Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Flex Pharma, Inc. | |
Entity Central Index Key | 1,615,219 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 17,971,816 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 39,126,801 | $ 22,416,040 |
Marketable securities | 7,996,199 | 38,658,933 |
Accounts receivable | 34,735 | 12,181 |
Inventory | 688,185 | 454,132 |
Prepaid expenses and other current assets | 1,209,192 | 925,983 |
Total current assets | 49,055,112 | 62,467,269 |
Property and equipment, net | 448,102 | 556,315 |
Other assets | 0 | 64,800 |
Restricted cash | 126,595 | 126,595 |
Total assets | 49,629,809 | 63,214,979 |
Current liabilities: | ||
Accounts payable | 1,806,359 | 1,192,183 |
Accrued expenses and other current liabilities | 3,130,394 | 2,587,573 |
Deferred revenue | 96,667 | 88,344 |
Deferred rent, current portion | 0 | 21,095 |
Total current liabilities | 5,033,420 | 3,889,195 |
Deferred rent, net of current portion | 91,878 | 8,398 |
Total liabilities | 5,125,298 | 3,897,593 |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized at June 30, 2017 and December 31, 2016; none issued or outstanding at June 30, 2017 and December 31, 2016 | 0 | 0 |
Common stock, $0.0001 par value; 100,000,000 shares authorized at June 30, 2017 and December 31, 2016; 17,971,816 and 17,970,590 shares issued at June 30, 2017 and December 31, 2016, and 17,285,926 and 16,773,798 shares outstanding at June 30, 2017 and December 31, 2016, respectively | 1,729 | 1,678 |
Additional paid-in capital | 138,227,029 | 135,962,935 |
Accumulated other comprehensive loss | (5,616) | (1,614) |
Accumulated deficit | (93,718,631) | (76,645,613) |
Total stockholders' equity | 44,504,511 | 59,317,386 |
Total liabilities and stockholders' equity | $ 49,629,809 | $ 63,214,979 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 17,971,816 | 17,970,590 |
Common stock, shares outstanding (in shares) | 17,285,926 | 16,773,798 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net product revenue | $ 330,688 | $ 112,685 | $ 570,980 | $ 112,685 |
Other revenue | 4,835 | 0 | 7,090 | 0 |
Total revenue | 335,523 | 112,685 | 578,070 | 112,685 |
Costs and expenses: | ||||
Cost of product revenue | 145,325 | 110,931 | 224,431 | 307,951 |
Research and development | 4,076,220 | 6,094,921 | 7,991,194 | 10,482,000 |
Selling, general and administrative | 4,990,943 | 5,377,784 | 9,585,659 | 10,489,479 |
Total costs and expenses | 9,212,488 | 11,583,636 | 17,801,284 | 21,279,430 |
Loss from operations | (8,876,965) | (11,470,951) | (17,223,214) | (21,166,745) |
Interest income, net | 72,342 | 107,818 | 150,196 | 211,151 |
Net loss | (8,804,623) | (11,363,133) | (17,073,018) | (20,955,594) |
Net loss attributable to common stockholders | $ (8,804,623) | $ (11,363,133) | $ (17,073,018) | $ (20,955,594) |
Net loss per share attributable to common stockholders - basic and diluted (in usd per share) | $ (0.51) | $ (0.71) | $ (1) | $ (1.31) |
Weighted-average number of common shares outstanding — basic and diluted (in shares) | 17,130,264 | 16,105,555 | 17,002,597 | 15,974,544 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (8,804,623) | $ (11,363,133) | $ (17,073,018) | $ (20,955,594) |
Other comprehensive gain (loss): | ||||
Unrealized gain (loss) on available-for-sale securities | 6,737 | 19,885 | (4,002) | 64,144 |
Comprehensive loss | $ (8,797,886) | $ (11,343,248) | $ (17,077,020) | $ (20,891,450) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||
Net loss | $ (17,073,018) | $ (20,955,594) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 171,109 | 89,958 |
Stock-based compensation expense | 2,262,098 | 3,506,482 |
Amortization and accretion on investments | (15,895) | 78,751 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (22,554) | (11,595) |
Inventory | 207,063 | (274,302) |
Prepaid expenses and other current assets | (283,209) | (1,351,291) |
Other assets | 64,800 | (64,800) |
Accounts payable | 601,646 | 508,066 |
Accrued expenses and other current liabilities | 101,705 | (78,918) |
Deferred revenue | 8,323 | 65,115 |
Deferred rent | 62,385 | 2,363 |
Other long term liabilities | 0 | (15,442) |
Net cash used in operating activities | (13,915,547) | (18,501,207) |
Investing activities | ||
Purchases of marketable securities | (9,607,390) | (22,074,850) |
Proceeds from maturities and sales of marketable securities | 40,282,017 | 13,112,760 |
Purchases of property and equipment | (53,741) | (290,202) |
Proceeds from sales of property and equipment | 3,375 | 0 |
Net cash provided by (used in) investing activities | 30,624,261 | (9,252,292) |
Financing activities | ||
Proceeds from exercise of common stock | 2,047 | 8,043 |
Net cash provided by financing activities | 2,047 | 8,043 |
Net increase (decrease) in cash and cash equivalents | 16,710,761 | (27,745,456) |
Cash and cash equivalents at beginning of period | 22,416,040 | 66,686,695 |
Cash and cash equivalents at end of period | 39,126,801 | 38,941,239 |
Supplemental cash flow information | ||
Inventory purchases included in accrued expenses at June 30, 2017 | 441,116 | 0 |
Property and equipment purchases included in accounts payable at June 30, 2017 and 2016 | 19,630 | 161,049 |
Property and equipment purchases included in accounts payable and accrued expenses at December 31, 2016 and 2015 | $ 7,100 | $ 106,680 |
Organization and operations
Organization and operations | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and operations | Organization and operations The Company Flex Pharma, Inc. (the "Company") is a biotechnology company that is developing innovative and proprietary treatments for muscle cramps and spasticity associated with severe neurological conditions and exercise-associated muscle cramps. In August 2017, the Company initiated a Phase 2 clinical trial in the United States of its lead drug product candidate, FLX-787, in patients with motor neuron disease, or MND, primarily with amyotrophic lateral sclerosis, or ALS, who suffer from cramps. The Company also expects to initiate an additional Phase 2 clinical trial in third quarter of 2017 in patients with Charcot-Marie-Tooth disease, or CMT, who suffer from cramps. FLX-787 is currently in an exploratory Phase 2 spasticity study in Australia in patients with multiple sclerosis, or MS. In 2016, the Company launched its consumer product, HOTSHOT®, to prevent and treat exercise-associated muscle cramps, or EAMCs. FLX-787, HOTSHOT and the Company's other product candidates are based on the potential mechanism of action the Company describes as chemical neurostimulation, which is the process by which a chemical signal, acting topically, induces a neuronal sensory signal that produces a beneficial effect. The Company's product candidates activate certain receptors in primary sensory neurons, which then act via neuronal circuits to reduce hyperexcitability, which can result in the repetitive firing of alpha-motor neurons in the spinal cord, thereby preventing or reducing the frequency and intensity of muscle cramps and spasms. The Company operates as two reportable segments, Consumer Operations and Drug Development. See Note 11 for additional discussion and information on the reportable segments. The Company is subject to risks common to companies in the biotechnology and consumer products industries, including, but not limited to, risks of failure of pre-clinical studies and clinical trials, the need to obtain marketing approval for its drug product candidates, the need to successfully commercialize and gain market acceptance of its drug product candidates and its consumer products, dependence on key personnel, protection of proprietary technology, compliance with government regulations and development by competitors of alternative products. Liquidity The Company has incurred an accumulated deficit of $93,718,631 since inception and will require substantial additional capital to fund its research and development and commercialization and growth of its consumer brand and HOTSHOT. The Company had unrestricted cash, cash equivalents and marketable securities of $47,123,000 at June 30, 2017 . The Company believes that its existing cash, cash equivalents and marketable securities will be sufficient to allow the Company to fund its current operating plan for at least 12 months from the date the financial statements are issued. Management expects the Company to incur a loss for the foreseeable future. The Company's ability to achieve profitability in the future is dependent upon the successful development, approval and commercialization of its drug product candidates and successful commercialization of HOTSHOT and future consumer products, and achieving a level of revenues adequate to support the Company's cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. Management intends to fund future operations through additional private or public debt or equity offerings, and may seek additional capital through arrangements with collaborators or from other sources. There can be no assurances, however, that additional funding will be available on terms acceptable to the Company, or at all. |
Summary of significant accounti
Summary of significant accounting policies and recent accounting pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies and recent accounting pronouncements | Summary of significant accounting policies and recent accounting pronouncements The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of June 30, 2017 , the Company’s significant accounting policies, which are detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the “ 2016 10-K”), have not changed, other than as noted below. Revenue Revenue is comprised of net product revenue and other revenue. Net product revenue includes sales of HOTSHOT finished goods to e-commerce customers, specialty retailers and sports teams. Other revenue consists of payments made by customers for expedited shipping and handling, which the Company began offering during the third quarter of 2016. Revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. The Company issues refunds to e-commerce customers, upon request, within 30 days of delivery. As the Company currently does not have adequate history to accurately estimate refunds, all e-commerce sales, and their related costs, are deferred and revenue is recognized once the refund period lapses. This deferral represents total deferred revenue presented on the Company's consolidated balance sheet. For specialty retailers and sports teams, the Company does not offer a right of return or refund and revenue is recognized at the time products are delivered to customers. Discounts provided to customers are accounted for as a reduction of net product revenue. Net product revenue and other revenue are presented net of taxes collected from customers and remitted to governmental authorities. The Company had no customers that represented greater than 10% of total revenue during the three and six months ended June 30, 2017 . The vast majority of revenue was generated from sales within the United States. Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at their carrying values, net of any allowances for doubtful accounts. Accounts receivable consist primarily of amounts due from specialty retailers and sports teams, for which collectibility is reasonably assured. Receivables are evaluated for collectibility on a regular basis and an allowance for doubtful accounts is recorded, if necessary. No allowance for doubtful accounts was deemed necessary at June 30, 2017 . Advertising expense Advertising expense consists of media and production costs related to print and digital advertising. All advertising is expensed as incurred. Total advertising expenses are included in selling, general and administrative expenses in the condensed consolidated statement of operations, and were approximately $1,250,000 and $1,915,000 for the three and six months ended June 30, 2017 and approximately $916,000 and $1,426,000 for the three and six months ended June 30, 2016 . Shipping and handling costs Shipping and handling costs related to the movement of inventory to the Company's co-packer and from the co-packer to the Company's third-party warehousing partner is capitalized as inventory and expensed as a cost of product revenue when revenue is recognized. Shipping and handling costs to move finished goods from the Company's warehousing partner to the Company's third-party fulfillment partner or to customer locations are included in selling, general and administrative expenses in the condensed consolidated statement of operations, and were approximately $47,000 and $81,000 for the three and six months ended June 30, 2017 , and approximately $28,000 for both the three and six months ended June 30, 2016 , as the product launched during the second quarter of 2016. Unaudited interim financial information Certain information and footnote disclosures normally included in the Company’s annual financial statements have been condensed or omitted. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the 2016 10-K. The condensed consolidated financial statements as of June 30, 2017 , for the three and six months ended June 30, 2017 and 2016 , and the related information contained within the notes to the condensed consolidated financial statements, are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as annual audited consolidated financial statements, and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s condensed consolidated financial position as of June 30, 2017 , and the statements of operations, comprehensive loss and cash flows for the three and six month periods ended June 30, 2017 and 2016 . The results for the three and six months ended June 30, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017 , or any other future annual or interim periods. Basis of presentation and use of estimates The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company's management evaluates its estimates, which include, but are not limited to, estimates related to clinical study accruals, estimates related to inventory realizability, stock-based compensation expense and amounts of expenses during the reported period. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions. Principles of consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: TK Pharma, Inc., a Massachusetts Securities Corporation, and Flex Innovation Group LLC, a Delaware limited liability company, which contains the Company's consumer-related operations. All significant intercompany balances and transactions have been eliminated in consolidation. Concentration of risk The Company outsources the manufacture of HOTSHOT to a single co-packer that produces bottled finished goods. The Company also sources certain raw materials from sole suppliers. A disruption in the supply of materials or the production of finished goods could significantly impact the Company's revenues in the future as alternative sources of raw materials and co-packing may not be available at commercially reasonable rates or within a reasonably short period of time. Recent accounting pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The ASU provides for a single comprehensive model for use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for interim and annual periods beginning after December 15, 2016 with no early adoption permitted. In July 2015, the FASB deferred the effective date of this accounting update to annual periods beginning after December 15, 2017, along with an option to permit early adoption as of the original effective date. The Company is required to adopt the amendments in the ASU using one of two acceptable methods: retrospectively to all prior reporting periods presented, with certain practical expedients permitted; or retrospectively with the cumulative effect of initially adopting the ASU recognized at the date of initial application. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), clarifying the implementation guidance on principal versus agent considerations. Specifically, an entity is required to determine whether the nature of a promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). The determination influences the timing and amount of revenue recognition. The effective date and transition requirements for ASU No. 2016-08 are the same as the effective date and transition requirements for ASU No. 2014-09. The Company is currently evaluating the adoption impact of the guidance related to the Company's sales of HOTSHOT. The Company plans to adopt the amendment retrospectively to all prior reporting periods presented. Based on evaluation of the Company's current revenue streams, the Company does not expect the new guidance to change the total amount of revenue recognized, but may accelerate the timing of when revenue is recognized. The Company expects that the guidance will impact the consolidated statement of operations and balance sheet, but cannot yet quantify those impacts at this time. The Company has completed an initial impact analysis, including reviewing the terms and conditions of its contracts. The Company is in the process of finalizing its accounting policy, and, once finalized, the Company will design and implement necessary changes to processes and controls to allow for proper recognition, presentation and disclosure upon adoption effective in the beginning of fiscal year 2018. The FASB has issued, and may issue in the future, interpretive guidance which may cause the Company's evaluation to change. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) . This ASU simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016 and for interim periods therein. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The Company adopted this ASU as of March 31, 2017, which did not have a material impact on its condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases . The ASU requires lessees to recognize assets and liabilities on their balance sheet for the right of use ("ROU") and obligations created by most leases, and to continue to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. While the Company is currently evaluating the effect this standard will have on its consolidated financial statements and timing of adoption, the Company expects that upon adoption, it will recognize ROU assets and lease liabilities and those amounts could be material. In March 2016, the FASB issued ASU No. 2016-09 Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted this standard as of March 31, 2017 and the following summarizes the effects of the adoption on the Company's unaudited condensed consolidated financial statements: Forfeitures - Prior to adoption, share-based compensation expense was recognized on a straight-line basis, net of estimated forfeitures, such that expense was recognized only for share-based awards that were expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company no longer applies a forfeiture rate and instead will account for forfeitures as they occur. As the Company previously estimated forfeitures to determine stock-based compensation expense, this change resulted in a cumulative-effect adjustment as of January 1, 2017 to increase retained earnings by approximately $2,000 . Income taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized as income tax expense or benefit in the consolidated statement of operations. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The Company did not recognize any discrete adjustments to income tax expense for the three months ended March 31, 2017, the first quarter of adoption, as the Company was in a full valuation allowance position. The Company has applied the modified retrospective adoption approach beginning in 2017. This cumulative-effect adjustment related to tax assets that had previously arisen from tax deductions for equity compensation expenses that were greater than the compensation recognized for financial reporting. These assets had been excluded from the deferred tax assets and liabilities totals on the balance sheet as a result of certain realization requirements previously included in ASC 718. The Company recorded a cumulative-effect adjustment of approximately $50,000 through retained earnings and deferred tax assets. However, due to the full valuation allowance, the only impact of the retrospective adoption is footnote presentation which will be presented in the December 31, 2017 year-end notes to the consolidated financial statements. Upon adoption, no other aspects of ASU 2016-09 had a material effect on the Company's consolidated financial statements or related footnote disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows , which amends ASU Topic 230. This update requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer be required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted. Entities are required to apply the guidance retrospectively. The Company is currently evaluating the effect of adopting this new accounting guidance. The Company believes that the impact of other recently issued standards that are not yet effective will not have a material effect on its consolidated financial position or results of operations upon adoption. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements The Company records cash equivalents and marketable securities at fair value. ASC Topic 820 Fair Value Measurements and Disclosures established a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. The following tables summarize the cash equivalents and marketable securities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 : Level 1 Level 2 Level 3 Balance as of June 30, 2017 Cash equivalents $ 26,029,665 $ — $ — $ 26,029,665 Marketable securities: U.S. government agency securities — 7,996,199 — 7,996,199 $ 26,029,665 $ 7,996,199 $ — $ 34,025,864 Level 1 Level 2 Level 3 Balance as of December 31, 2016 Cash equivalents $ 11,681,074 $ — $ — $ 11,681,074 Marketable securities: U.S. government agency securities — 31,059,491 — 31,059,491 Commercial paper — 6,081,202 — 6,081,202 Corporate debt securities — 1,518,240 — 1,518,240 $ 11,681,074 $ 38,658,933 $ — $ 50,340,007 Cash equivalents and marketable securities have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third-party pricing services or other market observable data. The pricing services utilize industry standard valuation models, including both income and market based approaches and observable market inputs to determine value. The majority of the Company's cash equivalents consist of money market funds that are valued based on publicly available quoted market prices for identical securities as of June 30, 2017 . After completing its validation procedures, the Company did not adjust or override any fair value carrying amounts as of June 30, 2017 . The carrying amounts reflected in the condensed consolidated balance sheets for cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximate their fair values at June 30, 2017 and December 31, 2016 , due to their short-term nature. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of assets or liabilities between Level 1 and Level 2 during the six months ended June 30, 2017 or the year ended December 31, 2016 . The Company had no financial assets or liabilities that were classified as Level 3 at any time during the six months ended June 30, 2017 or the year ended December 31, 2016. |
Cash equivalents and marketable
Cash equivalents and marketable securities | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash equivalents and marketable securities | Cash equivalents and marketable securities The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash equivalents as of June 30, 2017 and December 31, 2016 consisted of money market funds. Marketable securities as of June 30, 2017 consisted of U.S. government agency securities. Marketable securities as of December 31, 2016 consisted of U.S. government agency securities, commercial paper and corporate debt securities. Management determines the appropriate classification of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. The Company classifies its marketable securities as available-for-sale pursuant to ASC 320, Investments – Debt and Equity Securities . Marketable securities are recorded at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive income (loss) in stockholders’ equity and a component of total comprehensive income (loss) in the condensed consolidated statement of comprehensive income (loss), until realized. Realized gains and losses are included in investment income on a specific-identification basis. There were no realized gains on marketable securities during the three and six months ended June 30, 2017 , and there were immaterial realized gains on marketable securities during the three and six months ended June 30, 2016 . The Company reviews marketable securities for other-than-temporary impairment whenever the fair value of a marketable security is less than the amortized cost and evidence indicates that a marketable security’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the consolidated statement of operations if the Company has experienced a credit loss, has the intent to sell the marketable security, or if it is more likely than not that the Company will be required to sell the marketable security before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period. Marketable securities at June 30, 2017 and December 31, 2016 consisted of the following: Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of June 30, 2017 Current (due within 1 year): U.S. government agency securities $ 8,001,815 $ — $ (5,616 ) $ 7,996,199 Total $ 8,001,815 $ — $ (5,616 ) $ 7,996,199 Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of December 31, 2016 Current (due within 1 year): U.S. government agency securities $ 31,060,710 $ 2,912 $ (4,131 ) $ 31,059,491 Commercial paper 6,081,202 — — 6,081,202 Corporate debt securities 1,518,635 — (395 ) 1,518,240 Total $ 38,660,547 $ 2,912 $ (4,526 ) $ 38,658,933 The Company held three and six debt securities that were in an unrealized loss position at June 30, 2017 and December 31, 2016 , respectively, all of which have been in a continuous loss position for less than 12 months. The aggregate fair value of debt securities in an unrealized loss position was $7,996,199 and $16,519,620 at June 30, 2017 and December 31, 2016 , respectively. There were no individual securities that were in a significant unrealized loss position as of June 30, 2017 or December 31, 2016 . The Company evaluated its securities for other-than-temporary impairment and no marketable securities were considered to be other-than-temporarily impaired as of June 30, 2017 . At June 30, 2017 and December 31, 2016 , all investments held by the Company were classified as current. Investments classified as current have maturities of less than one year. Investments classified as noncurrent are those that (i) have a maturity greater than one year and (ii) management does not intend to liquidate within the next year, although these funds are available for use and therefore classified as available-for-sale. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The Company began capitalizing inventory as of March 31, 2016, when it was determined that the inventory had a probable future economic benefit. Inventory has been recorded at cost as of June 30, 2017 and December 31, 2016 . Costs capitalized at June 30, 2017 and December 31, 2016 relate to HOTSHOT finished goods, as well as raw materials available to be used for future production runs. The following table presents inventory: June 30, 2017 December 31, 2016 Raw materials $ 10,441 $ 19,888 Finished goods 677,744 434,244 Total inventory $ 688,185 $ 454,132 In the second quarter of 2017, the Company completed a production run of HOTSHOT, and wrote off raw materials purchased for the production run that are not expected to be used in future production runs. In the prior year, the Company wrote off raw materials purchased for production runs of HOTSHOT that were not expected to be used in future production runs, as well as finished goods not expected to be sold based upon projected sales, estimated product shelf life, the number of units produced and production level requirements. Write-offs totaled $17,767 for the three and six months ended June 30, 2017 , and $40,652 and $225,950 for the three and six months ended June 30, 2016 , respectively, and were included in cost of product revenue in the accompanying condensed consolidated statement of operations. The cost of product revenue related to deferred revenue is capitalized and recorded as cost of product revenue at the time the revenue is recognized. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: June 30, 2017 December 31, 2016 Research and development costs $ 1,858,526 $ 938,665 Consumer product-related costs 507,691 42,024 Payroll and employee-related costs 505,489 1,453,665 Professional fees 208,688 153,219 Other 50,000 — Total $ 3,130,394 $ 2,587,573 |
Common stock
Common stock | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Common stock | Common stock As of June 30, 2017 , the Company had authorized 100,000,000 shares of common stock, $0.0001 par value per share. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors. The Company does not intend to declare dividends for the foreseeable future. Restricted common stock to founders In March 2014, the Company sold 4,553,415 shares of restricted common stock to the founders of the Company ("recipients"), for $0.0004 per share, for total proceeds of $1,950 . In April 2014, based upon anti-dilution provisions granted to the founders, an additional 867,314 shares of restricted common stock were sold to the same founders, after which the anti-dilution provisions were terminated. The restricted common stock vested 25% upon issuance, and the remaining 75% vests ratably over four years , during which time the Company has the right to repurchase the unvested shares held by a recipient if the relationship between such recipient and the Company ceases. If the relationship terminates, the Company has 90 days to repurchase unvested shares at $0.0004 per share. Such shares are not accounted for as outstanding until they vest. There were 4,742,923 shares of restricted common stock outstanding as of June 30, 2017 . Unvested restricted common stock awards to non-employees are re-measured at each vest date and each financial reporting date. The following is a summary of restricted common stock activity: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2016 1,185,958 $ 0.10 Issued — — Vested (508,152 ) 0.10 Forfeited — — Unvested at June 30, 2017 677,806 $ 0.10 Restricted common stock to consultants In 2016, the Company issued 18,194 shares of restricted common stock to non-employee consultants and advisors. The Company has the right to repurchase any unvested shares held by a recipient if the relationship between such recipient and the Company ceases. If the relationship terminates, the Company has 90 days to repurchase unvested shares at $ 0.0001 per share. Such shares are not accounted for as outstanding until they vest. There were 10,110 shares of restricted common stock issued to consultants outstanding as of June 30, 2017 . Unvested restricted common stock awards to non-employees are re-measured at each vest date and each financial reporting date. The following is a summary of restricted common stock activity: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2016 10,834 $ 9.72 Issued — — Vested (2,750 ) 8.95 Forfeited — — Unvested at June 30, 2017 8,084 $ 9.98 |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock-based compensation In March 2014, the Company adopted the Flex Pharma, Inc. 2014 Equity Incentive Plan (the "2014 Plan"), under which it had the ability to grant incentive stock options ("ISOs"), non-qualified stock options, restricted stock awards, restricted stock units and stock appreciation rights to purchase up to 116,754 shares of common stock. In April 2014, the Company amended the 2014 Plan to reserve for the issuance of up to 1,451,087 shares of common stock pursuant to equity awards. In September 2014, the Company further amended the 2014 Plan to reserve for the issuance of up to 2,070,200 shares of common stock pursuant to equity awards. Terms of stock award agreements, including vesting requirements, were determined by the board of directors, subject to the provisions of the 2014 Plan. For options granted under the 2014 Plan, the exercise price equaled the fair market value of the common stock as determined by the board of directors on the date of grant. No further awards will be granted under the 2014 Plan. In January 2015, the Company's board of directors adopted, and the Company's stockholders approved, the 2015 Equity Incentive Plan (the "2015 Plan"), which became effective immediately prior to the closing of the Company's IPO. The 2015 Plan provides for the grant of ISOs, nonstatutory stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance-based stock awards and other stock-based awards. Additionally, the 2015 Plan provides for the grant of performance-based cash awards. ISOs may be granted only to the Company's employees. All other awards may be granted to the Company's employees, including officers, and to non-employee directors and consultants. As of June 30, 2017 , there were 771,983 shares remaining available for the grant of stock awards under the 2015 Plan. The Company has awarded stock options to its employees, directors, advisors and consultants, pursuant to the plans described above. Stock options subsequent to the completion of the Company's IPO are granted with an exercise price equal to the closing market price of the Company's common stock on the date of grant. Stock options generally vest over one to four years and have a contractual term of ten years . Stock options are valued using the Black-Scholes option pricing model and compensation cost is recognized based on the resulting value over the service period. Unvested awards to non-employees are re-measured at each vest date and at each financial reporting date. The following table summarizes stock option activity for employees and non-employees for the six months ended June 30, 2017 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Outstanding at December 31, 2016 2,156,250 $ 8.66 7.94 $ 1,605,684 Granted 792,500 4.27 Exercised (1,226 ) 1.67 Cancelled or forfeited (279,337 ) 9.81 Outstanding at June 30, 2017 2,668,187 $ 7.24 7.97 $ 939,484 Exercisable at June 30, 2017 1,226,720 $ 7.67 6.90 $ 654,967 Vested or expected to vest at June 30, 2017 2,668,187 $ 7.24 7.97 $ 939,484 Total stock-based compensation expense recognized for employee and non-employee restricted common stock, and stock options granted to employees and non-employees is included in the Company's condensed consolidated statement of operations as follows: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Research and development $ 391,602 $ 684,695 $ 786,019 $ 1,280,161 Selling, general and administrative 681,744 1,303,626 1,476,079 2,226,321 Total $ 1,073,346 $ 1,988,321 $ 2,262,098 $ 3,506,482 As of June 30, 2017 , there was approximately $7,132,098 of total unrecognized compensation cost related to unvested equity awards. Total unrecognized compensation cost will be adjusted for the re-measurement of non-employee awards as well as future changes in employee and non-employee forfeitures, if any. The Company expects to recognize that cost over a remaining weighted-average period of 2.38 years . Employee stock purchase plan In 2015, the Company's board of directors adopted, and the Company's stockholders approved, the 2015 Employee Stock Purchase Plan (the "ESPP"). As of June 30, 2017 , no shares of common stock have been purchased under the ESPP. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities using statutory rates. A valuation allowance is recorded against deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized. Based upon the Company's history of operating losses and the uncertainty surrounding the realization of the favorable tax attributes in future tax returns, the Company has recorded a full valuation allowance against the Company’s otherwise recognizable net deferred tax assets. There was no significant income tax provision or benefit for the three or six months ended June 30, 2017 or 2016. |
Net loss per share
Net loss per share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net loss per share | Net loss per share Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period, determined using the treasury stock method and the if-converted method, for convertible securities, if inclusion of these is dilutive. As the Company has reported a net loss for the periods presented, diluted net loss per common share is the same as basic net loss per common share. The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding for the periods indicated, because including them would have had an anti-dilutive impact: June 30, 2017 June 30, 2016 Options to purchase common stock 2,668,187 2,425,017 Unvested restricted common stock 685,890 1,707,694 Total 3,354,077 4,132,711 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates as two reportable segments: • The Consumer Operations segment, which reflects the total revenue and costs and expenses related to HOTSHOT and the Company's consumer operations. • The Drug Development segment, which reflects the costs and expenses related to the Company's efforts to develop innovative and proprietary drug products to treat muscle cramps and spasticity associated with severe neurological conditions. The Company discloses information about its reportable segments based on the way that the Company's Chief Operating Decision Maker, who the Company has identified as the Chief Executive Officer, and management, organize segments within the Company for making operating decisions and assessing financial performance. The Company evaluates the performance of its reportable segments based on revenue and operating income or loss. The accounting policies of the segments are the same as those described herein as well as those described in Note 2 to the audited consolidated financial statements in the 2016 Form 10-K. Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to "Corporate". No asset information has been provided for the Company's reportable segments as management does not measure or allocate such assets on a reportable segment basis. Information for the Company's reportable segments for the three months ended June 30, 2017 and 2016 are as follows: Three months Ended June 30, 2017 Consumer Operations Drug Development Corporate Consolidated Total revenue $ 335,523 — — $ 335,523 Interest income, net $ — — 72,342 $ 72,342 Loss from operations $ 2,760,496 3,960,335 2,156,134 $ 8,876,965 Three months Ended Consumer Operations Drug Development Corporate Consolidated Total revenue $ 112,685 — — $ 112,685 Interest income, net $ — — 107,818 $ 107,818 Loss from operations $ 2,841,848 5,907,774 2,721,329 $ 11,470,951 Information for the Company's reportable segments for the six months ended June 30, 2017 and 2016 are as follows: Six Months Ended Consumer Operations Drug Development Corporate Consolidated Total revenue $ 578,070 — — $ 578,070 Interest income, net $ — — 150,196 $ 150,196 Loss from operations $ 4,748,306 7,788,616 4,686,292 $ 17,223,214 Six Months Ended Consumer Operations Drug Development Corporate Consolidated Total revenue $ 112,685 — — $ 112,685 Interest income, net $ — — 211,151 $ 211,151 Loss from operations $ 5,771,202 9,966,817 5,428,726 $ 21,166,745 |
Summary of significant accoun18
Summary of significant accounting policies and recent accounting pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Revenue | Revenue is comprised of net product revenue and other revenue. Net product revenue includes sales of HOTSHOT finished goods to e-commerce customers, specialty retailers and sports teams. Other revenue consists of payments made by customers for expedited shipping and handling, which the Company began offering during the third quarter of 2016. Revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. The Company issues refunds to e-commerce customers, upon request, within 30 days of delivery. As the Company currently does not have adequate history to accurately estimate refunds, all e-commerce sales, and their related costs, are deferred and revenue is recognized once the refund period lapses. This deferral represents total deferred revenue presented on the Company's consolidated balance sheet. For specialty retailers and sports teams, the Company does not offer a right of return or refund and revenue is recognized at the time products are delivered to customers. Discounts provided to customers are accounted for as a reduction of net product revenue. Net product revenue and other revenue are presented net of taxes collected from customers and remitted to governmental authorities. |
Revenue, Discounts and Refunds | Discounts provided to customers are accounted for as a reduction of net product revenue. |
Accounts receivable | Accounts receivable are stated at their carrying values, net of any allowances for doubtful accounts. Accounts receivable consist primarily of amounts due from specialty retailers and sports teams, for which collectibility is reasonably assured. |
Allowance for doubtful accounts | Receivables are evaluated for collectibility on a regular basis and an allowance for doubtful accounts is recorded, if necessary. |
Advertising expense | Advertising expense consists of media and production costs related to print and digital advertising. All advertising is expensed as incurred. |
Shipping and handling costs | Shipping and handling costs related to the movement of inventory to the Company's co-packer and from the co-packer to the Company's third-party warehousing partner is capitalized as inventory and expensed as a cost of product revenue when revenue is recognized. Shipping and handling costs to move finished goods from the Company's warehousing partner to the Company's third-party fulfillment partner or to customer locations are included in selling, general and administrative expenses in the condensed consolidated statement of operations |
Basis of presentation | The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). |
Use of estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company's management evaluates its estimates, which include, but are not limited to, estimates related to clinical study accruals, estimates related to inventory realizability, stock-based compensation expense and amounts of expenses during the reported period. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions. |
Principles of consolidation | The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: TK Pharma, Inc., a Massachusetts Securities Corporation, and Flex Innovation Group LLC, a Delaware limited liability company, which contains the Company's consumer-related operations. All significant intercompany balances and transactions have been eliminated in consolidation. |
Concentration of risk | The Company outsources the manufacture of HOTSHOT to a single co-packer that produces bottled finished goods. The Company also sources certain raw materials from sole suppliers. A disruption in the supply of materials or the production of finished goods could significantly impact the Company's revenues in the future as alternative sources of raw materials and co-packing may not be available at commercially reasonable rates or within a reasonably short period of time. |
Recent accounting pronouncements | In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The ASU provides for a single comprehensive model for use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for interim and annual periods beginning after December 15, 2016 with no early adoption permitted. In July 2015, the FASB deferred the effective date of this accounting update to annual periods beginning after December 15, 2017, along with an option to permit early adoption as of the original effective date. The Company is required to adopt the amendments in the ASU using one of two acceptable methods: retrospectively to all prior reporting periods presented, with certain practical expedients permitted; or retrospectively with the cumulative effect of initially adopting the ASU recognized at the date of initial application. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), clarifying the implementation guidance on principal versus agent considerations. Specifically, an entity is required to determine whether the nature of a promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). The determination influences the timing and amount of revenue recognition. The effective date and transition requirements for ASU No. 2016-08 are the same as the effective date and transition requirements for ASU No. 2014-09. The Company is currently evaluating the adoption impact of the guidance related to the Company's sales of HOTSHOT. The Company plans to adopt the amendment retrospectively to all prior reporting periods presented. Based on evaluation of the Company's current revenue streams, the Company does not expect the new guidance to change the total amount of revenue recognized, but may accelerate the timing of when revenue is recognized. The Company expects that the guidance will impact the consolidated statement of operations and balance sheet, but cannot yet quantify those impacts at this time. The Company has completed an initial impact analysis, including reviewing the terms and conditions of its contracts. The Company is in the process of finalizing its accounting policy, and, once finalized, the Company will design and implement necessary changes to processes and controls to allow for proper recognition, presentation and disclosure upon adoption effective in the beginning of fiscal year 2018. The FASB has issued, and may issue in the future, interpretive guidance which may cause the Company's evaluation to change. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) . This ASU simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016 and for interim periods therein. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The Company adopted this ASU as of March 31, 2017, which did not have a material impact on its condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases . The ASU requires lessees to recognize assets and liabilities on their balance sheet for the right of use ("ROU") and obligations created by most leases, and to continue to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. While the Company is currently evaluating the effect this standard will have on its consolidated financial statements and timing of adoption, the Company expects that upon adoption, it will recognize ROU assets and lease liabilities and those amounts could be material. In March 2016, the FASB issued ASU No. 2016-09 Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted this standard as of March 31, 2017 and the following summarizes the effects of the adoption on the Company's unaudited condensed consolidated financial statements: Forfeitures - Prior to adoption, share-based compensation expense was recognized on a straight-line basis, net of estimated forfeitures, such that expense was recognized only for share-based awards that were expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company no longer applies a forfeiture rate and instead will account for forfeitures as they occur. As the Company previously estimated forfeitures to determine stock-based compensation expense, this change resulted in a cumulative-effect adjustment as of January 1, 2017 to increase retained earnings by approximately $2,000 . Income taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized as income tax expense or benefit in the consolidated statement of operations. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The Company did not recognize any discrete adjustments to income tax expense for the three months ended March 31, 2017, the first quarter of adoption, as the Company was in a full valuation allowance position. The Company has applied the modified retrospective adoption approach beginning in 2017. This cumulative-effect adjustment related to tax assets that had previously arisen from tax deductions for equity compensation expenses that were greater than the compensation recognized for financial reporting. These assets had been excluded from the deferred tax assets and liabilities totals on the balance sheet as a result of certain realization requirements previously included in ASC 718. The Company recorded a cumulative-effect adjustment of approximately $50,000 through retained earnings and deferred tax assets. However, due to the full valuation allowance, the only impact of the retrospective adoption is footnote presentation which will be presented in the December 31, 2017 year-end notes to the consolidated financial statements. Upon adoption, no other aspects of ASU 2016-09 had a material effect on the Company's consolidated financial statements or related footnote disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows , which amends ASU Topic 230. This update requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer be required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted. Entities are required to apply the guidance retrospectively. The Company is currently evaluating the effect of adopting this new accounting guidance. The Company believes that the impact of other recently issued standards that are not yet effective will not have a material effect on its consolidated financial position or results of operations upon adoption. |
Fair value measurements | The Company records cash equivalents and marketable securities at fair value. ASC Topic 820 Fair Value Measurements and Disclosures established a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. |
Cash equivalents | The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. |
Marketable securities | Marketable securities as of June 30, 2017 consisted of U.S. government agency securities. Marketable securities as of December 31, 2016 consisted of U.S. government agency securities, commercial paper and corporate debt securities. Management determines the appropriate classification of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. The Company classifies its marketable securities as available-for-sale pursuant to ASC 320, Investments – Debt and Equity Securities . Marketable securities are recorded at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive income (loss) in stockholders’ equity and a component of total comprehensive income (loss) in the condensed consolidated statement of comprehensive income (loss), until realized. Realized gains and losses are included in investment income on a specific-identification basis. There were no realized gains on marketable securities during the three and six months ended June 30, 2017 , and there were immaterial realized gains on marketable securities during the three and six months ended June 30, 2016 . The Company reviews marketable securities for other-than-temporary impairment whenever the fair value of a marketable security is less than the amortized cost and evidence indicates that a marketable security’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the consolidated statement of operations if the Company has experienced a credit loss, has the intent to sell the marketable security, or if it is more likely than not that the Company will be required to sell the marketable security before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period. |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Cash Equivalents and Marketable Securities Measured at Fair Value on a Recurring Basis | The following tables summarize the cash equivalents and marketable securities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 : Level 1 Level 2 Level 3 Balance as of June 30, 2017 Cash equivalents $ 26,029,665 $ — $ — $ 26,029,665 Marketable securities: U.S. government agency securities — 7,996,199 — 7,996,199 $ 26,029,665 $ 7,996,199 $ — $ 34,025,864 Level 1 Level 2 Level 3 Balance as of December 31, 2016 Cash equivalents $ 11,681,074 $ — $ — $ 11,681,074 Marketable securities: U.S. government agency securities — 31,059,491 — 31,059,491 Commercial paper — 6,081,202 — 6,081,202 Corporate debt securities — 1,518,240 — 1,518,240 $ 11,681,074 $ 38,658,933 $ — $ 50,340,007 |
Cash equivalents and marketab20
Cash equivalents and marketable securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Marketable Securities | Marketable securities at June 30, 2017 and December 31, 2016 consisted of the following: Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of June 30, 2017 Current (due within 1 year): U.S. government agency securities $ 8,001,815 $ — $ (5,616 ) $ 7,996,199 Total $ 8,001,815 $ — $ (5,616 ) $ 7,996,199 Amortized Cost Unrealized Gains Unrealized Losses Fair Value As of December 31, 2016 Current (due within 1 year): U.S. government agency securities $ 31,060,710 $ 2,912 $ (4,131 ) $ 31,059,491 Commercial paper 6,081,202 — — 6,081,202 Corporate debt securities 1,518,635 — (395 ) 1,518,240 Total $ 38,660,547 $ 2,912 $ (4,526 ) $ 38,658,933 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | The following table presents inventory: June 30, 2017 December 31, 2016 Raw materials $ 10,441 $ 19,888 Finished goods 677,744 434,244 Total inventory $ 688,185 $ 454,132 |
Accrued expenses and other cu22
Accrued expenses and other current liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Accrued expenses and other current liabilities consisted of the following: June 30, 2017 December 31, 2016 Research and development costs $ 1,858,526 $ 938,665 Consumer product-related costs 507,691 42,024 Payroll and employee-related costs 505,489 1,453,665 Professional fees 208,688 153,219 Other 50,000 — Total $ 3,130,394 $ 2,587,573 |
Schedule of other current liabilities | Accrued expenses and other current liabilities consisted of the following: June 30, 2017 December 31, 2016 Research and development costs $ 1,858,526 $ 938,665 Consumer product-related costs 507,691 42,024 Payroll and employee-related costs 505,489 1,453,665 Professional fees 208,688 153,219 Other 50,000 — Total $ 3,130,394 $ 2,587,573 |
Common stock (Tables)
Common stock (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Restricted common stock activity | The following is a summary of restricted common stock activity: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2016 10,834 $ 9.72 Issued — — Vested (2,750 ) 8.95 Forfeited — — Unvested at June 30, 2017 8,084 $ 9.98 The following is a summary of restricted common stock activity: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2016 1,185,958 $ 0.10 Issued — — Vested (508,152 ) 0.10 Forfeited — — Unvested at June 30, 2017 677,806 $ 0.10 |
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 activity | The following table summarizes stock option activity for employees and non-employees for the six months ended June 30, 2017 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Outstanding at December 31, 2016 2,156,250 $ 8.66 7.94 $ 1,605,684 Granted 792,500 4.27 Exercised (1,226 ) 1.67 Cancelled or forfeited (279,337 ) 9.81 Outstanding at June 30, 2017 2,668,187 $ 7.24 7.97 $ 939,484 Exercisable at June 30, 2017 1,226,720 $ 7.67 6.90 $ 654,967 Vested or expected to vest at June 30, 2017 2,668,187 $ 7.24 7.97 $ 939,484 |
Summary of stock-based compensation expense | Total stock-based compensation expense recognized for employee and non-employee restricted common stock, and stock options granted to employees and non-employees is included in the Company's condensed consolidated statement of operations as follows: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Research and development $ 391,602 $ 684,695 $ 786,019 $ 1,280,161 Selling, general and administrative 681,744 1,303,626 1,476,079 2,226,321 Total $ 1,073,346 $ 1,988,321 $ 2,262,098 $ 3,506,482 |
Net loss per share (Tables)
Net loss per share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of antidilutive securities excluded from computation of earnings per share | The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding for the periods indicated, because including them would have had an anti-dilutive impact: June 30, 2017 June 30, 2016 Options to purchase common stock 2,668,187 2,425,017 Unvested restricted common stock 685,890 1,707,694 Total 3,354,077 4,132,711 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Information for the Company's Operating Segments | Information for the Company's reportable segments for the three months ended June 30, 2017 and 2016 are as follows: Three months Ended June 30, 2017 Consumer Operations Drug Development Corporate Consolidated Total revenue $ 335,523 — — $ 335,523 Interest income, net $ — — 72,342 $ 72,342 Loss from operations $ 2,760,496 3,960,335 2,156,134 $ 8,876,965 Three months Ended Consumer Operations Drug Development Corporate Consolidated Total revenue $ 112,685 — — $ 112,685 Interest income, net $ — — 107,818 $ 107,818 Loss from operations $ 2,841,848 5,907,774 2,721,329 $ 11,470,951 Information for the Company's reportable segments for the six months ended June 30, 2017 and 2016 are as follows: Six Months Ended Consumer Operations Drug Development Corporate Consolidated Total revenue $ 578,070 — — $ 578,070 Interest income, net $ — — 150,196 $ 150,196 Loss from operations $ 4,748,306 7,788,616 4,686,292 $ 17,223,214 Six Months Ended Consumer Operations Drug Development Corporate Consolidated Total revenue $ 112,685 — — $ 112,685 Interest income, net $ — — 211,151 $ 211,151 Loss from operations $ 5,771,202 9,966,817 5,428,726 $ 21,166,745 |
Organization and operations (De
Organization and operations (Details) | 6 Months Ended | |
Jun. 30, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | segment | 2 | |
Retained earnings (accumulated deficit) | $ (93,718,631) | $ (76,645,613) |
Cash, cash equivalents, and marketable securities | $ 47,123,000 |
Summary of significant accoun28
Summary of significant accounting policies and recent accounting pronouncements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Refund period from day of shipment (in days) | 30 days | ||||
Advertising expense | $ 1,250,000 | $ 916,000 | $ 1,915,000 | $ 1,426,000 | |
Shipping and handling costs | 47,000 | $ 28,000 | 81,000 | $ 28,000 | |
Accounting Standards Update 2016-09, Excess Tax Benefit Component | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax assets | $ 50,000 | $ 50,000 | |||
Retained Earnings | Accounting Standards Update 2016-09, Forfeiture Rate Component | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ 2,000 | ||||
Retained Earnings | Accounting Standards Update 2016-09, Excess Tax Benefit Component | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ 50,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Marketable securities: | ||
Fair Value | $ 7,996,199 | $ 38,658,933 |
U.S. government agency securities | ||
Marketable securities: | ||
Fair Value | 7,996,199 | 31,059,491 |
Commercial paper | ||
Marketable securities: | ||
Fair Value | 6,081,202 | |
Corporate debt securities | ||
Marketable securities: | ||
Fair Value | 1,518,240 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 26,029,665 | 11,681,074 |
Marketable securities: | ||
Total assets | 34,025,864 | 50,340,007 |
Fair Value, Measurements, Recurring | U.S. government agency securities | ||
Marketable securities: | ||
Fair Value | 7,996,199 | 31,059,491 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Marketable securities: | ||
Fair Value | 6,081,202 | |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Marketable securities: | ||
Fair Value | 1,518,240 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 26,029,665 | 11,681,074 |
Marketable securities: | ||
Total assets | 26,029,665 | 11,681,074 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government agency securities | ||
Marketable securities: | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Marketable securities: | ||
Fair Value | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt securities | ||
Marketable securities: | ||
Fair Value | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities: | ||
Total assets | 7,996,199 | 38,658,933 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government agency securities | ||
Marketable securities: | ||
Fair Value | 7,996,199 | 31,059,491 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Marketable securities: | ||
Fair Value | 6,081,202 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt securities | ||
Marketable securities: | ||
Fair Value | 1,518,240 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities: | ||
Total assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government agency securities | ||
Marketable securities: | ||
Fair Value | $ 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Marketable securities: | ||
Fair Value | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt securities | ||
Marketable securities: | ||
Fair Value | $ 0 |
Cash equivalents and marketab30
Cash equivalents and marketable securities (Details) | Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 8,001,815 | $ 38,660,547 |
Unrealized Gains | 0 | 2,912 |
Unrealized Losses | (5,616) | (4,526) |
Fair Value | $ 7,996,199 | $ 38,658,933 |
Number of debt securities held | security | 3 | 6 |
Aggregate fair value of debt securities in an unrealized loss position | $ 7,996,199 | $ 16,519,620 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,001,815 | 31,060,710 |
Unrealized Gains | 0 | 2,912 |
Unrealized Losses | (5,616) | (4,131) |
Fair Value | $ 7,996,199 | 31,059,491 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,081,202 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 6,081,202 | |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,518,635 | |
Unrealized Gains | 0 | |
Unrealized Losses | (395) | |
Fair Value | $ 1,518,240 |
Inventory (Details)
Inventory (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||||
Raw materials | $ 10,441 | $ 10,441 | $ 19,888 | ||
Finished goods | 677,744 | 677,744 | 434,244 | ||
Total inventory | 688,185 | 688,185 | $ 454,132 | ||
Write-off of inventory | $ 17,767 | $ 40,652 | $ 17,767 | $ 225,950 |
Accrued expenses and other cu32
Accrued expenses and other current liabilities (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Research and development costs | $ 1,858,526 | $ 938,665 |
Consumer product-related costs | 507,691 | 42,024 |
Payroll and employee-related costs | 505,489 | 1,453,665 |
Professional fees | 208,688 | 153,219 |
Other | 50,000 | 0 |
Total | $ 3,130,394 | $ 2,587,573 |
Common stock - Narrative (Detai
Common stock - Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 | ||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted common stock, shares sold | 867,314 | 4,553,415 | ||
Restricted common stock, price per share (in usd per share) | $ 0.0004 | |||
Proceeds from sale of restricted common stock to founders | $ 1,950 | |||
Restricted common stock, repurchase period (in days) | 90 days | |||
Restricted common stock, repurchase price (in usd per share) | $ 0.0004 | |||
Restricted common stock, shares outstanding | 4,742,923 | |||
Restricted stock | Non-employee Consultants and Advisers | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted common stock, shares sold | 18,194 | |||
Restricted common stock, repurchase period (in days) | 90 days | |||
Restricted common stock, repurchase price (in usd per share) | $ 0.0001 | |||
Restricted common stock, shares outstanding | 10,110 | |||
Restricted stock | Vests upon issuance | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted common stock, percent vested | 25.00% | |||
Restricted stock | Vests ratably over four years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted common stock, percent vested | 75.00% | |||
Restricted common stock, vesting period (in years) | 4 years |
Common stock - Restricted commo
Common stock - Restricted common stock activity (Details) - Restricted stock | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance, unvested, number of shares | shares | 1,185,958 |
Issued, number of shares | shares | 0 |
Vested, number of shares | shares | (508,152) |
Forfeited, number of shares | shares | 0 |
Ending balance, unvested, number of shares | shares | 677,806 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance, weighted average grant date fair value (in usd per share) | $ / shares | $ 0.10 |
Issued, weighted average grant date fair value (in usd per share) | $ / shares | 0 |
Vested, weighted average grant date fair value (in usd per share) | $ / shares | 0.10 |
Forfeited, weighted average grant date fair value (in usd per share) | $ / shares | 0 |
Ending balance, weighted average grant date fair value (in usd per share) | $ / shares | $ 0.10 |
Non-employee Consultants and Advisers | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance, unvested, number of shares | shares | 10,834 |
Issued, number of shares | shares | 0 |
Vested, number of shares | shares | (2,750) |
Forfeited, number of shares | shares | 0 |
Ending balance, unvested, number of shares | shares | 8,084 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance, weighted average grant date fair value (in usd per share) | $ / shares | $ 9.72 |
Issued, weighted average grant date fair value (in usd per share) | $ / shares | 0 |
Vested, weighted average grant date fair value (in usd per share) | $ / shares | 8.95 |
Forfeited, weighted average grant date fair value (in usd per share) | $ / shares | 0 |
Ending balance, weighted average grant date fair value (in usd per share) | $ / shares | $ 9.98 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2017 | Sep. 30, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 7,132,098 | |||
Unrecognized compensation cost, recognition period (in years) | 2 years 4 months 17 days | |||
Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, contractual term | 10 years | |||
Minimum | Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, vesting period (in years) | 1 year | |||
Maximum | Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, vesting period (in years) | 4 years | |||
Flex Pharma, Inc. 2014 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized | 2,070,200 | 1,451,087 | 116,754 | |
2015 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares remaining available for grant of stock awards | 771,983 |
Stock-based compensation - Summ
Stock-based compensation - Summary of stock option activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Shares | ||
Shares outstanding, Beginning Balance | 2,156,250 | |
Shares granted | 792,500 | |
Shares exercised | (1,226) | |
Shares canceled or forfeited | (279,337) | |
Shares outstanding, Ending Balance | 2,668,187 | 2,156,250 |
Shares exercisable | 1,226,720 | |
Shares vested or expected to vest | 2,668,187 | |
Weighted-Average Exercise Price | ||
Shares outstanding, weighted-average exercise price, Beginning Balance (in usd per share) | $ 8.66 | |
Shares granted, weighted-average exercise price (in usd per share) | 4.27 | |
Shares exercised, weighted-average exercise price (in usd per share) | 1.67 | |
Shares canceled or forfeited, weighted-average exercise price (in usd per share) | 9.81 | |
Shares outstanding, weighted-average exercise price, Ending Balance (in usd per share) | 7.24 | $ 8.66 |
Shares exercisable, weighted-average exercise price (in usd per share) | 7.67 | |
Shares vested or expected to vest, weighted-average exercise price (in usd per share) | $ 7.24 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted-average remaining contractual term (in years) | 7 years 11 months 19 days | 7 years 11 months 9 days |
Exercisable, weighted-average remaining contractual term (in years) | 6 years 10 months 24 days | |
Vested or expected to vest, weighted-average remaining contractual term (in years) | 7 years 11 months 19 days | |
Outstanding, aggregate intrinsic value | $ 939,484 | $ 1,605,684 |
Exercisable, aggregate intrinsic value | 654,967 | |
Vested or expected to vest, aggregate intrinsic value | $ 939,484 |
Stock-based compensation - Su37
Stock-based compensation - Summary of stock-based compensation expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Service Share-Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,073,346 | $ 1,988,321 | $ 2,262,098 | $ 3,506,482 |
Research and development | ||||
Employee Service Share-Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 391,602 | 684,695 | 786,019 | 1,280,161 |
Selling, general and administrative | ||||
Employee Service Share-Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 681,744 | $ 1,303,626 | $ 1,476,079 | $ 2,226,321 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Net loss per share (Details)
Net loss per share (Details) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,354,077 | 4,132,711 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,668,187 | 2,425,017 |
Unvested restricted common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 685,890 | 1,707,694 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 335,523 | $ 112,685 | $ 578,070 | $ 112,685 |
Interest income, net | 72,342 | 107,818 | 150,196 | 211,151 |
Loss from operations | 8,876,965 | 11,470,951 | 17,223,214 | 21,166,745 |
Operating Segments | Consumer Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 335,523 | 112,685 | 578,070 | 112,685 |
Interest income, net | 0 | 0 | 0 | 0 |
Loss from operations | 2,760,496 | 2,841,848 | 4,748,306 | 5,771,202 |
Operating Segments | Drug Development | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Interest income, net | 0 | 0 | 0 | 0 |
Loss from operations | 3,960,335 | 5,907,774 | 7,788,616 | 9,966,817 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Interest income, net | 72,342 | 107,818 | 150,196 | 211,151 |
Loss from operations | $ 2,156,134 | $ 2,721,329 | $ 4,686,292 | $ 5,428,726 |