreement in September 2017 which termination became effective in December 2017. Owen Mumford Manufacture and Supply Agreement In May 2016, the Company entered into a Manufacture and Supply Agreement with Owen Mumford Limited, a leading medical device manufacturer, pursuant to which the Company engaged Owen Mumford to: (1) manufacture a proprietary disposable autoinjector device and (2) assemble and supply a final combination product including the device and somavaratan, its proprietary long-acting form of human growth hormone. The Company agreed to supply somavaratan in prefilled syringes to Owen Mumford for incorporation into the final combination product. In September 2017, the Phase 3 VELOCITY trial of somavaratan failed to reach its primary endpoint. As a result, the Company terminated its manufacture and supply agreement with Owen Mumford in October 2017. Purchase Commitments The Company conducts research and development programs through a combination of internal and collaborative programs that include, among others, arrangements with contract manufacturing organizations and contract research organizations. The Company had contractual arrangements with these organizations including license agreements with milestone obligations and service agreements with obligations largely based on services performed. In the normal course of business, the Company enters into various firm purchase commitments related to certain preclinical and clinical studies. Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of December 31, 2018 and 2017 the Company is contingently committed to make development and sales-related milestone payments of up to $30.0 million under certain circumstances, and other payments of $10.0 million, as well as royalties relating to potential future product sales under the License Agreement with Amunix. The amount, timing and likelihood of these payments are unknown as they are dependent on the occurrence of future events that may or may not occur, including approval by the FDA of potential drug candidates. Indemnification In accordance with the Company’s amended and restated Certificate of Incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacity. There have been no claims to date and the Company has a director and officer insurance policy that may enable it to recover a portion of any amounts paid for future claims. Litigation The Company may from time to time be involved in legal proceedings arising from the normal course of business. There are no pending or threatened legal proceedings as of December 31, 2018. Contingent payable As part of the Merger, the Company acquired a settlement with former creditors in 2014, Private Aravive had agreed to make an initial 7.5% cash payment to the creditors with the remainder contingent on future milestone payments, or Contingent Payments, until full repayment of the payables is made. The contingent Payments are to be made from the proceeds received by Private Aravive from any future licensing transactions. The Contingent Payments will be distributed on a pro rata basis with other secured creditors and will be made from at least 10% of any proceeds from any future licensing transactions. The proceeds from any future licensing transactions will be held in an escrow account which will be administered by an independent third party. The creditors agree that the Initial payment and any Contingent Payments represents settlement in full of all outstanding obligations owed to the creditors by Private Aravive and released Private Aravive from all claims. As a result of and in connection with the Merger, the Company determined the fair value of the contingent payable to be approximately $264,000, based upon an appraisal (or valuation) of the assets and liabilities assumed to determine fair values. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Common Stock | 9. Common Stock The Amended and Restated Certificate of Incorporation, authorizes the Company to issue 100,000,000 shares of common stock as of December 31, 2018. Common stockholders are entitled to dividends as and when declared by the Board of Directors, subject to the rights of holders of all classes of stock outstanding having priority rights as to dividends. There have been no dividends declared to date. The holder of each share of common stock is entitled to one vote. The Company had reserved shares of common stock for future issuances as follows: December 31, 2018 2017 Issuance of equity based awards under stock plan 1,201,581 — Issuance upon exercise of options under stock plan 1,515,923 607,511 Issuance of restricted stock units under stock plan 117,597 419,163 Total 2,835,101 1,026,674 In connection with the completion of the Merger, on October 15, 2018, the amended and restated certificate of incorporation of the Company was amended to effect, at 12:01 a.m. Eastern Time on October 16, 2018, a reverse split of Company Common Stock at a ratio of 1-for-6 (the “Amended Certificate”). The accompanying financial statements and notes to financial statements give retroactive effect to the reverse stock split for all periods presented. |
Stock Based Awards
Stock Based Awards | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Awards | 10. Stock Based Awards 2009 Equity Incentive Plan In February 2009, the Company adopted the Versartis, Inc. 2009 Stock Plan, which was amended in June 2011 (“2009 Plan”) for eligible employees, outside directors and consultants. The 2009 Plan provides for the granting of incentive stock options (“ISO”), non-statutory stock options (“NSO”), and stock purchase rights to acquire restricted stock. Terms of the stock option agreements, including vesting requirements, are determined by the compensation committee of the board of directors, subject to the provisions in the 2009 Plan. Options granted by the Company generally vest over a period of four years and expire no later than ten years after the date of grant. Options may be exercised prior to vesting, subject to a right of repurchase by the Company. The board of directors determines the fair value of the underlying common stock at the time of the grant of each option. Upon the exercise of options, the Company issues new common stock from its authorized shares. Options under the 2009 Plan may be granted for periods of up to ten years. All options issued to date have had a ten year life. The exercise price of an ISO shall not be less than 100% of the estimated fair value of the shares on the date of grant, as determined by the Board of Directors. The exercise price of an ISO and NSO granted to a 10% shareholder shall not be less than 110% of the estimated fair value of the shares on the date of grant, respectively, as determined by the board of directors. The exercise price of a NSO shall not be less than the par value per share of common stock. To date, options granted generally vest over four years and vest at a rate of 25% upon the first anniversary of the issuance date and 1/36th per month thereafter. Upon adoption of the 2014 Equity Incentive Plan described below, no further grants will be made under the 2009 Plan. 2014 Equity Incentive Plan In March 2014, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2014 Equity Incentive Plan, or the 2014 Plan. The 2014 Plan became effective at the time of the initial public offering and is the successor to the 2009 Plan. The 2014 Plan provides for the grant of ISOs to employees and for the grant of NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards, performance-based cash awards and other forms of equity compensation to employees, directors and consultants. Additionally, the 2014 Plan provides for the grant of performance cash awards to employees, directors and consultants. Initially, the aggregate number of shares of common stock that may be issued pursuant to stock awards under the 2014 Plan after the initial public offering is approximately 0.7 million, which includes options outstanding under the 2009 Plan. The number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year, beginning on January 1, 2015 and ending on and including January 1, 2024, by 4.5% of the total number of shares of the Company’s capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the board of directors. The maximum number of shares that may be issued upon the exercise of ISOs under the 2014 Plan is 2,000,000. The Company’s board of directors, or a duly authorized committee of the board of directors, will administer the 2014 Plan. The board of directors may also delegate to one or more of the Company’s officers the authority to (i) designate employees (other than officers) to receive specified stock awards, and (ii) determine the number of shares of our common stock to be subject to such stock awards. Subject to the terms of our 2014 Plan, the board of directors has the authority to determine the terms of awards, including recipients, the exercise, purchase or strike price of stock awards, if any, the number of shares subject to each stock award, the fair market value of a share of the Company’s common stock, the vesting schedule applicable to the awards, together with any vesting acceleration, and the form of consideration, if any, payable upon exercise or settlement of the award and the terms of the award agreements. Options granted under the 2014 Plan have a contractual life of ten years and generally vest over four years and vest at a rate of 25% upon the first anniversary of the issuance date and 1/36 th 2010 Equity Incentive Plan As part of the Merger, the Company assumed the 2010 Stock Option Plan (the “2010 Plan”) from Private Aravive. The Company has reserved a total of 600,000 shares of common stock for issuance under the 2010 Plan. The 2010 Plan provides for granting of equity awards, including restricted stock and incentive and nonqualified stock options to purchase common stock, to employees, directors, officers and independent consultants of the Company. Options granted to employees and consultants under the Plan generally vest 25% after one year of service, and ratably on a monthly basis over the following three years. Options expire ten years from the date of grant. 2017 Equity Incentive Plan As part of the Merger, the Company assumed the 2017 Stock Option Plan (the “2017 Plan”) from Private Aravive. The Company has reserved a total of approximately 461,000 shares of common stock for issuance under the 2017 Plan. The 2017 Plan provides for granting of equity awards, including restricted stock and incentive and nonqualified stock options to purchase common stock, to employees, directors, officers and independent consultants of the Company. Options granted to employees and consultants under the Plan generally vest 25% after one year of service, and ratably on a monthly basis over the following three years. Options expire ten years from the date of grant Activity under the Company’s stock option plans is set forth below: Weighted Average Weighted Remaining Aggregate Shares Average Contractual Intrinsic Available Number of Exercise Life Value for Grant Shares Price (in years) (in thousands) Balances, January 1, 2017 174,019 742,052 $ 66.96 Additional shares authorized 261,329 — — Options granted (227,450 ) 227,450 95.50 Restricted stock units granted (428,056 ) — — Options exercised — (141,833 ) 17.62 Options cancelled 220,158 (220,158 ) 87.90 Balances, December 31, 2017 — 607,511 81.60 Additional shares authorized 269,535 — — Assumption of option plans associated with the merger 660,151 1,183,950 0.44 Options granted — — — Restricted stock units granted — — — Options exercised — (3,643 ) 9.66 Options cancelled 271,895 (271,895 ) 80.09 Balances, December 31, 2018 1,201,581 1,515,923 $ 18.65 6.5 $ 3,650 Vested and expected to vest as of December 31, 2018 1,514,245 $ 18.58 6.5 $ 3,650 Exercisable as of December 31, 2018 1,469,854 $ 16.76 6.5 $ 3,650 The intrinsic values of outstanding, vested and exercisable options were determined by multiplying the number of shares by the difference in exercise price of the options and the fair value of the common stock. The intrinsic value of stock options exercised during the years ended December 31, 2018 and 2017, was none and $11.5 million, respectively. The following table summarizes information with respect to stock options outstanding and currently exercisable and vested as of December 31, 2018: Options Exercisable Options Outstanding and Vested Weighted Average Weighted Average Remaining Remaining Range of Number Contractual Number Contractual Exercise Prices Outstanding Life (in Years) Outstanding Life (in Years) $0.06-$0.06 86,867 2.5 86,867 2.5 $0.24-$0.24 621,098 6.4 621,098 6.4 $0.66-$0.90 475,985 8.5 475,985 8.5 $7.59-$126.00 312,679 5.1 266,644 5.1 $127.80-$191.76 19,294 3.8 19,260 3.8 1,515,923 1,469,854 Stock Options Granted to Employees During the year ended December 31, 2018, the Company assumed fully vested stock options in accordance with the Merger agreement with Private Aravive. During the year ended December 31, 2017, the Company granted stock options to employees to purchase shares of common stock with a weighted-average grant date fair value of $11.10 per share. The fair value is being expensed over the vesting period of the options, which is usually 4 years on a straight-line basis as the services are being provided. No tax benefits were realized from options and other share-based payment arrangements during the periods. As of December 31, 2018, total unrecognized employee stock-based compensation related to stock options granted was $ 2.2 million, which is expected to be recognized over the weighted-average remaining vesting period of 1.4 years. The fair value of employee stock options was estimated using the Black-Scholes model with the following weighted-average assumptions Year Ended December 31, 2018 2017 Expected volatility 132.0 % 78.0 % Risk-free interest rate 3.0 % 2.1 % Dividend yield 0.0 % 0.0 % Expected life (in years) 3.3 6.2 For the year ended December 31, 2018 the fair value assumptions noted above, were all related to the assumed fully vested stock options in accordance with the Merger. No stock options were granted to employees in 2018. Determining Fair Value of Stock Options The fair value of each grant of stock options was determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment to determine. Expected Volatility – The expected stock price volatility assumption was determined by examining the historical volatilities of a group of industry peers, as the Company did not have any trading history for the Company’s common stock. The Company will continue to analyze the historical stock price volatility and expected term assumptions as more historical data for the Company’s common stock becomes available. Beginning in 2018, the Company had enough historical stock price information in order to value the options assumed in the Merger. Expected Term – The expected term of stock options represents the weighted average period the stock options are expected to be outstanding. For option grants that are considered to be “plain vanilla”, the Company has opted to use the simplified method for estimating the expected term as provided by the Securities and Exchange Commission. The simplified method calculates the expected term as the average time-to-vesting and the contractual life of the options. For other option grants, the expected term is derived from the Company’s historical data on employee exercises and post-vesting employment termination behavior taking into account the contractual life of the award. Risk-Free Interest Rate – The risk free rate assumption was based on the U.S. Treasury instruments with terms that were consistent with the expected term of the Company’s stock options. Expected Dividend – The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. Forfeiture Rate – Forfeitures were estimated based on historical experience. Fair Value of Common Stock – The fair value of the shares of common stock underlying the stock options has historically been the responsibility of and determined by the Company’s board of directors. Because there had been no public market for the Company’s common stock prior to the initial public offering, the board of directors determined the fair value of common stock at the time of grant of the option by considering a number of objective and subjective factors including independent third party valuations of the Company’s common stock, sales of convertible preferred stock to unrelated third parties, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, amongst other factors. Since the initial public offering in March 2014, the fair value of the underlying common stock is based upon quoted prices on the Nasdaq Global Select Market. Stock-based compensation expense, net of estimated forfeitures, is reflected in the statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2018 2017 Operating Expenses Research and development $ 2,946 $ 4,549 General and administrative 13,193 8,800 Total $ 16,139 $ 13,349 The assumed options associated with the Merger were fully vested awards as outlined in the Merger agreement. These assumed options were expensed immediately following the Merger and are included in the stock-based compensation expense for the year ended December 31, 2018. 2014 Employee Stock Purchase Plan The board of directors adopted, and the Company’s stockholders approved, the 2014 Employee Stock Purchase Plan, or the ESPP, in March 2014. The ESPP became effective on March 20, 2014. The maximum aggregate number of shares of common stock that may be issued under the ESPP is 25,000 shares (subject to adjustment to reflect any split of our common stock). Additionally, the number of shares of common stock reserved for issuance under the ESPP will increase automatically each year, beginning on January 1, 2015 and continuing through and including January 1, 2024, by the lesser of (i) 1% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year; and (ii) 50,000 shares of common stock (subject to adjustment to reflect any split of our common stock). The board of directors may act prior to the first day of any calendar year to provide that there will be no January 1 increase or that the increase will be for a lesser number of shares than would otherwise occur. Shares subject to purchase rights granted under the ESPP that terminate without having been exercised in full will not reduce the number of shares available for issuance under the ESPP. An employee may not be granted rights to purchase stock under the ESPP if such employee (i) immediately after the grant would own stock possessing 5% or more of the total combined voting power or value of the Company’s common stock, or (ii) holds rights to purchase stock under the ESPP that would accrue at a rate that exceeds $25,000 worth of our stock for each calendar year that the rights remain outstanding. The administrator may approve offerings with a duration of not more than 27 months, and may specify one or more shorter purchase periods within each offering. Each offering will have one or more purchase dates on which shares of common stock will be purchased for the employees who are participating in the offering. The administrator, in its discretion, will determine the terms of offerings under the ESPP. The ESPP permits participants to purchase shares of our common stock through payroll deductions with up to 15% of their earnings. The purchase price of the shares will be not less than 85% of the lower of the fair market value of our common stock on the first day of an offering or on the date of purchase. The fair value of the ESPP grants were immaterial for the years ended December 31, 2018 and 2017, respectively. Restricted Stock Units Restricted stock units are shares of common stock which are forfeited if the employee leaves the Company prior to vesting. These stock units offer employees the opportunity to earn shares of the Company’s stock over time, rather than options that give the employee the right to purchase stock at a set price. As a result of these restricted stock units, the Company recognized $3.2 million and $3.5 million, A summary of the Company’s restricted stock activity is presented in the following tables: Weighted Average Number of Grant Date Shares Fair Value Restricted Stock Units Unvested at December 31, 2017 419,163 $ 32.56 Granted — — Vested (128,136 ) 35.60 Forfeited/canceled (173,430 ) 31.12 Unvested at December 31, 2018 117,597 $ 31.37 |
Comprehensive Loss
Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Comprehensive Loss | 11. Comprehensive loss The following table summarizes amounts reclassified out of Accumulated Other Comprehensive Loss (AOCI) and their effect on the Company’s consolidated statements of operations for the year ended December 31, 2017. There was no comprehensive income items for the year ended December 31, 2018 (in thousands). Unrealized Gains and Losses on Cash Flow Hedges Total Balance at December 31, 2016 $ (350 ) $ (350 ) Amounts reclassified out of other comprehensive loss 350 350 Net current period other comprehensive loss 350 350 Balance at December 31, 2017 $ — $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The provision (benefit) for federal income taxes in 2018 and 2017 is as follows (in thousands): December 31, 2018 2017 Current Federal $ — $ (247 ) State — — — (247 ) Deferred Federal $ — $ — State — — Total deferred tax expense — — Total income tax expense $ — $ (247 ) December 31, 2018 2017 United States $ (76,256 ) $ (125,093 ) Foreign (77 ) 39,867 Net loss before provision for income taxes $ (76,333 ) $ (85,226 ) Income tax expense (benefit) in 2018 and 2017 differed from the amount expected by applying the statutory federal tax rate to the income or loss before taxes as summarized below: December 31, 2018 2017 Federal tax benefit at statutory rate 21 % 34 % Change in valuation allowance 99 % (7 )% Research and development credits — 16 % Section 382 limitation (109 )% — Other non-deductible expenses (11 )% (3 )% Change in rate differential — (38 )% Build-to-suit adjustments — (2 )% Total 0 % 0 % Deferred income taxes reflect the net tax effects of net operating loss and tax credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax assets at December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 2017 Net operating loss carry forwards $ 2,335 $ 69,281 Research and development tax credits 168 34,891 Stock based compensation and other 8,567 5,693 Total deferred tax assets 11,070 109,865 Less: Valuation allowance (10,336 ) (108,782 ) Deferred tax liabilities (734 ) (1,083 ) Net deferred tax assets $ — $ — The Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the Company’s deferred tax assets, and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At present, the Company does not believe that it is more likely than not that the deferred tax assets will be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the accompanying balance sheets. The valuation allowance decreased by approximately $98.4 million and increased by approximately $60.8 million in 2018 and 2017, respectively. At December 31, 2018, the Company has net operating loss carryforwards for federal income tax purposes of approximately $11.1 million, of which $4.3 million was generated post December 31, 2017 (after section 382 limitation) and will have no expiration date. The remaining $6.8 million of net operating loss carryforwards begin to expire in 2037. The Company also has federal research and development tax credits of approximately $0.2 million, which begin to expire in 2037. As of December 31, 2018, the Company’s total gross deferred tax assets were $11.1 million. Due to the Company’s lack of earnings history and uncertainties surrounding our ability to generate future taxable income, the net deferred tax assets have been fully offset by a valuation allowance. The deferred tax assets were primarily comprised of federal tax net operating losses and tax credit carryforwards. Utilization of net operating losses and tax credit carryforwards may be limited by the “ownership change” rules, as defined in Section 382 of the Internal Revenue Code (any such limitation, a “Section 382 limitation”). Similar rules may apply under state tax laws. The Company has performed an analysis to determine whether an “ownership change” occurred from inception up to the Private Aravive's acquisition date. Based on this analysis, management determined that both Versartis, Inc. and Private Aravive did experience ownership changes, which resulted in a significant impairment of the net operating losses and credit carryforwards. As such, the net operating loss carryforwards have been reduced by $306 million. The tax credit carryforwards have been reduced by $39.5 million. The Company follows the provisions of FASB Accounting Standards Codification 740-10 (ASC 740-10), Accounting for Uncertainty in Income Taxes. ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in consolidated financial statements of uncertain tax positions that have been taken or expected to be taken on a tax return. No liability related to uncertain tax positions is recorded in the consolidated financial statements. At December 31, 2018 and 2017, the Company’s reserve for unrecognized tax benefits is approximately $72,000, and $3,934,000, respectively. Due to the above-mentioned Section 382 limitation and impairment of tax attributes, there was a decrease in prior year unrecognized tax benefits of $3.9 million. Due to the full valuation allowance at December 31, 2018, current adjustments to the unrecognized tax benefit will have no impact on the Company’s effective income tax rate; any adjustments made after the valuation allowance is released will have an impact on the tax rate. The Company does not anticipate any significant change in its uncertain tax positions within 12 months of this reporting date. The Company includes penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. Because the statute of limitations does not expire until after the net operating loss and credit carryforwards are actually used, the statute is effectively open for all tax years. However, due to the above-mentioned ownership change and impairment of net operating loss and credit carryforwards, only net operating loss and credit carryforwards post-January 14, 2017 are carried forward to future years for federal and state tax purposes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Amount Balance at January 1, 2017 $ 10,116 Gross increase/ (decrease) related to prior year tax positions 1 (7,776 ) Gross increase related to current year positions 1,594 Reductions to unrecognized tax benefits related to lapsing statute of limitations — Balance at December 31, 2017 $ 3,934 Gross increase/ (decrease) related to prior year tax positions (3,934 ) Gross increase related to current year positions 72 Reductions to unrecognized tax benefits related to lapsing statute of limitations — Balance at December 31, 2018 $ 72 1 All tax years remain open for examination by federal and state tax authorities. The Tax Cuts and Jobs Act ("the Act") was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as determining the estimated transition tax, remeasuring our U.S. deferred tax assets and liabilities at a 21% rate as well as reassessing the net realizability of our deferred tax assets and liabilities. Accordingly, the Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The provisional amount related to the re-measurement of our deferred tax balance is a reduction of approximately $33 million. Due to the corresponding valuation allowance fully offsetting deferred taxes, there is no income statement impact. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118) which allows companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. In Q4 2018, the Company completed its analysis within the measurement period in accordance with SAB 118, and found no change to the provisional amount on 2017 tax provision. |
Restructuring Plan
Restructuring Plan | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Plan | 13. Restructuring Plan In October 2017, the Board of Directors of the Company approved a plan of termination to eliminate a number of positions effective October 20, 2017 (the “Restructuring Plan”), as part of its commitment to reduce costs following the failure of the Phase 3 VELOCITY trial of somavaratan to reach its primary endpoint. The reduction included 45 employees, which represented approximately 62% of its workforce as of October 6, 2017. Affected employees were notified of the Restructuring Plan on October 6, 2017. Simultaneously with the Restructuring Plan the Company established a Severance Benefit Plan (the “Plan”) for affected employees as well as a retention plan for retained employees. The Plan provides payment of severance benefits to affected employees of the Company. The Company granted approximately 907,000 restricted stock units to retained employees with a two year vesting schedule and offered a cash retention bonus of 50% of each retained employees then current base salary, which will be earned and payable subject to continued employment for an additional 12 months. Employee severance costs are accrued when the restructuring actions are probable and estimable. Costs for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period. During the year ended December 31, 2017, as a result of the Restructuring Plan, the Company incurred a one-time severance-related charge totaling $3.4 million, of which $0.7 million is included within general and administrative expenses and $2.7 million is included within research and development expenses. The Company accrued $0.8 million related to the cash retention bonus as of December 31, 2017. During the year ended December 31, 2018, the Company incurred severance-related charges totaling $4.2 million, of which $1.7 million is included within general and administrative expenses and $2.5 million is included within research and development expenses. There was no balance owed under these restructuring plans as of December 31, 2018. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 14. Employee Benefit Plans Defined Contribution Plan The Company sponsors a 401(k) Plan, which stipulates that eligible employees can elect to contribute to the 401(k) Plan, subject to certain limitations of eligible compensation. The Company may match employee contributions in amounts to be determined at the Company’s sole discretion. To date, the Company has not made any matching contributions. Severance Benefit Plan & Retention Cash Bonus Simultaneously with the Restructuring Plan, the Company established a Severance Benefit Plan (the “Plan”) for affected employees (See Note 13) as well as a retention plan for retained employees. The Plan provides payment of severance benefits to affected employees of the Company. The Company granted approximately 151,000 restricted stock units to retained employees with a two year vesting schedule and offered a cash retention bonus of 50% of each retained employees then current base salary, of which $1.5 million was paid in October 2018. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 15. Net loss per share The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company (in thousands, except per share data): December 31, 2018 2017 Net loss attributable to common stockholders- basic and diluted $ (76,333 ) $ (84,979 ) Net loss per share- basic and diluted $ (10.64 ) $ (14.47 ) Weighted-average common shares used to compute net loss per share- basic and diluted 7,171 5,871 Basic net loss attributable to common stockholders per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net loss attributable to common stockholders per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as-if converted method, for convertible securities, if inclusion of these is dilutive. Because the Company has reported a net loss for the years ended December 31, 2018 and 2017, the Company did not have dilutive common stock equivalents and therefore diluted net loss per common share is the same as basic net loss per common share for those years. The following potentially dilutive securities outstanding at the end of the years presented have been excluded from the computation of diluted shares outstanding: December 31, 2018 2017 Options to purchase common stock 1,515,923 607,511 Restricted stock units 117,597 419,163 |
Merger with Aravive Biologics,
Merger with Aravive Biologics, Inc. | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Merger with Aravive Biologics, Inc. | 16. Merger with Aravive Biologics, Inc. On October 12, 2018, pursuant to the terms of the Agreement and Plan of Merger and Reorganization, dated as of June 3, 2018, by and between the Company, then known as Versartis, Inc., Velo Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Merger Sub”), and Private Aravive, Merger Sub was merged with and into Private Aravive (the “Merger”), with Private Aravive surviving the Merger as a wholly-owned subsidiary of the Company. Pursuant to the terms of the Merger Agreement, at the Effective Time, each outstanding share of capital stock of Private Aravive (other than any shares held as treasury stock) was converted into the right to receive 2.2801 shares of the Company’s common stock, par value $0.0001 per share (the “Company Common Stock”), without giving effect to any adjustment for the reverse stock split described below, and (b) each outstanding Private Aravive stock option, all of which were in-the-money, whether vested or unvested, that had not previously been exercised prior to the Effective Time was converted into an option to purchase 2.2801 shares of the Company Common Stock for each share of Private Aravive common stock covered by such option. The aggregate consideration issued in the Merger to the former security holders of Private Aravive, was approximately 5,141,915 shares of Company Common Stock. The Merger was accounted for as an asset acquisition by the Company. To determine the accounting for this transaction under GAAP, the Company assessed whether an integrated set of assets and activities were accounted for as an acquisition of a business or an asset acquisition. The guidance requires an initial screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If that screen is met, the set is not a business. In connection with the acquisition of Private Aravive, the Company determined that substantially all the fair value is included in in-process research and development of Private Aravive’s lead asset, AVB-S6-500 and, as such, the acquisition is treated as an asset acquisition. The net tangible and intangible assets acquired and liabilities assumed in connection with the transaction were recorded based on their relative fair values allocation as of October 12, 2018 and the value associated with in-process research and development will be expensed as it was determined to have no alternative future use the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed, were as follows. Amount (in thousands) Consideration Common stock issued - 5,141,915 shares issued at $7.26 per share $ 37,331 Transaction costs 2,076 Total consideration $ 39,407 Assets acquired and liabilities assumed Cash $ 5,277 In-process research and development 38,313 Assembled workforce 366 Deferred revenue (1,517 ) Contingent payable (264 ) Other assets and liabilities (2,768 ) Total net assets acquired $ 39,407 Corporate Name Change On October 15, 2018, the Company changed its name to “Aravive, Inc.” from Versartis, Inc. Shares of Company Common Stock were previously listed on the Nasdaq Global Select Market under the symbol “VSAR.” The Company filed with The Nasdaq Stock Market, LLC (“Nasdaq”) a notification form for the listing of additional shares with respect to the shares of Company Common Stock to be issued to the holders of Aravive Biologics, Inc. capital stock in the Merger so that these shares are listed on Nasdaq. The Company Common Stock began trading on the Nasdaq Global Select Market under the symbol “ARAV” on October 16, 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of the accompanying consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The accompanying consolidated financial statements are consolidated for the years ended December 31, 2018 and 2017 and include the accounts of Aravive, Inc. and its wholly-owned subsidiaries, Versartis Cayman Holdings Company, incorporated in 2014, Versartis GmbH, incorporated in 2015 and Private Aravive, incorporated in 2007, which was not included as a subsidiary in 2017. After 2015, the Cayman and GmbH subsidiaries became dormant. All intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all of the Company's subsidiaries and consolidated operations. Liquidity and Capital Resources Since inception, the Company has incurred net losses and negative cash flows from operations. At December 31, 2018, the Company had an accumulated deficit of $450.6 million and working capital of $56.1 million. Since inception, the Company has incurred net losses and negative cash flows from operations. The Company expects to continue to incur losses from costs related to the development of AVB-S6-500 and related administrative activities for the foreseeable future. As of December 31, 2018, the Company had a cash and cash equivalents balance of $57.0 million consisting of cash and investments in highly liquid U.S. money market funds. While the Company believes that its existing cash and cash equivalents will be sufficient to sustain operations for at least the next 12 months from the issuance of these financial statements, based on its current business plan, the Company will need to obtain additional financing to advance our clinical development program to later stages of development and commercialize our clinical product candidate. Although management has been successful in raising capital in the past, including $59.1 million in October and November 2016, there can be no assurance that the Company will be successful or that any needed financing will be available in the future at terms acceptable to the Company. Correction of Quarterly Information During the fourth quarter ended December 31, 2018, the Company determined that the amount related to the inducement on build-to-suit lease obligation as reflected within one line in the investing activities section of the unaudited consolidated statement of cash flows for the three-, six-, and nine-month periods ended March 31, 2018, June 30, 2018, and September 30, 2018, respectively, filed on Form 10-Q, should have been classified as cash flows provided from financing activities. There is no impact to the consolidated statements of operations and comprehensive loss or consolidated balance sheets for any of these periods. The Company evaluated the effect of this misclassification and concluded it was not material to any of its previously issued unaudited consolidated financial statements. Upon revision, cash flows from investing activities for the three-, six-, and nine-month periods ended March 31, 2018, June 30, 2018, and September 30, 2018, decreased by $1.5 million, $1.9 million, and $1.9 million, respectively and cash flows from financing activities for the respective periods increased by $1.5 million, $1.9 million, and $1.9 million, respectively. This adjustment had no impact to the Company’s financial position, results of operations or cash flows as of and for the year ended December 31, 2018. |
Segments | Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. |
Concentration of Credit Risk | Concentration of c r Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. All of the Company’s cash and cash equivalents are held at several financial institutions that management believes are of high credit quality. Such deposits may exceed federally insured limits. During 2017, the Company entered into forward foreign currency contracts that exposed it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company does, however, seek to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties. |
Derivative Financial Instruments | Derivative Financial Instruments The Company engages in transactions denominated in foreign currencies and, as a result, is exposed to changes in foreign currency exchange rates. To manage the volatility resulting from fluctuating foreign currency exchange rates, the Company has in the past entered into option and forward foreign currency exchange contracts. The Company accounts for its derivative instruments as either assets or liabilities on the balance sheet and measures them at fair value. The Company assesses, both at inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting the changes in cash flows of the hedged items. If the Company determines that a forecasted transaction is no longer probable of occurring, it discontinues hedge accounting for the affected portion of the hedge instrument, and any related unrealized gain or loss on the contract is recognized in other comprehensive income (expense). |
Risks and Uncertainties | Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of the Company’s products, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. Products developed by the Company require clearances from the U.S. Food and Drug Administration (“FDA”), the Pharmaceuticals Medicines and Devices Agency (“PMDA”), or other international regulatory agencies prior to commercial sales. There can be no assurance that the products will receive the necessary clearances. If the Company was denied clearance, clearance was delayed or the Company was unable to maintain clearance, it could have a material adverse impact on the Company. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to launch and commercialize any product candidates for which it receives regulatory approval. |
Cash and Cash Equivalents, Restricted Cash | Cash and c e The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At December 31, 2018 and 2017 the Company’s cash and cash equivalents were held in multiple institutions with the United States and Europe and included deposits in money market funds which were unrestricted as to withdrawal or use. Restricted cash consists of a letter of credit to secure the Company’s obligations under the build-to-suit lease. |
Property and Equipment, Net | Property and e Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally between three and five years. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or the term of the lease. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected in operations in the period realized. |
Build-to-Suit Lease | Build-to-Suit Lease In the Company’s recent lease arrangement (as described in Note 7), the Company was involved in the construction of the building. To the extent the Company is involved with the structural improvements of the construction project or takes construction risk prior to the commencement of a lease, accounting guidance requires the Company to be considered the owner for accounting purposes of these types of projects during the construction period. Therefore, the Company records an asset in property and equipment on the consolidated balance sheet for the replacement cost of the Company’s leased portion of the pre-existing building. The Company records a corresponding build-to-suit lease obligation on its consolidated balance sheets representing the amounts paid by the lessor. Upon completion of construction, the Company considered the requirements for sale-leaseback accounting treatment, including evaluating whether all risks of ownership have been transferred back to the landlord, as evidenced by a lack of continuing involvement in the leased property. The Company’s assessment of the arrangement did not qualify for sale-leaseback accounting treatment; therefore the building asset remains on the Company’s consolidated balance sheets at its historical cost, and such asset is depreciated over its estimated useful life. The initial recording of these assets and liabilities is classified as non-cash investing and financing items, respectively, for purposes of the consolidated statements of cash flows. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by the comparison of the carrying amount to the future net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value (i.e. determined through estimating projected discounted future net cash flows or other acceptable methods of determining fair value) arising from the asset. There have been no such impairments of long-lived assets during the years ended December 31, 2018 and 2017. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these items. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level I Unadjusted quoted prices in active markets for identical assets or liabilities; Level II Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level III Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level I assets as of December 31, 2018 and 2017. Level I securities are comprised of highly liquid money market funds. |
Preclinical and Clinical Trial Accruals | Preclinical and Clinical Trial Accruals The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations (“CROs”) that conduct and manage clinical trials on the Company’s behalf. The Company estimates preclinical and clinical trial expenses based on the services performed, pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. |
Research and Development | Research and d Research and development costs are charged to operations as incurred. Research and development costs include, but are not limited to, payroll and personnel expenses, laboratory supplies, consulting costs, external research and development expenses and allocated overhead, including rent, equipment depreciation, and utilities. Costs to acquire technologies to be used in research and development that have not reached technological feasibility and have no alternative future use are expensed to research and development costs when incurred. |
Income Taxes | Income t The Company accounts for income taxes under the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The provision for income taxes includes income taxes paid or payable for the current year plus the change in deferred taxes during the year. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. |
Stock-Based Compensation | Stock-Based c For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the nonemployee. |
Consolidated Statement of Operations and Comprehensive Loss | Consolidated Statement of Operations and Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. Specifically, the Company includes cumulative foreign currency translation adjustments and net unrealized gains and losses on effective cash flow hedges. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, stock options and restricted stock units are considered to be potentially dilutive securities. Because the Company has reported a net loss for the years ended December 31, 2018 and 2017, diluted net loss per common share is the same as basic net loss per common share for those periods. |
In-process Research & Development | In-process Research & Development I n-process research and development, or IPR&D, was recorded at its relative fair value using a discounted cash flow model and was assigned to acquired research and development assets that were not fully developed as of the completion of the Merger. IPR&D acquired in an asset purchase is capitalized on the Company’s balance sheet at its acquisition-date fair value if the acquired IPR&D has alternative future use. For the IPR&D that was acquired from the Merger it was determined that the IPR&D had no alternative future use and therefore it was expensed immediately following the Merger. Fair value measurement was classified as Level 3 under the fair value hierarchy. |
Intangible Assets | Intangible Asset Intangible assets consist of an assembled workforce which was acquired as part of the Merger. Intangible assets with definite lives are amortized based on their pattern of economic benefit over their estimated useful lives and reviewed periodically for impairment. The estimated useful life of the assembled workforce is 3 years. |
Revenue Recognition | Revenue Recognition The Company’s sole source of revenue for 2018 was grant revenue related to the CPRIT contract, which is being accounted for under ASC 606. ASC 606 introduces a new framework for analyzing potential revenue transactions by identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when (or as) the Company satisfies a performance obligation. The performance obligations of the Contract include developing AVB-S6-500 for use in cancer patients through research and development efforts and a noncommercial license from CPRIT. Management has concluded that the license and R&D services should be combined into a single performance obligation as both are highly interdependent - a license cannot be effectively granted without the corresponding research basis and CPRIT cannot benefit from the license without the R&D services and are therefore not capable of being distinct. As of the Merger date, Private Aravive had received $15.4 million from the CPRIT grant. Aravive received $2.6 million in February 2019, subsequent to December 31, 2018. Funds received are reflected in deferred revenue as a liability until revenue is earned. Grant revenue is recognized when qualifying costs are incurred. As of December 31, 2018, the Company had deferred revenue of $0.1 million. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective is not expected to have a material impact on the Company’s financial position or results of operations upon adoption. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting . This amendment provides additional guidance related to share-based payment transactions for acquiring goods or services from nonemployees. The guidance will be effective for the Company for fiscal years beginning after December 15, 2018, including the interim periods within that fiscal year. The Company has not yet adopted this new guidance and does not expect it to have a material impact on the Company’s consolidated financial statements when the new standard is implemented. Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made In May 2017, the FASB issued, ASU-2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . This guidance clarifies when changes to the terms and conditions of share-based awards must be accounted for as modifications. The guidance does not change the accounting treatment for modifications. The guidance, which became effective on January 1, 2018, has not had a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued, ASU-2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business. In November 2016, the FASB issued, ASU-2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash As of December 31, 2018 December 31, 2017 Consolidated Balance Sheets Cash and cash equivalents $ 56,992 $ 81,146 Restricted cash 2,396 2,383 Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows $ 59,388 $ 83,529 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), Targeted Improvements The Company elected to adopt the standard on January 1, 2019 using the alternative transition method provided by ASU 2018-11 whereby the Company will record right-of-use (“ROU”) assets and lease liabilities for its existing leases as of January 1, 2019, as well as a cumulative-effect adjustment to retained earnings of initially applying the new standard as of January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the practical expedients to not reassess its prior conclusions about lease identification under the new standard, to not reassess lease classification, and to not reassess initial direct costs. The Company will not elect the practical expedient allowing the use-of-hindsight which would require the Company to reassess the lease term of its leases based on all facts and circumstances through the effective date. In May 2014, the FASB issued a new accounting standard that amends the guidance for the recognition of revenue from contracts with customers to transfer goods and services. The FASB has subsequently issued additional, clarifying standards to address issues arising from implementation of the new revenue recognition standard. The new revenue recognition standard and clarifying standards are effective for interim and annual periods beginning on January 1, 2018, and may be adopted earlier, but not before January 1, 2017. The revenue standards are required to be adopted by taking either a full retrospective approach or a modified retrospective approach. The Company has adopted the new revenue standard as of January 1, 2018 using a modified retrospective application to each prior reporting period presented. Through January 1, 2018 the Company had no open contracts and previously recorded a total of $40.0 million of contract revenues at December 31, 2017 received from Teijin Limited under an exclusive license and supply agreement which was considered substantially complete as of December 31, 2017. The adoption did not have an effect on the Company’s consolidated financial statements on the adoption date and no adjustment to retained earnings as of January 1, 2018 was required. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of Captions in Consolidated Balance Sheet to Consolidated Statements of Cash Flows | The following is a reconciliation of the captions in the consolidated balance sheet to the consolidated statements of cash flows (in thousands): As of December 31, 2018 December 31, 2017 Consolidated Balance Sheets Cash and cash equivalents $ 56,992 $ 81,146 Restricted cash 2,396 2,383 Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows $ 59,388 $ 83,529 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets (in thousands) December 31, 2018 2017 Preclinical and clinical $ 416 $ 261 Lease receivable 606 — Other 16 301 Total $ 1,038 $ 562 |
Property and Equipment, Net | Property and equipment, net (in thousands) December 31, 2018 2017 Equipment and furniture $ 1,442 $ 1,409 Buildings, leasehold and building improvements 134 134 1,576 1,543 Less: Accumulated depreciation and amortization (1,544 ) (745 ) Property and equipment, net $ 32 $ 798 |
Intangible Asset, Net | Intangible asset, net (in thousands) December 31, 2018 2017 Assembled workforce $ 366 $ — 366 — Less: Accumulated amortization (25 ) — Intangible asset, net $ 341 $ — |
Build-to-Suit Lease Asset, Net | Build-to-suit lease asset, net (in thousands) December 31, 2018 2017 Build-to-suit lease asset $ 8,986 $ 8,986 8,986 8,986 Less: Accumulated depreciation and amortization (335 ) (98 ) Build-to-suit lease asset, net $ 8,651 $ 8,888 |
Accrued Liabilities | Accrued liabilities (in thousands) December 31, 2018 2017 Payroll and related $ 509 $ 2,058 Preclinical and clinical 563 1,694 Professional services — 204 Other 293 137 Total $ 1,365 $ 4,093 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Fair Value Measurements at December 31, 2018 Total Level 1 Assets Money market funds $ 48,389 $ 48,389 Fair Value Measurements at December 31, 2017 Total Level 1 Assets Money market funds $ 62,428 $ 62,428 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Financial Statements | The following table summarizes the effect of our foreign currency exchange contracts on the Company’s consolidated financial statements (in thousands): As of December 31, 2018 2017 Derivatives designated as hedges: Gains (losses) reclassified from accumulated OCI into operating expenses (effective portion) $ — $ (350 ) |
Build-to-Suit Lease (Tables)
Build-to-Suit Lease (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases Operating [Abstract] | |
Schedule of Future Sublease Income Term | Future base rent and additional rent EVA shall pay to the Company over the sublease term as of December 31, 2018, are as follows (in thousands): Year Ending December 31, 2019 $ 2,068 2020 2,479 2021 2,544 2022 2,611 2023 2,680 Thereafter 2,284 $ 14,666 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Payments Under Company's Lease Obligation | Future minimum payments under the Company’s lease obligations as of December 31, 2018, are as follows (in thousands): Year Ending December 31, 2019 $ 3,048 2020 2,980 2021 2,930 2022 3,009 2023 3,089 Thereafter 2,364 $ 17,420 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Summary of Reserved Shares of Common Stock for Future Issuances | The Company had reserved shares of common stock for future issuances as follows: December 31, 2018 2017 Issuance of equity based awards under stock plan 1,201,581 — Issuance upon exercise of options under stock plan 1,515,923 607,511 Issuance of restricted stock units under stock plan 117,597 419,163 Total 2,835,101 1,026,674 |
Stock Based Awards (Tables)
Stock Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | Activity under the Company’s stock option plans is set forth below: Weighted Average Weighted Remaining Aggregate Shares Average Contractual Intrinsic Available Number of Exercise Life Value for Grant Shares Price (in years) (in thousands) Balances, January 1, 2017 174,019 742,052 $ 66.96 Additional shares authorized 261,329 — — Options granted (227,450 ) 227,450 95.50 Restricted stock units granted (428,056 ) — — Options exercised — (141,833 ) 17.62 Options cancelled 220,158 (220,158 ) 87.90 Balances, December 31, 2017 — 607,511 81.60 Additional shares authorized 269,535 — — Assumption of option plans associated with the merger 660,151 1,183,950 0.44 Options granted — — — Restricted stock units granted — — — Options exercised — (3,643 ) 9.66 Options cancelled 271,895 (271,895 ) 80.09 Balances, December 31, 2018 1,201,581 1,515,923 $ 18.65 6.5 $ 3,650 Vested and expected to vest as of December 31, 2018 1,514,245 $ 18.58 6.5 $ 3,650 Exercisable as of December 31, 2018 1,469,854 $ 16.76 6.5 $ 3,650 |
Stock Options Outstanding and Exercisable under Stock Option Plans | The following table summarizes information with respect to stock options outstanding and currently exercisable and vested as of December 31, 2018: Options Exercisable Options Outstanding and Vested Weighted Average Weighted Average Remaining Remaining Range of Number Contractual Number Contractual Exercise Prices Outstanding Life (in Years) Outstanding Life (in Years) $0.06-$0.06 86,867 2.5 86,867 2.5 $0.24-$0.24 621,098 6.4 621,098 6.4 $0.66-$0.90 475,985 8.5 475,985 8.5 $7.59-$126.00 312,679 5.1 266,644 5.1 $127.80-$191.76 19,294 3.8 19,260 3.8 1,515,923 1,469,854 |
Summary of Fair Value of Employee Stock Options | The fair value of employee stock options was estimated using the Black-Scholes model with the following weighted-average assumptions Year Ended December 31, 2018 2017 Expected volatility 132.0 % 78.0 % Risk-free interest rate 3.0 % 2.1 % Dividend yield 0.0 % 0.0 % Expected life (in years) 3.3 6.2 |
Schedule of Estimated Stock-Based Compensation Expense | Stock-based compensation expense, net of estimated forfeitures, is reflected in the statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2018 2017 Operating Expenses Research and development $ 2,946 $ 4,549 General and administrative 13,193 8,800 Total $ 16,139 $ 13,349 |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity is presented in the following tables: Weighted Average Number of Grant Date Shares Fair Value Restricted Stock Units Unvested at December 31, 2017 419,163 $ 32.56 Granted — — Vested (128,136 ) 35.60 Forfeited/canceled (173,430 ) 31.12 Unvested at December 31, 2018 117,597 $ 31.37 |
Comprehensive Loss (Tables)
Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Summary of Amounts Reclassified out of Accumulated Other Comprehensive Loss | The following table summarizes amounts reclassified out of Accumulated Other Comprehensive Loss (AOCI) and their effect on the Company’s consolidated statements of operations for the year ended December 31, 2017. There was no comprehensive income items for the year ended December 31, 2018 (in thousands). Unrealized Gains and Losses on Cash Flow Hedges Total Balance at December 31, 2016 $ (350 ) $ (350 ) Amounts reclassified out of other comprehensive loss 350 350 Net current period other comprehensive loss 350 350 Balance at December 31, 2017 $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Federal Income Taxes | The provision (benefit) for federal income taxes in 2018 and 2017 is as follows (in thousands): December 31, 2018 2017 Current Federal $ — $ (247 ) State — — — (247 ) Deferred Federal $ — $ — State — — Total deferred tax expense — — Total income tax expense $ — $ (247 ) |
Schedule of Income (Loss) Before Income Taxes Attributed to Geographic Locations | December 31, 2018 2017 United States $ (76,256 ) $ (125,093 ) Foreign (77 ) 39,867 Net loss before provision for income taxes $ (76,333 ) $ (85,226 ) |
Summary of Statutory Federal Tax Rate to Income or Loss before Taxes | Income tax expense (benefit) in 2018 and 2017 differed from the amount expected by applying the statutory federal tax rate to the income or loss before taxes as summarized below: December 31, 2018 2017 Federal tax benefit at statutory rate 21 % 34 % Change in valuation allowance 99 % (7 )% Research and development credits — 16 % Section 382 limitation (109 )% — Other non-deductible expenses (11 )% (3 )% Change in rate differential — (38 )% Build-to-suit adjustments — (2 )% Total 0 % 0 % |
Significant Components of Net Deferred Tax Assets | Significant components of the Company’s net deferred tax assets at December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 2017 Net operating loss carry forwards $ 2,335 $ 69,281 Research and development tax credits 168 34,891 Stock based compensation and other 8,567 5,693 Total deferred tax assets 11,070 109,865 Less: Valuation allowance (10,336 ) (108,782 ) Deferred tax liabilities (734 ) (1,083 ) Net deferred tax assets $ — $ — |
Reconciliation of Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Amount Balance at January 1, 2017 $ 10,116 Gross increase/ (decrease) related to prior year tax positions 1 (7,776 ) Gross increase related to current year positions 1,594 Reductions to unrecognized tax benefits related to lapsing statute of limitations — Balance at December 31, 2017 $ 3,934 Gross increase/ (decrease) related to prior year tax positions (3,934 ) Gross increase related to current year positions 72 Reductions to unrecognized tax benefits related to lapsing statute of limitations — Balance at December 31, 2018 $ 72 1 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss Per Share | The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company (in thousands, except per share data): December 31, 2018 2017 Net loss attributable to common stockholders- basic and diluted $ (76,333 ) $ (84,979 ) Net loss per share- basic and diluted $ (10.64 ) $ (14.47 ) Weighted-average common shares used to compute net loss per share- basic and diluted 7,171 5,871 |
Summary of Potentially Anti-dilutive Securities Excluded from Computation of Diluted Shares Outstanding | The following potentially dilutive securities outstanding at the end of the years presented have been excluded from the computation of diluted shares outstanding: December 31, 2018 2017 Options to purchase common stock 1,515,923 607,511 Restricted stock units 117,597 419,163 |
Merger with Aravive Biologics_2
Merger with Aravive Biologics, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Estimate Purchase Price Fair Value Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed | The estimate of the purchase price for the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed, were as follows. Amount (in thousands) Consideration Common stock issued - 5,141,915 shares issued at $7.26 per share $ 37,331 Transaction costs 2,076 Total consideration $ 39,407 Assets acquired and liabilities assumed Cash $ 5,277 In-process research and development 38,313 Assembled workforce 366 Deferred revenue (1,517 ) Contingent payable (264 ) Other assets and liabilities (2,768 ) Total net assets acquired $ 39,407 |
Formation and Business of the_2
Formation and Business of the Company - Additional Information (Detail) - USD ($) | Oct. 16, 2018 | Jun. 01, 2016 | Jul. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Grant [Line Items] | |||||
Revenue from product development award | $ 1,371,000 | $ 40,000,000 | |||
Common Stock [Member] | |||||
Grant [Line Items] | |||||
Reverse stock split ratio | 1-for-6 | ||||
Cancer Prevention & Research Institute of Texas [Member] | |||||
Grant [Line Items] | |||||
Revenue from product development award | $ 20,000,000 | ||||
Grant termination date | May 31, 2019 | ||||
Percentage of cash required to raise in matching funds | 50.00% | ||||
Cash required to raise in matching funds | $ 10,000,000 | ||||
Term of project during which cash required to raise in matching funds | 3 years | ||||
Cash required in matching funds raised | $ 10,000,000 | ||||
Percentage of grant award proceeds required to pay | 400.00% | ||||
Cancer Prevention & Research Institute of Texas [Member] | Maximum [Member] | |||||
Grant [Line Items] | |||||
Percentage of grant award proceeds required to pay thereafter until government exclusivity maintained | 1.00% | ||||
Stanford University [Member] | Maximum [Member] | |||||
Grant [Line Items] | |||||
Milestone payments upon achievement of clinical and regulatory milestones | $ 1,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Oct. 12, 2018USD ($) | Feb. 28, 2019USD ($) | Jul. 31, 2016USD ($) | Nov. 30, 2016USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | |||||||||
Accumulated deficit | $ (450,565,000) | $ (374,232,000) | |||||||
Working capital | 56,100,000 | ||||||||
Cash and cash equivalents | 56,992,000 | 81,146,000 | |||||||
Proceeds from issuance of common stock in follow-on offering, net of issuance costs | $ 59,100,000 | $ 52,000 | 2,968,000 | ||||||
Decreased in investing activities | $ 1,500,000 | $ 1,900,000 | $ 1,900,000 | ||||||
Increased in financing activities | $ 1,500,000 | $ 1,900,000 | $ 1,900,000 | ||||||
Number of operating segment | Segment | 1 | ||||||||
Cash and cash equivalents, restricted cash maturity period | Three months or less | ||||||||
Impairments of long-lived assets | $ 0 | 0 | |||||||
Estimated useful life of intangible assets | 2 years 6 months | ||||||||
Revenue from product development award | $ 1,371,000 | 40,000,000 | |||||||
Reclassification of Restricted Cash to Cash and Cash Equivalents [Member] | ASU-2016-18 [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Reclassification of restricted cash | 2,400,000 | ||||||||
Cancer Prevention & Research Institute of Texas [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Revenue from product development award | $ 20,000,000 | ||||||||
Teijin Limited [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Contract revenues received | $ 40,000,000 | ||||||||
Grant Revenue [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Revenue from product development award | 1,371,000 | ||||||||
Grant Revenue [Member] | Cancer Prevention & Research Institute of Texas [Member] | Aravive Biologics [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Revenue from product development award | $ 15,400,000 | ||||||||
Deferred Revenue | $ 100,000 | ||||||||
Grant Revenue [Member] | Cancer Prevention & Research Institute of Texas [Member] | Aravive Biologics [Member] | Subsequent Event [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Revenue from product development award | $ 2,600,000 | ||||||||
Assembled Workforce [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life of intangible assets | 3 years | ||||||||
Minimum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property and equipment estimated useful lives | 3 years | ||||||||
Maximum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property and equipment estimated useful lives | 5 years | ||||||||
Percentage for the amount of benefit realized upon ultimate settlement | 50.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of the Captions in the Consolidated Balance Sheet to the Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 56,992 | $ 81,146 | |
Restricted cash | 2,396 | 2,383 | |
Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows | $ 59,388 | $ 83,529 | $ 201,153 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expense And Other Assets [Abstract] | ||
Preclinical and clinical | $ 416 | $ 261 |
Lease receivable | 606 | |
Other | 16 | 301 |
Total | $ 1,038 | $ 562 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,576 | $ 1,543 |
Less: Accumulated depreciation and amortization | (1,544) | (745) |
Property and equipment, net | 32 | 798 |
Equipment and Furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,442 | 1,409 |
Buildings, Leasehold and Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 134 | $ 134 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Depreciation expense | $ 1.1 | $ 0.3 |
Amortization expense | $ 0.1 | |
Intangible asset useful life | 2 years 6 months |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets, net (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Finite Lived Intangible Assets [Line Items] | |
Intangible asset, net | $ 341 |
Assembled Workforce [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Intangible asset, gross | 366 |
Less: Accumulated amortization | (25) |
Intangible asset, net | $ 341 |
Balance Sheet Components - Buil
Balance Sheet Components - Build-to-Suit Lease Asset, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Build To Suit Lease Assets [Abstract] | ||
Build-to-suit lease asset | $ 8,986 | $ 8,986 |
Less: Accumulated depreciation and amortization | (335) | (98) |
Build-to-suit lease asset, net | $ 8,651 | $ 8,888 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | |||
Payroll and related | $ 509 | $ 2,058 | |
Preclinical and clinical | 563 | 1,694 | |
Professional services | 204 | ||
Other | 293 | 137 | |
Total | $ 1,365 | $ 4,093 | $ 4,093 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - Money market funds [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 48,389 | $ 62,428 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 48,389 | $ 62,428 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Transfers within the hierarchy | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income (Expense) [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gain (loss) on discontinuance of cash flow hedges | $ 0 | $ 0 |
Maximum [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative instruments maturity term | 12 months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Financial Statements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Derivatives designated as hedges: | |
Gains (losses) reclassified from accumulated OCI into operating expenses (effective portion) | $ (350) |
Teijin Agreement - Additional I
Teijin Agreement - Additional Information (Detail) - License and Supply Agreement [Member] - USD ($) | 1 Months Ended | 14 Months Ended | ||
Jan. 31, 2018 | Aug. 31, 2016 | Sep. 30, 2017 | Dec. 31, 2018 | |
Teijin Limited [Member] | ||||
Revenue Recognition Milestone Method [Line Items] | ||||
Payments received under license and supply agreement | $ 40,000,000 | $ 40,000,000 | ||
Potential to receive development milestone | 35,000,000 | |||
Agreement effective termination date | Jan. 31, 2018 | |||
Potential to receive development, regulatory and sales milestone payments before termination | $ 125,000,000 | |||
Maximum [Member] | ||||
Revenue Recognition Milestone Method [Line Items] | ||||
Costs associated with additional trials | 5,000,000 | |||
Maximum [Member] | Teijin Limited [Member] | ||||
Revenue Recognition Milestone Method [Line Items] | ||||
Potential to receive regulatory milestone | 55,000,000 | |||
Potential to receive sales milestone | $ 35,000,000 |
Build-to-Suit Lease - Additiona
Build-to-Suit Lease - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 01, 2018USD ($) | Mar. 31, 2017USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating Leased Assets [Line Items] | |||||
Operating lease payments | $ 17,420 | $ 17,420 | |||
Option to extend, existence, operating facility lease | true | ||||
Property and equipment, net | 32 | 32 | $ 798 | ||
Build-to-suit obligation | 7,324 | 7,324 | $ 5,428 | ||
Build-to-suit related to construction costs incurred | 3,500 | ||||
Assets Held under Operating Leases [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Property and equipment, net | 8,900 | 8,900 | |||
1020 Marsh Road, Menlo Park, California [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating facility lease area | ft² | 34,500 | ||||
Operating facility lease term | 86 months | ||||
Lease agreement, additional extended lease term | 5 years | ||||
Tenant improvement allowance | $ 1,900 | ||||
Letter of credit to secure lease obligations | 2,400 | ||||
Operating lease payments | $ 20,000 | 17,000 | $ 17,000 | ||
Lease commencement date | August 2017 | ||||
1020 Marsh Road, Menlo Park, California [Member] | Sublease Agreement [Member] | EVA Automation, Inc [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating facility lease term | 72 months | ||||
Lease commencement date | October 1, 2018 | ||||
Abatement of base rent lease payment | $ 900 | ||||
Operating lease abatement term | 5 months | ||||
Operating lease payments receivable | $ 600 | ||||
1060 Marsh Road [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating facility lease area | ft² | 17,400 |
Build-to-Suit Lease - Schedule
Build-to-Suit Lease - Schedule of Future Sublease Income Term (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases Operating [Abstract] | |
2019 | $ 2,068 |
2020 | 2,479 |
2021 | 2,544 |
2022 | 2,611 |
2023 | 2,680 |
Thereafter | 2,284 |
Total | $ 14,666 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2018USD ($)ft² | Mar. 31, 2017USD ($)ft²Lease | Dec. 31, 2015ft² | Mar. 31, 2014ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||||
Number of lease renewal option | Lease | 1 | |||||
Operating lease payments | $ 17,420,000 | |||||
Rent expense | 300,000 | $ 1,500,000 | ||||
Other potential commitments | 10,000,000 | 10,000,000 | ||||
Pending or threatened legal proceedings | $ 0 | |||||
Percentag of contingent cash payment with remainder on future milestone payments | 7.50% | |||||
Contingent Payable | $ 264,000 | |||||
Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitment to make development and sales-related milestone payments | $ 30,000,000 | $ 30,000,000 | ||||
Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Proceeds from future licensing transaction percentage | 10.00% | |||||
Menlo Park, California [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Operating facility lease area | ft² | 12,900 | |||||
Operating facility lease term | 39 months | |||||
Lease expiration end date | 2017-08 | |||||
Menlo Park, California [Member] | Sublease Agreement [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Operating facility lease area | ft² | 10,900 | |||||
Operating facility lease term | 24 months | |||||
Lease expiration end date | 2017-12 | |||||
1020 Marsh Road, Menlo Park, California [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Operating facility lease area | ft² | 34,500 | |||||
Operating facility lease term | 86 months | |||||
Lease commencement date | August 2017 | |||||
Lease agreement, one renewal option term | 5 years | |||||
Operating lease payments | $ 20,000,000 | $ 17,000,000 | ||||
2479 E. Bayshore Blvd, Palo Alto, California [Member] | Sublease Agreement [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Operating facility lease area | ft² | 4,240 | |||||
Lease commencement date | October 2018 | |||||
Lease expires date | Aug. 31, 2020 | |||||
Sublease payment receivable | $ 300,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Payments Under Company's Lease Obligation (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 3,048 |
2020 | 2,980 |
2021 | 2,930 |
2022 | 3,009 |
2023 | 3,089 |
Thereafter | 2,364 |
Total, Future minimum payments | $ 17,420 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) | Oct. 16, 2018 | Dec. 31, 2018USD ($)shares | Dec. 31, 2017shares |
Class Of Stock [Line Items] | |||
Common stock, shares authorized | shares | 100,000,000 | 100,000,000 | |
Voting power per share | One | ||
Common stock, dividends declared | $ | $ 0 | ||
Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Reverse stock split ratio | 1-for-6 | ||
Conversion ratio | 0.01667 |
Common Stock - Summary of Reser
Common Stock - Summary of Reserved Shares of Common Stock for Future Issuances (Detail) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Class Of Stock [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 2,835,101 | 1,026,674 |
Stock Compensation Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 1,201,581 | |
Options to purchase common stock [Member] | ||
Class Of Stock [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 1,515,923 | 607,511 |
Restricted stock units [Member] | ||
Class Of Stock [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 117,597 | 419,163 |
Stock Based Awards - Additional
Stock Based Awards - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2009 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 12, 2018 | Mar. 31, 2014 | Mar. 20, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares reserved | 2,835,101 | 1,026,674 | ||||
Intrinsic value of stock option exercised | $ 0 | $ 11,500,000 | ||||
Stock options granted | 227,450 | |||||
Additional shares issued | 269,535 | 261,329 | ||||
Common stock, voting rights | One | |||||
Recognized compensation expense | $ 16,139,000 | $ 13,349,000 | ||||
Restricted stock unit remaining weighted average period | 6 years 6 months | |||||
Employee Stock Option [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options vesting period | 4 years | |||||
Stock options, weighted-average grant date fair value | $ 11.10 | |||||
Tax benefits realized from options and other share-based payment arrangements | $ 0 | |||||
Weighted-average remaining vesting period | 1 year 4 months 24 days | |||||
Unrecognized employee stock-based compensation | $ 2,200,000 | |||||
Employee Stock Option [Member] | Employee [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock options granted | 0 | |||||
Restricted stock units [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Recognized compensation expense | $ 3,200,000 | $ 3,500,000 | ||||
Approximate compensation expenses | $ 2,600,000 | |||||
Restricted stock unit remaining weighted average period | 2 years | |||||
2009 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options vesting period | 4 years | |||||
Options vested , description | options granted generally vest over four years and vest at a rate of 25% upon the first anniversary of the issuance date and 1/36th per month thereafter | |||||
2014 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options vesting period | 4 years | |||||
Options expiration period | 10 years | |||||
Options vested , description | Options granted under the 2014 Plan have a contractual life of ten years and generally vest over four years and vest at a rate of 25% upon the first anniversary of the issuance date and 1/36th per month thereafter. | |||||
Number of shares reserved | 700,000 | |||||
Percentage of common stock issued and outstanding increase annually | 4.50% | |||||
End date of automatic annual increase of shares reserved for issuance | Jan. 1, 2024 | |||||
2014 Plan [Member] | Incentive Stock Option [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares reserved | 2,000,000 | |||||
2010 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options vesting period | 3 years | |||||
Options expiration period | 10 years | |||||
Options vested , description | Options granted to employees and consultants under the Plan generally vest 25% after one year of service, and ratably on a monthly basis over the following three years. Options expire ten years from the date of grant. | |||||
Number of shares reserved | 600,000 | |||||
Employee service term for options granted | 1 year | |||||
2017 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options vesting period | 3 years | |||||
Options expiration period | 10 years | |||||
Options vested , description | Options granted to employees and consultants under the Plan generally vest 25% after one year of service, and ratably on a monthly basis over the following three years. Options expire ten years from the date of grant | |||||
Number of shares reserved | 461,000 | |||||
Employee service term for options granted | 1 year | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares reserved | 25,000 | |||||
Percentage of common stock issued and outstanding increase annually | 1.00% | |||||
End date of automatic annual increase of shares reserved for issuance | Jan. 1, 2024 | |||||
Additional shares issued | 50,000 | |||||
Common stock, voting rights | Immediately after the grant would own stock possessing 5% or more of the total combined voting power or value of our common stock. | |||||
Percentage of stock possessing | 5.00% | |||||
Rights to purchase stock that remains outstanding | $ 25,000 | |||||
Offerings of purchase periods | 27 months | |||||
Maximum employee subscription rate | 15.00% | |||||
Maximum [Member] | 2009 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options expiration period | 10 years | |||||
Minimum [Member] | 2009 Plan [Member] | Incentive Stock Option [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Price of options granted, percentage | 100.00% | |||||
Minimum [Member] | 2009 Plan [Member] | 10% Shareholders [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Price of options granted, percentage | 110.00% | |||||
Minimum [Member] | 2014 Plan [Member] | Incentive Stock Option [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Price of options granted, percentage | 100.00% | |||||
Minimum [Member] | Employee Stock Purchase Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Price of options granted, percentage | 85.00% |
Stock Based Awards - Summary of
Stock Based Awards - Summary of Stock Options Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares Available for Grant | ||
Shares Available for Grant, Beginning balance | 174,019 | |
Shares Available for Grant, Additional shares authorized | 269,535 | 261,329 |
Shares Available for Grant, Assumption of option plans associated with the merger | 660,151 | |
Shares Available for Grant, Options granted | (227,450) | |
Shares Available for Grant, Restricted stock units granted | (428,056) | |
Shares Available for Grant, Options cancelled | 271,895 | 220,158 |
Shares Available for Grant, Ending balance | 1,201,581 | |
Number of shares | ||
Number of Shares, Beginning balance | 607,511 | 742,052 |
Number of Shares, Assumption of option plans associated with the merger | 1,183,950 | |
Number of Shares, Options granted | 227,450 | |
Number of Shares, Options exercised | (3,643) | (141,833) |
Number of Shares, Options cancelled | (271,895) | (220,158) |
Number of Shares, Ending balance | 1,515,923 | 607,511 |
Number of Shares, Vested and expected to vest | 1,514,245 | |
Number of Shares, Exercisable | 1,469,854 | |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Beginning balance | $ 81.60 | $ 66.96 |
Weighted Average Exercise Price, Assumption of option plans associated with the merger | 0.44 | |
Weighted Average Exercise Price, Options granted | 95.50 | |
Weighted Average Exercise Price, Options exercised | 9.66 | 17.62 |
Weighted Average Exercise Price, Options cancelled | 80.09 | 87.90 |
Weighted Average Exercise Price, Ending balance | 18.65 | $ 81.60 |
Weighted Average Exercise Price, Vested and expected to vest | 18.58 | |
Weighted Average Exercise Price, Exercisable | $ 16.76 | |
Weighted Average Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Life (in years) | 6 years 6 months | |
Weighted Average Remaining Contractual Life, Vested and expected to vest | 6 years 6 months | |
Weighted Average Remaining Contractual Life, Exercisable | 6 years 6 months | |
Aggregate Intrinsic Value, Options outstanding | $ 3,650 | |
Aggregate Intrinsic Value, Vested and expected to vest | 3,650 | |
Aggregate Intrinsic Value, Exercisable | $ 3,650 |
Stock Based Awards - Stock Opti
Stock Based Awards - Stock Options Outstanding and Exercisable under Stock Option Plans (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number | 1,515,923 |
Options Exercisable and Vested, Outstanding Number | 1,469,854 |
$0.06 - $0.06 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Limit | $ / shares | $ 0.06 |
Range of Exercise Price, Upper Limit | $ / shares | $ 0.06 |
Options Outstanding, Number | 86,867 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 6 months |
Options Exercisable and Vested, Outstanding Number | 86,867 |
Options Exercisable and Vested, Weighted Average Remaining Contractual Life (Years) | 2 years 6 months |
$0.24-$0.24 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Limit | $ / shares | $ 0.24 |
Range of Exercise Price, Upper Limit | $ / shares | $ 0.24 |
Options Outstanding, Number | 621,098 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 4 months 24 days |
Options Exercisable and Vested, Outstanding Number | 621,098 |
Options Exercisable and Vested, Weighted Average Remaining Contractual Life (Years) | 6 years 4 months 24 days |
$0.66-$0.90 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Limit | $ / shares | $ 0.66 |
Range of Exercise Price, Upper Limit | $ / shares | $ 0.90 |
Options Outstanding, Number | 475,985 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 years 6 months |
Options Exercisable and Vested, Outstanding Number | 475,985 |
Options Exercisable and Vested, Weighted Average Remaining Contractual Life (Years) | 8 years 6 months |
$7.59-$126.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Limit | $ / shares | $ 7.59 |
Range of Exercise Price, Upper Limit | $ / shares | $ 126 |
Options Outstanding, Number | 312,679 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 1 month 6 days |
Options Exercisable and Vested, Outstanding Number | 266,644 |
Options Exercisable and Vested, Weighted Average Remaining Contractual Life (Years) | 5 years 1 month 6 days |
$127.80-$191.76 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Limit | $ / shares | $ 127.80 |
Range of Exercise Price, Upper Limit | $ / shares | $ 191.76 |
Options Outstanding, Number | 19,294 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 9 months 18 days |
Options Exercisable and Vested, Outstanding Number | 19,260 |
Options Exercisable and Vested, Weighted Average Remaining Contractual Life (Years) | 3 years 9 months 18 days |
Stock Based Awards - Summary _2
Stock Based Awards - Summary of Fair Value of Employee Stock Options (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected volatility | 132.00% | 78.00% |
Risk-free interest rate | 3.00% | 2.10% |
Dividend yield | 0.00% | 0.00% |
Expected life (in years) | 3 years 3 months 18 days | 6 years 2 months 12 days |
Stock Based Awards - Schedule o
Stock Based Awards - Schedule of Estimated Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 16,139 | $ 13,349 |
Research and development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 2,946 | 4,549 |
General and administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 13,193 | $ 8,800 |
Stock Based Awards - Summary _3
Stock Based Awards - Summary of Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Granted | 428,056 | |
Restricted stock units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Unvested beginning balance | 419,163 | |
Number of Shares, Vested | (128,136) | |
Number of Shares, Forfeited/canceled | (173,430) | |
Number of Shares, Unvested ending balance | 117,597 | 419,163 |
Weighted Average Grant-Date Fair Value, Unvested beginning balance | $ 32.56 | |
Weighted Average Grant Date Fair Value, Vested | 35.60 | |
Weighted Average Grant Date Fair Value, Forfeited/canceled | 31.12 | |
Weighted Average Grant Date Fair Value, Unvested ending balance | $ 31.37 | $ 32.56 |
Comprehensive Loss - Additional
Comprehensive Loss - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Comprehensive income | $ 0 | $ 350,000 |
Comprehensive Loss - Summary of
Comprehensive Loss - Summary of Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balances | $ 82,756,000 | $ 151,068,000 |
Amounts reclassified out of other comprehensive loss | 350,000 | |
Net current period other comprehensive loss | 0 | 350,000 |
Ending Balances | $ 59,945,000 | 82,756,000 |
Unrealized Gains and Losses on Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balances | (350,000) | |
Amounts reclassified out of other comprehensive loss | 350,000 | |
Net current period other comprehensive loss | 350,000 | |
Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balances | $ (350,000) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Federal Income Taxes (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Current | |
Federal | $ (247) |
Total current tax expense | (247) |
Deferred | |
Total income tax expense | $ (247) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes Attributed to Geographic Locations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (76,256) | $ (125,093) |
Foreign | (77) | 39,867 |
Net loss before provision for income taxes | $ (76,333) | $ (85,226) |
Income Taxes - Summary of Statu
Income Taxes - Summary of Statutory Federal Tax Rate to Income or Loss before Taxes (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal tax benefit at statutory rate | 21.00% | 34.00% |
Change in valuation allowance | 99.00% | (7.00%) |
Research and development credits | 16.00% | |
Section 382 limitation | (109.00%) | |
Other non-deductible expenses | (11.00%) | (3.00%) |
Change in rate differential | (38.00%) | |
Build-to-suit adjustments | (2.00%) | |
Total | 0.00% | 0.00% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forwards | $ 2,335 | $ 69,281 |
Research and development tax credits | 168 | 34,891 |
Stock based compensation and other | 8,567 | 5,693 |
Total deferred tax assets | 11,070 | 109,865 |
Less: Valuation allowance | (10,336) | (108,782) |
Deferred tax liabilities | $ (734) | $ (1,083) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Increase (decrease) in valuation allowance | $ (98,400) | $ 60,800 | |
Total gross deferred tax assets | 11,070 | 109,865 | |
Net operating loss carryforward | 306,000 | ||
Tax credit carryforward | 39,500 | ||
Unrecognized tax benefits | 72 | 3,934 | $ 10,116 |
Decrease in prior year unrecognized tax benefits | $ 3,934 | $ 7,776 | |
Federal tax benefit at statutory rate | 21.00% | 34.00% | |
Provisional amount related to re-measurement of deferred tax balance, reduction amount | $ 33,000 | ||
Tax Cuts and Jobs Act, Accounting complete | true | ||
Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 11,100 | ||
Net operating loss carryforwards not subject to expiration | 4,300 | ||
Net operating loss carryforwards subject to expire | $ 6,800 | ||
Operating loss carryforwards, expiration | Begin to expire in 2037 | ||
Federal [Member] | Research and Development Tax Credits [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax credits | $ 200 | ||
Tax credit, expiration | Begin to expire in 2037 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 3,934 | $ 10,116 |
Gross increase/ (decrease) related to prior year tax positions | (3,934) | (7,776) |
Gross increase related to current year positions | 72 | 1,594 |
Ending Balance | $ 72 | $ 3,934 |
Restructuring Plan - Additional
Restructuring Plan - Additional Information (Detail) | Oct. 06, 2017Employee | Oct. 31, 2017shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) |
Restructuring Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring plan effective date | Oct. 20, 2017 | |||
Total number of employees reduced | Employee | 45 | |||
Approximate reduction as a percent of workforce | 62.00% | |||
Restructuring plan notification date to affected employees | Oct. 6, 2017 | |||
Severance-related charges | $ 4,200,000 | $ 3,400,000 | ||
Accrued cash retention bonus | 800,000 | |||
Balance amount owed under restructuring activities | 0 | |||
Restructuring Plan [Member] | General and administrative [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Severance-related charges | 1,700,000 | 700,000 | ||
Restructuring Plan [Member] | Research and development [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Severance-related charges | $ 2,500,000 | $ 2,700,000 | ||
Severance Benefit Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Vesting period of shares granted to retained employees | 2 years | 2 years | ||
Cash retention bonus percentage of each retained employees then current base salary | 50.00% | 50.00% | ||
Required additional continuing employment period for retained employees | 12 months | |||
Severance Benefit Plan [Member] | Restricted stock units [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Approximate number of shares granted to retained employees | shares | 907,000 | 151,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2017 | Dec. 31, 2018 | Oct. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contributions made | $ 0 | ||
Cash retention bonus paid | $ 1,500,000 | ||
Severance Benefit Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Vesting period of shares granted to retained employees | 2 years | 2 years | |
Cash retention bonus percentage of each retained employees then current base salary | 50.00% | 50.00% | |
Severance Benefit Plan [Member] | Restricted stock units [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Approximate number of shares granted to retained employees | 907,000 | 151,000 |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders- basic and diluted | $ (76,333) | $ (84,979) |
Net loss per share- basic and diluted | $ (10.64) | $ (14.47) |
Weighted-average common shares used to compute net loss per share- basic and diluted | 7,171 | 5,871 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Number of dilutive common stock equivalents | 0 | 0 |
Net Loss per Share - Summary _2
Net Loss per Share - Summary of Potentially Anti-dilutive Securities Excluded from Computation of Diluted Shares Outstanding (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Options to purchase common stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially Anti-dilutive securities excluded from computation of diluted shares outstanding | 1,515,923 | 607,511 |
Restricted stock units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially Anti-dilutive securities excluded from computation of diluted shares outstanding | 117,597 | 419,163 |
Merger with Aravive Biologics_3
Merger with Aravive Biologics, Inc. - Additional Information (Detail) - $ / shares | Oct. 12, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Aravive Biologics [Member] | Common Stock [Member] | |||
Business Acquisition [Line Items] | |||
Aggregate consideration issuable in merger, shares | 5,141,915 | ||
Aravive Biologics [Member] | Agreement and Plan of Merger and Reorganization [Member] | |||
Business Acquisition [Line Items] | |||
Common stock, par value | $ 0.0001 | ||
Aravive Biologics [Member] | Agreement and Plan of Merger and Reorganization [Member] | Common Stock [Member] | |||
Business Acquisition [Line Items] | |||
Shares issued upon conversion of stock | 2.2801 | ||
Aggregate consideration issuable in merger, shares | 5,141,915 |
Merger with Aravive Biologics_4
Merger with Aravive Biologics, Inc. - Schedule of Estimate Purchase Price Fair Value Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed (Detail) - Aravive Biologics [Member] $ in Thousands | Oct. 12, 2018USD ($) |
Consideration | |
Common stock issued - 5,141,915 shares issued at $7.26 per share | $ 37,331 |
Transaction costs | 2,076 |
Total consideration | 39,407 |
Assets acquired and liabilities assumed | |
Cash | 5,277 |
Deferred revenue | (1,517) |
Contingent payable | (264) |
Other assets and liabilities | (2,768) |
Total net assets acquired | 39,407 |
In-process research and development [Member] | |
Assets acquired and liabilities assumed | |
Acquired identifiable intangible assets at fair value | 38,313 |
Assembled Workforce [Member] | |
Assets acquired and liabilities assumed | |
Acquired identifiable intangible assets at fair value | $ 366 |
Merger with Aravive Biologics_5
Merger with Aravive Biologics, Inc - Schedule of Estimate Purchase Price Fair Value Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) - Aravive Biologics [Member] - Common Stock [Member] | Oct. 12, 2018$ / sharesshares |
Business Acquisition [Line Items] | |
Common stock, shares issued | shares | 5,141,915 |
Common stock, value per share | $ / shares | $ 7.26 |