Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ARAV | |
Entity Registrant Name | Aravive, Inc. | |
Entity Central Index Key | 0001513818 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 11,284,964 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-36361 | |
Entity Tax Identification Number | 264106690 | |
Entity Address, Address Line One | River Oaks Tower | |
Entity Address, Address Line Two | 3730 Kirby Drive, Suite 1200 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | Texas | |
Entity Address, Postal Zip Code | 77098 | |
City Area Code | 936 | |
Local Phone Number | 355-1910 | |
Former Address [Member] | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | LyondellBasell Tower | |
Entity Address, Address Line Two | 1221 McKinney Street, Suite 3200 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | Texas | |
Entity Address, Postal Zip Code | 77010 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 48,384 | $ 56,992 |
Prepaid expenses and other current assets | 3,667 | 1,038 |
Total current assets | 52,051 | 58,030 |
Restricted cash | 2,409 | 2,396 |
Property and equipment, net | 1,996 | 32 |
Operating lease right-of-use assets | 9,501 | |
Build-to-suit lease asset | 8,651 | |
Intangible asset, net | 280 | 341 |
Other assets | 509 | 20 |
Total assets | 66,746 | 69,470 |
Current liabilities | ||
Accounts payable | 711 | 426 |
Accrued liabilities | 1,400 | 1,365 |
Operating lease obligation, current portion | 2,505 | |
Deferred revenue | 146 | |
Total current liabilities | 4,616 | 1,937 |
Contingent payable | 264 | 264 |
Operating lease obligation | 8,995 | |
Build-to-suit lease obligation | 7,324 | |
Total liabilities | 13,875 | 9,525 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized at June 30, 2019 and December 31, 2018; 11,284,580 and 11,266,151 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 1 | 1 |
Additional paid-in capital | 512,511 | 510,509 |
Accumulated deficit | (459,641) | (450,565) |
Total stockholders' equity | 52,871 | 59,945 |
Total liabilities and stockholders’ equity | $ 66,746 | $ 69,470 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 11,284,580 | 11,266,151 |
Common stock, shares outstanding | 11,284,580 | 11,266,151 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | ||||
Grant revenue | $ 3,054 | $ 4,753 | ||
Type of Revenue [Extensible List] | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember |
Operating expenses | ||||
Research and development | $ 3,637 | $ 3,438 | $ 6,485 | $ 7,038 |
General and administrative | 3,291 | 6,003 | 7,881 | 10,920 |
Total operating expenses | 6,928 | 9,441 | 14,366 | 17,958 |
Loss from operations | (3,874) | (9,441) | (9,613) | (17,958) |
Interest income | 233 | 249 | 579 | 442 |
Other income (expense), net | 597 | (656) | 1,286 | (1,313) |
Net loss | $ (3,044) | $ (9,848) | $ (7,748) | $ (18,829) |
Net loss per share - basic and diluted | $ (0.27) | $ (1.64) | $ (0.69) | $ (3.14) |
Weighted-average common shares used to compute basic and diluted net loss per share | 11,280 | 6,023 | 11,277 | 6,002 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning Balances at Dec. 31, 2017 | $ 82,753 | $ 1 | $ 456,984 | $ (374,232) |
Beginning Balances, shares at Dec. 31, 2017 | 5,989,645 | |||
Issuance of common stock upon exercise of options | 35 | 35 | ||
Issuance of common stock upon exercise of options, shares | 3,643 | |||
Issuance of common stock under employee benefit plans, shares | 18,300 | |||
Stock-based compensation | 2,820 | 2,820 | ||
Net loss | (8,981) | (8,981) | ||
Ending Balances at Mar. 31, 2018 | 76,627 | $ 1 | 459,839 | (383,213) |
Ending Balances, shares at Mar. 31, 2018 | 6,011,588 | |||
Beginning Balances at Dec. 31, 2017 | 82,753 | $ 1 | 456,984 | (374,232) |
Beginning Balances, shares at Dec. 31, 2017 | 5,989,645 | |||
Net loss | (18,829) | |||
Ending Balances at Jun. 30, 2018 | 68,934 | $ 1 | 461,994 | (393,061) |
Ending Balances, shares at Jun. 30, 2018 | 6,040,065 | |||
Beginning Balances at Mar. 31, 2018 | 76,627 | $ 1 | 459,839 | (383,213) |
Beginning Balances, shares at Mar. 31, 2018 | 6,011,588 | |||
Issuance of common stock under employee benefit plans, shares | 28,477 | |||
Stock-based compensation | 2,155 | 2,155 | ||
Net loss | (9,848) | (9,848) | ||
Ending Balances at Jun. 30, 2018 | 68,934 | $ 1 | 461,994 | (393,061) |
Ending Balances, shares at Jun. 30, 2018 | 6,040,065 | |||
Beginning Balances at Dec. 31, 2018 | 59,945 | $ 1 | 510,509 | (450,565) |
Beginning Balances, shares at Dec. 31, 2018 | 11,266,151 | |||
Issuance of common stock under employee benefit plans, shares | 10,349 | |||
Stock-based compensation | 1,048 | 1,048 | ||
Cumulative-effect adjustment to equity due to adoption of ASU 2016-02 | (1,328) | (1,328) | ||
Net loss | (4,704) | (4,704) | ||
Ending Balances at Mar. 31, 2019 | 54,961 | $ 1 | 511,557 | (456,597) |
Ending Balances, shares at Mar. 31, 2019 | 11,276,500 | |||
Beginning Balances at Dec. 31, 2018 | $ 59,945 | $ 1 | 510,509 | (450,565) |
Beginning Balances, shares at Dec. 31, 2018 | 11,266,151 | |||
Issuance of common stock upon exercise of options, shares | 2,000 | |||
Net loss | $ (7,748) | |||
Ending Balances at Jun. 30, 2019 | 52,871 | $ 1 | 512,511 | (459,641) |
Ending Balances, shares at Jun. 30, 2019 | 11,284,580 | |||
Beginning Balances at Mar. 31, 2019 | 54,961 | $ 1 | 511,557 | (456,597) |
Beginning Balances, shares at Mar. 31, 2019 | 11,276,500 | |||
Issuance of common stock upon exercise of options | 2 | 2 | ||
Issuance of common stock upon exercise of options, shares | 2,000 | |||
Issuance of common stock under employee benefit plans | 11 | 11 | ||
Issuance of common stock under employee benefit plans, shares | 6,080 | |||
Stock-based compensation | 941 | 941 | ||
Net loss | (3,044) | (3,044) | ||
Ending Balances at Jun. 30, 2019 | $ 52,871 | $ 1 | $ 512,511 | $ (459,641) |
Ending Balances, shares at Jun. 30, 2019 | 11,284,580 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (7,748) | $ (18,829) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 248 | 236 |
Stock-based compensation expense | 1,989 | 4,976 |
Changes in assets and liabilities | ||
Prepaid expenses and other assets | (3,118) | (124) |
Accounts payable | 284 | (695) |
Deferred revenue | (146) | |
Accrued and other liabilities | (117) | (860) |
Net cash used in operating activities | (8,608) | (15,296) |
Cash flows from financing activities | ||
Inducement on build-to-suit lease obligation | 1,896 | |
Proceeds from issuance of common stock in connection with employee benefit plans | 13 | 35 |
Net cash provided by financing activities | 13 | 1,931 |
Net change in cash, cash equivalents, and restricted cash | (8,595) | (13,365) |
Cash, cash equivalents, and restricted cash at beginning of period | 59,388 | 83,529 |
Cash, cash equivalents, and restricted cash at end of period | $ 50,793 | $ 70,164 |
Formation and Business of the C
Formation and Business of the Company | 6 Months Ended |
Jun. 30, 2019 | |
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 developing treatments designed to halt the progression of life-threatening diseases, including cancer and fibrosis. Prior to the merger with Aravive Biologics, Inc. (the “Merger”), 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, and raising capital to support and expand these activities. Its headquarters and principal operations are located in Houston, Texas. The Company’s product candidates, AVB-S6, are a set of novel, ultra high-affinity, decoy proteins that target the GAS6-AXL pathway. By capturing serum GAS6, these high affinity decoy proteins starve the AXL pathway of its signal, potentially halting the biological programming that promotes disease progression. AXL signaling plays an important role in multiple types of malignancies by promoting metastasis, cancer cell survival, resistance to treatments, and immune suppression. The GAS6-AXL signaling pathway also plays a significant role in fibrogenesis. The Company’s lead product candidate is AVB-500 (previously referred to as AVB-S6-500). 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. In its Phase 1 clinical trial with its clinical lead product candidate, AVB-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. The Company has initiated the Phase 1b portion of a Phase 1b/2 clinical trial of AVB-500 combined with standard of care therapies in patients with platinum-resistant ovarian cancer. We intend to expand development into additional oncology and fibrotic indications. In July 2016, Private Aravive was approved for a $20 million Product Development Award from the Cancer Prevention and Research 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 November 30, 2019. After the termination date, Private Aravive is not permitted to retain any unused grant award proceeds without CPRIT’s approval, but Private 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 Private Aravive will match 50% of funding from the CPRIT Grant. Consequently, Private Aravive was required to raise $10.0 million in matching funds over the three-year project. Private 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 Private 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 Private 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, Private 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 Private Aravive would have been required to pay to Stanford University had it sold the products under sublicense itself. In addition, in such event it 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. Unaudited Interim Financial Information In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2019 and, its results of operations for each of the three and six months ended June 30, 2019 and 2018, and cash flows for the six months ended June 30, 2019, and 2018. The December 31, 2018 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States of America, or GAAP. The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed by the Company on March 15, 2019 or the Annual Report with the U.S. Securities and Exchange Commission, or the SEC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Significant Accounting Policies As of January 1, 2019, the Company adopted ASC 842 – Leases Basis of Presentation and Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of the accompanying condensed consolidated financial statements in accordance with 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 condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The accompanying unaudited condensed consolidated financial position as of June 30, 2019 and as of December 31, 2018, the results of operations for each of the three and six months ended June 30, 2019 and 2018, and cash flows for the six months ended June 30, 2019 and 2018 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 2018. 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. As of June 30, 2019, the Company had a cash and cash equivalents balance of approximately $48.4 million consisting of cash and cash equivalents in highly liquid U.S. money market funds. 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’s expected primary use of cash will be to fund the Company’s clinical development programs, specifically for its product candidate AVB-500. Since inception, the Company has incurred net losses and negative cash flows from operations supporting the Company’s clinical development programs and related general and administrative expenses. At June 30, 2019, the Company had an accumulated deficit of approximately $459.6 million and working capital of approximately $47.4 million. The Company expects to continue to incur losses supporting its clinical development program and related administrative expenses. The Company anticipates it may need additional financing to support its business plan as it moves forward. Although management has been successful in raising capital in the past, 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. Segments The Company operates in one segment. Management uses one measurement of performance 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 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. 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 or a strategic transaction and dependence on key individuals and sole source suppliers. Products developed by the Company require clearances from the U.S. Food and Drug Administration, or the FDA, the Pharmaceuticals Medicines and Devices Agency, or the 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 materially 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 develop, 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 June 30, 2019 and December 31, 2018, the Company’s cash and cash equivalents were held at multiple institutions in the United States and included deposits in money market funds which were unrestricted as to withdrawal or use. Restricted Cash Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or the Company’s intention to use the cash for a specific purpose. The Company’s restricted cash primarily relates to the letter of credit provided to its Landlord for the Company’s facilities in Menlo Park, California (as described in Note 5) to secure its obligations under the 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 balance sheet and any resulting gain or loss is reflected in operations in the period realized. Leases The Company adopted ASC 842 on January 1, 2019. For the periods prior to January 1, 2019, the Company’s leases were accounted for under ASC 840. The Company leases all of its office space in conducting its business. At inception, the Company determines whether an agreement represents a lease and at commencement the Company evaluates each lease agreement to determine whether the lease is an operating or financing lease. As described below under "Recent Accounting Pronouncements”, the Company adopted the Financial Accounting Standards Board Accounting Standards Update, or ASU, "Leases," or ASU 2016-02. The Company elected to adopt the standard on January 1, 2019 using the alternative transition method provided by ASU 2018-11 whereby the Company recorded 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 accumulated deficit 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 has elected 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 has elected the practical expedient allowing the use-of-hindsight which doesn’t require the Company to reassess the lease term of its leases based on all facts and circumstances through the effective date. With the adoption of ASU 2016-02, the Company recorded an operating lease right-of-use asset and an operating lease obligation on the consolidated balance sheet. ROU assets represent the Company’s ROU of the underlying asset for the lease term and the lease obligation represents the Company’s commitment to make the lease payments arising from the lease. ROU obligations are recognized at the commencement date based on the present value of remaining lease payments over the lease term and ROU assets are calculated as the lease liability, adjusted by unamortized initial direct costs, unamortized lease incentives received, cumulative deferred or prepaid lease payments, and accumulated impairment losses. As the Company’s leases do not provide an implicit rate, the Company has used an estimated incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. For all lease agreements the Company has combined lease and nonlease components. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Prior to the Company’s adoption of ASU 2016-02, when the Company’s lease agreements contained renewal options, tenant improvement allowances, rent holidays and rent escalation clauses, the Company recorded a deferred rent asset or liability equal to the difference between the rent expense and the future minimum lease payments due. The lease expense related to operating leases was recognized on a straight-line basis in the statements of operations over the term of each lease. 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 as of June 30, 2019 or December 31, 2018. Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, prepaid expenses, 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 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level Level 3 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 1 assets as of June 30, 2019. Level 1 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, or 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 financial statement and tax basis 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 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 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. Stock-based compensation expense, net of estimated forfeitures, is reflected in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Operating Expenses Research and development $ 112 $ 877 $ 198 $ 1,759 General and administrative 829 1,278 1,791 3,216 Total $ 941 $ 2,155 $ 1,989 $ 4,975 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. There was no difference between net loss and comprehensive loss for all periods presented. 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, restricted stock units and shares issued under the Company’s Employee Stock Purchase Plan are considered to be potentially dilutive securities. Because the Company has reported a net loss for all of the periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. 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 2019 and 2018 was grant revenue related to the CPRIT contract, which is being recognized when qualifying costs are incurred and there is reasonable assurance that the conditions of the award have been met for collection. Proceeds received prior to the costs being incurred or the conditions of the award being met are recognized as deferred revenue until the services are performed and the conditions of the award are met. As of June 30, 2019, the Company has recognized $4.8 million from the CPRIT grant. 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 June 30, 2019, the Company had an unbilled receivable from CPRIT of $2.0 million, which is reflected in prepaids and other current assets on the accompanying consolidated balance sheet. Quarterly reclassifications Certain reclassi fications of prior period amounts have been made within the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019. Specifically, 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 six month period ended June 30, 2018 included in the 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 six-month period ended June 30, 2018, decreased by $1.9 million and cash flows from financing activities for the respective periods increased by $1.9 million. 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. 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 adopted this new guidance as of January 1, 2019, which had no material impact on the Company’s consolidated financial statements. In June 2018, the FASB issued Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made , which is intended to clarify and improve the scope and the accounting guidance for contributions received and contributions made. The amendments in should assist entities in (1) evaluating whether transactions should be accounted for as contributions (nonreciprocal transaction) within the scope of Topic 958, Not-for-Profit Entities, or as exchange (reciprocal) transactions subject to other guidance and (2) determining whether a contribution is conditional. This amendment applies to all entities that make or receive grants or contributions. This ASU is effective for public companies serving as a resource recipient for fiscal years beginning after June 15, 2018, including interim periods within that fiscal year. The Company has adopted this guidance as of January 1, 2019 which had no material impact to its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842)-- Targeted Improvements, that allows entities to apply the provisions of the new standard at the effective date (e.g. January 1, 2019), as opposed to the earliest period presented under the modified retrospective transition approach (January 1, 2017) and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company adopted ASC Topic 842 with the cumulative effect of adoption recognized to retained earnings on January 1, 2019, as described in Note 2. As a result of the adoption of ASC 842 on January 1, 2019, the Company derecognized $8.6 million for the existing asset; $7.3 million for the obligation and $1.3 million to the opening balance of the accumulated deficit. The existing asset and obligation on the consolidated balance sheet resulted from the build-to-suit lease arrangement at the 1020 Space, which did not meet the criteria for “sale-leaseback” treatment at the time construction was completed in 2017, and the Company has applied the general lessee transition guidance to this lease. Based on the Company’s assessment of the 1020 Space, qualifies as an operating lease under ASC 842. Additionally, as a result of adoption of ASC 842, the Company recognized operating lease ROU assets of approximately $10.4 million, $2.1 million of leasehold improvements, an operating lease obligation of $12.6 million and derecognition of deferred rent of $0.1 million as of January 1, 2019. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Prepaid expenses and other current assets (in thousands) June 30, December 31, 2019 2018 Preclinical and clinical (1) $ 745 $ 416 Lease receivable 906 606 Unbilled receivable from CPRIT 2,000 — Other 16 16 Total $ 3,667 $ 1,038 (1) These prepayments consist primarily of advances to the Company’s contract manufacturers and contract research organizations Property and equipment, net (in thousands) June 30, December 31, 2019 2018 Equipment and furniture $ 1,442 $ 1,442 Buildings, leasehold and building improvements 2,674 134 4,116 1,576 Less: Accumulated depreciation and amortization (2,120 ) (1,544 ) Property and equipment, net $ 1,996 $ 32 Depreciation expense was approximately $0.1 million and $0.2 million for the three and six months ended June 30, 2019 and 2018, respectively. Additionally, as a result of the adoption of ASC 842, the Company recognized accumulated depreciation of approximately $0.5 million for its leasehold improvements associated with the 1020 Space as of January 1, 2019. Accrued Liabilities (in thousands) June 30, December 31, 2019 2018 Payroll and related $ 800 $ 509 Preclinical and clinical 600 563 Other — 293 Total $ 1,400 $ 1,365 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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, accounts payable and accrued liabilities. 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 June 30, 2019 (unaudited) Total Level 1 Assets Money market funds $ 36,363 $ 36,363 Fair Value Measurements at December 31, 2018 Total Level 1 Assets Money market funds $ 48,389 $ 48,389 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 5. Leases 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 or the 1020 Space. The lease commenced in August 2017 for a period of 87 months with one renewal option for a five-year term. The Company did not include the renewal option period as the Company determined it was not reasonably certain the lease would be renewed as of the modification date. 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. During the three and six months ended June 30, 2019, the Company’s operating lease costs were $0.5 million and $1.1 million, respectively and cash paid for amounts included in the measurement of lease obligations for operating cash flows from operating leases for the six months ended June 30, 2019 was $1.3 million. As of June 30, 2019, the Company’s operating leases had a weighted average remaining lease term of 5.6 years and a weighted average discount rate of 7.75%, which approximates the Company’s incremental borrowing rate. As of June 30, 2019, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands): Year Ending December 31, 2019 (6 months remaining) $ 1,336 2020 2,668 2021 2,618 2022 2,697 2023 2,777 Thereafter 2,373 Total operating lease payments 14,469 Less imputed interest (2,969 ) Total operating lease obligations 11,500 Less current operating lease obligations (2,505 ) Noncurrent operating lease obligations $ 8,995 1020 Marsh Sublease 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 and $1.3 million for the three and six months ended June 30, 2019, respectively. During the six months ended June 30, 2019, cash received from EVA was $0.8 million, which amount was included in other current assets for operating cash flows. Future base rent and additional rent EVA shall pay to the Company over the sublease term as of June 30, 2019, are as follows (in thousands): Year Ending December 31, 2019 (6 months remaining) $ 1,258 2020 2,563 2021 2,628 2022 2,695 2023 2,764 Thereafter 2,355 Total $ 14,263 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and 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. 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 June 30, 2019 and 2018 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. On May 28, 2019, the Company provided notice of termination to Amunix Operating, Inc. terminating the License Agreement. Pursuant to the terms of the License Agreement, the termination is effective as of August 26, 2019. |
Stockholder's Equity
Stockholder's Equity | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | 7. Stockholders’ Equity Equity Incentive Plans The Company’s Board of Directors, or Board, and stockholders previously approved the 2014 Equity Incentive Plan, or the 2014 Plan, which became effective on March 21, 2014. As of June 30, 2019, the total number of shares of common stock available for issuance under the 2014 Plan was approximately 723,462. Unless the Board provides otherwise, beginning on January 1, 2015, and continuing until the expiration of the 2014 Plan, the total number of shares of common stock available for issuance under the 2014 Plan will automatically increase annually on January 1 by 4.5% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year. In March 2014, the Board and stockholders approved the 2014 Employee Stock Purchase Plan, or the ESPP, which became effective as of March 5, 2014. The Company initially reserved a total of 150,000 shares of common stock for issuance under the ESPP. Unless the Board provides otherwise, beginning on January 1, 2015, and continuing until the expiration of the ESPP, the total number of shares of common stock available for issuance under the ESPP will automatically increase annually on January 1 by the lesser of (i) 1% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year, or (ii) 300,000 shares of common stock. 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 1,368,060 shares of common stock for issuance under the 2010 Plan. As of June 30, 2019, the total number of shares of common stock available for issuance under the 2010 Plan was approximately 108,839. 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. 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 1,051,544 shares of common stock for issuance under the 2017 Plan. As of June 30, 2019, the total number of shares of common stock available for issuance under the 2017 Plan was approximately 551,133. 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 Average Contractual Intrinsic Number of Exercise Life Value Shares Price (in years) (in thousands) Balances, January 1, 2019 1,515,923 $ 18.65 Options granted 438,328 5.53 Options cancelled (97,382 ) 96.15 Options exercised (2,000 ) 0.66 Balances, June 30, 2019 1,854,869 $ 11.48 7.1 $ 6,804 Outstanding and expected to vest as of June 30, 2019 1,821,599 $ 11.55 7.1 $ 6,796 Exercisable as of June 30, 2019 1,464,578 $ 11.86 6.5 $ 6,692 Stock Options Granted to Employees During the six months ended June 30, 2019, the Company granted stock options to officers, directors and employees to purchase shares of common stock with a weighted-average grant date fair value of $4.69 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 June 30, 2019, total unrecognized employee stock-based compensation related to stock options granted was $2.8 million, which is expected to be recognized over the weighted-average remaining vesting period of 3.4 years. The fair value of employee stock options was estimated using the Black-Scholes model with the following weighted-average assumptions: June 30, 2019 Expected volatility 111.0 % Risk-free interest rate 2.5 % Dividend yield 0.0 % Expected life (in years) 6.0 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 $0.4 million and $0.7 million in compensation expense during the three months ended June 30, 2019 and 2018, respectively and $0.8 million and $1.9 million during the six months ended June 30, 2019 and 2018, respectively. As all of the restricted stock vests through 2018 and beyond, the Company will continue to recognize stock-based compensation expense related to the grants of these restricted stock units. If all of the remaining restricted stock units that were granted in prior years vest, the Company will recognize approximately $1.5 million in compensation expense over a weighted average remaining period of 1.6 years. However, no compensation expense will be recognized for restricted stock units that do not vest. |
Net Loss per Share of Common St
Net Loss per Share of Common Stock | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share of Common Stock | 8. Net loss per share of Common Stock The following table summarizes the computation of basic and diluted net loss per share of the Company (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net loss $ (3,044 ) $ (9,848 ) $ (7,748 ) $ (18,829 ) Basic and diluted net loss per common share $ (0.27 ) $ (1.64 ) $ (0.69 ) $ (3.14 ) Weighted-average shares used to compute basic and diluted net loss per share 11,280 6,023 11,277 6,002 Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss per common share 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 all periods presented, diluted net loss per share is the same as basic net loss per common share for those periods. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies As of January 1, 2019, the Company adopted ASC 842 – Leases |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of the accompanying condensed consolidated financial statements in accordance with 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 condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The accompanying unaudited condensed consolidated financial position as of June 30, 2019 and as of December 31, 2018, the results of operations for each of the three and six months ended June 30, 2019 and 2018, and cash flows for the six months ended June 30, 2019 and 2018 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 2018. 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. As of June 30, 2019, the Company had a cash and cash equivalents balance of approximately $48.4 million consisting of cash and cash equivalents in highly liquid U.S. money market funds. 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’s expected primary use of cash will be to fund the Company’s clinical development programs, specifically for its product candidate AVB-500. Since inception, the Company has incurred net losses and negative cash flows from operations supporting the Company’s clinical development programs and related general and administrative expenses. At June 30, 2019, the Company had an accumulated deficit of approximately $459.6 million and working capital of approximately $47.4 million. The Company expects to continue to incur losses supporting its clinical development program and related administrative expenses. The Company anticipates it may need additional financing to support its business plan as it moves forward. Although management has been successful in raising capital in the past, 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. |
Segments | Segments The Company operates in one segment. Management uses one measurement of performance 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 credit risk 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. |
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 or a strategic transaction and dependence on key individuals and sole source suppliers. Products developed by the Company require clearances from the U.S. Food and Drug Administration, or the FDA, the Pharmaceuticals Medicines and Devices Agency, or the 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 materially 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 develop, launch and commercialize any product candidates for which it receives regulatory approval. |
Cash and Cash Equivalents | 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 June 30, 2019 and December 31, 2018, the Company’s cash and cash equivalents were held at multiple institutions in the United States and included deposits in money market funds which were unrestricted as to withdrawal or use. |
Restricted Cash | Restricted Cash Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or the Company’s intention to use the cash for a specific purpose. The Company’s restricted cash primarily relates to the letter of credit provided to its Landlord for the Company’s facilities in Menlo Park, California (as described in Note 5) to secure its obligations under the 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 balance sheet and any resulting gain or loss is reflected in operations in the period realized. |
Leases | Leases The Company adopted ASC 842 on January 1, 2019. For the periods prior to January 1, 2019, the Company’s leases were accounted for under ASC 840. The Company leases all of its office space in conducting its business. At inception, the Company determines whether an agreement represents a lease and at commencement the Company evaluates each lease agreement to determine whether the lease is an operating or financing lease. As described below under "Recent Accounting Pronouncements”, the Company adopted the Financial Accounting Standards Board Accounting Standards Update, or ASU, "Leases," or ASU 2016-02. The Company elected to adopt the standard on January 1, 2019 using the alternative transition method provided by ASU 2018-11 whereby the Company recorded 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 accumulated deficit 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 has elected 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 has elected the practical expedient allowing the use-of-hindsight which doesn’t require the Company to reassess the lease term of its leases based on all facts and circumstances through the effective date. With the adoption of ASU 2016-02, the Company recorded an operating lease right-of-use asset and an operating lease obligation on the consolidated balance sheet. ROU assets represent the Company’s ROU of the underlying asset for the lease term and the lease obligation represents the Company’s commitment to make the lease payments arising from the lease. ROU obligations are recognized at the commencement date based on the present value of remaining lease payments over the lease term and ROU assets are calculated as the lease liability, adjusted by unamortized initial direct costs, unamortized lease incentives received, cumulative deferred or prepaid lease payments, and accumulated impairment losses. As the Company’s leases do not provide an implicit rate, the Company has used an estimated incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. For all lease agreements the Company has combined lease and nonlease components. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Prior to the Company’s adoption of ASU 2016-02, when the Company’s lease agreements contained renewal options, tenant improvement allowances, rent holidays and rent escalation clauses, the Company recorded a deferred rent asset or liability equal to the difference between the rent expense and the future minimum lease payments due. The lease expense related to operating leases was recognized on a straight-line basis in the statements of operations over the term of each lease. |
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 as of June 30, 2019 or December 31, 2018. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, prepaid expenses, 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 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level Level 3 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 1 assets as of June 30, 2019. Level 1 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, or 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 financial statement and tax basis 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 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 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. Stock-based compensation expense, net of estimated forfeitures, is reflected in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Operating Expenses Research and development $ 112 $ 877 $ 198 $ 1,759 General and administrative 829 1,278 1,791 3,216 Total $ 941 $ 2,155 $ 1,989 $ 4,975 |
Comprehensive Loss | 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. There was no difference between net loss and comprehensive loss for all periods presented. |
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, restricted stock units and shares issued under the Company’s Employee Stock Purchase Plan are considered to be potentially dilutive securities. Because the Company has reported a net loss for all of the periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. |
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 2019 and 2018 was grant revenue related to the CPRIT contract, which is being recognized when qualifying costs are incurred and there is reasonable assurance that the conditions of the award have been met for collection. Proceeds received prior to the costs being incurred or the conditions of the award being met are recognized as deferred revenue until the services are performed and the conditions of the award are met. As of June 30, 2019, the Company has recognized $4.8 million from the CPRIT grant. 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 June 30, 2019, the Company had an unbilled receivable from CPRIT of $2.0 million, which is reflected in prepaids and other current assets on the accompanying consolidated balance sheet. |
Quarterly Reclassifications | Quarterly reclassifications Certain reclassi fications of prior period amounts have been made within the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019. Specifically, 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 six month period ended June 30, 2018 included in the 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 six-month period ended June 30, 2018, decreased by $1.9 million and cash flows from financing activities for the respective periods increased by $1.9 million. 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. |
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 adopted this new guidance as of January 1, 2019, which had no material impact on the Company’s consolidated financial statements. In June 2018, the FASB issued Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made , which is intended to clarify and improve the scope and the accounting guidance for contributions received and contributions made. The amendments in should assist entities in (1) evaluating whether transactions should be accounted for as contributions (nonreciprocal transaction) within the scope of Topic 958, Not-for-Profit Entities, or as exchange (reciprocal) transactions subject to other guidance and (2) determining whether a contribution is conditional. This amendment applies to all entities that make or receive grants or contributions. This ASU is effective for public companies serving as a resource recipient for fiscal years beginning after June 15, 2018, including interim periods within that fiscal year. The Company has adopted this guidance as of January 1, 2019 which had no material impact to its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842)-- Targeted Improvements, that allows entities to apply the provisions of the new standard at the effective date (e.g. January 1, 2019), as opposed to the earliest period presented under the modified retrospective transition approach (January 1, 2017) and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company adopted ASC Topic 842 with the cumulative effect of adoption recognized to retained earnings on January 1, 2019, as described in Note 2. As a result of the adoption of ASC 842 on January 1, 2019, the Company derecognized $8.6 million for the existing asset; $7.3 million for the obligation and $1.3 million to the opening balance of the accumulated deficit. The existing asset and obligation on the consolidated balance sheet resulted from the build-to-suit lease arrangement at the 1020 Space, which did not meet the criteria for “sale-leaseback” treatment at the time construction was completed in 2017, and the Company has applied the general lessee transition guidance to this lease. Based on the Company’s assessment of the 1020 Space, qualifies as an operating lease under ASC 842. Additionally, as a result of adoption of ASC 842, the Company recognized operating lease ROU assets of approximately $10.4 million, $2.1 million of leasehold improvements, an operating lease obligation of $12.6 million and derecognition of deferred rent of $0.1 million as of January 1, 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Stock-Based Compensation Expense | Stock-based compensation expense, net of estimated forfeitures, is reflected in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Operating Expenses Research and development $ 112 $ 877 $ 198 $ 1,759 General and administrative 829 1,278 1,791 3,216 Total $ 941 $ 2,155 $ 1,989 $ 4,975 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets (in thousands) June 30, December 31, 2019 2018 Preclinical and clinical (1) $ 745 $ 416 Lease receivable 906 606 Unbilled receivable from CPRIT 2,000 — Other 16 16 Total $ 3,667 $ 1,038 (1) These prepayments consist primarily of advances to the Company’s contract manufacturers and contract research organizations |
Property and Equipment, Net | Property and equipment, net (in thousands) June 30, December 31, 2019 2018 Equipment and furniture $ 1,442 $ 1,442 Buildings, leasehold and building improvements 2,674 134 4,116 1,576 Less: Accumulated depreciation and amortization (2,120 ) (1,544 ) Property and equipment, net $ 1,996 $ 32 |
Accrued Liabilities | Accrued Liabilities (in thousands) June 30, December 31, 2019 2018 Payroll and related $ 800 $ 509 Preclinical and clinical 600 563 Other — 293 Total $ 1,400 $ 1,365 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 (unaudited) Total Level 1 Assets Money market funds $ 36,363 $ 36,363 Fair Value Measurements at December 31, 2018 Total Level 1 Assets Money market funds $ 48,389 $ 48,389 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Summary of Minimum Lease Payments Under Non-cancelable Operating Leases | As of June 30, 2019, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands): Year Ending December 31, 2019 (6 months remaining) $ 1,336 2020 2,668 2021 2,618 2022 2,697 2023 2,777 Thereafter 2,373 Total operating lease payments 14,469 Less imputed interest (2,969 ) Total operating lease obligations 11,500 Less current operating lease obligations (2,505 ) Noncurrent operating lease obligations $ 8,995 |
Schedule of Future Sublease Income Term | Future base rent and additional rent EVA shall pay to the Company over the sublease term as of June 30, 2019, are as follows (in thousands): Year Ending December 31, 2019 (6 months remaining) $ 1,258 2020 2,563 2021 2,628 2022 2,695 2023 2,764 Thereafter 2,355 Total $ 14,263 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Average Contractual Intrinsic Number of Exercise Life Value Shares Price (in years) (in thousands) Balances, January 1, 2019 1,515,923 $ 18.65 Options granted 438,328 5.53 Options cancelled (97,382 ) 96.15 Options exercised (2,000 ) 0.66 Balances, June 30, 2019 1,854,869 $ 11.48 7.1 $ 6,804 Outstanding and expected to vest as of June 30, 2019 1,821,599 $ 11.55 7.1 $ 6,796 Exercisable as of June 30, 2019 1,464,578 $ 11.86 6.5 $ 6,692 |
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: June 30, 2019 Expected volatility 111.0 % Risk-free interest rate 2.5 % Dividend yield 0.0 % Expected life (in years) 6.0 |
Net Loss per Share of Common _2
Net Loss per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 of the Company (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net loss $ (3,044 ) $ (9,848 ) $ (7,748 ) $ (18,829 ) Basic and diluted net loss per common share $ (0.27 ) $ (1.64 ) $ (0.69 ) $ (3.14 ) Weighted-average shares used to compute basic and diluted net loss per share 11,280 6,023 11,277 6,002 |
Formation and Business of the_2
Formation and Business of the Company - Additional Information (Detail) - USD ($) | Jun. 01, 2016 | Jul. 31, 2016 | Jun. 30, 2019 | Jun. 30, 2019 |
Grant [Line Items] | ||||
Revenue from product development award | $ 3,054,000 | $ 4,753,000 | ||
Cancer Prevention & Research Institute of Texas [Member] | ||||
Grant [Line Items] | ||||
Revenue from product development award | $ 20,000,000 | |||
Grant termination date | Nov. 30, 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 | $ 1,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2016USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018 | Jun. 30, 2019USD ($)Segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents | $ 48,384,000 | $ 48,384,000 | $ 56,992,000 | ||||
Accumulated deficit | (459,641,000) | (459,641,000) | (450,565,000) | ||||
Working capital | 47,400,000 | $ 47,400,000 | |||||
Number of operating segment | Segment | 1 | ||||||
Cash and cash equivalents maturity period | Three months or less | ||||||
Impairments of long-lived assets | $ 0 | 0 | |||||
Revenue from product development award | $ 3,054,000 | $ 4,753,000 | |||||
Type of Revenue [Extensible List] | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | |||
Unbilled receivable | $ 2,000,000 | $ 2,000,000 | |||||
Cash flows from financing activities | 13,000 | $ 1,931,000 | |||||
Build-to-suit lease asset | 8,651,000 | ||||||
Build-to-suit lease obligation | $ 7,324,000 | ||||||
Operating lease ROU assets | 9,501,000 | 9,501,000 | |||||
Operating lease obligation | 11,500,000 | 11,500,000 | |||||
ASU 2016-02 [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Operating lease ROU assets | $ 10,400,000 | ||||||
Leasehold improvements | 2,100,000 | ||||||
Operating lease obligation | 12,600,000 | ||||||
ASU 2016-02 [Member] | Restatement Adjustment [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accumulated deficit | 1,300,000 | ||||||
Cash flows from investing activities | (1,900,000) | ||||||
Cash flows from financing activities | $ 1,900,000 | ||||||
Deferred rent | (100,000) | ||||||
ASU 2016-02 [Member] | Restatement Adjustment [Member] | 1020 Marsh Road, Menlo Park, California [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Build-to-suit lease asset | (8,600,000) | ||||||
Build-to-suit lease obligation | $ (7,300,000) | ||||||
Cancer Prevention & Research Institute of Texas [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Revenue from product development award | $ 20,000,000 | ||||||
Cancer Prevention & Research Institute of Texas [Member] | Aravive Biologics [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Revenue from product development award | $ 4,800,000 | ||||||
Type of Revenue [Extensible List] | us-gaap:GrantMember | ||||||
Grant [Member] | Cancer Prevention & Research Institute of Texas [Member] | Aravive Biologics [Member] | Prepaids and Other Current Assets [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Unbilled receivable | $ 2,000,000 | $ 2,000,000 | |||||
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 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 941 | $ 2,155 | $ 1,989 | $ 4,975 |
Research and development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 112 | 877 | 198 | 1,759 |
General and administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 829 | $ 1,278 | $ 1,791 | $ 3,216 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Prepaid Expense And Other Assets [Abstract] | ||
Preclinical and clinical | $ 745 | $ 416 |
Lease receivable | 906 | 606 |
Unbilled receivable from CPRIT | 2,000 | |
Other | 16 | 16 |
Total | $ 3,667 | $ 1,038 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, net (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,116 | $ 1,576 |
Less: Accumulated depreciation and amortization | (2,120) | (1,544) |
Property and equipment, net | 1,996 | 32 |
Equipment and Furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,442 | 1,442 |
Buildings, Leasehold and Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,674 | $ 134 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||||||
Depreciation expense | $ 100 | $ 100 | $ 200 | $ 200 | ||
Accumulated depreciation | $ 2,120 | $ 2,120 | $ 1,544 | |||
ASU 2016-02 [Member] | Leasehold Improvements [Member] | 1020 Marsh Road, Menlo Park, California [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Accumulated depreciation | $ 500 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Payroll and related | $ 800 | $ 509 |
Preclinical and clinical | 600 | 563 |
Other | 293 | |
Total | $ 1,400 | $ 1,365 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 36,363 | $ 48,389 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 36,363 | $ 48,389 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018ft² | Aug. 01, 2018USD ($) | Mar. 31, 2017ft²Lease | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lessee Lease Description [Line Items] | |||||
Number of lease renewal option | Lease | 1 | ||||
Operating lease costs | $ 0.5 | $ 1.1 | |||
Cash paid for measurement of lease obligations for operating cash flows from operating leases | $ 1.3 | ||||
Weighted average remaining lease term | 5 years 7 months 6 days | 5 years 7 months 6 days | |||
Weighted average discount rate | 7.75% | 7.75% | |||
1020 Marsh Road, Menlo Park, California [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating facility lease area | ft² | 34,500 | ||||
Lease commencement date | August 2017 | ||||
Operating facility lease term | 87 months | ||||
Lease agreement, one renewal option term | 5 years | ||||
1020 Marsh Road, Menlo Park, California [Member] | Sublease Agreement [Member] | EVA Automation, Inc [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Lease commencement date | October 1, 2018 | ||||
Operating facility lease term | 72 months | ||||
Abatement of base rent lease payment | $ 0.9 | ||||
Operating lease abatement term | 5 months | ||||
Operating lease payments receivable | $ 0.6 | $ 1.3 | |||
Cash received from sublease | $ 0.8 | ||||
2479 E. Bayshore Blvd, Palo Alto, California [Member] | Sublease Agreement [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating facility lease area | ft² | 4,240 | ||||
Lease commencement date | October 2018 | ||||
Lease expires date | Aug. 31, 2020 |
Leases - Summary of Minimum Lea
Leases - Summary of Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (6 months remaining) | $ 1,336 |
2020 | 2,668 |
2021 | 2,618 |
2022 | 2,697 |
2023 | 2,777 |
Thereafter | 2,373 |
Total operating lease payments | 14,469 |
Less imputed interest | (2,969) |
Total operating lease obligations | 11,500 |
Less current operating lease obligations | (2,505) |
Noncurrent operating lease obligations | $ 8,995 |
Leases - Schedule of Future Sub
Leases - Schedule of Future Sublease Income Term (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (6 months remaining) | $ 1,258 |
2020 | 2,563 |
2021 | 2,628 |
2022 | 2,695 |
2023 | 2,764 |
Thereafter | 2,355 |
Total | $ 14,263 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | ||
Other potential commitments | $ 10 | $ 10 |
Termination effective date | Aug. 26, 2019 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Commitment to make development and sales-related milestone payments | $ 30 | $ 30 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Oct. 12, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 941,000 | $ 2,155,000 | $ 1,989,000 | $ 4,975,000 | |
Restricted stock unit remaining weighted average period | 7 years 1 month 6 days | ||||
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 | $ 4.69 | ||||
Tax benefits realized from options and other share-based payment arrangements | $ 0 | ||||
Weighted-average remaining vesting period | 3 years 4 months 24 days | ||||
Unrecognized employee stock-based compensation | 2,800,000 | $ 2,800,000 | |||
Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 400,000 | $ 700,000 | 800,000 | $ 1,900,000 | |
Approximate compensation expenses | $ 1,500,000 | ||||
Restricted stock unit remaining weighted average period | 1 year 7 months 6 days | ||||
2014 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 723,462 | 723,462 | |||
Percentage of common stock issued and outstanding increase annually | 4.50% | ||||
Employee Stock Purchase Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of common stock issued and outstanding increase annually | 1.00% | ||||
Number of shares reserved | 150,000 | 150,000 | |||
Additional shares issued | 300,000 | ||||
2010 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 108,839 | 108,839 | |||
Number of shares reserved | 1,368,060 | ||||
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. | ||||
Options expiration period | 10 years | ||||
Options vesting period | 3 years | ||||
Employee service term for options granted | 1 year | ||||
2010 Plan [Member] | After One Year of Service [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options vested percentage | 25.00% | ||||
2017 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 551,133 | 551,133 | |||
Number of shares reserved | 1,051,544 | ||||
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. | ||||
Options expiration period | 10 years | ||||
Options vesting period | 3 years | ||||
Employee service term for options granted | 1 year | ||||
2017 Plan [Member] | After One Year of Service [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options vested percentage | 25.00% |
Stock Based Awards - Summary of
Stock Based Awards - Summary of Stock Options Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019 | |
Number of Shares | |
Number of Shares, Beginning balance | 1,515,923 |
Number of Shares, Options granted | 438,328 |
Number of Shares, Options cancelled | (97,382) |
Number of Shares, Options exercised | (2,000) |
Number of Shares, Ending balance | 1,854,869 |
Number of Shares, Outstanding and expected to vest | 1,821,599 |
Number of Shares, Exercisable | 1,464,578 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Beginning balance | $ 18.65 |
Weighted Average Exercise Price, Options granted | 5.53 |
Weighted Average Exercise Price, Options cancelled | 96.15 |
Weighted Average Exercise Price, Options exercised | 0.66 |
Weighted Average Exercise Price, Ending balance | 11.48 |
Weighted Average Exercise Price, Outstanding and expected to vest | 11.55 |
Weighted Average Exercise Price, Exercisable | $ 11.86 |
Weighted Average Remaining Contractual Life (in years) | |
Weighted Average Remaining Contractual Life (in years) | 7 years 1 month 6 days |
Weighted Average Remaining Contractual Life, Outstanding and expected to vest | 7 years 1 month 6 days |
Weighted Average Remaining Contractual Life, Exercisable | 6 years 6 months |
Aggregate Intrinsic Value, Options outstanding | $ 6,804 |
Aggregate Intrinsic Value, Outstanding and expected to vest | 6,796 |
Aggregate Intrinsic Value, Exercisable | $ 6,692 |
Stockholder's Equity - Summary
Stockholder's Equity - Summary of Fair Value of Employee Stock Options (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Expected volatility | 111.00% |
Risk-free interest rate | 2.50% |
Dividend yield | 0.00% |
Expected life (in years) | 6 years |
Net Loss per Share of Common _3
Net Loss per Share of Common Stock - Summary of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (3,044) | $ (4,704) | $ (9,848) | $ (8,981) | $ (7,748) | $ (18,829) |
Basic and diluted net loss per common share | $ (0.27) | $ (1.64) | $ (0.69) | $ (3.14) | ||
Weighted-average common shares used to compute basic and diluted net loss per share | 11,280 | 6,023 | 11,277 | 6,002 |