Kindred Biosciences (KIN) 10-Q 3 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
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	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding (in shares)		23,310,559

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 19,866	$ 6,687
Short-term investments	45,272	50,068
Other receivables	2,118	0
Prepaid expenses and other	1,156	1,282
Total current assets	68,412	58,037
Property and equipment, net	2,585	2,441
Long-term investments	3,005	1,052
Other assets	46	46
Total assets	74,048	61,576
Current liabilities:
Accounts payable	994	410
Accrued compensation	903	1,807
Accrued liabilities	950	1,650
Total current liabilities	2,847	3,867
Long-term liability	61	29
Total liabilities	2,908	3,896
Commitments and contingencies (Note 6)
Stockholders' equity:
Common stock, $0.0001 par value; 100,000,000 shares authorized; 23,179,228 and 19,916,290 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	2	2
Additional paid-in capital	158,763	138,810
Accumulated other comprehensive loss	(32)	(31)
Accumulated deficit	(87,593)	(81,101)
Total stockholders' equity	71,140	57,680
Total liabilities and stockholders' equity	$ 74,048	$ 61,576

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	23,179,228	19,916,290
Common stock, shares outstanding (in shares)	23,179,228	19,916,290

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating expenses:
Research and development	$ 3,780	$ 3,437
General and administrative	2,843	2,020
Restructuring costs	0	655
Total operating expenses	6,623	6,112
Loss from operations	(6,623)	(6,112)
Interest and other income, net	131	52
Net loss	(6,492)	(6,060)
Change in unrealized gains (losses) on available-for-sale securities	(1)	68
Comprehensive loss	$ (6,493)	$ (5,992)
Net loss per share, basic and diluted (USD per share)	$ (0.30)	$ (0.31)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	21,516	19,836

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities
Net loss	$ (6,492)	$ (6,060)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	1,241	762
Depreciation and amortization expense	46	38
Amortization of premium on marketable securities	88	77
Changes in operating assets and liabilities:
Prepaid expenses and other	98	(150)
Accounts payable	726	117
Accrued liabilities and accrued compensation	(1,572)	(1,268)
Net cash used in operating activities	(5,865)	(6,484)
Cash Flows from Investing Activities
Purchase of investments	(16,356)	(33,673)
Sale of investments	1,600	0
Maturities of investments	17,510	30,440
Purchase of property and equipment	(332)	(664)
Net cash provided by (used in) investing activities	2,422	(3,897)
Cash Flows from Financing Activities
Exercise of stock options	76	0
Net proceeds from sale of common stock	16,546	0
Net cash provided by financing activities	16,622	0
Net change in cash and cash equivalents	13,179	(10,381)
Cash and cash equivalents at beginning of period	6,687	19,992
Cash and cash equivalents at end of period	19,866	9,611
Supplemental disclosure of non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable and accrued liabilities	28	98
Proceeds due from sale of common stock	$ 2,090	$ 0

Description of Business, Basis

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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. ("KindredBio", "we", "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. On April 25, 2016, we filed a Certificate of Incorporation with the State of Delaware for a wholly owned subsidiary, KindredBio Equine, Inc. ("Subsidiary"). The Subsidiary has one class of capital stock which is designated common stock, $0.0001 par value per share. The authorized number of shares of common stock for the Subsidiary is 1,000 . 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 located 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 consolidated financial statements (“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 of America (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016 included in our annual report on Form 10-K as filed with the SEC on March 1, 2017. 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 consolidated financial statements. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. Stock Offerings In January 2015, we filed a shelf registration statement on Form S-3 to offer and sell, from time to time, equity securities in one or more offerings up to a total dollar amount of $150.0 million. On December 19, 2016, we entered into an At Market Issuance Sales Agreement ("Sales Agreement") with FBR Capital Markets & Co. ("FBR"), pursuant to which we may issue and sell shares of our common stock having an aggregate offering price up to $30.0 million, from time to time, through FBR as our sales agent. In conjunction with the Sales Agreement, FBR will receive compensation based on an aggregate of 3% of the gross proceeds on the sale price per share of our common stock. Any sales made pursuant to the Sales Agreement are deemed an “at-the-market” offering and would be made pursuant to the shelf registration statement on Form S-3. In the quarter ended March 31, 2017, we sold 2,990,604 shares through FBR under the Sales Agreement and received approximately $19,346,000 in gross proceeds. Net proceeds after deducting approximately $582,000 in commissions and approximately $128,000 in offering costs were approximately $18,636,000 , of which $2,090,000 was recorded in accounts receivable at March 31, 2017 and received in April 2017. Subsequent to March 31, 2017 and through April 30, 2017, we sold an additional 91,811 shares under the Sales Agreement and received approximately $639,000 in net proceeds after deducting commissions, of which $60,000 was recorded in accounts receivable at April 30, 2017 and received in May 2017. 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, the sale of our common stock in our April 2014 follow-on public offering and periodic sales of our common stock under the ATM in the first quarter of 2017. We believe that our cash, cash equivalents, short-term and long-term investments totaling $68,143,000 as of March 31, 2017 , 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of 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. 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 consolidated balance sheets as accumulated other comprehensive income (loss). Recently Issued Accounting Pronouncements In May 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers". This new standard will replace most of the existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The new standard, as amended, becomes effective in the first quarter of fiscal year 2018, but allows the adoption of the standard one year earlier if we so choose. To-date we do not have any revenue, but we continue to assess the effect of this new standard. In November 2015, the FASB issued ASU No. 2015-17, "Balance Sheet Classification of Deferred Taxes", requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the consolidated balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The update is effective for public business entities issuing consolidated financial statements for the annual periods beginning after December 15, 2016, and interim periods within those annual periods. We adopted this standard as of March 31, 2017 and the adoption did not have a material impact on our condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities", which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments and also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", requiring organizations that lease assets—referred to as “lessees”—to recognize on the consolidated balance sheet the assets and liabilities for the rights and obligations created by those leases. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. We do not believe there are any other recently issued standards not yet effective that will have a material impact on our consolidated financial statements when the standards become effective.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 3,763 $ 3,763 $ — $ — Commercial paper 15,296 — 15,296 — Short-term investments: U.S. treasury bonds 3,004 3,004 — — U.S. government agency notes 16,000 — 16,000 — Commercial paper 5,413 — 5,413 — Corporate notes 20,855 — 20,855 — Long-term investments: Corporate notes 3,005 — 3,005 — $ 67,336 $ 6,767 $ 60,569 $ — Fair Value Measurements as of December 31, 2016 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 3,157 $ 3,157 $ — $ — Commercial paper 850 — 850 — Short-term investments: U.S. treasury bills 5,997 5,997 — — Commercial paper 4,228 — 4,228 — U.S. government agency notes 13,550 — 13,550 — U.S. treasury bonds and notes 11,015 11,015 — Corporate notes 15,278 — 15,278 — Long-term investments: Corporate notes 1,052 — 1,052 — $ 55,127 $ 20,169 $ 34,958 $ — During the three months ended March 31, 2017 , there were no transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy. At March 31, 2017 and December 31, 2016 , we did not have any financial liabilities which were measured at fair value on a recurring basis.

Investments

Investments	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Investments	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 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 investments by type of security at March 31, 2017 was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: U.S. government agency notes $ 16,009 $ — $ (9 ) $ 16,000 U.S. treasury bonds 3,005 — (1 ) 3,004 Commercial paper 5,413 — — 5,413 Corporate notes 20,875 1 (21 ) 20,855 45,302 1 (31 ) 45,272 Long-term investments: Corporate notes 3,007 1 (3 ) 3,005 Total available-for-sale investments $ 48,309 $ 2 $ (34 ) $ 48,277 The fair value of available-for-sale investments by type of security at December 31, 2016 was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: U.S. treasury bills $ 5,996 $ 1 $ — $ 5,997 Commercial paper 4,228 — — $ 4,228 U.S. government agency notes 13,552 1 (3 ) 13,550 U.S. treasury bonds and notes 11,015 1 (1 ) 11,015 Corporate notes 15,305 — (27 ) 15,278 50,096 3 (31 ) 50,068 Long-term investments: Corporate notes 1,055 — (3 ) 1,052 Total available-for-sale investments $ 51,151 $ 3 $ (34 ) $ 51,120

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Accrued consulting $ 266 $ 106 Accrued research and development costs 509 1,390 Other expenses 154 124 Deferred rent 82 59 1,011 1,679 Less current portion (950 ) (1,650 ) Long-term liability (deferred rent) $ 61 $ 29

Stock-Based Awards and Common S

Stock-Based Awards and Common Stock	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Awards and Common Stock	Stock-Based Awards and Common Stock Common Stock During the quarter ended March 31, 2017, we sold 2,990,604 shares of common stock under the Sales Agreement (see Note 1). 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 March 31, 2017 2016 Shares underlying options granted 920,700 682,833 Weighted-average exercise price $6.39 $3.39 Weighted average risk- free interest rate 1.98 % 1.65 % Weighted average expected term (years) 6.0 6.1 Weighted average expected volatility 70% 82% Expected dividend yield — — Weighted-average grant date fair value per share $4.04 $2.38 In May 2016, we adopted the 2016 Equity Incentive Plan (the “2016 Plan”), and reserved 3,000,000 shares of our common stock for issuance under the 2016 Plan. The 2016 Plan is the successor to our 2012 Equity Incentive Plan (the “2012 Plan”), which was retired on May 23, 2016 upon stockholders’ approval of our 2016 Plan. All awards made under the 2012 Plan shall remain subject to the terms of that plan. Options granted under the 2016 Plan may be either incentive stock options or nonstatutory stock options. The 2016 Plan also provides for the grant of stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards and other stock awards. The exercise price of a stock option may not be less than 100% of the closing price of our common stock on the date of the grant. If, at any time we grant an incentive stock option, and the optionee directly or by attribution owns stock possessing more than 10% of the total combined voting power of all classes of KindredBio stock, the option price shall be at least 110% of the fair value and shall not be exercisable more than five years after the date of grant. Options generally vest over a period of one or four years from the date of grant. Options granted under the 2016 Plan expire no later than 10 years from the date of grant. As of March 31, 2017, there were 993,050 option shares outstanding, 250,000 restricted stock awards issued but unvested, and 1,756,950 shares available for future grants under the 2016 Plan. 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 March 31, 2017 2016 Weighted average risk-free interest rate 0.60% 0.42% Weighted average expected term (years) 0.5 0.5 Weighted average expected volatility 74.2% 72.7% Expected dividend yield — — Weighted-average grant date fair value per share $1.32 $1.28 We did no t issue any common stock under the Stock Purchase Plan for the three months ended March 31, 2017. At March 31, 2017 and December 31, 2016, we had an outstanding liability of $71,000 and $17,000 , respectively, which is included in accrued compensation on the condensed consolidated balance sheets, 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 March 31, 2017 2016 Research and development $ 409 $ 259 General and administrative 832 503 $ 1,241 $ 762 We had an aggregate of approximately $7,812,000 of unrecognized stock-based compensation expense for options outstanding and the Stock Purchase Plan as of March 31, 2017 which is expected to be recognized over a weighted-average period of 2.5 years. On January 23, 2017, we granted 250,000 shares of restricted stock awards to four employees. Shares will vest 25% on each one year anniversary of the grant date provided that the employee is in the employment of the Company on such vesting date. The total stock-based compensation expense related to these awards is $1,600,000 . As of March 31, 2017, we have an aggregate of approximately $1,526,000 unrecognized stock-based compensation expense for restricted stock awards outstanding which is expected to be recognized over a weighted-average period of 3.8 years .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In April 2014, we entered into new non-cancellable operating leases for 2,145 square feet of laboratory space through May 2017 and 6,900 square feet of office space through November 2017. In January, August and November 2015, we amended our original operating lease for laboratory space to expand the facility with an additional 2,431 square feet, 131 square feet and 123 square feet, respectively, of manufacturing space through May 2017. In August 2015, we entered into a new non-cancelable operating lease for 3,126 square feet of office space in San Diego, California through September 2019. In February and October 2016, we further amended our original operating lease for laboratory space to further expand the facility with an additional 3,599 square feet and 2,326 square feet, respectively, of laboratory space through May 2017. Commencing on June 1, 2017, the non-cancellable operating lease for the entire existing laboratory space of a total 10,755 square feet is extended for another 5 years through May 2022. In February 2017, we further amended the operating lease for laboratory space with an additional 721 square feet through May 2022. In April 2017, we renewed our headquarter office lease for 6,900 square feet of office space in Burlingame, California through November 30, 2020. In addition, we have three equipment leases expiring through 2020. As of March 31, 2017 (including amendments entered into after period end), we are obligated to make minimum lease payments under non-cancelable operating leases as follows (in thousands): Year ending December 31, Lease Payments 2017 (remaining of year) $ 538 2018 760 2019 756 2020 678 2021 and after 653 Total $ 3,385

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 2016 Basic and diluted net loss per share: Numerator: Net loss $ (6,492 ) $ (6,060 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 21,516 19,836 Net loss per share, basic and diluted $ (0.30 ) $ (0.31 ) 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 4,458,279 shares of common stock and 250,000 shares unvested restricted stock awards as of March 31, 2017 , were excluded from the computation of diluted net loss per share attributable to common stockholders for the three months ended March 31, 2017 , because their effect was anti-dilutive. Stock options to purchase 3,543,683 shares of common stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the three months ended March 31, 2016 , because their effect was anti-dilutive.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On April 6, 2017, we renewed our headquarters office lease of 6,900 square feet in Burlingame, California for another 3 years from December 1, 2017 to November 30, 2020.

Description of Business, Basi14

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Kindred Biosciences, Inc. ("KindredBio", "we", "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. On April 25, 2016, we filed a Certificate of Incorporation with the State of Delaware for a wholly owned subsidiary, KindredBio Equine, Inc. ("Subsidiary"). The Subsidiary has one class of capital stock which is designated common stock, $0.0001 par value per share. The authorized number of shares of common stock for the Subsidiary is 1,000 . 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 located 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 consolidated financial statements (“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 of America (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016 included in our annual report on Form 10-K as filed with the SEC on March 1, 2017. 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 consolidated financial statements. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation.
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, the sale of our common stock in our April 2014 follow-on public offering and periodic sales of our common stock under the ATM in the first quarter of 2017. We believe that our cash, cash equivalents, short-term and long-term investments totaling $68,143,000 as of March 31, 2017 , 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of 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.
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 consolidated balance sheets as accumulated other comprehensive income (loss).
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers". This new standard will replace most of the existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The new standard, as amended, becomes effective in the first quarter of fiscal year 2018, but allows the adoption of the standard one year earlier if we so choose. To-date we do not have any revenue, but we continue to assess the effect of this new standard. In November 2015, the FASB issued ASU No. 2015-17, "Balance Sheet Classification of Deferred Taxes", requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the consolidated balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The update is effective for public business entities issuing consolidated financial statements for the annual periods beginning after December 15, 2016, and interim periods within those annual periods. We adopted this standard as of March 31, 2017 and the adoption did not have a material impact on our condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities", which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments and also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", requiring organizations that lease assets—referred to as “lessees”—to recognize on the consolidated balance sheet the assets and liabilities for the rights and obligations created by those leases. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. We do not believe there are any other recently issued standards not yet effective that will have a material impact on our consolidated financial statements when the standards become effective.
Fair Value Measurement	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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 3,763 $ 3,763 $ — $ — Commercial paper 15,296 — 15,296 — Short-term investments: U.S. treasury bonds 3,004 3,004 — — U.S. government agency notes 16,000 — 16,000 — Commercial paper 5,413 — 5,413 — Corporate notes 20,855 — 20,855 — Long-term investments: Corporate notes 3,005 — 3,005 — $ 67,336 $ 6,767 $ 60,569 $ — Fair Value Measurements as of December 31, 2016 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 3,157 $ 3,157 $ — $ — Commercial paper 850 — 850 — Short-term investments: U.S. treasury bills 5,997 5,997 — — Commercial paper 4,228 — 4,228 — U.S. government agency notes 13,550 — 13,550 — U.S. treasury bonds and notes 11,015 11,015 — Corporate notes 15,278 — 15,278 — Long-term investments: Corporate notes 1,052 — 1,052 — $ 55,127 $ 20,169 $ 34,958 $ —

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of Fair Value of Available-for-Sale Short Term Investments	The fair value of available-for-sale investments by type of security at March 31, 2017 was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: U.S. government agency notes $ 16,009 $ — $ (9 ) $ 16,000 U.S. treasury bonds 3,005 — (1 ) 3,004 Commercial paper 5,413 — — 5,413 Corporate notes 20,875 1 (21 ) 20,855 45,302 1 (31 ) 45,272 Long-term investments: Corporate notes 3,007 1 (3 ) 3,005 Total available-for-sale investments $ 48,309 $ 2 $ (34 ) $ 48,277 The fair value of available-for-sale investments by type of security at December 31, 2016 was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: U.S. treasury bills $ 5,996 $ 1 $ — $ 5,997 Commercial paper 4,228 — — $ 4,228 U.S. government agency notes 13,552 1 (3 ) 13,550 U.S. treasury bonds and notes 11,015 1 (1 ) 11,015 Corporate notes 15,305 — (27 ) 15,278 50,096 3 (31 ) 50,068 Long-term investments: Corporate notes 1,055 — (3 ) 1,052 Total available-for-sale investments $ 51,151 $ 3 $ (34 ) $ 51,120

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Accrued consulting $ 266 $ 106 Accrued research and development costs 509 1,390 Other expenses 154 124 Deferred rent 82 59 1,011 1,679 Less current portion (950 ) (1,650 ) Long-term liability (deferred rent) $ 61 $ 29

Stock-Based Awards and Common18

Stock-Based Awards and Common Stock (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 2016 Shares underlying options granted 920,700 682,833 Weighted-average exercise price $6.39 $3.39 Weighted average risk- free interest rate 1.98 % 1.65 % Weighted average expected term (years) 6.0 6.1 Weighted average expected volatility 70% 82% Expected dividend yield — — Weighted-average grant date fair value per share $4.04 $2.38
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 March 31, 2017 2016 Weighted average risk-free interest rate 0.60% 0.42% Weighted average expected term (years) 0.5 0.5 Weighted average expected volatility 74.2% 72.7% Expected dividend yield — — Weighted-average grant date fair value per share $1.32 $1.28
Schedule of Stock-Based Compensation Expense	We recorded stock-based compensation expense as follows (in thousands): Three months ended March 31, 2017 2016 Research and development $ 409 $ 259 General and administrative 832 503 $ 1,241 $ 762

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases	As of March 31, 2017 (including amendments entered into after period end), we are obligated to make minimum lease payments under non-cancelable operating leases as follows (in thousands): Year ending December 31, Lease Payments 2017 (remaining of year) $ 538 2018 760 2019 756 2020 678 2021 and after 653 Total $ 3,385

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 2016 Basic and diluted net loss per share: Numerator: Net loss $ (6,492 ) $ (6,060 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 21,516 19,836 Net loss per share, basic and diluted $ (0.30 ) $ (0.31 )

Description of Business, Basi21

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	Dec. 19, 2016USD ($)	Apr. 25, 2016class_of_stock$ / sharesshares	Apr. 30, 2017USD ($)shares	Jan. 31, 2015USD ($)	Mar. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016$ / sharesshares
Subsidiary or Equity Method Investee [Line Items]
Common stock, par value (USD per share) | $ / shares					$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares) | shares					100,000,000	100,000,000
Maximum dollar amount of equity and debt securities offered				$ 150,000
Maximum aggregate offering price of common stock sold under agreement	$ 30,000
Cash, cash equivalents, and short-term investments					$ 68,143
Substantial cash and cash equivalent, term (in months)					24 months
KindredBio Equine, Inc
Subsidiary or Equity Method Investee [Line Items]
Number of classes of stock | class_of_stock		1
Common stock, par value (USD per share) | $ / shares		$ 0.0001
Common stock, shares authorized (in shares) | shares		1,000
FBR Capital Markets & Co.
Subsidiary or Equity Method Investee [Line Items]
Commission percentage of gross proceeds	3.00%
Number of shares issued in transaction (in shares) | shares					2,990,604
Sale of stock, consideration received on transaction, gross					$ 19,346
Payments for commissions					582
Offering costs					128
Net proceeds received in sale of stock					18,636
FBR Capital Markets & Co. | Accounts Receivable
Subsidiary or Equity Method Investee [Line Items]
Sale of stock, consideration receivable					$ 2,090
Subsequent Event
Subsidiary or Equity Method Investee [Line Items]
Number of shares issued in transaction (in shares) | shares			91,811
Net proceeds received in sale of stock			$ 639
Subsequent Event | Accounts Receivable
Subsidiary or Equity Method Investee [Line Items]
Sale of stock, consideration receivable			$ 60

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:		$ 0
Recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	$ 67,336,000	55,127,000
Financial liabilities measured at fair value	0	0
Recurring basis | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	6,767,000	20,169,000
Recurring basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	60,569,000	34,958,000
Recurring basis | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0	0
Recurring basis | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	15,296,000	850,000
Short-term investments:	5,413,000	4,228,000
Recurring basis | Commercial paper | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Short-term investments:	0	0
Recurring basis | Commercial paper | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	15,296,000	850,000
Short-term investments:	5,413,000	4,228,000
Recurring basis | Commercial paper | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0
Short-term investments:	0	0
Recurring basis | U.S. treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		5,997,000
Long-term investments:		1,052,000
Recurring basis | 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:		5,997,000
Long-term investments:		0
Recurring basis | 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:		0
Long-term investments:		1,052,000
Recurring basis | 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
Long-term investments:		0
Recurring basis | U.S. treasury bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	3,004,000	11,015,000
Recurring basis | U.S. treasury bonds | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	3,004,000	11,015,000
Recurring basis | U.S. treasury bonds | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Recurring basis | U.S. treasury bonds | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0
Recurring basis | U.S. government agency notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	16,000,000	13,550,000
Recurring basis | U.S. government 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	0
Recurring basis | U.S. government agency notes | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	16,000,000	13,550,000
Recurring basis | U.S. government agency notes | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Recurring basis | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	20,855,000	15,278,000
Long-term investments:	3,005,000
Recurring basis | Corporate 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
Long-term investments:	0
Recurring basis | Corporate notes | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	20,855,000	15,278,000
Long-term investments:	3,005,000
Recurring basis | Corporate notes | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Long-term investments:	0
Recurring basis | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	3,763,000	3,157,000
Recurring basis | 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:	3,763,000	3,157,000
Recurring basis | 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
Recurring basis | Money market funds | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 0	$ 0

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Short-term Investments
Gain (Loss) on Investments [Line Items]
Amortized Cost	$ 45,302	$ 50,096
Gross Unrealized Gains	1	3
Gross Unrealized Losses	(31)	(31)
Fair Value	45,272	50,068
Short-term Investments | U.S. government agency notes
Gain (Loss) on Investments [Line Items]
Amortized Cost	16,009	13,552
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(9)	(3)
Fair Value	16,000	13,550
Short-term Investments | U.S. treasury bonds
Gain (Loss) on Investments [Line Items]
Amortized Cost	3,005	11,015
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(1)	(1)
Fair Value	3,004	11,015
Short-term Investments | Commercial paper
Gain (Loss) on Investments [Line Items]
Amortized Cost	5,413	4,228
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	5,413	4,228
Short-term Investments | Corporate notes
Gain (Loss) on Investments [Line Items]
Amortized Cost	20,875	15,305
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(21)	(27)
Fair Value	20,855	15,278
Short-term Investments | U.S. treasury bills
Gain (Loss) on Investments [Line Items]
Amortized Cost		5,996
Gross Unrealized Gains		1
Gross Unrealized Losses		0
Fair Value		5,997
Long-term Investments
Gain (Loss) on Investments [Line Items]
Amortized Cost	48,309	51,151
Gross Unrealized Gains	2	3
Gross Unrealized Losses	(34)	(34)
Fair Value	48,277	51,120
Long-term Investments | Corporate notes
Gain (Loss) on Investments [Line Items]
Amortized Cost	3,007	1,055
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(3)	(3)
Fair Value	$ 3,005	$ 1,052

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued consulting	$ 266	$ 106
Accrued research and development costs	509	1,390
Other expenses	154	124
Deferred rent	82	59
Accrued liabilities	1,011	1,679
Less current portion	(950)	(1,650)
Long-term liability (deferred rent)	$ 61	$ 29

Stock-Based Awards and Common25

Stock-Based Awards and Common Stock - Narrative (Details)	Jan. 23, 2017USD ($)employeeshares	Jan. 01, 2015	May 31, 2016shares	Dec. 31, 2014USD ($)shares	Mar. 31, 2017USD ($)shares	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding liability included in accrued compensation | $					$ 71,000		$ 17,000
Number of employees granted stock options | employee	4
Stock-based compensation expense | $					1,241,000	$ 762,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation | $					$ 7,812,000
Weighted-average period for recognition (in years)					2 years 5 months 27 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Unrecognized stock-based compensation | $					$ 1,526,000
Weighted-average period for recognition (in years)					3 years 9 months 26 days
Number of awards issued in the period (in shares)	250,000
Vesting rights percentage	25.00%
Stock-based compensation expense | $	$ 1,600,000
2016 Equity Incentive Plan | Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance (in shares)			3,000,000
Purchase price of common stock, percent of fair market value			100.00%
Ownership percentage			10.00%
Purchase price of common stock if ownership threshold is reached, percent			110.00%
Expected term			10 years
Common stock outstanding (in shares)					993,050
Number of shares available for grant (in shares)					1,756,950
Employee Stock Purchase Plan | Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent of fair market value				85.00%
Initial offering period				6 months
Consecutive offering period		5 months
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 issued to employee stock purchase plans (in shares)					0
Minimum | 2016 Equity Incentive Plan | Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Maximum | 2016 Equity Incentive Plan | Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise period			5 years
Vesting period			4 years
Restricted Stock | 2016 Equity Incentive Plan | Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued but unvested (in shares)					250,000
FBR Capital Markets & Co.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued in transaction (in shares)					2,990,604

Stock-Based Awards and Common26

Stock-Based Awards and Common Stock - Stock Option Plan (Details) - Stock Option Plan - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares underlying options granted (in shares)	920,700	682,833
Weighted-average exercise price (USD per share)	$ 6.39	$ 3.39
Weighted average risk- free interest rate	1.98%	1.65%
Weighted average expected term (in years)	6 years	6 years 1 month 6 days
Weighted average expected volatility	70.00%	82.00%
Expected dividend yield	0.00%	0.00%
Weighted-average grant date fair value per share (USD per share)	$ 4.04	$ 2.38

Stock-Based Awards and Common27

Stock-Based Awards and Common Stock - Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average risk- free interest rate	0.60%	0.42%
Weighted average expected term (in years)	6 months	6 months
Weighted average expected volatility	74.20%	72.70%
Expected dividend yield	0.00%	0.00%
Weighted-average grant date fair value per share (USD per share)	$ 1.32	$ 1.28

Stock-Based Awards and Common28

Stock-Based Awards and Common Stock - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,241	$ 762
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	409	259
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 832	$ 503

Commitments and Contingencies29

Commitments and Contingencies (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2016ft²	Mar. 31, 2017USD ($)equipment_lease	Apr. 30, 2017ft²	Apr. 06, 2017ft²	Feb. 28, 2017ft²	Feb. 29, 2016ft²	Nov. 30, 2015ft²	Aug. 31, 2015ft²	Jan. 31, 2015ft²	Apr. 30, 2014ft²
Property, Plant and Equipment [Line Items]
Number of equipment leases (in equipment leases) | equipment_lease		3
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2017 (remaining of year)		$ 538
2,018		760
2,019		756
2,020		678
2021 and after		653
Total		$ 3,385
Laboratory space | Operating lease
Property, Plant and Equipment [Line Items]
Square footage of office or laboratory space (in sqft) | ft²										2,145
Square footage of laboratory space (in sqft) | ft²	2,326				721	3,599	123	131	2,431
Area of Real Estate Property, Total | ft²	10,755
Operating Leases, Extension Term	5 years
Office Space | Operating lease
Property, Plant and Equipment [Line Items]
Square footage of office or laboratory space (in sqft) | ft²								3,126		6,900
Subsequent Event | Office Space | Operating lease
Property, Plant and Equipment [Line Items]
Square footage of office or laboratory space (in sqft) | ft²			6,900	6,900

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net loss	$ (6,492)	$ (6,060)
Denominator:
Weighted-average number of common shares outstanding, basic and diluted (in shares)	21,516,000	19,836,000
Net loss per share, basic and diluted (USD per share)	$ (0.30)	$ (0.31)
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS computation (in shares)	4,458,279	3,543,683
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS computation (in shares)	250,000

Subsequent Event (Details)

Subsequent Event (Details) - Operating lease - Office Space - ft²	Apr. 06, 2017	Apr. 30, 2017	Aug. 31, 2015	Apr. 30, 2014
Subsequent Event [Line Items]
Square footage of office space (in sqft)			3,126	6,900
Subsequent Event
Subsequent Event [Line Items]
Square footage of office space (in sqft)	6,900	6,900
Renewal term	3 years