Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Entity [Abstract] | ||
Entity Registrant Name | Kindred Biosciences, Inc. | |
Entity Central Index Key | 1,561,743 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 19,809,380 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 4,539 | $ 12,969 |
Short-term investments | 79,047 | 88,058 |
Prepaid expenses and other | 449 | 477 |
Total current assets | 84,035 | 101,504 |
Property and equipment, net | 608 | 394 |
Other assets | 30 | 22 |
Total assets | 84,673 | 101,920 |
Current liabilities: | ||
Accounts payable | 285 | 420 |
Accrued compensation | 1,568 | 1,457 |
Accrued liabilities | 1,120 | 975 |
Total current liabilities | 2,973 | 2,852 |
Long-term liability | 46 | 44 |
Total liabilities | $ 3,019 | $ 2,896 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value; 100,000,000 shares authorized; 19,792,337 and 19,724,482 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | $ 2 | $ 2 |
Additional paid-in capital | 133,830 | 130,521 |
Accumulated other comprehensive income (loss) | 4 | (27) |
Accumulated deficit | (52,182) | (31,472) |
Total stockholders' equity | 81,654 | 99,024 |
Total liabilities and stockholders' equity | $ 84,673 | $ 101,920 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value, in dollar per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,792,337 | 19,724,482 |
Common stock, shares outstanding | 19,792,337 | 19,724,482 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating expenses: | ||||
Research and development | $ 5,033 | $ 3,755 | $ 14,833 | $ 13,892 |
General and administrative | 2,095 | 2,342 | 5,969 | 6,525 |
Total operating expenses | 7,128 | 6,097 | 20,802 | 20,417 |
Loss from operations | (7,128) | (6,097) | (20,802) | (20,417) |
Interest income | 33 | 25 | 92 | 67 |
Net loss | (7,095) | (6,072) | (20,710) | (20,350) |
Change in unrealized gains or losses on available-for-sale securities | 5 | 24 | 31 | 10 |
Comprehensive loss | $ (7,090) | $ (6,048) | $ (20,679) | $ (20,340) |
Net loss per share, basic and diluted, in dollars per share | $ (0.36) | $ (0.31) | $ (1.05) | $ (1.10) |
Weighted-average number of common shares outstanding, basic and diluted, in shares | 19,792 | 19,713 | 19,758 | 18,467 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net loss | $ (20,710) | $ (20,350) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 3,103 | 3,518 |
Depreciation and amortization expense | 108 | 29 |
Amortization of premium on marketable securities | 128 | 49 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other | 28 | (540) |
Other assets | (8) | (22) |
Accounts payable | (135) | 55 |
Accrued liabilities and accrued compensation | 258 | 461 |
Net cash used in operating activities | (17,228) | (16,800) |
Cash Flows from Investing Activities | ||
Purchase of short-term investments | (81,086) | (128,142) |
Sale of short-term investments | 3,000 | 0 |
Maturities of short-term investments | 87,000 | 30,000 |
Purchase of property and equipment | (322) | (211) |
Net cash provided by (used in) investing activities | 8,592 | (98,353) |
Cash Flows from Financing Activities | ||
Exercise of stock options and purchase of ESPP shares | 206 | 83 |
Net proceeds from sale of common stock | 0 | 58,065 |
Net cash provided by financing activities | 206 | 58,148 |
Net change in cash and cash equivalents | (8,430) | (57,005) |
Cash and cash equivalents at beginning of period | 12,969 | 65,329 |
Cash and cash equivalents at end of period | 4,539 | 8,324 |
Common Stock | ||
Supplemental disclosure of non-cash financing activities: | ||
Issuance of common stock and stock options for accrued consulting expenses | $ 0 | $ 303 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | Description of Business, Basis of Presentation and Summary of Significant Accounting Policies 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 patent or other intellectual property 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. The accompanying unaudited interim condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2014 included in our annual report on Form 10-K as filed with the SEC on March 13, 2015. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included in these unaudited interim condensed financial statements. Liquidity We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception. 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 our former 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 our April 2014 follow-on public offering. We believe that our cash, cash equivalents and short-term investments totaling $83,586,000 as of September 30, 2015 , are sufficient to fund our planned 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. 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 condensed financial statements include, but are not limited to, the valuation of stock-based awards, the realization of deferred tax 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. 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 condensed balance sheets as accumulated other comprehensive income (loss). Recently Issued Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 condensed 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 | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. 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. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis and are summarized as follows (in thousands): Fair Value Measurements as of September 30, 2015 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 4,344 $ 4,344 $ — $ — Short-term investments: U.S. treasury bills 34,147 — 34,147 — U.S. federal agency notes 13,571 — 13,571 — U.S. treasury bonds and notes 31,329 — 31,329 — $ 83,391 $ 4,344 $ 79,047 $ — Fair Value Measurements as of December 31, 2014 Description Total Quoted Prices in Significant Other Unobservable Inputs 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 $ — There were no transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy at September 30, 2015 or December 31, 2014 . At September 30, 2015 and December 31, 2014 , we did not have any financial liabilities which were measured at fair value on a recurring basis. |
Short-Term Investments
Short-Term Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | Short-Term Investments We classify all highly-liquid investments with stated maturities of greater than three months from the date of purchase and remaining maturities of less than one year as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such investments are viewed as being available to support current operations. We classify and account for short-term investments as available-for-sale and reflect realized gains and losses using the specific identification method. Changes in market value if any, excluding other-than-temporary impairments, are reflected in other comprehensive income (loss). The fair value of available-for-sale short-term investments by type of security at September 30, 2015 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury bills $ 34,133 $ 15 $ (1 ) $ 34,147 U.S. federal agency notes 13,571 1 (1 ) 13,571 U.S. treasury bonds and notes 31,339 24 (34 ) 31,329 $ 79,043 $ 40 $ (36 ) $ 79,047 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 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 30, 2015 December 31, 2014 Research and development costs $ 793 $ 715 Other expenses 317 247 Deferred rent 56 57 1,166 1,019 Less current portion (1,120 ) (975 ) Long-term liability (deferred rent) $ 46 $ 44 |
Stock-Based Awards and Common S
Stock-Based Awards and Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards and Common Stock | Stock-Based Awards and Common Stock The table below shows the number of shares of common stock underlying options granted to employees, directors and consultants, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share: Stock Option Plan Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Shares underlying options granted 32,500 117,500 844,733 1,064,463 Weighted-average exercise price $6.37 $16.60 $6.67 $16.63 Weighted average risk- free interest rate 1.78 % 1.90 % 1.50% 1.71% Weighted average expected term (years) 6.3 6.1 6.1 6.3 Weighted average expected volatility 90% 90% 96% 90% Expected dividend yield — — — — Weighted-average grant date fair value per share $4.80 $12.42 $5.14 $12.37 Our Employee Stock Purchase Plan (the "Stock Purchase Plan"), adopted in December 2014, permits eligible employees to purchase common stock at a discount through payroll deductions during defined six -month consecutive offering periods beginning December 1 with the exception of our first offering period which commenced on January 1, 2015 for a five month duration. 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. A total of 200,000 shares of common stock are authorized for issuance under the Stock Purchase Plan. A participant may purchase a maximum of 2,000 shares of common stock during each offering period, not to exceed $25,000 worth of common stock on the offering date during each calendar year. We use the Black-Scholes option pricing model, in combination with the discounted employee price, in determining the value of the Stock Purchase Plan expense to be recognized during each offering period. The following assumptions were used in the Black-Scholes option pricing model to calculate employee stock-based compensation: Stock Purchase Plan Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Weighted average risk-free interest rate — — 0.07% — Weighted average expected term (years) — — 0.5 — Weighted average expected volatility — — 73% — Expected dividend yield — — — — Weighted-average grant date fair value per share — — $2.14 — Under the Stock Purchase Plan, employees purchased 26,772 shares of common stock for $147,000 during the nine months ended September 30, 2015. At September 30, 2015, we had an outstanding liability of $97,000 , which is included in accrued compensation on the condensed balance sheet, for employee contributions to the Stock Purchase Plan for shares pending issuance at the end of the next offering period. We recorded stock-based compensation expense as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Research and development $ 439 $ 376 $ 1,371 $ 1,065 General and administrative 567 889 1,732 2,453 $ 1,006 $ 1,265 $ 3,103 $ 3,518 We had an aggregate of approximately $9,302,000 of unrecognized stock-based compensation expense for options outstanding and the Stock Purchase Plan as of September 30, 2015 which is expected to be recognized over a weighted-average period of 2.7 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. We terminated this agreement in January 2015. In April 2014, we entered into new noncancelable operating leases for laboratory space and office space through November 2017. In January 2015, we amended a lease to expand the laboratory space for an additional 2,431 square feet and in July 2015, we expanded the laboratory space by an additional 131 square feet. In June 2015, we entered into a new noncancelable operating lease for 3,126 square feet of office space in San Diego, California. In addition, we have three equipment leases, expiring in July 2017, July 2019 and July 2020, respectively. As of September 30, 2015 , we are obligated to make minimum lease payments under noncancelable operating leases as follows (in thousands): Year ending December 31, Lease Payments 2015 (remaining of year) $ 104 2016 417 2017 341 2018 103 2019 and beyond 82 Total $ 1,047 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic and diluted net loss per share was calculated as follows (in thousands, except per share amounts): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Basic and diluted net loss per share: Numerator: Net loss $ (7,095 ) $ (6,072 ) $ (20,710 ) $ (20,350 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 19,792 19,713 19,758 18,467 Net loss per share, basic and diluted $ (0.36 ) $ (0.31 ) $ (1.05 ) $ (1.10 ) There was no difference between the Company’s net loss and the net loss attributable to common stockholders for all periods presented. Stock options to purchase 3,078,065 shares of common stock as of September 30, 2015 , were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2015 , because their effect was anti-dilutive. Stock options and unvested restricted stock awards to purchase 2,390,090 shares of common stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2014 , because their effect was anti-dilutive. |
Description of Business, Basi13
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | 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 patent or other intellectual property 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. The accompanying unaudited interim condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2014 included in our annual report on Form 10-K as filed with the SEC on March 13, 2015. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included in these unaudited interim condensed financial statements. |
Liquidity | Liquidity We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception. 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 our former 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 our April 2014 follow-on public offering. We believe that our cash, cash equivalents and short-term investments totaling $83,586,000 as of September 30, 2015 , are sufficient to fund our planned 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. |
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 condensed financial statements include, but are not limited to, the valuation of stock-based awards, the realization of deferred tax 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. |
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 condensed balance sheets as accumulated other comprehensive income (loss). |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 condensed 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) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis and are summarized as follows (in thousands): Fair Value Measurements as of September 30, 2015 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 4,344 $ 4,344 $ — $ — Short-term investments: U.S. treasury bills 34,147 — 34,147 — U.S. federal agency notes 13,571 — 13,571 — U.S. treasury bonds and notes 31,329 — 31,329 — $ 83,391 $ 4,344 $ 79,047 $ — Fair Value Measurements as of December 31, 2014 Description Total Quoted Prices in Significant Other Unobservable Inputs 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 $ — |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury bills $ 34,133 $ 15 $ (1 ) $ 34,147 U.S. federal agency notes 13,571 1 (1 ) 13,571 U.S. treasury bonds and notes 31,339 24 (34 ) 31,329 $ 79,043 $ 40 $ (36 ) $ 79,047 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 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): September 30, 2015 December 31, 2014 Research and development costs $ 793 $ 715 Other expenses 317 247 Deferred rent 56 57 1,166 1,019 Less current portion (1,120 ) (975 ) Long-term liability (deferred rent) $ 46 $ 44 |
Stock-Based Awards and Common17
Stock-Based Awards and Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Plan valuation assumptions | The table below shows the number of shares of common stock underlying options granted to employees, directors and consultants, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share: Stock Option Plan Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Shares underlying options granted 32,500 117,500 844,733 1,064,463 Weighted-average exercise price $6.37 $16.60 $6.67 $16.63 Weighted average risk- free interest rate 1.78 % 1.90 % 1.50% 1.71% Weighted average expected term (years) 6.3 6.1 6.1 6.3 Weighted average expected volatility 90% 90% 96% 90% Expected dividend yield — — — — Weighted-average grant date fair value per share $4.80 $12.42 $5.14 $12.37 |
Schedule of Stock Purchase Plan valuation assumptions | The following assumptions were used in the Black-Scholes option pricing model to calculate employee stock-based compensation: Stock Purchase Plan Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Weighted average risk-free interest rate — — 0.07% — Weighted average expected term (years) — — 0.5 — Weighted average expected volatility — — 73% — Expected dividend yield — — — — Weighted-average grant date fair value per share — — $2.14 — |
Schedule of Stock-Based Compensation Expense | We recorded stock-based compensation expense as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Research and development $ 439 $ 376 $ 1,371 $ 1,065 General and administrative 567 889 1,732 2,453 $ 1,006 $ 1,265 $ 3,103 $ 3,518 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases | As of September 30, 2015 , we are obligated to make minimum lease payments under noncancelable operating leases as follows (in thousands): Year ending December 31, Lease Payments 2015 (remaining of year) $ 104 2016 417 2017 341 2018 103 2019 and beyond 82 Total $ 1,047 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Loss per Share | Basic and diluted net loss per share was calculated as follows (in thousands, except per share amounts): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Basic and diluted net loss per share: Numerator: Net loss $ (7,095 ) $ (6,072 ) $ (20,710 ) $ (20,350 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 19,792 19,713 19,758 18,467 Net loss per share, basic and diluted $ (0.36 ) $ (0.31 ) $ (1.05 ) $ (1.10 ) |
Description of Business, Basi20
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Accounting Policies [Abstract] | |
Cash, cash equivalents, and short-term investments | $ 83,586 |
Substantial cash and cash equivalent, term | 24 months |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 83,391 | $ 88,892 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 4,344 | 834 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 79,047 | 88,058 |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
U.S. treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 34,147 | 5,998 |
U.S. treasury bills | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. treasury bills | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 34,147 | 5,998 |
U.S. treasury bills | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. federal agency notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 13,571 | |
U.S. federal agency notes | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
U.S. federal agency notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 13,571 | |
U.S. federal agency notes | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
U.S. treasury bonds and notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 31,329 | 82,060 |
U.S. treasury bonds and notes | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. treasury bonds and notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 31,329 | 82,060 |
U.S. treasury bonds and notes | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,344 | 834 |
Money market funds | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,344 | 834 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | $ 79,043 | $ 88,085 |
Gross Unrealized Gains | 40 | 4 |
Gross Unrealized Losses | (36) | (31) |
Fair Value | 79,047 | 88,058 |
U.S. treasury bills | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 34,133 | 5,994 |
Gross Unrealized Gains | 15 | 4 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 34,147 | 5,998 |
U.S. federal agency notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 13,571 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (1) | |
Fair Value | 13,571 | |
U.S. treasury bonds and notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 31,339 | 82,091 |
Gross Unrealized Gains | 24 | 0 |
Gross Unrealized Losses | (34) | (31) |
Fair Value | $ 31,329 | $ 82,060 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Research and development costs | $ 793 | $ 715 |
Other expenses | 317 | 247 |
Deferred rent | 56 | 57 |
Accrued liabilities | 1,166 | 1,019 |
Less current portion | (1,120) | (975) |
Long-term liability (deferred rent) | $ 46 | $ 44 |
Stock-Based Awards and Common24
Stock-Based Awards and Common Stock - Stock Option Plan (Details) - Stock Option Plan - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares underlying options granted, in shares | 32,500 | 117,500 | 844,733 | 1,064,463 |
Weighted-average exercise price, in dollars per share | $ 6.37 | $ 16.60 | $ 6.67 | $ 16.63 |
Weighted average risk-free interest rate | 1.78% | 1.90% | 1.50% | 1.71% |
Weighted average expected term | 6 years 3 months 18 days | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 3 months 18 days |
Weighted average expected volatility, as a percent | 90.00% | 90.00% | 96.00% | 90.00% |
Expected dividend yield, as a percent | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average grant date fair value per share, in dollars per share | $ 4.80 | $ 12.42 | $ 5.14 | $ 12.37 |
Stock-Based Awards and Common25
Stock-Based Awards and Common Stock - Narrative (Details) - USD ($) | Jan. 01, 2015 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding liability included in accrued compensation | $ 97,000 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock purchased (in shares) | 26,772 | |
Net proceeds from sale of common stock | $ 147,000 | |
Unrecognized stock-based compensation | $ 9,302,000 | |
Weighted-average period for recognition | 2 years 8 months 12 days | |
Employee Stock Purchase Plan | Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Initial offering period | 6 months | |
Consecutive offering period | 5 months | |
Purchase price of common stock, percent of fair market value | 85.00% | |
Shares reserved for future issuance (in shares) | 200,000 | |
Maximum number of shares participant may purchase during each offering period (in shares) | 2,000 | |
Maximum value of shares participant may purchase during each offering period | $ 25,000 |
Stock-Based Awards and Common26
Stock-Based Awards and Common Stock - Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average risk-free interest rate | 0.00% | 0.00% | 0.07% | 0.00% |
Weighted average expected term | 0 years | 0 years | 6 months | 0 years |
Weighted average expected volatility, as a percent | 0.00% | 0.00% | 73.00% | 0.00% |
Expected dividend yield, as a percent | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average grant date fair value per share, in dollars per share | $ 0 | $ 0 | $ 2.14 | $ 0 |
Stock-Based Awards and Common27
Stock-Based Awards and Common Stock - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,006 | $ 1,265 | $ 3,103 | $ 3,518 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 439 | 376 | 1,371 | 1,065 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 567 | $ 889 | $ 1,732 | $ 2,453 |
Employee stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 0 years | 0 years | 6 months | 0 years |
Commitments and Contingencies28
Commitments and Contingencies (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2015USD ($)equipment_lease | Jul. 31, 2015ft² | Jun. 30, 2015ft² | Jan. 31, 2015ft² | |
Property, Plant and Equipment [Line Items] | ||||
Number of equipment leases | equipment_lease | 3 | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2015 (remaining of year) | $ 104 | |||
2,016 | 417 | |||
2,017 | 341 | |||
2,018 | 103 | |||
2019 and beyond | 82 | |||
Total | $ 1,047 | |||
Laboratory space | Operating lease | ||||
Property, Plant and Equipment [Line Items] | ||||
Square footage of laboratory space | ft² | 131 | 2,431 | ||
Square footage of office space | ft² | 3,126 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net loss | $ (7,095) | $ (6,072) | $ (20,710) | $ (20,350) |
Denominator: | ||||
Weighted-average number of common shares outstanding, basic and diluted, in shares | 19,792,000 | 19,713,000 | 19,758,000 | 18,467,000 |
Net loss per share, basic and diluted, in dollars per share | $ (0.36) | $ (0.31) | $ (1.05) | $ (1.10) |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS computation (in shares) | 3,078,065 | 2,390,090 | 3,078,065 | 2,390,090 |