Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 24, 2017 | Jun. 30, 2016 | |
Document And Entity Information Abstract | |||
Entity Registrant Name | Zynerba Pharmaceuticals, Inc. | ||
Entity Central Index Key | 1,621,443 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 49.5 | ||
Entity Common Stock, Shares Outstanding | 13,214,825 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 30,965,791 | $ 41,513,060 |
Incentive and tax receivables | 3,613,943 | 356,718 |
Prepaid expenses and other current assets | 1,830,958 | 1,545,917 |
Total current assets | 36,410,692 | 43,415,695 |
Property and equipment, net | 143,382 | 227,646 |
Other assets | 200 | 200 |
Total assets | 36,554,274 | 43,643,541 |
Current liabilities: | ||
Accounts payable | 1,848,084 | 823,401 |
Accrued expenses | 4,284,907 | 2,272,991 |
Deferred grant revenue | 833,975 | 841,225 |
Total current liabilities | 6,966,966 | 3,937,617 |
Commitments and contingencies (note 11) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.001 par value; 200,000,000 shares authorized; 9,994,825 shares issued and outstanding at December 31, 2016 and 9,199,919 shares issued and outstanding at December 31, 2015 | 9,995 | 9,200 |
Additional paid-in capital | 75,545,875 | 62,276,779 |
Accumulated deficit | (45,968,562) | (22,580,055) |
Total stockholders' equity | 29,587,308 | 39,705,924 |
Total liabilities and stockholders' equity | $ 36,554,274 | $ 43,643,541 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
BALANCE SHEETS | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 9,994,825 | 9,199,919 |
Common stock, shares outstanding | 9,994,825 | 9,199,919 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS | 12 Months Ended |
Dec. 31, 2014USD ($)$ / sharesshares | |
STATEMENTS OF OPERATIONS | |
Revenue | $ 810,012 |
Operating expenses: | |
Research and development | 2,401,406 |
General and administrative | 4,076,339 |
Total operating expenses | 6,477,745 |
Loss from operations | (5,667,733) |
Other income (expense): | |
Interest income (expense) | (1,844) |
Total other income (expense) | (1,844) |
Loss before income taxes | (5,669,577) |
Net loss | (5,669,577) |
Accretion of redeemable convertible preferred stock | (87,954) |
Net loss applicable to common stockholders | $ (5,757,531) |
Per share information: | |
Net loss per share basic and diluted | $ / shares | $ (6.44) |
Basic and diluted weighted average shares outstanding | shares | 894,575 |
CONSOLIDATED STATEMENTS OF REDE
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) | Common stock | Additional paid in capital | Accumulated deficit | Total |
Balance at Dec. 31, 2013 | $ 49 | $ (4,359,128) | $ (4,359,079) | |
Balance (in shares) at Dec. 31, 2013 | 490,760 | |||
Increase (Decrease) in Stockholders' (Deficit) Equity | ||||
Accretion of redeemable convertible preferred stock to redemption value | $ (87,954) | (87,954) | ||
Issuance of common stock, net of issuance costs | $ 7 | 125,360 | 125,367 | |
Issuance of common stock (in shares) | 74,923 | |||
Forfeiture of common stock (pre recapitalization) | $ (36) | 36 | ||
Forfeiture of common stock (pre recapitalization) (in shares) | (359,042) | |||
Conversion of convertible preferred stock | $ 778 | 791,183 | 791,961 | |
Conversion of convertible preferred stock (in shares) | 591,230 | |||
Issuance of common stock (post recapitalization) | $ 694 | 1,146,913 | 1,147,607 | |
Issuance of common stock (post recapitalization) (in shares) | 693,661 | |||
Forfeiture of common stock (post recapitalization) | $ (42) | 42 | ||
Forfeiture of common stock (post recapitalization) (in shares) | (41,667) | |||
Issuance of restricted stock | $ 580 | (580) | ||
Issuance of restricted stock (in shares) | 579,882 | |||
Net loss | (5,669,577) | (5,669,577) | ||
Balance at Dec. 31, 2014 | $ 2,030 | 1,975,000 | (10,028,705) | (8,051,675) |
Balance (in shares) at Dec. 31, 2014 | 2,029,747 | |||
Increase (Decrease) in Stockholders' (Deficit) Equity | ||||
Issuance of common stock, net of issuance costs | $ 3,450 | 42,118,554 | 42,122,004 | |
Issuance of common stock (in shares) | 3,450,000 | |||
Conversion of convertible preferred stock | $ 3,704 | 16,519,107 | 16,522,811 | |
Conversion of convertible preferred stock (in shares) | 3,704,215 | |||
Exercise of stock options | $ 16 | 63,493 | 63,509 | |
Exercise of stock options (in shares) | 15,957 | |||
Stock-based compensation expense | 1,600,625 | 1,600,625 | ||
Net loss | (12,551,350) | (12,551,350) | ||
Balance at Dec. 31, 2015 | $ 9,200 | 62,276,779 | (22,580,055) | 39,705,924 |
Balance (in shares) at Dec. 31, 2015 | 9,199,919 | |||
Increase (Decrease) in Stockholders' (Deficit) Equity | ||||
Issuance of common stock, net of issuance costs | $ 795 | 9,999,730 | 10,000,525 | |
Issuance of common stock (in shares) | 794,906 | |||
Stock-based compensation expense | 3,269,366 | 3,269,366 | ||
Net loss | (23,388,507) | (23,388,507) | ||
Balance at Dec. 31, 2016 | $ 9,995 | $ 75,545,875 | $ (45,968,562) | $ 29,587,308 |
Balance (in shares) at Dec. 31, 2016 | 9,994,825 |
CONSOLIDATED STATEMENTS OF RED6
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - Temporary Equity - USD ($) | Redeemable convertible preferred stock Series A | Redeemable convertible preferred stock Series B | Convertible preferred stock |
Balance at Dec. 31, 2013 | $ 1,646,179 | $ 1,516,194 | |
Balance (in shares) at Dec. 31, 2013 | 720,002 | 998,109 | |
Increase (Decrease) in Convertible Preferred Stock | |||
Issuance of convertible preferred stock | $ 347,411 | $ 12,925,034 | |
Issuance of convertible preferred stock (in shares) | 250,000 | 6,244,051 | |
Accretion of redeemable convertible preferred stock to redemption value | $ 25,443 | $ 62,511 | |
Conversion of convertible preferred stock | $ (1,671,622) | $ (1,926,116) | $ 3,597,777 |
Conversion of convertible preferred stock (in shares) | (720,002) | (1,248,109) | 720,002 |
Balance at Dec. 31, 2014 | $ 16,522,811 | ||
Balance (in shares) at Dec. 31, 2014 | 6,964,053 | ||
Increase (Decrease) in Convertible Preferred Stock | |||
Conversion of convertible preferred stock | $ (16,522,811) | ||
Conversion of convertible preferred stock (in shares) | (6,964,053) | ||
Balance at Dec. 31, 2015 | $ 0 | ||
Balance (in shares) at Dec. 31, 2015 | 0 |
CONSOLIDATED STATEMENTS OF RED7
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - Temporary Equity (Parenthetical) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Jan. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | |
Redeemable convertible preferred stock Series B | |||
Stock issuance costs | $ 3,089 | $ 3,089 | |
Convertible preferred stock | |||
Stock issuance costs | $ 289,878 | $ 289,878 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (23,388,507) | $ (12,551,350) | $ (5,669,577) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 75,301 | 26,027 | 27,063 |
Forgiveness of accounts payable | (180,782) | ||
Common stock issued for services | 2,063,565 | ||
Stock-based compensation | 3,269,366 | 1,600,625 | |
Loss on disposal of equipment | 99,147 | 22,550 | |
Changes in operating assets and liabilities: | |||
Incentive and tax receivable | (3,257,225) | (356,718) | |
Grant receivables | 34,514 | ||
Prepaid expenses and other assets | (285,041) | (359,968) | 437,691 |
Deferred grant revenue | (7,250) | (278,900) | (641,321) |
Accounts payable | 1,044,127 | 536,354 | 140,105 |
Accrued expenses | 2,011,916 | 1,597,131 | 225,537 |
Net cash used in operating activities | (20,438,166) | (9,786,799) | (3,540,655) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (109,628) | (216,335) | (19,717) |
Net cash used in investing activities | (109,628) | (216,335) | (19,717) |
Cash flows from financing activities: | |||
Proceeds from issuance of Series B redeemable convertible preferred stock, net | 309,911 | ||
Proceeds from issuance of Series 1 convertible preferred stock, net | 12,925,034 | ||
Proceeds from issuance of common stock, net of offering costs | 10,000,525 | 42,122,004 | 1,409 |
Proceeds from the exercise of stock options | 63,509 | ||
Repayment of borrowings | (499,996) | ||
Net cash provided by financing activities | 10,000,525 | 42,185,513 | 12,736,358 |
Net (decrease) increase in cash and cash equivalents | (10,547,269) | 32,182,379 | 9,175,986 |
Cash and cash equivalents at beginning of period | 41,513,060 | 9,330,681 | 154,695 |
Cash and cash equivalents at end of period | 30,965,791 | 41,513,060 | 9,330,681 |
Supplemental disclosures of cash flow information: | |||
Accrued dividends on redeemable convertible preferred stock | 48,078 | ||
Accretion of redeemable convertible preferred stock | 39,876 | ||
Deferred offering costs included in accounts payable | 1,080,199 | ||
Change in property and equipment acquired but not yet paid | $ (19,444) | $ 17,696 | 1,748 |
Cash paid for interest | $ 1,920 |
Nature of Business and Liquidit
Nature of Business and Liquidity | 12 Months Ended |
Dec. 31, 2016 | |
Nature of Business and Liquidity | |
Nature of Business and Liquidity | (1) Nature of Business and Liquidity Zynerba Pharmaceuticals, Inc., together with its subsidiary, Zynerba Pharmaceuticals Pty Ltd (the “Company”, “we”), is a clinical stage specialty pharmaceutical company dedicated to developing and commercializing innovative transdermal cannabinoid treatments for patients with high unmet needs. The Company was incorporated on January 31, 2007 under the laws of the State of Delaware as AllTranz, Inc. and changed its name to Zynerba Pharmaceuticals, Inc. in August 2014. The Company operated in Lexington, Kentucky until October 2014 when it moved its operations to Pennsylvania. The Company has incurred losses and negative cash flows from operations since inception and has an accumulated deficit of $46.0 million as of December 31, 2016. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant revenue from its product candidates currently in development. The Company's primary source of liquidity has been the issuance of equity securities and convertible promissory notes. In August 2015, the Company completed its Initial Public Offering (IPO) of common stock selling 3,450,000 shares at an offering price of $ 14.00 per share, resulting in gross proceeds of $48.3 million. Net proceeds received after underwriting fees and offering expenses were $42.1 million. In connection with the IPO, all outstanding shares of Series 1 convertible preferred stock converted into 3,704,215 shares of common stock. During the year ended December 31, 2016, the Company entered into an Open Market Sales Agreement (the “Sales Agreement”) with Jefferies LLC (“Jefferies”) pursuant to which the Company sold and issued 794,906 shares of common stock in the open market at a weighted average selling price of $13.39 per share, for gross proceeds of $10.6 million. Net proceeds received after deducting commissions and offering expenses were $10.0 million. In the first quarter of 2017, the Company completed a follow-on public offering, selling 3,220,000 shares at an offering price of $18.00 per share resulting in gross proceeds of $58.0 million. Net proceeds received after deducting underwriting and commissions and offering expenses were $54.3 million. Management believes that current cash and cash equivalents, including proceeds from the Company’s follow-on public offering in the first quarter of 2017, are sufficient to develop five Phase 3 ready programs and, assuming feedback from the FDA supports a decision to move forward, initiate at least one Phase 3 program and fund operations and capital requirements into 2019 . Substantial additional financings will be needed by the Company to fund its operations, to complete clinical development of and to commercially develop its product candidates. There is no assurance that such financing will be available when needed or on acceptable terms. The Company is subject to those risks associated with any clinical stage pharmaceutical company that has substantial expenditures for research and development. There can be no assurance that the Company's research and development projects will be successful, that products developed will obtain necessary regulatory approval, or that any approved product will be commercially viable. In addition, the Company operates in an environment of rapid technological change and is largely dependent on the services of its employees and consultants. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies a. Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions to Form 10-K and Article 10 of Regulation S-X. b. 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 disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from such estimates. c. Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, including cash equivalents, accounts payable and accrued expenses approximate fair value given their short‑term nature. d. Cash and Cash Equivalents The Company considers all highly liquid investments that have maturities of three months or less when acquired to be cash equivalents. As of December 31, 2016 and 2015, the Company invested a portion of its cash balances in money market funds, which has been included as cash equivalents on the consolidated balance sheets. e. Incentive and Tax Receivable The Company’s subsidiary, Zynerba Pharmaceuticals Pty Ltd (the “Subsidiary”), is incorporated in Australia. The Subsidiary is eligible to participate in an Australian research and development tax incentive program. As part of this program, the Subsidiary is eligible to receive a cash refund from the Australian Taxation Office for a percentage of the research and development costs expended by the Subsidiary in Australia. During the year ended December 31, 2016, the Company received $0.4 million from the Australian Taxation Office related to 2015 eligible spending under this incentive program. As of December 31, 2016, the Company estimates it will collect $3.3 million during the year ended December 31, 2017, related to 2016 eligible spending as part of this incentive program. The Company’s estimate of the amount of cash refund it expects to receive in 2017 related to the Australian research and development tax incentive program is included in “Incentive and tax receivables” on the accompanying consolidated balance sheets. In addition, the Subsidiary incurs Goods and Services Tax (“GST”) on services provided by Australian vendors. As an Australian entity, the Subsidiary is entitled to a refund of the GST paid. During the year ended December 31, 2016, the Company received a refund of $0.5 million for GST paid to Australian vendors through September 30, 2016, and the Company estimates it will collect an additional $0.3 million in 2017 for GST on expenses related to Australian vendors incurred during the remainder of 2016. The Company’s estimate of the amount of cash refund it expects to receive related to GST paid is included in “Incentive and tax receivables” on the accompanying consolidated balance sheets. f. Prepaid Expenses and Other Assets Prepaid expenses primarily consist of prepaid preclinical study and clinical trial expenses of $1.5 million and $1.2 million as of December 31, 2016 and 2015, respectively. g. Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight‑line basis over their estimated useful lives. The Company estimates a life of three years for computer equipment and five years for furniture and fixtures and lab equipment, unless circumstances dictate otherwise. When property and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in other expenses. Repairs and maintenance costs are expensed as incurred. During the year ended December 31, 2016, the Company recognized a loss on the disposal of equipment of $99,147, which is reflected in “Loss on disposal of equipment” on the accompanying consolidated statement of operations. h. Impairment of Long‑Lived Assets The Company assesses the recoverability of its long‑lived assets, which include property and equipment, whenever significant events or changes in circumstances indicate impairment may have occurred. If indicators of impairment exist, projected future undiscounted cash flows associated with the asset are compared to its carrying amount to determine whether the asset’s value is recoverable. Any resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge to operating results. For the years ended December 31, 2016, 2015 and 2014, the Company determined that there was no impairment of its long‑lived assets. i. Research and Development Research and development costs are expensed as incurred and are primarily comprised of external research and development expenses incurred under arrangements with third parties, such as contract research organizations (“CROs”), consultants and employee related expenses including salaries and benefits. At the end of each reporting period, the Company compares the payments made to each service provider to the estimated progress towards completion of the related project. Factors that the Company considers in preparing these estimates include the number of patients enrolled in studies, milestones achieved and other criteria related to the efforts of its vendors. These estimates will be subject to change as additional information becomes available. Depending on the timing of payments to vendors and estimated services provided, the Company will record net prepaid or accrued expenses related to these costs. Beginning in the fourth quarter of 2015, research and development costs are reduced by the Australian research and development incentive and GST recorded in the respective period. j. Stock‑Based Compensation The Company measures employee and nonemployee stock‑based awards at grant‑date fair value and records compensation expense on a straight‑line basis over the vesting period of the award. Stock‑based awards issued to non‑employees, if any, are revalued until the award vests. The Company estimates the fair value of restricted stock based on the closing price of the Company’s common stock on the date of grant. The Company uses the Black‑Scholes option pricing model to value its stock option awards. Estimating the fair value of stock option awards requires management to apply judgment and make estimates, including the volatility of the Company’s common stock, the expected term of the Company’s stock options, the expected dividend yield and the fair value of the Company’s common stock on the date of grant. As a result, if factors change and management uses different assumptions, stock‑based compensation expense could be materially different for future awards. The expected life of stock options was estimated using the “simplified method,” as the Company has no historical information to develop reasonable expectations about future exercise patterns and post vesting employment termination behavior for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of option grants. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. k. Revenue Recognition Revenue related to research grants and research services for third party product development are recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collectability is reasonably assured. Grant revenue received is deferred until the related expenditures are incurred. Revenue in 2016 and 2015 was entirely related to work performed in connection with grants received prior to 2015. Research services revenue of $0.1 million in 2014 represents fees for research and development activities. l. Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and the expected benefits of net operating loss carryforwards. The impact of changes in tax rates and laws on deferred taxes, if any, applied during the years in which temporary differences are expected to be settled, is reflected in the financial statements in the period of enactment. The measurement of deferred tax assets is reduced, if necessary, if, based on weight of the evidence, it is more likely than not that some, or all, of the deferred tax assets will not be realized. As of December 31, 2016 and 2015, the Company has concluded that a full valuation allowance is necessary for their net deferred tax assets. The Company had no material amounts recorded for uncertain tax positions, interest or penalties in the accompanying financial statements. m. Net Loss Per Share Basic loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities, such as redeemable convertible preferred stock, convertible preferred stock, restricted stock, and stock options, which would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti‑dilutive. The following potentially dilutive securities outstanding as of December 31, 2016, 2015 and 2014 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti‑dilutive: Year ended December 31, 2016 2015 2014 Convertible preferred stock — — Stock options Unvested restricted stock Amounts in the table reflect the common stock equivalents of the noted instruments. n. Foreign Currency The Company has determined the functional currency of its Australian subsidiary to be the U.S. dollar. The Company translates assets and liabilities of its foreign operations at exchange rates in effect at the balance sheet date. The Company records remeasurement gains and losses on monetary assets and liabilities, such as incentive and tax receivables and accounts payables, which are not in the functional currency of the operation. These remeasurement gains and losses are recorded in the statement of operations as they occur. o. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision‑making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one segment. p . Recent Accounting Pronouncements In August 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which defines management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The pronouncement was effective for annual reporting periods ending after December 15, 2016 with early adoption permitted. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. The pronouncement is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to simplify the accounting and reporting for employee share-based payment transactions. The pronouncement is effective for interim and annual periods beginning after December 31, 2016 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which provides specific guidance related to eight cash flow classification issues. The pronouncement is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash , which requires changes in restricted cash and restricted cash equivalents to be explained on the statement of cash flows by including restricted cash and restricted cash equivalents in the beginning-of-period and end-of-period total cash and cash equivalents shown on the statement of cash flows. The pronouncement is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | (3) Fair Value Measurements The Company utilizes a valuation hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques related to its financial assets and financial liabilities. The three levels of inputs used to measure fair value are described as follows: Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs and quoted prices in active markets for similar assets and liabilities. Level 3 — Unobservable inputs and models that are supported by little or no market activity. In accordance with the fair value hierarchy described above, the following table sets forth the Company's financial assets measured at fair value on a recurring basis: Fair Value Measurement Carrying value as of December 31, 2016 as of December 31, 2016 Level 1 Level 2 Level 3 Cash equivalents (money market accounts) $ $ $ — $ — Certificate of deposit (included in prepaid expenses and other current assets) — — $ $ $ — $ — Fair Value Measurement Carrying value as of December 31, 2015 as of December 31, 2015 Level 1 Level 2 Level 3 Cash equivalents (money market accounts) $ $ $ — $ — Certificate of deposit (included in prepaid expenses and other current assets) — — $ $ $ — $ — |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2016 | |
Prepaid Expenses and Other Current Assets | |
Prepaid Expenses and Other Current Assets | (4) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following as of December 31, 2016 and 2015: December 31, December 31, 2016 2015 Prepaid development expenses $ $ Prepaid insurance Other Total prepaid expenses and other current assets $ $ |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment | |
Property and Equipment | (5) Property and Equipment Property and equipment consisted of the following as of December 31, 2016 and 2015: Estimated useful life December 31, December 31, (in years) 2016 2015 Equipment 2-5 $ $ Computer equipment 3-5 Furniture and fixtures 5 Total cost Less accumulated depreciation Property and equipment, net $ $ Depreciation expense was $75,301 , $26,027 and $27,063 for the years ended December 31, 2016, 2015 and 2014 respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses | |
Accrued Expenses | (6) Accrued Expenses Accrued expenses consisted of the following as of December 31, 2016 and 2015: December 31, December 31, 2016 2015 Accrued compensation $ $ Accrued research and development Other Total accrued expenses $ $ |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt | |
Debt | (7) Debt In April 2007, the Company was awarded a grant by the Kentucky Economic Development Finance Authority (KEDFA) on behalf of the Commonwealth of Kentucky Department of Commercialization and Innovation in the form of a non interest bearing forgivable loan in the amount of up to $500,000 to be used for the purchase of equipment. In January 2014, the Company granted KEDFA liens on certain of its patents as security for the forgivable loan. In September 2014, the Company repaid the forgivable loan balance of $499,996 as management determined they would not meet the performance criteria associated with the grant and KEDFA released its security interest. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2016 | |
Redeemable Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) | |
Redeemable Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) | (8) Redeemable Convertible Preferred Stock, Common Stock and Stockholders’ Equity (Deficit) Series A and Series B Redeemable Convertible Preferred Stock In connection with the Company’s recapitalization in 2014, all $0.0001 par value Series A Participating Preferred Stock (Series A) and $0.0001 par value Series B Participating Preferred Stock (Series B) were converted to Series 1 convertible preferred stock (see below). The Series B ranked senior to the Series A and the common stock in liquidation. The Series A and B were convertible into common stock at the option of the holder, automatically converted into common stock upon a public offering of stock with a public offering price of not less than $25,000,000, or the consent of a majority of the holders and had a liquidation value of $1.75 per share plus unpaid dividends. Dividends were cumulative, accrued beginning in June 2008 and October 2013 for the Series A and Series B, respectively, at a rate of 6% per year and became payable upon declaration by the board of directors of the Company, redemption or liquidation. At the earlier of a Company Default (as defined) or August 30, 2017, the Series A and B Preferred Stock were redeemable at the option of a majority of the holders at the greater of a price per share of $1.75 plus unpaid dividends, if any, or the then fair market value. Total accretion of the Series A unamortized issuance cost towards redemption value was $1,309 for the year ended December 31, 2014. Total accretion of the Series A dividends towards the redemption value was $24,134 for the year ended December 31, 2014. Total accretion of the Series B unamortized issuance cost and beneficial conversion feature towards the redemption value was $38,568 for the year ended December 31, 2014. Total accretion of the Series B dividends towards the redemption value was $23,943 for the year ended December 31, 2014. In January 2014, the Company issued 200,002 shares of Series B and warrants to purchase 49,998 shares of Series B for total proceeds of $350,000 less stock issuance costs of $3,089 for net proceeds to the Company of $346,911. In April 2014, the warrants to purchase 49,998 shares of Series B were exercised for total proceeds to the Company of $500. Since the Series B underlying the warrants could have been redeemed for cash upon an event that was not within the Company’s control, these warrants were classified as a derivative liability with changes to fair value, if any, recorded through earnings at each reporting period through the exercise date. Recapitalization Transactions In May 2014, a series of transactions, referred to as the Recapitalization Transactions, were executed resulting in the issuance of 720,002 shares of Series 1 convertible preferred stock (Series 1) and 797,871 shares of new common stock, as follows: · A shareholder who was an original founder of the Company elected to forfeit 359,042 shares of the original common stock. The forfeited shares were canceled and retired by the Company. · All outstanding options that were previously issued were cancelled. · The Company issued 74,923 shares of common stock to certain existing investors and employees for total proceeds of $1,409. As a result of the issuance, the Company recognized $123,958 of noncash general and administrative expense during the year ended December 31, 2014. · Prior to the recapitalization, all outstanding shares of the Series A and the Series B were converted into shares of common stock. The Company converted 720,002 shares of Series A and 1,248,109 shares of Series B into 1,046,847 shares of common stock. · On May 6, 2014, the Company recapitalized. In connection with the recapitalization, each share of common stock was exchanged into shares of Series 1 by multiplying each share of common stock issued and outstanding immediately prior to the recapitalization by 0.57434. As a result, 720,002 shares of Series 1 were issued pursuant to such exchange. · In connection with the recapitalization, 478,723 shares of new common stock were issued to a new investor (New Investor). The Company recognized $792,000 of noncash general and administrative expense during the year ended December 31, 2014 as a result of the issuance. In addition, the Company issued 319,148 shares of new common stock to the same shareholder that forfeited 359,042 shares of common stock prior to the recapitalization. Series 1 Convertible Preferred Stock From May 2014 through October 2014, the Company issued an aggregate of 6,244,051 shares of Series 1 for total proceeds of $13,214,912 less stock issuance costs of $289,878 for net proceeds of $12,925,034. The Series 1 converted into 3,704,215 shares of common stock in connection with the IPO. Voting Holder of the Series 1, voting as a class, were entitled to elect four members of the board of directors. Holders of the common stock, voting as a single class, were entitled to elect one member of the board of directors. Dividends Holders of Series 1 were entitled to receive a dividend on each outstanding share of Series 1, if and when declared by the board of directors, issuable upon the conversion of a share of Series 1 on the record date in the case of a dividend on common stock or any class or series convertible into common stock. Liquidation In the event of a liquidation, dissolution, or winding‑up, or in the event the Company was merged with, or was acquired by another entity, the holders of each share of Series 1 were entitled to receive an amount equal to the greater of the $3.98 per share plus any dividends declared but unpaid thereon or such amount per share as would have been payable had all shares of Series 1 been converted to common stock immediately prior to such liquidation. With respect to the liquidation preference, after payment has been made to the holders of Series 1, the remaining assets available for distribution would have been distributed to the holders of common stock. Redemption The Series 1 was subject to redemption under certain “deemed liquidation events” and as such, the Series 1 was considered contingently redeemable for financial accounting purposes. The Company concluded that none of these events were probable at December 31, 2014. Common Stock Transactions In September 2014, the Company issued 579,614 shares of common stock to the New Investor for providing certain advisory service, including management services. The Company recognized $958,914 of noncash general and administrative expense for these issuances during the year ended December 31, 2014. An additional 114,047 shares of common stock were issued to third parties for providing consulting services. As a result of the issuances, the Company recognized $188,693 of noncash general and administrative expense during the year ended December 31, 2014. In October 2014, the New Investor forfeited 41,667 shares of common stock. In August 2015, the Company completed its IPO, selling 3,450,000 shares at an offering price of $14.00 per share, resulting in gross proceeds of $48.3 million. Net proceeds received after underwriting fees and offering expenses were approximately $42.1 million. During the year ended December 31, 2016, the Company entered into the Sales Agreement with Jefferies pursuant to which the Company sold and issued 794,906 shares of common stock in the open market at a weighted average selling price of $13.39 per share, for gross proceeds of $10.6 million. Net proceeds received after deducting commissions and offering expenses were $10.0 million. In the first quarter of 2017, the Company completed an additional follow-on public offering, selling 3,220,000 shares at an offering price of $18.00 per share resulting in gross proceeds of $58.0 million. Net proceeds received after deducting underwriting and commissions and offering expenses were $54.3 million. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | (9) Stock-Based Compensation During May 2014, all outstanding stock options under the 2007 stock option plan were cancelled in connection with the recapitalization (Note 8). The Company maintains the Amended and Restated 2014 Omnibus Incentive Compensation Plan, as amended (the “2014 Plan”), which allows for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, stock awards, stock units, performance units and other stock‑based awards to purchase an aggregate of 2,450,000 shares of the Company’s common stock to employees, officers, directors, consultants, and advisors, subject to automatic annual increases in the number of shares authorized for issuance under the 2014 Plan on the first trading day of January each year, equal to the lesser of 1.5 million shares and 10% of the number of shares of common stock outstanding on the last trading day of December of the preceding year. In addition, the 2014 Plan provides selected executive employees with the opportunity to receive bonus awards that are considered qualified performance‑based compensation. As of December 31, 2016, 195,668 shares are available for issuance under the 2014 Plan. Options issued under the 2014 Plan have a contractual life of 10 years and may be exercisable in cash or as otherwise determined by the board of directors. The Company has granted options to employees and non‑employee directors. In October and December 2014, the Company entered into employment contracts and agreements in connection with the hiring of its key executives and certain consultants and issued stock options to purchase 542,550 shares of common stock with an exercise price of $3.98 per share and 579,882 shares of restricted common stock that have certain performance‑based and time‑based vesting criteria. The stock options and restricted stock awards vested 25% upon the closing of the Company’s IPO and then quarterly over three years following the closing of the Company’s IPO. Accordingly, prior to the Company’s IPO in August 2015, no expense had been recorded for the stock option grants and restricted stock awards. During the year ended December 31, 2015, the Company granted 1,110,806 stock options, which included 1,001,977 stock options that were granted to employees and the Company’s Board of Directors at the time of the Company’s IPO. The stock options granted to the Company’s employees at the time of the IPO, primarily vest in sixteen equal quarterly increments from the IPO date. The stock options granted to the Company’s Board of Directors at the time of the IPO vest in equal one-third increments on the anniversary of the of the Company’s IPO for three consecutive years. All other stock options granted during 2015 vest 25% upon the first anniversary of the relative grant date and quarterly over three years thereafter. During the year ended December 31, 2016, the Company granted 285,000 stock options to employees and the Company’s Board of Directors, of which 150,000 stock options were granted as an inducement grant pursuant to NASDAQ Listing Rule 5635(c)(4) and are outside of the 2014 Plan. The stock options granted to the Company’s Board of Directors vest on the earlier of the one-year anniversary of the grant date, or the date of the Company’s 2017 annual stockholders’ meeting. The stock options granted to the Company’s employees vest 25% upon the first anniversary date of grant and quarterly over three years thereafter. During the years ended December 31, 2016 and 2015, the Company recorded stock-based compensation expense related to its stock option grants and restricted stock awards, as follows: Year Ended December 31, 2016 Year Ended December 31, 2015 Research and General and Total Research and General and Total Stock option grants $ $ $ $ $ $ Restricted stock awards $ $ $ $ $ $ The following table summarizes the Company’s stock option activity. Weighted Average Weighted Grant Date Average Options Fair Value Exercise Price Outstanding as of December 31, 2014 $ $ Granted under the 2014 Plan $ $ Exercised $ $ Outstanding as of December 31, 2015 $ $ Granted under the 2014 Plan $ $ Granted as an inducement grant $ $ Forfeited $ $ Outstanding as of December 31, 2016 $ $ As of December 31, 2016, there was $7.3 million of unrecognized stock-based compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.56 years. As of December 31, 2016, 641,375 stock options with a weighted average grant date fair value of $5.18 per share were exercisable. The Company expects 1,154,618 unvested stock options to vest. As of December 31, 2016, the Company’s outstanding stock options had a weighted average contractual life of 8.5 years and an intrinsic value of $9. 7 million. The weighted average grant date fair value of stock options granted during the year ended December 31, 2016 was estimated using the Black-Scholes option pricing model with the following ranges of assumptions: expected volatility of 77%, risk free interest rate of 1.4% - 2.2%, expected term of 5.5 years to 6.25 years and 0% expected dividend yield. The weighted average grant date fair value of stock options granted during the year ended December 31, 2015 was estimated using the Black-Scholes option pricing model with the following ranges of assumptions: expected volatility of 76% - 77%, risk free interest rate of 1.7% - 2.0%, expected term of 5.75 years to 6.25 years and 0% expected dividend yield. Due to the stage of the Company and its recent IPO in August 2015, the Company currently computes volatility using a basket of peer companies rather than its own historical experience. The following table summarizes the restricted stock award activity under the 2014 Plan. Weighted Average Grant Date Shares Fair Value Unvested as of December 31, 2014 $ Vested $ Unvested as of December 31, 2015 $ Vested $ Unvested as of December 31, 2016 $ As of December 31, 2016, there was $0.4 million of unrecognized stock-based compensation expense related to unvested restricted stock awards as of December 31, 2016, which is expected to be recognized over a weighted-average period of 1.59 years, and the Company expects all 253,702 unvested restricted stock awards to vest. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | (10) Income Taxes The Company’s U.S. and foreign loss before income taxes are set forth below: Year ended December 31, 2016 2015 2014 United States $ $ $ Foreign — Total $ $ $ The Company had $36.5 million and $17.7 million of federal net operating loss carryforwards and $1.3 million and $0.4 million of research tax credit carryforwards as of December 31, 2016 and 2015, respectively. The U.S. federal net operating loss carryforwards and research tax credit carryforwards begin to expire in 2028 and 2027, respectively. The Company has $34.4 million and $21.6 million of state net operating loss carryforwards as of December 31, 2016 and 2015, respectively. The state net operating loss carryforwards begin to expire in 2028 and 2027, respectively. The Company had $1.2 million of Australia net operating loss carryforwards as of December 31, 2016, which have an indefinite life. The Tax Reform Act of 1986 (the Act) provides for limitation on the use of net operating loss and research and development tax credit carryforwards following certain ownership changes (as defined by the Act) that could limit the Company’s ability to utilize these carryforwards. The Company may have experienced various ownership changes, as defined by the Act, as a result of past financings. Accordingly, the Company’s ability to utilize the aforementioned carryforwards may be limited. Additionally, U.S. tax laws limit the time during which these carryforwards may be applied against future taxes; therefore, the Company may not be able to take full advantage of these carryforwards for federal income tax purposes. The components of the net deferred income tax asset as of December 31, 2016 and 2015 are as follows: December 31, 2016 December 31, 2015 Deferred tax assets: Net operating loss carry‑forwards $ $ Startup costs — Research and development credit carry‑forwards Deferred revenue — Stock-based compensation Other — Gross deferred tax assets Deferred tax liabilities: Accumulated depreciation Gross deferred tax liabilities Less valuation allowance Net deferred tax asset $ — $ — In assessing the realizability of deferred tax assets, the Company considers whether it is more‑likely‑than‑not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences representing net future deductible amounts become deductible. After consideration of all the evidence, both positive and negative, the Company has recorded a full valuation allowance against its net deferred tax assets as of December 31, 2016 and 2015, respectively, because the Company has determined that is it more likely than not that these assets will not be fully realized due to historic net operating losses incurred. The valuation allowance increased by $9.5 million and $4.7 million during the years ended December 31, 2016 and 2015, respectively, due primarily to the generation of net operating loss carryforwards during those years. The Company does not have unrecognized tax benefits as of December 31, 2016 and 2015, respectively. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. A reconciliation of income tax expense (benefit) at the statutory federal income tax rate and income taxes as reflected in the financial statements is as follows: Year ended December 31, 2016 2015 2014 Federal income tax benefit at statutory rate % % % State income tax, net of federal benefit % % % Foreign tax rate differential % % — % Nondeductible research and development expenses % % — % Other permanent differences — % % % Research and development credit benefit % % % Change in valuation allowance % % % Effective income tax rate % % — % The Company and its subsidiaries are subject to income taxes in the U.S. federal jurisdiction, various state jurisdictions and Australia. The Company’s 2011 to 2016 tax years remain open and subject to examination. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies. | |
Commitments and Contingencies | (11) Commitments and Contingencies a. Federal Grants There was no grant revenue received during the years ended December 31, 2016 and 2015. One U.S. Federal agency provided 85% of grant revenue during the year ended December 31, 2014. When received, grant revenue is deferred until the related expenditures are incurred. As of December 31, 2016 and 2015, there was $0.8 million and $0.8 million, respectively, included in deferred revenue and $0.8 million and $0.8 million, respectively, included in prepaid expenses and other assets for prepaid research and development contracts related to the federal grant “ARRA — Transdermal Cannabinoid Prodrug Treatment for Cannabis Withdrawal and Dependence.” b. Research and Development Agreement In August 2014, the Company entered into a patent assignment consideration agreement with Albany College of Pharmacy (ACP) pursuant to which the Company paid $500,000 in exchange for the termination of a royalty agreement that was executed in December 2004. This payment was expensed and included in general and administrative expenses for the year ended December 31, 2014. c. Employee Retirement Plan The Company has established a retirement plan authorized by section 401(k) of the Internal Revenue Code. In accordance with the plan, all full-time employees age 21 or older are eligible to participate in the plan. Each employee can contribute a percentage of compensation up to a maximum of the statutory limits per year. The Company has the option to make discretionary matching contributions and profit sharing contributions. The Company made no contributions during 2016, 2015 or 2014. d. Leases The Company has entered into lease agreements for office space in Pennsylvania and Kentucky. In February 2015, the Company entered into the current lease for its Pennsylvania headquarters, which commenced in June 2015. In December 2016, the Company entered into a lease amendment that provided for the expansion of its Pennsylvania headquarters, which commenced in February 2017. The lease, as amended, expires in 2020 and provides for minimum lease commitments of $156,478, $200,082, $203,755 and $85,535 for the years ended December 31, 2017, 2018, 2019 and 2020, respectively. The Company is party to a month-to-month lease for office space in Kentucky for which it pays a nominal monthly rent. The Company is also party to a lease for office equipment that expires in June 2017 for which it pays a nominal monthly rent. Total lease expense during the years ended December 31, 2016, 2015 and 2014 was $101,609, $77,192 and $63,880, respectively. e. Employment Agreements The Company has entered into employment contracts with its officers and certain employees that provide for severance and continuation of benefits in the event of termination of employment either by the Company without cause or by the employee for good reason, both as defined in the agreements. In addition, in the event of termination of employment following a change in control, as defined in the employment contracts, either by the Company without cause or by the employee for good reason, any unvested portion of the employee’s stock options become immediately vested. f. Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. The Company believes there are no matters pending or threatened that will have a material impact to the Company’s financial position or results of operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions | |
Related Party Transactions | (12) Related Party Transactions The Company paid affiliates of the New Investor $250,000 for the reimbursement of stock issuance costs during the year ended December 31, 2014. Additionally, the Company paid $250,000 for various services, including management services, rendered in 2014. Furthermore, the Company paid legal expenses on the behalf of the New Investor totaling $200,000, of which, $37,366 related to stock issuance costs. In January 2015, the Company entered into a termination agreement with the New Investor pursuant to which certain agreements will be terminated upon payment of $500,000. The Company paid the New Investor $500,000 prior to the closing of the Company’s August 2015 IPO. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data (unaudited) | |
Quarterly Financial Data (unaudited) | (13) Quarterly Financial Data (unaudited The following information has been derived from unaudited consolidated financial statements that, in the opinion of management, include all recurring adjustments necessary for a fair statement of such information. 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ $ — $ — $ — Operating expenses: Research and development General and administrative Total operating expenses Loss from operations Other income (expense): Interest income (expense), net Foreign exchange loss Loss on disposal of equipment — — — Total other income (expense) Loss before income taxes Income tax expense (benefit) — — Net loss $ $ $ $ Net loss per share basic and diluted $ $ $ $ Basic and diluted weighted average shares outstanding 2015 First Quarter (1) Second Quarter (1) Third Quarter Fourth Quarter Revenue $ $ $ $ Operating expenses: Research and development General and administrative Total operating expenses Loss from operations Other income (expense): Interest income (expense), net Loss before income taxes Income tax expense — — — Net loss $ $ $ $ Net loss per share basic and diluted $ $ $ $ Basic and diluted weighted average shares outstanding The sum of the quarterly per share amounts may not equal per share amounts reported for the year due to rounding. (1) The Company has corrected the amounts above to exclude contingently redeemable shares from the net loss per share basic and diluted and basic and diluted weighted average shares outstanding calculations for the first and second quarter. The Company had previously disclosed $0.74 net loss per share basic and diluted for the three months ended March 31, 2015 in the Company's Form S-1 and $0.80 net loss per share basic and diluted for the three months ended June 30, 2015 in the second quarter Form 10-Q. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | a. Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions to Form 10-K and Article 10 of Regulation S-X. |
Use of Estimates | b. 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 disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from such estimates. |
Fair Value of Financial Instruments | c. Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, including cash equivalents, accounts payable and accrued expenses approximate fair value given their short‑term nature. |
Cash and Cash Equivalents | d. Cash and Cash Equivalents The Company considers all highly liquid investments that have maturities of three months or less when acquired to be cash equivalents. As of December 31, 2016 and 2015, the Company invested a portion of its cash balances in money market funds, which has been included as cash equivalents on the consolidated balance sheets. |
Incentive and Tax Receivables | e. Incentive and Tax Receivable The Company’s subsidiary, Zynerba Pharmaceuticals Pty Ltd (the “Subsidiary”), is incorporated in Australia. The Subsidiary is eligible to participate in an Australian research and development tax incentive program. As part of this program, the Subsidiary is eligible to receive a cash refund from the Australian Taxation Office for a percentage of the research and development costs expended by the Subsidiary in Australia. During the year ended December 31, 2016, the Company received $0.4 million from the Australian Taxation Office related to 2015 eligible spending under this incentive program. As of December 31, 2016, the Company estimates it will collect $3.3 million during the year ended December 31, 2017, related to 2016 eligible spending as part of this incentive program. The Company’s estimate of the amount of cash refund it expects to receive in 2017 related to the Australian research and development tax incentive program is included in “Incentive and tax receivables” on the accompanying consolidated balance sheets. In addition, the Subsidiary incurs Goods and Services Tax (“GST”) on services provided by Australian vendors. As an Australian entity, the Subsidiary is entitled to a refund of the GST paid. During the year ended December 31, 2016, the Company received a refund of $0.5 million for GST paid to Australian vendors through September 30, 2016, and the Company estimates it will collect an additional $0.3 million in 2017 for GST on expenses related to Australian vendors incurred during the remainder of 2016. The Company’s estimate of the amount of cash refund it expects to receive related to GST paid is included in “Incentive and tax receivables” on the accompanying consolidated balance sheets. |
Prepaid Expenses and Other Assets | f. Prepaid Expenses and Other Assets Prepaid expenses primarily consist of prepaid preclinical study and clinical trial expenses of $1.5 million and $1.2 million as of December 31, 2016 and 2015, respectively. |
Property and Equipment | g. Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight‑line basis over their estimated useful lives. The Company estimates a life of three years for computer equipment and five years for furniture and fixtures and lab equipment, unless circumstances dictate otherwise. When property and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in other expenses. Repairs and maintenance costs are expensed as incurred. During the year ended December 31, 2016, the Company recognized a loss on the disposal of equipment of $99,147, which is reflected in “Loss on disposal of equipment” on the accompanying consolidated statement of operations. |
Impairment of Long-Lived Assets | h. Impairment of Long‑Lived Assets The Company assesses the recoverability of its long‑lived assets, which include property and equipment, whenever significant events or changes in circumstances indicate impairment may have occurred. If indicators of impairment exist, projected future undiscounted cash flows associated with the asset are compared to its carrying amount to determine whether the asset’s value is recoverable. Any resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge to operating results. For the years ended December 31, 2016, 2015 and 2014, the Company determined that there was no impairment of its long‑lived assets. |
Research and Development | i. Research and Development Research and development costs are expensed as incurred and are primarily comprised of external research and development expenses incurred under arrangements with third parties, such as contract research organizations (“CROs”), consultants and employee related expenses including salaries and benefits. At the end of each reporting period, the Company compares the payments made to each service provider to the estimated progress towards completion of the related project. Factors that the Company considers in preparing these estimates include the number of patients enrolled in studies, milestones achieved and other criteria related to the efforts of its vendors. These estimates will be subject to change as additional information becomes available. Depending on the timing of payments to vendors and estimated services provided, the Company will record net prepaid or accrued expenses related to these costs. Beginning in the fourth quarter of 2015, research and development costs are reduced by the Australian research and development incentive and GST recorded in the respective period. |
Stock-Based Compensation | j. Stock‑Based Compensation The Company measures employee and nonemployee stock‑based awards at grant‑date fair value and records compensation expense on a straight‑line basis over the vesting period of the award. Stock‑based awards issued to non‑employees, if any, are revalued until the award vests. The Company estimates the fair value of restricted stock based on the closing price of the Company’s common stock on the date of grant. The Company uses the Black‑Scholes option pricing model to value its stock option awards. Estimating the fair value of stock option awards requires management to apply judgment and make estimates, including the volatility of the Company’s common stock, the expected term of the Company’s stock options, the expected dividend yield and the fair value of the Company’s common stock on the date of grant. As a result, if factors change and management uses different assumptions, stock‑based compensation expense could be materially different for future awards. The expected life of stock options was estimated using the “simplified method,” as the Company has no historical information to develop reasonable expectations about future exercise patterns and post vesting employment termination behavior for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of option grants. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. |
Revenue Recognition | k. Revenue Recognition Revenue related to research grants and research services for third party product development are recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collectability is reasonably assured. Grant revenue received is deferred until the related expenditures are incurred. Revenue in 2016 and 2015 was entirely related to work performed in connection with grants received prior to 2015. Research services revenue of $0.1 million in 2014 represents fees for research and development activities. |
Income Taxes | l. Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities and the expected benefits of net operating loss carryforwards. The impact of changes in tax rates and laws on deferred taxes, if any, applied during the years in which temporary differences are expected to be settled, is reflected in the financial statements in the period of enactment. The measurement of deferred tax assets is reduced, if necessary, if, based on weight of the evidence, it is more likely than not that some, or all, of the deferred tax assets will not be realized. As of December 31, 2016 and 2015, the Company has concluded that a full valuation allowance is necessary for their net deferred tax assets. The Company had no material amounts recorded for uncertain tax positions, interest or penalties in the accompanying financial statements. |
Net Loss per Share | m. Net Loss Per Share Basic loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities, such as redeemable convertible preferred stock, convertible preferred stock, restricted stock, and stock options, which would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti‑dilutive. The following potentially dilutive securities outstanding as of December 31, 2016, 2015 and 2014 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti‑dilutive: Year ended December 31, 2016 2015 2014 Convertible preferred stock — — Stock options Unvested restricted stock Amounts in the table reflect the common stock equivalents of the noted instruments. |
Foreign Currency | n. Foreign Currency The Company has determined the functional currency of its Australian subsidiary to be the U.S. dollar. The Company translates assets and liabilities of its foreign operations at exchange rates in effect at the balance sheet date. The Company records remeasurement gains and losses on monetary assets and liabilities, such as incentive and tax receivables and accounts payables, which are not in the functional currency of the operation. These remeasurement gains and losses are recorded in the statement of operations as they occur. |
Segment Information | o. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision‑making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one segment. |
Recent Accounting Pronouncements | p . Recent Accounting Pronouncements In August 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which defines management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The pronouncement was effective for annual reporting periods ending after December 15, 2016 with early adoption permitted. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. The pronouncement is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to simplify the accounting and reporting for employee share-based payment transactions. The pronouncement is effective for interim and annual periods beginning after December 31, 2016 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which provides specific guidance related to eight cash flow classification issues. The pronouncement is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash , which requires changes in restricted cash and restricted cash equivalents to be explained on the statement of cash flows by including restricted cash and restricted cash equivalents in the beginning-of-period and end-of-period total cash and cash equivalents shown on the statement of cash flows. The pronouncement is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Summary of potentially dilutive securities excluded from the computation of diluted weighted average shares | Year ended December 31, 2016 2015 2014 Convertible preferred stock — — Stock options Unvested restricted stock |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | |
Summary of financial assets measured at fair value on a recurring basis | Fair Value Measurement Carrying value as of December 31, 2016 as of December 31, 2016 Level 1 Level 2 Level 3 Cash equivalents (money market accounts) $ $ $ — $ — Certificate of deposit (included in prepaid expenses and other current assets) — — $ $ $ — $ — Fair Value Measurement Carrying value as of December 31, 2015 as of December 31, 2015 Level 1 Level 2 Level 3 Cash equivalents (money market accounts) $ $ $ — $ — Certificate of deposit (included in prepaid expenses and other current assets) — — $ $ $ — $ — |
Prepaid Expenses and Other Cu25
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Prepaid Expenses and Other Current Assets | |
Schedule of prepaid expenses and other current assets | December 31, December 31, 2016 2015 Prepaid development expenses $ $ Prepaid insurance Other Total prepaid expenses and other current assets $ $ |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment | |
Schedule of property and equipment | Estimated useful life December 31, December 31, (in years) 2016 2015 Equipment 2-5 $ $ Computer equipment 3-5 Furniture and fixtures 5 Total cost Less accumulated depreciation Property and equipment, net $ $ |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses | |
Schedule of accrued expenses | December 31, December 31, 2016 2015 Accrued compensation $ $ Accrued research and development Other Total accrued expenses $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Schedule of stock-based compensation expense | Year Ended December 31, 2016 Year Ended December 31, 2015 Research and General and Total Research and General and Total Stock option grants $ $ $ $ $ $ Restricted stock awards $ $ $ $ $ $ |
Summary of stock option activity | Weighted Average Weighted Grant Date Average Options Fair Value Exercise Price Outstanding as of December 31, 2014 $ $ Granted under the 2014 Plan $ $ Exercised $ $ Outstanding as of December 31, 2015 $ $ Granted under the 2014 Plan $ $ Granted as an inducement grant $ $ Forfeited $ $ Outstanding as of December 31, 2016 $ $ |
Summary of restricted stock activity | Weighted Average Grant Date Shares Fair Value Unvested as of December 31, 2014 $ Vested $ Unvested as of December 31, 2015 $ Vested $ Unvested as of December 31, 2016 $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Schedule of U.S. and foreign loss before income taxes | Year ended December 31, 2016 2015 2014 United States $ $ $ Foreign — Total $ $ $ |
Schedule of components of the net deferred income tax asset | December 31, 2016 December 31, 2015 Deferred tax assets: Net operating loss carry‑forwards $ $ Startup costs — Research and development credit carry‑forwards Deferred revenue — Stock-based compensation Other — Gross deferred tax assets Deferred tax liabilities: Accumulated depreciation Gross deferred tax liabilities Less valuation allowance Net deferred tax asset $ — $ — |
Reconciliation of income tax expense (benefit) at the statutory federal income tax rate and income taxes | Year ended December 31, 2016 2015 2014 Federal income tax benefit at statutory rate % % % State income tax, net of federal benefit % % % Foreign tax rate differential % % — % Nondeductible research and development expenses % % — % Other permanent differences — % % % Research and development credit benefit % % % Change in valuation allowance % % % Effective income tax rate % % — % |
Quarterly Financial Data (una30
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data (unaudited) | |
Schedule of Quarterly Financial Data (unaudited) | (13) Quarterly Financial Data (unaudited The following information has been derived from unaudited consolidated financial statements that, in the opinion of management, include all recurring adjustments necessary for a fair statement of such information. 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ $ — $ — $ — Operating expenses: Research and development General and administrative Total operating expenses Loss from operations Other income (expense): Interest income (expense), net Foreign exchange loss Loss on disposal of equipment — — — Total other income (expense) Loss before income taxes Income tax expense (benefit) — — Net loss $ $ $ $ Net loss per share basic and diluted $ $ $ $ Basic and diluted weighted average shares outstanding 2015 First Quarter (1) Second Quarter (1) Third Quarter Fourth Quarter Revenue $ $ $ $ Operating expenses: Research and development General and administrative Total operating expenses Loss from operations Other income (expense): Interest income (expense), net Loss before income taxes Income tax expense — — — Net loss $ $ $ $ Net loss per share basic and diluted $ $ $ $ Basic and diluted weighted average shares outstanding |
Nature of Business and Liquid31
Nature of Business and Liquidity (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)item$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Sales of Stock | |||||
Accumulated deficit | $ 45,968,562 | $ 22,580,055 | |||
Proceeds from issuance of common stock | 10,000,525 | 42,122,004 | $ 1,409 | ||
Issuance of common stock, net of issuance costs | $ 10,000,525 | $ 42,122,004 | $ 125,367 | ||
Number of Phase 3 Studies | |||||
Number of Phase 3 Studies with sufficient cash to fund operations | item | 5 | ||||
Number of Phase 3 programs with sufficient funds through 2019 | item | 1 | ||||
IPO | |||||
Sales of Stock | |||||
Shares issued | shares | 3,450,000 | ||||
Offering price per share | $ / shares | $ 14 | ||||
Gross proceeds from IPO | $ 48,300,000 | ||||
Issuance of common stock, net of issuance costs | $ 42,100,000 | ||||
IPO | Convertible preferred stock | |||||
Sales of Stock | |||||
Number of shares of common stock into which convertible preferred stock was converted | shares | 3,704,215 | ||||
Open Market Offering | |||||
Sales of Stock | |||||
Shares issued | shares | 794,906 | ||||
Weighted average selling price per share | $ / shares | $ 13.39 | ||||
Proceeds from issuance of common stock | $ 10,600,000 | ||||
Issuance of common stock, net of issuance costs | $ 10,000,000 | ||||
Follow On Public Offering | |||||
Sales of Stock | |||||
Shares issued | shares | 3,220,000 | ||||
Offering price per share | $ / shares | $ 18 | ||||
Proceeds from issuance of common stock | $ 58,000,000 | ||||
Issuance of common stock, net of issuance costs | $ 54,300,000 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Incentive and Tax Receivable | ||||
Prepaid preclinical trial expenses | $ 1,473,402 | $ 1,473,402 | $ 1,211,668 | |
Loss on disposal of equipment | 99,147 | 99,147 | ||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 | |
Research services revenue | $ 100,000 | |||
Computer equipment | ||||
Incentive and Tax Receivable | ||||
Estimated useful life (in years) | P3Y | |||
Equipment | ||||
Incentive and Tax Receivable | ||||
Estimated useful life (in years) | P5Y | |||
Furniture and fixtures | ||||
Incentive and Tax Receivable | ||||
Estimated useful life (in years) | P5Y | |||
Australian Taxation Office | ||||
Incentive and Tax Receivable | ||||
Cash refund from research and development incentive program | $ 400,000 | |||
Cash refund from GST paid | 500,000 | |||
Incentive And Tax Receivables | Australian Taxation Office | ||||
Incentive and Tax Receivable | ||||
Estimated incentive receivable | 3,300,000 | 3,300,000 | ||
Estimated GST receivable | $ 300,000 | $ 300,000 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Anti-dilutive securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Anti-dilutive securities | 2,062,195 | 2,036,070 | 4,826,558 |
Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Anti-dilutive securities | 3,704,126 | ||
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Anti-dilutive securities | 1,808,493 | 1,637,399 | 542,550 |
Restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Anti-dilutive securities | 253,702 | 398,671 | 579,882 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Segments (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Information | |
Number of operating segments | 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying value | ||
Fair value on a recurring basis | ||
Cash equivalents (money market accounts) | $ 30,485,212 | $ 41,032,351 |
Certificate of deposit (included in prepaid expenses and other current assets) | 20,000 | 20,000 |
Total | 30,505,212 | 41,052,351 |
Recurring | Fair Value Measurement | Level 1 | ||
Fair value on a recurring basis | ||
Cash equivalents (money market accounts) | 30,485,212 | 41,032,351 |
Certificate of deposit (included in prepaid expenses and other current assets) | 20,000 | 20,000 |
Total | $ 30,505,212 | $ 41,052,351 |
Prepaid Expenses and Other Cu36
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid Expenses and Other Current Assets | ||
Prepaid development expenses | $ 1,473,402 | $ 1,211,668 |
Prepaid insurance | 321,463 | 282,440 |
Other | 36,093 | 51,809 |
Total prepaid expenses and other current assets | $ 1,830,958 | $ 1,545,917 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment | |||
Total cost | $ 212,259 | $ 257,276 | |
Less accumulated depreciation | (68,877) | (29,630) | |
Property and equipment, net | 143,382 | 227,646 | |
Depreciation expense | $ 75,301 | 26,027 | $ 27,063 |
Equipment | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | P5Y | ||
Total cost | $ 85,417 | 139,526 | |
Equipment | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | P2Y | ||
Equipment | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | P5Y | ||
Computer equipment | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | P3Y | ||
Total cost | $ 27,111 | 23,632 | |
Computer equipment | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | P3Y | ||
Computer equipment | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | P5Y | ||
Furniture and fixtures | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | P5Y | ||
Total cost | $ 99,731 | $ 94,118 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses | ||
Accrued compensation | $ 1,349,108 | $ 1,047,530 |
Accrued research and development | 2,628,681 | 943,295 |
Other | 307,118 | 282,166 |
Total accrued expenses | $ 4,284,907 | $ 2,272,991 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2014 | Apr. 30, 2007 | |
Long-term debt | |||
Repayment of borrowings | $ 499,996 | ||
Secured Debt | Forgivable Loan | KEDFA | |||
Long-term debt | |||
Principal amount | $ 500,000 | ||
Repayment of borrowings | $ 499,996 |
Redeemable Convertible Prefer40
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - Convertible Preferred Stock (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity | ||||
Public offering, threshold amount for conversion | $ 25,000,000 | |||
Temporary equity, liquidation preference (in dollars per share) | $ 1.75 | |||
Redemption price (in dollars per share) | $ 1.75 | |||
Accretion of dividends towards redemption | $ 48,078 | |||
Redeemable convertible preferred stock Series A | ||||
Equity | ||||
Convertible preferred stock, par value (in dollars per share) | $ 0.0001 | |||
Dividend rate (as a percent) | 6.00% | |||
Accretion of unamortized issuance cost to redemption value | $ 1,309 | |||
Accretion of dividends towards redemption | $ 24,134 | |||
Redeemable convertible preferred stock Series B | ||||
Equity | ||||
Convertible preferred stock, par value (in dollars per share) | $ 0.0001 | |||
Dividend rate (as a percent) | 6.00% | |||
Accretion of unamortized issuance cost and beneficial conversion feature to redemption value | $ 38,568 | |||
Accretion of dividends towards redemption | $ 23,943 | |||
Shares issued | 200,002 | 250,000 | ||
Proceeds from issuance of shares, gross | $ 350,000 | |||
Stock issuance costs | 3,089 | $ 3,089 | ||
Proceeds from issuance of shares, net | $ 346,911 | $ 347,411 | ||
Number of warrants (in shares) | 49,998 | |||
Exercise of warrants (in shares) | 49,998 | |||
Proceeds from exercise of warrants | $ 500 |
Redeemable Convertible Prefer41
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - Recapitalization Transactions (Details) | May 06, 2014shares | Apr. 30, 2014shares | Oct. 31, 2014shares | Sep. 30, 2014USD ($) | May 31, 2014USD ($)shares | Jan. 31, 2014shares | Oct. 31, 2014shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares |
Equity | ||||||||||
Proceeds from issuance of common stock | $ | $ 10,000,525 | $ 42,122,004 | $ 1,409 | |||||||
Noncash share-based compensation expense, nonemployees | $ | 2,063,565 | |||||||||
Noncash share-based compensation expense, employees | $ | $ 3,269,366 | $ 1,600,625 | ||||||||
General and Administrative | Existing Investors and Employees | ||||||||||
Equity | ||||||||||
Noncash share-based compensation expense, employees | $ | $ 123,958 | |||||||||
General and Administrative | New Investor | ||||||||||
Equity | ||||||||||
Noncash share-based compensation expense, nonemployees | $ | $ 958,914 | $ 792,000 | ||||||||
Common stock | ||||||||||
Equity | ||||||||||
Issuance of common stock (in shares) | 797,871 | 794,906 | 3,450,000 | 74,923 | ||||||
Number of shares forfeited | 359,042 | |||||||||
Number of shares issued as a result of conversion | 1,046,847 | |||||||||
Common stock | Existing Investors and Employees | ||||||||||
Equity | ||||||||||
Issuance of common stock (in shares) | 74,923 | |||||||||
Proceeds from issuance of common stock | $ | $ 1,409 | |||||||||
Common stock | New Investor | ||||||||||
Equity | ||||||||||
Issuance of common stock (in shares) | 478,723 | |||||||||
Number of shares forfeited | 41,667 | |||||||||
Common stock | Founder | ||||||||||
Equity | ||||||||||
Issuance of common stock (in shares) | 319,148 | |||||||||
Number of shares forfeited | 359,042 | |||||||||
Convertible preferred stock | ||||||||||
Equity | ||||||||||
Shares issued | 720,002 | 6,244,051 | 6,244,051 | |||||||
Number of shares converted | 6,964,053 | (720,002) | ||||||||
Convertible preferred stock | Common stock | ||||||||||
Equity | ||||||||||
Conversion ratio | 0.57434 | |||||||||
Redeemable convertible preferred stock Series A | ||||||||||
Equity | ||||||||||
Number of shares converted | 720,002 | 720,002 | ||||||||
Redeemable convertible preferred stock Series B | ||||||||||
Equity | ||||||||||
Shares issued | 200,002 | 250,000 | ||||||||
Number of shares converted | 1,248,109 | 1,248,109 |
Redeemable Convertible Prefer42
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - Series I Preferred Stock and Common Stock Transactions (Details) | May 06, 2014shares | Apr. 30, 2014shares | Aug. 31, 2015USD ($)$ / sharesshares | Oct. 31, 2014shares | Sep. 30, 2014USD ($)shares | May 31, 2014USD ($)shares | Mar. 31, 2017USD ($)$ / sharesshares | Oct. 31, 2014USD ($)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Aug. 31, 2015item$ / shares | Dec. 31, 2013$ / shares |
Equity | |||||||||||||
Number of directors elected by preferred stockholders, as a class | item | 4 | ||||||||||||
Number of directors elected by Common stockholders, as a class | item | 1 | ||||||||||||
Proceeds from issuance of common stock | $ 10,000,525 | $ 42,122,004 | $ 1,409 | ||||||||||
Issuance of common stock, net of issuance costs | $ 10,000,525 | $ 42,122,004 | 125,367 | ||||||||||
Temporary equity, liquidation preference (in dollars per share) | $ / shares | $ 1.75 | ||||||||||||
Noncash share-based compensation expense, nonemployees | 2,063,565 | ||||||||||||
General and Administrative | New Investor | |||||||||||||
Equity | |||||||||||||
Noncash share-based compensation expense, nonemployees | $ 958,914 | $ 792,000 | |||||||||||
Third Parties | General and Administrative | |||||||||||||
Equity | |||||||||||||
Noncash share-based compensation expense, nonemployees | $ 188,693 | ||||||||||||
IPO | |||||||||||||
Equity | |||||||||||||
Shares issued | shares | 3,450,000 | ||||||||||||
Offering price per share | $ / shares | $ 14 | $ 14 | |||||||||||
Gross proceeds from IPO | $ 48,300,000 | ||||||||||||
Issuance of common stock, net of issuance costs | $ 42,100,000 | ||||||||||||
Open Market Offering | |||||||||||||
Equity | |||||||||||||
Shares issued | shares | 794,906 | ||||||||||||
Weighted average selling price per share | $ / shares | $ 13.39 | ||||||||||||
Proceeds from issuance of common stock | $ 10,600,000 | ||||||||||||
Issuance of common stock, net of issuance costs | $ 10,000,000 | ||||||||||||
Follow On Public Offering | |||||||||||||
Equity | |||||||||||||
Shares issued | shares | 3,220,000 | ||||||||||||
Offering price per share | $ / shares | $ 18 | ||||||||||||
Proceeds from issuance of common stock | $ 58,000,000 | ||||||||||||
Issuance of common stock, net of issuance costs | $ 54,300,000 | ||||||||||||
Common stock | |||||||||||||
Equity | |||||||||||||
Number of shares of common stock into which convertible preferred stock was converted | shares | 1,046,847 | ||||||||||||
Shares issued | shares | 797,871 | 794,906 | 3,450,000 | 74,923 | |||||||||
Issuance of common stock, net of issuance costs | $ 795 | $ 3,450 | $ 7 | ||||||||||
Number of shares forfeited | shares | 359,042 | ||||||||||||
Common stock | New Investor | |||||||||||||
Equity | |||||||||||||
Shares issued | shares | 478,723 | ||||||||||||
Shares issued for services | shares | 579,614 | ||||||||||||
Number of shares forfeited | shares | 41,667 | ||||||||||||
Common stock | Third Parties | |||||||||||||
Equity | |||||||||||||
Shares issued for services | shares | 114,047 | ||||||||||||
Convertible preferred stock | |||||||||||||
Equity | |||||||||||||
Shares issued | shares | 720,002 | 6,244,051 | 6,244,051 | ||||||||||
Proceeds from issuance of shares, gross | $ 13,214,912 | ||||||||||||
Stock issuance costs | 289,878 | $ 289,878 | |||||||||||
Proceeds from issuance of shares, net | $ 12,925,034 | $ 12,925,034 | |||||||||||
Convertible preferred stock | Minimum | |||||||||||||
Equity | |||||||||||||
Temporary equity, liquidation preference (in dollars per share) | $ / shares | $ 3.98 | $ 3.98 | |||||||||||
Convertible preferred stock | IPO | |||||||||||||
Equity | |||||||||||||
Number of shares of common stock into which convertible preferred stock was converted | shares | 3,704,215 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Narrative (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options | |||
Stock-Based Compensation | |||
Granted as an inducement grant (in shares) | 150,000 | ||
Exercise price (in dollars per share) | $ 3.98 | $ 10.22 | $ 10.49 |
2014 Plan | |||
Stock-Based Compensation | |||
Shares authorized for grant | 2,450,000 | ||
Threshold increase of authorized shares for issuance | 1,500,000 | ||
Threshold increase of authorized shares for issuance (as a percent) | 10.00% | ||
Shares available for issuance | 195,668 | ||
2014 Plan | Stock options | |||
Stock-Based Compensation | |||
Contractual life (in years) | 10 years | ||
Options granted (in shares) | 135,000 | 1,110,806 | |
Executive Officer and Certain Consultants | 2014 Plan | Stock options | |||
Stock-Based Compensation | |||
Options granted (in shares) | 542,550 | ||
Exercise price (in dollars per share) | $ 3.98 | ||
Executive Officer and Certain Consultants | 2014 Plan | Stock options | Upon closing of IPO | |||
Stock-Based Compensation | |||
Vesting percentage | 25.00% | ||
Executive Officer and Certain Consultants | 2014 Plan | Stock options | Period following closing of IPO | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Executive Officer and Certain Consultants | 2014 Plan | Restricted stock | |||
Stock-Based Compensation | |||
Shares granted | 579,882 | ||
Executive Officer and Certain Consultants | 2014 Plan | Restricted stock | Upon closing of IPO | |||
Stock-Based Compensation | |||
Vesting percentage | 25.00% | ||
Executive Officer and Certain Consultants | 2014 Plan | Restricted stock | Period following closing of IPO | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Employees and Board Of Directors | |||
Stock-Based Compensation | |||
Granted as an inducement grant (in shares) | 150,000 | ||
Employees and Board Of Directors | Stock options | |||
Stock-Based Compensation | |||
Options granted (in shares) | 285,000 | ||
Employees and Board Of Directors | 2014 Plan | Stock options | |||
Stock-Based Compensation | |||
Options granted (in shares) | 1,001,977 | ||
Board of Directors | Stock options | |||
Stock-Based Compensation | |||
Vesting period | 1 year | ||
Board of Directors | 2014 Plan | Stock options | |||
Stock-Based Compensation | |||
Vesting percentage | 33.00% | ||
Vesting period | 3 years | ||
Employees | Stock options | |||
Stock-Based Compensation | |||
Vesting percentage | 25.00% | ||
Vesting period | 3 years | ||
Employees | Stock options | Upon closing of IPO | |||
Stock-Based Compensation | |||
Vesting percentage | 6.25% | ||
Employees | 2014 Plan | Stock options | |||
Stock-Based Compensation | |||
Vesting percentage | 25.00% | ||
Vesting period | 3 years |
Stock-Based Compensation - St44
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) | Jul. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Stock-Based Compensation | |||
Stock-based compensation | $ 3,269,366 | $ 1,600,625 | |
Research and Development | |||
Stock-Based Compensation | |||
Stock-based compensation | 1,281,108 | 545,901 | |
General and Administrative | |||
Stock-Based Compensation | |||
Stock-based compensation | 1,988,258 | 1,054,724 | |
Stock options | |||
Stock-Based Compensation | |||
Stock-based compensation | 3,029,526 | 1,263,676 | |
Stock options | Research and Development | |||
Stock-Based Compensation | |||
Stock-based compensation | 1,137,639 | 403,395 | |
Stock options | General and Administrative | |||
Stock-Based Compensation | |||
Stock-based compensation | 1,891,887 | 860,281 | |
Restricted stock | |||
Stock-Based Compensation | |||
Stock-based compensation | 239,840 | 336,949 | |
Restricted stock | Research and Development | |||
Stock-Based Compensation | |||
Stock-based compensation | 143,469 | 142,506 | |
Restricted stock | General and Administrative | |||
Stock-Based Compensation | |||
Stock-based compensation | $ 96,371 | $ 194,443 | |
2014 Plan | Stock options | |||
Stock-Based Compensation | |||
Stock-based compensation | $ 0 | ||
2014 Plan | Restricted stock | |||
Stock-Based Compensation | |||
Stock-based compensation | $ 0 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options Activity, Unrecognized Costs, Valuation (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Options | ||
Balance (in shares) | 1,637,399 | 542,550 |
Granted as an inducement grant (in shares) | 150,000 | |
Exercised (in shares) | (15,957) | |
Forfeited (in shares) | (113,906) | |
Balance (in shares) | 1,808,493 | 1,637,399 |
Weighted Average Grant Date Fair Value | ||
Balance (in dollars per share) | $ 6.47 | $ 0.84 |
Granted as an inducement grant (in dollars per share) | 6.95 | |
Forfeited (in dollars per share) | 8.12 | |
Exercised (in dollars per share) | 0.84 | |
Balance (in dollars per share) | 6.36 | 6.47 |
Weighted average exercise price per share | ||
Balance (in dollars per shares) | 10.49 | 3.98 |
Granted as an inducement grant (in dollars per share) | 10.23 | |
Forfeited (in dollars per share) | 12.67 | |
Exercised (in dollars per share) | 3.98 | |
Balance (in dollars per shares) | $ 10.22 | $ 10.49 |
Additional disclosures | ||
Expected stock based compensation expense | $ 7.3 | |
Recognition period for compensation costs | 2 years 6 months 22 days | |
Options exercisable (in shares) | 641,375 | |
Options exercisable grant date fair value (in dollars per share) | $ 5.18 | |
Stock options expected to vest (in shares) | 1,154,618 | |
Stock options weighted average contractual life | 8 years 6 months | |
Stock options aggregate intrinsic value | $ 9.7 | |
Assumptions and Methodology | ||
Expected volatility (as a percent) | 77.00% | |
Minimum expected volatility (as a percent) | 76.00% | |
Maximum expected volatility (as a percent) | 77.00% | |
Minimum risk-free interest rate (as a percent) | 1.40% | 1.70% |
Maximum risk-free interest rate (as a percent) | 2.20% | 2.00% |
Dividend yield (as a percent) | 0.00% | 0.00% |
2014 Plan | ||
Options | ||
Granted (in shares) | 135,000 | 1,110,806 |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 5.96 | $ 9.13 |
Weighted average exercise price per share | ||
Granted (in dollars per shares) | $ 8.99 | $ 13.58 |
Minimum | ||
Assumptions and Methodology | ||
Expected term (in years) | 5 years 6 months | 5 years 9 months |
Maximum | ||
Assumptions and Methodology | ||
Expected term (in years) | 6 years 3 months | 6 years 3 months |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity, Unrecognized Costs (Details) - 2014 Plan - Restricted stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted stock award activity | ||
Unvested balance (in shares) | 398,671 | 579,882 |
Vested (in shares) | (144,969) | (181,211) |
Unvested balance (in shares) | 253,702 | 398,671 |
Weighted Average Grant Date Fair Value | ||
Unvested balance (in dollars per share) | $ 1.65 | $ 1.65 |
Vested (in dollars per share) | 1.65 | 1.65 |
Unvested balance (in dollars per share) | $ 1.65 | $ 1.65 |
Unrecognized compensation expense related to unvested awards | $ 0.4 | |
Recognition period for compensation costs | 1 year 7 months 2 days | |
Unvested restricted stock awards expected to vest (in shares) | 253,702 |
Income Taxes - Loss Before Taxe
Income Taxes - Loss Before Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. and foreign loss before income taxes | |||||||||||
United States | $ (18,803,227) | $ (12,145,964) | $ (5,669,577) | ||||||||
Foreign | (4,612,823) | (377,843) | |||||||||
Loss before income taxes | $ (6,896,663) | $ (5,981,081) | $ (6,285,666) | $ (4,252,640) | $ (5,411,718) | $ (3,993,744) | $ (1,626,376) | $ (1,491,969) | $ (23,416,050) | $ (12,523,807) | $ (5,669,577) |
Income Taxes - Carryforwards (D
Income Taxes - Carryforwards (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Research Tax Credit Carryforward | ||
Operating loss and tax credit carryforwards | ||
Tax credit carryforwards | $ 1.3 | $ 0.4 |
Federal | ||
Operating loss and tax credit carryforwards | ||
Net operating loss carryforwards | 36.5 | 17.7 |
State | ||
Operating loss and tax credit carryforwards | ||
Net operating loss carryforwards | 34.4 | $ 21.6 |
Foreign | Australian Taxation Office | ||
Operating loss and tax credit carryforwards | ||
Net operating loss carryforwards | $ 1.2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets | |||
Net operating loss carry‑forwards | $ 14,877,358 | $ 6,531,375 | |
Startup costs | 817,052 | ||
Research and development credit carry-forwards | 1,337,748 | 425,282 | |
Deferred revenue | 304,264 | ||
Stock-based compensation | 1,576,280 | 227,093 | |
Other | 43,004 | ||
Gross deferred tax assets | 17,834,390 | 8,305,066 | |
Deferred tax liabilities | |||
Accumulated depreciation | (21,632) | (18,519) | |
Gross deferred tax liabilities | (21,632) | (18,519) | |
Less valuation allowance | (17,812,758) | (8,286,547) | |
Net deferred tax asset | 0 | 0 | |
Increase in valuation allowance | 9,500,000 | 4,700,000 | |
Unrecognized tax benefits | |||
Unrecognized Tax Benefits | $ 0 | $ 0 | |
Reconciliation of income tax expense (benefit) at the statutory federal income tax rate and income taxes | |||
Federal income tax benefit at statutory rate | 34.00% | 34.00% | 34.00% |
State income tax, net of federal benefit | 7.80% | 2.90% | (0.30%) |
Foreign tax rate differential | (0.20%) | (0.10%) | |
Nondeductible research and development expenses | (4.70%) | (1.10%) | |
Other permanent differences | (0.10%) | (0.70%) | |
Research and development credit benefit | 3.90% | 2.00% | 1.60% |
Change in valuation allowance | (40.70%) | (37.80%) | (34.60%) |
Effective income tax rate | 0.10% | (0.20%) | 0.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2014USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)item | |
Commitments and contingencies | ||||
Grant funds received | $ 0 | $ 0 | ||
Deferred grant revenue | 833,975 | 841,225 | ||
Prepaid expenses and other current assets | $ 1,830,958 | 1,545,917 | ||
Requisite age requirement for 401(k) plan (in years) | item | 21 | |||
Discretionary matching contributions made by the Company | $ 0 | 0 | $ 0 | |
Operating lease commitments due: | ||||
December 31, 2017 | 156,478 | |||
December 31, 2018 | 200,082 | |||
December 31, 2019 | 203,755 | |||
December 31, 2020 | 85,535 | |||
Total lease expense | 101,609 | 77,192 | $ 63,880 | |
U.S. Federal Agency | Grant Revenue | ||||
Commitments and contingencies | ||||
Number of U.S. Federal agencies | item | 1 | |||
Concentration, as a percent | 85.00% | |||
AARA - Transdermal Cannabinoid Prodrug Treatment for Cannabis Withdrawal and Dependence | Federal Grants | ||||
Commitments and contingencies | ||||
Deferred grant revenue | 800,000 | 800,000 | ||
Prepaid expenses and other current assets | $ 800,000 | $ 800,000 | ||
ACP | Patent Assignment Consideration Agreement | General and Administrative | ||||
Commitments and contingencies | ||||
Termination fee | $ 500,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | |
Affiliates Of New Investor | Reimbursement of stock issuance costs | |||
Related Party Transactions | |||
Amount of related party transaction | $ 250,000 | ||
Affiliates Of New Investor | Services | |||
Related Party Transactions | |||
Amount of related party transaction | 250,000 | ||
New Investor | Legal expenses | |||
Related Party Transactions | |||
Amount of related party transaction | 200,000 | ||
New Investor | Stock issuance costs legal expense | |||
Related Party Transactions | |||
Amount of related party transaction | $ 37,366 | ||
New Investor | Termination Agreement | |||
Related Party Transactions | |||
Amount of related party transaction | $ 500,000 | ||
Payment agreed upon to terminate certain agreements | $ 500,000 |
Quarterly Financial Data (una52
Quarterly Financial Data (unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data | |||||||||||
Revenue | $ 7,250 | $ 49,275 | $ 199,407 | $ 15,390 | $ 14,828 | $ 7,250 | $ 278,900 | $ 810,012 | |||
Operating expenses: | |||||||||||
Research and development | $ 4,904,363 | $ 4,504,097 | $ 4,807,177 | 2,568,989 | 3,309,008 | 2,271,968 | 1,010,989 | 853,704 | 16,784,626 | 7,445,669 | 2,401,406 |
General and administrative | 1,780,304 | 1,493,461 | 1,476,357 | 1,680,130 | 2,156,388 | 1,922,755 | 631,474 | 653,773 | 6,430,252 | 5,364,390 | 4,076,339 |
Total operating expenses | 6,684,667 | 5,997,558 | 6,283,534 | 4,249,119 | 5,465,396 | 4,194,723 | 1,642,463 | 1,507,477 | 23,214,878 | 12,810,059 | 6,477,745 |
Loss from operations | (6,684,667) | (5,997,558) | (6,283,534) | (4,241,869) | (5,416,121) | (3,995,316) | (1,627,073) | (1,492,649) | (23,207,628) | (12,531,159) | (5,667,733) |
Other income (expense): | |||||||||||
Interest income (expense), net | 26,980 | 22,747 | 18,118 | 12,377 | 4,403 | 1,572 | 697 | 680 | 80,222 | 7,352 | (1,844) |
Foreign exchange loss | (139,829) | (6,270) | (20,250) | (23,148) | (189,497) | ||||||
Loss on disposal of equipment | (99,147) | (99,147) | |||||||||
Total other income (expense) | (211,996) | 16,477 | (2,132) | (10,771) | (208,422) | 7,352 | (1,844) | ||||
Loss before income taxes | (6,896,663) | (5,981,081) | (6,285,666) | (4,252,640) | (5,411,718) | (3,993,744) | (1,626,376) | (1,491,969) | (23,416,050) | (12,523,807) | (5,669,577) |
Income tax expense (benefit) | 56,277 | (28,734) | (27,543) | (27,543) | 27,543 | ||||||
Net loss applicable to common stockholders | $ (6,896,663) | $ (5,981,081) | $ (6,229,389) | $ (4,281,374) | $ 5,439,261 | $ 3,993,744 | $ 1,626,376 | $ 1,491,969 | $ (23,388,507) | $ (12,551,350) | $ (5,757,531) |
Per share information: | |||||||||||
Net loss per share basic and diluted | $ (0.71) | $ (0.67) | $ (0.70) | $ (0.49) | $ (0.62) | $ (0.66) | $ (1.12) | $ (1.03) | $ (2.58) | $ (2.82) | $ (6.44) |
Basic and diluted weighted average shares outstanding | 9,678,924 | 8,912,508 | 8,860,592 | 8,823,951 | 8,787,855 | 6,045,211 | 1,449,865 | 1,449,865 | 9,070,232 | 4,457,719 | 894,575 |
Previously Reported | |||||||||||
Per share information: | |||||||||||
Net loss per share basic and diluted | $ (0.80) | $ (0.74) |