Zosano Pharma (ZSANQ) 10-Q 10 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 04, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	ZSAN
Entity Registrant Name	Zosano Pharma Corp
Entity Central Index Key	1,587,221
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		39,230,097

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 21,159	$ 15,003
Short-term investments in marketable securities	7,066	0
Prepaid expenses and other current assets	1,166	273
Total current assets	29,391	15,276
Restricted cash	35	35
Property and equipment, net	4,798	5,455
Other long-term assets	420	140
Total assets	34,644	20,906
Current liabilities:
Accounts payable	1,208	1,445
Accrued compensation	1,146	1,377
Secured promissory note (including accrued interest), net of issuance costs, current portion	6,118	5,992
Other accrued liabilities	572	1,005
Total current liabilities	9,044	9,819
Deferred rent	127	52
Secured promissory note (including accrued interest), net of issuance costs	3,516	6,550
Total liabilities	12,687	16,421
Commitments and contingencies (note 7)
Stockholders' equity:
Common stock, $0.0001 par value; 100,000,000 shares authorized as of June 30, 2017, and December 31, 2016; 39,220,097 and 16,815,997 shares issued and outstanding as of June 30, 2017, and December 31, 2016, respectively	4	2
Additional paid-in capital	232,467	201,252
Accumulated deficit	(210,512)	(196,769)
Other comprehensive loss	(2)	0
Stockholders' equity	21,957	4,485
Total liabilities and stockholders' equity	$ 34,644	$ 20,906

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	39,220,097	16,815,997
Common stock, shares outstanding	39,220,097	16,815,997

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 0	$ 0	$ 0	$ 0
Operating expenses:
Research and development	4,363	4,298	8,989	9,920
General and administrative	2,188	1,951	4,310	4,127
Total operating expenses	6,551	6,249	13,299	14,047
Loss from operations	(6,551)	(6,249)	(13,299)	(14,047)
Other income (expense):
Interest expense, net	(207)	(321)	(454)	(637)
Other income, net	12	50	10	49
Loss before provision for income taxes	(6,746)	(6,520)	(13,743)	(14,635)
Provision for income taxes	0	0	0	0
Net loss	(6,746)	(6,520)	(13,743)	(14,635)
Other comprehensive gain (loss):
Unrealized gain (loss) on marketable securities, net of tax effect	(2)	(37)	(2)	2
Comprehensive loss	$ (6,748)	$ (6,557)	$ (13,745)	$ (14,633)
Net loss per common share - basic and diluted	$ (0.17)	$ (0.54)	$ (0.46)	$ (1.22)
Weighted-average shares used in computing net loss per common share - basic and diluted	39,200	12,012	29,820	11,989

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (13,743)	$ (14,635)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,261	1,245
Stock-based compensation	416	665
Gain on sale of equipment	(13)	(51)
Amortization of debt discount/accretion of premium	(11)	0
Accretion of interest	48	185
Deferred rent	75	6
Change in operating assets and liabilities:
Prepaid expenses and other assets	(1,156)	(297)
Accounts payable	(236)	(322)
Accrued compensation and other accrued liabilities	(766)	(526)
Net cash used in operating activities	(14,125)	(13,730)
Cash flow from investing activities:
Purchase of property and equipment	(625)	(307)
Proceeds from sales of property and equipment	22	63
Purchase of marketable securities	(7,071)	0
Proceeds from maturities of investments in marketable securities	0	17,392
Increase in other investment	0	(13)
Net cash provided by (used in) investing activities	(7,674)	17,135
Cash flow from financing activities:
Proceeds from public offering of securities, net of underwriting commissions, discounts and other offering costs	26,623	0
Proceeds from exercise of warrants and issuance of common stock	4,041	0
Payment of loan principal	(2,846)	0
Proceeds from exercise of stock options and issuance of common stock	137	6
Net cash provided by financing activities	27,955	6
Net increase in cash and cash equivalents	6,156	3,411
Cash and cash equivalents at beginning of period	15,003	6,646
Cash and cash equivalents at end of period	21,159	10,057
Supplemental cash flow information:
Interest paid	540	606
Non-cash investing activities:
Acquisition of property and equipment under accounts payable	$ 7	$ 0

Organization

Organization	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization The Company Zosano Pharma Corporation (“the Company”) is a clinical stage biopharmaceutical company focused on providing rapid systemic administration of therapeutics to patients using our proprietary Adhesive Dermally-Applied Microarray (“ADAM”) technology. The Company recently announced positive results from our ZOTRIP study that evaluated M207, which is our proprietary formulation of zolmitriptan delivered via our ADAM technology, as an acute treatment for migraine. Zosano is focused on developing products where rapid administration of established molecules with known safety and efficacy profiles provides an increased benefit to patients, for markets where patients remain underserved by existing therapies. The Company anticipates that many of its current and future development programs may enable the Company to utilize a regulatory pathway that would streamline clinical development and accelerate the path towards commercialization. As of June 30, 2017, Zosano Pharma Corporation has one wholly owned subsidiary, ZP Opco, Inc. (“Opco”) through which the Company conducts its primary research and development activities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Regulation S-X. They do not include all the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any other subsequent period. These financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2016, included in the Company’s annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”). Use of Estimates The preparation of the accompanying condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the periods reported. Actual results could differ from those estimates. Liquidity and Substantial Doubt in Going Concern The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern. As of June 30, 2017, the Company has an accumulated deficit of $210.5 million, as well as recurring operating losses and negative cash flows from operating activities. Presently, the Company does not have sufficient cash resources to meet its plans in the next twelve months from issuance of this report. The Company has financed its operations primarily through the sale of equity securities, debt financing and payments received under its former licensing and collaboration agreements with pharmaceutical companies. To date, none of the Company’s product candidates have been approved by the Food and Drug Administration for sale. The Company will continue to require additional financing to develop its product candidates and fund operating losses. Management intends to seek capital to support the Company’s initiatives through equity or debt financing, collaboration or other arrangements with corporate partners, and/or other sources of financing. However, if such financing is not available at adequate levels or on acceptable terms, the Company could be required to significantly reduce its operating expenses and delay, reduce the scope of or eliminate some of its development programs, out-license intellectual property rights, or a combination of the above, which may have a material adverse effect on the Company’s business, results of operations, financial condition and/or its ability to meet its scheduled obligations on a timely basis, if at all. Although management has been successful in raising capital in the past, most recently in March 2017, there can be no assurance that the Company will be successful, or that any needed financing will be available in the future at terms acceptable to the Company. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern within one year after the issuance of this report. There are no assurances that such additional funding will be achieved and that the Company will succeed in its future operations. The Company’s inability to obtain required funding in the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the Company may have to cease operations. Consolidation The condensed consolidated financial statements include the accounts of Zosano Pharma Corporation and Opco. Intercompany balances and transactions have been eliminated in consolidation. Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies during the six months ended June 30, 2017, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company’ s Annual Report on Form 10-K for the year ended December 31, 2016. Research and Development Expenses Research and development costs are charged to expense as incurred and consist of costs related to (i) furthering the Company’s research and development efforts, and (ii) designing and manufacturing products that incorporate the Company’s ADAM technology for the Company’s clinical and nonclinical studies. Net Loss Per Common Share Basic net income (loss) per common share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive common stock equivalents. Diluted net income (loss) per common share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, warrants and options to purchase common stock are considered potentially dilutive common stock equivalents. For the three and six months ended June 30, 2017 and 2016, diluted net loss per common share was the same as basic net loss per common share since the effect of inclusion of potentially dilutive common stock equivalents would have an antidilutive effect due to the loss reported. The following outstanding common stock equivalents were excluded from the computations of diluted net loss per common share for the periods presented as the effect of including such securities would be antidilutive: June 30, 2017 2016 (unaudited; in shares) Warrants to purchase common stock 6,946,340 72,379 Options to purchase common stock 2,184,068 1,173,627 9,130,408 1,246,006 Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, Compensation – Stock Compensation; Scope of Modification Accounting In February 2017, the FASB issued ASU 2017-05, Other Income Gain and Losses from the Derecognition of Nonfinancial Assets In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows In February 2016, the FASB issued ASU 2016-02, Leases In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	6 Months Ended
	Jun. 30, 2017
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Investments	3. Cash, Cash Equivalents and Investments The Company classifies all highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents. The following is a summary of the Company’s cash, cash equivalents, and marketable securities investments for each of the periods presented (in thousands): June 30, 2017 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (unaudited) Cash in bank $ 13,220 $ - $ - $ 13,220 Money market funds 2,206 - - 2,206 Certificates of deposit (restricted) 35 - - 35 Certificates of deposit 4,635 - - 4,635 Commercial paper 2,447 - - 2,447 Corporate notes and bonds 2,020 - (1) 2,019 U.S. treasuries 904 - - 904 U.S. government agency bonds 2,795 - (1) 2,794 $ 28,262 $ - $ (2) $ 28,260 Classified as: Cash and cash equivalents $ 21,159 Restricted cash 35 Short-term investments in marketable securities 7,066 $ 28,260 December 31, 2016 Cost Gross Unrealized Gross Unrealized Losses Fair Value Cash in bank $ 3,342 $ - $ - $ 3,342 Money market funds 11,661 - - 11,661 Certificates of deposit (restricted) 35 - - 35 $ 15,038 $ - $ - $ 15,038 Classified as: Cash and cash equivalents $ 15,003 Restricted cash 35 $ 15,038

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	4. Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1: Inputs which include quoted prices in active markets for identical assets and 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 for substantially the full term of the assets or liabilities. • 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. The carrying values of certain assets and liabilities of the Company, such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. The carrying value of the Company’s short-term notes payable approximates their fair value as the terms of the borrowing are consistent with current market rates and the duration to maturity is short. The carrying value of the Company’s long-term notes payable approximates fair value because the interest rates approximate market rates that the Company could obtain for debt with similar terms and maturities. The following tables set forth the fair value of the Company’s financial instruments for each of the periods presented (in thousands): June 30, 2017 Level I Level II Level III Total (unaudited) Financial Assets: Money market funds $ 2,206 $ - $ - $ 2,206 Certificates of deposit - 4,635 - 4,635 Commercial paper - 2,447 - 2,447 Corporate notes and bonds - 2,019 - 2,019 U.S. treasuries - 904 - 904 U.S. government agency bonds - 2,794 - 2,794 Total financial assets $ 2,206 $ 12,799 $ - $ 15,005 December 31, 2016 Level I Level II Level III Total Financial Assets: Money market funds $ 11,661 $ - $ - $ 11,661 Total financial assets $ 11,661 $ - $ - $ 11,661

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	5. Property and Equipment The following summarizes the Company’s property and equipment for each of the periods presented (in thousands) June 30, 2017 December 31, 2016 (unaudited) Laboratory and office equipment $ 1,301 $ 1,127 Manufacturing equipment 10,798 10,857 Computer equipment and software 329 314 Leasehold improvements 15,694 15,694 Construction in progress 2,341 1,961 30,463 29,953 Less: accumulated depreciation (25,665) (24,498) $ 4,798 $ 5,455 Depreciation and amortization expense was approximately $0.6 million for both the three months ended June 30, 2017 and 2016. Depreciation and amortization expense was $1.3 million and $1.2 million for the six months ended June 30, 2017 and 2016, respectively.

Debt Financing

Debt Financing	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Debt Financing	6. Debt Financing In June 2014, the Company entered into a loan and security agreement with Hercules Capital, Inc. (“Hercules”) which provided the Company $4.0 million in debt financing. In June 2015, the Company entered into a first amendment to the loan and security agreement with Hercules to increase the aggregate principal amount of the loan to $15.0 million (“Hercules Term Loan”). Upon the execution of the first amendment to the loan and security agreement, the Company used approximately $11.4 million of the Hercules Term Loan to prepay all amounts owing under the secured promissory note held by BMV Direct SOTRS LP, an affiliate of BioMed Realty Holdings, Inc. (“BMR Holdings”). BMV Direct SOTRS LP owns more than 5% of the Company’s common stock and therefore is a beneficial owner of the Company. The Hercules Term Loan provides that the $15.0 million principal balance will be subject to a 12-month interest-only period beginning July 1, 2015, followed by equal monthly installment payments of principal and interest, with all outstanding amounts due and payable on December 1, 2018. The outstanding principal balance bears interest at a variable rate of the greater of (i) 7.95%, or (ii) 7.95% plus the prime rate as quoted in the Wall Street Journal minus 5.25%. The interest rate on the Hercules Term Loan was 7.95% as of June 30, 2017, and December 31, 2016. On June 1, 2017, the Company paid a $100,000 legacy end of term charge and will pay an additional $351,135 end of term charge on the earlier of loan maturity or at the date the Company prepays the Hercules Term Loan. The Company may prepay all, but not less than all, of the Hercules Term Loan with no prepayment charge if prepaid after June 23, 2017. The Hercules Term Loan is secured by a first priority security interest and lien in and to all of the Company’s tangible and intangible properties and assets, including intellectual properties. See Note 8 for a discussion of warrants to purchase common stock issued to Hercules in connection with the Hercules Term Loan. The following is a summary of the Company’s long-term debt, net of unamortized debt discount and issuance costs for the periods presented (in thousands) June 30, 2017 December 31, 2016 (unaudited) Principal amount $ 9,277 $ 12,122 Less: unamortized debt issuance costs (23) (41) (42) (75) Plus: unamortized fair value debt premium 80 143 281 310 61 83 Secured promissory note (including accrued interest), net of unamortized debt issuance cost and premium $ 9,634 $ 12,542 Secured promissory note, current portion 6,118 5,992 Secured promissory note, long-term portion 3,516 6,550 Secured promissory note (including accrued interest), net of unamortized debt issuance cost and premium $ 9,634 $ 12,542 For the three and six months ended June 30, 2017, the Company recorded total interest expense of $0.2 million and $0.5 million, respectively. For the three and six months ended June 30, 2016, the Company recorded interest expense of $0.3 million and $0.7 million, respectively, related to the Hercules Term Loan.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies The Company has an operating lease with BMR-34790 Ardentech Court LP, an affiliate of BMR Holdings and related party, for its office, research and development, and manufacturing facilities in Fremont, California. On June 6, 2017, the Company entered into the seventh amendment to the existing lease (“Seventh Amendment”), effective as of May 30, 2017. Under the Seventh Amendment, the Company extended the term of the Lease for the Company’s headquarters in Fremont, California through August 31, 2024, with an option to further extend the lease for an additional 65 months, subject to certain terms and conditions. The Company has agreed to pay a monthly base rent of $136,191 for the period commencing September 1, 2017, and ending on August 31, 2018, with an increase on September 1, 2018, and annual increases on September 1 of each subsequent year until the lease year beginning September 1, 2023. The Seventh Amendment also provides for rent abatements, subject to certain conditions, totaling $275,552 and certain tenant improvements to be completed at the Landlord’s expense (not to exceed $975,000 or, under certain conditions, $1,100,000). The Company may incur additional expenses under the lease in connection with roof repairs that will be treated as additional rent and paid over the term of the lease. For the three and six months ended June 30, 2017, the Company recorded rental expense under the related party operating lease of $0.2 million and $0.4 million, respectively. For the three and six months ended June 30, 2016, the Company recorded rental expense of $0.2 million and $0.4 million, respectively. As of June 30, 2017, future minimum payments under non-cancelable operating leases for each year ending December 31 are as follows (in thousands): Total (unaudited) 2017 $ 523 2018 1,502 2019 1,699 2020 1,752 2021 and thereafter 6,882 $ 12,358 (1) (1) Excludes any payments for capital improvements that may be required under the lease.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Stockholders' Equity	8. Stockholders’ Equity On March 22, 2017, the Company closed on a registered public offering of 19,550,000 shares of common stock at a price of $1.50 per share, which included the exercise in full by the underwriters of their over-allotment option to purchase up to 2,550,000 additional shares of common stock. The total proceeds from the offering were $26.6 million, net of underwriter’s discounts and commissions and offering expenses. In August 2016, the Company completed a private investment in public equity transaction (“PIPE Financing”). The Company entered into a Securities Purchase Agreement with various purchasers, including members of the Company’s Board of Directors and executive management, pursuant to which the Company sold and issued shares of common stock and warrants to purchase shares of common stock for aggregate gross proceeds of $7.5 million. Costs related to the offering were $0.9 million. Pursuant to the Purchase Agreement, the Company sold 4,800,000 common shares at $1.32 per common share, the closing price per share on August 15, 2016, for gross proceeds of $6.3 million. Additionally, 9,600,000 warrants were sold, at a price of $0.125 per warrant, for gross proceeds of $1.2 million. Each warrant grants the holder the right to purchase one share of the Company’s common stock. The Company granted 4,800,000 Series A Warrants and 4,800,000 Series B Warrants. Series A Warrants and Series B Warrants have a per share exercise price of $1.45 and $1.55, respectively, and will expire one year and one week and five years, respectively, from the date of issuance, August 19, 2016. Certain of our directors and executive officers purchased an aggregate of 275,454 shares of common stock and an aggregate of 550,908 warrants in this offering at the same price as the other investors. In connection with the PIPE Financing, the Company filed a registration statement on Form S-3, with the SEC registering for resale the shares of common stock issued in the PIPE Financing and the shares of common stock issuable upon exercise of the warrants. The registration statement was declared effective by the SEC on September 23, 2016. The Company issued warrants to purchase common stock to Hercules in connection with the Hercules Term Loan entered into in June 2014 and amended in June 2015. The warrants are exercisable, in whole or in part, any time before their expiration date as set forth below. See Note 6 for a discussion of the Hercules Term Loan. Below is a table summarizing the warrants issued and outstanding for each of the periods presented (unaudited): Warrants Warrants Warrants Exercise Expiration PIPE Financing - Series A 4,800,000 1,844,214 2,955,786 $ 1.45 8/26/2017 PIPE Financing - Series B 4,800,000 881,825 3,918,175 $ 1.55 8/19/2021 Hercules - June 2014 31,674 - 31,674 $ 8.84 1/27/2020 Hercules - June 2015 40,705 - 40,705 $ 7.37 6/23/2020 Total 9,672,379 2,726,039 6,946,340 As of June 30, 2017, the Company had 6,946,340 warrants outstanding classified as equity warrants. Each warrant grants the holder the right to purchase one share of our common stock. Equity warrants are recorded at their relative fair market value in the stockholders’ equity section of the balance sheet. The Company’s equity warrants can only be settled through the issuance of shares and do not have any anti-dilution or price reset provision. During the six months ended June 30, 2017, warrants were exercised to purchase 2,726,039 shares of common stock for proceeds of approximately $4.0 million.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	9. Stock-Based Compensation In connection with the Company’s Initial Public Offering (“IPO”) of its common stock in January 2015, the Company’s board of directors terminated the Company’s 2012 Stock Incentive Plan (“2012 Plan”) effective as of January 27, 2015 and no further awards may be issued under the 2012 Plan. However, the awards outstanding under the 2012 Plan continue to be governed by the terms of the 2012 Plan. In July 2014, the board of directors and the stockholders of the Company adopted the 2014 Equity and Incentive Plan (“2014 Plan”), which became effective upon the closing of the IPO. As of June 30, 2017, options to purchase 1,632,136 shares of common stock were outstanding under the 2014 Plan with exercises prices ranging from $0.57 to $9.29 and with a weighted average price of $1.40. Pursuant to the “evergreen” provision in the 2014 Plan, an additional 359,008 shares were automatically allocated for distribution under the 2014 Plan as of January 1, 2017 (the “Evergreen Increase”). On September 7, 2016, the Company awarded an inducement option grant to the Company’s Chief Business Officer to purchase 252,000 shares of the Company’s common stock at an exercise price of $0.77 per share. On January 19, 2017, the Company awarded an inducement option to a new employee to purchase 35,000 shares of the Company’s common stock at an exercise price of $1.14 per share. These inducement option grants were issued outside of the existing equity compensation plans in accordance with NASDAQ listing rule 5635(c)(4). The inducement grants have a term of 10 years and vest at the rate of 25% of the shares on the first anniversary of the commencement of such employee’s employment with the Company and monthly, thereafter, so that the option is fully vested on the fourth anniversary of the vesting start date. On November 2, 2016, the Company granted a total of 670,000 conditional stock options at $0.57 per share to certain executive officers. The conditional stock option grants were subject to approval by the Company’s stockholders of an amendment to the 2014 Plan that would increase the number of shares available for issuance by an amount sufficient to cover the new grants. 90,000 of these conditional stock options were forfeited upon the resignation of a former executive prior to stockholder approval of the plan amendment. On May 31, 2017, the stockholders of the Company approved an amendment to the 2014 Plan to increase the number of shares of common stock under the plan by 700,000 (the “Plan Amendment”). On June 5, 2017, the Company filed a Form S-8 Registration Statement which registered: (i) the 287,000 shares of common stock underlying the September 2016 and January 2017 inducement option grants, (ii) 700,000 shares of common stock added to the 2014 Plan pursuant to the Plan Amendment and (iii) 359,008 added to the Plan in connection with the Evergreen Increase. On June 12, 2017, the Company awarded inducement grants to two new employees to purchase an aggregate of 100,000 shares of common stock at an exercise price of $1.36 per share. Each stock option has a ten-year term and vests over four years with 25% of the shares vesting on the first anniversary of the commencement of such employee’s employment with the Company and monthly, thereafter, so that the option is fully vested on the fourth anniversary of the vesting start date. These inducement option grants were issued outside of the existing equity compensation plans in accordance with NASDAQ listing rule 5635(c)(4). The following table summarizes option and award activity, excluding inducement grants, for the six months ended June 30, 2017 (unaudited): Shares Grant Outstanding of Shares Weighted- Price per Weighted- (In Years) Aggregate Balance at December 31, 2016 55,815 1,594,058 $ 1.93 8.45 $ 18,900 Additional shares reserved 1,059,008 - $ - Options granted (1) (603,000) 603,000 $ 0.59 Options exercised - (98,583) $ 1.40 Options cancelled/forfeited/expired 301,407 (301,407) $ 2.30 Restricted stock awards granted (60,000) - $ - Shares expired under 2012 Plan (4,836) - $ - Balance at June 30, 2017 748,394 1,797,068 $ 1.44 7.96 $ 802,756 Exercisable at June 30, 2017 579,023 $ 2.29 5.30 $ 52,974 Vested or expected to vest at June 30, 2017 1,687,080 $ 1.48 7.87 $ 733,743 (1) Includes conditionals grants of 580,000 awarded in November 2016 and subsequently approved by stockholders in May 2017. The aggregate intrinsic values of options outstanding and exercisable, and vested and expected to vest were calculated as the difference between the exercise price of the options and the closing market value of the Company’s common stock as reported on NASDAQ as of June 30, 2017. The following table summarizes the composition of stock options outstanding and exercisable under the 2012 Plan and the 2014 Plan, which excludes inducement grants, as of June 30, 2017 (unaudited): Options Outstanding Options Exercisable Exercise Price Number of Weighted- Average Remaining Weighted Exercise Price Number of Weighted Exercise Price $0.57 - $0.57 670,000 9.34 $ 0.57 52,498 $ 0.57 $0.85 - $0.85 400,000 9.48 $ 0.85 - $ - $1.14 - $2.26 364,742 5.36 $ 1.83 260,532 $ 1.78 $2.34 - $9.13 334,326 6.20 $ 2.83 251,410 $ 2.78 $9.29 - $9.29 28,000 7.89 $ 9.29 14,583 $ 9.29 Stock-Based Compensation Expense Total stock-based compensation expense recognized for grants under the approved option plans and inducement grants, was as follows (unaudited, in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Research and development $ 76 $ 136 $ 137 $ 275 General and administrative 107 217 279 390 $ 183 $ 353 $ 416 $ 665 As of June 30, 2017, the Company had $1.3 million of total unrecognized stock-based compensation expense, net of estimated forfeitures, related to outstanding stock options that will be recognized over a weighted-average period of 3.21 years. The Company uses the Black-Scholes model for valuing its options and awards granted to employees and non-employees. The following table illustrates the input assumptions used to value employee stock option grants for the periods presented (unaudited): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Dividend yield 0% 0% 0% 0% Risk-free interest rate 1.90% 1.06% - 1.54% 1.90% - 2.13% 1.06% - 1.97% Expected volatility 89% 89% 89% 89% Expected term (years) 6.08 6.08 6.08 6.08

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Regulation S-X. They do not include all the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any other subsequent period. These financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2016, included in the Company’s annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”).
Use of Estimates	Use of Estimates The preparation of the accompanying condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the periods reported. Actual results could differ from those estimates.
Liquidity and Substantial Doubt in Going Concern	Liquidity and Substantial Doubt in Going Concern The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern. As of June 30, 2017, the Company has an accumulated deficit of $210.5 million, as well as recurring operating losses and negative cash flows from operating activities. Presently, the Company does not have sufficient cash resources to meet its plans in the next twelve months from issuance of this report. The Company has financed its operations primarily through the sale of equity securities, debt financing and payments received under its former licensing and collaboration agreements with pharmaceutical companies. To date, none of the Company’s product candidates have been approved by the Food and Drug Administration for sale. The Company will continue to require additional financing to develop its product candidates and fund operating losses. Management intends to seek capital to support the Company’s initiatives through equity or debt financing, collaboration or other arrangements with corporate partners, and/or other sources of financing. However, if such financing is not available at adequate levels or on acceptable terms, the Company could be required to significantly reduce its operating expenses and delay, reduce the scope of or eliminate some of its development programs, out-license intellectual property rights, or a combination of the above, which may have a material adverse effect on the Company’s business, results of operations, financial condition and/or its ability to meet its scheduled obligations on a timely basis, if at all. Although management has been successful in raising capital in the past, most recently in March 2017, there can be no assurance that the Company will be successful, or that any needed financing will be available in the future at terms acceptable to the Company. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern within one year after the issuance of this report. There are no assurances that such additional funding will be achieved and that the Company will succeed in its future operations. The Company’s inability to obtain required funding in the near future or its inability to obtain funding on favorable terms will have a material adverse effect on its operations and strategic development plan for future growth. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected, and the Company may have to cease operations.
Consolidation	Consolidation The condensed consolidated financial statements include the accounts of Zosano Pharma Corporation and Opco. Intercompany balances and transactions have been eliminated in consolidation.
Research and Development Expenses	Research and Development Expenses Research and development costs are charged to expense as incurred and consist of costs related to (i) furthering the Company’s research and development efforts, and (ii) designing and manufacturing products that incorporate the Company’s ADAM technology for the Company’s clinical and nonclinical studies.
Net Loss Per Common Share	Net Loss Per Common Share Basic net income (loss) per common share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive common stock equivalents. Diluted net income (loss) per common share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, warrants and options to purchase common stock are considered potentially dilutive common stock equivalents. For the three and six months ended June 30, 2017 and 2016, diluted net loss per common share was the same as basic net loss per common share since the effect of inclusion of potentially dilutive common stock equivalents would have an antidilutive effect due to the loss reported. The following outstanding common stock equivalents were excluded from the computations of diluted net loss per common share for the periods presented as the effect of including such securities would be antidilutive: June 30, 2017 2016 (unaudited; in shares) Warrants to purchase common stock 6,946,340 72,379 Options to purchase common stock 2,184,068 1,173,627 9,130,408 1,246,006
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, Compensation – Stock Compensation; Scope of Modification Accounting In February 2017, the FASB issued ASU 2017-05, Other Income Gain and Losses from the Derecognition of Nonfinancial Assets In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows In February 2016, the FASB issued ASU 2016-02, Leases In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Schedule of Outstanding Common Stock Equivalents Excluded From Computations of Diluted Net Loss per Common Share	The following outstanding common stock equivalents were excluded from the computations of diluted net loss per common share for the periods presented as the effect of including such securities would be antidilutive: June 30, 2017 2016 (unaudited; in shares) Warrants to purchase common stock 6,946,340 72,379 Options to purchase common stock 2,184,068 1,173,627 9,130,408 1,246,006

Cash, Cash Equivalents and In17

Cash, Cash Equivalents and Investments (Tables)	6 Months Ended
	Jun. 30, 2017
Cash and Cash Equivalents [Abstract]
Summary of Cash, Cash Equivalents, and Marketable Security Investments	The following is a summary of the Company’s cash, cash equivalents, and marketable securities investments for each of the periods presented (in thousands): June 30, 2017 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (unaudited) Cash in bank $ 13,220 $ - $ - $ 13,220 Money market funds 2,206 - - 2,206 Certificates of deposit (restricted) 35 - - 35 Certificates of deposit 4,635 - - 4,635 Commercial paper 2,447 - - 2,447 Corporate notes and bonds 2,020 - (1) 2,019 U.S. treasuries 904 - - 904 U.S. government agency bonds 2,795 - (1) 2,794 $ 28,262 $ - $ (2) $ 28,260 Classified as: Cash and cash equivalents $ 21,159 Restricted cash 35 Short-term investments in marketable securities 7,066 $ 28,260 December 31, 2016 Cost Gross Unrealized Gross Unrealized Losses Fair Value Cash in bank $ 3,342 $ - $ - $ 3,342 Money market funds 11,661 - - 11,661 Certificates of deposit (restricted) 35 - - 35 $ 15,038 $ - $ - $ 15,038 Classified as: Cash and cash equivalents $ 15,003 Restricted cash 35 $ 15,038

Fair Value of Financial Instr18

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Instruments	The following tables set forth the fair value of the Company’s financial instruments for each of the periods presented (in thousands): June 30, 2017 Level I Level II Level III Total (unaudited) Financial Assets: Money market funds $ 2,206 $ - $ - $ 2,206 Certificates of deposit - 4,635 - 4,635 Commercial paper - 2,447 - 2,447 Corporate notes and bonds - 2,019 - 2,019 U.S. treasuries - 904 - 904 U.S. government agency bonds - 2,794 - 2,794 Total financial assets $ 2,206 $ 12,799 $ - $ 15,005 December 31, 2016 Level I Level II Level III Total Financial Assets: Money market funds $ 11,661 $ - $ - $ 11,661 Total financial assets $ 11,661 $ - $ - $ 11,661

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	The following summarizes the Company’s property and equipment for each of the periods presented (in thousands) June 30, 2017 December 31, 2016 (unaudited) Laboratory and office equipment $ 1,301 $ 1,127 Manufacturing equipment 10,798 10,857 Computer equipment and software 329 314 Leasehold improvements 15,694 15,694 Construction in progress 2,341 1,961 30,463 29,953 Less: accumulated depreciation (25,665) (24,498) $ 4,798 $ 5,455

Debt Financing (Tables)

Debt Financing (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Summary of Long-Term Debt, Net of Unamortized Debt Discount and Issuance Costs	The following is a summary of the Company’s long-term debt, net of unamortized debt discount and issuance costs for the periods presented (in thousands) June 30, 2017 December 31, 2016 (unaudited) Principal amount $ 9,277 $ 12,122 Less: unamortized debt issuance costs (23) (41) (42) (75) Plus: unamortized fair value debt premium 80 143 281 310 61 83 Secured promissory note (including accrued interest), net of unamortized debt issuance cost and premium $ 9,634 $ 12,542 Secured promissory note, current portion 6,118 5,992 Secured promissory note, long-term portion 3,516 6,550 Secured promissory note (including accrued interest), net of unamortized debt issuance cost and premium $ 9,634 $ 12,542

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Payments under Non-cancellable Operating Leases	As of June 30, 2017, future minimum payments under non-cancelable operating leases for each year ending December 31 are as follows (in thousands): Total (unaudited) 2017 $ 523 2018 1,502 2019 1,699 2020 1,752 2021 and thereafter 6,882 $ 12,358 (1) (1) Excludes any payments for capital improvements that may be required under the lease.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Summary of Warrants Issued and Outstanding	Below is a table summarizing the warrants issued and outstanding for each of the periods presented (unaudited): Warrants Warrants Warrants Exercise Expiration PIPE Financing - Series A 4,800,000 1,844,214 2,955,786 $ 1.45 8/26/2017 PIPE Financing - Series B 4,800,000 881,825 3,918,175 $ 1.55 8/19/2021 Hercules - June 2014 31,674 - 31,674 $ 8.84 1/27/2020 Hercules - June 2015 40,705 - 40,705 $ 7.37 6/23/2020 Total 9,672,379 2,726,039 6,946,340

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option and Award Activity Excluding Inducement Grants	Shares Grant Outstanding of Shares Weighted- Price per Weighted- (In Years) Aggregate Balance at December 31, 2016 55,815 1,594,058 $ 1.93 8.45 $ 18,900 Additional shares reserved 1,059,008 - $ - Options granted (1) (603,000) 603,000 $ 0.59 Options exercised - (98,583) $ 1.40 Options cancelled/forfeited/expired 301,407 (301,407) $ 2.30 Restricted stock awards granted (60,000) - $ - Shares expired under 2012 Plan (4,836) - $ - Balance at June 30, 2017 748,394 1,797,068 $ 1.44 7.96 $ 802,756 Exercisable at June 30, 2017 579,023 $ 2.29 5.30 $ 52,974 Vested or expected to vest at June 30, 2017 1,687,080 $ 1.48 7.87 $ 733,743 (1) Includes conditionals grants of 580,000 awarded in November 2016 and subsequently approved by stockholders in May 2017.
Summary of Stock Options Outstanding and Exercisable	The following table summarizes the composition of stock options outstanding and exercisable under the 2012 Plan and the 2014 Plan, which excludes inducement grants, as of June 30, 2017 (unaudited): Options Outstanding Options Exercisable Exercise Price Number of Weighted- Average Remaining Weighted Exercise Price Number of Weighted Exercise Price $0.57 - $0.57 670,000 9.34 $ 0.57 52,498 $ 0.57 $0.85 - $0.85 400,000 9.48 $ 0.85 - $ - $1.14 - $2.26 364,742 5.36 $ 1.83 260,532 $ 1.78 $2.34 - $9.13 334,326 6.20 $ 2.83 251,410 $ 2.78 $9.29 - $9.29 28,000 7.89 $ 9.29 14,583 $ 9.29
Summary of Stock-Based Compensation Expense	Total stock-based compensation expense recognized for grants under the approved option plans and inducement grants, was as follows (unaudited, in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Research and development $ 76 $ 136 $ 137 $ 275 General and administrative 107 217 279 390 $ 183 $ 353 $ 416 $ 665
Schedule of Weighted-Average Assumptions for the Black-Scholes Option-Pricing Model Used in Determining the Fair Value of Options Granted to Employees	The following table illustrates the input assumptions used to value employee stock option grants for the periods presented (unaudited): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Dividend yield 0% 0% 0% 0% Risk-free interest rate 1.90% 1.06% - 1.54% 1.90% - 2.13% 1.06% - 1.97% Expected volatility 89% 89% 89% 89% Expected term (years) 6.08 6.08 6.08 6.08

Organization - Additional Infor

Organization - Additional Information (Detail)	Jun. 30, 2017Subsidiaries
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of wholly owned subsidiaries	1

Summary of Significant Accoun25

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Accumulated deficit	$ (210,512)	$ (196,769)

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Schedule of Outstanding Common Stock Equivalents Excluded From Computations of Diluted Net Loss per Common Share (Detail) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock excluded from computation of diluted net loss per share	9,130,408	1,246,006
Warrants to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock excluded from computation of diluted net loss per share	6,946,340	72,379
Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock excluded from computation of diluted net loss per share	2,184,068	1,173,627

Cash, Cash Equivalents and In27

Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents, and Marketable Security Investments (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Classified as:
Cash and cash equivalents	$ 21,159	$ 15,003	$ 10,057	$ 6,646
Restricted cash	35	35
Short-term investments in marketable securities	7,066	0
Total	28,260	15,038
Cost	28,262	15,038
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2)	0
Fair Value	28,260	15,038
Cash in Bank [Member]
Classified as:
Total	13,220	3,342
Cost	13,220	3,342
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	13,220	3,342
Money Market Funds [Member]
Classified as:
Total	2,206	11,661
Cost	2,206	11,661
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	2,206	11,661
Certificates of Deposit (Restricted) [Member]
Classified as:
Total	35	35
Cost	35	35
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	35	$ 35
Certificates of Deposit [Member]
Classified as:
Total	4,635
Cost	4,635
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	4,635
Commercial Paper [Member]
Classified as:
Total	2,447
Cost	2,447
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	2,447
Corporate Notes and Bonds [Member]
Classified as:
Total	2,019
Cost	2,020
Gross Unrealized Gains	0
Gross Unrealized Losses	(1)
Fair Value	2,019
U.S Treasuries [Member]
Classified as:
Total	904
Cost	904
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	904
U.S Government Agency Bonds [Member]
Classified as:
Total	2,794
Cost	2,795
Gross Unrealized Gains	0
Gross Unrealized Losses	(1)
Fair Value	$ 2,794

Fair Value of Financial Instr28

Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financial Assets:
Financial assets fair value	$ 15,005	$ 11,661
Money Market Funds [Member]
Financial Assets:
Financial assets fair value	2,206	11,661
Certificates of Deposit [Member]
Financial Assets:
Financial assets fair value	4,635
Commercial Paper [Member]
Financial Assets:
Financial assets fair value	2,447
Corporate Notes and Bonds [Member]
Financial Assets:
Financial assets fair value	2,019
U.S Treasuries [Member]
Financial Assets:
Financial assets fair value	904
U.S Government Agency Bonds [Member]
Financial Assets:
Financial assets fair value	2,794
Level I [Member]
Financial Assets:
Financial assets fair value	2,206	11,661
Level I [Member] | Money Market Funds [Member]
Financial Assets:
Financial assets fair value	2,206	11,661
Level I [Member] | Certificates of Deposit [Member]
Financial Assets:
Financial assets fair value	0
Level I [Member] | Commercial Paper [Member]
Financial Assets:
Financial assets fair value	0
Level I [Member] | Corporate Notes and Bonds [Member]
Financial Assets:
Financial assets fair value	0
Level I [Member] | U.S Treasuries [Member]
Financial Assets:
Financial assets fair value	0
Level I [Member] | U.S Government Agency Bonds [Member]
Financial Assets:
Financial assets fair value	0
Level II [Member]
Financial Assets:
Financial assets fair value	12,799	0
Level II [Member] | Money Market Funds [Member]
Financial Assets:
Financial assets fair value	0	0
Level II [Member] | Certificates of Deposit [Member]
Financial Assets:
Financial assets fair value	4,635
Level II [Member] | Commercial Paper [Member]
Financial Assets:
Financial assets fair value	2,447
Level II [Member] | Corporate Notes and Bonds [Member]
Financial Assets:
Financial assets fair value	2,019
Level II [Member] | U.S Treasuries [Member]
Financial Assets:
Financial assets fair value	904
Level II [Member] | U.S Government Agency Bonds [Member]
Financial Assets:
Financial assets fair value	2,794
Level III [Member]
Financial Assets:
Financial assets fair value	0	0
Level III [Member] | Money Market Funds [Member]
Financial Assets:
Financial assets fair value	0	$ 0
Level III [Member] | Certificates of Deposit [Member]
Financial Assets:
Financial assets fair value	0
Level III [Member] | Commercial Paper [Member]
Financial Assets:
Financial assets fair value	0
Level III [Member] | Corporate Notes and Bonds [Member]
Financial Assets:
Financial assets fair value	0
Level III [Member] | U.S Treasuries [Member]
Financial Assets:
Financial assets fair value	0
Level III [Member] | U.S Government Agency Bonds [Member]
Financial Assets:
Financial assets fair value	$ 0

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 30,463	$ 29,953
Less: accumulated depreciation	(25,665)	(24,498)
Property and equipment, net	4,798	5,455
Laboratory and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,301	1,127
Manufacturing Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,798	10,857
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	329	314
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,694	15,694
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,341	$ 1,961

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 0.6	$ 0.6	$ 1.3	$ 1.2

Debt Financing - Additional Inf

Debt Financing - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 01, 2017	Dec. 31, 2016	Jun. 30, 2014
Debt Instrument [Line Items]
Interest expense		$ 200,000	$ 300,000	$ 500,000	$ 700,000
Beneficial Owner [Member] | BMV Direct SOTRS LP [Member] | Minimum [Member]
Debt Instrument [Line Items]
Ownership percentage of related party	5.00%
Amended Hercules Secured Term Loan [Member]
Debt Instrument [Line Items]
Debt interest rate		7.95%		7.95%			7.95%
Senior Subordinated Notes [Member] | Senior Secured Term Loan with Hercules [Member]
Debt Instrument [Line Items]
Debt face amount								$ 4,000,000
Senior Subordinated Notes [Member] | Amended Hercules Secured Term Loan [Member]
Debt Instrument [Line Items]
Debt face amount	$ 15,000,000
Debt payment terms				Principal balance will be subject to a 12-month interest-only period beginning July 1, 2015, followed by equal monthly installment payments of principal and interest, with all outstanding amounts due and payable on December 1, 2018.
Debt payment, beginning date				Jul. 1, 2015
Debt payment, due and payable date				Dec. 1, 2018
Debt effective interest rate	7.95%
Debt variable interest rate	7.95%
Debt additional variable interest rate decrease	5.25%
Debt end of term charge						$ 100,000
Debt prepayment penalty description				The Company may prepay all, but not less than all, of the Hercules Term Loan with no prepayment charge if prepaid after June 23, 2017.
Additional debt end of term charge		$ 351,135		$ 351,135
Senior Subordinated Notes [Member] | Amended Hercules Secured Term Loan [Member] | After June 23, 2017 [Member]
Debt Instrument [Line Items]
Prepayment penalty charge on outstanding principal after lock-in period	$ 0
Convertible Subordinated Debt [Member] | BMR Secured Note [Member]
Debt Instrument [Line Items]
Prepayment of outstanding principal and all accrued interest	$ 11,400,000

Debt Financing - Summary of Lon

Debt Financing - Summary of Long-Term Debt, Net of Unamortized Debt Discount and Issuance Costs (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Debt
Principal amount	$ 9,277	$ 12,122
Less: unamortized debt issuance costs	(23)	(41)
unamortized fair value of free standing warrant	(42)	(75)
Plus: unamortized fair value debt premium	80	143
accrued terminal interest	281	310
accrued interest	61	83
Secured promissory note (including accrued interest), net of unamortized debt issuance cost and premium	9,634	12,542
Secured promissory note, current portion	6,118	5,992
Secured promissory note, long-term portion	3,516	6,550
Secured promissory note (including accrued interest), net of unamortized debt issuance cost and premium	$ 9,634	$ 12,542

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Jun. 06, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Commitments [Line Items]
Rental expense		$ 200,000	$ 200,000	$ 400,000	$ 400,000
Seventh Amendment to Lease Agreement [Member]
Other Commitments [Line Items]
Operating lease amendment description				Under the Seventh Amendment, the Company extended the term of the Lease for the Company’s headquarters in Fremont, California through August 31, 2024, with an option to further extend the lease for an additional 65 months, subject to certain terms and conditions. The Company has agreed to pay a monthly base rent of $136,191 for the period commencing September 1, 2017, and ending on August 31, 2018, with an increase on September 1, 2018, and annual increases on September 1 of each subsequent year until the lease year beginning September 1, 2023. The Seventh Amendment also provides for rent abatements, subject to certain conditions, totaling $275,552 and certain tenant improvements to be completed at the Landlord’s expense (not to exceed $975,000 or, under certain conditions, $1,100,000). The Company may incur additional expenses under the lease in connection with roof repairs that will be treated as additional rent and paid over the term of the lease.
Extended lease term	65 months
Monthly base rent payable	$ 136,191
Rent abatements	275,552
Tenant improvements	975,000
Tenant improvements under certain conditions	$ 1,100,000

Commitments and Contingencies34

Commitments and Contingencies - Schedule of Future Minimum Payments under Non-cancellable Operating Leases (Detail) $ in Thousands	Jun. 30, 2017USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating lease future minimum payments due, 2017	$ 523
Operating lease future minimum payments due, 2018	1,502
Operating lease future minimum payments due, 2019	1,699
Operating lease future minimum payments due, 2020	1,752
Operating lease future minimum payments due, 2021 and thereafter	6,882
Operating lease future minimum payments due	$ 12,358

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Mar. 22, 2017	Aug. 15, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Class of Stock [Line Items]
Common stock shares issued	19,550,000
Offering price per share	$ 1.50
Net proceeds from issuance of common stock			$ 26,623	$ 0
Equity warrants outstanding			6,946,340		9,672,379
Number of securities called by each warrant			1
Proceeds from exercise of warrants			$ 4,000
Common Stock [Member]
Class of Stock [Line Items]
Warrants to purchase common stock			2,726,039
Private Investment in Public Equity (PIPE) [Member]
Class of Stock [Line Items]
Common stock shares issued		4,800,000
Offering price per share		$ 1.32
Net proceeds from issuance of common stock		$ 6,300
Equity warrants outstanding		9,600,000
Proceeds from issuance of common stock and warrants		$ 7,500
Costs related to offering		$ 900
Warrant issuance price		$ 0.125
Proceeds from issuance of warrants		$ 1,200
Number of securities called by each warrant		1
Private Investment in Public Equity (PIPE) [Member] | Directors and Executive Officers [Member]
Class of Stock [Line Items]
Common stock shares issued		275,454
Equity warrants outstanding		550,908
Private Investment in Public Equity (PIPE) [Member] | Series A [Member]
Class of Stock [Line Items]
Equity warrants outstanding			2,955,786		4,800,000
Warrant exercise price			$ 1.45
Private Investment in Public Equity (PIPE) [Member] | Series B [Member]
Class of Stock [Line Items]
Equity warrants outstanding			3,918,175		4,800,000
Warrant exercise price			$ 1.55
Private Investment in Public Equity (PIPE) [Member] | Warrants to Purchase Common Stock [Member] | Series A [Member]
Class of Stock [Line Items]
Equity warrants outstanding		4,800,000
Warrant exercise price		$ 1.45
Warrant Expiration Period		1 year 7 days
Private Investment in Public Equity (PIPE) [Member] | Warrants to Purchase Common Stock [Member] | Series B [Member]
Class of Stock [Line Items]
Equity warrants outstanding		4,800,000
Warrant exercise price		$ 1.55
Warrant Expiration Period		5 years
Over-Allotment [Member]
Class of Stock [Line Items]
Common stock shares issued			2,550,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Warrants Issued and Outstanding (Detail) - $ / shares	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Aug. 15, 2016
Class of Warrant or Right [Line Items]
Warrants Exercised	2,726,039
Warrants Outstanding	6,946,340	9,672,379
Hercules - June 2014 [Member]
Class of Warrant or Right [Line Items]
Warrants Exercised	0
Warrants Outstanding	31,674	31,674
Exercise Price	$ 8.84
Expiration Date	Jan. 27, 2020
Hercules - June 2015 [Member]
Class of Warrant or Right [Line Items]
Warrants Exercised	0
Warrants Outstanding	40,705	40,705
Exercise Price	$ 7.37
Expiration Date	Jun. 23, 2020
Private Investment in Public Equity (PIPE) [Member]
Class of Warrant or Right [Line Items]
Warrants Outstanding			9,600,000
Private Investment in Public Equity (PIPE) [Member] | Series A [Member]
Class of Warrant or Right [Line Items]
Warrants Exercised	1,844,214
Warrants Outstanding	2,955,786	4,800,000
Exercise Price	$ 1.45
Expiration Date	Aug. 26, 2017
Private Investment in Public Equity (PIPE) [Member] | Series B [Member]
Class of Warrant or Right [Line Items]
Warrants Exercised	881,825
Warrants Outstanding	3,918,175	4,800,000
Exercise Price	$ 1.55
Expiration Date	Aug. 19, 2021

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Jun. 12, 2017	May 31, 2017	Jan. 19, 2017	Nov. 02, 2016	Sep. 07, 2016	Nov. 30, 2016	Jun. 30, 2017	Jun. 05, 2017	Mar. 22, 2017	Jan. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock number of shares granted						580,000	603,000
Common stock, exercise price per share									$ 1.50
Term of award							10 years
Vesting percentage							25.00%
Vesting term							The inducement grants have a term of 10 years and vest at the rate of 25% of the shares on the first anniversary of the commencement of such employee's employment with the Company and monthly, thereafter, so that the option is fully vested on the fourth anniversary of the vesting start date.
Vesting period							4 years
Unrecognized stock-based compensation expense							$ 1.3
Weighted-average period of unrecognized stock-based compensation expense							3 years 2 months 16 days
September 2016 and January 2017 Inducement Option Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance								287,000
Plan Amendment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance								700,000
Evergreen Increase [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance								359,008
Chief Business Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock number of shares granted					252,000
Common stock, exercise price per share					$ 0.77
New Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock number of shares granted	100,000		35,000
Common stock, exercise price per share	$ 1.36		$ 1.14
Term of award	10 years
Vesting percentage	25.00%
Vesting term							Each stock option has a ten-year term and vests over four years with 25% of the shares vesting on the first anniversary of the commencement of such employee’s employment with the Company and monthly, thereafter, so that the option is fully vested on the fourth anniversary of the vesting start date.
Vesting period	4 years
Executive Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock number of shares granted				670,000
Common stock, exercise price per share				$ 0.57
Former Executive Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conditional grants forfeited upon termination				90,000
2012 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options or awards issued under the Plan							0
2014 Equity and Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding, Number of Shares							1,632,136
Options Outstanding and Exercisable, Exercise Price, Minimum							$ 0.57
Options Outstanding and Exercisable, Exercise Price, Maximum							9.29
Options Outstanding, Weighted Average Exercise Price							$ 1.40
Common stock reserved for future issuance										359,008
Amended and Restated 2014 Equity and Incentive Plan [Member] | Executive Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock number of shares granted		700,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option and Award Activity Excluding Inducement Grants (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended	12 Months Ended
	Nov. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at December 31, 2016		$ 802,756	$ 18,900
Aggregate Intrinsic Value, Exercisable		52,974
Aggregate Intrinsic Value, Vested or expected to vest		$ 733,743
Shares Available for Grant, Beginning balance		55,815
Shares Available for Grant, Options reserved		1,059,008
Shares Available for Grant, Options granted	(580,000)	(603,000)
Shares Available for Grant, Options exercised		0
Shares Available for Grant, Options cancelled/forfeited/expired		301,407
Shares Available for Grant, Ending balance		748,394	55,815
Outstanding Number of Shares, Beginning balance		1,594,058
Outstanding Number of Shares, Options granted	580,000	603,000
Outstanding Number of Shares, Options exercised		(98,583)
Outstanding Number of Shares, Options cancelled/forfeited/expired		(301,407)
Outstanding Number of Shares, Ending balance		1,797,068	1,594,058
Outstanding Number of Shares, Exercisable		579,023
Outstanding Number of Shares, Restricted stock vested and released		1,687,080
Weighted-Average Exercise Price per Share, beginning balance		$ 1.93
Weighted-Average Exercise Price per Share, Options granted		0.59
Weighted-Average Exercise Price per Share, Options exercised		1.40
Weighted-Average Exercise Price per Share, Options cancelled/forfeited/expired		2.30
Weighted-Average Exercise Price per Share, Restricted stock awards granted		0
Weighted-Average Exercise Price per Share, Ending balance		1.44	$ 1.93
Weighted-Average Exercise Price per Share, Exercisable		2.29
Weighted-Average Exercise Price per Share, Vested or expected to vest		$ 1.48
Weighted-Average Remaining Contractual Term		7 years 11 months 15 days	8 years 5 months 12 days
Weighted-Average Remaining Contractual Term, Exercisable		5 years 3 months 19 days
Weighted-Average Remaining Contractual Term, Vested or expected to vest		7 years 10 months 14 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Available for Grant, Restricted stock awards granted		(60,000)
Outstanding Number of Shares, Restricted stock award granted		0
2012 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Available for Grant, Shares expired under 2012 Plan		(4,836)

Stock-Based Compensation - Su39

Stock-Based Compensation - Summary of Stock Option and Award Activity Excluding Inducement Grants (Parenthetical) (Detail) - shares	1 Months Ended	6 Months Ended
	Nov. 30, 2016	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares Available for Grant, Options granted	580,000	603,000

Stock-Based Compensation - Su40

Stock-Based Compensation - Summary of Stock Options Outstanding and Exercisable (Detail) - 2012 and 2014 Plan Excluding Inducement Grants [Member]	6 Months Ended
	Jun. 30, 2017$ / sharesshares
$0.57 - $0.57 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price, Minimum	$ 0.57
Options Outstanding, Exercise Price, Maximum	$ 0.57
Options Outstanding, Number of Shares | shares	670,000
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	9 years 4 months 2 days
Options Outstanding, Weighted Average Exercise Price	$ 0.57
Options Exercisable, Number of Shares | shares	52,498
Options Exercisable,Weighted Average Exercise Price	$ 0.57
$0.85 - $0.85 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price, Minimum	0.85
Options Outstanding, Exercise Price, Maximum	$ 0.85
Options Outstanding, Number of Shares | shares	400,000
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	9 years 5 months 23 days
Options Outstanding, Weighted Average Exercise Price	$ 0.85
Options Exercisable, Number of Shares | shares	0
Options Exercisable,Weighted Average Exercise Price	$ 0
$1.14 - $2.26 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price, Minimum	1.14
Options Outstanding, Exercise Price, Maximum	$ 2.26
Options Outstanding, Number of Shares | shares	364,742
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	5 years 4 months 9 days
Options Outstanding, Weighted Average Exercise Price	$ 1.83
Options Exercisable, Number of Shares | shares	260,532
Options Exercisable,Weighted Average Exercise Price	$ 1.78
$2.34 - $9.13 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price, Minimum	2.34
Options Outstanding, Exercise Price, Maximum	$ 9.13
Options Outstanding, Number of Shares | shares	334,326
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	6 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price	$ 2.83
Options Exercisable, Number of Shares | shares	251,410
Options Exercisable,Weighted Average Exercise Price	$ 2.78
$9.29 - $9.29 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price, Minimum	9.29
Options Outstanding, Exercise Price, Maximum	$ 9.29
Options Outstanding, Number of Shares | shares	28,000
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	7 years 10 months 21 days
Options Outstanding, Weighted Average Exercise Price	$ 9.29
Options Exercisable, Number of Shares | shares	14,583
Options Exercisable,Weighted Average Exercise Price	$ 9.29

Stock-Based Compensation - Su41

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 183	$ 353	$ 416	$ 665
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	76	136	137	275
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 107	$ 217	$ 279	$ 390

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Weighted-Average Assumptions for the Black-Scholes Option-Pricing Model Used in Determining the Fair Value of Options Granted to Employees (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	1.90%
Risk-free interest rate, minimum		1.06%	1.90%	1.06%
Risk-free interest rate, maximum		1.54%	2.13%	1.97%
Expected volatility	89.00%	89.00%	89.00%	89.00%
Expected term (years)	6 years 29 days	6 years 29 days	6 years 29 days