Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 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 | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 27,837,813 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 36,853 | $ 6,687 |
Short-term investments | 36,692 | 50,068 |
Other receivables | 492 | 0 |
Prepaid expenses and other | 1,235 | 1,282 |
Total current assets | 75,272 | 58,037 |
Property and equipment, net | 2,553 | 2,441 |
Long-term investments | 1,003 | 1,052 |
Other assets | 49 | 46 |
Total assets | 78,877 | 61,576 |
Current liabilities: | ||
Accounts payable | 301 | 410 |
Accrued compensation | 1,208 | 1,807 |
Accrued liabilities | 1,012 | 1,650 |
Total current liabilities | 2,521 | 3,867 |
Long-term liability | 87 | 29 |
Total liabilities | 2,608 | 3,896 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value; 100,000,000 shares authorized; 24,813,229 and 19,916,290 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 2 | 2 |
Additional paid-in capital | 170,655 | 138,810 |
Accumulated other comprehensive loss | (28) | (31) |
Accumulated deficit | (94,360) | (81,101) |
Total stockholders' equity | 76,269 | 57,680 |
Total liabilities and stockholders' equity | $ 78,877 | $ 61,576 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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) | 24,813,229 | 19,916,290 |
Common stock, shares outstanding (in shares) | 24,813,229 | 19,916,290 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating expenses: | ||||
Research and development | $ 3,866 | $ 3,161 | $ 7,646 | $ 6,598 |
General and administrative | 3,056 | 1,865 | 5,899 | 3,885 |
Restructuring costs | 0 | 0 | 0 | 655 |
Total operating expenses | 6,922 | 5,026 | 13,545 | 11,138 |
Loss from operations | (6,922) | (5,026) | (13,545) | (11,138) |
Interest and other income, net | 155 | 79 | 286 | 131 |
Net loss | (6,767) | (4,947) | (13,259) | (11,007) |
Change in unrealized gains (losses) on available-for-sale securities | 4 | 15 | 3 | 83 |
Comprehensive loss | $ (6,763) | $ (4,932) | $ (13,256) | $ (10,924) |
Net loss per share, basic and diluted (USD per share) | $ (0.29) | $ (0.25) | $ (0.59) | $ (0.55) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 23,409 | 19,865 | 22,467 | 19,851 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net loss | $ (13,259) | $ (11,007) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 2,561 | 1,684 |
Depreciation and amortization expense | 162 | 75 |
Loss on disposal of property and equipment | 9 | 0 |
Amortization of premium on marketable securities | 162 | 132 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other | (328) | (187) |
Accounts payable | 515 | (221) |
Accrued liabilities and accrued compensation | (1,184) | (1,045) |
Net cash used in operating activities | (11,362) | (10,569) |
Cash Flows from Investing Activities | ||
Purchase of investments | (24,976) | (47,201) |
Sale of investments | 2,896 | 0 |
Maturities of investments | 35,346 | 54,563 |
Purchase of property and equipment | (902) | (832) |
Net cash provided by investing activities | 12,364 | 6,530 |
Cash Flows from Financing Activities | ||
Exercise of stock options and purchase of ESPP shares | 202 | 90 |
Net proceeds from sale of common stock | 28,962 | 0 |
Net cash provided by financing activities | 29,164 | 90 |
Net change in cash and cash equivalents | 30,166 | (3,949) |
Cash and cash equivalents at beginning of period | 6,687 | 19,992 |
Cash and cash equivalents at end of period | 36,853 | 16,043 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable and accrued liabilities | 50 | 98 |
Proceeds due from exercise of stock options | $ 120 | $ 0 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 financial statements. The accompanying 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. During the six months ended June 30, 2017, we completed the sale of 4,501,985 shares of common stock under the Sales Agreement. Net proceeds, after deducting approximately $906,000 in commissions and fees and approximately $132,000 in offering costs, were approximately $28,962,000 . On July 12, 2017, we completed an underwritten public offering of 3,000,000 shares of common stock at an offering price of $7.50 per share for total gross proceeds of $22,500,000 . Net proceeds, after deducting underwriting commission and offering costs, were approximately $20,987,000 . 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, periodic sales of our common stock under the ATM in the first half year of 2017 and the sale of our common stock in our July 2017 follow-on public offering. We believe that our cash, cash equivalents, short-term and long-term investments totaling $74,548,000 as of June 30, 2017 , are sufficient to fund our planned operations through 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. The initial analysis identifying areas that will be impacted by the new guidance is substantially complete, and we continue to assess all implications of this standard and related financial disclosures. Additionally, we continue to monitor modifications, clarifications, and interpretations issued by the FASB that may impact its assessment. We do not currently have and have never had any contracts that are within the scope of ASC 606, "Revenue from Contracts with Customers" or its predecessor guidance, ASC 605, "Revenue Recognition". Accordingly, based on our current assessment as of June 30, 2017, we do not believe adopting this guidance will have a material impact on our financial statements as we are not currently generating revenues. 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 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 financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Scope of Modification Accounting”, which amends ASC Topic 718, “Compensation - Stock Compensation”. The ASU includes provisions intended to (1) provide clarity and (2) reduce diversity in practice and reduce cost and complexity when calculate stock compensation, on a change to the terms or conditions of a share-based payment award. ASU 2017-09 is effective for public business entities for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption will be permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the new guidance and have not determined the impact this standard may have on our financial statements. We do not believe there are any other recently issued standards not yet effective that will have a material impact on our financial statements when the standards become effective. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 June 30, 2017 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 132 $ 132 $ — $ — US Treasury bills 1,400 1,400 — — Commercial paper 34,881 — 34,881 — Short-term investments: U.S. treasury bonds 10,690 — 10,690 — U.S. government agency notes 999 999 — — Commercial paper 6,187 — 6,187 — Corporate notes 18,816 — 18,816 — Long-term investments: Corporate notes 1,003 — 1,003 — $ 74,108 $ 2,531 $ 71,577 $ — 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 six months ended June 30, 2017 , there were no transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy. At June 30, 2017 and December 31, 2016 , we did not have any financial liabilities which were measured at fair value on a recurring basis. |
Investments
Investments | 6 Months Ended |
Jun. 30, 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 June 30, 2017 was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: U.S. government agency notes $ 1,000 $ — $ (1 ) $ 999 U.S. treasury bonds 10,698 — (8 ) 10,690 Commercial paper 6,187 — — 6,187 Corporate notes 18,833 2 (19 ) 18,816 36,718 2 (28 ) 36,692 Long-term investments: Corporate notes 1,005 — (2 ) 1,003 Total available-for-sale investments $ 37,723 $ 2 $ (30 ) $ 37,695 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 | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): June 30, 2017 December 31, 2016 Accrued consulting $ 238 $ 106 Accrued research and development costs 599 1,390 Other expenses 177 124 Deferred rent 85 59 1,099 1,679 Less current portion (1,012 ) (1,650 ) Long-term liability (deferred rent) $ 87 $ 29 |
Common Stock and Stock-Based Aw
Common Stock and Stock-Based Awards | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock and Stock-Based Awards | Common Stock and Stock-Based Awards Common Stock During the six months ended June 30, 2017, we sold 4,501,985 shares of common stock under the Sales Agreement (see Note 1). Stock-Based Awards 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 June 30, Six months ended June 30, 2017 2016 2017 2016 Shares underlying options granted 84,000 88,350 1,004,700 771,183 Weighted-average exercise price $6.90 $3.58 $6.44 $3.41 Weighted average risk- free interest rate 1.89 % 1.31 % 1.97 % 1.60 % Weighted average expected term (years) 6.1 5.9 6.0 6.3 Weighted average expected volatility 68% 82% 70% 83% Expected dividend yield — — — — Weighted-average grant date fair value per share $4.29 $2.48 $4.06 $2.39 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 June 30, 2017 , there were 1,067,050 option shares outstanding, 250,000 restricted stock awards issued but unvested, and 1,682,950 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 June 30, Six months ended June 30, 2017 2016 2017 2016 Weighted average risk-free interest rate 1.07% 0.49% 0.84% 0.46% Weighted average expected term (years) 0.5 0.5 0.5 0.5 Weighted average expected volatility 54.5% 106% 64.4% 89% Expected dividend yield — — — — Weighted-average grant date fair value per share $1.96 $1.64 $1.64 $1.46 Under the Stock Purchase Plan, employees purchased 22,455 shares of common stock for $77,000 during the three months ended June 30, 2017 . At June 30, 2017 and December 31, 2016, we had an outstanding liability of $23,000 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 June 30, Six months ended June 30, 2017 2016 2017 2016 Research and development $ 433 $ 393 $ 842 $ 652 General and administrative 887 529 1,719 1,032 $ 1,320 $ 922 $ 2,561 $ 1,684 We had an aggregate of approximately $6,990,000 of unrecognized stock-based compensation expense for options outstanding and the Stock Purchase Plan as of June 30, 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 June 30, 2017 , we have an aggregate of approximately $1,426,000 unrecognized stock-based compensation expense for restricted stock awards outstanding which is expected to be recognized over a weighted-average period of 3.6 years . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 headquarters office lease for 6,900 square feet of office space in Burlingame, California through November 30, 2020 and in June 2017, we amended the lease with an additional 1,190 square feet of office space through November 30, 2020. In addition, we have three equipment leases expiring through 2020. As of June 30, 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) $ 387 2018 810 2019 808 2020 724 2021 and after 653 Total $ 3,382 |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 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 June 30, Six months ended June 30, 2017 2016 2017 2016 Basic and diluted net loss per share: Numerator: Net loss $ (6,767 ) $ (4,947 ) $ (13,259 ) $ (11,007 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 23,409 19,865 22,467 19,851 Net loss per share, basic and diluted $ (0.29 ) $ (0.25 ) $ (0.59 ) $ (0.55 ) 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 4,432,114 shares of common stock and 250,000 shares unvested restricted stock awards as of June 30, 2017 , were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2017 , because their effect was anti-dilutive. Stock options to purchase 3,536,632 shares of common stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2016 , because their effect was anti-dilutive. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 12, 2017, we completed an underwritten public offering of 3,000,000 shares of common stock at an offering price of $7.50 per share for total gross proceeds of $22,500,000 . Net proceeds, after deducting underwriting commissions and offering costs, were approximately $20,987,000 . On June 21, 2017, we entered into a purchase agreement with Strategic Veterinary Pharmaceuticals, Inc. ("SVP") for the purchase of an approximately 180,000 sq. ft. biologics plant ("the Plant") with clean rooms, utility, equipment, and related quality documentation suitable for small molecule and biologics manufacturing, that is located in Elwood, Kansas. The purchase agreement is subject to the satisfaction of certain conditions described therein, KindredBio shall pay a purchase price of $3,750,000 to purchase the Plant, which includes approximately eight acres of land located at 1411 Oak Street, Elwood, Kansas, all improvements located at the Plant, and all personal property and intangible property owned by SVP and located at the Plant or used in connection with the operation of the Plant. We closed escrow on August 7, 2017 upon completion of the diligence period and satisfactions of the conditions of escrow. |
Description of Business, Basi14
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 financial statements. The accompanying 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, periodic sales of our common stock under the ATM in the first half year of 2017 and the sale of our common stock in our July 2017 follow-on public offering. We believe that our cash, cash equivalents, short-term and long-term investments totaling $74,548,000 as of June 30, 2017 , are sufficient to fund our planned operations through 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. The initial analysis identifying areas that will be impacted by the new guidance is substantially complete, and we continue to assess all implications of this standard and related financial disclosures. Additionally, we continue to monitor modifications, clarifications, and interpretations issued by the FASB that may impact its assessment. We do not currently have and have never had any contracts that are within the scope of ASC 606, "Revenue from Contracts with Customers" or its predecessor guidance, ASC 605, "Revenue Recognition". Accordingly, based on our current assessment as of June 30, 2017, we do not believe adopting this guidance will have a material impact on our financial statements as we are not currently generating revenues. 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 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 financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Scope of Modification Accounting”, which amends ASC Topic 718, “Compensation - Stock Compensation”. The ASU includes provisions intended to (1) provide clarity and (2) reduce diversity in practice and reduce cost and complexity when calculate stock compensation, on a change to the terms or conditions of a share-based payment award. ASU 2017-09 is effective for public business entities for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption will be permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the new guidance and have not determined the impact this standard may have on our financial statements. We do not believe there are any other recently issued standards not yet effective that will have a material impact on our financial statements when the standards become effective. |
Fair Value 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 132 $ 132 $ — $ — US Treasury bills 1,400 1,400 — — Commercial paper 34,881 — 34,881 — Short-term investments: U.S. treasury bonds 10,690 — 10,690 — U.S. government agency notes 999 999 — — Commercial paper 6,187 — 6,187 — Corporate notes 18,816 — 18,816 — Long-term investments: Corporate notes 1,003 — 1,003 — $ 74,108 $ 2,531 $ 71,577 $ — 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: U.S. government agency notes $ 1,000 $ — $ (1 ) $ 999 U.S. treasury bonds 10,698 — (8 ) 10,690 Commercial paper 6,187 — — 6,187 Corporate notes 18,833 2 (19 ) 18,816 36,718 2 (28 ) 36,692 Long-term investments: Corporate notes 1,005 — (2 ) 1,003 Total available-for-sale investments $ 37,723 $ 2 $ (30 ) $ 37,695 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) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): June 30, 2017 December 31, 2016 Accrued consulting $ 238 $ 106 Accrued research and development costs 599 1,390 Other expenses 177 124 Deferred rent 85 59 1,099 1,679 Less current portion (1,012 ) (1,650 ) Long-term liability (deferred rent) $ 87 $ 29 |
Common Stock and Stock-Based 18
Common Stock and Stock-Based Awards (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six months ended June 30, 2017 2016 2017 2016 Shares underlying options granted 84,000 88,350 1,004,700 771,183 Weighted-average exercise price $6.90 $3.58 $6.44 $3.41 Weighted average risk- free interest rate 1.89 % 1.31 % 1.97 % 1.60 % Weighted average expected term (years) 6.1 5.9 6.0 6.3 Weighted average expected volatility 68% 82% 70% 83% Expected dividend yield — — — — Weighted-average grant date fair value per share $4.29 $2.48 $4.06 $2.39 |
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 June 30, Six months ended June 30, 2017 2016 2017 2016 Weighted average risk-free interest rate 1.07% 0.49% 0.84% 0.46% Weighted average expected term (years) 0.5 0.5 0.5 0.5 Weighted average expected volatility 54.5% 106% 64.4% 89% Expected dividend yield — — — — Weighted-average grant date fair value per share $1.96 $1.64 $1.64 $1.46 |
Schedule of Stock-Based Compensation Expense | We recorded stock-based compensation expense as follows (in thousands): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Research and development $ 433 $ 393 $ 842 $ 652 General and administrative 887 529 1,719 1,032 $ 1,320 $ 922 $ 2,561 $ 1,684 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases | As of June 30, 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) $ 387 2018 810 2019 808 2020 724 2021 and after 653 Total $ 3,382 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six months ended June 30, 2017 2016 2017 2016 Basic and diluted net loss per share: Numerator: Net loss $ (6,767 ) $ (4,947 ) $ (13,259 ) $ (11,007 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 23,409 19,865 22,467 19,851 Net loss per share, basic and diluted $ (0.29 ) $ (0.25 ) $ (0.59 ) $ (0.55 ) |
Description of Business, Basi21
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) | Jul. 12, 2017USD ($)$ / sharesshares | Dec. 19, 2016USD ($) | Apr. 25, 2016class_of_stock$ / sharesshares | Jan. 31, 2015USD ($) | Jun. 30, 2017USD ($)$ / 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 | $ 150,000,000 | |||||
Maximum aggregate offering price of common stock sold under agreement | $ 30,000,000 | |||||
Cash, cash equivalents, and short-term investments | $ 74,548,000 | |||||
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% | |||||
Payments for commissions | $ 906,000 | |||||
Offering costs | 132,000 | |||||
Net proceeds received in sale of stock | $ 28,962,000 | |||||
Stock issued during period (in shares) | shares | 4,501,985 | |||||
Subsequent Event | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Net proceeds received in sale of stock | $ 20,987,000 | |||||
Stock issued during period (in shares) | shares | 3,000,000 | |||||
Shares issued (USD per share) | $ / shares | $ 7.50 | |||||
Gross proceeds received in sale of stock | $ 22,500,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 30, 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 | $ 74,108,000 | 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 | 2,531,000 | 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 | 71,577,000 | 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 | 34,881,000 | 850,000 |
Short-term investments | 6,187,000 | 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 | 34,881,000 | 850,000 |
Short-term investments | 6,187,000 | 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 bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 10,690,000 | 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 | 0 | 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 | 10,690,000 | 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 | 999,000 | 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 | 999,000 | 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 | 0 | 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 | 18,816,000 | 15,278,000 |
Long-term investments | 1,003,000 | |
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 | 18,816,000 | 15,278,000 |
Long-term investments | 1,003,000 | |
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 | 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 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 132,000 | 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 | 132,000 | 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 |
Recurring basis | U.S. treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,400,000 | |
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] | ||
Cash equivalents | $ 1,400,000 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Short-term Investments | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | $ 36,718 | $ 50,096 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | (28) | (31) |
Fair Value | 36,692 | 50,068 |
Short-term Investments | U.S. government agency notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 1,000 | 13,552 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (1) | (3) |
Fair Value | 999 | 13,550 |
Short-term Investments | U.S. treasury bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 10,698 | 11,015 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (8) | (1) |
Fair Value | 10,690 | 11,015 |
Short-term Investments | Commercial paper | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 6,187 | 4,228 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 6,187 | 4,228 |
Short-term Investments | Corporate notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 18,833 | 15,305 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (19) | (27) |
Fair Value | 18,816 | 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 | 37,723 | 51,151 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | (30) | (34) |
Fair Value | 37,695 | 51,120 |
Long-term Investments | Corporate notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 1,005 | 1,055 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (3) |
Fair Value | $ 1,003 | $ 1,052 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued consulting | $ 238 | $ 106 |
Accrued research and development costs | 599 | 1,390 |
Other expenses | 177 | 124 |
Deferred rent | 85 | 59 |
Accrued liabilities | 1,099 | 1,679 |
Less current portion | (1,012) | (1,650) |
Long-term liability (deferred rent) | $ 87 | $ 29 |
Common Stock and Stock-Based 25
Common Stock and Stock-Based Awards - Narrative (Details) | Jan. 23, 2017USD ($)employeeshares | Jan. 01, 2015 | May 31, 2016shares | Dec. 31, 2014USD ($)shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Outstanding liability included in accrued compensation | $ | $ 23,000 | $ 23,000 | $ 17,000 | ||||||
Number of employees granted stock options | employee | 4 | ||||||||
Stock-based compensation expense | $ | 1,320,000 | $ 922,000 | 2,561,000 | $ 1,684,000 | |||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Unrecognized stock-based compensation | $ | 1,426,000 | $ 1,426,000 | |||||||
Weighted-average period for recognition (in years) | 3 years 6 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 | ||||||||
Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock-based compensation | $ | $ 6,990,000 | $ 6,990,000 | |||||||
Weighted-average period for recognition (in years) | 2 years 6 months | ||||||||
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) | 1,067,050 | 1,067,050 | |||||||
Number of shares available for grant (in shares) | 1,682,950 | 1,682,950 | |||||||
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) | 22,455 | ||||||||
Value of stock issued, employee stock purchase plans | $ | $ 77,000 | ||||||||
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 | 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) | 4,501,985 |
Common Stock and Stock-Based 26
Common Stock and Stock-Based Awards - Stock Option Plan (Details) - Stock Option Plan - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares underlying options granted (in shares) | 84,000 | 88,350 | 1,004,700 | 771,183 |
Weighted-average exercise price (USD per share) | $ 6.90 | $ 3.58 | $ 6.44 | $ 3.41 |
Weighted average risk- free interest rate | 1.89% | 1.31% | 1.97% | 1.60% |
Weighted average expected term (in years) | 6 years 1 month 6 days | 5 years 10 months 24 days | 6 years | 6 years 3 months 18 days |
Weighted average expected volatility | 68.00% | 82.00% | 70.00% | 83.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average grant date fair value per share (USD per share) | $ 4.29 | $ 2.48 | $ 4.06 | $ 2.39 |
Common Stock and Stock-Based 27
Common Stock and Stock-Based Awards - Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average risk- free interest rate | 1.07% | 0.49% | 0.84% | 0.46% |
Weighted average expected term (in years) | 6 months | 6 months | 6 months | 6 months |
Weighted average expected volatility | 54.50% | 106.00% | 64.40% | 89.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average grant date fair value per share (USD per share) | $ 1.96 | $ 1.64 | $ 1.64 | $ 1.46 |
Common Stock and Stock-Based 28
Common Stock and Stock-Based Awards - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,320 | $ 922 | $ 2,561 | $ 1,684 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 433 | 393 | 842 | 652 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 887 | $ 529 | $ 1,719 | $ 1,032 |
Commitments and Contingencies29
Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |||||||
Oct. 31, 2016ft² | Jun. 30, 2017USD ($)ft²equipment_lease | Apr. 30, 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) | $ 387 | ||||||||
2,018 | 810 | ||||||||
2,019 | 808 | ||||||||
2,020 | 724 | ||||||||
2021 and after | 653 | ||||||||
Total | $ 3,382 | ||||||||
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 | 6,900 | 3,126 | 6,900 | ||||||
Square footage of laboratory space (in sqft) | ft² | 1,190 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net loss | $ (6,767) | $ (4,947) | $ (13,259) | $ (11,007) |
Denominator: | ||||
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 23,409,000 | 19,865,000 | 22,467,000 | 19,851,000 |
Net loss per share, basic and diluted (USD per share) | $ (0.29) | $ (0.25) | $ (0.59) | $ (0.55) |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS computation (in shares) | 4,432,114 | 3,536,632 | 4,432,114 | 3,536,632 |
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS computation (in shares) | 250,000 | 250,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, ft² in Thousands | Jul. 12, 2017USD ($)$ / sharesshares | Jun. 21, 2017USD ($)aft² | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Subsequent Event [Line Items] | ||||
Payment to acquire plant | $ 902,000 | $ 832,000 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Stock issued during period (in shares) | shares | 3,000,000 | |||
Shares issued (USD per share) | $ / shares | $ 7.50 | |||
Gross proceeds received in sale of stock | $ 22,500,000 | |||
Net proceeds received in sale of stock | $ 20,987,000 | |||
Strategic Veterinary Pharmaceuticals, Inc. | ||||
Subsequent Event [Line Items] | ||||
Square footage of plant (in sqft) | ft² | 180 | |||
Payment to acquire plant | $ 3,750,000 | |||
Area of land (in acres) | a | 8 |