Pulse Biosciences (PLSE) 10-Q 10 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Pulse Biosciences, Inc.
Entity Filer Category	Smaller Reporting Company
Entity Central Index Key	1,625,101
Trading Symbol	plse
Amendment Flag	false
Document Type	10-Q
Document Fiscal Period Focus	Q2
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		13,315,297

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash	$ 20,214	$ 3,606
Investments	495
Prepaid expenses and other current assets	337	44
Deferred offering costs		347
Total current assets	21,046	3,997
Equipment, net of accumulated depreciation	344	329
Intangible assets, net of accumulated amortization	6,876	7,208
Goodwill	2,791	2,791
Total assets	31,057	14,325
Current liabilities:
Accounts payable	333	262
Accrued expenses	257	398
Total current liabilities	590	660
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; authorized - 5,000 shares; issued and outstanding - none
Common stock, $0.001 par value: authorized – 45,000 shares; issued and outstanding – 13,315 shares and 7,565 shares at June 30, 2016 and December 31, 2015, respectively	13	8
Additional paid-in-capital	37,484	16,745
Accumulated deficit	(7,030)	(3,088)
Total stockholders' equity	30,467	13,665
Total liabilities and stockholders' equity	$ 31,057	$ 14,325

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	13,315,000	7,565,000
Common stock, shares outstanding	13,315,000	7,565,000

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Consolidated Statements Of Operations [Abstract]
Revenue:
Operating expenses:
General and administrative	642	243	1,170	399
Research and development	1,453	547	2,443	968
Amortization of intangible assets	166	166	332	332
Total operating expenses	2,261	956	3,945	1,699
Other income (expense):
Interest income	3		3
Total other income, net	3		3
Loss from operations, before income taxes	(2,258)	(956)	(3,942)	(1,699)
Income tax benefit		357		656
Net loss	$ (2,258)	$ (599)	$ (3,942)	$ (1,043)
Net loss per common share - basic and diluted	$ (0.23)	$ (0.08)	$ (0.45)	$ (0.14)
Weighted average number of common shares outstanding - basic and diluted	9,791	7,565	8,678	7,565

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (3,942)	$ (1,043)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of equipment	46	20
Amortization of intangible assets	332	332
Stock-based compensation	389	161
Deferred income taxes		(656)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(293)	(25)
Deferred offering costs	(213)
Accounts payable	71	118
Accrued expenses	(141)	93
Deferred grant revenue		(39)
Net cash used in operating activities	(3,751)	(1,039)
Cash flows from investing activities:
Purchase of equipment	(61)	(34)
Purchase of investments	(495)
Net cash used in investing activities	(556)	(34)
Cash flows from financing activities:
Proceeds from issuance of common stock from initial public offering, net of issuance costs	20,915
Net cash provided by financing activities	20,915
Net increase (decrease) in cash	16,608	(1,073)
Cash and cash equivalents at beginning of period	3,606	7,009
Cash and cash equivalents at end of period	20,214	$ 5,936
Supplemental disclosure of noncash investing and financing activities:
Reclassification of deferred offering costs to additional paid-in capital upon initial public offering	$ 560

Description Of The Business

Description Of The Business	6 Months Ended
	Jun. 30, 2016
Description Of The Business [Abstract]
Description Of The Business	1. Description of the Business Pulse Biosciences, Inc. is a medical technology company developing a proprietary non-thermal tissue treatment platform based on Nano-Pulse Electro-Signaling, or NPES, for biomedical applications. The Company is currently conducting research and development activities in pursuit of multiple commercial applications of its technology, but has not yet commercialized or recognized revenue from any of its potential applications. Pulse Biosciences, Inc. incorporated in Nevada on May 19, 2014 under the name Electroblate, Inc . Electroblate, Inc. changed its name to Pulse Biosciences, Inc. effective December 8, 2015. The Company’s corporate office and research facility are located in Burlingame, California. Initial Public Offering On May 13, 2016, the Company’s registration statement on Form S-1 (File No. 333-208694), as amended (the “Registration Statement”), relating to its initial public offering (“IPO”) was declared effective by the Securities and Exchange Commission (“SEC”) and closed on May 23, 2016, whereby the Company sold 5,000,000 shares of common stock at a price of $4.00 per share. The shares began trading on the NASDAQ Capital Market under the trading symbol “PLSE” on May 18, 2016. O n June 21, 2016, the underwriters exercised their overallotment option to purchase an additional 749,846 shares of common stock at $4.00 per share, which transaction closed on June 21, 2016. The Company received net proceeds of approximately $20.4 million from the initial public offering, including proceeds from the underwriter overallotment option, net of underwriting discounts , commissions, and offering costs.

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Summary Of Significant Accounting Policies [Abstract]
Summary Of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements (“Financial Statements”) have been prepared on a consistent basis with the Company’s December 31, 2015 audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. The Financial Statements have been prepared in accordance with the rules and regulations of the SEC and, as permitted by such rules and regulations, omit certain information and footnote disclosures necessary to present the financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Registration Statement. The results of operations for the six-month period ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire year or any future periods. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Estimates include, but are not limited to, the valuation of cash equivalents and investments, the valuation and recognition of share-based compensation, the useful lives assigned to long-lived assets and the computation provisions for income taxes. Actual results could differ materially from these estimates. Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies during the six-month period ended June 30, 2016, as compared to the significant accounting policies described in the Registration Statement. The policies described below are not changes but are accounting policies adopted as they became applicable to the Company. Fair Value of Financial Instruments The following table sets forth the fair value of the Company’s financial assets measured on a recurring basis as of June 30, 2016 and December 31, 2015, respectively (in thousands):    June 30, 2016 December 31, 2015  Assets Classification Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Money market funds Cash and cash equivalents $ 20,006 $ — $ — $ 20,006 $ — $ — $ — $ —  Commercial paper Investments — 495 — 495 — — — —  Total assets measured at fair value $ 20,006 $ 495 $ — $ 20,501 $ — $ — $ — $ —  The Company did not have any financial liabilities measured on a recurring basis as of June 30, 2016 or December 31, 2015. The Company classifies its investments in money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. The Company classifies its Level 2 instruments based on market pricing and other observable inputs. The Company did not classify any of its investments within Level 3 of the fair value hierarchy. During the six-month period ended June 30, 2016, there were no transfers between Level 1, Level 2 or Level 3 assets or liabilities reported at fair value on a recurring basis and the valuation techniques used did not change compared to the Company’s established practice.  Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Investments The Company has designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recognized in accumulated other comprehensive income (loss) (“OCI”) in stockholders’ equity. The cost of marketable securities is adjusted for the amortization of premiums and discounts to expected maturity. Premium and discount amortization is included in other income, net. Realized gains and losses, as well as interest income, on available-for-sale securities are also included in other income, net. Unrealized gain at June 30, 2016 was immaterial. The cost of securities sold is based on the specific identification method. The Company includes all of its available-for-sale securities in current assets. All of the Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investments fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security and whether or not the Company will be required to sell the security before the recovery of its amortized cost. During the six-month period ended June 30, 2016, the Company did not recognize any impairment charges on its investments as it is more likely than not that the Company will recover their amortized cost basis upon sale or maturity. The Company did not hold investment securities at any time during the prior year.  Recent Accounting Pronouncements During May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued an update to defer the effective date of this update by one year. This updated standard becomes effective for the Company in the first quarter of fiscal year 2018, but allows the Company to adopt the standard one year earlier if it so chooses. In March 2016, the FASB issued updates to this guidance to clarify the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued guidance to clarify aspects related to identifying performance obligations and the licensing implementation guidance. The Company has not yet selected a transition method and is evaluating the effect that the updated standard will have on its Financial Statements and related disclosures. During February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. This ASU becomes effective for the Company in the first quarter of fiscal year 2019 and early adoption is permitted. This ASU is required to be applied with a modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company generally does not finance purchases of equipment or other capital, but does lease its facilities. The Company is evaluating the effect that this ASU will have on its Financial Statements and related disclosures. During March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-based Payment Accounting. This ASU simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU requires that excess tax benefits and deficiencies be recognized as income tax benefit or expense in the income statement. The Company currently plans to implement this ASU as required in the first quarter of fiscal year 2017. The Company is evaluating the effect that this ASU will have on its Financial Statements and related disclosures. During June 2016, the FASB issued ASU 2016-13, Financial Instruments — Measurement of Credit Losses on Financial Instruments , which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2020 and the Company is currently evaluating the impact that ASU 2016-13 will have on its consolidated financial statements. Net Loss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:      Six-Month Periods Ended  June 30,  2016 2015  Common stock warrants 874,610 299,625  Common stock options 1,020,568 390,883  Total 1,895,178 690,508 

Equipment

Equipment	6 Months Ended
	Jun. 30, 2016
Equipment [Abstract]
Equipment	3 . Equipment Equipment consisted of the following (in thousands):     June 30, December 31,  2016 2015  Laboratory equipment $ 406 $ 356  Software 20 10  Furniture, fixtures, and equipment 21 20  447 386  Less: Accumulated depreciation (103) (57)  $ 344 $ 329  Depreciation expense was $24,000 an d $10,000 for the three-month periods ended June 30, 2016 and 2015 , respectively. Depreciation expense was $46,000 and $20,000 for the six-month periods ended June 30, 2016 and 2015, respectively.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2016
Intangible Assets [Abstract]
Intangible Assets	4 . Intangible Assets Intangible assets consisted of the following (in thousands):      June 30, December 31,  2016 2015  Acquired technology $ 4,200 $ 4,200  License 3,785 3,785  7,985 7,985  Less: Accumulated amortization (1,109) (777)  $ 6,876 $ 7,208 

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2016
Accrued Expenses [Abstract]
Accrued Expenses	5 . Accrued Expenses Accrued expenses consisted of the following (in thousands):     June 30, December 31,  2016 2015  Compensation expense $ 138 $ 34  Offering costs 10 240  Professional fees 109 84  Other — 40  $ 257 $ 398 

Stockholders' Equity And Stock-

Stockholders' Equity And Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity And Stock-Based Compensation [Abstract]
Stockholders' Equity And Stock-Based Compensation	6 . Stockholders’ Equity and Stock-Based Compensation Equity Plans As of June 30, 2016, the Company had one active equity compensation plan, the 2015 Stock Incentive Plan (the “2015 Plan”). The following table summarizes stock option activity for the Company’s 2015 Plan for the six-month period ended June 30, 2016 (in thousands, except per share amounts):    Stock Options Outstanding  Weighted Weighted average  Number average remaining life  of shares exercise price (in years)  Balances — December 31, 2015 875 $ 3.51 7.77  Options granted 171 4.12  Options exercised — —  Options canceled (6) 4.00  Options expired (19) 2.67  Balances — June 30, 2016 1,021 $ 3.63 7.76  Exercisable 142  Stock-based Compensation  During the three-month period ended June 30, 2016, in connection with the closing of the Company’s initial public offering, the Company issued warrants as compensation to the underwriters of the Company’s initial public offering to purchase a total 574,985 shares of the Company’s Common Stock at a price of $5.00 per share. The warrants become exercisable 180 days after issuance and are exercisable for a period of five years. The value of the warrants totaled $1,443,000 valued at the date of grant using the Black-Scholes Option Pricing Model and was recorded as part of the costs of the initial public offering as additional paid-in capital. Total stock-based compensation expense consisted of the following (in thousands):      Three-Month Periods Ended Six-Month Periods Ended  June 30, June 30,  2016 2015 2016 2015  General and administrative $ 147 $ 107 $ 295 $ 161  Research and development 49 — 94 —  Total stock-based compensation expense $ 196 $ 107 $ 389 $ 161  The Company estimated the fair value of employee stock options on the grant date using the Black-Scholes option pricing model . The estimated fair value of employee stock options is amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the following weighted average assumptions:     Three-Month Periods Ended June 30, Six-Month Periods Ended June 30,  2016 2015 2016 2015  Expected term in years 6.1 3.6 6.1 3.6  Expected volatility 80% 89% 80% 89%  Risk-free interest rate 1.31% 1.18% 1.39% 0.94%  Dividend yield — — — — 

Research Grants And Agreements

Research Grants And Agreements	6 Months Ended
	Jun. 30, 2016
Research Grants And Agreements [Abstract]
Research Grants And Agreements	7 . Research Grants and Agreements Research Grants The Company’s subsidiary, BioElectromed (“BEM”) was acquired by Pulse Biosciences, Inc. on November 6, 2014 . BEM ha d been funded by grants from the National Cancer Institute of the National Institutes of Health (the “NIH”), including grants from the NIH Small Business Innovation Research (“SBIR”) Program, to conduct research and develop devices that will provide health benefits utilizing bioelectric technology. At the time of acquisition, BEM had an active research grant under the SBIR Program for a project entitled “EndoPulse System for Endoscopic Ultrasound-Guided Therapy of Pancreatic Carcinoma”. The research project was scheduled to be completed on August 31, 2014, but was extended to August 31, 2015 and completed during the year ended D ecember 31, 2015. During the six -month period ended June , 2015, the Company received research grant funding of $340,000 that was recorded as an offset to research and development expenses. The Company has not subsequently receiv ed additional grants . Sponsored Research Agreement The Company entered into a Sponsored Research Agreement (“SRA”) with the Old Dominion University Research Foundation (“ODURF”) during 2014 pursuant to which the Company sponsors research activities performed by ODURF’s Frank Reidy Center. ODURF is compensated by the Company for its conduct of each study in accordance with the budget and payment terms set forth in the applicable task order. During the first quarter of 2015 the Company agreed to sponsor $1.2 million in research during the subsequent 12 -month period to be funded through monthly payments made upon ODURF certifying, to the Company’s reasonable satisfaction, that ODURF has met its obligations pursuant to the specified task order and statement of work. The principal investigator may transfer funds with the budget as needed without the Company’s approval so long as the obligations of ODURF under the task order and statement of work remain unchanged and unimpaired. During April 2016, the Company agreed to sponsor additional research under the SRA for the period April 2016 through March 2017 totaling $1.0 million. During the three-month periods ended June 30, 2016 and 2015, the Company paid and incurred costs relating to the SRA equal to $250,000 and $245,000 , res pectively, relating to the amount agreed to during 2015. During the six-month periods ended June 30, 2016 and 2015, the Company paid and incurred costs relating to the SRA equal to $414,000 and $545,000 , respectively.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	8 . Related Party Transactions MDB Capital Group, LLC (“MDB”) provides investment banking, executive recruiting and intellectual property management services to the Company. The Company’s Chairman, Robert Levande, is a Senior Managing Director of MDB. During the three and six-month periods ended June 30, 2016, the Company incurred non-financing related expenses charged by MDB of $45,000 and $100,000 , respectively, for services rendered with respect to intellectual property related services. In connection with the initial public offering, the underwriting syndicate lead by MDB received $1,800,000 in underwriting discounts, $160,000 in unaccountable expense reimbursement and warrants valued in aggregate of $1,443 ,000 . Gary Schuman, the Chief Financial Officer of MDB served as the acting Chief Financial Officer of the Company and was compensated at a monthly rate of $4,000 from November 1, 2014 to December 31, 2015 . Mr. Schuman’s compensation of $12,000 and $24,000 is reflec ted in general and administrative expenses for the three and six- month period s ended June 30 , 201 5 . At June 30, 2016 and December 31, 2015, $15,000 and $58,000 , respectively, was included in accounts payable to MDB for patent related services and their expenses incurred relating to the Company’s planned IPO, which were recorded as offering costs in shareholders’ equity and deferred offering costs, respectively. Information with respect to payments under the Company’s Sponsored Research Agreement with ODURF , a greater-than 10% shareholder, is described at Note 7 .

Summary Of Significant Accoun14

Summary Of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Summary Of Significant Accounting Policies [Abstract]
Basis Of Presentation	Basis of Presentation In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements (“Financial Statements”) have been prepared on a consistent basis with the Company’s December 31, 2015 audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. The Financial Statements have been prepared in accordance with the rules and regulations of the SEC and, as permitted by such rules and regulations, omit certain information and footnote disclosures necessary to present the financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Registration Statement. The results of operations for the six-month period ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire year or any future periods.
Use Of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Estimates include, but are not limited to, the valuation of cash equivalents and investments, the valuation and recognition of share-based compensation, the useful lives assigned to long-lived assets and the computation provisions for income taxes. Actual results could differ materially from these estimates.
Significant Accounting Policies	Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies during the six-month period ended June 30, 2016, as compared to the significant accounting policies described in the Registration Statement. The policies described below are not changes but are accounting policies adopted as they became applicable to the Company.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The following table sets forth the fair value of the Company’s financial assets measured on a recurring basis as of June 30, 2016 and December 31, 2015, respectively (in thousands):    June 30, 2016 December 31, 2015  Assets Classification Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Money market funds Cash and cash equivalents $ 20,006 $ — $ — $ 20,006 $ — $ — $ — $ —  Commercial paper Investments — 495 — 495 — — — —  Total assets measured at fair value $ 20,006 $ 495 $ — $ 20,501 $ — $ — $ — $ —  The Company did not have any financial liabilities measured on a recurring basis as of June 30, 2016 or December 31, 2015. The Company classifies its investments in money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. The Company classifies its Level 2 instruments based on market pricing and other observable inputs. The Company did not classify any of its investments within Level 3 of the fair value hierarchy. During the six-month period ended June 30, 2016, there were no transfers between Level 1, Level 2 or Level 3 assets or liabilities reported at fair value on a recurring basis and the valuation techniques used did not change compared to the Company’s established practice.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Investments	Investments The Company has designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recognized in accumulated other comprehensive income (loss) (“OCI”) in stockholders’ equity. The cost of marketable securities is adjusted for the amortization of premiums and discounts to expected maturity. Premium and discount amortization is included in other income, net. Realized gains and losses, as well as interest income, on available-for-sale securities are also included in other income, net. Unrealized gain at June 30, 2016 was immaterial. The cost of securities sold is based on the specific identification method. The Company includes all of its available-for-sale securities in current assets. All of the Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investments fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security and whether or not the Company will be required to sell the security before the recovery of its amortized cost. During the six-month period ended June 30, 2016, the Company did not recognize any impairment charges on its investments as it is more likely than not that the Company will recover their amortized cost basis upon sale or maturity. The Company did not hold investment securities at any time during the prior year.
Recent Accounting Pronouncements	Recent Accounting Pronouncements During May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued an update to defer the effective date of this update by one year. This updated standard becomes effective for the Company in the first quarter of fiscal year 2018, but allows the Company to adopt the standard one year earlier if it so chooses. In March 2016, the FASB issued updates to this guidance to clarify the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued guidance to clarify aspects related to identifying performance obligations and the licensing implementation guidance. The Company has not yet selected a transition method and is evaluating the effect that the updated standard will have on its Financial Statements and related disclosures. During February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. This ASU becomes effective for the Company in the first quarter of fiscal year 2019 and early adoption is permitted. This ASU is required to be applied with a modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company generally does not finance purchases of equipment or other capital, but does lease its facilities. The Company is evaluating the effect that this ASU will have on its Financial Statements and related disclosures. During March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-based Payment Accounting. This ASU simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU requires that excess tax benefits and deficiencies be recognized as income tax benefit or expense in the income statement. The Company currently plans to implement this ASU as required in the first quarter of fiscal year 2017. The Company is evaluating the effect that this ASU will have on its Financial Statements and related disclosures. During June 2016, the FASB issued ASU 2016-13, Financial Instruments — Measurement of Credit Losses on Financial Instruments , which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2020 and the Company is currently evaluating the impact that ASU 2016-13 will have on its consolidated financial statements.
Net Loss Per Share	Net Loss per Share The following outstanding common stock options and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:      Six-Month Periods Ended  June 30,  2016 2015  Common stock warrants 874,610 299,625  Common stock options 1,020,568 390,883  Total 1,895,178 690,508 

Summary Of Significant Accoun15

Summary Of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Summary Of Significant Accounting Policies [Abstract]
Fair Value Of Financial Assets Measured On A Recurring Basis	  June 30, 2016 December 31, 2015  Assets Classification Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total  Money market funds Cash and cash equivalents $ 20,006 $ — $ — $ 20,006 $ — $ — $ — $ —  Commercial paper Investments — 495 — 495 — — — —  Total assets measured at fair value $ 20,006 $ 495 $ — $ 20,501 $ — $ — $ — $ — 
Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share	   Six-Month Periods Ended  June 30,  2016 2015  Common stock warrants 874,610 299,625  Common stock options 1,020,568 390,883  Total 1,895,178 690,508 

Equipment (Tables)

Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Equipment [Abstract]
Equipment	   June 30, December 31,  2016 2015  Laboratory equipment $ 406 $ 356  Software 20 10  Furniture, fixtures, and equipment 21 20  447 386  Less: Accumulated depreciation (103) (57)  $ 344 $ 329 

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Intangible Assets [Abstract]
Intangible Assets	   June 30, December 31,  2016 2015  Acquired technology $ 4,200 $ 4,200  License 3,785 3,785  7,985 7,985  Less: Accumulated amortization (1,109) (777)  $ 6,876 $ 7,208 

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2016
Accrued Expenses [Abstract]
Accrued Expenses	   June 30, December 31,  2016 2015  Compensation expense $ 138 $ 34  Offering costs 10 240  Professional fees 109 84  Other — 40  $ 257 $ 398 

Stockholders' Equity And Stoc19

Stockholders' Equity And Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity And Stock-Based Compensation [Abstract]
Summary Of Stock Option Activity	  Stock Options Outstanding  Weighted Weighted average  Number average remaining life  of shares exercise price (in years)  Balances — December 31, 2015 875 $ 3.51 7.77  Options granted 171 4.12  Options exercised — —  Options canceled (6) 4.00  Options expired (19) 2.67  Balances — June 30, 2016 1,021 $ 3.63 7.76  Exercisable 142 
Total Stock-Based Compensation Expense	   Three-Month Periods Ended Six-Month Periods Ended  June 30, June 30,  2016 2015 2016 2015  General and administrative $ 147 $ 107 $ 295 $ 161  Research and development 49 — 94 —  Total stock-based compensation expense $ 196 $ 107 $ 389 $ 161 
Schedule Of Fair Value Of Employee Stock Options	  Three-Month Periods Ended June 30, Six-Month Periods Ended June 30,  2016 2015 2016 2015  Expected term in years 6.1 3.6 6.1 3.6  Expected volatility 80% 89% 80% 89%  Risk-free interest rate 1.31% 1.18% 1.39% 0.94%  Dividend yield — — — — 

Description Of The Business (Na

Description Of The Business (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 21, 2016	Jun. 21, 2016	May 23, 2016	Jun. 30, 2016
Subsidiary, Sale of Stock [Line Items]
Incorporation state				Nevada
Incorporation date				May 19, 2014
Proceeds from issuance of common stock		$ 20.4
Initial Public Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Shares sold			5,000,000
Price per share			$ 4
Overallotment Option [Member]
Subsidiary, Sale of Stock [Line Items]
Shares sold	749,846
Price per share	$ 4	$ 4

Summary Of Significant Accoun21

Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Summary Of Significant Accounting Policies [Abstract]
Transfers between level 1, 2, or 3	$ 0

Summary Of Significant Accoun22

Summary Of Significant Accounting Policies (Fair Value Of Financial Assets Measured On A Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Total assets measured at fair value	$ 20,501
Liabilities
Total liabilities measured at fair value	0	$ 0
Cash and cash equivalents [Member] | Money market funds [Member]
ASSETS
Total cash and cash equivalents	20,006
Investments [Member] | Commercial paper [Member]
ASSETS
Total investments	495
Level 1 [Member]
ASSETS
Total assets measured at fair value	20,006
Level 1 [Member] | Cash and cash equivalents [Member] | Money market funds [Member]
ASSETS
Total cash and cash equivalents	20,006
Level 2 [Member]
ASSETS
Total assets measured at fair value	495
Level 2 [Member] | Investments [Member] | Commercial paper [Member]
ASSETS
Total investments	$ 495

Summary Of Significant Accoun23

Summary Of Significant Accounting Policies (Anti-Dilutive Shares Excluded From Computation Of Diluted Net Loss Per Share) (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,895,178	690,508
Common Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	874,610	299,625
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,020,568	390,883

Equipment (Details)

Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Equipment, gross	$ 447		$ 447		$ 386
Less: Accumulated depreciation	(103)		(103)		(57)
Equipment, net	344		344		329
Depreciation expense	24	$ 10	46	$ 20
Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Equipment, gross	406		406		356
Software [Member]
Property, Plant and Equipment [Line Items]
Equipment, gross	20		20		10
Furniture, Fixtures, And Equipment [Member]
Property, Plant and Equipment [Line Items]
Equipment, gross	$ 21		$ 21		$ 20

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 7,985	$ 7,985
Less: Accumulated amortization	(1,109)	(777)
Intangible assets, net	6,876	7,208
Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	4,200	4,200
License [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 3,785	$ 3,785

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued Expenses [Abstract]
Compensation expense	$ 138	$ 34
Offering costs	10	240
Professional fees	109	84
Other		40
Accrued expenses	$ 257	$ 398

Stockholders' Equity And Stoc27

Stockholders' Equity And Stock-Based Compensation (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)item$ / sharesshares	May 23, 2016$ / shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of equity compensation plans | item	1
Initial Public Offering [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Price per share		$ 4
Stock Options [Member] | Common Stock Warrants [Member] | Initial Public Offering [Member] | Underwriters [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of shares of common stock called by issuance of warrants, outstanding | shares	574,985
Price per share	$ 5
Period the warrants are exercisable after issuance	180 days
Exercisable period of warrants or rights	5 years
Value of warrants | $	$ 1,443,000

Stockholders' Equity And Share-

Stockholders' Equity And Share-Based Compensation (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - $ / shares shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balances — December 31, 2015, Number of shares	875
Options granted, Number of shares	171
Options exercised, Number of shares
Options canceled, Number of shares	(6)
Options expired, Number of shares	(19)
Balances — June 30, 2016, Number of shares	1,021	875
Exercisable, Number of shares	142
Balances — December 31, 2015, Weighted average exercise price per share	$ 3.51
Options granted, Weighted average exercise price per share	4.12
Options exercised, Weighted average exercise price per share
Options canceled, Weighted average exercise price per share	4
Options expired, Weighted average exercise price per share	2.67
Balances — June 30, 2016, Weighted average exercise price per share	$ 3.63	$ 3.51
Weighted average remaining life	7 years 9 months 4 days	7 years 9 months 7 days

Stockholders' Equity And Stoc29

Stockholders' Equity And Stock-Based Compensation (Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Total stock-based compensation expense	$ 196	$ 107	$ 389	$ 161
General And Administrative [Member]
Total stock-based compensation expense	147	$ 107	295	$ 161
Research And Development [Member]
Total stock-based compensation expense	$ 49		$ 94

Stockholders' Equity And Stoc30

Stockholders' Equity And Stock-Based Compensation (Schedule Of Fair Value Of Employee Stock Options) (Details) - Stock Options [Member]	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term in years	6 years 1 month 6 days	3 years 7 months 6 days	6 years 1 month 6 days	3 years 7 months 6 days
Expected volatility	80.00%	89.00%	80.00%	89.00%
Risk-free interest rate	1.31%	1.18%	1.39%	0.94%
Dividend yield

Research Grants And Agreements

Research Grants And Agreements (Narrative) (Details) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Apr. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Research and development		$ 1,453	$ 547		$ 2,443	$ 968
Sponsored Research Agreement ("SRA") [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Research and development		$ 250	$ 245		$ 414	545
BEM [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Research grant funding						$ 340
Number of additional grants | item					0
ODURF [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Period of time for Sponsored Research Agreement ("SRA")					12 months
ODURF [Member] | Sponsored Research Agreement ("SRA") [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Research and development	$ 1,000			$ 1,200

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		14 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Research and development	$ 1,453	$ 547	$ 2,443	$ 968
ODURF [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Ownership percentage	10.00%		10.00%
MDB Capital Group, LLC [Member] | Initial Public Offering [Member]
Related Party Transaction [Line Items]
Underwriting discounts			$ 1,800
Unaccountable expense reimbursement			160
Value of warrants	$ 1,443		1,443
Accounts payable for expenses related to IPO	15		15		$ 58
MDB Capital Group, LLC [Member] | Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Officers compensation, monthly					$ 4
Officer compensation		$ 12		$ 24
Intellectual Property Related Services [Member] | MDB Capital Group, LLC [Member]
Related Party Transaction [Line Items]
Research and development	$ 45		$ 100