Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 03, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | DELCATH SYSTEMS, INC. | |
Entity Central Index Key | 872,912 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,763,872 | |
Document Fiscal Year Focus | 2,015 | |
Trading Symbol | DCTH | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 16,666 | $ 20,469 |
Accounts receivables, net | 432 | 174 |
Inventories | 402 | 349 |
Prepaid expenses and other current assets | 665 | 974 |
Total current assets | 18,165 | 21,966 |
Property, plant and equipment, net | 1,402 | 1,798 |
Total assets | 19,567 | 23,764 |
Current liabilities | ||
Accounts payable | 221 | 748 |
Accrued expenses | 2,022 | 3,603 |
Warrant liability | 2,935 | 225 |
Total current liabilities | 5,178 | 4,576 |
Other non-current liabilities | 874 | 1,043 |
Total liabilities | $ 6,052 | $ 5,619 |
Commitments and Contingencies | ||
Stockholders' equity | ||
Preferred stock, $.01 par value; 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | ||
Common stock, $.01 par value; 170,000,000 shares authorized; 22,341,707 and 9,740,397 shares issued and 21,763,864 and 9,708,841 shares outstanding at September 30, 2015 and December 31, 2014, respectively | $ 223 | $ 97 |
Additional paid-in capital | 269,460 | 264,592 |
Accumulated deficit | (256,125) | (246,513) |
Treasury stock, at cost; 1,757 shares at September 30, 2015 and December 31, 2014, respectively | (51) | (51) |
Accumulated other comprehensive income | 8 | 20 |
Total stockholders' equity | 13,515 | 18,145 |
Total liabilities and stockholders' equity | $ 19,567 | $ 23,764 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 22,341,707 | 9,740,397 |
Common stock, shares outstanding (in shares) | 21,763,864 | 9,708,841 |
Treasury stock, at cost (in shares) | 1,757 | 1,757 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 399 | $ 217 | $ 1,308 | $ 778 |
Cost of goods sold | 90 | 50 | 360 | 209 |
Gross profit | 309 | 167 | 948 | 569 |
Operating expenses: | ||||
Selling, general and administrative | 2,276 | 4,538 | 7,818 | 12,956 |
Research and development | 1,683 | 683 | 4,112 | 3,632 |
Total operating expenses | 3,959 | 5,221 | 11,930 | 16,588 |
Operating loss | (3,650) | (5,054) | (10,982) | (16,019) |
Change in fair value of the warrant liability, net | 1,253 | 519 | 1,414 | 1,612 |
Other expense and interest expense | (25) | (23) | (43) | (29) |
Net loss | (2,422) | (4,558) | (9,611) | (14,436) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (4) | (6) | (12) | (27) |
Comprehensive loss | $ (2,426) | $ (4,564) | $ (9,623) | $ (14,463) |
Common share data: | ||||
Basic and diluted loss per common share | $ (0.12) | $ (0.48) | $ (0.67) | $ (1.54) |
Weighted average number of basic and diluted common shares outstanding | 19,729,374 | 9,447,887 | 14,301,105 | 9,391,793 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (9,611) | $ (14,436) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock option compensation expense | 255 | 321 |
Restricted stock compensation expense | 189 | 96 |
Depreciation expense | 504 | 742 |
Provision for inventory obsolescence | 118 | |
Loss on disposal of equipment | 2 | 147 |
Warrant liability fair value adjustment | (1,414) | (1,612) |
Non-cash interest income | (1) | 0 |
Changes in assets and liabilities: | ||
Decrease in prepaid expenses and other assets | 306 | 937 |
Decrease (increase) in accounts receivable | (135) | 187 |
Decrease (increase) in inventories | (62) | 73 |
Increase (decrease) in accounts payable and accrued expenses | (2,056) | 275 |
Increase (decrease) in other non-current liabilities | (165) | 723 |
Net cash used in operating activities | (12,188) | (12,429) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (129) | |
Proceeds from sales of property, plant and equipment | 2 | 37 |
Net cash (used in) provided by investing activities | (127) | 37 |
Cash flows from financing activities: | ||
Net proceeds from sale of stock and exercise of warrants | 8,674 | 4,489 |
Net cash provided by financing activities | 8,674 | 4,489 |
Foreign currency effects on cash and cash equivalents | (162) | (23) |
Net decrease in cash and cash equivalents | (3,803) | (7,926) |
Cash and cash equivalents: | ||
Beginning of period | 20,469 | 31,249 |
End of period | 16,666 | 23,323 |
Supplemental non-cash activities: | ||
Fair value of warrants issued | 4,247 | |
Fair value of warrants exercised | $ 123 | $ 143 |
General
General | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | (1) General The interim condensed consolidated financial statements of Delcath Systems, Inc. (“Delcath” or the “Company”) for the three and nine months ended September 30, 2015 and 2014 should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (“Annual Report”), which has been filed with the Securities Exchange Commission (“SEC”) and can also be found on the Company’s website (www.delcath.com). In these notes the terms “us”, “we” or “our” refer to Delcath and its consolidated subsidiaries. On April 8, 2014, the Company effected a one-for-sixteen (1:16) reverse stock split. Refer to Note 7 Stockholders’ Equity Description of Business Delcath Systems, Inc. is a late-stage clinical development company with early commercial activity in Europe focused on cancers of the liver. We are a specialty pharmaceutical and medical device company developing our proprietary product—Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS). In Europe, our proprietary system to deliver and filter melphalan hydrochloride is marketed as a device under the trade name Delcath Hepatic CHEMOSAT ® Delivery System for Melphalan (CHEMOSAT). Our primary focus is on the execution of our clinical development program (CDP) in ocular melanoma liver metastases (mOM), intrahepatic cholangiocarncinoma (ICC), hepatocellular carcinoma (HCC or primary liver), and certain other cancers that are metastatic to the liver. We believe that cancers in the liver represent a multi-billion dollar global market opportunity and a clear unmet medical need. Our clinical development program for CHEMOSAT/Melphalan/HDS is comprised of: a planned Global Phase 3 clinical trial investigating overall survival in ocular melanoma liver metastases, and a Global Phase 2 clinical trial investigating Melphalan/HDS with and without sorafenib in HCC, as well as a cohort in ICC. Our CDP also includes sponsorship of select investigator initiated trials (IITs) in HCC and colorectal cancer liver metastases (mCRC) and the establishment of a commercial registry for CHEMOSAT non-clinical commercial cases performed in Europe. The Company has incurred losses since inception. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales. Management believes that its capital resources are adequate to fund operations into the first half of 2016, but anticipates that additional working capital will be required to continue operations. To the extent additional capital is not available when needed, the Company may be forced to abandon some or all of its development and commercialization efforts, which would have a material adverse effect on the prospects of the business. Operations of the Company are subject to certain risks and uncertainties, including, among others, uncertainties and risks related to clinical research, product development; regulatory approvals; technology; patents and proprietary rights; comprehensive government regulations; limited commercial manufacturing; marketing and sales experience; and dependence on key personnel. Basis of Presentation These interim condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (GAAP) and with the SEC’s instructions to Form 10-Q and Article 10 of Regulation S-X. They include the accounts of all entities controlled by Delcath and all significant inter-company accounts and transactions have been eliminated in consolidation. The preparation of interim financial statements requires management to make assumptions and estimates that impact the amounts reported. These interim condensed consolidated financial statements, in the opinion of management, reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company’s results of operations, financial position and cash flows for the interim periods ended September 30, 2015 and 2014; however, certain information and footnote disclosures normally included in our Annual Report have been condensed or omitted as permitted by GAAP. It is important to note that the Company’s results of operations and cash flows for interim periods are not necessarily indicative of the results of operations and cash flows to be expected for a full fiscal year or any interim period. Significant Accounting Policies A description of our significant accounting policies has been provided in Note 3 Summary of Significant Accounting Policies Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) that updates the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also amends the required disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company expects to adopt this guidance when effective, and does not anticipate that this guidance will materially impact its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt this guidance when effective, and does not anticipate that this guidance will materially impact its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the ASU (1) provides a definition of the term substantial doubt, (2) requires an evaluation every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plans, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This standard is effective for the fiscal years ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the accounting transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | (2) Inventories Inventories consist of the following: (in thousands) September 30, 2015 December 31, 2014 Raw materials $ 229 $ 203 Work-in-process 115 63 Finished goods 58 83 Total inventory $ 402 $ 349 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | (3) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: (in thousands) September 30, 2015 December 31, 2014 Insurance premiums $ 98 $ 591 Kits for clinical use 167 161 Professional Fees 177 - Other 223 222 Total prepaid expenses and other current assets $ 665 $ 974 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment | (4) Property, Plant, and Equipment Property, plant, and equipment consist of the following: (in thousands) September 30, 2015 December 31, 2014 Leaseholds $ 1,479 $ 1,629 Enterprise hardware and software 1,586 1,573 Furniture 355 361 Equipment 1,393 1,380 Buildings and land 607 603 Property, plant and equipment, gross 5,420 5,546 Accumulated depreciation (4,018 ) (3,748 ) Property, plant and equipment, net $ 1,402 $ 1,798 Depreciation expense for the three and nine months ended September 30, 2015 was approximately $0.1 million and $0.5 million, respectively, as compared to approximately $0.2 million and $0.7 million for the same periods in 2014. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (5) Accrued Expenses Accrued expenses consist of the following: (in thousands) September 30, 2015 December 31, 2014 Compensation, excluding taxes $ 966 $ 2,187 Professional fees 167 341 Short-term portion of lease restructuring 214 239 Deferred rent 28 58 Other 647 778 Total accrued expenses $ 2,022 $ 3,603 |
Restructuring Expenses
Restructuring Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Expenses | (6) Restructuring Expenses Beginning in 2013, the Company implemented several workforce restructurings to reduce operating costs, better focus its organizational structure, increase efficiency and concentrate financial resources on its clinical development program and European commercialization activity. This resulted in a total reduction in the Company’s workforce by 59 employees. As a result of termination benefits provided to these employees the Company has incurred a total restructuring charge of approximately $5.5 million for employee related expenses. At September 30, 2015, the remaining restructuring reserve of approximately $0.2 million is included in Accrued expenses on the condensed consolidated balance sheets. In order to help reduce operating costs and more appropriately align its office space with the reduced size of its workforce, the Company entered into two sub-leases for office space at its 810 Seventh Avenue office. On May 22, 2014, the Company entered into a sub-lease agreement (“Sub-lease #1”) for approximately one-half of the office space at this location (“Suite 3500”), resulting in a lease restructuring reserve of approximately $0.9 million. On August 18, 2014, the Company entered into a sub-lease agreement (“Sub-lease #2”) for the remaining one-half of office space at its 810 Seventh Avenue office (“Suite 3505”), resulting in a lease restructuring reserve of approximately $0.7 million. As of September 30, 2015, the total remaining lease restructuring liability for its leased office space was approximately $1.1 million, of which approximately $0.2 million and $0.9 million were included in Accrued expenses and Other non-current liabilities on the condensed consolidated balance sheets, respectively. The following table provides the year-to-date activity of the Company’s restructuring reserves as of September 30, 2015: (in thousands) Employee Costs Lease Liability Reserve balance at December 31, 2014 $ 824 $ 1,282 Charges 403 — Payments/Utilizations (1,048 ) (194 ) Reserve balance at September 30, 2015 $ 179 $ 1,088 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (7) Stockholders’ Equity Stock Issuances Reverse Stock Split On February 24, 2014, shareholders of the Company approved, through a shareholder vote, an amendment to the Company’s Amended and Restated Certificate of Incorporation authorizing the Board of Directors to effect a reverse stock split of Delcath’s common stock. The reverse stock split became effective on April 8, 2014 at which time Delcath’s common stock began trading on the NASDAQ Stock Exchange on a one-for-sixteen (1:16) split-adjusted basis. All owners of record as of the close of the NASDAQ market on April 8, 2014 received one issued and outstanding share of Delcath common stock in exchange for sixteen issued and outstanding shares of Delcath common stock. No fractional shares were issued in connection with the reverse stock split. All fractional shares created by the one-for-sixteen exchange were rounded up to the next whole share. The reverse stock split had no impact on the number of common shares authorized or the par value per share of Delcath common stock, which remain 170,000,000 and $.01, respectively. All current and prior period amounts related to shares, share prices and earnings per share, presented in these Condensed Consolidated Financial Statements and the accompanying Notes, have been restated to give retrospective presentation for the reverse stock split. At-the-Market (“ATM”) Programs In March 2013, the Company entered into an agreement with Cowen and Company LLC (“Cowen”) to sell shares of the Company’s common stock, par value $.01 per share, from time to time, through an ATM equity offering program having aggregate sales proceeds of $50.0 million, under which Cowen will act as sales agent. During the year ended December 31, 2013, the Company sold approximately 1.0 million shares of its common stock under this ATM program for proceeds of approximately $5.0 million, with net cash proceeds after related expenses of approximately $4.8 million. During the year ended December 31, 2014 the Company sold an additional 1.0 million shares of its common stock under this ATM program for proceeds of approximately $4.8 million, with net cash proceeds after related expenses of approximately $4.7 million. The shares were issued pursuant to an effective registration statement on Form S-3 (333-187230). The net proceeds will be used for general corporate purposes, including, but not limited to, commercialization of our products, obtaining regulatory approvals, funding of our clinical trials, capital expenditures and working capital. As of September 30, 2015, the Company has approximately $39.9 million remaining under the program subject to market conditions and certain limitations. Warrants In May 2012, the Company completed the sale of 1.0 million shares of its common stock and the issuance of warrants to purchase 0.3 million common shares (the “2012 Warrants”) pursuant to an underwriting agreement. The Company received proceeds of $21.5 million, with net cash proceeds after related expenses from this transaction of approximately $21.1 million. Of those proceeds, the Company allocated an estimated fair value of $3.4 million to the 2012 Warrants. The exercise price is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. The exercise price of the warrants is subject to anti-dilution adjustments for any issuance of common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. For purposes of these adjustments, dilutive issuances do not include securities issued under existing instruments, under board-approved equity incentive plans or in certain strategic transactions. As required by the 2012 Warrant agreement, the exercise price of the warrants was adjusted following the Company’s February 2015 sale of common stock and warrants. During the nine months ended September 30, 2015, 0.2 million 2012 Warrants were exercised for net proceeds of approximately $0.1 million. The 2012 Warrants had a three-year term which expired on May 31, 2015. The remaining liability was credited to Change in fair value of the warrant liability. In October 2013, the Company completed the sale of 1.3 million shares of its common stock and the issuance of warrants to purchase approximately 0.6 million common shares (the “2013 Warrants”) pursuant to a placement agency agreement. The Company received proceeds of $7.5 million, with net cash proceeds after related expenses from this transaction of approximately $6.9 million. Of those proceeds, the Company allocated an estimated fair value of $1.9 million to the 2013 Warrants. The exercise price is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. At September 30, 2015, the 2013 Warrants were exercisable at $7.04 per share with approximately 0.6 million warrants outstanding. The 2013 Warrants have a five-year term. In February 2015, the Company completed the sale of 2.5 million shares of its common stock and the issuance of warrants to purchase 1.1 million common shares (the “February 2015 Warrants”) pursuant to an underwriting agreement. The Company received proceeds of $2.6 million, with net cash proceeds after related expenses from this transaction of $2.5 million. Of those proceeds, the Company allocated an estimated fair value of $0.8 million to the February 2015 Warrants. The exercise price is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. The exercise price of the warrants is subject to anti-dilution adjustments for any issuance of common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. At September 30, 2015, the February 2015 Warrants were exercisable at $0.74 per share with approximately 1.1 million warrants outstanding. The February 2015 Warrants have a five-year term. In July 2015, the Company completed the sale of 9.4 million Units consisting of 9.4 million shares of its common stock, Series A Warrants to purchase up to 7.0 million common shares (“July 2015 Series A Warrants”) and Series B Warrants to purchase Units consisting of up to 9.4 million common shares (“July 2015 Series B Warrants”) and 7.0 million July 2015 Series A Warrants pursuant to an underwriting agreement. The Company received proceeds of $7.0 million, with net cash proceeds after related expenses from this transaction of $6.0 million. Of those proceeds the Company allocated an estimated fair value of $3.4 million to the July 2015 Series A and Series B Warrants. The exercise price of both series of warrants is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock and is subject to anti-dilution adjustments for any issuance of common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. At September 30, 2015, the July 2015 Series A Warrants were exercisable at $0.87 with approximately 7.0 million warrants outstanding and the July 2015 Series B Warrants were exercisable at $0.75 with approximately 9.4 million outstanding. The July 2015 Series A Warrants have a five-year term and the July 2015 Series B Warrants have a 90 trading day term. Stock Incentive Plans The Company established the 2004 Stock Incentive Plan and the 2009 Stock Incentive Plan (collectively, the “Plans”) under which 187,500, and 1,506,250 shares, respectively, have been reserved for the issuance of stock options, stock appreciation rights, restricted stock, stock grants and other equity awards. In June 2015, the total number of shares of Delcath common stock reserved for issuance under the 2009 Stock Incentive Plan was increased by 1,100,000 shares, from 406,250 to 1,506,250 shares, upon a favorable vote by the Company’s stockholders. The Plans are administered by the Compensation and Stock Option Committee of the Board of Directors which determines the individuals to whom awards shall be granted as well as the type, terms, conditions, option price and the duration of each award. As of September 30, 2015 there were 175,232 shares available to grant under the 2009 Stock Incentive Plan. A stock option grant allows the holder of the option to purchase a share of the Company’s common stock in the future at a stated price. Options and Restricted Stock granted under the Plans vest as determined by the Company’s Compensation and Stock Option Committee. Options granted under the Plans expire over varying terms, but not more than ten years from the date of grant. For the three and nine months ended September 30, 2015, the Company recognized compensation expense of approximately $0.1 million and $0.3 million, respectively, relating to stock options granted to employees. For the same periods in 2014, the Company recognized compensation expense of approximately $0.1 million and $0.3 million, respectively. There were approximately 0.5 million stock options granted during the nine months ended September 30, 2015. There were 75,000 stock options granted for the same period in 2014. For the three and nine months ended September 30, 2015, the Company recognized compensation expense of approximately $0.1 million and $0.2 million, respectively, related to restricted stock granted to employees. For the same periods in 2014, the Company recognized compensation expense of approximately $36,000 and $0.1 million, respectively. There were approximately 0.6 million shares of restricted stock granted during the nine months ended September 30, 2015. There were approximately 63,000 shares of restricted stock granted for the same period in 2014. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements Derivative Warrant Liability As disclosed in Note 7 Stockholders’ Equity For the three and nine months ended September 30, 2015, the Company recorded pre-tax derivative warrant income of $1.3 million and $1.4 million, respectively. The resulting derivative warrant liabilities totaled $2.9 million at September 30, 2015. In the event of a hypothetical 10% increase in the market price of our common shares on which the September 30, 2015 valuation was based, the value of the derivative liability would have increased by approximately $0.6 million. Management expects that the Warrants will either be exercised or expire worthless. The fair value of the Warrants at September 30, 2015 was determined by using an option pricing model with the following assumptions: Series A 2015 Warrants Series B 2015 Warrants February 2015 Warrants October 2013 Warrants Expected volatility 91.13% 122.86% 91.13% 93.75% Risk-free interest rates 1.31% 0.00% 1.26% 0.92% Expected life (in years) 4.75 0.15 4.50 3.00 For the period ended September 30, 2015 and 2014, there were no transfers in or out of Level 1, 2 or 3 inputs. Money Market Funds The Company has determined that the inputs associated with the fair value determination of its money market funds are based on quoted prices (unadjusted) and, as a result, the investments have been classified within Level 1 of the fair value hierarchy. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2015, aggregated by the level in the fair value hierarchy within which those measurements fall in accordance with ASC 820. Assets and Liabilities Measured at Fair Value on a Recurring Basis (in thousands) Level 1 Level 2 Level 3 Balance at September 30, Assets Money market funds (included in Cash and Cash Equivalents) $ 1,943 $ — $ — $ 1,943 Liabilities Derivative instrument liabilities $ — $ — $ 2,935 $ 2,935 The table below presents the activity within Level 3 of the fair value hierarchy for the nine months ended September 30, 2015: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Warrant Liability Balance at December 31, 2014 $ 225 Total change in the liability included in earnings (1,414 ) Fair value of warrants issued 4,247 Fair value of warrants exercised (123 ) Balance at September 30, 2015 $ 2,935 |
Net Loss per Common Share
Net Loss per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | (9) Net Loss per Common Share Basic net loss per share is determined by dividing net loss by the weighted average shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is determined by dividing net loss by diluted weighted average shares outstanding. Diluted weighted average shares reflects the dilutive effect, if any, of potentially dilutive common shares, such as stock options and warrants calculated using the treasury stock method. In periods with reported net operating losses, all common stock options and warrants are generally deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal. However, in certain periods in which the exercise price of the warrants was less than the last reported sales price of Delcath’s common stock on the final trading day of the period and there is a gain recorded pursuant to the change in fair value of the warrant derivative liability, the impact of gains related to the mark-to-market adjustment of the warrants outstanding at the end of the period is reversed and the treasury stock method is used to determine diluted earnings per share. The following potentially dilutive securities were excluded from the computation of earnings per share as of September 30, 2015 and 2014 because their effects would be anti-dilutive: September 30, 2015 2014 Stock options 766,135 227,718 Unvested restricted shares 576,086 64,515 Warrants 18,059,000 850,138 Total 19,401,221 1,142,371 |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Taxes | (10) Taxes As discussed in Note 13 Income Taxes The Company is subject to income tax in the U.S., as well as various state and international jurisdictions. During the third quarter of 2015, the Company was notified by the Internal Revenue Service that they will be examining the tax return for calendar year 2013. The effect of the outcome cannot be reasonably estimated as the exam is presently in its initial stages. However, the Company does not expect any material change to its financial statements as a result of this audit. Any proposed adjustments would result in an adjustment to the net operating loss carryforward for which a valuation allowance has been provided against the full amount. The Company has not been audited by the international tax authorities or any states in connection with income taxes. The Company’s New York State tax returns have been subject to annual desk reviews which have resulted in insignificant adjustments to the related franchise tax liabilities and credits. The Company’s tax years generally remain open to examination for all federal, state and foreign tax matters until its net operating loss carryforwards are utilized and the applicable statutes of limitation have expired. The federal and state tax authorities can generally reduce a net operating loss (but not create taxable income) for a period outside the statute of limitations in order to determine the correct amount of net operating loss which may be allowed as a deduction against income for a period within the statute of limitations. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitment and Contingencies | (11) Commitment and Contingencies The Company is a party to several legal proceedings. Refer to Part II, Item 1 Legal Proceedings in this Quarterly Report on Form 10-Q for more information. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | (12) Subsequent Events The Company completed an evaluation of the impact of any subsequent events through the date financial statements were issued and determined there were no subsequent events requiring disclosure in or adjustment to these financial statements. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These interim condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (GAAP) and with the SEC’s instructions to Form 10-Q and Article 10 of Regulation S-X. They include the accounts of all entities controlled by Delcath and all significant inter-company accounts and transactions have been eliminated in consolidation. The preparation of interim financial statements requires management to make assumptions and estimates that impact the amounts reported. These interim condensed consolidated financial statements, in the opinion of management, reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company’s results of operations, financial position and cash flows for the interim periods ended September 30, 2015 and 2014; however, certain information and footnote disclosures normally included in our Annual Report have been condensed or omitted as permitted by GAAP. It is important to note that the Company’s results of operations and cash flows for interim periods are not necessarily indicative of the results of operations and cash flows to be expected for a full fiscal year or any interim period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) that updates the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also amends the required disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company expects to adopt this guidance when effective, and does not anticipate that this guidance will materially impact its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt this guidance when effective, and does not anticipate that this guidance will materially impact its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the ASU (1) provides a definition of the term substantial doubt, (2) requires an evaluation every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plans, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This standard is effective for the fiscal years ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the accounting transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: (in thousands) September 30, 2015 December 31, 2014 Raw materials $ 229 $ 203 Work-in-process 115 63 Finished goods 58 83 Total inventory $ 402 $ 349 |
Prepaid Expenses and Other Cu20
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: (in thousands) September 30, 2015 December 31, 2014 Insurance premiums $ 98 $ 591 Kits for clinical use 167 161 Professional Fees 177 - Other 223 222 Total prepaid expenses and other current assets $ 665 $ 974 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Components of property, plant and equipment | Property, plant, and equipment consist of the following: (in thousands) September 30, 2015 December 31, 2014 Leaseholds $ 1,479 $ 1,629 Enterprise hardware and software 1,586 1,573 Furniture 355 361 Equipment 1,393 1,380 Buildings and land 607 603 Property, plant and equipment, gross 5,420 5,546 Accumulated depreciation (4,018 ) (3,748 ) Property, plant and equipment, net $ 1,402 $ 1,798 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables And Accruals [Abstract] | |
Schedule of accrued expenses | Accrued expenses consist of the following: (in thousands) September 30, 2015 December 31, 2014 Compensation, excluding taxes $ 966 $ 2,187 Professional fees 167 341 Short-term portion of lease restructuring 214 239 Deferred rent 28 58 Other 647 778 Total accrued expenses $ 2,022 $ 3,603 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | |
Schedule of restructuring and related costs | The following table provides the year-to-date activity of the Company’s restructuring reserves as of September 30, 2015: (in thousands) Employee Costs Lease Liability Reserve balance at December 31, 2014 $ 824 $ 1,282 Charges 403 — Payments/Utilizations (1,048 ) (194 ) Reserve balance at September 30, 2015 $ 179 $ 1,088 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of the warrants | The fair value of the Warrants at September 30, 2015 was determined by using an option pricing model with the following assumptions: Series A 2015 Warrants Series B 2015 Warrants February 2015 Warrants October 2013 Warrants Expected volatility 91.13% 122.86% 91.13% 93.75% Risk-free interest rates 1.31% 0.00% 1.26% 0.92% Expected life (in years) 4.75 0.15 4.50 3.00 |
Assets and liabilities measured at fair value on a recurring basis | The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2015, aggregated by the level in the fair value hierarchy within which those measurements fall in accordance with ASC 820. Assets and Liabilities Measured at Fair Value on a Recurring Basis (in thousands) Level 1 Level 2 Level 3 Balance at September 30, Assets Money market funds (included in Cash and Cash Equivalents) $ 1,943 $ — $ — $ 1,943 Liabilities Derivative instrument liabilities $ — $ — $ 2,935 $ 2,935 |
Fair value measurements using significant unobservable inputs | The table below presents the activity within Level 3 of the fair value hierarchy for the nine months ended September 30, 2015: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Warrant Liability Balance at December 31, 2014 $ 225 Total change in the liability included in earnings (1,414 ) Fair value of warrants issued 4,247 Fair value of warrants exercised (123 ) Balance at September 30, 2015 $ 2,935 |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Anti-dilutive securities excluded from the computation of earnings per share | The following potentially dilutive securities were excluded from the computation of earnings per share as of September 30, 2015 and 2014 because their effects would be anti-dilutive: September 30, 2015 2014 Stock options 766,135 227,718 Unvested restricted shares 576,086 64,515 Warrants 18,059,000 850,138 Total 19,401,221 1,142,371 |
General - Additional Informatio
General - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Reverse stock split ratio | 0.0625 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 229 | $ 203 |
Work-in-process | 115 | 63 |
Finished goods | 58 | 83 |
Total inventory | $ 402 | $ 349 |
Prepaid Expenses and Other Cu28
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Insurance premiums | $ 98 | $ 591 |
Kits for clinical use | 167 | 161 |
Professional Fees | 177 | |
Other | 223 | 222 |
Total prepaid expenses and other current assets | $ 665 | $ 974 |
Property, Plant, and Equipmen29
Property, Plant, and Equipment - Components of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,420 | $ 5,546 |
Accumulated depreciation | (4,018) | (3,748) |
Property, plant and equipment, net | 1,402 | 1,798 |
Leaseholds [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,479 | 1,629 |
Enterprise Hardware and Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,586 | 1,573 |
Furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 355 | 361 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,393 | 1,380 |
Buildings and Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 607 | $ 603 |
Property, Plant, and Equipmen30
Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 100 | $ 200 | $ 504 | $ 742 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables And Accruals [Abstract] | ||
Compensation, excluding taxes | $ 966 | $ 2,187 |
Professional fees | 167 | 341 |
Short-term portion of lease restructuring | 214 | 239 |
Deferred rent | 28 | 58 |
Other | 647 | 778 |
Total accrued expenses | $ 2,022 | $ 3,603 |
Restructuring Expenses - Additi
Restructuring Expenses - Additional Information (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | 33 Months Ended | |||
Sep. 30, 2015USD ($)Lease | Dec. 31, 2013Employee | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 18, 2014USD ($) | May. 22, 2014USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||||
Number of positions eliminated | Employee | 59 | |||||
Severance costs | $ 5,500 | |||||
Other non-current liabilities | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve balance | $ 900 | 900 | ||||
Sub-lease 1 | Facility Closing | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve balance | $ 900 | |||||
Sub Lease 2 | Facility Closing | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve balance | $ 700 | |||||
Property Subject to Operating Lease | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve balance | $ 1,088 | 1,088 | $ 1,282 | |||
Number of sub leases | Lease | 2 | |||||
Accrued Expenses [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve balance | $ 200 | 200 | ||||
Accrued Expenses [Member] | Sub Lease 2 | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve balance | $ 200 | $ 200 |
Restructuring Expenses - Schedu
Restructuring Expenses - Schedule of Restructuring and Related Costs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Employee Costs | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring reserve balance | $ 824 |
Charges | 403 |
Payments/Utilizations | (1,048) |
Restructuring reserve balance | 179 |
Lease Liability | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring reserve balance | 1,282 |
Payments/Utilizations | (194) |
Restructuring reserve balance | $ 1,088 |
Stockholders Equity - Stock Iss
Stockholders Equity - Stock Issuances - Additional Information (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jul. 31, 2015USD ($)shares | Feb. 28, 2015shares | Oct. 31, 2013shares | May. 31, 2012shares | Sep. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | Mar. 31, 2013USD ($)$ / shares | |
Stockholders Equity Note [Line Items] | ||||||||
Reverse stock split ratio | 0.0625 | |||||||
Common stock, shares authorized (in shares) | shares | 170,000,000 | 170,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||
Number of fractional shares were issued in connection with the reverse stock split | shares | 0 | |||||||
Common stock sold through the program (in shares) | shares | 9,400,000 | 2,500,000 | 1,300,000 | 1,000,000 | ||||
Proceeds of common stock issued, net of related expenses | $ 6,000,000 | |||||||
ATM Programs [Member] | Cowen and Company, LLC [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||
Aggregate proceeds from sale of common stock under equity offering program, maximum | $ 50,000,000 | |||||||
Common stock sold through the program (in shares) | shares | 1,000,000 | 1,000,000 | ||||||
Proceeds from issuance of common stock | $ 4,800,000 | $ 5,000,000 | ||||||
Proceeds of common stock issued, net of related expenses | $ 4,700,000 | $ 4,800,000 | ||||||
Aggregate proceeds from sale of common stock under equity offering program, remaining | $ 39,900,000 |
Stockholders Equity - Warrants
Stockholders Equity - Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | |||
Jul. 31, 2015 | Feb. 28, 2015 | Oct. 31, 2013 | May. 31, 2012 | Sep. 30, 2015 | |
Class Of Warrant Or Right [Line Items] | |||||
Common stock sold through the program (in shares) | 9,400,000 | 2,500,000 | 1,300,000 | 1,000,000 | |
Proceeds from issuance of private placement | $ 2.6 | $ 7.5 | $ 21.5 | ||
Net proceeds from issuance of private placement | $ 2.5 | $ 6.9 | $ 21.1 | ||
Sale of units to underwriter | 9,400,000 | ||||
Proceeds of common stock issued, net of related expenses | $ 6 | ||||
Series A Common Stock Warrants [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants exercisable per share price (in dollars per share) | $ 0.87 | ||||
Number of warrants outstanding (in shares) | 7,000,000 | ||||
Number of warrants converted | 7,000,000 | ||||
Gross Proceeds From Underwriting Offering | $ 7 | ||||
Warrants expiry period | 5 years | ||||
Series B Common Stock Warrants [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants exercisable per share price (in dollars per share) | $ 0.75 | ||||
Number of warrants outstanding (in shares) | 9,400,000 | ||||
Number of warrants converted | 9,400,000 | ||||
Warrants expiry period | 90 days | ||||
Series A and B Common Stock Warrants [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Estimated fair value allocated to warrants issued | $ 3.4 | ||||
2012 Warrants [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants issued (in shares) | 300,000 | ||||
Estimated fair value allocated to warrants issued | $ 3.4 | ||||
Warrants Exercised (in shares) | 200,000 | ||||
Net proceeds from exercise of warrants | $ 0.1 | ||||
Term period for warrants | 3 years | ||||
Warrants expiration date | May 31, 2015 | ||||
February 2015 Warrants [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants issued (in shares) | 1,100,000 | ||||
Estimated fair value allocated to warrants issued | $ 0.8 | ||||
Term period for warrants | 5 years | ||||
Warrants exercisable per share price (in dollars per share) | $ 0.74 | ||||
Number of warrants outstanding (in shares) | 1,100,000 | ||||
2013 Warrants [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants issued (in shares) | 600,000 | ||||
Estimated fair value allocated to warrants issued | $ 1.9 | ||||
Term period for warrants | 5 years | ||||
Warrants exercisable per share price (in dollars per share) | $ 7.04 | ||||
Number of warrants outstanding (in shares) | 600,000 |
Stockholders Equity - Stock Inc
Stockholders Equity - Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | May. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ 255 | $ 321 | |||||
Restricted stock compensation expense | $ 100 | 189 | 96 | ||||
Recognized compensation expense | $ 36 | 100 | |||||
Stock Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ 100 | $ 100 | $ 300 | $ 300 | |||
Stock options granted | 500,000 | 75,000 | |||||
Stock Options [Member] | Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options granted, term | 10 years | ||||||
Restricted Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock options granted | 600,000 | 63,000 | |||||
2004 Stock Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares reserved for the issuance (in shares) | 187,500 | 187,500 | |||||
2009 Stock Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares reserved for the issuance (in shares) | 1,506,250 | 1,506,250 | 406,250 | ||||
Increased number of shares (in shares) | 1,100,000 | ||||||
Shares available for grant | 175,232 | 175,232 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Input | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Fair Value Disclosures [Abstract] | |||||
Number of inputs used for valuation of warrants | Input | 6 | ||||
Derivative warrant liability [Abstract] | |||||
Change in fair value of the warrant liability, net | $ 1,253 | $ 519 | $ 1,414 | $ 1,612 | |
Derivative warrant liabilities | $ 2,935 | $ 2,935 | $ 225 | ||
Hypothetical change in market price of common shares (in hundredths) | 10.00% | ||||
Impact of the hypothetical change in market price of common shares on derivative liability | $ 600 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Warrants (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Series A 2015 Warrants [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Expected volatility (in hundredths) | 91.13% |
Risk-free interest rates (in hundredths) | 1.31% |
Expected life (in years) | 4 years 9 months |
Series B 2015 Warrants [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Expected volatility (in hundredths) | 122.86% |
Risk-free interest rates (in hundredths) | 0.00% |
Expected life (in years) | 1 month 24 days |
February 2015 Warrants [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Expected volatility (in hundredths) | 91.13% |
Risk-free interest rates (in hundredths) | 1.26% |
Expected life (in years) | 4 years 6 months |
October 2013 Warrants [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Expected volatility (in hundredths) | 93.75% |
Risk-free interest rates (in hundredths) | 0.92% |
Expected life (in years) | 3 years |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Derivative Instruments Liabilities [Member] | |
Liabilities [Abstract] | |
Total Liabilities | $ 2,935 |
Level 3 [Member] | Derivative Instruments Liabilities [Member] | |
Liabilities [Abstract] | |
Total Liabilities | 2,935 |
Money Market Funds [Member] | |
Assets [Abstract] | |
Total Assets (included in Cash and Cash Equivalents) | 1,943 |
Money Market Funds [Member] | Level 1 [Member] | |
Assets [Abstract] | |
Total Assets (included in Cash and Cash Equivalents) | $ 1,943 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Roll Forward] | ||
Balance at December 31, 2014 | $ 225 | |
Total change in the liability included in earnings | (1,414) | |
Fair value of warrants issued | 4,247 | |
Fair value of warrants exercised | (123) | $ (143) |
Balance at September 30, 2015 | $ 2,935 |
Net Loss per Common Share - Ant
Net Loss per Common Share - Anti-Dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 19,401,221 | 1,142,371 |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 766,135 | 227,718 |
Unvested Restricted Shares [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 576,086 | 64,515 |
Warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 18,059,000 | 850,138 |