Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Aug. 03, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Axovant Sciences Ltd. | |
Entity Central Index Key | 1,636,050 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 107,525,925 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash | $ 297,858 | $ 212,573 |
Prepaid expenses and other current assets | 7,627 | 6,457 |
Income tax receivable | 1,224 | 658 |
Total current assets | 306,709 | 219,688 |
Property and equipment, net | 2,294 | 142 |
Deferred tax assets | 0 | 2,709 |
Total assets | 309,003 | 222,539 |
Current liabilities: | ||
Accounts payable | 8,547 | 8,551 |
Due to Roivant Sciences Ltd. and Roivant Sciences, Inc. | 4,466 | 2,919 |
Accrued expenses | 38,041 | 34,796 |
Total current liabilities | 51,054 | 46,266 |
Long term debt | 51,752 | 51,436 |
Total liabilities | 102,806 | 97,702 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity: | ||
Common shares, par value $0.00001 per share, 1,000,000,000 shares authorized, 107,473,925 and 99,163,919 issued and outstanding at June 30, 2017 and March 31, 2017, respectively | 1 | 1 |
Additional paid-in capital | 610,811 | 459,601 |
Accumulated deficit | (404,644) | (335,143) |
Accumulated other comprehensive income | 29 | 378 |
Total shareholders’ equity | 206,197 | 124,837 |
Total liabilities and shareholders’ equity | $ 309,003 | $ 222,539 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Mar. 31, 2016 |
Common stock | ||
Common shares par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common shares issued (in shares) | 107,473,925 | 99,163,919 |
Common shares outstanding (in shares) | 107,473,925 | 99,163,919 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating expenses: | ||
Research and development expenses | $ 43,712 | $ 25,276 |
General and administrative expenses | 21,518 | 12,631 |
Total operating expenses | 65,230 | 37,907 |
Interest expense | 1,874 | 0 |
Other income | (357) | 0 |
Loss before provision for income taxes | (66,747) | (37,907) |
Income tax expense | 2,519 | 148 |
Net loss | $ (69,266) | $ (38,055) |
Net loss per common share — basic and diluted (in dollars per share) | $ (0.65) | $ (0.38) |
Weighted average common shares outstanding - basic and diluted (in shares) | 106,400,912 | 99,150,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Research and development | ||
Share-based compensation | $ 6,256 | $ 4,964 |
General and administrative | ||
Share-based compensation | $ 9,344 | $ 6,597 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (69,266) | $ (38,055) |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (349) | 0 |
Total other comprehensive loss | (349) | 0 |
Comprehensive loss | $ (69,615) | $ (38,055) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Increase (Decrease) in Shareholders' Equity (Deficit) | |||||
Adjustment to adopt ASU 2016-09 | $ 235 | $ (235) | |||
Beginning Balance (in shares) at Mar. 31, 2017 | 99,163,919 | ||||
Beginning Balance at Mar. 31, 2017 | $ 124,837 | $ 1 | 459,601 | (335,143) | $ 378 |
Increase (Decrease) in Shareholders' Equity (Deficit) | |||||
Exercise of stock options (in shares) | 556,501 | ||||
Exercise of stock options | $ 747 | 747 | |||
Stock issued for equity financing, net of underwriting discounts and commissions and offering expenses of $9.1 million (in shares) | 7,753,505 | ||||
Stock issued for equity financing, net of underwriting discounts and commissions and offering expenses of $9.1 million | $ 134,628 | 134,628 | |||
Share-based compensation expense | 13,468 | 13,468 | |||
Capital contribution —share-based compensation expense | 2,132 | 2,132 | |||
Foreign currency translation adjustment | (349) | (349) | |||
Net loss | (69,266) | (69,266) | |||
Ending Balance (in shares) at Jun. 30, 2017 | 107,473,925 | ||||
Ending Balance at Jun. 30, 2017 | $ 206,197 | $ 1 | $ 610,811 | $ (404,644) | $ 29 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Shareholders’ Equity - Parenthetical (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Underwriting discounts, commissions and offering expenses | $ 9.1 |
Condensed Consolidated Stateme9
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (69,266) | $ (38,055) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Unrealized currency translation gain | (349) | 0 |
Share-based compensation | 15,600 | 11,561 |
Depreciation and amortization | 335 | 11 |
Deferred tax assets | 2,709 | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (1,170) | 1,565 |
Accounts payable | (4) | 2,221 |
Due to Roivant Sciences Ltd. and Roivant Sciences, Inc. | 1,547 | 404 |
Accrued expenses | 3,245 | 3,553 |
Income tax receivable | (566) | 174 |
Net cash used in operating activities | (47,919) | (18,566) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,171) | (28) |
Net cash used in investing activities | (2,171) | (28) |
Cash flows from financing activities: | ||
Payment of contingent liability | 0 | (5,000) |
Exercise of stock options | 747 | 0 |
Cash proceeds from issuance of common shares, net of costs | 134,628 | 0 |
Net cash provided by (used in) financing activities | 135,375 | (5,000) |
Net change in cash | 85,285 | (23,594) |
Cash—beginning of period | 212,573 | 276,251 |
Cash—end of period | 297,858 | 252,657 |
Supplemental disclosure of cash paid: | ||
Income taxes | 375 | 4 |
Interest expense | $ 1,512 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Axovant Sciences Ltd., together with its wholly owned subsidiaries (the ‘‘Company’’), is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative medicines to broadly address multiple forms of dementia and related neurological disorders. The Company is developing a pipeline of late- and early-stage product candidates that focuses on the cognitive, functional and behavioral aspects of debilitating conditions such as Alzheimer’s and Lewy body dementia and other neurological disorders. The Company is an exempted limited company incorporated under the laws of Bermuda in October 2014 under the name Roivant Neurosciences Ltd. The Company changed its name to Axovant Sciences Ltd. in March 2015 . The Company has four wholly owned subsidiaries. Axovant Holdings Limited (“AHL”), a direct wholly owned subsidiary of Axovant Sciences Ltd., was incorporated in England and Wales in August 2016; Axovant Sciences, Inc. (“ASI”), a direct wholly owned subsidiary of AHL, was incorporated in Delaware in February 2015; Axovant Sciences GmbH (“ASG”), a direct wholly owned subsidiary of AHL, was organized in Switzerland in August 2016; and Axovant Sciences America, Inc. (‘‘ASA’’), a direct wholly owned subsidiary of AHL, was incorporated in Delaware in July 2017. ASG holds the Company's intellectual property rights and is the principal operating company for conducting the Company’s business. From its inception, the Company has devoted substantially all of its efforts to organizing and staffing the Company, raising capital, acquiring product candidates and preparing for and advancing its lead product candidates, intepirdine and nelotanserin, into clinical development for patients with Alzheimer's disease or Lewy body dementia. In addition, the Company has the rights to develop RVT-103, a combination of donepezil and a peripheral muscarinic receptor antagonist, and RVT-104, a combination of rivastigmine and a peripheral muscarinic receptor antagonist, and intends to develop these product candidates alone and in combination with intepirdine as potential treatments for patients with Alzheimer's disease or dementia with Lewy bodies. The Company has determined that it has one operating and reporting segment as it allocates resources and assesses financial performance on a consolidated basis. The Company does not expect to generate revenue unless and until it successfully completes development and obtains regulatory approval for one of its product candidates. The Company believes it currently has sufficient funds to meet its financial needs for at least the next 12 months if it makes significant reductions in spending that would otherwise be required to commercialize intepirdine. The Company may be required to obtain further funding through other public or private offerings of its share capital, debt financing, collaboration and licensing arrangements or other sources. Adequate additional funding may not be available to the Company on acceptable terms, or at all. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (A) Basis of Presentation: The Company’s fiscal year ends on March 31, and its fiscal quarters end on June 30, September 30 and December 31. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 , filed with the Securities and Exchange Commission (“SEC”) on June 13, 2017. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the financial position of the Company and its results of operations and cash flows for the interim periods presented have been included. Operating results for the three months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending March 31, 2018, for any other interim period, or for any other future year. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (‘‘ASC’’) and Accounting Standards Update (‘‘ASU’’) of the Financial Accounting Standards Board (‘‘FASB’’). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has no unconsolidated subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. There have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K for the fiscal year ended March 31, 2017, filed with the SEC on June 13, 2017. (B) Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company regularly evaluates estimates and assumptions related to assets, liabilities, costs, expenses and compensation expense allocated to the Company under its services agreements with Roivant Sciences, Inc. (“RSI”) and Roivant Sciences GmbH (“RSG”), each a wholly owned subsidiary of the Company’s parent company, Roivant Sciences Ltd., as well as contingent liabilities, share-based compensation and research and development costs. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. (C) Net Loss per Common Share: Basic net loss per common share is computed by dividing net loss applicable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss applicable to common shareholders by the diluted weighted-average number of common shares outstanding during the period calculated in accordance with the treasury stock method. An aggregate of 14.5 million common shares, issuable upon exercise of outstanding stock options and a warrant, were not included in the calculation of diluted weighted-average common shares outstanding for the three months ended June 30, 2017 because they were anti-dilutive. Stock options to purchase 7.3 million common shares were not included in the calculation of diluted weighted-average common shares outstanding for the three months ended June 30, 2016 because they were anti-dilutive. (D) Financial Instruments: The Company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. Fair value is identified as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a three-tier fair value hierarchy that distinguishes among the following: • Level 1-Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2-Valuations are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. • Level 3-Valuations are based on inputs that are unobservable (supported by little or no market activity) and significant to the overall fair value measurement. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments include cash and accounts payable. These financial instruments are stated at their respective historical carrying amounts, which approximate fair value due to their short-term nature. The estimated fair value of the Company’s long term debt was $51.8 million as of June 30, 2017 and was based on current interest rates for similar types of borrowings and is in Level 2 of the fair value hierarchy. See Note 4 for the actual book carrying value of the Company's long term debt at June 30, 2017. (E) Recent Accounting Pronouncements: In February 2016, the FASB issued ASU No. 2016-02, ‘‘ Leases (Topic 842)’’ (‘‘ASU No. 2016-02’’), which is a comprehensive new lease standard that amends various aspects of existing accounting guidance for leases. The core principle of ASU No. 2016-02 will require lessees to present the assets and liabilities that arise from leases on their balance sheets. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the new standard and its impact on the Company's consolidated financial position and results of operations. In March 2016, the FASB issued ASU No. 2016-09, ‘‘Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ’’ (“ASU No. 2016-09”). This ASU makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation, and the financial statement presentation of excess tax benefits or deficiencies. ASU No. 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The Company has adopted this guidance as of April 1, 2017, using a modified retrospective transition method. As a result of the adoption of this standard, the Company elected to change its policy from estimating forfeitures to recognizing forfeitures when they occur and, as a result, recorded an adjustment of $235 thousand to accumulated deficit with a corresponding offset to additional paid-in-capital as of April 1, 2017. The other amended requirements of ASU No. 2016-09 did not have a material impact on the Company’s condensed consolidated financial statements and related disclosures. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses As of June 30, 2017 and March 31, 2017, the Company’s accrued expenses consisted of the following (in thousands): June 30, 2017 March 31, 2017 Research and development expenses $ 29,945 $ 27,667 Salaries, bonuses, and other compensation expenses 4,419 3,497 Legal expenses 671 1,271 Other expenses 3,006 2,361 Total accrued expenses $ 38,041 $ 34,796 |
Long Term Debt Long Term Debt
Long Term Debt Long Term Debt | 3 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long Term Debt On February 2, 2017, the Company and its subsidiaries, AHL, ASG and ASI entered into a loan and security agreement (as amended on May 24, 2017, the “Hercules Loan Agreement”) with Hercules Capital, Inc., (“Hercules”), under which the Company, AHL and ASG (the "Borrowers") borrowed an aggregate of $55.0 million (the “Term Loan”). Pursuant to the Hercules Loan Agreement, ASI has issued a guaranty of the Borrowers’ obligations under the Hercules Loan Agreement. The Term Loan bears interest at a variable per annum rate calculated for any day as the greater of either (i) the prime rate plus 6.80% , and (ii) 10.55% . The Term Loan has a scheduled maturity date of March 1, 2021. The Borrowers are obligated to make monthly payments of accrued interest under the Hercules Loan Agreement until September 1, 2018, followed by monthly installments of principal and interest beginning October 1, 2018 through March 1, 2021. The interest-only period may be extended until either March 2019 or September 2019 if, in each case, the Company achieves certain clinical development milestones, as set forth in the Hercules Loan Agreement and if such were to occur, monthly principal and interest payments would commence on April 1, 2019 or October 1, 2019, respectively. In connection with the Hercules Loan Agreement, the Borrowers and ASI, as guarantor, granted Hercules a first position lien on substantially all of their respective assets, excluding intellectual property. Prepayment of the Term Loan is subject to penalty. In April 2017, the Company completed a follow-on public offering of our common shares, from which it raised net proceeds of $134.6 million , after deducting underwriting discounts and commissions and offering expenses payable by the Company. On May 24, 2017, the Hercules Loan Agreement was amended such that the required minimum amount of unrestricted cash applies commencing on July 1, 2017 and is equal to the lesser of (i) $35.0 million (the “Applicable Amount”) plus certain aged accounts payable amounts (as further defined in the Hercules Loan Agreement) and (ii) the outstanding amount of debt under the Hercules Loan Agreement plus certain aged accounts payable (as further defined in the Hercules Loan Agreement), provided that the Applicable Amount may be lowered to $30 million upon the achievement of certain clinical and/or financial milestones, and further lowered to $25 million upon the achievement of certain other clinical and/or financial milestones, each as set forth in the Hercules Loan Agreement. This unrestricted cash covenant would still cease to apply if the Company achieves certain clinical development milestones, as set forth in the Hercules Loan Agreement. The Hercules Loan Agreement also includes customary events of default. Upon the occurrence of an event of default, a default interest rate of an additional 5.0% may be applied to the outstanding principal balance, and Hercules may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the Hercules Loan Agreement. In addition, for so long as the Term Loan remains outstanding, the Company shall be required to use its commercially reasonable efforts to afford Hercules the opportunity to participate in future underwritten equity offerings of the Company’s common shares up to a specified amount. In connection with the Hercules Loan Agreement, the Company issued a warrant to Hercules, exercisable for an aggregate of 274,086 of the Company’s common shares at an exercise price of $12.04 per share (the “Warrant”). The Warrant may be exercised on a cashless basis, and is immediately exercisable through the earlier of (i) February 2, 2024 and (ii) the consummation of certain acquisition transactions involving the Company as set forth in the Warrant. The number of shares for which the Warrant is exercisable and the associated exercise price are subject to certain proportional adjustments as set forth in the Warrant. The Company has accounted for this warrant as an equity instrument since the Warrant is indexed to the Company’s common shares and meets the criteria for classification in shareholders’ equity. The relative fair value of the Warrant on the date of issuance was approximately $2.3 million and is treated as a discount to the debt. This amount will be amortized to interest expense under the effective interest method over the life of the Term Loan, which is a period of 48 months. The Company estimated the value of the Warrant using the Black-Scholes model. The key assumptions used to value the Warrant are as follows: Exercise price $ 12.04 Share price on date of issuance $ 11.96 Volatility 77.6 % Risk-free interest rate 2.27 % Expected dividend yield — % Contractual term (in years) 7 In addition, at the closing of the Term Loan, the Company paid transaction costs of $1.5 million , which were recorded as a discount on the debt and will be amortized to interest expense using the effective interest method over the life of the Term Loan, which is a period of 48 months. Outstanding debt obligations are as follows (in thousands): June 30, 2017 Principal amount $ 55,000 Less: unamortized discount and debt issuance costs (3,248 ) Loan payable less unamortized discount and debt issuance costs 51,752 Less: current maturities — Long-term loan payable, net of current maturities $ 51,752 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions (A) Services Agreements: During 2015, the Company and ASI entered into a services agreement with RSI (the ‘‘Services Agreement’’) under which RSI has agreed to provide certain administrative and research and development services to the Company. The Company and ASI amended and restated the Services Agreement with RSI on October 13, 2015 effective for the fiscal year commencing April 1, 2015. Under the Services Agreement, as amended and restated, the Company pays or reimburses RSI for any expenses it, or third parties acting on its behalf, incurs for the Company. For any general and administrative and research and development activities performed by RSI employees, RSI charges back the employee compensation expense plus a pre-determined mark-up. Employee compensation expense, inclusive of base salary and fringe benefits, is determined based upon the relative percentage of time utilized on Company matters. All other costs are billed back at cost. The accompanying interim unaudited condensed consolidated financial statements include third-party expenses that have been paid by RSI and RSL. In February 2017, the Company and ASI amended and restated the Services Agreement, effective as of December 13, 2016, to add ASG as a services recipient. In addition, in February 2017, ASG entered into a separate services agreement with RSG, effective as of December 13, 2016, for the provision of services by RSG to ASG in relation to the identification of potential product candidates and project management of clinical trials, as well as other services related to development, administrative and financial activities. Under the Services Agreements, for the three months ended June 30, 2017 and 2016 , the Company incurred expenses of $2.7 million and $2.0 million , respectively, inclusive of a mark-up. (B) Family Relationships: Geetha Ramaswamy, MD, the Vice President, Medical and Scientific Strategy for ASI, is the mother of Vivek Ramaswamy, a director of ASL and the chief executive officer of RSL. Shankar Ramaswamy, MD, the Vice President of Global Medical Affairs of ASI, is the brother of Vivek Ramaswamy. Sarah Friedhoff, Senior Business Operations and Research and Development Specialist of ASI, is the daughter of Lawrence Friedhoff, the Company's Chief Development Officer. Salary expenses were $66,950 and $65,000 for both Geetha Ramaswamy and Shankar Ramaswamy for the three months ended June 30, 2017 and 2016, respectively. Salary expenses were $19,313 and $17,917 for Sarah Friedhoff for the three months ended June 30, 2017 and 2016, respectively. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity In April 2017, we issued and sold 7,753,505 common shares, including 1,011,326 common shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares, at an offering price of $18.54 per common share for gross proceeds of $143.7 million . The net proceeds to us were approximately $134.6 million , after deducting underwriting discounts and commissions and offering expenses paid by us. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation In March 2015, the Company adopted its 2015 Equity Incentive Plan (the ‘‘2015 Plan’’), under which 7.5 million of the Company’s common shares were originally reserved for grant. In May 2015, the Company’s Board of Directors amended the 2015 Plan to increase the number of common shares authorized for issuance thereunder to 9.5 million common shares. The amendment of the 2015 Plan became effective upon the execution of the underwriting agreement relating to the Company’s initial public offering of common shares in June 2015. In April 2017, the number of common shares authorized for issuance increased automatically to approximately 16.5 million in accordance with the terms of the 2015 Plan. At June 30, 2017 , a total of 1.6 million common shares were available for future grant under the 2015 Plan and options to purchase approximately 14.3 million common shares were outstanding under the Plan with a weighted average exercise price of $13.04 . (A) Stock Options Granted to Employees and Directors: During the three months ended June 30, 2017 and 2016 , the Company granted options to purchase a total of 7.1 million and 2.0 million common shares, respectively, to its employees and directors, under the 2015 Plan. The Company recorded share-based compensation expense related to stock options issued to Company employees and directors of $12.2 million and $7.9 million , respectively, for the three months ended June 30, 2017 and 2016. At June 30, 2017 , total unrecognized compensation expense related to non-vested options was $123.5 million , which is expected to be recognized over the remaining weighted-average service period of 3.22 years . During the three months ended June 30, 2017, the Company granted two options, each to purchase 2,000,000 common shares (or an aggregate of 4,000,000 common shares) of the Company, to our Principal Executive Officer, Dr. Hung. The grant date fair value of one of the options to purchase 2,000,000 common shares was estimated using the Black-Scholes option pricing model and the fair value is recognized over the requisite service period. The other option to purchase 2,000,000 common shares is a performance-based award ("Second Option") which vests over a period of five years, contingent on the achievement of pre-determined performance-based milestones that are related to product development or the achievement of specified market targets. The grant date fair value for this Second Option was estimated using a Monte Carlo valuation model and is recognized using the accelerated method over the requisite service period. (B) Share-Based Compensation for Related Parties: (1) Stock Options Granted to Non-Employees: During the three months ended June 30, 2017 and 2016 , the Company granted options to purchase a total of 209,600 and 83,500 common shares, respectively, to employees of RSI as compensation for support services provided to the Company. The fair value of the stock options granted to RSI employees is accounted for by the Company in accordance with the authoritative guidance for non-employee equity awards and is remeasured on each valuation date until performance is complete using the Black-Scholes pricing model. Each award is subject to a specified vesting schedule. Compensation expense will be recognized by the Company over the required service period to earn each award. The Company recorded $1.0 million and $0.4 million of share-based compensation expense for the three months ended June 30, 2017 and 2016, respectively. The share-based compensation was recorded as research and development and general and administrative expense in the accompanying condensed consolidated statements of operations. The total remaining unrecognized compensation cost related to the non-vested stock options amounted to $7.8 million as of June 30, 2017 , which is expected to be recognized over the remaining weighted-average service period of 2.26 years. (2) Share-Based Compensation Allocated to the Company by RSL: The Company incurs share-based compensation expense for RSL common share awards and RSL options issued by RSL to RSI employees. Share-based compensation expense is allocated to the Company by RSL based upon the relative percentage of time utilized by RSI employees on Company matters. The RSL common share awards are fair valued on the date of grant and that fair value is recognized over the requisite service period. Significant judgment and estimates were used to estimate the fair value of these awards, as they are not publicly traded. RSL common share awards are subject to specified vesting schedules and requirements (a mix of time-based, performance-based and corporate event-based, including targets for RSL’s post-IPO market capitalization and future financing events). The Company estimated the fair value of each RSL option on the date of grant using the Black-Scholes closed-form option-pricing model. The Company recorded share-based compensation expense of $2.1 million and $3.1 million , respectively, for the three months ended June 30, 2017 and 2016 in relation to the RSL common share awards and options issued by RSL to RSI employees. (3) Share-Based Compensation for Family Members: The Company granted Geetha Ramaswamy, Shankar Ramaswamy and Sarah Friedhoff options to purchase 37,500 common shares, 37,500 common shares and 12,500 common shares, respectively, during the three months ended June 30, 2017 as annual stock option grants in their capacities as employees of ASI. The Company recorded aggregate share-based compensation expense of $1.4 million and $0.9 million for the three months ended June 30, 2017 and 2016 , respectively, in connection with the Company's option grants. Shankar Ramaswamy, while previously employed by RSI, was also granted RSL common shares. The Company recorded share-based compensation expense of $0.1 million and $0.2 million , respectively, for the three months ended June 30, 2017 and 2016 related to the RSL common share awards held by Shankar Ramaswamy, which the Company has recorded as research and development expense in the accompanying condensed consolidated statements of operations. At June 30, 2017 , total unrecognized compensation expense related to these non-vested RSL common share awards was $0.5 million and is expected to be recognized over the remaining weighted-average service period of 1.02 years . |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is not subject to taxation under the laws of Bermuda since it was organized as a Bermuda Exempted Limited Company, for which there is no current tax regime. The Company’s provision for income taxes is primarily federal, state and local income taxes in the United States. The Company's effective tax rate of (3.8)% and (0.4)% for the three months ended June 30, 2017 and 2016, respectively, differs from the Bermuda federal statutory rate of 0% primarily due to the U.S. permanent unfavorable tax differences, stock compensation windfalls and a valuation allowance that effectively eliminates the Company's net deferred tax assets in the United States. The Company assesses the realizability of its deferred tax assets at each balance sheet date based on available positive and negative evidence in order to determine the amount which is more likely than not to be realized and records a valuation allowance as necessary. The Company files income tax returns in the United States for federal, state and local jurisdictions. ASI filed its initial U.S. federal, state and local income tax returns for the fiscal year ended March 31, 2015 in December 2015. The Company is subject to income tax examinations for fiscal year 2015 and forward in all applicable tax jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has entered into commitments under an asset purchase agreement with GlaxoSmithKline (“GSK”), a development, marketing, and supply agreement with Arena Pharmaceuticals, GmbH (“Arena”), the Hercules Loan Agreement, an amended services agreement with RSI, a separate service agreement with RSG (Refer to Note 5(A)) and a license agreement with Qaam Pharmaceuticals LLC. In addition, the Company has entered into services agreements with third parties for pharmaceutical manufacturing and research activities. The Company expects to enter into other commitments as the business further develops. During the quarter ended June 30, 2017, there were no other material changes outside the ordinary course of business to the specified contractual obligations set forth in the contractual obligations table included in our Annual Report on Form 10-K for the year ended March 31, 2017. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The Company’s fiscal year ends on March 31, and its fiscal quarters end on June 30, September 30 and December 31. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 , filed with the Securities and Exchange Commission (“SEC”) on June 13, 2017. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the financial position of the Company and its results of operations and cash flows for the interim periods presented have been included. Operating results for the three months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending March 31, 2018, for any other interim period, or for any other future year. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (‘‘ASC’’) and Accounting Standards Update (‘‘ASU’’) of the Financial Accounting Standards Board (‘‘FASB’’). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has no unconsolidated subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. There have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K for the fiscal year ended March 31, 2017, filed with the SEC on June 13, 2017. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company regularly evaluates estimates and assumptions related to assets, liabilities, costs, expenses and compensation expense allocated to the Company under its services agreements with Roivant Sciences, Inc. (“RSI”) and Roivant Sciences GmbH (“RSG”), each a wholly owned subsidiary of the Company’s parent company, Roivant Sciences Ltd., as well as contingent liabilities, share-based compensation and research and development costs. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Net Loss per Common Share | Net Loss per Common Share: Basic net loss per common share is computed by dividing net loss applicable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss applicable to common shareholders by the diluted weighted-average number of common shares outstanding during the period calculated in accordance with the treasury stock method. An aggregate of 14.5 million common shares, issuable upon exercise of outstanding stock options and a warrant, were not included in the calculation of diluted weighted-average common shares outstanding for the three months ended June 30, 2017 because they were anti-dilutive. Stock options to purchase 7.3 million common shares were not included in the calculation of diluted weighted-average common shares outstanding for the three months ended June 30, 2016 because they were anti-dilutive. |
Financial Instruments | Financial Instruments: The Company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. Fair value is identified as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a three-tier fair value hierarchy that distinguishes among the following: • Level 1-Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2-Valuations are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. • Level 3-Valuations are based on inputs that are unobservable (supported by little or no market activity) and significant to the overall fair value measurement. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments include cash and accounts payable. These financial instruments are stated at their respective historical carrying amounts, which approximate fair value due to their short-term nature. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In February 2016, the FASB issued ASU No. 2016-02, ‘‘ Leases (Topic 842)’’ (‘‘ASU No. 2016-02’’), which is a comprehensive new lease standard that amends various aspects of existing accounting guidance for leases. The core principle of ASU No. 2016-02 will require lessees to present the assets and liabilities that arise from leases on their balance sheets. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the new standard and its impact on the Company's consolidated financial position and results of operations. In March 2016, the FASB issued ASU No. 2016-09, ‘‘Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ’’ (“ASU No. 2016-09”). This ASU makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation, and the financial statement presentation of excess tax benefits or deficiencies. ASU No. 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The Company has adopted this guidance as of April 1, 2017, using a modified retrospective transition method. As a result of the adoption of this standard, the Company elected to change its policy from estimating forfeitures to recognizing forfeitures when they occur and, as a result, recorded an adjustment of $235 thousand to accumulated deficit with a corresponding offset to additional paid-in-capital as of April 1, 2017. The other amended requirements of ASU No. 2016-09 did not have a material impact on the Company’s condensed consolidated financial statements and related disclosures. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | As of June 30, 2017 and March 31, 2017, the Company’s accrued expenses consisted of the following (in thousands): June 30, 2017 March 31, 2017 Research and development expenses $ 29,945 $ 27,667 Salaries, bonuses, and other compensation expenses 4,419 3,497 Legal expenses 671 1,271 Other expenses 3,006 2,361 Total accrued expenses $ 38,041 $ 34,796 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Key Assumptions Used to Value Warrants | The Company estimated the value of the Warrant using the Black-Scholes model. The key assumptions used to value the Warrant are as follows: Exercise price $ 12.04 Share price on date of issuance $ 11.96 Volatility 77.6 % Risk-free interest rate 2.27 % Expected dividend yield — % Contractual term (in years) 7 |
Outstanding Debt Obligations | Outstanding debt obligations are as follows (in thousands): June 30, 2017 Principal amount $ 55,000 Less: unamortized discount and debt issuance costs (3,248 ) Loan payable less unamortized discount and debt issuance costs 51,752 Less: current maturities — Long-term loan payable, net of current maturities $ 51,752 |
Description of Business (Detail
Description of Business (Details) | 3 Months Ended |
Jun. 30, 2017segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Number of reporting segments | 1 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Apr. 01, 2017 | Mar. 31, 2017 | |
Net Loss per Common Share | ||||
Long-term loan payable, net of current maturities | $ 51,752 | $ 51,436 | ||
Stock options | ||||
Net Loss per Common Share | ||||
Anti-dilutive securities not included in calculation of common shares outstanding (in shares) | 14.5 | 7.3 | ||
Additional Paid-in Capital | ||||
Net Loss per Common Share | ||||
Adjustment to adopt ASU 2016-09 | $ 235 | |||
Fair Value, Inputs, Level 2 [Member] | ||||
Net Loss per Common Share | ||||
Long-term Debt, Fair Value | $ 51,800 | |||
Accounting Standards Update 2016-09 | Additional Paid-in Capital | ||||
Net Loss per Common Share | ||||
Adjustment to adopt ASU 2016-09 | $ 235 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Payables and Accruals [Abstract] | ||
Research and development expenses | $ 29,945 | $ 27,667 |
Salaries, bonuses, and other compensation expenses | 4,419 | 3,497 |
Legal expenses | 671 | 1,271 |
Other expenses | 3,006 | 2,361 |
Total accrued expenses | $ 38,041 | $ 34,796 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | Feb. 02, 2017 | Apr. 30, 2017 | Jun. 30, 2017 | May 24, 2017 |
Secured Debt | Loan and Security Agreement with Hercules Capital, Inc. | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 55,000,000 | |||
Minimum unrestricted cash | $ 35,000,000 | |||
Default interest rate | 5.00% | |||
Debt instrument, term | 48 months | |||
Payments of loan facility costs | $ 1,500,000 | |||
Secured Debt | Loan and Security Agreement with Hercules Capital, Inc. | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 10.55% | |||
Secured Debt | Loan and Security Agreement with Hercules Capital, Inc. | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 6.80% | |||
Stock Offering | ||||
Debt Instrument [Line Items] | ||||
Net proceeds | $ 134,600,000 | $ 134,600,000 | ||
Covenant Threshold One | Secured Debt | Loan and Security Agreement with Hercules Capital, Inc. | ||||
Debt Instrument [Line Items] | ||||
Minimum unrestricted cash if clinical and financial milestone thresholds are met | 30,000,000 | |||
Covenant Threshold Two | Secured Debt | Loan and Security Agreement with Hercules Capital, Inc. | ||||
Debt Instrument [Line Items] | ||||
Minimum unrestricted cash if clinical and financial milestone thresholds are met | $ 25,000,000 | |||
Common Shares | ||||
Debt Instrument [Line Items] | ||||
Number of securities called by warrants (in shares) | 274,086 | |||
Exercise price (in dollars per share) | $ 12.04 | |||
Fair value of warrants not settleable in cash | $ 2,300,000 |
Long Term Debt - Valuation Assu
Long Term Debt - Valuation Assumptions (Details) - Common Shares | Feb. 02, 2017$ / shares |
Class of Warrant or Right [Line Items] | |
Exercise price (in dollars per share) | $ 12.04 |
Share price on date of issuance (in dollars per share) | $ 11.96 |
Volatility | 77.60% |
Risk-free interest rate | 2.27% |
Expected dividend yield | 0.00% |
Contractual term (in years) | 7 years |
Long Term Debt - Outstanding De
Long Term Debt - Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 55,000 | |
Less: unamortized discount and debt issuance costs | (3,248) | |
Loan payable less unamortized discount and debt issuance costs | 51,752 | |
Less: current maturities | 0 | |
Long-term loan payable, net of current maturities | $ 51,752 | $ 51,436 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
RSI | ||
Related Party Transaction [Line Items] | ||
Expense under service agreement | $ 2,700,000 | $ 2,000,000 |
Geetha Ramaswamy | ||
Related Party Transaction [Line Items] | ||
Officers' salary expense | 66,950 | 65,000 |
Shankar Ramaswamy | ||
Related Party Transaction [Line Items] | ||
Officers' salary expense | 66,950 | 65,000 |
Sarah Friedhoff | ||
Related Party Transaction [Line Items] | ||
Salary expense | $ 19,313 | $ 17,917 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended |
Apr. 30, 2017 | Jun. 30, 2017 | |
Shareholders' Equity | ||
Sale of common stock in IPO (in shares) | 7,753,505 | |
Stock Offering | ||
Shareholders' Equity | ||
Sale of common stock in IPO (in shares) | 7,753,505 | |
Price per share (in dollars per share) | $ 18.54 | |
Gross proceeds from common stock issued | $ 143.7 | |
Net proceeds | $ 134.6 | $ 134.6 |
Underwriter's Option | ||
Shareholders' Equity | ||
Sale of common stock in IPO (in shares) | 1,011,326 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Apr. 01, 2016 | May 31, 2015 | Mar. 31, 2015 | |
Share-Based Compensation | |||||
Number of options granted (in shares) | 4,000,000 | ||||
RSI | |||||
Share-Based Compensation | |||||
Share-based compensation expense | $ 2.1 | $ 3.1 | |||
Stock options | |||||
Share-Based Compensation | |||||
Share-based compensation expense | 1.4 | 0.9 | |||
Total unrecognized compensation expense, stock options | $ 123.5 | ||||
Remaining weighted-average service period | 3 years 2 months 20 days | ||||
Stock options | Directors and Employees | |||||
Share-Based Compensation | |||||
Share-based compensation expense | $ 12.2 | $ 7.9 | |||
Stock options | RSI Employees | |||||
Share-Based Compensation | |||||
Number of options granted (in shares) | 209,600 | 83,500 | |||
Share-based compensation expense | $ 1 | $ 0.4 | |||
Total unrecognized compensation expense, stock options | $ 7.8 | ||||
Remaining weighted-average service period | 2 years 3 months 4 days | ||||
Stock options | Geetha Ramaswamy | |||||
Share-Based Compensation | |||||
Number of options granted (in shares) | 37,500 | ||||
Stock options | Shankar Ramaswamy | |||||
Share-Based Compensation | |||||
Number of options granted (in shares) | 37,500 | ||||
Stock options | Sarah Friedhoff | |||||
Share-Based Compensation | |||||
Number of options granted (in shares) | 12,500 | ||||
Common share awards | RSL | |||||
Share-Based Compensation | |||||
Share-based compensation expense | $ 0.1 | $ 0.2 | |||
Remaining weighted-average service period | 1 year 7 days | ||||
Total unrecognized compensation expense, common share awards | $ 0.5 | ||||
2015 Plan | Equity Incentive Plan | |||||
Share-Based Compensation | |||||
Number of shares reserved for grant (in shares) | 16,500,000 | 9,500,000 | 7,500,000 | ||
Number of shares available for future grant (in shares) | 1,600,000 | ||||
2015 Plan | Stock options | |||||
Share-Based Compensation | |||||
Number of options outstanding (in shares) | 14,300,000 | ||||
Weighted average exercise price of options outstanding (in dollars per share) | $ 13.04 | ||||
Number of options granted (in shares) | 7,100,000 | 2,000,000 | |||
First Option | |||||
Share-Based Compensation | |||||
Number of options granted (in shares) | 2,000,000 | ||||
Second Option | |||||
Share-Based Compensation | |||||
Number of options granted (in shares) | 2,000,000 | ||||
Award vesting period | 5 years |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Examination [Line Items] | ||
Effective income tax rate | (3.80%) | (0.40%) |
Foreign Tax Authority | Office of the Tax Commissioner, Bermuda | ||
Income Tax Examination [Line Items] | ||
Federal statutory income tax rate | 0.00% |
Uncategorized Items - axon-2017
Label | Element | Value |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (235,000) |