MetaVia (MTVA) 10-Q 8 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 04, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Gemphire Therapeutics Inc.
Entity Central Index Key	1,638,287
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,232,313
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 34,461	$ 18,473
Prepaid expenses	300	490
Deferred offering costs		21
Other assets	68	25
Total current assets	34,829	19,009
Deposits	8	8
Total assets	34,837	19,017
Current liabilities:
Accounts payable	2,848	4,025
Accrued liabilities	1,054	1,010
Term loan - current portion	2,355	1,355
Total current liabilities	6,257	6,390
Term loan	7,760	8,683
Other liabilities	3	3
Total liabilities	14,020	15,076
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized as of March 31, 2018 and December 31, 2017, no shares issued or outstanding as of March 31, 2018 and December 31, 2017.
Common stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2018 and December 31, 2017, 14,232,313 and 10,633,042 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively.	22	18
Additional paid in capital	88,493	64,397
Accumulated deficit	(67,698)	(60,474)
Total stockholders’ equity	20,817	3,941
Total liabilities and stockholders’ equity	$ 34,837	$ 19,017

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017	Aug. 03, 2016
Condensed Balance Sheets
Preferred Stock, Par Value (in dollar per share)	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, Par Value (in dollar per share)	$ 0.001	$ 0.001
Common Stock, share authorized	100,000,000	100,000,000	100,000,000
Common Stock, share issued	14,232,313	10,633,042
Common Stock, share outstanding	14,232,313	10,633,042

Statements of Comprehensive Los

Statements of Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating expenses:
General and administrative	$ 2,087,000	$ 2,223,000
Research and development	4,977,000	5,280,000
Total operating expenses	7,064,000	7,503,000
Loss from operations	(7,064,000)	(7,503,000)
Interest (expense) income	(160,000)	12,000
Other expense		(5,000)
Loss before income taxes	(7,224,000)	(7,496,000)
Provision (benefit) for income taxes	0	0
Net loss	(7,224,000)	(7,496,000)
Comprehensive loss	$ (7,224,000)	$ (7,496,000)
Net loss per share:
Basic and diluted (Note 9)	$ (0.58)	$ (0.79)
Number of shares used in per share calculations:
Basic and diluted	12,439,591	9,521,224

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Common StockPrivate placement	Common Stock	Additional Paid-in CapitalPrivate placement	Additional Paid-in Capital	Accumulated Deficit	Private placement	Total
Balance at beginning of period at Dec. 31, 2016		$ 17		$ 47,674	$ (27,059)		$ 20,632
Balance at end of period (shares) at Mar. 31, 2017		10,596,838
Balance at beginning of period (shares) at Dec. 31, 2016		9,270,255
Increase (Decrease) in Stockholders' Equity
Issuance of common stock from private placement	$ 1		$ 8,978			$ 8,979
Issuance of common stock from private placement (shares)	1,324,256
Issuance of detachable stock warrants in connection with private placement			3,562			3,562
Issuance costs of private placement			$ (1,219)			$ (1,219)
Exercise of stock options				3			3
Exercise of stock options (in shares)		2,327
Share-based compensation - employee				829			829
Share-based compensation - non-employee				7			7
Net loss					(7,496)		(7,496)
Balance at end of period at Mar. 31, 2017		$ 18		59,834	(34,555)		25,297
Balance at beginning of period at Dec. 31, 2016		$ 17		47,674	(27,059)		20,632
Balance at end of period (shares) at Dec. 31, 2017		10,633,042
Balance at beginning of period (shares) at Dec. 31, 2016		9,270,255
Balance at end of period at Dec. 31, 2017		$ 18		64,397	(60,474)		3,941
Balance at end of period (shares) at Mar. 31, 2018		14,232,313
Balance at beginning of period (shares) at Dec. 31, 2017		10,633,042
Increase (Decrease) in Stockholders' Equity
Issuance of common stock from private placement		$ 4		25,146			$ 25,150
Issuance of common stock from private placement (shares)		3,592,858					3,592,858
Issuance costs of private placement				(2,093)			$ (2,093)
Exercise of stock options				23			23
Exercise of stock options (in shares)		6,413
Share-based compensation - employee				1,019			1,019
Share-based compensation - non-employee				1			1
Net loss					(7,224)		(7,224)
Balance at end of period at Mar. 31, 2018		$ 22		$ 88,493	$ (67,698)		$ 20,817

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Statements of Cash Flows
Net loss	$ (7,224)	$ (7,496)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	1,020	836
Non-cash discount amortization on term loan and convertible notes	77
Change in assets and liabilities:
Prepaid expenses and other assets	168	161
Accounts payable	(1,304)	1,473
Accrued and other liabilities	27	(1,197)
Net cash used in operating activities	(7,236)	(6,223)
Net cash used in operating activities	(7,236)	(6,223)
Financing activities
Exercise of stock options	23	3
Proceeds from sale of common stock	25,150	12,541
Offering costs	(1,949)	(1,072)
Net cash provided by financing activities	23,224	11,472
Net increase in cash and cash equivalents	15,988	5,249
Cash and cash equivalents at beginning of period	18,473	24,033
Cash and cash equivalents at end of period	34,461	29,282
Supplemental disclosure of cash flow information:
Cash paid for interest	112
Supplemental non-cash financing transactions:
Offering costs in accounts payable and accrued liabilities	$ 144	$ 147

The Company and Basis of Presen

The Company and Basis of Presentation	3 Months Ended
	Mar. 31, 2018
The Company and Basis of Presentation
The Company and Basis of Presentation	1. The Company and Basis of Presentation On November 10, 2008, Michigan Life Therapeutics, LLC (MLT) was organized as a limited liability company (LLC) in Michigan. On October 30, 2014, Gemphire Therapeutics Inc. (Gemphire or the Company) was incorporated as a C corporation in the state of Delaware. On November 1, 2014, MLT entered into a merger agreement with Gemphire whereby MLT was merged with and into Gemphire with Gemphire as the surviving entity; all outstanding membership interests of MLT were exchanged for shares of Gemphire’s common stock. The purpose of the merger was to change the jurisdiction of MLT from Michigan to Delaware and to convert from an LLC to a corporation. The Company’s headquarters are located in Livonia, Michigan. The Company is a clinical‑stage biopharmaceutical entity focused on developing and commercializing therapies for the treatment of dyslipidemia, a serious medical condition that increases the risk of life threatening cardiovascular disease, and NAFLD/NASH (nonalcoholic fatty liver disease). The Company’s primary activities to date have been conducting research and development activities, planning and conducting clinical trials, performing business and financial planning, recruiting personnel and raising capital. The Company is subject to certain risks, which include the need to research, develop, and clinically test potentially therapeutic products, initially one product candidate gemcabene (also known as CI‑1027); obtain regulatory approval for its products and commercialize them around the world; expand its management scientific staff; finance its operations; and, find collaboration partners to further advance development and commercial efforts. Initial Public Offering On August 4, 2016, the Company’s Registration Statement on Form S-1 (File No 333-210815) relating to its initial public offering (IPO) of its common stock was declared effective by the Securities and Exchange Commission (SEC). Pursuant to such Registration Statement, on August 10, 2016, the Company closed its IPO whereby 3,000,000 shares of its common stock were issued and sold at a public offering price of $10.00 per share. On September 8, 2016, the Company closed the sale of 27,755 shares of its common stock at the public offering price of $10.00 per share, representing a partial exercise of the underwriters’ over-allotment option, following which, the IPO terminated. The Company received net proceeds of approximately $26.1 million after deducting underwriting discounts and commissions of $2.1 million and other offering expenses of $2.1 million. Immediately prior to the IPO, the Company amended and restated its certificate of incorporation and bylaws to, among other things, change its authorized capital stock to consist of (i) 100,000,000 shares of common stock and (ii) 10,000,000 shares of undesignated preferred stock. Both the common stock and the preferred stock have a par value of $0.001 per share. Private Placement Offering On March 10, 2017, the Company entered into a securities purchase agreement for a private placement (the Private Placement) with a select group of accredited investors whereby, on March 15, 2017 the Company issued and sold 1,324,256 units at a price of $9.47 per unit for gross proceeds of approximately $12.5 million. Each unit consists of one share of the Company’s common stock and a warrant to purchase 0.75 shares of common stock. The warrants have an exercise price of $10.40 per share and are exercisable for a period of five years from the date of issuance. On April 20, 2017, the registration statement on Form S-1 (File No 333-217296) for the resale of the shares of common stock issued in the Private Placement and the shares of common stock to be issued upon exercise of the warrants issued in the Private Placement was declared effective by the SEC. Follow-On Public Offering On February 12, 2018, the Company completed an underwritten public offering (the Follow-On Offering) of 3,142,858 shares of common stock at the public offering price of $7.00 per share. As part of such offering, the Company issued 450,000 additional shares of common stock representing partial exercise of the underwriters’ overallotment option. The Company received net proceeds of approximately $23.1 million after deducting underwriting discounts and commissions and offering expenses. Capital Requirements The Company has sustained operating losses since inception and expects such losses to continue over the next several years. Management plans to continue financing the Company’s operations with equity issuances. The Company’s management believes the cash and cash equivalents on hand are adequate to fund the Company’s operations for at least the next 12 months. If adequate funds are not available, the Company may be required to delay, reduce the scope of, or eliminate part or all of its research and development programs. Basis of Presentation The accompanying condensed financial statements have been prepared by the Company, without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. The condensed financial statements may not include all disclosures required by U.S. GAAP; however, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto for the fiscal year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 20, 2018 . The condensed balance sheet at December 31, 2017 was derived from the audited financial statements. In the opinion of management, all adjustments, consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, have been made. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of deposit to be cash equivalents. The Company invests excess cash in readily available checking and savings accounts and highly liquid investments in money market accounts. Fair Value of Financial Instruments The Company’s condensed financial instruments include principally cash and cash equivalents, other current assets, accounts payable, accrued liabilities and debt. The carrying amounts for these condensed financial instruments reported in the balance sheets approximate their fair values. See Note 10 — Fair Value Measurements, for further discussion of fair value. General and Administrative Expenses General and administrative expenses consist primarily of personnel‑related costs, including salaries and share‑based compensation costs, for personnel in functions not directly associated with research and development activities. Other significant costs include legal fees related to intellectual property and corporate matters and professional fees for accounting and other services. Research and Development Expenses Research and development expenses consist of costs incurred in performing research and development activities, including compensation for research and development employees, costs associated with preclinical studies and trials, regulatory activities, manufacturing activities to support clinical activities, license fees, non‑legal patent costs, fees paid to external service providers that conduct certain research and development, clinical costs and an allocation of overhead expenses. Research and development costs are expensed as incurred. Income Taxes The Company utilizes the liability method of accounting for income taxes as required by Accounting Standards Codification (ASC) 740, Income Taxes . Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. Currently, there is no provision for income taxes, as the Company has incurred operating losses to date, and a full valuation allowance has been provided on the net deferred tax assets. Share‑Based Compensation The Company accounts for share‑based compensation in accordance with the provisions of ASC 718, Compensation — Stock Compensation (ASC 718). Accordingly, compensation costs related to equity instruments granted are recognized at the grant‑date fair value. The Company records forfeitures when they occur. Share‑based compensation arrangements to non‑employees are accounted for in accordance with the applicable provisions of ASC 718 and ASC 505, Equity , using a fair value approach. The compensation costs of these arrangements are subject to re‑measurement as the equity instruments vest and are recognized as expense over the related service period (typically the vesting period of the awards). Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer views the Company’s operations and manages its business in one operating segment, which is the business of development and commercialization of therapeutics for the treatment of dyslipidemia, a serious medical condition that increases the risk of life threatening cardiovascular disease and NAFLD/NASH. Accordingly, the Company has a single reporting segment. Jumpstart Our Business Startups Act Accounting Election As an emerging growth company under the Jumpstart Our Business Startups Act (JOBS Act), the Company is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. The Company has irrevocably elected not to avail itself of this exemption and, therefore, will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. Recently Adopted Accounting Pronouncements In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The objective of this ASU is to eliminate the diversity in practice related to the classification of restricted cash or restricted cash equivalents in the statement of cash flows. For public business entities, this ASU is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented. The Company adopted this standard on January 1, 2018 and it did not have a material impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718 ) : Scope of Modification Accounting (ASU 2016-09), which provides guidance about which changes to the terms or conditions of a share-based payment awards require an entity to apply modification accounting in Topic 718. This pronouncement is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company has adopted this standard on January 1, 2018 and it did not have a material impact on the Company’s financial statements. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) , that codified the SEC Staff Accounting Bulletin 118 (SAB 118) issued on December 22, 2017, which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the TCJA). SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the TCJA for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the TCJA is incomplete but for which they are able to determine a reasonable estimate, it must record a provisional amount in the financial statements. Provisional treatment is proper in light of anticipated additional guidance from various taxing authorities, the SEC, the FASB, and even the Joint Committee on Taxation. If a company cannot determine a provisional amount to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the TCJA. The Company has applied this guidance to its financial statements. In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers — Topic 606 , which supersedes the revenue recognition requirements in FASB ASC 605. The new guidance primarily states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In January 2017 and September 2017, the FASB issued several amendments to ASU 2014‑09, including updates stemming from SEC Accounting Staff Announcement in July 2017. The amendments and updates included clarification on accounting for principal versus agent considerations (i.e., reporting gross versus net), licenses of intellectual property and identification of performance obligations. These amendments and updates do not change the core principle of the standard but provide clarity and implementation guidance. The Company has adopted this standard on January 1, 2018 and selected the modified retrospective transition method. The Company modified its accounting policies to reflect the requirements of this standard; however, the planned adoption will not affect the Company’s financial statements and related disclosures for these periods or future periods until the Company generates revenues. Recent Accounting Pronouncements Not Yet Adopted In January 2016, the FASB issued ASU No. 2016‑01, Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in the first quarter of fiscal 2019. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option. The Company is currently evaluating the impact of the new guidance on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequently amended the guidance relating largely to transition considerations under the standard in January 2017. The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating the new guidance to determine the impact it may have on its financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share, Distinguishing Liabilities from Equity and Derivatives and Hedging , which changes the accounting and earnings per share for certain instruments with down round features. The amendments in this ASU should be applied using a cumulative-effect adjustment as of the beginning of the fiscal year or retrospective adjustment to each period presented and is effective for annual periods beginning after December 15, 2018, and interim periods within those periods. The Company is currently evaluating the requirements of this new guidance and has not yet determined its impact on the Company’s financial statements.

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2018
Accrued Liabilities
Accrued Liabilities	3. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, December 31, 2018 2017 Accrued compensation and other payroll liabilities $ 293 $ 306 Legal costs 253 91 Accrued interest 39 38 Other research and development expenses 427 522 Other general and administrative expenses 42 53 Total $ 1,054 $ 1,010

Debt

Debt	3 Months Ended
	Mar. 31, 2018
Debt
Debt	4. Debt Term Loan On July 24, 2017, the Company entered into a Loan and Security Agreement (the Loan Agreement) with Silicon Valley Bank (SVB) for a term loan of up to $15.0 million (the Term Loan), subject to funding in several tranches. The Company drew the initial tranche of $10.0 million on July 24, 2017. Conditioned on the occurrence of certain clinical and pre-clinical milestones , an additional tranche of $5.0 million may be available to be drawn by the Company through July 31, 2018. The Company is in compliance with the Loan Agreement covenants as of March 31, 2018. All amounts advanced under the Term Loan mature on February 1, 2021 and have an interest-only monthly payment period through August 1, 2018; the interest-only period may be extended to February 1, 2019 conditioned on the occurrence of such clinical and pre-clinical milestones referenced above. Following the interest-only payment period, the Company will begin making monthly payments of principal and interest until the maturity date. Interest will accrue on the unpaid principal balance at a floating per annum rate equal to the prime rate, except that, following an event of default, interest will accrue at a rate up to 5% above the rate that is otherwise applicable. The prime rate in effect for the first quarter ending March 31, 2018 ranged from 4.5% to 4.75%. Lastly, debt issue costs in the amount of $0.1 million were incurred as of March 31, 2018 and December 31, 2017 and were recorded as a discount to the Term Loan and are being amortized ratably to interest expense over the term of the loan. The Loan Agreement requires the Company to pay the following fees: (i) upon the maturity, acceleration or prepayment of the Term Loan, a final payment fee of 10% of the funded principal amount of the Term Loan which was recorded as a liability upon issue and then discounted to be subsequently amortized ratably to interest expense over the term of the loan, (ii) a success fee of 3.5% of the funded principal amount of the Term Loan in the event any of the following occur prior to 5:00 pm Eastern Time on July 24, 2024: (a) the Company receives FDA approval for any new drug application for gemcabene, (b) a sale or other transfer of all or substantially all of the assets of the Company occurs, (c) a merger or consolidation of the Company with or into another person or entity occurs where the holders of the Company’s outstanding voting equity securities immediately prior to such merger or consolidation hold less than a majority of the issued and outstanding voting equity securities of the successor immediately following such transaction or (d) any sale by the holders of the Company’s outstanding voting equity securities where such holders do not continue to hold at least a majority of the Company’s issued and outstanding voting equity securities, and (iii) upon termination of the Loan Agreement prior to the maturity date for any reason, a prepayment fee equal to 2% (if such prepayment occurs prior to the first anniversary of the Effective Date) or 1% (if such prepayment occurs thereafter) of the funded principal amount of the Term Loan. In the event a positive clinical trial event as defined in the Loan Agreement does not occur by March 31, 2018, on such date, the Company must either (i) provide cash security and maintain a cash balance in a restricted account at SVB in an amount of at least 50% of the amounts the Company owes to SVB or (ii) prepay the Term Loan in its entirety. On November 10, 2017, the Company provided SVB evidence of a positive clinical trial event. In the event a pre-clinical event does not occur by July 31, 2018, on such date, the Company must either (i) provide cash security and maintain a cash balance in a restricted account at SVB in an amount of at least 100% of the amounts the Company owes to SVB or (ii) prepay the Term Loan in its entirety. In each case, if the Company chooses to prepay the Term Loan, in addition to the repayment of the outstanding principal and accrued and unpaid interest, the Company is required to pay the final payment fee and, if applicable, the success fee, but not the prepayment fee. The Company recorded $0.2 million and zero in interest expense related to the Term Loan for the three months ended March 31, 2018. As of March 31, 2018, the minimum aggregate future payments under the Term Loan are as follows (in thousands): March 31, 2018 $ 2,009 2019 4,297 2020 4,105 2021 1,333 Total minimum payments 11,744 Amount representing interest and discounts (1,629) Present value of minimum payments 10,115 Current portion (2,355) Long-term portion $ 7,760 Future minimum interest payments under the Term Loan are assumed at a 4.75% per annum rate.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	5. Commitments and Contingencies Pfizer License Agreement In April 2011, the Company and Pfizer Inc. (Pfizer) entered into an exclusive license agreement (the Pfizer Agreement) for the clinical product candidate gemcabene. In exchange for this worldwide exclusive right and license to certain patent rights to make, use, sell, offer for sale and import the clinical product gemcabene, the Company agreed to certain milestone and royalty payments on future sales (See Note 6 — License Agreement) . As of March 31, 2018, there was sufficient uncertainty with regard to both the outcome of the clinical trials and the ability to obtain sufficient funding to support any of the cash milestone payments under the license agreement, and as such, no liabilities were recorded related to the license agreement. Other Agreements In May 2016, the Company entered into a non-cancellable lease agreement for its headquarters location, commencing in the third quarter of 2016. The initial term of the agreement is 3 years with an initial monthly base rent of approximately $8,400 and increasing to approximately $8,900 during the last year of the lease term. In conjunction with entering into the new lease agreement, the Company cancelled its original Northville, Michigan lease agreement, as amended, effective August 31, 2016 and renegotiated a new cancellable lease agreement for limited use of office space in the Northville location that expired in September 2017 that had nominal rent. The total rent expense was $26,000 during both of the three month periods ended March 31, 2018 and 2017. Future minimum lease payments under the fixed non-cancellable operating lease through the August 2019 expiration date consist of the following (in thousands): March 31, 2018 $ 78 2019 71 Total $ 149

License Agreement

License Agreement	3 Months Ended
	Mar. 31, 2018
License Agreement
License Agreement	6. License Agreement In April 2011, the Company entered into the Pfizer Agreement for a worldwide exclusive license to certain patent rights to make, use, sell, offer for sale and import the clinical product candidate gemcabene. In exchange for this license, the Company agreed to issue shares of its common stock to Pfizer representing 15% of the Company’s fully diluted capital at the close of its first arms‑length Series A financing, which occurred on March 31, 2015. The Company agreed to make milestone payments totaling up to $37 million upon the achievement of certain milestones, including the first regulatory submission in any country, regulatory approval in each of the United States, Europe and Japan, the first anniversary of the first regulatory approval in any country, and upon achieving certain aggregate sales levels of gemcabene or any product containing gemcabene. Future milestone payments under the Pfizer Agreement, if any, are not expected to begin for at least several years and extend over a number of subsequent years. The Company also agreed to pay Pfizer tiered royalties on a country‑by‑country basis based upon the annual amount of net sales, as specified in the Pfizer Agreement until expiration of the last valid claim of the licensed patent rights including any patent term extensions or supplemental protection certificates. Under the Pfizer Agreement, the Company is obligated to use commercially reasonable efforts to develop and commercialize gemcabene. On March 31, 2015, upon the closing of the Series A preferred stock financing, the Company issued 675,250 shares of its common stock, at a fair market value of $0.9 million, to Pfizer in connection with the first equity payment, pursuant to which Pfizer became the owner of more than 5% of the Company’s capital stock. The transaction was recorded as acquired in‑process research and development expenses based on the fair market value of the common shares issued since no processes or activities that would constitute a “business” were acquired and none of the rights and underlying assets acquired had alternative future uses or reached a stage of technological feasibility. None of the other milestone or royalty payments were triggered as of March 31, 2018. The Pfizer Agreement will expire upon expiration of the last royalty term. Either party may terminate the Pfizer Agreement for the other party’s uncured material breach or upon specified bankruptcy events. Pfizer may terminate the Pfizer Agreement if the Company or any of its sublicenses challenge the validity, enforceability or ownership of the licensed patents. Upon termination of the license agreement for cause by Pfizer, the Company must grant Pfizer a non-exclusive license to use any intellectual property rights arising from the development or commercialization of gemcabene. Additionally, Pfizer may revoke the license if the Company is unable to adequately commercialize gemcabene by April 2021. Pfizer has a non-exclusive, sub licensable, royalty-free right and license for non-commercial research or development purposes to intellectual property rights relating to gemcabene that are developed by the Company after the effective date of the license with Pfizer.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2018
Stockholders’Equity
Stockholders’ Equity	7. Stockholders’ Equity Common Stock The Company had 14,232,313 and 10,633,042 shares of its common stock issued and outstanding as of March 31, 2018 and December 31, 2017, respectively. Voting, dividend and liquidation rights of the holders of the common stock are subject to the Company’s articles of incorporation, corporate bylaws and underlying shareholder agreements. In the first quarter of 2018, the Company completed the Follow-On Offering of 3,592,858 shares of common stock which includes 450,000 shares of common stock purchased by the underwriters upon the partial exercise of their overallotment option, at the public offering price of $7.00 per share. The Company received net proceeds of approximately $23.1 million after deducting underwriting discounts and commissions and offering expenses. The costs incurred related to the Follow-On Offering were $2.1 million through March 31, 2018. On March 15, 2017, the Company issued and sold 1,324,256 units at a price of $9.47 per unit for gross proceeds of approximately $12.5 million in connection with the Private Placement. Each unit consisted of one share of the Company’s common stock and a warrant to purchase 0.75 shares of common stock. The Company received net proceeds of approximately $11.2 million after deducting underwriting discounts and commissions and offering expenses. Offering costs incurred related to the 2017 Private Placement were $1.3 million through December 31, 2017 and March 31, 2018. Warrants In connection with the Private Placement, the Company issued warrants to the investors participating in the financing to purchase an additional 993,204 shares of common stock. The warrants have a term of five years and were exercisable immediately upon issuance with an exercise price equal to $10.40 per share. The warrants were classified as additional paid-in capital and recorded based on their relative fair value to the underlying common shares issued in the Private Placement. The fair market value of the warrants was approximately $4.9 million. The warrants were valued using the Black-Scholes method with the following assumptions: a risk-free interest rate of 2.0%, a contractual term of five years, zero dividend yield and a volatility factor of 65.1%. During the three month periods ending March 31, 2018 and 2017, no warrant shares were exercised. As of March 31, 2018, 978,204 warrant shares were outstanding. Dividend Rights Common stock holders are entitled to receive dividends at the sole discretion of the board of directors of the Company. There have been no dividends declared on common stock as of March 31, 2018. Voting Rights The holders of common stock are entitled to one vote for each share of common stock along with all other classes and series of stock of the Company on all actions to be taken by the stockholders of the Company, including actions that would amend the certificate of incorporation of the Company to increase the number of authorized shares of the common stock. Liquidation Rights In the event of any liquidation, dissolution, or winding‑up of the Company, the holders of common stock shall be entitled to share in the remaining assets of the Company available for distribution post preferential distributions made to preferred stockholders, if any.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2018
Share-Based Compensation
Share-Based Compensation	8. Share‑Based Compensation Share-based compensation expense was included in general and administrative and research and development expenses as follows in the accompanying condensed statements of comprehensive loss (in thousands): Three Months Ended March 31, 2018 2017 General and administrative $ 711 $ 569 Research and development 309 267 Total share-based compensation $ 1,020 $ 836 Restricted Stock Awards During the three months ended March 31, 2018 and 2017, the Company did not grant any restricted stock awards (RSAs). The RSAs previously granted were subject to various vesting schedules and generally vested ratably over a six to 24 month period coinciding with their respective service periods. During the three months ended March 31, 2018 and 2017, zero and 4,009 RSAs vested, respectively. No RSAs were forfeited during the three months ended March 31, 2018 or 2017. Stock Options In April 2015, the Company adopted a 2015 Equity Incentive Plan (the 2015 Plan) under which 320,615 shares of the Company’s common stock were reserved for issuance to employees, directors and consultants. The 2015 Plan permits the grant of incentive and non‑statutory stock options, appreciation rights, restricted stock, restricted stock units, performance stock and cash awards, and other stock‑based awards. Amended and Restated 2015 Equity Incentive Plan In April 2016, the Company’s board of directors approved the Company’s amended and restated 2015 Plan (the A&R 2015 Plan). The Company’s stockholders also approved the A&R 2015 Plan in April 2016 and the A&R 2015 Plan became effective immediately upon the execution and delivery of the underwriting agreement related to the IPO. The A&R 2015 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards and other forms of equity awards, as well as performance cash awards. The Company initially reserved 2,400,000 shares of common stock for issuance under the A&R 2015 Plan. Under the A&R 2015 Plan, the number of shares of common stock reserved for issuance thereunder automatically increases on January 1st of each year, for a period of 10 years commencing on January 1, 2017 and ending on (and including) January 1, 2026, to an amount equal to 20% of the Company’s fully-diluted shares as of December 31st of the preceding calendar year. Notwithstanding the foregoing, the Company’s board of directors may act prior to January 1st of a given year to provide that there will be no January 1st increase in the shares reserved for such year, or that the increase in shares reserved for such year will be less than would have otherwise been allowed under the provision. Effective January 1, 2018, 415,077 shares were added to the A&R 2015 Plan under the share reserve provision for a total share reserve of 2,815,077 shares as of March 31, 2018. Inducement Plan In September 2016, the Company’s board of directors approved the Company’s Inducement Plan (the Inducement Plan). The Company initially reserved 300,000 shares of its common stock to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the Company within the meaning of Rule 5635(c)(4) of the NASDAQ Listing Rules. The Plan was approved by the Company’s board of directors without stockholder approval pursuant to Rule 5635(c)(4), and the terms and conditions of the Plan are substantially similar to the Company’s stockholder-approved A&R 2015 Plan. 2016 Employee Stock Purchase Plan In April 2016, the Company’s board of directors approved the 2016 Employee Stock Purchase Plan (the ESPP) in order to enable eligible employees to purchase shares of the Company’s common stock at a discount following the effective date of the IPO. The Company’s stockholders also approved the ESPP in April 2016 and the ESPP became effective immediately upon the execution and delivery of the underwriting agreement related to the IPO. The Company initially reserved 150,000 shares of common stock for issuance under the ESPP. As of March 31, 2018, no shares were purchased under the ESPP. During the three months ended March 31, 2018 and 2017, the Company granted an aggregate of 472,000 and 123,500 stock options, respectively, under the A&R 2015 Plan and the Inducement Plan to its officers, directors, employees and consultants, generally vesting over a four-year period with a weighted average grant date fair value of $10.18 and $6.32 per share, respectively. The Company measures the fair value of stock options with service‑based and performance‑based vesting criteria to employees, consultants and directors on the date of grant using the Black‑Scholes option pricing model. The fair value of equity instruments issued to non‑employees is re‑measured as the award vests. The Company does not have history to support a calculation of volatility and expected term. As such, the Company has used a weighted‑average volatility considering the volatilities of several guideline companies. For purposes of identifying similar entities, the Company considered characteristics such as industry, length of trading history, and stage of life cycle. The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The average expected life of the options was determined based on the mid‑point between the vesting date and the end of the contractual term according to the “simplified method” as described in Staff Accounting Bulletin 110. The risk‑free interest rate is determined by reference to implied yields available from U.S. Treasury securities with a remaining term equal to the expected life assumed at the date of grant. The Company records forfeitures when they occur. The weighted‑average assumptions used in the Black‑Scholes option‑pricing model are as follows: Three Months Ended March 31, 2018 2017 Expected stock price volatility 66.5 % 65.1 % Expected life of options (years) 5.8 6.1 Expected dividend yield 0 % 0 % Risk free interest rate 2.5 % 2.1 % During the three months ended March 31, 2018 and 2017, 180,348 and 136,353 stock options vested, respectively, and 3,500 and 3,250 were forfeited, respectively. As of March 31, 2018, 2,926,227 stock options were outstanding, and 158,906 shares in the aggregate were available for future issuance under the A&R 2015 and Inducement Plans. Unrecognized share‑based compensation cost for stock options issued under the A&R 2015 Plan and the Inducement Plan was $8.8 million as of March 31, 2018. The non‑employee portion of the unrecognized compensation cost was estimated utilizing the Company’s fair market value for its common stock as of March 31, 2018. The unrecognized share‑based expense is expected to be recognized over a weighted average period of 2.3 years for the stock options. There was no remaining unrecognized stock-based compensation related to the RSAs as of March 31, 2018.

Net Loss Per Common Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2018
Net Loss Per Common Share
Net Loss Per Common Share	9. Net Loss Per Common Share Basic earnings or loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted earnings or loss per share of common stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company’s RSAs, stock options and warrants are considered common stock equivalents while outstanding for this purpose. Diluted earnings are computed utilizing the treasury method for the RSAs, stock options and warrants. No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion would be anti‑dilutive given the net loss reported for the three months ended March 31, 2018 and 2017. The following table sets forth the computation of basic and diluted loss per share as of March 31, 2018 and 2017 (in thousands, except share and per share amounts): Three Months Ended 2018 2017 Numerator: Net loss $ (7,224) $ (7,496) Denominator: Basic and diluted weighted average common shares outstanding 12,439,591 9,521,224 Basic and diluted net loss per share $ (0.58) $ (0.79) The following potential common shares were not considered in the computation of diluted net loss per share as their effect would have been anti‑dilutive during the three months ended March 31, 2018 and 2017: Three Months Ended 2018 2017 Stock options 2,926,227 2,360,723 Warrants 978,204 993,204

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Measurements
Fair Value Measurements	10. Fair Value Measurements The Company follows accounting guidance that emphasizes that fair value is a market‑based measurement, not an entity specific measurement. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value measurements are defined on a three level hierarchy: Level 1 inputs: Unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 inputs: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, weather directly or indirectly, for substantially the full term of the asset or liability; Level 3 inputs: Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. As of March 31, 2018 and December 31, 2017, the fair values of cash and cash equivalents, other assets, accounts payable and accrued liabilities approximated their carrying values because of the short‑term nature of these assets or liabilities. The estimated fair value of the Company’s Term Loan was based on amortized cost which was deemed to approximate fair value. There were no transfers between fair value hierarchy levels during the three months ended March 31, 2018 and 2017. There were no instruments measured on a recurring fair value basis as of March 31, 2018 and December 31, 2017. In addition, no financial instruments were measured on a non‑recurring basis for any of the periods presented.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Taxes
Income Taxes	11. Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (the TCJA), which significantly modified U.S. corporate income tax law, was signed into law by President Trump. The TCJA contains significant changes to corporate income taxation, including but not limited to the reduction of the corporate income tax rate from a top marginal rate of 35% to a flat rate of 21%, limitation of the tax deduction for interest expense to 30% of earnings (except for certain small businesses), limitation of the deduction for net operating losses to 80% of current year taxable income and generally eliminating net operating loss carrybacks, allowing net operating losses to carryforward without expiration, one-time taxation of offshore earnings at reduced rates regardless of whether they are repatriated, elimination of U.S. tax on foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing many business deductions and credits (including changes to the orphan drug tax credit and changes to the deductibility of research and experimental expenditures that will be effective in the future). Notwithstanding the reduction in the corporate income tax rate, the overall impact of the new federal tax law is uncertain, including to what extent various states will conform to the newly enacted federal tax law. The Company has recorded the necessary provisional adjustments in the financial statements in accordance with its current understanding of the TCJA and guidance currently available as of this filing and recorded a provisional reduction of $6.8 million to its gross deferred tax assets in the fourth quarter of 2017, the period in which the legislation was enacted. The provisional reduction was fully offset by an equal reduction in the Company’s valuation allowance given the Company’s historical net losses, resulting in no net income tax expense being recorded. The Company may adjust these provisional amounts in future periods if its interpretation of the TCJA changes or as additional guidance becomes available. Any subsequent adjustment to these amounts is not expected to have a significant impact due to the valuation allowance. The effective tax rate for the three months ended March 31, 2018 and 2017 was zero percent. As a result of the analysis of all available evidence as of March 31, 2018 and December 31, 2017, the Company recorded a full valuation allowance on its net deferred tax assets. Consequently, the Company reported no income tax benefit for the three month periods ended March 31, 2018 and 2017. If the Company’s assumptions change and the Company believes that it will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction of future income tax expense. If the assumptions do not change, each period the Company could record an additional valuation allowance on any increases in the deferred tax assets.

Defined Contribution Plan

Defined Contribution Plan	3 Months Ended
	Mar. 31, 2018
Defined Contribution Plan
Defined Contribution Plan	12. Defined Contribution Plan The Company adopted a 401(k) defined contribution plan on September 5, 2017, effective as of January 1, 2017, for all employees over age 21. Employees can defer up to 100% of their compensation through payroll withholdings into the plan subject to federal law limits. Effective January 1, 2018, the Company began matching contributions on deferrals at 100% of deferrals up to 3% of one’s contributions and 50% on deferrals over 3%, but not exceeding 5% of one’s contributions in order to satisfy certain non-discrimination tests required by the Internal Revenue Code. Employee contributions and any employer matching contributions made to satisfy certain non-discrimination tests required by the Internal Revenue Code are 100% vested upon contribution. Discretionary employer matches vest over a six-year period beginning on the second anniversary of an employee’s date of hire. The amount of matching contributions made during the three month period ended March 31, 2018 was $25,000.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions
Related Party Transactions	13. Related Party Transactions The Company rented an office in Northville, Michigan from an LLC owned by one current and one former officer under short‑term agreements during the three period ended March 31, 2017. The original facility lease, as amended, was cancelled and replaced with a cancellable lease agreement in the third quarter of 2016 for limited use of office space in the same Northville location. The new lease agreement became effective in the third quarter of 2016 and expired in September 2017 with a nominal base rent over its term. There was no rent expense under the related party agreements during the three months ended March 31, 2018. In the first quarter of 2018, in connection with an underwritten public offering of 3,592,858 shares of common stock, the offering included 14,286 shares sold to 1 officer, for aggregate proceeds totaling approximately $0.1 million and 71,429 shares sold to 1 investor who is an affiliate of 1 officer and board member, for proceeds totaling approximately $0.5 million. The Private Placement in 2017 included 56,678 units sold to three board members, for aggregate proceeds totaling approximately $0.5 million, and 52,798 units sold to one investor who was related to one board member, for proceeds totaling approximately $0.5 million.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events
Subsequent Events	14. Subsequent Events On April 9, 2018, the Company’s board of directors approved an amendment to the Inducement Plan to increase the number of shares reserved under the Inducement Plan by 150,000 shares, bringing the total amount of authorized shares reserved under the Inducement Plan to 450,000 shares. The Company’s board of directors also approved an amendment to the A&R 2015 Plan to increase the number of shares reserved under the A&R 2015 Plan by 300,000 shares to make such shares available for grant in 2018; such amendment is subject to approval by the Company’s stockholders.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of deposit to be cash equivalents. The Company invests excess cash in readily available checking and savings accounts and highly liquid investments in money market accounts.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s condensed financial instruments include principally cash and cash equivalents, other current assets, accounts payable, accrued liabilities and debt. The carrying amounts for these condensed financial instruments reported in the balance sheets approximate their fair values. See Note 10 — Fair Value Measurements, for further discussion of fair value.
General and Administrative Expenses	General and Administrative Expenses General and administrative expenses consist primarily of personnel‑related costs, including salaries and share‑based compensation costs, for personnel in functions not directly associated with research and development activities. Other significant costs include legal fees related to intellectual property and corporate matters and professional fees for accounting and other services.
Research and Development Expenses	Research and Development Expenses Research and development expenses consist of costs incurred in performing research and development activities, including compensation for research and development employees, costs associated with preclinical studies and trials, regulatory activities, manufacturing activities to support clinical activities, license fees, non‑legal patent costs, fees paid to external service providers that conduct certain research and development, clinical costs and an allocation of overhead expenses. Research and development costs are expensed as incurred.
Income Taxes	Income Taxes The Company utilizes the liability method of accounting for income taxes as required by Accounting Standards Codification (ASC) 740, Income Taxes . Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. Currently, there is no provision for income taxes, as the Company has incurred operating losses to date, and a full valuation allowance has been provided on the net deferred tax assets.
Share-Based Compensation	Share‑Based Compensation The Company accounts for share‑based compensation in accordance with the provisions of ASC 718, Compensation — Stock Compensation (ASC 718). Accordingly, compensation costs related to equity instruments granted are recognized at the grant‑date fair value. The Company records forfeitures when they occur. Share‑based compensation arrangements to non‑employees are accounted for in accordance with the applicable provisions of ASC 718 and ASC 505, Equity , using a fair value approach. The compensation costs of these arrangements are subject to re‑measurement as the equity instruments vest and are recognized as expense over the related service period (typically the vesting period of the awards).
Segment Information	Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer views the Company’s operations and manages its business in one operating segment, which is the business of development and commercialization of therapeutics for the treatment of dyslipidemia, a serious medical condition that increases the risk of life threatening cardiovascular disease and NAFLD/NASH. Accordingly, the Company has a single reporting segment.
Jumpstart Our Business Startups Act Accounting Election	Jumpstart Our Business Startups Act Accounting Election As an emerging growth company under the Jumpstart Our Business Startups Act (JOBS Act), the Company is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. The Company has irrevocably elected not to avail itself of this exemption and, therefore, will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The objective of this ASU is to eliminate the diversity in practice related to the classification of restricted cash or restricted cash equivalents in the statement of cash flows. For public business entities, this ASU is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented. The Company adopted this standard on January 1, 2018 and it did not have a material impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718 ) : Scope of Modification Accounting (ASU 2016-09), which provides guidance about which changes to the terms or conditions of a share-based payment awards require an entity to apply modification accounting in Topic 718. This pronouncement is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company has adopted this standard on January 1, 2018 and it did not have a material impact on the Company’s financial statements. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) , that codified the SEC Staff Accounting Bulletin 118 (SAB 118) issued on December 22, 2017, which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the TCJA). SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the TCJA for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the TCJA is incomplete but for which they are able to determine a reasonable estimate, it must record a provisional amount in the financial statements. Provisional treatment is proper in light of anticipated additional guidance from various taxing authorities, the SEC, the FASB, and even the Joint Committee on Taxation. If a company cannot determine a provisional amount to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the TCJA. The Company has applied this guidance to its financial statements. In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers — Topic 606 , which supersedes the revenue recognition requirements in FASB ASC 605. The new guidance primarily states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In January 2017 and September 2017, the FASB issued several amendments to ASU 2014‑09, including updates stemming from SEC Accounting Staff Announcement in July 2017. The amendments and updates included clarification on accounting for principal versus agent considerations (i.e., reporting gross versus net), licenses of intellectual property and identification of performance obligations. These amendments and updates do not change the core principle of the standard but provide clarity and implementation guidance. The Company has adopted this standard on January 1, 2018 and selected the modified retrospective transition method. The Company modified its accounting policies to reflect the requirements of this standard; however, the planned adoption will not affect the Company’s financial statements and related disclosures for these periods or future periods until the Company generates revenues. Recent Accounting Pronouncements Not Yet Adopted In January 2016, the FASB issued ASU No. 2016‑01, Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in the first quarter of fiscal 2019. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option. The Company is currently evaluating the impact of the new guidance on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequently amended the guidance relating largely to transition considerations under the standard in January 2017. The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating the new guidance to determine the impact it may have on its financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share, Distinguishing Liabilities from Equity and Derivatives and Hedging , which changes the accounting and earnings per share for certain instruments with down round features. The amendments in this ASU should be applied using a cumulative-effect adjustment as of the beginning of the fiscal year or retrospective adjustment to each period presented and is effective for annual periods beginning after December 15, 2018, and interim periods within those periods. The Company is currently evaluating the requirements of this new guidance and has not yet determined its impact on the Company’s financial statements

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Accrued Liabilities
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): March 31, December 31, 2018 2017 Accrued compensation and other payroll liabilities $ 293 $ 306 Legal costs 253 91 Accrued interest 39 38 Other research and development expenses 427 522 Other general and administrative expenses 42 53 Total $ 1,054 $ 1,010

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt
Schedule of minimum aggregate future payments	As of March 31, 2018, the minimum aggregate future payments under the Term Loan are as follows (in thousands): March 31, 2018 $ 2,009 2019 4,297 2020 4,105 2021 1,333 Total minimum payments 11,744 Amount representing interest and discounts (1,629) Present value of minimum payments 10,115 Current portion (2,355) Long-term portion $ 7,760

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies
Future minimum lease payments	Future minimum lease payments under the fixed non-cancellable operating lease through the August 2019 expiration date consist of the following (in thousands): March 31, 2018 $ 78 2019 71 Total $ 149

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Share-Based Compensation
Schedule of share-based compensation expense	Share-based compensation expense was included in general and administrative and research and development expenses as follows in the accompanying condensed statements of comprehensive loss (in thousands): Three Months Ended March 31, 2018 2017 General and administrative $ 711 $ 569 Research and development 309 267 Total share-based compensation $ 1,020 $ 836
Schedule of weighted-average assumptions, option-pricing model	The weighted‑average assumptions used in the Black‑Scholes option‑pricing model are as follows: Three Months Ended March 31, 2018 2017 Expected stock price volatility 66.5 % 65.1 % Expected life of options (years) 5.8 6.1 Expected dividend yield 0 % 0 % Risk free interest rate 2.5 % 2.1 %

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2018
Net Loss Per Common Share
Schedule of computation of basic and diluted loss per share	The following table sets forth the computation of basic and diluted loss per share as of March 31, 2018 and 2017 (in thousands, except share and per share amounts): Three Months Ended 2018 2017 Numerator: Net loss $ (7,224) $ (7,496) Denominator: Basic and diluted weighted average common shares outstanding 12,439,591 9,521,224 Basic and diluted net loss per share $ (0.58) $ (0.79)
Schedule of potential common shares not considered in computation of diluted net loss per share	Three Months Ended 2018 2017 Stock options 2,926,227 2,360,723 Warrants 978,204 993,204

The Company and Basis of Pres27

The Company and Basis of Presentation (IPO and Capital Requirements) (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 12, 2018	Sep. 08, 2016	Aug. 04, 2016	Mar. 31, 2018	Mar. 31, 2017
Sale of Stock
Issuance of stock (in shares)				3,592,858
Other offering expenses				$ 1,949	$ 1,072
IPO
Sale of Stock
Issuance of stock (in shares)			3,000,000
Share price (in dollars per share)			$ 10
Net proceeds			$ 26,100
Underwriting discounts and commissions			2,100
Other offering expenses			$ 2,100
Overallotment
Sale of Stock
Issuance of stock (in shares)	450,000	27,755
Share price (in dollars per share)		$ 10

The Company and Basis of Pres28

The Company and Basis of Presentation (Private Placement Offering) (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 15, 2017	Mar. 31, 2018	Mar. 31, 2017
Private Placement Offering
Issuance of stock (in shares)		3,592,858
Gross proceeds		$ 25,150
Exercise price of warrant		$ 10.40
Class of Warrant or Right, Warrant Term		5 years
Private placement
Private Placement Offering
Issuance of stock (in shares)	1,324,256
Price per issue and sold units	$ 9.47
Gross proceeds	$ 12,500		$ 8,979
Number of shares per unit	1
Number of warrants per unit	0.75
Exercise price of warrant	$ 10.40
Class of Warrant or Right, Warrant Term	5 years

The Company and Basis of Pres29

The Company and Basis of Presentation (Follow-On Offering) (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 12, 2018	Sep. 08, 2016	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Aug. 04, 2016
Sale of Stock
Issuance of stock (in shares)			3,592,858
Common Stock, Par Value (in dollar per share)			$ 0.001		$ 0.001	$ 0.001
Offering costs			$ 1,949	$ 1,072
Follow On Offering
Sale of Stock
Issuance of stock (in shares)	3,142,858
Share price (in dollars per share)	$ 7
Net proceeds	$ 23,100
Offering costs			$ 2,100
Overallotment
Sale of Stock
Issuance of stock (in shares)	450,000	27,755
Share price (in dollars per share)		$ 10

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accrued Liabilities
Accrued compensation and other payroll liabilities	$ 293	$ 306
Legal costs	253	91
Accrued interest	39	38
Other research and development expenses	427	522
Other general and administrative expenses	42	53
Total	$ 1,054	$ 1,010

Debt - Term Loan (Details)

Debt - Term Loan (Details) - USD ($)	Jul. 31, 2018	Jul. 24, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Debt
Interest (expense) income			$ (160,000)	$ 12,000
Minimum aggregate future payments
2,018			2,009,000
2,019			4,297,000
2,020			4,105,000
2,021			1,333,000
Total minimum payments			11,744,000
Amount representing interest and discounts			(1,629,000)
Present value of minimum payments			10,115,000
Current portion			(2,355,000)		$ (1,355,000)
Long-term portion			7,760,000		$ 8,683,000
Term Loan
Debt
Principal amount		$ 15,000,000
Convertible interest rate (as a percentage)		5.00%
Debt issue costs			$ 100,000
Final payment fee (as a percentage)		10.00%
Success fee (as a percentage)		3.50%
Cash security (as a percentage)			50.00%
Interest (expense) income			$ 200,000	$ 0
Term Loan | Subsequent Event
Debt
Cash security (as a percentage)	100.00%
Term Loan | Minimum
Debt
Interest rate Percentage			4.50%
Minimum aggregate future payments
Interest rate Percentage			4.50%
Term Loan | Maximum
Debt
Interest rate Percentage			4.75%
Minimum aggregate future payments
Interest rate Percentage			4.75%
Term Loan | Prior to first anniversary effective date
Debt
Prepayment fee (as a percentage)		2.00%
Term Loan | Occurs thereafter
Debt
Prepayment fee (as a percentage)		1.00%
Initial Tranche
Debt
Principal amount		$ 10,000,000
Additional Tranche available to be drawn through July 31, 2018
Debt
Principal amount		$ 5,000,000

Commitments and Contingencies -

Commitments and Contingencies - Pfizer License Agreement (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Commitments and Contingencies
No liabilities were recorded related to the license agreement	$ 14,020	$ 15,076
Pfizer, Inc. | License Agreement
Commitments and Contingencies
No liabilities were recorded related to the license agreement	$ 0

Commitments and Contingencies33

Commitments and Contingencies - Other Agreements (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	15 Months Ended
	May 31, 2016	Mar. 31, 2018	Mar. 31, 2018
Related Party Transactions
Rent expense			$ 26,000
Future minimum lease payments of operating leases:
2,018		$ 78	78
2,019		71	71
Total		149	$ 149
Office Rental
Related Party Transactions
Rent expense		$ 0
Agreement Term	3 years
Monthly base rent	$ 8,400
Lease term monthly base rate	$ 8,900

License Agreement (Details)

License Agreement (Details) - USD ($)	Mar. 31, 2015	Mar. 31, 2018
License Agreements
Issuance of stock (in shares)		3,592,858
Issuance of common stock from private placement		$ 25,150,000
Common Stock
License Agreements
Issuance of stock (in shares)		3,592,858
Issuance of common stock from private placement		$ 4,000
Pfizer, Inc. | License Agreement
License Agreements
Percentage of shares of common stock offering issued to Pfizer	15.00%
Pfizer, Inc. | License Agreement | Common Stock
License Agreements
Issuance of stock (in shares)	675,250
Issuance of common stock from private placement	$ 900,000
Pfizer, Inc. | License Agreement | Common Stock | Minimum
License Agreements
Ownership by Pfizer	5.00%
Pfizer, Inc. | License Agreement | Milestone Payments
License Agreements
Potential payments upon achievement of certain milestones		$ 0
Pfizer, Inc. | License Agreement | Milestone Payments | Maximum
License Agreements
Potential payments upon achievement of certain milestones	$ 37,000,000

Stockholders_ Equity (Details)

Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 12, 2018	Mar. 15, 2017	Sep. 08, 2016	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Common Stock
Common Stock, share issued				14,232,313		10,633,042
Issuance of common stock from private placement (shares)				3,592,858
Gross proceeds				$ 25,150
Issuance costs of offering				$ 2,093
Follow On Offering
Common Stock
Issuance of common stock from private placement (shares)	3,142,858
Share price (in dollars per share)	$ 7
Net proceeds	$ 23,100
Private placement
Common Stock
Issuance of common stock from private placement (shares)		1,324,256
Price per issue and sold units		$ 9.47
Gross proceeds		$ 12,500			$ 8,979
Number of shares per unit		1
Number of warrants per unit		0.75
Issuance costs of offering					$ 1,219
Net proceeds		$ 11,200
Overallotment
Common Stock
Issuance of common stock from private placement (shares)	450,000		27,755
Share price (in dollars per share)			$ 10

Stockholders_ Equity - Warrants

Stockholders’ Equity - Warrants (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Warrants
Purchase of additional common stock through warrants	993,204
Term of warrants	5 years
Exercise price of warrant | $ / shares	$ 10.40
Fair market value of warrant | $	$ 4.9
Risk-free interest rate	2.00%
Contractual term	5 years
Dividend yield	0.00%
Volatility factor	65.10%
Class of Warrant or Right, Outstanding	978,204

Stockholders_ Equity - Dividend

Stockholders’ Equity - Dividend Rights (Details)	3 Months Ended
	Mar. 31, 2018USD ($)Vote / shares	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Offering Costs
Offering costs	$ 1,949,000	$ 1,072,000
Deferred Offering Costs			$ 21,000
Common Stock
Dividends Rights
No dividends declared	0
Voting Rights
No dividends declared	$ 0
Common stock, vote per share | Vote / shares	1

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	$ 1,020	$ 836
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	711	569
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation	$ 309	$ 267

Share-Based Compensation (Restr

Share-Based Compensation (Restricted Stock) (Details) - Restricted stock awards - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restricted Stock Awards
Vested (in shares)	0	(4,009)
Forfeited (in shares)	0	0
Minimum
Restricted Stock Awards
Vesting period	6 months
Maximum
Restricted Stock Awards
Vesting period	24 months

Share-Based Compensation (Stock

Share-Based Compensation (Stock Options) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Sep. 30, 2016	Apr. 30, 2016	Apr. 30, 2015
Stock Options, Additional Disclosures
Percentage of company's fully diluted shares	20.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected stock price volatility	66.50%	65.10%
Expected life of options (years)	5 years 9 months 18 days	6 years 1 month 6 days
Expected dividend yield	0.00%	0.00%
Risk free interest rate	2.50%	2.10%
Unrecognized share-based compensation
Unrecognized share-based compensation cost	$ 8,800,000
Unrecognized share-based compensation - Weighted average period	2 years 3 months 18 days
ESPP
Stock Options, Additional Disclosures
Common stock reserved for issuance (in shares)					150,000
Granted (in shares)	0
2015 Plan | Employees, directors and consultants
Stock Options, Additional Disclosures
Common stock reserved for issuance (in shares)						320,615
Number of Options
Vested	180,348	136,353
Forfeited, nonvested	3,500	3,250
Available for future issuance	158,906
A&R 2015 Plan
Stock Options, Additional Disclosures
Common stock reserved for issuance (in shares)			415,077
Number of years common shares automatically increase	10 years
Number of Options
Stock options outstanding	2,926,227		2,815,077
A&R 2015 Plan | Employees, directors and consultants
Stock Options, Additional Disclosures
Common stock reserved for issuance (in shares)					2,400,000
A&R 2015 Plan | Employees, Directors, Officers, and Consultants
Stock Options, Additional Disclosures
Granted (in shares)	472,000	123,500
Vesting period	4 years
Weighted average fair value per share of options granted	$ 10.18	$ 6.32
Inducement Plan
Stock Options, Additional Disclosures
Common stock reserved for issuance (in shares)				300,000
Restricted stock awards
Unrecognized share-based compensation
Unrecognized share-based compensation cost - RSA	$ 0

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Loss Per Common Share
Incremental common stock equivalents	0	0

Net Loss Per Common Share - Ear

Net Loss Per Common Share - Earning Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Comprehensive loss	$ (7,224)	$ (7,496)
Denominator:
Basic and diluted weighted average common shares outstanding	12,439,591	9,521,224
Basic and diluted	$ (0.58)	$ (0.79)

Net Loss Per Common Share - Ant

Net Loss Per Common Share - Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock options
Potential common shares
Potential common shares	2,926,227	2,360,723
Warrants
Potential common shares
Potential common shares	978,204	993,204

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Fair value measurements
Transfers between levels	$ 0		$ 0
Recurring
Fair value measurements
Total liabilities at Fair Value	0	$ 0
Nonrecurring
Fair value measurements
Total liabilities at Fair Value	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Jan. 01, 2018	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2017
Income Taxes
US Corporate income tax rate	21.00%				35.00%
Effective tax rate		0.00%		0.00%
Gross deferred tax assets			$ 6,800,000		$ 6,800,000
Income tax benefit (expense)		$ 0	$ 0	$ 0

Defined Contribution Plan (Deta

Defined Contribution Plan (Details)	3 Months Ended
	Mar. 31, 2018USD ($)age
Defined Contribution Plan Disclosure [Line Items]
Minimum age of employee to cover under the plan | age	21
Employee compensation deferred percentage	100.00%
Employer match of employee contributions of eligible compensation	100.00%
Percentage of compensation matched by employer	3.00%
Employer match of over all employee contributions of eligible compensation	50.00%
Percentage of employee contribution vested on their contribution	100.00%
Employer matches vesting period	6 years
Amount of discretionary matching contributions on employee deferrals | $	$ 25,000
Maximum
Defined Contribution Plan Disclosure [Line Items]
Percentage of compensation matched by employer	5.00%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 12, 2018	Mar. 15, 2017	Sep. 08, 2016	Mar. 31, 2018	Dec. 31, 2017
Related Party Transactions
Issuance of stock (in shares)				3,592,858
Follow On Offering
Related Party Transactions
Issuance of stock (in shares)	3,142,858
Share price (in dollars per share)	$ 7
Net proceeds	$ 23.1
Overallotment
Related Party Transactions
Issuance of stock (in shares)	450,000		27,755
Share price (in dollars per share)			$ 10
Private placement
Related Party Transactions
Issuance of stock (in shares)		1,324,256
Net proceeds		$ 11.2
1 Officer
Related Party Transactions
Issuance of stock (in shares)				14,286
Net proceeds				$ 0.1
Investors Related To Board Member And Officers
Related Party Transactions
Issuance of stock (in shares)				71,429
Net proceeds				$ 0.5
Three Board Members | Private placement
Related Party Transactions
Issuance of stock (in shares)					56,678
Net proceeds					$ 0.5
1 investor related to 1 board member | Private placement
Related Party Transactions
Issuance of stock (in shares)					52,798
Net proceeds					$ 0.5

Subsequent Events (Details)

Subsequent Events (Details) - shares	Apr. 09, 2018	Mar. 31, 2018	Jan. 01, 2018
Subsequent Event
Subsequent Event [Line Items]
Stock options outstanding	450,000
A&R 2015 Plan
Subsequent Event [Line Items]
Stock options outstanding		2,926,227	2,815,077
A&R 2015 Plan | Subsequent Event
Subsequent Event [Line Items]
Granted (in shares)	300,000
Inducement Plan | Subsequent Event
Subsequent Event [Line Items]
Granted (in shares)	150,000