Evofem Biosciences (EVFM) 10-Q 11 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	NEOT
Entity Registrant Name	Neothetics, Inc.
Entity Central Index Key	1,618,835
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		13,831,747

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 9,749,756	$ 11,477,852
Prepaid expenses and other current assets	853,592	1,029,546
Total current assets	10,603,348	12,507,398
Restricted cash	93,382	200,000
Property and equipment, net	36,452	109,320
Total assets	10,733,182	12,816,718
Current liabilities:
Accounts payable	955,310	503,739
Other accrued expenses	742,427	398,453
Total current liabilities	1,697,737	902,192
Stockholders’ equity:
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.0001 par value; 300,000,000 shares authorized; 13,831,747 and 13,828,496 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	1,383	1,382
Additional paid-in capital	137,898,053	137,763,499
Accumulated deficit	(128,863,991)	(125,850,355)
Total stockholders’ equity	9,035,445	11,914,526
Total liabilities and stockholders’ equity	$ 10,733,182	$ 12,816,718

Condensed Balance Sheets (Unau3

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	13,831,747	13,828,496
Common stock, shares outstanding	13,831,747	13,828,496

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating expenses:
Research and development	$ 1,549,912	$ 3,260,298
General and administrative	1,476,259	2,520,871
Total operating expenses	3,026,171	5,781,169
Loss from operations	(3,026,171)	(5,781,169)
Interest income	12,535	19,737
Interest expense		(265,124)
Net loss	$ (3,013,636)	$ (6,026,556)
Net loss per share, basic and diluted	$ (0.22)	$ (0.44)
Weighted average shares used to compute basic and diluted net loss per share	13,807,622	13,757,582

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net loss	$ (3,013,636)	$ (6,026,556)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	11,663	17,776
Loss on disposal of assets	55,705
Noncash interest expense on debt		39,793
Share-based compensation	131,096	714,687
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	175,954	901,697
Accounts payable and accrued expenses	795,545	(3,253,731)
Net cash used in operating activities	(1,843,673)	(7,606,334)
Investing activities
Proceeds from sale of property and equipment	5,500
Net cash provided by investing activities	5,500
Financing activities
Partial prepayment resulting in loan extinguishment		(5,514,058)
Principal payments on bank loan		(485,942)
Loan amendment costs		(52,400)
Proceeds from issuance of common stock from exercise of options	3,459
Net cash provided by (used in) financing activities	3,459	(6,052,400)
Net decrease in cash, cash equivalents and restricted cash	(1,834,714)	(13,658,734)
Cash, cash equivalents and restricted cash, beginning of period	11,677,852	37,948,603
Cash, cash equivalents and restricted cash, end of period	$ 9,843,138	24,289,869
Supplemental disclosure of cash flow activity
Cash paid for interest		$ 230,924

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	1. Organization and Basis of Presentation Neothetics, Inc. (Neothetics or the Company) was incorporated in Delaware on February 1, 2007, under the name Lipothera, Inc. In September 2008, the Company changed its name to Lithera, Inc. In August 2014, the Company changed its name to Neothetics, Inc. The Company is a clinical-stage specialty pharmaceutical company developing therapeutics for the aesthetic market. The Company’s lead product candidate is a novel injectable treatment for localized fat reduction and body contouring and the current focus is on the submental region for double chin. As of March 31, 2017, the Company has devoted substantially all of its efforts to product development, raising capital, and building infrastructure and has not realized revenues from its planned principal operations. The accompanying unaudited financial statements of the Company should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K (Annual Report) filed with the Securities and Exchange Commission (SEC). The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The Company has incurred significant net losses from its operations since its inception and has an accumulated deficit of $129.0 million as of March 31, 2017. In the first quarter of 2017, the Company used $1.8 million of cash in operations. At March 31, 2017, the Company had cash and cash equivalents of $9.7 million. Management expects operating losses and negative cash flows to continue for at least the next year as the Company continues to incur costs related to ongoing Phase 2 proof of concept trial and any future clinical trials to further the development of LIPO-202. Based on the Company’s operating plans, management believes the Company’s cash and cash equivalents will not be sufficient to fund its operations beyond April 2018. As a result, there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements for the quarter ended March 31, 2017 are issued. Management’s ability to continue as a going concern is dependent upon its ability to raise additional funding. Management intends to raise additional capital through public or private equity offerings or collaboration, licensing, or other similar arrangement. However, the Company may not be able to secure such financing in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity to raise additional funds, its existing stockholders may experience dilution, and the new equity may have rights, preferences and privileges senior to those of the Company’s existing stockholders. If the Company raises additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to its potential products or proprietary technologies, or grant licenses on terms that are not favorable to the Company. Without additional funds, the Company may be forced to delay, scale back or eliminate some of our research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue its operations. If any of these events occur, the Company’s ability to achieve the development and commercialization goals would be adversely affected. The financial statements have been prepared on a going concern basis and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that may result from the outcome of this uncertainty.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of 90 days or less at the date of purchase to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. Restricted Cash Restricted cash as of March 31, 2017 represents a $93,382 restricted money market account used to secure the standby letter of credit issued in connection with a lease amendment. The restriction will lapse when the standby letter of credit expires (see Note 5 “Debt”). The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statement of cash flows. March 31, 2017 2016 Cash and cash equivalents $ 9,749,756 $ 24,089,869 Restricted cash 93,382 200,000 Total cash, cash equivalents and restricted cash $ 9,843,138 $ 24,289,869 Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risk on its cash due to the financial position of the depository institution in which those deposits are held. Fair Value of Financial Instruments The carrying amounts of prepaid and other current assets, accounts payable and accrued expenses are reasonable estimates of their fair value because of the short maturity of these items. Property and Equipment Property and equipment, which primarily consist of office furniture and equipment and computer equipment, are stated at cost and depreciated over the estimated useful lives of the assets (three to five years) using the straight-line method. Impairment of Long-Lived Assets Long-lived assets consist primarily of property and equipment. An impairment loss is recorded if and when events and circumstances indicate that assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. While the Company's current and historical operating losses and negative cash flows are indicators of impairment, management believes that future cash flows to be received support the carrying value of its long-lived assets and, accordingly, has not recognized any impairment losses since inception. Research and Development Costs Research and development expenses consist primarily of salaries and related overhead expenses, fees paid to consultants and contract research organizations, costs related to acquiring and manufacturing clinical trial materials, and costs related to compliance with regulatory requirements. All research and development costs are charged to expense as incurred. Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and the tax reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Valuation allowances are recorded when the realizability of such deferred tax assets is not more likely than not. The guidance on accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. The Company has not recognized interest and penalties in the balance sheets or statements of operations. The Company is subject to taxation in the U.S. and state jurisdictions. The Company’s tax years from inception are subject to examination by the United States and California authorities due to the carryforwards of unutilized net operating losses (NOLs) and research and development credits. Share-Based Compensation Share-based compensation expense for stock option grants, restricted stock awards and employee stock purchase plan shares is recorded at the estimated fair value of the award as of the grant date and is recognized as expense on a straight-line basis over the requisite service period of the stock-based award. The estimation of stock options, restricted stock awards and employee stock purchase plan fair value requires management to make estimates and judgments about, among other things, employee exercise behavior, forfeiture rates and volatility of the Company’s common stock. The judgments directly affect the amount of compensation expense that will be recognized. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding during the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities, which include warrants and outstanding stock options and restricted stock awards under the stock compensation plans, have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive. March 31, 2017 2016 Warrants for common stock 71,257 71,257 Common stock options and restricted stock awards issued and outstanding 1,236,406 1,120,578 1,307,663 1,191,835 Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases. ASU 2016-02 requires that lessees recognize assets and liabilities for the rights and obligations for leases with a lease term of more than one year. The amendments in this ASU are effective for annual periods ending after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of adoption on its financial statements. In March 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payments, including accounting for income taxes, forfeitures, statutory tax withholding requirements, and classification on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016. Early adoption is permitted. The Company is evaluating the impact of adoption on its financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. This pronouncement gives guidance to clarify how certain cash receipts and payments should be presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the timing of adoption of this guidance and the impact of the adoption of this guidance on its financial statements. In November 2016, the Financial Accounting Standards Board (the “FASB) issued Accounting Standards Update (or “ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption of this guidance did not have an impact on our financial position or results of operations.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts payable, accrued expenses, including warrants issued in connection with financing arrangements, and long-term debt. Fair value estimates of these instruments are made at a specific point in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. The carrying amount of cash and cash equivalents, accounts payable, and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of these instruments. The Company believes that the fair value of long-term debt approximates its carrying value based on the borrowing rates currently available to the Company for loans with similar terms. The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers or sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance prioritizes three levels of inputs into the following hierarchy: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 are as follows: Fair Value Measurements at Reporting Date Using Balance as of March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market fund (1) $ 9,749,756 $ 9,749,756 $ — $ — Total assets $ 9,749,756 $ 9,749,756 $ — $ — (1) Included as a component of cash and cash equivalents on accompanying balance sheet. Fair Value Measurements at Reporting Date Using Balance as of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market fund (1) $ 11,477,852 $ 11,477,852 $ — $ — Total assets $ 11,477,852 $ 11,477,852 $ — $ — (1) Included as a component of cash and cash equivalents on accompanying balance sheet.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2017
Property Plant And Equipment [Abstract]
Property and Equipment	4. Property and Equipment Property and equipment consist of the following: March 31, December 31, 2017 2016 Office furniture and equipment $ 100,577 $ 254,049 Less accumulated depreciation and amortization (64,125 ) (144,729 ) $ 36,452 $ 109,320

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	5. Debt Loans In February 2010, and as amended during 2012, the Company entered into a loan and security agreement (2010 Loan and Security Agreement) with Silicon Valley Bank (SVB), for borrowings of $3,750,000, collateralized by all assets of the Company. In connection with the borrowings, the Company issued warrants to the bank for the purchase of a total of 64,865 shares of Series B convertible preferred stock and warrants to purchase 75,000 shares of Series C convertible preferred stock. Effective upon the IPO, this was converted to a warrant to purchase 24,419 shares of common stock at a weighted average exercise price of $9.90 and expire ten years from the date of issuance. The 2010 Loan and Security Agreement was fully paid off in June 2014. In June 2014, the Company entered into a Loan and Security Agreement (Loan Agreement) with Hercules Technology Growth Capital Inc. that provided for borrowings up to $10.0 million available to the Company in two tranches. Upon closing of the Loan Agreement, the Company borrowed $4.0 million. In October 2014, the Company entered into the first amendment of the Loan Agreement and borrowed the remaining $6.0 million available under the agreement. In connection with the Loan Agreement, in June 2014, the Company issued warrants to purchase shares of Series C convertible preferred stock equal to 4% of the amount advanced under the loan. Effective upon the IPO, this was converted to a warrant to purchase 46,838 shares of common stock at $8.54, which expires eight years after the date of issuance. The fair value of the warrants issued was $207,429, based on the fair value of such Series C warrants at the date of issuance. The warrants’ fair value and financing fees of approximately $133,000 were recorded as a debt discount. In March 2016, the Company entered into the second amendment of the Loan Agreement that provided for a prepayment of the outstanding loan carrying amount of $5.5 million with a prepayment fee of $110,000. In connection with the second amendment, the Company re-priced the outstanding warrants to purchase 46,838 shares of common stock at a new exercise price of $0.62, which expire in September 2022 unless exercised prior to such expiration date. The Company recorded a debt discount of $9,417 associated with the fair value of the warrants issued in connection with the amendment. In addition, the Company incurred loan amendment fees and legal fees of $52,400, which the Company recorded as a debt discount. In September 2016, the Company prepaid the remaining outstanding balance under the Loan Agreement at a carrying amount of $4.0 million with a prepayment fee of $120,000 and an end of term fee of $300,000. Accordingly, the Loan Agreement was terminated on September 23, 2016. Upon termination of the Loan Agreement, the prepayment fees of $230,000 and unamortized end of term fee of $260,000 were recorded as interest expense. From June 2014 through payoff in September 2016, the Company paid interest equal to the greater of either 9.0%, plus the Prime Rate as reported in The Wall Street Journal, less 3.25% or 9.0%. The Company recorded total interest expense of $0 and $265,124 related to the Loan Agreement for the three months end March 31, 2017 and 2016, respectively. Letter of Credit In January 2015, the Company executed a lease amendment with LJ Gateway, LLC for new office space. In connection with this lease amendment the Company issued a stand-by letter of credit in the amount of $200,000 in lieu of a security deposit. Pursuant to the terms set forth in the lease amendment, as of March 31, 2017, the stand-by letter of credit was reduced to $93,382. The standby letter of credit is secured by a restricted money market account. The terms of the standby letter of credit expire in May 2020 and are subject to automatic yearly renewal prior to this date.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders? Equity	6. Stockholders’ Equity Warrants As of March 31, 2017, warrants to purchase 71,257 shares of common stock remain outstanding, of which 24,419 warrants to purchase shares of common stock are at a weighted average exercise price of $9.90 and 46,838 warrants to purchase shares of common stock are at an exercise price of $0.62. Common Stock On December 1, 2015, the Company entered into a Controlled Equity Offering Sales Agreement, or Sales Agreement, with Cantor Fitzgerald, as a sales agent pursuant to which the Company may offer and sell from time to time, through Cantor Fitzgerald shares of Neothetics common stock, par value $0.0001 per share, having an aggregate offering price of up to $20.0 million. The minimum share price for this Controlled Equity Offering is selected at the discretion of the board of directors. Through March 31, 2017, no shares of common stock have been sold pursuant to this Sales Agreement . Stock Compensation Plans The following table summarizes the Company’s stock compensation plan activity for the three months ended March 31, 2017: Options Outstanding Weighted Average Exercise Price Outstanding and exercisable at December 31, 2016 871,203 $ 2.95 Granted 370,000 $ 1.43 Exercised (3,251 ) $ 1.06 Forfeited (1,546 ) $ 2.96 Outstanding and exercisable at March 31, 2017 1,236,406 $ 2.50 The Company recognized non-cash share-based compensation expense related to its 2014 Employee Stock Purchase Plan, restricted stock awards and stock options granted to employees and directors as follows: Three Months Ended March 31, 2017 2016 General and administrative $ 78,186 $ 672,310 Research and development 52,910 42,377 $ 131,096 $ 714,687 Common Stock Reserved for Future Issuance The following shares of common stock are reserved for future issuance at March 31, 2017: Warrants issued and outstanding 71,257 Stock options issued and outstanding 1,236,406 Authorized for future awards under stock compensation plans 2,460,765 Employee Stock Purchase Plan 574,460 4,342,888

Commitments

Commitments	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments	7. Commitments Operating Leases The Company entered into a noncancelable operating lease for its facilities on January 20, 2015. The lease expires in March 2020. On January 31, 2017, the Company entered into an Eleventh Amendment to the Lease with LJ Gateway Office LLC. Concurrent with entering into the Lease Amendment, the Company entered into a Sublease with Abacus Data Systems, Inc. (“Abacus”) providing for the sublease of approximately 11,107 rentable square feet. This Lease Amendment provides for additional space consisting of approximately 3,580 square feet located at Suite No. 250, 9171 Towne Centre Drive, San Diego California, which the Company occupies as its headquarters. Upon occurrence of Abacus retaining possession of the original premises in February 2017, Abacus received rent abatement for months one, three, and four as well as a discount of 50% off the base rent for months five through nine. Abacus paid the Company a base rent of $27,768 for the second month’s rent and $30,317 security deposit. The base rent will increase by three percent on each annual anniversary. The Company has recorded the rental income collected or accrued under the sublease as a reduction of rent expense. Rent expense and sublease rental income for the three months ended March 31, 2017 were $94,762 and $39,193, respectively. The following table summarizes the minimum lease payments and sublease receipts under the lease agreements: Lease Payments Sublease Receipts 2017 $ 391,716 $ 124,956 2018 410,848 342,374 2019 431,507 352,645 2020 109,293 90,143 2021 — — Total $ 1,343,364 $ 910,118

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of 90 days or less at the date of purchase to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts.
Restricted Cash	Restricted Cash Restricted cash as of March 31, 2017 represents a $93,382 restricted money market account used to secure the standby letter of credit issued in connection with a lease amendment. The restriction will lapse when the standby letter of credit expires (see Note 5 “Debt”). The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statement of cash flows. March 31, 2017 2016 Cash and cash equivalents $ 9,749,756 $ 24,089,869 Restricted cash 93,382 200,000 Total cash, cash equivalents and restricted cash $ 9,843,138 $ 24,289,869
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risk on its cash due to the financial position of the depository institution in which those deposits are held.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of prepaid and other current assets, accounts payable and accrued expenses are reasonable estimates of their fair value because of the short maturity of these items.
Property and Equipment	Property and Equipment Property and equipment, which primarily consist of office furniture and equipment and computer equipment, are stated at cost and depreciated over the estimated useful lives of the assets (three to five years) using the straight-line method.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets consist primarily of property and equipment. An impairment loss is recorded if and when events and circumstances indicate that assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. While the Company's current and historical operating losses and negative cash flows are indicators of impairment, management believes that future cash flows to be received support the carrying value of its long-lived assets and, accordingly, has not recognized any impairment losses since inception.
Research and Development Costs	Research and Development Costs Research and development expenses consist primarily of salaries and related overhead expenses, fees paid to consultants and contract research organizations, costs related to acquiring and manufacturing clinical trial materials, and costs related to compliance with regulatory requirements. All research and development costs are charged to expense as incurred.
Income Taxes	Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and the tax reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Valuation allowances are recorded when the realizability of such deferred tax assets is not more likely than not. The guidance on accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. The Company has not recognized interest and penalties in the balance sheets or statements of operations. The Company is subject to taxation in the U.S. and state jurisdictions. The Company’s tax years from inception are subject to examination by the United States and California authorities due to the carryforwards of unutilized net operating losses (NOLs) and research and development credits.
Share-Based Compensation	Share-Based Compensation Share-based compensation expense for stock option grants, restricted stock awards and employee stock purchase plan shares is recorded at the estimated fair value of the award as of the grant date and is recognized as expense on a straight-line basis over the requisite service period of the stock-based award. The estimation of stock options, restricted stock awards and employee stock purchase plan fair value requires management to make estimates and judgments about, among other things, employee exercise behavior, forfeiture rates and volatility of the Company’s common stock. The judgments directly affect the amount of compensation expense that will be recognized.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding during the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities, which include warrants and outstanding stock options and restricted stock awards under the stock compensation plans, have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive. March 31, 2017 2016 Warrants for common stock 71,257 71,257 Common stock options and restricted stock awards issued and outstanding 1,236,406 1,120,578 1,307,663 1,191,835
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases. ASU 2016-02 requires that lessees recognize assets and liabilities for the rights and obligations for leases with a lease term of more than one year. The amendments in this ASU are effective for annual periods ending after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of adoption on its financial statements. In March 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payments, including accounting for income taxes, forfeitures, statutory tax withholding requirements, and classification on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016. Early adoption is permitted. The Company is evaluating the impact of adoption on its financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. This pronouncement gives guidance to clarify how certain cash receipts and payments should be presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the timing of adoption of this guidance and the impact of the adoption of this guidance on its financial statements. In November 2016, the Financial Accounting Standards Board (the “FASB) issued Accounting Standards Update (or “ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Adoption of this guidance did not have an impact on our financial position or results of operations.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statement of cash flows. March 31, 2017 2016 Cash and cash equivalents $ 9,749,756 $ 24,089,869 Restricted cash 93,382 200,000 Total cash, cash equivalents and restricted cash $ 9,843,138 $ 24,289,869
Summary of Outstanding Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share	The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive. March 31, 2017 2016 Warrants for common stock 71,257 71,257 Common stock options and restricted stock awards issued and outstanding 1,236,406 1,120,578 1,307,663 1,191,835

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 are as follows: Fair Value Measurements at Reporting Date Using Balance as of March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market fund (1) $ 9,749,756 $ 9,749,756 $ — $ — Total assets $ 9,749,756 $ 9,749,756 $ — $ — (1) Included as a component of cash and cash equivalents on accompanying balance sheet. Fair Value Measurements at Reporting Date Using Balance as of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market fund (1) $ 11,477,852 $ 11,477,852 $ — $ — Total assets $ 11,477,852 $ 11,477,852 $ — $ — (1) Included as a component of cash and cash equivalents on accompanying balance sheet.

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property Plant And Equipment [Abstract]
Summary of Property and Equipment	Property and equipment consist of the following: March 31, December 31, 2017 2016 Office furniture and equipment $ 100,577 $ 254,049 Less accumulated depreciation and amortization (64,125 ) (144,729 ) $ 36,452 $ 109,320

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Summary of Stock Compensation Plan Activity	The following table summarizes the Company’s stock compensation plan activity for the three months ended March 31, 2017: Options Outstanding Weighted Average Exercise Price Outstanding and exercisable at December 31, 2016 871,203 $ 2.95 Granted 370,000 $ 1.43 Exercised (3,251 ) $ 1.06 Forfeited (1,546 ) $ 2.96 Outstanding and exercisable at March 31, 2017 1,236,406 $ 2.50
Summary of Recognized Non-Cash Share-Based Compensation Expense	The Company recognized non-cash share-based compensation expense related to its 2014 Employee Stock Purchase Plan, restricted stock awards and stock options granted to employees and directors as follows: Three Months Ended March 31, 2017 2016 General and administrative $ 78,186 $ 672,310 Research and development 52,910 42,377 $ 131,096 $ 714,687
Summary of Common Stock Reserved for Future Issuance	The following shares of common stock are reserved for future issuance at March 31, 2017: Warrants issued and outstanding 71,257 Stock options issued and outstanding 1,236,406 Authorized for future awards under stock compensation plans 2,460,765 Employee Stock Purchase Plan 574,460 4,342,888

Commitments (Tables)

Commitments (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Summary of Minimum Lease Payments and Sublease Receipts Under the Lease Agreements	The following table summarizes the minimum lease payments and sublease receipts under the lease agreements: Lease Payments Sublease Receipts 2017 $ 391,716 $ 124,956 2018 410,848 342,374 2019 431,507 352,645 2020 109,293 90,143 2021 — — Total $ 1,343,364 $ 910,118

Organization and Basis of Pre19

Organization and Basis of Presentation - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Organization And Basis Of Presentation [Line Items]
Accumulated deficit	$ (128,863,991)		$ (125,850,355)
Cash used in operations	(1,843,673)	$ (7,606,334)
Cash and cash equivalents	$ 9,749,756	$ 24,089,869	$ 11,477,852
DELAWARE
Organization And Basis Of Presentation [Line Items]
Date of incorporation	Feb. 1, 2007

Summary of Significant Accoun20

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Summary Of Significant Accounting Policies [Line Items]
Restricted cash	$ 93,382	$ 200,000	$ 200,000
Impairment of long-lived assets	0
Interest and penalties related to income tax	$ 0
Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of the assets	3 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of the assets	5 years

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Cash Cash Equivalents And Restricted Cash [Abstract]
Cash and cash equivalents	$ 9,749,756	$ 11,477,852	$ 24,089,869
Restricted cash	93,382	200,000	200,000
Total cash, cash equivalents and restricted cash	$ 9,843,138	$ 11,677,852	$ 24,289,869	$ 37,948,603

Summary of Significant Accoun22

Summary of Significant Accounting Policies - Summary of Outstanding Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	1,307,663	1,191,835
Warrants for Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	71,257	71,257
Common Stock Options and Restricted Stock Awards Issued and Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	1,236,406	1,120,578

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets	$ 9,749,756	$ 11,477,852
Money market fund
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets	9,749,756	11,477,852
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets	9,749,756	11,477,852
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market fund
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets	$ 9,749,756	$ 11,477,852

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Abstract]
Office furniture and equipment	$ 100,577	$ 254,049
Less accumulated depreciation and amortization	(64,125)	(144,729)
Property and equipment, net	$ 36,452	$ 109,320

Debt - Additional Information (

Debt - Additional Information (Details)	Sep. 23, 2016USD ($)	Sep. 30, 2016USD ($)	Mar. 31, 2016USD ($)$ / sharesshares	Oct. 31, 2014USD ($)	Jun. 30, 2014USD ($)Tranche$ / sharesshares	Feb. 28, 2010USD ($)$ / sharesshares	Mar. 31, 2017USD ($)shares	Mar. 31, 2016USD ($)$ / sharesshares	Sep. 30, 2016	Jan. 31, 2015USD ($)
Debt Instrument [Line Items]
Warrants issued and outstanding | shares							71,257
Prepayment of outstanding loan carrying amount								$ 5,514,058
Interest expense								265,124
Stand-by Letter of Credit | LJ Gateway, LLC
Debt Instrument [Line Items]
Line of credit							$ 93,382			$ 200,000
Line of credit facility, expiration date							2020-05
2010 Loan and Security Agreement | Silicon Valley Bank
Debt Instrument [Line Items]
Line of credit facility collateralized						$ 3,750,000
Warrants issued and outstanding | shares						24,419
Warrant exercise price per share | $ / shares						$ 9.90
Warrant expiration period from date of issuance						10 years
2010 Loan and Security Agreement | Silicon Valley Bank | Series B Convertible Preferred Stock
Debt Instrument [Line Items]
Warrants issued in connection with debt | shares						64,865
2010 Loan and Security Agreement | Silicon Valley Bank | Series C Convertible Preferred Stock
Debt Instrument [Line Items]
Warrants issued in connection with debt | shares						75,000
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 10,000,000
Number of tranches | Tranche					2
Amount borrowed under loan agreement				$ 6,000,000	$ 4,000,000
Debt discount			$ 52,400		$ 133,000			52,400
Prepayment of outstanding loan carrying amount		$ 4,000,000	5,500,000
Prepayment fees		$ 120,000	$ 110,000
End of term payment	$ 300,000
Loan agreement terminated date							Sep. 23, 2016
Interest expense							$ 0	$ 265,124
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc | Scenario One
Debt Instrument [Line Items]
Interest rate on loan									9.00%
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc | Scenario Two
Debt Instrument [Line Items]
Debt Instrument, description of variable rate basis							From June 2014 through payoff in September 2016, the Company paid interest equal to the greater of either 9.0%, plus the Prime Rate as reported in The Wall Street Journal, less 3.25% or 9.0%.
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc | Prime Rate | Minimum
Debt Instrument [Line Items]
Percentage deducted from sum of fixed and prime rate									3.25%
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc | Prime Rate | Maximum
Debt Instrument [Line Items]
Percentage deducted from sum of fixed and prime rate									9.00%
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc | Debt Prepayment Fee
Debt Instrument [Line Items]
Interest expense	230,000
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc | Unamortized Term Fee
Debt Instrument [Line Items]
Interest expense	$ 260,000
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc | Warrants
Debt Instrument [Line Items]
Warrants issued and outstanding | shares			46,838		46,838			46,838
Warrant exercise price per share | $ / shares			$ 0.62		$ 8.54			$ 0.62
Warrant expiration period from date of issuance					8 years
Debt discount			$ 9,417					$ 9,417
Warrant expiration date							2022-09
2014 Loan and Security Agreement | Hercules Technology Growth Capital Inc | Series C Convertible Preferred Stock
Debt Instrument [Line Items]
Warrants issued as percentage of loan amount					4.00%
Fair value of warrants issued					$ 207,429

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($)	Dec. 01, 2015	Mar. 31, 2017	Dec. 31, 2016
Class Of Stock [Line Items]
Common stock shares outstanding under warrant conversion		71,257
Common stock, par value		$ 0.0001	$ 0.0001
Common stock, shares issued		13,831,747	13,828,496
Cantor Fitzgerald
Class Of Stock [Line Items]
Common stock, shares issued		0
Controlled Equity Offering Sales Agreement | Cantor Fitzgerald
Class Of Stock [Line Items]
Common stock, par value	$ 0.0001
Controlled Equity Offering Sales Agreement | Cantor Fitzgerald | Maximum
Class Of Stock [Line Items]
Aggregate offering price	$ 20,000,000
Warrants with Exercise price $9.90
Class Of Stock [Line Items]
Common stock shares outstanding under warrant conversion		24,419
Warrant exercise price per share		$ 9.90
Warrants with Exercise price $0.62
Class Of Stock [Line Items]
Common stock shares outstanding under warrant conversion		46,838
Warrant exercise price per share		$ 0.62

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Compensation Plan Activity (Details)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options Outstanding beginning of period | shares	871,203
Options Granted | shares	370,000
Options Exercised | shares	(3,251)
Options Forfeited | shares	(1,546)
Options Outstanding at end of period | shares	1,236,406
Weighted Average Exercise Price, Outstanding at beginning of period | $ / shares	$ 2.95
Weighted Average Exercise Price, Granted | $ / shares	1.43
Weighted Average Exercise Price, Exercised | $ / shares	1.06
Weighted Average Exercise Price, Forfeited | $ / shares	2.96
Weighted Average Exercise Price, Outstanding at end of period | $ / shares	$ 2.50

Stockholders' Equity - Summar28

Stockholders' Equity - Summary of Recognized Non-Cash Share-Based Compensation Expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 131,096	$ 714,687
General And Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	78,186	672,310
Research And Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 52,910	$ 42,377

Stockholders' Equity - Summar29

Stockholders' Equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares	Mar. 31, 2017	Dec. 31, 2016
Common Stock Reserved For Future Issuance [Line Items]
Total common stock reserved for future issuance	4,342,888
Stock options issued and outstanding	1,236,406	871,203
Authorized for future awards under stock compensation plans	2,460,765
Warrants issued and outstanding
Common Stock Reserved For Future Issuance [Line Items]
Total common stock reserved for future issuance	71,257
Stock options issued and outstanding
Common Stock Reserved For Future Issuance [Line Items]
Stock options issued and outstanding	1,236,406
Employee Stock Purchase Plan
Common Stock Reserved For Future Issuance [Line Items]
Total common stock reserved for future issuance	574,460

Commitments - Additional Inform

Commitments - Additional Information (Details)	Jan. 31, 2017ft²	Feb. 28, 2017USD ($)	Mar. 31, 2017USD ($)
Operating Leased Assets [Line Items]
Non-cancelable operating lease agreement date			Jan. 20, 2015
Lease expiration period			2020-03
Abacus Data Systems, Inc
Operating Leased Assets [Line Items]
Operating leases sublease arrangements rentable area | ft²	11,107
Abacus Data Systems, Inc | Original Premises
Operating Leased Assets [Line Items]
Base rent discount for months five through nine		50.00%
Base rent for month second		$ 27,768
Security deposit		$ 30,317
Rent expense			$ 94,762
Sublease rental income			$ 39,193
LJ Gateway, LLC
Operating Leased Assets [Line Items]
Lease amendment, additional space | ft²	3,580

Commitments - Summarized minimu

Commitments - Summarized minimum lease payments and sublease receipts under lease agreements (Details)	Mar. 31, 2017USD ($)
Commitments And Contingencies Disclosure [Abstract]
2,017	$ 391,716
2,018	410,848
2,019	431,507
2,020	109,293
Future minimum lease payments under operating leases	1,343,364
2,017	124,956
2,018	342,374
2,019	352,645
2,020	90,143
Future minimum sublease receipts under operating leases	$ 910,118