Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Kindred Biosciences, Inc. | ||
Entity Central Index Key | 1,561,743 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 28,189,081 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 158.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 34,813 | $ 6,687 |
Short-term investments | 46,207 | 50,068 |
Prepaid expenses and other | 797 | 1,282 |
Total current assets | 81,817 | 58,037 |
Property and equipment, net | 7,457 | 2,441 |
Long-term investments | 1,499 | 1,052 |
Other assets | 49 | 46 |
Total assets | 90,822 | 61,576 |
Current liabilities: | ||
Accounts payable | 1,439 | 410 |
Accrued compensation | 2,688 | 1,807 |
Accrued liabilities | 1,900 | 1,650 |
Total current liabilities | 6,027 | 3,867 |
Long-term liability | 115 | 29 |
Total liabilities | 6,142 | 3,896 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock; $0.0001 par value; 100,000,000 shares authorized; 28,182,563 shares and 19,916,290 shares issued and outstanding at December 31, 2017 and 2016, respectively | 3 | 2 |
Additional paid-in capital | 196,688 | 138,810 |
Accumulated other comprehensive loss | (31) | (31) |
Accumulated deficit | (111,980) | (81,101) |
Total stockholders’ equity | 84,680 | 57,680 |
Total liabilities and stockholders’ equity | $ 90,822 | $ 61,576 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 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) | 28,182,563 | 19,916,290 |
Common stock, shares outstanding (in shares) | 28,182,563 | 19,916,290 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating expenses: | |||||||||||
Research and development | $ 5,142 | $ 4,877 | $ 3,866 | $ 3,780 | $ 3,509 | $ 3,754 | $ 3,161 | $ 3,437 | $ 17,665 | $ 13,861 | $ 19,412 |
General and administrative | 4,820 | 3,269 | 3,056 | 2,843 | 2,401 | 2,022 | 1,865 | 2,020 | 13,988 | 8,308 | 7,850 |
Restructuring costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 655 | 0 | 655 | 0 |
Total operating expenses | 9,962 | 8,146 | 6,922 | 6,623 | 5,910 | 5,776 | 5,026 | 6,112 | 31,653 | 22,824 | 27,262 |
Loss from operations | (9,962) | (8,146) | (6,922) | (6,623) | (5,910) | (5,776) | (5,026) | (6,112) | (31,653) | (22,824) | (27,262) |
Interest and other income, net | 232 | 256 | 155 | 131 | 101 | 93 | 79 | 52 | 774 | 325 | 132 |
Net loss | $ (9,730) | $ (7,890) | $ (6,767) | $ (6,492) | $ (5,809) | $ (5,683) | $ (4,947) | $ (6,060) | (30,879) | (22,499) | (27,130) |
Change in unrealized gains or losses on available-for-sale securities | 0 | 19 | (23) | ||||||||
Comprehensive loss | $ (30,879) | $ (22,480) | $ (27,153) | ||||||||
Net loss per share, basic and diluted (USD per share) | $ (0.35) | $ (0.29) | $ (0.29) | $ (0.30) | $ (0.29) | $ (0.29) | $ (0.25) | $ (0.31) | $ (1.23) | $ (1.13) | $ (1.37) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 27,915 | 27,400 | 23,409 | 21,516 | 19,900 | 19,891 | 19,865 | 19,836 | 25,084 | 19,873 | 19,773 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | At-the-Market Offering | At-the-Market OfferingCommon Stock | At-the-Market OfferingAdditional Paid-In Capital | Public Offering | Public OfferingCommon Stock | Public OfferingAdditional Paid-In Capital |
Beginning balance (in shares) at Dec. 31, 2014 | 19,724,000 | ||||||||||
Beginning balance at Dec. 31, 2014 | $ 99,024 | $ 2 | $ 130,521 | $ (27) | $ (31,472) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (27,130) | (27,130) | |||||||||
Change in unrealized losses on available-for-sale securities | (23) | (23) | |||||||||
Comprehensive loss | (27,153) | ||||||||||
Stock-based compensation | $ 4,157 | 4,157 | |||||||||
Exercise of common stock options (in shares) | 58,126 | 58,000 | |||||||||
Exercise of common stock options | $ 105 | $ 0 | 105 | ||||||||
Common stock issued under ESPP (in shares) | 53,752 | ||||||||||
Common stock issued under ESPP | 238 | $ 0 | 238 | ||||||||
Ending balance (in shares) at Dec. 31, 2015 | 19,836,000 | ||||||||||
Ending balance at Dec. 31, 2015 | 76,371 | $ 2 | 135,021 | (50) | (58,602) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (22,499) | (22,499) | |||||||||
Change in unrealized losses on available-for-sale securities | 19 | 19 | |||||||||
Comprehensive loss | (22,480) | ||||||||||
Stock-based compensation | $ 3,627 | 3,627 | |||||||||
Exercise of common stock options (in shares) | 39,501 | 40,000 | |||||||||
Exercise of common stock options | $ 23 | $ 0 | 23 | ||||||||
Common stock issued under ESPP (in shares) | 40,429 | ||||||||||
Common stock issued under ESPP | $ 139 | $ 0 | 139 | ||||||||
Ending balance (in shares) at Dec. 31, 2016 | 19,916,290 | 19,916,000 | |||||||||
Ending balance at Dec. 31, 2016 | $ 57,680 | $ 2 | 138,810 | (31) | (81,101) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (30,879) | (30,879) | |||||||||
Change in unrealized losses on available-for-sale securities | 0 | ||||||||||
Comprehensive loss | (30,879) | ||||||||||
Restricted stock awards, unvested (in shares) | 250,000 | ||||||||||
Restricted stock awards, unvested | 0 | $ 0 | |||||||||
Stock-based compensation | $ 5,207 | 5,207 | |||||||||
Exercise of common stock options (in shares) | 156,927 | 157,000 | |||||||||
Exercise of common stock options | $ 311 | $ 0 | 311 | ||||||||
Stock issued during period (in shares) | 4,502,000 | 3,314,000 | |||||||||
Stock issued during period | $ 28,962 | $ 1 | $ 28,961 | $ 23,198 | $ 0 | $ 23,198 | |||||
Common stock issued under ESPP (in shares) | 43,561 | ||||||||||
Common stock issued under ESPP | $ 201 | $ 0 | 201 | ||||||||
Ending balance (in shares) at Dec. 31, 2017 | 28,182,563 | 28,183,000 | |||||||||
Ending balance at Dec. 31, 2017 | $ 84,680 | $ 3 | $ 196,688 | $ (31) | $ (111,980) |
Consolidated Statements of Cha6
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - Common Stock $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
At-the-Market Offering | |
Payments of stock issuance costs | $ 1,038 |
Public Offering | |
Payments of stock issuance costs | $ 1,657 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net loss | $ (30,879) | $ (22,499) | $ (27,130) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation expense | 5,207 | 3,627 | 4,157 |
Depreciation and amortization expense | 475 | 155 | 146 |
Loss on disposal of property and equipment | 27 | 3 | 0 |
Amortization of premium on marketable securities | 162 | 274 | 228 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other | 485 | (570) | (235) |
Other assets | (3) | (16) | (8) |
Accounts payable | 1,280 | (710) | 30 |
Accrued liabilities and accrued compensation | 1,368 | 955 | 55 |
Net cash used in operating activities | (21,878) | (18,781) | (22,757) |
Cash Flows from Investing Activities | |||
Purchase of investments | (70,110) | (72,047) | (102,195) |
Sale of investments | 4,897 | 0 | 3,000 |
Maturities of investments | 68,465 | 78,313 | 129,361 |
Purchase of property and equipment | (5,920) | (952) | (729) |
Net cash provided by (used in) investing activities | (2,668) | 5,314 | 29,437 |
Cash Flows from Financing Activities | |||
Exercise of stock options and purchase of ESPP shares | 512 | 162 | 343 |
Net proceeds from sale of common stock | 52,160 | 0 | 0 |
Net cash provided by financing activities | 52,672 | 162 | 343 |
Net change in cash and cash equivalents | 28,126 | (13,305) | 7,023 |
Cash and cash equivalents at beginning of year | 6,687 | 19,992 | 12,969 |
Cash and cash equivalents at end of year | 34,813 | 6,687 | 19,992 |
Supplemental disclosure of non-cash financing activities: | |||
Purchase of property and equipment included in accounts payable and accrued liabilities | $ 266 | $ 670 | $ 267 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Kindred Biosciences, Inc. (“we”, "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. 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 pre-commercialization biopharmaceutical company focused on saving and improving the lives of pets. Our activities since inception have consisted principally of raising capital, establishing facilities, recruiting management and technical staff and performing research and development and advancing our product candidates seeking regulatory approval. Our headquarters are in Burlingame, California. We are subject to risks common to companies in the biotechnology and pharmaceutical industries. There can be no assurance that our research and development will be successfully completed, that adequate protection for our technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. We operate in an environment of substantial competition from other animal health companies. In addition, we are dependent upon the services of our employees and consultants, as well as third-party contract research organizations and manufacturers. Liquidity We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception and had an accumulated deficit of $111,980,000 as of December 31, 2017. We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of convertible preferred stock, the sale of our common stock in our initial public offering in December 2013, 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 a follow-on public offering in the third quarter of 2017. We might require additional capital until such time as we can generate operating revenues in excess of operating expenses. In December 2016, we entered into an At Market Issuance Sales Agreement with FBR Capital Markets & Co., or FBR, whereby we were able to issue and sell shares of our common stock having an aggregate offering price up to $30.0 million . During the six months ended June 30, 2017, we sold 4,501,985 shares through FBR under the sales agreement and received approximately $28,962,000 in net proceeds after deducting commissions and other related expenses. 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 . On August 11, 2017, we completed the closing of the exercise of the underwriter's option to purchase an additional 314,000 shares of common stock at the public offering price of $7.50 per share, resulting in additional gross proceeds of $2,355,000 . After giving effect to the exercise of the over-allotment option, the total number of shares sold by us in the public offering increased to 3,314,000 shares and gross proceeds increased to $24,855,000 . Net proceeds, after deducting underwriting commission and offering costs, were approximately $23,198,000 . We believe our cash, cash equivalents, short-term and long-term investments of $82,519,000 at December 31, 2017 are sufficient to fund our operations for at least the next 18 months. If we require additional funding for operations, we may seek such funding through public or private equity or debt financings or other sources, such as corporate collaborations and licensing arrangements. We may not be able to obtain financing on acceptable terms, or at all, and we may not be able to enter into corporate collaborations or licensing arrangements. The terms of any financing may result in dilution or otherwise adversely affect the holdings or the rights of our stockholders. If we are unable to obtain funding, we could be forced to delay, reduce or eliminate our research and development programs or commercialization efforts, which could adversely affect our business prospects. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned Subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated 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 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. Cash, Cash Equivalents and Investments We consider all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. Debt securities with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. We classify all investments as available-for-sale. Available-for-sale securities are carried at estimated fair value, with accumulated unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. Realized gains or losses on the sale of investments are determined on a specific identification method, and such gains and losses are reflected as a component of interest and other income, net in the accompanying consolidated statements of operations and comprehensive loss. Marketable securities investments are evaluated periodically for impairment. We take into account general market conditions, changes in the economic environment as well as specific investment attributes, such as credit downgrade or illiquidity for each investment, the expected cash flows from the securities, our intent to sell the securities and whether or not we will be required to sell the securities before the recovery of their amortized cost, to estimate the fair value of our investments and to determine whether impairment is other than temporary. If it is determined that a decline in fair value of any investment is other than temporary, then the unrealized loss related to credit risk would be included in interest and other income, net. Concentration of Credit Risk and of Significant Suppliers Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents and investments. From time to time, we maintain cash and cash equivalent balances in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) and the Securities Investor Protection Corporation ("SIPC"). Primarily all of our cash, cash equivalents and investments at December 31, 2017 were in excess of amounts insured by the FDIC and SIPC. We do not believe that we are subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. We are dependent on third-party manufacturers to supply products for research and development activities in our programs. In particular, we rely on a small number of manufacturers to supply us with our requirements for the active pharmaceutical ingredients, or API, and formulated drugs related to some of these programs. These programs would be adversely affected by a significant interruption in the supply of API. Fair Value Measurements We use the provisions of Accounting Standards Codification ("ASC") 820, “Fair Value Measurements and Disclosure" , to determine the fair values of our financial and nonfinancial assets and liabilities where applicable. ASC 820 defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosure about fair value measurements. The objective of fair value measurement is to determine the price that would be received to sell the asset or paid to transfer the liability (an exit price) in an orderly transaction between market participants at the measurement date. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. To increase consistency and comparability in fair value measurement and related disclosures, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: (1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; (2) Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data; and (3) Level 3 inputs are unobservable inputs for the asset or liability that reflect the reporting entity’s own assumptions about risk and the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Government agency notes, corporate notes and commercial papers are recorded at their estimated fair value. Since these available-for-sale securities generally have market prices from multiple sources and it can be difficult to select the best individual price directly from the quoted prices in the active markets, we use Level 2 inputs for the valuation of these securities. Using the Level 2 inputs, a “consensus price” or a weighted average price for each of these securities can be derived from a distribution-curve-based algorithm which includes market prices obtained from a variety of industrial standard data providers (e.g. Bloomberg), security master files from large financial institutions, and other third-party sources. The carrying amount of financial instruments, including cash, accounts payable and accrued liabilities approximate fair value due to the short maturities of these financial instruments. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis (see Note 3). Property and Equipment 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 was finalized on August 7, 2017 upon completion of the diligence period and satisfaction of the conditions of escrow. The Plant was purchased for $3,750,000 , 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. Property and equipment are stated at cost less accumulated depreciation and amortization. We calculate depreciation using the straight-line method over the estimated useful lives of the assets, which range from two to five years for furniture, fixtures, lab and computer equipment and software, and fifteen to thirty-nine years for land improvements and real property. Land and assets held within construction in progress are not depreciated. Construction in progress is related to the construction or development of property and equipment that have not yet been placed in service for their intended use. Expenditures for repairs and maintenance of assets are charged to expense as incurred. We amortize leasehold improvements using the straight-line method over the estimated useful lives of the respective assets or the lease term, whichever is shorter. Upon retirement or sale, the cost and related accumulated depreciation and amortization of assets disposed of are removed from the accounts and any resulting gain or loss is included in other income/expense. Licenses The costs incurred for the rights to use licensed technologies in the research and development process, including licensing fees and milestone payments, are charged to research and development expense as incurred in situations where we have not identified an alternative future use for the acquired rights, and are capitalized in situations where we have identified an alternative future use. No costs associated with the use of licensed technologies have been capitalized to date. Impairment of Long-Lived Assets We review long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that we consider in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, we compare forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. To date, we have not recorded any impairment losses on long-lived assets. Revenue Recognition We are in the research and development stage and have not generated any revenues since inception. Research and Development Costs All costs of research and development are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, stock-based compensation expense, fees paid to consultants, outside service providers, professional services, travel costs and materials used in clinical trials and research and development. Patent Costs All patent-related costs incurred in connection with filing patent applications are recorded in research and development expenses when incurred, as recoverability of such expenditures is uncertain. Stock-Based Compensation Our stock-based compensation plan (see Note 8) provides for the grant of stock options, restricted common stock and stock appreciation rights. The estimated fair values of employee stock option grants are determined as of the date of grant using the Black-Scholes option pricing model. This method incorporates the fair value of our common stock at the date of each grant and various assumptions such as the risk-free interest rate, expected volatility based on the historic volatility of publicly-traded peer companies, expected dividend yield, and expected term of the options. The estimated fair values of restricted stock awards are determined based on the fair value of our common stock on the date of grant. The estimated fair values of stock-based awards, including the effect of estimated forfeitures, are expensed over the requisite service period, which is generally the awards’ vesting period. We classify stock-based compensation expense in the consolidated statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified. Our accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows Financial Accounting Standards Board ("FASB") guidance. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of the date on which the counterparty’s performance is complete or the date at which a commitment for performance is reached. For transactions in which the fair value of the equity instrument issued to non-employees is the more reliable measurement and a measurement date has not been reached, the fair value is re-measured at each vesting and reporting date using the Black-Scholes option pricing model. Compensation expense for these share-based awards is recognized over the term of the consulting agreement or until the award is approved and settled. Income Taxes We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in our tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. We account for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. Comprehensive Loss Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses is reflected as a separate component of stockholders' equity in the accompanying consolidated balance sheets as accumulated other comprehensive loss. Segment Data We manage our operations as a single segment for the purposes of assessing performance and making operating decisions. We are a veterinary biotechnology company focusing on developing therapies for pets. Our chief operating decision maker is our Chief Executive Officer. All assets are held in the United States. Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common shares, including potential dilutive shares of common stock assuming the dilutive effect of potentially dilutive securities. For periods in which we have reported a net loss, diluted net loss per common share is the same as basic net loss per common share, since the impact of the potentially dilutive securities would be anti-dilutive to the calculation of net loss per common share (see Note 12). Recently Issued Accounting Pronouncements In May 2014, the 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 analysis identifying areas that will be impacted by the new guidance is complete. Additionally, we will 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 December 31, 2017, we do not believe adopting this guidance in the first quarter of 2018 will have a material impact on our consolidated 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 have adopted the new guidance and it did not have a material impact on our 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 consolidated 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 have adopted the new guidance and it did not have a material impact on our 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 | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair value of these financial assets was determined based on a three-tier fair value hierarchy as described in Note 2, which prioritizes the inputs used in measuring fair value. The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2017 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: (In thousands) Fair Value Measurements as of December 31, 2017 Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 801 $ 801 $ — $ — Commercial paper 31,977 — 31,977 — Corporate notes 1,500 — 1,500 — Short-term investments: Commercial paper 22,052 — 22,052 — U.S. government agency notes 6,746 — 6,746 — U.S. treasury bonds and notes 3,482 3,482 — — Corporate notes 13,927 — 13,927 — Long-term investments: Corporate notes 1,499 — 1,499 — $ 81,984 $ 4,283 $ 77,701 $ — The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2016 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: (In thousands) Fair Value Measurements as of December 31, 2016 Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) 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 $ — There were no other transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended December 31, 2017 . During the year ended December 31, 2016 , U.S. treasuries were transferred from Level 2 to Level 1. With the exception of U.S. treasuries, there were no other transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended December 31, 2016 . At December 31, 2017 and 2016 , we did not have any financial liabilities which were measured at fair value on a recurring basis. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The following tables summarize our investments in available-for-sale securities by significant investment category reported as short-term or long-term investments as of December 31, 2017 and 2016 (in thousands): December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: Commercial paper $ 22,052 $ — $ — $ 22,052 U.S. government agency notes 6,750 — (4 ) 6,746 U.S. treasury bonds and notes 3,483 — (1 ) 3,482 Corporate notes 13,946 — (19 ) 13,927 46,231 — (24 ) 46,207 Long-term investments: Corporate notes 1,506 — (7 ) 1,499 Total available-for-sale investments $ 47,737 $ — $ (31 ) $ 47,706 December 31, 2016 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 The following table summarizes the contractual maturities of our available-for-sale securities at December 31, 2017 (in thousands): Amortized Cost Fair Value Mature in less than one year $ 46,231 $ 46,207 Mature in one year or more $ 1,506 $ 1,499 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following: As of December 31, (in thousands) 2017 2016 Computer and lab equipment $ 2,303 $ 565 Furniture & fixtures 46 41 Leasehold improvements 930 82 Construction-in-process 4,969 2,073 Total 8,248 2,761 Less accumulated depreciation and amortization (791 ) (320) Property and equipment, net $ 7,457 $ 2,441 Construction-in-process is comprised of a building, land, land improvement and equipment that have not been put into services for its intended use as of December 31, 2017 . As disclosed in Note 2, the Plant was purchased for $3,750,000 , which includes approximately eight acres of land, all improvements located at the Plant, and all personal property and intangible property located at the Plant or used in connection with the operation of the Plant. We also purchased approximately $1,219,000 additional manufacturing and lab equipment that have not been put into service, resulting in a construction-in-process balance of $4,969,000 at December 31, 2017 . Depreciation and amortization expense was $475,000 , $155,000 and $146,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following as of December 31, 2017 and 2016 : (In thousands) December 31, 2017 December 31, 2016 Accrued consulting $ 335 $ 106 Accrued research and development costs 919 1,390 Accrued other 646 124 Deferred rent 115 59 2,015 1,679 Less current portion (1,900 ) (1,650 ) Long-term liability (deferred rent) $ 115 $ 29 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock Our Certificate of Incorporation, as amended, authorizes us to issue 10,000,000 shares of $0.0001 par value preferred stock. At December 31, 2017 , 100,000 unissued shares of our preferred stock are designated as Series A Preferred Stock, and the remaining 9,900,000 unissued shares of our preferred stock are undesignated. Common Stock Our Certificate of Incorporation, as amended and restated, authorizes us to issue 100,000,000 shares of $0.0001 par value common stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of our stockholders, provided, however, that, except as otherwise required by law, holders of common stock shall not be entitled to vote on any amendment to the Certificate of Incorporation that relates solely to the terms of one or more outstanding shares of preferred stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other series, to vote thereon pursuant to the Certificate of Incorporation or pursuant to the Delaware General Corporation Law. In 2015, we issued 58,126 shares of common stock upon exercise of stock options for total proceeds of $105,000 . In addition, we issued 53,752 shares of common stock to employees in connection with our employee stock purchase program for total proceeds of $238,000 . In 2016, we issued 39,501 shares of common stock upon exercise of stock options for total proceeds of $23,000 . In addition, we issued 40,429 shares of common stock to employees in connection with our employee stock purchase program for total proceeds of $139,000 . In 2017, we issued 156,927 shares of common stock upon exercise of stock options for total proceeds of $311,000 . In addition, we issued 43,561 shares of common stock to employees in connection with our employee stock purchase program for total proceeds of $201,000 . As of December 31, 2017 , we had 28,182,563 shares of common stock outstanding. Stock Offerings In January 2015, we filed a shelf registration statement on Form S-3 to offer and sell, from time to time, equity and debt 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 with FBR Capital Markets & Co., or FBR, pursuant to which we were able to issue and sell shares of our common stock having an aggregate offering price up to $30.0 million , through FBR as our sales agent. In conjunction with the sales agreement, FBR received 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 were deemed an “at-the-market” offering and were made pursuant to the shelf registration statement on Form S-3. For the year ended December 31, 2016, we did not sell any shares through FBR under the sales agreement. 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 . On August 11, 2017, we completed the closing of the exercise of the underwriter's option to purchase an additional 314,000 shares of common stock at the public offering price of $7.50 per share, resulting in additional gross proceeds of $2,355,000 . After giving effect to the exercise of the over-allotment option, the total number of shares sold by us in the public offering increased to 3,314,000 shares and gross proceeds increased to $24,855,000 . Net proceeds, after deducting underwriting commission and offering costs, were approximately $23,198,000 . In January 2018, we filed a new shelf registration statement on Form S-3 to offer and sell, from time to time, equity and debt securities in one or more offerings up to a total dollar amount of $150.0 million . |
Stock-Based Awards and Benefit
Stock-Based Awards and Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards and Benefit Plan | Stock-Based Awards and Benefit Plan On November 4, 2012, our board of directors adopted the Kindred Biosciences, Inc. 2012 Equity Incentive Plan or the “2012 Plan". The 2012 Plan provided for our board of directors to grant incentive stock options or non-qualified stock options for the purchase of common stock, to issue or sell shares of restricted common stock and to grant stock appreciation rights (“SARs”) to our employees, directors, consultants and advisers of the Company. Pursuant to the terms of the 2012 Plan, no options or SARs shall be granted under the 2012 Plan after 10 years from the date of adoption of the 2012 Plan. We have reserved 4,000,000 shares of our common stock for issuance under the 2012 Plan. The 2012 Plan terminated in May 2016 and 3,315,200 stock option shares which had been granted prior to the plan’s expiration remaining outstanding as of December 31, 2017. In May 2016, we adopted the 2016 Equity Incentive Plan or 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 Plan and 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 option, and the optionee directly or by attribution owns stock possessing more than 10% of the total combined voting power of all classes of our 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 December 31, 2017, there were 1,258,425 option shares outstanding, 250,000 restricted stock awards issued but unvested, and 1,488,450 shares available for future grants under the 2016 Plan. 2014 Employee Stock Purchase Plan In December 2014, our board of directors adopted the Kindred Biosciences, Inc. 2014 Employee Stock Purchase Plan (the “Purchase Plan”). A total of 200,000 shares of our common stock are authorized for issuance under the Purchase Plan. The Purchase Plan permits eligible employees to purchase common stock at a discount through payroll deductions during defined six months consecutive offering periods beginning on December 1 with the exception of our first offering period which commenced on January 1, 2015 for a five months 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 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 discounted employee price, in determining the value of the Purchase Plan expense to be recognized during each offering period. The weighted-average grant date fair value per share using the Black-Scholes option pricing model was $1.73 during the year ended December 31, 2017 . As of December 31, 2017 , there were 137,542 shares of common stock issued under the Purchase Plan and 62,458 shares available for future issuance under the Purchase Plan. At December 31, 2017 and 2016, we had an outstanding liability of $27,000 and $17,000 , respectively, which is included in accrued compensation on the consolidated balance sheets, for employee contributions to the Purchase Plan for shares pending issuance at the end of the next offering period. Reserved Shares At December 31, 2017 , shares of common stock reserved for future issuance inclusive of outstanding option shares are as follows: 2016 Equity Incentive Plan 2,746,875 2014 Employee Stock Purchase Plan 62,458 2,809,333 Stock Option Plan Activity Summary A summary of activity under our stock option plans is as follows: Shares Available For Grant Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining ContractualTerm (In Years) Aggregate Intrinsic Value Balance, December 31, 2014 1,571,298 2,329,415 $7.60 Granted (922,083 ) 922,083 $6.54 Exercised (58,126 ) $1.81 Expired 5,104 (5,104 ) $19.96 Forfeited - stock options 72,083 (72,083 ) $12.48 Balance, December 31, 2015 726,402 3,116,185 $7.26 8.2 $2,908,000 2012 Plan terminated (a) (307,107 ) 2016 Plan authorized (b) 3,000,000 Granted (847,683 ) 847,683 $3.48 Exercised (39,501 ) $0.57 Expired 43,818 (43,818 ) $14.52 Forfeited - stock options 312,220 (312,220 ) $7.06 Balance, December 31, 2016 2,927,650 3,568,329 $6.36 7.5 $4,353,000 2012 Plan true up retired shares (c) (26,977 ) 2016 Plan issued RSA shares (d) (250,000 ) Granted (1,208,200 ) 1,208,200 $6.62 Exercised (156,927 ) $1.98 Expired 7,267 (7,267 ) $14.54 Forfeited - stock options 38,710 (38,710 ) $6.60 Balance, December 31, 2017 1,488,450 4,573,625 $6.57 7.2 $18,745,000 Options vested and expected to vest, December 31, 2017 4,573,625 $6.57 7.2 $18,745,000 Options exercisable, December 31, 2017 2,962,057 $6.80 6.4 $13,208,000 (a) The 2012 Equity Incentive Plan terminated in May 2016. All shares available for grant under this Plan expired. (b) The 2016 Equity Incentive Plan was adopted and approved by stockholders in May 2016. (c) True up of all expired shares available for grant under the 2012 Equity Incentive Plan, which was terminated in May 2016. (d) Issued 250,000 RSA shares on 01/23/2017 under the 2016 Equity Incentive Plan. The aggregate intrinsic value of options is calculated as the difference between the exercise price of options and the fair value of our common stock for those options that had exercise prices lower than the fair value of our common stock on December 31, 2017 , 2016 and 2015. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2017 , 2016 and 2015 was $911,000 , $117,000 and $266,000 , respectively. We received proceeds of $311,000 , $23,000 and $105,000 from the exercise of common stock options during the years ended December 31, 2017 , 2016 and 2015, respectively. The weighted-average grant date fair value of options granted during the years ended December 31, 2017 , 2016 and 2015 was $4.21 , $2.45 and $5.03 per share, respectively. Restricted Stock 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 December 31, 2017 , we have an aggregate of approximately $1,225,000 unrecognized stock-based compensation expense for restricted stock awards outstanding which is expected to be recognized over a weighted-average period of 3.1 years. We did not grant any restricted common stock in 2016 and 2015. Restricted stock activity for the year ended December 31, 2017 , was as follows: Restricted Stock Award Shares Weighted Average Grant Date Fair Value Unvested balance at December 31, 2016 — — Granted 250,000 $6.40 Vested — — Forfeited — — Unvested balance at December 31, 2017 250,000 $6.40 Stock-Based Compensation We recognize stock-based compensation expense for only the portion of awards that are expected to vest. In developing a forfeiture rate estimate, we have considered our historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual forfeiture rate is materially different from our estimate, we may be required to record adjustments to stock-based compensation expense in future periods. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Due to insufficient company-specific historical and implied volatility information, we estimate the expected stock price volatility based on the historical volatility of publicly traded peer companies and expect to continue to do so until such time as we have adequate historical data regarding the volatility of our common stock price. The expected term of our common stock options has been determined utilizing the “simplified” method as we have insufficient historical experience for options grants overall, rendering existing historical experience irrelevant to expectations for current grants. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that we have never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. Total stock-based compensation expense, related to all of our share-based payment awards, is comprised of the following: (In thousands) Years Ended December 31, 2017 2016 2015 Research and development $1,650 $1,463 $1,857 General and administrative 3,557 2,164 2,300 $5,207 $3,627 $4,157 Total stock-based compensation expense includes stock options, restricted stock award and expense from the Purchase Plan for the years ended December 31, 2017 , 2016, and 2015. We had an aggregate of approximately $5,524,000 of unrecognized stock-based compensation expense for options outstanding and the Purchase Plan as of December 31, 2017 , which is expected to be recognized over a weighted average period of 2.6 years . Valuation assumptions The relevant data used to determine the fair value of stock options earned or granted and the Purchase Plan is as follows: Years Ended December 31, 2017 2016 2015 Stock options: Weighted average risk-free interest rate 1.98% 1.61% 1.51% Weighted average expected term (in years) 6.0 6.3 6.1 Weighted average expected volatility 70.4% 83.4% 94.8% Weighted average expected dividend yield — — — Fair value at grant date $4.21 $2.45 $5.03 Employee stock purchase plan: Weighted average risk-free interest rate 1.04% 0.50% 0.08% Weighted average expected term (in years) 0.5 0.5 0.5 Weighted average expected volatility 56.7% 84.4% 80.7% Weighted average expected dividend yield — — — Fair value at grant date $1.73 $1.42 $2.08 Restricted Stock Award: Fair value at grant date $6.40 — — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases In April 2014, we entered into non-cancelable 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. Rent expense for the years ended December 31, 2017 , 2016 and 2015 was $679,000 , $522,000 and $339,000 , respectively. In addition, we have three operating leases for equipment through 2020. As of December 31, 2017, we are obligated to make minimum lease payments under all of our operating leases as follows (in thousands): Year ending December 31, Lease Payments 2018 $ 812 2019 810 2020 726 2021 459 2022 194 Total $ 3,001 Indemnities and Guarantees We have made certain indemnities and guarantees, under which we may be required to make payments to a guaranteed or indemnified party, in relation to certain transactions. We indemnify our officers and directors to the maximum extent permitted under the laws of the State of Delaware. The duration of these indemnities and guarantees varies and, in certain cases, is indefinite. These indemnities and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make. Historically, we have not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheets. Legal Matters In the ordinary course of business, we may face various claims brought by third parties and may, from time to time, make claims or take legal actions to assert our rights, including intellectual property disputes, contractual disputes and other commercial disputes. Any of these claims could subject us to litigation. Management believes there are currently no claims that are likely to have a material effect on our consolidated financial position and results of operations. |
Restructuring Plan
Restructuring Plan | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | Restructuring Plan On January 8, 2016, our Board of Directors committed to a restructuring plan intended to better align our workforce to our revised operating needs and program development plans. On January 11, 2016, we implemented the restructuring plan that focused on streamlining our development programs and to ensure our remaining funds are sufficient to fund our planned operations through 2018. To match these priorities, we reduced our workforce by 18 positions, or approximately 31% of our workforce, resulting in a total workforce of 39 positions. As a result of the restructuring plan which has been completed, we recorded a restructuring charge of approximately $655,000 related to severance payments which was entirely paid in the quarter ended March 31, 2016. There were no further restructuring charges since then. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes There is no provision for income taxes because we have historically incurred operating losses and we maintain a full valuation allowance against our net deferred tax assets. Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate are as follows: (In thousands, except percentages) For the years ended December 31, 2017 2016 2015 Income tax expense (benefit) at statutory federal rate $ (10,499 ) 34.0 % $ (7,651 ) 34.0 % $ (9,226 ) 34.0 % State income tax, net of federal benefit (1,880 ) 6.1 (1,389 ) 6.2 (1,678 ) 6.2 Permanent items 63 (0.2 ) 38 (0.2 ) 58 (0.2 ) Research credits (1,172 ) 3.8 (970 ) 4.3 (1,379 ) 5.1 Stock-based compensation (122 ) 0.4 (29 ) 0.1 — — ASC 740-10 469 (1.5 ) 388 (1.7 ) 552 (2 ) Change in valuation allowance (128 ) 0.4 9,602 (42.6 ) 11,924 (43.9 ) Tax Cuts and Jobs Act 13,092 (42.4 ) — — — — Other 177 (0.6 ) 11 (0.1 ) (251 ) 0.8 Provision (benefit) for income taxes $ — — % $ — — % $ — — % Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future periods. The components of the deferred tax assets are as follows at December 31, 2017 and 2016 : December 31, (In thousands) 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 26,369 $ 27,093 Research & development credits 3,044 2,173 Accrued expenses 753 720 Amortization and depreciation (132 ) 2,738 Stock-based compensation 4,860 2,296 Other 12 14 34,906 35,034 Valuation Allowance (34,906 ) (35,034 ) Net current deferred tax assets $ — $ — At December 31, 2017 , we had net deferred tax assets of $34,906,000 . Due to uncertainties surrounding our ability to generate future taxable income to realize these assets, a full valuation allowance has been established to offset the net deferred tax asset. Additionally, the future utilization of our net operating loss and research and development tax credits carryforwards is subject to annual limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, and similar state tax provisions due to ownership change limitations that have occurred previously or that could occur in the future. These ownership changes limit the amount of the net operating loss and research and development tax credit carryforward and other deferred tax assets that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Sections 382 and 383, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50 percent points over a three-year period. We believe we incurred ownership changes since April 2014, however, we have not completed an analysis yet to determine the impact of our ability to use net operating losses and research and development credits as of December 31, 2017. At December 31, 2017 , we had federal and California net operating loss carryovers of $93,253,000 and $93,172,000 , respectively. The federal and California net loss carryforwards will begin to expire in 2032. At December 31, 2017 , we had federal and state research tax credit carryovers of approximately $2,972,000 and $2,660,000 , respectively. The federal research and development tax credit carryforwards will begin to expire in 2033. The California research and development credit carryforwards are available indefinitely. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits recorded by us as of the date of adoption. As a result of the implementation, we did not recognize an increase in the liability for unrecognized tax benefits. A rollforward of changes in our unrecognized tax benefits is shown below. (In thousands) December 31, 2017 2016 Balance at beginning of year $ 1,698 $ 1,234 Additions based on tax positions related to the current year 554 464 Additions for tax positions of prior years — — Balance at end of year $ 2,252 $ 1,698 The amount of unrecognized tax benefits that would impact the effective tax rate if recognized and realized is $2,029,000 . Our practice is to recognize interest and/or penalties related to income tax matters as income tax expense. We had no accrual for interest or penalties on our accompanying consolidated balance sheets at December 31, 2017 and 2016 , and have not recognized interest and/or penalties in our consolidated statements of operations and comprehensive loss for the years ended December 31, 2017 , 2016 and 2015 . We do not anticipate a significant change to our unrecognized tax benefits during the next twelve months . We file tax returns as prescribed by tax laws of the jurisdictions in which we operate. In the normal course of business, we are subject to examination by federal and state jurisdictions, where applicable. There are currently no pending tax examinations. Our federal and state tax returns are still open under statute from 2012 to present. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the "Act"). The Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Act reduces the corporate tax rate from a maximum of 35% to a flat 21% rate. The rate reduction is effective on January 1, 2018. As a result of the rate reduction, the Company has reduced the deferred tax asset balance as of December 31, 2017 by $13.1 million . Due to the Company's full valuation allowance position, the Company has also reduced the valuation allowance by the same amount. Due to uncertainties which currently exist in the interpretation of the provisions of the Tax Cuts and Jobs Act of 2017 regarding Internal Revenue Code Section 162(m), the Company has not evaluated the potential impacts of IRC Section 162(m) as amended by the Tax Cuts and Jobs Act of 2017 on its consolidated financial statements. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 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 for the years ended December 31, 2017 , 2016 and 2015: (In thousands, except per share amounts) Years Ended December 31, 2017 2016 2015 Basic and diluted net loss per share attributable to common stockholders: Numerator: Net loss attributable to common stockholders $ (30,879 ) $ (22,499 ) $ (27,130 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 25,084 19,873 19,773 Net loss per common share attributable to common stockholders, basic and diluted $ (1.23 ) $ (1.13 ) $ (1.37 ) There was no difference between our net loss and the net loss attributable to common stockholders for all periods presented. Stock options to purchase 4,573,625 shares, 3,568,329 shares and 3,116,185 shares of common stock as of December 31, 2017 , 2016 and 2015 , respectively, were excluded from the computation of diluted net loss per share attributable to common stockholders because their effect was anti-dilutive. 250,000 shares unvested restricted stock award as of December 31, 2017 were also excluded from the computation of diluted net loss per share calculations because their effect was anti-dilutive. |
Employee Savings Plan
Employee Savings Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Savings Plan | Employee Savings Plan We have established an employee savings plan pursuant to Section 401(k) of the Internal Revenue Code, effective May 1, 2014. The plan allows participating employees to deposit into tax deferred investment accounts up to 90% of their salary, subject to annual limits. We make contributions to the plan in an amount equal to 50% on the first 6% for a maximum of 3% of the participant’s compensation which is deferred. We contributed approximately $149,000 , $101,000 and $164,000 to the plan during the years ended December 31, 2017 , 2016 and 2015, respectively. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited) The following table presents selected unaudited quarterly financial data for each of the quarters in the years ended December 31, 2017 and 2016 . (In thousands, except per share amounts) 2017 2016 Quarter ended Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Operating costs and expenses Research and development $ 5,142 $ 4,877 $ 3,866 $ 3,780 $ 3,509 $ 3,754 $ 3,161 $ 3,437 General and administrative 4,820 3,269 3,056 2,843 2,401 2,022 1,865 2,020 Restructuring costs — — — — — — — 655 Total operating cost and expenses 9,962 8,146 6,922 6,623 5,910 5,776 5,026 6,112 Loss from operations (9,962 ) (8,146 ) (6,922 ) (6,623 ) (5,910 ) (5,776 ) (5,026 ) (6,112 ) Interest and other income, net 232 256 155 131 101 93 79 52 Net loss $ (9,730 ) $ (7,890 ) $ (6,767 ) $ (6,492 ) $ (5,809 ) $ (5,683 ) $ (4,947 ) $ (6,060 ) Net loss per share, basic and diluted (1) $ (0.35 ) $ (0.29 ) $ (0.29 ) $ (0.30 ) $ (0.29 ) $ (0.29 ) $ (0.25 ) $ (0.31 ) Weighted average shares used in computing net loss per share, basic and diluted 27,915 27,400 23,409 21,516 19,900 19,891 19,865 19,836 (1) Net loss per share for each quarter is calculated as a discrete period; the sum of four quarters may not equal the calculated full year amount. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the filing date of this annual report on Form 10-K, and determined that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes thereto. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Liquidity | Liquidity We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception and had an accumulated deficit of $111,980,000 as of December 31, 2017. We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of convertible preferred stock, the sale of our common stock in our initial public offering in December 2013, 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 a follow-on public offering in the third quarter of 2017. We might require additional capital until such time as we can generate operating revenues in excess of operating expenses. In December 2016, we entered into an At Market Issuance Sales Agreement with FBR Capital Markets & Co., or FBR, whereby we were able to issue and sell shares of our common stock having an aggregate offering price up to $30.0 million . During the six months ended June 30, 2017, we sold 4,501,985 shares through FBR under the sales agreement and received approximately $28,962,000 in net proceeds after deducting commissions and other related expenses. 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 . On August 11, 2017, we completed the closing of the exercise of the underwriter's option to purchase an additional 314,000 shares of common stock at the public offering price of $7.50 per share, resulting in additional gross proceeds of $2,355,000 . After giving effect to the exercise of the over-allotment option, the total number of shares sold by us in the public offering increased to 3,314,000 shares and gross proceeds increased to $24,855,000 . Net proceeds, after deducting underwriting commission and offering costs, were approximately $23,198,000 . We believe our cash, cash equivalents, short-term and long-term investments of $82,519,000 at December 31, 2017 are sufficient to fund our operations for at least the next 18 months. If we require additional funding for operations, we may seek such funding through public or private equity or debt financings or other sources, such as corporate collaborations and licensing arrangements. We may not be able to obtain financing on acceptable terms, or at all, and we may not be able to enter into corporate collaborations or licensing arrangements. The terms of any financing may result in dilution or otherwise adversely affect the holdings or the rights of our stockholders. If we are unable to obtain funding, we could be forced to delay, reduce or eliminate our research and development programs or commercialization efforts, which could adversely affect our business prospects. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned Subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated 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 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. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments We consider all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. Debt securities with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. We classify all investments as available-for-sale. Available-for-sale securities are carried at estimated fair value, with accumulated unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. Realized gains or losses on the sale of investments are determined on a specific identification method, and such gains and losses are reflected as a component of interest and other income, net in the accompanying consolidated statements of operations and comprehensive loss. Marketable securities investments are evaluated periodically for impairment. We take into account general market conditions, changes in the economic environment as well as specific investment attributes, such as credit downgrade or illiquidity for each investment, the expected cash flows from the securities, our intent to sell the securities and whether or not we will be required to sell the securities before the recovery of their amortized cost, to estimate the fair value of our investments and to determine whether impairment is other than temporary. If it is determined that a decline in fair value of any investment is other than temporary, then the unrealized loss related to credit risk would be included in interest and other income, net. |
Concentration of Credit Risk and of Significant Suppliers | Concentration of Credit Risk and of Significant Suppliers Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents and investments. From time to time, we maintain cash and cash equivalent balances in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) and the Securities Investor Protection Corporation ("SIPC"). Primarily all of our cash, cash equivalents and investments at December 31, 2017 were in excess of amounts insured by the FDIC and SIPC. We do not believe that we are subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. We are dependent on third-party manufacturers to supply products for research and development activities in our programs. In particular, we rely on a small number of manufacturers to supply us with our requirements for the active pharmaceutical ingredients, or API, and formulated drugs related to some of these programs. These programs would be adversely affected by a significant interruption in the supply of API. |
Fair Value Measurements | Fair Value Measurements We use the provisions of Accounting Standards Codification ("ASC") 820, “Fair Value Measurements and Disclosure" , to determine the fair values of our financial and nonfinancial assets and liabilities where applicable. ASC 820 defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosure about fair value measurements. The objective of fair value measurement is to determine the price that would be received to sell the asset or paid to transfer the liability (an exit price) in an orderly transaction between market participants at the measurement date. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. To increase consistency and comparability in fair value measurement and related disclosures, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: (1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; (2) Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data; and (3) Level 3 inputs are unobservable inputs for the asset or liability that reflect the reporting entity’s own assumptions about risk and the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Government agency notes, corporate notes and commercial papers are recorded at their estimated fair value. Since these available-for-sale securities generally have market prices from multiple sources and it can be difficult to select the best individual price directly from the quoted prices in the active markets, we use Level 2 inputs for the valuation of these securities. Using the Level 2 inputs, a “consensus price” or a weighted average price for each of these securities can be derived from a distribution-curve-based algorithm which includes market prices obtained from a variety of industrial standard data providers (e.g. Bloomberg), security master files from large financial institutions, and other third-party sources. The carrying amount of financial instruments, including cash, accounts payable and accrued liabilities approximate fair value due to the short maturities of these financial instruments. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis (see Note 3). We measure certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair value of these financial assets was determined based on a three-tier fair value hierarchy as described in Note 2, which prioritizes the inputs used in measuring fair value. |
Property and Equipment | Property and equipment are stated at cost less accumulated depreciation and amortization. We calculate depreciation using the straight-line method over the estimated useful lives of the assets, which range from two to five years for furniture, fixtures, lab and computer equipment and software, and fifteen to thirty-nine years for land improvements and real property. Land and assets held within construction in progress are not depreciated. Construction in progress is related to the construction or development of property and equipment that have not yet been placed in service for their intended use. Expenditures for repairs and maintenance of assets are charged to expense as incurred. We amortize leasehold improvements using the straight-line method over the estimated useful lives of the respective assets or the lease term, whichever is shorter. Upon retirement or sale, the cost and related accumulated depreciation and amortization of assets disposed of are removed from the accounts and any resulting gain or loss is included in other income/expense. |
Licenses | Licenses The costs incurred for the rights to use licensed technologies in the research and development process, including licensing fees and milestone payments, are charged to research and development expense as incurred in situations where we have not identified an alternative future use for the acquired rights, and are capitalized in situations where we have identified an alternative future use. No costs associated with the use of licensed technologies have been capitalized to date. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that we consider in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, we compare forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. |
Revenue Recognition | Revenue Recognition We are in the research and development stage and have not generated any revenues since inception. |
Research and Development Costs | Research and Development Costs All costs of research and development are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, stock-based compensation expense, fees paid to consultants, outside service providers, professional services, travel costs and materials used in clinical trials and research and development. |
Patent Costs | Patent Costs All patent-related costs incurred in connection with filing patent applications are recorded in research and development expenses when incurred, as recoverability of such expenditures is uncertain. |
Stock-Based Compensation | Stock-Based Compensation Our stock-based compensation plan (see Note 8) provides for the grant of stock options, restricted common stock and stock appreciation rights. The estimated fair values of employee stock option grants are determined as of the date of grant using the Black-Scholes option pricing model. This method incorporates the fair value of our common stock at the date of each grant and various assumptions such as the risk-free interest rate, expected volatility based on the historic volatility of publicly-traded peer companies, expected dividend yield, and expected term of the options. The estimated fair values of restricted stock awards are determined based on the fair value of our common stock on the date of grant. The estimated fair values of stock-based awards, including the effect of estimated forfeitures, are expensed over the requisite service period, which is generally the awards’ vesting period. We classify stock-based compensation expense in the consolidated statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified. Our accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows Financial Accounting Standards Board ("FASB") guidance. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of the date on which the counterparty’s performance is complete or the date at which a commitment for performance is reached. For transactions in which the fair value of the equity instrument issued to non-employees is the more reliable measurement and a measurement date has not been reached, the fair value is re-measured at each vesting and reporting date using the Black-Scholes option pricing model. Compensation expense for these share-based awards is recognized over the term of the consulting agreement or until the award is approved and settled. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in our tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. We account for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. |
Comprehensive Loss | Comprehensive Loss Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses is reflected as a separate component of stockholders' equity in the accompanying consolidated balance sheets as accumulated other comprehensive loss. |
Segment Data | Segment Data We manage our operations as a single segment for the purposes of assessing performance and making operating decisions. We are a veterinary biotechnology company focusing on developing therapies for pets. Our chief operating decision maker is our Chief Executive Officer. All assets are held in the United States. |
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common shares, including potential dilutive shares of common stock assuming the dilutive effect of potentially dilutive securities. For periods in which we have reported a net loss, diluted net loss per common share is the same as basic net loss per common share, since the impact of the potentially dilutive securities would be anti-dilutive to the calculation of net loss per common share (see Note 12). |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the 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 analysis identifying areas that will be impacted by the new guidance is complete. Additionally, we will 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 December 31, 2017, we do not believe adopting this guidance in the first quarter of 2018 will have a material impact on our consolidated 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 have adopted the new guidance and it did not have a material impact on our 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 consolidated 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 have adopted the new guidance and it did not have a material impact on our 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 (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value on a recurring basis | The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2017 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: (In thousands) Fair Value Measurements as of December 31, 2017 Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 801 $ 801 $ — $ — Commercial paper 31,977 — 31,977 — Corporate notes 1,500 — 1,500 — Short-term investments: Commercial paper 22,052 — 22,052 — U.S. government agency notes 6,746 — 6,746 — U.S. treasury bonds and notes 3,482 3,482 — — Corporate notes 13,927 — 13,927 — Long-term investments: Corporate notes 1,499 — 1,499 — $ 81,984 $ 4,283 $ 77,701 $ — The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2016 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: (In thousands) Fair Value Measurements as of December 31, 2016 Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) 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) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of fair value of available-for-sale short term investments | The following tables summarize our investments in available-for-sale securities by significant investment category reported as short-term or long-term investments as of December 31, 2017 and 2016 (in thousands): December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: Commercial paper $ 22,052 $ — $ — $ 22,052 U.S. government agency notes 6,750 — (4 ) 6,746 U.S. treasury bonds and notes 3,483 — (1 ) 3,482 Corporate notes 13,946 — (19 ) 13,927 46,231 — (24 ) 46,207 Long-term investments: Corporate notes 1,506 — (7 ) 1,499 Total available-for-sale investments $ 47,737 $ — $ (31 ) $ 47,706 December 31, 2016 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 The following table summarizes the contractual maturities of our available-for-sale securities at December 31, 2017 (in thousands): Amortized Cost Fair Value Mature in less than one year $ 46,231 $ 46,207 Mature in one year or more $ 1,506 $ 1,499 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: As of December 31, (in thousands) 2017 2016 Computer and lab equipment $ 2,303 $ 565 Furniture & fixtures 46 41 Leasehold improvements 930 82 Construction-in-process 4,969 2,073 Total 8,248 2,761 Less accumulated depreciation and amortization (791 ) (320) Property and equipment, net $ 7,457 $ 2,441 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following as of December 31, 2017 and 2016 : (In thousands) December 31, 2017 December 31, 2016 Accrued consulting $ 335 $ 106 Accrued research and development costs 919 1,390 Accrued other 646 124 Deferred rent 115 59 2,015 1,679 Less current portion (1,900 ) (1,650 ) Long-term liability (deferred rent) $ 115 $ 29 |
Stock-Based Awards and Benefi28
Stock-Based Awards and Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of shares of common stock reserved for future issuance | At December 31, 2017 , shares of common stock reserved for future issuance inclusive of outstanding option shares are as follows: 2016 Equity Incentive Plan 2,746,875 2014 Employee Stock Purchase Plan 62,458 2,809,333 |
Summary of activity under stock option plans | A summary of activity under our stock option plans is as follows: Shares Available For Grant Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining ContractualTerm (In Years) Aggregate Intrinsic Value Balance, December 31, 2014 1,571,298 2,329,415 $7.60 Granted (922,083 ) 922,083 $6.54 Exercised (58,126 ) $1.81 Expired 5,104 (5,104 ) $19.96 Forfeited - stock options 72,083 (72,083 ) $12.48 Balance, December 31, 2015 726,402 3,116,185 $7.26 8.2 $2,908,000 2012 Plan terminated (a) (307,107 ) 2016 Plan authorized (b) 3,000,000 Granted (847,683 ) 847,683 $3.48 Exercised (39,501 ) $0.57 Expired 43,818 (43,818 ) $14.52 Forfeited - stock options 312,220 (312,220 ) $7.06 Balance, December 31, 2016 2,927,650 3,568,329 $6.36 7.5 $4,353,000 2012 Plan true up retired shares (c) (26,977 ) 2016 Plan issued RSA shares (d) (250,000 ) Granted (1,208,200 ) 1,208,200 $6.62 Exercised (156,927 ) $1.98 Expired 7,267 (7,267 ) $14.54 Forfeited - stock options 38,710 (38,710 ) $6.60 Balance, December 31, 2017 1,488,450 4,573,625 $6.57 7.2 $18,745,000 Options vested and expected to vest, December 31, 2017 4,573,625 $6.57 7.2 $18,745,000 Options exercisable, December 31, 2017 2,962,057 $6.80 6.4 $13,208,000 (a) The 2012 Equity Incentive Plan terminated in May 2016. All shares available for grant under this Plan expired. (b) The 2016 Equity Incentive Plan was adopted and approved by stockholders in May 2016. (c) True up of all expired shares available for grant under the 2012 Equity Incentive Plan, which was terminated in May 2016. (d) Issued 250,000 RSA shares on 01/23/2017 under the 2016 Equity Incentive Plan. |
Schedule of restricted stock award activity | Restricted stock activity for the year ended December 31, 2017 , was as follows: Restricted Stock Award Shares Weighted Average Grant Date Fair Value Unvested balance at December 31, 2016 — — Granted 250,000 $6.40 Vested — — Forfeited — — Unvested balance at December 31, 2017 250,000 $6.40 |
Schedule of stock-based compensation expense | Total stock-based compensation expense, related to all of our share-based payment awards, is comprised of the following: (In thousands) Years Ended December 31, 2017 2016 2015 Research and development $1,650 $1,463 $1,857 General and administrative 3,557 2,164 2,300 $5,207 $3,627 $4,157 |
Schedule of valuation assumptions, stock options | The relevant data used to determine the fair value of stock options earned or granted and the Purchase Plan is as follows: Years Ended December 31, 2017 2016 2015 Stock options: Weighted average risk-free interest rate 1.98% 1.61% 1.51% Weighted average expected term (in years) 6.0 6.3 6.1 Weighted average expected volatility 70.4% 83.4% 94.8% Weighted average expected dividend yield — — — Fair value at grant date $4.21 $2.45 $5.03 Employee stock purchase plan: Weighted average risk-free interest rate 1.04% 0.50% 0.08% Weighted average expected term (in years) 0.5 0.5 0.5 Weighted average expected volatility 56.7% 84.4% 80.7% Weighted average expected dividend yield — — — Fair value at grant date $1.73 $1.42 $2.08 Restricted Stock Award: Fair value at grant date $6.40 — — |
Schedule of valuation assumptions, employee stock purchase plan | The relevant data used to determine the fair value of stock options earned or granted and the Purchase Plan is as follows: Years Ended December 31, 2017 2016 2015 Stock options: Weighted average risk-free interest rate 1.98% 1.61% 1.51% Weighted average expected term (in years) 6.0 6.3 6.1 Weighted average expected volatility 70.4% 83.4% 94.8% Weighted average expected dividend yield — — — Fair value at grant date $4.21 $2.45 $5.03 Employee stock purchase plan: Weighted average risk-free interest rate 1.04% 0.50% 0.08% Weighted average expected term (in years) 0.5 0.5 0.5 Weighted average expected volatility 56.7% 84.4% 80.7% Weighted average expected dividend yield — — — Fair value at grant date $1.73 $1.42 $2.08 Restricted Stock Award: Fair value at grant date $6.40 — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | As of December 31, 2017, we are obligated to make minimum lease payments under all of our operating leases as follows (in thousands): Year ending December 31, Lease Payments 2018 $ 812 2019 810 2020 726 2021 459 2022 194 Total $ 3,001 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Differences between provision (benefit) for income taxes and income taxes at the statutory federal income tax rate | Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate are as follows: (In thousands, except percentages) For the years ended December 31, 2017 2016 2015 Income tax expense (benefit) at statutory federal rate $ (10,499 ) 34.0 % $ (7,651 ) 34.0 % $ (9,226 ) 34.0 % State income tax, net of federal benefit (1,880 ) 6.1 (1,389 ) 6.2 (1,678 ) 6.2 Permanent items 63 (0.2 ) 38 (0.2 ) 58 (0.2 ) Research credits (1,172 ) 3.8 (970 ) 4.3 (1,379 ) 5.1 Stock-based compensation (122 ) 0.4 (29 ) 0.1 — — ASC 740-10 469 (1.5 ) 388 (1.7 ) 552 (2 ) Change in valuation allowance (128 ) 0.4 9,602 (42.6 ) 11,924 (43.9 ) Tax Cuts and Jobs Act 13,092 (42.4 ) — — — — Other 177 (0.6 ) 11 (0.1 ) (251 ) 0.8 Provision (benefit) for income taxes $ — — % $ — — % $ — — % |
Components of deferred tax assets | The components of the deferred tax assets are as follows at December 31, 2017 and 2016 : December 31, (In thousands) 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 26,369 $ 27,093 Research & development credits 3,044 2,173 Accrued expenses 753 720 Amortization and depreciation (132 ) 2,738 Stock-based compensation 4,860 2,296 Other 12 14 34,906 35,034 Valuation Allowance (34,906 ) (35,034 ) Net current deferred tax assets $ — $ — |
Rollforward of changes in unrecognized tax benefits | A rollforward of changes in our unrecognized tax benefits is shown below. (In thousands) December 31, 2017 2016 Balance at beginning of year $ 1,698 $ 1,234 Additions based on tax positions related to the current year 554 464 Additions for tax positions of prior years — — Balance at end of year $ 2,252 $ 1,698 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 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 for the years ended December 31, 2017 , 2016 and 2015: (In thousands, except per share amounts) Years Ended December 31, 2017 2016 2015 Basic and diluted net loss per share attributable to common stockholders: Numerator: Net loss attributable to common stockholders $ (30,879 ) $ (22,499 ) $ (27,130 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 25,084 19,873 19,773 Net loss per common share attributable to common stockholders, basic and diluted $ (1.23 ) $ (1.13 ) $ (1.37 ) |
Selected Quarterly Financial 32
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited quarterly financial data | The following table presents selected unaudited quarterly financial data for each of the quarters in the years ended December 31, 2017 and 2016 . (In thousands, except per share amounts) 2017 2016 Quarter ended Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Operating costs and expenses Research and development $ 5,142 $ 4,877 $ 3,866 $ 3,780 $ 3,509 $ 3,754 $ 3,161 $ 3,437 General and administrative 4,820 3,269 3,056 2,843 2,401 2,022 1,865 2,020 Restructuring costs — — — — — — — 655 Total operating cost and expenses 9,962 8,146 6,922 6,623 5,910 5,776 5,026 6,112 Loss from operations (9,962 ) (8,146 ) (6,922 ) (6,623 ) (5,910 ) (5,776 ) (5,026 ) (6,112 ) Interest and other income, net 232 256 155 131 101 93 79 52 Net loss $ (9,730 ) $ (7,890 ) $ (6,767 ) $ (6,492 ) $ (5,809 ) $ (5,683 ) $ (4,947 ) $ (6,060 ) Net loss per share, basic and diluted (1) $ (0.35 ) $ (0.29 ) $ (0.29 ) $ (0.30 ) $ (0.29 ) $ (0.29 ) $ (0.25 ) $ (0.31 ) Weighted average shares used in computing net loss per share, basic and diluted 27,915 27,400 23,409 21,516 19,900 19,891 19,865 19,836 (1) Net loss per share for each quarter is calculated as a discrete period; the sum of four quarters may not equal the calculated full year amount. |
Organization and Description 33
Organization and Description of Business (Details) $ / shares in Units, $ in Thousands | Aug. 11, 2017USD ($)$ / sharesshares | Jul. 12, 2017USD ($)$ / sharesshares | Dec. 19, 2016USD ($) | Apr. 25, 2016class_of_stock$ / sharesshares | Aug. 11, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jun. 30, 2017USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares |
Debt Instrument [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 | ||||||
Accumulated deficit | $ 81,101 | $ 111,980 | ||||||
Maximum aggregate offering price of common stock sold under agreement | $ 30,000 | $ 30,000 | ||||||
Number of shares issued in transaction (in shares) | shares | 3,314,000 | 3,000,000 | 3,314,000 | |||||
Net proceeds after deducting commissions and other related expenses | $ 23,198 | $ 23,198 | ||||||
Shares issued, price per share (USD per share) | $ / shares | $ 7.50 | |||||||
Stock issued during period | $ 24,855 | $ 22,500 | $ 24,855 | |||||
Cash, cash equivalents, short-term and long-term investments | $ 82,519 | |||||||
KindredBio Equine, Inc | ||||||||
Debt Instrument [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. | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of shares issued in transaction (in shares) | shares | 4,501,985 | |||||||
Net proceeds after deducting commissions and other related expenses | $ 28,962 | |||||||
Over-allotment option | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of shares issued in transaction (in shares) | shares | 314,000 | |||||||
Shares issued, price per share (USD per share) | $ / shares | $ 7.50 | $ 7.50 | ||||||
Stock issued during period | $ 2,355 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Details) ft² in Thousands | Aug. 07, 2017USD ($)ft²a | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Purchase of property and equipment | $ 5,920,000 | $ 952,000 | $ 729,000 | |
Strategic Veterinary Pharmaceuticals, Inc. | ||||
Property, Plant and Equipment [Line Items] | ||||
Area of real estate property (in sqft) | ft² | 180 | |||
Purchase of property and equipment | $ 3,750,000 | |||
Area of land (in acres) | a | 8 | |||
Lab and computer equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 2 years | |||
Lab and computer equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 5 years | |||
Furniture and fixtures | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 2 years | |||
Furniture and fixtures | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 5 years | |||
Land improvements and real property | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 15 years | |||
Land improvements and real property | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 39 years | |||
Software | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 2 years | |||
Software | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 5 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Financial assets measured at fair value on a recurring basis - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Measurements | ||
Total financial assets | $ 81,984,000 | $ 55,127,000 |
Financial liabilities measured at fair value | 0 | 0 |
Money market funds | ||
Fair Value Measurements | ||
Cash equivalents: | 801,000 | 3,157,000 |
Commercial paper | ||
Fair Value Measurements | ||
Cash equivalents: | 31,977,000 | 850,000 |
Short-term investments: | 22,052,000 | 4,228,000 |
U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments: | 5,997,000 | |
U.S. government agency notes | ||
Fair Value Measurements | ||
Short-term investments: | 6,746,000 | 13,550,000 |
U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments: | 3,482,000 | 11,015,000 |
Corporate notes | ||
Fair Value Measurements | ||
Cash equivalents: | 1,500,000 | |
Short-term investments: | 13,927,000 | 15,278,000 |
Long-term investments: | 1,499,000 | 1,052,000 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value Measurements | ||
Total financial assets | 4,283,000 | 20,169,000 |
Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value Measurements | ||
Cash equivalents: | 801,000 | 3,157,000 |
Quoted Prices in Active Markets (Level 1) | Commercial paper | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Quoted Prices in Active Markets (Level 1) | U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments: | 5,997,000 | |
Quoted Prices in Active Markets (Level 1) | U.S. government agency notes | ||
Fair Value Measurements | ||
Short-term investments: | 0 | 0 |
Quoted Prices in Active Markets (Level 1) | U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments: | 3,482,000 | 11,015,000 |
Quoted Prices in Active Markets (Level 1) | Corporate notes | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Long-term investments: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total financial assets | 77,701,000 | 34,958,000 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value Measurements | ||
Cash equivalents: | 31,977,000 | 850,000 |
Short-term investments: | 22,052,000 | 4,228,000 |
Significant Other Observable Inputs (Level 2) | U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments: | 0 | |
Significant Other Observable Inputs (Level 2) | U.S. government agency notes | ||
Fair Value Measurements | ||
Short-term investments: | 6,746,000 | 13,550,000 |
Significant Other Observable Inputs (Level 2) | U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate notes | ||
Fair Value Measurements | ||
Cash equivalents: | 1,500,000 | |
Short-term investments: | 13,927,000 | 15,278,000 |
Long-term investments: | 1,499,000 | 1,052,000 |
Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Total financial assets | 0 | 0 |
Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | 0 |
Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Unobservable Inputs (Level 3) | U.S. treasury bills | ||
Fair Value Measurements | ||
Short-term investments: | 0 | |
Unobservable Inputs (Level 3) | U.S. government agency notes | ||
Fair Value Measurements | ||
Short-term investments: | 0 | 0 |
Unobservable Inputs (Level 3) | U.S. treasury bonds and notes | ||
Fair Value Measurements | ||
Short-term investments: | 0 | 0 |
Unobservable Inputs (Level 3) | Corporate notes | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Long-term investments: | $ 0 | $ 0 |
Investments Summary of Investme
Investments Summary of Investments Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 47,737 | $ 51,151 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (31) | (34) |
Fair Value | 47,706 | 51,120 |
Short-term investments: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 46,231 | 50,096 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (24) | (31) |
Fair Value | 46,207 | 50,068 |
Short-term investments: | U.S. treasury bills | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,996 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Fair Value | 5,997 | |
Short-term investments: | Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 22,052 | 4,228 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 22,052 | 4,228 |
Short-term investments: | U.S. government agency notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,750 | 13,552 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (4) | (3) |
Fair Value | 6,746 | 13,550 |
Short-term investments: | U.S. treasury bonds and notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,483 | 11,015 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 3,482 | 11,015 |
Short-term investments: | Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,946 | 15,305 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (19) | (27) |
Fair Value | 13,927 | 15,278 |
Long-term investments: | Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,506 | 1,055 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | (3) |
Fair Value | $ 1,499 | $ 1,052 |
Investments Maturities of Avail
Investments Maturities of Available-for-Sale Securities (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Amortized Cost | |
Mature in less than one year | $ 46,231 |
Mature in one year or more | 1,506 |
Fair Value | |
Mature in less than one year | 46,207 |
Mature in one year or more | $ 1,499 |
Property and Equipment, Net Sch
Property and Equipment, Net Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,248 | $ 2,761 |
Less accumulated depreciation and amortization | (791) | (320) |
Property and equipment, net | 7,457 | 2,441 |
Computer and lab equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,303 | 565 |
Furniture & fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 46 | 41 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 930 | 82 |
Construction-in-process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,969 | $ 2,073 |
Property and Equipment, Net Nar
Property and Equipment, Net Narrative (Details) | Aug. 07, 2017USD ($)a | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Purchase of property and equipment | $ 5,920,000 | $ 952,000 | $ 729,000 | |
Property and equipment, gross | 8,248,000 | 2,761,000 | ||
Depreciation and amortization expense | 475,000 | 155,000 | $ 146,000 | |
Construction-in-process | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase of property and equipment | 1,219,000 | |||
Property and equipment, gross | $ 4,969,000 | $ 2,073,000 | ||
Strategic Veterinary Pharmaceuticals, Inc. | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase of property and equipment | $ 3,750,000 | |||
Area of land (in acres) | a | 8 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued consulting | $ 335 | $ 106 |
Accrued research and development costs | 919 | 1,390 |
Accrued other | 646 | 124 |
Deferred rent | 115 | 59 |
Accrued liabilities | 2,015 | 1,679 |
Less current portion | (1,900) | (1,650) |
Long-term liability (deferred rent) | $ 115 | $ 29 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Aug. 11, 2017USD ($)$ / sharesshares | Jul. 12, 2017USD ($)$ / sharesshares | Dec. 19, 2016USD ($) | Jan. 31, 2018USD ($) | Aug. 11, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jan. 31, 2015USD ($) | Jun. 30, 2017USD ($)shares | Dec. 31, 2017USD ($)vote$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares |
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares authorized (in shares) | shares | 10,000,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||
Number of common shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||
Common stock, par value (USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Exercise of common stock options (in shares) | shares | 156,927 | 39,501 | 58,126 | ||||||||
Exercise of stock options and purchase of ESPP shares | $ | $ 311,000 | $ 23,000 | $ 105,000 | ||||||||
Common stock, shares outstanding (in shares) | shares | 28,182,563 | ||||||||||
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 | $ 30,000,000 | |||||||||
Number of shares issued in transaction (in shares) | shares | 3,314,000 | 3,000,000 | 3,314,000 | ||||||||
Net proceeds after deducting commissions and other related expenses | $ | $ 23,198,000 | $ 23,198,000 | |||||||||
Shares issued, price per share (USD per share) | $ / shares | $ 7.50 | ||||||||||
Stock issued during period | $ | $ 24,855,000 | $ 22,500,000 | $ 24,855,000 | ||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of voting rights | vote | 1 | ||||||||||
Exercise of common stock options (in shares) | shares | 157,000 | 40,000 | 58,000 | ||||||||
Common stock issued under ESPP (in shares) | shares | 43,561 | 40,429 | 53,752 | ||||||||
Proceeds from ESPP | $ | $ 201,000 | $ 139,000 | $ 238,000 | ||||||||
Common Stock | Employee | Stock options: | |||||||||||
Class of Stock [Line Items] | |||||||||||
Exercise of common stock options (in shares) | shares | 156,927 | 39,501 | 58,126 | ||||||||
Exercise of stock options and purchase of ESPP shares | $ | $ 311,000 | $ 23,000 | $ 105,000 | ||||||||
FBR Capital Markets & Co. | |||||||||||
Class of Stock [Line Items] | |||||||||||
Commission percentage of gross proceeds | 3.00% | ||||||||||
Number of shares issued in transaction (in shares) | shares | 4,501,985 | ||||||||||
Payments for commissions and fees | $ | $ 906,000 | ||||||||||
Payments of stock issuance costs | $ | 132,000 | ||||||||||
Net proceeds after deducting commissions and other related expenses | $ | $ 28,962,000 | ||||||||||
Over-allotment option | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of shares issued in transaction (in shares) | shares | 314,000 | ||||||||||
Shares issued, price per share (USD per share) | $ / shares | $ 7.50 | $ 7.50 | |||||||||
Stock issued during period | $ | $ 2,355,000 | ||||||||||
Subsequent Event | |||||||||||
Class of Stock [Line Items] | |||||||||||
Maximum dollar amount of equity and debt securities offered | $ | $ 150,000,000 | ||||||||||
Series A Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares authorized (in shares) | shares | 100,000 | ||||||||||
Undesignated | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares authorized (in shares) | shares | 9,900,000 |
Stock-Based Awards and Benefi42
Stock-Based Awards and Benefit Plan - Narrative (Details) | Jan. 23, 2017USD ($)employeeshares | Jan. 01, 2015 | Nov. 04, 2012shares | May 31, 2016shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for future issuance (in shares) | 2,809,333 | |||||||
Number of options outstanding (in shares) | 2,329,415 | 4,573,625 | 3,568,329 | 3,116,185 | ||||
Number of shares available for grant (in shares) | 1,571,298 | 1,488,450 | 2,927,650 | 726,402 | ||||
Common stock reserved for future issuance (in shares) | 62,458 | |||||||
Aggregate intrinsic value of stock options exercised | $ | $ 911,000 | $ 117,000 | $ 266,000 | |||||
Exercise of stock options and purchase of ESPP shares | $ | $ 311,000 | $ 23,000 | $ 105,000 | |||||
Grants in period, weighted average grant date fair value (USD per share) | $ / shares | $ 4.21 | $ 2.45 | $ 5.03 | |||||
Stock-based compensation expense | $ | $ 5,207,000 | $ 3,627,000 | $ 4,157,000 | |||||
Unrecognized stock-based compensation expense | $ | $ 5,524,000 | |||||||
Stock options: | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grants in period, weighted average grant date fair value (USD per share) | $ / shares | $ 4.21 | $ 2.45 | $ 5.03 | |||||
Recognition period (in years) | 2 years 6 months 22 days | |||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period (in years) | 1 year | |||||||
Restricted stock granted (in shares) | 250,000 | 250,000 | 0 | 0 | ||||
Number of employees awards | employee | 4 | |||||||
Vesting rights percentage | 25.00% | |||||||
Stock-based compensation expense | $ | $ 1,600,000 | |||||||
Unrecognized stock-based compensation expense | $ | $ 1,225,000 | |||||||
Recognition period (in years) | 3 years 26 days | |||||||
2012 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for future issuance (in shares) | 4,000,000 | |||||||
2012 Equity Incentive Plan | Stock options: | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period (in years) | 10 years | |||||||
Number of options outstanding (in shares) | 3,315,200 | |||||||
2016 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for future issuance (in shares) | 2,746,875 | |||||||
2016 Equity Incentive Plan | Stock options: | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for future issuance (in shares) | 3,000,000 | |||||||
Number of options outstanding (in shares) | 1,258,425 | |||||||
Percent of purchase price of common stock | 100.00% | |||||||
Ownership percentage by noncontrolling Owners | 10.00% | |||||||
Purchase price of common stock if ownership percentage surpasses threshold, percent | 110.00% | |||||||
Number of shares available for grant (in shares) | 1,488,450 | |||||||
2016 Equity Incentive Plan | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock granted (in shares) | 250,000 | |||||||
2016 Equity Incentive Plan | Minimum | Stock options: | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period (in years) | 1 year | |||||||
2016 Equity Incentive Plan | Maximum | Stock options: | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period (in years) | 4 years | |||||||
2014 Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for future issuance (in shares) | 62,458 | |||||||
2014 Employee Stock Purchase Plan | Employee stock purchase plan: | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for future issuance (in shares) | 200,000 | |||||||
Percent of purchase price of common stock | 85.00% | |||||||
Offering period (in months) | 6 months | |||||||
Initial offering period (in months) | 5 months | |||||||
Maximum number of shares per employee (in shares) | 2,000 | |||||||
Maximum value of shares per employee | $ | $ 25,000 | |||||||
Weighted average grant date fair value (USD per share) | $ / shares | $ 1.73 | |||||||
Accrued employee benefits | $ | $ 27,000 | $ 17,000 | ||||||
Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock issued under ESPP (in shares) | 43,561 | 40,429 | 53,752 | |||||
Common Stock | 2014 Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock issued under ESPP (in shares) | 137,542 |
Stock-Based Awards and Benefi43
Stock-Based Awards and Benefit Plan - Reserved Shares (Details) | Dec. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 2,809,333 |
2016 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 2,746,875 |
2014 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 62,458 |
Stock-Based Awards and Benefi44
Stock-Based Awards and Benefit Plan - Stock Option Plan Activity Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 23, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Shares | |||||
Number of shares available for grant, beginning balance (in shares) | 2,927,650 | 726,402 | 1,571,298 | ||
Number of shares issuable under options, beginning balance (in shares) | 3,568,329 | 3,116,185 | 2,329,415 | ||
Granted (in shares) | (1,208,200) | (847,683) | (922,083) | ||
Exercised (in shares) | (156,927) | (39,501) | (58,126) | ||
Expired (in shares) | (7,267) | (43,818) | (5,104) | ||
Forfeited - stock options (in shares) | (38,710) | (312,220) | (72,083) | ||
Number of shares available for grant, ending balance (in shares) | 1,488,450 | 2,927,650 | 726,402 | 1,571,298 | |
Number of shares issuable under options, ending balance (in shares) | 4,573,625 | 3,568,329 | 3,116,185 | 2,329,415 | |
Weighted Average Exercise Price | |||||
Granted (USD per share) | $ 6.62 | $ 3.48 | $ 6.54 | ||
Exercised (USD per share) | 1.98 | 0.57 | 1.81 | ||
Expired (USD per share) | 14.54 | 14.52 | 19.96 | ||
Forfeited - stock options (USD per share) | 6.60 | 7.06 | 12.48 | ||
Outstanding (USD per share) | $ 6.57 | $ 6.36 | $ 7.26 | $ 7.60 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Weighted Average Remaining Contractual Term (in years) | 7 years 2 months 16 days | 7 years 6 months | 8 years 2 months 12 days | ||
Aggregate Intrinsic Value | $ 18,745 | $ 4,353 | $ 2,908 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |||||
Options vested and expected to vest, shares issuable under options (in shares) | 4,573,625 | ||||
Options vested and expected to vest, weighted average exercise price (USD per share) | $ 6.57 | ||||
Options vested and expected to vest, weighted average remaining contractual term (in years) | 7 years 2 months 16 days | ||||
Options vested and expected to vest, aggregate intrinsic value | $ 18,745 | ||||
Options exercisable, shares issuable under options (in shares) | 2,962,057 | ||||
Options exercisable, weighted average exercise price (USD per share) | $ 6.80 | ||||
Options exercisable, weighted average remaining contractual term (in years) | 6 years 4 months 21 days | ||||
Options exercisable, aggregate intrinsic value | $ 13,208 | ||||
2012 Equity Incentive Plan | |||||
Shares | |||||
2012 Plan terminated (in shares) | (307,107) | ||||
2012 Plan true up retired shares (in shares) | (26,977) | ||||
2016 Equity Incentive Plan | |||||
Shares | |||||
2016 Plan authorized (in shares) | 3,000,000 | ||||
Restricted Stock | |||||
Shares | |||||
2016 Plan issued RSA shares (in shares) | (250,000) | (250,000) | 0 | 0 | |
Restricted Stock | 2016 Equity Incentive Plan | |||||
Shares | |||||
2016 Plan issued RSA shares (in shares) | (250,000) |
Stock-Based Awards and Benefi45
Stock-Based Awards and Benefit Plan - Restricted Stock (Details) - Restricted Stock - $ / shares | Jan. 23, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Shares | ||||
Unvested balance at December 31, 2016 (in shares) | 0 | |||
Granted (in shares) | 250,000 | 250,000 | 0 | 0 |
Vested (in shares) | 0 | |||
Forfeited (in shares) | 0 | |||
Unvested balance at December 31, 2017 (in shares) | 250,000 | 0 | ||
Weighted Average Grant Date Fair Value | ||||
Unvested balance at December 31, 2016 (in USD per share) | $ 0 | |||
Granted (in USD per share) | 6.40 | $ 0 | $ 0 | |
Vested (in USD per share) | 0 | |||
Forfeited (in USD per share) | 0 | |||
Unvested balance at December 31, 2017 (in USD per share) | $ 6.40 | $ 0 |
Stock-Based Awards and Benefi46
Stock-Based Awards and Benefit Plan - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5,207 | $ 3,627 | $ 4,157 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,650 | 1,463 | 1,857 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3,557 | $ 2,164 | $ 2,300 |
Stock-Based Awards and Benefi47
Stock-Based Awards and Benefit Plan - Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value at grant date, stock options (in USD per share) | $ 4.21 | $ 2.45 | $ 5.03 |
Stock options: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average risk-free interest rate | 1.98% | 1.61% | 1.51% |
Weighted average expected term (in years) | 6 years | 6 years 3 months 18 days | 6 years 1 month 6 days |
Weighted average expected volatility | 70.40% | 83.40% | 94.80% |
Weighted average expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value at grant date, stock options (in USD per share) | $ 4.21 | $ 2.45 | $ 5.03 |
Employee stock purchase plan: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average risk-free interest rate | 1.04% | 0.50% | 0.08% |
Weighted average expected term (in years) | 6 months | 6 months | 6 months |
Weighted average expected volatility | 56.70% | 84.40% | 80.70% |
Weighted average expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value at grant date (in USD per share) | $ 1.73 | $ 1.42 | $ 2.08 |
Restricted Stock Award: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value at grant date (in USD per share) | $ 6.40 | $ 0 | $ 0 |
Commitments and Contingencies48
Commitments and Contingencies (Details) $ in Thousands | Jun. 01, 2017ft² | Dec. 31, 2017USD ($)equipment_lease | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2017ft² | Apr. 30, 2017ft² | Feb. 28, 2017ft² | Oct. 31, 2016ft² | Feb. 29, 2016ft² | Nov. 30, 2015ft² | Aug. 31, 2015ft² | Jan. 31, 2015ft² | Apr. 30, 2014ft² |
Property Subject to or Available for Operating Lease [Line Items] | |||||||||||||
Number of equipment leases | equipment_lease | 3 | ||||||||||||
Rent expense | $ 679 | $ 522 | $ 339 | ||||||||||
Number of operating leases for equipment | equipment_lease | 3 | ||||||||||||
Lease Payments | |||||||||||||
2,018 | $ 812 | ||||||||||||
2,019 | 810 | ||||||||||||
2,020 | 726 | ||||||||||||
2,021 | 459 | ||||||||||||
2,022 | 194 | ||||||||||||
Total | $ 3,001 | ||||||||||||
Property Subject to Operating Lease | Laboratory space | |||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||||||
Area of real estate property (in sqft) | ft² | 2,145 | ||||||||||||
Additional area of real estate property (in sqft) | ft² | 721 | 2,326 | 3,599 | 123 | 131 | 2,431 | |||||||
Total area of real estate property | ft² | 10,755 | ||||||||||||
Extension term (in years) | 5 years | ||||||||||||
Property Subject to Operating Lease | Office Space | |||||||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||||||
Area of real estate property (in sqft) | ft² | 6,900 | 3,126 | 6,900 | ||||||||||
Additional area of real estate property (in sqft) | ft² | 1,190 |
Restructuring Plan (Details)
Restructuring Plan (Details) $ in Thousands | Jan. 11, 2016position | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Restructuring and Related Activities [Abstract] | ||||||||||||
Number of positions eliminated | 18 | |||||||||||
Percentage of workforce reduced | 31.00% | |||||||||||
Entity number of employees | 39 | |||||||||||
Restructuring costs | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 655 | $ 0 | $ 655 | $ 0 |
Income Taxes - Reconciliation S
Income Taxes - Reconciliation Statutory Federal Income Tax to Effective Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense (benefit) at statutory federal rate | $ (10,499) | $ (7,651) | $ (9,226) |
State income tax, net of federal benefit | (1,880) | (1,389) | (1,678) |
Permanent items | 63 | 38 | 58 |
Research credits | (1,172) | (970) | (1,379) |
Stock-based compensation | (122) | (29) | 0 |
ASC 740-10 | 469 | 388 | 552 |
Change in valuation allowance | (128) | 9,602 | 11,924 |
Tax Cuts and Jobs Act | 13,092 | 0 | 0 |
Other | 177 | 11 | (251) |
Provision (benefit) for income taxes | $ 0 | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax expense (benefit) at statutory federal rate | 34.00% | 34.00% | 34.00% |
State income tax, net of federal benefit | 6.10% | 6.20% | 6.20% |
Permanent items | (0.20%) | (0.20%) | (0.20%) |
Research credits | 3.80% | 4.30% | 5.10% |
Stock-based compensation | 0.40% | 0.10% | 0.00% |
ASC 740-10 | (1.50%) | (1.70%) | (2.00%) |
Change in valuation allowance | 0.40% | (42.60%) | (43.90%) |
Tax Cuts and Jobs Act | (42.40%) | 0.00% | 0.00% |
Other | (0.60%) | (0.10%) | 0.80% |
Provision (benefit) for income taxes | 0.00% | 0.00% | 0.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 26,369 | $ 27,093 |
Research & development credits | 3,044 | 2,173 |
Accrued expenses | 753 | 720 |
Amortization and depreciation | (132) | |
Amortization and depreciation | 2,738 | |
Stock-based compensation | 4,860 | 2,296 |
Other | 12 | 14 |
Deferred tax assets, gross | 34,906 | 35,034 |
Valuation Allowance | (34,906) | (35,034) |
Net current deferred tax assets | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Net deferred tax assets | $ 34,906,000 | $ 35,034,000 | |
Unrecognized tax benefits that would impact the effective tax rate | 2,029,000 | ||
Income tax examination, penalties and interest accrued | 0 | 0 | |
Income tax examination, penalties and interest expense | 0 | $ 0 | $ 0 |
Reduction in deferred tax asset as a result of the Tax Cuts and Jobs Act | 13,100,000 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers | 93,253,000 | ||
Federal | Research tax credit carryover | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryovers | 2,972,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers | 93,172,000 | ||
State | Research tax credit carryover | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryovers | $ 2,660,000 |
Income Taxes - Rollforward of C
Income Taxes - Rollforward of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 1,698 | $ 1,234 |
Additions based on tax positions related to the current year | 554 | 464 |
Additions for tax positions of prior years | 0 | 0 |
Balance at end of year | $ 2,252 | $ 1,698 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net loss attributable to common stockholders | $ (9,730) | $ (7,890) | $ (6,767) | $ (6,492) | $ (5,809) | $ (5,683) | $ (4,947) | $ (6,060) | $ (30,879) | $ (22,499) | $ (27,130) |
Denominator: | |||||||||||
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 27,915,000 | 27,400,000 | 23,409,000 | 21,516,000 | 19,900,000 | 19,891,000 | 19,865,000 | 19,836,000 | 25,084,000 | 19,873,000 | 19,773,000 |
Net loss per common share attributable to common stockholders, basic and diluted (USD per share) | $ (0.35) | $ (0.29) | $ (0.29) | $ (0.30) | $ (0.29) | $ (0.29) | $ (0.25) | $ (0.31) | $ (1.23) | $ (1.13) | $ (1.37) |
Stock Options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from EPS computation (in shares) | 4,573,625 | 3,568,329 | 3,116,185 | ||||||||
Restricted Stock | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from EPS computation (in shares) | 250,000 |
Employee Savings Plan (Details)
Employee Savings Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum contributions per employee, percent of salary | 90.00% | ||
Employer matching contribution, percent of match | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Contributions during the year | $ 149 | $ 101 | $ 164 |
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 3.00% |
Selected Quarterly Financial 56
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating costs and expenses | |||||||||||
Research and development | $ 5,142 | $ 4,877 | $ 3,866 | $ 3,780 | $ 3,509 | $ 3,754 | $ 3,161 | $ 3,437 | $ 17,665 | $ 13,861 | $ 19,412 |
General and administrative | 4,820 | 3,269 | 3,056 | 2,843 | 2,401 | 2,022 | 1,865 | 2,020 | 13,988 | 8,308 | 7,850 |
Restructuring costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 655 | 0 | 655 | 0 |
Total operating expenses | 9,962 | 8,146 | 6,922 | 6,623 | 5,910 | 5,776 | 5,026 | 6,112 | 31,653 | 22,824 | 27,262 |
Loss from operations | (9,962) | (8,146) | (6,922) | (6,623) | (5,910) | (5,776) | (5,026) | (6,112) | (31,653) | (22,824) | (27,262) |
Interest and other income, net | 232 | 256 | 155 | 131 | 101 | 93 | 79 | 52 | 774 | 325 | 132 |
Net loss | $ (9,730) | $ (7,890) | $ (6,767) | $ (6,492) | $ (5,809) | $ (5,683) | $ (4,947) | $ (6,060) | $ (30,879) | $ (22,499) | $ (27,130) |
Net loss per share, basic and diluted (USD per share) | $ (0.35) | $ (0.29) | $ (0.29) | $ (0.30) | $ (0.29) | $ (0.29) | $ (0.25) | $ (0.31) | $ (1.23) | $ (1.13) | $ (1.37) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 27,915 | 27,400 | 23,409 | 21,516 | 19,900 | 19,891 | 19,865 | 19,836 | 25,084 | 19,873 | 19,773 |