Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'SPHS | ' |
Entity Registrant Name | 'SOPHIRIS BIO INC. | ' |
Entity Central Index Key | '0001563855 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,149,871 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $18,632 | $14,839 |
Securities available-for-sale | 21,644 | 33,310 |
Other receivables | 53 | 48 |
Prepaid expenses | 3,882 | 3,598 |
Total current assets | 44,211 | 51,795 |
Property and equipment, net | 55 | 78 |
Other long-term assets | 19 | 19 |
Total assets | 44,285 | 51,892 |
Current liabilities: | ' | ' |
Accounts payable | 4,422 | 1,470 |
Accrued expenses | 1,093 | 2,181 |
Current portion of promissory notes | 5,284 | 6,877 |
Total current liabilities | 10,799 | 10,528 |
Warrant liability | 20 | 883 |
Stock-based compensation liability | 181 | 202 |
Total liabilities | 11,000 | 11,613 |
Commitments and contingencies (Note 11) | ' | ' |
Shareholders' equity: | ' | ' |
Common shares, unlimited authorized shares, no par value; 16,149,871 shares issued and outstanding at March 31, 2014 and December 31, 2013 | 111,204 | 111,204 |
Contributed surplus | 15,286 | 13,824 |
Accumulated other comprehensive gain | 101 | 98 |
Deficit accumulated during development stage | -93,306 | -84,847 |
Total shareholders' equity | 33,285 | 40,279 |
Total liabilities and shareholders' equity | $44,285 | $51,892 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common shares, shares authorized | 'Unlimited | 'Unlimited |
Common shares, par value | ' | ' |
Common shares, shares issued | 16,149,871 | 16,149,871 |
Common shares, shares outstanding | 16,149,871 | 16,149,871 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 147 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Revenues: | ' | ' | ' |
License revenue | ' | $5,000 | $8,000 |
Operating expenses: | ' | ' | ' |
Research and development | 6,830 | 2,871 | 66,754 |
General and administrative | 1,451 | 1,246 | 30,440 |
Total operating expenses | 8,281 | 4,117 | 97,194 |
Other income (expense): | ' | ' | ' |
Interest expense | -208 | -399 | -4,491 |
Interest income | 17 | ' | 1,078 |
Gain on revaluation of warrant liability | 29 | ' | 719 |
Other income (expense), net | -17 | -101 | -603 |
Total other income (expense) | -179 | -500 | -3,297 |
Net income (loss) before income taxes | -8,460 | 383 | -92,491 |
Income tax expense | ' | -500 | -815 |
Net loss | -8,460 | -117 | -93,306 |
Basic and diluted loss per share | ($0.52) | ($0.04) | ' |
Weighted average number of outstanding shares - basic and diluted | 16,150 | 3,150 | ' |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustment | ' | 108 | 99 |
Unrealized gain on securities available-for-sale | 3 | ' | 2 |
Total other comprehensive loss | ($8,457) | ($9) | ($93,205) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 147 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Cash flows used in operating activities | ' | ' | ' |
Net loss for the period | ($8,460) | ($117) | ($93,306) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' | ' |
Stock-based compensation | 609 | 252 | 6,120 |
Accretion of debt discount | 68 | 109 | 1,178 |
Depreciation of property and equipment | 21 | 21 | 627 |
Amortization of intangible assets | ' | ' | 1,205 |
Amortization of promissory note issuance costs | 17 | 32 | 348 |
Amortization of discount on available-for-sale securities | 17 | ' | 26 |
Impairment loss | ' | ' | 176 |
Change in fair value warrant liability | -29 | ' | -719 |
Foreign exchange transaction (gain) loss | 16 | 124 | -1,425 |
Loss on disposal of assets | 2 | ' | 29 |
Other | ' | ' | 182 |
Changes in operating assets and liabilities: | ' | ' | ' |
Milestone payment due from Kissei | ' | -5,000 | ' |
Other receivables | -5 | -24 | 4 |
Prepaid expenses | -301 | 227 | -4,217 |
Other long-term assets | ' | 12 | -19 |
Accounts payable | 2,947 | 1,553 | 3,932 |
Accrued expenses | -1,036 | -877 | 1,298 |
Withholding tax payable | ' | 500 | ' |
Net cash used in operating activities | -6,134 | -3,188 | -84,561 |
Cash flows provided by (used in) investing activities | ' | ' | ' |
Purchases of property and equipment | ' | -3 | -725 |
Proceeds from the disposal of property and equipment | ' | ' | 13 |
Acquisition of intangible assets | ' | ' | -1,372 |
Maturities of securities available-for-sale | 15,450 | ' | 16,562 |
Purchases of securities available-for-sale | -3,799 | ' | -38,232 |
Net cash provided by (used in) investing activities | 11,651 | -3 | -23,754 |
Cash flows provided by (used in) financing activities | ' | ' | ' |
Issuance of common shares from private placement, net of issuance cost | ' | ' | 50,179 |
Issuance of common shares from public offering, net of issuance cost | -53 | -454 | 60,017 |
Issuance of preferred shares, net of issuance cost | ' | ' | 465 |
Cash acquired on reverse acquisition | ' | ' | 818 |
Issuance of common shares on exercise of warrants | ' | ' | 8,702 |
Issuance of common shares on exercise of stock options | ' | ' | 514 |
Cash received from the issuance of promissory notes | ' | ' | 15,000 |
Principal payments on notes payable | -1,661 | -1,422 | -10,375 |
Increase in lease obligations | ' | ' | 120 |
Capital lease payments | ' | ' | -120 |
Other | ' | ' | 4 |
Net cash (used in) provided by financing activities | -1,714 | -1,876 | 125,324 |
Effect of exchange rate changes on cash and cash equivalents | -10 | -48 | 1,623 |
Net increase (decrease) in cash and cash equivalents | 3,793 | -5,115 | 18,632 |
Cash and cash equivalents at beginning of period | 14,839 | 9,721 | ' |
Cash and cash equivalents at end of period | 18,632 | 4,606 | 18,632 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' | ' |
Reclassification of fair value of warrant liability to equity as a result of the amendment of the underlying common share purchase warrants | 834 | ' | ' |
Change in the fair value of stock-based compensation liability recorded to contributed surplus | $20 | ' | ' |
Nature_of_the_business
Nature of the business | 3 Months Ended | |
Mar. 31, 2014 | ||
Accounting Policies [Abstract] | ' | |
Nature of the business | ' | |
1 | Nature of the business | |
Company | ||
Sophiris Bio Inc. or the Company or Sophiris is a clinical-stage biopharmaceutical development stage company currently developing PRX302 for treatment of the symptoms of benign prostatic hyperplasia or BPH, commonly referred to as an enlarged prostate. The Company is governed by the British Columbia Business Corporations Act and began operations on January 11, 2002. The Company’s operations were initially located in Vancouver, British Columbia until April 2011, when its core activities and headquarters relocated from Vancouver, British Columbia to San Diego, California. Effective April 2, 2012, the Company changed its name from Protox Therapeutics Inc. to Sophiris Bio Inc. | ||
Since its inception, the Company has devoted substantially all of its efforts to research and development, recruiting management and technical staff, acquiring assets and raising capital. In addition, the Company has not begun to commercialize or generate revenues from any product candidate. Accordingly, the Company is considered to be in the development stage, as defined in Accounting Standards Codification, or ASC, 915-10, “Development Stage Enterprises”. | ||
The condensed consolidated financial statements include the accounts of Sophiris Bio Inc. and its wholly-owned subsidiaries, Sophiris Bio Corp. and Sophiris Bio Holding Corp., both of which are incorporated in the State of Delaware. |
Summary_of_significant_account
Summary of significant accounting policies | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Summary of significant accounting policies | ' | |||
2 | Summary of significant accounting policies | |||
Significant accounting policies followed by the Company in the preparation of its condensed consolidated financial statements are as follows: | ||||
Correction of a Prior Period Misstatement | ||||
During the second quarter of 2013, the Company identified an error in the consolidated statement of cash flows for the three months ended March 31, 2013. The Company paid $454,000 of financing costs during the first quarter of 2013 which amounts were previously reflected as an operating cash outflow and should have been reflected as a financing cash outflow. The consolidated statement of cash flows for the three months ended March 31, 2013 included herein has been revised to reflect the Company’s correction of this error. There was no impact to the consolidated balance sheet, consolidated statement of operations and comprehensive loss or consolidated statement of changes in shareholders’ equity (deficit) as a result of this revision. The error was not considered material to the previously issued consolidated financial statements. | ||||
Basis of consolidation | ||||
The condensed consolidated financial statements include the accounts of the Company, Sophiris Bio Corp. and Sophiris Bio Holding Corp. All intercompany balances and transactions have been eliminated for purposes of consolidation. | ||||
Basis of presentation and use of estimates | ||||
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States, or GAAP, for the interim financial information and the rules and regulations of the Securities and Exchange Commission, or SEC, related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual audited financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, or Annual Report, filed with the SEC. GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. The Company bases estimates and judgments on historical experience and on various other factors that it believes to be reasonable under the circumstances. The significant estimates in these condensed consolidated financial statements include revenue recognition, stock-based compensation expense, warrant liability, functional currency and accrued research and development expenses, including accruals related to the Company’s ongoing clinical trial. The Company’s actual results may differ from these estimates. The Company evaluates its estimates on an ongoing basis. Changes in estimates are reflected in reported results in the period in which they become known by the Company’s management. In the opinion of management, these condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. | ||||
Foreign currency | ||||
Functional currency | ||||
Prior to August 2013 the functional currency of Sophiris Bio Inc. had been the Canadian dollar and the functional currency of Sophiris Bio Corp. and Sophiris Bio Holding Corp. had been the U.S. dollar. Subsequent to the completion of the Company’s initial public offering on the NASDAQ Global Market, or NASDAQ, the Company reviewed the underlying indicators of the primary economic environment in which Sophiris Bio Inc. operates. Based upon this review, the Company determined that the functional currency of Sophiris Bio Inc. changed from the Canadian dollar to the U.S. dollar effective August 16, 2013, the date of the Company’s U.S. initial public offering. | ||||
Reclassification of Warrants | ||||
The change in the functional currency of Sophiris Bio Inc. to the U.S. dollar effective August 16, 2013 effects how the Company accounts for its previously issued common share purchase warrants which have exercise prices denominated in Canadian dollars, a currency that is not the Company’s functional currency. Upon the change in functional currency, the Company calculated the fair value of its warrants with exercise prices in Canadian dollars utilizing the Black Scholes valuation model and classified the fair value as a long term liability in accordance with ASC 815, “Derivatives and Hedging”. The valuation of $1.6 million was calculated upon the change in functional currency. At each reporting period the Company will adjust the fair value of the warrant liability and any corresponding increase or decrease to the warrant liability will be recorded as a component of other income (expense) on the consolidated statement of operations and comprehensive loss. The estimated fair value is determined using the Black-Scholes valuation model based on the estimated value of the underlying common shares at the valuation measurement date, the remaining contractual term of the warrants, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common shares. | ||||
Warrant Liability | ||||
On January 31, 2014, the Company and Warburg Pincus Private Equity X, L.P. and Warburg Pincus X Partners, L.P. entered into an Omnibus Amendment to Common Share Purchase Warrants related to Warburg Pincus Private Equity X, L.P.’s and Warburg Pincus X Partners, L.P.’s 769,231 outstanding common share purchase warrants. On February 14, 2014, The Company and Oxford Finance LLC entered into an Omnibus Amendment to Warrants to Purchase Common Shares related to Oxford Finance LLC’s 26,971 outstanding common share purchase warrants. These amendments provided for the following: | ||||
(i) | the amendment of the exercise price and number of shares underlying each of the outstanding common share purchase warrants to reflect the 52-for-1 share consolidation effected by the Company on August 9, 2013; and | |||
(ii) | the amendment of the existing exercise price which is denominated in Canadian dollars to be restated into U.S. dollars. The agreement stipulates that the conversion of the exercise price will be completed utilizing the exchange rate in effect on the date of the issuance of each warrant. | |||
As a result of the conversion of the exercise prices from Canadian dollars to U.S. dollars the Company is no longer required to revalue the fair value of these warrants subsequent to their amendment. Upon the amendment of these common share purchase warrants the Company calculated a fair value on the date of their amendments using the Black-Scholes valuation model. As a result the Company recorded a $4,000 loss in its statement of operations and comprehensive loss which represents the change in the fair value of the common share purchase warrants from January 1, 2014 to the date of their amendments. The Company then reclassified the fair value as of the date of their amendments of $0.8 million for the amended common share purchase warrants from warrant liability to contributed surplus. | ||||
The Company continues to revalue at each reporting period 122,670 common share purchase warrants which continue to have exercise prices denominated in Canadian dollars. | ||||
Transactions and balances | ||||
Prior to the change in functional currency to U.S. dollars, all assets and liabilities of this entity were translated into U.S. dollars at the rate of exchange on the balance sheet date. Revenue and expense components were translated to U.S. dollars using the average exchange rate for the period. Gains and losses resulting from foreign currency translation are recorded in accumulated other comprehensive gain (loss), which is a separate component of stockholders’ equity. Foreign currency transaction gains and losses are recognized as a component of other income (expense), net. The Company recorded foreign exchange transaction losses of $16,000 and $0.1 million for the three months ended March 31, 2014 and 2013, respectively. | ||||
Cash and cash equivalents | ||||
Cash equivalents are short-term, highly liquid investments with an original maturity of three months or less at the date of purchase. | ||||
Securities Available-for-Sale | ||||
Investments with an original maturity of more than three months when purchased have been classified by management as securities available-for-sale. Such investments are carried at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive gain (loss) in shareholders’ equity. Realized gains and losses on available-for-sale securities are included in interest income. No other-than-temporary impairments were identified for the investment securities held by the Company as of March 31, 2014 or December 31, 2013.The cost of investment securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in interest income. The cost of securities sold is based on the specific-identification method. The Company has classified all of its investment securities as available-for-sale, including those with maturities beyond one year, as current assets on the consolidated balance sheets based on the highly liquid nature of the investment securities and because these investment securities are considered available for use in current operations. | ||||
Revenue recognition | ||||
The Company may enter into product development agreements with collaborative partners for the research and development of products for the treatment of urological diseases. The terms of the agreements may include nonrefundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations. These multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. License fees are recognized as revenue when persuasive evidence of an arrangement exists, the fee is fixed or determinable, delivery or performance has substantially completed and collection is reasonably assured. | ||||
The Company recognizes up front license payments as revenue upon delivery of the license only if the license has stand-alone value to the customer and if the agreement includes a general right of return, the delivery or performance of undelivered items is considered probable and within the control of the Company. The payment is generally allocated to the separate units of accounting based on their relative selling prices. The selling price of each deliverable is determined using vendor specific objective evidence of selling prices, if it exists; otherwise, third-party evidence of selling prices. If neither vendor specific objective evidence nor third-party evidence exists, the Company uses its’ best estimate of the selling price for each deliverable. The payment allocated is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. | ||||
Whenever the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue recognized. If the Company cannot reasonably estimate the timing and the level of effort to complete its performance obligations under the arrangement, then revenue under the arrangement is recognized on a straight-line basis over the period the Company is expected to complete its performance obligations. | ||||
The Company evaluates milestone payments on an individual basis and recognizes revenue from non-refundable milestone payments when the earnings process is complete and the payment is reasonably assured. Non-refundable milestone payments related to arrangements under which the Company has continuing performance obligations are recognized as revenue upon achievement of the associated milestone, provided that (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (ii) the amount of the milestone payment is reasonable in relation to the effort expended or the risk associated with the milestone event. Any amounts received under agreements in advance of performance, if deemed substantive, are recorded as deferred revenue and recognized as revenue as the Company completes its performance obligations. A milestone event is considered substantive if (i) the milestone is commensurate with either (a) the Company’s performance to achieve the milestone or (b) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) it relates solely to past performance and (iii) it is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. If any portion of the milestone payment does not relate to the Company’s performance, does not relate solely to past performance or is refundable or adjustable based on future performance, the milestone is not considered to be substantive. Milestone payments are not bifurcated into substantive and non-substantive components. Payments related to the achievement of non-substantive milestones is deferred and recognized over the Company’s remaining performance period. | ||||
Royalty revenue will be recognized upon the sale of the related products provided the Company has no remaining performance obligations under the arrangement. | ||||
Research and development expenses | ||||
Research and development costs are charged to expense as incurred. Research and development expenses comprise costs incurred in performing research and development activities, including personnel-related costs, stock-based compensation, facilities, research-related overhead, clinical trial costs, contracted services, manufacturing, license fees and other external costs. The Company accounts for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been consumed rather than when the payment is made. | ||||
Accrued research and development expenses | ||||
Clinical trial costs are recorded as a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services based on facts and circumstances known to the Company as of each balance sheet date. However, actual costs and timing of clinical trials are highly uncertain, subject to risks and may change depending upon a number of factors, including the Company’s clinical development plan. The process of estimating clinical trial costs may become more complex as the Company’s ongoing and planned Phase 3 clinical trials will involve larger numbers of patients and clinical sites. | ||||
If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Adjustments to prior period estimates have not been material. | ||||
Examples of estimated accrued research and development expenses include: | ||||
• | fees paid to clinical research organizations in connection with clinical studies; | |||
• | fees paid to investigative sites in connection with clinical studies; | |||
• | fees paid to vendors in connection with preclinical development activities; | |||
• | fees paid to vendors associated with the development of companion diagnostics; and | |||
• | fees paid to vendors related to product manufacturing, development and distribution of clinical supplies. | |||
Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are recorded as a prepaid expense and recognized as expense in the period that the related goods are consumed or services are performed. | ||||
Stock-based compensation | ||||
The Company expenses the fair value of employee stock options over the vesting period. Compensation expense is measured using the fair value of the award at the grant date, net of estimated forfeitures, and is adjusted annually to reflect actual forfeitures. The fair value of each stock-based award is estimated using the Black-Scholes valuation model and is expensed using graded amortization over the vesting period. | ||||
The Company accounts for stock options granted to non-employees, which primarily consist of members of the Company’s scientific advisory board and consultants, using the fair value approach. Stock options granted to non-employees are subject to revaluation each reporting period over their vesting terms. | ||||
Historically the Company has issued its stock options with a Canadian dollar denominated exercise price. Subsequent to the Company’s initial public offering on the NASDAQ, the Company has issued its stock options with an U.S. dollar denominated exercise price. | ||||
Effective November 13, 2013, the Company voluntarily delisted from the Toronto Stock Exchange, or TSX. Subsequent to November 13, 2013, the Company’s securities are being actively traded on only the NASDAQ. | ||||
As a result of the delisting from the TSX and the change in the Company’s functional currency to the U.S. dollar, the stock options granted with exercise prices denominated in Canadian dollars are now considered dual indexed as defined in ASC 718, “Compensation, Stock Compensation”. As a result of the stock options being dual indexed the Company is required to account for these stock options as a liability. Historically these options had been accounted for as equity. The estimated fair value is determined using the Black-Scholes valuation model based on the estimated value of the underlying common shares at the valuation measurement date, the remaining service period of the stock options, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common shares. The fair value of the stock-based compensation liability was $181,000 at March 31, 2014. As the calculated fair value of the stock options at March 31, 2014 was less than the original grant date fair value no additional compensation expense was recorded in the consolidated statement of operations and comprehensive loss. The change in the fair value of the stock-based compensation liability from December 31, 2013 to March 31, 2014 of $21,000 was recorded as an adjustment to Contributed Surplus. | ||||
Fair value of financial instruments | ||||
The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid for to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, investments securities classified as available-for-sale and accounts payable and accrued expenses, approximate fair value due to their short maturities. | ||||
The Company follows ASC 820-10, “Fair Value Measurements and Disclosures,” which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: | ||||
Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||
Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | ||||
Level 3 – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
Net_loss_per_common_share
Net loss per common share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net loss per common share | ' | ||||||||
3 | Net loss per common share | ||||||||
Basic net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period, without consideration for common shares equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. | |||||||||
The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of the three months ended March 31, 2014 and 2013 as the Company recorded a net loss in all periods and, therefore, they would be anti-dilutive (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Options to purchase common shares | 1,374 | 301 | |||||||
Common share purchase warrants | 919 | 919 |
Securities_AvailableforSale
Securities Available-for-Sale | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Securities Available-for-Sale | ' | ||||||||||||||||
4 | Securities Available-for-Sale | ||||||||||||||||
Securities available-for-sale consisted of the following as of March 31, 2014 (in thousands): | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Amortized | Unrealized | Estimated | |||||||||||||||
Cost | Gain | Loss | Fair Value | ||||||||||||||
Commercial paper | $ | 3,799 | $ | — | $ | — | $ | 3,799 | |||||||||
U.S. government sponsored enterprise securities | 12,458 | 1 | (3 | ) | 12,456 | ||||||||||||
Corporate debt securities | 5,386 | 3 | — | 5,389 | |||||||||||||
$ | 21,643 | $ | 4 | $ | (3 | ) | $ | 21,644 | |||||||||
The amortized cost and estimated fair value of the Company securities available-for-sale by contractual maturity as of March 31, 2014 are shown below (in thousands): | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Amortized | Unrealized | Estimated | |||||||||||||||
Cost | Gain | Loss | Fair Value | ||||||||||||||
Within one year | $ | 21,120 | $ | 3 | $ | (3 | ) | $ | 21,120 | ||||||||
After one year | 523 | 1 | — | 524 | |||||||||||||
$ | 21,643 | $ | 4 | $ | (3 | ) | $ | 21,644 | |||||||||
Securities available-for-sale consisted of the following as of December 31, 2013 (in thousands): | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Unrealized | Estimated | |||||||||||||||
Cost | Gain | Loss | Fair Value | ||||||||||||||
Commercial paper | $ | 9,798 | $ | — | $ | — | $ | 9,798 | |||||||||
U.S. government sponsored enterprise securities | 17,007 | 2 | (4 | ) | 17,005 | ||||||||||||
Corporate debt securities | 6,506 | 2 | (1 | ) | 6,507 | ||||||||||||
$ | 33,311 | $ | 4 | $ | (5 | ) | $ | 33,310 | |||||||||
The amortized cost and estimated fair value of the Company securities available-for-sale by contractual maturity as of December 31, 2013 are shown below (in thousands): | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Unrealized | Estimated | |||||||||||||||
Cost | Gain | Loss | Fair Value | ||||||||||||||
Within one year | $ | 30,430 | $ | 2 | $ | (4 | ) | $ | 30,428 | ||||||||
After one year | 2,881 | 2 | (1 | ) | 2,882 | ||||||||||||
$ | 33,311 | $ | 4 | $ | (5 | ) | $ | 33,310 |
Fair_value_measurement_and_fin
Fair value measurement and financial instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair value measurement and financial instruments | ' | ||||||||||||||||
5 | Fair value measurement and financial instruments | ||||||||||||||||
As of March 31, 2014, the Company has $37.8 million of securities consisting of money market funds, commercial paper, U.S. government sponsored enterprise securities and corporate debt securities with maturities that range from 1 day to 12 months with an overall average time to maturity of 3.5 months. The Company has the ability to liquidate these investments without restriction. The Company determines fair value for securities with Level 1 inputs through quoted market prices. The Company determines fair value for securities with Level 2 inputs through broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. The Company’s Level 2 securities have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other observable market data. The pricing services utilize industry standard valuation models, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, and other industry and economic events. The Company’s Level 3 inputs are unobservable inputs based on the Company’s assessment that market participants would use in pricing the instruments. | |||||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis for the periods presented (in thousands): | |||||||||||||||||
March 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 3,107 | $ | 3,107 | $ | — | $ | — | |||||||||
Commercial paper | 16,888 | — | 16,888 | — | |||||||||||||
U.S. government sponsored enterprise securities | 12,456 | — | 12,456 | — | |||||||||||||
Corporate debt securities | 5,389 | — | 5,389 | — | |||||||||||||
Total assets | $ | 37,840 | $ | 3,107 | $ | 34,733 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Warrant liability | $ | 20 | $ | — | $ | — | $ | 20 | |||||||||
Stock-based compensation liability | 181 | — | — | 181 | |||||||||||||
Total liabilities | $ | 201 | $ | — | $ | — | $ | 201 | |||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 55 | $ | 55 | $ | — | $ | — | |||||||||
Commercial paper | 23,570 | — | 23,570 | — | |||||||||||||
U.S. government sponsored enterprise securities | 17,005 | — | 17,005 | — | |||||||||||||
Corporate debt securities | 6,507 | — | 6,507 | — | |||||||||||||
Total assets | $ | 47,137 | $ | 55 | $ | 47,082 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Warrant liability | $ | 883 | $ | — | $ | — | $ | 883 | |||||||||
Stock-based compensation liability | 202 | — | — | 202 | |||||||||||||
Total liabilities | $ | 1,085 | $ | — | $ | — | $ | 1,085 | |||||||||
The Company calculates the fair value of the common share purchase warrants (level 3) at each reporting period utilizing a Black-Scholes valuation model. The following inputs were utilized in the Black-Scholes valuation model: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Stock price | $ | 3.33 | $ | 3.7 | |||||||||||||
Weighted average exercise price | $ | 30.57 | $ | 25.45 | |||||||||||||
Risk-free interest rate | 0.13 | % | 0.62 | % | |||||||||||||
Volatility | 126.69 | % | 115.09 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Expected life in years | 0.96 | 2.51 | |||||||||||||||
The Company calculates the fair value of the stock-based compensation liability (level 3) at each reporting period utilizing a Black-Scholes valuation model. The following inputs were utilized in the Black-Scholes valuation model: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Stock price | $ | 3.33 | $ | 3.7 | |||||||||||||
Weighted average exercise price | $ | 17.00 | $ | 17.66 | |||||||||||||
Risk-free interest rate | 0.97 | % | 1 | % | |||||||||||||
Volatility | 93.99 | % | 94.53 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Expected life in years | 3.17 | 3.42 | |||||||||||||||
The following table presents a reconciliation of the warrant liability measured at fair value using unobservable inputs (Level 3) (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Liabilities: | |||||||||||||||||
Balance at beginning of period: | $ | 883 | |||||||||||||||
Reclassification of fair value of warrant liability to equity as a result of the amendment of the underlying common share purchase warrants | (834 | ) | |||||||||||||||
Change in fair value of warrant liability included in other income (expense), net | (29 | ) | |||||||||||||||
Balance at end of period: | $ | 20 | |||||||||||||||
The following table presents a reconciliation of the stock-based compensation liability measured at fair value using unobservable inputs (Level 3) (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Liabilities: | |||||||||||||||||
Balance at beginning of period: | $ | 202 | |||||||||||||||
Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus | (21 | ) | |||||||||||||||
Balance at end of period: | $ | 181 | |||||||||||||||
There were no transfers of assets or liabilities between the fair value measurement classifications. |
Prepaid_expenses
Prepaid expenses | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Prepaid expenses | ' | ||||||||
6 | Prepaid expenses | ||||||||
Prepaid expenses as of March 31, 2014 and December 31, 2013 consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Prepaid insurance | $ | 204 | $ | 292 | |||||
Prepaid research and development expenses | 3,576 | 3,218 | |||||||
Other prepaid expenses | 102 | 88 | |||||||
$ | 3,882 | $ | 3,598 | ||||||
As of March 31, 2014 and December 31, 2013, prepaid research and development expenses includes $3.1million and $2.7 million, respectively for upfront fees paid to our primary clinical research organizations assisting with our on-going Phase 3 clinical trial. The upfront fees will be relieved in future periods by offsetting future invoices based upon work completed. |
Accrued_expenses
Accrued expenses | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued expenses | ' | ||||||||
Accrued expenses | |||||||||
Accrued expenses as of March 31, 2014 and December 31, 2013 consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued personnel related costs | $ | 471 | $ | 1,063 | |||||
Accrued interest | 37 | 50 | |||||||
Accrued research and development expenses | 410 | 713 | |||||||
Other accrued expenses | 175 | 355 | |||||||
$ | 1,093 | $ | 2,181 | ||||||
Promissory_notes
Promissory notes | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Promissory notes | ' | ||||||||
8 | Promissory notes | ||||||||
The roll forward of the secured promissory note is calculated as follows (in thousands): | |||||||||
Balance at December 31, 2013 | 6,877 | ||||||||
Accretion of debt discount | 68 | ||||||||
Principal paid | (1,661 | ) | |||||||
Balance at March 31, 2014 | $ | 5,284 | |||||||
The Oxford loan has an interest rate of 9.50% per annum. The following table shows actual interest expensed and amortization of the debt discount that was charged to interest expense (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Simple interest | $ | 123 | $ | 258 | |||||
Accretion of debt discount | 68 | 109 | |||||||
Amortization of promissory notes issuance costs | 17 | 32 | |||||||
$ | 208 | $ | 399 | ||||||
The promissory notes will mature in November of 2014. Total remaining payments due under the promissory notes is $5.5 million including the final payment of $0.8 million due upon repayment of the loan. | |||||||||
The Company calculated the fair value of the secured promissory notes as $4.4 million (Level 3) as of March 31, 2014. The fair value of long-term debt is based on the net present value of calculated interest and principal payments, using an interest rate of 11%, provided by the Company’s lender, which takes into consideration the financial position of the Company, the assessed credit rating of the Company by the lender and the interest rate environment at March 31, 2014. As part of this fair value assessment the Company also confirmed with its lender an appropriate warrant coverage of 6% associated with the promissory notes. The fair value of this equity component was derived using the Black-Scholes valuation model. The Company calculated the promissory notes’ fair value by allocating to equity and the debt based on their respective fair values. |
Stockbased_compensation_plan
Stock-based compensation plan | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||
Stock-based compensation plan | ' | ||||||||||||
9 | Stock-based compensation plan | ||||||||||||
Equity awards | |||||||||||||
The Company’s Amended and Restated 2011 Stock Option plan, or the Plan, provides for the granting of options for the purchase of common shares of the Company at the fair value of the Company’s common shares on the date of the option grant. Options are granted to employees, directors and non-employees. The board of directors or a committee appointed by the board of directors administers the Plan and has discretion as to the number, vesting period and expiry date of each option award. Historically the Company granted options to residents of the United States with an exercise price denominated in Canadian dollars, the functional currency of Sophiris Bio Inc. prior to the Company’s U.S. initial public offering. Following the Company’s U.S. initial public offering the Company will grant options with an exercise price denominated in U.S. dollars | |||||||||||||
The Company recognized stock-based compensation expense as follows (in thousands): | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Research and development | $ | 192 | $ | 64 | |||||||||
General and administrative | 417 | 188 | |||||||||||
Total | $ | 609 | $ | 252 | |||||||||
As of March 31, 2014 and 2013, there was $2.0 million and $0.9 million, respectively, of total unrecognized compensation costs related to non-vested stock awards. As of March 31, 2014 and 2013, the Company expects to recognize those costs over weighted average periods of approximately 1.3 years and 1.5 years, respectively. | |||||||||||||
The fair values of options granted during the three months ended March 31, 2014 and 2013 were estimated at the date of grant using the following weighted-average assumptions: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Expected life of the option term (years) | 3.8 | 3.9 | |||||||||||
Risk-free interest rate | 1.3 | % | 1.4 | % | |||||||||
Dividend rate | 0 | % | 0 | % | |||||||||
Volatility | 77.3 | % | 65 | % | |||||||||
Forfeiture rate | 4.4 | % | 8.8 | % | |||||||||
The following table summarizes stock option activity, including options issued to employees, directors and non-employees (in thousands, except per share): | |||||||||||||
Options | Weighted | Currency | |||||||||||
outstanding | average | ||||||||||||
exercise | |||||||||||||
price | |||||||||||||
Outstanding at January 1, 2014 | 1,362 | $ | 7.1 | US | |||||||||
Options granted | 19 | 3.53 | US | ||||||||||
Options forfeited | (7 | ) | 28.69 | CND | |||||||||
Outstanding at March 31, 2014 | 1,374 | $ | 6.93 | US | |||||||||
The total amounts for options outstanding at March 31, 2014 include options with exercise prices denominated in Canadian dollars and U.S. Dollars and the Canadian dollar amounts have been converted to U.S. dollars at the exchange rate as of March 31, 2014 for purposes of the calculation. | |||||||||||||
Kissei_Agreement
Kissei Agreement | 3 Months Ended | |
Mar. 31, 2014 | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | |
Kissei Agreement | ' | |
10 | Kissei Agreement | |
In April 2010, the Company entered into an exclusive license agreement for the development and commercialization of PRX302 (and other products covered by the licensed patent). The agreement with Kissei Pharmaceuticals Co., Ltd., a Japanese pharmaceutical company, or Kissei covers the development and commercialization of PRX302 in Japan for the treatment of the symptoms of BPH, prostate cancer, prostatitis or other diseases of the prostate. Pursuant to the agreement in 2010, the Company received an upfront license payment of $3.0 million. The Company has determined that the deliverables under this agreement included the license, the transfer of relevant technical information and participation in a periodic development meeting. The Company recognized the entire upfront license payment upon receipt as the license was deemed to have stand-alone value and no significant undelivered performance obligations were identified in connection with the license. | ||
During the three months ended March 31, 2013, the Company recorded as revenue a $5.0 million non-refundable substantive milestone payment due from Kissei upon the achievement of certain development activities during this period. In accordance with the Company’s revenue recognition policy, the Company recognizes the receipt of milestone payments in accordance with the milestone method in the period in which the underlying triggering event occurs. |
Purchase_Commitments
Purchase Commitments | 3 Months Ended | |
Mar. 31, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Purchase Commitments | ' | |
11 | Purchase Commitments | |
The Company is required to schedule its manufacturing activities in advance. If the Company cancels any of these scheduled activities without proper notice the Company would be required to pay penalties equal to the cost of the originally scheduled activity. The Company estimates that the cost of these penalties would be approximately $0.2 million at March 31, 2014 if the Company cancels the scheduled activities. The amounts recorded under this manufacturing contract included in research and development was $1.8 million and $0.9 million for the three months ended March 31, 2014 and 2013, respectively. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Correction of a Prior Period Misstatement | ' | |||
Correction of a Prior Period Misstatement | ||||
During the second quarter of 2013, the Company identified an error in the consolidated statement of cash flows for the three months ended March 31, 2013. The Company paid $454,000 of financing costs during the first quarter of 2013 which amounts were previously reflected as an operating cash outflow and should have been reflected as a financing cash outflow. The consolidated statement of cash flows for the three months ended March 31, 2013 included herein has been revised to reflect the Company’s correction of this error. There was no impact to the consolidated balance sheet, consolidated statement of operations and comprehensive loss or consolidated statement of changes in shareholders’ equity (deficit) as a result of this revision. The error was not considered material to the previously issued consolidated financial statements. | ||||
Basis of consolidation | ' | |||
Basis of consolidation | ||||
The condensed consolidated financial statements include the accounts of the Company, Sophiris Bio Corp. and Sophiris Bio Holding Corp. All intercompany balances and transactions have been eliminated for purposes of consolidation. | ||||
Basis of presentation and use of estimates | ' | |||
Basis of presentation and use of estimates | ||||
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States, or GAAP, for the interim financial information and the rules and regulations of the Securities and Exchange Commission, or SEC, related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual audited financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, or Annual Report, filed with the SEC. GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. The Company bases estimates and judgments on historical experience and on various other factors that it believes to be reasonable under the circumstances. The significant estimates in these condensed consolidated financial statements include revenue recognition, stock-based compensation expense, warrant liability, functional currency and accrued research and development expenses, including accruals related to the Company’s ongoing clinical trial. The Company’s actual results may differ from these estimates. The Company evaluates its estimates on an ongoing basis. Changes in estimates are reflected in reported results in the period in which they become known by the Company’s management. In the opinion of management, these condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. | ||||
Foreign currency | ' | |||
Foreign currency | ||||
Functional currency | ||||
Prior to August 2013 the functional currency of Sophiris Bio Inc. had been the Canadian dollar and the functional currency of Sophiris Bio Corp. and Sophiris Bio Holding Corp. had been the U.S. dollar. Subsequent to the completion of the Company’s initial public offering on the NASDAQ Global Market, or NASDAQ, the Company reviewed the underlying indicators of the primary economic environment in which Sophiris Bio Inc. operates. Based upon this review, the Company determined that the functional currency of Sophiris Bio Inc. changed from the Canadian dollar to the U.S. dollar effective August 16, 2013, the date of the Company’s U.S. initial public offering. | ||||
Reclassification of Warrants | ||||
The change in the functional currency of Sophiris Bio Inc. to the U.S. dollar effective August 16, 2013 effects how the Company accounts for its previously issued common share purchase warrants which have exercise prices denominated in Canadian dollars, a currency that is not the Company’s functional currency. Upon the change in functional currency, the Company calculated the fair value of its warrants with exercise prices in Canadian dollars utilizing the Black Scholes valuation model and classified the fair value as a long term liability in accordance with ASC 815, “Derivatives and Hedging”. The valuation of $1.6 million was calculated upon the change in functional currency. At each reporting period the Company will adjust the fair value of the warrant liability and any corresponding increase or decrease to the warrant liability will be recorded as a component of other income (expense) on the consolidated statement of operations and comprehensive loss. The estimated fair value is determined using the Black-Scholes valuation model based on the estimated value of the underlying common shares at the valuation measurement date, the remaining contractual term of the warrants, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common shares. | ||||
Warrant Liability | ||||
On January 31, 2014, the Company and Warburg Pincus Private Equity X, L.P. and Warburg Pincus X Partners, L.P. entered into an Omnibus Amendment to Common Share Purchase Warrants related to Warburg Pincus Private Equity X, L.P.’s and Warburg Pincus X Partners, L.P.’s 769,231 outstanding common share purchase warrants. On February 14, 2014, The Company and Oxford Finance LLC entered into an Omnibus Amendment to Warrants to Purchase Common Shares related to Oxford Finance LLC’s 26,971 outstanding common share purchase warrants. These amendments provided for the following: | ||||
(i) | the amendment of the exercise price and number of shares underlying each of the outstanding common share purchase warrants to reflect the 52-for-1 share consolidation effected by the Company on August 9, 2013; and | |||
(ii) | the amendment of the existing exercise price which is denominated in Canadian dollars to be restated into U.S. dollars. The agreement stipulates that the conversion of the exercise price will be completed utilizing the exchange rate in effect on the date of the issuance of each warrant. | |||
As a result of the conversion of the exercise prices from Canadian dollars to U.S. dollars the Company is no longer required to revalue the fair value of these warrants subsequent to their amendment. Upon the amendment of these common share purchase warrants the Company calculated a fair value on the date of their amendments using the Black-Scholes valuation model. As a result the Company recorded a $4,000 loss in its statement of operations and comprehensive loss which represents the change in the fair value of the common share purchase warrants from January 1, 2014 to the date of their amendments. The Company then reclassified the fair value as of the date of their amendments of $0.8 million for the amended common share purchase warrants from warrant liability to contributed surplus. | ||||
The Company continues to revalue at each reporting period 122,670 common share purchase warrants which continue to have exercise prices denominated in Canadian dollars. | ||||
Transactions and balances | ||||
Prior to the change in functional currency to U.S. dollars, all assets and liabilities of this entity were translated into U.S. dollars at the rate of exchange on the balance sheet date. Revenue and expense components were translated to U.S. dollars using the average exchange rate for the period. Gains and losses resulting from foreign currency translation are recorded in accumulated other comprehensive gain (loss), which is a separate component of stockholders’ equity. Foreign currency transaction gains and losses are recognized as a component of other income (expense), net. The Company recorded foreign exchange transaction losses of $16,000 and $0.1 million for the three months ended March 31, 2014 and 2013, respectively. | ||||
Cash and cash equivalents | ' | |||
Cash and cash equivalents | ||||
Cash equivalents are short-term, highly liquid investments with an original maturity of three months or less at the date of purchase. | ||||
Securities Available-for-Sale | ' | |||
Securities Available-for-Sale | ||||
Investments with an original maturity of more than three months when purchased have been classified by management as securities available-for-sale. Such investments are carried at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive gain (loss) in shareholders’ equity. Realized gains and losses on available-for-sale securities are included in interest income. No other-than-temporary impairments were identified for the investment securities held by the Company as of March 31, 2014 or December 31, 2013. The cost of investment securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in interest income. The cost of securities sold is based on the specific-identification method. The Company has classified all of its investment securities as available-for-sale, including those with maturities beyond one year, as current assets on the consolidated balance sheets based on the highly liquid nature of the investment securities and because these investment securities are considered available for use in current operations. | ||||
Revenue recognition | ' | |||
Revenue recognition | ||||
The Company may enter into product development agreements with collaborative partners for the research and development of products for the treatment of urological diseases. The terms of the agreements may include nonrefundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations. These multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. License fees are recognized as revenue when persuasive evidence of an arrangement exists, the fee is fixed or determinable, delivery or performance has substantially completed and collection is reasonably assured. | ||||
The Company recognizes up front license payments as revenue upon delivery of the license only if the license has stand-alone value to the customer and if the agreement includes a general right of return, the delivery or performance of undelivered items is considered probable and within the control of the Company. The payment is generally allocated to the separate units of accounting based on their relative selling prices. The selling price of each deliverable is determined using vendor specific objective evidence of selling prices, if it exists; otherwise, third-party evidence of selling prices. If neither vendor specific objective evidence nor third-party evidence exists, the Company uses its’ best estimate of the selling price for each deliverable. The payment allocated is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. | ||||
Whenever the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue recognized. If the Company cannot reasonably estimate the timing and the level of effort to complete its performance obligations under the arrangement, then revenue under the arrangement is recognized on a straight-line basis over the period the Company is expected to complete its performance obligations. | ||||
The Company evaluates milestone payments on an individual basis and recognizes revenue from non-refundable milestone payments when the earnings process is complete and the payment is reasonably assured. Non-refundable milestone payments related to arrangements under which the Company has continuing performance obligations are recognized as revenue upon achievement of the associated milestone, provided that (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (ii) the amount of the milestone payment is reasonable in relation to the effort expended or the risk associated with the milestone event. Any amounts received under agreements in advance of performance, if deemed substantive, are recorded as deferred revenue and recognized as revenue as the Company completes its performance obligations. A milestone event is considered substantive if (i) the milestone is commensurate with either (a) the Company’s performance to achieve the milestone or (b) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) it relates solely to past performance and (iii) it is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. If any portion of the milestone payment does not relate to the Company’s performance, does not relate solely to past performance or is refundable or adjustable based on future performance, the milestone is not considered to be substantive. Milestone payments are not bifurcated into substantive and non-substantive components. Payments related to the achievement of non-substantive milestones is deferred and recognized over the Company’s remaining performance period. | ||||
Royalty revenue will be recognized upon the sale of the related products provided the Company has no remaining performance obligations under the arrangement. | ||||
Research and development expenses | ' | |||
Research and development expenses | ||||
Research and development costs are charged to expense as incurred. Research and development expenses comprise costs incurred in performing research and development activities, including personnel-related costs, stock-based compensation, facilities, research-related overhead, clinical trial costs, contracted services, manufacturing, license fees and other external costs. The Company accounts for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been consumed rather than when the payment is made. | ||||
Accrued research and development expenses | ' | |||
Accrued research and development expenses | ||||
Clinical trial costs are recorded as a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services based on facts and circumstances known to the Company as of each balance sheet date. However, actual costs and timing of clinical trials are highly uncertain, subject to risks and may change depending upon a number of factors, including the Company’s clinical development plan. The process of estimating clinical trial costs may become more complex as the Company’s ongoing and planned Phase 3 clinical trials will involve larger numbers of patients and clinical sites. | ||||
If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Adjustments to prior period estimates have not been material. | ||||
Examples of estimated accrued research and development expenses include: | ||||
• | fees paid to clinical research organizations in connection with clinical studies; | |||
• | fees paid to investigative sites in connection with clinical studies; | |||
• | fees paid to vendors in connection with preclinical development activities; | |||
• | fees paid to vendors associated with the development of companion diagnostics; and | |||
• | fees paid to vendors related to product manufacturing, development and distribution of clinical supplies. | |||
Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are recorded as a prepaid expense and recognized as expense in the period that the related goods are consumed or services are performed. | ||||
Stock-based compensation | ' | |||
Stock-based compensation | ||||
The Company expenses the fair value of employee stock options over the vesting period. Compensation expense is measured using the fair value of the award at the grant date, net of estimated forfeitures, and is adjusted annually to reflect actual forfeitures. The fair value of each stock-based award is estimated using the Black-Scholes valuation model and is expensed using graded amortization over the vesting period. | ||||
The Company accounts for stock options granted to non-employees, which primarily consist of members of the Company’s scientific advisory board and consultants, using the fair value approach. Stock options granted to non-employees are subject to revaluation each reporting period over their vesting terms. | ||||
Historically the Company has issued its stock options with a Canadian dollar denominated exercise price. Subsequent to the Company’s initial public offering on the NASDAQ, the Company has issued its stock options with an U.S. dollar denominated exercise price. | ||||
Effective November 13, 2013, the Company voluntarily delisted from the Toronto Stock Exchange, or TSX. Subsequent to November 13, 2013, the Company’s securities are being actively traded on only the NASDAQ. | ||||
As a result of the delisting from the TSX and the change in the Company’s functional currency to the U.S. dollar, the stock options granted with exercise prices denominated in Canadian dollars are now considered dual indexed as defined in ASC 718, “Compensation, Stock Compensation”. As a result of the stock options being dual indexed the Company is required to account for these stock options as a liability. Historically these options had been accounted for as equity. The estimated fair value is determined using the Black-Scholes valuation model based on the estimated value of the underlying common shares at the valuation measurement date, the remaining service period of the stock options, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common shares. The fair value of the stock-based compensation liability was $181,000 at March 31, 2014. As the calculated fair value of the stock options at March 31, 2014 was less than the original grant date fair value no additional compensation expense was recorded in the consolidated statement of operations and comprehensive loss. The change in the fair value of the stock-based compensation liability from December 31, 2013 to March 31, 2014 of $21,000 was recorded as an adjustment to Contributed Surplus. | ||||
Fair value of financial instruments | ' | |||
Fair value of financial instruments | ||||
The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid for to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, investments securities classified as available-for-sale and accounts payable and accrued expenses, approximate fair value due to their short maturities. | ||||
The Company follows ASC 820-10, “Fair Value Measurements and Disclosures,” which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: | ||||
Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||
Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | ||||
Level 3 – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
Net_loss_per_common_share_Tabl
Net loss per common share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Potentially Dilutive Securities Excluded from Computation of Weighted-Average Shares Outstanding | ' | ||||||||
The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of the three months ended March 31, 2014 and 2013 as the Company recorded a net loss in all periods and, therefore, they would be anti-dilutive (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Options to purchase common shares | 1,374 | 301 | |||||||
Common share purchase warrants | 919 | 919 |
Securities_AvailableforSale_Ta
Securities Available-for-Sale (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Schedule of Securities Available-for-Sale | ' | ||||||||||||||||
Securities available-for-sale consisted of the following as of March 31, 2014 (in thousands): | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Amortized | Unrealized | Estimated | |||||||||||||||
Cost | Gain | Loss | Fair Value | ||||||||||||||
Commercial paper | $ | 3,799 | $ | — | $ | — | $ | 3,799 | |||||||||
U.S. government sponsored enterprise securities | 12,458 | 1 | (3 | ) | 12,456 | ||||||||||||
Corporate debt securities | 5,386 | 3 | — | 5,389 | |||||||||||||
$ | 21,643 | $ | 4 | $ | (3 | ) | $ | 21,644 | |||||||||
Securities available-for-sale consisted of the following as of December 31, 2013 (in thousands): | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Unrealized | Estimated | |||||||||||||||
Cost | Gain | Loss | Fair Value | ||||||||||||||
Commercial paper | $ | 9,798 | $ | — | $ | — | $ | 9,798 | |||||||||
U.S. government sponsored enterprise securities | 17,007 | 2 | (4 | ) | 17,005 | ||||||||||||
Corporate debt securities | 6,506 | 2 | (1 | ) | 6,507 | ||||||||||||
$ | 33,311 | $ | 4 | $ | (5 | ) | $ | 33,310 | |||||||||
Schedule of Amortized Cost and Estimated Fair Value of Company Securities Available-for-Sale by Contractual Maturity | ' | ||||||||||||||||
The amortized cost and estimated fair value of the Company securities available-for-sale by contractual maturity as of March 31, 2014 are shown below (in thousands): | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Amortized | Unrealized | Estimated | |||||||||||||||
Cost | Gain | Loss | Fair Value | ||||||||||||||
Within one year | $ | 21,120 | $ | 3 | $ | (3 | ) | $ | 21,120 | ||||||||
After one year | 523 | 1 | — | 524 | |||||||||||||
$ | 21,643 | $ | 4 | $ | (3 | ) | $ | 21,644 | |||||||||
The amortized cost and estimated fair value of the Company securities available-for-sale by contractual maturity as of December 31, 2013 are shown below (in thousands): | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Unrealized | Estimated | |||||||||||||||
Cost | Gain | Loss | Fair Value | ||||||||||||||
Within one year | $ | 30,430 | $ | 2 | $ | (4 | ) | $ | 30,428 | ||||||||
After one year | 2,881 | 2 | (1 | ) | 2,882 | ||||||||||||
$ | 33,311 | $ | 4 | $ | (5 | ) | $ | 33,310 |
Fair_value_measurement_and_fin1
Fair value measurement and financial instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis for the periods presented (in thousands): | |||||||||||||||||
March 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 3,107 | $ | 3,107 | $ | — | $ | — | |||||||||
Commercial paper | 16,888 | — | 16,888 | — | |||||||||||||
U.S. government sponsored enterprise securities | 12,456 | — | 12,456 | — | |||||||||||||
Corporate debt securities | 5,389 | — | 5,389 | — | |||||||||||||
Total assets | $ | 37,840 | $ | 3,107 | $ | 34,733 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Warrant liability | $ | 20 | $ | — | $ | — | $ | 20 | |||||||||
Stock-based compensation liability | 181 | — | — | 181 | |||||||||||||
Total liabilities | $ | 201 | $ | — | $ | — | $ | 201 | |||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 55 | $ | 55 | $ | — | $ | — | |||||||||
Commercial paper | 23,570 | — | 23,570 | — | |||||||||||||
U.S. government sponsored enterprise securities | 17,005 | — | 17,005 | — | |||||||||||||
Corporate debt securities | 6,507 | — | 6,507 | — | |||||||||||||
Total assets | $ | 47,137 | $ | 55 | $ | 47,082 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Warrant liability | $ | 883 | $ | — | $ | — | $ | 883 | |||||||||
Stock-based compensation liability | 202 | — | — | 202 | |||||||||||||
Total liabilities | $ | 1,085 | $ | — | $ | — | $ | 1,085 | |||||||||
Warrant liability [Member] | ' | ||||||||||||||||
Inputs Utilized in Black-Scholes Valuation Model for Recognition of Liability (Level 3) | ' | ||||||||||||||||
The Company calculates the fair value of the common share purchase warrants (level 3) at each reporting period utilizing a Black-Scholes valuation model. The following inputs were utilized in the Black-Scholes valuation model: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Stock price | $ | 3.33 | $ | 3.7 | |||||||||||||
Weighted average exercise price | $ | 30.57 | $ | 25.45 | |||||||||||||
Risk-free interest rate | 0.13 | % | 0.62 | % | |||||||||||||
Volatility | 126.69 | % | 115.09 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Expected life in years | 0.96 | 2.51 | |||||||||||||||
Reconciliation of Liability Measured at Fair Value Using Unobservable Inputs (Level 3) | ' | ||||||||||||||||
The following table presents a reconciliation of the warrant liability measured at fair value using unobservable inputs (Level 3) (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Liabilities: | |||||||||||||||||
Balance at beginning of period: | $ | 883 | |||||||||||||||
Reclassification of fair value of warrant liability to equity as a result of the amendment of the underlying common share purchase warrants | (834 | ) | |||||||||||||||
Change in fair value of warrant liability included in other income (expense), net | (29 | ) | |||||||||||||||
Balance at end of period: | $ | 20 | |||||||||||||||
Stock-based compensation liability [Member] | ' | ||||||||||||||||
Inputs Utilized in Black-Scholes Valuation Model for Recognition of Liability (Level 3) | ' | ||||||||||||||||
The Company calculates the fair value of the stock-based compensation liability (level 3) at each reporting period utilizing a Black-Scholes valuation model. The following inputs were utilized in the Black-Scholes valuation model: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Stock price | $ | 3.33 | $ | 3.7 | |||||||||||||
Weighted average exercise price | $ | 17.00 | $ | 17.66 | |||||||||||||
Risk-free interest rate | 0.97 | % | 1 | % | |||||||||||||
Volatility | 93.99 | % | 94.53 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Expected life in years | 3.17 | 3.42 | |||||||||||||||
Reconciliation of Liability Measured at Fair Value Using Unobservable Inputs (Level 3) | ' | ||||||||||||||||
The following table presents a reconciliation of the stock-based compensation liability measured at fair value using unobservable inputs (Level 3) (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Liabilities: | |||||||||||||||||
Balance at beginning of period: | $ | 202 | |||||||||||||||
Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus | (21 | ) | |||||||||||||||
Balance at end of period: | $ | 181 | |||||||||||||||
Prepaid_expenses_Tables
Prepaid expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Components of Prepaid Expenses | ' | ||||||||
Prepaid expenses as of March 31, 2014 and December 31, 2013 consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Prepaid insurance | $ | 204 | $ | 292 | |||||
Prepaid research and development expenses | 3,576 | 3,218 | |||||||
Other prepaid expenses | 102 | 88 | |||||||
$ | 3,882 | $ | 3,598 | ||||||
Accrued_expenses_Tables
Accrued expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Components of Accrued Expenses | ' | ||||||||
Accrued expenses as of March 31, 2014 and December 31, 2013 consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued personnel related costs | $ | 471 | $ | 1,063 | |||||
Accrued interest | 37 | 50 | |||||||
Accrued research and development expenses | 410 | 713 | |||||||
Other accrued expenses | 175 | 355 | |||||||
$ | 1,093 | $ | 2,181 |
Promissory_notes_Tables
Promissory notes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Secured Promissory Note | ' | ||||||||
The roll forward of the secured promissory note is calculated as follows (in thousands): | |||||||||
Balance at December 31, 2013 | 6,877 | ||||||||
Accretion of debt discount | 68 | ||||||||
Principal paid | (1,661 | ) | |||||||
Balance at March 31, 2014 | $ | 5,284 | |||||||
Actual Interest Expenses and Amortization of Debt Discount | ' | ||||||||
The following table shows actual interest expensed and amortization of the debt discount that was charged to interest expense (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Simple interest | $ | 123 | $ | 258 | |||||
Accretion of debt discount | 68 | 109 | |||||||
Amortization of promissory notes issuance costs | 17 | 32 | |||||||
$ | 208 | $ | 399 | ||||||
Stockbased_compensation_plan_T
Stock-based compensation plan (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||
Schedule of Recognized Stock-Based Compensation Expense | ' | ||||||||||||
The Company recognized stock-based compensation expense as follows (in thousands): | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Research and development | $ | 192 | $ | 64 | |||||||||
General and administrative | 417 | 188 | |||||||||||
Total | $ | 609 | $ | 252 | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||
The fair values of options granted during the three months ended March 31, 2014 and 2013 were estimated at the date of grant using the following weighted-average assumptions: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Expected life of the option term (years) | 3.8 | 3.9 | |||||||||||
Risk-free interest rate | 1.3 | % | 1.4 | % | |||||||||
Dividend rate | 0 | % | 0 | % | |||||||||
Volatility | 77.3 | % | 65 | % | |||||||||
Forfeiture rate | 4.4 | % | 8.8 | % | |||||||||
Summary of Stock Option Activity | ' | ||||||||||||
The following table summarizes stock option activity, including options issued to employees, directors and non-employees (in thousands, except per share): | |||||||||||||
Options | Weighted | Currency | |||||||||||
outstanding | average | ||||||||||||
exercise | |||||||||||||
price | |||||||||||||
Outstanding at January 1, 2014 | 1,362 | $ | 7.1 | US | |||||||||
Options granted | 19 | 3.53 | US | ||||||||||
Options forfeited | (7 | ) | 28.69 | CND | |||||||||
Outstanding at March 31, 2014 | 1,374 | $ | 6.93 | US |
Summary_of_significant_account2
Summary of significant accounting policies - Additional Information (Detail) (USD $) | 3 Months Ended | 147 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Feb. 14, 2014 | Jan. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Prior period misstatement | ' | $454,000 | ' | ' | ' |
Number of common stock outstanding warrants | ' | ' | ' | 26,971 | 769,231 |
Description of consolidation effect | '52-for-1 share consolidation | ' | ' | ' | ' |
Number of warrants | 122,670 | ' | 122,670 | ' | ' |
Foreign exchange transaction losses | -16,000 | -124,000 | 1,425,000 | ' | ' |
Maturity for highly liquid investments | 'Maturity of three months or less | ' | ' | ' | ' |
Fair value of stock-based compensation liability | 181,000 | ' | ' | ' | ' |
Change in fair value of Stock-based Compensation Liability | 20,000 | ' | ' | ' | ' |
Additional compensation expense | 0 | ' | ' | ' | ' |
Other Income (Expense), Net [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Foreign exchange transaction losses | 16,000 | 100,000 | ' | ' | ' |
Common Share Purchase Warrants [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Fair value of Common Share Purchase warrants upon the change of functional currency | 1,600,000 | ' | 1,600,000 | ' | ' |
Reclassification of fair value of warrant liability | 800,000 | ' | ' | ' | ' |
Contributed surplus (loss) from statement of operations and comprehensive loss | $4,000 | ' | ' | ' | ' |
Net_loss_per_common_share_Pote
Net loss per common share - Potentially Dilutive Securities Excluded from Computation of Weighted-Average Shares Outstanding (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Common share purchase options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from computation of weighted-average shares outstanding | 1,374 | 301 |
Common Share Purchase Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from computation of weighted-average shares outstanding | 919 | 919 |
Securities_AvailableforSale_Sc
Securities Available-for-Sale - Schedule of Securities Available-for-Sale (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities available-for-sale, Amortized Cost | $21,643 | $33,311 |
Securities available-for-sale, Unrealized Gain | 4 | 4 |
Securities available-for-sale, Unrealized Loss | -3 | -5 |
Securities available-for-sale, Estimated Fair Value | 21,644 | 33,310 |
Commercial paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities available-for-sale, Amortized Cost | 3,799 | 9,798 |
Securities available-for-sale, Unrealized Gain | ' | ' |
Securities available-for-sale, Unrealized Loss | ' | ' |
Securities available-for-sale, Estimated Fair Value | 3,799 | 9,798 |
U.S. government sponsored enterprise securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities available-for-sale, Amortized Cost | 12,458 | 17,007 |
Securities available-for-sale, Unrealized Gain | 1 | 2 |
Securities available-for-sale, Unrealized Loss | -3 | -4 |
Securities available-for-sale, Estimated Fair Value | 12,456 | 17,005 |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities available-for-sale, Amortized Cost | 5,386 | 6,506 |
Securities available-for-sale, Unrealized Gain | 3 | 2 |
Securities available-for-sale, Unrealized Loss | ' | -1 |
Securities available-for-sale, Estimated Fair Value | $5,389 | $6,507 |
Securities_AvailableforSale_Sc1
Securities Available-for-Sale - Schedule of Amortized Cost and Estimated Fair Value of Company Securities Available-for-Sale by Contractual Maturity (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities available-for-sale, Amortized Cost | $21,643 | $33,311 |
Securities available-for-sale, Unrealized Gain | 4 | 4 |
Securities available-for-sale, Unrealized Loss | -3 | -5 |
Securities available-for-sale, Estimated Fair Value | 21,644 | 33,310 |
Within one year [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities available-for-sale, Amortized Cost | 21,120 | 30,430 |
Securities available-for-sale, Unrealized Gain | 3 | 2 |
Securities available-for-sale, Unrealized Loss | -3 | -4 |
Securities available-for-sale, Estimated Fair Value | 21,120 | 30,428 |
After one year [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities available-for-sale, Amortized Cost | 523 | 2,881 |
Securities available-for-sale, Unrealized Gain | 1 | 2 |
Securities available-for-sale, Unrealized Loss | ' | -1 |
Securities available-for-sale, Estimated Fair Value | $524 | $2,882 |
Fair_value_measurement_and_fin2
Fair value measurement and financial instruments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets | $37,840 | $47,137 |
Maturity period of marketable securities | '3 months 15 days | ' |
Minimum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Maturity period of marketable securities | '1 day | ' |
Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Maturity period of marketable securities | '12 months | ' |
Fair_value_measurement_and_fin3
Fair value measurement and financial instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Fair value of assets | $37,840 | $47,137 |
Liabilities: | ' | ' |
Liability fair value | 201 | 1,085 |
Warrant liability [Member] | ' | ' |
Liabilities: | ' | ' |
Liability fair value | 20 | 883 |
Stock-based compensation liability [Member] | ' | ' |
Liabilities: | ' | ' |
Liability fair value | 181 | 202 |
Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 3,107 | 55 |
Commercial paper [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 16,888 | 23,570 |
U.S. government sponsored enterprises securities [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 12,456 | 17,005 |
Corporate debt securities [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 5,389 | 6,507 |
Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 3,107 | 55 |
Liabilities: | ' | ' |
Liability fair value | ' | ' |
Level 1 [Member] | Warrant liability [Member] | ' | ' |
Liabilities: | ' | ' |
Liability fair value | ' | ' |
Level 1 [Member] | Stock-based compensation liability [Member] | ' | ' |
Liabilities: | ' | ' |
Liability fair value | ' | ' |
Level 1 [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 3,107 | 55 |
Level 1 [Member] | Commercial paper [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Level 1 [Member] | U.S. government sponsored enterprises securities [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Level 1 [Member] | Corporate debt securities [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 34,733 | 47,082 |
Liabilities: | ' | ' |
Liability fair value | ' | ' |
Level 2 [Member] | Warrant liability [Member] | ' | ' |
Liabilities: | ' | ' |
Liability fair value | ' | ' |
Level 2 [Member] | Stock-based compensation liability [Member] | ' | ' |
Liabilities: | ' | ' |
Liability fair value | ' | ' |
Level 2 [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Level 2 [Member] | Commercial paper [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 16,888 | 23,570 |
Level 2 [Member] | U.S. government sponsored enterprises securities [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 12,456 | 17,005 |
Level 2 [Member] | Corporate debt securities [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | 5,389 | 6,507 |
Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Liabilities: | ' | ' |
Liability fair value | 201 | 1,085 |
Level 3 [Member] | Warrant liability [Member] | ' | ' |
Liabilities: | ' | ' |
Liability fair value | 20 | 883 |
Level 3 [Member] | Stock-based compensation liability [Member] | ' | ' |
Liabilities: | ' | ' |
Liability fair value | 181 | 202 |
Level 3 [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Level 3 [Member] | Commercial paper [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Level 3 [Member] | U.S. government sponsored enterprises securities [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Level 3 [Member] | Corporate debt securities [Member] | ' | ' |
Assets: | ' | ' |
Fair value of assets | ' | ' |
Fair_value_measurement_and_fin4
Fair value measurement and financial instruments - Inputs Utilized in Black-Scholes Valuation Model for Recognition of Liability (Level 3) (Detail) (Level 3 [Member], USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Warrant liability [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock price | $3.33 | $3.70 |
Weighted average exercise price | $30.57 | $25.45 |
Risk-free interest rate | 0.13% | 0.62% |
Volatility | 126.69% | 115.09% |
Dividend yield | 0.00% | 0.00% |
Expected life in years | '11 months 16 days | '2 years 6 months 4 days |
Stock-based compensation liability [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock price | $3.33 | $3.70 |
Weighted average exercise price | $17 | $17.66 |
Risk-free interest rate | 0.97% | 1.00% |
Volatility | 93.99% | 94.53% |
Dividend yield | 0.00% | 0.00% |
Expected life in years | '3 years 2 months 1 day | '3 years 5 months 1 day |
Fair_value_measurement_and_fin5
Fair value measurement and financial instruments - Reconciliation of Liability Measured at Fair Value Using Unobservable Inputs (Level 3) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Liabilities: | ' |
Reclassification of fair value of warrant liability to equity as a result of the amendment of the underlying common share purchase warrants | ($834) |
Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus | -20 |
Warrant liability [Member] | ' |
Liabilities: | ' |
Balance at beginning of period: | 883 |
Reclassification of fair value of warrant liability to equity as a result of the amendment of the underlying common share purchase warrants | -834 |
Change in fair value of warrant liability included in other income (expense), net | -29 |
Balance at end of period: | 20 |
Stock-based compensation liability [Member] | ' |
Liabilities: | ' |
Balance at beginning of period: | 202 |
Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus | -20 |
Balance at end of period: | $181 |
Prepaid_expenses_Components_of
Prepaid expenses - Components of Prepaid Expenses (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expense And Other Assets Current [Abstract] | ' | ' |
Prepaid insurance | $204 | $292 |
Prepaid research and development expenses | 3,576 | 3,218 |
Other prepaid expenses | 102 | 88 |
Prepaid expenses | $3,882 | $3,598 |
Prepaid_expenses_Additional_In
Prepaid expenses - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Prepaid Expense And Other Assets Current [Abstract] | ' | ' |
Upfront fees included in prepaid research and development expenses | $3.10 | $2.70 |
Accrued_expenses_Components_of
Accrued expenses - Components of Accrued Expenses (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accrued personnel related costs | $471 | $1,063 |
Accrued interest | 37 | 50 |
Accrued research and development expenses | 410 | 713 |
Other accrued expenses | 175 | 355 |
Accrued expenses, Total | $1,093 | $2,181 |
Promissory_notes_Summary_of_Se
Promissory notes - Summary of Secured Promissory Note (Detail) (USD $) | 3 Months Ended | 147 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ' | ' | ' |
Balance at December 31, 2013 | $6,877 | ' | ' |
Accretion of debt discount | 68 | 109 | 1,178 |
Principal paid | -1,661 | ' | ' |
Balance at March 31, 2014 | $5,284 | ' | $5,284 |
Promissory_notes_Additional_In
Promissory notes - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Debt Instrument [Line Items] | ' |
Promissory notes maturity date | 30-Nov-14 |
Total remaining payments due | $5.50 |
Final payment of promissory notes | 0.8 |
Rate of interest on promissory notes | 11.00% |
Percentage of warrant coverage | 6.00% |
Oxford loan [Member] | ' |
Debt Instrument [Line Items] | ' |
Loan interest rate | 9.50% |
Promissory notes [Member] | Level 3 [Member] | ' |
Debt Instrument [Line Items] | ' |
Fair value of secured promissory notes | $4.40 |
Promissory_notes_Actual_Intere
Promissory notes - Actual Interest Expenses and Amortization of Debt Discount (Detail) (USD $) | 3 Months Ended | 147 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ' | ' | ' |
Simple interest | $123 | $258 | ' |
Accretion of debt discount | 68 | 109 | 1,178 |
Amortization of promissory notes issuance costs | 17 | 32 | 348 |
Interest expensed and amortization of debt discount | $208 | $399 | ' |
Stockbased_compensation_plan_S
Stock-based compensation plan - Schedule of Recognized Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 147 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $609 | $252 | $6,120 |
Research and development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 192 | 64 | ' |
General and administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $417 | $188 | ' |
Stockbased_compensation_plan_A
Stock-based compensation plan - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Unrecognized compensation costs related to non-vested stock awards | $2 | $0.90 |
Unrecognized compensation costs, weighted average recognized period | '1 year 3 months 18 days | '1 year 6 months |
Stockbased_compensation_plan_S1
Stock-based compensation plan - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Expected life of the option term (years) | '3 years 9 months 18 days | '3 years 10 months 24 days |
Risk-free interest rate | 1.30% | 1.40% |
Dividend rate | 0.00% | 0.00% |
Volatility | 77.30% | 65.00% |
Forfeiture rate | 4.40% | 8.80% |
Stockbased_compensation_plan_S2
Stock-based compensation plan - Summary of Stock Option Activity (Detail) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | CAD | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding [Roll Forward] | ' | ' |
Options outstanding, Beginning balance | 1,362 | 1,362 |
Options outstanding, Options granted | 19 | 19 |
Options outstanding, Options forfeited | -7 | -7 |
Options outstanding, Ending balance | 1,374 | 1,374 |
Weighted average exercise price, Options outstanding, Beginning balance | $7.10 | ' |
Weighted average exercise price, Options granted | $3.53 | ' |
Weighted average exercise price, Options forfeited | ' | 28.69 |
Weighted average exercise price, Options outstanding, Ending balance | $6.93 | ' |
Kissei_Agreement_Additional_In
Kissei Agreement - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended |
Apr. 30, 2010 | Mar. 31, 2013 | |
Revenue Recognition, Milestone Method [Line Items] | ' | ' |
Non-refundable substantive milestone payment | ' | $5,000,000 |
Kissei Pharmaceuticals Co., Ltd., [Member] | ' | ' |
Revenue Recognition, Milestone Method [Line Items] | ' | ' |
Upfront license payment | 3,000,000 | ' |
Non-refundable substantive milestone payment | ' | $5,000,000 |
Purchase_Commitments_Additiona
Purchase Commitments - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' |
Purchase commitment penalty | $0.20 | ' |
Manufacturing contract [Member] | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' |
Purchase commitments | $1.80 | $0.90 |