Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2016 | Nov. 08, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | Aviragen Therapeutics, Inc. | |
Entity Central Index Key | 72,444 | |
Trading Symbol | avir | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 38,640,487 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 |
BARDA [Member] | ||
Current assets: | ||
Accounts receivable, net of allowance | $ 0.6 | $ 0.7 |
Cash and cash equivalents | 45.9 | 49.7 |
Short-term investments | 12.4 | 19.3 |
Prepaid and other current assets | 3.9 | 2.7 |
Total current assets | 62.8 | 72.4 |
Non-current assets: | ||
Property and equipment, net | 0.3 | 0.3 |
Total assets | 63.1 | 72.7 |
Current liabilities: | ||
Accounts payable | 1.6 | 3.9 |
Accrued expenses | 5.6 | 3.6 |
Short-term note payable | 0.4 | 0.4 |
Liability related to sale of future royalties, current portion | 1.2 | 1.3 |
Total current liabilities | 8.8 | 9.2 |
Non-current liabilities: | ||
Long-term note payable, net of current portion | 0.3 | 0.3 |
Liability related to sale of future royalties, net of current portion | 17.2 | 16.8 |
Other long-term liabilities, net of current portion | 0.2 | 0.2 |
Total liabilities | 26.5 | 26.5 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.10 par value: 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $0.10 par value: 200,000,000 shares authorized; 38,640,487 shares issued and outstanding at September 30, 2016 and June 30, 2016 | 3.9 | 3.9 |
Additional paid-in capital | 158 | 157.6 |
Accumulated other comprehensive income | 19 | 19 |
Accumulated deficit | (144.3) | (134.3) |
Total stockholders’ equity | 36.6 | 46.2 |
Total liabilities and stockholders’ equity | $ 63.1 | $ 72.7 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2016 | Jun. 30, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 38,640,487 | 38,640,487 |
Common stock, shares outstanding (in shares) | 38,640,487 | 38,640,487 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | ||
Royalty revenue and milestones | $ 0.1 | $ 1.7 |
Total revenue | 0.1 | 1.7 |
Operating expense: | ||
Research and development | 7.6 | 5.5 |
General and administrative | 2.2 | 2.2 |
Foreign exchange (gain) loss | (0.1) | 0.7 |
Total operating expense | 9.7 | 8.4 |
Loss from operations | (9.6) | (6.7) |
Other (expense) income: | ||
Non-cash interest expense on liability related to sale of future royalties | (0.4) | |
Interest income | 0.1 | |
Total other (expense) income | (0.4) | 0.1 |
Net loss | $ (10) | $ (6.6) |
Basic net loss per share (in dollars per share) | $ (0.26) | $ (0.17) |
Diluted net loss per share (in dollars per share) | $ (0.26) | $ (0.17) |
Basic weighted-average shares outstanding (in shares) | 38,640,487 | 38,624,227 |
Diluted weighted-average shares outstanding (in shares) | 38,640,487 | 38,624,227 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Sep. 30, 2016 - USD ($) $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Jun. 30, 2016 | 38,640,487 | 38,640,487 | |||
Balances at Jun. 30, 2016 | $ 3.9 | $ 157.6 | $ (134.3) | $ 19 | $ 46.2 |
Net loss | (10) | (10) | |||
Share-based compensation | 0.4 | $ 0.4 | |||
Balances (in shares) at Sep. 30, 2016 | 38,640,487 | 38,640,487 | |||
Balances at Sep. 30, 2016 | $ 3.9 | $ 158 | $ (144.3) | $ 19 | $ 36.6 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (10) | $ (6.6) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Share-based compensation | 0.4 | 0.6 |
Non-cash interest expense related to sale of future royalties | 0.4 | |
Change in operating assets and liabilities: | ||
Accounts receivables | 9.4 | |
Prepaid expenses and other current assets | (1.2) | (0.2) |
Accounts payable and accrued expenses | (0.3) | (2.3) |
Net cash (used in) provided by operating activities | (10.7) | 0.9 |
Cash flows from investing activities: | ||
Purchases of short and long-term investments | (1.2) | |
Maturity of short-term investments | 6.9 | 1 |
Net cash provided by (used in) investing activities | 6.9 | (0.2) |
Cash flows from financing activities: | ||
Payment on note payable | (0.1) | |
Net cash used in financing activities | (0.1) | |
(Decrease) increase in cash and cash equivalents | (3.8) | 0.6 |
Cash and cash equivalents at beginning of period | 49.7 | 44.7 |
Cash and cash equivalents at end of period | $ 45.9 | $ 45.3 |
Note 1 - Company Overview
Note 1 - Company Overview | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | (1) Company Overview Aviragen Therapeutics, Inc., together with its wholly owned subsidiaries (“Aviragen”, or the “Company”) is a biopharmaceutical company focused on the discovery and development of direct-acting antivirals to treat infections that have limited therapeutic options and affect a significant number of patients globally. The Company has three product candidates in active clinical development: vapendavir, an oral treatment for human rhinovirus (“HRV”) upper respiratory infections in moderate and severe asthmatics currently being evaluated in the Phase 2b SPIRITUS trial; BTA585, an oral fusion protein inhibitor in Phase 2 development for the treatment and prevention of respiratory syncytial virus (“RSV”) infections; and BTA074, a topical antiviral treatment in Phase 2 development for condyloma caused by human papillomavirus types 6 and 11. The Company is incorporated in the state of Delaware and its corporate headquarters are located in Alpharetta, Georgia. Although several of the Company’s influenza product candidates have been successfully developed and commercialized to-date by other larger pharmaceutical companies under collaboration, license or commercialization agreements with the Company, it has not independently developed or received regulatory approval for any product candidate, and the Company does not currently have any sales, marketing or commercial capabilities. Therefore, it is possible that the Company may not successfully derive any significant product revenues from any product candidates that it is developing now, or may develop in the future. The Company expects to incur losses for the foreseeable future as it intends to support the clinical and preclinical development of its product candidates. The Company plans to continue to finance its operations with (i) existing cash, cash equivalents and investments, (ii) proceeds from existing or potential future royalty-bearing licenses or collaborative research and development arrangements, (iii) future equity and/or asset or debt financings, or (iv) other financing arrangements. The Company’s ability to continue to support its operations is dependent, in the near-term, upon managing its cash resources, continuing to receive royalty revenue under existing licenses, entering into future collaboration, license or commercialization agreements, the successful development of its product candidates, executing future financings and ultimately, upon the approval of its products for sale and achieving positive cash flows from operations on a consistent basis. There can be no assurance that additional capital or funds will be available on terms acceptable to the Company, if at all, that the Company will be able to enter into collaboration, license or commercialization agreements in the future, or that the Company will ever generate significant product revenue and become operationally profitable on a consistent basis. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | (2) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. All material adjustments considered necessary for a fair presentation have been included. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). Except as disclosed herein, there has been no material change in the information disclosed in the notes to the condensed consolidated financial statements included in the Company’s Annual Report on Form 10-K that was filed with the SEC on September 13, 2016. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Operating results for the three months ended September 30, 2016 are not necessarily indicative of those in future quarters or the annual results that may be expected for the Company’s fiscal year ending June 30, 2017. For a more complete discussion of the Company’s significant accounting policies and other information, this report should be read in conjunction with the consolidated financial statements for the fiscal year ended June 30, 2016 included in the Company’s Annual Report on Form 10-K that was filed with the SEC on September 13, 2016. The Company’s significant accounting policies have not changed since June 30, 2016. Recent Accounting Standards In May 2014, the FASB issued authoritative accounting guidance related to revenue from contracts with customers. This guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2017. Accordingly, the Company will adopt this guidance on July 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this guidance. The Company is evaluating which transition approach to use and its impact, if any, on its consolidated financial statements. In August 2014, the FASB issued authoritative accounting guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. This guidance is effective for annual reporting ending after December 15, 2016, and for annual periods and interim periods thereafter with early application permitted. Accordingly, the standard is effective for the Company on June 30, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued guidance related to financial instruments - overall recognition and measurement of financial assets and financial liabilities. The guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for public companies for interim and annual periods beginning after December 15, 2017. Accordingly, the standard is effective for the Company on July 1, 2018. The Company is currently evaluating the impact that the standard will have on the consolidated financial statements. In February 2016, the FASB issued new guidance on leases. This guidance replaces the prior lease accounting guidance in its entirety. The underlying principle of the new standard is the recognition of lease assets and lease liabilities by lessees for substantially all leases, with an exception for leases with terms of less than twelve months. The standard also requires additional quantitative and qualitative disclosures. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The standard requires a modified retrospective approach, which includes several optional practical expedients. Accordingly, the standard is effective for the Company on July 1, 2019. The Company is currently evaluating the impact that this guidance will have on the consolidated financial statements. |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | (3) Fair Value Measurements A fair value hierarchy has been established that requires the Company to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table sets forth the financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2016 and June 30, 2016, by level within the fair value hierarchy. The assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. A portion of the Company’s short-term investments have been classified as Level 2, which have been initially valued at the transaction price and subsequently revalued, at the end of each reporting period, utilizing a third party pricing service. The pricing service utilizes industry standard valuation models and observable market inputs to determine value that include surveying the bond dealer community, obtaining benchmark quotes, incorporating relevant trade data, and updating spreads daily. There have been no transfers of assets or liabilities between the fair value measurement classifications. (in millions) Quoted Prices in Markets for Assets Significant Other Observable Inputs Significant Unobservable Inputs September 30 , 201 6 Total (Level 1) (Level 2) (Level 3) Cash equivalents $ 9.4 $ 9.4 $ — $ — Short-term investments available-for-sale 12.4 6.0 6.4 — Total $ 21.8 $ 15.4 $ 6.4 $ — (in millions) Quoted Prices in Active Markets for Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 201 6 Total (Level 1) (Level 2) (Level 3) Cash equivalents $ 1.5 $ 1.5 $ — $ — Short-term investments available-for-sale 19.3 10.0 9.3 — Total $ 20.8 $ 11.5 $ 9.3 $ — Cash equivalents consist primarily of money market funds. Short-term investments consist of U.S. agency securities, certificates of deposit, corporate securities and U.S. Treasury securities, classified as available-for-sale and have maturities greater than 365 days from the date of acquisition. The following table shows the unrealized gains and losses and fair values for those investments as of September 30, 2016 and June 30, 2016 aggregated by major security type: (in millions) Unrealized Unrealized September 30, 2016 At Cost Gains (Losses) At Fair Value Money market funds $ 9.4 $ — $ — $ 9.4 Debt securities of U.S. government agencies 2.0 — — 2.0 U.S. Treasury securities 4.0 — — 4.0 Corporate notes 2.0 — — 2.0 Certificates of deposit 4.4 — — 4.4 Total $ 21.8 $ — $ — $ 21.8 (in millions) Unrealized Unrealized June 30, 201 6 At Cost Gains (Losses) At Fair Value Money market funds $ 1.5 $ — $ — $ 1.5 Debt securities of U.S. government agencies 2.0 — — 2.0 U.S. Treasury securities 7.0 — — 7.0 Corporate notes 2.9 0.1 — 3.0 Certificates of deposit 7.3 — — 7.3 Total $ 20.7 $ 0.1 $ — $ 20.8 As of September 30, 2016, the Company had no investments in an unrealized gain (loss) position. As of June 30, 2016, the Company had investments in an unrealized gain (loss) position below material disclosure thresholds in the table above. The Company has determined that the unrealized gains and losses on these investments are temporary in nature and expects the security to mature at its stated maturity principal. All available-for-sale securities held at September 30, 2016, will mature within a one year period. The fair value of cash, accounts receivable, accounts payable and accrued liabilities approximate their carrying value because of the short-term nature of these financial instruments respectively, at September 30 , 2016 and June 30, 2016 . The fair value of the Company’s short-term note payable, which is measured using Level 2 inputs, approximates book value, at September 30 , 2016 and June 30, 2016. |
Note 4 - Accrued and Other Curr
Note 4 - Accrued and Other Current Liabilities | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | (4) Accrued and Other Current Liabilities Accrued expenses consist of the following (in millions): September 30 , 201 6 June 30, 201 6 Professional fees $ 0.6 $ 0.1 Salary and benefits 0.3 0.6 Research and development expenses 4.6 2.2 Other accrued expenses 0.1 0.7 Total accrued expenses and other liabilities $ 5.6 $ 3.6 |
Note 5 - Liabilities Related to
Note 5 - Liabilities Related to Sale of Future Royalties | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Deferred Revenue Disclosure [Text Block] | ( 5 ) Liabilities Related to Sale of Future Royalties In April 2016, the Company sold certain royalty rights related to the approved product Inavir ® The following table shows the activity within the liability account during the three months ended September 30, 2016: in millions Total Liability related to sale of future royalties, June 30, 2016 $ 18.1 Non-cash royalty revenue paid to HCRP (0.1 ) Non-cash interest expense recognized 0.4 Total Liability related to sale of future royalties, September 30, 2016 $ 18.4 |
Note 6 - Net Loss Per Share
Note 6 - Net Loss Per Share | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (6) Net Loss per share Basic and diluted net loss per share has been computed based on net loss and the weighted-average number of common shares outstanding during the applicable period. For diluted net loss per share, common stock equivalents (shares of common stock issuable upon the exercise of stock options and unvested restricted stock units) are excluded from the calculation as their inclusion would be anti-dilutive. The Company has excluded all anti-dilutive share-based awards to purchase common stock in periods indicating a loss, as their effect is anti-dilutive. The following tables set forth the computation of historical basic and diluted net income (loss) per share. Three Months Ended September 30 , 201 6 201 5 Net income (loss) (in millions) $ (10.0 ) $ (6.6 ) Weighted-average shares outstanding 38,640,487 38,624,227 Dilutive effect of restricted stock and stock options - - Shares used to compute diluted earnings per share 38,640,487 38,624,227 Basic net income (loss) per share $ (0.26 ) $ (0.17 ) Diluted net income (loss) income per share $ (0.26 ) $ (0.17 ) Number of anti-dilutive share-based awards excluded from computation 5,806,900 4,394,607 |
Note 7 - Licenses, Royalty, Col
Note 7 - Licenses, Royalty, Collaborative and Contractual Arrangements | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Collaborative Arrangement Disclosure [Text Block] | (7 ) Licenses, Royalty Collaborative and Contractual Arrangements Royalty agreements The Company entered into a royalty-bearing research and license agreement with GlaxoSmithKline (“GSK”) in 1990 for the development and commercialization of zanamivir, a neuraminidase inhibitor (“NI”) marketed by GSK as Relenza® to treat influenza. Under the terms of the agreement, the Company licensed zanamivir to GSK on an exclusive, worldwide basis and is entitled to receive royalty payments of 7% of GSK's annual net sales of Relenza ® ® ® ® ® The Company also generates royalty revenue from the sale of Inavir ® ® ® On April 22, 2016, the Company entered into a Royalty Interest Acquisition Agreement (“Agreement”) with HCRP. Under the Agreement, HCRP made a $20 million cash payment to the Company in consideration for acquiring from the Sellers certain royalty rights (“Royalty Rights”) related to the approved product Inavir ® The following tables summarize the key components of the Company’s revenues (in millions): Three Months Ended September 30, 2016 2015 (in millions) Royalty revenue – Relenza ® $ 0.1 $ 1.7 Total revenue $ 0.1 $ 1.7 Collaborative and contract arrangements In July 2016, the Company entered into an exclusive, worldwide license for RSV replication inhibitors intellectual property with Georgia State University Research Foundation (“GSURF”) in exchange for an upfront fee, future milestone payments and royalties on future net sales of any products that utilize the underlying RSV intellectual property. The Company has an obligation to make a minimum payment of $10,000 to GSURF annually until the license agreement expires or is terminated. The Company also entered into a two year sponsored research agreement with GSURF for annual sponsored research payments. In connection with the Company’s BTA585 clinical trial, a Clinical Research Organization (“CRO”), engaged by the Company to provide certain services for this trial, notified the Company of its intent to explore additional compensation in an amount up to $1.6 million, due to a previous delay in the trial. The Company is currently reviewing the facts of the notice and due to the early stages of the matter described above, the Company cannot reasonably estimate the possible loss or range of loss, if any, that may result from these matters. As such, the Company is not currently able to estimate the impact of the potential additional expense on its financial position or results of operations. |
Note 8 - Share-based Compensati
Note 8 - Share-based Compensation | 3 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ( 8 ) Share-based Compensation For the three month periods ended September 30, 2016 and 2015, the Company recorded share-based compensation expense related to grants from equity incentive plans of $0.4 million and $0.6 million, respectively. No income tax benefit was recognized in the statements of operations and no share-based compensation expense was capitalized as part of any assets for the three month periods ended September 30, 2016 and 2015. Stock Options The fair value of each stock option award was estimated at its respective date of grant using the Black-Scholes method with the following assumptions: Three Months Ended September 3 0 , 201 6 201 5 Weighted-average risk-free interest rate 1.10 % 1.50 % Dividend yield — — Expected weighted-average volatility .76 .75 Expected weighted-average life of options (years) 6.0 4.0 Weighted-average fair value of options granted $ 0.87 $ 1.35 The risk-free rate interest rate is based on the expected life of the option and the corresponding U.S. Treasury bond, which in most cases is the U.S. five year Treasury bond. The expected term of stock options granted is derived from actual and expected option behavior and represents the period of time that options granted are expected to be outstanding. The Company uses historical data to estimate option exercise patterns and future employee terminations to determine expected life and forfeitures. Expected volatility is based on the historical volatility of the Company’s publicly traded common stock. A summary of the Company’s outstanding stock option activity for the three months ended September 30, 2016 is as follows: Number of Stock Options Weighted Average Exercise Price Per Option Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value($000) (In Years) Outstanding at June 30, 2016 4,751,423 $ 4.07 - Granted 1,310,000 1.33 Exercised — — Forfeited or expired (254,523 ) 2.59 Outstanding at September 30, 2016 5,806,900 $ 3.52 7.4 $ - The total intrinsic value of stock options exercised during the three month period ended September 30, 2016 was zero, and no cash proceeds were received by the Company. Further, no actual tax benefits were realized, as the Company currently records a full valuation allowance for all tax benefits due to uncertainties with respect to its ability to generate sufficient taxable income in the future. The following tables summarize information relating to outstanding and exercisable options as of September 30, 2016: September 30 , 2016 Outstanding Weighted Average Exercisable Exercise Prices Number of Remaining Contractual Life Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price (In Years) $ 1.30 — 1.40 1,514,167 9.82 $ 1.34 9,167 $ 1.37 $ 1.50 — 2.45 1,617,547 8.02 2.26 491,460 2.37 $ 2.47 — 4.07 2,274,000 5.79 3.29 1,587,290 3.61 $ 4.15 — 39.60 401,186 4.89 18.08 308,686 22.02 5,806,900 7.40 $ 3.52 2,396,603 5.72 Restricted Stock Units and Market Stock Units (MSUs). Shares Weighted Balance at June 30, 2016 49,206 $ 4.00 Awarded - - Released - - Forfeited (4,375 ) 4.00 Balance at September 30, 2016 44,831 $ 4.00 As of September 30, 2016 there was $2.9 million of unrecognized share-based compensation expense related to all unvested share-based awards. Unrecognized stock-based compensation expense for equity awards will be adjusted for future changes in estimated forfeitures. This balance is expected to be recognized over a weighted-average period of approximately 2.1 years. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. All material adjustments considered necessary for a fair presentation have been included. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). Except as disclosed herein, there has been no material change in the information disclosed in the notes to the condensed consolidated financial statements included in the Company’s Annual Report on Form 10-K that was filed with the SEC on September 13, 2016. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Operating results for the three months ended September 30, 2016 are not necessarily indicative of those in future quarters or the annual results that may be expected for the Company’s fiscal year ending June 30, 2017. For a more complete discussion of the Company’s significant accounting policies and other information, this report should be read in conjunction with the consolidated financial statements for the fiscal year ended June 30, 2016 included in the Company’s Annual Report on Form 10-K that was filed with the SEC on September 13, 2016. The Company’s significant accounting policies have not changed since June 30, 2016. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards In May 2014, the FASB issued authoritative accounting guidance related to revenue from contracts with customers. This guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2017. Accordingly, the Company will adopt this guidance on July 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this guidance. The Company is evaluating which transition approach to use and its impact, if any, on its consolidated financial statements. In August 2014, the FASB issued authoritative accounting guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. This guidance is effective for annual reporting ending after December 15, 2016, and for annual periods and interim periods thereafter with early application permitted. Accordingly, the standard is effective for the Company on June 30, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued guidance related to financial instruments - overall recognition and measurement of financial assets and financial liabilities. The guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for public companies for interim and annual periods beginning after December 15, 2017. Accordingly, the standard is effective for the Company on July 1, 2018. The Company is currently evaluating the impact that the standard will have on the consolidated financial statements. In February 2016, the FASB issued new guidance on leases. This guidance replaces the prior lease accounting guidance in its entirety. The underlying principle of the new standard is the recognition of lease assets and lease liabilities by lessees for substantially all leases, with an exception for leases with terms of less than twelve months. The standard also requires additional quantitative and qualitative disclosures. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The standard requires a modified retrospective approach, which includes several optional practical expedients. Accordingly, the standard is effective for the Company on July 1, 2019. The Company is currently evaluating the impact that this guidance will have on the consolidated financial statements. |
Note 3 - Fair Value Measureme16
Note 3 - Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | (in millions) Quoted Prices in Markets for Assets Significant Other Observable Inputs Significant Unobservable Inputs September 30 , 201 6 Total (Level 1) (Level 2) (Level 3) Cash equivalents $ 9.4 $ 9.4 $ — $ — Short-term investments available-for-sale 12.4 6.0 6.4 — Total $ 21.8 $ 15.4 $ 6.4 $ — (in millions) Quoted Prices in Active Markets for Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 201 6 Total (Level 1) (Level 2) (Level 3) Cash equivalents $ 1.5 $ 1.5 $ — $ — Short-term investments available-for-sale 19.3 10.0 9.3 — Total $ 20.8 $ 11.5 $ 9.3 $ — |
Unrealized Gain (Loss) on Investments [Table Text Block] | (in millions) Unrealized Unrealized September 30, 2016 At Cost Gains (Losses) At Fair Value Money market funds $ 9.4 $ — $ — $ 9.4 Debt securities of U.S. government agencies 2.0 — — 2.0 U.S. Treasury securities 4.0 — — 4.0 Corporate notes 2.0 — — 2.0 Certificates of deposit 4.4 — — 4.4 Total $ 21.8 $ — $ — $ 21.8 (in millions) Unrealized Unrealized June 30, 201 6 At Cost Gains (Losses) At Fair Value Money market funds $ 1.5 $ — $ — $ 1.5 Debt securities of U.S. government agencies 2.0 — — 2.0 U.S. Treasury securities 7.0 — — 7.0 Corporate notes 2.9 0.1 — 3.0 Certificates of deposit 7.3 — — 7.3 Total $ 20.7 $ 0.1 $ — $ 20.8 |
Note 4 - Accrued and Other Cu17
Note 4 - Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30 , 201 6 June 30, 201 6 Professional fees $ 0.6 $ 0.1 Salary and benefits 0.3 0.6 Research and development expenses 4.6 2.2 Other accrued expenses 0.1 0.7 Total accrued expenses and other liabilities $ 5.6 $ 3.6 |
Note 5 - Liabilities Related 18
Note 5 - Liabilities Related to Sale of Future Royalties (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | in millions Total Liability related to sale of future royalties, June 30, 2016 $ 18.1 Non-cash royalty revenue paid to HCRP (0.1 ) Non-cash interest expense recognized 0.4 Total Liability related to sale of future royalties, September 30, 2016 $ 18.4 |
Note 6 - Net Loss Per Share (Ta
Note 6 - Net Loss Per Share (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30 , 201 6 201 5 Net income (loss) (in millions) $ (10.0 ) $ (6.6 ) Weighted-average shares outstanding 38,640,487 38,624,227 Dilutive effect of restricted stock and stock options - - Shares used to compute diluted earnings per share 38,640,487 38,624,227 Basic net income (loss) per share $ (0.26 ) $ (0.17 ) Diluted net income (loss) income per share $ (0.26 ) $ (0.17 ) Number of anti-dilutive share-based awards excluded from computation 5,806,900 4,394,607 |
Note 7 - Licenses, Royalty, C20
Note 7 - Licenses, Royalty, Collaborative and Contractual Arrangements (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30, 2016 2015 (in millions) Royalty revenue – Relenza ® $ 0.1 $ 1.7 Total revenue $ 0.1 $ 1.7 |
Note 8 - Share-based Compensa21
Note 8 - Share-based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended September 3 0 , 201 6 201 5 Weighted-average risk-free interest rate 1.10 % 1.50 % Dividend yield — — Expected weighted-average volatility .76 .75 Expected weighted-average life of options (years) 6.0 4.0 Weighted-average fair value of options granted $ 0.87 $ 1.35 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Stock Options Weighted Average Exercise Price Per Option Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value($000) (In Years) Outstanding at June 30, 2016 4,751,423 $ 4.07 - Granted 1,310,000 1.33 Exercised — — Forfeited or expired (254,523 ) 2.59 Outstanding at September 30, 2016 5,806,900 $ 3.52 7.4 $ - |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | September 30 , 2016 Outstanding Weighted Average Exercisable Exercise Prices Number of Remaining Contractual Life Weighted Average Exercise Price Number of Stock Options Weighted Average Exercise Price (In Years) $ 1.30 — 1.40 1,514,167 9.82 $ 1.34 9,167 $ 1.37 $ 1.50 — 2.45 1,617,547 8.02 2.26 491,460 2.37 $ 2.47 — 4.07 2,274,000 5.79 3.29 1,587,290 3.61 $ 4.15 — 39.60 401,186 4.89 18.08 308,686 22.02 5,806,900 7.40 $ 3.52 2,396,603 5.72 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Shares Weighted Balance at June 30, 2016 49,206 $ 4.00 Awarded - - Released - - Forfeited (4,375 ) 4.00 Balance at September 30, 2016 44,831 $ 4.00 |
Note 3 - Fair Value Measureme22
Note 3 - Fair Value Measurements (Details Textual) | 3 Months Ended |
Sep. 30, 2016 | |
Available-for-Sale Securities, Maturity Period | 1 year |
Note 3 - Fair Value Measureme23
Note 3 - Fair Value Measurements - Summary of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2015 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for Sale Securities - Current | $ 9.4 | $ 1.5 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for Sale Securities - Current | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for Sale Securities - Current | ||
Money Market Funds [Member] | ||
Available for Sale Securities - Current | 9.4 | 1.5 |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for Sale Securities - Current | 6 | 10 |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for Sale Securities - Current | 6.4 | 9.3 |
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for Sale Securities - Current | ||
Short-term Investments [Member] | ||
Available for Sale Securities - Current | 12.4 | 19.3 |
Fair Value, Inputs, Level 1 [Member] | ||
Total | 15.4 | 11.5 |
Fair Value, Inputs, Level 2 [Member] | ||
Total | 6.4 | 9.3 |
Fair Value, Inputs, Level 3 [Member] | ||
Total | ||
Available for Sale Securities - Current | 21.8 | 20.8 |
Total | $ 21.8 | $ 20.8 |
Note 3 - Fair Value Measureme24
Note 3 - Fair Value Measurements - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2015 |
Money Market Funds [Member] | ||
At Cost | $ 9.4 | $ 1.5 |
Unrealized Gains | ||
Unrealized (Losses) | ||
Fair Value | 9.4 | 1.5 |
US Government Agencies Debt Securities [Member] | ||
At Cost | 2 | 2 |
Unrealized Gains | ||
Unrealized (Losses) | ||
Fair Value | 2 | 2 |
US Treasury Securities [Member] | ||
At Cost | 4 | 7 |
Unrealized Gains | ||
Unrealized (Losses) | ||
Fair Value | 4 | 7 |
Corporate Note Securities [Member] | ||
At Cost | 2 | 2.9 |
Unrealized Gains | 0.1 | |
Unrealized (Losses) | ||
Fair Value | 2 | 3 |
Certificates of Deposit [Member] | ||
At Cost | 4.4 | 7.3 |
Unrealized Gains | ||
Unrealized (Losses) | ||
Fair Value | 4.4 | 7.3 |
At Cost | 21.8 | 20.7 |
Unrealized Gains | 0.1 | |
Unrealized (Losses) | ||
Fair Value | $ 21.8 | $ 20.8 |
Note 4 - Accrued and Other Cu25
Note 4 - Accrued and Other Current Liabilities - Summary of Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 |
Professional fees | $ 0.6 | $ 0.1 |
Salary and benefits | 0.3 | 0.6 |
Research and development expenses | 4.6 | 2.2 |
Other accrued expenses | 0.1 | 0.7 |
Total accrued expenses and other liabilities | $ 5.6 | $ 3.6 |
Note 5 - Liabilities Related 26
Note 5 - Liabilities Related to Sale of Future Royalties (Details Textual) $ in Millions | 1 Months Ended |
Apr. 30, 2016USD ($) | |
HealthCare Royalty Partners III, L.P. [Member] | Royalty Arrangement [Member] | |
Deferred Revenue, Additions | $ 20 |
Note 5 - Liabilities Related 27
Note 5 - Liabilities Related to Sale of Future Royalties - Deferred Revenue Activity (Details) - Royalty Arrangement [Member] - HealthCare Royalty Partners III, L.P. [Member] $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Total Liability related to sale of future royalties, June 30, 2016 | $ 18.1 |
Non-cash royalty revenue paid to HCRP | (0.1) |
Non-cash interest expense recognized | 0.4 |
Total Liability related to sale of future royalties, September 30, 2016 | $ 18.4 |
Note 6 - Net Loss Per Share - C
Note 6 - Net Loss Per Share - Computation of Historical Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net loss | $ (10) | $ (6.6) |
Weighted-average shares outstanding (in shares) | 38,640,487 | 38,624,227 |
Shares used to compute diluted earnings per share (in shares) | 38,640,487 | 38,624,227 |
Basic net income (loss) per share (in dollars per share) | $ (0.26) | $ (0.17) |
Diluted net income (loss) income per share (in dollars per share) | $ (0.26) | $ (0.17) |
Number of anti-dilutive share-based awards excluded from computation (in shares) | 5,806,900 | 4,394,607 |
Note 7 - Licenses, Royalty, C29
Note 7 - Licenses, Royalty, Collaborative and Contractual Arrangements (Details Textual) - USD ($) | Apr. 22, 2016 | Sep. 30, 2016 |
United States, Europe, Japan, And Other Countries [Member] | GSK [Member] | ||
Royalty Payment Percentage | 7.00% | |
Australia, New Zealand, South Africa, and Indonesia [Member] | GSK [Member] | ||
Royalty Payment Percentage | 10.00% | |
Japan [Member] | Daiichi Sankyo [Member] | ||
Royalty Payment Percentage | 4.00% | |
HealthCare Royalty Partners III, L.P. [Member] | ||
Proceeds From Sale of Royalty Rights, Gross | $ 20,000,000 | |
Georgia State University Research Foundation (GSURF) [Member] | ||
Collaborative Arrangement, Annual Minimum Payment | $ 10,000 | |
Collaborative Agreement, Number of Years of Sponsored Research Agreement | 2 years | |
Clinical Research Organization [Member] | ||
Collaborative Arrangement, Potential Additional Compensation | $ 1,600,000 |
Note 7 - Licenses, Royalty, C30
Note 7 - Licenses, Royalty, Collaborative and Contractual Arrangements - Components of Revenues from Royalties, Collaborative and Contractual Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Relenza [Member] | ||
Royalty revenue and milestones | $ 0.1 | $ 1.7 |
Royalty revenue and milestones | 0.1 | 1.7 |
Total revenue | $ 0.1 | $ 1.7 |
Note 8 - Share-based Compensa31
Note 8 - Share-based Compensation (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
The 2007 Omnibus Equity and Incentive Plan [Member] | ||
Allocated Share-based Compensation Expense | $ 400,000 | $ 600,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | 0 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 0 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,900,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 36 days |
Note 8 - Share-based Compensa32
Note 8 - Share-based Compensation - Fair Value Assumptions (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Weighted-average risk-free interest rate | 1.10% | 1.50% |
Dividend yield | ||
Expected weighted-average volatility | 0.76% | 0.75% |
Expected weighted-average life of options (years) | 6 years | 4 years |
Weighted-average fair value of options granted (in dollars per share) | $ 0.87 | $ 1.35 |
Note 8 - Share-based Compensa33
Note 8 - Share-based Compensation - Stock Option Activity (Details) | 3 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Outstanding (in shares) | shares | 4,751,423 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 4.07 |
Granted (in shares) | shares | 1,310,000 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 1.33 |
Exercised (in shares) | shares | |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | |
Forfeited or expired (in shares) | shares | (254,523) |
Forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares | $ 2.59 |
Outstanding (in shares) | shares | 5,806,900 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 3.52 |
Outstanding, weighted-average remaining contractual term | 7 years 146 days |
Note 8 - Share-based Compensa34
Note 8 - Share-based Compensation - Exercise Price Range Relating to Outstanding and Exercisable Options (Details) | 3 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Range One [Member] | |
Exercise price range, lower limit (in dollars per share) | $ 1.30 |
Exercise price range, upper limit (in dollars per share) | $ 1.40 |
Outstanding Weighted Average Number of Stock Options (in shares) | shares | 1,514,167 |
Outstanding Weighted Average Remaining Contractual Life | 9 years 299 days |
Weighted Average Exercise Price (in dollars per share) | $ 1.34 |
Exercisable Number of Stock Options (in shares) | shares | 9,167 |
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 1.37 |
Range Two [Member] | |
Exercise price range, lower limit (in dollars per share) | 1.50 |
Exercise price range, upper limit (in dollars per share) | $ 2.45 |
Outstanding Weighted Average Number of Stock Options (in shares) | shares | 1,617,547 |
Outstanding Weighted Average Remaining Contractual Life | 8 years 7 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.26 |
Exercisable Number of Stock Options (in shares) | shares | 491,460 |
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 2.37 |
Range Three [Member] | |
Exercise price range, lower limit (in dollars per share) | 2.47 |
Exercise price range, upper limit (in dollars per share) | $ 4.07 |
Outstanding Weighted Average Number of Stock Options (in shares) | shares | 2,274,000 |
Outstanding Weighted Average Remaining Contractual Life | 5 years 288 days |
Weighted Average Exercise Price (in dollars per share) | $ 3.29 |
Exercisable Number of Stock Options (in shares) | shares | 1,587,290 |
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 3.61 |
Range Four [Member] | |
Exercise price range, lower limit (in dollars per share) | 4.15 |
Exercise price range, upper limit (in dollars per share) | $ 39.60 |
Outstanding Weighted Average Number of Stock Options (in shares) | shares | 401,186 |
Outstanding Weighted Average Remaining Contractual Life | 4 years 324 days |
Weighted Average Exercise Price (in dollars per share) | $ 18.08 |
Exercisable Number of Stock Options (in shares) | shares | 308,686 |
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 22.02 |
Note 8 - Share-based Compensa35
Note 8 - Share-based Compensation - Summary of Restricted Stock Units and MSU Activity (Details) - Restricted Stock and Market Stock Units [Member] | 3 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Balance (in shares) | 49,206 |
Balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 4 |
Awarded (in shares) | |
Released (in shares) | |
Forfeited (in shares) | (4,375) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 4 |
Balance (in shares) | 44,831 |
Balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 4 |