Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Aug. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | NVET | |
Entity Registrant Name | Nexvet Biopharma plc | |
Entity Central Index Key | 1,618,561 | |
Current Fiscal Year End Date | --06-30 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,451,540 | |
Entity Public Float | $ 51,073,868 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets | ||
Cash | $ 52,033 | $ 30,041 |
Other income receivable | 3,301 | 2,404 |
Prepaid expenses and other | 607 | 643 |
Total current assets | 55,941 | 33,088 |
Prepaid expenses | 163 | |
Total noncurrent assets | 163 | |
Property, plant and equipment, net | 549 | 514 |
Intangible assets, net | 19 | 2 |
Total assets | 56,672 | 33,604 |
Current liabilities | ||
Accounts payable | 658 | 870 |
Accrued expenses | 2,352 | 2,299 |
Deferred lease incentive | 23 | 28 |
Total current liabilities | 3,033 | 3,197 |
Deferred lease incentive | 61 | 103 |
Warrants | 5,435 | |
Total noncurrent liabilities | 61 | 5,538 |
Total liabilities | $ 3,094 | $ 8,735 |
Commitments and contingencies (Note 14) | ||
Convertible preference shares | ||
Convertible preferred stock | $ 33,826 | |
Shareholders’ equity (deficit) | ||
Ordinary shares, $0.125 nominal value per share, 100,000,000 and 20,000,000 shares authorized as of June 30, 2015 and 2014, respectively—11,406,916 and 1,268,810 shares issued and outstanding as of June 30, 2015 and 2014, respectively | $ 1,426 | 126 |
Euro deferred shares, €100 nominal value per share, 400 and zero shares authorized as of June 30, 2015 and 2014, respectively—400 and zero shares issued and outstanding as of June 30, 2015 and 2014, respectively | 13 | |
Additional paid-in capital | 80,275 | 2,342 |
Accumulated other comprehensive (loss) income | (4,481) | 373 |
Accumulated deficit | (23,655) | (11,798) |
Total shareholders’ equity (deficit) | 53,578 | (8,957) |
Total liabilities, convertible preference shares and shareholders’ equity | $ 56,672 | 33,604 |
SIRPS Convertible Preference Shares | ||
Convertible preference shares | ||
Convertible preferred stock | 8,177 | |
Series B Convertible Preferred Stock | ||
Convertible preference shares | ||
Convertible preferred stock | $ 25,649 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Jun. 30, 2015$ / sharesshares | Jun. 30, 2015€ / sharesshares | Jun. 30, 2014$ / sharesshares | Jun. 30, 2014€ / sharesshares |
Convertible preference shares, shares outstanding | 5,937,138 | 5,937,138 | ||
Ordinary shares, nominal value per share | $ / shares | $ 0.125 | $ 0.125 | ||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | 20,000,000 | 20,000,000 |
Ordinary shares, shares issued | 11,406,916 | 11,406,916 | 1,268,810 | 1,268,810 |
Ordinary shares, shares outstanding | 11,406,916 | 11,406,916 | 1,268,810 | 1,268,810 |
Euro deferred shares, nominal value per share | € / shares | € 100 | € 100 | ||
Euro deferred shares, shares authorized | 400 | 400 | 0 | 0 |
Euro deferred shares, shares issued | 400 | 400 | 0 | 0 |
Euro deferred shares, shares outstanding | 400 | 400 | 0 | 0 |
SIRPS Convertible Preference Shares | ||||
Convertible preference shares, nominal value per share | $ / shares | $ 0.125 | $ 0.125 | ||
Convertible preference shares, shares authorized | 0 | 0 | 4,000,000 | 4,000,000 |
Convertible preference shares, shares issued | 0 | 0 | 1,737,132 | 1,737,132 |
Convertible preference shares, shares outstanding | 0 | 0 | 1,737,132 | 1,737,132 |
Series B Convertible Preferred Stock | ||||
Convertible preference shares, nominal value per share | $ / shares | $ 0.125 | $ 0.125 | ||
Convertible preference shares, shares authorized | 0 | 0 | 8,000,000 | 8,000,000 |
Convertible preference shares, shares issued | 0 | 0 | 4,200,006 | 4,200,006 |
Convertible preference shares, shares outstanding | 0 | 0 | 4,200,006 | 4,200,006 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenue | |||
License and collaboration | $ 244 | ||
Other | $ 25 | $ 13 | 85 |
Total revenue | 25 | 13 | 329 |
Operating Expenses | |||
Research and development | 9,845 | 5,617 | 2,722 |
General and administrative | 10,191 | 4,426 | 2,103 |
Total operating expenses | 20,036 | 10,043 | 4,825 |
Loss from operations | (20,011) | (10,030) | (4,496) |
Other Income (Expense) | |||
Research and development incentive income | 3,532 | 2,337 | 1,135 |
Government grant income | 403 | 1,317 | 108 |
Exchange gain (loss) | 4,151 | (375) | |
Interest income | 68 | 41 | 12 |
Net loss | $ (11,857) | $ (6,710) | $ (3,241) |
Net loss per share attributable to ordinary shareholders, basic and diluted | $ (2.27) | $ (6.70) | $ (3.62) |
Weighted-average ordinary shares outstanding, basic and diluted | 5,214,957 | 1,000,872 | 894,794 |
Comprehensive Loss | |||
Net loss | $ (11,857) | $ (6,710) | $ (3,241) |
Net change in foreign currency translation adjustments | (4,920) | 302 | 58 |
Total comprehensive loss | (16,711) | (6,408) | (3,183) |
Accumulated Other Comprehensive Income (Loss) | |||
Comprehensive Loss | |||
Net change in foreign currency translation adjustments | $ (4,854) | $ 302 | $ 58 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Convertible Preference Shares and Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Ordinary Shares Subject To Limited Resource Loans | Euro Deferred Shares | Convertible Preferred Stock | Additional Paid-in CapitalOther | Additional Paid-in CapitalShare Premium | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | SIRPS Convertible Preference Shares | SIRPS Convertible Preference SharesFirst Issuance of Convertible Preference Shares | SIRPS Convertible Preference SharesSecond Issuance of Convertible Preference Shares | Series B Convertible Preferred Stock | Convertible Preferred Stock |
Balance at Jun. 30, 2012 | $ (1,824) | $ 25 | $ (15) | $ 13 | $ (1,847) | |||||||||
Balance, shares at Jun. 30, 2012 | 200,000 | |||||||||||||
Subdivision of shares | $ 33 | (33) | ||||||||||||
Subdivision of shares, shares | 265,455 | |||||||||||||
Issuance of ordinary shares | 1,462 | $ 66 | 1,396 | |||||||||||
Issuance of ordinary shares, shares | 534,545 | |||||||||||||
Issuance of convertible preference shares, net of issuance costs | $ 2,093 | $ 1,504 | ||||||||||||
Issuance of convertible preference shares, shares | 498,199 | 293,918 | ||||||||||||
Issuance of ordinary shares—payment of limited recourse loan, shares | 264,386 | |||||||||||||
Share-based compensation expense | 631 | $ 631 | ||||||||||||
Exchange difference on translation of foreign operations | 58 | 58 | ||||||||||||
Net loss | (3,241) | (3,241) | ||||||||||||
Convertible Preference Shares, Ending balance at Jun. 30, 2013 | $ 3,597 | |||||||||||||
Balance at Jun. 30, 2013 | (2,914) | $ 124 | 631 | 1,348 | 71 | (5,088) | ||||||||
Convertible Preference Shares, Ending balance, shares at Jun. 30, 2013 | 792,117 | |||||||||||||
Balance, shares at Jun. 30, 2013 | 1,000,000 | 264,386 | ||||||||||||
Issuance of ordinary shares | 22 | $ 1 | 21 | |||||||||||
Issuance of ordinary shares, shares | 4,424 | |||||||||||||
Issuance of convertible preference shares, net of issuance costs | $ 4,580 | $ 25,649 | ||||||||||||
Issuance of convertible preference shares, shares | 945,015 | 4,200,006 | ||||||||||||
Issuance of ordinary shares—payment of limited recourse loan, amount | 37 | $ 1 | 36 | |||||||||||
Issuance of ordinary shares—payment of limited recourse loan, shares | 9,706 | (9,706) | ||||||||||||
Share-based compensation expense | 306 | 306 | ||||||||||||
Exchange difference on translation of foreign operations | 302 | 302 | ||||||||||||
Net loss | (6,710) | (6,710) | ||||||||||||
Convertible Preference Shares, Ending balance at Jun. 30, 2014 | 33,826 | $ 8,177 | $ 25,649 | $ 33,826 | ||||||||||
Balance at Jun. 30, 2014 | $ (8,957) | $ 126 | 937 | $ 1,405 | 373 | (11,798) | ||||||||
Convertible Preference Shares, Ending balance, shares at Jun. 30, 2014 | 5,937,138 | 1,737,132 | 4,200,006 | 5,937,138 | ||||||||||
Balance, shares at Jun. 30, 2014 | 1,014,130 | 254,680 | ||||||||||||
Issuance of ordinary shares and Euro deferred shares, amount | $ 13 | $ 13 | ||||||||||||
Issuance of ordinary shares and Euro deferred shares, shares | 2 | 400 | ||||||||||||
Issuance of ordinary shares | $ 522 | |||||||||||||
Issuance of ordinary shares, shares | 37,938 | 4,176,903 | 37,416 | 6 | ||||||||||
Issuance of ordinary shares—payment of limited recourse loan, amount | $ 14 | $ (14) | ||||||||||||
Issuance of ordinary shares—payment of limited recourse loan, shares | 109,611 | (109,611) | ||||||||||||
Share repurchase, shares | 145,069 | (145,069) | ||||||||||||
Issuance of share warrants | $ 5,435 | 5,435 | ||||||||||||
Issuance of ordinary shares—conversion of share-based compensation, amount | $ 16 | $ (645) | $ 642 | |||||||||||
Issuance of ordinary shares— conversion of share- based compensation, shares | 126,410 | |||||||||||||
Adjustment for shares issued in connection | 9 | |||||||||||||
Adjustment for convertible preference shares issued in connection with share consolidation | 16 | |||||||||||||
Share bonus award | $ 6 | |||||||||||||
Share bonus award, shares | 6 | 42,691 | (304) | 304 | ||||||||||
Reclassification into shareholders’ equity | $ 33,826 | $ 33,826 | $ (33,826) | |||||||||||
Reclassification into shareholders’ equity, shares | 5,937,160 | (5,937,138) | ||||||||||||
Reclassification to ordinary shares | $ 742 | $ (33,826) | $ 33,084 | |||||||||||
Reclassification to ordinary shares, shares | 5,937,160 | (5,937,160) | ||||||||||||
Share-based compensation expense | 2,081 | $ 2,081 | ||||||||||||
Exchange difference on translation of foreign operations | (4,920) | (4) | (62) | (4,854) | ||||||||||
Net loss | (11,857) | (11,857) | ||||||||||||
Balance at Jun. 30, 2015 | $ 53,578 | $ 1,426 | $ 13 | 2,065 | 78,210 | (4,481) | (23,655) | |||||||
Convertible Preference Shares, Ending balance, shares at Jun. 30, 2015 | 0 | 0 | ||||||||||||
Balance, shares at Jun. 30, 2015 | 11,406,916 | 400 | 5,937,138 | |||||||||||
Convertible Preference Shares, Beginning balance, shares at Mar. 31, 2015 | 5,937,160 | |||||||||||||
Net loss | $ (4,479) | |||||||||||||
Balance at Jun. 30, 2015 | $ 53,578 | $ 1,426 | $ 13 | $ 2,065 | $ 78,210 | $ (4,481) | $ (23,655) | |||||||
Convertible Preference Shares, Ending balance, shares at Jun. 30, 2015 | 0 | 0 | ||||||||||||
Balance, shares at Jun. 30, 2015 | 11,406,916 | 400 | 5,937,138 |
Consolidated Statements of Cha6
Consolidated Statements of Changes in Convertible Preference Shares and Shareholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Common Stock | |||
Issuance costs | $ 3,830 | ||
SIRPS Convertible Preference Shares | |||
Issuance costs | $ 294 | $ 0 | |
Series B Convertible Preferred Stock | |||
Issuance costs | $ 1,021 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows from Operating Activities | |||
Net loss | $ (11,857) | $ (6,710) | $ (3,241) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Share-based compensation expense | 2,081 | 298 | 710 |
Depreciation and amortization expense | 154 | 56 | 11 |
Other | 22 | ||
Changes in assets and liabilities: | |||
Other income receivable | (897) | (1,338) | (679) |
Prepaid expenses and other | (127) | (250) | (377) |
Accounts payable, accrued expenses and deferred lease incentive | (206) | 1,978 | 614 |
Net cash used in operating activities | (10,852) | (5,944) | (2,962) |
Cash Flows from Investing Activities | |||
Purchase of property, plant and equipment | (294) | (512) | (54) |
Purchase of intangible assets | (19) | (2) | |
Net cash used in investing activities | (313) | (514) | (54) |
Cash Flows from Financing Activities | |||
Net proceeds from issuance of ordinary shares | 37,970 | 37 | |
Net proceeds from issuance of convertible preference shares and warrants | 35,664 | 3,597 | |
Repayments of note payable to related party | (205) | ||
Net cash provided by financing activities | 37,970 | 35,701 | 3,392 |
Effect of exchange rate changes on cash | (4,813) | 315 | 88 |
Net increase in cash | 21,992 | 29,558 | 464 |
Cash at beginning of year | 30,041 | 483 | 19 |
Cash at end of year | 52,033 | 30,041 | 483 |
Supplemental Disclosure | |||
Cash paid for interest during period | 27 | ||
Conversion of note payable into ordinary shares | $ 1,368 | ||
Offering costs in connection with issuance of ordinary shares, convertible preference shares and warrants recorded in equity | $ 3,830 | 1,315 | |
Issuance of share options for accrued consulting services | $ 22 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | Note 1. Organization and Description of Business Nexvet Biopharma public limited company and its subsidiaries (the “Company”) is a clinical-stage biopharmaceutical company focused on transforming the therapeutic market for companion animals by developing and commercializing novel, species-specific biologics based on human biologics. Biologics are therapeutic proteins derived from biological sources. As a class, biologics have transformed human medicine in recent decades and represent some of the top-selling therapies on the market today. The Company’s proprietary platform, which it refers to as “PETization,” is an algorithmic approach that enables the Company to rapidly create monoclonal antibodies (“mAbs”) that are designed to be recognized as “self” or “native” by an animal’s immune system, a property referred to as “100% species-specificity.” PETization is also designed to build upon the safety and efficacy data from clinically tested human therapies to create new therapies for companion animals, thereby reducing clinical risk and development cost. Biologics generally include mAbs, which are targeted antibodies derived from identical, or clonal, cells; and fusion proteins, which are proteins created by joining two or more genes coded for separate proteins. The Company’s first product candidate, NV‑01, is a mAb that targets and inhibits the function of nerve growth factor (“NGF’) for the control of pain associated with osteoarthritis in dogs. NGF is a protein involved in neural signaling, including pain signals. NGF inhibitors seek to interrupt those signals to reduce pain. The Company expects data from its NV‑01 pivotal safety and efficacy study and an additional pilot field safety and efficacy study by the end of 2015. This latter study was initiated following receipt of a sample size reassessment of the pivotal safety and efficacy study in March 2015 and will assess various doses and dosing regimens of NV‑01. This study is expected to provide valuable information that may assist the design of a future pivotal study. The Company’s second product candidate, NV‑02, is a mAb that is an NGF inhibitor for the control of pain associated with degenerative joint disease, including osteoarthritis, in cats. The Company announced positive top-line results from its proof-of-concept efficacy study and its pilot safety study of NV‑02 in June 2015. The Company anticipates results from a pilot field safety and efficacy study of NV‑02 in the first quarter of 2016. The Company’s third product candidate, NV‑08, is a fusion protein that is a tumor necrosis factor (“TNF”) inhibitor for the treatment of chronic inflammatory diseases, including atopic dermatitis, in dogs. TNF is a protein that causes inflammation, and TNF inhibitors suppress this inflammation. If its proof-of-concept safety and efficacy studies for NV‑08 are successful, the Company plans to progress this product into formal development. In addition, primarily using PETization, the Company is seeking to advance one new product candidate into development per year. The Company has experienced losses since its inception and had an accumulated deficit of $23.7 million and $11.8 million as of June 30, 2015 and 2014, respectively. For the foreseeable future, management expects the Company to continue to incur losses and negative cash flows, which will increase significantly from historical levels as the Company expands its development activities, seeks regulatory approvals for its lead product candidates and begins to commercialize any approved products. To date, the Company has been funded primarily through sales of capital shares. Management believes the Company’s cash of $52.0 million as of June 30, 2015 will be sufficient to fund its operations for at least the next 12 months. The Company will require additional capital until such time as the Company can generate revenue in excess of operating expenses. The Company may seek such funding through public or private equity, debt financing or other sources, such as corporate collaborations and licensing arrangements. The Company may not be able to obtain financing on acceptable terms, or at all. The sale of additional equity would result in additional dilution to the Company’s shareholders, and the terms of any financing may adversely affect the rights of the Company’s shareholders. The incurrence of any debt financing could result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict the Company’s operations. If the Company is unable to obtain funding, the Company could be forced to delay, reduce or eliminate its research and development programs or commercialization efforts, which could adversely affect its business prospects. In August 2014, the Company completed a one-for-four share consolidation. Each holder of ordinary shares and preference shares received one ordinary share or preference share for every four ordinary shares or preference shares held by such holder. The number of ordinary shares that may be acquired upon exercise of options or warrants or upon conversion of restricted share units was similarly reduced on a one-for-four basis, with a proportionate adjustment to the exercise or conversion price, as applicable. In September 2014, Nexvet Biopharma Limited, a newly-formed Irish private company, became the parent company of Nexvet Australia Pty Ltd, formerly known as Nexvet Biopharma Pty Ltd (“Nexvet Australia”), and its subsidiaries pursuant to a transaction in which all of the holders of ordinary shares, preference shares, restricted share units and options and warrants to purchase ordinary shares of Nexvet Australia exchanged their holdings for equivalent ordinary shares, preference shares, restricted share units or options or warrants to purchase ordinary shares, as applicable, of Nexvet Biopharma Limited. Nexvet Biopharma Limited then re-registered as an Irish public limited company in September 2014 (the “Irish Reorganization”). Nexvet Biopharma public limited company became the parent company of Nexvet Australia pursuant to the Irish Reorganization, and for financial reporting purposes the historical consolidated financial statements of Nexvet Australia became the historical consolidated financial statements of Nexvet Biopharma public limited company and its subsidiaries as a continuation of the predecessor. The capital structure presented is that of Nexvet Biopharma public limited company. In November 2014, the Company completed a four-for-five share consolidation. Each holder of ordinary shares and preference shares received four ordinary shares or four preference shares for every five ordinary shares or five preference shares held by such holder. The number of ordinary shares that may be acquired upon exercise of options or warrants or upon conversion of restricted share units was similarly reduced on a four-for-five basis, with a proportionate adjustment to the exercise or conversion price, as applicable. In February 2015, the Company closed its initial public offering of 4.0 million ordinary shares at a price to the public of $10.00 per share. In March 2015, the underwriters partially exercised their over-allotment option and purchased an additional 0.2 million shares. Following the sales of these securities, the Company received aggregate gross proceeds of $41.8 million and aggregate net proceeds of $38.0 million, after deducting the underwriting discount of $2.9 million and estimated offering expenses of $0.9 million payable by the Company. Upon the initial closing, an amended Memorandum and Articles of Association (the “New M&A”) became effective for the Company and all 5,937,160 convertible preference shares then outstanding were converted into 5,937,160 ordinary shares. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements of the Company include the operations of all its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Such operations include the Company, Nexvet Australia, NVIP Pty Limited, Nexvet Ireland Limited, Tevxen Limited, Nexvet UK Limited and Nexvet US, Inc. All intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on June 30, and references to any fiscal year are to the Company’s year ended June 30 in that year. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include research and development incentive income, research and development accruals, share-based payments, valuation of warrants, options and restricted share units and deferred income taxes. Actual results could differ from those estimates. Net Loss Per Share Net loss per share information is determined using the two-class method, which includes the weighted-average number of ordinary shares outstanding during the period and other securities that participate in dividends (a participating security). The Company’s convertible preference shares are participating securities as defined by Accounting Standards Codification (“ASC”) Topic 260-10, Earnings Per Share. Net loss per share disclosures have been revised to give effect to the share consolidations that took place in the reporting period Under the two-class method, basic net loss per share applicable to ordinary shareholders is computed by dividing the net loss applicable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the reporting period. Diluted net loss per share gives effect to all potentially dilutive securities, including convertible preference shares and shares issuable upon the exercise or conversion, as applicable, of outstanding warrants, share options and restricted share units, using the treasury shares method. The Company has excluded the effects of all potentially dilutive shares, which include convertible preference shares, warrants to purchase ordinary shares, ordinary share options, restricted share units and the ordinary shares issued subject to limited recourse loans, from the weighted-average number of ordinary shares outstanding as their inclusion in the computation for all periods would be anti-dilutive due to net losses. Cash As of June 30, 2015 and 2014, the Company’s cash consisted of cash deposited in a business operating account or in short-term deposit accounts of less than 90 days’ duration. Concentration of Credit Risk and Other Risks and Uncertainties The Company receives research and development incentive income and grants from a single source, the Australian government. The Company’s cash is deposited with several large commercial banks located in the United States and Australia that are federally insured or guaranteed, limiting the amount of credit exposure to any one financial institution. The Company’s cash balances with these financial institutions often exceed the amount insured. The Company is subject to risks common to companies in the biotechnology industry. The Company’s research and development may not be successfully completed, adequate protection for the Company’s technology may not be obtained, any products developed may not obtain necessary government regulatory approval and any approved products may not be commercially viable. The Company operates in an environment of substantial competition from other animal health companies, some of which have substantially more resources at their disposal. In addition, the Company is dependent upon the services of its employees and consultants, as well as third-party contract research organizations and manufacturers. Fair Value Measurements The Company records certain assets and liabilities at fair value in accordance with the provisions of ASC Topic 820, Fair Value Measurements. As defined in the guidance, fair value, defined as an exit price, represents the amount that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering these assumptions, the guidance defines a three-tier value hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value. · Level 1—Unadjusted quoted prices in active, accessible markets for identical assets or liabilities. · Level 2—Other inputs that are directly or indirectly observable in the marketplace. · Level 3—Unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s material financial instruments include cash, other income receivables, accrued liabilities and warrants. The carrying amounts of these instruments are considered to be representative of their respective fair values because of the short-term nature of those investments. In 2014, the Company determined its warrants were Level 3 liabilities until they were reclassified into equity (see –“Warrants” below). Other Income Receivable Other income receivable is recorded at the invoiced amount where available. Nexvet Australia is eligible under the AusIndustry research and tax development tax incentive program to obtain a cash amount from the Australian Taxation Office (“ATO”). The tax incentive is available to Nexvet Australia on the basis of specific criteria with which Nexvet Australia must comply. Specifically, Nexvet Australia must have revenue of less than A$20 million and cannot be controlled by income tax exempt entities. The Company recognized other income for the 2015 fiscal year at 43.5% of qualifying expenditure on the basis of the proposed revisions to the rebate rate announced by the Australian government in 2015 that, if passed as law, are expected to be retrospectively applied to the 2015 fiscal year. Property, Plant and Equipment Property, plant and equipment are recorded at acquisition cost, net of accumulated depreciation and impairment. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful life of machinery and equipment is three to 20 years. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Upon retirement or sale of an asset, its cost and related accumulated depreciation or accumulated amortization are removed from the property accounts and any gain or loss is included in the results of operations. Maintenance and repairs are expensed as incurred. Intangible Assets The Company accounts for intangible assets under ASC 350, Intangibles—Goodwill and Other, which consists of internal use computer software costs. Costs which include acquiring off the shelf software and licenses that are expected to provide future period financial benefits are capitalized to computer software intangibles. No material internal or external costs are incurred in making the software ready for use. Maintenance costs are expensed as incurred. Amortization is calculated on a straight-line basis over periods ranging from one to three years. Impairment of Long-Lived Assets The Company reviews its tangible and intangible assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the asset may not be fully recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to the estimated undiscounted cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge will be recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no impairments of long-lived assets during fiscal years 2015, 2014 or 2013. Foreign Currency The Company’s functional currency is U.S dollars, and the functional currency for most subsidiaries is their local currency. Foreign currency transactions are translated into the functional currency using the current exchange rate at the date of the transaction. At year end, monetary items denominated in a foreign currency are translated into the functional currency of the relevant entity using the year end spot rate. The exchange gain of $4.2 million in fiscal year 2015 and exchange loss of $0.4 million in fiscal year 2014 primarily relate to the translation of Nexvet Australia’s U.S. dollar-denominated bank accounts to its Australian dollar functional currency. In preparing the Company’s consolidated financial statements, the financial statements of the subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average rates as to revenue and expenses. The resulting translation adjustments are recognized in other comprehensive income (loss) (“OCI”). The non-cash translation adjustment in accumulated OCI was a loss of $4.9 million in fiscal year 2015 and a gain of $0.3 million in fiscal year 2014. These adjustments primarily relate to the translation of U.S. dollar-denominated bank accounts within Nexvet Australia’s balance sheet to the U.S dollar presentation currency of the consolidated balance sheet. Under U.S. GAAP, there is no offset of these two exchange-related items within the consolidated statements of operations and comprehensive loss. Net loss and associated calculations are impacted by this treatment. Warrants As of June 30, 2014, the Company’s liabilities primarily consist of warrants that were issued to investors and financial advisors in connection with private placements of the Company’s securities in May 2014. The warrants permit the holders to purchase ordinary shares at exercise prices of $8.625 and $7.50 per share on or before May 2019. Because the warrants may be net exercised and are exercisable in U.S. dollars, and the functional currency of Nexvet Australia, the original issuer of the warrants, is Australian dollars, they were classified as a liability as of June 30, 2014. The warrants were reclassified as shareholders’ equity in September 2014 following the Irish Reorganization (in which the original warrants were exchanged for warrants issued by the Company) and the change in the Company’s functional currency to U.S. dollars. On reclassification, the warrants were recognized at cost in shareholders’ equity and no longer required to be remearsured at fair value at June 30, 2015. Warrants recorded as liabilities ($5.4 million as of June 30, 2014) are valued at balance date using the binomial option-pricing model. The expected term used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioral considerations. At each balance sheet date, the outstanding warrants are revalued to their current fair value, with the difference in fair value recorded in the consolidated statements of operations and comprehensive loss. Warrants are classified within Level 3 of the fair value hierarchy at June 30, 2014 wherein fair value is estimated using significant unobservable inputs. The significant assumptions used in estimating the fair value of the warrants include the estimated fair value of the underlying shares, exercise price, volatility of the shares underlying the warrant and the expected term of the warrant. The fair value of the underlying ordinary shares was estimated by reference to the price per share paid by investors for the Company’s Series B preference shares in May 2014. The fair values of the warrants were estimated using the following assumptions: June 30, 2014 Fair value per ordinary share $6.35 Risk free interest rate 1.7% Expected term (in years) 4 years Expected volatility 75% Expected dividend yield Nil There were warrants to purchase 1,766,998 ordinary shares issued during fiscal year 2014. There were no warrants issued during fiscal years 2015 and 2013. Income Taxes The Company has historically filed income tax returns in Australia and the United States and in the future also expects to file tax returns in Ireland. The Company applies ASC Topic 740, Income Taxes, which establishes financial accounting and reporting requirements for the effects of income taxes that result from the Company’s activities during the current and preceding years. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities on their respective tax bases, and operating losses and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted statutory tax rates expected to apply to taxable income in the jurisdictions and years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. When the Company determines that it is more likely than not that some portion or all of the deferred tax assets will not be realized in the future, the deferred tax assets are reduced by a valuation allowance. The valuation allowance is sufficient to reduce the deferred tax assets to the amount that the Company determines is more likely than not to be realized. The income tax benefit from an uncertain tax position is only recognized if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on technical merits of the position. The Company evaluates and adjusts these accruals based on changing facts and circumstances. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax provision. License and Collaboration Agreement Revenue Recognition Future revenue under a license and collaboration agreement is expected to consist of fees for services, royalties for product sales or payments when specific milestones are met and match underlying activities occurring during the term of the arrangement. In fiscal year 2013, the Company entered into a license and collaboration agreement with a third party for the research and development of animal health products in Japan. The terms of the agreement include non-refundable signing and license fees, development milestone payments, the potential for manufacturing and supply services and royalties on any product sales derived from the collaboration. The Company analyzed this arrangement to determine whether the deliverables, which included license and performance obligations such as research and steering committee services, can be separated or whether these must be accounted for as a single unit of accounting. The Company recognizes license payments as revenue upon delivery of the license only if the license has stand-alone value and there are no undelivered performance obligations related to the license. If the license is considered not to have stand-alone value, the arrangement would then be accounted for as a single unit of accounting and the license payments and payments for performance obligations would be recognized as revenue over the estimated period of when the performance obligations are performed. When the Company determines that an arrangement should be accounted for as a single unit of accounting, it determines the period over which the performance obligations will be performed and revenue will be recognized. Revenue will be recognized using either a proportional performance or straight-line method. The Company recognizes revenue using the proportional performance method when the level of effort required to complete its performance obligations under an arrangement can be reasonably estimated, and such performance obligations are provided on a best-efforts basis. Direct labor hours or full-time equivalents are typically used as the measurement of performance. If the Company cannot reasonably estimate the level of effort to complete its performance obligations under an arrangement, then revenue under the arrangement would be recognized on a straight-line basis over the period the Company is expected to complete its performance obligations. The Company’s license and collaboration agreement entitles it to additional payments upon the achievement of performance-based milestones. Milestones that involve substantial effort on the Company’s part are considered “substantive milestones.” A substantive milestone is included in the Company’s revenue model when the milestone is achieved. To date, no milestone payments have been received. Royalty revenue is recognized upon the sale of the related products, provided the Company has no remaining performance obligations under the arrangement. Research and Development Expense Research and development costs are expensed as incurred and consist primarily of (i) payroll and related expense for all employees engaged in scientific research and development functions, including wages, related benefits, and share-based compensation, (ii) fees for regulatory, professional and other consultants and (iii) development costs, including costs of drug discovery, safety, and proof-of-concept, pilot and pivotal safety and efficacy studies, development of biological materials, and service providers. The Company is currently pursuing its NV‑01, NV‑02 and NV‑08 lead product candidates and typically uses its employee and infrastructure resources across multiple development programs. The Company allocates outsourced development costs by lead product candidates but does not allocate personnel or other internal costs related to development to specific product candidates. General and Administrative Expense General and administrative expense consists primarily of non-research and development-related payroll and related expense for employees, consultants and directors, including wages, related benefits and share-based compensation. General and administrative expense also includes professional and consulting fees for legal, accounting, tax services and other general business services, as well other expenses such as travel, rent and facilities costs. Other Income (Expense) Nexvet Australia is eligible under the AusIndustry research and development tax incentive program to obtain a cash amount from the ATO. The tax incentive is available to Nexvet Australia on the basis of specific criteria with which Nexvet Australia must comply. Although the tax incentive is administered through the ATO, the Company has accounted for the tax incentive outside the scope of ASC Topic 740, Income Taxes, as an income tax benefit since Nexvet Australia meets the applicable requirements to participate in the program and the incentive is not linked to Nexvet Australia’s income tax liability and can be realized regardless of whether Nexvet Australia has generated taxable income. Research and development incentive income is recognized when the research and development activities have been undertaken and the Company has completed its assessment of whether such activities meet the relevant qualifying criteria. The Company recognizes government grant income at the fair value of the grant when it is received and all substantive conditions have been satisfied. When the grant relates to an expense item, it is recognized as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Exchange gain (loss) consists primarily of gains or losses due to foreign exchange translation, primarily reflecting changes in Australian and U.S. foreign exchange rates. Under U.S. GAAP, these gains (losses) relate to a translation of U.S. dollar-denominated bank accounts into Nexvet Australia’s Australian dollar functional currency and represent a non-cash item. The Company earns interest on the cash balances held with financial institutions and recognizes interest when earned on an accruals basis over time. Comprehensive Loss Comprehensive loss is defined as the total change in shareholders’ deficit during the period other than from transactions with shareholders, which for the Company, includes net change in foreign currency translation adjustments. Share-Based Compensation The Company’s share-based compensation plan (see Note 12) provides for the grant of share options, restricted share units and other share-based awards. The fair value of share options is determined as of the date of grant using the binomial option-pricing model. This method incorporates the fair value of the Company’s ordinary shares at the date of each grant and various assumptions such as the risk-free interest rate, expected volatility based on the historic volatility of peer companies, expected dividend yield, and expected term of the share option. Restricted share units are valued at the fair value of the underlying ordinary shares as of the date of grant. The Company classifies share-based compensation expense in the statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified. The Company recognizes share-based compensation expense based on the grant date fair value of the entire award over the total period during which an employee is required to provide service in exchange for the award. In accordance with ASC 718, the amount of compensation expense recognized at each balance date is at least equal to the grant date fair value of the vested portion of the award on that date. Where performance conditions are attached to the awards, compensation expense is recognized in the period in which it becomes probable that the performance target will be achieved, net of estimate of pre-vesting forfeitures over the requisite service period. The probability of vesting is reassessed at each reporting period for awards with performance conditions and compensation expense is adjusted based on its probability assessment. Share-based compensation expense is classified in the statements of operation and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified. Equity instruments issued to non-employees, including consultants, are accounted for in accordance with Financial Accounting Standards Board (“FASB”) guidance. All transactions in which services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of the date on which the counterparty’s performance is complete or the date on which it is probable that performance will occur. For transactions where the fair value of the equity instrument issued to non-employees is the more reliable measurement and a measurement date has not been reached, the fair value is re-measured at each balance sheet date using the binomial option-pricing model. Compensation expense for these share-based awards is recognized over the term of the consulting agreement or until the award is approved and settled. Segment Data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company is a clinical-stage biopharmaceutical company focusing on developing therapies for companion animals. At June 30, 2014 all major assets were held in Australia. As of June 30, 2015, $38.0 million of cash raised on completion of the initial public offering has been retained in the United States. All other major assets are held in Australia. Recently Adopted Accounting Pronouncements The Company has early adopted the provisions of Accounting Standards Update (“ASU”) No. 2014-10, Elimination of Certain Financial Requirements, Including an Amendment to Variable Interest Entities Guidance Topic in Topic 810, Consolidation, starting in fiscal year 2014. In June 2014, the Financial Accounting Standards Board (“FASB”) issued guidance removing the definition of a development stage entity from the Master Glossary of the ASC, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. This guidance also eliminates an exception provided to development stage entities in ASC Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of the investment equity that is at risk. On adoption, the Company was not required to present or disclose any information required by ASC Topic 915, Development Stage Entities. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about: · Contracts with customers—including revenue and impairments recognized, disaggregation of revenue and information about contract balances and performance obligations (including the transaction price allocated to the remaining performance obligations). · Significant judgments and changes in judgments—determining the timing of satisfaction of performance obligations (over time or at a point in time), and determining the transaction price and amounts allocated to performance obligations. · Certain assets—assets recognized from the costs to obtain or fulfill a contract. In July 2015, the FASB delayed the effective date of this guidance. As a result, this guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact that this guidance will have on the Company’s consolidated results of operations, financial position and cash flows. In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation. This guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply the existing guidance in ASC Topic 718, Compensation—Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation expense should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation expense attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation expense should be recognized prospectively over the remaining requisite service period. The total amount of compensation expense recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This guidance will be effective for annual reporting periods beginning after December 15, 2015. The Company is currently evaluating the impact that this guidance will have on the Company’s consolidated results of operations, financial position and cash flows. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). This guidance defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under the guidance, management is required to evaluate, for each annual and interim reporting period, whether it is probable that the entity will not be able to meet its obligations as they become due within one year after the date that the financial statements are issued or are available to be issued. When management identifies substantial doubt about the entity’s ability to continue as a going concern, additional disclosures are required. This guidance will be effective for annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. In February 2015, the FASB issued ASU 2015-02, Consolidation. This guidance amends existing consolidation guidance in which a reporting entity might be required to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. The guidance: · modifies the evaluations of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities; · eliminates the presumption that a general partner should consolidate a limited partner; · affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships; and · provides a scope exception from consolidation guidance for reporting entities with interests in certain investment funds. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest. This guidance simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The guidance will be effective for annual reporting periods beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 3. Property, Plant and Equipment Property, plant and equipment, net consisted of the following as of the dates indicated: Useful Lives June 30, 2015 2014 (in years) (in thousands) Computer equipment 3-7 $ 89 $ 68 Research and development equipment 5-10 432 242 Office equipment 5-20 83 100 Leasehold improvements 5 133 162 Less: Accumulated depreciation and amortization (188 ) (58 ) Property, plant and equipment, net $ 549 $ 514 Computer equipment Research and development equipment Office equipment Leasehold improvements Total Opening balance July 1, 2013 3 37 7 — 47 Additions 65 193 94 160 512 Disposals — — — — — Depreciation (11 ) (31 ) (5 ) (9 ) (56 ) Exchange rate adjustment — 15 (4 ) — 11 Closing balance June 30, 2014 57 214 92 151 514 Additions 35 258 1 — 294 Disposals — — — — — Depreciation (25 ) (86 ) (12 ) (29 ) (152 ) Exchange rate adjustment (11 ) (52 ) (19 ) (25 ) (107 ) Closing balance June 30, 2015 56 334 62 97 549 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4. Intangible Assets Intangible assets, net consisted of the following as of the dates indicated: Useful Lives June 30, 2015 2014 (in years) (in thousands) Computer software 1-3 $ 21 $ 2 Less: Accumulated amortization (2 ) — Intangible assets, net $ 19 $ 2 Intangible assets will be fully amortized over their useful lives. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 30, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 5. Accrued Expenses Accrued expenses consisted of the following as of the dates indicated: June 30, 2015 2014 (in thousands) Accrued payroll and related expenses $ 1,027 $ 502 Accrued professional fees 361 355 Accrued research and development costs 964 1,442 Accrued expenses $ 2,352 $ 2,299 |
Deferred Lease Incentive
Deferred Lease Incentive | 12 Months Ended |
Jun. 30, 2015 | |
Deferred Lease [Abstract] | |
Deferred Lease Incentive | Note 6. Deferred Lease Incentive Deferred lease incentive consisted of the following as of the dates indicated: June 30, 2015 2014 (in thousands) Current $ 23 $ 28 Non-Current $ 61 $ 103 In June 2014, a build-out incentive was negotiated with the landlord to reimburse the Company for the build-out of the Company’s Melbourne, Australia office space. The Company expects to offset such amounts within rental expense over the lease term. |
Warrants
Warrants | 12 Months Ended |
Jun. 30, 2015 | |
Warrants And Rights Note Disclosure [Abstract] | |
Warrants | Note 7. Warrants June 30, June 30, 2015 2014 (in thousands) Warrants $ — $ 5,435 In May 2014, the Company issued warrants to purchase 1,574,998 ordinary shares to purchasers of its Series B preference shares with an exercise price of $8.625 per share. In addition, the Company issued warrants to purchase 192,000 ordinary shares to financial advisors with an exercise price of $7.50 per share. All warrants have a five year contractual life, are exercisable in U.S. dollars and were revalued to fair value at June 30, 2014 using the appropriate exchange rate. The warrants were reclassified to shareholders’ equity in September 2014 following the Irish Reorganization and the change in the Company’s functional currency to U.S. dollars. |
Convertible Preference Shares
Convertible Preference Shares | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Convertible Preference Shares | Note 8. Convertible Preference Shares Prior to February 2015, the Company had issued Series A investment preference shares (“SIRPS Preference Shares”) and Series B convertible preference shares (“Series B Preference Shares”) (collectively, the “Preference Shares”). The Company’s Memorandum and Articles of Association as of June 30, 2014 authorized 12,000,000 Preference Shares with a nominal value of $0.125 per Preference Share. Preference Shares consisted of the following as of June 30, 2014: June 30, 2014 Preference Shares Issued and Outstanding Liquidation Preference Carrying Value (in thousands) SIRPS Preference Shares 1,737,132 $ 16,353 $ 8,177 Series B Preference Shares 4,200,006 51,298 25,649 5,937,138 $ 67,651 $ 33,826 Prior to August 2014, upon certain insolvency and other events, the holders of the Preference Shares could require their redemption. Therefore, the Preference Shares were classified outside of shareholders’ equity (deficit) in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities as of June 30, 2014. In August 2014, these redemption features were eliminated, and, in November 2014, 16 additional convertible preference shares were issued in connection with the second share consolidation. Following changes to the redemption features of the Preference Shares in August 2014, the Preference Shares were reclassified into shareholders’ equity (deficit). In February 2015, on completion of the Company’s initial public offering, each preference share automatically converted into one ordinary share. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Ordinary Shares | Note 9. Ordinary Shares In February 2015, upon the initial closing of the Company’s initial public offering, the New Memorandum and Articles (“M&A”) became effective for the Company. The New M&A amended the Company’s authorized capital to 400 Euro deferred shares with a nominal value of €100 each, 100,000,000 ordinary shares with a nominal value of US$0.125 each and 10,000,000 undesignated preferred shares with a nominal value of US$0.01 each. As of June 30, 2014, the Company’s authorized capital was 20,000,000 ordinary shares and 12,000,000 Preference Shares, each with a $0.125 nominal value per share. As of June 30, 2015 and 2014, there were 11,406,916, and 1,268,810 ordinary shares outstanding, respectively, which included zero and 254,680 ordinary shares subject to limited recourse loans, respectively. In the Company’s initial public offering, an aggregate of 4,176,903 ordinary shares were issued. Upon the initial closing of the Company’s initial public offering, all 5,937,160 Preference Shares then outstanding were converted into 5,937,160 ordinary shares. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 10. Fair Value Measurement Assets and liabilities carried at fair value on a recurring basis as of June 30, 2015 and 2014, including financial instruments which the Company accounts for under the fair value option, are summarized in the following tables. June 30, 2015 Level 1 Level 2 Level 3 Assets/ Liabilities at Fair Value (in thousands) Assets Cash $ 52,033 $ — $ — $ 52,033 June 30, 2014 Level 1 Level 2 Level 3 Assets/ Liabilities at Fair Value Assets Cash $ 30,041 $ — $ — $ 30,041 Liabilities Warrants $ — $ — $ 5,435 $ 5,435 During fiscal years 2015 and 2014, there were no transfers between the levels. The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), including net realized and unrealized gains (losses) included in earnings and accumulated OCI. Warrants (in thousands) Balance as of June 30, 2013 — Issuances 5,435 Balance as of June 30, 2014 5,435 Reclassification into shareholders’ equity (5,435 ) Balance June 30, 2015 $ — The following table present information about significant unobservable inputs related to the Company’s material categories of Level 3 assets and liabilities as of June 30, 2014. Financial Instruments Fair Valuation Significant Input Range (in Warrants $ 5,435 Binomial option-pricing model Volatility 70-80% Expected term 4 years The warrants were reclassified as shareholders’ equity in September 2014 following the Irish Reorganization and the change in the Company’s functional currency to U.S. dollars. Sensitivity of Fair Value Measures to Changes in Unobservable Inputs The volatility assumption is representative of the level of uncertainty expected in the movements of the Company’s share price over the expected term of the warrant. A significant increase in volatility would increase the fair value of the warrants while a significant decrease in volatility would decrease the fair value of the warrants. The highest value of a warrant instrument is attained if it is assumed to be held to expiry. Due to risk aversion, wealth diversification and the lack of marketability, warrant holders occasionally exercise prior to expiry. Based on the market value approach adopted for the valuation of the warrants, it is assumed that the warrants will be held on average for four years. An increase in the expected term of the warrants by one year would increase the fair value of the warrants by $0.5 million, or 10%, while similarly a decrease by one year would decrease the fair value of the warrants by $0.7 million, or 12%. |
Net Loss Per Share and Pro Form
Net Loss Per Share and Pro Forma Net Loss Per Share | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share and Pro Forma Net Loss Per Share | Note 11. Net Loss Per Share and Pro Forma Net Loss Per Share The calculation of net loss per participating securities (“EPS”) for fiscal years 2015 and 2014 is presented below. Year Ended June 30, 2015 2014 2013 (in thousands, except share and per share amounts) Net loss $ (11,857 ) $ (6,710 ) $ (3,241 ) Weighted-average ordinary shares issued and outstanding—basic and diluted 5,214,957 1,000,872 894,794 Net loss per ordinary share—basic and diluted $ (2.27 ) $ (6.70 ) $ (3.62 ) The following ordinary share equivalents were excluded from the calculation of diluted net loss per share for the periods ended on the dates indicated because including them would have an anti-dilutive effect: Year Ended June 30, 2015 2014 2013 Preference shares — 5,937,138 792,117 Share-based awards 834,303 245,020 — Warrants 1,766,998 1,766,998 — Shares subject to limited recourse loans (see Note 12) — 254,680 264,386 Total 2,601,301 8,203,836 1,056,503 Basic and diluted net loss per share is computed using the weighted-average number of ordinary shares outstanding after giving effect to the conversion of all convertible preference shares into ordinary shares as if such conversion had occurred at the beginning of the period presented, or the date of original issuance, if later. |
Share Based Awards
Share Based Awards | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Awards | Note 12. Share-Based Awards As permitted by Australian law, the Company’s board of directors has historically granted share options and restricted share units with an exercise or conversion price, as applicable, of zero to recipients in Australia. Contemporaneously with these awards and based upon information available at the time of grant, the Company’s board of directors, with the assistance of management, also determined the fair value of the shares underlying these share options for financial reporting purposes. To determine the best estimate of the fair value of the Company’s ordinary shares at each grant date, the Company’s board of directors considered numerous factors, including contemporaneous third-party valuations, current business conditions and projections, risks inherent to the development of the Company’s research and development programs, including the status of pivotal safety and efficacy studies for its lead product candidates, the Company’s financial condition, the Company’s need for future financing to fund its research and development efforts and the commercialization of its lead product candidates, and other relevant factors. 2012 Employee Share Option Plan In August 2012, the Company’s board of directors adopted the Company’s Employee Share Option Plan (the “2012 Plan”). Pursuant to the 2012 Plan, the Company issued 264,386 ordinary shares at $4.20 per share to employees (including executive officers), consultants and each member of the Company’s board of directors who could purchase such ordinary shares with an interest-free, limited recourse loan payable to the Company. These limited recourse loans were not collateralized and were not recourse to the assets of the borrower, except to the extent of the shares issued. Because the loans were the sole consideration for the shares issued, the Company accounted for these arrangements as share options since the substance is similar to the grant of an option, with a deemed exercise price equal to the loan amount. The fair value of the notional share options was expensed in fiscal year 2013 when vested with a corresponding credit to additional paid-in capital. The limited recourse loans were repayable within 30 days of the termination of service to the Company of the employee, director or consultant. Failure to pay back the loan within that time frame would have resulted in relinquishing of those shares by the shareholder. The balance of loans outstanding as of June 30, 2015 and 2014 was $zero and $1.0 million, respectively. As discussed in Note 2, the Company does not recognize a separate receivable for limited recourse loans. The 2012 Plan is no longer in use. Between June 30, 2014 and September 30, 2014, all of the limited recourse loans were repaid in cash or satisfied by the repurchase by the Company of certain ordinary shares issued subject to such loans at a purchase price of $6.35 per ordinary share. The Company issued to each former holder of such ordinary shares an option to purchase a number of ordinary shares equal to the number of ordinary shares repurchased with an exercise price of $6.35 per ordinary share. The new options expire in February 2018, consistent with the original repayment date of the loan. With respect to Dr. Heffernan, his $0.3 million loan amount was satisfied with a repurchase by the Company of 52,040 ordinary shares held by him and the grant to him of an option to purchase 52,040 ordinary shares. With respect to Dr. Gearing, his $0.3million loan amount was satisfied with a repurchase by the Company of 46,372 ordinary shares held by him and the grant to him of an option to purchase 46,372 ordinary shares. As a result of the repurchases, all of the limited recourse loans were repaid in the Company’s first fiscal quarter of 2015. 2013 Long Term Incentive Plan In September 2013, the Company’s board of directors approved a long-term incentive plan for its employees (including executive officers), directors and consultants pursuant to which in November 2013 the Company issued share options to purchase 215,799 ordinary shares and restricted share units to acquire 29,214 ordinary shares to employees, directors and consultants. The underlying ordinary shares had a fair value of $5.15 per share, but the awards had an exercise or conversion price, as applicable, of zero, as permitted under Australian law. Because Irish law requires the payment to an issuer of at least the nominal value of shares in order to acquire such shares from the issuer, any options or restricted share units with a zero exercise or conversion price became exercisable or convertible, as applicable, at their nominal value in August 2014 in anticipation of the Irish Exchange. This nominal value became $0.10 per ordinary share in September 2014 in connection with the Irish Exchange and was revised to $0.125 per ordinary share in connection with the four-for-five share consolidation in November 2014. In September 2014, the Company also issued share options to purchase 16,800 ordinary shares and restricted share units to acquire 21,240 ordinary shares to employees, directors and consultants. The underlying ordinary shares had a fair value of $6.35 per ordinary share, but the awards had an exercise or conversion price of the nominal value of $0.10 per ordinary share, which nominal value became $0.125 per ordinary share in connection with the four-for five share consolidation in November 2014. Except for share options and restricted share units held by directors (which vested in November 2014), share options and restricted share units held by employees and consultants vest in three equal tranches in November 2014, November 2015 and November 2016. The Company revised this plan in September 2014 and refers to this plan as its “2013 Plan.” In November 2014, the Company awarded employees 141,792 share options and restricted share units to acquire 16,427 ordinary shares. The underlying ordinary shares had a grant date fair value of $9.37. The share options and restricted share units have an exercise price and conversion price of $0.125 per ordinary share. The awards are subject to a specified performance condition and service period and they vest in tranches over one to three years. The 2013 Plan was terminated in connection with the Company’s initial public offering. The 2013 Plan will continue to govern outstanding awards granted thereunder. Appropriate adjustments will be made in the number of authorized ordinary shares and other numerical limits in the 2013 Plan and in outstanding awards to prevent dilution or enlargement of participants’ rights in the event of a share split or other change in the Company’s capital structure. Prior to its termination, the 2013 Plan was administered by the Company’s board of directors. Subject to the provisions of the 2013 Plan, the board of directors determined, in its discretion, the persons to whom, and the times at which, awards were granted, as well as the size, terms and conditions of each award, under the 2013 Plan. All awards are evidenced by a written agreement between the Company and the holder of the award. The board of directors has the authority to construe and interpret the terms of the 2013 Plan and awards granted under the 2013 Plan. In the event of a change of control as described in the 2013 Plan, the acquiring or successor entity may assume or continue all or any awards outstanding under the 2013 Plan or substitute substantially equivalent awards. Any awards which are not assumed or continued in connection with a change of control or are not exercised or settled prior to the change of control will terminate effective as of the time of the change of control. The board of directors may provide for the acceleration of vesting of any or all outstanding awards upon such terms and to such extent as it determines, except that the vesting of all awards held by members of the board of directors who are not employees will automatically be accelerated in full. The 2013 Plan also authorizes the board of directors, in its discretion and without the consent of any participant, to cancel each or any outstanding award denominated in ordinary shares upon a change of control in exchange for a payment to the participant with respect to each share subject to the cancelled award of an amount equal to the excess of the consideration to be paid per ordinary share in the change of control transaction over the exercise price per ordinary share, if any, under the award. 2015 Equity Incentive Plan In September 2014, the Company’s board of directors adopted, and in November 2014 the Company’s shareholders approved, the 2015 Equity Incentive Plan (“2015 Plan”). The 2015 Plan was amended by the board of directors in January 2015 and became effective on the date immediately prior to the date of the prospectus for initial public offering. The 2015 Plan is intended to provide incentives that will assist the Company to attract, retain, and motivate employees, including officers, consultants and directors. The Company may provide these incentives through the grant of share options, restricted share units, performance shares and units and other cash-based or share-based awards. A total of 1,280,000 of the Company’s ordinary shares were initially authorized and reserved for issuance under the 2015 Plan. This reserve has or will automatically increase on July 1 of each year through 2024 by an amount equal to the lesser of: · Four percent of the number of the Company’s ordinary shares issued and outstanding on the immediately preceding June 30; and · An amount determined by the Company’s board of directors. The ordinary shares available under the 2015 Plan will not be reduced by awards settled in cash, but will be reduced by ordinary shares withheld to satisfy tax withholding obligations with respect to ordinary share options (but not other types of awards). The gross number of ordinary shares issued upon the exercise of options exercised by means of a net exercise or by tender of previously-owned ordinary shares will be deducted from the ordinary shares available under the 2015 Plan. Notwithstanding the foregoing, and subject to adjustment as described below, the maximum aggregate number of ordinary shares that may be subject to issuance at any given time under the 2015 Plan in connection with outstanding awards shall not exceed a number equal to ten percent of the Company’s total issued and outstanding ordinary shares (calculated on a non-diluted basis). Appropriate adjustments will be made in the number of authorized ordinary shares and other numerical limits in the 2015 Plan and in outstanding awards to prevent dilution or enlargement of participants’ rights in the event of a share split or other change in the Company’s capital structure. Ordinary shares subject to awards which expire or are cancelled or forfeited will again become available for issuance under the 2015 Plan. In May 2015, 360,000 share options and 20,280 restricted share units to acquire ordinary shares were awarded to employees and directors under the 2015 Plan with a grant date fair value of $5.93 and $6.99, respectively. The share option and restricted share units have an exercise price of $15.00 and a conversion price of $0.125 per ordinary share, respectively. Except for 2,280 restricted share units held by directors (which vest immediately), the awards vest in tranches over one to five years. In June 2015, bonus share awards of an aggregate 42,691 ordinary shares were issued to employees subject to the payment of $0.125 per ordinary share. The underlying ordinary share had a grant date fair value of $7.115 per ordinary share. Share Awards to Consultants or Advisors for Services Provided There were no share awards to consultants or advisors issued in fiscal year 2015. In November 2013, the Company entered into an agreement with a financial advisor for the provision of certain financial services. Pursuant to the agreement, the financial advisor elected to receive payment of fees in ordinary shares. In November 2013, the Company issued 8,849 SIRPS Preference Shares at $5.18 per share to the financial advisor. In December 2012, the Company entered into an agreement with Robert Gearing under which the Company agreed to pay to him a commission for arranging certain research and development services. The Company issued Mr. Gearing 6,250 ordinary shares in fiscal year 2013 and 4,424 ordinary shares in fiscal year 2014. The ordinary shares had an aggregate value of $48,000 and the Company recognized share-based compensation expense of $26,000 and $22,000 in fiscal years 2013 and 2014, respectively. |
Valuation of Share Awards
Valuation of Share Awards | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Valuation of Share Awards | Note 13. Valuation of Share Awards The fair value of each share option is estimated on the date of grant using the binomial option-pricing model. The Company was a private company until February 2015 and lacked company-specific historical and implied volatility information. Therefore, it has estimated its expected share volatility based on the historical volatility of its publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded share price. The expected term of the Company’s share options has been determined utilizing the “simplified” method as the Company has insufficient historical experience for share options overall, rendering existing historical experience irrelevant to expectations for current grants. The risk-free interest rate is determined by reference to the appropriate reserve bank yield in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. The fair value of the underlying ordinary shares considered the price per share paid by investors in the Company’s private financings, including the Series B Preference Shares in May 2014. The fair value of the share options was estimated using the following assumptions: Year Ended June 30, 2015 2014 Fair value per ordinary share $5.00-$15.00 $5.15 Risk free interest rate 1.7% 4.0% Expected term (in years) 3-6 years 5-10 years Expected volatility 80% 80% Expected dividend yield zero zero Since completion of the Company’s initial public offering, the fair value of the underlying ordinary shares was based on the price quoted on NASDAQ Global Market at date of grant. The following table summarizes share option activity for fiscal years 2014 and 2015: Shares Issuable Under Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of July 1, 2013 264,386 $ 4.20 5 $ 708 Granted 215,799 0.125 4.75 1,115 Exercised — — — — Ordinary shares no longer subject to limited recourse loans (9,706 ) (1) 4.20 5 (26 ) Expired or forfeited — — — — Outstanding as of June 30, 2014 470,479 $ 2.33 5 $ 1,797 Granted 663,661 $ 9.55 5 $ 2,355 Exercised (96,540 ) 0.125 5 (501 ) Ordinary shares no longer subject to limited recourse loans (109,611 ) (1) 4.20 5 (460 ) Repurchased (145,069 ) (1) 6.35 5 (222 ) Expired or forfeited (6,289 ) 0.125 — (45 ) Outstanding as of June 30, 2015 776,631 $ 8.18 5 $ 2,924 Options vested and expected to vest, as of June 30, 2013 — $ — Options vested and expected to vest, as of June 30, 2014 6,195 $ 0.125 Options vested and expected to vest, as of June 30, 2015 159,937 $ 5.77 (1) Reflects ordinary shares issued subject to limited recourse loans. See Note 12. In addition to the share options described above, the Company has granted restricted share units to its directors, employees and consultants. Restricted share units are valued at the fair value of the underlying ordinary shares as of the date of grant. The fair value of the ordinary shares issuable upon conversion of restricted share units considered the price per share paid by investors in the Company’s private financings, including the SIRPS Preference Shares in July 2013. The ordinary shares subject to the restricted share units are generally issued when they vest. The table below presents the Company’s restricted share unit activity for fiscal years 2015 and 2014: Number of Restricted Share Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of July 1, 2013 — $ — — $ — Granted 29,214 5.15 2.4 151 Converted — — — — Forfeited — — — — Outstanding as of June 30, 2014 29,214 $ 5.15 2.4 $ 151 Granted 57,947 7.83 2.1 453 Converted (29,489 ) 5.85 — (172 ) Forfeited — — — — Outstanding as of June 30, 2015 57,672 $ 7.48 2.1 $ 432 Converted and expected to convert, as of June 30, 2013 — $ — Converted and expected to convert, as of June 30, 2014 — $ — Converted and expected to convert, as of June 30, 2015 4,400 $ 9.19 Share-Based Compensation The Company recognizes share-based compensation expense for only the portion of awards that are expected to vest. In developing a forfeiture rate estimate, the Company has considered its historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual forfeiture rate is materially different from the Company’s estimate, the Company may be required to record adjustments to share-based compensation expense in future periods. The Company recorded share-based compensation expense related to share options and restricted share units for the fiscal years 2015, 2014 and 2013 as follows: Year Ended June 30, 2015 2014 2013 (in thousands) Research and development $ 756 $ 74 $ 298 General and administrative 1,325 224 412 Total $ 2,081 $ 298 $ 710 The Company had an aggregate of $3.1 million and $0.9 million, respectively, of unrecognized share-based compensation expense for share options and restricted share units outstanding as of June 30, 2015 and 2014, which is expected to be recognized over an estimated period of 4.0 years and 2.3 years, respectively, for share options and restricted share units. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies Indemnities and Guarantees The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain transactions. The Company indemnifies its officers and directors to the maximum extent permitted under the laws of Ireland. The duration of these indemnities and guarantees varies and, in certain cases, is indefinite. These indemnities and guarantees do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying balance sheets. Operating Lease The Company entered into a lease for its office in Melbourne, Australia commencing December 2013 for a period of five years. As of June 30, 2015 and June 30, 2014 commitments totaled $0.4 million and $0.5 million, respectively. Rent expense was $0.2 million, $0.1 million and $22,000 for fiscal years 2015, 2014 and 2013, respectively. Included in rent expense is a build-out incentive of $26,000, $11,000 and zero for fiscal years 2015, 2014 and 2013, respectively. A portion of the incentive paid by the landlord is to be repaid by the Company if the lease is early terminated, determined by the unexpired term of the lease over the original 60-month lease term. There are no escalation clauses in the lease agreement. In connection with the development of animal biopharmaceuticals the Company has open contracts with suppliers for goods and services of $0.7 million and $1.7 million as of June 30, 2015 and 2014, respectively. As of June 30, 2015 and 2014, future payments under these non-cancellable operating leases and non-cancellable purchase obligations were as follows: Total Less than 1 Year 1-3 Years 3-5 Years After 5 Years June 30, 2015 (in thousands) Operating leases $ 352 $ 109 $ 190 $ 53 $ — Purchase obligations 680 680 — — — Total $ 1,032 $ 789 $ 190 $ 53 $ — Total Less than 1 Year 1-3 Years 3-5 Years After 5 Years June 30, 2014 (in thousands) Operating leases $ 475 $ 97 $ 205 $ 173 $ — Purchase obligations 1,670 1,670 — — — Total $ 2,145 $ 1,767 $ 205 $ 173 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes There is no provision for income taxes because the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. The reported amount of income tax expense differs from the amount that would result from applying domestic federal statutory tax rates to pretax losses primarily because of changes in valuation allowance. In all periods presented, all revenue was earned in Australia. A reconciliation of the statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended June 30, 2015 2014 2013 (in thousands) Statutory income tax rate $ 1,482 $ 1,988 $ 972 Adjustment for foreign tax rates 1,913 — — Non-assessable income 1,722 703 (415 ) Non-deductible expenses (3,669 ) (1,687 ) (281 ) Change in deferred tax asset valuation allowance (1,344 ) (1,004 ) (276 ) Change in tax rates (104 ) — — Effective income tax rate $ — $ — $ — Non-assessable income and non-deductible expenses represent the gross amounts assessed under the research and development incentive program. Net deferred tax assets as of June 30, 2015 and 2014 consisted of the following: June 30, 2015 2014 (in thousands) Deferred tax assets: Net operation loss carryforward $ 2,578 $ 1,234 Accrued expenses and deferred lease incentive 218 503 Exchange (gain)/loss (591 ) — Net deferred tax assets 2,205 1,737 Valuation allowance (2,205 ) (1,737 ) Net deferred tax assets, net of valuation allowance $ — $ — As of June 30, 2015 and 2014, the Company had total deferred tax assets of $2.2 million and $1.7 million, respectively. Management has evaluated the factors bearing upon the reliability of its deferred tax assets, which consist principally of tax loss carry forwards for Australian income tax purposes of $7.2 million and $4.0 million, respectively. Management concluded that uncertainty of realizing any tax benefits as of June 30, 2015 and 2014, a full valuation allowance was necessary to offset its net deferred tax assets due to the Company’s lack of taxable income prospects for the foreseeable future. While preparing its financial statements for the year ended June 30, 2015, management identified an adjustment to the tax disclosure in its previously issued annual financial statements for the years ended June 30, 2014 and 2013 and interim financial statements for the quarter ended September 30, 2014. The Company did not properly present tax loss carry forward amounts and related total deferred tax assets and valuation allowance amounts in its Income Taxes footnote. The Company deemed the revision of the disclosure as not material to the June 30, 2014 and June 30, 2013 annual financial statements or September 30, 2014 interim financial statements. The Company has revised the June 30, 2014 amounts included in this filing, to properly report tax loss carry forwards, deferred tax assets, and the valuation allowance amounts and associated annual movement amounts for the fiscal year then ended. The Company has also revised the June 30, 2013 amounts included in this filing, to properly report the valuation allowance amount and associated annual movement amount for the fiscal year then ended. As a result of the revision, comparative deferred tax assets relating to tax loss carry forwards have been decreased by $2.9 million, $0.8 million and $4.5 million with a corresponding change in valuation allowance for the years ended June 30, 2014 and June 30, 2013 and quarter ended September 30, 2104, respectively. As disclosed in the notes to the financial statements, the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. Therefore, there are no changes to the amounts recorded in the balance sheets, statements of operations and comprehensive loss and statements of cash flows. Utilization of tax loss carry forwards is subject to potential limitation as a consequence of the Australian loss recoupment rules and future ownership changes, future capital raisings or ongoing changes in the Company’s business. Given the change of ownership that occurred in September 2014 (see Note 1), the Australian tax authorities could argue that there has been a change in the Company’s underlying business in Australia, which may result in these tax losses never being recoverable. Should this occur, future Australian taxable profits would be taxed at the full corporate rate, which is currently 28.5% (30% in 2014). Depending on the actual amount of any limitation on the Company’s ability to use its tax loss carry forwards, a significant portion of its future taxable income could be taxable. Changes in the valuation allowance for deferred tax assets during fiscal years 2015, 2014 and 2013 were as follows: June 30, 2015 2014 2013 (in thousands) Valuation allowance as of beginning of year $ 1,737 $ 479 $ 204 Increases recorded to income tax provision 468 1,258 275 Valuation allowance as of end of year $ 2,205 $ 1,737 $ 479 The Company has not recorded any amounts for unrecognized tax benefits as of June 30, 2015 or 2014. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. There are currently no pending income tax examinations. The Company’s tax years are still open under statute from 2011 to the present. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax provision. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16. Related Party Transaction Dr. Paul Wood is a former director of the Company. In May 2013, the Company entered into a consultancy agreement with Dr. Wood for consulting services. The Company recorded expense of $23,000, $23,000 and $8,000 in fiscal years 2015, 2014 and 2013, respectively, related to this agreement. Peter Howard is a former director of the Company, In July 2011, the Company entered into a consultancy agreement with Mr. Howard for financial advisory services. The Company recorded expense of $28,000 and $30,000 in fiscal years 2015 and 2014, respectively, related to this agreement. Ridge Biotechnology Consulting, LLC is owned and operated by Dr. Robert Gearing, the brother of David Gearing, a co-founder of the Company and its Chief Scientific Officer. In October 2010, the Company entered into a consulting agreement with Ridge Biotechnology Consulting, LLC for the provision of services to the Company. The agreement was superseded by agreements entered into in April 2011 and April 2012, and a new consulting agreement with Ridge Biotechnology Consulting, LLC was entered into in January 2014. The Company recorded general and administrative expense of $0.2 million , $0.1 million and $51,000 in fiscal years 2015, 2014 and 2013, respectively, related to these agreements. As of June 30, 2015 and 2014, there was $13,000 and $19,000 payable to Ridge Biotechnology Consulting, LLC, respectively. Dr. Robert Gearing was also a party to a 2012 agreement with the Company pursuant to which the Company issued Dr. Gearing 4,4240 ordinary shares in fiscal year 2014 and 6,250 ordinary shares in fiscal year 2013, with an aggregate value of $48,000, for arranging certain research and development services. Dr. Andrew Gearing is a former director, a co-founder of the Company and a brother of David Gearing, a co-founder of the Company and its Chief Scientific Officer. Dr. Andrew Gearing serves on the board of directors of Biocomm Square Pty Ltd. In August 2010 and August 2013, the Company entered into consulting agreements with Biocomm Square Pty Ltd for research and development support services. These agreements were superseded by a new consulting agreement in December 2013, which was amended in April 2014. In addition, the Company entered into an agreement with Biocomm Square Pty Ltd in November 2011 for assistance in obtaining partnering arrangements with Japanese entities. The Company recorded research and development expense of $0.2 million, $0.2 million and $0.1 million in fiscal years 2015, 2014 and 2013, respectively, related to these agreements. As of June 30, 2015 and 2014, there was $17,000 and $23,000 payable to Biocomm Square Pty Ltd, respectively. David Gearing, a co-founder of the Company and its Chief Scientific Officer, loaned the Company $0.2 million in May 2012, accruing interest at 15% per annum. In February 2013, the Company repaid the loan together with $21,000 in accrued interest. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events There were no material subsequent events occurring after June 30, 2015 requiring disclosure. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 18. Selected Quarterly Financial Data (Unaudited) The following table presents selected unaudited quarterly financial information for the years ended June 30, 2015 and 2014. The results for any quarter are not necessarily indicative of future quarterly results and, accordingly, period to period comparisons should not be relied upon as an indication of future performance. For the Quarter Ended June 30, March 31, December 31, September 2015 (in thousands, except share and per share amounts) Operating expenses $ (4,904 ) $ (5,109 ) $ (4,666 ) $ (5,357 ) Net loss attributable to ordinary shareholders $ (4,479 ) $ (2,668 ) $ (2,413 ) $ (2,297 ) Net loss per share attributable to ordinary shareholders—basic and diluted $ (0.39 ) $ (0.36 ) $ (2.01 ) $ (2.13 ) 2014 Operating expenses $ (3,878 ) $ (2,693 ) $ (1,664 ) $ (1,808 ) Net loss attributable to ordinary shareholders $ (3,231 ) $ (1,470 ) $ (993 ) $ (1,016 ) Net loss per share attributable to ordinary shareholders—basic and diluted $ (3.22 ) $ (1.47 ) $ (0.99 ) $ (1.02 ) |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements of the Company include the operations of all its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Such operations include the Company, Nexvet Australia, NVIP Pty Limited, Nexvet Ireland Limited, Tevxen Limited, Nexvet UK Limited and Nexvet US, Inc. All intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on June 30, and references to any fiscal year are to the Company’s year ended June 30 in that year. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include research and development incentive income, research and development accruals, share-based payments, valuation of warrants, options and restricted share units and deferred income taxes. Actual results could differ from those estimates. |
Net Loss Per Share | Net Loss Per Share Net loss per share information is determined using the two-class method, which includes the weighted-average number of ordinary shares outstanding during the period and other securities that participate in dividends (a participating security). The Company’s convertible preference shares are participating securities as defined by Accounting Standards Codification (“ASC”) Topic 260-10, Earnings Per Share. Net loss per share disclosures have been revised to give effect to the share consolidations that took place in the reporting period Under the two-class method, basic net loss per share applicable to ordinary shareholders is computed by dividing the net loss applicable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the reporting period. Diluted net loss per share gives effect to all potentially dilutive securities, including convertible preference shares and shares issuable upon the exercise or conversion, as applicable, of outstanding warrants, share options and restricted share units, using the treasury shares method. The Company has excluded the effects of all potentially dilutive shares, which include convertible preference shares, warrants to purchase ordinary shares, ordinary share options, restricted share units and the ordinary shares issued subject to limited recourse loans, from the weighted-average number of ordinary shares outstanding as their inclusion in the computation for all periods would be anti-dilutive due to net losses. |
Cash | Cash As of June 30, 2015 and 2014, the Company’s cash consisted of cash deposited in a business operating account or in short-term deposit accounts of less than 90 days’ duration. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties The Company receives research and development incentive income and grants from a single source, the Australian government. The Company’s cash is deposited with several large commercial banks located in the United States and Australia that are federally insured or guaranteed, limiting the amount of credit exposure to any one financial institution. The Company’s cash balances with these financial institutions often exceed the amount insured. The Company is subject to risks common to companies in the biotechnology industry. The Company’s research and development may not be successfully completed, adequate protection for the Company’s technology may not be obtained, any products developed may not obtain necessary government regulatory approval and any approved products may not be commercially viable. The Company operates in an environment of substantial competition from other animal health companies, some of which have substantially more resources at their disposal. In addition, the Company is dependent upon the services of its employees and consultants, as well as third-party contract research organizations and manufacturers. |
Fair Value Measurements | Fair Value Measurements The Company records certain assets and liabilities at fair value in accordance with the provisions of ASC Topic 820, Fair Value Measurements. As defined in the guidance, fair value, defined as an exit price, represents the amount that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering these assumptions, the guidance defines a three-tier value hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value. · Level 1—Unadjusted quoted prices in active, accessible markets for identical assets or liabilities. · Level 2—Other inputs that are directly or indirectly observable in the marketplace. · Level 3—Unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s material financial instruments include cash, other income receivables, accrued liabilities and warrants. The carrying amounts of these instruments are considered to be representative of their respective fair values because of the short-term nature of those investments. In 2014, the Company determined its warrants were Level 3 liabilities until they were reclassified into equity (see –“Warrants” below). |
Other Income Receivable | Other Income Receivable Other income receivable is recorded at the invoiced amount where available. Nexvet Australia is eligible under the AusIndustry research and tax development tax incentive program to obtain a cash amount from the Australian Taxation Office (“ATO”). The tax incentive is available to Nexvet Australia on the basis of specific criteria with which Nexvet Australia must comply. Specifically, Nexvet Australia must have revenue of less than A$20 million and cannot be controlled by income tax exempt entities. The Company recognized other income for the 2015 fiscal year at 43.5% of qualifying expenditure on the basis of the proposed revisions to the rebate rate announced by the Australian government in 2015 that, if passed as law, are expected to be retrospectively applied to the 2015 fiscal year. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at acquisition cost, net of accumulated depreciation and impairment. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful life of machinery and equipment is three to 20 years. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. Upon retirement or sale of an asset, its cost and related accumulated depreciation or accumulated amortization are removed from the property accounts and any gain or loss is included in the results of operations. Maintenance and repairs are expensed as incurred. |
Intangible Assets | Intangible Assets The Company accounts for intangible assets under ASC 350, Intangibles—Goodwill and Other, which consists of internal use computer software costs. Costs which include acquiring off the shelf software and licenses that are expected to provide future period financial benefits are capitalized to computer software intangibles. No material internal or external costs are incurred in making the software ready for use. Maintenance costs are expensed as incurred. Amortization is calculated on a straight-line basis over periods ranging from one to three years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its tangible and intangible assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the asset may not be fully recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to the estimated undiscounted cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge will be recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no impairments of long-lived assets during fiscal years 2015, 2014 or 2013. |
Foreign Currency | Foreign Currency The Company’s functional currency is U.S dollars, and the functional currency for most subsidiaries is their local currency. Foreign currency transactions are translated into the functional currency using the current exchange rate at the date of the transaction. At year end, monetary items denominated in a foreign currency are translated into the functional currency of the relevant entity using the year end spot rate. The exchange gain of $4.2 million in fiscal year 2015 and exchange loss of $0.4 million in fiscal year 2014 primarily relate to the translation of Nexvet Australia’s U.S. dollar-denominated bank accounts to its Australian dollar functional currency. In preparing the Company’s consolidated financial statements, the financial statements of the subsidiaries are translated at year-end exchange rates as to assets and liabilities and weighted-average rates as to revenue and expenses. The resulting translation adjustments are recognized in other comprehensive income (loss) (“OCI”). The non-cash translation adjustment in accumulated OCI was a loss of $4.9 million in fiscal year 2015 and a gain of $0.3 million in fiscal year 2014. These adjustments primarily relate to the translation of U.S. dollar-denominated bank accounts within Nexvet Australia’s balance sheet to the U.S dollar presentation currency of the consolidated balance sheet. Under U.S. GAAP, there is no offset of these two exchange-related items within the consolidated statements of operations and comprehensive loss. Net loss and associated calculations are impacted by this treatment. |
Warrants | Warrants As of June 30, 2014, the Company’s liabilities primarily consist of warrants that were issued to investors and financial advisors in connection with private placements of the Company’s securities in May 2014. The warrants permit the holders to purchase ordinary shares at exercise prices of $8.625 and $7.50 per share on or before May 2019. Because the warrants may be net exercised and are exercisable in U.S. dollars, and the functional currency of Nexvet Australia, the original issuer of the warrants, is Australian dollars, they were classified as a liability as of June 30, 2014. The warrants were reclassified as shareholders’ equity in September 2014 following the Irish Reorganization (in which the original warrants were exchanged for warrants issued by the Company) and the change in the Company’s functional currency to U.S. dollars. On reclassification, the warrants were recognized at cost in shareholders’ equity and no longer required to be remearsured at fair value at June 30, 2015. Warrants recorded as liabilities ($5.4 million as of June 30, 2014) are valued at balance date using the binomial option-pricing model. The expected term used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioral considerations. At each balance sheet date, the outstanding warrants are revalued to their current fair value, with the difference in fair value recorded in the consolidated statements of operations and comprehensive loss. Warrants are classified within Level 3 of the fair value hierarchy at June 30, 2014 wherein fair value is estimated using significant unobservable inputs. The significant assumptions used in estimating the fair value of the warrants include the estimated fair value of the underlying shares, exercise price, volatility of the shares underlying the warrant and the expected term of the warrant. The fair value of the underlying ordinary shares was estimated by reference to the price per share paid by investors for the Company’s Series B preference shares in May 2014. The fair values of the warrants were estimated using the following assumptions: June 30, 2014 Fair value per ordinary share $6.35 Risk free interest rate 1.7% Expected term (in years) 4 years Expected volatility 75% Expected dividend yield Nil There were warrants to purchase 1,766,998 ordinary shares issued during fiscal year 2014. There were no warrants issued during fiscal years 2015 and 2013. |
Income Taxes | Income Taxes The Company has historically filed income tax returns in Australia and the United States and in the future also expects to file tax returns in Ireland. The Company applies ASC Topic 740, Income Taxes, which establishes financial accounting and reporting requirements for the effects of income taxes that result from the Company’s activities during the current and preceding years. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities on their respective tax bases, and operating losses and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted statutory tax rates expected to apply to taxable income in the jurisdictions and years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. When the Company determines that it is more likely than not that some portion or all of the deferred tax assets will not be realized in the future, the deferred tax assets are reduced by a valuation allowance. The valuation allowance is sufficient to reduce the deferred tax assets to the amount that the Company determines is more likely than not to be realized. The income tax benefit from an uncertain tax position is only recognized if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on technical merits of the position. The Company evaluates and adjusts these accruals based on changing facts and circumstances. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax provision. |
License and Collaboration Agreement Revenue Recognition | License and Collaboration Agreement Revenue Recognition Future revenue under a license and collaboration agreement is expected to consist of fees for services, royalties for product sales or payments when specific milestones are met and match underlying activities occurring during the term of the arrangement. In fiscal year 2013, the Company entered into a license and collaboration agreement with a third party for the research and development of animal health products in Japan. The terms of the agreement include non-refundable signing and license fees, development milestone payments, the potential for manufacturing and supply services and royalties on any product sales derived from the collaboration. The Company analyzed this arrangement to determine whether the deliverables, which included license and performance obligations such as research and steering committee services, can be separated or whether these must be accounted for as a single unit of accounting. The Company recognizes license payments as revenue upon delivery of the license only if the license has stand-alone value and there are no undelivered performance obligations related to the license. If the license is considered not to have stand-alone value, the arrangement would then be accounted for as a single unit of accounting and the license payments and payments for performance obligations would be recognized as revenue over the estimated period of when the performance obligations are performed. When the Company determines that an arrangement should be accounted for as a single unit of accounting, it determines the period over which the performance obligations will be performed and revenue will be recognized. Revenue will be recognized using either a proportional performance or straight-line method. The Company recognizes revenue using the proportional performance method when the level of effort required to complete its performance obligations under an arrangement can be reasonably estimated, and such performance obligations are provided on a best-efforts basis. Direct labor hours or full-time equivalents are typically used as the measurement of performance. If the Company cannot reasonably estimate the level of effort to complete its performance obligations under an arrangement, then revenue under the arrangement would be recognized on a straight-line basis over the period the Company is expected to complete its performance obligations. The Company’s license and collaboration agreement entitles it to additional payments upon the achievement of performance-based milestones. Milestones that involve substantial effort on the Company’s part are considered “substantive milestones.” A substantive milestone is included in the Company’s revenue model when the milestone is achieved. To date, no milestone payments have been received. Royalty revenue is recognized upon the sale of the related products, provided the Company has no remaining performance obligations under the arrangement. |
Research and Development Expense | Research and Development Expense Research and development costs are expensed as incurred and consist primarily of (i) payroll and related expense for all employees engaged in scientific research and development functions, including wages, related benefits, and share-based compensation, (ii) fees for regulatory, professional and other consultants and (iii) development costs, including costs of drug discovery, safety, and proof-of-concept, pilot and pivotal safety and efficacy studies, development of biological materials, and service providers. The Company is currently pursuing its NV‑01, NV‑02 and NV‑08 lead product candidates and typically uses its employee and infrastructure resources across multiple development programs. The Company allocates outsourced development costs by lead product candidates but does not allocate personnel or other internal costs related to development to specific product candidates. |
General and Administrative Expense | General and Administrative Expense General and administrative expense consists primarily of non-research and development-related payroll and related expense for employees, consultants and directors, including wages, related benefits and share-based compensation. General and administrative expense also includes professional and consulting fees for legal, accounting, tax services and other general business services, as well other expenses such as travel, rent and facilities costs. |
Other Income (Expense) | Other Income (Expense) Nexvet Australia is eligible under the AusIndustry research and development tax incentive program to obtain a cash amount from the ATO. The tax incentive is available to Nexvet Australia on the basis of specific criteria with which Nexvet Australia must comply. Although the tax incentive is administered through the ATO, the Company has accounted for the tax incentive outside the scope of ASC Topic 740, Income Taxes, as an income tax benefit since Nexvet Australia meets the applicable requirements to participate in the program and the incentive is not linked to Nexvet Australia’s income tax liability and can be realized regardless of whether Nexvet Australia has generated taxable income. Research and development incentive income is recognized when the research and development activities have been undertaken and the Company has completed its assessment of whether such activities meet the relevant qualifying criteria. The Company recognizes government grant income at the fair value of the grant when it is received and all substantive conditions have been satisfied. When the grant relates to an expense item, it is recognized as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Exchange gain (loss) consists primarily of gains or losses due to foreign exchange translation, primarily reflecting changes in Australian and U.S. foreign exchange rates. Under U.S. GAAP, these gains (losses) relate to a translation of U.S. dollar-denominated bank accounts into Nexvet Australia’s Australian dollar functional currency and represent a non-cash item. The Company earns interest on the cash balances held with financial institutions and recognizes interest when earned on an accruals basis over time. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the total change in shareholders’ deficit during the period other than from transactions with shareholders, which for the Company, includes net change in foreign currency translation adjustments. |
Share-Based Compensation | Share-Based Compensation The Company’s share-based compensation plan (see Note 12) provides for the grant of share options, restricted share units and other share-based awards. The fair value of share options is determined as of the date of grant using the binomial option-pricing model. This method incorporates the fair value of the Company’s ordinary shares at the date of each grant and various assumptions such as the risk-free interest rate, expected volatility based on the historic volatility of peer companies, expected dividend yield, and expected term of the share option. Restricted share units are valued at the fair value of the underlying ordinary shares as of the date of grant. The Company classifies share-based compensation expense in the statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified. The Company recognizes share-based compensation expense based on the grant date fair value of the entire award over the total period during which an employee is required to provide service in exchange for the award. In accordance with ASC 718, the amount of compensation expense recognized at each balance date is at least equal to the grant date fair value of the vested portion of the award on that date. Where performance conditions are attached to the awards, compensation expense is recognized in the period in which it becomes probable that the performance target will be achieved, net of estimate of pre-vesting forfeitures over the requisite service period. The probability of vesting is reassessed at each reporting period for awards with performance conditions and compensation expense is adjusted based on its probability assessment. Share-based compensation expense is classified in the statements of operation and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified. Equity instruments issued to non-employees, including consultants, are accounted for in accordance with Financial Accounting Standards Board (“FASB”) guidance. All transactions in which services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier of the date on which the counterparty’s performance is complete or the date on which it is probable that performance will occur. For transactions where the fair value of the equity instrument issued to non-employees is the more reliable measurement and a measurement date has not been reached, the fair value is re-measured at each balance sheet date using the binomial option-pricing model. Compensation expense for these share-based awards is recognized over the term of the consulting agreement or until the award is approved and settled. |
Segment Data | Segment Data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company is a clinical-stage biopharmaceutical company focusing on developing therapies for companion animals. At June 30, 2014 all major assets were held in Australia. As of June 30, 2015, $38.0 million of cash raised on completion of the initial public offering has been retained in the United States. All other major assets are held in Australia. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company has early adopted the provisions of Accounting Standards Update (“ASU”) No. 2014-10, Elimination of Certain Financial Requirements, Including an Amendment to Variable Interest Entities Guidance Topic in Topic 810, Consolidation, starting in fiscal year 2014. In June 2014, the Financial Accounting Standards Board (“FASB”) issued guidance removing the definition of a development stage entity from the Master Glossary of the ASC, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. This guidance also eliminates an exception provided to development stage entities in ASC Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of the investment equity that is at risk. On adoption, the Company was not required to present or disclose any information required by ASC Topic 915, Development Stage Entities. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about: · Contracts with customers—including revenue and impairments recognized, disaggregation of revenue and information about contract balances and performance obligations (including the transaction price allocated to the remaining performance obligations). · Significant judgments and changes in judgments—determining the timing of satisfaction of performance obligations (over time or at a point in time), and determining the transaction price and amounts allocated to performance obligations. · Certain assets—assets recognized from the costs to obtain or fulfill a contract. In July 2015, the FASB delayed the effective date of this guidance. As a result, this guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact that this guidance will have on the Company’s consolidated results of operations, financial position and cash flows. In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation. This guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply the existing guidance in ASC Topic 718, Compensation—Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation expense should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation expense attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation expense should be recognized prospectively over the remaining requisite service period. The total amount of compensation expense recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This guidance will be effective for annual reporting periods beginning after December 15, 2015. The Company is currently evaluating the impact that this guidance will have on the Company’s consolidated results of operations, financial position and cash flows. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). This guidance defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under the guidance, management is required to evaluate, for each annual and interim reporting period, whether it is probable that the entity will not be able to meet its obligations as they become due within one year after the date that the financial statements are issued or are available to be issued. When management identifies substantial doubt about the entity’s ability to continue as a going concern, additional disclosures are required. This guidance will be effective for annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. In February 2015, the FASB issued ASU 2015-02, Consolidation. This guidance amends existing consolidation guidance in which a reporting entity might be required to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. The guidance: · modifies the evaluations of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities; · eliminates the presumption that a general partner should consolidate a limited partner; · affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships; and · provides a scope exception from consolidation guidance for reporting entities with interests in certain investment funds. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest. This guidance simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The guidance will be effective for annual reporting periods beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Assumptions Used to Estimate Fair Values of Warrants | The fair values of the warrants were estimated using the following assumptions: June 30, 2014 Fair value per ordinary share $6.35 Risk free interest rate 1.7% Expected term (in years) 4 years Expected volatility 75% Expected dividend yield Nil |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following as of the dates indicated: Useful Lives June 30, 2015 2014 (in years) (in thousands) Computer equipment 3-7 $ 89 $ 68 Research and development equipment 5-10 432 242 Office equipment 5-20 83 100 Leasehold improvements 5 133 162 Less: Accumulated depreciation and amortization (188 ) (58 ) Property, plant and equipment, net $ 549 $ 514 |
Summary of Movement in Property Plant and Equipment | Computer equipment Research and development equipment Office equipment Leasehold improvements Total Opening balance July 1, 2013 3 37 7 — 47 Additions 65 193 94 160 512 Disposals — — — — — Depreciation (11 ) (31 ) (5 ) (9 ) (56 ) Exchange rate adjustment — 15 (4 ) — 11 Closing balance June 30, 2014 57 214 92 151 514 Additions 35 258 1 — 294 Disposals — — — — — Depreciation (25 ) (86 ) (12 ) (29 ) (152 ) Exchange rate adjustment (11 ) (52 ) (19 ) (25 ) (107 ) Closing balance June 30, 2015 56 334 62 97 549 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets, net consisted of the following as of the dates indicated: Useful Lives June 30, 2015 2014 (in years) (in thousands) Computer software 1-3 $ 21 $ 2 Less: Accumulated amortization (2 ) — Intangible assets, net $ 19 $ 2 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following as of the dates indicated: June 30, 2015 2014 (in thousands) Accrued payroll and related expenses $ 1,027 $ 502 Accrued professional fees 361 355 Accrued research and development costs 964 1,442 Accrued expenses $ 2,352 $ 2,299 |
Deferred Lease Incentive (Table
Deferred Lease Incentive (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Deferred Lease [Abstract] | |
Schedule of Deferred Lease Incentive | Deferred lease incentive consisted of the following as of the dates indicated: June 30, 2015 2014 (in thousands) Current $ 23 $ 28 Non-Current $ 61 $ 103 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Warrants And Rights Note Disclosure [Abstract] | |
Schedule of Warrants | June 30, June 30, 2015 2014 (in thousands) Warrants $ — $ 5,435 |
Convertible Preference Shares (
Convertible Preference Shares (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Convertible Preference Shares | Preference Shares consisted of the following as of June 30, 2014: June 30, 2014 Preference Shares Issued and Outstanding Liquidation Preference Carrying Value (in thousands) SIRPS Preference Shares 1,737,132 $ 16,353 $ 8,177 Series B Preference Shares 4,200,006 51,298 25,649 5,937,138 $ 67,651 $ 33,826 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities carried at fair value on a recurring basis as of June 30, 2015 and 2014, including financial instruments which the Company accounts for under the fair value option, are summarized in the following tables. June 30, 2015 Level 1 Level 2 Level 3 Assets/ Liabilities at Fair Value (in thousands) Assets Cash $ 52,033 $ — $ — $ 52,033 June 30, 2014 Level 1 Level 2 Level 3 Assets/ Liabilities at Fair Value Assets Cash $ 30,041 $ — $ — $ 30,041 Liabilities Warrants $ — $ — $ 5,435 $ 5,435 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis, Significant unobservable Inputs | The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), including net realized and unrealized gains (losses) included in earnings and accumulated OCI. Warrants (in thousands) Balance as of June 30, 2013 — Issuances 5,435 Balance as of June 30, 2014 5,435 Reclassification into shareholders’ equity (5,435 ) Balance June 30, 2015 $ — |
Summary of Significant Unobservable Inputs Related to Material Categories of Level 3 Assets and Liabilities | The following table present information about significant unobservable inputs related to the Company’s material categories of Level 3 assets and liabilities as of June 30, 2014. Financial Instruments Fair Valuation Significant Input Range (in Warrants $ 5,435 Binomial option-pricing model Volatility 70-80% Expected term 4 years |
Net Loss Per Share and Pro Fo35
Net Loss Per Share and Pro Forma Net Loss Per Share (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Net Loss Per Participating Securities | The calculation of net loss per participating securities (“EPS”) for fiscal years 2015 and 2014 is presented below. Year Ended June 30, 2015 2014 2013 (in thousands, except share and per share amounts) Net loss $ (11,857 ) $ (6,710 ) $ (3,241 ) Weighted-average ordinary shares issued and outstanding—basic and diluted 5,214,957 1,000,872 894,794 Net loss per ordinary share—basic and diluted $ (2.27 ) $ (6.70 ) $ (3.62 ) |
Ordinary Share Equivalents Excluded from Calculation of Diluted Net Loss Per Share | The following ordinary share equivalents were excluded from the calculation of diluted net loss per share for the periods ended on the dates indicated because including them would have an anti-dilutive effect: Year Ended June 30, 2015 2014 2013 Preference shares — 5,937,138 792,117 Share-based awards 834,303 245,020 — Warrants 1,766,998 1,766,998 — Shares subject to limited recourse loans (see Note 12) — 254,680 264,386 Total 2,601,301 8,203,836 1,056,503 |
Valuation of Share Awards (Tabl
Valuation of Share Awards (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Estimated Fair Value of Share Options | The fair value of the share options was estimated using the following assumptions: Year Ended June 30, 2015 2014 Fair value per ordinary share $5.00-$15.00 $5.15 Risk free interest rate 1.7% 4.0% Expected term (in years) 3-6 years 5-10 years Expected volatility 80% 80% Expected dividend yield zero zero Since completion of the Company’s initial public offering, the fair value of the underlying ordinary shares was based on the price quoted on NASDAQ Global Market at date of grant. |
Summary of Share Option Activities | The following table summarizes share option activity for fiscal years 2014 and 2015: Shares Issuable Under Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of July 1, 2013 264,386 $ 4.20 5 $ 708 Granted 215,799 0.125 4.75 1,115 Exercised — — — — Ordinary shares no longer subject to limited recourse loans (9,706 ) (1) 4.20 5 (26 ) Expired or forfeited — — — — Outstanding as of June 30, 2014 470,479 $ 2.33 5 $ 1,797 Granted 663,661 $ 9.55 5 $ 2,355 Exercised (96,540 ) 0.125 5 (501 ) Ordinary shares no longer subject to limited recourse loans (109,611 ) (1) 4.20 5 (460 ) Repurchased (145,069 ) (1) 6.35 5 (222 ) Expired or forfeited (6,289 ) 0.125 — (45 ) Outstanding as of June 30, 2015 776,631 $ 8.18 5 $ 2,924 Options vested and expected to vest, as of June 30, 2013 — $ — Options vested and expected to vest, as of June 30, 2014 6,195 $ 0.125 Options vested and expected to vest, as of June 30, 2015 159,937 $ 5.77 (1) Reflects ordinary shares issued subject to limited recourse loans. See Note 12. |
Summary of Restricted Share Unit Activity | The table below presents the Company’s restricted share unit activity for fiscal years 2015 and 2014: Number of Restricted Share Units Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of July 1, 2013 — $ — — $ — Granted 29,214 5.15 2.4 151 Converted — — — — Forfeited — — — — Outstanding as of June 30, 2014 29,214 $ 5.15 2.4 $ 151 Granted 57,947 7.83 2.1 453 Converted (29,489 ) 5.85 — (172 ) Forfeited — — — — Outstanding as of June 30, 2015 57,672 $ 7.48 2.1 $ 432 Converted and expected to convert, as of June 30, 2013 — $ — Converted and expected to convert, as of June 30, 2014 — $ — Converted and expected to convert, as of June 30, 2015 4,400 $ 9.19 |
Share Based Compensation Expense Related to Share Options and Restricted Share Units | The Company recorded share-based compensation expense related to share options and restricted share units for the fiscal years 2015, 2014 and 2013 as follows: Year Ended June 30, 2015 2014 2013 (in thousands) Research and development $ 756 $ 74 $ 298 General and administrative 1,325 224 412 Total $ 2,081 $ 298 $ 710 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Payments Non-Cancellable Operating Leases and Purchase Obligations | As of June 30, 2015 and 2014, future payments under these non-cancellable operating leases and non-cancellable purchase obligations were as follows: Total Less than 1 Year 1-3 Years 3-5 Years After 5 Years June 30, 2015 (in thousands) Operating leases $ 352 $ 109 $ 190 $ 53 $ — Purchase obligations 680 680 — — — Total $ 1,032 $ 789 $ 190 $ 53 $ — Total Less than 1 Year 1-3 Years 3-5 Years After 5 Years June 30, 2014 (in thousands) Operating leases $ 475 $ 97 $ 205 $ 173 $ — Purchase obligations 1,670 1,670 — — — Total $ 2,145 $ 1,767 $ 205 $ 173 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of the Statutory Income Tax Rate to the Effective Income Tax Rate | A reconciliation of the statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended June 30, 2015 2014 2013 (in thousands) Statutory income tax rate $ 1,482 $ 1,988 $ 972 Adjustment for foreign tax rates 1,913 — — Non-assessable income 1,722 703 (415 ) Non-deductible expenses (3,669 ) (1,687 ) (281 ) Change in deferred tax asset valuation allowance (1,344 ) (1,004 ) (276 ) Change in tax rates (104 ) — — Effective income tax rate $ — $ — $ — |
Net Deferred Tax Assets | Net deferred tax assets as of June 30, 2015 and 2014 consisted of the following: June 30, 2015 2014 (in thousands) Deferred tax assets: Net operation loss carryforward $ 2,578 $ 1,234 Accrued expenses and deferred lease incentive 218 503 Exchange (gain)/loss (591 ) — Net deferred tax assets 2,205 1,737 Valuation allowance (2,205 ) (1,737 ) Net deferred tax assets, net of valuation allowance $ — $ — |
Changes in the Valuation Allowance for Deferred Tax Assets | Changes in the valuation allowance for deferred tax assets during fiscal years 2015, 2014 and 2013 were as follows: June 30, 2015 2014 2013 (in thousands) Valuation allowance as of beginning of year $ 1,737 $ 479 $ 204 Increases recorded to income tax provision 468 1,258 275 Valuation allowance as of end of year $ 2,205 $ 1,737 $ 479 |
Selected Quarterly Financial 39
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information (Unaudited) | The following table presents selected unaudited quarterly financial information for the years ended June 30, 2015 and 2014. The results for any quarter are not necessarily indicative of future quarterly results and, accordingly, period to period comparisons should not be relied upon as an indication of future performance. For the Quarter Ended June 30, March 31, December 31, September 2015 (in thousands, except share and per share amounts) Operating expenses $ (4,904 ) $ (5,109 ) $ (4,666 ) $ (5,357 ) Net loss attributable to ordinary shareholders $ (4,479 ) $ (2,668 ) $ (2,413 ) $ (2,297 ) Net loss per share attributable to ordinary shareholders—basic and diluted $ (0.39 ) $ (0.36 ) $ (2.01 ) $ (2.13 ) 2014 Operating expenses $ (3,878 ) $ (2,693 ) $ (1,664 ) $ (1,808 ) Net loss attributable to ordinary shareholders $ (3,231 ) $ (1,470 ) $ (993 ) $ (1,016 ) Net loss per share attributable to ordinary shareholders—basic and diluted $ (3.22 ) $ (1.47 ) $ (0.99 ) $ (1.02 ) |
Organization and Description 40
Organization and Description of Business - Addtional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015USD ($)shares | Mar. 31, 2015USD ($)shares | Feb. 28, 2015$ / sharesshares | Nov. 30, 2014shares | Aug. 31, 2014 | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Jun. 30, 2013shares | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Accumulated deficit | $ (23,655) | $ (23,655) | $ (11,798) | |||||
Cash | $ 52,033 | $ 52,033 | $ 30,041 | |||||
Share consolidation, ratio | 0.8 | |||||||
Issuance of ordinary shares, shares | shares | 37,938 | |||||||
Convertible preference shares, shares outstanding | shares | 5,937,160 | 5,937,138 | ||||||
Preference shares converted into ordinary shares | shares | 5,937,160 | 5,937,160 | 16 | 5,937,160 | ||||
Common Stock | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Issuance of ordinary shares, shares | shares | 4,176,903 | 4,424 | 534,545 | |||||
Initial public offering | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Offering expenses payable | $ 900 | |||||||
Initial public offering | Common Stock | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Issuance of ordinary shares, shares | shares | 200,000 | 4,000,000 | ||||||
Public offering price (in dollars per share) | $ / shares | $ 10 | |||||||
Proceeds from Initial Public Offering, Gross | $ 41,800 | |||||||
Proceeds from Initial Public Offering, Net | $ 38,000 | 38,000 | ||||||
Underwriting discount | $ 2,900 | |||||||
Nexvet Biopharma | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Share consolidation, ratio | 0.25 | |||||||
Stockholders' Equity, Reverse Stock Split | In August 2014, the Company completed a one-for-four share consolidation. Each holder of ordinary shares and preference shares received one ordinary share or preference share for every four ordinary shares or preference shares held by such holder. The number of ordinary shares that may be acquired upon exercise of options or warrants or upon conversion of restricted share units was similarly reduced on a one-for-four basis, with a proportionate adjustment to the exercise or conversion price, as applicable. | |||||||
Nexvet Australia Pty Ltd | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Share consolidation, ratio | 0.8 | |||||||
Stockholders' Equity, Reverse Stock Split | In November 2014, the Company completed a four-for-five share consolidation. Each holder of ordinary shares and preference shares received four ordinary shares or four preference shares for every five ordinary shares or five preference shares held by such holder. The number of ordinary shares that may be acquired upon exercise of options or warrants or upon conversion of restricted share units was similarly reduced on a four-for-five basis, with a proportionate adjustment to the exercise or conversion price, as applicable. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, AUD in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2015AUDshares | Jun. 30, 2014USD ($)shares | Jun. 30, 2013USD ($)shares | May. 31, 2014$ / shares | Apr. 30, 2014$ / shares | |
Accounting Policies [Line Items] | ||||||||
Revenues | AUD | AUD 20 | |||||||
Other income recognized at percentage of qualifying expenditure | 43.50% | 43.50% | ||||||
Property plant and equipment depreciation methods | Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets. | Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets. | ||||||
Intangible assets amortization method | straight-line basis | straight-line basis | ||||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 | |||||
Gain (losses) from foreign currency translation | 4,151,000 | (375,000) | ||||||
Accumulated gain on foreign currency translation adjustments | $ (4,900,000) | $ (4,900,000) | 300,000 | |||||
Warrants exercise price | $ / shares | $ 8.625 | $ 7.50 | ||||||
Warrants exercisable date | 2019-05 | 2019-05 | ||||||
Warrants recorded as liabilities | $ 5,435,000 | |||||||
Warrants issued to purchase ordinary shares | shares | 0 | 0 | 1,766,998 | 0 | ||||
Milestone method revenue recognized | $ 0 | |||||||
Initial public offering | Common Stock | ||||||||
Accounting Policies [Line Items] | ||||||||
Proceeds from Initial Public Offering, Net | $ 38,000,000 | $ 38,000,000 | ||||||
Minimum | ||||||||
Accounting Policies [Line Items] | ||||||||
Intangible asset useful life | 1 year | 1 year | ||||||
Maximum | ||||||||
Accounting Policies [Line Items] | ||||||||
Intangible asset useful life | 3 years | 3 years | ||||||
Machinery and Equipment | Minimum | ||||||||
Accounting Policies [Line Items] | ||||||||
Estimated useful life of property plant and equipment | 3 years | 3 years | ||||||
Machinery and Equipment | Maximum | ||||||||
Accounting Policies [Line Items] | ||||||||
Estimated useful life of property plant and equipment | 20 years | 20 years | ||||||
Leasehold Improvements | ||||||||
Accounting Policies [Line Items] | ||||||||
Estimated useful life of property plant and equipment | 5 years | 5 years | ||||||
Property plant and equipment amortization methods | Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. | Leasehold improvements are amortized on the straight-line method over the shorter of the remaining lease term or estimated useful life of the asset. |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Assumptions Used to Estimate Fair Values of Warrants (Details) - Jun. 30, 2014 - $ / shares | Total |
Fair Value Disclosures [Abstract] | |
Fair value per ordinary share | $ 6.35 |
Risk free interest rate | 1.70% |
Expected term (in years) | 4 years |
Expected volatility | 75.00% |
Expected dividend yield | 0.00% |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property Plant And Equipment [Line Items] | |||
Less: Accumulated depreciation and amortization | $ (188) | $ (58) | |
Property, plant and equipment, net | 549 | 514 | $ 47 |
Computer Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | 89 | 68 | |
Property, plant and equipment, net | $ 56 | 57 | 3 |
Computer Equipment | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life of property plant and equipment | 3 years | ||
Computer Equipment | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life of property plant and equipment | 7 years | ||
Research and Development Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | $ 432 | 242 | |
Property, plant and equipment, net | $ 334 | 214 | 37 |
Research and Development Equipment | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life of property plant and equipment | 5 years | ||
Research and Development Equipment | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life of property plant and equipment | 10 years | ||
Office Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | $ 83 | 100 | |
Property, plant and equipment, net | $ 62 | 92 | $ 7 |
Office Equipment | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life of property plant and equipment | 5 years | ||
Office Equipment | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life of property plant and equipment | 20 years | ||
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | $ 133 | 162 | |
Property, plant and equipment, net | $ 97 | $ 151 | |
Estimated useful life of property plant and equipment | 5 years |
Property Plant and Equipment -
Property Plant and Equipment - Summary of Movement in Property Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Property Plant And Equipment [Line Items] | ||
Opening balance | $ 514 | $ 47 |
Additions | 294 | 512 |
Depreciation | (152) | (56) |
Exchange rate adjustment | (107) | 11 |
Closing balance | 549 | 514 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Opening balance | 57 | 3 |
Additions | 35 | 65 |
Depreciation | (25) | (11) |
Exchange rate adjustment | (11) | |
Closing balance | 56 | 57 |
Research and Development Equipment | ||
Property Plant And Equipment [Line Items] | ||
Opening balance | 214 | 37 |
Additions | 258 | 193 |
Depreciation | (86) | (31) |
Exchange rate adjustment | (52) | 15 |
Closing balance | 334 | 214 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Opening balance | 92 | 7 |
Additions | 1 | 94 |
Depreciation | (12) | (5) |
Exchange rate adjustment | (19) | (4) |
Closing balance | 62 | 92 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Opening balance | 151 | |
Additions | 160 | |
Depreciation | (29) | (9) |
Exchange rate adjustment | (25) | |
Closing balance | $ 97 | $ 151 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Finite Lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $ (2) | |
Intangible assets, net | $ 19 | $ 2 |
Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 1 year | |
Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 3 years | |
Computer software | ||
Finite Lived Intangible Assets [Line Items] | ||
Computer software | $ 21 | $ 2 |
Computer software | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 1 year | |
Computer software | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 3 years |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 1,027 | $ 502 |
Accrued professional fees | 361 | 355 |
Accrued research and development costs | 964 | 1,442 |
Accrued expenses | $ 2,352 | $ 2,299 |
Deferred Lease Incentive - Sche
Deferred Lease Incentive - Schedule of Deferred Lease Incentive (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred Lease [Abstract] | ||
Deferred lease incentive | $ 23 | $ 28 |
Deferred lease incentive | $ 61 | $ 103 |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants (Details) $ in Thousands | Jun. 30, 2014USD ($) |
Warrants And Rights Note Disclosure [Abstract] | |
Warrants | $ 5,435 |
Warrants - Additional Informati
Warrants - Additional Information (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||
May. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 30, 2014 | |
Class Of Warrant Or Right [Line Items] | |||||
Warrants issued to purchase ordinary shares | 0 | 1,766,998 | 0 | ||
Warrants exercise price | $ 8.625 | $ 7.50 | |||
Warrants contractual life | 5 years | ||||
Series B Preferred Stock | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants issued to purchase ordinary shares | 1,574,998 | ||||
Warrants exercise price | $ 8.625 | ||||
Financial Advisors | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants issued to purchase ordinary shares | 192,000 | ||||
Warrants exercise price | $ 7.50 |
Convertible Preference Shares -
Convertible Preference Shares - Additional Information (Details) - $ / shares | Jun. 30, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Jun. 30, 2014 |
Equity [Abstract] | |||||
Convertible preference shares, shares authorized | 12,000,000 | ||||
Convertible preference shares, nominal value per share | $ 0.01 | $ 0.125 | |||
Preference shares converted into ordinary shares | 5,937,160 | 5,937,160 | 16 |
Convertible Preference Shares51
Convertible Preference Shares - Schedule of Convertible Preference Shares (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 |
Class Of Stock [Line Items] | |||
Preference Shares, Outstanding | 5,937,160 | 5,937,138 | |
Preference Shares, Liquidation Preference | $ 67,651 | ||
Convertible preferred stock | $ 33,826 | ||
SIRPS Convertible Preference Shares | |||
Class Of Stock [Line Items] | |||
Preference Shares, Outstanding | 0 | 1,737,132 | |
Preference Shares, Liquidation Preference | $ 16,353 | ||
Convertible preferred stock | $ 8,177 | ||
Series B Convertible Preferred Stock | |||
Class Of Stock [Line Items] | |||
Preference Shares, Outstanding | 0 | 4,200,006 | |
Preference Shares, Liquidation Preference | $ 51,298 | ||
Convertible preferred stock | $ 25,649 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) | 12 Months Ended | ||||||||
Jun. 30, 2015$ / sharesshares | Jun. 30, 2014$ / sharesshares | Jun. 30, 2013shares | Jun. 30, 2015€ / sharesshares | Mar. 31, 2015shares | Feb. 28, 2015$ / sharesshares | Feb. 28, 2015€ / sharesshares | Nov. 30, 2014$ / sharesshares | Jun. 30, 2014€ / sharesshares | |
Class Of Stock [Line Items] | |||||||||
Euro deferred shares, shares authorized | 400 | 0 | 400 | 400 | 400 | 0 | |||
Euro deferred shares, nominal value per share | € / shares | € 100 | € 100 | € 100 | ||||||
Ordinary shares, shares authorized | 100,000,000 | 20,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 20,000,000 | |||
Ordinary shares, nominal value per share | $ / shares | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | |||||
Undesignated preferred shares , shares authorized | 10,000,000 | 10,000,000 | |||||||
Convertible preference shares, nominal value per share | $ / shares | $ 0.125 | $ 0.01 | |||||||
Convertible preference shares, shares authorized | 12,000,000 | 12,000,000 | |||||||
Ordinary shares, shares outstanding | 11,406,916 | 1,268,810 | 11,406,916 | 1,268,810 | |||||
Issuance of ordinary shares, shares | 37,938 | ||||||||
Preference shares, shares outstanding | 5,937,160 | 5,937,160 | |||||||
Preference shares converted into ordinary shares | 5,937,160 | 5,937,160 | 5,937,160 | 16 | |||||
Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Issuance of ordinary shares, shares | 4,176,903 | 4,424 | 534,545 | ||||||
Ordinary Shares Subject To Limited Recourse Loans | |||||||||
Class Of Stock [Line Items] | |||||||||
Ordinary shares, shares outstanding | 0 | 254,680 | 0 | 254,680 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Assets | ||
Cash | $ 52,033 | $ 30,041 |
Liabilities | ||
Warrants | 5,435 | |
Level 1 | ||
Assets | ||
Cash | $ 52,033 | 30,041 |
Level 3 | ||
Liabilities | ||
Warrants | $ 5,435 |
Fair Value Measurement - Reconc
Fair Value Measurement - Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis, Significant unobservable Inputs (Details) - Warrants - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 5,435 | |
Ending balance | $ 5,435 | |
Fair Value, Measurements, Recurring | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 5,435 | |
Issuances | 5,435 | |
Reclassification into shareholders’ equity | $ (5,435) | |
Ending balance | $ 5,435 |
Fair Value Measurement - Summ55
Fair Value Measurement - Summary of Significant Unobservable Inputs Related to Material Categories of Level 3 Assets and Liabilities (Details) - Jun. 30, 2014 - USD ($) $ in Thousands | Total |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Expected volatility | 75.00% |
Expected term (in years) | 4 years |
Level 3 | Warrants | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Fair Value | $ 5,435 |
Valuation technique | Binomial option-pricing model |
Expected term (in years) | 4 years |
Level 3 | Warrants | Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Expected volatility | 70.00% |
Level 3 | Warrants | Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Expected volatility | 80.00% |
Fair Value Measurement - Additi
Fair Value Measurement - Additional information (Details) - 12 months ended Jun. 30, 2015 - USD ($) $ in Millions | Total |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Warrant held for average years | 4 years |
Measurement with unobservable inputs for expected warrant fair value increase | $ 0.5 |
Measurement with unobservable inputs for expected warrant fair value increase by one year percentage | 10.00% |
Measurement with unobservable inputs for expected warrant fair value decrease | $ 0.7 |
Measurement with unobservable inputs for expected warrant fair value decrease by one year percentage | 12.00% |
Net Loss Per Share and Pro Fo57
Net Loss Per Share and Pro Forma Net Loss Per Share - Calculation of Net Loss Per Participating Securities (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share Basic And Diluted [Abstract] | |||||||||||
Net loss | $ (4,479) | $ (2,668) | $ (2,413) | $ (2,297) | $ (3,231) | $ (1,470) | $ (993) | $ (1,016) | $ (11,857) | $ (6,710) | $ (3,241) |
Weighted-average ordinary shares issued and outstanding—basic and diluted | 5,214,957 | 1,000,872 | 894,794 | ||||||||
Net loss per ordinary share—basic and diluted | $ (0.39) | $ (0.36) | $ (2.01) | $ (2.13) | $ (3.22) | $ (1.47) | $ (0.99) | $ (1.02) | $ (2.27) | $ (6.70) | $ (3.62) |
Net Loss Per Share and Pro Fo58
Net Loss Per Share and Pro Forma Net Loss Per Share - Ordinary Share Equivalents Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 2,601,301 | 8,203,836 | 1,056,503 |
Preferred Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 5,937,138 | 792,117 | |
Share-Based Awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 834,303 | 245,020 | |
Warrants | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 1,766,998 | 1,766,998 | |
Ordinary Shares Subject To Limited Recourse Loans | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 254,680 | 264,386 |
Share Based Awards - 2012 Emplo
Share Based Awards - 2012 Employee Share Option Plan - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | May. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Ordinary shares issued | 37,938 | ||||
Ordinary shares repurchased exercise price per share | $ 8.18 | $ 2.33 | $ 4.20 | ||
Share repurchase, shares | 145,069 | ||||
Dr. Gearing | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Loan amount | $ 200,000 | ||||
2012 Employee Share Option Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Ordinary shares issued | 264,386 | ||||
Repurchase ordinary shares issued, purchase price per share | $ 4.20 | $ 6.35 | |||
Limited recourse loan, repayment term | 30 days | ||||
Limited recourse loan | $ 0 | $ 1,000,000 | |||
Ordinary shares repurchased exercise price per share | $ 6.35 | ||||
New options expire period | 2018-02 | ||||
2012 Employee Share Option Plan | Dr. Heffernan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Loan amount | $ 300,000 | ||||
Share repurchase, shares | 52,040 | ||||
Share options to purchase ordinary shares | 52,040 | ||||
2012 Employee Share Option Plan | Dr. Gearing | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Loan amount | $ 300,000 | ||||
Share repurchase, shares | 46,372 | ||||
Share options to purchase ordinary shares | 46,372 |
Share Based Awards - 2013 Long
Share Based Awards - 2013 Long Term Incentive Plan - Additional Infromation (Details) | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015$ / shares | Nov. 30, 2014$ / sharesshares | Sep. 30, 2014$ / sharesshares | Nov. 30, 2013$ / sharesshares | Jun. 30, 2015$ / sharesshares | Jun. 30, 2014$ / sharesshares | Feb. 28, 2015$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share options to purchase ordinary shares | shares | 663,661 | 215,799 | |||||
Incentive awards, fair value per share of underlying ordinary shares | $ 7.115 | $ 5.15 | |||||
Ordinary shares, nominal value per share | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | ||
Share consolidation, ratio | 0.8 | ||||||
Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Incentive awards, fair value per share of underlying ordinary shares | 5 | ||||||
Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Incentive awards, fair value per share of underlying ordinary shares | $ 15 | ||||||
Employee Stock Option | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share options to purchase ordinary shares | shares | 141,792 | 16,800 | 215,799 | ||||
Incentive awards, fair value per share of underlying ordinary shares | $ 9.37 | $ 6.35 | $ 5.15 | ||||
Restricted Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted share units to acquire ordinary shares | shares | 16,427 | 21,240 | 29,214 | 57,947 | 29,214 | ||
Previously Reported Value | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Ordinary shares, nominal value per share | $ 0.10 | ||||||
2013 Long Term Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Ordinary share exercise price | $ 0.125 | $ 0.10 | $ 0 | ||||
Share options and restricted share units vesting description | Except for share options and restricted share units held by directors (which vested in November 2014), share options and restricted share units held by employees and consultants vest in three equal tranches in November 2014, November 2015 and November 2016 | ||||||
Vesting period of share options and restricted share units held by held by employees and consultants | 3 years | ||||||
2013 Long Term Incentive Plan | Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period of share options and restricted share units held by held by employees and consultants | 1 year | ||||||
2013 Long Term Incentive Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period of share options and restricted share units held by held by employees and consultants | 3 years |
Share Based Awards - 2015 Long
Share Based Awards - 2015 Long Term Incentive Plan - Additional Infromation (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015 | May. 31, 2015 | Nov. 30, 2014 | Sep. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Incentive awards, fair value per share of underlying ordinary shares | $ 7.115 | $ 5.15 | |||||
Ordinary shares issued | 37,938 | ||||||
Bonus Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Ordinary shares issued | 42,691 | ||||||
Ordinary shares issued per share | $ 0.125 | $ 0.125 | |||||
Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period of shares | 2,280 | ||||||
Employee Stock Option | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Incentive awards, fair value per share of underlying ordinary shares | $ 9.37 | $ 6.35 | $ 5.15 | ||||
Employee Stock Option | Employees | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share options to purchase ordinary shares | 360,000 | ||||||
Incentive awards, fair value per share of underlying ordinary shares | $ 5.93 | ||||||
Restricted Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted share units to acquire ordinary shares | 16,427 | 21,240 | 29,214 | 57,947 | 29,214 | ||
Restricted Stock | Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted share units to acquire ordinary shares | 20,280 | ||||||
Incentive awards, fair value per share of underlying ordinary shares | $ 6.99 | ||||||
Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Incentive awards, fair value per share of underlying ordinary shares | $ 5 | ||||||
Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Incentive awards, fair value per share of underlying ordinary shares | $ 15 | ||||||
2015 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,280,000 | ||||||
Percentage of shares issued under equity incentive plan | 4.00% | 4.00% | |||||
2015 Equity Incentive Plan | Employees | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Ordinary share exercise price | 15 | ||||||
2015 Equity Incentive Plan | Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Ordinary share exercise price | $ 0.125 | ||||||
2015 Equity Incentive Plan | Minimum | Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period of share options and restricted share units held by held by employees and consultants | 1 year | ||||||
2015 Equity Incentive Plan | Maximum | Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period of share options and restricted share units held by held by employees and consultants | 5 years |
Share Based Awards - Share Awar
Share Based Awards - Share Awards to Consultants or Advisors for Services Provided - Additional information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2013 | Aug. 31, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Issuance of ordinary shares, shares | 37,938 | ||||
Ordinary shares, shares issued | 11,406,916 | 1,268,810 | |||
Share-based compensation expense | $ 2,081,000 | $ 298,000 | $ 710,000 | ||
2012 Employee Share Option Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Issuance of ordinary shares, shares | 264,386 | ||||
Robert Gearing | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Research and development services | 48,000 | ||||
Share-based compensation expense | $ 22,000 | $ 26,000 | |||
Robert Gearing | 2012 Employee Share Option Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Ordinary shares, shares issued | 4,424 | 6,250 | |||
Consultants or advisors | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Issuance of ordinary shares, shares | 0 | ||||
Financial Advisors | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Financial advisor fees in ordinary shares | 8,849 | ||||
Ordinary shares issued per share | $ 5.18 |
Valuation of Share Awards - Est
Valuation of Share Awards - Estimated Fair Value of Share Options (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value per ordinary share | $ 7.115 | $ 5.15 | |
Risk free interest rate | 1.70% | 4.00% | |
Expected volatility | 80.00% | 80.00% | |
Expected dividend yield | 0.00% | 0.00% | |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value per ordinary share | $ 5 | ||
Expected term (in years) | 3 years | 5 years | |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value per ordinary share | $ 15 | ||
Expected term (in years) | 6 years | 10 years |
Valuation of Share Awards - Sum
Valuation of Share Awards - Summary of Share Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Shares Issuable Under Options, Outstanding | 470,479 | 264,386 | |
Shares Issuable Under Options, Granted | 663,661 | 215,799 | |
Shares Issuable Under Options, Exercised | (96,540) | ||
Shares Issuable Under Options, Ordinary shares no longer subject to limited recourse loans | (109,611) | (9,706) | |
Shares Issuable Under Options, Repurchased | (145,069) | ||
Shares Issuable Under Options, Expired or forfeited | (6,289) | ||
Shares Issuable Under Options, Outstanding | 776,631 | 470,479 | 264,386 |
Shares Issuable Under Options, vested and expected to vest | 159,937 | 6,195 | |
Weighted Average Exercise Price, Outstanding | $ 2.33 | $ 4.20 | |
Weighted Average Exercise Price, Granted | 9.55 | 0.125 | |
Weighted Average Exercise Price, Exercised | 0.125 | ||
Weighted Average Exercise Price, Ordinary shares no longer subject to limited recourse loans | 4.20 | 4.20 | |
Weighted Average Exercise Price, Repurchased | 6.35 | ||
Weighted Average Exercise Price, expired or forfeited | 0.125 | ||
Weighted Average Exercise Price, Outstanding | 8.18 | 2.33 | $ 4.20 |
Weighted Average Exercise Price, Options vested and expected to vest | $ 5.77 | $ 0.125 | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 5 years | 5 years | 5 years |
Weighted-Average Remaining Contractual Term, Granted | 5 years | 4 years 9 months | |
Weighted-Average Remaining Contractual Term, Exercised | 5 years | ||
Weighted-Average Remaining Contractual Term, Ordinary shares no longer subject to limited recourse loans | 5 years | 5 years | |
Weighted-Average Remaining Contractual Term, Repurchased | 5 years | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 5 years | 5 years | 5 years |
Aggregate Intrinsic Value, Outstanding | $ 1,797 | $ 708 | |
Aggregate Intrinsic Value, Granted | 2,355 | 1,115 | |
Aggregate Intrinsic Value, Exercised | (501) | ||
Aggregate Intrinsic Value, Ordinary shares no longer subject to limited recourse loans | (460) | (26) | |
Aggregate Intrinsic Value, Repurchased | (222) | ||
Aggregate Intrinsic Value, Expired or forfeited | (45) | ||
Aggregate Intrinsic Value, Outstanding | $ 2,924 | $ 1,797 | $ 708 |
Valuation of Share Awards - S65
Valuation of Share Awards - Summary of Restricted Share Unit Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2014 | Sep. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Restricted Share Units, Outstanding | 29,214 | ||||
Restricted share units to acquire ordinary shares | 16,427 | 21,240 | 29,214 | 57,947 | 29,214 |
Number of Restricted Share Units, Converted | (29,489) | ||||
Number of Restricted Share Units, Outstanding | 57,672 | 29,214 | |||
Number of Restricted Share Units , Converted and expected to convert | 4,400 | ||||
Weighted Average Grant Date Fair Value, Outstanding | $ 5.15 | ||||
Weighted Average Grant Date Fair Value, Granted | 7.83 | $ 5.15 | |||
Weighted Average Grant Date Fair Value, Converted | 5.85 | ||||
Weighted Average Grant Date Fair Value, Outstanding | 7.48 | $ 5.15 | |||
Weighted Average Grant Date Fair Value, Converted and expected to convert | $ 9.19 | ||||
Weighted Average Remaining Contractual Term, Outstanding | 2 years 1 month 6 days | 2 years 4 months 24 days | |||
Weighted Average Remaining Contractual Term, Granted | 2 years 1 month 6 days | 2 years 4 months 24 days | |||
Aggregate Intrinsic Value, Outstanding | $ 151 | ||||
Aggregate Intrinsic Value, Granted | 453 | $ 151 | |||
Aggregate Intrinsic Value, Converted | (172) | ||||
Aggregate Intrinsic Value, Outstanding | $ 432 | $ 151 |
Valuation of Share Awards - Sha
Valuation of Share Awards - Share Based Compensation Expense Related to Share Options and Restricted Share Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Recognized share-based compensation expense | $ 2,081 | $ 298 | $ 710 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Recognized share-based compensation expense | 756 | 74 | 298 |
General and Administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Recognized share-based compensation expense | $ 1,325 | $ 224 | $ 412 |
Valuation of Share Awards - Add
Valuation of Share Awards - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Unrecognized share-based compensation expenses share options and restricted shares | $ 3.1 | $ 0.9 |
Unrecognized compensation expense weighted average period | 4 years | 2 years 3 months 18 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating lease expiration period | 5 years | ||
Operating lease commitments | $ 500,000 | $ 400,000 | |
Rent expense | 200,000 | 100,000 | $ 22,000 |
Build-out incentive | $ 26,000 | 11,000 | 0 |
Rental commitments | $ 0 | ||
Unexpired term of lease | 60 months | ||
Contracts with suppliers for goods and services | $ 680,000 | $ 1,670,000 |
Commitments and Contingencies69
Commitments and Contingencies - Summary of Future Payments Non-Cancellable Operating Leases and Purchase Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating leases | $ 352 | $ 475 |
Operating leases Less than1 Year | 109 | 97 |
Operating leases 1-3Years | 190 | 205 |
Operating leases 3-5Years | 53 | 173 |
Purchase obligations | 680 | 1,670 |
Purchase obligations next 12 months | 680 | 1,670 |
Total contractual | 1,032 | 2,145 |
Total contractual, next 12 months | 789 | 1,767 |
Total contractual, 1-3 years | 190 | 205 |
Total contractual, 3-5 years | $ 53 | $ 173 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Line Items] | ||||
Provision for income taxes | $ 0 | |||
Deferred tax assets | 2,205,000 | $ 1,737,000 | ||
Tax loss carry forwards | 2,578,000 | 1,234,000 | ||
Decrease in deferred tax assets with corresponding valuation allowance relating to tax loss carry forwards | $ 4,500,000 | 2,900,000 | $ 800,000 | |
Unrecognized tax benefits | 0 | 0 | ||
Australian Income Tax | ||||
Income Taxes [Line Items] | ||||
Tax loss carry forwards | $ 7,200,000 | $ 4,000,000 | ||
Corporate tax rate | 28.50% | 30.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Income Tax Rate to the Effective Income Tax Rate (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | $ 1,482,000 | $ 1,988,000 | $ 972,000 |
Adjustment for foreign tax rates | 1,913,000 | ||
Non-assessable income | 1,722,000 | 703,000 | (415,000) |
Non-deductible expenses | (3,669,000) | (1,687,000) | (281,000) |
Change in deferred tax asset valuation allowance | (1,344,000) | $ (1,004,000) | $ (276,000) |
Change in tax rates | (104,000) | ||
Effective income tax rate | $ 0 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Deferred tax assets: | ||||
Net operation loss carryforward | $ 2,578 | $ 1,234 | ||
Accrued expenses and deferred lease incentive | 218 | 503 | ||
Exchange (gain)/loss | (591) | |||
Net deferred tax assets | 2,205 | 1,737 | ||
Valuation allowance | $ (2,205) | $ (1,737) | $ (479) | $ (204) |
Income Taxes - Changes in the V
Income Taxes - Changes in the Valuation Allowance for Deferred Tax Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Valuation allowance as of beginning of year | $ 1,737 | $ 479 | $ 204 |
Increases recorded to income tax provision | 468 | 1,258 | 275 |
Valuation allowance as of end of year | $ 2,205 | $ 1,737 | $ 479 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 28, 2013 | May. 31, 2012 | |
Related Party Transaction [Line Items] | |||||
General and administrative | $ 10,191,000 | $ 4,426,000 | $ 2,103,000 | ||
Ordinary shares, shares issued | 11,406,916 | 1,268,810 | |||
Research and development | $ 9,845,000 | $ 5,617,000 | 2,722,000 | ||
Ridge Biotechnology Consulting L L C | |||||
Related Party Transaction [Line Items] | |||||
General and administrative | 200,000 | 100,000 | 51,000 | ||
Payable to related party | 13,000 | 19,000 | |||
Robert Gearing | |||||
Related Party Transaction [Line Items] | |||||
Research and development services | 48,000 | ||||
Biocomm Squared Pty Ltd | |||||
Related Party Transaction [Line Items] | |||||
Payable to related party | 17,000 | 23,000 | |||
Research and development | 200,000 | $ 200,000 | $ 100,000 | ||
Dr. Gearing | |||||
Related Party Transaction [Line Items] | |||||
Loan amount | $ 200,000 | ||||
Interest rate | 15.00% | ||||
Interest payable | $ 21,000 | ||||
2012 Employee Share Option Plan | Robert Gearing | |||||
Related Party Transaction [Line Items] | |||||
Ordinary shares, shares issued | 44,240 | 6,250 | |||
2012 Employee Share Option Plan | Dr. Gearing | |||||
Related Party Transaction [Line Items] | |||||
Loan amount | 300,000 | ||||
Dr Paul Wood | |||||
Related Party Transaction [Line Items] | |||||
Research and development services | 23,000 | $ 23,000 | $ 8,000 | ||
Peter Howard | |||||
Related Party Transaction [Line Items] | |||||
Research and development services | $ 28,000 | $ 30,000 |
Selected Quarterly Financial 75
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating expenses | $ (4,904) | $ (5,109) | $ (4,666) | $ (5,357) | $ (3,878) | $ (2,693) | $ (1,664) | $ (1,808) | $ (20,036) | $ (10,043) | $ (4,825) |
Net loss attributable to ordinary shareholders | $ (4,479) | $ (2,668) | $ (2,413) | $ (2,297) | $ (3,231) | $ (1,470) | $ (993) | $ (1,016) | $ (11,857) | $ (6,710) | $ (3,241) |
Net loss per share attributable to ordinary shareholders—basic and diluted | $ (0.39) | $ (0.36) | $ (2.01) | $ (2.13) | $ (3.22) | $ (1.47) | $ (0.99) | $ (1.02) | $ (2.27) | $ (6.70) | $ (3.62) |