Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Entity Registrant Name | SOPHIRIS BIO INC. | |
Entity Central Index Key | 1,563,855 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 16,844,736 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 7,994,000 | $ 4,123,000 |
Securities available-for-sale | 5,226,000 | 18,572,000 |
Other receivables | 7,000 | 16,000 |
Prepaid expenses | 2,294,000 | 2,825,000 |
Total current assets | 15,521,000 | 25,536,000 |
Property and equipment, net | 26,000 | 36,000 |
Other long-term assets | 19,000 | 19,000 |
Total assets | 15,566,000 | 25,591,000 |
Current liabilities: | ||
Accounts payable | 776,000 | 2,633,000 |
Accrued expenses | 1,659,000 | 2,307,000 |
Current portion of promissory notes | 1,526,000 | 598,000 |
Total current liabilities | 3,961,000 | 5,538,000 |
Long-term promissory notes | 4,484,000 | 5,343,000 |
Stock-based compensation liability | 53,000 | 22,000 |
Total liabilities | $ 8,498,000 | $ 10,903,000 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common shares, unlimited authorized shares, no par value; 16,844,736 shares issued and outstanding at June 30, 2015 and December 31, 2014 | $ 113,095,000 | $ 113,095,000 |
Contributed surplus | 17,475,000 | 17,053,000 |
Accumulated other comprehensive gain | 100,000 | 99,000 |
Accumulated deficit | (123,602,000) | (115,559,000) |
Total shareholders’ equity | 7,068,000 | 14,688,000 |
Total liabilities and shareholders’ equity | $ 15,566,000 | $ 25,591,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Common shares, authorized shares (in shares) | ||
Common shares, shares issued (in shares) | 16,844,736 | 16,844,736 |
Common shares, shares outstanding (in shares) | 16,844,736 | 16,844,736 |
Common shares, par value (in dollars per share) | $ 0 | $ 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating expenses: | ||||
Research and development | $ 2,557 | $ 7,088 | $ 5,638 | $ 13,918 |
General and administrative | 997 | 1,495 | 2,045 | 2,946 |
Total operating expenses | 3,554 | 8,583 | 7,683 | 16,864 |
Other income (expense): | ||||
Interest expense | (177) | (168) | (354) | (376) |
Interest income | $ 6 | 12 | $ 14 | 30 |
Gain on revaluation of warrant liability | 20 | 49 | ||
Other expense | $ (13) | (31) | $ (20) | (48) |
Total other expense | (184) | (167) | (360) | (345) |
Net loss | $ (3,738) | $ (8,750) | $ (8,043) | $ (17,209) |
Basic and diluted loss per share (in dollars per share) | $ (0.22) | $ (0.53) | $ (0.48) | $ (1.05) |
Weighted average number of outstanding shares – basic and diluted (in shares) | 16,845 | 16,493 | 16,845 | 16,323 |
Other comprehensive income (loss): | ||||
Unrealized (loss) gain on securities available-for-sale | $ (1) | $ 1 | $ 1 | $ 4 |
Total other comprehensive loss | $ (3,739) | $ (8,749) | $ (8,042) | $ (17,205) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows used in operating activities | ||
Net loss for the period | $ (8,043,000) | $ (17,209,000) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Stock-based compensation | 454,000 | 1,153,000 |
Amortization of debt discount | 69,000 | 123,000 |
Depreciation of property and equipment | $ 10,000 | 37,000 |
Amortization of promissory note issuance costs | 38,000 | |
Amortization of discount on securities available-for-sale | $ 1,000 | 30,000 |
Change in fair value warrant liability | (49,000) | |
Foreign exchange transaction loss | $ 20,000 | 11,000 |
Other | 3,000 | |
Changes in operating assets and liabilities: | ||
Other receivables | $ 9,000 | 33,000 |
Prepaid expenses | 532,000 | 550,000 |
Accounts payable | (1,870,000) | 2,196,000 |
Accrued expenses | (647,000) | (330,000) |
Net cash used in operating activities | $ (9,465,000) | (13,414,000) |
Cash flows provided by investing activities | ||
Purchases of property and equipment | (3,000) | |
Maturities of securities available-for-sale | $ 18,369,000 | 30,401,000 |
Purchases of securities available-for-sale | (5,024,000) | (11,496,000) |
Net cash provided by investing activities | $ 13,345,000 | 18,902,000 |
Cash flows provided in financing activities | ||
Issuance of common shares from private placement, net of issuance cost | 1,984,000 | |
Payment of issuance costs in connection with public offering | (53,000) | |
Cash received from the issuance of promissory notes | 2,362,000 | |
Principal payments on promissory notes | (3,361,000) | |
Net cash provided in financing activities | 932,000 | |
Effect of exchange rate changes on cash and cash equivalents | $ (9,000) | (4,000) |
Net increase in cash and cash equivalents | 3,871,000 | 6,416,000 |
Cash and cash equivalents at beginning of period | 4,123,000 | 14,839,000 |
Cash and cash equivalents at end of period | $ 7,994,000 | 21,255,000 |
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 | 834,000 | |
Value of warrants issued in connection with promissory notes | 124,000 | |
Change in the fair value of stock-based compensation liability recorded to contributed surplus | $ 31,000 | $ (118,000) |
Note 1 - Nature of the Business
Note 1 - Nature of the Business | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of the business Company Sophiris Bio Inc., or the Company, or Sophiris, is a clinical-stage biopharmaceutical company currently developing PRX302 for treatment of the symptoms of benign prostatic hyperplasia, or BPH, commonly referred to as an enlarged prostate and for the treatment of localized low to intermediate risk prostate cancer. The Company is governed by the British Columbia Business Corporations Act. 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. The 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. Liquidity The condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company expects that its cash, cash equivalents and securities available-for-sale as of June 30, 2015 will be sufficient to fund its operations through the end of April 2016. If the Company is unable to raise additional capital to fund its development program efforts beyond its ongoing clinical trials in sufficient amounts or on terms acceptable to it, the Company may have to significantly delay, scale back or discontinue the development and commercialization of PRX302. The Company has incurred significant operating losses since inception and has relied on its ability to fund its operations through private and public equity financings and debt financings. The Company incurred net losses of $3.7 million and $8.0 million for the three and six months June 30, 2015, respectively, and $8.8 million and $17.2 million for the three and six months ended June 30, 2014, respectively. The Company used $9.5 million of cash in operations for the six months ended June 30, 2015, and $13.4 million for the six months ended June 30, 2014. At June 30, 2015 and December 31, 2014, the Company had $13.2 million and $22.7 million, respectively, in cash, cash equivalents and securities available-for-sale. Any clinical development efforts beyond the Company’s ongoing Phase 3 clinical trial in BPH and its ongoing Phase 2a proof of concept clinical trial in localized low to intermediate risk prostate cancer will require additional funding. The Company has historically financed its operations through public or private equity offerings, debt financings or strategic partnerships and alliances and licensing arrangements, as well as through interest income earned on cash balances. Subject to limited exceptions, the Company’s Loan and Security Agreement with Oxford Finance LLC, or Oxford, prohibits the Company from incurring indebtedness without the prior written consent of Oxford. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 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: Basis of consolidation The 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 on March 10, 2015 and the Company’s Current Report on Form 8-K on April 27, 2015. The accompanying year-end condensed balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. 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. 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 stock-based compensation expense, warrant liability and accrued research and development expenses, including accruals related to the Company’s ongoing clinical trials. 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. Foreign currency Historically gains and losses resulting from foreign currency translation were 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 expense. The Company recorded foreign exchange transaction losses of $13,000 and $20,000 for the three and six months ended June 30, 2015, respectively, and $29,000 and $45,000 for the three and six months ended June 30, 2014, 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 and declines in value judged to be other-than-temporary 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 June 30, 2015 or December 31, 2014. 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 of the total work 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. 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 pricing 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 consultants of the Company, using the fair value approach. Stock options granted to non-employees are subject to revaluation each reporting period over their vesting terms. Prior to the Company’s initial public offering, or IPO, the Company had issued its stock options with a Canadian dollar denominated exercise price. Subsequent to the Company’s IPO, the Company issues its stock options with a U.S. dollar denominated exercise price. Effective November 13, 2013, the Company voluntarily delisted from the Toronto Stock Exchange, or TSX. 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 considered dual indexed as defined in Accounting Standards Codification, or ASC, topic 718, “ Compensation, Stock Compensation” 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 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 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. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, “Revenue from Contracts with Customers”. This guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance is effective for annual reporting periods beginning after December 15, 2017 and early adoption is permitted, but not before annual reporting period beginning after December 15, 2016. The Company will adopt this guidance on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this guidance. The Company is evaluating which transition approach to use and its impact, if any, on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The guidance outlines management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provides guidance on the related footnote disclosure. The amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statement disclosures. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. The guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, consistent with the presentation of a debt discount. The guidance is effective for annual reporting periods beginning after December 15, 2015 and interim periods thereafter. Early adoption is permitted. The Company will adopt this guidance on January 1, 2016. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statement disclosures. |
Note 3 - Net Loss Per Common Sh
Note 3 - Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 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 diluted securities have been excluded from the computation of diluted weighted-average shares outstanding as of June 30, 2015 and 2014 as the Company recorded a net loss in all periods and therefore they would be anti-dilutive (in thousands): June 30 , 2015 June 30 , 2014 Options to purchase common shares 1,677 1,386 Common share purchase warrants 878 1,001 |
Note 4 - Securities Available-f
Note 4 - Securities Available-for-Sale | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. Securities Available-for-Sale Securities available-for-sale consisted of the following as of June 30, 2015 (in thousands): June 30 , 2015 Amortized Unrealized Estimated Cost Gain Loss Fair Value Commercial paper $ 1,400 $ — $ — $ 1,400 U.S. government sponsored enterprise securities 3,826 — — 3,826 $ 5,226 $ — $ — $ 5,226 The amortized cost and estimated fair value of the Company securities available-for-sale by contractual maturity as of June 30, 2015 are shown below (in thousands): June 30 , 2015 Amortized Unrealized Estimated Cost Gain Loss Fair Value Within one year $ 5,226 $ — $ — $ 5,226 After one year — — — — $ 5,226 $ — $ — $ 5,226 Securities available-for-sale consisted of the following as of December 31, 2014 (in thousands): December 31, 2014 Amortized Unrealized Estimated Cost Gain Loss Fair Value Commercial paper $ 9,098 $ — $ — $ 9,098 U.S. government sponsored enterprise securities 6,308 — — 6,308 Corporate debt securities 3,166 — — 3,166 $ 18,572 $ — $ — $ 18,572 The amortized cost and estimated fair value of the Company securities available-for-sale by contractual maturity as of December 31, 2014 are shown below (in thousands): December 31, 2014 Amortized Unrealized Estimated Cost Gain Loss Fair Value Within one year $ 18,572 $ — $ — $ 18,572 After one year — — — — $ 18,572 $ — $ — $ 18,572 |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurement and Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. Fair value measurement and financial instruments As of June 30, 2015 the Company has $12.5 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 seven days to five months with an overall average time to maturity of 1.6 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): June 30 , 2015 Level 1 Level 2 Level 3 Assets: Money market funds $ 815 $ 815 $ — $ — Commercial paper 7,744 — 7,744 — U.S. government sponsored enterprise securities 3,926 — 3,926 — Total assets $ 12,485 $ 815 $ 11,670 $ — Liabilities: Stock-based compensation liability $ 53 $ — $ — $ 53 Total liabilities $ 53 $ — $ — $ 53 December 31, 2014 Level 1 Level 2 Level 3 Assets: Money market funds $ 99 $ 99 $ — $ — Commercial paper 12,398 — 12,398 — U.S. government sponsored enterprise securities 6,308 — 6,308 — Corporate debt securities 3,166 — 3,166 — Total assets $ 21,971 $ 99 $ 21,872 $ — Liabilities: Stock-based compensation liability $ 22 $ — $ — $ 22 Total liabilities $ 22 $ — $ — $ 22 The Company calculates the fair value of the stock-based compensation liability for those stock options with exercise prices denominated in Canadian Dollars (level 3) at each reporting period utilizing a Black-Scholes pricing model. The following inputs were utilized in the Black-Scholes pricing model: June 30 , 2015 December 31, 2014 Stock price at the end of each reporting period $ 0.78 $ 0.54 Weighted average exercise price $ 14.54 $ 15.83 Risk-free interest rate 0.66 % 0.88 % Volatility 163.19 % 138.38 % Dividend yield 0.00 % 0.00 % Expected life in years 2.03 2.49 Calculated fair value per stock option $ 0.24 $ 0.10 The following table presents a reconciliation of the stock-based compensation liability measured at fair value using unobservable inputs (Level 3) (in thousands): Six Months Ended June 30, 2015 2014 Liabilities: Balance at beginning of period $ 22 $ 202 Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus 31 (118 ) Balance at end of period $ 53 $ 84 The Company recognizes transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers of assets or liabilities between the fair value measurement classifications. |
Note 6 - Prepaid Expenses
Note 6 - Prepaid Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Prepaid Expenses and Other Assets [Text Block] | 6. Prepaid expenses Prepaid expenses as of June 30, 2015 and December 31, 2014 consisted of the following (in thousands): June 30 , December 31, 2015 2014 Prepaid insurance $ 58 $ 280 Prepaid research and development expenses 2,180 2,506 Other prepaid expenses 56 39 $ 2,294 $ 2,825 As of June 30, 2015 and December 31, 2014, prepaid research and development expenses includes $2.1 million and $2.5 million, respectively for upfront fees paid to the Company’s clinical research organizations assisting with the ongoing clinical trials. The upfront fees will be relieved in future periods based upon work completed. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. Accrued expenses Accrued expenses as of June 30, 2015 and December 31, 2014 consisted of the following (in thousands): June 30 , December 31, 2015 2014 Accrued personnel related costs $ 449 $ 846 Accrued interest 48 48 Accrued research and development expenses 945 1,279 Other accrued expenses 217 134 $ 1,659 $ 2,307 |
Note 8 - Promissory Notes
Note 8 - Promissory Notes | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Promissory notes On June 30, 2014, the Company entered into a $6.0 million Loan and Security Agreement with Oxford Finance LLC. The principal borrowed under the loan bears fixed interest of 9.504% per annum. The Company has the option to prepay the outstanding balance of the loan in full, subject to a prepayment fee of 1% to 3% depending upon when the prepayment occurs. Upon the final repayment of the loan on the maturity date, by prepayment, or upon acceleration, the Company shall pay Oxford an additional fee of 5% of the principal amount of $6.0 million. This additional fee is recorded as a debt discount and is being recognized as interest expense over the life of the loan utilizing the effective interest method. The repayment terms are monthly interest only payments through July 1, 2015 followed by 36 equal monthly payments of principal and interest. In connection with the loan, the Company granted to Oxford a security interest in all of the Company’s personal property now owned or hereafter acquired, excluding intellectual property and certain other assets. As of June 30, 2015, the Company was in compliance with all covenants under the loan. As of June 30, 2015, the future contractual principal and final fee payments on the Company’s debt obligation are as follows (in thousands): Year 1 $ 1,656 Year 2 1,978 Year 3 2,175 Year 4 491 Total $ 6,300 The following table summarizes interest expense (in thousands) for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Simple interest $ 142 $ 92 $ 285 $ 215 Amortization of debt discount 35 55 69 123 Amortization of promissory notes issuance costs - 21 - 38 $ 177 $ 168 $ 354 $ 376 The Company calculated the fair value of the secured promissory notes as $5.9 million (Level 3) as of June 30, 2015. 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 9.5%, which takes into consideration the financial position of the Company and the recent interest rate environment for new debt issuances for comparable companies. 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. |
Note 9 - Common Stock Purchase
Note 9 - Common Stock Purchase Agreement with Aspire Capital | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. Common stock purchase agreement with Aspire Capital On May 16, 2014, the Company entered into a common stock purchase agreement, or the Purchase Agreement, with Aspire Capital Fund, LLC, or Aspire Capital, which provides that Aspire Capital is committed to purchase up to an aggregate of $15.0 million of the Company’s common shares over the approximately 30-month term of the Purchase Agreement. In consideration for entering into the Purchase Agreement, concurrently with the execution of the Purchase Agreement, the Company issued to Aspire Capital 90,635 of the Company’s common shares. Upon the execution of the Purchase Agreement, the Company sold to Aspire Capital 604,230 common shares at $3.31 per share for net proceeds of $1.9 million which was recorded as in increase to common shares on the balance sheet. The Company incurred offering costs of $0.1 million associated with this transaction. Under the Purchase Agreement, on any trading day on which the closing sale price of the Company’s common shares exceeds $2.00, the Company has the right, in its sole discretion, to present Aspire Capital with a purchase notice, directing Aspire Capital (as principal) to purchase up to 100,000 of the Company’s common shares, per trading day, provided that the aggregate price of each such purchase shall not exceed $1,000,000 per trading day. The Company can direct Aspire Capital to purchase an additional $13 million of the Company’s common shares over the remaining 17 months of the Purchase Agreement. Future purchases under the Purchase Agreement will be at a per share price equal to the lesser of: • the lowest sale price of the Company’s common shares on the purchase date; or • the arithmetic average of the three lowest closing sale prices for the Company’s common shares during the ten consecutive trading days ending on the trading day immediately preceding the purchase date. Other than the initial purchase completed under the Purchase Agreement, there were no sales of common shares to Aspire Capital from May 16, 2014 through June 30, 2015. |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation Plan | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. Stock-based compensation plan 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. Inc. prior to the Company’s IPO. The Company grants options with an exercise price denominated in U.S. dollars. The Company recognized stock-based compensation expense as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Research and development $ 72 $ 153 $ 153 $ 346 General and administrative 155 391 301 807 Total $ 227 $ 544 $ 454 $ 1,153 As of June 30, 2015 there was $0.4 million of total unrecognized compensation expense related to non-vested stock awards. As of June 30, 2015 the Company expects to recognize these costs over a weighted average period of less than one year. The following table summarizes stock option activity, including options issued to employees, directors and non-employees (in thousands, except per share): Options Weighted average Outstanding at January 1, 2015 1,378 $ 6.65 Options granted 303 0.54 Options expired (4 ) 29.16 Outstanding at June 30, 2015 1,677 $ 5.52 The total amounts of options outstanding at June 30, 2015 include options with exercise prices denominated in Canadian dollars and U.S. dollars. The Canadian dollar amounts have been converted to U.S. dollars for purposes of the weighted average exercise price calculation using the grant date exchange rate for each Canadian dollar denominated option. The fair values of options granted during the six months ended June 30, 2015 and 2014 were estimated at the date of grant using the following weighted-average assumptions: Six Months Ended June 30 , 2015 2014 Expected life of the option term (years) 3.5 3.7 Risk-free interest rate 0.99 % 1.2 % Dividend rate 0 % 0 % Volatility 128.4 % 76.2 % Forfeiture rate 4.7 % 5.3 % |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 1 1 . Subsequent Events On August 3, 2015, the Company received a letter from the Listing Qualifications Department of The NASDAQ Stock Market, or NASDAQ, notifying the Company that the consolidated closing bid price of the Company’s common stock had been below $1.00 per share for 30 consecutive business days and that the Company was therefore not in compliance with the minimum bid price requirement for continued listing on The NASDAQ Global Market, as set forth in Marketplace Rule 5450(a)(1). The notification from NASDAQ does not have an immediate effect on the listing of the Company’s common stock and the Company’s common stock will continue to trade on The NASDAQ Global Market under the symbol "SPHS". NASDAQ stated in its August 3 rd The Company is considering actions that it may take in response to this notification in order to regain compliance with the continued listing requirements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of consolidation The 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 Accounting, Policy [Policy Text Block] | 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 on March 10, 2015 and the Company’s Current Report on Form 8-K on April 27, 2015. The accompanying year-end condensed balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. 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. 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 stock-based compensation expense, warrant liability and accrued research and development expenses, including accruals related to the Company’s ongoing clinical trials. 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. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency Historically gains and losses resulting from foreign currency translation were 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 expense. The Company recorded foreign exchange transaction losses of $13,000 and $20,000 for the three and six months ended June 30, 2015, respectively, and $29,000 and $45,000 for the three and six months ended June 30, 2014, respectively. |
Cash and Cash Equivalents, Policy [Policy Text Block] | 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. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | 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 and declines in value judged to be other-than-temporary 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 June 30, 2015 or December 31, 2014. 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, Policy [Policy Text Block] | 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 Expense, Policy [Policy Text Block] | 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 [Policy Text Block] | 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 of the total work 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. 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. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | 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 pricing 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 consultants of the Company, using the fair value approach. Stock options granted to non-employees are subject to revaluation each reporting period over their vesting terms. Prior to the Company’s initial public offering, or IPO, the Company had issued its stock options with a Canadian dollar denominated exercise price. Subsequent to the Company’s IPO, the Company issues its stock options with a U.S. dollar denominated exercise price. Effective November 13, 2013, the Company voluntarily delisted from the Toronto Stock Exchange, or TSX. 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 considered dual indexed as defined in Accounting Standards Codification, or ASC, topic 718, “ Compensation, Stock Compensation” |
Fair Value Measurement, Policy [Policy Text Block] | 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 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 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, “Revenue from Contracts with Customers”. This guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance is effective for annual reporting periods beginning after December 15, 2017 and early adoption is permitted, but not before annual reporting period beginning after December 15, 2016. The Company will adopt this guidance on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this guidance. The Company is evaluating which transition approach to use and its impact, if any, on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The guidance outlines management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provides guidance on the related footnote disclosure. The amendments are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statement disclosures. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. The guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, consistent with the presentation of a debt discount. The guidance is effective for annual reporting periods beginning after December 15, 2015 and interim periods thereafter. Early adoption is permitted. The Company will adopt this guidance on January 1, 2016. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statement disclosures. |
Note 3 - Net Loss Per Common 18
Note 3 - Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | June 30 , 2015 June 30 , 2014 Options to purchase common shares 1,677 1,386 Common share purchase warrants 878 1,001 |
Note 4 - Securities Available19
Note 4 - Securities Available-for-Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | June 30 , 2015 Amortized Unrealized Estimated Cost Gain Loss Fair Value Commercial paper $ 1,400 $ — $ — $ 1,400 U.S. government sponsored enterprise securities 3,826 — — 3,826 $ 5,226 $ — $ — $ 5,226 December 31, 2014 Amortized Unrealized Estimated Cost Gain Loss Fair Value Commercial paper $ 9,098 $ — $ — $ 9,098 U.S. government sponsored enterprise securities 6,308 — — 6,308 Corporate debt securities 3,166 — — 3,166 $ 18,572 $ — $ — $ 18,572 |
Investments Classified by Contractual Maturity Date [Table Text Block] | June 30 , 2015 Amortized Unrealized Estimated Cost Gain Loss Fair Value Within one year $ 5,226 $ — $ — $ 5,226 After one year — — — — $ 5,226 $ — $ — $ 5,226 December 31, 2014 Amortized Unrealized Estimated Cost Gain Loss Fair Value Within one year $ 18,572 $ — $ — $ 18,572 After one year — — — — $ 18,572 $ — $ — $ 18,572 |
Note 5 - Fair Value Measureme20
Note 5 - Fair Value Measurement and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stock-based Compensation Liability [Member] | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | June 30 , 2015 December 31, 2014 Stock price at the end of each reporting period $ 0.78 $ 0.54 Weighted average exercise price $ 14.54 $ 15.83 Risk-free interest rate 0.66 % 0.88 % Volatility 163.19 % 138.38 % Dividend yield 0.00 % 0.00 % Expected life in years 2.03 2.49 Calculated fair value per stock option $ 0.24 $ 0.10 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Six Months Ended June 30, 2015 2014 Liabilities: Balance at beginning of period $ 22 $ 202 Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus 31 (118 ) Balance at end of period $ 53 $ 84 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | June 30 , 2015 Level 1 Level 2 Level 3 Assets: Money market funds $ 815 $ 815 $ — $ — Commercial paper 7,744 — 7,744 — U.S. government sponsored enterprise securities 3,926 — 3,926 — Total assets $ 12,485 $ 815 $ 11,670 $ — Liabilities: Stock-based compensation liability $ 53 $ — $ — $ 53 Total liabilities $ 53 $ — $ — $ 53 December 31, 2014 Level 1 Level 2 Level 3 Assets: Money market funds $ 99 $ 99 $ — $ — Commercial paper 12,398 — 12,398 — U.S. government sponsored enterprise securities 6,308 — 6,308 — Corporate debt securities 3,166 — 3,166 — Total assets $ 21,971 $ 99 $ 21,872 $ — Liabilities: Stock-based compensation liability $ 22 $ — $ — $ 22 Total liabilities $ 22 $ — $ — $ 22 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended June 30 , 2015 2014 Expected life of the option term (years) 3.5 3.7 Risk-free interest rate 0.99 % 1.2 % Dividend rate 0 % 0 % Volatility 128.4 % 76.2 % Forfeiture rate 4.7 % 5.3 % |
Note 6 - Prepaid Expenses (Tabl
Note 6 - Prepaid Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Prepaid Expense and Other Current Assets [Table Text Block] | June 30 , December 31, 2015 2014 Prepaid insurance $ 58 $ 280 Prepaid research and development expenses 2,180 2,506 Other prepaid expenses 56 39 $ 2,294 $ 2,825 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30 , December 31, 2015 2014 Accrued personnel related costs $ 449 $ 846 Accrued interest 48 48 Accrued research and development expenses 945 1,279 Other accrued expenses 217 134 $ 1,659 $ 2,307 |
Note 8 - Promissory Notes (Tabl
Note 8 - Promissory Notes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year 1 $ 1,656 Year 2 1,978 Year 3 2,175 Year 4 491 Total $ 6,300 |
Contractual Interest Expense and Amortization of Debt Issuance Costs and Debt Discount [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Simple interest $ 142 $ 92 $ 285 $ 215 Amortization of debt discount 35 55 69 123 Amortization of promissory notes issuance costs - 21 - 38 $ 177 $ 168 $ 354 $ 376 |
Note 10 - Stock-based Compens24
Note 10 - Stock-based Compensation Plan (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 201 5 201 4 201 5 201 4 Research and development $ 72 $ 153 $ 153 $ 346 General and administrative 155 391 301 807 Total $ 227 $ 544 $ 454 $ 1,153 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Weighted average Outstanding at January 1, 2015 1,378 $ 6.65 Options granted 303 0.54 Options expired (4 ) 29.16 Outstanding at June 30, 2015 1,677 $ 5.52 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended June 30 , 2015 2014 Expected life of the option term (years) 3.5 3.7 Risk-free interest rate 0.99 % 1.2 % Dividend rate 0 % 0 % Volatility 128.4 % 76.2 % Forfeiture rate 4.7 % 5.3 % |
Note 1 - Nature of the Busine25
Note 1 - Nature of the Business (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Net Income (Loss) Attributable to Parent | $ (3,738) | $ (8,750) | $ (8,043) | $ (17,209) | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (9,465) | $ (13,414) | |||
Cash, Cash Equivalents, and Short-term Investments | $ 13,200 | $ 13,200 | $ 22,700 |
Note 2 - Summary of Significa26
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Other Income (Expense), Net [Member] | |||||
Foreign Currency Transaction Gain (Loss), before Tax | $ (13,000) | $ (29,000) | $ (20,000) | $ (45,000) | |
Other than Temporary Impairment Losses, Investments | 0 | $ 0 | |||
Foreign Currency Transaction Gain (Loss), before Tax | (20,000) | (11,000) | |||
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent | 53,000 | 53,000 | $ 22,000 | ||
Change in Fair Value of Stock-based Compensation Liability | $ (20,000) | $ 98,000 | $ (31,000) | $ 118,000 |
Note 3 - Net Loss Per Common 27
Note 3 - Net Loss Per Common Share - Potentially Dilutive Securities Excluded from Diluted Weighted-average Shares Outstanding (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Stock Option [Member] | ||
Anti-dilutive securities excluded from computation of weighted-average shares outstanding (in shares) | 1,677 | 1,386 |
Warrant [Member] | ||
Anti-dilutive securities excluded from computation of weighted-average shares outstanding (in shares) | 878 | 1,001 |
Note 4 - Securities Available28
Note 4 - Securities Available-for-Sale - Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||
Amortized Cost | $ 1,400 | $ 9,098 |
Estimated Fair Value | 1,400 | 9,098 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Amortized Cost | 3,826 | 6,308 |
Estimated Fair Value | 3,826 | 6,308 |
Corporate Debt Securities [Member] | ||
Amortized Cost | 3,166 | |
Estimated Fair Value | 3,166 | |
Amortized Cost | 5,226 | 18,572 |
Estimated Fair Value | $ 5,226 | $ 18,572 |
Note 4 - Securities Available29
Note 4 - Securities Available-for-Sale - Amortized Cost and Estimated Fair Value of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Within One Year [Member] | ||
Amortized Cost | $ 5,226 | $ 18,572 |
Estimated Fair Value | 5,226 | 18,572 |
Amortized Cost | 5,226 | 18,572 |
Estimated Fair Value | $ 5,226 | $ 18,572 |
Note 5 - Fair Value Measureme30
Note 5 - Fair Value Measurement and Financial Instruments (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets, Fair Value Disclosure, Recurring | $ 12,485 | $ 21,971 |
Note 5 - Fair Value Measureme31
Note 5 - Fair Value Measurement and Financial Instruments - Assets and Liabilities Measured at Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 815 | $ 99 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
Money Market Funds [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 815 | $ 99 |
Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 7,744 | $ 12,398 |
Commercial Paper [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
Commercial Paper [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 7,744 | $ 12,398 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 3,926 | $ 6,308 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 3,926 | $ 6,308 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 3,166 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
Corporate Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 3,166 | |
Fair Value, Inputs, Level 1 [Member] | Stock-based Compensation Liability [Member] | ||
Liability Fair Value | ||
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 815 | $ 99 |
Liability Fair Value | ||
Fair Value, Inputs, Level 2 [Member] | Stock-based Compensation Liability [Member] | ||
Liability Fair Value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 11,670 | $ 21,872 |
Liability Fair Value | ||
Fair Value, Inputs, Level 3 [Member] | Stock-based Compensation Liability [Member] | ||
Liability Fair Value | $ 53 | $ 22 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Recurring | ||
Liability Fair Value | $ 53 | $ 22 |
Stock-based Compensation Liability [Member] | ||
Liability Fair Value | 53 | 22 |
Assets, Fair Value Disclosure, Recurring | 12,485 | 21,971 |
Liability Fair Value | $ 53 | $ 22 |
Note 5 - Fair Value Measureme32
Note 5 - Fair Value Measurement and Financial Instruments - Fair Value Assumptions, Stock-based Compensation Liability (Details) - Stock-based Compensation Liability [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Stock price at the end of each reporting period (in dollars per share) | $ 0.78 | $ 0.54 |
Weighted average exercise price (in dollars per share) | $ 14.54 | $ 15.83 |
Risk-free interest rate | 0.66% | 0.88% |
Volatility | 163.19% | 138.38% |
Dividend yield | 0.00% | 0.00% |
Expected life in years | 2 years 10 days | 2 years 178 days |
Calculated fair value per stock option (in dollars per share) | $ 0.24 | $ 0.10 |
Note 5 - Fair Value Measureme33
Note 5 - Fair Value Measurement and Financial Instruments - Fair Value Reconciliation of Stock-based Compensation Liability (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stock-based Compensation Liability [Member] | ||||
Balance at beginning of period | $ 22,000 | $ 202,000 | ||
Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus | 31,000 | (118,000) | ||
Balance at end of period | $ 53,000 | $ 84,000 | 53,000 | 84,000 |
Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus | $ 20,000 | $ (98,000) | $ 31,000 | $ (118,000) |
Note 6 - Prepaid Expenses (Deta
Note 6 - Prepaid Expenses (Details Textual) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Upfront Fees Included in Prepaid Researchs and Development Expenses | $ 2.1 | $ 2.5 |
Note 6 - Prepaid Expenses - Com
Note 6 - Prepaid Expenses - Components of Prepaid Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Prepaid insurance | $ 58 | $ 280 |
Prepaid research and development expenses | 2,180 | 2,506 |
Other prepaid expenses | 56 | 39 |
$ 2,294 | $ 2,825 |
Note 7 - Accrued Expenses - Com
Note 7 - Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accrued personnel related costs | $ 449 | $ 846 |
Accrued interest | 48 | 48 |
Accrued research and development expenses | 945 | 1,279 |
Other accrued expenses | 217 | 134 |
$ 1,659 | $ 2,307 |
Note 8 - Promissory Notes (Deta
Note 8 - Promissory Notes (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Oxford New Loan [Member] | Minimum [Member] | ||
Prepayment Fee Rate | 1.00% | |
Oxford New Loan [Member] | Maximum [Member] | ||
Prepayment Fee Rate | 3.00% | |
Oxford New Loan [Member] | ||
Debt Instrument, Face Amount | $ 6 | |
Debt Instrument, Interest Rate, Stated Percentage | 9.504% | |
Additional Fee Percentage | 5.00% | |
Debt Instrument, Number of Monthly Payments | 36 | |
Promissory Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Long-term Debt, Fair Value | $ 5.9 | |
Promissory Notes [Member] | ||
Debt Instrument, Interest Rate, Effective Percentage | 9.50% |
Note 8 - Promissory Notes - Fut
Note 8 - Promissory Notes - Future Contractual and Final Fee Payments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Year 1 | $ 1,656 |
Year 2 | 1,978 |
Year 3 | 2,175 |
Year 4 | 491 |
Total | $ 6,300 |
Note 8 - Promissory Notes - Act
Note 8 - Promissory Notes - Actual Interest Expense and Amortization of Debt Discount (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Simple interest | $ 142 | $ 92 | $ 285 | $ 215 |
Amortization of debt discount | $ 35 | 55 | $ 69 | 123 |
Amortization of promissory note issuance costs | 21 | 38 | ||
$ 177 | $ 168 | $ 354 | $ 376 |
Note 9 - Common Stock Purchas40
Note 9 - Common Stock Purchase Agreement with Aspire Capital (Details Textual) - USD ($) | May. 16, 2014 | Jun. 30, 2015 | Jun. 30, 2015 |
Aspire Capital [Member] | |||
Stock Issued During Period, Shares, New Issues | 604,230 | 0 | |
Common Stock, Value, Subscriptions | $ 15,000,000 | ||
Common Stock Purchase Agreement Term | 2 years 180 days | ||
Stock Issued During Period, Shares, Other | 90,635 | ||
Share Price | $ 3.31 | ||
Proceeds from Issuance of Common Stock | $ 1,900,000 | ||
Issuance Cost for Purchase Agreement | $ 100,000 | ||
Minimum Price Per Share to Retain Stock Purchase Direction Right | $ 2 | ||
Maximum Number of Common Shares to be Purchased | 100,000 | ||
Maximum Amount of Common Shares to be Purchased Per Trading Day | $ 1,000,000 | ||
Additional Common Shares to Be Purchased at Reporting Entity's Direction, Value | $ 13,000,000 | ||
Minimum Price Per Share to Retain Stock Purchase Direction Right | $ 2 |
Note 10 - Stock-based Compens41
Note 10 - Stock-based Compensation Plan (Details Textual) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.4 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year |
Note 10 - Stock-based Compens42
Note 10 - Stock-based Compensation Plan - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Research and Development Expense [Member] | ||||
Stock-based compensation expense | $ 72 | $ 153 | $ 153 | $ 346 |
General and Administrative Expense [Member] | ||||
Stock-based compensation expense | 155 | 391 | 301 | 807 |
Stock-based compensation expense | $ 227 | $ 544 | $ 454 | $ 1,153 |
Note 10 - Stock-based Compens43
Note 10 - Stock-based Compensation Plan - Stock Option Activity (Details) - 6 months ended Jun. 30, 2015 - $ / shares shares in Thousands | Total |
United States of America, Dollars | |
Options granted (in shares) | 303 |
Options granted (in dollars per share) | $ 0.54 |
Options expired (in shares) | (4) |
Options expired (in dollars per share) | $ 29.16 |
Options outstanding (in shares) | 1,378 |
Weighted average exercise price - options outstanding (in dollars per share) | $ 6.65 |
Options outstanding (in shares) | 1,677 |
Weighted average exercise price - options outstanding (in dollars per share) | $ 5.52 |
Note 10 - Stock-based Compens44
Note 10 - Stock-based Compensation Plan - Fair Value Assumptions of Options Granted (Details) - Black Scholes Pricing Model [Member] | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Expected life of the option term (years) | 3 years 182 days | 3 years 255 days |
Risk-free interest rate | 0.99% | 1.20% |
Dividend rate | 0.00% | 0.00% |
Volatility | 128.40% | 76.20% |
Forfeiture rate | 4.70% | 5.30% |
Note 11 - Subsequent Events (De
Note 11 - Subsequent Events (Details Textual) - Aug. 03, 2015 - Subsequent Event [Member] - $ / shares | Total |
NASDAQ Listing Requirement, Minimum Stock Price | $ 1 |
NASDAQ Listing Requirement Number of Constructive Business Day | 30 days |
NASDAQ Listing Requirement to Regain Compliance, Grace Period | 180 days |
NASDAQ Listing Requirement to Regain Compliance, Minimum Stock Price | $ 1 |
NASDAQ Listing Requirement to Regain Compliance, Number of Constructive Business Day | 10 days |