Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Entity [Abstract] | ||
Entity Registrant Name | Kindred Biosciences, Inc. | |
Entity Central Index Key | 1,561,743 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 28,203,060 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 44,496 | $ 34,813 |
Short-term investments | 26,328 | 46,207 |
Prepaid expenses and other | 1,383 | 797 |
Total current assets | 72,207 | 81,817 |
Property and equipment, net | 7,907 | 7,457 |
Long-term investments | 0 | 1,499 |
Other assets | 53 | 49 |
Total assets | 80,167 | 90,822 |
Current liabilities: | ||
Accounts payable | 700 | 1,439 |
Accrued compensation | 1,274 | 2,688 |
Accrued liabilities | 1,925 | 1,900 |
Total current liabilities | 3,899 | 6,027 |
Long-term liability | 111 | 115 |
Total liabilities | 4,010 | 6,142 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value; 100,000,000 shares authorized; 28,197,071 and 28,182,563 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 3 | 3 |
Additional paid-in capital | 198,147 | 196,688 |
Accumulated other comprehensive loss | (42) | (31) |
Accumulated deficit | (121,951) | (111,980) |
Total stockholders' equity | 76,157 | 84,680 |
Total liabilities and stockholders' equity | $ 80,167 | $ 90,822 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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) | 28,197,071 | 28,182,563 |
Common stock, shares outstanding (in shares) | 28,197,071 | 28,182,563 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating expenses: | ||
Research and development | $ 5,346 | $ 3,780 |
General and administrative | 4,902 | 2,843 |
Total operating expenses | 10,248 | 6,623 |
Loss from operations | (10,248) | (6,623) |
Interest and other income, net | 277 | 131 |
Net loss | (9,971) | (6,492) |
Change in unrealized losses on available-for-sale securities | (11) | (1) |
Comprehensive loss | $ (9,982) | $ (6,493) |
Net loss per share, basic and diluted (USD per share) | $ (0.36) | $ (0.30) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 27,986 | 21,516 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net loss | $ (9,971) | $ (6,492) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 1,524 | 1,241 |
Depreciation and amortization expense | 144 | 46 |
Amortization of (discount) premium on marketable securities | (29) | 88 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other | (573) | 98 |
Accounts payable | (1,227) | 726 |
Accrued liabilities and accrued compensation | (1,090) | (1,572) |
Net cash used in operating activities | (11,222) | (5,865) |
Cash Flows from Investing Activities | ||
Purchase of investments | (5,279) | (16,356) |
Sale of investments | 800 | 1,600 |
Maturities of investments | 25,875 | 17,510 |
Purchase of property and equipment | (409) | (332) |
Net cash provided by investing activities | 20,987 | 2,422 |
Cash Flows from Financing Activities | ||
Exercise of stock options | 165 | 76 |
Payment of restricted stock awards tax liability on net settlement | (247) | 0 |
Net proceeds from sale of common stock | 0 | 16,546 |
Net cash (used in) provided by financing activities | (82) | 16,622 |
Net change in cash and cash equivalents | 9,683 | 13,179 |
Cash and cash equivalents at beginning of period | 34,813 | 6,687 |
Cash and cash equivalents at end of period | 44,496 | 19,866 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable and accrued liabilities | 337 | 28 |
Proceeds due from sale of common stock | $ 0 | $ 2,090 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Kindred Biosciences, Inc. ("KindredBio", "we", "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. On April 25, 2016, we filed a Certificate of Incorporation with the State of Delaware for a wholly owned subsidiary, KindredBio Equine, Inc. ("Subsidiary"). The Subsidiary has one class of capital stock which is designated common stock, $0.0001 par value per share. The authorized number of shares of common stock for the Subsidiary is 1,000 . We are a 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 located in Burlingame, California. We are subject to risks common to companies in the biotechnology and pharmaceutical industries. There can be no assurance that our research and development will be successfully completed, that adequate patent or other intellectual property protection for our technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. We operate in an environment of substantial competition from other animal health companies. In addition, we are dependent upon the services of our employees and consultants, as well as third-party contract research organizations and manufacturers. The accompanying unaudited interim condensed consolidated financial statements (“financial statements”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2017 included in our annual report on Form 10-K as filed with the SEC on March 1, 2018. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included in these financial statements. The accompanying financial statements include the accounts of the Company and its wholly owned Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. Stock Offerings In January 2015, we filed a shelf registration statement on Form S-3 to offer and sell, from time to time, equity securities in one or more offerings up to a total dollar amount of $150.0 million. In December 2016, we entered into an At Market Issuance Sales Agreement ("Sales Agreement") with FBR Capital Markets & Co. ("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, from time to time, through FBR as our sales agent. In conjunction with the Sales Agreement, FBR would receive compensation based on an aggregate of 3% of the gross proceeds on the sale price per share of our common stock. Any sales made pursuant to the Sales Agreement were deemed an “at-the-market” offering and would be made pursuant to the shelf registration statement on Form S-3. During the six months ended June 30, 2017, we completed the sale of 4,501,985 shares of common stock under the Sales Agreement. Net proceeds, after deducting approximately $906,000 in commissions and fees and approximately $132,000 in offering costs, were approximately $28,962,000 . In July 2017, we completed an underwritten public offering of 3,000,000 shares of common stock and in August 2017, we completed the closing of the exercise of the underwriter's option to purchase an additional 314,000 shares of common stock, both at an offering price of $7.50 per share for total gross proceeds of $24,855,000 . Net proceeds, after deducting underwriting commission and offering costs, were approximately $23,198,000 . In January 2018, we filed a shelf registration statement on Form S-3 to offer and sell, from time to time, equity securities in one or more offerings up to a total dollar amount of $150.0 million due to the expiration of our January 2015 shelf registration. 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 $121,951,000 as of March 31, 2018 . We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of our former convertible preferred stock, the sale of our common stock in our initial public offering in December 2013, the sale of our common stock in our April 2014 follow-on public offering, periodic sales of our common stock under the ATM in the first half year of 2017 and the sale of our common stock in 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 operating expenses. We believe that our cash, cash equivalents, short-term and long-term investments totaling $70,824,000 as of March 31, 2018 , are sufficient to fund our planned operations through 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 Property, Plant 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. Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the valuation of stock-based awards, the realization of deferred tax assets, the recoverability of long-lived assets and the accrual of research and development expenses. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates. Comprehensive Loss Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses are reflected as a separate component of stockholders' equity in the condensed consolidated balance sheets as accumulated other comprehensive income (loss). Recently Issued Accounting Pronouncements In May 2014, 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 completed. Additionally, we continue to monitor modifications, clarifications, and interpretations issued by the FASB that may impact its assessment. We do not currently have and have never had any contracts that are within the scope of ASC 606, "Revenue from Contracts with Customers" or its predecessor guidance, ASC 605, "Revenue Recognition". 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 financial statements. We do not believe there are any other recently issued standards not yet effective that will have a material impact on our financial statements when the standards become effective. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The carrying amount of financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities approximate fair value due to the short maturities of these financial instruments. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis and are summarized as follows (in thousands): Fair Value Measurements as of March 31, 2018 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 104 $ 104 $ — $ — US Treasury bills 1,250 1,250 — — Commercial paper 40,058 — 40,058 — Short-term investments: U.S. treasury bonds and notes 3,484 3,484 — — U.S. government agency notes 4,486 — 4,486 — Commercial paper 6,465 — 6,465 — Corporate notes 11,893 — 11,893 — $ 67,740 $ 4,838 $ 62,902 $ — Fair Value Measurements as of December 31, 2017 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 801 $ 801 $ — $ — Commercial paper 31,977 — 31,977 — Corporate notes 1,500 — 1,500 Short-term investments: U.S. treasury bonds and notes 3,482 3,482 — — U.S. government agency notes 6,746 — 6,746 — Commercial paper 22,052 — 22,052 — Corporate notes 13,927 — 13,927 — Long-term investments: Corporate notes 1,499 — 1,499 — $ 81,984 $ 4,283 $ 77,701 $ — During the three months ended March 31, 2018 , there were no transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy. At March 31, 2018 and December 31, 2017 , we did not have any financial liabilities which were measured at fair value on a recurring basis. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments We classify all highly-liquid investments with stated maturities of greater than three months from the date of purchase and remaining maturities of less than one year as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such investments are viewed as being available to support current operations. We classify and account for investments as available-for-sale and reflect realized gains and losses using the specific identification method. Changes in market value, if any, excluding other-than-temporary impairments, are reflected in other comprehensive income (loss). The fair value of available-for-sale investments by type of security at March 31, 2018 was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: Commercial paper $ 6,465 $ — $ — $ 6,465 U.S. government agency notes 4,493 — (7 ) 4,486 U.S. treasury bonds and notes 3,489 — (5 ) 3,484 Corporate notes 11,923 — (30 ) 11,893 Total available-for-sale investments $ 26,370 $ — $ (42 ) $ 26,328 The fair value of available-for-sale investments by type of security at December 31, 2017 was as follows (in thousands): 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 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, 2018 December 31, 2017 Accrued consulting $ 288 $ 335 Accrued research and development costs 989 919 Other expenses 642 646 Deferred rent 117 115 2,036 2,015 Less current portion (1,925 ) (1,900 ) Long-term liability (deferred rent) $ 111 $ 115 |
Common Stock and Stock-Based Aw
Common Stock and Stock-Based Awards | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock and Stock-Based Awards | Stock-Based Awards Common Stock During the three months ended March 31, 2018 , the Company issued 41,488 shares of common stock in connection with the exercise of stock options for proceeds of $182,000 . During the three months ended March 31, 2018 , 26,980 shares of restricted common stock at a cost of $247,000 were withheld to satisfy employee tax withholding obligations arising in conjunction with the vesting of restricted stock (see below). Stock-Based Awards The table below shows the number of shares of common stock underlying options granted to employees, directors and consultants, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share: Stock Option Plan Three months ended March 31, 2018 2017 Shares underlying options granted 1,090,200 920,700 Weighted-average exercise price $8.77 $6.39 Weighted average risk- free interest rate 2.50 % 1.98 % Weighted average expected term (years) 5.9 6.0 Weighted average expected volatility 60% 70% Expected dividend yield — — Weighted-average grant date fair value per share $4.97 $4.04 In May 2016, we adopted the 2016 Equity Incentive Plan (the “2016 Plan”), and reserved 3,000,000 shares of our common stock for issuance under the 2016 Plan. The 2016 Plan is the successor to our 2012 Equity Incentive Plan (the “2012 Plan”), which was retired on May 23, 2016 upon stockholders’ approval of our 2016 Plan. All awards made under the 2012 Plan shall remain subject to the terms of that plan. Options granted under the 2016 Plan may be either incentive stock options or nonstatutory stock options. The 2016 Plan also provides for the grant of stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards and other stock awards. The exercise price of a stock option may not be less than 100% of the closing price of our common stock on the date of the grant. If, at any time we grant an incentive stock option, and the optionee directly or by attribution owns stock possessing more than 10% of the total combined voting power of all classes of KindredBio stock, the option price shall be at least 110% of the fair value and shall not be exercisable more than five years after the date of grant. Options generally vest over a period of one or four years from the date of grant. Options granted under the 2016 Plan expire no later than 10 years from the date of grant. As of March 31, 2018 , there were 2,322,531 option shares outstanding, 187,500 restricted stock awards issued but unvested, 315,000 restricted stock units granted but unvested, and 109,344 shares available for future grants under the 2016 Plan. Our Employee Stock Purchase Plan (the "Stock Purchase Plan"), adopted in December 2014, permits eligible employees to purchase common stock at a discount through payroll deductions during defined six -month consecutive offering periods beginning December 1 with the exception of our first offering period which commenced on January 1, 2015 for a five month duration. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock on the first day of the offering or 85% of the fair market value of our common stock on the purchase date. A total of 200,000 shares of common stock are authorized for issuance under the Stock Purchase Plan. A participant may purchase a maximum of 2,000 shares of common stock during each offering period, not to exceed $25,000 worth of common stock on the offering date during each calendar year. We use the Black-Scholes option pricing model, in combination with the discounted employee price, in determining the value of the Stock Purchase Plan expense to be recognized during each offering period. The following assumptions were used in the Black-Scholes option pricing model to calculate employee stock-based compensation: Stock Purchase Plan Three months ended March 31, 2018 2017 Weighted average risk-free interest rate 1.45% 0.60% Weighted average expected term (years) 0.5 0.5 Weighted average expected volatility 41.4% 74.2% Expected dividend yield — — Weighted-average grant date fair value per share $1.91 $1.32 We did not issue any common stock under the Stock Purchase Plan during the three months ended March 31, 2018. At March 31, 2018 and December 31, 2017, we had an outstanding liability of $123,000 and $27,000 , respectively, which is included in accrued compensation on the condensed consolidated balance sheets, for employee contributions to the Stock Purchase Plan for shares pending issuance at the end of the next offering period. We recorded stock-based compensation expense as follows (in thousands): Three months ended March 31, 2018 2017 Research and development $501 $409 General and administrative 1,023 832 $1,524 $1,241 We had an aggregate of approximately $9,650,000 of unrecognized stock-based compensation expense for options outstanding and the Stock Purchase Plan as of March 31, 2018 which is expected to be recognized over a weighted-average period of 2.9 years. Restricted Stock Award and Restricted Stock Units 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. On January 22, 2018, we granted 315,000 shares of restricted stock units 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 and units is $4,356,000 . As of March 31, 2018 , we have an aggregate of approximately $3,752,000 unrecognized stock-based compensation expense for restricted stock awards and units outstanding which is expected to be recognized over a weighted-average period of 3.5 years . Restricted stock activity for the quarter ended March 31, 2018 was as follows: Restricted Stock Award Shares Weighted Average Grant Date Fair Value Unvested balance at December 31, 2017 250,000 $6.40 Granted — — Vested (62,500) 6.40 Forfeited — — Unvested balance at March 31, 2018 187,500 $6.40 Restricted Stock Units Shares Weighted Average Grant Date Fair Value Unvested balance at December 31, 2017 — — Granted 315,000 $8.75 Vested — — Forfeited — — Unvested balance at March 31, 2018 315,000 $8.75 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We have non-cancelable operating leases for laboratory space in Burlingame, California with several amendments to expand the facility. Commencing on June 1, 2017, the non-cancelable operating lease for the entire existing laboratory space of a total 10,755 square feet was 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 a non-cancelable operating lease for 3,126 square feet of office space in San Diego, California through September 2019 and three equipment leases expiring through 2020. As of March 31, 2018 , we are obligated to make minimum lease payments under non-cancelable operating leases as follows (in thousands): Year ending December 31, Lease Payments 2018 (remaining of year) $ 611 2019 810 2020 726 2021 459 2022 and after 194 Total $ 2,800 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic and diluted net loss per share was calculated as follows (in thousands, except per share amounts): Three months ended March 31, 2018 2017 Basic and diluted net loss per share: Numerator: Net loss $ (9,971 ) $ (6,492 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 27,986 21,516 Net loss per share, basic and diluted $ (0.36 ) $ (0.30 ) There was no difference between the Company’s net loss and the net loss attributable to common stockholders for all periods presented. Stock options to purchase 5,553,560 shares of common stock, 187,500 shares unvested restricted stock awards and 315,000 restricted stock units as of March 31, 2018 , were excluded from the computation of diluted net loss per share attributable to common stockholders for the three months ended March 31, 2018 , because their effect was anti-dilutive. Stock options to purchase 4,458,279 shares of common stock and 250,000 shares unvested restricted stock awards were excluded from the computation of diluted net loss per share attributable to common stockholders for the three months ended March 31, 2017 , because their effect was anti-dilutive. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 7, 2018, we entered into an At Market Issuance Sales Agreement, or the sales agreement, with B. Riley FBR, Inc., and Oppenheimer & Co. Inc. (the "Sales Agents") acting as our distribution agents, relating to the sale of our common stock. In accordance with the terms of the sales agreement, we may offer and sell shares of our common stock, $0.0001 par value per share, having an aggregate offering price of up to $50,000,000 from time to time through the Sales Agents. Each share of common stock is accompanied by one Series A preferred stock purchase right that trades with our common stock. On May 4, 2018, we received notification from the U.S. Food and Drug Administration’s Center for Veterinary Medicine that our new drug application for Mirataz™ (mirtazapine transdermal ointment) for the management of weight loss in cats is approved. We expect the product to be commercially available to veterinarians by the third quarter of 2018. |
Description of Business, Basi14
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Kindred Biosciences, Inc. ("KindredBio", "we", "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. On April 25, 2016, we filed a Certificate of Incorporation with the State of Delaware for a wholly owned subsidiary, KindredBio Equine, Inc. ("Subsidiary"). The Subsidiary has one class of capital stock which is designated common stock, $0.0001 par value per share. The authorized number of shares of common stock for the Subsidiary is 1,000 . We are a 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 located in Burlingame, California. We are subject to risks common to companies in the biotechnology and pharmaceutical industries. There can be no assurance that our research and development will be successfully completed, that adequate patent or other intellectual property protection for our technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. We operate in an environment of substantial competition from other animal health companies. In addition, we are dependent upon the services of our employees and consultants, as well as third-party contract research organizations and manufacturers. The accompanying unaudited interim condensed consolidated financial statements (“financial statements”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2017 included in our annual report on Form 10-K as filed with the SEC on March 1, 2018. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included in these financial statements. The accompanying financial statements include the accounts of the Company and its wholly owned Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. |
Liquidity | Liquidity We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception and had an accumulated deficit of $121,951,000 as of March 31, 2018 . We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of our former convertible preferred stock, the sale of our common stock in our initial public offering in December 2013, the sale of our common stock in our April 2014 follow-on public offering, periodic sales of our common stock under the ATM in the first half year of 2017 and the sale of our common stock in 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 operating expenses. We believe that our cash, cash equivalents, short-term and long-term investments totaling $70,824,000 as of March 31, 2018 , are sufficient to fund our planned operations through 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 |
Property, Plant 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. |
Use of Estimates | Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the valuation of stock-based awards, the realization of deferred tax assets, the recoverability of long-lived assets and the accrual of research and development expenses. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates. |
Comprehensive Loss | Comprehensive Loss Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses are reflected as a separate component of stockholders' equity in the condensed consolidated balance sheets as accumulated other comprehensive income (loss). |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, 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 completed. Additionally, we continue to monitor modifications, clarifications, and interpretations issued by the FASB that may impact its assessment. We do not currently have and have never had any contracts that are within the scope of ASC 606, "Revenue from Contracts with Customers" or its predecessor guidance, ASC 605, "Revenue Recognition". 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 financial statements. We do not believe there are any other recently issued standards not yet effective that will have a material impact on our financial statements when the standards become effective. |
Fair Value Measurements | Certain assets and liabilities are carried at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The carrying amount of financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities approximate fair value due to the short maturities of these financial instruments. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis and are summarized as follows (in thousands): Fair Value Measurements as of March 31, 2018 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 104 $ 104 $ — $ — US Treasury bills 1,250 1,250 — — Commercial paper 40,058 — 40,058 — Short-term investments: U.S. treasury bonds and notes 3,484 3,484 — — U.S. government agency notes 4,486 — 4,486 — Commercial paper 6,465 — 6,465 — Corporate notes 11,893 — 11,893 — $ 67,740 $ 4,838 $ 62,902 $ — Fair Value Measurements as of December 31, 2017 Description Total Quoted Prices in Significant Other Unobservable Inputs Cash equivalents: Money market funds $ 801 $ 801 $ — $ — Commercial paper 31,977 — 31,977 — Corporate notes 1,500 — 1,500 Short-term investments: U.S. treasury bonds and notes 3,482 3,482 — — U.S. government agency notes 6,746 — 6,746 — Commercial paper 22,052 — 22,052 — Corporate notes 13,927 — 13,927 — Long-term investments: Corporate notes 1,499 — 1,499 — $ 81,984 $ 4,283 $ 77,701 $ — |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Fair Value of Available-for-Sale Short Term Investments | The fair value of available-for-sale investments by type of security at March 31, 2018 was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: Commercial paper $ 6,465 $ — $ — $ 6,465 U.S. government agency notes 4,493 — (7 ) 4,486 U.S. treasury bonds and notes 3,489 — (5 ) 3,484 Corporate notes 11,923 — (30 ) 11,893 Total available-for-sale investments $ 26,370 $ — $ (42 ) $ 26,328 The fair value of available-for-sale investments by type of security at December 31, 2017 was as follows (in thousands): 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 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): March 31, 2018 December 31, 2017 Accrued consulting $ 288 $ 335 Accrued research and development costs 989 919 Other expenses 642 646 Deferred rent 117 115 2,036 2,015 Less current portion (1,925 ) (1,900 ) Long-term liability (deferred rent) $ 111 $ 115 |
Common Stock and Stock-Based 18
Common Stock and Stock-Based Awards (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Plan valuation assumptions | The table below shows the number of shares of common stock underlying options granted to employees, directors and consultants, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share: Stock Option Plan Three months ended March 31, 2018 2017 Shares underlying options granted 1,090,200 920,700 Weighted-average exercise price $8.77 $6.39 Weighted average risk- free interest rate 2.50 % 1.98 % Weighted average expected term (years) 5.9 6.0 Weighted average expected volatility 60% 70% Expected dividend yield — — Weighted-average grant date fair value per share $4.97 $4.04 |
Schedule of Stock Purchase Plan valuation assumptions | The following assumptions were used in the Black-Scholes option pricing model to calculate employee stock-based compensation: Stock Purchase Plan Three months ended March 31, 2018 2017 Weighted average risk-free interest rate 1.45% 0.60% Weighted average expected term (years) 0.5 0.5 Weighted average expected volatility 41.4% 74.2% Expected dividend yield — — Weighted-average grant date fair value per share $1.91 $1.32 |
Schedule of Stock-Based Compensation Expense | We recorded stock-based compensation expense as follows (in thousands): Three months ended March 31, 2018 2017 Research and development $501 $409 General and administrative 1,023 832 $1,524 $1,241 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted stock activity for the quarter ended March 31, 2018 was as follows: Restricted Stock Award Shares Weighted Average Grant Date Fair Value Unvested balance at December 31, 2017 250,000 $6.40 Granted — — Vested (62,500) 6.40 Forfeited — — Unvested balance at March 31, 2018 187,500 $6.40 Restricted Stock Units Shares Weighted Average Grant Date Fair Value Unvested balance at December 31, 2017 — — Granted 315,000 $8.75 Vested — — Forfeited — — Unvested balance at March 31, 2018 315,000 $8.75 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases | As of March 31, 2018 , we are obligated to make minimum lease payments under non-cancelable operating leases as follows (in thousands): Year ending December 31, Lease Payments 2018 (remaining of year) $ 611 2019 810 2020 726 2021 459 2022 and after 194 Total $ 2,800 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Loss per Share | Basic and diluted net loss per share was calculated as follows (in thousands, except per share amounts): Three months ended March 31, 2018 2017 Basic and diluted net loss per share: Numerator: Net loss $ (9,971 ) $ (6,492 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 27,986 21,516 Net loss per share, basic and diluted $ (0.36 ) $ (0.30 ) |
Description of Business, Basi21
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) | Apr. 25, 2016class_of_stock$ / sharesshares | Jan. 31, 2018USD ($) | Aug. 31, 2017$ / sharesshares | Jul. 31, 2017$ / sharesshares | Dec. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Aug. 31, 2017USD ($)$ / shares | Mar. 31, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares |
Subsidiary or Equity Method Investee [Line Items] | ||||||||||
Common stock, par value (USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||
Common stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | ||||||||
Maximum dollar amount of equity and debt securities offered | $ 150,000,000 | $ 150,000,000 | ||||||||
Maximum aggregate offering price of common stock sold under agreement | $ 30,000,000 | |||||||||
Number of shares issued in transaction (in shares) | shares | 3,000,000 | |||||||||
Net proceeds received in sale of stock | $ 23,198,000 | |||||||||
Shares issued (USD per share) | $ / shares | $ 7.50 | $ 7.50 | $ 7.50 | |||||||
Gross proceeds received in sale of stock | $ 24,855,000 | |||||||||
Accumulated deficit | (121,951,000) | $ (111,980,000) | ||||||||
Cash, cash equivalents, and short-term investments | $ 70,824,000 | |||||||||
KindredBio Equine, Inc | ||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||
Number of classes of stock | class_of_stock | 1 | |||||||||
Common stock, par value (USD per share) | $ / shares | $ 0.0001 | |||||||||
Common stock, shares authorized (in shares) | shares | 1,000 | |||||||||
FBR Capital Markets & Co. | ||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||
Commission percentage of gross proceeds | 3.00% | |||||||||
Number of shares issued in transaction (in shares) | shares | 4,501,985 | |||||||||
Payments for commissions | $ 906,000 | |||||||||
Offering costs | 132,000 | |||||||||
Net proceeds received in sale of stock | $ 28,962,000 | |||||||||
Over-allotment option | ||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||
Number of shares issued in transaction (in shares) | shares | 314,000 |
Description of Business, Basi22
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) ft² in Thousands | Aug. 07, 2017USD ($)ft²a | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Property, Plant and Equipment [Line Items] | |||
Payment to acquire plant | $ 409,000 | $ 332,000 | |
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 2 years | ||
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Lab and computer equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 2 years | ||
Lab and computer equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 2 years | ||
Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Land improvements and real property | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 15 years | ||
Land improvements and real property | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 39 years | ||
Strategic Veterinary Pharmaceuticals, Inc. | |||
Property, Plant and Equipment [Line Items] | |||
Square footage of plant (in sqft) | ft² | 180 | ||
Payment to acquire plant | $ 3,750,000 | ||
Area of land (in acres) | a | 8 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring basis - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 67,740,000 | $ 81,984,000 |
Financial liabilities measured at fair value | 0 | 0 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 4,838,000 | 4,283,000 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 62,902,000 | 77,701,000 |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 104,000 | 801,000 |
Money market funds | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 104,000 | 801,000 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
US Treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,250,000 | |
Long-term investments | 1,499,000 | |
US Treasury bills | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,250,000 | |
Long-term investments | 0 | |
US Treasury bills | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Long-term investments | 1,499,000 | |
US Treasury bills | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Long-term investments | 0 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 40,058,000 | 31,977,000 |
Short-term investments | 6,465,000 | 22,052,000 |
Commercial paper | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 40,058,000 | 31,977,000 |
Short-term investments | 6,465,000 | 22,052,000 |
Commercial paper | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,500,000 | |
Short-term investments | 11,893,000 | 13,927,000 |
Corporate notes | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Short-term investments | 0 | 0 |
Corporate notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,500,000 | |
Short-term investments | 11,893,000 | 13,927,000 |
Corporate notes | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. treasury bonds and notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,484,000 | 3,482,000 |
U.S. treasury bonds and notes | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,484,000 | 3,482,000 |
U.S. treasury bonds and notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. treasury bonds and notes | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. government agency notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 4,486,000 | 6,746,000 |
U.S. government agency notes | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. government agency notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 4,486,000 | 6,746,000 |
U.S. government agency notes | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 0 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Short-term Investments | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | $ 26,370 | $ 46,231 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (42) | (24) |
Fair Value | 26,328 | 46,207 |
Short-term Investments | Commercial paper | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 6,465 | 22,052 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 6,465 | 22,052 |
Short-term Investments | U.S. government agency notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 4,493 | 6,750 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | (4) |
Fair Value | 4,486 | 6,746 |
Short-term Investments | U.S. treasury bonds and notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 3,489 | 3,483 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5) | (1) |
Fair Value | 3,484 | 3,482 |
Short-term Investments | Corporate notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 11,923 | 13,946 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (30) | (19) |
Fair Value | $ 11,893 | 13,927 |
Long-term Investments | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 47,737 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (31) | |
Fair Value | 47,706 | |
Long-term Investments | Corporate notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 1,506 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (7) | |
Fair Value | $ 1,499 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued consulting | $ 288 | $ 335 |
Accrued research and development costs | 989 | 919 |
Other expenses | 642 | 646 |
Deferred rent | 117 | 115 |
Accrued liabilities | 2,036 | 2,015 |
Less current portion | (1,925) | (1,900) |
Long-term liability (deferred rent) | $ 111 | $ 115 |
Common Stock and Stock-Based 26
Common Stock and Stock-Based Awards - Narrative (Details) | Jan. 22, 2018employeeshares | Jan. 23, 2017USD ($)employeeshares | Jan. 01, 2015 | May 31, 2016shares | Dec. 31, 2014USD ($)shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock issued in connection with the exercise of common stock (in shares) | 41,488 | |||||||
Proceeds from stock options exercised | $ | $ 182,000 | |||||||
Restricted common stock withheld for tax obligations (in shares) | 26,980 | |||||||
Restricted common stock withheld for tax obligations | $ | $ 247,000 | |||||||
Outstanding liability included in accrued compensation | $ | 123,000 | $ 27,000 | ||||||
Stock-based compensation expense | $ | $ 1,524,000 | $ 1,241,000 | ||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Number of awards issued in the period (in shares) | 250,000 | 0 | ||||||
Number of employees granted stock options | employee | 4 | |||||||
Vesting rights percentage | 25.00% | |||||||
Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Number of awards issued in the period (in shares) | 315,000 | 315,000 | ||||||
Number of employees granted stock options | employee | 4 | |||||||
Vesting rights percentage | 25.00% | |||||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock-based compensation | $ | $ 9,650,000 | |||||||
Weighted-average period for recognition (in years) | 2 years 10 months 28 days | |||||||
Restricted Stock Awards and Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock-based compensation | $ | $ 3,752,000 | |||||||
Weighted-average period for recognition (in years) | 3 years 6 months 7 days | |||||||
Stock-based compensation expense | $ | $ 4,356,000 | |||||||
2016 Equity Incentive Plan | Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for future issuance (in shares) | 3,000,000 | |||||||
Purchase price of common stock, percent of fair market value | 100.00% | |||||||
Ownership percentage | 10.00% | |||||||
Purchase price of common stock if ownership threshold is reached, percent | 110.00% | |||||||
Expected term | 10 years | |||||||
Option shares outstanding (in shares) | 2,322,531 | |||||||
Number of shares available for grant (in shares) | 109,344 | |||||||
2016 Equity Incentive Plan | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of awards issued in the period (in shares) | 187,500 | |||||||
2016 Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of awards issued in the period (in shares) | 315,000 | |||||||
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 | |||||||
Purchase price of common stock, percent of fair market value | 85.00% | |||||||
Initial offering period | 6 months | |||||||
Consecutive offering period | 5 months | |||||||
Maximum number of shares participant may purchase during each offering period (in shares) | 2,000 | |||||||
Maximum value of shares participant may purchase during each offering period | $ | $ 25,000 | |||||||
Minimum | 2016 Equity Incentive Plan | Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Maximum | 2016 Equity Incentive Plan | Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Exercise period | 5 years | |||||||
Vesting period | 4 years |
Common Stock and Stock-Based 27
Common Stock and Stock-Based Awards - Stock Option Plan (Details) - Stock Option Plan - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares underlying options granted (in shares) | 1,090,200 | 920,700 |
Weighted-average exercise price (USD per share) | $ 8.77 | $ 6.39 |
Weighted average risk- free interest rate | 2.50% | 1.98% |
Weighted average expected term (in years) | 5 years 11 months 1 day | 6 years |
Weighted average expected volatility | 60.00% | 70.00% |
Expected dividend yield | 0.00% | 0.00% |
Weighted-average grant date fair value per share (USD per share) | $ 4.97 | $ 4.04 |
Common Stock and Stock-Based 28
Common Stock and Stock-Based Awards - Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average risk- free interest rate | 1.45% | 0.60% |
Weighted average expected term (in years) | 6 months | 6 months |
Weighted average expected volatility | 41.40% | 74.20% |
Expected dividend yield | 0.00% | 0.00% |
Weighted-average grant date fair value per share (USD per share) | $ 1.91 | $ 1.32 |
Common Stock and Stock-Based 29
Common Stock and Stock-Based Awards - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,524 | $ 1,241 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 501 | 409 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,023 | $ 832 |
Common Stock and Stock-Based 30
Common Stock and Stock-Based Awards - Restricted Stock and Restricted Stock Units (Details) - $ / shares | Jan. 22, 2018 | Jan. 23, 2017 | Mar. 31, 2018 |
Restricted Stock | |||
Shares | |||
Unvested balance, beginning (in shares) | 250,000 | ||
Granted (in shares) | 250,000 | 0 | |
Vested (in shares) | (62,500) | ||
Forfeited (in shares) | 0 | ||
Unvested balance, ending (in shares) | 187,500 | ||
Weighted Average Grant Date Fair Value | |||
Unvested balance, beginning (USD per share) | $ 6.40 | ||
Granted (USD per share) | 0 | ||
Vested (USD per share) | 6.40 | ||
Forfeited (USD per share) | 0 | ||
Unvested balance, ending (USD per share) | $ 6.40 | ||
Restricted Stock Units | |||
Shares | |||
Unvested balance, beginning (in shares) | 0 | ||
Granted (in shares) | 315,000 | 315,000 | |
Vested (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Unvested balance, ending (in shares) | 315,000 | ||
Weighted Average Grant Date Fair Value | |||
Unvested balance, beginning (USD per share) | $ 0 | ||
Granted (USD per share) | 8.75 | ||
Vested (USD per share) | 0 | ||
Forfeited (USD per share) | 0 | ||
Unvested balance, ending (USD per share) | $ 8.75 |
Commitments and Contingencies31
Commitments and Contingencies (Details) $ in Thousands | Jun. 01, 2017ft² | Mar. 31, 2018USD ($)ft²equipment_lease | Jun. 30, 2017ft² | Apr. 30, 2017ft² | Feb. 28, 2017ft² |
Property, Plant and Equipment [Line Items] | |||||
Number of equipment leases (in equipment leases) | equipment_lease | 3 | ||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
2018 (remaining of year) | $ 611 | ||||
2,019 | 810 | ||||
2,020 | 726 | ||||
2,021 | 459 | ||||
2022 and after | 194 | ||||
Total | $ 2,800 | ||||
Laboratory space | Operating lease | |||||
Property, Plant and Equipment [Line Items] | |||||
Area of real estate property (in sqft) | ft² | 10,755 | ||||
Operating leases, extension term | 5 years | ||||
Additional area of real estate property (in sqft) | ft² | 721 | ||||
Office Space | Operating lease | |||||
Property, Plant and Equipment [Line Items] | |||||
Area of real estate property (in sqft) | ft² | 3,126 | 6,900 | |||
Additional area of real estate property (in sqft) | ft² | 1,190 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net loss | $ (9,971) | $ (6,492) |
Denominator: | ||
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 27,986,000 | 21,516,000 |
Net loss per share, basic and diluted (USD per share) | $ (0.36) | $ (0.30) |
Stock Option Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS computation (in shares) | 5,553,560 | 4,458,279 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS computation (in shares) | 187,500 | 250,000 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS computation (in shares) | 315,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | May 07, 2018 | Dec. 31, 2016 | Mar. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | ||
Maximum aggregate offering price of common stock sold under agreement | $ 30,000,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.0001 | |||
Maximum aggregate offering price of common stock sold under agreement | $ 50,000,000 | |||
Series A Preferred Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of purchase rights per common share under agreement (in shares) | 1 |