Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 12, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | INSV | ||
Entity Registrant Name | INSITE VISION INC | ||
Entity Central Index Key | 802724 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 131,951,033 | ||
Entity Public Float | $12,932,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,656 | $3,251 |
Short-term investments | 0 | 5,000 |
Accounts receivable | 349 | 1,026 |
Other receivables | 1,114 | |
Prepaid expenses and other current assets | 36 | 95 |
Debt issuance costs, net | 1,267 | 2,248 |
Total current assets | 3,308 | 12,734 |
Property and equipment, net | 1,597 | 1,431 |
Total assets | 4,905 | 14,165 |
Current liabilities: | ||
Accounts payable | 611 | 394 |
Accrued liabilities | 660 | 2,184 |
Accrued compensation and related expense | 1,655 | 1,090 |
Accrued royalties | 892 | 776 |
Accrued interest | 85 | 826 |
Lease incentive, current | 186 | 154 |
Secured notes payable | 5,199 | 41,281 |
Warrant liability | 1,191 | 1,685 |
Total current liabilities | 10,479 | 48,390 |
Deferred revenues | 1,000 | 7 |
Lease incentive | 928 | 922 |
Total liabilities | 12,407 | 49,319 |
Commitments and contingencies (Note 9) | ||
Stockholders' deficit: | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value, 240,000,000 shares authorized; 131,951,033 shares issued and outstanding at December 31, 2014 and 2013 | 1,320 | 1,320 |
Additional paid-in capital | 166,440 | 165,549 |
Accumulated deficit | -175,262 | -202,023 |
Total stockholders' deficit | -7,502 | -35,154 |
Total liabilities and stockholders' deficit | $4,905 | $14,165 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 131,951,033 | 131,951,033 |
Common stock, shares outstanding | 131,951,033 | 131,951,033 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Royalties | $2,005 | $14,787 | $21,641 |
Sale of royalty rights, net | 15,490 | ||
Licensing fee | 6,000 | ||
Other product and service revenues | 209 | 545 | |
Total revenues | 8,214 | 30,822 | 21,641 |
Expenses: | |||
Research and development | 9,134 | 11,578 | 15,479 |
General and administrative | 5,721 | 5,754 | 5,781 |
Cost of revenues, principally royalties to third parties | 578 | 385 | 1,062 |
Total expenses | 15,433 | 17,717 | 22,322 |
Income (loss) from operations | -7,219 | 13,105 | -681 |
Gain on extinguishment of debt | 35,999 | ||
Interest expense and other, net | -3,516 | -7,896 | -9,494 |
Change in fair value of warrant liability | 1,497 | 572 | 1,898 |
Net income (loss) | $26,761 | $5,781 | ($8,277) |
Net income (loss) per share: | |||
Income (loss) per share-basic | $0.20 | $0.04 | ($0.06) |
Income (loss) per share-diluted | $0.20 | $0.04 | ($0.06) |
Weighted average shares used in per share calculation: | |||
-Basic | 131,951 | 131,951 | 131,951 |
-Diluted | 132,385 | 132,433 | 131,951 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Deficit (USD $) | Total | Common Stock [Member] | Additional Paid-in-Capital [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data | ||||
Beginning balance at Dec. 31, 2011 | ($34,539) | $1,320 | $163,668 | ($199,527) |
Beginning balance (in shares) at Dec. 31, 2011 | 131,951,033 | |||
Stock-based compensation | 947 | 947 | ||
Net income (loss) | -8,277 | -8,277 | ||
Ending balance at Dec. 31, 2012 | -41,869 | 1,320 | 164,615 | -207,804 |
Ending balance (in shares) at Dec. 31, 2012 | 131,951,033 | |||
Stock-based compensation | 934 | 934 | ||
Net income (loss) | 5,781 | 5,781 | ||
Ending balance at Dec. 31, 2013 | -35,154 | 1,320 | 165,549 | -202,023 |
Ending balance (in shares) at Dec. 31, 2013 | 131,951,033 | |||
Stock-based compensation | 891 | 891 | ||
Net income (loss) | 26,761 | 26,761 | ||
Ending balance at Dec. 31, 2014 | ($7,502) | $1,320 | $166,440 | ($175,262) |
Ending balance (in shares) at Dec. 31, 2014 | 131,951,033 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||
Net income (loss) | $26,761 | $5,781 | ($8,277) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 335 | 107 | 95 |
Amortization of debt issuance costs | 405 | 418 | 419 |
Amortization of lease incentive | -186 | ||
Gain on extinguishment of debt | -35,999 | ||
Stock-based compensation | 891 | 934 | 947 |
Change in fair value of warrant liability | -1,497 | -572 | -1,898 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 677 | 4,224 | -2,686 |
Other receivables | 1,114 | -1,114 | |
Prepaid expenses and other current assets | 59 | 49 | -132 |
Accounts payable | 169 | -283 | -26 |
Accrued liabilities | -1,524 | 656 | 1,124 |
Accrued compensation and related expense | 565 | -44 | 156 |
Accrued royalties | 116 | -328 | 140 |
Accrued interest | 2,088 | -212 | -133 |
Deferred revenues | 993 | ||
Net cash provided by (used in) operating activities | -5,033 | 9,616 | -10,271 |
INVESTING ACTIVITIES: | |||
Purchase of property and equipment, net | -277 | -85 | -127 |
Decrease in short-term investments | 5,000 | 2,999 | 16,496 |
Net cash provided by investing activities | 4,723 | 2,914 | 16,369 |
FINANCING ACTIVITIES: | |||
Proceeds from secured notes payable, net of issuance costs | 4,715 | ||
Payment of secured notes payable | -6,000 | -10,602 | -6,675 |
Net cash used in financing activities | -1,285 | -10,602 | -6,675 |
Net increase (decrease) in cash and cash equivalents | -1,595 | 1,928 | -577 |
Cash and cash equivalents at beginning of year | 3,251 | 1,323 | 1,900 |
Cash and cash equivalents at end of year | 1,656 | 3,251 | 1,323 |
Supplemental disclosure of cash flow information: | |||
Interest received | 1 | 5 | 17 |
Interest paid | 1,335 | 7,694 | 9,224 |
Income taxes received | 22 | ||
Income taxes paid | 1 | 110 | 1 |
Non-cash investing activities-Lease incentives | 224 | 1,076 | |
Non-cash financing activities-Debt extinguishment | 36,047 | ||
Non-cash financing activities-Warrant issuance | $1,003 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Business and Summary of Significant Accounting Policies | 1. Business and Summary of Significant Accounting Policies | ||||||||||||
InSite Vision Incorporated (“InSite,” the “Company,” “we,” or “our”) is an ophthalmic product development company advancing ophthalmic pharmaceutical products to address unmet eye care needs. The Company’s current portfolio of products is based on its proprietary DuraSite® drug delivery technology. The Company’s DuraSite sustained drug delivery technology is a proven synthetic polymer-based formulation designed to extend the residence time of a drug relative to conventional topical therapies. It enables topical delivery of a drug as a solution, gel or suspension and can be customized for delivering a wide variety of drug candidates. | |||||||||||||
DuraSite® 2 is the Company’s next-generation enhanced drug delivery system, which is designed to provide a broad platform for developing superior ophthalmic therapeutics. DuraSite 2 is based on the original DuraSite technology, and incorporates a cationic polymer to achieve sustained and enhanced ocular delivery of drugs. The Company plans to focus its research and development and commercial support efforts on topical products formulated with the DuraSite 2 drug delivery technology. | |||||||||||||
Historically, the Company has incurred substantial cumulative losses and negative cash flows from operations. Clinical trials and costs to prepare a New Drug Application (“NDA”) for the Company’s product candidates with the U.S. Food and Drug Administration (“FDA”) are very expensive and difficult, in part because they are subject to rigorous regulatory requirements. As of December 31, 2014, the Company’s accumulated deficit was $175.3 million and its cash and cash equivalents were $1.7 million. Further, the Company anticipates that its existing cash and cash equivalent balances, together with cash flows from operations, and the net proceeds from existing debt financing arrangements (See Note 8, “Secured Notes Payable” for further discussion) will only be adequate to fund its cash requirements through May 2015. Management’s plans include exploring strategic alternatives or raising additional financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects relating to the recoverability and classification of the recorded asset amounts or amounts and classification of liabilities that might result from the outcome of this uncertainty. | |||||||||||||
Principles of Consolidation. The consolidated financial statements include the accounts of InSite Vision Incorporated as well as its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. | |||||||||||||
Industry Segment and Geographic Information. The Company operates in one segment and is focused on developing drugs and drug delivery systems principally for ophthalmic indications. The Company had limited foreign-based operations for the years ended December 31, 2014, 2013 and 2012. All long-lived assets are located in the United States. | |||||||||||||
Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |||||||||||||
Reclassifications. Certain amounts in prior years’ financial statements have been reclassified to conform to the current presentation. These reclassifications had no impact on previously reported results of operations or stockholders’ deficit. | |||||||||||||
Cash and cash equivalents. The Company considers all highly liquid investments with maturities of 90 days or less from the date of purchase to be cash equivalents. | |||||||||||||
Short-term investments. The Company considers all investments with original maturities of 12 months or less from the date of purchase to be short-term investments. They are classified as trading securities principally bought and held for the purpose of selling them in the near term, with unrealized gains and losses included in earnings. | |||||||||||||
Property and Equipment. Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is provided over the estimated useful lives of the respective assets, which range from three to five years, using the straight-line method. Leasehold improvements and property acquired under capital leases are amortized over the lives of the related leases or their estimated useful lives, whichever is shorter, using the straight-line method. Depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 was $335,000, $107,000 and $95,000, respectively. The costs of repairs and maintenance are expensed as incurred. | |||||||||||||
Impairment of Long-Lived Assets. The Company periodically assesses the recoverability of its long-lived assets for which an indicator of impairment exists by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If the Company concludes that the carrying value will not be recovered, the Company measures the amount of such impairment by comparing the fair value to the carrying value. For the years ended December 31, 2014, 2013 and 2012, no impairment of property and equipment was recorded. | |||||||||||||
Patents. As a result of the Company’s research and development efforts, the Company has obtained, or is applying for, a number of patents to protect proprietary technology and inventions. All costs associated with patents for product candidates under development are expensed as incurred. As of December 31, 2014 and 2013, the Company had no capitalized patent costs. | |||||||||||||
Debt Issuance Costs. Debt issuance costs paid to third parties are capitalized and amortized over the life of the underlying debt, using the effective interest method. Amortization of debt issuance costs for the years ended December 31, 2014, 2013 and 2012 were $405,000, $418,000 and $419,000, respectively, and are included in interest expense and other, net in the Consolidated Statements of Operations. See Note 8, “Secured Notes Payable” for further discussion of the underlying debt. | |||||||||||||
Warrant Liability. The Company issued warrants to purchase shares of the Company’s common stock in connection with a private placement equity financing transaction in July 2011 and private placement debt financing transactions in the fourth quarter of 2014. The Company accounted for these warrants as a liability measured at fair value due to a provision included in the warrant agreements that provides the warrant holders with an option to require the Company (or its successor) to purchase their warrants for cash in the event of a “Fundamental Transaction” (as defined in the warrant agreements). The actual amount of cash required if the option is exercised would be determined using the Black-Scholes Option Pricing Model (the “Black-Scholes Model”) as determined in accordance with the terms of the warrant agreements. The fair value of the warrant liability is estimated using the Black-Scholes Model, which requires inputs such as the remaining term of the warrants, share price volatility and risk-free interest rate. These assumptions are reviewed on a monthly basis and changes in the estimated fair value of the outstanding warrants are recognized each reporting period in the Consolidated Statements of Operations under “Change in fair value of warrant liability.” | |||||||||||||
Fair Value Measurements. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2: | Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, 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: | Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | ||||||||||||
As of December 31, 2014 and 2013, less than $0.1 million and $8.2 million, respectively, of the Company’s cash, cash equivalents and short-term investments consisted of Level 1 Treasury-backed government securities or money market funds that are measured at fair value on a recurring basis. | |||||||||||||
The Company’s financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable, other receivables, accounts payable, accrued liabilities and debt obligations. Accounts receivable, other receivables, and accounts payable are reflected in the accompanying consolidated financial statements at cost, which approximates fair value due to the short-term nature of these instruments. While the Company believes its valuation methodologies are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. | |||||||||||||
As discussed above, the fair value of the warrant liability, determined using Level 3 criteria, was initially recorded on the grant date and remeasured at December 31, 2014 and 2013 using the Black-Scholes Model, which requires inputs such as the remaining term of the warrants, share price volatility and risk-free interest rate. These inputs are subjective and generally require significant analysis and judgment to develop. | |||||||||||||
The fair value of the warrant liability was estimated using the following weighted-average assumptions, as determined in accordance with the terms of the warrant agreements, at December 31, 2014 and 2013: | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Risk-free interest rate | 0.9 | % | 0.8 | % | |||||||||
Remaining term (years) | 2.4 | 2.5 | |||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||
Volatility | 101.2 | % | 100 | % | |||||||||
The expected dividend yield is set at zero because the Company has never paid cash dividends and has no present intention to pay cash dividends. Per the terms of the warrant agreements, expected volatility is based on the historical volatility of the Company’s common stock and is equal to the greater of 100% or the 30-day volatility rate. The risk-free interest rates are taken from the Daily Federal Yield Curve Rates as published by the Federal Reserve and represent the yields on actively-traded U.S. Treasury securities for a term equal to the remaining term of the warrants. | |||||||||||||
The following table provides a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the year ended December 31, 2014 and 2013 (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Beginning balance | $ | 1,685 | $ | 2,257 | |||||||||
Initial fair value of warrants as of issuance | 1,003 | — | |||||||||||
Net decrease in fair value of warrant liability on remeasurement | (1,497 | ) | (572 | ) | |||||||||
Ending balance | $ | 1,191 | $ | 1,685 | |||||||||
The initial value of the warrants issued in 2014 were recorded as “Debt issuance costs, net” in the Consolidated Balance Sheets. The net decrease in the estimated fair value of the warrant liability was recognized as income under “Change in fair value of warrant liability” in the Consolidated Statements of Operations. | |||||||||||||
Revenue Recognition. The Company recognizes revenue when four basic criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the fee is fixed or determinable; and collectability is reasonably assured. The Company has arrangements with multiple revenue-generating elements. The Company analyzes its multiple element arrangements to determine whether the elements can be separated and accounted for individually as separate units of accounting. An item can generally be considered a separate unit of accounting if both of the following criteria are met: (i) the delivered item(s) has value to the customer on a stand-alone basis and (ii) the arrangement includes a general right of return and delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. Items that cannot be divided into separate units are combined with other units of accounting, as appropriate. Consideration received is allocated among the separate units based on the unit’s selling price and is recognized in full when the criteria are met. The Company deems service to be rendered if no continuing obligation exists on the part of the Company. | |||||||||||||
The Company’s revenues are primarily derived from royalties on product sales and licensing agreements, and such agreements may provide for various types of payments, including upfront payments, research funding and related fees during the terms of the agreements, milestone payments based on the achievement of established development objectives and licensing fees. | |||||||||||||
The Company receives royalties from licensees based on third-party sales. The royalties are recorded as earned in accordance with the contract terms when third-party results are reliably measured and collectability is reasonably assured. | |||||||||||||
Revenues associated with non-refundable up-front license fees under arrangements where the license fees cannot be accounted for as separate units of accounting are deferred and recognized as revenues on a straight-line basis over the expected term of the Company’s continued involvement. Revenues from the achievement of milestones are recognized as revenues when the milestones are achieved and the milestone payments are due and collectible. | |||||||||||||
The Company allocates revenue in multiple-deliverable revenue arrangements using estimated selling prices of the delivered goods and services based on the relative selling price method. | |||||||||||||
Research and Development Expenses. Research and development expenses include salaries, benefits, facility costs, services provided by outside consultants and contractors, administrative costs and materials for the Company’s research and development activities. The Company expenses these research and development activities as they are incurred. | |||||||||||||
The Company accrues and expenses the costs for clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with contract research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to progress or stage of completion of trials or services and the agreed upon fee to be paid for such services. Costs of setting up clinical trial sites for participation in the trials are expensed immediately as research and development expenses. Clinical trial site costs related to patient enrollment are accrued as patients are entered into the trial. | |||||||||||||
General and Administrative Expenses. General and administrative expenses include salaries, benefits, facility costs, services provided by outside consultants and contractors, legal services, advertising and marketing, investor relations, financial reporting, materials and other expenses related to general corporate and sales and marketing activities. The Company recognizes such costs as they are incurred. | |||||||||||||
Cost of Revenues. The Company recognizes royalties to third parties and the cost of inventory shipped related to the sale of the Company’s products when they are incurred. | |||||||||||||
Stock-Based Compensation. The Company’s stock-based compensation programs consist of stock options granted to employees as well as our employee stock purchase plan, based on the grant date fair value of those awards. | |||||||||||||
The grant date fair value of the award is recognized as expense over the requisite service period. The Company uses the Black-Sholes option pricing model to compute the estimated fair value of stock option awards. Using this model, fair value is calculated based on assumptions with respect to: expected volatility of our common stock price: the periods of time over which employees and members of our board are expected to hold their options prior to exercise; expected dividend yield on our common stock; and risk-free interest rates. Stock-based compensation expense also includes an estimate, which is made at the time of grant, of the number of awards that are expected to be forfeited. The estimate is revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
See Note 12, “Stock-Based Compensation” for further discussion of employee stock-based compensation. | |||||||||||||
The Company occasionally issues stock options and warrants to consultants of the Company in exchange for services. The Company has valued these options and warrants using the Black-Scholes option pricing model, at each reporting period and has recorded charges to operations over the vesting periods of the individual stock options or warrants. Such charges amounted to approximately $1,000, $8,000 and $56,000 during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Net Income (Loss) per Share. Basic net income (loss) per share has been computed using the weighted-average number of common shares outstanding during the period. Dilutive net income (loss) per share is computed using the sum of the weighted-average number of common shares outstanding and the potential number of dilutive common shares outstanding during the period. Potential common shares consist of the shares issuable upon exercise of stock options and warrants. Potentially dilutive securities have been excluded from the computation of diluted net income (loss) per share in 2014, 2013 and 2012 as their inclusion would be anti-dilutive. | |||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share: | |||||||||||||
Year Ended December 31, | |||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | 26,761 | $ | 5,781 | $ | (8,277 | ) | ||||||
Denominator: | |||||||||||||
Weighted-average shares outstanding | 131,951 | 131,951 | 131,951 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 434 | 482 | — | ||||||||||
Weighted-average shares outstanding for diluted loss | 132,385 | 132,433 | 131,951 | ||||||||||
Net income (loss) per share: | |||||||||||||
Basic | $ | 0.2 | $ | 0.04 | $ | (0.06 | ) | ||||||
Diluted | $ | 0.2 | $ | 0.04 | $ | (0.06 | ) | ||||||
For the year ended December 31, 2012, due to the loss applicable to common stockholders, loss per share is based on the weighted average number of common shares only, as the effect of including equivalent shares from stock options and warrants would be anti-dilutive. At December 31, 2014, 2013 and 2012, 40,179,706, 31,407,604 and 28,156,898 options and warrants, respectively, were excluded from the calculation of diluted earnings per share because the effect was anti-dilutive. | |||||||||||||
Comprehensive Income (Loss). Comprehensive income (loss) is the change in equity from transactions and other events and circumstances other than those resulting from investments by owners and distributions to owners. The consolidated comprehensive income (loss) for the Company was equal to the net income (loss) attributable to the Company for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
Key Suppliers. The Company is dependent on single or limited source suppliers for certain materials used in its research and development and commercial activities. The Company has generally been able to obtain adequate supplies of these components. However, an extended interruption in the supply of these components currently obtained from single or limited source suppliers could adversely affect the Company’s research and development and commercial efforts. | |||||||||||||
Income Taxes. The Company accounts for income taxes under the liability method; under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. | |||||||||||||
The Company utilizes a two-step approach to recognize and measure uncertain tax positions, if any. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. | |||||||||||||
Significant Customers and Risk. All revenues recognized and/or deferred were primarily from AzaSite licensees. The Company is entitled to receive royalty revenues from net sales of AzaSite under the terms of its agreement with Inspire. Inspire was acquired by Merck in May 2011 and subsequently acquired by Akorn in November 2013. Accordingly, all trade receivables are concentrated with these parties during the years ended December 31, 2014, 2013 and 2012. Under the terms of the license with Inspire, Inspire, through its applicable parent company, has significant influence over the commercial success of AzaSite. Revenues from Akorn/Merck represented approximately 98%, 48% and 90% of total revenues for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, in April 2013, the Company sold its rights to receive royalty payments relating to sales of Besivance and the amounts received in this sale represented 50% of the Company’s revenues for the year ended December 31, 2013. | |||||||||||||
Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and short-term investments. The Company’s cash, cash equivalents and short-term investments are primarily deposited in demand accounts with two financial institutions. | |||||||||||||
Risks from Third Party Manufacturing Concentration. The Company relies on a single source manufacturer for each of its product candidates and on a single source manufacturer for the active pharmaceutical ingredient in its product candidates. Accordingly, delays in the manufacture of the Company’s product candidates or the active pharmaceutical ingredients could adversely impact the development of the Company’s product candidates. Furthermore, the Company has no control over the manufacture and the overall product supply chain of products for which it is entitled to receive revenue. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. The FASB and the International Accounting Standards Board (“IASB”) initiated a joint project to clarify the principles for recognizing revenue and developed a common revenue recognition standard for U.S. generally accepted accounting principles (“GAAP’) and International Financial Reporting Standards (“IFRS”). Under the guidance, an entity should recognize revenue when the entity satisfies a performance obligation within a contract at a determined transaction price. This update is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company does not expect that the adoption of this standard will materially impact the Company’s consolidated statement of financial position or results of operations. | |||||||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements – Going Concern. This standard includes guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the financial statements are issued. If conditions or events raise substantial doubt, the entity must disclose the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of those conditions or events, and management’s plans to mitigate the conditions or events. This update is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect that the adoption of this standard will materially impact the Company’s consolidated statement of financial position or results of operations. |
License_Agreements
License Agreements | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
License Agreements | 2. License Agreements |
In December 2003, the Company completed the sale of its drug candidate for the treatment of ocular infections to Bausch & Lomb Incorporated (“Bausch & Lomb”), wholly-owned by Valeant Pharmaceuticals International, Inc. (“Valeant”) as of August 2013, pursuant to a Purchase Agreement and a License Agreement. Accordingly, Besivance was developed by Bausch & Lomb. In May 2009, the United States Food and Drug Administration (“FDA”) approved Besivance to treat bacterial conjunctivitis (pink eye). Besivance was launched in the United States by Bausch & Lomb in the last half of 2009. In 2011, Besivance was launched internationally in select countries. During the years ended December 31, 2012, the Company recognized $2,126,000 of royalties related to net sales of Besivance by Bausch & Lomb. In April 2013, the Company sold the rights to receive royalty payments on sales of Besivance, beginning on January 1, 2013, for $15 million at closing, with an additional $1 million paid in February 2014 after certain 2013 Besivance sales targets were met. $0.5 million of Besivance royalties previously recorded in 2013 were netted against the sales price. Under the terms of the agreement, if the purchasers receive specified levels of total cash from the Besivance royalty, the royalty would be returned to the Company in whole or in part. Patent protection for Besivance in the United States expires in 2021. | |
On February 15, 2007, the Company entered into a license agreement for AzaSite® (the “Akorn License”) with Inspire Pharmaceuticals, Inc. (“Inspire”). In May 2011, Merck & Co. (“Merck”) acquired Inspire and Inspire became a wholly-owned subsidiary of Merck. In November 2013, Akorn, Inc. (“Akorn”) acquired Inspire from Merck and Inspire became a wholly-owned subsidiary of Akorn. Under the Akorn License, the Company licensed to Inspire exclusive development and commercialization rights in the United States and Canada for topical anti-infective products containing azithromycin as the sole active ingredient for human ocular or ophthalmic indications. The Company also granted Inspire an exclusive sublicense under the Pfizer patent rights the Company has licensed under the Pfizer License discussed below. Inspire has the right to grant sublicenses under the terms of the Akorn License. | |
Akorn, due to its acquisition of Inspire, pays the Company a royalty on net sales of AzaSite in the United States and Canada. Prior to the June 2014 amendment discussed below, the royalty rate was 25% of net sales of AzaSite in North America. Akorn is obligated to pay the Company royalties under the Akorn License for the longer of (i) eleven years from the launch of the first product or (ii) the period during which a valid claim under a patent exists. Until September 30, 2013, Merck paid the Company certain minimum royalties. The royalties are subject to certain reductions in the event of patent invalidity, generic competition, uncured material breach under the Akorn License or in the event that Akorn is required to pay license fees to third parties for the continued use of AzaSite. Akorn may also terminate the Akorn License at any time upon 6 months’ notice. | |
The Company also entered into a supply agreement (the “Supply Agreement”) with Inspire on February 15, 2007 for the active pharmaceutical ingredient azithromycin. The Company had previously entered into a third-party supply agreement for the production of this active ingredient. The Supply Agreement was terminated in July 2012. | |
On August 9, 2012, the Company and Merck amended the payment terms of the Akorn License. Under the amended terms, on a quarterly basis, Merck paid the Company the higher of the pro-rata annual minimum royalty or the earned royalty for 2012 and 2013. In addition, in August 2012, Merck paid the Company a $7.3 million catch-up payment for the difference between the earned royalties already paid for the fourth quarter of 2011 and the first and second quarters of 2012, and the pro-rata annual minimum royalties for those quarters. For the fiscal years ended September 30, 2013, 2012 and 2011, the measurement period pursuant to the terms of the Akorn License, the Company received $19 million, $17 million and $15 million, respectively, in minimum royalties from Merck. The obligation to make minimum royalty payments terminated in September 2013 and Akorn’s obligation to pay earned royalties may be suspended upon the occurrence of certain events, such as a requirement by the FDA or other governmental agency to suspend the marketing of AzaSite or withdraw it from the market in the United States. | |
On June 20, 2013, the Company and Merck entered into an amendment to the Akorn License. The amendment granted back to the Company, the right to develop and commercialize AzaSite Xtra™ in the United States and Canada. The amendment also granted Akorn the exclusive option, but not the obligation, to re-acquire the exclusive right to develop and commercialize AzaSite Xtra in the United States and Canada. The option can be exercised during the period commencing on the effective date of the amendment and ending on the date that is ten (10) business days following the first regulatory approval of AzaSite Xtra in the United States, unless the Akorn License is earlier terminated or has expired in accordance with its terms. Upon exercise of the option, Akorn is required to pay the Company a one-time payment. In addition, in the event that Akorn exercises the option, Akorn will be obligated to pay the Company royalties on net sales of AzaSite Xtra. | |
On June 10, 2014, the Company entered into an amendment to the Akorn License (the “Amendment”). Under the Amendment, Akorn paid the Company an amendment fee of $6.0 million in return for a lower royalty on net sales of AzaSite in North America. The $6.0 million was used by the Company to repurchase and cancel the AzaSite Notes (see Note 8, “Secured Notes Payable” for further discussion). Pursuant to the Amendment, effective April 1, 2014, for annual net sales of AzaSite, the royalty is (1) 8.0% on net sales less than $20.0 million, subject to increase to 9.0% in the event that Akorn enters into certain settlements with third parties seeking to launch generic versions of AzaSite, (2) 12.5% on net sales greater than or equal to $20.0 million and less than or equal to $50.0 million and (3) 15.0% on net sales in excess of $50.0 million. For annual net sales of AzaSite Xtra, the royalty would be 12.5% on net sales less than $30.0 million and 15.0% on net sales greater than or equal to $30.0 million. The Company waived any right to consent to any settlements regarding AzaSite (see Note 13, “Legal Proceedings” for further discussion) and agreed to cooperate to effectuate any such settlement. | |
The Amendment further provides that in the event AzaSite Xtra has received regulatory approval and has been commercially launched by Akorn, as to any calendar quarter, Akorn would not be obligated to pay any royalties as to a licensed product in a given country where sales of a generic equivalent of such licensed product occur in such country. Akorn may, at Akorn’s expense, act to acquire and maintain on the Company’s behalf, registrations for certain Company trademarks in North America. In addition, Akorn may, but is not obligated to, pay any maintenance or other fees related to the maintenance of certain patents licensed by the Company to Akorn in the event the Company fails to pay any such fee. | |
During the years ended December 31, 2014, 2013 and 2012, the Company recognized $2.0 million, $14.3 million and $19.5 million, respectively, of royalties related to the Akorn License. During the years ended December 31, 2014 and 2013, the Company recognized $0.1 million and $0.5 million, respectively, of revenue from Akorn for manufacturing equipment rental and the sale of the active ingredient, azithromycin. | |
On February 15, 2007, the Company entered into a worldwide, exclusive, royalty-bearing license agreement with Pfizer Inc. (“Pfizer”) under Pfizer’s patent family titled “Method of Treating Eye Infections with Azithromycin” for ocular anti-infective product candidates known as AzaSite and AzaSite Plus (the “Pfizer License”). Under the Pfizer License, the Company is required to pay Pfizer a low single digit royalty based on net sales of the licensed products and to use reasonable commercial efforts to seek regulatory approval for and market licensed products. The Pfizer License provides the Company the right to grant sublicenses thereunder, subject to Pfizer’s prior approval, which approval shall not be unreasonably withheld. Pfizer approved the sublicense granted to Akorn, and previously to Merck prior to November 2013. Based on the royalty reports provided by Merck and Akorn, for the years ended December 31, 2014, 2013 and 2012, the Company recorded third-party royalties of $0.5 million, $0.4 million and $1.1 million, respectively, due primarily under the Pfizer License. | |
The Company has entered into, and will continue to pursue additional licensing agreements, corporate collaborations and service contracts. There can be no assurance that the Company will be able to negotiate acceptable collaborative, licensing or service agreements, or that the existing arrangements will be successful or renewed or will not be terminated. |
Shortterm_Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | 3. Short-term Investments |
As of December 31, 2014, the Company had no short-term investments. As of December 31, 2013, the Company had $5.0 million in short-term investments. The Company’s investment policy is to limit the risk of principal loss and to ensure safety of invested funds by generally attempting to limit market risk. Accordingly, the Company’s short-term investments were invested in U.S. Treasury securities with original maturities of 12 months or less. They are classified as trading securities principally bought and held for the purpose of selling them in the near term, with unrealized gains and losses included in earnings. At December 31, 2013, the unrealized gains on these short-term investments were insignificant. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable |
Accounts receivable represent amounts due to the Company from its licensees or former licenses, including Akorn and other third parties. At December 31, 2014, accounts receivable included $0.3 million due from Akorn for earned royalties on net sales of AzaSite and manufacturing equipment rental. At December 31, 2013, accounts receivable included $1.0 million for reaching certain 2013 Besivance sales targets related to the sale of the rights to receive Besivance royalty payments. At December 31, 2014 and 2013, the Company did not record a bad debt allowance related to any accounts receivable as all amounts were reasonably expected to be collected. The need for a bad debt allowance is evaluated each reporting period based on the Company’s assessment of the collectability of such amounts. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment, Net | 5. Property and Equipment, net | ||||||||
Property and equipment, net consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Laboratory and other equipment | $ | 2,408 | $ | 1,445 | |||||
Leasehold improvements | 663 | 45 | |||||||
Furniture and fixtures | 49 | 14 | |||||||
Construction in Progress | — | 1,115 | |||||||
3,120 | 2,619 | ||||||||
Accumulated depreciation and amortization | (1,523 | ) | (1,188 | ) | |||||
Property and equipment, net | $ | 1,597 | $ | 1,431 | |||||
Warrant_Liability
Warrant Liability | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Warrant Liability | 6. Warrant Liability |
On July 18, 2011, the Company completed a private placement financing transaction in which it sold shares of its common stock and warrants to purchase shares of its common stock. The Company sold a total of 36,978,440 shares of common stock, at a price of $0.60 per share, and issued warrants to purchase up to 14,791,376 shares of common stock. The warrants are exercisable at $0.75 per share and expire five years from the date of issuance. The private placement resulted in $22.2 million in gross proceeds and approximately $20.4 million in net proceeds to the Company after deducting placement agent fees, legal, accounting and other costs associated with the transaction. The Company has used the net proceeds of the transaction to fund clinical trials and for general corporate purposes, including working capital. | |
In the fourth quarter of 2014, the Company completed private placement debt financing transactions, see Note 8, “Secured Notes Payable” for further discussion. In connection with the debt financings, the Company issued warrants to purchase up to 2,053,169 shares, 200,620 shares and 2,824,281 shares of common stock that are exercisable at $0.33, $0.31 and $0.26, respectively, per share and expire five years from the date of issuance. | |
As discussed in Note 1, “Business and Summary of Significant Accounting Policies”, the warrants issued in 2011 and 2014 included a provision that provides the warrant holders with an option to require the Company (or its successor) to purchase the warrants for cash in an amount equal to the Black-Scholes value in the event of a “Fundamental Transaction” (as defined in the warrant agreements). Accordingly, the fair value of the warrants at the issuance date was estimated using the Black-Scholes Model, as determined in accordance with the terms of the warrant agreements, and the Company recorded an initial warrant liability valuation of $6.4 million in 2011 and $1.0 million in 2014. The Company remeasured the warrant liability at December 31, 2014 and 2013, and recorded a decrease to the warrant liability of approximately $1.5 million and $0.6 million, respectively, which was recognized as income in the Company’s Consolidated Statement of Operations for the years ended December 31, 2014 and 2013. Additional disclosures regarding assumptions used in calculating the fair value of the warrant liability are included in Note 1, “Business and Summary of Significant Accounting Policies.” |
Lease_Incentive
Lease Incentive | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Lease Incentive | 7. Lease Incentive |
On August 1, 2013, the Company and Legacy Partners I Alameda, LLC entered into the fifth amendment to the Company’s lease, dated September 1, 1996, which covers the Company’s space at 965 Atlantic Avenue and 2020 Challenger Drive, in Alameda, California. Under the terms of the amendment, the term of the Company’s lease was extended until December 2020 and the Company was eligible to receive up to $1.3 million from Legacy Partners for leasehold improvements for both buildings. | |
For the years ended December 31, 2014 and 2013, the Company incurred $0.2 million and $1.1 million, respectively, for leasehold improvements under the terms of the amendment for both buildings. The lease incentives were recognized as reductions of rental expense on a straight-line basis over the term of the lease. As of December 31, 2013, the leasehold improvements had not placed in service and were recorded as Construction in Progress, see Note 5, “Property and Equipment, net.” The leasehold improvements were placed in service during the first quarter of 2014 and amortized over the life of the lease or their estimated useful lives, whichever is shorter, using the straight-line method. As of December 31, 2014, $0.9 million of the lease incentives were classified as long-term and $0.2 million were classified as current in the Company’s Consolidated Balance Sheets. As of December 31, 2013, the reimbursement of $1.1 million from Legacy Partners was recorded as Other receivables in the Company’s Consolidated Balance Sheets. As of December 31, 2014, there was no remaining reimbursement receivable from Legacy Partners. |
Secured_Notes_Payable
Secured Notes Payable | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Secured Notes Payable | 8. Secured Notes Payable | ||||||||||||
In February 2008, the Company’s wholly-owned subsidiary, Azithromycin Royalty Sub, LLC, (the “Subsidiary”) completed a private placement of $60.0 million in aggregate principal amount of the AzaSite Notes, which were non-convertible, non-recourse promissory notes due in 2019. Net proceeds from the financing were approximately $55.3 million after transaction costs of approximately $4.7 million. The annual interest rate on the notes is 16% with interest payable quarterly in arrears. The notes were secured by royalties to be paid to the Company by Akorn from net sales of AzaSite in the United States. The secured notes were non-recourse to InSite Vision Incorporated. | |||||||||||||
For the quarter ended December 31, 2013, the Subsidiary received insufficient royalties to make the interest payment in full that was due on February 15, 2014. The Company had the ability to make-up this shortfall with its own cash resources. This shortfall in the interest payment was not an event of default. However, if the Company did not pay in full the shortfall (plus interest thereon) by May 15, 2014, the Subsidiary would trigger an event of default under the indenture. The Company had no intention to pay this shortfall. Accordingly, an event of default was likely on May 15, 2014. To the extent that an event of default occurred, the bondholders could seek available remedies, which included foreclosure on the Subsidiary, which would mean the Company would lose all interest in AzaSite Royalty Sub and lose its right to receive AzaSite royalties in North America. The Company’s ability to receive future revenue from sales of AzaSite was dependent on the Company’s subsidiary repaying the AzaSite Notes and interest in a timely fashion. If the Company’s subsidiary did not cure the expected event of default, the Company was highly unlikely to receive future revenue from AzaSite. Based on earned royalty levels, the earned royalties would not cover future required interest payments. As such, as of December 31, 2013, $41.3 million of secured notes was classified as current along with the unamortized debt issuance costs. | |||||||||||||
For the quarter ended March 31, 2014, the Subsidiary received insufficient royalties to make the interest payments in full that were due on the notes. Accordingly, an event of default occurred on May 15, 2014. | |||||||||||||
On June 10, 2014, the Subsidiary and the noteholders entered into a Note Purchase Agreement under which the Subsidiary repurchased and cancelled the AzaSite Notes for a single payment of $6.0 million. The $6.0 million payment to the noteholders was funded by the $6.0 million amendment fee paid by Akorn pursuant to the Amendment. As a result of the cancellation, the remaining principal on the AzaSite Notes of $41.3 million and accrued interest of $2.8 million was extinguished. In addition, the Subsidiary wrote-off the remaining balance of $2.1 million in debt issuance costs and incurred less than $0.1 million of legal and professional fees. In the Consolidated Statement of Operations for the year ended December 31, 2014, the unpaid principal of $35.3 million and unpaid interest of $2.8 million, less the write-off of debt issuance costs of $2.1 million and legal fees, totaling $36.0 million, are included under “Gain on Extinguishment of Debt” and represented basic and diluted net income per share of $0.27. In the Consolidated Statement of Cash Flows for the year ended December 31, 2014, $36.0 million is included under “Non-cash financing activities – Debt extinguishment.” | |||||||||||||
In the fourth quarter of 2014, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Purchasers”) pursuant to which the Company agreed to sell 12% Senior Secured Notes (the “Notes”) in an aggregate principal amount of up to $15 million and issue warrants to purchase shares of the Company’s common stock. The Company sold and issued Notes to the Purchasers and issued to the Purchasers warrants to purchase shares of the Company’s common stock, as follows: | |||||||||||||
Date Issued | Aggregate Principal | Warrant | Warrant | ||||||||||
Amount | Shares | Exercise | |||||||||||
Price | |||||||||||||
9-Oct-14 | $ | 2.4 million | 2,053,169 | $ | 0.33 | ||||||||
21-Nov-14 | $ | 0.2 million | 200,620 | $ | 0.31 | ||||||||
10-Dec-14 | $ | 2.6 million | 2,824,281 | $ | 0.26 | ||||||||
Total | $ | 5.2 million | 5,078,070 | ||||||||||
The total loan commitment by the Purchasers pursuant to the Purchase Agreement is $7.8 million. Accordingly, the Company has the option to sell additional Notes in an aggregate principal amount of $2.6 million to the Purchasers. The Company’s right to sell and issue additional Notes and to issue additional warrants in connection with such Notes expires on October 9, 2016. | |||||||||||||
The Notes are senior secured obligations of the Company and are secured by substantially all of the assets of the Company, including its intellectual property. The Notes have a maturity date of one year from the date of issuance, which may be extended for one year at the option of the Company. The Notes bear interest at a rate of 12% per annum. In the event that the Company extends the maturity date, the interest rate increases to 14% per annum. | |||||||||||||
Riverbank Capital Securities acted as the placement agent (the “Placement Agent”) for the offering of Notes and warrants pursuant to the Purchase Agreement and received $311,800, a 6% cash commission on the gross proceeds from the sale of the Notes and issuance of the warrants on October 9, 2014. Timothy McInerney, the Chairman of the Board of the Company and a member of the Company’s Board of Directors, is a principal of the Placement Agent and is a Purchaser in the offering of Notes and warrants under the same terms as the other Purchasers. | |||||||||||||
The Company incurred $0.5 million in placement agent and legal fees and $1.0 million (non-cash) for the initial valuation of the warrants issued with the Notes. These amounts are recorded as debt issuance costs and are amortized using the effective interest rate method. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies | 9. Commitments and Contingencies | ||||||||||||
The Company has entered into certain license agreements that require it to make royalty payments for the life of the licensed patents. The estimated royalty payments related to the net sales of AzaSite in North America are approximately $1.8 million for the period 2015 through 2018. These contractual obligations are reflected in the Company’s financial statements once the related obligation becomes due. | |||||||||||||
The Company conducts its operations from leased facilities in Alameda, California under non-cancelable operating lease agreements that expire in December 2020. Lease payments include rent and the Company’s pro-rata share of operation expenses. The Company subleases a portion of the facility under a lease agreement that expired on January 31, 2015. Lease income includes rent and a pro-rata share of operation expenses. For accounting purposes, the Company is amortizing all rent payments, receipts and lease incentives ratably over the life of the lease. Rent expense for the years ended December 31, 2014, 2013 and 2012, was $314,000, $583,000, and $697,000, respectively. Future minimum lease payments under the operating lease and future cash receipts from the sublease, are as follows (in thousands): | |||||||||||||
Year Ending December 31, | Operating Lease | Operating Sublease | Operating Lease | ||||||||||
Cash Payments | Cash Receipts | Cash Payments, net | |||||||||||
2015 | $ | 709 | $ | 13 | $ | 696 | |||||||
2016 | 736 | — | 736 | ||||||||||
2017 | 762 | — | 762 | ||||||||||
2018 | 788 | — | 788 | ||||||||||
2019 | 815 | — | 815 | ||||||||||
2020 and thereafter | 826 | — | 826 | ||||||||||
$ | 4,636 | $ | 13 | $ | 4,623 | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 10. Income Taxes | ||||||||||||
Provision for Income Taxes | |||||||||||||
There was no provision for income taxes for the years ended December 31, 2014, 2013 and 2012 due to the Company’s net operating losses. | |||||||||||||
Income tax provision related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 34% to pretax loss as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax provision at federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State taxes, net of federal benefit | 0 | % | 0 | % | 0 | % | |||||||
Warrant liability | -1.9 | % | -3.4 | % | 7.8 | % | |||||||
Other permanent differences | 0 | % | 0.1 | % | 0 | % | |||||||
Credits | -4.1 | % | -11.9 | % | 0 | % | |||||||
Credit Reserves | 4.4 | % | 0 | % | 0 | % | |||||||
Expiring net operating losses | 0 | % | 0 | % | -15 | % | |||||||
True up of deferred tax assets | 0 | % | 0 | % | 0 | % | |||||||
Valuation allowance | -32.4 | % | -18.8 | % | -26.8 | % | |||||||
Effective tax rate | 0 | % | 0 | % | 0 | % | |||||||
Deferred Tax Assets and Liabilities | |||||||||||||
Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets for federal and state income taxes as of December 31, 2014 and 2013 were as follows (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 31,342 | $ | 39,555 | |||||||||
Tax credit carryforwards | 7,937 | 8,936 | |||||||||||
Capitalized research and development | 9,244 | 11,746 | |||||||||||
Depreciation | 162 | 165 | |||||||||||
Other | 2,114 | 1,251 | |||||||||||
Total deferred tax assets | 50,799 | 61,653 | |||||||||||
Valuation allowance | (50,799 | ) | (61,653 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
Realization of the Company’s deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Because of the Company’s lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance. During the years ended December 31, 2014 and 2013, the valuation allowance decreased by $10.9 million and $1.0 million, respectively. | |||||||||||||
At December 31, 2014, the Company had net operating loss carryforwards for federal income tax purposes of approximately $80.4 million, which expire in the years 2022 through 2034 and federal tax credits of approximately $5.2 million, which expire in the years 2018 through 2034. At December 31, 2014, the Company also had net operating loss carryforwards for state income tax purposes of approximately $66.7 million, which expire in the years 2016 through 2034, and state research and development tax credits of approximately $5.4 million, which carry forward indefinitely. The reduction of net operating loss carryforwards from the prior year is due primarily to debt forgiveness that was excluded from taxable income but resulted in a reduction of net operating loss carryforwards for federal and state purposes and expiring net operating losses. | |||||||||||||
The future utilization of the Company’s net operating loss carryforwards to offset future taxable income is subject to an annual limitation as a result of ownership changes that have occurred previously, and may be further impacted by future ownership changes. As necessary, the deferred tax assets have been reduced by any carryforwards that expire prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance. These carryforwards may be further reduced if the Company has any additional ownership changes in the future. | |||||||||||||
The valuation allowance includes amounts of benefit at both December 31, 2014 and 2013 related to stock-based compensation and exercises, prior to the implementation of Accounting Standards Codification 515 and 718 that will be credited to additional paid-in capital when realized. | |||||||||||||
Unrecognized Tax Benefits | |||||||||||||
The Company has incurred net operating losses since inception and does not have any unrecognized tax benefits. The Company’s policy is to include interest and penalties related to unrecognized tax benefits, if any, within the provision for taxes in the consolidated statements of operations. If the Company is eventually able to recognize its uncertain positions, its effective tax rate would be reduced. The Company currently has a full valuation allowance against its net deferred tax assets which would impact the timing of the effective tax rate benefit should any uncertain tax positions be favorably settled in the future. Any adjustments to the Company’s uncertain tax positions would result in an adjustment of its net operating loss or tax credit carry forwards. | |||||||||||||
The Company files income tax returns in the U.S. federal and California jurisdictions. The Company is no longer subject to tax examinations for years before 2011 for federal returns and 2010 for California returns, except to the extent that it utilizes net operating losses or tax credit carryforwards that originated before those years. The Company is not currently under audit by any major tax jurisdiction nor has it been in the past. | |||||||||||||
The Company had the following activity relating to unrecognized tax benefits (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning Balance | — | — | — | ||||||||||
Tax positions related to current year: | |||||||||||||
Additions: | |||||||||||||
Federal | 110 | — | — | ||||||||||
State | 108 | — | — | ||||||||||
Total | 218 | — | — | ||||||||||
Reductions | — | — | — | ||||||||||
Tax positions related to prior years: | |||||||||||||
Additions | |||||||||||||
Federal | 1,179 | — | — | ||||||||||
State | 1,249 | — | — | ||||||||||
Total | 2,428 | — | — | ||||||||||
Reductions | — | — | — | ||||||||||
Settlements | — | — | — | ||||||||||
Lapses in Statutes of Limitations | — | — | — | ||||||||||
Ending Balance | 2,646 | — | — | ||||||||||
Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next twelve months due to tax examination changes, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, the Company does not anticipate any significant changes to unrecognized tax benefits over the next 12 months. During the years ended December 31, 2014 and 2013, no interest or penalties were required to be recognized relating to unrecognized tax benefits. |
Common_Stock_Warrants
Common Stock Warrants | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Common Stock Warrants | 11. Common Stock Warrants | ||||||||||||||||
The following table shows outstanding warrants as of December 31, 2014, issued in the July 2011 private placement financing transaction and in private placement debt financing transactions that closed in the fourth quarter of 2014. All of the outstanding warrants have cashless exercise provisions in the event the registration statement registering the resale of the shares of common stock issuable upon exercise of the warrants is not effective or the prospectus forming a part of the registration statement is not current. All warrants are exercisable for common stock. | |||||||||||||||||
Date Issued | Warrant | Exercise | Expiration Date | Cash if | |||||||||||||
Shares | Price | Exercised | |||||||||||||||
18-Jul-11 | 14,791,376 | $ | 0.75 | July 18, 2016 | $ | 11,093,532 | |||||||||||
9-Oct-14 | 2,053,169 | $ | 0.33 | October 9, 2019 | $ | 677,546 | |||||||||||
21-Nov-14 | 200,620 | $ | 0.31 | November 21, 2019 | $ | 62,192 | |||||||||||
10-Dec-14 | 2,824,281 | $ | 0.26 | 10-Dec-19 | $ | 734,313 | |||||||||||
Total | 19,869,446 | $ | 12,567,583 | ||||||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Stock-Based Compensation | 12. Stock-Based Compensation | ||||||||||||||
Equity Incentive Program | |||||||||||||||
In 2007, the Company’s stockholders approved the Company’s 2007 Performance Incentive Plan (the “2007 Plan”), which provides for grants of options and other equity-based awards to the Company’s employees, directors and consultants. Options granted under this plan, and its predecessor plan, expire 10 years after the date of grant and become exercisable at such times and under such conditions as determined by the Company’s Board of Directors (generally, with 25% vesting after one year and the balance vesting on a daily basis over the next three years of service). Upon termination of the optionee’s service, unvested options terminate and vested options generally expire three months thereafter, if not exercised. Only nonqualified stock options have been granted under this plan to date. On January 1 of each calendar year during the term of the 2007 Plan, the shares of common stock available for issuance under the 2007 Plan will be increased by the lesser of (i) 2% of the total outstanding shares of common stock on December 31 of the preceding calendar year and (ii) 3,000,000 shares. The Board of Directors of the Company delayed the effectiveness of the January 1, 2015 increase in the number of shares available for issuance under the 2007 Plan until such time as (i) the Board determines otherwise, or (ii) the Company’s stockholders approve an increase in the authorized shares of common stock under the Company’s Certificate of Incorporation (as amended). | |||||||||||||||
Employee Stock Purchase Plans | |||||||||||||||
The Company maintained an employee stock purchase plan, adopted in 1994 and amended thereafter (the “Purchase Plan”), until August 2009. In August 2009, the Purchase Plan was suspended. No new offering period will commence and no additional shares will be added to the Purchase Plan under its evergreen provision unless and until approved by the Company’s Board of Directors. The Purchase Plan operated in 24-month “offering periods” that are each divided into four six-month “purchase periods.” The Purchase Plan allowed eligible employees to purchase Common Stock at 85% of the lower of the fair market value of the Common Stock on the first day of the applicable offering period or the fair market value of the Common Stock on the last day of the applicable purchase period. Purchases were limited to 10% of each employee’s eligible compensation, subject to certain Internal Revenue Service restrictions. All of the Company’s employees were eligible to participate in the Purchase Plan after certain service periods were met. The number of shares available for issuance under the Purchase Plan was automatically increased on the first trading day in January each calendar year, by an amount equal to 0.5% of the total number of shares of Common Stock outstanding on the last trading day in December in the immediately preceding calendar year, but in no event will any such annual increase exceed 125,000 shares. No shares have been issued under the Purchase Plan since 2009. As of December 31, 2014, there was no remaining unrecorded deferred stock-based compensation expense related to the Purchase Plan. As of December 31, 2014, 515,183 shares were reserved for issuance under the Purchase Plan. | |||||||||||||||
Stock-based Compensation | |||||||||||||||
Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. All of the Company’s stock compensation is accounted for as an equity instrument. | |||||||||||||||
The effect of recording stock-based compensation for the years ended December 31, 2014, 2013 and 2012 was as follows (in thousands): | |||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Stock-based compensation expense by type of award: | |||||||||||||||
Employee stock options | $ | 890 | $ | 926 | $ | 891 | |||||||||
Non-employee stock options Scientific Advisory Board stock options | 1 | 8 | 56 | ||||||||||||
Total stock-based compensation | $ | 891 | $ | 934 | $ | 947 | |||||||||
Stock-based compensation included in expense line items in the Consolidated Statements of Operations for the year ended December 31, 2014, 2013 and 2012 was as follows (in thousands): | |||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Research and development | $ | 351 | $ | 331 | $ | 271 | |||||||||
General and administrative | 540 | 603 | 676 | ||||||||||||
$ | 891 | $ | 934 | $ | 947 | ||||||||||
During the years ended December 31, 2014 and 2013, respectively, the Company granted options to purchase 3,939,500 and 4,124,374 shares of common stock with an estimated total grant date fair value of $0.7 million and $0.9 million. Based on the Company’s historical experience of option pre-vesting cancellations and estimates of future forfeiture rates, the Company has assumed an annualized forfeiture rate of 10% for its options for all periods disclosed. Accordingly, for the years ended December 31, 2014 and 2013, the Company estimated that the stock-based compensation for the awards not expected to vest was $0.2 million and $0.3 million, respectively. | |||||||||||||||
As of December 31, 2014 and 2013, the unrecorded deferred stock-based compensation balances related to stock options were $1.0 million and $1.2 million, respectively, and will be recognized over an estimated weighted-average amortization period of 2.4 years. | |||||||||||||||
Fair Value Assumptions | |||||||||||||||
The fair value of each option grant is estimated using the Black-Scholes valuation model on the date of grant and the graded-vesting method with the following weighted-average assumptions: | |||||||||||||||
Year ended December 31, | |||||||||||||||
Stock Options | 2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 1.7 | % | 0.9 | % | 0.7 | % | |||||||||
Expected term (years) | 5 | 5 | 5 | ||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | |||||||||
Volatility | 88.1 | % | 89.9 | % | 90.9 | % | |||||||||
The expected dividend yield was set at zero because the Company has never paid cash dividends and has no present intention to pay cash dividends. Expected volatility was based on the historical volatility of the Company’s common stock and the expected moderation in future volatility over the period commensurate with the expected life of the options and other factors. The risk-free interest rates were taken from the Daily Federal Yield Curve Rates as of the grant dates as published by the Federal Reserve and represent the yields on actively traded U.S. Treasury securities for terms equal to the expected term of the options. The expected term calculation was based on the terms utilized by the Company’s peers, observed historical option exercise behavior and forfeitures of options by the Company’s employees. | |||||||||||||||
The following is a summary of activity under the Company’s stock option plans for the indicated periods: | |||||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | ||||||||||||
shares | Average | Remaining Contractual | Intrinsic | ||||||||||||
Exercise | Term (Years) | Value (in | |||||||||||||
Price | thousands) | ||||||||||||||
Outstanding at December 31, 2011 | 11,003,963 | $0.41 | |||||||||||||
Granted | 4,047,500 | 0.42 | |||||||||||||
Exercised | — | 0 | |||||||||||||
Forfeited | (784,223 | ) | 0.37 | ||||||||||||
Expired | (901,718 | ) | 0.38 | ||||||||||||
Outstanding at December 31, 2012 | 13,365,522 | 0.42 | 7.69 | $ | 156 | ||||||||||
Granted | 4,124,374 | 0.31 | |||||||||||||
Exercised | — | 0 | |||||||||||||
Forfeited | (323,479 | ) | 0.33 | ||||||||||||
Expired | (68,433 | ) | 0.62 | ||||||||||||
Outstanding at December 31, 2013 | 17,097,984 | 0.39 | 7.22 | 195 | |||||||||||
Granted | 3,939,500 | 0.27 | |||||||||||||
Exercised | — | 0 | |||||||||||||
Forfeited | (108,190 | ) | 0.33 | ||||||||||||
Expired | (184,653 | ) | 0.61 | ||||||||||||
Outstanding at December 31, 2014 | 20,744,641 | $0.37 | 6.82 | $ | — | ||||||||||
Options vested and expected to vest at December 31, 2014 | 20,211,174 | $0.37 | 6.76 | $ | — | ||||||||||
Options exercisable at December 31, 2014 | 14,750,731 | $0.39 | 6.04 | $ | — | ||||||||||
At December 31, 2014, the Company had 3,513,717 shares of common stock available for grant under its 2007 Plan. The weighted average grant date fair value of options granted during the years ended December 31, 2014, 2013 and 2012 was $0.19, $0.21 and $0.29, respectively. No options were exercised during the year ended December 31, 2014, 2013 and 2012. | |||||||||||||||
At December 31, 2013 and 2012, options to purchase 11,094,139 and 7,752,944 shares of common stock were exercisable at weighted-average exercise prices of $0.41 and $0.42, per share, respectively. |
Legal_Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 13. Legal Proceedings |
The Company is subject to various claims and legal actions during the ordinary course of its business. | |
In April 2011, the Company received a Notice Letter that Sandoz, Inc. or Sandoz, has filed an Abbreviated New Drug Application, or ANDA, with the FDA seeking marketing approval for a 1% azithromycin ophthalmic solution, or the Sandoz Product, prior to the expiration of the five U.S. patents listed in the Orange Book for AzaSite, which include four of our patents and one patent licensed to us by Pfizer. In the paragraph IV Certification accompanying the Sandoz ANDA filing, Sandoz alleges that the claims of the Orange Book listed patents are invalid, unenforceable and/or will not be infringed upon by the Sandoz Product. On May 26, 2011, we, Merck and Pfizer filed a patent infringement lawsuit against Sandoz and related entities. The plaintiff companies agreed that Merck would take the lead in prosecuting this lawsuit. Before the trial, the patents involved in the litigation were limited to the one Pfizer patent and three of our patents. On October 4, 2013, the United States District Court for the District of New Jersey entered a Final Judgment in favor of us and the other plaintiffs finding all the asserted claims of the patents in the litigation valid and infringed by Sandoz and related entities. The Court Order specified that the effective date of any FDA approval of a Sandoz ANDA for generic 1% azithromycin ophthalmic solution products would be no earlier than the expiration date of the patents in the litigation. On November 4, 2013, Sandoz filed an appeal of this decision to the United States Court of Appeals for the Federal Circuit. On November 15, 2013, Akorn acquired Inspire from Merck, and as such, acquired the rights to AzaSite in North America. Akorn has taken the lead in prosecuting this lawsuit. We and the other plaintiffs intend to vigorously contest any Sandoz assertions that these patents should have been found not infringed, invalid and/or unenforceable. | |
On January 3, 2013, certain plaintiffs filed a complaint in circuit court in Fayette County, Kentucky against Bausch & Lomb and the Company alleging that they were injured when treated with the Bausch & Lomb product Besivance following a photorefractive keratectomy. In February 2013, Bausch & Lomb removed the case to the United States District Court for the Eastern District of Kentucky. The Company moved to dismiss for lack of jurisdiction and in January 2014, the plaintiffs filed a response conceding to the Company’s motion to dismiss for lack of personal jurisdiction. On March 7, 2014, the matter was taken off docket by the District Court. The Company subsequently received a complete release of all claims. | |
In May 2013, the Company received a Notice Letter that Mylan Pharmaceuticals, Inc. or Mylan, has filed an ANDA with the FDA seeking marketing approval for a 1% azithromycin ophthalmic solution, or the Mylan Product, prior to the expiration of the U.S. patents listed in the Orange Book for AzaSite, which include three of our patents and one patent licensed to us by Pfizer. In the paragraph IV Certification accompanying the Mylan ANDA filing, Mylan alleges that the claims of the Orange Book listed patents are invalid, unenforceable and/or will not be infringed upon by the Mylan Product. On June 14, 2013, we, Merck and Pfizer filed a patent infringement lawsuit against Mylan and a related entity. On November 15, 2013, Akorn acquired Inspire from Merck, and as such, acquired the rights to AzaSite in North America. The plaintiff companies have agreed that Akorn will take the lead in prosecuting this lawsuit. The filing of this lawsuit triggered an automatic stay, or bar, of the FDA’s approval of the ANDA for up to 30 months or until a final district court decision of the infringement lawsuit, whichever comes first. We and the other plaintiffs intend to vigorously enforce our patent rights relating to AzaSite and vigorously contest any Mylan assertions that these patents are invalid and/or unenforceable. | |
On July 24, 2014, Karin Stiens filed a complaint against Bausch & Lomb, Dr. Lance Ferguson and the Company (Fayette (Kentucky) Circuit Court Civil Action No. 14-CI-2829) alleging that she suffered ophthalmological damage when Dr. Ferguson engaged in off-label use of Besivance in a photorefractive keratectomy procedure as a prophylactic antibiotic. The plaintiff alleges that Bausch & Lomb and the Company negligently tested, marketed and distributed Besivance, and negligently informed medical providers and consumers about Besivance. The complaint contains no facts supporting these general allegations, no facts supporting the plaintiff’s claim of permanent injuries and no allegations asserting Kentucky jurisdiction over the Company. The plaintiff has not pleaded any specific amount in damages nor made any demand. The Company is investigating the plaintiff’s allegations. The Company filed its answer on August 18, 2014. | |
There are currently no other claims or legal actions that would have a material adverse impact on our financial position, operations or potential performance. |
Quarterly_Results
Quarterly Results | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results | 14. Quarterly Results (Unaudited) | ||||||||||||||||
The following table is a summary of the quarterly results of operations for the years ended December 31, 2014 and 2013. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The Company’s operating results for any quarter are not necessarily indicative of results for any future period. | |||||||||||||||||
2014 | |||||||||||||||||
(In thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 1,153 | $ | 6,349 | $ | 360 | $ | 352 | |||||||||
Cost of revenues | 138 | 158 | 159 | 123 | |||||||||||||
Gross profit | 1,015 | 6,191 | 201 | 229 | |||||||||||||
Income (loss) from operations | (3,472 | ) | 2,256 | (2,915 | ) | (3,088 | ) | ||||||||||
Net income (loss) | (4,679 | ) | 37,149 | (3,280 | ) | (2,429 | ) | ||||||||||
—basic | $ | (0.04 | ) | $ | 0.28 | $ | (0.02 | ) | $ | (0.02 | ) | ||||||
—diluted | $ | (0.04 | ) | $ | 0.28 | $ | (0.02 | ) | $ | (0.02 | ) | ||||||
2013 | |||||||||||||||||
(In thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 5,260 | $ | 19,240 | $ | 5,254 | $ | 1,068 | |||||||||
Cost of revenues | 85 | 167 | 130 | 3 | |||||||||||||
Gross profit | 5,175 | 19,073 | 5,124 | 1,065 | |||||||||||||
Income (loss) from operations | 355 | 13,972 | 1,319 | (2,541 | ) | ||||||||||||
Net income (loss) | (1,921 | ) | 12,116 | 579 | (4,993 | ) | |||||||||||
—basic | $ | (0.01 | ) | $ | 0.09 | $ | 0 | $ | (0.04 | ) | |||||||
—diluted | $ | (0.01 | ) | $ | 0.09 | $ | 0 | $ | (0.04 | ) |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events |
On January 29, 2015, the Company entered into a license agreement with Nicox S.A. (“Nicox”), a France-based publicly traded company, for the development and commercialization of AzaSite (1% azithromycin), AzaSite Xtra (2% azithromycin) and BromSite (0.075% bromfenac) in Europe, Middle East and Africa (105 total countries). Under the terms of the license, the Company received an upfront payment of $3.0 million and will potentially receive $13.75 million in milestone payments. It will also receive tiered, mid-single digit to double-digit royalties on the net sales of these three products. | |
Under the license agreement, Nicox can request up to twelve full-time equivalent (“FTE”) employees from the Company to assist with presenting data to regulatory authorities in the European Union, obtaining European Union regulatory approvals and dealing with the approved product manufacturer in the United States. Nicox has agreed to reimburse the Company for the use of its employees. Should the twelve FTE employees be needed for a full year, the reimbursement to the Company would be approximately $3.6 million. | |
A joint collaboration and development committee will oversee further product development of the licensed products for the European Union including AzaSite Xtra and any additional indications for BromSite. The Company has the right to utilize the jointly developed data for regulatory approval outside of the Nicox territory including in the United States. Each company will bear 50% of the development cost. | |
The Company evaluated subsequent events through the date on which the financial statements were issued, and has determined that there are no additional subsequent events that require adjustments or the addition of disclosure to the financial statements for the year ended December 31, 2014. |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of InSite Vision Incorporated as well as its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. | ||||||||||||
Industry Segment and Geographic Information | Industry Segment and Geographic Information. The Company operates in one segment and is focused on developing drugs and drug delivery systems principally for ophthalmic indications. The Company had limited foreign-based operations for the years ended December 31, 2014, 2013 and 2012. All long-lived assets are located in the United States. | ||||||||||||
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | ||||||||||||
Reclassifications | Reclassifications. Certain amounts in prior years’ financial statements have been reclassified to conform to the current presentation. These reclassifications had no impact on previously reported results of operations or stockholders’ deficit. | ||||||||||||
Cash and Cash Equivalents | Cash and cash equivalents. The Company considers all highly liquid investments with maturities of 90 days or less from the date of purchase to be cash equivalents. | ||||||||||||
Short-term investments | Short-term investments. The Company considers all investments with original maturities of 12 months or less from the date of purchase to be short-term investments. They are classified as trading securities principally bought and held for the purpose of selling them in the near term, with unrealized gains and losses included in earnings. | ||||||||||||
Property and Equipment | Property and Equipment. Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is provided over the estimated useful lives of the respective assets, which range from three to five years, using the straight-line method. Leasehold improvements and property acquired under capital leases are amortized over the lives of the related leases or their estimated useful lives, whichever is shorter, using the straight-line method. Depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 was $335,000, $107,000 and $95,000, respectively. The costs of repairs and maintenance are expensed as incurred. | ||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. The Company periodically assesses the recoverability of its long-lived assets for which an indicator of impairment exists by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If the Company concludes that the carrying value will not be recovered, the Company measures the amount of such impairment by comparing the fair value to the carrying value. For the years ended December 31, 2014, 2013 and 2012, no impairment of property and equipment was recorded. | ||||||||||||
Patents | Patents. As a result of the Company’s research and development efforts, the Company has obtained, or is applying for, a number of patents to protect proprietary technology and inventions. All costs associated with patents for product candidates under development are expensed as incurred. As of December 31, 2014 and 2013, the Company had no capitalized patent costs. | ||||||||||||
Debt Issuance Costs | Debt Issuance Costs. Debt issuance costs paid to third parties are capitalized and amortized over the life of the underlying debt, using the effective interest method. Amortization of debt issuance costs for the years ended December 31, 2014, 2013 and 2012 were $405,000, $418,000 and $419,000, respectively, and are included in interest expense and other, net in the Consolidated Statements of Operations. See Note 8, “Secured Notes Payable” for further discussion of the underlying debt. | ||||||||||||
Warrant Liability | Warrant Liability. The Company issued warrants to purchase shares of the Company’s common stock in connection with a private placement equity financing transaction in July 2011 and private placement debt financing transactions in the fourth quarter of 2014. The Company accounted for these warrants as a liability measured at fair value due to a provision included in the warrant agreements that provides the warrant holders with an option to require the Company (or its successor) to purchase their warrants for cash in the event of a “Fundamental Transaction” (as defined in the warrant agreements). The actual amount of cash required if the option is exercised would be determined using the Black-Scholes Option Pricing Model (the “Black-Scholes Model”) as determined in accordance with the terms of the warrant agreements. The fair value of the warrant liability is estimated using the Black-Scholes Model, which requires inputs such as the remaining term of the warrants, share price volatility and risk-free interest rate. These assumptions are reviewed on a monthly basis and changes in the estimated fair value of the outstanding warrants are recognized each reporting period in the Consolidated Statements of Operations under “Change in fair value of warrant liability.” | ||||||||||||
Fair Value Measurements | Fair Value Measurements. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2: | Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, 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: | Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | ||||||||||||
As of December 31, 2014 and 2013, less than $0.1 million and $8.2 million, respectively, of the Company’s cash, cash equivalents and short-term investments consisted of Level 1 Treasury-backed government securities or money market funds that are measured at fair value on a recurring basis. | |||||||||||||
The Company’s financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable, other receivables, accounts payable, accrued liabilities and debt obligations. Accounts receivable, other receivables, and accounts payable are reflected in the accompanying consolidated financial statements at cost, which approximates fair value due to the short-term nature of these instruments. While the Company believes its valuation methodologies are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. | |||||||||||||
As discussed above, the fair value of the warrant liability, determined using Level 3 criteria, was initially recorded on the grant date and remeasured at December 31, 2014 and 2013 using the Black-Scholes Model, which requires inputs such as the remaining term of the warrants, share price volatility and risk-free interest rate. These inputs are subjective and generally require significant analysis and judgment to develop. | |||||||||||||
The fair value of the warrant liability was estimated using the following weighted-average assumptions, as determined in accordance with the terms of the warrant agreements, at December 31, 2014 and 2013: | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Risk-free interest rate | 0.9 | % | 0.8 | % | |||||||||
Remaining term (years) | 2.4 | 2.5 | |||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||
Volatility | 101.2 | % | 100 | % | |||||||||
The expected dividend yield is set at zero because the Company has never paid cash dividends and has no present intention to pay cash dividends. Per the terms of the warrant agreements, expected volatility is based on the historical volatility of the Company’s common stock and is equal to the greater of 100% or the 30-day volatility rate. The risk-free interest rates are taken from the Daily Federal Yield Curve Rates as published by the Federal Reserve and represent the yields on actively-traded U.S. Treasury securities for a term equal to the remaining term of the warrants. | |||||||||||||
The following table provides a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the year ended December 31, 2014 and 2013 (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Beginning balance | $ | 1,685 | $ | 2,257 | |||||||||
Initial fair value of warrants as of issuance | 1,003 | — | |||||||||||
Net decrease in fair value of warrant liability on remeasurement | (1,497 | ) | (572 | ) | |||||||||
Ending balance | $ | 1,191 | $ | 1,685 | |||||||||
The initial value of the warrants issued in 2014 were recorded as “Debt issuance costs, net” in the Consolidated Balance Sheets. The net decrease in the estimated fair value of the warrant liability was recognized as income under “Change in fair value of warrant liability” in the Consolidated Statements of Operations. | |||||||||||||
Revenue Recognition | Revenue Recognition. The Company recognizes revenue when four basic criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the fee is fixed or determinable; and collectability is reasonably assured. The Company has arrangements with multiple revenue-generating elements. The Company analyzes its multiple element arrangements to determine whether the elements can be separated and accounted for individually as separate units of accounting. An item can generally be considered a separate unit of accounting if both of the following criteria are met: (i) the delivered item(s) has value to the customer on a stand-alone basis and (ii) the arrangement includes a general right of return and delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. Items that cannot be divided into separate units are combined with other units of accounting, as appropriate. Consideration received is allocated among the separate units based on the unit’s selling price and is recognized in full when the criteria are met. The Company deems service to be rendered if no continuing obligation exists on the part of the Company. | ||||||||||||
The Company’s revenues are primarily derived from royalties on product sales and licensing agreements, and such agreements may provide for various types of payments, including upfront payments, research funding and related fees during the terms of the agreements, milestone payments based on the achievement of established development objectives and licensing fees. | |||||||||||||
The Company receives royalties from licensees based on third-party sales. The royalties are recorded as earned in accordance with the contract terms when third-party results are reliably measured and collectability is reasonably assured. | |||||||||||||
Revenues associated with non-refundable up-front license fees under arrangements where the license fees cannot be accounted for as separate units of accounting are deferred and recognized as revenues on a straight-line basis over the expected term of the Company’s continued involvement. Revenues from the achievement of milestones are recognized as revenues when the milestones are achieved and the milestone payments are due and collectible. | |||||||||||||
The Company allocates revenue in multiple-deliverable revenue arrangements using estimated selling prices of the delivered goods and services based on the relative selling price method. | |||||||||||||
Research and Development Expenses | Research and Development Expenses. Research and development expenses include salaries, benefits, facility costs, services provided by outside consultants and contractors, administrative costs and materials for the Company’s research and development activities. The Company expenses these research and development activities as they are incurred. | ||||||||||||
The Company accrues and expenses the costs for clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with contract research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to progress or stage of completion of trials or services and the agreed upon fee to be paid for such services. Costs of setting up clinical trial sites for participation in the trials are expensed immediately as research and development expenses. Clinical trial site costs related to patient enrollment are accrued as patients are entered into the trial. | |||||||||||||
General and Administrative Expenses | General and Administrative Expenses. General and administrative expenses include salaries, benefits, facility costs, services provided by outside consultants and contractors, legal services, advertising and marketing, investor relations, financial reporting, materials and other expenses related to general corporate and sales and marketing activities. The Company recognizes such costs as they are incurred. | ||||||||||||
Cost of Revenues | Cost of Revenues. The Company recognizes royalties to third parties and the cost of inventory shipped related to the sale of the Company’s products when they are incurred. | ||||||||||||
Stock-Based Compensation | Stock-Based Compensation. The Company’s stock-based compensation programs consist of stock options granted to employees as well as our employee stock purchase plan, based on the grant date fair value of those awards. | ||||||||||||
The grant date fair value of the award is recognized as expense over the requisite service period. The Company uses the Black-Sholes option pricing model to compute the estimated fair value of stock option awards. Using this model, fair value is calculated based on assumptions with respect to: expected volatility of our common stock price: the periods of time over which employees and members of our board are expected to hold their options prior to exercise; expected dividend yield on our common stock; and risk-free interest rates. Stock-based compensation expense also includes an estimate, which is made at the time of grant, of the number of awards that are expected to be forfeited. The estimate is revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
See Note 12, “Stock-Based Compensation” for further discussion of employee stock-based compensation. | |||||||||||||
The Company occasionally issues stock options and warrants to consultants of the Company in exchange for services. The Company has valued these options and warrants using the Black-Scholes option pricing model, at each reporting period and has recorded charges to operations over the vesting periods of the individual stock options or warrants. Such charges amounted to approximately $1,000, $8,000 and $56,000 during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Net Income (Loss) per Share | Net Income (Loss) per Share. Basic net income (loss) per share has been computed using the weighted-average number of common shares outstanding during the period. Dilutive net income (loss) per share is computed using the sum of the weighted-average number of common shares outstanding and the potential number of dilutive common shares outstanding during the period. Potential common shares consist of the shares issuable upon exercise of stock options and warrants. Potentially dilutive securities have been excluded from the computation of diluted net income (loss) per share in 2014, 2013 and 2012 as their inclusion would be anti-dilutive. | ||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share: | |||||||||||||
Year Ended December 31, | |||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | 26,761 | $ | 5,781 | $ | (8,277 | ) | ||||||
Denominator: | |||||||||||||
Weighted-average shares outstanding | 131,951 | 131,951 | 131,951 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 434 | 482 | — | ||||||||||
Weighted-average shares outstanding for diluted loss | 132,385 | 132,433 | 131,951 | ||||||||||
Net income (loss) per share: | |||||||||||||
Basic | $ | 0.2 | $ | 0.04 | $ | (0.06 | ) | ||||||
Diluted | $ | 0.2 | $ | 0.04 | $ | (0.06 | ) | ||||||
For the year ended December 31, 2012, due to the loss applicable to common stockholders, loss per share is based on the weighted average number of common shares only, as the effect of including equivalent shares from stock options and warrants would be anti-dilutive. At December 31, 2014, 2013 and 2012, 40,179,706, 31,407,604 and 28,156,898 options and warrants, respectively, were excluded from the calculation of diluted earnings per share because the effect was anti-dilutive. | |||||||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss). Comprehensive income (loss) is the change in equity from transactions and other events and circumstances other than those resulting from investments by owners and distributions to owners. The consolidated comprehensive income (loss) for the Company was equal to the net income (loss) attributable to the Company for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
Key Suppliers | Key Suppliers. The Company is dependent on single or limited source suppliers for certain materials used in its research and development and commercial activities. The Company has generally been able to obtain adequate supplies of these components. However, an extended interruption in the supply of these components currently obtained from single or limited source suppliers could adversely affect the Company’s research and development and commercial efforts. | ||||||||||||
Income Taxes | Income Taxes. The Company accounts for income taxes under the liability method; under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. | ||||||||||||
The Company utilizes a two-step approach to recognize and measure uncertain tax positions, if any. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. | |||||||||||||
Significant Customers and Risk | Significant Customers and Risk. All revenues recognized and/or deferred were primarily from AzaSite licensees. The Company is entitled to receive royalty revenues from net sales of AzaSite under the terms of its agreement with Inspire. Inspire was acquired by Merck in May 2011 and subsequently acquired by Akorn in November 2013. Accordingly, all trade receivables are concentrated with these parties during the years ended December 31, 2014, 2013 and 2012. Under the terms of the license with Inspire, Inspire, through its applicable parent company, has significant influence over the commercial success of AzaSite. Revenues from Akorn/Merck represented approximately 98%, 48% and 90% of total revenues for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, in April 2013, the Company sold its rights to receive royalty payments relating to sales of Besivance and the amounts received in this sale represented 50% of the Company’s revenues for the year ended December 31, 2013. | ||||||||||||
Credit Risk | Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and short-term investments. The Company’s cash, cash equivalents and short-term investments are primarily deposited in demand accounts with two financial institutions. | ||||||||||||
Risks from Third Party Manufacturing Concentration | Risks from Third Party Manufacturing Concentration. The Company relies on a single source manufacturer for each of its product candidates and on a single source manufacturer for the active pharmaceutical ingredient in its product candidates. Accordingly, delays in the manufacture of the Company’s product candidates or the active pharmaceutical ingredients could adversely impact the development of the Company’s product candidates. Furthermore, the Company has no control over the manufacture and the overall product supply chain of products for which it is entitled to receive revenue. | ||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. The FASB and the International Accounting Standards Board (“IASB”) initiated a joint project to clarify the principles for recognizing revenue and developed a common revenue recognition standard for U.S. generally accepted accounting principles (“GAAP’) and International Financial Reporting Standards (“IFRS”). Under the guidance, an entity should recognize revenue when the entity satisfies a performance obligation within a contract at a determined transaction price. This update is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company does not expect that the adoption of this standard will materially impact the Company’s consolidated statement of financial position or results of operations. | |||||||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements – Going Concern. This standard includes guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the financial statements are issued. If conditions or events raise substantial doubt, the entity must disclose the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of those conditions or events, and management’s plans to mitigate the conditions or events. This update is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect that the adoption of this standard will materially impact the Company’s consolidated statement of financial position or results of operations. |
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Estimated Fair Value of Warrant Liability | The fair value of the warrant liability was estimated using the following weighted-average assumptions, as determined in accordance with the terms of the warrant agreements, at December 31, 2014 and 2013: | ||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Risk-free interest rate | 0.9 | % | 0.8 | % | |||||||||
Remaining term (years) | 2.4 | 2.5 | |||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||
Volatility | 101.2 | % | 100 | % | |||||||||
Changes in Fair Value of Level Three Financial Liabilities | The following table provides a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the year ended December 31, 2014 and 2013 (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Beginning balance | $ | 1,685 | $ | 2,257 | |||||||||
Initial fair value of warrants as of issuance | 1,003 | — | |||||||||||
Net decrease in fair value of warrant liability on remeasurement | (1,497 | ) | (572 | ) | |||||||||
Ending balance | $ | 1,191 | $ | 1,685 | |||||||||
Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share: | ||||||||||||
Year Ended December 31, | |||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | 26,761 | $ | 5,781 | $ | (8,277 | ) | ||||||
Denominator: | |||||||||||||
Weighted-average shares outstanding | 131,951 | 131,951 | 131,951 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 434 | 482 | — | ||||||||||
Weighted-average shares outstanding for diluted loss | 132,385 | 132,433 | 131,951 | ||||||||||
Net income (loss) per share: | |||||||||||||
Basic | $ | 0.2 | $ | 0.04 | $ | (0.06 | ) | ||||||
Diluted | $ | 0.2 | $ | 0.04 | $ | (0.06 | ) | ||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Laboratory and other equipment | $ | 2,408 | $ | 1,445 | |||||
Leasehold improvements | 663 | 45 | |||||||
Furniture and fixtures | 49 | 14 | |||||||
Construction in Progress | — | 1,115 | |||||||
3,120 | 2,619 | ||||||||
Accumulated depreciation and amortization | (1,523 | ) | (1,188 | ) | |||||
Property and equipment, net | $ | 1,597 | $ | 1,431 | |||||
Secured_Notes_Payable_Tables
Secured Notes Payable (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Outstanding Common Stock Warrants | The following table shows outstanding warrants as of December 31, 2014, issued in the July 2011 private placement financing transaction and in private placement debt financing transactions that closed in the fourth quarter of 2014. All of the outstanding warrants have cashless exercise provisions in the event the registration statement registering the resale of the shares of common stock issuable upon exercise of the warrants is not effective or the prospectus forming a part of the registration statement is not current. All warrants are exercisable for common stock. | ||||||||||||||||
Date Issued | Warrant | Exercise | Expiration Date | Cash if | |||||||||||||
Shares | Price | Exercised | |||||||||||||||
18-Jul-11 | 14,791,376 | $ | 0.75 | July 18, 2016 | $ | 11,093,532 | |||||||||||
9-Oct-14 | 2,053,169 | $ | 0.33 | October 9, 2019 | $ | 677,546 | |||||||||||
21-Nov-14 | 200,620 | $ | 0.31 | November 21, 2019 | $ | 62,192 | |||||||||||
10-Dec-14 | 2,824,281 | $ | 0.26 | 10-Dec-19 | $ | 734,313 | |||||||||||
Total | 19,869,446 | $ | 12,567,583 | ||||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||||||
Outstanding Common Stock Warrants | The Company sold and issued Notes to the Purchasers and issued to the Purchasers warrants to purchase shares of the Company’s common stock, as follows: | ||||||||||||||||
Date Issued | Aggregate Principal | Warrant | Warrant | ||||||||||||||
Amount | Shares | Exercise | |||||||||||||||
Price | |||||||||||||||||
9-Oct-14 | $ | 2.4 million | 2,053,169 | $ | 0.33 | ||||||||||||
21-Nov-14 | $ | 0.2 million | 200,620 | $ | 0.31 | ||||||||||||
10-Dec-14 | $ | 2.6 million | 2,824,281 | $ | 0.26 | ||||||||||||
Total | $ | 5.2 million | 5,078,070 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Future Minimum Lease Payments under Operating Lease and Future Cash Receipts from Sublease | Future minimum lease payments under the operating lease and future cash receipts from the sublease, are as follows (in thousands): | ||||||||||||
Year Ending December 31, | Operating Lease | Operating Sublease | Operating Lease | ||||||||||
Cash Payments | Cash Receipts | Cash Payments, net | |||||||||||
2015 | $ | 709 | $ | 13 | $ | 696 | |||||||
2016 | 736 | — | 736 | ||||||||||
2017 | 762 | — | 762 | ||||||||||
2018 | 788 | — | 788 | ||||||||||
2019 | 815 | — | 815 | ||||||||||
2020 and thereafter | 826 | — | 826 | ||||||||||
$ | 4,636 | $ | 13 | $ | 4,623 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Differences between Income Tax Provision Related to Continuing Operations and Amounts Computed by Applying Statutory Income Tax Rate | Income tax provision related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 34% to pretax loss as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax provision at federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State taxes, net of federal benefit | 0 | % | 0 | % | 0 | % | |||||||
Warrant liability | -1.9 | % | -3.4 | % | 7.8 | % | |||||||
Other permanent differences | 0 | % | 0.1 | % | 0 | % | |||||||
Credits | -4.1 | % | -11.9 | % | 0 | % | |||||||
Credit Reserves | 4.4 | % | 0 | % | 0 | % | |||||||
Expiring net operating losses | 0 | % | 0 | % | -15 | % | |||||||
True up of deferred tax assets | 0 | % | 0 | % | 0 | % | |||||||
Valuation allowance | -32.4 | % | -18.8 | % | -26.8 | % | |||||||
Effective tax rate | 0 | % | 0 | % | 0 | % | |||||||
Significant Components of Deferred Tax Assets for Federal and State Income Taxes | Significant components of the Company’s deferred tax assets for federal and state income taxes as of December 31, 2014 and 2013 were as follows (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 31,342 | $ | 39,555 | |||||||||
Tax credit carryforwards | 7,937 | 8,936 | |||||||||||
Capitalized research and development | 9,244 | 11,746 | |||||||||||
Depreciation | 162 | 165 | |||||||||||
Other | 2,114 | 1,251 | |||||||||||
Total deferred tax assets | 50,799 | 61,653 | |||||||||||
Valuation allowance | (50,799 | ) | (61,653 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
Schedule of Unrecognized Tax Benefits | The Company had the following activity relating to unrecognized tax benefits (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning Balance | — | — | — | ||||||||||
Tax positions related to current year: | |||||||||||||
Additions: | |||||||||||||
Federal | 110 | — | — | ||||||||||
State | 108 | — | — | ||||||||||
Total | 218 | — | — | ||||||||||
Reductions | — | — | — | ||||||||||
Tax positions related to prior years: | |||||||||||||
Additions | |||||||||||||
Federal | 1,179 | — | — | ||||||||||
State | 1,249 | — | — | ||||||||||
Total | 2,428 | — | — | ||||||||||
Reductions | — | — | — | ||||||||||
Settlements | — | — | — | ||||||||||
Lapses in Statutes of Limitations | — | — | — | ||||||||||
Ending Balance | 2,646 | — | — | ||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Stock-Based Compensation | The effect of recording stock-based compensation for the years ended December 31, 2014, 2013 and 2012 was as follows (in thousands): | ||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Stock-based compensation expense by type of award: | |||||||||||||||
Employee stock options | $ | 890 | $ | 926 | $ | 891 | |||||||||
Non-employee stock options Scientific Advisory Board stock options | 1 | 8 | 56 | ||||||||||||
Total stock-based compensation | $ | 891 | $ | 934 | $ | 947 | |||||||||
Stock-Based Compensation Expenses | Stock-based compensation included in expense line items in the Consolidated Statements of Operations for the year ended December 31, 2014, 2013 and 2012 was as follows (in thousands): | ||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Research and development | $ | 351 | $ | 331 | $ | 271 | |||||||||
General and administrative | 540 | 603 | 676 | ||||||||||||
$ | 891 | $ | 934 | $ | 947 | ||||||||||
Weighted-Average Fair Value Assumptions of Stock Options | The fair value of each option grant is estimated using the Black-Scholes valuation model on the date of grant and the graded-vesting method with the following weighted-average assumptions: | ||||||||||||||
Year ended December 31, | |||||||||||||||
Stock Options | 2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 1.7 | % | 0.9 | % | 0.7 | % | |||||||||
Expected term (years) | 5 | 5 | 5 | ||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | |||||||||
Volatility | 88.1 | % | 89.9 | % | 90.9 | % | |||||||||
Summary of Stock Option Activity | The following is a summary of activity under the Company’s stock option plans for the indicated periods: | ||||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | ||||||||||||
shares | Average | Remaining Contractual | Intrinsic | ||||||||||||
Exercise | Term (Years) | Value (in | |||||||||||||
Price | thousands) | ||||||||||||||
Outstanding at December 31, 2011 | 11,003,963 | $0.41 | |||||||||||||
Granted | 4,047,500 | 0.42 | |||||||||||||
Exercised | — | 0 | |||||||||||||
Forfeited | (784,223 | ) | 0.37 | ||||||||||||
Expired | (901,718 | ) | 0.38 | ||||||||||||
Outstanding at December 31, 2012 | 13,365,522 | 0.42 | 7.69 | $ | 156 | ||||||||||
Granted | 4,124,374 | 0.31 | |||||||||||||
Exercised | — | 0 | |||||||||||||
Forfeited | (323,479 | ) | 0.33 | ||||||||||||
Expired | (68,433 | ) | 0.62 | ||||||||||||
Outstanding at December 31, 2013 | 17,097,984 | 0.39 | 7.22 | 195 | |||||||||||
Granted | 3,939,500 | 0.27 | |||||||||||||
Exercised | — | 0 | |||||||||||||
Forfeited | (108,190 | ) | 0.33 | ||||||||||||
Expired | (184,653 | ) | 0.61 | ||||||||||||
Outstanding at December 31, 2014 | 20,744,641 | $0.37 | 6.82 | $ | — | ||||||||||
Options vested and expected to vest at December 31, 2014 | 20,211,174 | $0.37 | 6.76 | $ | — | ||||||||||
Options exercisable at December 31, 2014 | 14,750,731 | $0.39 | 6.04 | $ | — |
Quarterly_Results_Tables
Quarterly Results (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations | The following table is a summary of the quarterly results of operations for the years ended December 31, 2014 and 2013. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The Company’s operating results for any quarter are not necessarily indicative of results for any future period. | ||||||||||||||||
2014 | |||||||||||||||||
(In thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 1,153 | $ | 6,349 | $ | 360 | $ | 352 | |||||||||
Cost of revenues | 138 | 158 | 159 | 123 | |||||||||||||
Gross profit | 1,015 | 6,191 | 201 | 229 | |||||||||||||
Income (loss) from operations | (3,472 | ) | 2,256 | (2,915 | ) | (3,088 | ) | ||||||||||
Net income (loss) | (4,679 | ) | 37,149 | (3,280 | ) | (2,429 | ) | ||||||||||
—basic | $ | (0.04 | ) | $ | 0.28 | $ | (0.02 | ) | $ | (0.02 | ) | ||||||
—diluted | $ | (0.04 | ) | $ | 0.28 | $ | (0.02 | ) | $ | (0.02 | ) | ||||||
2013 | |||||||||||||||||
(In thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 5,260 | $ | 19,240 | $ | 5,254 | $ | 1,068 | |||||||||
Cost of revenues | 85 | 167 | 130 | 3 | |||||||||||||
Gross profit | 5,175 | 19,073 | 5,124 | 1,065 | |||||||||||||
Income (loss) from operations | 355 | 13,972 | 1,319 | (2,541 | ) | ||||||||||||
Net income (loss) | (1,921 | ) | 12,116 | 579 | (4,993 | ) | |||||||||||
—basic | $ | (0.01 | ) | $ | 0.09 | $ | 0 | $ | (0.04 | ) | |||||||
—diluted | $ | (0.01 | ) | $ | 0.09 | $ | 0 | $ | (0.04 | ) |
Business_and_Summary_of_Signif3
Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Accumulated deficit | ($175,262,000) | ($202,023,000) | ||
Cash and cash equivalents | 1,656,000 | 3,251,000 | 1,323,000 | 1,900,000 |
Depreciation and amortization expense | 335,000 | 107,000 | 95,000 | |
Impairment of property and equipment | 0 | 0 | 0 | |
Amortization of debt issuance costs | 405,000 | 418,000 | 419,000 | |
Stock-based compensation | 891,000 | 934,000 | 947,000 | |
Shares of options and warrants excluded from calculation of diluted earnings per share | 40,179,706 | 31,407,604 | 28,156,898 | |
Minimum [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful lives | 3 years | |||
Maximum [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful lives | 5 years | |||
Ophthalmic [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of operating segment | 1 | |||
Level 3 [Member] | Fair Value on Recurring Basis [Member] | Warrant [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Expected dividend yield on warrant liabilities | 0.00% | 0.00% | ||
Cash dividends | 0 | |||
Fair value of liabilities, volatility rate description | Expected volatility is based on the historical volatility of the Company's common stock and is equal to the greater of 100% or the 30-day volatility rate. | |||
Fair value of liabilities, expected volatility rate | 101.20% | 100.00% | ||
Fair value of liabilities, duration of volatility rate | 30 days | |||
Level 1 [Member] | Fair Value on Recurring Basis [Member] | U.S. Treasury-backed Money Market Funds [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents and short-term investments, at fair value | 100,000 | 8,200,000 | ||
Patents [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Capitalized costs | 0 | 0 | ||
Akorn/Merck [Member] | Sales Revenue [Member] | Revenue from Rights Concentration Risk [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Percentage of total revenues | 98.00% | 48.00% | 90.00% | |
Besivance [Member] | Sales Revenue [Member] | Revenue from Rights Concentration Risk [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Percentage of total revenues | 50.00% | |||
Scientific Advisory Board Stock Options [Member] | ||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Stock-based compensation | $1,000 | $8,000 | $56,000 |
Business_and_Summary_of_Signif4
Business and Summary of Significant Accounting Policies - Estimated Fair Value of Warrant Liability (Detail) (Warrant [Member], Level 3 [Member], Fair Value on Recurring Basis [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Warrant [Member] | Level 3 [Member] | Fair Value on Recurring Basis [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Risk-free interest rate | 0.90% | 0.80% |
Remaining term (years) | 2 years 4 months 24 days | 2 years 6 months |
Expected dividends | 0.00% | 0.00% |
Volatility | 101.20% | 100.00% |
Business_and_Summary_of_Signif5
Business and Summary of Significant Accounting Policies - Changes in Fair Value of Level Three Financial Liabilities (Detail) (Warrant [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Warrant [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | $1,685 | $2,257 | $6,400 |
Initial fair value of warrants as of issuance | 1,003 | ||
Net decrease in fair value of warrant liability on remeasurement | -1,497 | -572 | |
Ending balance | $1,191 | $1,685 | $6,400 |
Business_and_Summary_of_Signif6
Business and Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net income (loss) | ($2,429) | ($3,280) | $37,149 | ($4,679) | ($4,993) | $579 | $12,116 | ($1,921) | $26,761 | $5,781 | ($8,277) |
Denominator: | |||||||||||
Weighted-average shares outstanding | 131,951 | 131,951 | 131,951 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options | 434 | 482 | |||||||||
Weighted-average shares outstanding for diluted loss | 132,385 | 132,433 | 131,951 | ||||||||
Net income (loss) per share: | |||||||||||
Basic | ($0.02) | ($0.02) | $0.28 | ($0.04) | ($0.04) | $0 | $0.09 | ($0.01) | $0.20 | $0.04 | ($0.06) |
Diluted | ($0.02) | ($0.02) | $0.28 | ($0.04) | ($0.04) | $0 | $0.09 | ($0.01) | $0.20 | $0.04 | ($0.06) |
License_Agreements_Additional_
License Agreements - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Apr. 30, 2013 | Feb. 15, 2007 | Aug. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jun. 10, 2014 | |
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Revenue from royalties | $2,005,000 | $14,787,000 | $21,641,000 | ||||||||
Amendment fee | 6,000,000 | ||||||||||
Other product and service revenues | 209,000 | 545,000 | |||||||||
Cost of revenues, principally royalties to third parties | 578,000 | 385,000 | 1,062,000 | ||||||||
Besivance [Member] | |||||||||||
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Rights to receive royalty payments | 1,000,000 | 15,000,000 | |||||||||
Patent expire year | 2021 | ||||||||||
Bausch & Lomb [Member] | |||||||||||
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Revenue from royalties | 500,000 | 2,126,000 | |||||||||
Akorn [Member] | |||||||||||
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Revenue from royalties | 2,000,000 | 14,300,000 | 19,500,000 | ||||||||
Percentage of royalty on net sales | 25.00% | ||||||||||
Royalties payment description | Akorn is obligated to pay the Company royalties under the Akorn License for the longer of (i) eleven years from the launch of the first product or (ii) the period during which a valid claim under a patent exists. Until September 30, 2013, Merck paid the Company certain minimum royalties. | ||||||||||
Royalties payment period from launch of first product | 11 years | ||||||||||
Notice period of royalty agreement with Merck | 6 months | ||||||||||
Supply Agreement termination date | 2012-07 | ||||||||||
Other product and service revenues | 100,000 | 500,000 | |||||||||
Merck [Member] | |||||||||||
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Additional royalties earned | 7,300,000 | ||||||||||
Minimum royalties received | 19,000,000 | 17,000,000 | 15,000,000 | ||||||||
Pfizer Inc [Member] | |||||||||||
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Cost of revenues, principally royalties to third parties | 500,000 | 400,000 | 1,100,000 | ||||||||
Akorn, Inc. [Member] | |||||||||||
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Amendment fee | 6,000,000 | ||||||||||
AzaSite [Member] | |||||||||||
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Amendment fee | $6,000,000 | ||||||||||
Royalty description | (1) 8.0% on net sales less than $20.0 million, subject to increase to 9.0% in the event that Akorn enters into certain settlements with third parties seeking to launch generic versions of AzaSite, (2) 12.5% on net sales greater than or equal to $20.0 million and less than or equal to $50.0 million and (3) 15.0% on net sales in excess of $50.0 million. | ||||||||||
AzaSite Xtra [Member] | |||||||||||
Intangible Assets Goodwill And Other Assets [Line Items] | |||||||||||
Royalty description | The royalty would be 12.5% on net sales less than $30.0 million and 15.0% on net sales greater than or equal to $30.0 million. |
Shortterm_Investments_Addition
Short-term Investments - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments Schedule [Abstract] | ||
Short-term investments | $0 | $5,000 |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts Receivable Net [Line Items] | ||
Bad debt allowance | $0 | $0 |
Akorn [Member] | ||
Accounts Receivable Net [Line Items] | ||
Accounts receivable | 300,000 | |
Besivance [Member] | ||
Accounts Receivable Net [Line Items] | ||
Accounts receivable | $1,000,000 |
Property_and_Equipment_Net_Sum
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $3,120 | $2,619 |
Accumulated depreciation and amortization | -1,523 | -1,188 |
Property and equipment, net | 1,597 | 1,431 |
Laboratory and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,408 | 1,445 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 663 | 45 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 49 | 14 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $1,115 |
Warrant_Liability_Additional_I
Warrant Liability - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||||||||
Dec. 10, 2014 | Nov. 21, 2014 | Oct. 09, 2014 | Jul. 18, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 10, 2014 | Nov. 21, 2014 | Oct. 09, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 18, 2011 | |
Class of Warrant or Right [Line Items] | ||||||||||||
Gross proceeds from private placement | $22,200,000 | |||||||||||
Net proceeds from private placement | 20,400,000 | |||||||||||
Common Stock [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Number of common stock sold | 36,978,440 | |||||||||||
Selling price per share | $0.60 | $0.60 | ||||||||||
Number of warrants issued to purchase common stock | 2,824,281 | 200,620 | 2,053,169 | 14,791,376 | 5,078,070 | 2,824,281 | 200,620 | 2,053,169 | 14,791,376 | |||
Warrant [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants exercise price | $0.26 | $0.31 | $0.33 | $0.75 | $0.26 | $0.31 | $0.33 | $0.75 | ||||
Expiration period of warrants | 5 years | 5 years | 5 years | 5 years | ||||||||
Warrant liability | 1,191,000 | 1,685,000 | 2,257,000 | 6,400,000 | ||||||||
Decrease in warrant liability | ($1,497,000) | ($572,000) |
Lease_Incentive_Additional_Inf
Lease Incentive - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Aug. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Lease Liability [Line Items] | |||
Terms of lease extended | Under the terms of the amendment, the term of the Company's lease was extended until December 2020 | ||
Lease incentive | $928,000 | $922,000 | |
Lease incentive, current | 186,000 | 154,000 | |
Reimbursement from Legacy Partners | 1,114,000 | ||
Legacy Partners [Member] | |||
Lease Liability [Line Items] | |||
Reimbursement from Legacy Partners | 0 | 1,100,000 | |
Leasehold Improvements [Member] | |||
Lease Liability [Line Items] | |||
Eligible receipts for leasehold improvements | 1,300,000 | 200,000 | 1,100,000 |
Lease Incentives [Member] | |||
Lease Liability [Line Items] | |||
Lease incentive | 900,000 | ||
Lease incentive, current | $200,000 |
Secured_Notes_Payable_Addition
Secured Notes Payable - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended |
Feb. 29, 2008 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 10, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Debt Instrument Aggregate Principal amount | $60,000,000 | ||||
Non-recourse secured notes payable, maturity year | 2019 | ||||
Debt instrument interest rate | 16.00% | ||||
Net proceeds from issuance of secured notes payable | 55,300,000 | ||||
Payments of transaction costs | 4,700,000 | ||||
Secured notes, interest payment due date | 15-Feb-14 | 15-May-14 | |||
Secured notes payable | 41,300,000 | ||||
Non-recourse single payment | 6,000,000 | ||||
Extinguishment of debt remaining principal amount | 36,047,000 | ||||
Gain on extinguishment of debt | 35,999,000 | ||||
Placement agent and legal fees | 500,000 | ||||
Initial Valuation of Non-Cash Warrants Issued | 1,000,000 | ||||
Note Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Non-recourse single payment | 6,000,000 | ||||
Extinguishment of debt remaining principal amount | 41,300,000 | ||||
Extinguishment of accrued interest amount debt | 2,800,000 | ||||
Debt issuance costs | 2,100,000 | ||||
Non-cash financing activities - Debt extinguishment [Member] | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt remaining principal amount | 35,300,000 | ||||
Extinguishment of accrued interest amount debt | 2,800,000 | ||||
Write-off of debt issuance costs | 2,100,000 | ||||
Gain on extinguishment of debt | 36,000,000 | ||||
Gain on extinguishment of debt basic and diluted net income per share | $0.27 | ||||
Senior Secured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional warrants connection with notes, expiration date | 9-Oct-16 | ||||
Senior Secured Notes [Member] | Loan Purchase Commitments [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Aggregate Principal amount | 7,800,000 | 7,800,000 | |||
Senior Secured Notes [Member] | Securities Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Aggregate Principal amount | 15,000,000 | 15,000,000 | |||
Proceeds from issuance of notes | 2,600,000 | ||||
Debt instrument maturity, description | The Notes have a maturity date of one year from the date of issuance, which may be extended for one year at the option of the Company. | ||||
Senior Secured Notes [Member] | Riverbank Capital Securities [Member] | Securities Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments for offering of notes | 311,800 | ||||
Maximum [Member] | Note Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Legal and professional fees | $100,000 | ||||
Maximum [Member] | Senior Secured Notes [Member] | Securities Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 14.00% | 14.00% | |||
Maximum [Member] | Senior Secured Notes [Member] | Riverbank Capital Securities [Member] | Securities Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of commission received upon issue of warrants | 6.00% | 6.00% | |||
Minimum [Member] | Senior Secured Notes [Member] | Securities Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 12.00% | 12.00% |
Secured_Notes_Payable_Outstand
Secured Notes Payable - Outstanding Common Stock Warrants (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Feb. 29, 2008 | Dec. 10, 2014 | Nov. 21, 2014 | Oct. 09, 2014 | Jul. 18, 2011 | |
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount | $60,000,000 | |||||
Warrant [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount | 5,200,000 | |||||
Warrant Exercise Price | $0.26 | $0.31 | $0.33 | $0.75 | ||
Warrant [Member] | Warrants Issued On October Nine Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Date Issued | 9-Oct-14 | |||||
Warrant Exercise Price | $0.33 | |||||
Warrant [Member] | Warrants Issued On November Twenty One Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Date Issued | 21-Nov-14 | |||||
Warrant Exercise Price | $0.31 | |||||
Warrant [Member] | Warrants Issued On December Ten Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Date Issued | 10-Dec-14 | |||||
Warrant Exercise Price | $0.26 | |||||
Warrant [Member] | Securities Purchase Agreement [Member] | Warrants Issued On October Nine Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Date Issued | 9-Oct-14 | |||||
Aggregate Principal Amount | 2,400,000 | |||||
Warrant Exercise Price | $0.33 | |||||
Warrant [Member] | Securities Purchase Agreement [Member] | Warrants Issued On November Twenty One Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Date Issued | 21-Nov-14 | |||||
Aggregate Principal Amount | 200,000 | |||||
Warrant Exercise Price | $0.31 | |||||
Warrant [Member] | Securities Purchase Agreement [Member] | Warrants Issued On December Ten Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Date Issued | 10-Dec-14 | |||||
Aggregate Principal Amount | $2,600,000 | |||||
Warrant Exercise Price | $0.26 | |||||
Common Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrant Shares | 5,078,070 | 2,824,281 | 200,620 | 2,053,169 | 14,791,376 | |
Common Stock [Member] | Warrants Issued On October Nine Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrant Shares | 2,053,169 | |||||
Common Stock [Member] | Warrants Issued On November Twenty One Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrant Shares | 200,620 | |||||
Common Stock [Member] | Warrants Issued On December Ten Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrant Shares | 2,824,281 | |||||
Common Stock [Member] | Securities Purchase Agreement [Member] | Warrants Issued On October Nine Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrant Shares | 2,053,169 | |||||
Common Stock [Member] | Securities Purchase Agreement [Member] | Warrants Issued On November Twenty One Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrant Shares | 200,620 | |||||
Common Stock [Member] | Securities Purchase Agreement [Member] | Warrants Issued On December Ten Two Thousand And Fourteen [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrant Shares | 2,824,281 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Estimated royalties due | $1,800,000 | ||
Rent expense | $314,000 | $583,000 | $697,000 |
Non-cancelable operating lease [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease agreements expiration date | 31-Dec-20 | ||
Sublease [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease agreements expiration date | 31-Jan-15 | ||
Beginning of Period [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Estimated royalties due period | 2015 | ||
End of Period [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Estimated royalties due period | 2018 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Operating Lease and Future Cash Receipts from Sublease (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Lease Cash Payments, net, 2015 | $709 |
Operating Lease Cash Payments, net, 2016 | 736 |
Operating Lease Cash Payments, net, 2017 | 762 |
Operating Lease Cash Payments, net, 2018 | 788 |
Operating Lease Cash Payments, net, 2019 | 815 |
Operating Lease Cash Payments, 2020 and thereafter | 826 |
Operating Lease Cash Payments, Total | 4,636 |
Operating Sublease Cash Receipts, 2015 | 13 |
Operating Sublease Cash Receipts, 2016 | 0 |
Operating Sublease Cash Receipts, 2017 | 0 |
Operating Sublease Cash Receipts, 2018 | 0 |
Operating Sublease Cash Receipts, 2019 | 0 |
Operating Sublease Cash Receipts, 2020 and thereafter | 0 |
Operating Sublease Cash Receipts, Total | 13 |
Operating Lease Cash Payments, 2015 | 696 |
Operating Lease Cash Payments, 2016 | 736 |
Operating Lease Cash Payments, 2017 | 762 |
Operating Lease Cash Payments, 2018 | 788 |
Operating Lease Cash Payments, 2019 | 815 |
Operating Lease Cash Payments, 2020 and thereafter | 826 |
Operating Lease Cash Payments, Total | $4,623 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Provision for income taxes | $0 | $0 | $0 |
Tax provision at federal statutory rate | 34.00% | 34.00% | 34.00% |
Changes in valuation allowance | -10,900,000 | -1,000,000 | |
Unrecognized tax benefits, Interest or penalties recognized | 0 | 0 | |
Federal Income Tax [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 80,400,000 | ||
Net operating loss carryforwards expiration beginning period | 2022 | ||
Net operating loss carryforwards expiration ending period | 2034 | ||
Tax credits carryforwards amount | 5,200,000 | ||
Tax credits expiration beginning period | 2018 | ||
Tax credits expiration ending period | 2034 | ||
State Taxes and Others [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 66,700,000 | ||
Net operating loss carryforwards expiration beginning period | 2016 | ||
Net operating loss carryforwards expiration ending period | 2034 | ||
State Taxes and Others [Member] | Carry Forward Indefinitely [Member] | |||
Income Taxes [Line Items] | |||
Tax credits carryforwards amount | $5,400,000 |
Income_Taxes_Differences_betwe
Income Taxes - Differences between Income Tax Provision Related to Continuing Operations and Amounts Computed by Applying Statutory Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Tax provision at federal statutory rate | 34.00% | 34.00% | 34.00% |
State taxes, net of federal benefit | 0.00% | 0.00% | 0.00% |
Other permanent differences | 0.00% | 0.10% | 0.00% |
Credits | -4.10% | -11.90% | 0.00% |
True up of deferred tax assets | 0.00% | 0.00% | 0.00% |
Valuation allowance | -32.40% | -18.80% | -26.80% |
Effective tax rate | 0.00% | 0.00% | 0.00% |
Warrant Liability [Member] | |||
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Other adjustments | -1.90% | -3.40% | 7.80% |
Credit Reserves [Member] | |||
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Other adjustments | 4.40% | 0.00% | 0.00% |
Expiring Net Operating Losses [Member] | |||
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Other adjustments | 0.00% | 0.00% | -15.00% |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Tax Assets for Federal and State Income Taxes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carryforwards | $31,342 | $39,555 |
Tax credit carryforwards | 7,937 | 8,936 |
Capitalized research and development | 9,244 | 11,746 |
Depreciation | 162 | 165 |
Other | 2,114 | 1,251 |
Total deferred tax assets | 50,799 | 61,653 |
Valuation allowance | -50,799 | -61,653 |
Net deferred tax assets | $0 | $0 |
Income_Taxes_Schedule_of_Unrec
Income Taxes - Schedule of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Beginning Balance | $0 | ||
Tax positions related to current year, Additions | 218 | ||
Tax positions related to current year, Reductions | 0 | 0 | 0 |
Tax positions related to prior years, Additions | 2,428 | ||
Tax positions related to prior years, Reductions | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Lapses in Statutes of Limitations | 0 | 0 | 0 |
Ending Balance | 2,646 | 0 | |
Federal [Member] | |||
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Tax positions related to current year, Additions | 110 | ||
Tax positions related to prior years, Additions | 1,179 | ||
State [Member] | |||
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Tax positions related to current year, Additions | 108 | ||
Tax positions related to prior years, Additions | $1,249 |
Common_Stock_Warrants_Outstand
Common Stock Warrants - Outstanding Common Stock Warrants (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 10, 2014 | Nov. 21, 2014 | Oct. 09, 2014 | Jul. 18, 2011 | |
Warrant [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise Price | $0.26 | $0.31 | $0.33 | $0.75 | |
Cash if Exercised | $12,567,583 | ||||
Warrant [Member] | Warrants Issued On July Eighteen Two Thousand And Eleven [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Date Issued | 18-Jul-11 | ||||
Exercise Price | $0.75 | ||||
Expiration Date | 18-Jul-16 | ||||
Cash if Exercised | 11,093,532 | ||||
Warrant [Member] | Warrants Issued On October Nine Two Thousand And Fourteen [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Date Issued | 9-Oct-14 | ||||
Exercise Price | $0.33 | ||||
Expiration Date | 9-Oct-19 | ||||
Cash if Exercised | 677,546 | ||||
Warrant [Member] | Warrants Issued On November Twenty One Two Thousand And Fourteen [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Date Issued | 21-Nov-14 | ||||
Exercise Price | $0.31 | ||||
Expiration Date | 21-Nov-19 | ||||
Cash if Exercised | 62,192 | ||||
Warrant [Member] | Warrants Issued On December Ten Two Thousand And Fourteen [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Date Issued | 10-Dec-14 | ||||
Exercise Price | $0.26 | ||||
Expiration Date | 10-Dec-19 | ||||
Cash if Exercised | $734,313 | ||||
Common Stock [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant Shares | 5,078,070 | 2,824,281 | 200,620 | 2,053,169 | 14,791,376 |
Common Stock [Member] | Warrants Issued On July Eighteen Two Thousand And Eleven [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant Shares | 14,791,376 | ||||
Common Stock [Member] | Warrants Issued On October Nine Two Thousand And Fourteen [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant Shares | 2,053,169 | ||||
Common Stock [Member] | Warrants Issued On November Twenty One Two Thousand And Fourteen [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant Shares | 200,620 | ||||
Common Stock [Member] | Warrants Issued On December Ten Two Thousand And Fourteen [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant Shares | 2,824,281 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Term | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, Performance Incentive Plan expiration period | 10 years | |||
Options vested, Performance Incentive Plan one year in percentage | 25.00% | |||
Balance options vested in daily basis | 3 years | |||
Unvested options terminate and vested options generally expire | 3 months | |||
Common stock available for issuance and increased percentage of the total | 2.00% | |||
Common stock shares available for issuance outstanding | 3,000,000 | |||
Purchase Plan, offering periods | 24 months | |||
Purchase Plan, number of purchase periods | 4 | |||
Purchase Plan, purchase periods | 6 months | |||
Percentage of fair market value of common stock purchased under Purchase Plan | 85.00% | |||
Maximum percentage of each employee's eligible compensation that can contribute into Purchase Plan | 10.00% | |||
Percentage of shares available for issuance increased amount for the first trading day in January each calendar year | 0.50% | |||
Number of shares issued under Purchase Plan since 2009 | 0 | |||
Unrecorded deferred stock-based compensation expense related to Purchase Plan | $0 | |||
Shares reserved for issuance under Purchase Plan | 515,183 | |||
Common stock, shares granted options to purchase | 3,939,500 | 4,124,374 | 4,047,500 | |
Common stock, shares estimated total grant date fair value | 700,000 | 900,000 | ||
Common stock, shares annualized forfeiture rate | 10.00% | |||
Stock-based compensation not expected to vest | 200,000 | 300,000 | ||
Unrecorded deferred stock-based compensation | $1,000,000 | $1,200,000 | ||
Recognized estimated weighted-average amortization period | 2 years 4 months 24 days | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Common stock, shares available for grant or issuance under 2007 Plan | 3,513,717 | |||
Weighted average fair value options granted | $0.19 | $0.21 | $0.29 | |
Options exercised | 0 | 0 | 0 | |
Number of share options exercisable | 14,750,731 | 11,094,139 | 7,752,944 | |
Weighted-average exercise price of options exercisable | $0.39 | $0.41 | $0.42 | |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annually increased number of shares available for issuance under Purchase Plan | 125,000 |
StockBased_Compensation_StockB
Stock-Based Compensation - Stock-Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Total stock-based compensation | $891 | $934 | $947 |
Employee Stock Options [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Total stock-based compensation | 890 | 926 | 891 |
Non-employee Stock Options Scientific Advisory Board Stock Options [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Total stock-based compensation | $1 | $8 | $56 |
StockBased_Compensation_StockB1
Stock-Based Compensation - Stock-Based Compensation Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $891 | $934 | $947 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 351 | 331 | 271 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $540 | $603 | $676 |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted-Average Fair Value Assumptions of Stock Options (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.70% | 0.90% | 0.70% |
Expected term (years) | 5 years | 5 years | 5 years |
Expected dividends | 0.00% | 0.00% | 0.00% |
Volatility | 88.10% | 89.90% | 90.90% |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Number of shares | |||
Outstanding at beginning balance | 17,097,984 | 13,365,522 | 11,003,963 |
Granted | 3,939,500 | 4,124,374 | 4,047,500 |
Exercised | 0 | 0 | 0 |
Forfeited | -108,190 | -323,479 | -784,223 |
Expired | -184,653 | -68,433 | -901,718 |
Outstanding at ending balance | 20,744,641 | 17,097,984 | 13,365,522 |
Options vested and expected to vest at ending balance | 20,211,174 | ||
Options exercisable at ending balance | 14,750,731 | 11,094,139 | 7,752,944 |
Weighted-Average Exercise Price | |||
Outstanding at beginning balance | $0.39 | $0.42 | $0.41 |
Granted | $0.27 | $0.31 | $0.42 |
Exercised | $0 | $0 | $0 |
Forfeited | $0.33 | $0.33 | $0.37 |
Expired | $0.61 | $0.62 | $0.38 |
Outstanding at ending balance | $0.37 | $0.39 | $0.42 |
Options vested and expected to vest at ending balance | $0.37 | ||
Options exercisable at ending balance | $0.39 | $0.41 | $0.42 |
Weighted-Average Remaining Contractual Term (Years) | |||
Outstanding at ending balance | 6 years 9 months 26 days | 7 years 2 months 19 days | 7 years 8 months 9 days |
Options vested and expected to vest at ending balance | 6 years 9 months 4 days | ||
Options exercisable at ending balance | 6 years 15 days | ||
Aggregate Intrinsic Value | |||
Outstanding at ending balance | $195 | $156 |
Legal_Proceedings_Additional_I
Legal Proceedings - Additional Information (Detail) | 0 Months Ended | |||
Jun. 14, 2013 | Apr. 30, 2011 | 31-May-13 | 26-May-11 | |
Patent | Patent | Patent | ||
Legal Proceedings [Line Items] | ||||
Number of patents infringed | 5 | |||
Maximum [Member] | ||||
Legal Proceedings [Line Items] | ||||
Period for filing of lawsuit | 30 months | |||
Company [Member] | ||||
Legal Proceedings [Line Items] | ||||
Number of patents infringed | 4 | 3 | 3 | |
Pfizer Inc [Member] | ||||
Legal Proceedings [Line Items] | ||||
Number of patents infringed | 1 | 1 | 1 |
Quarterly_Results_Quarterly_Re
Quarterly Results - Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $352 | $360 | $6,349 | $1,153 | $1,068 | $5,254 | $19,240 | $5,260 | $8,214 | $30,822 | $21,641 |
Cost of revenues | 123 | 159 | 158 | 138 | 3 | 130 | 167 | 85 | |||
Gross profit | 229 | 201 | 6,191 | 1,015 | 1,065 | 5,124 | 19,073 | 5,175 | |||
Income (loss) from operations | -3,088 | -2,915 | 2,256 | -3,472 | -2,541 | 1,319 | 13,972 | 355 | -7,219 | 13,105 | -681 |
Net income (loss) | ($2,429) | ($3,280) | $37,149 | ($4,679) | ($4,993) | $579 | $12,116 | ($1,921) | $26,761 | $5,781 | ($8,277) |
-basic | ($0.02) | ($0.02) | $0.28 | ($0.04) | ($0.04) | $0 | $0.09 | ($0.01) | $0.20 | $0.04 | ($0.06) |
-diluted | ($0.02) | ($0.02) | $0.28 | ($0.04) | ($0.04) | $0 | $0.09 | ($0.01) | $0.20 | $0.04 | ($0.06) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Nicox [Member], Subsequent Events [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 29, 2015 |
Nicox [Member] | Subsequent Events [Member] | |
Subsequent Event [Line Items] | |
License agreement terms | On January 29, 2015, the Company entered into a license agreement with Nicox S.A. ("Nicox"), a France-based publicly traded company, for the development and commercialization of AzaSite (1% azithromycin), AzaSite Xtra (2% azithromycin) and BromSite (0.075% bromfenac) in Europe, Middle East and Africa (105 total countries). |
License agreement date | 29-Jan-15 |
Upfront payment received | $3 |
Potential future upfront license payments to be received | 13.75 |
Royalty description | Mid-single digit to double-digit royalties on the net sales. |
Employee product assistance service reimbursement | $3.60 |
Development cost percentage | 50.00% |