Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 27, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | HERON THERAPEUTICS, INC. /DE/ | |
Entity Central Index Key | 818,033 | |
Trading Symbol | hrtx | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 39,187,594 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 45,640,000 | $ 75,180,000 |
Short-term investments | 43,279,000 | 55,986,000 |
Inventory | 1,983,000 | |
Prepaid expenses and other current assets | 3,072,000 | 3,585,000 |
Total current assets | 93,974,000 | 134,751,000 |
Property and equipment, net | 4,702,000 | 3,049,000 |
Other assets | 130,000 | 45,000 |
Total assets | 98,806,000 | 137,845,000 |
Current liabilities: | ||
Accounts payable | 6,090,000 | 3,300,000 |
Accrued clinical liabilities | 9,839,000 | 5,231,000 |
Accrued payroll and employee liabilities | 8,641,000 | 4,828,000 |
Other accrued liabilities | 3,624,000 | 4,154,000 |
Convertible notes payable to related parties, net of discount | 2,732,000 | 2,222,000 |
Total current liabilities | 30,926,000 | 19,735,000 |
Notes Payable, Related Parties, Noncurrent | 50,000,000 | |
Total liabilities | 80,926,000 | 19,735,000 |
Stockholders’ equity: | ||
Common stock | 391,000 | 361,000 |
Additional paid-in capital | 555,514,000 | 530,617,000 |
Accumulated other comprehensive loss | (17,000) | (40,000) |
Accumulated deficit | (538,008,000) | (412,828,000) |
Total stockholders’ equity | 17,880,000 | 118,110,000 |
Total liabilities and stockholders’ equity | $ 98,806,000 | $ 137,845,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating expenses: | ||||
Research and development | $ 30,242 | $ 14,241 | $ 73,620 | $ 44,920 |
General and administrative | 5,333 | 4,127 | 15,474 | 11,796 |
Sales and marketing | 12,159 | 4,123 | 35,018 | 9,149 |
Total operating expenses | 47,734 | 22,491 | 124,112 | 65,865 |
Loss from operations | (47,734) | (22,491) | (124,112) | (65,865) |
Other expense, net | (775) | (181) | (1,068) | (484) |
Net loss | (48,509) | (22,672) | (125,180) | (66,349) |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on short-term investments | (16) | 23 | ||
Comprehensive loss | $ (48,525) | $ (22,672) | $ (125,157) | $ (66,349) |
Basic and diluted net loss per share (in dollars per share) | $ (1.24) | $ (0.63) | $ (3.34) | $ (2.07) |
Shares used in computing basic and diluted net loss per share (in shares) | 39,113 | 35,773 | 37,470 | 32,090 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net loss | $ (125,180,000) | $ (66,349,000) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Stock-based compensation expense | 18,697,000 | 8,512,000 |
Depreciation and amortization | 793,000 | 498,000 |
Amortization of Debt Discount (Premium) | 510,000 | 463,000 |
Amortization of premium on short-term investments | 219,000 | |
Gain on disposal of property and equipment | (118,000) | |
Changes in operating assets and liabilities: | ||
Inventory | (1,983,000) | |
Prepaid expenses and other assets | 428,000 | (993,000) |
Accounts payable | 2,790,000 | 186,000 |
Accrued clinical liabilities | 4,608,000 | 1,356,000 |
Accrued payroll and employee-related liabilities | 3,813,000 | 658,000 |
Other accrued liabilities | (271,000) | 411,000 |
Net cash used for operating activities | (95,576,000) | (55,376,000) |
Investing activities: | ||
Purchases of short-term investments | (43,318,000) | |
Maturities of short-term investments | 55,829,000 | |
Purchases of property and equipment | (2,446,000) | (783,000) |
Proceeds from sale of property and equipment | 241,000 | |
Net cash provided by (used for) investing activities | 10,065,000 | (542,000) |
Financing activities: | ||
Proceeds from purchases under the Employee Stock Purchase Plan | 251,000 | 118,000 |
Proceeds from stock option exercises | 5,720,000 | 7,915,000 |
Proceeds from issuance of promissory note payable | 50,000,000 | |
Net proceeds from sale of common stock | 128,199,000 | |
Net cash provided by financing activities | 55,971,000 | 136,232,000 |
Net (decrease) increase in cash and cash equivalents | (29,540,000) | 80,314,000 |
Cash and cash equivalents at beginning of period | 75,180,000 | 72,675,000 |
Cash and cash equivalents at end of period | 45,640,000 | 152,989,000 |
Supplemental disclosure of cash flow information: | ||
Interest paid | $ 622,000 |
Note 1 - Business
Note 1 - Business | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Business Overview Heron Therapeutics, Inc. is a biotechnology company focused on improving the lives of patients by developing best-in-class medicines that address major unmet medical needs. We are developing novel, patient-focused solutions that apply our innovative science and technologies to already-approved pharmacological agents. On August 9, 2016, our first commercial product, SUSTOL® (granisetron) extended-release injection (“SUSTOL”) was approved by the U.S. Food and Drug Administration (“FDA”). SUSTOL is indicated, in combination with other antiemetics, in adults for the prevention of acute and delayed nausea and vomiting associated with initial and repeat courses of moderately emetogenic chemotherapy or anthracycline and cyclophosphamide combination chemotherapy regimens. We commenced commercial sales of SUSTOL in October 2016. We are developing two pharmaceutical products for patients suffering from cancer or pain. HTX-019, an intravenous formulation of the neurokinin-1 receptor antagonist aprepitant, is being developed for the prevention of chemotherapy-induced nausea and vomiting as an adjunct to other antiemetic agents. HTX-011, a long-acting formulation of the local anesthetic bupivacaine in a fixed-dose combination with the anti-inflammatory meloxicam, is being developed for the prevention of post-operative pain. Liquidity As of September 30, 2016, we had approximately $88.9 million in cash, cash equivalents and short-term investments. We have incurred significant operating losses and negative cash flows from operations; our accumulated deficit was $538.0 million. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 2 . B asis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for other quarters or the year ending December 31, 2016. The condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited financial statements as of that date, but does not include all of the information and disclosures required by GAAP. For more complete financial information, these unaudited condensed consolidated financial statements and the notes thereto should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, which was filed with the Securities and Exchange Commission (the “SEC”) on February 19, 2016 . |
Note 3 - Accounting Policies
Note 3 - Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 3. Accounting Policies Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly owned subsidiary, Heron Therapeutics, B.V., which was organized in the Netherlands in March 2015. Heron Therapeutics, B.V. has no operations and no material assets or liabilities and there have been no significant transactions related to Heron Therapeutics, B.V. since its inception. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our critical accounting policies that involve significant judgment and estimates include accrued clinical liabilities, income taxes, stock-based compensation and pre-launch inventories. Actual results could differ materially from those estimates. Reclassifications Certain amounts in the 2015 financial statements have been reclassified to conform to the 2016 presentation. Cash, Cash Equivalents and Short-Term Investments Cash and cash equivalents consist of cash and highly liquid investments with original maturities from purchase date of three months or less. Short-term investments consist of securities with maturities from purchase date of greater than three months. We have classified our short-term investments as available-for-sale securities in the accompanying unaudited condensed consolidated financial statements. Available-for-sale securities are stated at fair market value, with unrealized gains and losses reported in other comprehensive income (loss) and realized gains and losses included in interest income. The cost of securities sold is based on the specific-identification method. Interest and dividends on securities classified as available-for-sale are included in interest income. Our bank and investment accounts have been placed under control agreements in accordance with our Senior Secured Convertible Notes (the “Convertible Notes”) and Subordinated Secured Promissory Note (the “Promissory Note”). Inventory As of September 30, 2016, we capitalized $2.0 million of pre-launch inventory costs associated with SUSTOL, as a result of the FDA’s approval of SUSTOL in August 2016. As of September 30, 2016, inventory primarily consisted of raw materials. Inventory is stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. We periodically analyze our inventory levels, and write down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required which would be recorded as a cost of product sales. In addition, we capitalize pre-launch costs into inventory when we believe it is probable that: (i) a future economic benefit will be derived from the commercialization of the product; (ii) the FDA will approve the marketing of the product; and (iii) our process for manufacturing the product is within the specifications that we believe will be approved by the FDA for such product. In evaluating whether it is probable that we will derive future economic benefits from our pre-launch inventories and whether the pre-launch inventories are stated at the lower of cost or market, we consider, among other things, the remaining shelf life of that inventory, the current and expected market conditions, the amount of inventory on hand, and the substance of communications with the FDA during the regulatory approval process. Earnings per Share Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common share equivalents. Diluted EPS is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and common stock underlying Convertible Notes are considered to be common stock equivalents and are included in the calculation of diluted EPS only when their effect is dilutive. Because we have incurred a net loss for all periods presented in the condensed consolidated statements of comprehensive loss, stock options, warrants and shares of common stock underlying Convertible Notes are not included in the computation of net loss per share because their effect would be anti-dilutive. The following table includes the number of stock options, warrants and shares of common stock underlying Convertible Notes not included in the computation as of the dates shown below (in thousands): As of September 30, 2016 2015 Stock options outstanding 8,517 6,960 Warrants outstanding 600 3,565 Shares of common stock underlying Convertible Notes outstanding 7,410 6,982 Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Unrealized gains and losses on available-for-sale securities are included in other comprehensive loss and represent the difference between our net loss and comprehensive loss for the three and nine months ended September 30, 2016. Our comprehensive loss for the three and nine months ended September 30, 2015 was comprised solely of our net loss, and there were no changes in equity from non-owner sources. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Comp ensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting In February 2016, FASB issued ASU No. 2016-02, Leases In July 2015, FASB issued ASU No. 2015-11, Inventory (Topic 330) In May 2014, FASB issued ASU No. 2014-09, Revenue from Cont racts with Customers (Topic 606) We plan to adopt the provisions of ASU 2014-09 in the first quarter of 2017. We do not expect the adoption of ASU 2014-09 to have a material impact on our results of operations or financial condition. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, is as follows: ● Level 1 — Quoted prices in active markets for identical assets or liabilities. ● Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We measure the following financial assets at fair value on a recurring basis. The fair values of these financial assets at September 30, 2016 were as follows (in thousands): Fair Value Measurements at Reporting Date Using Balance at September 30 , 2016 Quoted Prices in Active Markets for Identical Assets (Level 1)* Significant Other Observable Inputs (Level 2)* Significant Unobservable Inputs (Level 3) Money market funds $ 38,265 $ 38,265 $ — $ — United States corporate debt securities 17,086 — 17,086 — Foreign corporate debt securities 14,127 — 14,127 — United States commercial paper 11,612 — 11,612 — Foreign commercial paper 5,982 — 5,982 — Total $ 87,072 $ 38,265 $ 48,807 $ — *There were no significant transfers between level 1 and level 2 investments during the nine months ended September 30, 2016. As of September 30, 2016, cash equivalents included $5.5 million of available-for-sale securities with contractual maturities of three months or less, and short-term investments included $43.3 million of available-for-sale securities with contractual maturities of one year or less. As of September 30, 2015, we did not hold any investment securities, and our cash equivalents consisted solely of money market funds. A company may elect to use fair value to measure accounts and loans receivable, available-for-sale and held-to-maturity securities, equity method investments, accounts payable, guarantees and issued debt. Other eligible items include firm commitments for financial instruments that otherwise would not be recognized at inception and non-cash warranty obligations where a warrantor is permitted to pay a third party to provide the warranty goods or services. If the use of fair value is elected, any upfront costs and fees related to the item such as debt issuance costs must be recognized in earnings and cannot be deferred. The fair value election is irrevocable and generally made on an instrument-by-instrument basis, even if a company has similar instruments that it elects not to measure based on fair value. Unrealized gains and losses on existing items for which fair value has been elected are reported as a cumulative adjustment to beginning retained earnings and any changes in fair value are recognized in earnings. We have elected to not apply the fair value option to our financial assets and liabilities. We consider the carrying amount of cash and cash equivalents, receivables, pre-launch inventories, prepaid expenses and other current assets, accounts payable and accrued liabilities to be representative of their respective fair values because of the short-term nature of those instruments. Unrealized gains and losses associated with our investments are reported in accumulated other comprehensive income (loss). For the three months ended September 30, 2016, we recorded $16,000 in net unrealized losses associated with our short-term investments. For the nine months ended September 30, 2016, we recorded $23,000 in net unrealized gains associated with our short-term investments. There were no unrealized gains or losses for the three and nine months ended September 30, 2015. Realized gains and losses associated with our investments, if any, are reported in the statement of comprehensive loss. There were no realized gains or losses for the three and nine months ended September 30, 2016 and 2015. |
Note 5 - Restructuring
Note 5 - Restructuring | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 5. Realignment of Goals and Objectives and New Development Focus Following the approval of SUSTOL and consistent with our transition into a commercial company, we realigned our goals and objectives and refocused our development efforts to the area of post-operative pain management. On October 18, 2016, we entered into a lease agreement for new office and laboratory space in San Diego, California (See Footnote 9), which will become our corporate headquarters in 2017. On September 30, 2016, the board of directors accepted the resignations of three executive officers, and these executive officers and other employees directly affected by the realignment and refocusing will be provided with one-time severance payments upon termination, continued benefits for a specified period of time and outplacement assistance. We expect to incur total expenses of $6.5 million, $3.9 million of which is primarily for severance, and $2.6 million of which is accelerated non-cash stock option expense. For the three and nine months ended September 30, 2016, expenses of $4.7 million were included in research and development expense, $0.4 million in general and administrative expense and $0.1 million in sales and marketing expense. As of September 30, 2016, no payments have been made and $3.1 million of charges were included in accrued payroll and employee liabilities. The remaining $1.3 million of anticipated expenses relate to employees who are being retained until the first quarter of 2017 and are being recognized on a straight-line basis over the retention period. The Company expects to make the final payment resulting from the realignment of our goals and objectives and new development focus in April 2017. The expenses we expect to incur are subject to a number of assumptions, and actual results may materially differ. The Company may also incur other material expenses not currently contemplated due to events that may be associated with, or result from, the realignment of our goals and objectives and new development focus. We have accounted for these expenses in accordance with ASC No. 420, Exit or Disposal Cost Obligations |
Note 6 - Secured Notes to Relat
Note 6 - Secured Notes to Related Parties | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6. Secured Notes to Related Party Convertible Notes In April 2011, we entered into a securities purchase agreement for a private placement of up to $4.5 million in Convertible Notes with certain investors, including Tang Capital Partners, LP (“TCP”). TCP is controlled by Tang Capital Management, LLC (“TCM”). The manager of TCM is Kevin C. Tang, who served as a director at the time and currently serves as the Chairman of our Board of Directors. The terms of the Convertible Notes were determined by our independent directors to be no less favorable than terms that would be obtained in an arm’s length financing transaction. We received a total of $4.3 million, net of issuance costs, from the issuance of these Convertible Notes. The Convertible Notes are secured by substantially all of our assets, including placing our bank and investment accounts under a control agreement. The Convertible Notes bear interest at 6% per annum, payable quarterly in cash or in additional principal amount of Convertible Notes, at the election of the purchasers. The Convertible Notes mature on May 2, 2021; however, the holders of the Convertible Notes may require prepayment of the Convertible Notes at any time, at each holder’s option. The Convertible Notes are convertible into shares of our common stock at a rate of 1,250 shares for every $1,000 of outstanding principal due under the Convertible Notes. There is no right to convert the Convertible Notes to the extent that, after giving effect to such conversion, the holder would beneficially own in excess of 9.99% of our outstanding common stock. Each holder of the Convertible Notes can increase or decrease this beneficial ownership conversion limit by written notice to us, which will not be effective until 61 days after delivery of the notice. As of September 30, 2016, we were in compliance with all covenants under the Convertible Notes. Upon the occurrence of an event of default under the Convertible Notes, the holders of the Convertible Notes have the right to require us to redeem all or a portion of their Convertible Notes. In 2011, we filed a registration statement with the SEC to register for resale 3.5 million shares underlying the Convertible Notes. The registration statement was declared effective on July 29, 2011. The Convertible Note holders have agreed to waive their right to require us to maintain the effectiveness of the registration statement and to register the additional shares underlying the Convertible Notes until they provide notice otherwise. The Convertible Notes contain an embedded conversion feature that was in-the-money on the issuance dates. Based on an effective fixed conversion rate of 1,250 shares for every $1,000 of principal and accrued interest due under the Convertible Notes, the total conversion benefit at issuance exceeded the loan proceeds. Therefore, a debt discount was recorded in an amount equal to the face value of the Convertible Notes on the issuance dates and we began amortizing the resultant debt discount over the respective 10-year term of the Convertible Notes. During the nine months ended September 30, 2016, accrued interest of $0.3 million was paid-in-kind and rolled into the Convertible Note principal balance, which resulted in an additional debt discount of $0.3 million. For the three months ended September 30, 2016 and 2015, interest expense relating to the stated rate was $0.1 million and $0.1 million, respectively, and interest expense relating to the amortization of the debt discount was $0.2 million and $0.2 million, respectively. For the nine months ended September 30, 2016 and 2015, interest expense relating to the stated rate was $0.3 million and $0.2 million, respectively, and interest expense relating to the amortization of the debt discount was $0.5 million and $0.5 million, respectively. As of September 30, 2016, the carrying value of the Convertible Notes was $2.7 million, which is comprised of the $5.9 million principal amount of the Convertible Notes outstanding, less debt discount of $3.2 million. If the $5.9 million principal amount of Convertible Notes is converted, we would issue 7.4 million shares of our common stock. Promissory Note In August 2016, we entered into the Promissory Note with TCP whereby TCP will lend us up to $100 million. The Promissory Note has a two-year term and bears interest of 8% per annum. The first close of $50.0 million occurred on August 5, 2016. The second close of an additional $50.0 million is subject to the achievement of a corporate milestone. There are no fees, no warrants and no equity conversion feature associated with this transaction. The Promissory Note is secured by a second-priority lien on substantially all of our assets. TCP is controlled by TCM. The manager of TCM is Kevin C. Tang, who serves as the Chairman of our Board of Directors. The terms of the Promissory Note were determined by our independent directors to be no less favorable than terms that would be obtained in an arm’s length financing transaction. For both the three and nine months ended September 30, 2016, interest expense was $0.6 million. As of September 30, 2016, the outstanding principal amount of the Promissory Note was $50.0 million. |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 7. Stockholders’ Equity 2015 Common Stock Offering In June 2015, we sold 5.5 million shares of our common stock at a public offering price of $24.75 per share. We received total net proceeds of $128.2 million (net of $8.4 million in issuance costs) from the sale of the common stock. Private Placement Warrants In June 2011, we sold shares of common stock and warrants to purchase common stock in a private placement. A total of 4,000,000 warrants to purchase common stock at an exercise price of $3.60 per share were issued as part of this private placement. During the nine months ended September 30, 2016, warrant holders exercised 2,965,477 warrants under the cashless exercise provision in each such holder’s warrant, which resulted in the net issuance of 2,395,700 shares of common stock and no net cash proceeds to us. During the nine months ended September 30, 2015, warrant holders exercised 343,813 warrants under the cashless exercise provision in each such holder’s warrant, which resulted in the net issuance of 285,713 shares of common stock and no net cash proceeds to us. As of September 30, 2016, all warrants from the June 2011 Private Placement have been exercised. Stock Option Activity The following table summarizes the stock option activity for the nine months ended September 30, 2016: Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Balance at January 1, 2016 8,435 $ 13.64 7.94 Granted 1,279 $ 20.42 Exercised (653 ) $ 8.76 Expired and forfeited (544 ) $ 23.33 Balance at September 30, 2016 8,517 $ 14.42 6.86 For the nine months ended September 30, 2016, 652,749 shares of common stock were issued pursuant to the exercise of stock options, resulting in proceeds to us of $5.7 million. For the nine months ended September 30, 2015, 882,579 shares of common stock were issued pursuant to the exercise of stock options, resulting in proceeds to us of $7.9 million. Stock-Based Compensation The following table summarizes stock-based compensation expense related to stock-based payment awards granted pursuant to all of our equity compensation arrangements for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30 , Nine Months Ended September 30, 2016 2015 2016 2015 Research and development $ 3,946 $ 927 $ 8,347 $ 2,652 General and administrative 1,763 1,068 5,229 3,540 Sales and marketing 1,802 826 5,121 2,320 Stock-based compensation expense included in operating expenses $ 7,511 $ 2,821 $ 18,697 $ 8,512 Impact on basic and diluted net loss per share $ 0.19 $ 0.08 $ 0.50 $ 0.27 As of September 30, 2016, there was $55.4 million of total unrecognized compensation cost related to non-vested, stock-based payment awards granted under all of our equity compensation plans and all non-plan option grants. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. We expect to recognize this compensation cost over a weighted-average period of 2.4 years. We estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions: September 30, 20 16 20 15 Risk-free interest rate 1.5 % 1.7 % Dividend yield 0.0 % 0.0 % Volatility 90.6 % 90.7 % Expected life (years) 6 6 We estimate the fair value of each purchase right granted under our 1997 Employee Stock Purchase Plan at the beginning of each new offering period using the Black-Scholes option pricing model. There were no new offering periods for the three months ended September 30, 2016 and 2015. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. Income Taxes Deferred income tax assets and liabilities are recognized for temporary differences between financial statements and income tax carrying values using tax rates in effect for the years such differences are expected to reverse. Due to uncertainties surrounding our ability to generate future taxable income and consequently realize such deferred income tax assets, a full valuation allowance has been established. We continue to maintain a full valuation allowance against our deferred tax assets as of September 30, 2016. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will be recognized when it is more likely than not of being sustained. There have been no material changes in our unrecognized tax benefits since December 31, 2015, and, as such, the disclosures included in our 2015 Annual Report on Form 10-K for the year ended December 31, 2015 continue to be relevant for the nine-month period ended September 30, 2016. |
Note 9 - Subsequent Events
Note 9 - Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 9 . Subsequent Events On October 18, 2016, we entered into a lease (the “Lease”) with AP3-SD1 Campus Point LLC (the “Landlord”) pursuant to which we will lease office and laboratory space in the building located at 4242 Campus Point Court, San Diego, California for a period of seven years and four and one-half months, beginning on or about December 1, 2016. Pursuant to the Lease, we have agreed to pay a basic annual rent that rises incrementally over the term of the lease from $1.3 million for the first 12 months of the Lease to a prorated portion of $1.6 million for the last four and one-half months of the Lease, and such other amounts as set forth in the Lease. We also paid to the Landlord a security deposit of $0.1 million. The Lease provides us with an option to renew the Lease for an additional five year term. Pursuant to the Lease, the Landlord has granted us a one-time right of first refusal during the term of the Lease with respect to certain additional office and laboratory space in the same building. The Lease contains customary default provisions, representations, warranties and covenants. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly owned subsidiary, Heron Therapeutics, B.V., which was organized in the Netherlands in March 2015. Heron Therapeutics, B.V. has no operations and no material assets or liabilities and there have been no significant transactions related to Heron Therapeutics, B.V. since its inception. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our critical accounting policies that involve significant judgment and estimates include accrued clinical liabilities, income taxes, stock-based compensation and pre-launch inventories. Actual results could differ materially from those estimates. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain amounts in the 2015 financial statements have been reclassified to conform to the 2016 presentation. |
Cash, Cash Equivalents, and Short-Term Investments [Policy Text Block] | Cash, Cash Equivalents and Short-Term Investments Cash and cash equivalents consist of cash and highly liquid investments with original maturities from purchase date of three months or less. Short-term investments consist of securities with maturities from purchase date of greater than three months. We have classified our short-term investments as available-for-sale securities in the accompanying unaudited condensed consolidated financial statements. Available-for-sale securities are stated at fair market value, with unrealized gains and losses reported in other comprehensive income (loss) and realized gains and losses included in interest income. The cost of securities sold is based on the specific-identification method. Interest and dividends on securities classified as available-for-sale are included in interest income. Our bank and investment accounts have been placed under control agreements in accordance with our Senior Secured Convertible Notes (the “Convertible Notes”) and Subordinated Secured Promissory Note (the “Promissory Note”). |
Inventory, Policy [Policy Text Block] | Inventory As of September 30, 2016, we capitalized $2.0 million of pre-launch inventory costs associated with SUSTOL, as a result of the FDA’s approval of SUSTOL in August 2016. As of September 30, 2016, inventory primarily consisted of raw materials. Inventory is stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. We periodically analyze our inventory levels, and write down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required which would be recorded as a cost of product sales. In addition, we capitalize pre-launch costs into inventory when we believe it is probable that: (i) a future economic benefit will be derived from the commercialization of the product; (ii) the FDA will approve the marketing of the product; and (iii) our process for manufacturing the product is within the specifications that we believe will be approved by the FDA for such product. In evaluating whether it is probable that we will derive future economic benefits from our pre-launch inventories and whether the pre-launch inventories are stated at the lower of cost or market, we consider, among other things, the remaining shelf life of that inventory, the current and expected market conditions, the amount of inventory on hand, and the substance of communications with the FDA during the regulatory approval process. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common share equivalents. Diluted EPS is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and common stock underlying Convertible Notes are considered to be common stock equivalents and are included in the calculation of diluted EPS only when their effect is dilutive. Because we have incurred a net loss for all periods presented in the condensed consolidated statements of comprehensive loss, stock options, warrants and shares of common stock underlying Convertible Notes are not included in the computation of net loss per share because their effect would be anti-dilutive. The following table includes the number of stock options, warrants and shares of common stock underlying Convertible Notes not included in the computation as of the dates shown below (in thousands): As of September 30, 2016 2015 Stock options outstanding 8,517 6,960 Warrants outstanding 600 3,565 Shares of common stock underlying Convertible Notes outstanding 7,410 6,982 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Unrealized gains and losses on available-for-sale securities are included in other comprehensive loss and represent the difference between our net loss and comprehensive loss for the three and nine -month periods ended September 30, 2016. Our comprehensive loss for the three and nine -month periods ended September 30, 2015 was comprised solely of our net loss, and there were no changes in equity from non-owner sources. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Comp ensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting In February 2016, FASB issued ASU No. 2016-02, Leases In July 2015, FASB issued ASU No. 2015-11, Inventory (Topic 330) In May 2014, FASB issued ASU No. 2014-09, Revenue from Cont racts with Customers (Topic 606) We plan to adopt the provisions of ASU 2014-09 in the first quarter of 2017. We do not expect the adoption of ASU 2014-09 to have a material impact on our results of operations or financial condition. |
Note 3 - Accounting Policies (T
Note 3 - Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | As of September 30, 2016 2015 Stock options outstanding 8,517 6,960 Warrants outstanding 600 3,565 Shares of common stock underlying Convertible Notes outstanding 7,410 6,982 |
Note 4 - Fair Value Measureme16
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting Date Using Balance at September 30 , 2016 Quoted Prices in Active Markets for Identical Assets (Level 1)* Significant Other Observable Inputs (Level 2)* Significant Unobservable Inputs (Level 3) Money market funds $ 38,265 $ 38,265 $ — $ — United States corporate debt securities 17,086 — 17,086 — Foreign corporate debt securities 14,127 — 14,127 — United States commercial paper 11,612 — 11,612 — Foreign commercial paper 5,982 — 5,982 — Total $ 87,072 $ 38,265 $ 48,807 $ — |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Balance at January 1, 2016 8,435 $ 13.64 7.94 Granted 1,279 $ 20.42 Exercised (653 ) $ 8.76 Expired and forfeited (544 ) $ 23.33 Balance at September 30, 2016 8,517 $ 14.42 6.86 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended September 30 , Nine Months Ended September 30, 2016 2015 2016 2015 Research and development $ 3,946 $ 927 $ 8,347 $ 2,652 General and administrative 1,763 1,068 5,229 3,540 Sales and marketing 1,802 826 5,121 2,320 Stock-based compensation expense included in operating expenses $ 7,511 $ 2,821 $ 18,697 $ 8,512 Impact on basic and diluted net loss per share $ 0.19 $ 0.08 $ 0.50 $ 0.27 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | September 30, 20 16 20 15 Risk-free interest rate 1.5 % 1.7 % Dividend yield 0.0 % 0.0 % Volatility 90.6 % 90.7 % Expected life (years) 6 6 |
Note 1 - Business (Details Text
Note 1 - Business (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Cash, Cash Equivalents, and Short-term Investments | $ 88,900 | |
Retained Earnings (Accumulated Deficit) | $ (538,008) | $ (412,828) |
Note 3 - Accounting Policies (D
Note 3 - Accounting Policies (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory, Net | $ 1,983 |
Note 3 - Accounting Policies -
Note 3 - Accounting Policies - Equity Excluded From Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Stock Option [Member] | ||
Shares excluded (in shares) | 8,517 | 6,960 |
Warrant [Member] | ||
Shares excluded (in shares) | 600 | 3,565 |
Convertible Debt Securities [Member] | ||
Shares excluded (in shares) | 7,410 | 6,982 |
Note 4 - Fair Value Measureme21
Note 4 - Fair Value Measurements (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Available-for-sale Securities, Current | $ 43,279,000 | $ 0 | $ 43,279,000 | $ 0 | $ 55,986,000 |
Available-for-sale Securities, Gross Unrealized Loss | 16,000 | 0 | 0 | ||
Available-for-sale Securities, Gross Unrealized Gain | 0 | 23,000 | 0 | ||
Available-for-sale Securities, Gross Realized Gains | 0 | 0 | 0 | 0 | |
Available-for-sale Securities, Gross Realized Losses | 0 | $ 0 | 0 | $ 0 | |
Cash Equivalents, at Carrying Value | $ 5,500,000 | $ 5,500,000 |
Note 4 - Fair Value Measureme22
Note 4 - Fair Value Measurements - Financial Assets Measured on a Recurring Basis (Details) $ in Thousands | Sep. 30, 2016USD ($) | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, fair value | $ 38,265 | [1] |
Money Market Funds [Member] | ||
Assets, fair value | 38,265 | |
Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, fair value | 17,086 | [1] |
Domestic Corporate Debt Securities [Member] | ||
Assets, fair value | 17,086 | |
Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, fair value | ||
Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, fair value | 14,127 | |
Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, fair value | ||
Foreign Corporate Debt Securities [Member] | ||
Assets, fair value | 14,127 | |
United States Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, fair value | 11,612 | [1] |
United States Commercial Paper [Member] | ||
Assets, fair value | 11,612 | |
Foreign Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, fair value | ||
Foreign Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, fair value | 5,982 | |
Foreign Commercial Paper [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, fair value | ||
Foreign Commercial Paper [Member] | ||
Assets, fair value | 5,982 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, fair value | 38,265 | [1] |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, fair value | 48,807 | [1] |
Assets, fair value | $ 87,072 | |
[1] | There were no significant transfers between level 1 and level 2 investments during the nine months ended September 30, 2016. |
Note 5 - Restructuring (Details
Note 5 - Restructuring (Details Textual) - Restructuring Plan [Member] | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Employee Severance [Member] | ||
Restructuring and Related Cost, Expected Cost | $ 3,900,000 | $ 3,900,000 |
Accelerated Non-Cash Stock Option Expense [Member] | ||
Restructuring and Related Cost, Expected Cost | 2,600,000 | 2,600,000 |
Employee Related Liabilities [Member] | ||
Restructuring and Related Cost, Expected Cost Remaining | 1,300,000 | 1,300,000 |
Contractual or Lease Obligations or Other Exit Costs [Member] | ||
Restructuring Charges | 0 | 0 |
Research and Development Expense [Member] | ||
Restructuring Charges | 4,700,000 | 4,700,000 |
General and Administrative Expense [Member] | ||
Restructuring Charges | 400,000 | 400,000 |
Selling and Marketing Expense [Member] | ||
Restructuring Charges | 100,000 | 100,000 |
Accrued Payroll and Employee Liabilities [Member] | ||
Restructuring and Related Cost, Cost Incurred to Date | 3,100,000 | 3,100,000 |
Restructuring and Related Cost, Expected Cost | $ 6,500,000 | 6,500,000 |
Payments for Restructuring | $ 0 |
Note 6 - Secured Notes to Rel24
Note 6 - Secured Notes to Related Parties (Details Textual) | Aug. 05, 2016USD ($)shares | Aug. 02, 2016USD ($) | Jul. 29, 2011shares | Apr. 30, 2011USD ($)shares | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Convertible Debt Securities [Member] | Common Stock [Member] | |||||||||
Debt Instrument Conversion Ratio Shares | shares | 1,250 | ||||||||
Convertible Debt Securities [Member] | In Case of Debt Conversion [Member] | |||||||||
Debt Instrument, Face Amount | $ 5,900,000 | $ 5,900,000 | |||||||
Debt Instrument, Convertible, Number of Equity Instruments | 7,400,000 | ||||||||
Convertible Debt Securities [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||
Debt Instrument Conversion Ratio Multiple of Principal | $ 1,000 | ||||||||
Beneficial Ownership after Conversion | 9.99% | ||||||||
Notice Period Associated with Beneficial Ownership Percentage Limitation Convertible Notes | 61 days | ||||||||
Paid-in-Kind Interest | $ 300,000 | ||||||||
Debt Instrument, Increase (Decrease), Other, Net | 300,000 | ||||||||
Debt Instrument, Face Amount | 5,900,000 | 5,900,000 | |||||||
Debt Instrument, Unamortized Discount | 3,200,000 | 3,200,000 | |||||||
Term Loan [Member] | Tang Capital [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 100,000,000 | ||||||||
Debt Instrument, Term | 2 years | ||||||||
Proceeds from Issuance of Long-term Debt | $ 50,000,000 | ||||||||
Proceeds from Issuance of Long-term Debt, Subject to Achievement of Corporate Milestone | $ 50,000,000 | ||||||||
Debt Instrument, Fee Amount | $ 0 | ||||||||
Debt Instrument, Number of Warrants | shares | 0 | ||||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 0 | ||||||||
Interest Expense | 600,000 | 600,000 | |||||||
Notes Payable, Related Parties, Noncurrent | 50,000,000 | 50,000,000 | |||||||
Convertible Debt Issuable in Connection with Private Placement | $ 4,500,000 | ||||||||
Proceeds from Convertible Debt | $ 4,300,000 | ||||||||
Common Shares Registered for Resale in Connection with Convertible Notes | shares | 3,500,000 | ||||||||
Interest Expense, Debt, Excluding Amortization | 100,000 | $ 100,000 | 300,000 | $ 200,000 | |||||
Amortization of Debt Discount (Premium) | 200,000 | $ 200,000 | 510,000 | $ 463,000 | |||||
Convertible Notes Payable, Related Parties, Current | 2,732,000 | 2,732,000 | $ 2,222,000 | ||||||
Notes Payable, Related Parties, Noncurrent | $ 50,000,000 | $ 50,000,000 |
Note 7 - Stockholders' Equity25
Note 7 - Stockholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2011 | |
Private Placement 2011 [Member] | Common Stock [Member] | ||||
Proceeds from Warrant Exercises | $ 0 | $ 0 | ||
Stock Issued During Period, Shares, New Issues | 2,395,700 | 285,713 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 2,965,477 | 343,813 | ||
Private Placement 2011 [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 4,000,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | |||
Common Stock [Member] | ||||
Stock Issued During Period, Shares, New Issues | 5,500,000 | |||
Sale of Stock, Price Per Share | $ 24.75 | |||
Proceeds from Issuance or Sale of Equity | $ 128,200,000 | |||
Payments of Stock Issuance Costs | $ 8,400,000 | |||
Proceeds from Issuance or Sale of Equity | $ 128,199,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Net | 652,749 | 882,579 | ||
Proceeds from Stock Options Exercised | $ 5,720,000 | $ 7,915,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 55,400,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 146 days |
Note 7 - Stockholders' Equity -
Note 7 - Stockholders' Equity - Option Summary (Details) - $ / shares shares in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Number of shares outstanding (in shares) | 8,435 | |
Number of shares outstanding, weighted average exercise price (in dollars per share) | $ 13.64 | |
Number of shares outstanding, weighted average remaining contractual term | 6 years 313 days | 7 years 343 days |
Number of shares granted (in shares) | 1,279 | |
Number of shares granted, weighted average exercise price (in dollars per share) | $ 20.42 | |
Number of shares exercised (in shares) | (653) | |
Number of shares exercised, weighted average exercise price (in dollars per share) | $ 8.76 | |
Number of Shares expired and forfeited (in shares) | (544) | |
Number of Shares expired and forfeited, weighted average exercise price (in dollars per share) | $ 23.33 | |
Number of shares outstanding (in shares) | 8,517 | 8,435 |
Number of shares outstanding, weighted average exercise price (in dollars per share) | $ 14.42 | $ 13.64 |
Note 7 - Stockholders' Equity27
Note 7 - Stockholders' Equity - Allocation of the Recognized Cost (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Research and Development Expense [Member] | ||||
Share-based compensation expense | $ 3,946 | $ 927 | $ 8,347 | $ 2,652 |
General and Administrative Expense [Member] | ||||
Share-based compensation expense | 1,763 | 1,068 | 5,229 | 3,540 |
Selling and Marketing Expense [Member] | ||||
Share-based compensation expense | 1,802 | 826 | 5,121 | 2,320 |
Share-based compensation expense | $ 7,511 | $ 2,821 | $ 18,697 | $ 8,512 |
Impact on basic and diluted net loss per share (in dollars per share) | $ 0.19 | $ 0.08 | $ 0.50 | $ 0.27 |
Note 7 - Stockholders' Equity28
Note 7 - Stockholders' Equity - Option Valuation Assumptions (Details) - Employee Stock Option [Member] | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Risk-free interest rate | 1.50% | 1.70% |
Dividend yield | 0.00% | 0.00% |
Volatility | 90.60% | 90.70% |
Expected life (years) | 6 years | 6 years |
Note 9 - Subsequent Events (Det
Note 9 - Subsequent Events (Details Textual) - Subsequent Event [Member] - Office and Laboratory Space Lease with AP3-SD1 Campus Point LLC [Member] $ in Millions | Oct. 18, 2016USD ($) |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 7 years 136 days |
Operating Leases, Base Annual Rent Expense, Initial Year | $ 1.3 |
Operating Leases, Base Annual Rent Expense, Final Year | 1.6 |
Payments for Deposits | $ 0.1 |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years |