Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 09, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Kindred Biosciences, Inc. | ||
Entity Central Index Key | 1561743 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 19,724,482 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $195.50 |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $12,969 | $65,329 |
Short-term investments | 88,058 | 0 |
Prepaid expenses and other | 477 | 148 |
Total current assets | 101,504 | 65,477 |
Property and equipment, net | 394 | 12 |
Other assets | 22 | 0 |
Total assets | 101,920 | 65,489 |
Current liabilities: | ||
Accounts payable | 420 | 689 |
Accrued compensation | 1,457 | 635 |
Accrued liabilities | 975 | 886 |
Total current liabilities | 2,852 | 2,210 |
Long-term liability | 44 | 0 |
Total liabilities | 2,896 | 2,210 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock; $0.0001 par value; 100,000,000 shares authorized; 19,724,482 shares and 16,214,620 shares issued and outstanding at December 31, 2014 and 2013, respectively | 2 | 2 |
Additional paid-in capital | 130,521 | 67,610 |
Accumulated other comprehensive loss | -27 | 0 |
Accumulated deficit | -31,472 | -4,333 |
Total stockholders’ equity | 99,024 | 63,279 |
Total liabilities and stockholders’ equity | $101,920 | $65,489 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,724,482 | 16,214,620 |
Common stock, shares outstanding | 19,724,482 | 16,214,620 |
Statements_of_Operations_and_C
Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Operating expenses: | |||||||||||
Research and development | $4,802 | $3,755 | $5,639 | $4,498 | $1,746 | $953 | $300 | $141 | $75 | $18,694 | $3,140 |
General and administrative | 2,014 | 2,342 | 2,504 | 1,679 | 641 | 259 | 96 | 83 | 45 | 8,539 | 1,079 |
Total operating expenses | 6,816 | 6,097 | 8,143 | 6,177 | 2,387 | 1,212 | 396 | 224 | 120 | 27,233 | 4,219 |
Loss from operations | -6,816 | -6,097 | -8,143 | -6,177 | -2,387 | -1,212 | -396 | -224 | -120 | -27,233 | -4,219 |
Interest and other income, net | 27 | 25 | 33 | 9 | 4 | 2 | 0 | 0 | 0 | 94 | 6 |
Net loss | -6,789 | -6,072 | -8,110 | -6,168 | -2,383 | -1,210 | -396 | -224 | -120 | -27,139 | -4,213 |
Change in unrealized losses on investments | 0 | -27 | 0 | ||||||||
Comprehensive loss | ($120) | ($27,166) | ($4,213) | ||||||||
Net loss per share, basic and diluted | ($0.34) | ($0.31) | ($0.42) | ($0.38) | ($0.40) | ($0.40) | ($0.13) | ($0.07) | ($0.06) | ($1.44) | ($1.13) |
Weighted average common shares outstanding, basic and diluted | 19,719 | 19,713 | 19,426 | 16,222 | 5,899 | 3,005 | 3,000 | 3,000 | 2,113 | 18,782 | 3,732 |
Statements_of_Changes_in_Conve
Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Series AA Preferred Stock | Series A-1 Preferred Stock | Series A-1A Preferred Stock |
Preferred Stock | Preferred Stock | Preferred Stock | ||||||
Beginning balance at Sep. 24, 2012 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Beginning balance, shares at Sep. 24, 2012 | 0 | 0 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of stock | 0 | 977,000 | ||||||
Issuance of stock, shares | 3,000,000 | 990,000 | ||||||
Exchange of note payable for Series AA convertible preferred stock | 10,000 | |||||||
Exchange of note payable for Series AA convertible preferred stock, shares | 10,000 | |||||||
Net loss | -120,000 | -120,000 | ||||||
Change in unrealized loss on available for sale securities | 0 | |||||||
Total comprehensive loss | -120,000 | |||||||
Ending balance at Dec. 31, 2012 | -120,000 | 0 | 0 | 0 | -120,000 | 987,000 | 0 | 0 |
Ending balance, shares at Dec. 31, 2012 | 3,000,000 | 1,000,000 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of stock | 54,872,000 | 1,000 | 54,871,000 | 15,000 | 5,843,000 | 5,144,000 | ||
Issuance of stock, shares | 8,625,000 | 15,000 | 1,850,000 | 1,650,000 | ||||
Issuance of stock for services | 5,000 | 10,000 | 25,000 | |||||
Issuance of stock for services, shares | 12,000 | 12,000 | 32,000 | 78,000 | ||||
Exercise of common stock options | 11,000 | 11,000 | ||||||
Exercise of common stock options, shares | 34,225 | 34,000 | ||||||
Conversion of Series AA, A-1 and A-1A preferred stock to common stock in connection with initial public offering | 12,099,000 | 1,000 | 12,098,000 | -1,002,000 | -5,875,000 | -5,222,000 | ||
Conversion of Series AA, A-1 and A-1A preferred stock to common stock in connection with initial public offering, shares | 4,550,000 | -1,015,000 | -1,860,000 | -1,675,000 | ||||
Stock-based compensation | 618,000 | 618,000 | ||||||
Net loss | -4,213,000 | -4,213,000 | ||||||
Change in unrealized loss on available for sale securities | 0 | |||||||
Total comprehensive loss | -4,213,000 | |||||||
Ending balance at Dec. 31, 2013 | 63,279,000 | 2,000 | 67,610,000 | -4,333,000 | 0 | 0 | 0 | |
Ending balance, shares at Dec. 31, 2013 | 16,214,620 | 16,214,000 | 0 | 0 | 0 | |||
Beginning balance at Nov. 30, 2013 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of stock, shares | 8,625,000 | |||||||
Ending balance at Dec. 31, 2013 | 63,279,000 | 2,000 | 67,610,000 | 0 | -4,333,000 | |||
Ending balance, shares at Dec. 31, 2013 | 16,214,620 | 16,214,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of stock | 58,065,000 | 58,065,000 | ||||||
Issuance of stock, shares | 3,450,000 | |||||||
Exercise of common stock options | 121,000 | 121,000 | ||||||
Exercise of common stock options, shares | 56,112 | 56,000 | ||||||
Stock-based compensation | 4,725,000 | 4,725,000 | ||||||
Net loss | -27,139,000 | -27,139,000 | ||||||
Change in unrealized loss on available for sale securities | -27,000 | -27,000 | ||||||
Total comprehensive loss | -27,166,000 | |||||||
Vesting of restricted stock | 0 | |||||||
Vesting of restricted stock, shares | 4,000 | |||||||
Ending balance at Dec. 31, 2014 | $99,024,000 | $2,000 | $130,521,000 | ($27,000) | ($31,472,000) | $0 | $0 | $0 |
Ending balance, shares at Dec. 31, 2014 | 19,724,482 | 19,724,000 | 0 | 0 | 0 |
Statements_of_Changes_in_Conve1
Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) (USD $) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | 2 Months Ended | 1 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
Preferred Stock | Series AA Preferred Stock | ||||||||
Payments of offering costs | $13 | $13 | ||||||
Preferred Stock | Series A-1 Preferred Stock | ||||||||
Payments of offering costs | 22 | 22 | ||||||
Preferred Stock | Series A-1A Preferred Stock | ||||||||
Payments of offering costs | 88 | 88 | ||||||
Common Stock | ||||||||
Payments of offering costs | $5,504 | $4,035 | $5,504 | $4,035 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net loss | ($120,000) | ($27,139,000) | ($4,213,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation expense | 11,000 | 4,422,000 | 922,000 |
Depreciation and amortization expense | 0 | 58,000 | 3,000 |
Amortization of premium on marketable securities | 0 | 87,000 | 0 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other | 0 | -329,000 | -147,000 |
Other assets | 0 | -22,000 | 0 |
Accounts payable | 6,000 | -269,000 | 683,000 |
Due to related party | 5,000 | 0 | -5,000 |
Accrued liabilities and accrued compensation | 36,000 | 1,258,000 | 1,184,000 |
Net cash used in operating activities | -62,000 | -21,934,000 | -1,573,000 |
Cash Flows from Investing Activities | |||
Purchases of short-term investments | 0 | -145,172,000 | 0 |
Sale of short-term investments | 0 | 9,000,000 | 0 |
Maturities of short-term investments | 0 | 48,000,000 | 0 |
Purchase of property and equipment | 0 | -440,000 | -15,000 |
Net cash used in investing activities | 0 | -88,612,000 | -15,000 |
Cash Flows from Financing Activities | |||
Exercise of stock options | 0 | 121,000 | 11,000 |
Net proceeds from initial public offering | 0 | 0 | 54,871,000 |
Net proceeds from follow-on public offering | 0 | 58,065,000 | 0 |
Proceeds from note payable to related party | 10,000 | 0 | 0 |
Net cash provided by financing activities | 1,000,000 | 58,186,000 | 65,979,000 |
Net change in cash and cash equivalents | 938,000 | -52,360,000 | 64,391,000 |
Cash and cash equivalents at beginning of period | 0 | 65,329,000 | 938,000 |
Cash and cash equivalents at end of period | 938,000 | 12,969,000 | 65,329,000 |
Supplemental disclosure of non-cash financing activities: | |||
Conversion of note payable into Series AA convertible preferred stock | 10,000 | 0 | 0 |
Offering costs in connection with Series AA convertible preferred stock recorded in accrued expenses | 13,000 | 0 | 0 |
Issuance of common stock and stock options for accrued consulting expenses | 12,000 | ||
Conversion of Series AA, Series A-1 and Series A-1A preferred stock into shares of common stock | 0 | 0 | 12,099,000 |
Series AA Preferred Stock | |||
Cash Flows from Financing Activities | |||
Proceeds from issuance of convertible preferred stock | 990,000 | 0 | 0 |
Supplemental disclosure of non-cash financing activities: | |||
Issuance of convertible stock for settlement of offering costs and other legal fees | 0 | 0 | 15,000 |
Series A-1 Preferred Stock | |||
Cash Flows from Financing Activities | |||
Proceeds from issuance of convertible preferred stock | 0 | 0 | 5,865,000 |
Supplemental disclosure of non-cash financing activities: | |||
Issuance of convertible stock for settlement of offering costs and other legal fees | 0 | 0 | 32,000 |
Series A-1A Preferred Stock | |||
Cash Flows from Financing Activities | |||
Proceeds from issuance of convertible preferred stock | 0 | 0 | 5,232,000 |
Supplemental disclosure of non-cash financing activities: | |||
Issuance of convertible stock for settlement of offering costs and other legal fees | 0 | 0 | 78,000 |
Common Stock | |||
Supplemental disclosure of non-cash financing activities: | |||
Issuance of common stock and stock options for accrued consulting expenses | $0 | $303,000 | $535,000 |
Organization_and_Description_o
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business |
Kindred Biosciences, Inc. (“we”, "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. We are a biopharmaceutical company focused on saving and improving the lives of pets. Our activities since inception have consisted principally of raising capital, establishing facilities, recruiting management and technical staff and performing research and development and advancing our product candidates seeking regulatory approval. Our headquarters are in Burlingame, California. | |
We are subject to risks common to companies in the biotechnology and pharmaceutical industries. There can be no assurance that our research and development will be successfully completed, that adequate protection for our technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. We operate in an environment of substantial competition from other animal health companies. In addition, we are dependent upon the services of our employees and consultants, as well as third-party contract research organizations and manufacturers. | |
Our reference to the year 2012 is defined as the period from September 25, 2012 (inception) to December 31, 2012. | |
Liquidity | |
We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception and had an accumulated deficit of $31,472,000 as of December 31, 2014. We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of convertible preferred stock, the sale of our common stock in our initial public offering in December 2013 and the sale of our common stock in a follow-on public offering in April 2014. We might require additional capital until such time as we can generate operating revenues in excess of operating expenses. We believe our cash, cash equivalents and short-term investments of $101,027,000 at December 31, 2014 are sufficient to fund our operations for at least the next 24 months. | |
If we require additional funding for operations, we may seek such funding through public or private equity or debt financings or other sources, such as corporate collaborations and licensing arrangements. We may not be able to obtain financing on acceptable terms, or at all, and we may not be able to enter into corporate collaborations or licensing arrangements. The terms of any financing may result in dilution or otherwise adversely affect the holdings or the rights of our stockholders. If we are unable to obtain funding, we could be forced to delay, reduce or eliminate our research and development programs or commercialization efforts, which could adversely affect our business prospects. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Basis of Presentation | |
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Use of Estimates | |
The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the valuation of common stock and stock-based awards, the realization of deferred tax assets, the recoverability of long-lived assets and the accrual of research and development expenses. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates. | |
Cash, Cash Equivalents and Short-term Investments | |
We consider all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. Debt securities with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. We classify all investments as available-for-sale. Available-for-sale securities are carried at estimated fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in the accompanying balance sheets. | |
Realized gains or losses on the sale of investments are determined on a specific identification method, and such gains and losses are reflected as a component of interest income in the accompanying statements of operations and comprehensive loss. | |
Marketable securities investments are evaluated periodically for impairment. We take into account general market conditions, changes in economic environment as well as specific investment attributes, such as credit downgrade or illiquidity for each investment, the expected cash flows from the securities, our intent to sell the securities and whether or not we will be required to sell the securities before the recovery of their amortized cost, to estimate the fair value of our investments and to determine whether impairment is other than temporary. If it is determined that a decline in fair value of any investment is other than temporary, then the unrealized loss related to credit risk would be included in interest and other income, net. | |
Concentration of Credit Risk and of Significant Suppliers | |
Our financial instrument that potentially subjects us to concentrations of credit risk is cash and cash equivalents. From time to time, we maintain cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”). Primarily all of our cash and cash equivalents at December 31, 2014 were in excess of amounts insured by the FDIC. We do not believe that we are subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. | |
We are dependent on third-party manufacturers to supply products for research and development activities in our programs. In particular, we rely on a small number of manufacturers to supply us with our requirements for the active pharmaceutical ingredients, or API, and formulated drugs related to some of these programs. These programs would be adversely affected by a significant interruption in the supply of API. | |
Fair Value Measurements | |
We used the provisions of Accounting Standards Codification ("ASC') 820, “Fair Value Measurements and Disclosure", to determine the fair values of our financial and nonfinancial assets and liabilities where applicable. ASC 820 defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosure about fair value measurements. The objective of fair value measurement is to determine the price that would be received to sell the asset or paid to transfer the liability (an exit price) in an orderly transaction between market participants at the measurement date. The statement emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. To increase consistency and comparability in fair value measurement and related disclosures, this statement establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: (1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; (2) Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data; and (3) Level 3 inputs are unobservable inputs for the asset or liability that reflect the reporting entity’s own assumptions about risk and the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. | |
Government agency securities are recorded at their estimated fair value. Since these government securities generally have market prices from multiple sources and it can be difficult to select the best individual price directly from the quoted prices in the active markets, we use Level 2 inputs for the valuation of these securities. Using the Level 2 inputs, a “consensus price” or a weighted average price for each of these securities can be derived from a distribution-curve-based algorithm which includes market prices obtained from a variety of industrial standard data providers (e.g. Bloomberg), security master files from large financial institutions, and other third-party sources. | |
The carrying amount of financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities approximate fair value due to the short maturities of these financial instruments. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis (see Note 3). | |
Property and Equipment | |
Property and equipment are stated at cost less accumulated depreciation and amortization. We calculate depreciation using the straight-line method over the estimated useful lives of the assets, which range from two to five years. Expenditures for repairs and maintenance of assets are charged to expense as incurred. We amortize leasehold improvements using the straight-line method over the estimated useful lives of the respective assets or the lease term, whichever is shorter. Upon retirement or sale, the cost and related accumulated depreciation and amortization of assets disposed of are removed from the accounts and any resulting gain or loss is included in income (loss) from operations. | |
Licenses | |
The costs incurred for the rights to use licensed technologies in the research and development process, including licensing fees and milestone payments, are charged to research and development expense as incurred in situations where we have not identified an alternative future use for the acquired rights, and are capitalized in situations where we have identified an alternative future use. No costs associated with the use of licensed technologies have been capitalized to date. | |
Impairment of Long-Lived Assets | |
We review long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that we consider in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, we compare forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired assets over its fair value, determined based on discounted cash flows. To date, we have not recorded any impairment losses on long-lived assets. | |
Revenue Recognition | |
We are in the research and development stage and have not generated any revenues since inception. | |
Research and Development Costs | |
All costs of research and development are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, stock-based compensation expense, fees paid to consultants, outside service providers, professional services, travel costs and materials used in clinical trials and research and development. | |
Patent Costs | |
All patent-related costs incurred in connection with filing patent applications are recorded in research and development expenses when incurred, as recoverability of such expenditures is uncertain. | |
Stock-Based Compensation | |
Our stock-based compensation plan (see Note 9) provides for the grant of stock options, restricted common stock and stock appreciation rights. The estimated fair values of stock option grants are determined as of the date of grant using the Black-Scholes option pricing model. This method incorporates the fair value of our common stock at the date of each grant and various assumptions such as the risk-free interest rate, expected volatility based on the historic volatility of publicly-traded peer companies, expected dividend yield, and expected term of the options. The estimated fair values of restricted stock awards are determined based on the fair value of our common stock, as determined by the board of directors, on the date of grant. The estimated fair values of stock-based awards, including the effect of estimated forfeitures, are expensed over the requisite service period, which is generally the awards’ vesting period. We classify stock-based compensation expense in the statement of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified. | |
Our accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows Financial Accounting Standards Board ("FASB") guidance. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of the date on which the counterparty’s performance is complete or the date at which a commitment for performance is reached. For transactions in which the fair value of the equity instrument issued to non-employees is the more reliable measurement and a measurement date has not been reached, the fair value is re-measured at each reporting date using the Black-Scholes option pricing model. Compensation expense for these share-based awards is recognized over the term of the consulting agreement or until the award is approved and settled. | |
Income Taxes | |
We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in our tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. | |
We account for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. | |
Comprehensive Loss | |
Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses are reflected as a separate component of stockholders' equity in the accompanying balance sheets as accumulated other comprehensive loss. | |
Segment Data | |
We manage our operations as a single segment for the purposes of assessing performance and making operating decisions. We are a veterinary biotechnology company focusing on developing therapies for pets. Our chief operating decision maker is our Chief Executive Officer. All assets are held in the United States. | |
Basic and Diluted Net Loss Per Common Share | |
Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common shares, including potential dilutive shares of common stock assuming the dilutive effect of potentially dilutive securities. For periods in which we have reported a net loss, diluted net loss per common share is the same as basic net loss per common share, since the impact of the potentially dilutive securities would be anti-dilutive to the calculation of net loss per common share (see Note 13). | |
Recently Issued Accounting Pronouncements | |
On June 10, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-10, "Development Stage Entities (Topic 915) - Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation," which eliminates the concept of a development stage entity (DSE) in its entirety from current accounting guidance. A DSE is an entity devoting substantially all of its efforts to establishing a new business and for which either planned principal operations have not yet commenced or have commenced but there has been no significant revenues generated from that business. Under current guidance, DSEs are required to present inception-to-date financial information in their annual statements. We determined we were a DSE and had therefore presented inception-to-date financial information financial statements. As permitted by ASU 2014-10, we have elected to early adopt this standard, and therefore, we have not presented any inception to date financial information and we have removed all references to development stage in these financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern", which provides guidance regarding management’s responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements for each annual and interim reporting period, management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). This ASU is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We are currently evaluating the new guidance and have not determined the impact this standard may have on our financial statements. | |
We do not believe there are any other recently issued standards not yet effective that will have a material impact on our financial statements when the standards become effective. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||
We measure certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair value of these financial assets was determined based on a three-tier fair value hierarchy as described in Note 2, which prioritizes the inputs used in measuring fair value. | |||||||||||||||||
The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2014 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: | |||||||||||||||||
(In thousands) | Fair Value Measurements as of December 31, 2014 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 834 | $ | 834 | $ | — | $ | — | |||||||||
Short-term investments: | |||||||||||||||||
U.S. treasury bills | 5,998 | — | 5,998 | — | |||||||||||||
U.S. treasury bonds and notes | 82,060 | — | 82,060 | — | |||||||||||||
$ | 88,892 | $ | 834 | $ | 88,058 | $ | — | ||||||||||
The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2013 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: | |||||||||||||||||
(In thousands) | Fair Value Measurements as of December 31, 2013 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 65,310 | $ | 65,310 | $ | — | $ | — | |||||||||
$ | 65,310 | $ | 65,310 | $ | — | $ | — | ||||||||||
There were no transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy at December 31, 2014 and 2013. | |||||||||||||||||
At December 31, 2014 and 2013, we did not have any financial liabilities which were measured at fair value on a recurring basis. |
Shortterm_Investments
Short-term Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Short-term Investments | Short-term Investments | ||||||||||||||||
The fair value of available-for-sale short-term investments by type of security at December 31, 2014 were as follows: | |||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. treasury bills | $ | 5,994 | $ | 4 | $ | — | $ | 5,998 | |||||||||
U.S. treasury bonds and notes | 82,091 | — | (31 | ) | 82,060 | ||||||||||||
$ | 88,085 | $ | 4 | $ | (31 | ) | $ | 88,058 | |||||||||
We did not hold any short-term investments at December 31, 2013. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Property and Equipment, Net | Property and Equipment, Net | |||||||
Property and equipment consisted of the following as of December 31, 2014 and 2013: | ||||||||
Years Ended December 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Computer and lab equipment | $ | 359 | $ | 15 | ||||
Furniture & fixtures | 24 | — | ||||||
Leasehold improvements | 69 | — | ||||||
Total | 452 | 15 | ||||||
Less accumulated depreciation and amortization | (58 | ) | -3 | |||||
Property and equipment, net | $ | 394 | $ | 12 | ||||
Depreciation and amortization expense was $58,000 and $3,000 for the years ended December 31, 2014 and 2013, respectively. We had no capital expenditures or depreciation in 2012. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Liabilities | Accrued Liabilities | |||||||
Accrued liabilities consisted of the following as of December 31, 2014 and 2013: | ||||||||
(In thousands) | December 31, 2014 | December 31, 2013 | ||||||
Accrued consulting | $ | — | $ | 303 | ||||
Accrued research and development costs | 715 | 159 | ||||||
Accrued offering costs | — | 381 | ||||||
Accrued other | 247 | 43 | ||||||
Deferred rent | 57 | — | ||||||
1,019 | 886 | |||||||
Less current portion | (975 | ) | (886 | ) | ||||
Long-term liability (deferred rent) | $ | 44 | $ | — | ||||
Convertible_Preferred_Stock
Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Convertible Preferred Stock | Convertible Preferred Stock |
Prior to our initial public offering in December 2013, our Certificate of Incorporation, as amended and restated, authorized us to issue 15,000,000 shares of $0.0001 par value preferred stock. Through December 16, 2013, we had issued 1,015,000 shares of Series AA convertible preferred stock (“Series AA Preferred Stock”), 1,860,204 shares of Series A-1 convertible preferred stock (“Series A-1 Preferred Stock) and 1,675,002 shares of Series A-1A convertible preferred stock (“Series A-1A Preferred Stock) (collectively, the “Preferred Stock”). In connection with our initial public offering in December 2013, all outstanding shares of the Preferred Stock automatically converted into 4,550,195 (net of an adjustment for 11 fractional shares) shares of our common stock. | |
During November 2012, we issued 990,000 shares of Series AA Preferred Stock at an issuance price equal to $1.00 per share and received gross proceeds of $990,000. In connection with the Series AA Preferred Stock financing, we incurred offering costs of $13,000, which were recorded as a reduction of the gross proceeds. As of December 31, 2012, the offering costs of $13,000 were included in accrued expenses. | |
In November 2012, our co-founder and current President and Chief Executive Officer (“CEO”) exchanged a $10,000 note payable owed to him by us (see Note 11) into 10,000 shares of our Series AA Preferred Stock. | |
In November 2013, we issued 15,000 shares of Series AA Preferred Stock for payment of accrued offering costs. | |
In connection with the Series AA Preferred Stock offering, each holder of at least 10,000 shares of Series AA Preferred Stock or shares of our common stock issued upon conversion of the Series AA Preferred Stock was granted the right of first refusal to purchase his pro rata share of new securities (any capital stock, including common stock and preferred stock, convertible securities, options or warrants to purchase capital stock) which we may, from time to time, propose to sell and issue. Certain securities transactions were excluded from this right as provided in the Series AA Investors’ Rights Agreement. | |
In June 2013, we commenced an offering for the sale and issuance of up to 2,000,000 shares of Series A-1 Preferred Stock at an issuance price equal to $3.17 per share. During June through September 2013, we received gross proceeds of $5,865,000 related to the issuance of 1,850,204 shares of the Series A-1 Preferred Stock. In connection with the Series A-1 Preferred Stock financing, we incurred offering costs of $22,000 which were recorded as a reduction of the gross proceeds. In June 2013, we issued 5,000 shares of the Series A-1 Preferred Stock valued at $16,000 on the date of issuance for partial payment of the Series A-1 Preferred Stock offering costs. In August 2013, we issued an additional 5,000 shares of the Series A-1 Preferred Stock valued at $16,000 on the date of issuance for payment of the remaining Series A-1 Preferred Stock offering costs and other legal fees. | |
In connection with the sale and issuance of the Series A-1 Preferred Stock, the holders of the Series AA Preferred Stock waived their right of first refusal under the Series AA Investors’ Rights Agreement with respect to any sale by us of a proposed future series of preferred stock (“Series A-2 Preferred Stock”) on or before June 30, 2014. Additionally, each holder of at least 10,000 shares of Series A-1 Preferred Stock or shares of our common stock issued upon conversion of the Series A-1 Preferred Stock was granted the right of first refusal to purchase his pro rata share of new securities (any capital stock, including common stock and preferred stock, convertible securities, options or warrants to purchase capital stock) which we may, from time to time, propose to sell and issue. Certain securities transactions were excluded from this right as provided in the Series A-1 Investors’ Rights Agreement. | |
Pursuant to the terms of the Series A-1 Preferred Stock Purchase Agreement, if shares of the Series A-2 Preferred Stock were issued prior to June 30, 2014, and the rights, preferences, or privileges of the Series A-2 Preferred Stock were more favorable to the holders of those shares than the terms of the Series A-1 Preferred Stock, then the rights, preferences and privileges of the Series A-1 Preferred Stock would be amended to be substantially the same of those of the Series A-2 Preferred Stock. In addition, if shares of the Series A-2 Preferred Stock were issued prior to June 30, 2014 and the purchase price of the Series A-2 Preferred Stock was such that the purchase price of the Series A-1 Preferred Stock was not at least 10% lower than the purchase price of the Series A-2 Preferred Stock, then additional shares of Series A-1 Preferred Stock would be issued to the Series A-1 Preferred Stockholders so that the effective price of the Series A-1 Preferred Stock was at least 10% lower than Series A-2 Preferred Stock. We determined that the value of these embedded derivative features was not significant. Prior to the automatic conversion of the Series A-1 Preferred Stock in December 2013 in connection with our initial public offering, no shares of Series A-2 Preferred Stock were authorized by us. | |
In August 2013, we commenced an offering for the sale and issuance of up to 2,000,000 shares of Series A-1A Preferred Stock at an issuance price equal to $3.17 per share. In August and September 2013, we received gross proceeds of $5,232,000 related to the issuance of 1,650,396 shares of the Series A-1A Preferred Stock. In connection with the Series A-1A Preferred Stock financing, we incurred offering costs of $88,000 which were recorded as a reduction of the gross proceeds. In August 2013, we issued 24,606 shares of the Series A-1A Preferred Stock valued at $78,000 on the date of issuance for payment of certain Series A-1A offering costs. | |
In connection with the Series A-1A Preferred Stock offering, each holder of at least 10,000 shares of Series A-1A Preferred Stock or shares of our common stock issued upon conversion of the Series A-1A Preferred Stock was granted the right of first refusal to purchase his pro rata share of new securities (any capital stock, including common stock and preferred stock, convertible securities, options or warrants to purchase capital stock) which we may, from time to time, propose to sell and issue. Certain securities transactions were excluded from this right as provided in the Series A-1A Investors’ Rights Agreement. In addition, holders of the Series A-1A Preferred Stock waived their right of first refusal under the Series A-1A Investors’ Rights Agreement with respect to any sale by us of Series A-2 Preferred Stock on or before June 30, 2014. | |
Pursuant to the terms of the Series A-1A Preferred Stock Purchase Agreement, if shares of the Series A-2 Preferred Stock were issued prior to June 30, 2014, and the rights, preferences, or privileges of the Series A-2 Preferred Stock were more favorable to the holders of those shares than the terms of the Series A-1A Preferred Stock, then the rights, preferences and privileges of the Series A-1A Preferred Stock would be amended to be substantially the same of those of the Series A-2 Preferred Stock. In addition, if shares of the Series A-2 Preferred Stock were issued prior to June 30, 2014 and the purchase price of the Series A-2 Preferred Stock was such that the purchase price of the Series A-1A Preferred Stock was not at least 10% lower than the purchase price of the Series A-2 Preferred Stock, then additional shares of Series A-1A Preferred Stock would be issued to the Series A-1A Preferred Stockholders so that the effective price of the Series A-1A Preferred Stock was at least 10% lower than Series A-2 Preferred Stock. We determined that the value of these embedded derivative features was not significant. Prior to the automatic conversion of the Series A-1A Preferred Stock in December 2013 in connection with our initial public offering, no shares of Series A-2 Preferred Stock were authorized by us. | |
The holders of the Preferred Stock had the following rights and preferences: | |
Voting Rights | |
Except as otherwise provided in our Certificate of Incorporation, as amended and restated, or as required by law, holders of the Preferred Stock shall vote together and not as a separate class. Each holder of the Preferred Stock shall be entitled to the number of votes equal to the number of shares of common stock into which the shares of the Preferred Stock held by such holder could be converted as of the record date. The holders of shares of the Preferred Stock shall be entitled to vote on all matters on which the common stock shall be entitled to vote. | |
Holders of the Preferred Stock shall be entitled to notice of any stockholders’ meeting in accordance with our Bylaws. Fractional votes shall not, however, be permitted and any fractional voting rights resulting from the above formula (after aggregating all shares into which shares of Preferred Stock held by each holder could be converted), shall be disregarded. | |
Liquidation Preference | |
In the event of any liquidation, dissolution or winding up of our company, either voluntary or involuntary, the holder of the Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any of our assets to the holders of the common stock by reason of their ownership of such stock, an amount per share equal to $1 per share for the Series AA Preferred Stock and $3.17 per share for the Series A-1 Preferred Stock and Series A-1A Preferred Stock, or such lesser amount as may be approved by the holders of the majority of the outstanding shares of the Preferred Stock. If upon liquidation, dissolution or winding up of our company, our assets legally available for distribution to the holders of the Preferred Stock are insufficient to permit the payment in full of the liquidation preference above, then our entire assets legally available for distribution shall be distributed with equal priority and pro rata among the holders of the Preferred Stock in proportion to the full amounts they would otherwise be entitled to receive. | |
After the payment or setting aside for payment to the holders of Preferred Stock of the full amounts of the liquidation preferences, our entire remaining assets legally available for distribution shall be distributed pro rata to holders of our common stock in proportion to the number of shares of common stock held by them. | |
Conversion Rights | |
Optional Conversion | |
The shares of Preferred Stock are convertible into shares of common stock, at the option of the holder, at any time after the date of issuance. Each share of Preferred Stock will be converted into shares of common stock at the applicable Series AA, Series A-1 and Series A-1A Preferred Stock conversion rate then in effect, which is calculated by dividing the original issue price by the respective conversion price. The conversion prices for the Series AA, Series A-1 and Series A-1A Preferred Stock are equal to $1.00 per share, $3.17 per share and $3.17 per share, respectively, and are subject to adjustment as set forth in our Certificate of Incorporation, as amended and restated. In connection with our initial public offering in December 2013, all outstanding shares of the Series AA, Series A-1 and Series A-1A Preferred Stock were converted into shares of common stock on a 1-for-1 basis. | |
Automatic Conversion | |
Each share of Preferred Stock automatically converted into shares of common stock upon us becoming a public company in connection with our initial public offering. | |
Redemption Rights | |
There were no redemption rights afforded the holders of Preferred Stock. Upon certain change in control events that were outside of our control, including liquidation, sale or transfer of control of our company, holders of the Preferred Stock could cause its redemption. Therefore, prior to the automatic conversion of the Preferred Stock in connection with our initial public offering in December 2013, the Preferred Stock was classified outside of stockholders’ equity (deficit) in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities. | |
Reissuance | |
All shares of Preferred Stock that were converted into common stock were canceled and will not be reissued by us. | |
In December 2013, we amended our Certificate of Incorporation to authorize the issuance of 10,000,000 shares of $0.0001 par value preferred stock. At December 31, 2014, all shares of preferred stock are undesignated and unissued. |
Common_Stock
Common Stock | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Common Stock | Common Stock |
Our Certificate of Incorporation, as amended and restated, authorizes us to issue 100,000,000 shares of $0.0001 par value common stock. | |
Each share of common stock entitles the holder to one vote on all matters submitted to a vote of our stockholders, provided, however, that, except as otherwise required by law, holders of common stock shall not be entitled to vote on any amendment to the Certificate of Incorporation that relates solely to the terms of one or more outstanding shares of preferred stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other series, to vote thereon pursuant to the Certificate of Incorporation or pursuant to the Delaware General Corporation Law. | |
In September and October 2012, we issued an aggregate of 3,000,000 shares of common stock to the co-founder and current President and CEO for total cash consideration of $300. | |
In August 2013, we issued 5,200 shares of restricted common stock at a price of $2.27 per share to a consultant for services rendered and recorded stock-based compensation expense of $12,000. | |
In 2013, we issued 34,225 shares of common stock upon exercise of stock options at a price of $0.32 per share for total proceeds of $11,000. | |
In December 2013, we completed an initial public offering and issued 8,625,000 shares of common stock at $7.00 per share resulting in net proceeds of $54,871,000 after deduction of underwriting commissions and offering expenses of $5,504,000. | |
In April 2014, we completed a follow-on public offering and issued 3,450,000 shares of common stock at $18.00 per share resulting in net proceeds of $58,065,000 after deduction of underwriting commissions and offering expenses of $4,035,000. | |
In 2014, we issued 56,112 shares of common stock upon exercise of stock options at prices ranging from $0.32 to $15.41 per share for total proceeds of $121,000. | |
In 2014, we issued 3,750 shares of restricted common stock to a consultant for services rendered and recorded stock-based compensation expense of $61,000. | |
As of December 31, 2014, we had 19,724,482 shares of common stock outstanding. |
StockBased_Awards
Stock-Based Awards | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Stock-Based Awards | Stock-Based Awards | |||||||||||||||
On November 4, 2012, our board of directors adopted the Kindred Biosciences, Inc. 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan provides for our board of directors to grant incentive stock options or non- qualified stock options for the purchase of common stock, to issue or sell shares of restricted common stock and to grant stock appreciation rights (“SARs”) to our employees, directors, consultants and advisers of the Company. Pursuant to the terms of the 2012 Plan, no options or SARs shall be granted under the 2012 Plan after 10 years from the date of adoption of the 2012 Plan. We have reserved 4,000,000 shares of our common stock for issuance under the 2012 Plan. | ||||||||||||||||
Retrospective Reassessment of the Fair Value of Common Stock | ||||||||||||||||
As required by the 2012 Plan, the exercise price for awards granted is not to be less than the fair market value of our common stock as of the date of grant. We value shares of common stock by taking into consideration our most recently available valuation of common stock performed by management and the board of directors, as well as additional factors which may have changed since the date of the most recent contemporaneous valuations through the date of grant. On February 4, 2013, May 9, 2013, August 29, 2013 and September 12, 2013, the board of directors granted stock options for the purchase of 576,525 shares, 154,793 shares, 412,580 shares, and 29,000 shares, respectively, of our common stock with weighted-average exercise prices of $0.35 per share, $0.32 per share, $0.90 per share and $0.90 per share, respectively. On November 11, 2013, our board of directors, with the consent of the affected employee and director option holders, approved an increase from $0.90 per share to $1.37 per share in the exercise price of 285,092 employee and director options granted in August and September 2013. The fair value of our common stock on the February 4, 2013 and May 9, 2013 grant dates was $0.32 per share, and on the August 29, 2013 and September 12, 2013 grant dates was $1.37 per share, as determined by our board of directors. In connection with the December 2013 initial public offering of our common stock, we reexamined, for financial reporting purposes only, the fair value of our common stock. In connection with the reexamination, we determined that retrospective valuations of the fair value of common stock as of February 4, 2013, May 9, 2013, August 29, 2013 and September 12, 2013 were appropriate due to acceleration of the timeframe to a potential liquidity event and the proposed initial public offering, which had not been contemplated in the determination of the original fair values on these dates. Based on this analysis, the fair value of common stock remained unchanged for the February 4, 2013 and May 9, 2013 grant dates. Based on this analysis, the fair value of the common stock on the August 29, 2013 and September 12, 2013 grant dates was determined to be $2.27 per share, which we used to value the stock-based compensation expense for these awards. | ||||||||||||||||
Stock Options | ||||||||||||||||
Our board of directors determines the exercise price and vesting period of all stock options. The exercise price of the stock options will be no less than 100% of the fair value per share of our common stock on the grant date. If a person owns capital stock representing more than 10% of all classes of our stock, the exercise price will be not less than 110% of the fair market value on the date of grant. Options are vested over variable periods, generally ranging from one to four years, and expire not more than 10 years after the date of grant. As of December 31, 2014, there were 2,329,415 option shares outstanding and 1,571,298 shares available for future grants under the 2012 Plan. | ||||||||||||||||
During the years ended December 31, 2014 and 2013, we granted under the 2012 Plan stock options for the purchase of 1,127,113 and 1,410,139 shares of common stock, respectively, to employees, non-employee consultants and directors. No stock options were granted in 2012. | ||||||||||||||||
2014 Employee Stock Purchase Plan | ||||||||||||||||
In December 2014, our board of directors adopted the Kindred Biosciences, Inc. 2014 Employee Stock Purchase Plan (the “Purchase Plan”). We reserved a total of 200,000 shares of our common stock for issuance under the Purchase Plan. The Purchase Plan permits eligible employees to purchase common stock at a discount through payroll deductions during defined six-month consecutive offering periods beginning on December 1. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock on the first day of the offering or 85% of the fair market value of our common stock on the purchase date. As of December 31, 2014, there were no issuances under the Purchase Plan. | ||||||||||||||||
Reserved Shares | ||||||||||||||||
At December 31, 2014, shares of common stock reserved for future issuance inclusive of outstanding option shares are as follows: | ||||||||||||||||
2012 Equity Incentive Plan | 3,900,713 | |||||||||||||||
2014 Employee Stock Purchase Plan | 200,000 | |||||||||||||||
4,100,713 | ||||||||||||||||
Stock Option Plan Activity Summary | ||||||||||||||||
A summary of activity under our stock option plans is as follows: | ||||||||||||||||
Shares Available For Grant | Shares Issuable Under Options | Weighted Average Exercise Price | Weighted Average Remaining ContractualTerm (In Years) | Aggregate Intrinsic Value | ||||||||||||
Balance, December 31, 2012 | 4,000,000 | — | ||||||||||||||
Granted | -1,410,139 | 1,410,139 | $ | 1.31 | ||||||||||||
Exercised | -34,225 | $ | 0.32 | |||||||||||||
Restricted stock grants | (10,200 | ) | — | |||||||||||||
Balance, December 31, 2013 | 2,579,661 | 1,375,914 | $ | 1.33 | ||||||||||||
Granted | (1,127,113 | ) | 1,127,113 | $ | 16.23 | |||||||||||
Exercised | (56,112 | ) | $ | 2.17 | ||||||||||||
Forfeited - restricted stock and options | 118,750 | (117,500 | ) | $ | 19.57 | |||||||||||
Balance, December 31, 2014 | 1,571,298 | 2,329,415 | $ | 7.6 | 8.8 | $ | 8,100,000 | |||||||||
Options vested and expected to vest, December 31, 2014 | 2,329,415 | $ | 7.6 | 8.8 | $ | 8,100,000 | ||||||||||
Options exercisable, December 31, 2014 | 953,327 | $ | 3.8 | 8.6 | $ | 4,930,000 | ||||||||||
The aggregate intrinsic value of options is calculated as the difference between the exercise price of options and the fair value of our common stock for those options that had exercise prices lower than the fair value of our common stock on December 31, 2014. | ||||||||||||||||
The aggregate intrinsic value of stock options exercised during the years ended December 31, 2014 and 2013 was $774,000 and $108,000, respectively. No options were exercised during the period ended December 31, 2012. | ||||||||||||||||
We received proceeds of $121,000 and $11,000 from the exercise of common stock options during the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||
The weighted-average grant date fair value of options granted during the years ended December 31, 2014 and 2013 was $12.09 and $1.50 per share, respectively. | ||||||||||||||||
Restricted Stock | ||||||||||||||||
During the year ended December 31, 2013, we granted 10,200 shares of restricted common stock to consultants. The weighted average fair value of the restricted shares was $6.63. As of December 31, 2014, there were no unvested shares of restricted common stock. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
We recognize stock-based compensation expense for only the portion of awards that are expected to vest. In developing a forfeiture rate estimate, we have considered our historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual forfeiture rate is materially different from our estimate, we may be required to record adjustments to stock-based compensation expense in future periods. | ||||||||||||||||
We value our common stock by taking into consideration its most recently available valuation of common stock performed by management and the board of directors, as well as additional factors which may have changed from the date of the most recent contemporaneous valuation through the grant date. | ||||||||||||||||
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. We historically have been a private company that lacks company-specific historical and implied volatility information. Therefore, we estimate the expected stock volatility based on the historical volatility of publicly traded peer companies and expect to continue to do so until such time as we have adequate historical data regarding the volatility of our own traded stock price. The expected term of our common stock options has been determined utilizing the “simplified” method as we have insufficient historical experience for options grants overall, rendering existing historical experience irrelevant to expectations for current grants. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that we have never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. | ||||||||||||||||
Total stock-based compensation expense, related to all of our share-based payment awards, is comprised of the following: | ||||||||||||||||
(In thousands) | Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Research and development | $ | 1,453 | $ | 827 | $ | 11 | ||||||||||
General and administrative | 2,969 | 95 | — | |||||||||||||
$ | 4,422 | $ | 922 | $ | 11 | |||||||||||
Total stock-based compensation expense included stock options and restricted stock for the years ended December 31, 2014, 2013 and 2012. We recorded accrued expenses of $303,000 and $11,000 at December 31, 2013 and 2012, respectively, for those options that have been earned but not granted and approved by the board of directors as of these dates. There were no such accruals in 2014. | ||||||||||||||||
We had an aggregate of approximately $8,693,000 of unrecognized stock-based compensation expense for options outstanding as of December 31, 2014, which is expected to be recognized over a weighted average period of 3.1 years. | ||||||||||||||||
Valuation assumptions | ||||||||||||||||
The relevant data used to determine the value of stock options earned or granted is as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted average risk-free interest rate | 1.70% | 1.33% | 0.62%-0.72% | |||||||||||||
Weighted average expected term (in years) | 6.4 | 6.6 | 10 | |||||||||||||
Weighted average expected volatility | 91.30% | 85.20% | 90% | |||||||||||||
Weighted average expected dividend yield | — | — | — |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | Commitments and Contingencies | ||||
Operating Lease | |||||
In March 2014, we entered into a license agreement under which we made an up-front payment and were obligated to make annual payments and, subject to certain terms and conditions, milestone payments upon achievement of development milestones and a royalty based on sales of products developed under the agreement. In January 2015, we terminated this agreement. | |||||
For the period from September 25, 2012 (inception) through March 2014, we leased our office space on a month-to-month basis. In April 2014, we entered into new non-cancelable operating leases for laboratory space and office space through November 2017. Rent expense for the years ended December 31, 2014 and 2013 were $162,000 and $6,000, respectively. Rent expense for the year ended December 31, 2012 was less than $1,000 . In addition, we have two leases for equipment through 2018. | |||||
As of December 31, 2014, we are obligated to make minimum lease payments under all of our operating leases as follows (in thousands): | |||||
Year ending December 31, | Lease Payments | ||||
2015 | $ | 259 | |||
2016 | 266 | ||||
2017 | 216 | ||||
2018 | 3 | ||||
Total | $ | 744 | |||
Indemnities and Guarantees | |||||
We have made certain indemnities and guarantees, under which we may be required to make payments to a guaranteed or indemnified party, in relation to certain transactions. We indemnify our officers and directors to the maximum extent permitted under the laws of the State of Delaware. The duration of these indemnities and guarantees varies and, in certain cases, is indefinite. These indemnities and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make. Historically, we have not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying balance sheets. | |||||
Legal Matters | |||||
In the ordinary course of business, we may face various claims brought by third parties and may, from time to time, make claims or take legal actions to assert our rights, including intellectual property disputes, contractual disputes and other commercial disputes. Any of these claims could subject us to litigation. Management believes there are currently no claims that are likely to have a material effect on our financial position and results of operations. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
During the period September 25, 2012 (inception) through December 31, 2012, our co-founder and President and Chief Executive Officer paid certain expenses on our behalf totaling $5,000. At December 31, 2013 and 2012, the amounts payable to him for reimbursement of these expenses were $0 and $5,000, respectively. | |
In October 2012, our co-founder and President and Chief Executive Officer loaned to us $10,000 for working capital requirements. The note was due on demand and was non-interest bearing. In November 2012, the note payable was exchanged for 10,000 shares of Series AA Preferred Stock (see Note 7). | |
We entered into a consulting agreement with S.D. Scientific, a company owned 50% by our co-founder and current Chief Operating Officer. Consulting fees earned by S.D. Scientific during the year ended December 31, 2013 and the period from September 25, 2012 (inception) through December 31, 2012 were $54,000 and $9,000, respectively. | |
In connection with our Series AA Preferred Stock financing, our co-founder and current CEO purchased 100,000 shares of Series AA Preferred Stock for $100,000 during the period September 25, 2012 (inception) through December 31, 2012. In addition, our co-founder and Chief Executive Officer purchased 31,546 shares of Series A-1 Preferred Stock for $100,000 during the year ended December 31, 2013. | |
In connection with our Series A-1 and Series A-1A Preferred Stock financings in 2013, an entity affiliated with one of our board members purchased 31,546 shares and 15,773 shares of Series A-1 and Series A-1A Preferred Stock, respectively, for $100,000 and $50,000, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||||||
There is no provision for income taxes because we have historically incurred operating losses and we maintain a full valuation allowance against our net deferred tax assets. | |||||||||||||||||||||
Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate are as follows: | |||||||||||||||||||||
(In thousands, except percentages) | For the years ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Income tax expense (benefit) at statutory federal rate | $ | (9,227 | ) | 34 | % | $ | (1,432 | ) | 34 | % | $ | (41 | ) | 34 | % | ||||||
State income tax, net of federal benefit | (1,663 | ) | 6.1 | (245 | ) | 5.8 | (6 | ) | 5.2 | ||||||||||||
Permanent items | 14 | (0.1 | ) | 2 | — | 4 | (3.7 | ) | |||||||||||||
Research credits | (807 | ) | 3 | (188 | ) | 4.5 | — | — | |||||||||||||
Stock compensation | — | — | 6 | (0.1 | ) | — | — | ||||||||||||||
FIN 48 | 323 | (1.2 | ) | 75 | (1.8 | ) | — | — | |||||||||||||
Change in valuation allowance | 11,388 | (41.9 | ) | 1,782 | (42.4 | ) | 43 | (35.5 | ) | ||||||||||||
Other individually immaterial items | (28 | ) | 0.1 | — | — | — | — | ||||||||||||||
Provision (benefit) for income taxes | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||
Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future periods. The components of the deferred tax assets are as follows at December 31, 2014 and 2013: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Net operating loss carryforwards | $ | 10,047 | $ | 479 | |||||||||||||||||
Research & development credits | 597 | 113 | |||||||||||||||||||
Accrued expenses | 463 | 217 | |||||||||||||||||||
Amortization and depreciation | 4 | 645 | |||||||||||||||||||
Other | 1 | — | |||||||||||||||||||
Stock-based compensation | 2,101 | 371 | |||||||||||||||||||
13,213 | 1,825 | ||||||||||||||||||||
Valuation Allowance | (13,213 | ) | (1,825 | ) | |||||||||||||||||
Net current deferred tax assets | $ | — | $ | — | |||||||||||||||||
At December 31, 2014, we had net deferred tax assets of $13,213,000. Due to uncertainties surrounding our ability to generate future taxable income to realize these assets, a full valuation allowance has been established to offset the net deferred tax asset. | |||||||||||||||||||||
Additionally, the future utilization of our net operating loss and research and development tax credits carryforwards is subject to annual limitation under Sections 382 and 383 of the internal Revenue Code of 1986, and similar state tax provisions due to ownership change limitations that have occurred previously or that could occur in the future. These ownership changes limit the amount of the net operating loss and research and development tax credit carryforward and other deferred tax assets that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Sections 382 and 383, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50 percent points over a three-year period. We believe we incurred an ownership change during April 2014, however, we have not completed an analysis yet to determine the impact of our ability to use net operating losses and research and development credits as of December 31, 2014. | |||||||||||||||||||||
At December 31, 2014, we had federal and California net operating loss carryovers of $25,680,000 and $25,494,000, respectively. The federal and California net loss carryforwards will begin to expire in 2032. | |||||||||||||||||||||
At December 31, 2014, we had federal and state research tax credit carryovers of approximately $629,000 and $554,000, respectively. The federal research and development tax credit carryforwards will begin to expire in 2033. The California research and development credit carryforwards are available indefinitely. | |||||||||||||||||||||
The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits recorded by us as of the date of adoption. As a result of the implementation, we did not recognize an increase in the liability for unrecognized tax benefits. | |||||||||||||||||||||
A rollforward of changes in our unrecognized tax benefits is shown below. | |||||||||||||||||||||
(In thousands) | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Balance at beginning of year | $ | 91 | $ | — | |||||||||||||||||
Additions based on tax positions related to the current year | 382 | 91 | |||||||||||||||||||
Additions for tax positions of prior years | — | — | |||||||||||||||||||
Reductions for tax positions of prior years | — | — | |||||||||||||||||||
Settlements | — | — | |||||||||||||||||||
Balance at end of year | $ | 473 | $ | 91 | |||||||||||||||||
The amount of unrecognized tax benefits that would impact the effective tax rate if recognized and realized is $398,000. | |||||||||||||||||||||
Our practice is to recognize interest and/or penalties related to income tax matters as income tax expense. We had no accrual for interest or penalties on our accompanying balance sheets at December 31, 2014 and 2013, and have not recognized interest and/or penalties in our statements of operations and comprehensive loss for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
We do not anticipate a significant change to our unrecognized tax benefits during the next twelve months. | |||||||||||||||||||||
We file tax returns as prescribed by tax laws of the jurisdictions in which we operate. In the normal course of business, we are subject to examination by federal and state jurisdictions, where applicable. There are currently no pending tax examinations. Our federal and state tax returns are still open under statute from 2012 to present. |
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Loss Per Share | Net Loss Per Share | |||||||||||
Basic and diluted net loss per share was calculated as follows for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
(In thousands, except per share amounts) | Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic and diluted net loss per share attributable to common stockholders: | ||||||||||||
Numerator: | ||||||||||||
Net loss attributable to common stockholders | $ | (27,139 | ) | $ | (4,213 | ) | $ | (120 | ) | |||
Denominator: | ||||||||||||
Weighted average common shares outstanding, basic and diluted | 18,782 | 3,732 | 2,113 | |||||||||
Net loss per common share attributable to common shareholders, basic and diluted | $ | (1.44 | ) | $ | (1.13 | ) | $ | (0.06 | ) | |||
There was no difference between our net loss and the net loss attributable to common stockholders for all periods presented. | ||||||||||||
Stock options to purchase 2,329,415 shares of common stock as of December 31, 2014, were excluded from the computation of diluted net loss per share attributable to common stockholders because their effect was anti-dilutive. | ||||||||||||
Stock options to purchase 1,375,914 shares of common stock as of December 31, 2013, were excluded from the computation of diluted net loss per share attributable to common stockholders because their effect was anti-dilutive. | ||||||||||||
Shares of common stock issuable upon the conversion of preferred stock of 1,000,000 were excluded from the computation of diluted net loss per share attributable to common stockholders for the year ended December 31, 2012, because their effect was anti-dilutive. |
Employee_Savings_Plan
Employee Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Savings Plan | Employee Savings Plan |
We have established an employee savings plan pursuant to Section 401(k) of the Internal Revenue Code, effective May 1, 2014. The plan allows participating employees to deposit into tax deferred investment accounts up to 90% of their salary, subject to annual limits. We make contributions to the plan in an amount equal to 50% on the first 6% of the participant’s compensation which is deferred. We contributed approximately $84,000 to the plan during the year ended December 31, 2014. |
Selected_Quarterly_Financial_I
Selected Quarterly Financial Information (unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited) | |||||||||||||||||||||||||||||||
The following table presents selected unaudited quarterly financial data for each of the quarters in the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Quarter ended | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||
Research and development | $ | 4,802 | $ | 3,755 | $ | 5,639 | $ | 4,498 | $ | 1,746 | $ | 953 | $ | 300 | $ | 141 | ||||||||||||||||
General and administrative | 2,014 | 2,342 | 2,504 | 1,679 | 641 | 259 | 96 | 83 | ||||||||||||||||||||||||
Total operating cost and expenses | 6,816 | 6,097 | 8,143 | 6,177 | 2,387 | 1,212 | 396 | 224 | ||||||||||||||||||||||||
Loss from operations | (6,816 | ) | (6,097 | ) | (8,143 | ) | (6,177 | ) | (2,387 | ) | (1,212 | ) | (396 | ) | (224 | ) | ||||||||||||||||
Interest and other income, net | 27 | 25 | 33 | 9 | 4 | 2 | — | — | ||||||||||||||||||||||||
Net loss | $ | (6,789 | ) | $ | (6,072 | ) | $ | (8,110 | ) | $ | (6,168 | ) | $ | (2,383 | ) | $ | (1,210 | ) | $ | (396 | ) | $ | (224 | ) | ||||||||
Net loss per share, basic and diluted (1) | $ | (0.34 | ) | $ | (0.31 | ) | $ | (0.42 | ) | $ | (0.38 | ) | $ | (0.40 | ) | $ | (0.40 | ) | $ | (0.13 | ) | $ | (0.07 | ) | ||||||||
Weighted average shares used in computing net loss per share, basic and diluted | 19,719 | 19,713 | 19,426 | 16,222 | 5,899 | 3,005 | 3,000 | 3,000 | ||||||||||||||||||||||||
(1) Net loss per share for each quarter are calculated as a discrete period; the sum of four quarters may not equal the calculated full year amount. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
We have evaluated subsequent events through the filing date of this annual report on Form 10-K, and determined that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes thereto other than as listed below. | |
On January 14, 2015, we entered into an agreement to amend our existing operating lease for laboratory space at the Mitten Road facility. The amendment to the original lease calls for an expansion of an additional 2,431 square feet of laboratory space. The term of the lease is March 1, 2015 through November 30, 2017 and total rent payments under this agreement is expected to be $160,000. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Use of Estimates | Use of Estimates |
The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the valuation of common stock and stock-based awards, the realization of deferred tax assets, the recoverability of long-lived assets and the accrual of research and development expenses. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates. | |
Cash, Cash Equivalents and Short-term Investments | Cash, Cash Equivalents and Short-term Investments |
We consider all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. Debt securities with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. We classify all investments as available-for-sale. Available-for-sale securities are carried at estimated fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in the accompanying balance sheets. | |
Realized gains or losses on the sale of investments are determined on a specific identification method, and such gains and losses are reflected as a component of interest income in the accompanying statements of operations and comprehensive loss. | |
Marketable securities investments are evaluated periodically for impairment. We take into account general market conditions, changes in economic environment as well as specific investment attributes, such as credit downgrade or illiquidity for each investment, the expected cash flows from the securities, our intent to sell the securities and whether or not we will be required to sell the securities before the recovery of their amortized cost, to estimate the fair value of our investments and to determine whether impairment is other than temporary. If it is determined that a decline in fair value of any investment is other than temporary, then the unrealized loss related to credit risk would be included in interest and other income, net. | |
Concentration of Credit Risk and of Significant Suppliers | Concentration of Credit Risk and of Significant Suppliers |
Our financial instrument that potentially subjects us to concentrations of credit risk is cash and cash equivalents. From time to time, we maintain cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”). Primarily all of our cash and cash equivalents at December 31, 2014 were in excess of amounts insured by the FDIC. We do not believe that we are subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. | |
We are dependent on third-party manufacturers to supply products for research and development activities in our programs. In particular, we rely on a small number of manufacturers to supply us with our requirements for the active pharmaceutical ingredients, or API, and formulated drugs related to some of these programs. These programs would be adversely affected by a significant interruption in the supply of API. | |
Fair Value Measurements | Fair Value Measurements |
We used the provisions of Accounting Standards Codification ("ASC') 820, “Fair Value Measurements and Disclosure", to determine the fair values of our financial and nonfinancial assets and liabilities where applicable. ASC 820 defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosure about fair value measurements. The objective of fair value measurement is to determine the price that would be received to sell the asset or paid to transfer the liability (an exit price) in an orderly transaction between market participants at the measurement date. The statement emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. To increase consistency and comparability in fair value measurement and related disclosures, this statement establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: (1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; (2) Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data; and (3) Level 3 inputs are unobservable inputs for the asset or liability that reflect the reporting entity’s own assumptions about risk and the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. | |
Government agency securities are recorded at their estimated fair value. Since these government securities generally have market prices from multiple sources and it can be difficult to select the best individual price directly from the quoted prices in the active markets, we use Level 2 inputs for the valuation of these securities. Using the Level 2 inputs, a “consensus price” or a weighted average price for each of these securities can be derived from a distribution-curve-based algorithm which includes market prices obtained from a variety of industrial standard data providers (e.g. Bloomberg), security master files from large financial institutions, and other third-party sources. | |
The carrying amount of financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities approximate fair value due to the short maturities of these financial instruments. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis (see Note 3). | |
Property and Equipment | Property and Equipment |
Property and equipment are stated at cost less accumulated depreciation and amortization. We calculate depreciation using the straight-line method over the estimated useful lives of the assets, which range from two to five years. Expenditures for repairs and maintenance of assets are charged to expense as incurred. We amortize leasehold improvements using the straight-line method over the estimated useful lives of the respective assets or the lease term, whichever is shorter. Upon retirement or sale, the cost and related accumulated depreciation and amortization of assets disposed of are removed from the accounts and any resulting gain or loss is included in income (loss) from operations. | |
Licenses | Licenses |
The costs incurred for the rights to use licensed technologies in the research and development process, including licensing fees and milestone payments, are charged to research and development expense as incurred in situations where we have not identified an alternative future use for the acquired rights, and are capitalized in situations where we have identified an alternative future use. No costs associated with the use of licensed technologies have been capitalized to date. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
We review long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that we consider in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, we compare forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired assets over its fair value, determined based on discounted cash flows. To date, we have not recorded any impairment losses on long-lived assets. | |
Revenue Recognition | Revenue Recognition |
We are in the research and development stage and have not generated any revenues since inception. | |
Research and Development Costs | Research and Development Costs |
All costs of research and development are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, stock-based compensation expense, fees paid to consultants, outside service providers, professional services, travel costs and materials used in clinical trials and research and development. | |
Patent Costs | Patent Costs |
All patent-related costs incurred in connection with filing patent applications are recorded in research and development expenses when incurred, as recoverability of such expenditures is uncertain. | |
Stock-Based Compensation | Stock-Based Compensation |
Our stock-based compensation plan (see Note 9) provides for the grant of stock options, restricted common stock and stock appreciation rights. The estimated fair values of stock option grants are determined as of the date of grant using the Black-Scholes option pricing model. This method incorporates the fair value of our common stock at the date of each grant and various assumptions such as the risk-free interest rate, expected volatility based on the historic volatility of publicly-traded peer companies, expected dividend yield, and expected term of the options. The estimated fair values of restricted stock awards are determined based on the fair value of our common stock, as determined by the board of directors, on the date of grant. The estimated fair values of stock-based awards, including the effect of estimated forfeitures, are expensed over the requisite service period, which is generally the awards’ vesting period. We classify stock-based compensation expense in the statement of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified. | |
Our accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows Financial Accounting Standards Board ("FASB") guidance. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of the date on which the counterparty’s performance is complete or the date at which a commitment for performance is reached. For transactions in which the fair value of the equity instrument issued to non-employees is the more reliable measurement and a measurement date has not been reached, the fair value is re-measured at each reporting date using the Black-Scholes option pricing model. Compensation expense for these share-based awards is recognized over the term of the consulting agreement or until the award is approved and settled. | |
Income Taxes | Income Taxes |
We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in our tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. | |
We account for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. | |
Comprehensive Loss | Comprehensive Loss |
Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses are reflected as a separate component of stockholders' equity in the accompanying balance sheets as accumulated other comprehensive loss. | |
Segment Data | Segment Data |
We manage our operations as a single segment for the purposes of assessing performance and making operating decisions. We are a veterinary biotechnology company focusing on developing therapies for pets. Our chief operating decision maker is our Chief Executive Officer. All assets are held in the United States. | |
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common Share |
Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common shares, including potential dilutive shares of common stock assuming the dilutive effect of potentially dilutive securities. For periods in which we have reported a net loss, diluted net loss per common share is the same as basic net loss per common share, since the impact of the potentially dilutive securities would be anti-dilutive to the calculation of net loss per common share (see Note 13). | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
On June 10, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-10, "Development Stage Entities (Topic 915) - Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation," which eliminates the concept of a development stage entity (DSE) in its entirety from current accounting guidance. A DSE is an entity devoting substantially all of its efforts to establishing a new business and for which either planned principal operations have not yet commenced or have commenced but there has been no significant revenues generated from that business. Under current guidance, DSEs are required to present inception-to-date financial information in their annual statements. We determined we were a DSE and had therefore presented inception-to-date financial information financial statements. As permitted by ASU 2014-10, we have elected to early adopt this standard, and therefore, we have not presented any inception to date financial information and we have removed all references to development stage in these financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern", which provides guidance regarding management’s responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements for each annual and interim reporting period, management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). This ASU is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We are currently evaluating the new guidance and have not determined the impact this standard may have on our financial statements. | |
We do not believe there are any other recently issued standards not yet effective that will have a material impact on our financial statements when the standards become effective. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of financial assets measured at fair value on a recurring basis | The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2014 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: | ||||||||||||||||
(In thousands) | Fair Value Measurements as of December 31, 2014 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 834 | $ | 834 | $ | — | $ | — | |||||||||
Short-term investments: | |||||||||||||||||
U.S. treasury bills | 5,998 | — | 5,998 | — | |||||||||||||
U.S. treasury bonds and notes | 82,060 | — | 82,060 | — | |||||||||||||
$ | 88,892 | $ | 834 | $ | 88,058 | $ | — | ||||||||||
The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2013 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: | |||||||||||||||||
(In thousands) | Fair Value Measurements as of December 31, 2013 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 65,310 | $ | 65,310 | $ | — | $ | — | |||||||||
$ | 65,310 | $ | 65,310 | $ | — | $ | — | ||||||||||
Shortterm_Investments_Tables
Short-term Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Schedule of fair value of available-for-sale short term investments | The fair value of available-for-sale short-term investments by type of security at December 31, 2014 were as follows: | ||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
U.S. treasury bills | $ | 5,994 | $ | 4 | $ | — | $ | 5,998 | |||||||||
U.S. treasury bonds and notes | 82,091 | — | (31 | ) | 82,060 | ||||||||||||
$ | 88,085 | $ | 4 | $ | (31 | ) | $ | 88,058 | |||||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Schedule of property and equipment | Property and equipment consisted of the following as of December 31, 2014 and 2013: | |||||||
Years Ended December 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Computer and lab equipment | $ | 359 | $ | 15 | ||||
Furniture & fixtures | 24 | — | ||||||
Leasehold improvements | 69 | — | ||||||
Total | 452 | 15 | ||||||
Less accumulated depreciation and amortization | (58 | ) | -3 | |||||
Property and equipment, net | $ | 394 | $ | 12 | ||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of accrued liabilities | Accrued liabilities consisted of the following as of December 31, 2014 and 2013: | |||||||
(In thousands) | December 31, 2014 | December 31, 2013 | ||||||
Accrued consulting | $ | — | $ | 303 | ||||
Accrued research and development costs | 715 | 159 | ||||||
Accrued offering costs | — | 381 | ||||||
Accrued other | 247 | 43 | ||||||
Deferred rent | 57 | — | ||||||
1,019 | 886 | |||||||
Less current portion | (975 | ) | (886 | ) | ||||
Long-term liability (deferred rent) | $ | 44 | $ | — | ||||
StockBased_Awards_Tables
Stock-Based Awards (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Summary of shares of common stock reserved for future issuance | At December 31, 2014, shares of common stock reserved for future issuance inclusive of outstanding option shares are as follows: | |||||||||||||||
2012 Equity Incentive Plan | 3,900,713 | |||||||||||||||
2014 Employee Stock Purchase Plan | 200,000 | |||||||||||||||
4,100,713 | ||||||||||||||||
Summary of activity under stock option plans | A summary of activity under our stock option plans is as follows: | |||||||||||||||
Shares Available For Grant | Shares Issuable Under Options | Weighted Average Exercise Price | Weighted Average Remaining ContractualTerm (In Years) | Aggregate Intrinsic Value | ||||||||||||
Balance, December 31, 2012 | 4,000,000 | — | ||||||||||||||
Granted | -1,410,139 | 1,410,139 | $ | 1.31 | ||||||||||||
Exercised | -34,225 | $ | 0.32 | |||||||||||||
Restricted stock grants | (10,200 | ) | — | |||||||||||||
Balance, December 31, 2013 | 2,579,661 | 1,375,914 | $ | 1.33 | ||||||||||||
Granted | (1,127,113 | ) | 1,127,113 | $ | 16.23 | |||||||||||
Exercised | (56,112 | ) | $ | 2.17 | ||||||||||||
Forfeited - restricted stock and options | 118,750 | (117,500 | ) | $ | 19.57 | |||||||||||
Balance, December 31, 2014 | 1,571,298 | 2,329,415 | $ | 7.6 | 8.8 | $ | 8,100,000 | |||||||||
Options vested and expected to vest, December 31, 2014 | 2,329,415 | $ | 7.6 | 8.8 | $ | 8,100,000 | ||||||||||
Options exercisable, December 31, 2014 | 953,327 | $ | 3.8 | 8.6 | $ | 4,930,000 | ||||||||||
Schedule of stock-based compensation expense | Total stock-based compensation expense, related to all of our share-based payment awards, is comprised of the following: | |||||||||||||||
(In thousands) | Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Research and development | $ | 1,453 | $ | 827 | $ | 11 | ||||||||||
General and administrative | 2,969 | 95 | — | |||||||||||||
$ | 4,422 | $ | 922 | $ | 11 | |||||||||||
Schedule of valuation assumptions | The relevant data used to determine the value of stock options earned or granted is as follows: | |||||||||||||||
Years Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted average risk-free interest rate | 1.70% | 1.33% | 0.62%-0.72% | |||||||||||||
Weighted average expected term (in years) | 6.4 | 6.6 | 10 | |||||||||||||
Weighted average expected volatility | 91.30% | 85.20% | 90% | |||||||||||||
Weighted average expected dividend yield | — | — | — |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Lease Payments | |||||
As of December 31, 2014, we are obligated to make minimum lease payments under all of our operating leases as follows (in thousands): | |||||
Year ending December 31, | Lease Payments | ||||
2015 | $ | 259 | |||
2016 | 266 | ||||
2017 | 216 | ||||
2018 | 3 | ||||
Total | $ | 744 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Differences between provision (benefit) for income taxes and income taxes at the statutory federal income tax rate | Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate are as follows: | ||||||||||||||||||||
(In thousands, except percentages) | For the years ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Income tax expense (benefit) at statutory federal rate | $ | (9,227 | ) | 34 | % | $ | (1,432 | ) | 34 | % | $ | (41 | ) | 34 | % | ||||||
State income tax, net of federal benefit | (1,663 | ) | 6.1 | (245 | ) | 5.8 | (6 | ) | 5.2 | ||||||||||||
Permanent items | 14 | (0.1 | ) | 2 | — | 4 | (3.7 | ) | |||||||||||||
Research credits | (807 | ) | 3 | (188 | ) | 4.5 | — | — | |||||||||||||
Stock compensation | — | — | 6 | (0.1 | ) | — | — | ||||||||||||||
FIN 48 | 323 | (1.2 | ) | 75 | (1.8 | ) | — | — | |||||||||||||
Change in valuation allowance | 11,388 | (41.9 | ) | 1,782 | (42.4 | ) | 43 | (35.5 | ) | ||||||||||||
Other individually immaterial items | (28 | ) | 0.1 | — | — | — | — | ||||||||||||||
Provision (benefit) for income taxes | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||
Components of deferred tax assets | The components of the deferred tax assets are as follows at December 31, 2014 and 2013: | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Net operating loss carryforwards | $ | 10,047 | $ | 479 | |||||||||||||||||
Research & development credits | 597 | 113 | |||||||||||||||||||
Accrued expenses | 463 | 217 | |||||||||||||||||||
Amortization and depreciation | 4 | 645 | |||||||||||||||||||
Other | 1 | — | |||||||||||||||||||
Stock-based compensation | 2,101 | 371 | |||||||||||||||||||
13,213 | 1,825 | ||||||||||||||||||||
Valuation Allowance | (13,213 | ) | (1,825 | ) | |||||||||||||||||
Net current deferred tax assets | $ | — | $ | — | |||||||||||||||||
Rollforward of changes in unrecognized tax benefits | A rollforward of changes in our unrecognized tax benefits is shown below. | ||||||||||||||||||||
(In thousands) | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Balance at beginning of year | $ | 91 | $ | — | |||||||||||||||||
Additions based on tax positions related to the current year | 382 | 91 | |||||||||||||||||||
Additions for tax positions of prior years | — | — | |||||||||||||||||||
Reductions for tax positions of prior years | — | — | |||||||||||||||||||
Settlements | — | — | |||||||||||||||||||
Balance at end of year | $ | 473 | $ | 91 | |||||||||||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Calculation of basic and diluted net loss per share | Basic and diluted net loss per share was calculated as follows for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
(In thousands, except per share amounts) | Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic and diluted net loss per share attributable to common stockholders: | ||||||||||||
Numerator: | ||||||||||||
Net loss attributable to common stockholders | $ | (27,139 | ) | $ | (4,213 | ) | $ | (120 | ) | |||
Denominator: | ||||||||||||
Weighted average common shares outstanding, basic and diluted | 18,782 | 3,732 | 2,113 | |||||||||
Net loss per common share attributable to common shareholders, basic and diluted | $ | (1.44 | ) | $ | (1.13 | ) | $ | (0.06 | ) |
Selected_Quarterly_Financial_I1
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Unaudited quarterly financial data | The following table presents selected unaudited quarterly financial data for each of the quarters in the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Quarter ended | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||
Research and development | $ | 4,802 | $ | 3,755 | $ | 5,639 | $ | 4,498 | $ | 1,746 | $ | 953 | $ | 300 | $ | 141 | ||||||||||||||||
General and administrative | 2,014 | 2,342 | 2,504 | 1,679 | 641 | 259 | 96 | 83 | ||||||||||||||||||||||||
Total operating cost and expenses | 6,816 | 6,097 | 8,143 | 6,177 | 2,387 | 1,212 | 396 | 224 | ||||||||||||||||||||||||
Loss from operations | (6,816 | ) | (6,097 | ) | (8,143 | ) | (6,177 | ) | (2,387 | ) | (1,212 | ) | (396 | ) | (224 | ) | ||||||||||||||||
Interest and other income, net | 27 | 25 | 33 | 9 | 4 | 2 | — | — | ||||||||||||||||||||||||
Net loss | $ | (6,789 | ) | $ | (6,072 | ) | $ | (8,110 | ) | $ | (6,168 | ) | $ | (2,383 | ) | $ | (1,210 | ) | $ | (396 | ) | $ | (224 | ) | ||||||||
Net loss per share, basic and diluted (1) | $ | (0.34 | ) | $ | (0.31 | ) | $ | (0.42 | ) | $ | (0.38 | ) | $ | (0.40 | ) | $ | (0.40 | ) | $ | (0.13 | ) | $ | (0.07 | ) | ||||||||
Weighted average shares used in computing net loss per share, basic and diluted | 19,719 | 19,713 | 19,426 | 16,222 | 5,899 | 3,005 | 3,000 | 3,000 | ||||||||||||||||||||||||
(1) Net loss per share for each quarter are calculated as a discrete period; the sum of four quarters may not equal the calculated full year amount. |
Organization_and_Description_o1
Organization and Description of Business (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $31,472 | $4,333 |
Cash, cash equivalents and short-term investments | $101,027 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements | ||
Short-term investments | $88,058 | |
U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments | 5,998 | |
U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments | 82,060 | |
Financial assets measured at fair value on a recurring basis | ||
Fair Value Measurements | ||
Cash equivalents | 834 | 65,310 |
Total assets | 88,892 | 65,310 |
Financial assets measured at fair value on a recurring basis | U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments | 5,998 | |
Financial assets measured at fair value on a recurring basis | U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments | 82,060 | |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | ||
Fair Value Measurements | ||
Cash equivalents | 834 | 65,310 |
Total assets | 834 | 65,310 |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments | 0 | |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments | 0 | |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Cash equivalents | 0 | 0 |
Total assets | 88,058 | 0 |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments | 5,998 | |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments | 82,060 | |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments | 0 | |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments | $0 |
Shortterm_Investments_Details
Short-term Investments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $88,085 |
Gross Unrealized Gains | 4 |
Gross Unrealized Losses | -31 |
Fair Value | 88,058 |
U.S. treasury bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 5,994 |
Gross Unrealized Gains | 4 |
Gross Unrealized Losses | 0 |
Fair Value | 5,998 |
U.S. treasury bonds and notes | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 82,091 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | -31 |
Fair Value | $82,060 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $452 | $15 | |
Less accumulated depreciation and amortization | -58 | -3 | |
Property and equipment, net | 394 | 12 | |
Depreciation and amortization expense | 0 | 58 | 3 |
Computer and lab equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 359 | 15 | |
Furniture & fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 24 | 0 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $69 | $0 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued consulting | $0 | $303 |
Accrued research and development costs | 715 | 159 |
Accrued offering costs | 0 | 381 |
Accrued other | 247 | 43 |
Deferred rent | 57 | 0 |
Accrued liabilities | 1,019 | 886 |
Less current portion | -975 | -886 |
Long-term liability (deferred rent) | $44 | $0 |
Convertible_Preferred_Stock_De
Convertible Preferred Stock (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 27 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 4 Months Ended | 6 Months Ended | 2 Months Ended | 1 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Nov. 30, 2012 | Dec. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 16, 2013 | |
Class of Stock [Line Items] | |||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||
Preferred stock, par value | $0.00 | $0.00 | $0.00 | ||||||||||||
Issuance of common stock and stock options for accrued consulting expenses | $12,000 | ||||||||||||||
Series AA Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Proceeds from issuance of convertible preferred stock | 0 | 990,000 | 0 | ||||||||||||
Series AA Preferred Stock | Co-Founder and CEO | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares issued during period | 100,000 | ||||||||||||||
Series A-1 Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Proceeds from issuance of convertible preferred stock | 5,865,000 | 0 | 0 | ||||||||||||
Series A-1 Preferred Stock | Co-Founder and CEO | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares issued during period | 31,546 | ||||||||||||||
Series A-1A Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Proceeds from issuance of convertible preferred stock | 5,232,000 | 0 | 0 | ||||||||||||
Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred stock, shares authorized | 15,000,000 | ||||||||||||||
Preferred stock, par value | $0.00 | ||||||||||||||
Preferred Stock | Co-Founder and CEO | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Exchange of note payable for Series AA convertible preferred stock | 10,000 | ||||||||||||||
Preferred Stock | Series AA Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred stock, shares issued | 1,015,000 | ||||||||||||||
Conversion of Series AA, A-1 and A-1A preferred stock to common stock in connection with initial public offering, shares | -1,015,000 | ||||||||||||||
Number of shares issued during period | 15,000 | 990,000 | 990,000 | 15,000 | |||||||||||
Share price | $1 | ||||||||||||||
Benchmark of ownership that allows a unitholder to purchase new shares under the IPO | 10,000 | ||||||||||||||
Proceeds from issuance of convertible preferred stock | 990,000 | ||||||||||||||
Exchange of note payable for Series AA convertible preferred stock | 10,000 | ||||||||||||||
Exchange of note payable for Series AA convertible preferred stock, shares | 10,000 | ||||||||||||||
Payments of offering costs | 13,000 | 13,000 | |||||||||||||
Liquidation preference per share | $1 | 1 | |||||||||||||
Conversion price per share | $1 | $1 | $1 | ||||||||||||
Conversion ratio | 1 | ||||||||||||||
Preferred Stock | Series AA Preferred Stock | Co-Founder and CEO | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Exchange of note payable for Series AA convertible preferred stock, shares | 10,000 | ||||||||||||||
Preferred Stock | Series A-1 Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred stock, shares authorized | 2,000,000 | ||||||||||||||
Preferred stock, shares issued | 1,860,204 | ||||||||||||||
Conversion of Series AA, A-1 and A-1A preferred stock to common stock in connection with initial public offering, shares | -1,860,000 | ||||||||||||||
Number of shares issued during period | 1,850,000 | 5,000 | 5,000 | 1,850,204 | |||||||||||
Share price | $3.17 | ||||||||||||||
Benchmark of ownership that allows a unitholder to purchase new shares under the IPO | 10,000 | ||||||||||||||
Issuance of common stock and stock options for accrued consulting expenses | 32,000 | 16,000 | 16,000 | ||||||||||||
Proceeds from issuance of convertible preferred stock | 5,865,000 | ||||||||||||||
Payments of offering costs | 22,000 | 22,000 | |||||||||||||
Percentage of purchase price | 10.00% | ||||||||||||||
Liquidation preference per share | $3.17 | 3.17 | |||||||||||||
Conversion price per share | $3.17 | $3.17 | $3.17 | ||||||||||||
Conversion ratio | 1 | ||||||||||||||
Preferred Stock | Series A-1A Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred stock, shares authorized | 2,000,000 | ||||||||||||||
Preferred stock, shares issued | 1,675,002 | ||||||||||||||
Conversion of Series AA, A-1 and A-1A preferred stock to common stock in connection with initial public offering, shares | -1,675,000 | ||||||||||||||
Number of shares issued during period | 1,650,000 | 24,606 | 1,650,396 | ||||||||||||
Share price | $3.17 | ||||||||||||||
Benchmark of ownership that allows a unitholder to purchase new shares under the IPO | 10,000 | ||||||||||||||
Issuance of common stock and stock options for accrued consulting expenses | 78,000 | 78,000 | |||||||||||||
Proceeds from issuance of convertible preferred stock | 5,232,000 | ||||||||||||||
Payments of offering costs | 88,000 | 88,000 | |||||||||||||
Percentage of purchase price | 10.00% | ||||||||||||||
Liquidation preference per share | $3.17 | $3.17 | $3.17 | ||||||||||||
Conversion price per share | $3.17 | $3.17 | $3.17 | ||||||||||||
Conversion ratio | 1 | ||||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Conversion of Series AA, A-1 and A-1A preferred stock to common stock in connection with initial public offering, shares | 4,550,000 | ||||||||||||||
Number of shares issued during period | 8,625,000 | 3,000,000 | 3,450,000 | 3,450,000 | 8,625,000 | ||||||||||
Payments of offering costs | $5,504,000 | $4,035,000 | $4,035,000 | $5,504,000 | |||||||||||
Common Stock | Conversion of Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Conversion of Series AA, A-1 and A-1A preferred stock to common stock in connection with initial public offering, shares | 4,550,195 |
Common_Stock_Details
Common Stock (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2012 | Aug. 31, 2013 | Sep. 24, 2012 | |
Class of Stock [Line Items] | ||||||||
Number of common shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Par value of common shares | $0.00 | $0.00 | $0.00 | |||||
Net proceeds from initial public offering | $58,065,000 | $0 | $58,065,000 | $0 | ||||
Stock-based compensation expense | 11,000 | 4,422,000 | 922,000 | |||||
Number of shares of common stock issued upon exercise of stock options | 1,127,113 | 1,410,139 | ||||||
Net proceeds from initial public offering | 54,871,000 | 0 | 0 | 54,871,000 | ||||
Common stock, shares outstanding | 16,214,620 | 19,724,482 | 16,214,620 | |||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of voting rights | 1 | |||||||
Number of shares issued during period | 3,450,000 | 8,625,000 | 3,000,000 | 3,450,000 | 8,625,000 | |||
Restricted stock issued | 4,000 | |||||||
Share price | $18 | $7 | $7 | |||||
Payments of underwriting commissions and offering expenses | 4,035,000 | 5,504,000 | 4,035,000 | 5,504,000 | ||||
Common stock, shares outstanding | 16,214,000 | 3,000,000 | 19,724,000 | 16,214,000 | 0 | |||
Common Stock | Co-Founder and CEO | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued during period | 3,000,000 | |||||||
Net proceeds from initial public offering | 300 | |||||||
Common Stock | Consultants | Restricted Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted stock issued | 3,750 | 5,200 | ||||||
Share price | $2.27 | |||||||
Stock-based compensation expense | 61,000 | 12,000 | ||||||
Common Stock | Employee | Employee Stock Option | ||||||||
Class of Stock [Line Items] | ||||||||
Net proceeds from initial public offering | $121,000 | $11,000 | ||||||
Share price | $0.32 | $0.32 | ||||||
Number of shares of common stock issued upon exercise of stock options | 56,112 | 34,225 | ||||||
Common Stock | Employee | Employee Stock Option | Minimum | ||||||||
Class of Stock [Line Items] | ||||||||
Share price | $0.32 | |||||||
Common Stock | Employee | Employee Stock Option | Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Share price | $15.41 |
StockBased_Awards_Narrative_De
Stock-Based Awards - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 2 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 11, 2013 | Nov. 10, 2013 | Sep. 12, 2013 | Aug. 29, 2013 | 9-May-13 | Feb. 04, 2013 | Sep. 30, 2013 | Nov. 04, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expiration period of stock option plan | 10 years | ||||||||||
Shares reserved for future issuance | 4,100,713 | ||||||||||
Number of shares of common stock issued upon exercise of stock options | 1,127,113 | 1,410,139 | |||||||||
Weighted-average exercise price per share | $16.23 | $1.31 | |||||||||
Fair value of common stock per share | $12.09 | $1.50 | |||||||||
Number of shares issuable under options | 0 | 2,329,415 | 1,375,914 | ||||||||
Number of shares available for grant | 4,000,000 | 1,571,298 | 2,579,661 | ||||||||
Aggregate intrinsic value of stock options exercised | $774 | $108 | |||||||||
Proceeds from exercise of common stock options | 0 | 121 | 11 | ||||||||
Accrued expenses for options earned but not granted and approved | 11 | 303 | |||||||||
Employee Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percent of fair value per share of common stock | 100.00% | ||||||||||
Benchmark ownership percentage of all classes of stock | 10.00% | ||||||||||
Percent of fair value per share of common stock, if person owns 10% of all classes | 110.00% | ||||||||||
Unrecognized stock-based compensation expense | $8,693 | ||||||||||
Weighted average period for recognition | 3 years 1 month 12 days | ||||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted stock awards granted | 10,200 | ||||||||||
Restricted stock awards granted, weighted average fair value | $6.63 | ||||||||||
Minimum | Employee Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period of options | 1 year | ||||||||||
Maximum | Employee Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period of options | 4 years | ||||||||||
2012 Equity Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expiration period of stock option plan | 10 years | ||||||||||
Shares reserved for future issuance | 3,900,713 | 4,000,000 | |||||||||
Number of shares of common stock issued upon exercise of stock options | 1,127,113 | 1,410,139 | 29,000 | 412,580 | 154,793 | 576,525 | 285,092 | ||||
Weighted-average exercise price per share | $1.37 | $0.90 | $0.90 | $0.90 | $0.32 | $0.35 | |||||
Fair value of common stock per share | $1.37 | $2.27 | $0.32 | $0.32 | |||||||
Number of shares issuable under options | 2,329,415 | ||||||||||
Number of shares available for grant | 1,571,298 | ||||||||||
2012 Equity Incentive Plan | Previously Reported | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Fair value of common stock per share | $2.27 | $1.37 | |||||||||
2014 Employee Stock Purchase Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares reserved for future issuance | 200,000 | ||||||||||
2014 Employee Stock Purchase Plan | Employee Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares reserved for future issuance | 200,000 | ||||||||||
Purchase price of common stock, percent of fair market value | 85.00% |
StockBased_Awards_Reserved_Sha
Stock-Based Awards - Reserved Shares (Details) | Dec. 31, 2014 | Nov. 04, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for future issuance | 4,100,713 | |
2012 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for future issuance | 3,900,713 | 4,000,000 |
2014 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for future issuance | 200,000 |
StockBased_Awards_Stock_Option
Stock-Based Awards - Stock Option Plan Activity Summary (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Shares | ||
Number of shares available for grant, beginning balance | 2,579,661 | 4,000,000 |
Number of shares issuable under options, beginning balance | 1,375,914 | 0 |
Granted | -1,127,113 | -1,410,139 |
Exercised | -56,112 | -34,225 |
Restricted stock grants | -10,200 | |
Forfeited restricted stock | 118,750 | |
Forfeited options | -117,500 | |
Number of shares available for grant, ending balance | 1,571,298 | 2,579,661 |
Number of shares issuable under options, ending balance | 2,329,415 | 1,375,914 |
Weighted Average Exercise Price | ||
Granted | $16.23 | $1.31 |
Exercised | $2.17 | $0.32 |
Forfeited - restricted stock and options | $19.57 | |
Outstanding | $7.60 | $1.33 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Term (In Years) | 8 years 9 months 18 days | |
Aggregate Intrinsic Value | $8,100 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Options vested and expected to vest, shares issuable under options | 2,329,415 | |
Options vested and expected to vest, weighted average exercise price | $7.60 | |
Options vested and expected to vest, weighted average remaining contractual term (in years) | 8 years 9 months 18 days | |
Options vested and expected to vest, aggregate intrinsic value | 8,100 | |
Options exercisable, shares issuable under options | 953,327 | |
Options exercisable, weighted average exercise price | $3.80 | |
Options exercisable, weighted average remaining contractual term (in years) | 8 years 7 months 6 days | |
Options exercisable, aggregate intrinsic value | $4,930 |
StockBased_Awards_StockBased_C
Stock-Based Awards - Stock-Based Compensation Expense (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $11 | $4,422 | $922 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 11 | 1,453 | 827 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $0 | $2,969 | $95 |
StockBased_Awards_Valuation_As
Stock-Based Awards - Valuation Assumptions (Details) (Employee Stock Option) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average risk-free interest rate | 1.70% | 1.33% | |
Weighted average expected term (in years) | 10 years | 6 years 4 months 24 days | 6 years 7 months 6 days |
Weighted average expected volatility | 90.00% | 91.30% | 85.20% |
Weighted average expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average risk-free interest rate | 0.62% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average risk-free interest rate | 0.72% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $1 | $162 | $6 |
Lease Payments | |||
2015 | 259 | ||
2016 | 266 | ||
2017 | 216 | ||
2018 | 3 | ||
Total | $744 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | 1 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Nov. 30, 2012 | Oct. 31, 2012 | |
Related Party Transaction [Line Items] | ||||||
Value of stock issued | $0 | $58,065,000 | $54,872,000 | |||
Co-Founder and CEO | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses paid on behalf of Company | 5,000 | |||||
Amount payable to affiliates | 5,000 | 0 | ||||
Notes payable to affiliates | 10,000 | |||||
Co-Founder and CEO | Series AA Preferred Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Shares issued on conversion of debt instrument | 10,000 | |||||
Number of shares issued during period | 100,000 | |||||
Value of stock issued | 100,000 | |||||
Co-Founder and CEO | Series A-1 Preferred Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Number of shares issued during period | 31,546 | |||||
Value of stock issued | 100,000 | |||||
Co-Founder and CEO | S.D. Scientific | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% | ||||
Affiliated Entity | Series A-1 Preferred Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Number of shares issued during period | 31,546 | |||||
Value of stock issued | 100,000 | |||||
Affiliated Entity | Series A-1A Preferred Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Number of shares issued during period | 15,773 | |||||
Value of stock issued | 50,000 | |||||
Affiliated Entity | S.D. Scientific | Consulting Fees | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses paid on behalf of Company | $9,000 | $54,000 |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Operating Loss Carryforwards [Line Items] | ||
Net deferred tax assets | $13,213 | $1,825 |
Unrecognized tax benefits that would impact the effective tax rate | 398 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryovers | 25,680 | |
Federal | Research tax credit carryover | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryovers | 629 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryovers | 25,494 | |
State | Research tax credit carryover | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryovers | $554 |
Income_Taxes_Reconciliation_St
Income Taxes - Reconciliation Statutory Federal Income Tax to Effective Tax (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense (benefit) at statutory federal rate | ($41) | ($9,227) | ($1,432) |
State income tax, net of federal benefit | -6 | -1,663 | -245 |
Permanent items | 4 | 14 | 2 |
Research credits | 0 | -807 | -188 |
Stock compensation | 0 | 0 | 6 |
FIN 48 | 0 | 323 | 75 |
Change in valuation allowance | 43 | 11,388 | 1,782 |
Other individually immaterial items | 0 | -28 | 0 |
Provision (benefit) for income taxes | $0 | $0 | $0 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax expense (benefit) at statutory federal rate | 34.00% | 34.00% | 34.00% |
State income tax, net of federal benefit | 5.20% | 6.10% | 5.80% |
Permanent items | -3.70% | -0.10% | 0.00% |
Research credits | 0.00% | 3.00% | 4.50% |
Stock compensation | 0.00% | 0.00% | -0.10% |
FIN 48 | 0.00% | -1.20% | -1.80% |
Change in valuation allowance | -35.50% | -41.90% | -42.40% |
Other individually immaterial items | 0.00% | 0.10% | 0.00% |
Provision (benefit) for income taxes | 0.00% | 0.00% | 0.00% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carryforwards | $10,047 | $479 |
Research & development credits | 597 | 113 |
Accrued expenses | 463 | 217 |
Amortization and depreciation | 4 | 645 |
Other | 1 | 0 |
Stock-based compensation | 2,101 | 371 |
Deferred tax assets, gross | 13,213 | 1,825 |
Valuation Allowance | -13,213 | -1,825 |
Net current deferred tax assets | $0 | $0 |
Income_Taxes_Rollforward_of_Ch
Income Taxes - Rollforward of Changes in Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $91 | $0 |
Additions based on tax positions related to the current year | 382 | 91 |
Additions for tax positions of prior years | 0 | 0 |
Reductions for tax positions of prior years | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of year | $473 | $91 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
Numerator: | ||||||||||||
Net loss attributable to common stockholders | ($6,789) | ($6,072) | ($8,110) | ($6,168) | ($2,383) | ($1,210) | ($396) | ($224) | ($120) | ($27,139) | ($4,213) | |
Denominator: | ||||||||||||
Weighted average common shares outstanding, basic and diluted | 19,719,000 | 19,713,000 | 19,426,000 | 16,222,000 | 5,899,000 | 3,005,000 | 3,000,000 | 3,000,000 | 2,113,000 | 18,782,000 | 3,732,000 | |
Net loss per common share attributable to common shareholders, basic and diluted | ($0.34) | ($0.31) | ($0.42) | ($0.38) | ($0.40) | ($0.40) | ($0.13) | ($0.07) | ($0.06) | ($1.44) | ($1.13) | |
Stock Options | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from EPS computation | 1,375,914 | 2,329,415 | ||||||||||
Convertible Preferred Stock | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from EPS computation | 1,000,000 |
Employee_Savings_Plan_Details
Employee Savings Plan (Details) (Employee savings plan, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Employee savings plan | |
Defined Contribution Plan Disclosure [Line Items] | |
Maximum contributions per employee, percent of salary | 90.00% |
Employer matching contribution, percent of match | 50.00% |
Employer matching contribution, percent of participant's compensation | 6.00% |
Contributions during the year | $84 |
Selected_Quarterly_Financial_I2
Selected Quarterly Financial Information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Research and development | $4,802 | $3,755 | $5,639 | $4,498 | $1,746 | $953 | $300 | $141 | $75 | $18,694 | $3,140 |
General and administrative | 2,014 | 2,342 | 2,504 | 1,679 | 641 | 259 | 96 | 83 | 45 | 8,539 | 1,079 |
Total operating cost and expenses | 6,816 | 6,097 | 8,143 | 6,177 | 2,387 | 1,212 | 396 | 224 | 120 | 27,233 | 4,219 |
Loss from operations | -6,816 | -6,097 | -8,143 | -6,177 | -2,387 | -1,212 | -396 | -224 | -120 | -27,233 | -4,219 |
Interest and other income, net | 27 | 25 | 33 | 9 | 4 | 2 | 0 | 0 | 0 | 94 | 6 |
Net loss | ($6,789) | ($6,072) | ($8,110) | ($6,168) | ($2,383) | ($1,210) | ($396) | ($224) | ($120) | ($27,139) | ($4,213) |
Net loss per share, basic and diluted | ($0.34) | ($0.31) | ($0.42) | ($0.38) | ($0.40) | ($0.40) | ($0.13) | ($0.07) | ($0.06) | ($1.44) | ($1.13) |
Weighted average common shares outstanding, basic and diluted | 19,719 | 19,713 | 19,426 | 16,222 | 5,899 | 3,005 | 3,000 | 3,000 | 2,113 | 18,782 | 3,732 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Dec. 31, 2014 | Jan. 14, 2015 |
In Thousands, unless otherwise specified | ||
Subsequent Event [Line Items] | ||
Total expected rent payments | $744 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Total expected rent payments | $160 | |
Subsequent Event | Operating Lease | Laboratory space | ||
Subsequent Event [Line Items] | ||
Square footage of laboratory space | 2,431 |