Jaguar Health (JAGX) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document and Entity Information
Entity Registrant Name	Jaguar Animal Health, Inc.
Entity Central Index Key	1,585,608
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,340,464
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 1,813,411	$ 7,697,531
Restricted cash	988,580
Accounts receivable	4,963	55,867
Due from former parent	273,062	3,199
Inventory	276,227	229,871
Deferred offering costs	67,011	143,231
Prepaid expenses and other current assets	655,207	324,083
Total current assets	4,078,461	8,453,782
Property and equipment, net	900,976	829,232
Restricted cash		3,000,000
Other assets	122,163	122,163
Total assets	5,101,600	12,405,177
Current liabilities:
Accounts payable	443,729	574,462
License fee payable to former parent		425,000
Deferred revenue	246,235	251,936
Convertible notes payable	150,000	150,000
Accrued expenses	410,658	798,434
Current portion of long-term debt	1,846,101	1,707,899
Total current liabilities	3,096,723	3,907,731
Long-term debt, net of discount	2,271,114	4,095,028
Deferred rent	6,799	3,321
Total liabilities	5,374,636	8,006,080
Commitments and Contingencies (See note 6)
Stockholders' Equity
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at September 30, 2016 and December 31, 2015; no shares issued and outstanding at September 30, 2016 and December 31, 2015.
Common stock: $0.0001 par value, 50,000,000 shares authorized at September 30, 2016 and December 31, 2015; 11,821,408 and 8,124,923 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively.	1,182	812
Additional paid-in capital	36,485,279	30,100,613
Accumulated deficit	(36,759,497)	(25,702,328)
Total stockholders' equity	(273,036)	4,399,097
Total liabilities, convertible preferred stock and stockholders' equity	$ 5,101,600	$ 12,405,177

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	11,821,408	8,124,923
Common stock, shares outstanding	11,821,408	8,124,923

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue
Revenue	$ 50,357	$ 77,666	$ 112,646	$ 203,195
Operating Expenses
Cost of revenue	9,858	36,634	36,867	87,889
Research and development expense	1,967,128	1,239,831	5,672,516	4,414,162
Sales and marketing expense	136,882	165,745	355,345	519,275
General and administrative expense	1,115,312	1,390,429	4,319,856	3,784,272
Total operating expenses	3,229,180	2,832,639	10,384,584	8,805,598
Loss from operations	(3,178,823)	(2,754,973)	(10,271,938)	(8,602,403)
Interest expense, net	(235,191)	(163,595)	(774,185)	(3,033,238)
Other income/(expense)	(1,476)	(42,103)	(11,046)	(23,471)
Change in fair value of warrants				(501,617)
Net loss and comprehensive loss	(3,415,490)	(2,960,671)	(11,057,169)	(12,160,729)
Accretion of redeemable convertible preferred stock				(346,374)
Net loss attributable to common stockholders	$ (3,415,490)	$ (2,960,671)	$ (11,057,169)	$ (12,507,103)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.30)	$ (0.36)	$ (1.07)	$ (2.28)
Weighted-average common shares outstanding, basic and diluted (in shares)	11,264,886	8,123,293	10,298,987	5,488,655

CONDENSED STATEMENT OF CHANGES

CONDENSED STATEMENT OF CHANGES IN COMMON STOCK, CONVERTIBLE PREFERRED STOCK (Series A Redeemable Convertible Preferred Stock) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2015
Increase (decrease) in temporary equity
Conversion of preferred stock into common stock upon initial public offering	$ 7,651,288	$ 7,651,288
Deemed dividends on Series A	263,060
Series A redeemable convertible preferred stock
Increase (decrease) in temporary equity
Beginning Balance	$ 7,304,914	$ 7,304,914
Beginning Balance (in shares)	3,015,902	3,015,902
Conversion of preferred stock into common stock upon initial public offering		$ (7,651,288)
Conversion of preferred stock into common stock upon initial public offering (in shares)		(3,015,902)
Deemed dividends on Series A		$ 263,060
Accretion of issuance costs	$ 83,334	$ 83,314

CONDENSED STATEMENT OF CHANGES6

CONDENSED STATEMENT OF CHANGES IN COMMON STOCK, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock	Additional paid-in capital	Accumulated deficit	Total
Balance at Dec. 31, 2014	$ 288	$ 1,175,242	$ (9,410,778)	$ (8,235,248)
Balance (in shares) at Dec. 31, 2014	2,874,330
Increase (decrease) in Stockholders' Equity (Deficit)
2015: Issuance of common stock in initial public offering, net of discounts and commissions of $1,209,802, offering costs of $2,897,825 and offering costs in the form of common stock warrants of $400,400; 2016: Issuance of common stock in a secondary public offering, net of discounts and commissions of $373,011 and offering costs of $496,887.	$ 286	15,511,974		15,512,260
Shares issued (in shares)	2,860,000
Warrant, issued in conjunction with the initial public offering		400,400		400,400
Conversion of preferred stock into common stock upon initial public offering	$ 201	7,651,087		7,651,288
Conversion of preferred stock into common stock upon initial public offering (in shares)	2,010,596
Conversion of preferred stock warrant liability into additional paid-in capital upon initial public offering		1,150,985		1,150,985
Conversion of convertible notes into common stock upon initial public offering	$ 37	2,099,963		2,100,000
Conversion of convertible notes payable (in shares)	374,997
Stock-based compensation		992,165		992,165
Beneficial conversion feature on notes payable		1,202,521		1,202,521
Deemed dividends on Series A		(263,060)		(263,060)
Accretion of issuance costs		(83,314)		(83,314)
Napo license fee abatement		250,000		250,000
Issuance of common stock upon exercise of stock options		12,650		12,650
Issuance of common stock upon exercise of stock options (in shares)	5,000
Net and comprehensive loss			(16,291,550)	(16,291,550)
Balance at Dec. 31, 2015	$ 812	30,100,613	(25,702,328)	4,399,097
Balance (in shares) at Dec. 31, 2015	8,124,923
Increase (decrease) in Stockholders' Equity (Deficit)
2015: Issuance of common stock in initial public offering, net of discounts and commissions of $1,209,802, offering costs of $2,897,825 and offering costs in the form of common stock warrants of $400,400; 2016: Issuance of common stock in a secondary public offering, net of discounts and commissions of $373,011 and offering costs of $496,887.	$ 200	4,129,902		4,130,102
Shares issued (in shares)	2,000,000
Issuance of common stock in a private investment in public entities offering, net of offering costs of $105,398.	$ 168	1,776,324		1,776,492
Shares issued (in shares)	1,678,889
Stock-based compensation		478,442		478,442
Issuance of common stock in exchange for vested restricted stock units	$ 2	(2)
Issuance of common stock in exchange for vested restricted stock units (in shares)	17,596
Net and comprehensive loss			(11,057,169)	(11,057,169)
Balance at Sep. 30, 2016	$ 1,182	$ 36,485,279	$ (36,759,497)	$ (273,036)
Balance (in shares) at Sep. 30, 2016	11,821,408

CONDENSED STATEMENT OF CHANGES7

CONDENSED STATEMENT OF CHANGES IN COMMON STOCK, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - USD ($)	Feb. 08, 2016	May 18, 2015	Jun. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Stock Transactions, Parenthetical Disclosures
Warrant, issued in conjunction with the initial public offering					$ 400,400
Common Stock | IPO
Stock Transactions, Parenthetical Disclosures
Underwriting discounts and commissions		$ 1,200,000			1,209,802
Offering costs		$ 2,900,000			$ 2,897,825
Common Stock | Secondary public offering
Stock Transactions, Parenthetical Disclosures
Underwriting discounts and commissions	$ 373,011			$ 373,011
Offering costs	$ 496,887			496,887
Common Stock | Private investment
Stock Transactions, Parenthetical Disclosures
Offering costs			$ 104,398	$ 105,398

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities
Net loss	$ (11,057,169)	$ (12,160,729)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	32,463
Gain/loss on disposal of fixed assets		34,549
Materials cost in connection with license activity		6,287
Stock-based compensation	478,442	828,049
Amortization of debt issuance costs and debt discount	396,107	2,592,956
Change in fair value of warrants		501,617
Changes in assets and liabilities
Accounts receivable - trade	50,904	(8,698)
Inventory	(46,356)	(58,100)
Prepaid expenses	(331,124)	(329,774)
Deferred finance charges		(197,524)
Other long-term assets		(122,163)
Due from parent	(269,863)	(20,790)
Deferred revenue	(5,701)	312,910
Deferred rent	3,478	1,660
License fee payable	(425,000)	(675,000)
Accounts payable	(151,912)	(421,551)
Accrued expenses	(360,776)	(669,634)
Total cash used in operations	(11,686,507)	(10,385,935)
Cash Flows from Investing Activities
Purchase of equipment	(104,207)	(23,300)
Sale of equipment		20,600
Change in restricted cash	2,011,420	(4,500,000)
Total cash provided by (used in) investing activities	1,907,213	(4,502,700)
Cash Flows from Financing Activities
Proceeds from issuance of long-term debt		5,865,567
Repayment of long-term debt	(2,011,420)
Proceeds from issuance of redeemable convertible notes payable, net		1,250,000
Repayment of convertible notes payable		(100,000)
Repayment of notes payable		(1,000,000)
Proceeds from issuance of common stock in initial public offering, net of commissions and discounts		18,810,484
Deferred offering costs		(417,775)
Proceeds from issuance of common stock in a follow-on secondary offering, net of commissions and discounts	4,130,102
Proceeds from issuance of common stock in a private investment in public entities, net of commissions, discounts	1,776,492
Proceeds from the exercise of common stock options		12,650
Total Cash Provided by Financing Activities	3,895,174	24,420,926
Net increase in cash and cash equivalents	(5,884,120)	9,532,291
Cash and cash equivalents, beginning of period	7,697,531	845,192
Cash and cash equivalents, end of period	1,813,411	10,377,483
Supplemental Schedule of Non-Cash Financing and Investing Activities
Interest paid on long-term debt	$ 382,810	23,100
Offering costs not paid during the nine months		1,401,253
Accretion of redeemable convertible preferred stock		346,374
Abatement of license fee payable to Napo		250,000
Conversion of convertible preferred stock to common stock		7,651,288
Conversion of preferred stock warrant liability to common stock warrants		1,150,985
Conversion of convertible notes to common stock		$ 2,100,000

Organization and Business

Organization and Business	9 Months Ended
	Sep. 30, 2016
Organization and Business
Organization and Business	1. Organization and Business Jaguar Animal Health, Inc. (“Jaguar” or the “Company”) was incorporated on June 6, 2013 (inception) in Delaware. The Company was a majority-owned subsidiary of Napo Pharmaceuticals, Inc. (“Napo” or the “Former Parent”) until the close of the Company’s initial public offering on May 18, 2015. The Company was formed to develop and commercialize first-in-class gastrointestinal products for companion and production animals and horses. The Company’s first commercial product, Neonorm Calf, was launched in 2014 and Neonorm Foal was launched in the first quarter of 2016. In September of 2016, the Company began selling the Croton lechleri botanical extract (the “botanical extract”) to an exclusive distributor for use in pigs in China. The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding in order to timely compete the development and commercialization of products. The Company operates in one segment and is headquartered in San Francisco, California. On June 11, 2013, Jaguar issued 2,666,666 shares of common stock to Napo in exchange for cash and services. On July 1, 2013, Jaguar entered into an employee leasing and overhead agreement (the “Service Agreement”) with Napo, under which Napo agreed to provide the Company with the services of certain Napo employees for research and development and the general administrative functions of the Company. On January 27, 2014, Jaguar executed an intellectual property license agreement with Napo pursuant to which Napo transferred fixed assets and development materials, and licensed intellectual property and technology to Jaguar. On February 28, 2014, the Service Agreement terminated and the associated employees became employees of Jaguar effective March 1, 2014. See Note 9 for additional information regarding the capital contributions and Note 4 for the Service Agreement and license agreement details. On October 6, 2016, Jaguar signed a non-binding letter of intent (“LOI”) with Napo potentially to merge the two companies. Reverse Stock Split In October 2014, the Board of Directors and stockholders approved a 1-for-1.5 reverse stock split (the “Reverse Split”) of the Company’s outstanding shares of common stock and increased the number of authorized shares of common stock from 10,000,000 shares to 15,000,000 shares. The Company effected the Reverse Split on October 27, 2014. Under the terms of the Reverse Split, each share of common stock, issued and outstanding as of such effective date, was automatically reclassified and changed into two-thirds of one share of common stock, without any action by the stockholder. Fractional shares were rounded down to the nearest whole share. All share and per share amounts have been restated to reflect the Reverse Split. Initial Public Offering On May 18, 2015, the Company completed an initial public offering (“IPO”) of its common stock. In connection with its IPO, the Company issued and sold 2,860,000 shares of common stock at a price to the public of $7.00 per share. As a result of the IPO, the Company received $15.9 million in net proceeds, after deducting underwriting discounts and commissions of $1.2 million and offering expenses of $2.9 million ($3.3 million including non-cash offering expenses) payable by the Company. In connection with the IPO, the Company’s outstanding shares of convertible preferred stock were automatically converted into 2,010,596 shares of common stock and the Company’s outstanding warrants to purchase convertible preferred stock were all converted to warrants to purchase common stock. Secondary Public Offering On February 8, 2016, the Company completed a secondary public offering of its common stock. In connection with its secondary public offering, the Company issued and sold 2,000,000 shares of common stock at a price to the public of $2.50 per share. As a result of the secondary public offering, the Company received $4.1 million in net proceeds, after deducting underwriting discounts and commissions of $373,011 and offering expenses of $496,887. Liquidity The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred recurring operating losses since inception and has an accumulated deficit of $36,759,497 as of September 30, 2016. The Company expects to incur substantial losses in future periods. Further, the Company’s future operations are dependent on the success of the Company’s ongoing development and commercialization efforts. There is no assurance that profitable operations, if ever achieved, could be sustained on a continuing basis. The Company plans to finance its operations and capital funding needs through equity and/or debt financing as well as revenue from future product sales. However, there can be no assurance that additional funding will be available to the Company on acceptable terms on a timely basis, if at all, or that the Company will generate sufficient cash from operations to adequately fund operating needs or ultimately achieve profitability. If the Company is unable to obtain an adequate level of financing needed for the long-term development and commercialization of its products, the Company will need to curtail planned activities and reduce costs. Doing so will likely have an adverse effect on the Company’s ability to execute on its business plan. These matters raise substantial doubt about the ability of the Company to continue in existence as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties. In June 2016, the Company entered into a common stock purchase agreement with a private investor (the “CSPA”), which provides that, upon the terms and subject to the conditions and limitations set forth therein, the investor is committed to purchase up to an aggregate of $15.0 million of the Company’s common stock over the approximately 30-month term of the agreement. As of September 30, 2016 the Company sold 1,678,889 shares for net cash proceeds of $1,776,492.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its financial statements and the accompanying notes. The accounting policies that reflect the Company’s more significant estimates and judgments and that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results are valuation of stock options; valuation of warrant liabilities; impairment of long lived assets; useful lives for depreciation; valuation adjustments for excess and obsolete inventory; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies. Those estimates could change, and as a result, actual results could differ materially from those estimates. Concentration of Credit Risk and Cash and Cash Equivalents The financial instrument that potentially subjects the Company to a concentration of credit risk is that is held at a financial institution of high credit standing. Cash is generally in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Therefore, the Company is exposed to credit risk in the event that the balances exceed FDIC insurance limits. The carrying value of cash approximates fair value at September 30, 2016 and December 31, 2015. Fair Values The Company’s financial instruments include, cash and cash equivalents, accounts payable, accrued expenses, amounts due to Napo, the former parent, warrant liabilities, and debt. Cash is reported at fair value. The recorded carrying amount of accounts payable, accrued expenses and amounts due to Napo approximates their fair value due to their short-term nature. The carrying value of the interest-bearing debt approximates fair value based upon the borrowing rates currently available to the Company for bank loans with similar terms and maturities. See Note 3 for the fair value measurements, and Note 7 for the fair value of the Company’s warrant liabilities. Restricted Cash On August 18, 2015, the Company entered into a long-term loan and security agreement with a lender for up to $8.0 million, which provided for an initial loan commitment of $6.0 million. The loan agreement required the Company to maintain a base minimum cash balance of $4.5 million until the Company met certain milestones and/or when the Company begins making principal payments. On December 22, 2015, the Company achieved certain milestones and the base minimum cash balance was reduced to $3.0 million. Aggregate principal payments of $2.1 million further reduced the restricted cash balance to $988,580 as of September 30, 2016. Restricted cash has been classified within current assets as the balance will be converted to cash before September 30, 2017. Inventories Inventories are stated at the lower of cost or market. The Company calculates inventory valuation adjustments when conditions indicate that the net realizable value is less than cost due to physical deterioration, usage, obsolescence, reductions in estimated future demand or reduction in selling price. Inventory write-downs are measured as the difference between the cost of inventory and estimated net realizable value. There have been no write-downs to date. Property and Equipment Equipment is stated at cost, less accumulated depreciation. Equipment begins to be depreciated when it is placed into service. Depreciation is calculated using the straight-line method over the estimated useful lives of 3 to 10 years. Expenditures for repairs and maintenance of assets are charged to expense as incurred. Costs of major additions and betterments are capitalized and depreciated on a straight-line basis over their estimated useful lives. Upon retirement or sale, the cost and related accumulated depreciation of assets disposed of are removed from the accounts and any resulting gain or loss is included in income (loss) from operations. Long-Lived Assets The Company regularly reviews the carrying value and estimated lives of all of its long-lived assets, including property and equipment to determine whether indicators of impairment may exist that warrant adjustments to carrying values or estimated useful lives. The determinants used for this evaluation include management’s estimate of the asset’s ability to generate positive income from operations and positive cash flow in future periods as well as the strategic significance of the assets to the Company’s business objectives. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount over the asset’s fair value. The Company has not recognized any impairment losses through September 30, 2016. Research and Development Expense Research and development expense consists of expenses incurred in performing research and development activities including related salaries, clinical trial and related drug and non-drug product costs, contract services and other outside service expenses. Research and development expense is charged to operating expense in the period incurred. Revenue Recognition Sales of Neonorm Calf and Foal to distributors are made under agreements that may provide distributor price adjustments and rights of return under certain circumstances. Until the Company develops sufficient sales history and pipeline visibility, revenue and costs of distributor sales will be deferred until products are sold by the distributor to the distributor’s customers. Revenue recognition depends on notification either directly from the distributor that product has been sold to the distributor’s customer, when the Company has access to the data. Deferred revenue on shipments to distributors reflect the estimated effects of distributor price adjustments, if any, and the estimated amount of gross margin expected to be realized when the distributor sells through product purchased from the Company. Accounts receivable from distributors are recognized and included in deferred revenue when shipped to the distributor. Inventory is relieved and revenue recognized upon shipment by the distributor to their customer. The Company had Neonorm revenues of $26,357 and $88,646 for the three and nine months ended September 30, 2016, and $77,666 and $203,195 for the three and nine months ended September 30, 2015. Stock-Based Compensation The Company’s 2013 Equity Incentive Plan and 2014 Stock Incentive Plan (see Note 10) provides for the grant of stock options, restricted stock and restricted stock unit awards. The Company measures stock awards granted to employees and directors at fair value on the date of grant and recognizes the corresponding compensation expense of the awards, net of estimated forfeitures, over the requisite service periods, which correspond to the vesting periods of the awards. The Company issues stock awards with only service-based vesting conditions, and records compensation expense for these awards using the straight-line method. The Company uses the grant date fair market value of its common stock to value both employee and non-employee options when granted. The Company revalues non-employee options each reporting period using the fair market value of the Company's common stock as of the last day of each reporting period. Classification of Securities The Company applies the principles of ASC 480-10 “Distinguishing Liabilities from Equity” and ASC 815-40 “Derivatives and Hedging—Contracts in Entity’s Own Equity” to determine whether financial instruments such as warrants, contingently issuable shares and shares subject to repurchase should be classified as liabilities or equity and whether beneficial conversion features exist. Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in the Company’s tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The Company accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate, as well as the related net interest and penalties. Comprehensive Loss Comprehensive loss is defined as changes in stockholders’ equity (deficit) exclusive of transactions with owners (such as capital contributions and distributions). For the three and nine months ended September 30, 2016 and 2015 there was no difference between net loss and comprehensive loss. Segment Data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company is an animal health company focused on developing and commercializing prescription and non-prescription products for companion and production animals. Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted-average number of common shares, including potential dilutive shares of common stock assuming the dilutive effect of potential dilutive securities. For periods in which the Company reports a net loss, diluted net loss per common share is the same as basic net loss per common share, because their impact would be anti-dilutive to the calculation of net loss per common share. Diluted net loss per common share is the same as basic net loss per common share for the three and nine months ended September 30, 2016 and 2015. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which provides guidance for accounting for leases. Under ASU 2016-02, the Company will be required to recognize the assets and liabilities for the rights and obligations created by leased assets. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which simplifies the presentation of deferred income taxes. Under ASU 2015-17, deferred tax assets and liabilities are required to be classified as noncurrent, eliminating the prior requirement to separate deferred tax assets and liabilities into current and noncurrent. The new guidance is effective for the Company beginning on January 1, 2017, with early adoption permitted. The standard may be adopted prospectively or retrospectively to all periods presented. The Company is currently assessing the timing of adoption of the new guidance, but does not expect it will have a material impact on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. ASU 2015-03 will be effective for the Company beginning in its first quarter of 2016, however early adoption is permitted for financial statements that have not been previously issued. The guidance is to be applied retrospectively to all periods presented. We adopted ASU 2015-03 on December 31, 2015. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40)—Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which provides guidance regarding management’s responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements for each annual and interim reporting period, management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). This ASU is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements. In June 2014, the FASB issued ASU No. 2014-12, “Compensation—Stock Compensation (Topic 718)”, which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This guidance will be effective for annual periods (and interim periods within those annual periods) beginning after December 15, 2015. The Company implemented this guidance for all interim and annual periods beginning after December 15, 2015. The adoption of this guidance did not have an impact on the Company’s financial condition, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016 and allows for prospective or retrospective application. The Company is evaluating the new guidance and has not determined the impact this pronouncement will have on its financial statements.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Fair Value Measurements	3. Fair Value Measurements ASC 820 “Fair Value Measurements,” defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: · Level 1—Quoted prices in active markets for identical assets or liabilities; · Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. As of September 30, 2016 and 2015, the Company does not have any assets or liabilities measured at fair value on a recurring basis. During the nine months ended September 30, 2015, the Company had a warrant liability that was measured at fair value on a recurring basis until May of 2015. The change in the estimated fair value of the warrant liability for the nine months ended September 30, 2015 is summarized below: Beginning Issuance of Change in Conversion Ending For the nine months ended September 30, 2015 $ $ $ ) $ — The change in the fair value of the level 3 warrant liability is reflected in the statement of operations and comprehensive loss for the nine months ended September 30, 2015.

License Agreement

License Agreement	9 Months Ended
	Sep. 30, 2016
License Agreement
License Agreement	4. License Agreement On July 11, 2013, Jaguar entered into an option to license Napo’s intellectual property and technology (the “Option Agreement”). Under the Option Agreement, upon the payment of $100,000 in July 2013, the Company obtained an option for a period of two years to execute an exclusive worldwide license to Napo’s intellectual property and technology to use for the Company’s animal health business. The option price was creditable against future license fees to be paid to Napo under the License Agreement (as defined below). In January 2014, the Company exercised its option and entered into a license agreement (the “License Agreement”) with Napo for an exclusive worldwide license to Napo’s intellectual property and technology to permit the Company to develop, formulate, manufacture, market, use, offer for sale, sell, import, export, commercialize and distribute products for veterinary treatment uses and indications for all species of animals. The Company was originally obligated to pay a one-time non-refundable license fee of $2,000,000, less the option fee of $100,000. At the Company’s option, the license fee could have been paid in common stock. Milestone payments aggregating $3,150,000 may also be due to Napo based on regulatory approvals of various veterinary products. In addition to the milestone payments, the Company will owe Napo an 8% royalty on annual net sales of products derived from the Croton lechleri tree, up to $30,000,000 and then, a royalty of 10% on annual net sales of $30,000,000 or more. Additionally, if any other products are developed, the Company will owe Napo a 2% royalty on annual net sales of pharmaceutical prescription products that are not derived from Croton lechleri and a 1% royalty on annual net sales of nonprescription products that are not derived from Croton lechleri . The royalty term expires at the longer of 10 years from the first sale of each individual product or when there is no longer a valid patent claim covering any of the products and a competitive product has entered the market. However, because an IPO of at least $10,000,000 was consummated prior to December 31, 2015, the royalty was reduced to 2% of annual net sales of its prescription products derived from Croton lechleri and 1% of net sales of its nonprescription products derived from Croton lechleri and no milestone payment will be due and no royalties will be owed on any additional products developed. The Company incurred royalty expense of $99 and $943 for the three and nine months ended September 30, 2016 and $413 and $39,159 for the three and nine months ended September 30, 2015, which is included in sales and marketing expense in the Company’s statement of operations and comprehensive loss. The Company’s unpaid royalties total $99 and $2,810 at September 30, 2016 and December 31, 2015, respectively, which is included in accrued liabilities in the Company’s balance sheet. In addition to receiving a License Agreement to Napo’s intellectual property and technology, the License also transferred to the Company certain materials and equipment. Materials transferred from Napo have been included in research and development expense on the statements of operations and comprehensive loss during the year ended December 31, 2014. Equipment of $811,087 related to the License is included in property and equipment on the Company’s balance sheet at September 30, 2016 and December 31, 2015 at the cost paid by Napo, which approximates fair value. Some of the equipment was placed into service in November of 2015, and the Company has booked $6,568 and $19,704 in depreciation expense for the three and nine months ended September 30, 2016, which is included in research and development expense in the Company’s statement of operations and comprehensive loss. The Company has agreed under the License Agreement to defend, indemnify and hold Napo, its affiliates, and the officers, directors, employees, consultants and contractors of Napo harmless from and against any losses, costs, damages, liabilities, fees and expenses arising out of any third-party claim related to the Company’s gross negligence, breach of covenants or the manufacture, sale or use of the product or products. In January 2015, the License Agreement was amended to decrease the one-time non-refundable license fee payable from $2,000,000 to $1,750,000 in exchange for acceleration of the payment of the fee. In 2015, payments totaling $1.2 million were made, and the balance of $425,000 was paid in March of 2016. The License Fee Payable of $0 and $425,000 is included in the Company’s balance sheet at September 30, 2016 and December 31, 2015, respectively. Additionally, the terms of the License Agreement were amended to require the mutual agreement of the parties for payment of the license fee to be remitted in the form of the Company’s common stock. The Company may also, at its sole discretion, elect to remit any milestone payments and/or royalties in the form of the Company’s common stock. Given that Napo is a significant shareholder of the Company, the abatement of the license fee amount has been recorded as a capital contribution in the accompanying condensed financial statements.

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2016
Balance Sheet Components
Balance Sheet Components	5. Balance Sheet Components Property and Equipment Property and equipment at September 30, 2016 and December 31, 2015 consisted of the following: September 30, December 31, 2016 2015 Lab equipment $ $ Clinical equipment Software — Work in-process — — Total property and equipment at cost Accumulated Depreciation ) ) Property and Equipment, net $ $ Depreciation expense for the three and nine month periods ended September 30, 2016 and 2015 was as follows: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Depreciation - Lab Equipment - research and developoment expense $ $ — $ $ — Depreciation - Clinical Equipment - research and development expense — — Depreciation - Software - general and administrative expense — — Total Depreciation Expense $ $ — $ $ — Accrued Expenses Accrued expenses at September 30, 2016 and December 31, 2015 consist of the following: September 30, December 31, 2016 2015 Accrued compensation and related: Accrued vacation $ $ Accrued payroll — Accrued payroll tax Accrued interest Accrued contract manufacturing costs — Accrued clinical Accrued other Total $ $

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	6. Commitments and Contingencies Operating Leases Effective July 1, 2015, the Company leases its San Francisco, California headquarters under a non-cancelable sub-lease agreement that expires August 31, 2018. The Company provided cash deposits of $122,163, consisting of a security deposit of $29,539 and prepayment of the last three months of the lease of $92,623, which is identified as other assets on the Company’s balance sheet. Future minimum lease payments under non-cancelable operating leases as of September 30, 2016 are as follows: Years ending December 31, Amount 2016 - October through December $ 2017 2018 Total minimum lease payments $ The Company recognizes rent expense on a straight-line basis over the non-cancelable lease period. Rent expense under the non-cancelable operating lease was $90,278 and $270,835 for the three and nine months ended September 30, 2016, and $90,278 and $90,278 for the three months ended September 30, 2015, which are included in general and administrative expense in the Company’s statement of operations and comprehensive loss. Since March 1, 2014, the date the Service Agreement terminated (Note 4), the Company paid Napo $33,897 for rent related to the office space utilized by the Company for the months of March, April and May 2014. Effective June 1, 2014, the Company assumed the existing sublease from Napo. The term of the assumed sublease was from June 1, 2014 through June 30, 2015. Rent expense under the sub-lease was $34,799 and $69,598 for the three and six months ended June 30, 2015, which was included in general and administrative expense in the Company’s statement of operations and comprehensive loss. Contract Manufacturing Commitment Effective June 26, 2014 the Company entered into a technology transfer and commercial manufacturing agreement (the “Transfer Agreement”) with a contract manufacturer in Italy (the “Manufacturer”), whereby the Company and the Manufacturer will cooperate to develop and refine the manufacturing process for the Company’s prescription and non-prescription products. Pursuant to the Transfer Agreement, the Company was to make prepayments to the Manufacturer as follows: (1) a start-up fee of €500,000, €250,000 of which was to be paid at the earlier to occur of September 15, 2014 or the closing date of an initial public offering and €250,000 of which was to be paid at the time of installation and qualification of the Company’s equipment at their facility, (2) related to the technology transfer, €620,000, €310,000 of which was paid subsequent to the signature of the Transfer Agreement and €310,000 of which was to be paid after the delivery of a final study report, (3) for design of a portion of the Manufacturer’s facility, €100,000 was to be paid within five days of the signature of the Transfer Agreement, and (4) a €300,000 bonus fee payable in two equal installments, the first of which is due by the end of March 2015, with the remainder paid by the end of December 2015. The first €150,000 of the bonus fee payable was paid in May 2015. Additionally, the Transfer Agreement stipulated that the Company was to pay the Manufacturer an aggregate of €500,000 upon the delivery of agreed-upon levels of satisfactory product. Further, the Company issued the Manufacturer warrants to purchase 16,666 shares of common stock with an exercise price of 90% of the initial public offering price, amended to $6.30 in March 2015. (Note 7) Effective February 12, 2015, March 25, 2015 and July 15, 2015 the Company entered into amendments delaying payments to the Manufacturer as follows: (i) the €500,000 start-up fee was due by the end of April 2015 and has been paid during the year ended December 31, 2015, (ii) related to the technology transfer, of the remaining €310,000, €215,000 was due April 2015 and €95,000 was due June 30, 2015, both of which were paid during the year ended December 31, 2015, (iii) related to the design of a portion of the Manufacturer’s facility, the payment has increased to €170,000, €150,000 of which was due at the end of April 2015 and €20,000 was due on June 30, 2015, both of which have been paid during the year ended December 31, 2015 (iv) the fees linked to the deliverables are now due €250,000 on December 31, 2015 and €250,000 on March 31, 2016, 2015, (v) the bonus fee payable of €300,000, €150,000 was due at the end of April 2015 and has been paid during the year ended December 31, 2015 and €150,000 due at December 31, 2015. In May 2015, the Company entered into a Memorandum of Understanding (“MOU”) with the contract manufacturer and paid the start-up fee of €500,000 and the technology transfer fee of €215,000. In accordance with the terms of the Memorandum of Understanding, the Manufacturer will supply 400Kg of the Company’s API at no cost in anticipation of the future deduction by December 2015. The final €250,000 was paid on March 29, 2016. In December 2015, we entered into an amendment to our technology transfer and commercial manufacturing agreement with our contract manufacturer in Italy delaying a €150,000 bonus fee payment which was originally due on December 31, 2015 to March 31, 2016. On April 4, 2016, the Company further amended the payment date to June 30, 2016. The Company paid the final €150,000 bonus fee on July 15, 2016. The Company expenses the total cost of the contract ratably over the estimated life of the contract, or the total amount paid if greater. As of September 30, 2016 and December 31, 2015, the amortized costs exceeded amounts paid by $0 and $110,141, respectively, which are included in accrued manufacturing costs in accrued liabilities in the Company’s balance sheet. Debt Obligations See Note 7—Debt and Warrants. Contingencies From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business. The Company believes there is no litigation pending that could have, individually or in the aggregate, a material adverse effect on the financial position, results of operations or cash flows.

Debt and Warrants

Debt and Warrants	9 Months Ended
	Sep. 30, 2016
Debt and warrants
Debt and Warrants	7. Debt and Warrants Convertible Notes and Warrants 2013 Convertible Notes From July through September 2013, the Company issued four convertible promissory notes (collectively the “Notes”) for gross aggregate proceeds of $525,000 to various third-party lenders. The Notes bore interest at 8% per annum. The Notes automatically matured and the entire outstanding principal amount, together with accrued interest, was due and payable in cash at the earlier of July 8, 2015 (the “Maturity Date”) or ten business days after the date of consummation of the initial closing of a first equity round of financing. The Company consummated a first equity round of financing prior to the Maturity Date with a pre-money valuation of greater than $3.0 million, and, accordingly, principal and accrued interest was converted into shares of common stock at 75% of the purchase price paid by such equity investors. These notes were all converted to common stock in February 2014 upon the issuance of the convertible preferred stock. In February 2014, in connection with the first equity round of financing and issuance of the Series A convertible preferred stock, the noteholders exercised their option to convert their Notes into 207,664 shares of common stock and accrued interest was paid in cash to the noteholders. The accreted interest expense related to the discount on the Notes was $1,443 for the period from January 1, 2014 to the conversion date of the Notes. Upon conversion, the entire remaining debt discount of $4,071 was recorded as interest expense. In connection with the Notes, the Company issued to the noteholders warrants, which became exercisable to purchase an aggregate of 207,664 shares of common stock as of the issuance of the first equity round of financing (the “Warrants”). The Warrants have a $2.53 exercise price, are fully exercisable from the initial date of the first equity round of financing, and have a five-year term subsequent to that date. 2014 Convertible Notes On June 2, 2014, pursuant to a convertible note purchase agreement, the Company issued convertible promissory notes in the aggregate principal amount of $300,000 to two accredited investors, including a convertible promissory note for $200,000 to a board member to which Series A preferred stock was sold. These notes accrued interest at 3% per annum and automatically were to mature on June 1, 2015. Interest expense for the three and nine months ended September 30, 2015 was $0 and $3,237 and is included in interest expense in the statement of operations and comprehensive loss. Accrued interest is $8,507 and is included in accrued liabilities in the balance sheet. All interest was to be paid in cash upon maturity. Upon the closing of the IPO, the outstanding principal amount automatically converted into 53,571 shares common stock at $5.60, as amended in March 2015. Upon issuance, the Company analyzed the beneficial nature of the conversion terms and determined that a beneficial conversion feature (“BCF”) existed because the effective conversion price on issuance of the notes was less than the fair value at the time of the issuance. We calculated the value of the BCF using the intrinsic method and recorded a BCF of $75,000 as a discount to the notes payable and to additional paid-in capital. For the three and nine months ended September 30, 2015, the Company we amortized $0 and $31,250, respectively, of the discount, which has also been recorded as interest expense in the statement of operations and comprehensive loss. On July 16, 2014, pursuant to a convertible note purchase agreement, the Company issued a convertible promissory note in the principal amount of $150,000 to an accredited investor. This note accrued interest at 3% per annum and automatically was to mature on June 1, 2015. Interest expense for the three and nine months ended September 30, 2015 was $0 and $1,627 and is included in interest expense in the statement of operations and comprehensive loss. Accrued interest is $3,711 and is included in accrued liabilities in the balance sheet. All interest was to be paid in cash upon maturity. Upon the closing of the IPO, the outstanding principal amount automatically converted into 26,785 shares of common stock at $5.60, as amended in March 2015. Upon issuance, the Company analyzed the beneficial nature of the conversion terms and determined that a BCF existed because the effective conversion price was less than the fair value at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method and recorded a BCF of $37,500 as a discount to the notes payable and to additional paid-in capital. For the three and nine months ended September 30, 2015, the Company amortized $0 and $17,857 of the discount, respectively, which has also been recorded as interest expense in our statement of operations and comprehensive loss. In connection with the Transfer Agreement (Note 7) the Company issued fully vested and immediately exercisable warrants to the Manufacturer to purchase 16,666 shares of common stock at 90% of the IPO price, amended to $6.30 in March 2015, for a period of five years. The fair value of the warrants, $37,840, was recorded as research and development expense and additional paid-in capital in June 2014. The warrants were originally valued using the Black-Scholes model with the following assumptions: stock price of $4.83, exercise price of $4.35, term of five years, volatility of 49%, dividend yield of 0%, and risk-free interest rate of 1.64%. On December 23, 2014, pursuant to a convertible note purchase agreement, the Company issued convertible promissory notes in the aggregate principal amount of $650,000 to three accredited investors, including a convertible promissory note for $250,000 to the same board member to which the June 2, 2014 $200,000 convertible promissory note was issued and to which Series A preferred stock was sold. These notes accrued interest at 12% per annum and became payable within thirty days following the IPO. Interest expense for the three and nine months ended September 30, 2015 was $0 and $28,210 and is included in interest expense in the statement of operations and comprehensive loss. Accrued interest is $30,132 and is included in accrued liabilities in the balance sheet. All interest was to be paid in cash upon maturity. Upon consummation of the Company’s IPO, the noteholders converted the notes into 116,070 shares of common stock at a conversion price equal to 80% of the IPO price, amended to $5.60 in March 2015. In connection with these notes, the Company also issued the lenders a fully vested warrant to purchase shares of the Company’s common stock at an exercise price equal to 80% of the IPO price, amended to $5.60 in March 2015. These warrants entitle the noteholders to purchase 58,035 shares of common stock. The fair value of the warrants, $147,943, was recorded as a debt discount and liability at December 23, 2014. The Company amortized $0 and $141,890 of this discount during the three and nine months ended September 30, 2015 which has been recorded as interest expense in our statement of operations and comprehensive loss. The warrants were originally valued using the Black-Scholes model with the following assumptions: stock price of $4.59, exercise price of $4.15, term of three years expiring December 2017, volatility of 49%, dividend yield of 0%, and risk-free interest rate of 1.10%. Based on the circumstances, the value derived using the Black-Scholes model approximated that which would be obtained using a lattice model. The debt discount was to be recorded as interest expense over the one hundred ninety days from issuance of the notes through their first maturity date of July 31, 2015, beginning in January 2015. The Company analyzed the beneficial nature of the conversion terms and determined that a BCF existed because the effective conversion price was less than the fair value at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method. A BCF of $502,057 has been recorded as a discount to the notes payable and to additional paid-in capital. For the three and nine months ended September 30, 2015, the Company amortized $0 and $484,329 of the BCF which has also been recorded as interest expense in our statement of operations and comprehensive loss. 2015 Convertible Notes In February 2015, the Company issued convertible promissory notes to two accredited investors in the aggregate principal amount of $250,000. These notes were issued pursuant to the convertible note purchase agreement dated December 23, 2014. In connection with the issuance of the notes, the Company issued the lenders warrants to purchase 22,320 shares at $5.60 per share, which expire December 31, 2017. Principal and interest of $103,912 was paid in May 2015 for $100,000 of these notes. The remaining outstanding note of $150,000 is payable to the investor at an effective simple interest rate of 12% per annum, and was due in full on July 31, 2016. On July 28, 2016, the Company entered into an amendment to delay the repayment of the principal and related interest under the terms of the remaining note from July 31, 2016 to October 31, 2016. On November 8, 2016, the Company entered into an amendment to extend the maturity date of the remaining note from October 31, 2016 to January 1, 2017. In exchange for the extension of the maturity date, on November 8, 2016, the Company’s board of directors granted the lendor a warrant to purchase 120,000 shares of the Company’s common stock for $0.01 per share. The warrant is exercisable at any time on or before July 28, 2022, the expiration date of the warrant. The remaining note is included in notes payable in the Company’s balance sheet. The Company has accrued interest of $29,392, which is included in accrued liabilities in the Company’s balance sheet, and incurred $4,537 and $11,342 in interest expense in the three and nine months ended September 30, 2015, and $4,537 and $13,512 in interest expense in the three and nine months ended September 30, 2016. The note remains outstanding as the investor elected not to convert the note as per the terms of the agreement. The Company analyzed the beneficial nature of the conversion terms and determined that a BCF existed because the effective conversion price was less than the fair value at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method. A BCF of for the full face value was recorded as a discount to the notes payable and to additional paid-in capital. For the three and nine months ended September 30, 2015, the Company amortized $26,786 and $250,000 of the BCF as interest expense in the Company’s statement of operations and comprehensive income. In March 2015, the Company entered into a non-binding letter of intent with Dechra Pharmaceuticals PLC (“Dechra”). In connection therewith, Dechra paid the Company $1.0 million. At March 31, 2015, the Company had recorded this amount as a loan advance on the balance sheet. In April 2015, Dechra purchased $1.0 million of convertible promissory notes from the Company, the terms of which provided that such notes were to be converted into shares of the Company’s common stock upon the closing of an IPO at a conversion price of $5.60 per share. In connection with the purchase of the notes, the Company issued Dechra a warrant to purchase 89,285 shares at $5.60 per share, which expires December 31, 2017. The notes accrued simple interest of 12% per annum and, upon consummation of the Company’s IPO in May 2015, converted into 178,571 shares of the Company’s common stock. The Company analyzed the beneficial nature of the conversion terms and determined that a BCF existed because the effective conversion price was less than the fair value at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method. A BCF of for the full face value was recorded as a discount to the notes payable and to additional paid-in capital. For the three and nine months ended September 30, 2015, the Company amortized $0 and $1,000,000 of the BCF as interest expense in the Company’s statement of operations and comprehensive income. As of September 30, 2016 and December 31, 2015, the convertible notes payable obligations were as follows: September 30, December 31, 2016 2015 Notes payable $ $ Unamortized note discount — — Net debt obligation $ $ Interest expense on the convertible notes payable was as follows: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Nominal Interest $ $ $ $ Amortization of debt discount — $ $ $ $ At September 30, 2016 and December 31, 2015, interest payable on convertible notes payable was $89,511 and $75,999, respectively. Notes Payable—Bridge Loans On October 30, 2014, the Company entered into a standby bridge financing agreement with two lenders, which was amended and restated on December 3, 2014, which provided a loan commitment in the aggregate principal amount of $1.0 million (the “Bridge”). Proceeds to the Company were net of a $100,000 debt discount under the terms of the Bridge and net of $104,000 of debt issuance costs. This debt discount and debt issuance costs were recorded as interest expense using the effective interest method, over the six month term of the Bridge. The Bridge became payable upon the IPO. The Bridge was repaid in May 2015, including interest thereon in an amount of $1,321,600. In connection with the Bridge, the lenders were granted warrants to purchase 178,569 shares of the Company’s common stock determined by dividing $1.0 million by the exercise price of 80% of the IPO price, amended to $5.60 in March 2015. The fair value of the warrants, $505,348, was originally recorded as a debt discount and liability at December 3, 2014. The warrants were originally valued using the Black-Scholes model with the following assumptions: stock price of $5.01, exercise price of $5.23, term of five years expiring December 2019, volatility of 63%, dividend yield of 0%, and risk-free interest rate of 1.61%. Based on the circumstances, the value derived using the Black-Scholes model approximated that which would be obtained using a lattice model. The debt discount was recorded as interest expense over the six month term of the Bridge. Of the aggregate debt discount of $605,348 (warrants and original $100,000 discount), $521,291 was recorded as interest expense during the year ended December 31, 2015. Additional financing costs of $104,000 were incurred related to the Bridge and deferred on closing. These were recognized as interest expense over the six-month term of the Bridge using the effective interest method. The Company amortized the remaining $86,667 of these deferred financing charges by the end of May 2015 was recorded the amortized amounts as interest expense. The Company fully extinguished the debt in May 2015. Interest expense on the notes payable-bridge loans was as follows: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Nominal interest $ — $ — $ — $ Amortization of debt discount — — — Debt issuance costs — — — Repayment premium — — — $ — $ — $ — $ Standby Line of Credit In August 2014, the Company entered into a standby line of credit with an accredited investor for up to $1.0 million pursuant to a Line of Credit and Loan Agreement dated August 26, 2014. In connection with the entry into the standby line of credit, the Company issued the lender a fully vested warrant to purchase 33,333 shares of common stock at an exercise price equal to 80% of the IPO price, amended to $5.60 in March 2015, which expires in August 2016. The fair value of the warrants, $114,300, was recorded as interest expense and additional paid-in capital in August 2014. The warrants were originally valued using the Black-Scholes model with the following assumptions: stock price of $8.00, exercise price of $6.40, term of two years, volatility of 52%, dividend yield of 0%, and risk-free interest rate of 0.52%. The line of credit expired on March 31, 2015 and there have been no drawdowns under the facility. Long-term Debt In August 2015, the Company entered into a loan and security agreement with a lender for up to $8.0 million, which provided for an initial loan commitment of $6.0 million. The loan agreement requires the Company to maintain $4.5 million of the proceeds in cash, which may be reduced or eliminated on the achievement of certain milestones. An additional $2.0 million is available contingent on the achievement of certain further milestones. The agreement has a term of three years, with interest only payments through February 29, 2016. Thereafter, principal and interest payments will be made with an interest rate of 9.9%. Additionally, there will be a balloon payment of $560,000 on August 1, 2018. This amount is being recognized over the term of the loan agreement and the effective interest rate, considering the balloon payment, is 15.0%. Proceeds to the Company were net of a $134,433 debt discount under the terms of the loan agreement. This debt discount is being recorded as interest expense, using the interest method, over the term of the loan agreement. Under the agreement, the Company is entitled to prepay principal and accrued interest upon five days prior notice to the lender. In the event of prepayment, the Company is obligated to pay a prepayment charge. If such prepayment is made during any of the first twelve months of the loan agreement, the prepayment charge will be (a) during such time as the Company is required to maintain a minimum cash balance, 2% of the minimum cash balance amount plus 3% of the difference between the amount being prepaid and the minimum cash balance, and (b) after such time as the Company is no longer required to maintain a minimum cash balance, 3% of the amount being prepaid. If such prepayment is made during any time after the first twelve months of the loan agreement, 1% of the amount being prepaid. On April 21, 2016, the loan and security was amended upon which the Company repaid $1.5 million of the debt out of restricted cash. The amendment modified the repayment amortization schedule providing a four-month period of interest only payments for the period from May through August 2016. As of September 30, 2016 and December 31, 2015, the net long-term debt obligation was as follows: September 30, December 31, 2016 2015 Debt and unpaid accrued end-of-term payment $ $ Unamortized note discount ) ) Unamortized debt issuance costs ) ) Net debt obligation $ $ Current portion of long-term debt $ $ Long-term debt, net of discount $ Total $ $ Future principal payments under the long-term debt as of September 30, 2016 are as follows: Years ending December 31 (except 2016 which is the three months ending December 31) Amount 2016 October through December $ 2017 2018 Total future principal payments $ 2018 end-of-term payment $ $ Less: unaccreted end-of-term payment at September 30, 2016 $ ) Debt and unpaid accrued end-of-term payment $ The obligation at September 30, 2016 and December 31, 2015 includes an end-of-term payment of $560,000, which accretes over the life of the loan as interest expense. As a result of the debt discount and the end-of-term payment, the effective interest rate for the loan differs from the contractual rate. Interest expense on the long-term debt was as follows: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Nominal Interest $ $ $ $ Amortization of debt discount Accretion of end-of-term payment Debt issuance costs $ $ $ $ At September 30, 2016 and December 31, 2015, interest payable on long-term debt was $32,906 and $51,150, respectively. At the IPO, the Company’s outstanding warrants to purchase convertible preferred stock were all converted to warrants to purchase common stock. The Company’s warrant activity is summarized as follows: September 30, September 30, 2016 2015 Warrants outstanding January 1 Issuances — Cancellations ) — Warrants outstanding September 30

Redeemable Convertible Preferre

Redeemable Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2016
Redeemable Convertible Preferred Stock
Redeemable Convertible Preferred Stock	8. Redeemable Convertible Preferred Stock In February, April and May 2014, the Company issued 3,015,902 shares of convertible preferred stock in exchange for $6,777,338. The redemption value of the convertible preferred stock was $9.0 million. The differences between the respective redemption values/liquidation preference and carrying values are being accreted over the period from the date of issuance to the earliest possible redemption date, February 2017. The Company has recorded accretion of $0 and $263,060 for the three and nine months ended September 30, 2015. Costs incurred in connection with the issuance of Series A redeemable convertible preferred stock during the year ended December 31, 2014 were $119,097 which have been recorded as a reduction to the carrying amounts of convertible preferred stock and are being accreted to the carrying value of the applicable preferred stock to the redemption date. The Company has recorded accretion of $0 and $83,334 for the three and nine months ended September 30, 2015. On May 18, 2015, the Company completed its IPO. In connection with the IPO, the Company’s 3,015,902 outstanding shares of convertible preferred stock were automatically converted into 2,010,596 shares of common stock. The Convertible Preferred Stock was classified outside of stockholders’ (deficit) in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity Common Stock The Company’s second amended and restated certificate of incorporation authorizes the Company to issue 50,000,000 shares of common stock $0.0001 par value. The holders of common stock are entitled to one vote for each share of common stock held at all meetings of stockholders. The number of authorized shares of common stock may be increased or decreased by the affirmative vote of the holders of shares of capital stock of the Company representing a majority of the votes represented by all shares (including Preferred Stock) entitled to vote. In June 2016, the Company entered into a common stock purchase agreement with a private investor (the “CSPA”), which provides that, upon the terms and subject to the conditions and limitations set forth therein, the investor is committed to purchase up to an aggregate of $15.0 million of the Company’s common stock over the approximately 30-month term of the agreement. Upon execution of the CSPA, the Company sold 222,222 shares of its common stock to the investor at $2.25 per share for net proceeds of $394,534, reflecting gross proceeds of $500,000 and offering expenses of $104,398. In consideration for entering into the CSPA, the Company issued 456,667 shares of its common stock to the investor. Concurrently with entering into the CSPA, the Company also entered into a registration rights agreement with the investor (the “Registration Agreement”), in which the Company agreed to file one or more registration statements, as permissible and necessary to register under the Securities Act of 1933, as amended, the sale of the shares of the Company’s common stock that have been and may be issued to the investor under the CSPA. On June 22, 2016 and September 22, 2016, the Company filed registration statements on Form S-1 (File Nos. 333-212173 and 333-213751) pursuant to the terms of the Registration Agreement, which registration statements were declared effective on July 8, 2016 and October 5, 2016, respectively. In the three months ended September 30, 2016, pursuant to the CSPA, the Company sold 1,000,000 shares of the Company’s common stock in exchange for $1,381,890 of cash proceeds, and on October 4, 2016, the Company sold an additional 348,601 shares of the Company’s common stock in exchange for $794,810 of cash proceeds. Of the $15.0 million available under the CSPA, the Company has received $1,881,890 in aggregate cash proceeds through September 30, 2016 and $2,676,700 as of November 14, 2016. As of September 30, 2016 and December 31, 2015, the Company had reserved shares of common stock for issuance as follows: September 30, December 31, 2016 2015 Options issued and outstanding Options available for grant RSUs issued and outstanding Warrants issued and outstanding Convertible notes Total Preferred Stock The Company’s second amended and restated certificate of incorporation authorizes the Company to issue 10,000,000 shares of preferred stock $0.0001 par value. No shares of preferred stock were issued or outstanding at September 30, 2016 or December 31, 2015.

Stock Incentive Plans

Stock Incentive Plans	9 Months Ended
	Sep. 30, 2016
Stock Incentive Plans
Stock Incentive Plans	10. Stock Incentive Plans 2013 Equity Incentive Plan Effective November 1, 2013, the Company’s board of directors and sole stockholder adopted the Jaguar Animal Health, Inc. 2013 Equity Incentive Plan (the “2013 Plan”). The 2013 Plan allows the Company’s board of directors to grant stock options, restricted stock awards and restricted stock unit awards to employees, officers, directors and consultants of the Company. As of December 31, 2013, the Company had reserved 300,000 shares of its common stock for issuance under the 2013 Plan. In April 2014, the board of directors amended the 2013 Plan to increase the shares reserved for issuance to 847,533 shares. Following the effective date of the IPO and after effectiveness of any grants under the 2013 Plan that were contingent on the IPO, no additional stock awards will be granted under the 2013 Plan. Outstanding grants continue to be exercisable, however any unissued shares under the plan and any forfeitures of outstanding options do not rollover to the 2014 Stock Incentive Plan. 2014 Stock Incentive Plan Effective May 12, 2015, the Company adopted the Jaguar Animal Health, Inc. 2014 Stock Incentive Plan (“2014 Plan”). The 2014 Plan provides for the grant of options, restricted stock and restricted stock units to eligible employees, directors and consultants to purchase the Company’s common stock. The Company reserved 333,333 shares of common stock for issuance pursuant to the 2014 Plan. The Company added 162,498 shares to the plan in accordance with the Plan that provides for automatic share increases on the first day of each fiscal year in the amount of 2% of the outstanding number of shares of the Company’s common stock on last day of the preceding calendar year. The 2014 Plan replaces the 2013 Plan except that all outstanding options under the 2013 Plan remain outstanding until exercised, cancelled or until they expire. In July 2015, the Company amended the 2014 Plan reserving an additional 550,000 shares under the plan contingent upon approval by the Company’s stockholders at the June 2016 annual stockholders meeting. In June 2016, the Company amended the 2014 Plan once again, modifying the increase from 550,000 shares to 1,550,000 shares, which was approved at the annual stockholders meeting. Stock Options and Restricted Stock Units (“RSUs”) The following table summarizes incentive plan activity for the nine months ended September 30, 2016: Weighted Weighted Average Shares Average Remaining Aggregate Available Stock Options RSUs Stock Option Contractual Life Intrinsic for Grant Outstanding Outstanding Exercise Price (Years) Value Combined Incentive Plan Balance—December 31, 2015 $ $ — Q1 2016 2013 Equity Incentive Plan Activity: Options Cancelled ) $ RSUs vested and released ) RSUs Cancelled ) Q2 2016 2013 Equity Incentive Plan Activity: Options Cancelled ) $ Q1 2016 2014 Stock Incentive Plan Activity: Additional shares authorized Q2 2016 2014 Stock Incentive Plan Activity: Additional shares authorized Options granted ) $ Options cancelled ) $ Q3 2016 2014 Stock Incentive Plan Activity: Options granted ) $ Options cancelled ) $ Combined Incentive Plan Balance—September 30, 2016 $ Options vested and exercisable—September 30, 2016 $ $ — Options vested and expected to vest—September 30, 2016 $ $ — The weighted average fair value of options granted to purchase common stock was $0.89 and $3.52 for the nine months ended September 30, 2016 and 2015, respectively. The number of options that vested in the nine months ended September 30, 2016 and 2015 was 480,377 and 452,965, respectively. The grant date fair value of options vested was $542,999 and $544,452 for the nine months ended September 30, 2016 and 2015, respectively. The weighted-average fair value of options exercised was $0.43 in the nine months ended September 30, 2015 of which there was no intrinsic value. No options were exercised in the nine months ended September 30, 2016. The Company granted RSUs in 2014 and 2015 under the 2013 Equity Incentive Plan. The units granted vest upon the occurrence of both a liquidity event and satisfaction of the service-based requirement. The time-based vesting provides that 50% of the RSU will vest on January 1, 2016 and the remaining 50% vest on July 1, 2017. The Company began recording stock-based compensation expense relating to the RSU grants effective May 18, 2015, the date of the Company’s initial public offering, and the date the liquidity condition was met. The stock-based compensation expense is based on the grant date fair value which is the equivalent to the fair market value on the date of grant, and is amortized over the vesting period using the straight-line method, net of estimated forfeitures. On January 1, 2016, the Company issued 17,546 shares of its common stock in exchange for 27,768 vested and released RSUs, net of 10,172 RSU shares used to pay withholding taxes. Stock-Based Compensation The following table summarizes stock-based compensation expense related to stock options and RSUs for the three months ended September 30, 2016 and 2015, and are included in the statements of operations and comprehensive loss as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Research and development expense $ $ $ $ Sales and marketing expense General and administrative expense Total $ $ $ $ As of September 30, 2016, the Company had $1,328,841 of unrecognized stock-based compensation expense for outstanding stock options and RSUs, which is expected to be recognized over a weighted-average period of 2.22 years. The estimated grant-date fair value of employee stock options was calculated using the Black-Scholes option-pricing model using the following assumptions: Three months ended Nine Months Ended September 30, September 30, 2016 2015 2016 2016 Weighted-average volatility 69.39-71.38% 55.43-59.05% 66.25-71.38% 55.43-59.05% Weighted-average expected term (years) 5.00-5.82 5.15-5.77 5.00-5.82 5.15-5.77 Risk-free interest rate 1.10-1.29% 1.60-1.76% 1.10-1.49% 1.60-1.76% Expected dividend yield — — — — The estimated grant-date fair value of non-employee stock options was calculated using the Black-Scholes option-pricing model using the following assumptions: Three months ended Nine Months Ended September 30, September 30, 2016 2015 2016 2016 Weighted-average volatility 78.30-80.02% 74.21% 78.30-80.04% 74.21% Weighted-average expected term (years) 9.17-10.00 10.00 9.19-10.00 10.00 Risk-free interest rate 1.32-1.67% 2.05% 1.32-1.74% 2.05% Expected dividend yield — — — —

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions
Related Party Transactions	11. Related Party Transactions The Company was a majority-owned subsidiary of Napo. Additionally, Lisa A. Conte, Chief Executive Officer of the Company, is also the interim Chief Executive Officer of Napo Pharmaceuticals, Inc. The Company has total outstanding receivables (payables) from/to Napo at September 30, 2016 and December 31, 2015 as follows: September 30, December 31, 2016 2015 Due from/(to) Napo $ $ Royalty payable to Napo ) ) License Fee payable to Napo — ) Net receivable (payable) to Napo $ $ ) Effective July 1, 2016, the Company and Napo agreed to share employee services. The agreement enables Jaguar to invoice Napo for personnel expenses for the estimated time its employees work on behalf of Napo, rent for space used both by Napo employees, and for a prorated amount of space used by Jaguar employees when working on behalf of Napo, and a fixed overhead amount to cover office supplies and copier use. The total amount of such services was $272,210 for the three months ended September 30, 2016 and are included in due from former parent in the Company’s balance sheet. The Company perodically purchases clinical trial material, crofelemer API and crude plant latex from Napo. In April 2016, the Company purchased 125mg Fulyzaq in exchange for $37,355 of which $19,723 has been used in clinical trials and the remaining $17,631 is included in prepaid expenses and other current assets in the Company’s balance sheet. In May 2016, the Company purchased crofelemer API from Napo in exchange for $174,299 all of which has been used in processing clinical trial material. And in June 2016, the Company purchased crude plant latex in exchange for $66,358 none of which has been used in operations and all of which is included in prepaid expenses and other current assets in the Company’s balance sheet. The Company paid for these purchases in June 2016.

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders	9 Months Ended
	Sep. 30, 2016
Net Loss Per Share Attributable to Common Stockholders
Net Loss Per Share Attributable to Common Stockholders	12. Net Loss Per Share Attributable to Common Stockholders The following table presents the calculation of basic and diluted net loss per common share for the three and nine months ended September 30, 2016 and 2015: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net loss attributable to common shareholders $ ) $ ) $ ) $ ) Shares used to compute net loss per common share, basic and diluted Net loss per share attributable to common shareholders, basic and diluted $ ) $ ) $ ) $ ) Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities which include stock options, convertible preferred stock and common stock warrants have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. The following outstanding common stock equivalents have been excluded from diluted net loss per common share for the three and nine months ended September 30, 2016 and 2015 because their inclusion would be anti-dilutive: September 30, September 30, 2016 2015 Options Warrants to purchase common stock Restricted stock units Total

401(k) Plan

401(k) Plan	9 Months Ended
	Sep. 30, 2016
401(k) Plan
401(k) Plan	13. 401(k) Plan The Company sponsors a 401(k) defined contribution plan covering all employees. There were no employer contributions to the plan from plan inception through September 30, 2016.

Notice of Delisting or Failure

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard	9 Months Ended
	Sep. 30, 2016
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard	14. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard On August 22, 2016, the Company received notice from the Listing Qualifications Staff of The NASDAQ Stock Market notifying the Company that it no longer complies with NASDAQ Listing Rule 5550(b)(1) due to the Company’s failure to maintain a minimum of $2,500,000 in stockholders’ equity (or meet the alternatives of market value of listed securities of $35.0 million or net income from continuing operations). The current market value of the Company’s listed securities is approximately $14.8 million and the Company does not meet the net income from continuing operations test. The notification letter stated that the Company would be afforded 45 calendar days, or until October 6, 2016, to submit a plan to regain compliance and that if the plan was accepted, the Company may be granted an extension of up to 180 calendar days from the date of notification, or until February 18, 2017 to evidence compliance. On October 26, 2016, the Listing Qualifications Staff of the NASDAQ Stock Market notified the Company of its determination to grant the Company an extension of time to regain compliance with the Nasdaq Listing Rule 5550(b)(1) for a minimum level of stockholders equity based on review of a plan submitted by the Company. The plan consisted of a proposed merger with Napo Pharmaceuticals, Inc., raising capital through the public or private sale of the Company’s securities, and entering into a potential collaboration with a third party. The Company has until February 21, 2017 to evidence compliance with the NASDAQ continued listing requirements.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events
Subsequent Events	15. Subsequent Events The Company completed an evaluation of the impact of subsequent events through November 14, 2016, the date these financial statements were issued. 2015 Convertible Notes Payable On November 8, 2016, the Company entered into an amendment to extend the due date of the $150,000 convertible note payable from October 31, 2016 to January 1, 2017. In exchange for the extension of the maturity date, on November 8, 2016, the Company’s board of directors granted the convertible note holder a warrant to purchase 120,000 shares of the Company’s common stock for $0.01 per share. The warrant is exercisable at any time on or before July 28, 2022, the expiration date of the warrant. Common Stock Purchase Agreement with an Existing Private Investor On October 19, 2016, we entered into a Common Stock Purchase Agreement with an existing private investor. Upon execution of the agreement we sold 170,455 shares of our common stock in exchange for $150,000 in cash proceeds. CSPA On October 4, 2016, pursuant to the CSPA, the Company sold an additional 348,601 shares of the Company’s common stock in exchange for $794,810 of cash proceeds.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its financial statements and the accompanying notes. The accounting policies that reflect the Company’s more significant estimates and judgments and that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results are valuation of stock options; valuation of warrant liabilities; impairment of long lived assets; useful lives for depreciation; valuation adjustments for excess and obsolete inventory; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies. Those estimates could change, and as a result, actual results could differ materially from those estimates.
Concentration of Credit Risk and Cash and Cash Equivalents	Concentration of Credit Risk and Cash and Cash Equivalents The financial instrument that potentially subjects the Company to a concentration of credit risk is that is held at a financial institution of high credit standing. Cash is generally in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Therefore, the Company is exposed to credit risk in the event that the balances exceed FDIC insurance limits. The carrying value of cash approximates fair value at September 30, 2016 and December 31, 2015.
Fair Values	Fair Values The Company’s financial instruments include, cash and cash equivalents, accounts payable, accrued expenses, amounts due to Napo, the former parent, warrant liabilities, and debt. Cash is reported at fair value. The recorded carrying amount of accounts payable, accrued expenses and amounts due to Napo approximates their fair value due to their short-term nature. The carrying value of the interest-bearing debt approximates fair value based upon the borrowing rates currently available to the Company for bank loans with similar terms and maturities. See Note 3 for the fair value measurements, and Note 7 for the fair value of the Company’s warrant liabilities.
Restricted Cash	Restricted Cash On August 18, 2015, the Company entered into a long-term loan and security agreement with a lender for up to $8.0 million, which provided for an initial loan commitment of $6.0 million. The loan agreement required the Company to maintain a base minimum cash balance of $4.5 million until the Company met certain milestones and/or when the Company begins making principal payments. On December 22, 2015, the Company achieved certain milestones and the base minimum cash balance was reduced to $3.0 million. Aggregate principal payments of $2.1 million further reduced the restricted cash balance to $988,580 as of September 30, 2016. Restricted cash has been classified within current assets as the balance will be converted to cash before September 30, 2017.
Inventories	Inventories Inventories are stated at the lower of cost or market. The Company calculates inventory valuation adjustments when conditions indicate that the net realizable value is less than cost due to physical deterioration, usage, obsolescence, reductions in estimated future demand or reduction in selling price. Inventory write-downs are measured as the difference between the cost of inventory and estimated net realizable value. There have been no write-downs to date.
Property and Equipment	Property and Equipment Equipment is stated at cost, less accumulated depreciation. Equipment begins to be depreciated when it is placed into service. Depreciation is calculated using the straight-line method over the estimated useful lives of 3 to 10 years. Expenditures for repairs and maintenance of assets are charged to expense as incurred. Costs of major additions and betterments are capitalized and depreciated on a straight-line basis over their estimated useful lives. Upon retirement or sale, the cost and related accumulated depreciation of assets disposed of are removed from the accounts and any resulting gain or loss is included in income (loss) from operations.
Long-Lived Assets	Long-Lived Assets The Company regularly reviews the carrying value and estimated lives of all of its long-lived assets, including property and equipment to determine whether indicators of impairment may exist that warrant adjustments to carrying values or estimated useful lives. The determinants used for this evaluation include management’s estimate of the asset’s ability to generate positive income from operations and positive cash flow in future periods as well as the strategic significance of the assets to the Company’s business objectives. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount over the asset’s fair value. The Company has not recognized any impairment losses through September 30, 2016.
Research and Development Expense	Research and Development Expense Research and development expense consists of expenses incurred in performing research and development activities including related salaries, clinical trial and related drug and non-drug product costs, contract services and other outside service expenses. Research and development expense is charged to operating expense in the period incurred.
Revenue Recognition	Revenue Recognition Sales of Neonorm Calf and Foal to distributors are made under agreements that may provide distributor price adjustments and rights of return under certain circumstances. Until the Company develops sufficient sales history and pipeline visibility, revenue and costs of distributor sales will be deferred until products are sold by the distributor to the distributor’s customers. Revenue recognition depends on notification either directly from the distributor that product has been sold to the distributor’s customer, when the Company has access to the data. Deferred revenue on shipments to distributors reflect the estimated effects of distributor price adjustments, if any, and the estimated amount of gross margin expected to be realized when the distributor sells through product purchased from the Company. Accounts receivable from distributors are recognized and included in deferred revenue when shipped to the distributor. Inventory is relieved and revenue recognized upon shipment by the distributor to their customer. The Company had Neonorm revenues of $26,357 and $88,646 for the three and nine months ended September 30, 2016, and $77,666 and $203,195 for the three and nine months ended September 30, 2015.
Stock-Based Compensation	Stock-Based Compensation The Company’s 2013 Equity Incentive Plan and 2014 Stock Incentive Plan (see Note 10) provides for the grant of stock options, restricted stock and restricted stock unit awards. The Company measures stock awards granted to employees and directors at fair value on the date of grant and recognizes the corresponding compensation expense of the awards, net of estimated forfeitures, over the requisite service periods, which correspond to the vesting periods of the awards. The Company issues stock awards with only service-based vesting conditions, and records compensation expense for these awards using the straight-line method. The Company uses the grant date fair market value of its common stock to value both employee and non-employee options when granted. The Company revalues non-employee options each reporting period using the fair market value of the Company's common stock as of the last day of each reporting period.
Classification of Securities	Classification of Securities The Company applies the principles of ASC 480-10 “Distinguishing Liabilities from Equity” and ASC 815-40 “Derivatives and Hedging—Contracts in Entity’s Own Equity” to determine whether financial instruments such as warrants, contingently issuable shares and shares subject to repurchase should be classified as liabilities or equity and whether beneficial conversion features exist.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in the Company’s tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The Company accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate, as well as the related net interest and penalties.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is defined as changes in stockholders’ equity (deficit) exclusive of transactions with owners (such as capital contributions and distributions). For the three and nine months ended September 30, 2016 and 2015 there was no difference between net loss and comprehensive loss.
Segment Data	Segment Data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company is an animal health company focused on developing and commercializing prescription and non-prescription products for companion and production animals.
Basic and Diluted Net Loss Per Common Share	Basic and Diluted Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted-average number of common shares, including potential dilutive shares of common stock assuming the dilutive effect of potential dilutive securities. For periods in which the Company reports a net loss, diluted net loss per common share is the same as basic net loss per common share, because their impact would be anti-dilutive to the calculation of net loss per common share. Diluted net loss per common share is the same as basic net loss per common share for the three and nine months ended September 30, 2016 and 2015.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which provides guidance for accounting for leases. Under ASU 2016-02, the Company will be required to recognize the assets and liabilities for the rights and obligations created by leased assets. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which simplifies the presentation of deferred income taxes. Under ASU 2015-17, deferred tax assets and liabilities are required to be classified as noncurrent, eliminating the prior requirement to separate deferred tax assets and liabilities into current and noncurrent. The new guidance is effective for the Company beginning on January 1, 2017, with early adoption permitted. The standard may be adopted prospectively or retrospectively to all periods presented. The Company is currently assessing the timing of adoption of the new guidance, but does not expect it will have a material impact on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. ASU 2015-03 will be effective for the Company beginning in its first quarter of 2016, however early adoption is permitted for financial statements that have not been previously issued. The guidance is to be applied retrospectively to all periods presented. We adopted ASU 2015-03 on December 31, 2015. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40)—Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which provides guidance regarding management’s responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements for each annual and interim reporting period, management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). This ASU is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements. In June 2014, the FASB issued ASU No. 2014-12, “Compensation—Stock Compensation (Topic 718)”, which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This guidance will be effective for annual periods (and interim periods within those annual periods) beginning after December 15, 2015. The Company implemented this guidance for all interim and annual periods beginning after December 15, 2015. The adoption of this guidance did not have an impact on the Company’s financial condition, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016 and allows for prospective or retrospective application. The Company is evaluating the new guidance and has not determined the impact this pronouncement will have on its financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Summary of change in the estimated fair value of the warrant liability	Beginning Issuance of Change in Conversion Ending For the nine months ended September 30, 2015 $ $ $ ) $ —

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2016
Balance Sheet Components
Schedule of property and equipment	September 30, December 31, 2016 2015 Lab equipment $ $ Clinical equipment Software — Work in-process — — Total property and equipment at cost Accumulated Depreciation ) ) Property and Equipment, net $ $
Schedule of depreciation expense	Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Depreciation - Lab Equipment - research and developoment expense $ $ — $ $ — Depreciation - Clinical Equipment - research and development expense — — Depreciation - Software - general and administrative expense — — Total Depreciation Expense $ $ — $ $ —
Schedule of accrued expenses	September 30, December 31, 2016 2015 Accrued compensation and related: Accrued vacation $ $ Accrued payroll — Accrued payroll tax Accrued interest Accrued contract manufacturing costs — Accrued clinical Accrued other Total $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Leases, Operating
Schedule of future minimum payments for operating leases	Future minimum lease payments under non-cancelable operating leases as of September 30, 2016 are as follows: Years ending December 31, Amount 2016 - October through December $ 2017 2018 Total minimum lease payments $

Debt and Warrants (Tables)

Debt and Warrants (Tables)	9 Months Ended
	Sep. 30, 2016
Schedule of net long-term debt obligation	September 30, December 31, 2016 2015 Debt and unpaid accrued end-of-term payment $ $ Unamortized note discount ) ) Unamortized debt issuance costs ) ) Net debt obligation $ $ Current portion of long-term debt $ $ Long-term debt, net of discount $ Total $ $
Schedule of future annual principal payments under long-term debt	Future principal payments under the long-term debt as of September 30, 2016 are as follows: Years ending December 31 (except 2016 which is the three months ending December 31) Amount 2016 October through December $ 2017 2018 Total future principal payments $ 2018 end-of-term payment $ $ Less: unaccreted end-of-term payment at September 30, 2016 $ ) Debt and unpaid accrued end-of-term payment $
Schedule of interest expense on long-term debt	Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Nominal Interest $ $ $ $ Amortization of debt discount Accretion of end-of-term payment Debt issuance costs $ $ $ $
Summary of warrant activity	September 30, September 30, 2016 2015 Warrants outstanding January 1 Issuances — Cancellations ) — Warrants outstanding September 30
Convertible notes payable
Schedule of short-term debt obligations	September 30, December 31, 2016 2015 Notes payable $ $ Unamortized note discount — — Net debt obligation $ $
Schedule of interest expense on short-term debt	Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Nominal Interest $ $ $ $ Amortization of debt discount — $ $ $ $
Standby bridge financing agreement
Schedule of interest expense on short-term debt	Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Nominal interest $ — $ — $ — $ Amortization of debt discount — — — Debt issuance costs — — — Repayment premium — — — $ — $ — $ — $

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity
Schedule Of Common Stock Reserved For Future Issuance	September 30, December 31, 2016 2015 Options issued and outstanding Options available for grant RSUs issued and outstanding Warrants issued and outstanding Convertible notes Total

Stock Incentive Plans (Tables)

Stock Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2016
Summary of incentive plan activity	Weighted Weighted Average Shares Average Remaining Aggregate Available Stock Options RSUs Stock Option Contractual Life Intrinsic for Grant Outstanding Outstanding Exercise Price (Years) Value Combined Incentive Plan Balance—December 31, 2015 $ $ — Q1 2016 2013 Equity Incentive Plan Activity: Options Cancelled ) $ RSUs vested and released ) RSUs Cancelled ) Q2 2016 2013 Equity Incentive Plan Activity: Options Cancelled ) $ Q1 2016 2014 Stock Incentive Plan Activity: Additional shares authorized Q2 2016 2014 Stock Incentive Plan Activity: Additional shares authorized Options granted ) $ Options cancelled ) $ Q3 2016 2014 Stock Incentive Plan Activity: Options granted ) $ Options cancelled ) $ Combined Incentive Plan Balance—September 30, 2016 $ Options vested and exercisable—September 30, 2016 $ $ — Options vested and expected to vest—September 30, 2016 $ $ —
Summary of stock-based compensation expense	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Research and development expense $ $ $ $ Sales and marketing expense General and administrative expense Total $ $ $ $
Employee stock options
Schedule of estimated grant-date fair value of stock options calculated using the Black-Scholes option-pricing model	Three months ended Nine Months Ended September 30, September 30, 2016 2015 2016 2016 Weighted-average volatility 69.39-71.38% 55.43-59.05% 66.25-71.38% 55.43-59.05% Weighted-average expected term (years) 5.00-5.82 5.15-5.77 5.00-5.82 5.15-5.77 Risk-free interest rate 1.10-1.29% 1.60-1.76% 1.10-1.49% 1.60-1.76% Expected dividend yield — — — —
Non-employee stock options
Schedule of estimated grant-date fair value of stock options calculated using the Black-Scholes option-pricing model	Three months ended Nine Months Ended September 30, September 30, 2016 2015 2016 2016 Weighted-average volatility 78.30-80.02% 74.21% 78.30-80.04% 74.21% Weighted-average expected term (years) 9.17-10.00 10.00 9.19-10.00 10.00 Risk-free interest rate 1.32-1.67% 2.05% 1.32-1.74% 2.05% Expected dividend yield — — — —

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2016
Related Party Transactions
Schedule of total outstanding liabilities from/to Napo	September 30, December 31, 2016 2015 Due from/(to) Napo $ $ Royalty payable to Napo ) ) License Fee payable to Napo — ) Net receivable (payable) to Napo $ $ )

Net Loss Per Share Attributab32

Net Loss Per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Sep. 30, 2016
Net Loss Per Share Attributable to Common Stockholders
Schedule of calculation of basic and diluted net loss per common share	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net loss attributable to common shareholders $ ) $ ) $ ) $ ) Shares used to compute net loss per common share, basic and diluted Net loss per share attributable to common shareholders, basic and diluted $ ) $ ) $ ) $ )
Schedule of common stock equivalents excluded from the calculation of diluted net loss per common share	September 30, September 30, 2016 2015 Options Warrants to purchase common stock Restricted stock units Total

Organization and Business (Deta

Organization and Business (Details)	Oct. 04, 2016USD ($)shares	Feb. 08, 2016USD ($)$ / sharesshares	May 18, 2015USD ($)$ / sharesshares	Oct. 27, 2014shares	Jun. 11, 2013shares	Jun. 30, 2016USD ($)shares	Oct. 31, 2014	Sep. 30, 2016USD ($)shares	Sep. 30, 2016USD ($)segmentshares	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)shares	Oct. 26, 2014shares
Number of segments | segment									1
Reverse Stock Split
Common stock, shares authorized | shares								50,000,000	50,000,000		50,000,000
Initial Public Offering and Secondary Public Offering
Shares issued (in shares) | shares	348,601							1,000,000
Net proceeds from issuance of common stock	$ 794,810							$ 1,381,890
Net proceeds from initial public offering										$ 18,810,484
Liquidity
Accumulated deficit								$ (36,759,497)	$ (36,759,497)		$ (25,702,328)
Common Stock
Reverse Stock Split
Reverse stock split ratio				0.667			0.667
Common stock, shares authorized | shares				15,000,000								10,000,000
Initial Public Offering and Secondary Public Offering
Shares issued (in shares) | shares									2,000,000		2,860,000
Issuance of common stock upon conversion (in shares) | shares			2,010,596
Common Stock | IPO
Initial Public Offering and Secondary Public Offering
Shares issued (in shares) | shares			2,860,000
Shares issued (price per share) | $ / shares			$ 7
Net proceeds from initial public offering			$ 15,900,000
Underwriting discounts and commissions			1,200,000								$ 1,209,802
Offering expenses			2,900,000								$ 2,897,825
Non-cash offering expenses			$ 3,300,000
Issuance of common stock upon conversion (in shares) | shares			2,010,596
Common Stock | Secondary public offering
Initial Public Offering and Secondary Public Offering
Shares issued (in shares) | shares		2,000,000
Shares issued (price per share) | $ / shares		$ 2.50
Net proceeds from issuance of common stock		$ 4,100,000
Underwriting discounts and commissions		373,011							$ 373,011
Offering expenses		$ 496,887							$ 496,887
Common Stock | Private investment
Initial Public Offering and Secondary Public Offering
Shares issued (in shares) | shares						222,222			1,678,889
Net proceeds from issuance of common stock						$ 394,534			$ 1,776,492
Offering expenses						$ 104,398			$ 105,398
Liquidity
Term of Stock Purchase Agreement						30 months
Common Stock | Private investment | Maximum
Liquidity
Value of common stock that may be sold to a private investor						$ 15,000,000
Service Agreement | Napo
Number of shares issued in exchange for cash and services | shares					2,666,666

Summary of Significant Accoun34

Summary of Significant Accounting Policies - Restricted Cash and Inventories (Details) - USD ($)	Apr. 21, 2016	Aug. 18, 2015	Aug. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Dec. 22, 2015
Restricted Cash
Maximum borrowing capacity		$ 8,000,000
Initial loan commitment		6,000,000
Base minimum cash balance		$ 4,500,000			$ 3,000,000	$ 3,000,000
Repayment of loan from restricted cash	$ 1,500,000			$ 2,100,000
Interest-only payments, term			4 months
Restricted cash, current				988,580
Inventories
Inventory write-downs				$ 0

Summary of Significant Accoun35

Summary of Significant Accounting Policies - Property and Equipment (Details) - Equipment	9 Months Ended
	Sep. 30, 2016
Minimum
Property and Equipment
Property, Plant and Equipment, Useful Life	3 years
Maximum
Property and Equipment
Property, Plant and Equipment, Useful Life	10 years

Summary of Significant Accoun36

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Neonorm
Revenue Recognition
Revenues	$ 26,357	$ 77,666	$ 88,646	$ 203,195

Fair Value Measurements - Estim

Fair Value Measurements - Estimated Fair Value of Warrant Liability (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2015
Change in the estimated fair value of the warrant liability
Change in Fair Value of Level 3 Liability	$ 501,617
Conversion into Additional Paid-in Capital		$ 1,202,521
Level 3 | Recurring
Change in the estimated fair value of the warrant liability
Beginning value of warrant liability	601,889	$ 601,889
Issuance of Common Warrants	47,479
Change in Fair Value of Level 3 Liability	501,617
Conversion into Additional Paid-in Capital	$ (1,150,985)

License Agreement (Details)

License Agreement (Details) - USD ($)	Mar. 31, 2016	Jan. 31, 2015	Jan. 31, 2014	Jul. 31, 2013	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Jun. 30, 2016
License agreement
Property and equipment, net					$ 900,976		$ 900,976		$ 829,232
License Fee Payable									425,000
Option Agreement | Napo
License agreement
License fees paid				$ 100,000
Term of agreement				2 years
License Agreement | Napo
License agreement
License fees paid	$ 425,000								1,200,000
Payment obligation of one-time non-refundable license fee		$ 1,750,000	$ 2,000,000
Option fee			100,000
Milestone payments due			$ 3,150,000
Royalty expiration term from the first sale of each individual product			10 years
Minimum proceeds from IPO prior to December 31, 2015, required for royalty reduction			$ 10,000,000
Milestone payments due in the event of minimum proceeds from IPO			0
License Fee Payable					0		0		$ 425,000
License Agreement | Napo | Products derived from Croton Lechleri
License agreement
Royalty rate for net sales below revenue base (as a percent)									8.00%
Net product sales upon which royalty rate increases			$ 30,000,000
Royalty rate for net sales above revenue base (as a percent)			10.00%
Royalties payments due in the event of minimum proceeds from IPO			$ 0
License Agreement | Napo | Prescription products derived from Croton Lechleri
License agreement
Royalty rate in the event of an IPO in excess of a specified amount			2.00%
License Agreement | Napo | Nonprescription products derived from Croton Lechleri
License agreement
Royalty rate in the event of an IPO in excess of a specified amount			1.00%
License Agreement | Napo | Pharmaceutical prescription products not derived from Croton Lechleri
License agreement
Royalty on annual net sales of products (as a percent)			2.00%
License Agreement | Napo | Nonprescription products not derived from Croton Lechleri
License agreement
Royalty on annual net sales of products (as a percent)			1.00%
License Agreement | Napo | Accrued Liabilities
License agreement
Unpaid royalties					99		99		$ 2,810
License Agreement | Napo | Property and equipment
License agreement
Property and equipment, net									$ 811,087	$ 811,087
License Agreement | Napo | General and administrative expense
License agreement
Royalties incurred					99	$ 413	943	$ 39,159
License Agreement | Napo | Research and development expense
License agreement
Depreciation expense					$ 6,568		$ 19,704

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Property and Equipment
Property, Plant and Equipment, Gross	$ 938,594	$ 938,594	$ 834,387
Accumulated Depreciation	(37,618)	(37,618)	(5,155)
Property and equipment, net	900,976	900,976	829,232
Depreciation and amortization expense	15,031	32,463
Lab Equipment
Property and Equipment
Property, Plant and Equipment, Gross	811,087	811,087	811,087
Lab Equipment | Research and development expense
Property and Equipment
Depreciation and amortization expense	6,568	19,704
Clinical Equipment
Property and Equipment
Property, Plant and Equipment, Gross	64,870	64,870	$ 23,300
Clinical Equipment | Research and development expense
Property and Equipment
Depreciation and amortization expense	3,243	6,959
Software
Property and Equipment
Property, Plant and Equipment, Gross	62,637	62,637
Software | General and administrative expense
Property and Equipment
Depreciation and amortization expense	$ 5,220	$ 5,800

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Expenses (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Accrued compensation and related:
Accrued vacation	$ 191,492	$ 187,734
Accrued payroll		80,692
Accrued payroll tax	24,304	43,702
Total of accrued compensation and related	215,796	312,128
Accrued interest	122,417	127,149
Accrued contract manufacturing costs		110,141
Accrued clinical	59,575	166,750
Accrued other	12,870	82,266
Total	$ 410,658	$ 798,434

Commitments and Contingencies -

Commitments and Contingencies - Operating Leases (Details) - USD ($)	Jul. 01, 2015	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	May 31, 2014	Jun. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Commitments and Contingencies
Cash deposits under non-cancelable sub-lease agreement	$ 122,163
Security deposit under non-cancelable sub-lease agreement	29,539
Future minimum lease payments under non-cancellable operating leases
2016 - October through December		$ 90,121					$ 90,121
2,017		363,486					363,486
2,018		245,327					245,327
Total minimum lease payments		698,934					698,934
Other assets
Commitments and Contingencies
Prepayment of last three months lease payments	$ 92,623
Napo
Commitments and Contingencies
Rent related to the office space					$ 33,897
General and administrative expense
Commitments and Contingencies
Rent expense under non-cancelable operating lease		$ 90,278	$ 90,278				$ 270,835	$ 90,278
General and administrative expense | Napo
Commitments and Contingencies
Rent expense under non-cancelable operating lease				$ 34,799		$ 69,598

Commitments and Contingencies42

Commitments and Contingencies - Contract Manufacturing Commitment (Details)	Jul. 15, 2016USD ($)	Jun. 26, 2014EUR (€)itemshares	Jun. 30, 2015EUR (€)	May 31, 2015EUR (€)	Apr. 30, 2015EUR (€)	Sep. 30, 2016USD ($)	Dec. 31, 2015EUR (€)sharesitem	Dec. 31, 2015USD ($)item	Sep. 30, 2016EUR (€)shares	Mar. 29, 2016EUR (€)	Mar. 31, 2015$ / shares	Mar. 25, 2015EUR (€)
Commitments and Contingencies
Prepayment of start-up fee										€ 250,000
Number of warrants issued to purchase shares of common stock (in shares) | shares							26,785		26,785
Accrued Liabilities
Commitments and Contingencies
Contract amortization costs included in accrued liabilities | $						$ 0		$ 110,141
Transfer Agreement
Commitments and Contingencies
Bonus fee paid | $	$ 150,000
Transfer Agreement | Manufacturer
Commitments and Contingencies
Prepayment of start-up fee		€ 500,000		€ 500,000			€ 500,000
Prepayment of start-up fee which is to be paid at the earlier to occur of September 15, 2014 or the closing date of an initial public offering		250,000
Prepayment of start-up fee which is to be paid at the time of installation and qualification of the Company's equipment		250,000
Prepayment related to technology transfer		620,000		215,000
Prepayment related to technology transfer which is to be paid within five days of the signature of the Transfer Agreement		310,000
Prepayment related to technology transfer which is to be paid after the delivery of a final study report		310,000
Prepayment for design of a portion of the Manufacturer's facility which is to be paid within five days of the signature of the Transfer Agreement		€ 100,000
Period within which prepayment for design of a portion of the Manufacturer's facility is payable from signature of the Transfer Agreement		5 days
Bonus fee payable		€ 300,000							€ 150,000
Number of installments | item		2
Bonus fee paid				€ 150,000	€ 150,000		150,000
Aggregate amount payable to Manufacturer upon the delivery of agreed-upon levels of satisfactory product pursuant to the agreement		€ 500,000					€ 250,000		€ 250,000
Number of warrants issued to purchase shares of common stock (in shares) | shares		16,666
Exercise price as a percentage of initial public offering price		90.00%
Exercise price (in dollars per share) | $ / shares											$ 6.30
Remaining balance due related to prepayment of technology transfer												€ 310,000
Increase in prepayment for design of portion of manufacturer facility payable within specified days of signature of agreement												170,000
Transfer Agreement | API
Commitments and Contingencies
Amount of product supplied at no cost (in Kg) | item							400	400
Amendment to Transfer Agreement first portion due | Manufacturer
Commitments and Contingencies
Prepayment related to technology transfer												€ 215,000
Payments related to design of a portion of manufacturing facility					€ 150,000
Amendment to Transfer Agreement second portion due | Manufacturer
Commitments and Contingencies
Prepayment related to technology transfer			€ 95,000
Payments related to design of a portion of manufacturing facility			€ 20,000

Debt and Warrants (Details)

Debt and Warrants (Details)	Aug. 01, 2018USD ($)	Apr. 21, 2016USD ($)	Aug. 18, 2015USD ($)	Aug. 15, 2015USD ($)	Jun. 02, 2015shares	Dec. 23, 2014USD ($)item$ / sharesshares	Dec. 03, 2014USD ($)$ / shares	Oct. 30, 2014USD ($)item	Jul. 16, 2014USD ($)$ / sharesshares	Jun. 26, 2014USD ($)$ / sharesshares	Jun. 26, 2014USD ($)$ / sharesshares	Jun. 02, 2014USD ($)item$ / shares	Aug. 31, 2015USD ($)	May 31, 2015USD ($)shares	Apr. 30, 2015$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares	Feb. 28, 2015USD ($)item$ / sharesshares	Aug. 31, 2014USD ($)$ / sharesshares	Feb. 28, 2014USD ($)shares	Feb. 28, 2014USD ($)	Sep. 30, 2016USD ($)shares	Sep. 30, 2015USD ($)shares	Sep. 30, 2013USD ($)item$ / sharesshares	Aug. 31, 2016	Jun. 30, 2016USD ($)shares	Sep. 30, 2016USD ($)shares	Sep. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)shares	Nov. 08, 2016$ / sharesshares	Mar. 01, 2016	Dec. 22, 2015USD ($)
Debt, Convertible Promissory Notes and Common Stock Warrants
Gross aggregate proceeds																											$ 1,250,000
Number of shares issued for notes converted | shares														178,571
Interest Expense																					$ 235,191	$ 163,595				$ 774,185	3,033,238
Number of warrants issued to purchase shares of common stock (in shares) | shares																					26,785					26,785		26,785
Interest Paid																										$ 382,810	$ 23,100
Stand-by line of credit			$ 8,000,000
Initial loan commitment			6,000,000
Proceeds required to be maintained in cash			$ 4,500,000																									$ 3,000,000			$ 3,000,000
Repayment of loan from restricted cash		$ 1,500,000																								2,100,000
Interest-only payments, term																								4 months
Short-term debt
Net debt obligation																					$ 150,000					150,000		150,000
Interest payable on convertible notes payable																					122,417					122,417		127,149
Future principal payments of debt
2016 October through December																					477,286					477,286
2,017																					2,032,048					2,032,048
2,018																					1,479,246					1,479,246
Total																					3,988,580					3,988,580
Long-term debt
Current portion of long-term debt																					1,846,101					1,846,101		1,707,899
Long-term debt, net of discount																					$ 2,271,114					2,271,114		$ 4,095,028
End-of-term payment																										560,000
Total including end-of-term payment																										4,548,580
Less: unaccreted end-of-term payment																										(234,279)
Debt and unpaid accrued end-of-term payment																										$ 4,314,301
Warrant Activity
Warrants outstanding at beginning of period | shares																									748,872	748,872	494,267	494,267
Issuances | shares																											254,605
Cancellations | shares																										(33,333)
Warrants outstanding at end of period | shares																					715,539	748,872				715,539	748,872	748,872
Transfer Agreement | Manufacturer
Debt, Convertible Promissory Notes and Common Stock Warrants
Number of warrants issued to purchase shares of common stock (in shares) | shares										16,666	16,666
Exercise price (in dollars per share) | $ / shares																$ 6.30
Exercise price as a percentage of initial public offering price										90.00%	90.00%
Warrants to purchase common stock | Common Stock | Transfer Agreement | Manufacturer
Debt, Convertible Promissory Notes and Common Stock Warrants
Number of warrants issued to purchase shares of common stock (in shares) | shares										16,666	16,666
Exercise price (in dollars per share) | $ / shares										$ 4.35	$ 4.35					$ 6.30
Exercise price as a percentage of initial public offering price										90.00%	90.00%
Term										5 years	5 years
Fair value of warrants										$ 37,840	$ 37,840
Strike price (in dollars per share) | $ / shares										$ 4.83	$ 4.83
Volatility (as a percent)											49.00%
Dividend yield (as a percent)											0.00%
Risk-free interest rate (as a percent)											1.64%
Standby bridge financing agreement
Debt, Convertible Promissory Notes and Common Stock Warrants
Amortization of debt discount																											$ 521,291
Number of warrants issued to purchase shares of common stock (in shares) | shares																178,569
Exercise price (in dollars per share) | $ / shares							$ 5.23
Term							5 years
Fair value of warrants							$ 505,348
Strike price (in dollars per share) | $ / shares							$ 5.01
Volatility (as a percent)							63.00%
Dividend yield (as a percent)							0.00%
Risk-free interest rate (as a percent)							1.61%
Unamortized note discount								$ 605,348
Number of lenders | item								2
Aggregate principal amount of bridge financing							$ 1,000,000
Interest Paid														$ 1,321,600
Value to be divided by IPO exercise price to determine number of warrants granted																$ 1,000,000
Short-term debt
Unamortized note discount								$ (605,348)
Nominal interest																											100,000
Amortization of debt discount																											521,291
Debt issuance costs																											86,667
Repayment premium																											201,600
Total																											909,558
Long-term debt
Unamortized note discount								$ (605,348)
Nominal interest																											100,000
Amortization of debt discount																											521,291
Debt Issuance Cost																											86,667
Total																											909,558
Standby bridge financing agreement | IPO
Debt, Convertible Promissory Notes and Common Stock Warrants
Exercise price (in dollars per share) | $ / shares																$ 5.60
Exercise price as a percentage of initial public offering price								80.00%
Standby bridge financing agreement | Interest Expense.
Debt, Convertible Promissory Notes and Common Stock Warrants
Amortization of debt discount																												$ 521,291
Unamortized note discount								$ 100,000
Additional financing costs								104,000																				86,667
Short-term debt
Unamortized note discount								(100,000)
Amortization of debt discount																												521,291
Debt issuance costs								104,000
Long-term debt
Unamortized note discount								(100,000)
Amortization of debt discount																												521,291
Debt Issuance Cost								$ 104,000
Convertible notes payable
Debt, Convertible Promissory Notes and Common Stock Warrants
Amortization of debt discount																						$ 26,786					1,925,326
Notes payable																					$ 150,000					$ 150,000		150,000
Short-term debt
Notes payable																					150,000					150,000		150,000
Net debt obligation																					150,000					150,000		150,000
Nominal interest																					4,537	4,537				13,512	66,082
Amortization of debt discount																						26,786					1,925,326
Total																					4,537	31,323				13,512	1,991,408
Interest payable on convertible notes payable																					89,511					89,511		75,999
Long-term debt
Nominal interest																					4,537	4,537				13,512	66,082
Amortization of debt discount																						26,786					1,925,326
Total																					4,537	31,323				13,512	1,991,408
Convertible promissory notes
Debt, Convertible Promissory Notes and Common Stock Warrants
Number of convertible promissory notes issued | item																	2						4
Gross aggregate proceeds																							$ 525,000
Interest rate (as a percent)																							8.00%
Number of business days after the date of consummation of the initial closing of a first equity round of financing, when the debt instrument is due																							10 days
Pre-money valuation threshold amount																							$ 3,000,000
Number of shares issued for notes converted | shares																			207,664
Interest Expense																					4,537	4,537				13,512	11,342
Amortization of debt discount																			$ 4,071	$ 1,443
Number of warrants issued to purchase shares of common stock (in shares) | shares																	22,320
Exercise price (in dollars per share) | $ / shares																	$ 5.60
Notes payable																	$ 250,000
Beneficial conversion feature																						26,786					250,000
Principal and interest paid on debt														103,912
Retirement of convertible promissory notes														$ 100,000
Short-term debt
Notes payable																	250,000
Amortization of debt discount																			4,071	1,443
Interest payable on convertible notes payable																						29,392					29,392
Long-term debt
Amortization of debt discount																			$ 4,071	$ 1,443
Convertible promissory notes | Interest Expense.
Debt, Convertible Promissory Notes and Common Stock Warrants
Amortization of debt discount																						0					1,000,000
Short-term debt
Amortization of debt discount																						0					1,000,000
Long-term debt
Amortization of debt discount																						0					1,000,000
Convertible promissory notes | Dechra Pharmaceuticals PLC
Debt, Convertible Promissory Notes and Common Stock Warrants
Interest rate (as a percent)															12.00%
Number of warrants issued to purchase shares of common stock (in shares) | shares															89,285
Exercise price (in dollars per share) | $ / shares															$ 5.60
Notes payable																$ 1,000,000
Investment Warrants Expiration Date															Dec. 31, 2017
Short-term debt
Notes payable																$ 1,000,000
Convertible promissory notes | Warrants to purchase common stock | Common Stock
Debt, Convertible Promissory Notes and Common Stock Warrants
Exercise price as a percentage of purchase price paid by equity investors when pre-money valuation threshold amount is achieved																							75.00%
Number of warrants issued to purchase shares of common stock (in shares) | shares																							207,664
Exercise price (in dollars per share) | $ / shares																							$ 2.53
Warrant term																							5 years
Convertible promissory notes | Board of directors
Debt, Convertible Promissory Notes and Common Stock Warrants
Number of warrants issued to purchase shares of common stock (in shares) | shares																													120,000
Exercise price (in dollars per share) | $ / shares																													$ 0.01
Convertible promissory notes issued June 2, 2014
Debt, Convertible Promissory Notes and Common Stock Warrants
Interest rate (as a percent)												3.00%
Number of shares issued for notes converted | shares					53,571
Interest Expense																						0					3,237
Exercise price (in dollars per share) | $ / shares												$ 5.60
Notes payable												$ 300,000
Number of Accredited Investors | item												2
Aggregate principal amount issued to board member to which Series A preferred stock was sold												$ 200,000
Beneficial conversion feature												75,000
Short-term debt
Notes payable												$ 300,000
Interest payable on convertible notes payable																						8,507					8,507
Convertible promissory notes issued June 2, 2014 | Interest Expense.
Debt, Convertible Promissory Notes and Common Stock Warrants
Amortization of debt discount																						0					31,250
Short-term debt
Amortization of debt discount																						0					31,250
Long-term debt
Amortization of debt discount																						0					31,250
Convertible promissory note issued July 16, 2014
Debt, Convertible Promissory Notes and Common Stock Warrants
Interest rate (as a percent)									3.00%
Number of shares issued for notes converted | shares									26,785
Interest Expense																						0					1,627
Exercise price (in dollars per share) | $ / shares									$ 5.60
Notes payable									$ 150,000
Beneficial conversion feature									37,500
Short-term debt
Notes payable									$ 150,000
Interest payable on convertible notes payable																						3,711					3,711
Convertible promissory note issued July 16, 2014 | Interest Expense.
Debt, Convertible Promissory Notes and Common Stock Warrants
Amortization of debt discount																						0					17,857
Short-term debt
Amortization of debt discount																						0					17,857
Long-term debt
Amortization of debt discount																						0					17,857
Convertible note purchase agreement
Debt, Convertible Promissory Notes and Common Stock Warrants
Gross aggregate proceeds						$ 650,000
Interest rate (as a percent)						12.00%
Interest Expense																						0					28,210
Amortization of debt discount																						0					141,890
Number of warrants issued to purchase shares of common stock (in shares) | shares						58,035
Exercise price (in dollars per share) | $ / shares						$ 4.15										$ 5.60
Number of Accredited Investors | item						3
Aggregate principal amount issued to board member to which Series A preferred stock was sold						$ 250,000
Beneficial conversion feature						$ 502,057
Term						3 years
Fair value of warrants						$ 147,943
Strike price (in dollars per share) | $ / shares						$ 4.59
Volatility (as a percent)						49.00%
Dividend yield (as a percent)						0.00%
Risk-free interest rate (as a percent)						1.10%
Short-term debt
Amortization of debt discount																						0					141,890
Interest payable on convertible notes payable																						30,132					30,132
Long-term debt
Amortization of debt discount																						0					141,890
Convertible note purchase agreement | IPO
Debt, Convertible Promissory Notes and Common Stock Warrants
Number of shares issued for notes converted | shares						116,070
Exercise price as a percentage of initial public offering price						80.00%			5.60%
Strike price (in dollars per share) | $ / shares															$ 5.60
Convertible note purchase agreement | Interest Expense.
Debt, Convertible Promissory Notes and Common Stock Warrants
Beneficial conversion feature																						0					484,329
Line of credit and loan agreement
Debt, Convertible Promissory Notes and Common Stock Warrants
Number of warrants issued to purchase shares of common stock (in shares) | shares																		33,333
Exercise price (in dollars per share) | $ / shares																$ 5.60		$ 6.40
Exercise price as a percentage of initial public offering price																		80.00%
Term																		2 years
Fair value of warrants																		$ 114,300
Strike price (in dollars per share) | $ / shares																		$ 8
Volatility (as a percent)																		52.00%
Dividend yield (as a percent)																		0.00%
Risk-free interest rate (as a percent)																		0.52%
Drawdown amount																$ 0
Line of credit and loan agreement | Maximum
Debt, Convertible Promissory Notes and Common Stock Warrants
Stand-by line of credit																		$ 1,000,000
Loan and security agreement
Debt, Convertible Promissory Notes and Common Stock Warrants
Interest rate (as a percent)																														9.90%
Amortization of debt discount																					15,337	8,993				50,388	8,993
Interest payable on long-term debt																					32,906					32,906		51,150
Unamortized note discount													$ 134,433								56,247					56,247		106,635
Stand-by line of credit													8,000,000
Initial loan commitment													6,000,000
Proceeds required to be maintained in cash													$ 4,500,000
Additional borrowing capacity contingent on achievement of milestones				$ 2,000,000
Term of agreement													3 years
Balloon amount payable on August 1, 2018	$ 560,000
Effective interest rate													15.00%
Prior notification period required for pre-payment of principal and accrued interest (in days)													5 days
Short-term debt
Unamortized note discount													$ (134,433)								(56,247)					(56,247)		(106,635)
Nominal interest																					103,566	72,600				364,566	72,600
Amortization of debt discount																					15,337	8,993				50,388	8,993
Debt issuance costs																					47,855	13,214				135,795	13,214
Total																					230,655	132,271				760,673	132,271
Long-term debt
Debt and unpaid accrued end-of-term payment																					4,314,301					4,314,301		6,115,797
Unamortized note discount													$ (134,433)								(56,247)					(56,247)		(106,635)
Unamortized debt issuance costs																					(140,839)					(140,839)		(206,235)
Total																					4,117,215					4,117,215		5,802,927
Current portion of long-term debt																					1,846,101					1,846,101		1,707,899
Long-term debt, net of discount																					2,271,114					2,271,114		4,095,028
End-of-term payment																									$ 560,000			$ 560,000
Nominal interest																					103,566	72,600				364,566	72,600
Amortization of debt discount																					15,337	8,993				50,388	8,993
Accretion of end-of-term payment																					63,897	37,464				209,924	37,464
Debt Issuance Cost																					47,855	13,214				135,795	13,214
Total																					$ 230,655	$ 132,271				$ 760,673	$ 132,271
Loan and security agreement | Prepayment during the first twelve months member
Debt, Convertible Promissory Notes and Common Stock Warrants
Prepayment charge during first twelve months of loan when a minimum cash balance is required as a percent of minimum cash balance													2.00%
Prepayment charge during first twelve months of loan when a minimum cash balance is required as a percent of difference between amount being prepaid and minimum cash balance													3.00%
Prepayment charge during first twelve months of loan when no minimum cash balance is required as a percent of amount being prepaid													3.00%
Loan and security agreement | Prepayment after the first twelve months member
Debt, Convertible Promissory Notes and Common Stock Warrants
Prepayment charge as a percent of amount being prepaid													1.00%
Convertible promissory note issued to Serious Change II LP
Debt, Convertible Promissory Notes and Common Stock Warrants
Gross aggregate proceeds																	$ 150,000
Interest rate (as a percent)																	12.00%

Redeemable Convertible Prefer44

Redeemable Convertible Preferred Stock (Details) - USD ($)	May 18, 2015	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	May 31, 2014	Apr. 30, 2014	Feb. 28, 2014
Redeemable Convertible Preferred Stock
Preferred shares issued						3,015,902	3,015,902	3,015,902
Liquidation preference						$ 6,777,338
Redemption value						$ 9,000,000
Accretion of deemed dividend		$ 0	$ 263,060
Issuance costs incurred			417,775
Common Stock
Redeemable Convertible Preferred Stock
Issuance of common stock upon conversion (in shares)	2,010,596
Common Stock | IPO
Redeemable Convertible Preferred Stock
Issuance of common stock upon conversion (in shares)	2,010,596
Series A redeemable convertible preferred stock
Redeemable Convertible Preferred Stock
Preferred shares issued					3,015,902
Accretion of deemed dividend				$ 263,060
Issuance costs incurred					$ 119,097
Accretion of issuance costs		$ 0	$ 83,334	$ 83,314
Preferred shares outstanding	3,015,902

Stockholders' Equity (Details)

Stockholders' Equity (Details)	Nov. 14, 2016USD ($)	Oct. 04, 2016USD ($)shares	Sep. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2016USD ($)item$ / sharesshares	Dec. 31, 2015$ / sharesshares	Oct. 27, 2014shares	Oct. 26, 2014shares
Stockholders' Equity
Common stock, shares authorized			50,000,000		50,000,000	50,000,000	50,000,000
Common stock par value (in dollars per share) | $ / shares			$ 0.0001		$ 0.0001	$ 0.0001	$ 0.0001
Number of voting rights entitled for each share of common stock held | item						1
Shares issued (in shares)		348,601			1,000,000
Net proceeds from issuance of common stock | $		$ 794,810			$ 1,381,890
Aggregate cash proceeds received from sale of common stock under common stock purchase agreement | $	$ 2,676,700		$ 1,881,890
Preferred stock, shares authorized			10,000,000		10,000,000	10,000,000	10,000,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 0.0001		$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock, shares issued			0		0	0	0
Preferred stock, shares outstanding			0		0	0	0
Shares of common stock reserved for issuance
Options issued and outstanding			2,444,375		2,444,375	2,444,375	919,506
Options available for grant			166,833		166,833	166,833	106,833
RSUs issued and outstanding			20,789		20,789	20,789	55,536
Warrants issued and outstanding			715,539		715,539	715,539	748,872
Convertible notes			26,785		26,785	26,785	26,785
Total			3,374,321		3,374,321	3,374,321	1,857,532
Common Stock
Stockholders' Equity
Common stock, shares authorized								15,000,000	10,000,000
Shares issued (in shares)						2,000,000	2,860,000
Common Stock | Private investment
Stockholders' Equity
Term of Stock Purchase Agreement				30 months
Shares issued (in shares)				222,222		1,678,889
Private Offering Price (in dollars per share) | $ / shares				$ 2.25
Net proceeds from issuance of common stock | $				$ 394,534		$ 1,776,492
Gross proceeds from the issuance of common stock | $				500,000
Offering expenses | $				$ 104,398		$ 105,398
Shares issued to a private investor in payment of underwriting discounts and commissions				456,667
Common Stock | Maximum | Private investment
Stockholders' Equity
Value of common stock that may be sold to a private investor | $				$ 15,000,000

Stock Incentive Plans - Summary

Stock Incentive Plans - Summary of Stock Incentive Plans (Details) - USD ($)	May 18, 2015	May 12, 2015	Jul. 31, 2016	Jul. 31, 2015	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Jan. 01, 2016	Apr. 30, 2014	Dec. 31, 2013
Shares Available for Grant
Beginning balance (in shares)							106,833	106,833
Ending balance (in shares)					166,833			166,833		106,833
Stock Options Outstanding
Beginning balance (in shares)							919,506	919,506
Ending balance (in shares)					2,444,375			2,444,375		919,506
RSUs Outstanding
Beginning balance (in shares)							55,536	55,536
Ending balance (in shares)					20,789			20,789		55,536
Weighted Average Stock Option Exercise Price
Beginning balance (in dollars per share)							$ 3.87	$ 3.87
Options Cancelled (in dollars per share)					$ 2.92
Ending balance (in dollars per share)					$ 2.62			$ 2.62		$ 3.87
Weighted Average Remaining Contractual Life (Years)
Weighted Average Remaining Contractual Life (Years)								8 years 10 months 13 days		8 years 9 months 22 days
Options vested, exercisable and expected to vest
Options vested and exercisable (in shares)					812,828			812,828
Options vested and exercisable (in dollars per share)					$ 3.51			$ 3.51
Options vested and exercisable (in years)								8 years 4 months 13 days
Options vested and expected to vest (in shares)					2,014,184			2,014,184
Options vested and expected to vest (in dollars per share)					$ 2.66			$ 2.66
Options vested and expected to vest (in years)								8 years 9 months 29 days
Weighted average grant date fair value of stock options granted (in dollars per share)								$ 0.89	$ 3.52
Intrinsic value of options exercised									$ 0
Fair market value of options exercised (in dollars per share)									$ 0.43
Stock options
Options vested, exercisable and expected to vest
Number of options vested (in shares)								480,377	452,965
Fair value of options vested on grant date								$ 542,999	$ 544,452
2013 Plan
Stock Options Outstanding
Options Cancelled (in shares)						(102,889)	(24,740)
RSUs Outstanding
RSUs Granted (in shares)							27,768
RSUs Cancelled (in shares)							(6,979)
Weighted Average Stock Option Exercise Price
Options Cancelled (in dollars per share)						$ 3.52	$ 7
2013 Plan | Stock options
Stock Incentive Plans
Number of shares reserved for issuance												847,533	300,000
Shares Available for Grant
Shares Authorized (in shares)												847,533	300,000
Stock Options Outstanding
Options Granted (in shares)	0
2014 Plan
Stock Incentive Plans
Additional shares authorized (in shares)						1,550,000	162,498
Additional shares under plan contingent upon approval by stockholders at next stockholders meeting						1,550,000	162,498
Stock Options Outstanding
Options Granted (in shares)					1,032,859	692,388
Options Cancelled (in shares)					(52,749)	(20,000)
Weighted Average Stock Option Exercise Price
Options Granted (in dollars per share)					$ 1.23	$ 3.30
Options Cancelled (in dollars per share)						$ 1.58
2014 Plan | Stock options
Stock Incentive Plans
Number of shares reserved for issuance		333,333
Additional shares authorized (in shares)			1,550,000	550,000
Increase in shares reserve based on outstanding number of shares											162,498
Increase in share reserve based on outstanding number of shares (as a percent)		2.00%
Additional shares under plan contingent upon approval by stockholders at next stockholders meeting			1,550,000	550,000
Shares Available for Grant
Shares Authorized (in shares)		333,333

Stock Incentive Plans - Restric

Stock Incentive Plans - Restricted Units (Details) - shares	Jan. 01, 2017	Jan. 01, 2016
Stock Incentive Plans
Issuance of common stock in exchange for vested restricted stock units (in shares)		17,546
Restricted stock units
Stock Incentive Plans
RSUs, vested and released, gross (in shares)		27,768
RSU shares used to pay withholding taxes (in shares)		10,172
2013 Plan | Restricted stock units
Stock Incentive Plans
Vesting (as a percent)		50.00%
2013 Plan | Restricted stock units | Forecast
Stock Incentive Plans
Vesting (as a percent)	50.00%

Stock Incentive Plans - Stock-B

Stock Incentive Plans - Stock-Based Compensation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock Incentive Plans
Total stock-based compensation expense	$ 249,378	$ 200,202	$ 478,442	$ 828,049
Research and development expense
Stock Incentive Plans
Total stock-based compensation expense	53,935	83,249	116,552	429,468
Selling and marketing expense
Stock Incentive Plans
Total stock-based compensation expense	50,052	9,633	58,733	44,462
General and administrative expense
Stock Incentive Plans
Total stock-based compensation expense	145,391	$ 107,321	303,157	$ 354,119
Stock options and RSUs
Stock Incentive Plans
Unrecognized stock-based compensation expense	$ 1,328,841		$ 1,328,841
Estimated grant-date fair value of stock options calculated using the Black-Scholes option-pricing model
Weighted-average expected term (in years)			2 years 2 months 19 days
Non-employee stock options
Estimated grant-date fair value of stock options calculated using the Black-Scholes option-pricing model
Weighted-average volatility (as a percent)		74.21%		74.21%
Weighted-average expected term (in years)		10 years		10 years
Risk-free interest rate (as a percent)		2.05%		2.05%
Minimum | Employee stock options
Estimated grant-date fair value of stock options calculated using the Black-Scholes option-pricing model
Weighted-average volatility (as a percent)	69.39%	55.43%	66.25%	55.43%
Weighted-average expected term (in years)	5 years	5 years 1 month 24 days	5 years	5 years 1 month 24 days
Risk-free interest rate (as a percent)	1.10%	1.60%	1.10%	1.60%
Minimum | Non-employee stock options
Estimated grant-date fair value of stock options calculated using the Black-Scholes option-pricing model
Weighted-average volatility (as a percent)	78.30%		78.30%
Weighted-average expected term (in years)	9 years 2 months 1 day		9 years 2 months 9 days
Risk-free interest rate (as a percent)	1.32%		1.32%
Maximum | Employee stock options
Estimated grant-date fair value of stock options calculated using the Black-Scholes option-pricing model
Weighted-average volatility (as a percent)	71.38%	59.05%	71.38%	59.05%
Weighted-average expected term (in years)	5 years 9 months 26 days	5 years 9 months 7 days	5 years 9 months 26 days	5 years 9 months 7 days
Risk-free interest rate (as a percent)	1.29%	1.76%	1.49%	1.76%
Maximum | Non-employee stock options
Estimated grant-date fair value of stock options calculated using the Black-Scholes option-pricing model
Weighted-average volatility (as a percent)	80.02%		80.40%
Weighted-average expected term (in years)	10 years		10 years
Risk-free interest rate (as a percent)	1.67%		1.74%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Jun. 30, 2016	May 31, 2016	Apr. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Outstanding liabilities
Research and development expense				$ 1,967,128	$ 1,239,831	$ 5,672,516	$ 4,414,162
Napo
Outstanding liabilities
Due to/(from) Napo				273,161		273,161		$ 6,008
Royalty payable to Napo				(99)		(99)		(2,809)
License fee payable to Napo								(425,000)
Total				273,062		$ 273,062		$ (421,801)
Napo | 125mg Fulyzaq
Outstanding liabilities
Related party purchases			$ 37,355
Research and development expense			19,723
Napo | 125mg Fulyzaq | Prepaid expenses
Outstanding liabilities
Prepaid expenses			$ 17,631
Napo | Crofelemer API
Outstanding liabilities
Related party purchases		$ 174,299
Napo | Crude plant latex
Outstanding liabilities
Related party purchases	$ 66,358
Napo | Share employee services
Outstanding liabilities
Amount of share employee services				$ 272,210

Net Loss Per Share Attributab50

Net Loss Per Share Attributable to Common Stockholders- Calculation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Calculation of basic and diluted net loss per common share
Net loss attributable to common stockholders	$ (3,415,490)	$ (2,960,671)	$ (11,057,169)	$ (12,507,103)
Shares used to compute net loss per common share, basic and diluted (in shares)	11,264,886	8,123,293	10,298,987	5,488,655
Net loss per share attributable to common shareholders, basic and diluted	$ (0.30)	$ (0.36)	$ (1.07)	$ (2.28)

Net Loss Per Share Attributab51

Net Loss Per Share Attributable to Common Stockholders- Excluded From Calculation (Details) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Outstanding common stock equivalents have been excluded from diluted net loss per common share
Outstanding common stock equivalents have been excluded from diluted net loss per common share (in shares)	3,180,703	1,654,174
Options
Outstanding common stock equivalents have been excluded from diluted net loss per common share
Outstanding common stock equivalents have been excluded from diluted net loss per common share (in shares)	2,444,375	849,766
Warrants to purchase common stock
Outstanding common stock equivalents have been excluded from diluted net loss per common share
Outstanding common stock equivalents have been excluded from diluted net loss per common share (in shares)	715,539	748,872
Restricted stock units
Outstanding common stock equivalents have been excluded from diluted net loss per common share
Outstanding common stock equivalents have been excluded from diluted net loss per common share (in shares)	20,789	55,536

401(k) Plan (Details)

401(k) Plan (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
401(k) Plan
Employer contributions to the plan	$ 0

Notice of Delisting or Failur53

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard (Details)	Aug. 22, 2016USD ($)
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard
Minimum level of stockholders equity required for continued listing on Nasdaq capital market	$ 2,500,000
Minimum level of market value of listed securities required for continued listing on Nasdaq capital market	35,000,000
Current market value of listed securities	$ 14,800,000
Number of days to submit a plan to regain compliance	45 days
Maximum number of days may be granted an extension	180 days

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Oct. 19, 2016	Oct. 04, 2016	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015	Nov. 08, 2016
Subsequent Event
Shares issued (in shares)		348,601		1,000,000
Net proceeds from issuance of common stock		$ 794,810		$ 1,381,890
Number of warrants issued to purchase shares of common stock (in shares)				26,785	26,785	26,785
Common Stock
Subsequent Event
Shares issued (in shares)					2,000,000	2,860,000
Private investment | Common Stock
Subsequent Event
Shares issued (in shares)			222,222		1,678,889
Net proceeds from issuance of common stock			$ 394,534		$ 1,776,492
Subsequent event
Subsequent Event
Shares issued (in shares)		348,601
Net proceeds from issuance of common stock		$ 794,810
Subsequent event | Private investment | Common Stock
Subsequent Event
Shares issued (in shares)	170,455
Net proceeds from issuance of common stock	$ 150,000
Subsequent event | Convertible promissory note issued to Serious Change II LP
Subsequent Event
Strike price (in dollars per share)							$ 0.01
Notes payable							$ 150,000
Number of warrants issued to purchase shares of common stock (in shares)							120,000