Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 28, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Kindred Biosciences, Inc. | ||
Entity Central Index Key | 0001561743 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 39,289,624 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 249.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 15,986 | $ 56,302 |
Short-term investments | 55,723 | 17,630 |
Accounts receivable | 923 | 903 |
Inventories | 4,218 | 3,570 |
Prepaid expenses and other | 2,495 | 1,664 |
Total current assets | 79,345 | 80,069 |
Property and equipment, net | 29,777 | 26,343 |
Long-term investments | 1,837 | 0 |
Operating lease right-of-use assets | 3,001 | |
Other assets | 64 | 70 |
Total assets | 114,024 | 106,482 |
Current liabilities: | ||
Accounts payable | 1,256 | 3,576 |
Accrued compensation | 4,193 | 3,436 |
Accrued liabilities | 4,131 | 8,169 |
Current portion of operating lease liabilities | 644 | |
Total current liabilities | 10,224 | 15,181 |
Long-term operating lease liabilities | 2,614 | |
Long-term deferred rent | 94 | |
Long-term loan payable, net of debt discount | 19,265 | 0 |
Total liabilities | 32,103 | 15,275 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Common stock; $0.0001 par value; 100,000,000 shares authorized; 39,203,533 shares and 33,948,254 shares issued and outstanding at December 31, 2019 and 2018, respectively | 4 | 3 |
Additional paid-in capital | 304,963 | 252,885 |
Accumulated other comprehensive gain (loss) | 13 | (11) |
Accumulated deficit | (223,059) | (161,670) |
Total stockholders’ equity | 81,921 | 91,207 |
Total liabilities and stockholders’ equity | $ 114,024 | $ 106,482 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 39,203,533 | 33,948,254 |
Common stock, shares outstanding (in shares) | 39,203,533 | 33,948,254 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net product revenues | $ 4,256 | $ 1,966 | $ 0 |
Operating costs and expenses: | |||
Cost of product revenues | 587 | 324 | 0 |
Research and development | 28,310 | 26,399 | 17,665 |
General and administrative | 37,926 | 26,499 | 13,988 |
Total operating costs and expenses | 66,823 | 53,222 | 31,653 |
Loss from operations | (62,567) | (51,256) | (31,653) |
Interest and other income, net | 1,178 | 1,566 | 774 |
Net loss | (61,389) | (49,690) | (30,879) |
Change in unrealized gains on available-for-sale securities | 24 | 20 | 0 |
Comprehensive loss | $ (61,365) | $ (49,670) | $ (30,879) |
Net loss per share, basic and diluted (USD per share) | $ (1.59) | $ (1.60) | $ (1.23) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 38,657 | 31,001 | 25,084 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive income (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, 2016 | 19,916,000 | ||||||||||
Beginning 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 gains on available for sale securities | 0 | ||||||||||
Comprehensive loss | (30,879) | ||||||||||
Restricted stock awards, unvested (in shares) | 250,000 | ||||||||||
Restricted stock awards, unvested | 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 | $ 23,198 | ||||||
Common stock issued under ESPP (in shares) | 43,561 | ||||||||||
Common stock issued under ESPP | 201 | 201 | |||||||||
Ending balance (in shares) at Dec. 31, 2017 | 28,183,000 | ||||||||||
Ending balance at Dec. 31, 2017 | 84,680 | $ 3 | 196,688 | (31) | (111,980) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (49,690) | (49,690) | |||||||||
Change in unrealized gains on available for sale securities | 20 | 20 | |||||||||
Comprehensive loss | (49,670) | ||||||||||
Stock-based compensation | $ 6,277 | 6,277 | |||||||||
Exercise of common stock options (in shares) | 242,031 | 231,000 | |||||||||
Exercise of common stock options | $ 635 | 635 | |||||||||
Stock issued during period (in shares) | 188,000 | 5,326,000 | |||||||||
Stock issued during period | $ 1,758 | $ 1,758 | 47,422 | 47,422 | |||||||
Common stock issued under ESPP (in shares) | 46,850 | ||||||||||
Common stock issued under ESPP | 352 | 352 | |||||||||
Shares withheld related to net share settlement of equity awards (in shares) | (27,000) | ||||||||||
Shares withheld related to net share settlement of equity awards | $ (247) | (247) | |||||||||
Ending balance (in shares) at Dec. 31, 2018 | 33,948,254 | 33,948,000 | |||||||||
Ending balance at Dec. 31, 2018 | $ 91,207 | $ 3 | 252,885 | (11) | (161,670) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (61,389) | (61,389) | |||||||||
Change in unrealized gains on available for sale securities | 24 | 24 | |||||||||
Comprehensive loss | (61,365) | ||||||||||
Stock-based compensation | $ 7,357 | 7,357 | |||||||||
Exercise of common stock options (in shares) | 305,801 | 306,000 | |||||||||
Exercise of common stock options | $ 1,591 | 1,591 | |||||||||
Stock issued during period (in shares) | 4,847,000 | ||||||||||
Stock issued during period | $ 43,125 | $ 1 | $ 43,124 | ||||||||
Common stock issued under ESPP (in shares) | 65,078 | ||||||||||
Common stock issued under ESPP | 438 | 438 | |||||||||
Shares withheld related to net share settlement of equity awards (in shares) | (21,000) | ||||||||||
Shares withheld related to net share settlement of equity awards | (214) | (214) | |||||||||
RSU issuance of shares when vested (in shares) | 51,000 | ||||||||||
RSU Issuance of shares when vested | (279) | (279) | |||||||||
Shares issued for consulting services (in shares) | 8,000 | ||||||||||
Shares issued for consulting services | $ 61 | 61 | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | 39,203,533 | 39,204,000 | |||||||||
Ending balance at Dec. 31, 2019 | $ 81,921 | $ 4 | $ 304,963 | $ 13 | $ (223,059) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - Common Stock - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
At-the-Market Offering | |||
Payments of stock issuance costs | $ 145 | $ 1,038 | |
Public Offering | |||
Payments of stock issuance costs | $ 2,924 | $ 3,178 | $ 1,657 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net loss | $ (61,389) | $ (49,690) | $ (30,879) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation expense | 7,357 | 6,277 | 5,207 |
Shares issued for consulting services | 61 | 0 | 0 |
Depreciation and amortization expense | 2,539 | 805 | 475 |
Loss on disposal of property and equipment | 212 | 34 | 27 |
Amortization of (discount) premium on marketable securities | (513) | (179) | 162 |
Amortization of debt discount of long-term loan | 84 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (20) | (903) | 0 |
Inventories | (648) | (3,570) | 0 |
Prepaid expenses and other | (825) | (867) | 485 |
Other assets | 0 | (21) | (3) |
Accounts payable | 1,838 | 277 | 1,280 |
Accrued liabilities and accrued compensation | (5,038) | 2,802 | 1,368 |
Net cash used in operating activities | (56,342) | (45,035) | (21,878) |
Cash Flows from Investing Activities | |||
Purchases of investments | (125,020) | (25,100) | (70,110) |
Sales of investments | 2,999 | 800 | 4,897 |
Maturities of investments | 82,628 | 54,575 | 68,465 |
Purchases of property and equipment | (8,428) | (13,919) | (5,920) |
Proceeds from sale of property and equipment | 5 | 248 | 0 |
Net cash provided by (used in) investing activities | (47,816) | 16,604 | (2,668) |
Cash Flows from Financing Activities | |||
Exercise of stock options and purchase of ESPP shares | 2,029 | 987 | 512 |
Proceeds from loan payable, net of issuance costs | 19,181 | 0 | 0 |
Payment of restricted stock awards tax liability on net settlement | (493) | (247) | 0 |
Net proceeds from sales of common stock | 43,125 | 49,180 | 52,160 |
Net cash provided by financing activities | 63,842 | 49,920 | 52,672 |
Net change in cash and cash equivalents | (40,316) | 21,489 | 28,126 |
Cash and cash equivalents at beginning of year | 56,302 | 34,813 | 6,687 |
Cash and cash equivalents at end of year | 15,986 | 56,302 | 34,813 |
Supplemental disclosure of non-cash financing activities: | |||
Purchases of property and equipment included in accounts payable and accrued liabilities | $ 1,297 | $ 6,205 | $ 266 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
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. ("KindredBio Equine"). KindredBio Equine 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 KindredBio Equine is 1,000 . On February 1, 2019, we filed a Certificate of Incorporation with the State of Delaware for a wholly owned subsidiary, Centaur Biopharmaceutical Services, Inc. ("Centaur Biopharmaceutical Services"). Centaur Biopharmaceutical Services 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 Centaur Biopharmaceutical Services is 1,000 . We are a commercial-stage 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 had an accumulated deficit of $223.1 million as of December 31, 2019 . 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 commercialize approved products. We might require additional capital until such time as we can generate operating revenues in excess of operating expenses. To date, we have been funded primarily through sales of convertible preferred stock and sales of our common stock. From our initial public offering in December 2013 through December 2018, we raised approximately $226.4 million in net proceeds, after deducting underwriting discounts and commissions and offering expenses. In January 2019, we completed a public offering of 4,847,250 shares of common stock, which includes the exercise in full by the underwriters' option to purchase 632,250 additional shares of common stock, at a public offering price of $9.50 per share for total gross proceeds of approximately $46.0 million . Net proceeds, after deducting underwriting discounts and commissions and offering expenses were approximately $43.1 million . As of December 31, 2019 , we believe our cash, cash equivalents and investments in available-for-sale securities of approximately $73.5 million , along with the $43.0 million from the divestiture of Mirataz, are sufficient to fund our planned operations for approximately the next 36 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, 2019 | |
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 subsidiaries (the "Company"). All intercompany accounts and transactions have been eliminated in consolidation. 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. Estimates are based historical experiences or on forecasts, including information received from third parties and other assumptions that the Company believes are reasonable under the circumstances. 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. Borrowings On September 30, 2019, we entered into a Loan and Security Agreement (the “Loan Agreement”) with Solar Capital Ltd., as collateral agent and lender, and the other lenders named in the Loan Agreement (Solar Capital Ltd. and the other lenders collectively, the “Lenders”). The Lenders have agreed to make available to KindredBio an aggregate principal amount of up to $50.0 million under the Loan Agreement. We plan to use the loan proceeds to support the development and commercialization of our products and product candidates as well as for working capital and general corporate purposes. The Loan Agreement provides for a term loan commitment of $50.0 million in three tranches: (1) a $20.0 million term A loan that was funded on September 30, 2019; (2) a $15.0 million term B loan that is to be funded at our request, subject to certain conditions described in the Loan Agreement being satisfied, no later than December 31, 2020; and (3) a $15.0 million term C loan that is to be funded at our request, subject to certain conditions described in the Loan Agreement being satisfied, on or before June 30, 2021. Each term loan has a maturity date of September 30, 2024. Each term loan bears interest at a floating per annum rate equal to the one-month LIBOR rate (with a floor of 2.17% ) plus 6.75% . We are permitted to make interest-only payments on each term loan through October 31, 2021. The interest-only period can be extended by six months upon our satisfaction of the minimum liquidity requirements described in the Loan Agreement. See Note 6. Based on the borrowing rates currently available for loans with similar terms, we believe the fair value of long-term debt approximates its carrying value. Concentration of Credit Risk and of Significant Suppliers and Customers 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, 2019 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. We are also dependent on a combination of national and regional distributors for our product sales of Mirataz and Zimeta. See Note 3. 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 receivable, 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 4). Based on the borrowing rates currently available for loans with similar terms, we believe the fair value of long-term debt approximates its carrying value. 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 adopted ASC Topic 606 (“ASC 606”), "Revenue from Contracts with Customers" in the first quarter of our fiscal year that began on January 1, 2018. This new standard replaced the previous revenue recognition guidance in U.S. GAAP. No prior period adjustments were needed as our first commercial shipments began in July 2018. Our revenue consists of product revenue resulting from the sale of Mirataz and Zimeta. We account for a contract with a customer when there is a legally enforceable contract between us and our customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. Our customers could either be distributors who subsequently resell our products to third parties such as veterinarians, clinics or animal hospitals or the third parties themselves. We use contract manufacturers to produce Mirataz and Zimeta, and a third-party logistics vendor to process and fulfill orders. We concluded we are the principal in our sales because we control access to services rendered by both vendors and direct their activities. We have no significant obligations to distributors to generate pull-through sales. In accordance with ASC 606, we applied the following steps to recognize revenue for the sale of Mirataz and Zimeta that reflects the consideration to which we expect to be entitled to receive in exchange for the promised goods: 1. Identify the contract with a customer A contract with a customer exists when we enter into an enforceable contract with a customer. These contracts define each party's rights, payment terms and other contractual terms and conditions of the sale. We apply judgment in determining the customer’s ability and intention to pay, which is based on published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Our product in a given purchase order is delivered at the same time and we do not separate an individual order into separate performance obligations. We have concluded the sale of finished goods and related shipping and handling are accounted for as a single performance obligation as there are no other promises to deliver goods beyond what is specified in each accepted customer order. 3. Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods to the customer, typically a fixed consideration in our contractual agreements. 4. Allocate the transaction price to the performance obligations The transaction price is allocated entirely to the performance obligation to provide pharmaceutical products. The nature of the promises/obligations under our contracts is to transfer a distinct good. Accordingly, because a single performance obligation exists, no allocation of the transaction price is necessary. 5. Determine the satisfaction of performance obligation Revenue is recognized when control of the finished goods is transferred to the customer, net of applicable reserves for variable consideration. Control of the finished goods is transferred at a point in time, upon delivery to the customer. Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established. Components of variable consideration include product returns, allowances and discounts. These estimates take into consideration a range of possible outcomes for the expected value (probability-weighted estimate) or relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the respective underlying contracts. The amount of variable consideration included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized where the contract will not occur in a future period. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from our estimates, we will adjust these estimates, which would affect net product revenues and earnings in the period such variances become known. Product Returns Consistent with the industry practice, we generally offer customers a limited right of return of damaged or expired product that has been purchased directly from us. Our return policy generally allows customers to receive credit for expired products within 90 days after the product’s expiration date. We estimate the amount of our product revenues that may be returned by our customers and record these estimates as a reduction of product revenues in the period the related product revenues are recognized, as well as within accrued liabilities, in the consolidated balance sheets. We currently estimate product return liabilities using probability-weighted available industry data and data provided by the our distributors such as the inventories remaining in the distribution channel. To-date, we have no returns and believe that returns of our product in future periods will be minimal. We do not record a return asset associated with the returned damaged or expired goods due to such asset is deemed to be fully impaired at the time of product return. Sales Discounts and Allowances We compensate our distributors for sales order management, data and distribution and other services through sales discounts and allowances. However, such services are not distinct from our sale of products to distributors and, therefore, these discounts and allowances are recorded as a reduction of product revenues in the statements of operations, as well as a reduction to accounts receivable in the consolidated balance sheets. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. Cost of Product Revenues Cost of product revenues consists primarily of the cost of direct materials, direct labor and overhead costs associated with manufacturing, inbound shipping and other third-party logistics costs. Inventories We value inventory at the lower of cost or net realizable value. We determine the cost of inventory using the standard-cost method, which approximates actual cost based on a first-in, first-out method. We analyze our inventory levels quarterly and write down inventory subject to expire in excess of expected requirements, or that has a cost basis in excess of its expected net realizable value. These inventory related costs are recognized as cost of product revenues on the accompanying Consolidated Statements of Operations and Comprehensive Loss. Currently our inventory consists of finished goods only. 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 10) provides for the grant of stock options, restricted common stock, restricted stock units 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 historic volatility of Kindred Biosciences own stock prices, and 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. Non-employee grants of stock-based compensation, except those grants to non-employee, shareholder-approved Board Members, were previously valued under ASC 505-50 "Equity-Based Payments to Non-Employees". In Q2 2018, we adopted ASU 2018-07 "Compensation - Stock Compensation (Topic 718) - Improvements to Non-Employee Share-Based Payment Accounting" and non-employee grants are now valued in the same manner as employee grants. 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 14). Recently Issued Accounting Pronouncements In February 2016, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 took effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We adopted this new standard on January 1, 2019, using the alternative modified transition method, that means using a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. Upon adoption, on January 1, 2019, we recorded a $1,941,000 increase in operating lease right-of-use assets, a $69,000 decrease in other current assets, a $115,000 decrease in other liabilities and a $1,985,000 increase in operating lease obligations. There was no cumulative-effect adjustment needed on January 1, 2019. The new standard provides a number of optional practical expedients in transition. We elected the following "package of practical expedients" when assessing the transition impact as the lessee as of January 1, 2019: (1) not to reassess whether any expired or existing contracts, contain leases; (2) not to reassess the lease classification for any expired or existing leases; and (3) not to reassess initial direct costs for any existing leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet as we recognize lease expense for these leases on a straight-line basis over the lease term. The major impact for KindredBio was the balance sheet recognition of right-of-use ("ROU") assets and lease liabilities for operating leases as a lessee. We determine if an agreement contains a lease at inception. For agreements where we are the lessee, operating lease are included in operating lease right-of-use assets, current portion of operating lease liabilities and long-term portion operating lease liabilities on the condensed consolidated balance sheet as of December 31, 2019 . Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentive received. We use our own incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. Lease terms don't include options to extend or terminate when we are reasonably certain that the option will not be exercised. Lease expense is recognized on a straight-line basis over the lease term. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820)", which changes to disclosure requirements for fair value measurement. The amendments of this update modify the disclosure requirements on fair value measurements about Topic 820. It applies to all reporting entities within the scope of the affected accounting guidance. It will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We are currently evaluating the new guidance and have not determined the impact this standard may have on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes". The amendments of this update simplify the accounting for income taxes by removing several exceptions. One of the exceptions may affect our company is the following: exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (say, other comprehensive income). It applies to all reporting entities within the scope of the affected accounting guidance. It will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. 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 consolidated financial statements when the standards become effective. |
Revenue and Cost of Product Rev
Revenue and Cost of Product Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Cost of Product Revenues | Revenues and Cost of Product Revenues We adopted ASC 606 in the first quarter of our fiscal year that began on January 1, 2018. This new standard replaced the previous revenue recognition guidance in U.S. GAAP. No prior period adjustments were needed as our first commercial shipments began in July 2018. Our revenues consist of product revenue resulting from the sale of Mirataz for the management of weight loss in cats and Zimeta for the treatment of fever in horses. We account for a contract with a customer when there is a legally enforceable contract between us and our customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. Our revenues are measured based on the consideration specified in the contract with each customer, net of product returns, discounts and allowances. The following table presents revenues and cost of product revenues for the year ended December 31, 2019 , 2018 and 2017 (in thousands): Years Ended December 31, 2019 2018 2017 Gross product revenues Mirataz $ 4,151 $ 2,027 $ — Zimeta 131 — — Total gross product revenues 4,282 2,027 — Less allowance for product returns Mirataz (22 ) (61 ) — Zimeta (4 ) — — Total allowance for product returns (26 ) (61 ) — Net product revenues Mirataz 4,129 1,966 — Zimeta 127 — — Total net product revenues 4,256 1,966 — Cost of product revenues Mirataz (554 ) (324 ) — Zimeta (33 ) — — Total cost of product revenues (587 ) (324 ) — Gross Profit Mirataz 3,575 1,642 — Zimeta 94 — — Total gross profit $ 3,669 $ 1,642 $ — Concentrations of credit risk Our revenue was generated entirely from sales within the United States. Our product sales to three large distributors, namely Henry Schein (now Covetrus), MWI and Patterson each accounted for more than 10% of total revenues for the year ended December 31, 2019 . On a combined basis, in 2019 , these distributors accounted for approximately 85% of our product sales in the United States. Our product sales to four large distributors, namely MWI, Henry Schein (now Covetrus), Patterson and Midwest each accounted for more than 10% of total revenues for the year ended December 31, 2018 . On a combined basis, in 2018, these distributors accounted for approximately 91% of our product sales in the United States. Product returns Our return policy generally allows customers to receive credit for expired products within 90 days after the product’s expiration date. We currently estimate product return liabilities of 2% for Mirataz and 3% for Zimeta of gross revenue using probability-weighted available industry data and data provided by our distributors such as the inventories remaining in the distribution channel. Adjustments will be made in the future if actual results vary from our estimates. Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at their carrying values, net of any allowances for doubtful accounts. Accounts receivable consist primarily of amounts due from distributors, for which collection is probable based on the customer's intent and ability to pay. Receivables are evaluated for collection probability on a regular basis and an allowance for doubtful accounts is recorded, if necessary. We have no allowance for doubtful accounts as of December 31, 2019 and 2018 , as our analysis did not uncover any collection risks. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 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, 2019 Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 1,592 $ 1,592 $ — $ — Commercial paper 13,580 — 13,580 — Short-term investments: U.S. treasury bills 8,524 8,524 — — Commercial paper 25,573 — 25,573 — U.S. government agency notes 11,461 — 11,461 — Corporate notes 10,165 — 10,165 — Long-term investments: US Government agency notes 801 — 801 — Corporate notes 1,036 — 1,036 — Total $ 72,732 $ 10,116 $ 62,616 $ — The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2018 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, 2018 Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 1,276 $ 1,276 $ — $ — U.S. treasury bills 500 500 — — Commercial paper 45,332 — 45,332 — U.S. treasury bonds and notes 7,949 — 7,949 — Short-term investments: — Commercial paper 5,353 — 5,353 — Corporate notes 12,277 — 12,277 — Total $ 72,687 $ 1,776 $ 70,911 $ — 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, 2019 and 2018 . At December 31, 2019 and 2018 , we did not have any financial liabilities which were measured at fair value on a recurring basis. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (in thousands): December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: U.S. treasury bills $ 8,517 $ 7 $ — $ 8,524 Commercial paper 25,576 3 (6 ) 25,573 U.S. government agency notes 11,460 2 (1 ) 11,461 Corporate notes 10,157 8 — 10,165 55,710 20 (7 ) 55,723 Long-term investments: U.S. government agency notes 801 — — 801 Corporate notes 1,036 — — 1,036 1,837 — — 1,837 Total available-for-sale investments $ 57,547 $ 20 $ (7 ) $ 57,560 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: Commercial paper $ 5,353 $ — $ — $ 5,353 Corporate notes 12,288 — (11 ) 12,277 Total available-for-sale investments $ 17,641 $ — $ (11 ) $ 17,630 The following table summarizes the contractual maturities of our available-for-sale securities at December 31, 2019 (in thousands): Amortized Cost Fair Value Mature in less than one year $ 55,710 $ 55,723 Mature in one year or more $ 1,837 $ 1,837 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings On September 30, 2019, we entered into the Loan Agreement with the Lenders. The Lenders have agreed to make available to KindredBio an aggregate principal amount of up to $50.0 million under the Loan Agreement. We plan to use the loan proceeds to support the development and commercialization of our products and product candidates as well as for working capital and general corporate purposes.The Loan Agreement provides for a term loan commitment of $50.0 million in three tranches: (1) a $20.0 million term A loan that was funded on September 30, 2019; (2) a $15.0 million term B loan that is to be funded at our request, subject to certain conditions described in the Loan Agreement being satisfied, no later than December 31, 2020; and (3) a $15.0 million term C loan that is to be funded at our request, subject to certain conditions described in the Loan Agreement being satisfied, on or before June 30, 2021. Each term loan has a maturity date of September 30, 2024. Each term loan bears interest at a floating per annum rate equal to the one-month LIBOR rate (with a floor of 2.17% ) plus 6.75% . We are permitted to make interest-only payments on each term loan through October 31, 2021. The interest-only period can be extended by six months upon our satisfaction of the minimum liquidity requirements described in the Loan Agreement. We have agreed to maintain cash at all times equal to at least $5.0 million prior to the funding of the term B loan, at least $10.0 million after the funding of the term B loan and at least $15.0 million after the funding of the term C loan, plus in each case the amount of our accounts payable that have not been paid within 90 days from the invoice date subject to certain exceptions. Equal monthly payments of principal will be due and payable commencing at the end of the interest-only period of the term loans. In connection with the term loan, we incurred closing costs of $819,000 , which are shown net of the proceeds and will be amortized over the term of the loan using the effective interest method. We are obligated to pay a facility fee in the amount of 0.50% of each term loan that is funded and a non-utilization fee in the amount of 0.25% of each term B loan and term C loan to the extent that such loans are not funded. We are obligated to pay a final fee equal to 3.60% of the aggregate amount of the term loans funded (or 4.35% of such funded loans if the interest-only period is extended as described above), such final fee to be due and payable upon the earliest to occur of (1) the maturity date, (2) the acceleration of the term loans, and (3) the prepayment of the term loans. This final fee is being accrued over the term of the loan agreement. We have the option to prepay all, but not less than all, of the outstanding principal balance of the term loans under the Loan Agreement. If we prepay the term loans prior to the maturity date, we must pay the Lenders a prepayment premium fee based on a percentage of the outstanding principal balance, equal to 3.0% if the payment occurs on or before September 30, 2020, 2.0% if the prepayment occurs after September 30, 2020 but on or before September 30, 2021, or 1.0% if the prepayment occurs after September 30, 2021. Our obligations under the Loan Agreement are secured by a first-priority security interest in substantially all of KindredBio’s assets, including our intellectual property, and a lien on our real property. The Loan Agreement contains customary representations, warranties and covenants and also includes customary events of default, including payment defaults, breaches of covenants, and a default upon the occurrence of a material adverse change affecting us. Upon the occurrence of an event of default, a default interest rate of an additional 5.00% per annum may be applied to the outstanding loan balance, and the Lenders may declare all outstanding obligations immediately due and payable and exercise all their rights and remedies as set forth in the Loan Agreement and under applicable law. We were in compliance with all covenants as of December 31, 2019 . As of December 31, 2019 , assuming the principal payments start on November 1, 2021, our future debt payment obligations towards the principal and final fee, excluding interest payments and exit fee, for the respective fiscal years are as follows (in thousands): 2020 $ — 2021 1,111 2022 6,667 2023 6,667 2024 6,275 Total principal and final fee payments 20,720 Less: unamortized debt issuance costs (771 ) Less: unaccreted value of final fee (684 ) Loan payable, long term $ 19,265 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 Computer and lab equipment $ 10,188 $ 4,923 Furniture and fixtures 143 65 Leasehold improvements 958 930 Building 9,520 — Building improvements 1,238 — Land 85 — Land improvement 166 — Construction-in-process 10,932 21,999 Total 33,230 27,917 Less accumulated depreciation and amortization (3,453 ) (1,574) Property and equipment, net $ 29,777 $ 26,343 We constructed a Good Manufacturing Practice, or GMP, biologics manufacturing plant in Burlingame, CA which is fully commissioned. We have successfully completed cGMP manufacturing of our feline erythropoietin drug substance. In addition, construction to support initial production lines on our biologics manufacturing facility in Elwood, Kansas is completed. The fill finish line has been installed and fully commissioned. cGMP fill finish of our feline erythropoietin drug substance has been completed at our Elwood, Kansas facility and is currently on test for quality release. The facility includes approximately 180,000 square feet with clean rooms, utility, equipment and related quality documentation suitable for small molecule and biologics manufacturing. Construction-in-process is comprised of equipment that have not been put into service for their intended use as of December 31, 2019 . As disclosed in Note 2, the Kansas 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. Depreciation and amortization expense was $1,880,000 , $805,000 and $475,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following as of December 31, 2019 and 2018 : (In thousands) As of December 31, 2019 2018 Accrued consulting $ 589 $ 627 Accrued research and development costs 1,336 2,509 Accrued other 2,206 5,012 Deferred rent — 115 4,131 8,263 Less current portion (4,131 ) (8,169 ) Long-term liability (deferred rent) $ — $ 94 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 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 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 . In 2018, we issued 231,407 shares of common stock upon exercise of stock options for total proceeds of $635,000 . In addition, we issued 46,850 shares of common stock to employees in connection with our employee stock purchase program for total proceeds of $352,000 . In 2019 , we issued 305,801 shares of common stock upon exercise of stock options for total proceeds of $1,591,000 . In addition, we issued 65,078 shares of common stock to employees in connection with our employee stock purchase program for total proceeds of $438,000 . As of December 31, 2019 , we had 39,203,533 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. During the year ended December 31, 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 due to the expiration of our January 2015 shelf registration. In May 2018, we entered into an At Market Issuance Sales Agreement, or the Sales Agreement, with B. Riley FBR, Inc., and Oppenheimer & Co. Inc. acting as our distribution agents, relating to the sale of up to $50,000,000 of our common stock from time to time. We terminated the Sales Agreement in June 2018 after having sold 188,100 shares, representing gross proceeds of approximately $1,903,000 . Net proceeds, after deducting commission, fees and offering costs, were approximately $1,758,000 . On June 20, 2018, we entered into an underwriting agreement with Cantor Fitzgerald & Co., as representative of the underwriters, and on June 22, 2018 we completed a public offering of 5,326,314 shares of common stock, which included the underwriters' option to purchase additional shares, at a public offering price of $9.50 per share for total gross proceeds of approximately $50,600,000 . Net proceeds, after deducting underwriting discounts and commissions and offering expenses were approximately $47,422,000 . On January 18, 2019, we entered into an underwriting agreement with Barclays Capital Inc. and Stifel, Nicolaus & Company, Incorporated, as representatives of the underwriters, and on January 23, 2019, we completed a public offering of 4,847,250 shares of our common stock, which included the exercise in full by the underwriters of their option to purchase 632,250 additional shares of the Company’s common stock, at a public offering price of $9.50 per share for total gross proceeds of approximately $46,049,000 . Net proceeds, after deducting underwriting discounts and commissions and offering expenses were approximately $43,125,000 . |
Stock-Based Awards and Benefit
Stock-Based Awards and Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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 (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 reserved 4,000,000 shares of our common stock for issuance under the 2012 Plan. The 2012 Plan terminated in May 2016 and 2,740,842 stock option shares which had been granted prior to the plan’s expiration remaining outstanding as of December 31, 2019 . 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 was the successor to our 2012 Plan and all awards made under the 2012 Plan remained subject to the terms of that plan. Options granted under the 2016 Plan were either incentive stock options or nonstatutory stock options. The 2016 Plan also provided 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 was not less than 100% of the closing price of our common stock on the date of the grant. If, at any time we granted an option, and the optionee directly or by attribution owned stock possessing more than 10% of the total combined voting power of all classes of our stock, the option price was at least 110% of the fair value and was not exercisable more than five years after the date of grant. Options generally vested over a period of one or four years from the date of grant. Options granted under the 2016 Plan expired no later than 10 years from the date of grant. As of December 31, 2019 , there were 2,134,701 option shares outstanding, 125,000 restricted stock awards issued but unvested, and 236,250 restricted stock units granted but unvested, and no shares are available for future grants under the 2016 Plan since it was retired in June 2018. In June 2018, we adopted the 2018 Equity Incentive Plan (the “2018 Plan”), and reserved 3,000,000 shares of our common stock for issuance under the 2018 Plan. The 2018 Plan is the successor to our 2016 Plan. All awards made under the 2016 and 2012 Plans shall remain subject to the terms of these plans. Options granted under the 2018 Plan may be either incentive stock options or nonstatutory stock options. The 2018 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 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 2018 Plan expire no later than 10 years from the date of grant. As of December 31, 2019 , there were 1,477,827 option shares outstanding, 264,075 restricted stock units granted but unvested, and 1,258,098 shares available for future grants under the 2018 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. At the Annual Meeting of Stockholders of Kindred Biosciences, Inc. held on June 22, 2018, our stockholders approved an amendment to increase the number of shares that may be issued under the ESPP from 200,000 shares to 500,000 shares. 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 1st. 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 $2.62 during the year ended December 31, 2019 . As of December 31, 2019 , there were 249,470 shares of common stock issued under the Purchase Plan and 250,530 shares available for future issuance under the Purchase Plan. At December 31, 2019 and 2018, we had an outstanding liability of $40,000 and $47,000 , 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, 2019 , shares of common stock reserved for future issuance inclusive of outstanding option shares are as follows: 2018 Equity Incentive Plan 1,258,098 2014 Employee Stock Purchase Plan 250,530 1,508,628 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 Contractual Term (In Years) Aggregate Intrinsic Value Balance, December 31, 2016 2,927,650 3,568,329 $6.36 7.5 $4,353,000 2012 Plan true up retired shares (a) (26,977 ) — — 2016 Plan issued RSA shares (b) (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 2012 Plan true up retired shares (c) (56,953 ) — — 2016 Plan RSA forfeited on 1/23/18 (d) 26,980 — — 2016 Plan RSU issued on 1/22/18 (e) (315,000 ) — — 2016 Plan true up retired shares (f) (56,636 ) — — 2018 Incentive Plan (g) 3,000,000 — — Granted (1,607,193 ) 1,607,193 $9.78 Exercised — (242,031 ) $3.19 Expired 36,791 (36,791 ) $13.05 Forfeited - stock options 80,068 (80,068 ) $7.40 Balance, December 31, 2018 2,596,507 5,821,928 $7.54 7.1 $24,780,000 2012 Plan true up retired shares (h) (94,700 ) — — 2016 Plan RSA forfeited on 1/23/19 (i) 21,562 — — 2016 Plan RSU forfeited on 1/22/19 (j) 27,538 — — 2016 Plan true up retired shares (k) (191,491 ) — — 2018 Plan RSU Issued in Q1/2019 (l) (264,075 ) — — Granted (1,107,500 ) 1,107,500 $9.77 Exercised — (305,801 ) $5.21 Expired 104,710 (104,710 ) $13.26 Forfeited - stock options 165,547 (165,547 ) $7.97 Balance, December 31, 2019 1,258,098 6,353,370 $7.94 6.6 $12,516,000 Options vested and expected to vest, December 31, 2019 6,353,370 $7.94 6.6 $12,516,000 Options exercisable, December 31, 2019 4,504,720 $7.33 5.8 $11,878,000 (a) The 2012 Equity Incentive Plan terminated in May 2016. All shares available for grant under this Plan expired. True up all expired shares available for grant under the 2012 Equity Incentive Plan. (b) Issued 250,000 RSA shares on January 23, 2017 under the 2016 Equity Incentive Plan. (c) 2012 Equity Incentive Plan retired in May 2016. True up retirement in 2018. (d) Vested 62,500 RSA shares on January 23, 2018. 26,980 shares were forfeited to cover tax liability. (e) Issued 315,000 RSU units on January 22, 2018 under the 2016 Equity Incentive Plan. (f) The 2016 Equity Incentive Plan terminated in June 2018. All shares available for grant under this Plan expired. (g) The 2018 Equity Incentive Plan was adopted and approved by stockholders in June 2018. (h) 2012 Equity Incentive Plan retired in May 2016. True up retirement in 2019. (i) Vested 62,500 RSA shares on January 23, 2019. 21,562 shares were forfeited to cover tax liability. (j) Vested 78,750 RSU units on January 22, 2019, 27,538 units were forfeited to cover tax liability. (k) The 2016 Equity Incentive Plan terminated in June 2018. True up retirement in 2019. (l) Issued 264,075 RSU units in Q1 2019 under the 2018 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, 2019 , 2018 and 2017. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2019 , 2018 and 2017 was $1,046,000 , $2,261,000 and $911,000 , respectively. We received proceeds of $1,591,000 , $635,000 and $311,000 from the exercise of common stock options during the years ended December 31, 2019 , 2018 and 2017, respectively. The weighted-average grant date fair value of options granted during the years ended December 31, 2019 , 2018 and 2017 was $5.34 , $5.58 and $4.21 per share, respectively. We had an aggregate of approximately $8,616,000 of unrecognized stock-based compensation expense for unvested stock options and employee stock purchases as of December 31, 2019 , which is expected to be recognized over a weighted average period of 2.5 years . 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 . 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 units is $2,756,000 . In Q1 2019, we granted 300,775 shares of restricted stock units to most of our current 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 units is $3,156,000 . As of December 31, 2019 , we have an aggregate of approximately $3,995,000 unrecognized stock-based compensation expense for unvested restricted stock awards and units which is expected to be recognized over a weighted-average period of 2.5 years. Restricted stock activity for the year ended December 31, 2019 , was as follows: Restricted Stock Award / Restricted Stock Units Shares Weighted Average Grant Date Fair Value Unvested balance at December 31, 2018 502,500 $7.87 Granted 300,775 10.49 Vested (141,250 ) 7.71 Forfeited (36,700 ) 10.61 Unvested balance at December 31, 2019 625,325 $9.01 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 used to estimate the expected stock price volatility based on the historical volatility of publicly traded peer companies. During the quarter ended March 31, 2018, an analysis was completed to compare our own stock volatility to the volatility calculated using peer analysis. The conclusion was that Kindred Biosciences has enough history to provide a reliable expected volatility. As a result, we use the volatility of our own stock. 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, 2019 2018 2017 Research and development $1,848 $1,746 $1,650 General and administrative 5,509 4,531 3,557 $7,357 $6,277 $5,207 Total stock-based compensation expense includes stock options, restricted stock awards, restricted stock units, and expense from the Purchase Plan for the years ended December 31, 2019 , 2018 , and 2017 . Valuation assumptions The relevant data used to determine the fair value of stock-based awards is as follows: Years Ended December 31, 2019 2018 2017 Stock options: Weighted average risk-free interest rate 2.49% 2.62% 1.98% Weighted average expected term (in years) 5.9 5.9 6.0 Weighted average expected volatility 56.9% 59.2% 70.4% Weighted average expected dividend yield — — — Fair value at grant date $5.34 $5.58 $4.21 Employee stock purchase plan: Weighted average risk-free interest rate 2.17% 2.02% 1.04% Weighted average expected term (in years) 0.5 0.5 0.5 Weighted average expected volatility 47.5% 43.7% 56.7% Weighted average expected dividend yield — — — Fair value at grant date $2.62 $2.72 $1.73 Restricted stock awards: Fair value at grant date $0.00 $0.00 $6.40 Restricted stock units: Fair value at grant date $10.49 $8.75 $0.00 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have non-cancelable operating leases for laboratory space in Burlingame, California with several amendments to expand the facility. We have a non-cancellable operating lease for the entire existing laboratory space of 11,476 square feet that expires in May 2025. In August 2015, we entered into a new non-cancelable operating lease for 3,126 square feet of office space in San Diego, California and in June 2019, renewed the lease through February 2025. Our headquarters office lease for 8,090 square feet of office space in Burlingame, California expires November 30, 2020. In October 2018, we entered into a short-term sublease agreement for an additional 5,613 square feet of laboratory space next to our current laboratory facility and terminated the sublease in June 2019. In April 2019, we signed a short-term lease in Burlingame ("April 2019 lease"), consisting of 1,979 square feet of space through April 2020. In May 2019, we signed another lease in Burlingame ("May 2019 lease"), consisting of 1,346 square feet of space through April 2022. In addition, we have four equipment leases expiring through 2023. Operating lease expense was $1,204,000 , $814,000 and $679,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following tables below do not include the April 2019 lease since it is not more than 12 months. The following tables below also do not include the February 2020 lease ("February 2020 lease") of the additional 2,260 square feet of laboratory space commencing on May 1, 2020, mentioned in Note 17, since it has not started yet. Supplemental cash flow information for the year ended December 31, 2019 , related to operating leases was as follows (in thousands): Amortization of operating lease $ 659 Cash paid within operating cash flows $ 846 Right-of-use assets obtained in exchange for new or modified lease liabilities $ 1,807 Supplemental balance sheet information, as of December 31, 2019 , related to operating leases was as follows (in thousands, except lease term and discount rate): Reported as: Operating lease right-of-use assets $ 3,001 Current portion of operating lease liabilities $ 644 Long-term operating lease liabilities 2,614 Total lease liabilities $ 3,258 Weighted average remaining lease term (years) 4.9 years Weighted average discount rate 5.5% As of December 31, 2019 , we are obligated to make minimum lease payments under non-cancelable operating leases, as follows (in thousands): Year ending December 31, Lease Payments 2020 $ 807 2021 648 2022 675 2023 701 2024 719 Thereafter 205 Total lease payments 3,755 Less: imputed interest (497 ) Total lease liabilities $ 3,258 ASC 840 Disclosures The Company elected the alternative modified transition method and is required to present previously disclosed information under the prior accounting standards for leases. As of December 31, 2018 , we are obligated to make minimum lease payments under all of our operating leases as follows (in thousands): Year ending December 31, Lease Payments 2019 $ 835 2020 726 2021 459 2022 194 Thereafter — Total $ 2,214 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments In June 2018, we entered into a Strategic Supply Agreement (the “Agreement”), with Pall Corporation (“Pall”) for purchase of equipment and consumables to be used in support of our manufacturing requirements, including, but not limited to, the Plant. Pursuant to the Agreement, we will purchase certain pharmaceutical manufacturing equipment and related services in the aggregate amount of $3.8 million with a seven-year consumable purchase obligation in the aggregate amount of approximately $16.5 million . The Agreement is subject to customary undertakings, covenants, obligations, rights and conditions. As of December 31, 2019 , we have incurred the full $3.8 million in equipment purchase costs and are obligated to make consumable purchases as follows (in thousands): Year ending December 31, Consumable commitments 2020 $ 1,650 2021 3,300 2022 3,625 2023 3,625 2024 4,285 Total $ 16,485 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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) Years Ended December 31, 2019 2018 2017 Income tax expense (benefit) at statutory federal rate $ (12,893 ) 21.0 % $ (10,436 ) 21.0 % $ (10,499 ) 34.0 % State income tax, net of federal benefit (3,392 ) 5.5 (3,748 ) 7.5 (1,880 ) 6.1 Permanent items 198 (0.3 ) 13 — 63 (0.2 ) Research and development credits (1,913 ) 3.1 (1,909 ) 3.8 (1,172 ) 3.8 Stock-based compensation 637 (1.0 ) (237 ) 0.5 (122 ) 0.4 Reserve for uncertain tax positions 861 (1.4 ) 864 (1.7 ) 469 (1.5 ) Change in valuation allowance 15,382 (25.1 ) 14,949 (30.1 ) (128 ) 0.4 Tax Cuts and Jobs Act — — — — 13,092 (42.4 ) Other 1,120 (1.8 ) 504 (1.0 ) 177 (0.6 ) 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, 2019 and 2018 : December 31, (In thousands) 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 53,247 $ 39,579 Research and development credits 4,682 3,589 Accrued expenses 1,020 893 Amortization and depreciation (222 ) (393 ) Stock-based compensation 6,412 6,173 ROU Lease - Liabilities 872 — ROU Lease - Assets (804 ) — Other 20 10 65,227 49,851 Valuation Allowance (65,227 ) (49,851 ) Net current deferred tax assets $ — $ — At December 31, 2019 , we had net deferred tax assets of $65,227,000 . 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, 2019 . At December 31, 2019 , we had federal and California net operating loss carryovers of $194,548,000 and $113,110,000 , respectively. The federal and California net loss carryforwards will begin to expire in 2032. The Federal NOL generated after 2017 of $101,436,000 will carryforward indefinitely and be available to offset up to 80% of future taxable income each year. At December 31, 2019 , we had federal and state research and development tax credit carryovers of approximately $4,815,000 and $4,625,000 , 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, 2019 2018 2017 Balance at beginning of year $ 3,196 $ 2,252 $ 1,698 Additions based on tax positions related to the current year 942 944 554 Additions for tax positions of prior years 37 — — Balance at end of year $ 4,175 $ 3,196 $ 2,252 The amount of unrecognized tax benefits that would impact the effective tax rate if recognized and realized is $3,787,000 . 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, 2019 , 2018 and 2017, and have not recognized interest and/or penalties in our consolidated statements of operations and comprehensive loss for the years ended December 31, 2019 , 2018 and 2017. 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 2014 to present. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017: (In thousands, except per share amounts) Years Ended December 31, 2019 2018 2017 Basic and diluted net loss per share attributable to common stockholders: Numerator: Net loss attributable to common stockholders $ (61,389 ) $ (49,690 ) $ (30,879 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 38,657 31,001 25,084 Net loss per common share attributable to common stockholders, basic and diluted $ (1.59 ) $ (1.60 ) $ (1.23 ) There was no difference between our net loss and the net loss attributable to common stockholders for all periods presented. Stock options to purchase 6,353,370 shares, 5,821,928 shares and 4,573,625 shares of common stock as of December 31, 2019 , 2018 and 2017 , respectively, were excluded from the computation of diluted net loss per share attributable to common stockholders because their effect was anti-dilutive. 125,000 shares, 187,500 shares, 250,000 shares of unvested restricted stock award as of December 31, 2019 , 2018 and 2017 , respectively, were also excluded from the computation of diluted net loss per share calculations because their effect was anti-dilutive. 500,325 and 315,000 units of granted but unvested restricted stock units as of December 31, 2019 and 2018 , respectively, 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, 2019 | |
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 $452,000 , $292,000 and $149,000 to the plan during the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 . (In thousands, except per share amounts) 2019 2018 Quarter ended Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Net product revenues $ 1,401 $ 1,104 $ 1,236 $ 515 $ 1,326 $ 640 $ — $ — Operating costs and expenses Cost of product revenues 187 139 169 92 214 110 — — Research and development 7,134 7,290 6,734 7,152 7,756 7,477 5,820 5,346 General and administrative 9,578 9,382 9,065 9,901 9,219 6,608 5,770 4,902 Total operating cost and expenses 16,899 16,811 15,968 17,145 17,189 14,195 11,590 10,248 Loss from operations (15,498 ) (15,707 ) (14,732 ) (16,630 ) (15,863 ) (13,555 ) (11,590 ) (10,248 ) Interest and other income, net (236 ) 414 425 575 422 518 349 277 Net loss $ (15,734 ) $ (15,293 ) $ (14,307 ) $ (16,055 ) $ (15,441 ) $ (13,037 ) $ (11,241 ) $ (9,971 ) Net loss per share, basic and diluted (1) $ (0.40 ) $ (0.39 ) $ (0.37 ) $ (0.42 ) $ (0.46 ) $ (0.39 ) $ (0.39 ) $ (0.36 ) Weighted average shares used in computing net loss per share, basic and diluted 38,999 38,940 38,887 37,786 33,708 33,601 28,619 27,986 (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, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In February 2020, we further amended non-cancelable operating leases for laboratory space in Burlingame, California for an expansion of an additional 2,260 square feet of laboratory space commencing on May 1, 2020 and expires on May 31, 2025. The total non-cancellable operating lease for the entire existing laboratory space is 13,736 square feet, expiring May 31, 2025. On March 16, 2020, we announced an agreement to sell Mirataz to Dechra for a cash purchase price of $43 million , of which $38.7 million will be paid on the closing date and the balance $4.3 million will be paid out of escrow beginning in 12 months assuming no escrow claims, alongside an ongoing royalty on global net sales. The acquisition comprises worldwide marketing rights, intellectual property rights, marketing authorizations and associated regulatory documentation, third party supply contracts related to raw material and manufacture of the finished product, and certain product inventory. Completion is expected before the end of June 2020, following satisfactory completion of certain deliverables. In addition, we announced a strategic realignment of our business model whereby Kindredbio becomes a biologics-only company focused on accelerating our deep pipeline of late-stage biologics candidates in canine and feline markets, while discontinuing small molecule development for these species. We plan to rely more on a partnership-based model for commercialization strategy whereby pipeline assets are partnered with larger commercial partners that can maximize product opportunity in return for upfront payment, contingent milestones, and royalties on future sales. Accordingly, the companion animal commercial infrastructure will be substantially reduced. In connection with this strategic shift, Kindredbio is eliminating approximately 53 positions, representing about one-third of our current workforce. The eliminated positions primarily relate to the companion animal sales force and research and development for small molecule programs. Restructuring expenses and retirement costs related to severance and health care benefits are expected to be approximately $1.7 million , exclusive of stock compensation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Liquidity | Liquidity We have incurred losses and negative cash flows from operations and had an accumulated deficit of $223.1 million as of December 31, 2019 . 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 commercialize approved products. We might require additional capital until such time as we can generate operating revenues in excess of operating expenses. To date, we have been funded primarily through sales of convertible preferred stock and sales of our common stock. From our initial public offering in December 2013 through December 2018, we raised approximately $226.4 million in net proceeds, after deducting underwriting discounts and commissions and offering expenses. In January 2019, we completed a public offering of 4,847,250 shares of common stock, which includes the exercise in full by the underwriters' option to purchase 632,250 additional shares of common stock, at a public offering price of $9.50 per share for total gross proceeds of approximately $46.0 million . Net proceeds, after deducting underwriting discounts and commissions and offering expenses were approximately $43.1 million . As of December 31, 2019 , we believe our cash, cash equivalents and investments in available-for-sale securities of approximately $73.5 million , along with the $43.0 million from the divestiture of Mirataz, are sufficient to fund our planned operations for approximately the next 36 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 subsidiaries (the "Company"). All intercompany accounts and transactions have been eliminated in consolidation. |
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. Estimates are based historical experiences or on forecasts, including information received from third parties and other assumptions that the Company believes are reasonable under the circumstances. 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 and Customers | Concentration of Credit Risk and of Significant Suppliers and Customers 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, 2019 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. We are also dependent on a combination of national and regional distributors for our product sales of Mirataz and Zimeta. See Note 3. |
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 receivable, 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 4). Based on the borrowing rates currently available for loans with similar terms, we believe the fair value of long-term debt approximates its carrying value. 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 adopted ASC Topic 606 (“ASC 606”), "Revenue from Contracts with Customers" in the first quarter of our fiscal year that began on January 1, 2018. This new standard replaced the previous revenue recognition guidance in U.S. GAAP. No prior period adjustments were needed as our first commercial shipments began in July 2018. Our revenue consists of product revenue resulting from the sale of Mirataz and Zimeta. We account for a contract with a customer when there is a legally enforceable contract between us and our customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. Our customers could either be distributors who subsequently resell our products to third parties such as veterinarians, clinics or animal hospitals or the third parties themselves. We use contract manufacturers to produce Mirataz and Zimeta, and a third-party logistics vendor to process and fulfill orders. We concluded we are the principal in our sales because we control access to services rendered by both vendors and direct their activities. We have no significant obligations to distributors to generate pull-through sales. In accordance with ASC 606, we applied the following steps to recognize revenue for the sale of Mirataz and Zimeta that reflects the consideration to which we expect to be entitled to receive in exchange for the promised goods: 1. Identify the contract with a customer A contract with a customer exists when we enter into an enforceable contract with a customer. These contracts define each party's rights, payment terms and other contractual terms and conditions of the sale. We apply judgment in determining the customer’s ability and intention to pay, which is based on published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Our product in a given purchase order is delivered at the same time and we do not separate an individual order into separate performance obligations. We have concluded the sale of finished goods and related shipping and handling are accounted for as a single performance obligation as there are no other promises to deliver goods beyond what is specified in each accepted customer order. 3. Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods to the customer, typically a fixed consideration in our contractual agreements. 4. Allocate the transaction price to the performance obligations The transaction price is allocated entirely to the performance obligation to provide pharmaceutical products. The nature of the promises/obligations under our contracts is to transfer a distinct good. Accordingly, because a single performance obligation exists, no allocation of the transaction price is necessary. 5. Determine the satisfaction of performance obligation Revenue is recognized when control of the finished goods is transferred to the customer, net of applicable reserves for variable consideration. Control of the finished goods is transferred at a point in time, upon delivery to the customer. Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established. Components of variable consideration include product returns, allowances and discounts. These estimates take into consideration a range of possible outcomes for the expected value (probability-weighted estimate) or relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the respective underlying contracts. The amount of variable consideration included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized where the contract will not occur in a future period. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from our estimates, we will adjust these estimates, which would affect net product revenues and earnings in the period such variances become known. Product Returns Consistent with the industry practice, we generally offer customers a limited right of return of damaged or expired product that has been purchased directly from us. Our return policy generally allows customers to receive credit for expired products within 90 days after the product’s expiration date. We estimate the amount of our product revenues that may be returned by our customers and record these estimates as a reduction of product revenues in the period the related product revenues are recognized, as well as within accrued liabilities, in the consolidated balance sheets. We currently estimate product return liabilities using probability-weighted available industry data and data provided by the our distributors such as the inventories remaining in the distribution channel. To-date, we have no returns and believe that returns of our product in future periods will be minimal. We do not record a return asset associated with the returned damaged or expired goods due to such asset is deemed to be fully impaired at the time of product return. Sales Discounts and Allowances We compensate our distributors for sales order management, data and distribution and other services through sales discounts and allowances. However, such services are not distinct from our sale of products to distributors and, therefore, these discounts and allowances are recorded as a reduction of product revenues in the statements of operations, as well as a reduction to accounts receivable in the consolidated balance sheets. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. Cost of Product Revenues Cost of product revenues consists primarily of the cost of direct materials, direct labor and overhead costs associated with manufacturing, inbound shipping and other third-party logistics costs. Inventories We value inventory at the lower of cost or net realizable value. We determine the cost of inventory using the standard-cost method, which approximates actual cost based on a first-in, first-out method. We analyze our inventory levels quarterly and write down inventory subject to expire in excess of expected requirements, or that has a cost basis in excess of its expected net realizable value. These inventory related costs are recognized as cost of product revenues on the accompanying Consolidated Statements of Operations and Comprehensive Loss. Currently our inventory consists of finished goods only. |
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 10) provides for the grant of stock options, restricted common stock, restricted stock units 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 historic volatility of Kindred Biosciences own stock prices, and 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. Non-employee grants of stock-based compensation, except those grants to non-employee, shareholder-approved Board Members, were previously valued under ASC 505-50 "Equity-Based Payments to Non-Employees". In Q2 2018, we adopted ASU 2018-07 "Compensation - Stock Compensation (Topic 718) - Improvements to Non-Employee Share-Based Payment Accounting" and non-employee grants are now valued in the same manner as employee grants. |
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 14). |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 took effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We adopted this new standard on January 1, 2019, using the alternative modified transition method, that means using a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. Upon adoption, on January 1, 2019, we recorded a $1,941,000 increase in operating lease right-of-use assets, a $69,000 decrease in other current assets, a $115,000 decrease in other liabilities and a $1,985,000 increase in operating lease obligations. There was no cumulative-effect adjustment needed on January 1, 2019. The new standard provides a number of optional practical expedients in transition. We elected the following "package of practical expedients" when assessing the transition impact as the lessee as of January 1, 2019: (1) not to reassess whether any expired or existing contracts, contain leases; (2) not to reassess the lease classification for any expired or existing leases; and (3) not to reassess initial direct costs for any existing leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet as we recognize lease expense for these leases on a straight-line basis over the lease term. The major impact for KindredBio was the balance sheet recognition of right-of-use ("ROU") assets and lease liabilities for operating leases as a lessee. We determine if an agreement contains a lease at inception. For agreements where we are the lessee, operating lease are included in operating lease right-of-use assets, current portion of operating lease liabilities and long-term portion operating lease liabilities on the condensed consolidated balance sheet as of December 31, 2019 . Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentive received. We use our own incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. Lease terms don't include options to extend or terminate when we are reasonably certain that the option will not be exercised. Lease expense is recognized on a straight-line basis over the lease term. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820)", which changes to disclosure requirements for fair value measurement. The amendments of this update modify the disclosure requirements on fair value measurements about Topic 820. It applies to all reporting entities within the scope of the affected accounting guidance. It will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We are currently evaluating the new guidance and have not determined the impact this standard may have on our consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes". The amendments of this update simplify the accounting for income taxes by removing several exceptions. One of the exceptions may affect our company is the following: exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (say, other comprehensive income). It applies to all reporting entities within the scope of the affected accounting guidance. It will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. 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 consolidated financial statements when the standards become effective. |
Revenue and Cost of Product R_2
Revenue and Cost of Product Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue and Cost of Product Revenues | The following table presents revenues and cost of product revenues for the year ended December 31, 2019 , 2018 and 2017 (in thousands): Years Ended December 31, 2019 2018 2017 Gross product revenues Mirataz $ 4,151 $ 2,027 $ — Zimeta 131 — — Total gross product revenues 4,282 2,027 — Less allowance for product returns Mirataz (22 ) (61 ) — Zimeta (4 ) — — Total allowance for product returns (26 ) (61 ) — Net product revenues Mirataz 4,129 1,966 — Zimeta 127 — — Total net product revenues 4,256 1,966 — Cost of product revenues Mirataz (554 ) (324 ) — Zimeta (33 ) — — Total cost of product revenues (587 ) (324 ) — Gross Profit Mirataz 3,575 1,642 — Zimeta 94 — — Total gross profit $ 3,669 $ 1,642 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 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, 2019 Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 1,592 $ 1,592 $ — $ — Commercial paper 13,580 — 13,580 — Short-term investments: U.S. treasury bills 8,524 8,524 — — Commercial paper 25,573 — 25,573 — U.S. government agency notes 11,461 — 11,461 — Corporate notes 10,165 — 10,165 — Long-term investments: US Government agency notes 801 — 801 — Corporate notes 1,036 — 1,036 — Total $ 72,732 $ 10,116 $ 62,616 $ — The following table presents information about our financial assets that are measured at fair value on a recurring basis as of December 31, 2018 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, 2018 Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 1,276 $ 1,276 $ — $ — U.S. treasury bills 500 500 — — Commercial paper 45,332 — 45,332 — U.S. treasury bonds and notes 7,949 — 7,949 — Short-term investments: — Commercial paper 5,353 — 5,353 — Corporate notes 12,277 — 12,277 — Total $ 72,687 $ 1,776 $ 70,911 $ — |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (in thousands): December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: U.S. treasury bills $ 8,517 $ 7 $ — $ 8,524 Commercial paper 25,576 3 (6 ) 25,573 U.S. government agency notes 11,460 2 (1 ) 11,461 Corporate notes 10,157 8 — 10,165 55,710 20 (7 ) 55,723 Long-term investments: U.S. government agency notes 801 — — 801 Corporate notes 1,036 — — 1,036 1,837 — — 1,837 Total available-for-sale investments $ 57,547 $ 20 $ (7 ) $ 57,560 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term investments: Commercial paper $ 5,353 $ — $ — $ 5,353 Corporate notes 12,288 — (11 ) 12,277 Total available-for-sale investments $ 17,641 $ — $ (11 ) $ 17,630 The following table summarizes the contractual maturities of our available-for-sale securities at December 31, 2019 (in thousands): Amortized Cost Fair Value Mature in less than one year $ 55,710 $ 55,723 Mature in one year or more $ 1,837 $ 1,837 |
Borrowings Borrowings (Tables)
Borrowings Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt payments | As of December 31, 2019 , assuming the principal payments start on November 1, 2021, our future debt payment obligations towards the principal and final fee, excluding interest payments and exit fee, for the respective fiscal years are as follows (in thousands): 2020 $ — 2021 1,111 2022 6,667 2023 6,667 2024 6,275 Total principal and final fee payments 20,720 Less: unamortized debt issuance costs (771 ) Less: unaccreted value of final fee (684 ) Loan payable, long term $ 19,265 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: As of December 31, (In thousands) 2019 2018 Computer and lab equipment $ 10,188 $ 4,923 Furniture and fixtures 143 65 Leasehold improvements 958 930 Building 9,520 — Building improvements 1,238 — Land 85 — Land improvement 166 — Construction-in-process 10,932 21,999 Total 33,230 27,917 Less accumulated depreciation and amortization (3,453 ) (1,574) Property and equipment, net $ 29,777 $ 26,343 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following as of December 31, 2019 and 2018 : (In thousands) As of December 31, 2019 2018 Accrued consulting $ 589 $ 627 Accrued research and development costs 1,336 2,509 Accrued other 2,206 5,012 Deferred rent — 115 4,131 8,263 Less current portion (4,131 ) (8,169 ) Long-term liability (deferred rent) $ — $ 94 |
Stock-Based Awards and Benefi_2
Stock-Based Awards and Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of shares of common stock reserved for future issuance | At December 31, 2019 , shares of common stock reserved for future issuance inclusive of outstanding option shares are as follows: 2018 Equity Incentive Plan 1,258,098 2014 Employee Stock Purchase Plan 250,530 1,508,628 |
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 Contractual Term (In Years) Aggregate Intrinsic Value Balance, December 31, 2016 2,927,650 3,568,329 $6.36 7.5 $4,353,000 2012 Plan true up retired shares (a) (26,977 ) — — 2016 Plan issued RSA shares (b) (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 2012 Plan true up retired shares (c) (56,953 ) — — 2016 Plan RSA forfeited on 1/23/18 (d) 26,980 — — 2016 Plan RSU issued on 1/22/18 (e) (315,000 ) — — 2016 Plan true up retired shares (f) (56,636 ) — — 2018 Incentive Plan (g) 3,000,000 — — Granted (1,607,193 ) 1,607,193 $9.78 Exercised — (242,031 ) $3.19 Expired 36,791 (36,791 ) $13.05 Forfeited - stock options 80,068 (80,068 ) $7.40 Balance, December 31, 2018 2,596,507 5,821,928 $7.54 7.1 $24,780,000 2012 Plan true up retired shares (h) (94,700 ) — — 2016 Plan RSA forfeited on 1/23/19 (i) 21,562 — — 2016 Plan RSU forfeited on 1/22/19 (j) 27,538 — — 2016 Plan true up retired shares (k) (191,491 ) — — 2018 Plan RSU Issued in Q1/2019 (l) (264,075 ) — — Granted (1,107,500 ) 1,107,500 $9.77 Exercised — (305,801 ) $5.21 Expired 104,710 (104,710 ) $13.26 Forfeited - stock options 165,547 (165,547 ) $7.97 Balance, December 31, 2019 1,258,098 6,353,370 $7.94 6.6 $12,516,000 Options vested and expected to vest, December 31, 2019 6,353,370 $7.94 6.6 $12,516,000 Options exercisable, December 31, 2019 4,504,720 $7.33 5.8 $11,878,000 (a) The 2012 Equity Incentive Plan terminated in May 2016. All shares available for grant under this Plan expired. True up all expired shares available for grant under the 2012 Equity Incentive Plan. (b) Issued 250,000 RSA shares on January 23, 2017 under the 2016 Equity Incentive Plan. (c) 2012 Equity Incentive Plan retired in May 2016. True up retirement in 2018. (d) Vested 62,500 RSA shares on January 23, 2018. 26,980 shares were forfeited to cover tax liability. (e) Issued 315,000 RSU units on January 22, 2018 under the 2016 Equity Incentive Plan. (f) The 2016 Equity Incentive Plan terminated in June 2018. All shares available for grant under this Plan expired. (g) The 2018 Equity Incentive Plan was adopted and approved by stockholders in June 2018. (h) 2012 Equity Incentive Plan retired in May 2016. True up retirement in 2019. (i) Vested 62,500 RSA shares on January 23, 2019. 21,562 shares were forfeited to cover tax liability. (j) Vested 78,750 RSU units on January 22, 2019, 27,538 units were forfeited to cover tax liability. (k) The 2016 Equity Incentive Plan terminated in June 2018. True up retirement in 2019. (l) Issued 264,075 RSU units in Q1 2019 under the 2018 Equity Incentive Plan. |
Schedule of restricted stock award activity | Restricted stock activity for the year ended December 31, 2019 , was as follows: Restricted Stock Award / Restricted Stock Units Shares Weighted Average Grant Date Fair Value Unvested balance at December 31, 2018 502,500 $7.87 Granted 300,775 10.49 Vested (141,250 ) 7.71 Forfeited (36,700 ) 10.61 Unvested balance at December 31, 2019 625,325 $9.01 |
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, 2019 2018 2017 Research and development $1,848 $1,746 $1,650 General and administrative 5,509 4,531 3,557 $7,357 $6,277 $5,207 |
Schedule of valuation assumptions, stock options | The relevant data used to determine the fair value of stock-based awards is as follows: Years Ended December 31, 2019 2018 2017 Stock options: Weighted average risk-free interest rate 2.49% 2.62% 1.98% Weighted average expected term (in years) 5.9 5.9 6.0 Weighted average expected volatility 56.9% 59.2% 70.4% Weighted average expected dividend yield — — — Fair value at grant date $5.34 $5.58 $4.21 Employee stock purchase plan: Weighted average risk-free interest rate 2.17% 2.02% 1.04% Weighted average expected term (in years) 0.5 0.5 0.5 Weighted average expected volatility 47.5% 43.7% 56.7% Weighted average expected dividend yield — — — Fair value at grant date $2.62 $2.72 $1.73 Restricted stock awards: Fair value at grant date $0.00 $0.00 $6.40 Restricted stock units: Fair value at grant date $10.49 $8.75 $0.00 |
Schedule of valuation assumptions, employee stock purchase plan | The relevant data used to determine the fair value of stock-based awards is as follows: Years Ended December 31, 2019 2018 2017 Stock options: Weighted average risk-free interest rate 2.49% 2.62% 1.98% Weighted average expected term (in years) 5.9 5.9 6.0 Weighted average expected volatility 56.9% 59.2% 70.4% Weighted average expected dividend yield — — — Fair value at grant date $5.34 $5.58 $4.21 Employee stock purchase plan: Weighted average risk-free interest rate 2.17% 2.02% 1.04% Weighted average expected term (in years) 0.5 0.5 0.5 Weighted average expected volatility 47.5% 43.7% 56.7% Weighted average expected dividend yield — — — Fair value at grant date $2.62 $2.72 $1.73 Restricted stock awards: Fair value at grant date $0.00 $0.00 $6.40 Restricted stock units: Fair value at grant date $10.49 $8.75 $0.00 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information for the year ended December 31, 2019 , related to operating leases was as follows (in thousands): Amortization of operating lease $ 659 Cash paid within operating cash flows $ 846 Right-of-use assets obtained in exchange for new or modified lease liabilities $ 1,807 |
Supplemental balance sheet information | Supplemental balance sheet information, as of December 31, 2019 , related to operating leases was as follows (in thousands, except lease term and discount rate): Reported as: Operating lease right-of-use assets $ 3,001 Current portion of operating lease liabilities $ 644 Long-term operating lease liabilities 2,614 Total lease liabilities $ 3,258 Weighted average remaining lease term (years) 4.9 years Weighted average discount rate 5.5% |
Schedule of future minimum rental payments | As of December 31, 2019 , we are obligated to make minimum lease payments under non-cancelable operating leases, as follows (in thousands): Year ending December 31, Lease Payments 2020 $ 807 2021 648 2022 675 2023 701 2024 719 Thereafter 205 Total lease payments 3,755 Less: imputed interest (497 ) Total lease liabilities $ 3,258 |
Schedule of future minimum rental payments | As of December 31, 2018 , we are obligated to make minimum lease payments under all of our operating leases as follows (in thousands): Year ending December 31, Lease Payments 2019 $ 835 2020 726 2021 459 2022 194 Thereafter — Total $ 2,214 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Consumable Purchase Obligations | As of December 31, 2019 , we have incurred the full $3.8 million in equipment purchase costs and are obligated to make consumable purchases as follows (in thousands): Year ending December 31, Consumable commitments 2020 $ 1,650 2021 3,300 2022 3,625 2023 3,625 2024 4,285 Total $ 16,485 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) Years Ended December 31, 2019 2018 2017 Income tax expense (benefit) at statutory federal rate $ (12,893 ) 21.0 % $ (10,436 ) 21.0 % $ (10,499 ) 34.0 % State income tax, net of federal benefit (3,392 ) 5.5 (3,748 ) 7.5 (1,880 ) 6.1 Permanent items 198 (0.3 ) 13 — 63 (0.2 ) Research and development credits (1,913 ) 3.1 (1,909 ) 3.8 (1,172 ) 3.8 Stock-based compensation 637 (1.0 ) (237 ) 0.5 (122 ) 0.4 Reserve for uncertain tax positions 861 (1.4 ) 864 (1.7 ) 469 (1.5 ) Change in valuation allowance 15,382 (25.1 ) 14,949 (30.1 ) (128 ) 0.4 Tax Cuts and Jobs Act — — — — 13,092 (42.4 ) Other 1,120 (1.8 ) 504 (1.0 ) 177 (0.6 ) Provision (benefit) for income taxes $ — — % $ — — % $ — — % |
Components of deferred tax assets | The components of the deferred tax assets are as follows at December 31, 2019 and 2018 : December 31, (In thousands) 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 53,247 $ 39,579 Research and development credits 4,682 3,589 Accrued expenses 1,020 893 Amortization and depreciation (222 ) (393 ) Stock-based compensation 6,412 6,173 ROU Lease - Liabilities 872 — ROU Lease - Assets (804 ) — Other 20 10 65,227 49,851 Valuation Allowance (65,227 ) (49,851 ) 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, 2019 2018 2017 Balance at beginning of year $ 3,196 $ 2,252 $ 1,698 Additions based on tax positions related to the current year 942 944 554 Additions for tax positions of prior years 37 — — Balance at end of year $ 4,175 $ 3,196 $ 2,252 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017: (In thousands, except per share amounts) Years Ended December 31, 2019 2018 2017 Basic and diluted net loss per share attributable to common stockholders: Numerator: Net loss attributable to common stockholders $ (61,389 ) $ (49,690 ) $ (30,879 ) Denominator: Weighted-average number of common shares outstanding, basic and diluted 38,657 31,001 25,084 Net loss per common share attributable to common stockholders, basic and diluted $ (1.59 ) $ (1.60 ) $ (1.23 ) |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 . (In thousands, except per share amounts) 2019 2018 Quarter ended Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Net product revenues $ 1,401 $ 1,104 $ 1,236 $ 515 $ 1,326 $ 640 $ — $ — Operating costs and expenses Cost of product revenues 187 139 169 92 214 110 — — Research and development 7,134 7,290 6,734 7,152 7,756 7,477 5,820 5,346 General and administrative 9,578 9,382 9,065 9,901 9,219 6,608 5,770 4,902 Total operating cost and expenses 16,899 16,811 15,968 17,145 17,189 14,195 11,590 10,248 Loss from operations (15,498 ) (15,707 ) (14,732 ) (16,630 ) (15,863 ) (13,555 ) (11,590 ) (10,248 ) Interest and other income, net (236 ) 414 425 575 422 518 349 277 Net loss $ (15,734 ) $ (15,293 ) $ (14,307 ) $ (16,055 ) $ (15,441 ) $ (13,037 ) $ (11,241 ) $ (9,971 ) Net loss per share, basic and diluted (1) $ (0.40 ) $ (0.39 ) $ (0.37 ) $ (0.42 ) $ (0.46 ) $ (0.39 ) $ (0.39 ) $ (0.36 ) Weighted average shares used in computing net loss per share, basic and diluted 38,999 38,940 38,887 37,786 33,708 33,601 28,619 27,986 (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 _2
Organization and Description of Business Narrative (Details) $ / shares in Units, $ in Thousands | Jun. 22, 2018USD ($)$ / sharesshares | Aug. 11, 2017USD ($)$ / sharesshares | Jul. 12, 2017$ / sharesshares | Apr. 25, 2016class_of_stock$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2013USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) |
Subsidiary, Sale of Stock [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 | $ 223,059 | $ 161,670 | |||||||
Net proceeds after deducting commissions and other related expenses | $ 23,198 | $ 43,125 | |||||||
Number of shares issued in transaction (in shares) | shares | 3,314,000 | 3,000,000 | |||||||
Net proceeds from sales of common stock | 43,125 | $ 49,180 | $ 52,160 | ||||||
Shares issued, price per share (USD per share) | $ / shares | $ 7.50 | ||||||||
Cash, cash equivalents, and investments in available-for-sale securities | $ 73,500 | ||||||||
Cash sufficient to provide operations period | 36 months | ||||||||
IPO | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Net proceeds after deducting commissions and other related expenses | $ 226,400 | ||||||||
Public Stock Offering | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Net proceeds after deducting commissions and other related expenses | $ 47,422 | $ 43,100 | |||||||
Number of shares issued in transaction (in shares) | shares | 5,326,314 | 4,847,250 | |||||||
Net proceeds from sales of common stock | $ 50,600 | $ 46,049 | |||||||
Shares issued, price per share (USD per share) | $ / shares | $ 9.50 | $ 9.50 | |||||||
Over-allotment option | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares issued in transaction (in shares) | shares | 314,000 | 632,250 | |||||||
Shares issued, price per share (USD per share) | $ / shares | $ 7.50 | ||||||||
KindredBio Equine, Inc | |||||||||
Subsidiary, Sale of Stock [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 | ||||||||
Centaur Biopharmaceutical Services | |||||||||
Subsidiary, Sale of Stock [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 | ||||||||
Mirataz | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Proceeds from divestiture | $ 43,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ft² in Thousands | Aug. 07, 2017USD ($)a | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)a | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jun. 21, 2017ft² |
Property, Plant and Equipment [Line Items] | |||||||
Principal amount | $ 50,000,000 | ||||||
Purchase of property and equipment | $ 8,428,000 | $ 13,919,000 | $ 5,920,000 | ||||
Operating lease right-of-use assets | 3,001,000 | ||||||
Operating lease obligations | $ 3,258,000 | ||||||
Accounting Standards Update 2016-02 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Operating lease right-of-use assets | $ 1,941,000 | ||||||
Decrease in other assets | 69,000 | ||||||
Decrease in other liabilities | 115,000 | ||||||
Operating lease obligations | $ 1,985,000 | ||||||
Furniture and fixtures | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment, useful life | 2 years | ||||||
Lab and computer equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment, useful life | 5 years | ||||||
Land improvement | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment, useful life | 15 years | ||||||
Building and Building Improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and equipment, useful life | 39 years | ||||||
Strategic Veterinary Pharmaceuticals, Inc. | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Area of real estate property (in sq ft) | ft² | 180 | ||||||
Purchase of property and equipment | $ 3,750,000 | $ 3,750,000 | |||||
Area of land (in acres) | a | 8 | 8 | |||||
Solar Capital Ltd. | Term Loan | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Principal amount | 50,000,000 | ||||||
Solar Capital Ltd. | Loan Agreement, Term A Loan | Term Loan | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Principal amount | 20,000,000 | ||||||
Solar Capital Ltd. | Loan Agreement, Term B Loan | Term Loan | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Principal amount | 15,000,000 | ||||||
Solar Capital Ltd. | Loan Agreement, Term C Loan | Term Loan | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Principal amount | $ 15,000,000 | ||||||
One Month London Interbank Offered Rate (LIBOR) | Solar Capital Ltd. | Term Loan | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Basis variable rate floor | 2.17% | ||||||
Interest rate | 6.75% |
Revenue and Cost of Product R_3
Revenue and Cost of Product Revenues - Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||||||||||
Gross product revenues | $ 4,282 | $ 2,027 | $ 0 | ||||||||
Less allowance for product returns | (26) | (61) | 0 | ||||||||
Net product revenues | 4,256 | 1,966 | 0 | ||||||||
Cost of product revenues | $ (187) | $ (139) | $ (169) | $ (92) | $ (214) | $ (110) | $ 0 | $ 0 | (587) | (324) | 0 |
Gross Profit | 3,669 | 1,642 | 0 | ||||||||
Mirataz | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Gross product revenues | 4,151 | 2,027 | 0 | ||||||||
Less allowance for product returns | (22) | (61) | 0 | ||||||||
Net product revenues | 4,129 | 1,966 | 0 | ||||||||
Cost of product revenues | (554) | (324) | 0 | ||||||||
Gross Profit | 3,575 | 1,642 | 0 | ||||||||
Zimeta | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Gross product revenues | 131 | 0 | 0 | ||||||||
Less allowance for product returns | (4) | 0 | 0 | ||||||||
Net product revenues | 127 | 0 | 0 | ||||||||
Cost of product revenues | (33) | 0 | 0 | ||||||||
Gross Profit | $ 94 | $ 0 | $ 0 |
Revenue and Cost of Product R_4
Revenue and Cost of Product Revenues - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Product return period after expiration | 90 days | |
Allowance for doubtful accounts | $ 0 | |
Mirataz | ||
Concentration Risk [Line Items] | ||
Product return liability percentage | 2.00% | |
Zimeta | ||
Concentration Risk [Line Items] | ||
Product return liability percentage | 3.00% | |
Customer Concentration Risk | Revenue | Four distributors | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 85.00% | 91.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements | ||
Short-term investments | $ 55,723,000 | $ 17,630,000 |
Long-term investments | 1,837,000 | 0 |
Financial assets measured at fair value on a recurring basis | ||
Fair Value Measurements | ||
Total | 72,732,000 | 72,687,000 |
Financial liabilities measured at fair value | 0 | 0 |
Financial assets measured at fair value on a recurring basis | Money market funds | ||
Fair Value Measurements | ||
Cash equivalents: | 1,592,000 | 1,276,000 |
Financial assets measured at fair value on a recurring basis | Commercial paper | ||
Fair Value Measurements | ||
Cash equivalents: | 13,580,000 | 45,332,000 |
Short-term investments | 25,573,000 | 5,353,000 |
Financial assets measured at fair value on a recurring basis | U.S. treasury bills | ||
Fair Value Measurements | ||
Cash equivalents: | 500,000 | |
Short-term investments | 8,524,000 | |
Financial assets measured at fair value on a recurring basis | U.S. government agency notes | ||
Fair Value Measurements | ||
Cash equivalents: | 7,949,000 | |
Short-term investments | 11,461,000 | |
Long-term investments | 801,000 | |
Financial assets measured at fair value on a recurring basis | Corporate notes | ||
Fair Value Measurements | ||
Short-term investments | 10,165,000 | 12,277,000 |
Long-term investments | 1,036,000 | |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | ||
Fair Value Measurements | ||
Total | 10,116,000 | 1,776,000 |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value Measurements | ||
Cash equivalents: | 1,592,000 | 1,276,000 |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | Commercial paper | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | 0 |
Short-term investments | 0 | 0 |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | U.S. treasury bills | ||
Fair Value Measurements | ||
Cash equivalents: | 500,000 | |
Short-term investments | 8,524,000 | |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | U.S. government agency notes | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | |
Short-term investments | 0 | |
Long-term investments | 0 | |
Financial assets measured at fair value on a recurring basis | Quoted Prices in Active Markets (Level 1) | Corporate notes | ||
Fair Value Measurements | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total | 62,616,000 | 70,911,000 |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | 0 |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value Measurements | ||
Cash equivalents: | 13,580,000 | 45,332,000 |
Short-term investments | 25,573,000 | 5,353,000 |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | U.S. treasury bills | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | |
Short-term investments | 0 | |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government agency notes | ||
Fair Value Measurements | ||
Cash equivalents: | 7,949,000 | |
Short-term investments | 11,461,000 | |
Long-term investments | 801,000 | |
Financial assets measured at fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Corporate notes | ||
Fair Value Measurements | ||
Short-term investments | 10,165,000 | 12,277,000 |
Long-term investments | 1,036,000 | |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Total | 0 | 0 |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | 0 |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | 0 |
Short-term investments | 0 | 0 |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | U.S. treasury bills | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | |
Short-term investments | 0 | |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | U.S. government agency notes | ||
Fair Value Measurements | ||
Cash equivalents: | 0 | |
Short-term investments | 0 | |
Long-term investments | 0 | |
Financial assets measured at fair value on a recurring basis | Unobservable Inputs (Level 3) | Corporate notes | ||
Fair Value Measurements | ||
Short-term investments | 0 | $ 0 |
Long-term investments | $ 0 |
Investments - Summary of Invest
Investments - Summary of Investments Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 57,547 | $ 17,641 |
Gross Unrealized Gains | 20 | 0 |
Gross Unrealized Losses | (7) | (11) |
Fair Value | 57,560 | 17,630 |
Short-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 55,710 | |
Gross Unrealized Gains | 20 | |
Gross Unrealized Losses | (7) | |
Fair Value | 55,723 | |
Short-term investments: | U.S. treasury bills | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,517 | |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | 0 | |
Fair Value | 8,524 | |
Short-term investments: | Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,576 | 5,353 |
Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses | (6) | 0 |
Fair Value | 25,573 | 5,353 |
Short-term investments: | U.S. government agency notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,460 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (1) | |
Fair Value | 11,461 | |
Short-term investments: | Corporate Note Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,157 | 12,288 |
Gross Unrealized Gains | 8 | 0 |
Gross Unrealized Losses | 0 | (11) |
Fair Value | 10,165 | $ 12,277 |
Long-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,837 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,837 | |
Long-term investments: | U.S. government agency notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 801 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 801 | |
Long-term investments: | Corporate Note Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,036 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 1,036 |
Investments - Maturities of Ava
Investments - Maturities of Available-for-Sale Securities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Amortized Cost | |
Mature in less than one year | $ 55,710 |
Mature in one year or more | 1,837 |
Fair Value | |
Mature in less than one year | 55,723 |
Mature in one year or more | $ 1,837 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | 36 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2024 | |
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 50,000,000 | |||
Term Loan | Solar Capital Ltd. | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | 50,000,000 | |||
Closing costs | $ 819,000 | |||
Facility fee | 0.50% | |||
Facility fee, non-utilization | 0.25% | |||
Additional interest applied in event of default | 5.00% | |||
Loan Agreement, Term A Loan | Term Loan | Solar Capital Ltd. | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 20,000,000 | |||
Loan Agreement, Term B Loan | Term Loan | Solar Capital Ltd. | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | 15,000,000 | |||
Cash on hand prior to funding | 5,000,000 | |||
Cash on hand after funding | 10,000,000 | |||
Loan Agreement, Term C Loan | Term Loan | Solar Capital Ltd. | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | 15,000,000 | |||
Cash on hand after funding | $ 15,000,000 | |||
One Month London Interbank Offered Rate (LIBOR) | Term Loan | Solar Capital Ltd. | ||||
Line of Credit Facility [Line Items] | ||||
Basis variable rate floor | 2.17% | |||
Interest rate | 6.75% | |||
Forecast | Term Loan | Solar Capital Ltd. | ||||
Line of Credit Facility [Line Items] | ||||
Prepayment premium | 2.00% | 3.00% | 1.00% | |
Minimum | Term Loan | Solar Capital Ltd. | ||||
Line of Credit Facility [Line Items] | ||||
Final fee payment if interest-only period is extended | 3.60% | |||
Maximum | Term Loan | Solar Capital Ltd. | ||||
Line of Credit Facility [Line Items] | ||||
Final fee payment if interest-only period is extended | 4.35% |
Borrowings - Future Debt Obliga
Borrowings - Future Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 0 | |
2021 | 1,111 | |
2022 | 6,667 | |
2023 | 6,667 | |
2024 | 6,275 | |
Total principal and final fee payments | 20,720 | |
Less: unamortized debt issuance costs | (771) | |
Less: unaccreted value of final fee | (684) | |
Loan payable, long term | $ 19,265 | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 33,230 | $ 27,917 |
Less accumulated depreciation and amortization | (3,453) | (1,574) |
Property and equipment, net | 29,777 | 26,343 |
Computer and lab equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,188 | 4,923 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 143 | 65 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 958 | 930 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,520 | 0 |
Building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,238 | 0 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 85 | 0 |
Land improvement | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 166 | 0 |
Construction-in-process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,932 | $ 21,999 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) | Aug. 07, 2017USD ($)a | Dec. 31, 2019USD ($)aft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Purchase of property and equipment | $ 8,428,000 | $ 13,919,000 | $ 5,920,000 | |
Depreciation and amortization expense | $ 1,880,000 | $ 805,000 | $ 475,000 | |
Strategic Veterinary Pharmaceuticals, Inc. | ||||
Property, Plant and Equipment [Line Items] | ||||
Square footage of Kansas Facility ( in sqft) | ft² | 180,000 | |||
Purchase of property and equipment | $ 3,750,000 | $ 3,750,000 | ||
Area of land (in acres) | a | 8 | 8 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued consulting | $ 589 | $ 627 |
Accrued research and development costs | 1,336 | 2,509 |
Accrued other | 2,206 | 5,012 |
Deferred rent | 0 | 115 |
Accrued liabilities | 4,131 | 8,263 |
Less current portion | (4,131) | (8,169) |
Long-term liability (deferred rent) | $ 0 | $ 94 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Jun. 22, 2018USD ($)$ / sharesshares | Aug. 11, 2017USD ($)$ / sharesshares | Jul. 12, 2017USD ($)$ / sharesshares | Dec. 19, 2016USD ($) | Jan. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)shares | Jan. 31, 2018USD ($) | Jan. 31, 2015USD ($) | Jun. 30, 2017USD ($)shares | Dec. 31, 2019USD ($)vote$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | May 31, 2018USD ($) | Dec. 31, 2016shares |
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 | ||||||||||||
Common stock, par value (USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||
Exercise of common stock options (in shares) | shares | 305,801 | 242,031 | 156,927 | |||||||||||
Exercise of stock options and purchase of ESPP shares | $ 1,591,000 | $ 635,000 | $ 311,000 | |||||||||||
Common stock, shares outstanding (in shares) | shares | 39,203,533 | 33,948,254 | ||||||||||||
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 | 3,314,000 | 3,000,000 | ||||||||||||
Net proceeds after deducting commissions and other related expenses | $ 23,198,000 | $ 43,125,000 | ||||||||||||
Shares issued, price per share (USD per share) | $ / shares | $ 7.50 | |||||||||||||
Stock issued during period | $ 24,855,000 | $ 22,500,000 | ||||||||||||
Net proceeds from sales of common stock | $ 43,125,000 | $ 49,180,000 | $ 52,160,000 | |||||||||||
Common Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Number of voting rights | vote | 1 | |||||||||||||
Exercise of common stock options (in shares) | shares | 306,000 | 231,000 | 157,000 | |||||||||||
Common stock issued under ESPP (in shares) | shares | 65,078 | 46,850 | 43,561 | |||||||||||
Proceeds from ESPP | $ 438,000 | $ 352,000 | $ 201,000 | |||||||||||
Common stock, shares outstanding (in shares) | shares | 39,204,000 | 33,948,000 | 28,183,000 | 19,916,000 | ||||||||||
Common Stock | Employee | Stock options | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Exercise of common stock options (in shares) | shares | 305,801 | 231,407 | 156,927 | |||||||||||
Exercise of stock options and purchase of ESPP shares | $ 1,591,000 | $ 635,000 | $ 311,000 | |||||||||||
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 | 632,250 | ||||||||||||
Shares issued, price per share (USD per share) | $ / shares | $ 7.50 | |||||||||||||
Stock issued during period | $ 2,355,000 | |||||||||||||
At-the-Market Offering | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Number of shares issued in transaction (in shares) | shares | 188,100 | |||||||||||||
Net proceeds after deducting commissions and other related expenses | $ 1,758,000 | |||||||||||||
Stock issued during period | 1,758,000 | 28,962,000 | ||||||||||||
Shares Available For Issuance | $ 50,000,000 | |||||||||||||
Net proceeds from sales of common stock | $ 1,903,000 | |||||||||||||
At-the-Market Offering | Common Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Payments of stock issuance costs | $ 145,000 | 1,038,000 | ||||||||||||
Stock issued during period | $ 1,000 | |||||||||||||
Public Stock Offering | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Number of shares issued in transaction (in shares) | shares | 5,326,314 | 4,847,250 | ||||||||||||
Net proceeds after deducting commissions and other related expenses | $ 47,422,000 | $ 43,100,000 | ||||||||||||
Shares issued, price per share (USD per share) | $ / shares | $ 9.50 | $ 9.50 | ||||||||||||
Net proceeds from sales of common stock | $ 50,600,000 | $ 46,049,000 | ||||||||||||
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 Benefi_3
Stock-Based Awards and Benefit Plan - Narrative (Details) | Jun. 26, 2018 | Jun. 22, 2018 | Jan. 22, 2018USD ($)shares | Jan. 23, 2017USD ($)employeeshares | Nov. 04, 2012shares | Jun. 30, 2018shares | May 31, 2016shares | Dec. 31, 2014USD ($)shares | Mar. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares reserved for future issuance (in shares) | 1,508,628 | ||||||||||||
Number of options outstanding (in shares) | 6,353,370 | 5,821,928 | 4,573,625 | 3,568,329 | |||||||||
Number of shares available for grants | 1,258,098 | 2,596,507 | 1,488,450 | 2,927,650 | |||||||||
Common stock reserved for future issuance (in shares) | 250,530 | ||||||||||||
Aggregate intrinsic value of stock options exercised | $ | $ 1,046,000 | $ 2,261,000 | $ 911,000 | ||||||||||
Exercise of stock options and purchase of ESPP shares | $ | $ 1,591,000 | $ 635,000 | $ 311,000 | ||||||||||
Grants in period, weighted average grant date fair value (USD per share) | $ / shares | $ 5.34 | $ 5.58 | $ 4.21 | ||||||||||
Stock-based compensation expense | $ | $ 7,357,000 | $ 6,277,000 | $ 5,207,000 | ||||||||||
Unrecognized stock-based compensation expense | $ | $ 8,616,000 | ||||||||||||
Recognition period | 2 years 6 months | ||||||||||||
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 | $ 5.34 | $ 5.58 | $ 4.21 | ||||||||||
Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 1 year | ||||||||||||
Restricted stock granted (in shares) | 250,000 | 300,775 | |||||||||||
Restricted stock unvested (in shares) | 625,325 | 502,500 | |||||||||||
Number of employees awards | employee | 4 | ||||||||||||
Vesting rights percentage | 25.00% | 25.00% | |||||||||||
Stock-based compensation expense | $ | $ 2,756,000 | $ 1,600,000 | $ 3,156,000 | ||||||||||
Unrecognized stock-based compensation expense | $ | $ 3,995,000 | ||||||||||||
Recognition period | 2 years 6 months 7 days | ||||||||||||
Restricted stock units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted stock granted (in shares) | 315,000 | 300,775 | |||||||||||
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 | 10 years | ||||||||||||
Number of options outstanding (in shares) | 2,740,842 | ||||||||||||
2016 Equity Incentive Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted stock granted (in shares) | 191,491 | ||||||||||||
2016 Equity Incentive Plan | Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Expiration period | 10 years | ||||||||||||
Shares reserved for future issuance (in shares) | 3,000,000 | ||||||||||||
Number of options outstanding (in shares) | 2,134,701 | ||||||||||||
Percent of purchase price of common stock | 100.00% | ||||||||||||
Purchase price of common stock if ownership percentage surpasses threshold, percent | 110.00% | ||||||||||||
Number of shares available for grants | 0 | ||||||||||||
2016 Equity Incentive Plan | 10% Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Expiration period | 5 years | ||||||||||||
2016 Equity Incentive Plan | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted stock granted (in shares) | 250,000 | 125,000 | 250,000 | ||||||||||
2016 Equity Incentive Plan | Restricted stock units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted stock granted (in shares) | 315,000 | ||||||||||||
Restricted stock unvested (in shares) | 236,250 | ||||||||||||
2016 Equity Incentive Plan | Minimum | Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 1 year | ||||||||||||
2016 Equity Incentive Plan | Maximum | Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 4 years | ||||||||||||
2018 Equity Incentive Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares reserved for future issuance (in shares) | 1,258,098 | ||||||||||||
2018 Equity Incentive Plan | Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Expiration period | 10 years | 5 years | |||||||||||
Shares reserved for future issuance (in shares) | 3,000,000 | ||||||||||||
Number of options outstanding (in shares) | 1,477,827 | ||||||||||||
Percent of purchase price of common stock | 100.00% | ||||||||||||
Purchase price of common stock if ownership percentage surpasses threshold, percent | 110.00% | ||||||||||||
Number of shares available for grants | 1,258,098 | ||||||||||||
2018 Equity Incentive Plan | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted stock granted (in shares) | 264,075 | ||||||||||||
2018 Equity Incentive Plan | Restricted stock units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted stock unvested (in shares) | 264,075 | ||||||||||||
2018 Equity Incentive Plan | Minimum | Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 1 year | ||||||||||||
2018 Equity Incentive Plan | Maximum | Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 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) | 250,530 | ||||||||||||
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 | ||||||||||||
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 | $ 2.62 | ||||||||||||
Accrued employee benefits | $ | $ 40,000 | $ 47,000 | |||||||||||
2014 Employee Stock Purchase Plan | Minimum | Employee stock purchase plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares reserved for future issuance (in shares) | 200,000 | ||||||||||||
2014 Employee Stock Purchase Plan | Maximum | Employee stock purchase plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares reserved for future issuance (in shares) | 500,000 | ||||||||||||
Common Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Common stock issued under ESPP (in shares) | 65,078 | 46,850 | 43,561 | ||||||||||
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) | 249,470 | ||||||||||||
Optionee | 2016 Equity Incentive Plan | Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Ownership percentage by noncontrolling Owners | 10.00% | ||||||||||||
Optionee | 2018 Equity Incentive Plan | Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Ownership percentage by noncontrolling Owners | 10.00% |
Stock-Based Awards and Benefi_4
Stock-Based Awards and Benefit Plan - Reserved Shares (Details) | Dec. 31, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 1,508,628 |
2018 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 1,258,098 |
2014 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 250,530 |
Stock-Based Awards and Benefi_5
Stock-Based Awards and Benefit Plan - Stock Option Plan Activity Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 23, 2019 | Jan. 22, 2019 | Jan. 23, 2018 | Jan. 22, 2018 | Jan. 23, 2017 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Shares | ||||||||||
Number of shares available for grant, beginning balance (in shares) | 2,596,507 | 2,596,507 | 1,488,450 | 2,927,650 | ||||||
Number of shares issuable under options, beginning balance (in shares) | 5,821,928 | 5,821,928 | 4,573,625 | 3,568,329 | ||||||
Granted (in shares) | (1,107,500) | (1,607,193) | (1,208,200) | |||||||
Exercised (in shares) | (305,801) | (242,031) | (156,927) | |||||||
Expired (in shares) | (104,710) | (36,791) | (7,267) | |||||||
Forfeited - stock options (in shares) | (165,547) | (80,068) | (38,710) | |||||||
Number of shares available for grant, ending balance (in shares) | 1,258,098 | 2,596,507 | 1,488,450 | 2,927,650 | ||||||
Number of shares issuable under options, ending balance (in shares) | 6,353,370 | 5,821,928 | 4,573,625 | 3,568,329 | ||||||
Weighted Average Exercise Price | ||||||||||
Outstanding, beginning balance (USD per share) | $ 7.54 | $ 7.54 | $ 6.57 | $ 6.36 | ||||||
Granted (USD per share) | 9.77 | 9.78 | 6.62 | |||||||
Exercised (USD per share) | 5.21 | 3.19 | 1.98 | |||||||
Expired (USD per share) | 13.26 | 13.05 | 14.54 | |||||||
Forfeited - stock options (USD per share) | 7.97 | 7.40 | 6.60 | |||||||
Outstanding, ending balance (USD per share) | $ 7.94 | $ 7.54 | $ 6.57 | $ 6.36 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||
Weighted Average Remaining Contractual Term (in years) | 6 years 6 months 29 days | 7 years 26 days | 7 years 2 months 16 days | 7 years 6 months | ||||||
Aggregate Intrinsic Value | $ 12,516 | $ 24,780 | $ 18,745 | $ 4,353 | ||||||
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) | 6,353,370 | |||||||||
Options vested and expected to vest, weighted average exercise price (USD per share) | $ 7.94 | |||||||||
Options vested and expected to vest, weighted average remaining contractual term (in years) | 6 years 6 months 29 days | |||||||||
Options vested and expected to vest, aggregate intrinsic value | $ 12,516 | |||||||||
Options exercisable, shares issuable under options (in shares) | 4,504,720 | |||||||||
Options exercisable, weighted average exercise price (USD per share) | $ 7.33 | |||||||||
Options exercisable, weighted average remaining contractual term | 5 years 9 months 7 days | |||||||||
Options exercisable, aggregate intrinsic value | $ 11,878 | |||||||||
2012 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
2012 Plan true up retired shares (in shares) | (94,700) | (56,953) | (26,977) | |||||||
2016 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
2012 Plan true up retired shares (in shares) | (21,562) | (56,636) | ||||||||
2016 Plan issued RSA shares (in shares) | (191,491) | |||||||||
Restricted Stock | ||||||||||
Shares | ||||||||||
2016 Plan RSA forfeited shares (in shares) | 21,562 | 27,538 | 26,980 | |||||||
2016 Plan issued RSA shares (in shares) | (250,000) | (300,775) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||||||
Vested shares (in shares) | 62,500 | 78,750 | 62,500 | |||||||
Restricted Stock | 2016 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
2016 Plan RSA forfeited shares (in shares) | 27,538 | 26,980 | ||||||||
2016 Plan issued RSA shares (in shares) | (250,000) | (125,000) | (250,000) | |||||||
Restricted Stock | 2018 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
2016 Plan issued RSA shares (in shares) | (264,075) | |||||||||
Restricted stock units | ||||||||||
Shares | ||||||||||
2016 Plan issued RSA shares (in shares) | (315,000) | (300,775) | ||||||||
Restricted stock units | 2016 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
2016 Plan issued RSA shares (in shares) | (315,000) | |||||||||
Restricted stock units | 2018 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
2012 Plan true up retired shares (in shares) | (264,075) | |||||||||
Stock options | 2012 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
Number of shares issuable under options, ending balance (in shares) | 2,740,842 | |||||||||
Stock options | 2016 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
Number of shares available for grant, ending balance (in shares) | 0 | |||||||||
Number of shares issuable under options, ending balance (in shares) | 2,134,701 | |||||||||
Stock options | 2018 Equity Incentive Plan | ||||||||||
Shares | ||||||||||
2018 Incentive Plan (in shares) | 3,000,000 | |||||||||
Number of shares available for grant, ending balance (in shares) | 1,258,098 | |||||||||
Number of shares issuable under options, ending balance (in shares) | 1,477,827 |
Stock-Based Awards and Benefi_6
Stock-Based Awards and Benefit Plan - Restricted Stock (Details) - $ / shares | Jan. 22, 2018 | Jan. 23, 2017 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Stock | ||||||
Shares | ||||||
Unvested balance, beginning balance (in shares) | 502,500 | 502,500 | ||||
Granted (in shares) | 250,000 | 300,775 | ||||
Vested (in shares) | (141,250) | |||||
Forfeited (in shares) | (36,700) | |||||
Unvested balance, ending balance (in shares) | 625,325 | 502,500 | ||||
Weighted Average Grant Date Fair Value | ||||||
Unvested balance, beginning balance (in USD per share) | $ 7.87 | $ 7.87 | ||||
Granted (in USD per share) | 10.49 | |||||
Vested (in USD per share) | 7.71 | |||||
Forfeited (in USD per share) | 10.61 | |||||
Unvested balance, ending balance (in USD per share) | 9.01 | $ 7.87 | ||||
Restricted stock units | ||||||
Shares | ||||||
Granted (in shares) | 315,000 | 300,775 | ||||
Weighted Average Grant Date Fair Value | ||||||
Granted (in USD per share) | $ 10.49 | $ 8.75 | $ 0 |
Stock-Based Awards and Benefi_7
Stock-Based Awards and Benefit Plan - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 7,357 | $ 6,277 | $ 5,207 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,848 | 1,746 | 1,650 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5,509 | $ 4,531 | $ 3,557 |
Stock-Based Awards and Benefi_8
Stock-Based Awards and Benefit Plan - Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value at grant date, stock options (in USD per share) | $ 5.34 | $ 5.58 | $ 4.21 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average risk-free interest rate | 2.49% | 2.62% | 1.98% |
Weighted average expected term (in years) | 5 years 10 months 28 days | 5 years 10 months 24 days | 6 years |
Weighted average expected volatility | 56.90% | 59.20% | 70.40% |
Weighted average expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value at grant date, stock options (in USD per share) | $ 5.34 | $ 5.58 | $ 4.21 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average risk-free interest rate | 2.17% | 2.02% | 1.04% |
Weighted average expected term (in years) | 6 months | 6 months | 6 months |
Weighted average expected volatility | 47.50% | 43.70% | 56.70% |
Weighted average expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value at grant date, other options (in USD per share) | $ 2.62 | $ 2.72 | $ 1.73 |
Restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value at grant date, other options (in USD per share) | 10.49 | ||
Restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value at grant date, other options (in USD per share) | 0 | 0 | 6.40 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value at grant date, other options (in USD per share) | $ 10.49 | $ 8.75 | $ 0 |
Leases - Additional Informatio
Leases - Additional Information (Details) | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 29, 2020ft² | May 31, 2019ft² | Apr. 30, 2019ft² | Oct. 31, 2018ft² | Apr. 30, 2017ft² | Aug. 31, 2015ft² | |
Property, Plant and Equipment [Line Items] | |||||||||
Number of equipment leases | 4 | ||||||||
Short-term operating lease expense | $ | $ 1,204,000 | $ 814,000 | $ 679,000 | ||||||
Building | Operating lease | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Area of real estate property (in sq ft) | 11,476 | ||||||||
Additional area of real estate property (in sqft) | 5,613 | ||||||||
Office space | Operating lease | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Area of real estate property (in sq ft) | 1,346 | 1,979 | 8,090 | 3,126 | |||||
Subsequent Event | Building | Operating lease | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Area of real estate property (in sq ft) | 13,736 | ||||||||
Additional area of real estate property (in sqft) | 2,260 |
Leases - Supplemental Cash Flo
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of operating lease | $ 659 |
Cash paid within operating cash flows | 846 |
Right-of-use assets obtained in exchange for new or modified lease liabilities | $ 1,807 |
Leases - Supplemental Balance
Leases - Supplemental Balance Sheet (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Reported as: | |
Operating lease right-of-use assets | $ 3,001 |
Current portion of operating lease liabilities | 644 |
Long-term operating lease liabilities | 2,614 |
Total lease liabilities | $ 3,258 |
Weighted average remaining lease term (years) | 4 years 10 months 24 days |
Weighted average discount rate | 5.50% |
Leases - Minimum Future Paymen
Leases - Minimum Future Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases After Adoption of 842 | ||
2020 | $ 807 | |
2021 | 648 | |
2022 | 675 | |
2023 | 701 | |
2024 | 719 | |
Thereafter | 205 | |
Total lease payments | 3,755 | |
Less: imputed interest | (497) | |
Total lease liabilities | $ 3,258 | |
Operating Leases, Before Adoption of 842 | ||
2019 | $ 835 | |
2020 | 726 | |
2021 | 459 | |
2022 | 194 | |
Thereafter | 0 | |
Total | $ 2,214 |
Commitments and Contingencies
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitment, amount | $ 3,800 | |
Purchase commitment, period | 7 years | |
Purchase obligation | $ 16,500 | $ 16,485 |
Equipment purchase costs | $ 3,800 |
Commitments and Contingencies -
Commitments and Contingencies - Consumable Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
2020 | $ 1,650 | |
2021 | 3,300 | |
2022 | 3,625 | |
2023 | 3,625 | |
2024 | 4,285 | |
Total | $ 16,485 | $ 16,500 |
Income Taxes - Reconciliation S
Income Taxes - Reconciliation Statutory Federal Income Tax to Effective Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense (benefit) at statutory federal rate | $ (12,893) | $ (10,436) | $ (10,499) |
State income tax, net of federal benefit | (3,392) | (3,748) | (1,880) |
Permanent items | 198 | 13 | 63 |
Research and development credits | (1,913) | (1,909) | (1,172) |
Stock-based compensation | 637 | (237) | (122) |
Reserve for uncertain tax positions | 861 | 864 | 469 |
Change in valuation allowance | 15,382 | 14,949 | (128) |
Tax Cuts and Jobs Act | 0 | 0 | 13,092 |
Other | 1,120 | 504 | 177 |
Provision (benefit) for income taxes | $ 0 | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax expense (benefit) at statutory federal rate | 21.00% | 21.00% | 34.00% |
State income tax, net of federal benefit | 5.50% | 7.50% | 6.10% |
Permanent items | (0.30%) | 0.00% | (0.20%) |
Research and development credits | 3.10% | 3.80% | 3.80% |
Stock-based compensation | (1.00%) | 0.50% | 0.40% |
Reserve for uncertain tax positions | (1.40%) | (1.70%) | (1.50%) |
Change in valuation allowance | (25.10%) | (30.10%) | 0.40% |
Tax Cuts and Jobs Act | 0.00% | 0.00% | (42.40%) |
Other | (1.80%) | (1.00%) | (0.60%) |
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, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 53,247 | $ 39,579 |
Research and development credits | 4,682 | 3,589 |
Accrued expenses | 1,020 | 893 |
Amortization and depreciation | (222) | (393) |
Stock-based compensation | 6,412 | 6,173 |
ROU Lease - Liabilities | 872 | |
ROU Lease - Assets | (804) | |
Other | 20 | 10 |
Deferred tax assets, gross | 65,227 | 49,851 |
Valuation Allowance | (65,227) | (49,851) |
Net current deferred tax assets | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Net deferred tax assets | $ 65,227,000 | $ 49,851,000 | |
Ownership change percentage limitation for operating soss and development tax credits over a three year period | 50.00% | ||
Ownership change duration limitation for operating soss and development tax credits over a three year period | 3 years | ||
Uncertain tax position liability percentage | 50.00% | ||
Unrecognized tax benefits that would impact the effective tax rate | $ 3,787,000 | ||
Income tax examination, penalties and interest accrued | $ 0 | 0 | $ 0 |
Unrecognized tax benefit period | 12 months | ||
Income tax examination, penalties and interest expense | $ 0 | $ 0 | $ 0 |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers | 194,548,000 | ||
Federal | Research tax credit carryover | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryovers | 4,815,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers | 113,110,000 | ||
State | Research tax credit carryover | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryovers | 4,625,000 | ||
Tax Year 2017 | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers | $ 101,436,000 |
Income Taxes - Rollforward of C
Income Taxes - Rollforward of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 3,196 | $ 2,252 | $ 1,698 |
Additions based on tax positions related to the current year | 942 | 944 | 554 |
Additions for tax positions of prior years | 37 | 0 | 0 |
Balance at end of year | $ 4,175 | $ 3,196 | $ 2,252 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net loss attributable to common stockholders | $ (15,734) | $ (15,293) | $ (14,307) | $ (16,055) | $ (15,441) | $ (13,037) | $ (11,241) | $ (9,971) | $ (61,389) | $ (49,690) | $ (30,879) |
Denominator: | |||||||||||
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 38,999,000 | 38,940,000 | 38,887,000 | 37,786,000 | 33,708,000 | 33,601,000 | 28,619,000 | 27,986,000 | 38,657,000 | 31,001,000 | 25,084,000 |
Net loss per common share attributable to common stockholders, basic and diluted (USD per share) | $ (0.40) | $ (0.39) | $ (0.37) | $ (0.42) | $ (0.46) | $ (0.39) | $ (0.39) | $ (0.36) | $ (1.59) | $ (1.60) | $ (1.23) |
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from EPS computation (in shares) | 6,353,370 | 5,821,928 | 4,573,625 | ||||||||
Restricted Stock | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from EPS computation (in shares) | 125,000 | 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) | 500,325 | 315,000 |
Employee Savings Plan (Details)
Employee Savings Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 452 | $ 292 | $ 149 |
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 3.00% |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net product revenues | $ 1,401 | $ 1,104 | $ 1,236 | $ 515 | $ 1,326 | $ 640 | $ 0 | $ 0 | |||
Operating costs and expenses | |||||||||||
Cost of product revenues | 187 | 139 | 169 | 92 | 214 | 110 | 0 | 0 | $ 587 | $ 324 | $ 0 |
Research and development | 7,134 | 7,290 | 6,734 | 7,152 | 7,756 | 7,477 | 5,820 | 5,346 | 28,310 | 26,399 | 17,665 |
General and administrative | 9,578 | 9,382 | 9,065 | 9,901 | 9,219 | 6,608 | 5,770 | 4,902 | 37,926 | 26,499 | 13,988 |
Total operating cost and expenses | 16,899 | 16,811 | 15,968 | 17,145 | 17,189 | 14,195 | 11,590 | 10,248 | |||
Loss from operations | (15,498) | (15,707) | (14,732) | (16,630) | (15,863) | (13,555) | (11,590) | (10,248) | (62,567) | (51,256) | (31,653) |
Interest and other income, net | (236) | 414 | 425 | 575 | 422 | 518 | 349 | 277 | 1,178 | 1,566 | 774 |
Net loss | $ (15,734) | $ (15,293) | $ (14,307) | $ (16,055) | $ (15,441) | $ (13,037) | $ (11,241) | $ (9,971) | $ (61,389) | $ (49,690) | $ (30,879) |
Net loss per share, basic and diluted (USD per share) | $ (0.40) | $ (0.39) | $ (0.37) | $ (0.42) | $ (0.46) | $ (0.39) | $ (0.39) | $ (0.36) | $ (1.59) | $ (1.60) | $ (1.23) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 38,999 | 38,940 | 38,887 | 37,786 | 33,708 | 33,601 | 28,619 | 27,986 | 38,657 | 31,001 | 25,084 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Mar. 16, 2020USD ($)position | Dec. 31, 2019USD ($) | Feb. 29, 2020ft² | Oct. 31, 2018ft² |
Mirataz | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from divestiture | $ 43 | |||
Operating lease | Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Additional area of real estate property (in sqft) | ft² | 5,613 | |||
Area of real estate property (in sq ft) | ft² | 11,476 | |||
Subsequent Event | ||||
Property, Plant and Equipment [Line Items] | ||||
Amount paid on closing date | $ 38.7 | |||
Escrow deposit | $ 4.3 | |||
Escrow period | 12 months | |||
Number of positions eliminated | position | 53 | |||
Restructuring expenses | $ 1.7 | |||
Subsequent Event | Mirataz | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from divestiture | $ 43 | |||
Subsequent Event | Operating lease | Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Additional area of real estate property (in sqft) | ft² | 2,260 | |||
Area of real estate property (in sq ft) | ft² | 13,736 |