Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 16, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MNOV | ||
Entity Registrant Name | MEDICINOVA, INC. | ||
Entity Central Index Key | 0001226616 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 48,680,867 | ||
Entity Public Float | $ 227,193,094 | ||
Entity File Number | 001-33185 | ||
Entity Tax Identification Number | 33-0927979 | ||
Entity Address, Address Line One | 4275 Executive Square | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | La Jolla | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92037 | ||
City Area Code | 858 | ||
Local Phone Number | 373-1500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2021 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 60,036,763 | $ 63,792,657 |
Prepaid expense and other current assets | 680,171 | 511,916 |
Total current assets | 60,716,934 | 64,304,573 |
Goodwill | 9,600,240 | 9,600,240 |
In-process research and development | 4,800,000 | 4,800,000 |
Property and equipment, net | 55,700 | 40,550 |
Other long-term assets | 246,236 | 459,811 |
Total assets | 75,419,110 | 79,205,174 |
Current liabilities: | ||
Accounts payable | 616,629 | 451,326 |
Accrued liabilities and other current liabilities | 1,577,321 | 1,776,912 |
Total current liabilities | 2,193,950 | 2,228,238 |
Long-term deferred revenue | 1,694,163 | 1,694,163 |
Deferred tax liability | 201,792 | 201,792 |
Other long-term liabilities | 2,705 | 186,358 |
Total liabilities | 4,092,610 | 4,310,551 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized at December 31, 2020 and December 31, 2019; 45,024,560 and 43,908,065 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 45,025 | 43,908 |
Additional paid-in capital | 454,296,536 | 444,016,341 |
Accumulated other comprehensive loss | (88,219) | (92,681) |
Accumulated deficit | (382,926,842) | (369,072,945) |
Total stockholders’ equity | 71,326,500 | 74,894,623 |
Total liabilities and stockholders’ equity | $ 75,419,110 | $ 79,205,174 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 45,024,560 | 43,908,065 |
Common stock, shares outstanding | 45,024,560 | 43,908,065 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses: | ||
Research, development and patents | $ 7,484,835 | $ 6,079,042 |
General and administrative | 6,693,488 | 7,952,035 |
Total operating expenses | 14,178,323 | 14,031,077 |
Operating loss | (14,178,323) | (14,031,077) |
Interest income | 361,182 | 1,148,242 |
Other expense, net | (38,404) | (46,163) |
Loss before income taxes | (13,855,545) | (12,928,998) |
Income tax benefit (expense) | 1,648 | (12,660) |
Net loss applicable to common stockholders | $ (13,853,897) | $ (12,941,658) |
Basic and diluted net loss per common share | $ (0.31) | $ (0.30) |
Shares used to compute basic and diluted net loss per common share | 44,413,441 | 43,158,830 |
Net loss applicable to common stockholders | $ (13,853,897) | $ (12,941,658) |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 4,462 | 469 |
Comprehensive loss | $ (13,849,435) | $ (12,941,189) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
Balance at Dec. 31, 2018 | $ 73,107,612 | $ 42,081 | $ 429,289,968 | $ (93,150) | $ (356,131,287) |
Balance, shares at Dec. 31, 2018 | 42,081,306 | ||||
Share-based compensation | 4,112,649 | 4,112,649 | |||
Issuance of shares under an employee stock purchase plan (ESPP) | 27,320 | $ 4 | 27,316 | ||
Issuance of shares under an employee stock purchase plan (ESPP), shares | 3,942 | ||||
Issuance of common stock under at-the-market equity distribution and sales agreements, net of offering costs | 6,469,510 | $ 805 | 6,468,705 | ||
Issuance of common stock under at-the-market equity distribution and sales agreements, net of offering costs, shares | 804,963 | ||||
Issuance of common stock for option exercises | $ 4,118,721 | $ 1,018 | 4,117,703 | ||
Issuance of common stock for option exercises, shares | 1,017,854 | 1,017,854 | |||
Net loss | $ (12,941,658) | (12,941,658) | |||
Foreign currency translation adjustments | 469 | 469 | |||
Balance at Dec. 31, 2019 | 74,894,623 | $ 43,908 | 444,016,341 | (92,681) | (369,072,945) |
Balance, shares at Dec. 31, 2019 | 43,908,065 | ||||
Share-based compensation | 3,175,553 | 3,175,553 | |||
Issuance of shares under an employee stock purchase plan (ESPP) | $ 11,708 | $ 4 | 11,704 | ||
Issuance of shares under an employee stock purchase plan (ESPP), shares | 3,834 | 3,834 | |||
Issuance of common stock under at-the-market equity distribution and sales agreements, net of offering costs | $ 6,188,079 | $ 825 | 6,187,254 | ||
Issuance of common stock under at-the-market equity distribution and sales agreements, net of offering costs, shares | 824,798 | ||||
Issuance of common stock for option exercises | $ 905,972 | $ 288 | 905,684 | ||
Issuance of common stock for option exercises, shares | 287,863 | 287,863 | |||
Net loss | $ (13,853,897) | (13,853,897) | |||
Foreign currency translation adjustments | 4,462 | 4,462 | |||
Balance at Dec. 31, 2020 | $ 71,326,500 | $ 45,025 | $ 454,296,536 | $ (88,219) | $ (382,926,842) |
Balance, shares at Dec. 31, 2020 | 45,024,560 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | ||
Net loss | $ (13,853,897) | $ (12,941,658) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash share-based compensation | 3,175,553 | 4,112,649 |
Depreciation and amortization | 21,342 | 23,944 |
Changes in assets and liabilities: | ||
Prepaid expenses and other current and long-term assets | 54,954 | (514,021) |
Accounts payable, accrued liabilities and other current and long-term liabilities | (224,314) | 194,099 |
Net cash used in operating activities | (10,826,362) | (9,124,987) |
Investing activities: | ||
Acquisitions of property and equipment | (36,492) | (11,272) |
Net cash used in investing activities | (36,492) | (11,272) |
Financing activities: | ||
Proceeds from issuance of common stock and exercise of common stock options | 7,297,891 | 10,876,600 |
Common stock issuance costs | (203,840) | (288,369) |
Proceeds from issuance of equity under ESPP | 11,708 | 27,320 |
Net cash provided by financing activities | 7,105,759 | 10,615,551 |
Effects of foreign exchange rates on cash | 1,201 | (53) |
Net (decrease) increase in cash and cash equivalents | (3,755,894) | 1,479,239 |
Cash and cash equivalents, beginning of period | 63,792,657 | 62,313,418 |
Cash and cash equivalents, end of period | 60,036,763 | 63,792,657 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | $ 1,485 | $ 11,265 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization and Business MediciNova, Inc. (the Company) was incorporated in the state of Delaware in September 2000 and is a public company. The Company’s common stock is listed in both the United States and Japan and trades on the NASDAQ Global Market and the JASDAQ Market of the Tokyo Stock Exchange. The Company is a biopharmaceutical company focused on developing novel therapeutics for the treatment of serious diseases with unmet medical needs with a commercial focus on the United States market. The Company’s current strategy is to focus its development activities on MN-166 (ibudilast) for neurological and other disorders such as progressive multiple sclerosis (MS), amyotrophic lateral sclerosis (ALS), chemotherapy-induced peripheral neuropathy, degenerative cervical myelopathy, glioblastoma, substance dependence and addiction (e.g., methamphetamine dependence, opioid dependence, and alcohol dependence), and prevention of acute respiratory distress syndrome, and MN-001 (tipelukast) for fibrotic diseases such as nonalcoholic steatohepatitis (NASH) and idiopathic pulmonary fibrosis (IPF). The Company’s pipeline also includes MN-221 (bedoradrine) for the treatment of acute exacerbation of asthma, and MN-029 (denibulin) for solid tumor cancers. Principles of Consolidation The consolidated financial statements include the accounts of MediciNova, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations as, and manages its business in, one operating segment – the acquisition and development of small molecule therapeutics for the treatment of serious diseases with unmet medical needs. Impact of COVID-19 on the Company’s Business The pandemic caused by an outbreak of a new strain of coronavirus (“COVID-19” or “the pandemic”) has resulted, and is likely to continue to result, in significant national and global economic disruption and may adversely affect the Company’s business. Although the pandemic resulted in a decrease in the number of patient visits at certain of the Company’s clinical trial sites, the Company expects this effect to be temporary. The Company has seen an increase in the number of patient visits compared to earlier in the pandemic and the Company continues to enroll patients in clinical trials. Throughout the pandemic, the Company has continued with routine clinical trial activities including executing new clinical trial agreements, negotiating budgets, institutional review board (IRB) approvals, site training, and other activities related to the initiation of new clinical trial sites. In addition, following the outbreak of the pandemic, the Company designed a clinical trial to evaluate MN-166 (ibudilast) for prevention of acute respiratory distress syndrome (ARDS) caused by COVID-19. Based on the Company’s current assessment, the Company does not expect a material negative impact on its clinical development plans, long-term development timeline or liquidity due to the worldwide spread of the COVID-19 virus. However, the Company is actively monitoring this situation and the possible effects on its financial condition, liquidity, operations, suppliers, industry, and workforce. Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of cash and other highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents at December 31, 2020 and 2019 consisted of money market funds. Concentrations and Credit Risk The Company maintains cash balances at various financial institutions and such balances commonly exceed the $250,000 amount insured by the Federal Deposit Insurance Corporation. The Company also maintains money market funds at various financial institutions which are not federally insured although are invested primarily in U.S. government securities. The Company has not experienced any losses in such accounts and management believes that the Company does not have significant credit risk with respect to such cash and cash equivalents. Fair Value of Financial Instruments Financial instruments, including cash equivalents and accounts payable, are carried at cost, which management believes approximates fair value because of the short-term nature of these instruments. IPR&D, Long-Lived Assets and Goodwill Amounts incurred related to in-process research and development (“IPR&D”) or asset purchases of IPR&D are expensed as incurred. Amounts allocated to IPR&D in connection with a business combination are recorded at fair value and are considered indefinite-lived intangible assets until completion or abandonment of the associated research and development efforts. If and when development is complete, which generally occurs when regulatory approval to market a product is obtained, the associated assets are deemed finite-lived and amortized over a period that best reflects the economic benefits provided by these assets. During the period the assets are considered indefinite-lived, they will not be amortized but will be tested annually for impairment or more frequently if indicators of impairment exist. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative assessment. If, after assessing qualitative factors, the Company determines it is not more likely than not that the fair value is less than its carrying amount, then a quantitative assessment is unnecessary. If the quantitative assessment is deemed necessary, the excess of the carrying value over fair value will be recorded as an impairment. The qualitative assessment focuses on the key inputs, assumptions and rationale utilized in the establishment of the carrying value and related changes since the last quantitative assessment. Based on the results of the Company’s annual qualitative assessment, the Company concluded that it is not more likely than not that IPR&D was impaired for any of the periods presented. The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset (or asset group) may not be recoverable, and the Company will perform an impairment analysis. Long-lived assets are deemed to be impaired when the undiscounted cash flows expected to be generated by the asset (or asset group) are less than the asset’s carrying amount. Any required impairment loss would be measured as the amount by which the asset’s (or asset group’s) carrying value exceeds its fair value and would be recorded as a reduction in the carrying value of the related asset and a charge to operating expense. There were no events or changes in circumstances to indicate that the carrying value of an asset (or asset group) may not be recoverable. Goodwill is reviewed for impairment annually (as of December 31st) or more frequently if indicators of impairment exist. As the Company operates in a single the fair value exceeds the carrying value as a result of either the qualitative or quantitative test, goodwill is not considered impaired. The qualitative factors include economic en vironment, business climate, market capitalization, operating performance, competition, and other factors. The Company placed the highest weight in excess cushion of the market capitalization to the equity carrying value in the analysis. Based on the results of the Company’s annual qualitative assessment, the Company concluded that it is not more likely than not that goodwill was impaired for any of the periods presented. Research, Development and Patents Research and development costs are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, facilities and depreciation, research and development supplies, licenses and outside services. Such research and development costs totaled $7.1 million and $5.7 million for the years ended December 31, 2020 and 2019, respectively. Costs related to filing and pursuing patent applications are expensed as incurred, as recoverability of such expenditures is uncertain. The Company includes all external costs related to the filing of patents on developments in Research, Development and Patents expenses. Such patent-related expenses totaled $0.4 million and $0.3 million for the years ended December 31, 2020 and 2019, respectively. Clinical Trial Accruals and Prepaid Expenses Costs for preclinical studies, clinical studies and manufacturing activities are recognized as research and development expenses based on an evaluation of the progress by Company vendors towards completion of specific tasks, using data such as patient enrollment, clinical site activations or information provided to the Company by such vendors regarding their actual costs incurred. Payments for these activities are based on the terms of individual contracts and payment timing may differ significantly from the period in which the services are performed. The Company determines accrual estimates through reports from and discussions with applicable personnel and outside service providers as to the progress or state of completion of studies, or the services completed. The Company’s estimates of accrued expenses as of each balance sheet date are based on the facts and circumstances known at the time. Costs that are paid in advance of performance are deferred as a prepaid expense and amortized over the service period as the services are provided. Share-Based Compensation The Company estimates the fair value of stock options using the Black-Scholes option pricing model on the date of grant. The fair value of equity instruments expected to vest are recognized and amortized on a straight-line basis over the requisite service period of the award, which is generally three to four years; however, the Company’s equity compensation plans provide for any vesting schedule as the board may deem appropriate. Forfeitures are recognized as they occur. The Company issues employee performance-based stock options, the vesting of which is based on a determination made by the board of directors as to the achievement of certain corporate objectives at the end of the performance period. The grant date of such awards is the date on which the board of directors makes its determination. For periods preceding the grant date, the expense related to these awards is measured based on their fair value at each reporting date. Net Loss Per Share The Company computes basic net loss per share using the weighted average number of common shares outstanding during the period. Diluted net income per share is based upon the weighted average number of common shares and potentially dilutive securities (common share equivalents) outstanding during the period. Common share equivalents outstanding, determined using the treasury stock method, are comprised of shares that may be issued under the outstanding stock options. Common share equivalents were excluded from the diluted net loss per share calculation because of their anti-dilutive effect for all periods presented. Potentially dilutive outstanding securities of 7,401,387 and 6,802,093 for the years ended December 31, 2020 and 2019, respectively, were excluded from diluted net loss per common share because of their anti-dilutive effect. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Revenue Recognition Policy Revenues consist mainly of research and development services performed under a contract with a customer. The Company evaluates the separate performance obligation(s) under each contract, allocates the transaction price to each performance obligation considering the estimated stand-alone selling prices of the services and recognizes revenue upon the satisfaction of such obligations at a point in time or over time dependent on the satisfaction of one of the following criteria: (1) the customer simultaneously receives and consumes the economic benefits provided by the vendor’s performance (2) the vendor creates or enhances an asset controlled by the customer (3) the vendor’s performance does not create an asset for which the vendor has an alternative use, and (4) the vendor has an enforceable right to payment for performance completed to date. Kissei Pharmaceutical Co., Ltd In October 2011, the Company entered into a collaboration agreement with Kissei Pharmaceutical Co., Ltd., (“Kissei”), to perform research and development services relating to MN-221 (bedoradrine) The Company concluded the two studies to be performed under the agreement represented two separate performance obligations. The transaction price was allocated between the two studies that were deemed separate performance obligations based on the expected costs to be incurred for each obligation. While amounts were received in advance for the studies, at contract inception, both parties anticipated the contract would be completed within 1 year, so no significant financing component existed at contract inception. Revenue is recognized proportional to the total costs expected for each performance obligation as incurred over the service period. The first study was completed in 2013 and the timing of the second study is undetermined as of December 31, 2020 No |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs are quoted prices for similar items in active markets or inputs are quoted prices for identical or similar items in markets that are not active near the measurement date; and Level 3: Unobservable inputs due to little or no market data, which require the reporting entity to develop its own assumptions Cash equivalents including money market accounts of $694,127 and $691,649 measured at fair value as of December 31, 2020 and 2019, respectively, are classified within Level 1. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Details | 4. Balance Sheet Details Property and Equipment Property and equipment, net, consist of the following: December 31, 2020 2019 Leasehold improvements $ 17,191 $ 16,326 Furniture and equipment 244,021 236,622 Software 318,105 285,461 579,317 538,409 Less accumulated depreciation and amortization (523,617 ) (497,859 ) Property and equipment, net $ 55,700 $ 40,550 The Company uses the straight-line method to record depreciation expense with useful lives of three to five years. Depreciation and amortization of property and equipment of $21,342, and $23,944 was recorded for the years ended December 31, 2020 and 2019, respectively. Accrued Liabilities and Other Current Liabilities Accrued liabilities and other current liabilities consist of the following: December 31, 2020 2019 Accrued compensation $ 823,254 $ 768,498 Clinical trial accruals 401,789 572,880 Professional services fees 65,207 80,827 Other 287,071 354,707 Total accrued liabilities and other current liabilities $ 1,577,321 $ 1,776,912 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Lease Commitments The Company has operating leases primarily for real estate in the United States and Japan. The United States lease is for the Company’s headquarters in San Diego and is for a term of four years and one month with a term date of December 31, 2021. The Company’s lease in Tokyo, Japan was renewed in May 2019 and has a term of two years with an auto-renewal, two-year As most of the Company’s operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would expect to pay to borrow on a collateralized and fully amortizing basis over a similar term an amount equal to the lease payments in a similar economic environment. Information related to the Company's right-of-use assets and related lease liabilities are as follows: Year Ended December 31, 2020 2019 Cash paid for operating lease liabilities $ 248,648 $ 229,450 Operating lease costs 240,467 226,766 Right-of-use assets obtained in exchange for new operating lease obligations — 534,605 Maturities of operating lease liabilities as of December 31, 2020 were as follows: 2021 192,563 Less imputed interest (7,809 ) Total lease liabilities $ 184,754 Current operating lease liabilities $ 184,754 $ 216,768 Long-term operating lease liabilities — 182,579 Total operating lease liabilities $ 184,754 $ 399,347 Weighted-average remaining lease term 0.86 1.81 Discount rate 8.8 % 8.8 % Product Liability The Company’s business exposes it to liability risks from its potential drug products. A successful product liability claim or series of claims brought against the Company could result in the payment of significant amounts of money and divert management’s attention from running the business. The Company may not be able to maintain insurance on acceptable terms, or the insurance may not provide adequate protection in the case of a product liability claim. To the extent that product liability insurance, if available, does not cover potential claims, the Company would be required to self-insure the risks associated with such claims. The Company believes it carries reasonably adequate insurance for product liability. License and Research Agreements The Company has entered into in-licensing agreements with various pharmaceutical companies. Under the terms of these agreements, the Company has received licenses to research, know-how and technology claimed, in certain patents or patent applications. Under these license agreements, the Company is generally required to make upfront payments and additional payments upon the achievement of milestones and/or royalties on future sales of products until the later of the expiration of the applicable patent or the applicable last date of market exclusivity after the first commercial sale, on a country-by-country basis. No amounts have been expended under these agreements during the years ended December 31, 2020 and 2019. For products currently in development, future potential milestone payments based on product development of MN-166 (ibudilast) and MN-001 ( tipelukast) Legal Proceedings From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. The Company is not aware of any such proceedings or claims that it believes will have, individually or in aggregate, a material adverse effect on its business, financial condition or results of operations. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | 6. Share-based Compensation Stock Incentive Plans In June 2013, the Company adopted the 2013 Equity Incentive Plan, or 2013 Plan, under which the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units and other awards to individuals who are then employees, officers, non-employee directors or consultants of the Company or its subsidiaries. The 2013 Plan is the successor to the Company’s Amended and Restated 2004 Stock Incentive Plan, or 2004 Plan. A total of 2,500,000 shares of common stock were initially reserved for issuance under the 2013 Plan. The Company’s stockholders have subsequently approved increases to the number of shares reserved for issuance under the 2013 plan, including approval of an additional 1,500,000 shares at the annual meeting of stockholders held in June 2020. As of December 31,2020, a total of 8,700,000 shares of common stock were reserved for issuance under the 2013 Plan. In addition, “returning shares” that may become available from time to time are added back to the plan. “Returning shares” are shares that are subject to outstanding awards granted under the 2004 Plan that expire or terminate prior to exercise or settlement, are forfeited because of the failure to vest, are repurchased, or are withheld to satisfy tax withholding or purchase price obligations in connection with such awards. Although the Company no longer grants equity awards under the 2004 Plan, all outstanding stock awards granted under the 2004 Plan will continue to be subject to the terms and conditions as set forth in the agreements evidencing such stock awards and the terms of the 2004 Plan. As of December 31, 2020, 2,897,135 shares remain available for future grant under the 2013 Plan. The Company issues employee performance-based stock options, the vesting of which is based on a determination made by the compensation committee followed by an approval of the board of directors as to the achievement of certain corporate objectives at the end of the performance period. The grant date of such awards is the date on which the board of directors makes its determination. For periods preceding the grant date, the expense related to these awards is measured based on their fair value at each reporting date. As of December 31, 2020, there were a total of 1,161,000 shares underlying performance options that were subject to vesting based on achievement of performance milestones for 2020. In February 2021, the compensation committee and the board of directors determined that the performance milestones were achieved between the 45% and 100% levels and accordingly 1,020,000 of these options vested and the remaining shares were forfeited. Stock Options Options granted under the 2013 Plan and 2004 Plan have terms of ten years from the date of grant unless earlier terminated and generally vest over a three or four-year The exercise price of all options granted during the years ended December 31, 2020 and 2019 was equal to the market value of the Company’s common stock on the date of grant. A summary of stock option activity and related information for the years ended December 31, 2020 and 2019 is as follows: Number of Option Weighted Average Exercise Price Outstanding at December 31, 2018 6,609,647 $ 4.61 Granted 1,337,000 $ 9.67 Exercised (1,017,854 ) $ 4.05 Cancelled (126,700 ) $ 8.84 Outstanding at December 31, 2019 6,802,093 $ 5.61 Granted 1,382,000 $ 6.67 Exercised (287,863 ) $ 3.15 Cancelled (494,843 ) $ 8.73 Outstanding at December 31, 2020 7,401,387 $ 5.70 Exercisable at December 31, 2020 6,120,887 $ 5.48 Number of Option Weighted Average Grant-Date Fair Value Non-vested at December 31, 2019 1,202,000 $ 2.65 Granted 1,382,000 $ 3.70 Vested (965,500 ) $ 5.24 Forfeitures (338,000 ) $ 5.17 Non-vested at December 31, 2020 1,280,500 $ 3.74 The aggregate intrinsic value of options exercised was $0.7 million and $5.2 million for the years ended December 31, 2020 and 2019, respectively. Options outstanding and exercisable at December 31, 2020 had a weighted average contractual life of 5.96 and 5.31 years, respectively. As of December 31, 2020 and 2019, the total intrinsic value of options outstanding was $5.7 million and $11.8 million, respectively. Total intrinsic value of options exercisable was $5.7 million and $11.8 million as of December 31, 2020 and 2019, respectively. Employee Stock Purchase Plan Under the Company’s 2007 Employee Stock Purchase Plan (ESPP), 300,000 shares of common stock were originally reserved for issuance. In addition, the shares reserved automatically increase each year by a number equal to the lesser of: (i) 15,000 shares; (ii) 1% of the outstanding shares of common stock on the last day of the immediately preceding fiscal year; or (iii) such lesser amount as determined by the Board. The ESPP permits full-time employees to purchase common stock through payroll deductions (which cannot exceed 15% of each employee’s compensation) at the lower of 85% of fair market value at the beginning of the offering period or the end of each six-month For the year ended December 31, 2020, an aggregate of 3,834 shares were issued under the ESPP, leaving 214,102 shares available for future issuance. Compensation Expense The estimated fair value of each stock option award was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for stock option grants: Year Ended December 31, 2020 2019 Stock Options Risk-free interest rate 0.41 % 1.72 % Expected volatility of common stock 74.08 % 57.78 % Dividend yield 0.00 % 0.00 % Expected option term (in years) 4.69 4.59 The estimated fair value of employee stock purchase rights under the Company’s ESPP was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for stock option grants: Year Ended December 31, 2020 2019 Employee Stock Purchase Plan Risk-free interest rate 0.15 % 2.20 % Expected volatility of common stock 81.49 % 67.56 % Dividend yield 0.00 % 0.00 % Expected option term (in years) 0.5 0.5 The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of employee stock options. The expected volatility is based on the historical volatility of the Company’s common stock. The Company has not paid nor does the Company anticipate paying dividends on its common stock in the foreseeable future. The expected term of employee stock options is based on the simplified method as provided by the authoritative guidance on stock compensation, as the historical stock option exercise experience does not provide a reasonable basis to estimate the expected term. The simplified method approximates the average historical exercise for stock options. The weighted-average fair value of each stock option granted during the years ended December 31, 2020 and 2019, estimated as of the grant date using the Black-Scholes option valuation model, was $3.70 per option and $2.76 per option, respectively. Stock-based compensation expense for stock option awards and ESPP shares are reflected in total operating expenses for each respective year. The following table summarizes stock-based compensation expenses for the years ended December 31, 2020 and 2019 December 31, 2020 2019 Research, development and patents $ 1,090,839 $ 1,150,995 General and administrative 2,084,714 2,961,654 Total stock-based compensation expense $ 3,175,553 $ 4,112,649 As of December 31, 2020, there was $0.4 million of unamortized compensation cost related to unvested stock option awards which is expected to be recognized over a remaining weighted-average vesting period of 0.16 years, on a straight-line basis. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 7. Stockholders’ Equity Equity Offerings On May 22, 2015, the Company entered into an at-the-market issuance sales agreement (the “2015 ATM Agreement”) with MLV & Co. LLC (MLV), pursuant to which the Company could sell common stock through MLV from time to time up to an aggregate offering price of $30.0 million. The Company agreed to pay MLV an aggregate commission rate of up to 4.0% of the gross proceeds of any common stock sold under this agreement. Proceeds from sales of common stock depended on the number of shares of common stock sold to MLV and the per share purchase price of each transaction. The Company was not obligated to make any sales of common stock under the sales agreement and could terminate the sales agreement at any time upon written notice. On September 16, 2016, the Company amended the original sales agreement with MLV to also include FBR Capital Markets & Co as a sales agent. On August 23, 2019, the Company entered into an at market issuance sales agreement (the “2019 ATM Agreement”) with B. Riley FBR, Inc. (B. Riley FBR) pursuant to which the Company may sell common stock through B. Riley FBR from time to time up to an aggregate offering price of $75.0 million. Sales of the Company’s common stock through B. Riley FBR, can be made directly on NASDAQ, on any other existing trading market for the common stock or through a market maker. B. Riley FBR may also sell the common stock in privately negotiated transactions, subject to the Company’s prior approval. The Company agreed to pay B. Riley FBR an aggregate commission rate of up to 3.5% of the gross proceeds of any common stock sold under this agreement. Proceeds from sales of common stock will depend on the number of shares of common stock sold to B. Riley FBR and the per share purchase price of each transaction. The following table summarizes the activity under the ATM agreements for the following periods: Years Ended December 31, 2020 2019 Gross proceeds $ 6,391,919 $ 6,757,879 Net proceeds $ 6,188,079 $ 6,543,539 Shares sold 824,798 804,963 Price range $5.55 - 10.45 $7.24 - 10.03 Common Stock Reserved for Future Issuance The following table summarizes common stock reserved for future issuance at December 31, 2020: Common Stock reserved for issuance under the ESPP 214,102 Common stock reserved for issuance upon exercise of options outstanding (under the 2004 Plan and 2013 Plan) 7,401,387 Common stock reserved for future equity awards (under the 2013 Plan) 2,897,135 10,512,624 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes A reconciliation of loss before income taxes for domestic and foreign locations for the years ended December 31, 2020 and 2019 is as follows: Year Ended December 31, 2020 2019 United States $ (13,865,784 ) $ (12,952,730 ) Foreign 10,239 23,732 Loss before income taxes $ (13,855,545 ) $ (12,928,998 ) A reconciliation of income tax benefit (expense) for the years ended December 31, 2020 and 2019 is as follows: Year Ended December 31, Current: 2020 2019 Federal $ — $ — State — — Foreign 1,648 (12,660 ) Total current income tax benefit (expense) 1,648 (12,660 ) Deferred: Federal — — State — — Foreign — — Total deferred income tax benefit (expense) — — Total income tax benefit (expense) $ 1,648 $ (12,660 ) The significant components of deferred income taxes at December 31, 2020 and 2019 are as follows: Year Ended December 31, Deferred tax assets: 2020 2019 Net operating loss carryforwards $ 67,403,329 $ 64,600,662 Capitalized licenses 98,411 175,831 Research tax credits 8,980,935 8,690,484 Stock options 2,902,963 3,119,991 Other, net 770,293 601,210 Right-of-use asset 39,615 74,380 Total deferred tax assets 80,195,546 77,262,558 Deferred tax liabilities Right-of-use liability (35,726 ) (68,202 ) In process R&D (1,343,213 ) (1,343,213 ) Total deferred tax liabilities (1,378,939 ) (1,411,415 ) Net deferred tax assets 78,816,607 75,851,143 Valuation allowance (79,018,206 ) (76,052,742 ) Net deferred tax liability $ (201,599 ) $ (201,599 ) The Company has established a valuation allowance against net deferred tax assets due to the uncertainty that such assets will be realized. The Company periodically evaluates the recoverability of the deferred tax assets. At such time as it is determined that it is more likely than not that deferred tax assets will be realizable, the valuation allowance will be reduced. At December 31, 2020, the Company has federal and California net operating loss (NOL), carryforwards of approximately $267.9 million and $159.5 million, respectively. The federal NOL carryforwards began to expire in 2020, and the California NOL carryforwards will begin to expire in 2028. At December 31, 2020, the Company also had federal and California research tax credit carry forwards of approximately $7.3 million and $2.1 million, respectively. The federal research tax credit carryforwards will begin to expire in 2024, and the California research tax credit carryforward does not expire and can be carried forward indefinitely until utilized. On March 27, 2020, the CARES Act was signed into law in response to the economic challenges facing US businesses. Under the CARES Act, the Internal Revenue Code was amended to allow for federal NOL carrybacks for five years to offset previous years income, or can be carryforward indefinitely to offset 100% of taxable income for the tax year 2020 and 80% of taxable income for tax years 2021 and thereafter. The above NOL carryforward and the research tax credit carryforwards are subject to an annual limitation under Section 382 and 383 of the Internal Revenue Code of 1986, and similar state provisions due to ownership change limitations that have occurred which will limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382 and 383, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50 percentage points over a three-year period. The Company has not completed an IRC Section 382/383 analysis since 2011 regarding the limitation of net operating loss and research and development credit carryforwards. There is a risk that additional changes in ownership have occurred since the completion of the Company’s analysis, which was through December 2011. If a change in ownership were to have occurred, additional NOL and tax credit carryforwards could be eliminated or restricted. If eliminated, the related asset would be removed from the deferred tax asset schedule with a corresponding reduction in the valuation allowance. Due to the existence of the valuation allowance, limitations created by future ownership changes, if any, related to the Company’s operations in the United States will not impact the Company’s effective tax rate. A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2020 2019 Federal statutory income tax rate 21.0 % 21.0 % State income taxes, net of federal benefit 5.2 3.2 Tax credits 2.1 2.0 Change in valuation allowance (21.4 ) (15.0 ) Permanent differences — (0.1 ) Expiration of attributes (1.8 ) — Stock compensation (5.2 ) (11.1 ) Other 0.1 (0.1 ) Provision for income taxes 0.0 % (0.1 )% The Company files income tax returns in the United States, California and foreign jurisdictions. Due to the Company’s losses incurred, the Company is potentially subject to income tax examination by tax authorities from inception to date. The Company’s policy is to recognize interest expense and penalties related to income tax matters as tax expense. At December 31, 2020, there are no unrecognized tax benefits nor any significant accruals for interest related to unrecognized tax benefits or tax penalties. |
Employee Savings Plan
Employee Savings Plan | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Savings Plan | 9. Employee Savings Plan The Company has an employee savings plan available to substantially all employees. Under the plan, an employee may elect salary reductions which are contributed to the plan. The plan provides for discretionary contributions by the Company, which totaled $81,647 and $78,412 for the years ended December 31, 2020 and 2019, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events On January 29, 2021 the Company sold and issued to an investor 3,656,307 shares of the Company’s common stock at a price of $5.47 per share for approximately $20 million in cash proceeds, net of approximately $0.1 million in issuance costs, in a private placement pursuant to the terms and conditions of a Securities Purchase Agreement dated as of January 11, 2021 by and between the Company and such investor. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of MediciNova, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. |
Segment Reporting | Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations as, and manages its business in, one operating segment – the acquisition and development of small molecule therapeutics for the treatment of serious diseases with unmet medical needs. |
Impact of COVID-19 on the Company’s Business | Impact of COVID-19 on the Company’s Business The pandemic caused by an outbreak of a new strain of coronavirus (“COVID-19” or “the pandemic”) has resulted, and is likely to continue to result, in significant national and global economic disruption and may adversely affect the Company’s business. Although the pandemic resulted in a decrease in the number of patient visits at certain of the Company’s clinical trial sites, the Company expects this effect to be temporary. The Company has seen an increase in the number of patient visits compared to earlier in the pandemic and the Company continues to enroll patients in clinical trials. Throughout the pandemic, the Company has continued with routine clinical trial activities including executing new clinical trial agreements, negotiating budgets, institutional review board (IRB) approvals, site training, and other activities related to the initiation of new clinical trial sites. In addition, following the outbreak of the pandemic, the Company designed a clinical trial to evaluate MN-166 (ibudilast) for prevention of acute respiratory distress syndrome (ARDS) caused by COVID-19. Based on the Company’s current assessment, the Company does not expect a material negative impact on its clinical development plans, long-term development timeline or liquidity due to the worldwide spread of the COVID-19 virus. However, the Company is actively monitoring this situation and the possible effects on its financial condition, liquidity, operations, suppliers, industry, and workforce. |
Use of Estimates | Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and other highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents at December 31, 2020 and 2019 consisted of money market funds. |
Concentrations and Credit Risk | Concentrations and Credit Risk The Company maintains cash balances at various financial institutions and such balances commonly exceed the $250,000 amount insured by the Federal Deposit Insurance Corporation. The Company also maintains money market funds at various financial institutions which are not federally insured although are invested primarily in U.S. government securities. The Company has not experienced any losses in such accounts and management believes that the Company does not have significant credit risk with respect to such cash and cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments, including cash equivalents and accounts payable, are carried at cost, which management believes approximates fair value because of the short-term nature of these instruments. |
IPR&D, Long-Lived Assets and Goodwill | IPR&D, Long-Lived Assets and Goodwill Amounts incurred related to in-process research and development (“IPR&D”) or asset purchases of IPR&D are expensed as incurred. Amounts allocated to IPR&D in connection with a business combination are recorded at fair value and are considered indefinite-lived intangible assets until completion or abandonment of the associated research and development efforts. If and when development is complete, which generally occurs when regulatory approval to market a product is obtained, the associated assets are deemed finite-lived and amortized over a period that best reflects the economic benefits provided by these assets. During the period the assets are considered indefinite-lived, they will not be amortized but will be tested annually for impairment or more frequently if indicators of impairment exist. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative assessment. If, after assessing qualitative factors, the Company determines it is not more likely than not that the fair value is less than its carrying amount, then a quantitative assessment is unnecessary. If the quantitative assessment is deemed necessary, the excess of the carrying value over fair value will be recorded as an impairment. The qualitative assessment focuses on the key inputs, assumptions and rationale utilized in the establishment of the carrying value and related changes since the last quantitative assessment. Based on the results of the Company’s annual qualitative assessment, the Company concluded that it is not more likely than not that IPR&D was impaired for any of the periods presented. The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset (or asset group) may not be recoverable, and the Company will perform an impairment analysis. Long-lived assets are deemed to be impaired when the undiscounted cash flows expected to be generated by the asset (or asset group) are less than the asset’s carrying amount. Any required impairment loss would be measured as the amount by which the asset’s (or asset group’s) carrying value exceeds its fair value and would be recorded as a reduction in the carrying value of the related asset and a charge to operating expense. There were no events or changes in circumstances to indicate that the carrying value of an asset (or asset group) may not be recoverable. Goodwill is reviewed for impairment annually (as of December 31st) or more frequently if indicators of impairment exist. As the Company operates in a single the fair value exceeds the carrying value as a result of either the qualitative or quantitative test, goodwill is not considered impaired. The qualitative factors include economic en vironment, business climate, market capitalization, operating performance, competition, and other factors. The Company placed the highest weight in excess cushion of the market capitalization to the equity carrying value in the analysis. Based on the results of the Company’s annual qualitative assessment, the Company concluded that it is not more likely than not that goodwill was impaired for any of the periods presented. |
Research, Development and Patents | Research, Development and Patents Research and development costs are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, facilities and depreciation, research and development supplies, licenses and outside services. Such research and development costs totaled $7.1 million and $5.7 million for the years ended December 31, 2020 and 2019, respectively. Costs related to filing and pursuing patent applications are expensed as incurred, as recoverability of such expenditures is uncertain. The Company includes all external costs related to the filing of patents on developments in Research, Development and Patents expenses. Such patent-related expenses totaled $0.4 million and $0.3 million for the years ended December 31, 2020 and 2019, respectively. |
Clinical Trial Accruals and Prepaid Expenses | Clinical Trial Accruals and Prepaid Expenses Costs for preclinical studies, clinical studies and manufacturing activities are recognized as research and development expenses based on an evaluation of the progress by Company vendors towards completion of specific tasks, using data such as patient enrollment, clinical site activations or information provided to the Company by such vendors regarding their actual costs incurred. Payments for these activities are based on the terms of individual contracts and payment timing may differ significantly from the period in which the services are performed. The Company determines accrual estimates through reports from and discussions with applicable personnel and outside service providers as to the progress or state of completion of studies, or the services completed. The Company’s estimates of accrued expenses as of each balance sheet date are based on the facts and circumstances known at the time. Costs that are paid in advance of performance are deferred as a prepaid expense and amortized over the service period as the services are provided. |
Share-Based Compensation | Share-Based Compensation The Company estimates the fair value of stock options using the Black-Scholes option pricing model on the date of grant. The fair value of equity instruments expected to vest are recognized and amortized on a straight-line basis over the requisite service period of the award, which is generally three to four years; however, the Company’s equity compensation plans provide for any vesting schedule as the board may deem appropriate. Forfeitures are recognized as they occur. The Company issues employee performance-based stock options, the vesting of which is based on a determination made by the board of directors as to the achievement of certain corporate objectives at the end of the performance period. The grant date of such awards is the date on which the board of directors makes its determination. For periods preceding the grant date, the expense related to these awards is measured based on their fair value at each reporting date. |
Net Loss Per Share | Net Loss Per Share The Company computes basic net loss per share using the weighted average number of common shares outstanding during the period. Diluted net income per share is based upon the weighted average number of common shares and potentially dilutive securities (common share equivalents) outstanding during the period. Common share equivalents outstanding, determined using the treasury stock method, are comprised of shares that may be issued under the outstanding stock options. Common share equivalents were excluded from the diluted net loss per share calculation because of their anti-dilutive effect for all periods presented. Potentially dilutive outstanding securities of 7,401,387 and 6,802,093 for the years ended December 31, 2020 and 2019, respectively, were excluded from diluted net loss per common share because of their anti-dilutive effect. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) |
Revenue Recognition Policy | Revenue Recognition Policy Revenues consist mainly of research and development services performed under a contract with a customer. The Company evaluates the separate performance obligation(s) under each contract, allocates the transaction price to each performance obligation considering the estimated stand-alone selling prices of the services and recognizes revenue upon the satisfaction of such obligations at a point in time or over time dependent on the satisfaction of one of the following criteria: (1) the customer simultaneously receives and consumes the economic benefits provided by the vendor’s performance (2) the vendor creates or enhances an asset controlled by the customer (3) the vendor’s performance does not create an asset for which the vendor has an alternative use, and (4) the vendor has an enforceable right to payment for performance completed to date. |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Property and Equipment Net | Property and equipment, net, consist of the following: December 31, 2020 2019 Leasehold improvements $ 17,191 $ 16,326 Furniture and equipment 244,021 236,622 Software 318,105 285,461 579,317 538,409 Less accumulated depreciation and amortization (523,617 ) (497,859 ) Property and equipment, net $ 55,700 $ 40,550 |
Accrued Liabilities and Other Current Liabilities | Accrued liabilities and other current liabilities consist of the following: December 31, 2020 2019 Accrued compensation $ 823,254 $ 768,498 Clinical trial accruals 401,789 572,880 Professional services fees 65,207 80,827 Other 287,071 354,707 Total accrued liabilities and other current liabilities $ 1,577,321 $ 1,776,912 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Information Related to Right-of-Use Assets and Related Lease Liabilities | Information related to the Company's right-of-use assets and related lease liabilities are as follows: Year Ended December 31, 2020 2019 Cash paid for operating lease liabilities $ 248,648 $ 229,450 Operating lease costs 240,467 226,766 Right-of-use assets obtained in exchange for new operating lease obligations — 534,605 Maturities of operating lease liabilities as of December 31, 2020 were as follows: 2021 192,563 Less imputed interest (7,809 ) Total lease liabilities $ 184,754 Current operating lease liabilities $ 184,754 $ 216,768 Long-term operating lease liabilities — 182,579 Total operating lease liabilities $ 184,754 $ 399,347 Weighted-average remaining lease term 0.86 1.81 Discount rate 8.8 % 8.8 % |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity and Related Information | A summary of stock option activity and related information for the years ended December 31, 2020 and 2019 is as follows: Number of Option Weighted Average Exercise Price Outstanding at December 31, 2018 6,609,647 $ 4.61 Granted 1,337,000 $ 9.67 Exercised (1,017,854 ) $ 4.05 Cancelled (126,700 ) $ 8.84 Outstanding at December 31, 2019 6,802,093 $ 5.61 Granted 1,382,000 $ 6.67 Exercised (287,863 ) $ 3.15 Cancelled (494,843 ) $ 8.73 Outstanding at December 31, 2020 7,401,387 $ 5.70 Exercisable at December 31, 2020 6,120,887 $ 5.48 Number of Option Weighted Average Grant-Date Fair Value Non-vested at December 31, 2019 1,202,000 $ 2.65 Granted 1,382,000 $ 3.70 Vested (965,500 ) $ 5.24 Forfeitures (338,000 ) $ 5.17 Non-vested at December 31, 2020 1,280,500 $ 3.74 |
Weighted-Average Assumptions for Stock Option | The estimated fair value of each stock option award was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for stock option grants: Year Ended December 31, 2020 2019 Stock Options Risk-free interest rate 0.41 % 1.72 % Expected volatility of common stock 74.08 % 57.78 % Dividend yield 0.00 % 0.00 % Expected option term (in years) 4.69 4.59 |
Weighted-Average Assumptions for ESPP | The estimated fair value of employee stock purchase rights under the Company’s ESPP was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for stock option grants: Year Ended December 31, 2020 2019 Employee Stock Purchase Plan Risk-free interest rate 0.15 % 2.20 % Expected volatility of common stock 81.49 % 67.56 % Dividend yield 0.00 % 0.00 % Expected option term (in years) 0.5 0.5 |
Summary of Stock-based Compensation Expenses | The following table summarizes stock-based compensation expenses for the years ended December 31, 2020 and 2019 December 31, 2020 2019 Research, development and patents $ 1,090,839 $ 1,150,995 General and administrative 2,084,714 2,961,654 Total stock-based compensation expense $ 3,175,553 $ 4,112,649 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Activity Under the ATM Agreements | The following table summarizes the activity under the ATM agreements for the following periods: Years Ended December 31, 2020 2019 Gross proceeds $ 6,391,919 $ 6,757,879 Net proceeds $ 6,188,079 $ 6,543,539 Shares sold 824,798 804,963 Price range $5.55 - 10.45 $7.24 - 10.03 |
Common Stock Reserved for Future Issuance | The following table summarizes common stock reserved for future issuance at December 31, 2020: Common Stock reserved for issuance under the ESPP 214,102 Common stock reserved for issuance upon exercise of options outstanding (under the 2004 Plan and 2013 Plan) 7,401,387 Common stock reserved for future equity awards (under the 2013 Plan) 2,897,135 10,512,624 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Loss before Income Taxes for Domestic and Foreign Locations | A reconciliation of loss before income taxes for domestic and foreign locations for the years ended December 31, 2020 and 2019 is as follows: Year Ended December 31, 2020 2019 United States $ (13,865,784 ) $ (12,952,730 ) Foreign 10,239 23,732 Loss before income taxes $ (13,855,545 ) $ (12,928,998 ) |
Reconciliation of Income Tax Benefit (Expense) | A reconciliation of income tax benefit (expense) for the years ended December 31, 2020 and 2019 is as follows: Year Ended December 31, Current: 2020 2019 Federal $ — $ — State — — Foreign 1,648 (12,660 ) Total current income tax benefit (expense) 1,648 (12,660 ) Deferred: Federal — — State — — Foreign — — Total deferred income tax benefit (expense) — — Total income tax benefit (expense) $ 1,648 $ (12,660 ) |
Components of Deferred Income Taxes | The significant components of deferred income taxes at December 31, 2020 and 2019 are as follows: Year Ended December 31, Deferred tax assets: 2020 2019 Net operating loss carryforwards $ 67,403,329 $ 64,600,662 Capitalized licenses 98,411 175,831 Research tax credits 8,980,935 8,690,484 Stock options 2,902,963 3,119,991 Other, net 770,293 601,210 Right-of-use asset 39,615 74,380 Total deferred tax assets 80,195,546 77,262,558 Deferred tax liabilities Right-of-use liability (35,726 ) (68,202 ) In process R&D (1,343,213 ) (1,343,213 ) Total deferred tax liabilities (1,378,939 ) (1,411,415 ) Net deferred tax assets 78,816,607 75,851,143 Valuation allowance (79,018,206 ) (76,052,742 ) Net deferred tax liability $ (201,599 ) $ (201,599 ) |
Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2020 2019 Federal statutory income tax rate 21.0 % 21.0 % State income taxes, net of federal benefit 5.2 3.2 Tax credits 2.1 2.0 Change in valuation allowance (21.4 ) (15.0 ) Permanent differences — (0.1 ) Expiration of attributes (1.8 ) — Stock compensation (5.2 ) (11.1 ) Other 0.1 (0.1 ) Provision for income taxes 0.0 % (0.1 )% |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2020USD ($)Segmentreporting_unitshares | Dec. 31, 2019USD ($)shares | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Number of operating segment | Segment | 1 | |
Cash insured amount | $ 250,000 | |
Number of reportable unit | reporting_unit | 1 | |
Research and development costs | $ 7,100,000 | $ 5,700,000 |
Patent-related expenses | 400,000 | $ 300,000 |
Clinical trial accruals | 400,000 | |
Prepaid expenses | $ 500,000 | |
Potentially dilutive outstanding securities excluded from diluted net loss per common share | shares | 7,401,387 | 6,802,093 |
ASU 2018-13 | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |
Minimum | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Stock option, vesting period | 3 years | |
Maximum | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Stock option, vesting period | 4 years |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2011 | |
Revenue Recognition Milestone Method [Line Items] | |||
Deferred revenue related to research and development services | $ 1,694,163 | $ 1,694,163 | |
Kissei Pharmaceutical Co., Ltd | |||
Revenue Recognition Milestone Method [Line Items] | |||
Deferred revenue related to research and development services | $ 2,500,000 | ||
Revenue relating to research and development services | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents, fair value | $ 694,127 | $ 691,649 |
Property and Equipment Net (Det
Property and Equipment Net (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Abstract] | ||
Leasehold improvements | $ 17,191 | $ 16,326 |
Furniture and equipment | 244,021 | 236,622 |
Software | 318,105 | 285,461 |
Property and equipment, gross, total | 579,317 | 538,409 |
Less accumulated depreciation and amortization | (523,617) | (497,859) |
Property and equipment, net | $ 55,700 | $ 40,550 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment Disclosure [Line Items] | ||
Depreciation and amortization | $ 21,342 | $ 23,944 |
Minimum | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Property and equipment, useful lives | 3 years | |
Maximum | ||
Property Plant And Equipment Disclosure [Line Items] | ||
Property and equipment, useful lives | 5 years |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued compensation | $ 823,254 | $ 768,498 |
Clinical trial accruals | 401,789 | 572,880 |
Professional services fees | 65,207 | 80,827 |
Other | 287,071 | 354,707 |
Total accrued liabilities and other current liabilities | $ 1,577,321 | $ 1,776,912 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Research and development expense | $ 7,100,000 | $ 5,700,000 |
Licensing Agreements | ||
Loss Contingencies [Line Items] | ||
Research and development expense | 0 | $ 0 |
Product Development | ||
Loss Contingencies [Line Items] | ||
Future potential milestone payments | 10,000,000 | |
Development Milestone | ||
Loss Contingencies [Line Items] | ||
Future potential milestone payments | 33,500,000 | |
Commercialization Milestone | ||
Loss Contingencies [Line Items] | ||
Future potential milestone payments | $ 33,500,000 | |
U.S | ||
Loss Contingencies [Line Items] | ||
Operating lease term | 4 years 1 month | |
Operating lease expiration date | Dec. 31, 2021 | |
Tokyo, Japan | ||
Loss Contingencies [Line Items] | ||
Operating lease expiration date, month and year | 2019-05 | |
Operating lease, auto-renewal term | 2 years | |
Operating lease, extension term | 2 years | |
Lessee, operating lease, existence of option to extend | true |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Information Related to Right-of-Use Assets and Related Lease Liabilities (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Cash paid for operating lease liabilities | $ 248,648 | $ 229,450 |
Operating lease costs | 240,467 | 226,766 |
Right-of-use assets obtained in exchange for new operating lease obligations | 534,605 | |
Maturities of operating lease liabilities as of December 31, 2020 were as follows: | ||
2021 | 192,563 | |
Less imputed interest | (7,809) | |
Total lease liabilities | 184,754 | 399,347 |
Current operating lease liabilities | $ 184,754 | $ 216,768 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | mnov:AccruedLiabilitiesAndOtherLiabilitiesCurrent | mnov:AccruedLiabilitiesAndOtherLiabilitiesCurrent |
Long-term operating lease liabilities | $ 182,579 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Total lease liabilities | $ 184,754 | $ 399,347 |
Weighted-average remaining lease term | 10 months 9 days | 1 year 9 months 21 days |
Discount rate | 8.80% | 8.80% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2021 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 10,512,624 | |||||
Aggregate intrinsic value | $ 0.7 | $ 5.2 | ||||
Weighted average contractual life, options outstanding | 5 years 11 months 15 days | |||||
Weighted average contractual life, options exercisable | 5 years 3 months 21 days | |||||
Total intrinsic value of options outstanding | $ 5.7 | 11.8 | ||||
Total intrinsic value of options exercisable | $ 5.7 | $ 11.8 | ||||
Shares reserved, description | shares reserved automatically increase each year by a number equal to the lesser of: (i) 15,000 shares; (ii) 1% of the outstanding shares of common stock on the last day of the immediately preceding fiscal year; or (iii) such lesser amount as determined by the Board | |||||
Employee stock purchase plan offering period | 6 months | |||||
Shares issued under ESPP | 3,834 | |||||
Weighted-average fair value, per option | $ 3.70 | $ 2.76 | ||||
Unamortized compensation cost | $ 0.4 | |||||
Unamortized compensation cost, vesting period | 1 month 28 days | |||||
2007 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for future issuance | 214,102 | 300,000 | ||||
Shares available for future grant | 214,102 | |||||
Percentage of employee compensation for purchase of common stock under ESPP | 15.00% | |||||
Common stock fair market value, percentage | 85.00% | |||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option, vesting period | 3 years | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option, vesting period | 4 years | |||||
Maximum | 2007 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in shares reserved for issuance | 15,000 | |||||
Increase in shares reserved for issuance as percentage of outstanding shares | 1.00% | |||||
Performance Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of vested shares | 1,161,000 | |||||
Subsequent Event | Performance Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of vested shares | 1,020,000 | |||||
Subsequent Event | Performance Options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of vested shares, percentage | 45.00% | |||||
Subsequent Event | Performance Options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of vested shares, percentage | 100.00% | |||||
2013 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for future issuance | 8,700,000 | 2,500,000 | ||||
Shares available for future grant | 2,897,135 | |||||
Increase in number of shares of common stock reserved for issuance | 1,500,000 | |||||
2013 Plan | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted expiration term | 10 years | |||||
2013 Plan | Stock Option | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option, vesting period | 3 years | |||||
2013 Plan | Stock Option | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option, vesting period | 4 years | |||||
2004 Plan | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted expiration term | 10 years | |||||
2004 Plan | Stock Option | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option, vesting period | 3 years | |||||
2004 Plan | Stock Option | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option, vesting period | 4 years |
Summary of Stock Option Activit
Summary of Stock Option Activity and Related Information (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Option Shares | ||
Stock Options, Beginning Balance | 6,802,093 | 6,609,647 |
Stock Options, Granted | 1,382,000 | 1,337,000 |
Stock Options, Exercised | (287,863) | (1,017,854) |
Stock Options, Cancelled | (494,843) | (126,700) |
Stock Options, Ending Balance | 7,401,387 | 6,802,093 |
Stock Options, Exercisable at December 31, 2020 | 6,120,887 | |
Weighted Average Exercise Price, Beginning Balance | $ 5.61 | $ 4.61 |
Weighted Average Exercise Price, Granted | 6.67 | 9.67 |
Weighted Average Exercise Price, Exercised | 3.15 | 4.05 |
Weighted Average Exercise Price, Cancelled | 8.73 | 8.84 |
Weighted Average Exercise Price, Ending Balance | 5.70 | $ 5.61 |
Weighted Average Exercise Price, Exercisable at December 31, 2020 | $ 5.48 |
Summary of Non-Vested Stock Opt
Summary of Non-Vested Stock Option Activity and Related Information (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock Options, Non-vested, Beginning Balance | 1,202,000 | |
Stock Options, Granted | 1,382,000 | 1,337,000 |
Stock Options, Vested | (965,500) | |
Stock Options, Forfeitures | (338,000) | |
Stock Options, Non-vested, Ending Balance | 1,280,500 | 1,202,000 |
Weighted Average Grant-Date Fair Value, Non-vested, Beginning Balance | $ 2.65 | |
Weighted Average Grant-Date Fair Value, Granted | 3.70 | $ 2.76 |
Weighted Average Grant-Date Fair Value, Vested | 5.24 | |
Weighted Average Grant-Date Fair Value, Forfeitures | 5.17 | |
Weighted Average Grant-Date Fair Value, Non-vested, Ending Balance | $ 3.74 | $ 2.65 |
Weighted-Average Assumptions fo
Weighted-Average Assumptions for Stock Option and ESPP (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Stock Purchase Plan | ||
Weighted-average assumptions for stock options and ESPP | ||
Risk-free interest rate | 0.15% | 2.20% |
Expected volatility of common stock | 81.49% | 67.56% |
Dividend yield | 0.00% | 0.00% |
Expected option term (in years) | 6 months | 6 months |
Stock Option | ||
Weighted-average assumptions for stock options and ESPP | ||
Risk-free interest rate | 0.41% | 1.72% |
Expected volatility of common stock | 74.08% | 57.78% |
Dividend yield | 0.00% | 0.00% |
Expected option term (in years) | 4 years 8 months 8 days | 4 years 7 months 2 days |
Summary of Stock-based Compensa
Summary of Stock-based Compensation Expenses (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 3,175,553 | $ 4,112,649 |
Research, Development and Patents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,090,839 | 1,150,995 |
General and Administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 2,084,714 | $ 2,961,654 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Aug. 23, 2019 | May 22, 2015 | Dec. 31, 2020 |
MLV | 2015 at-the-market issuance sales agreement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sales commission as a percentage of gross proceeds | 4.00% | ||
Agreement termination date | Aug. 23, 2019 | ||
MLV | Maximum | 2015 at-the-market issuance sales agreement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock purchase agreement, aggregate amount of common stock agreed to be purchased | $ 30,000,000 | ||
B. Riley FBR | 2019 at-the-market issuance sales agreement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sales commission as a percentage of gross proceeds | 3.50% | ||
B. Riley FBR | Maximum | 2019 at-the-market issuance sales agreement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock purchase agreement, aggregate amount of common stock agreed to be purchased | $ 75,000,000 |
Summary of Activity Under the A
Summary of Activity Under the ATM Agreements (Detail) - MLV - At-the-market issuance sales agreement - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Subsidiary Or Equity Method Investee [Line Items] | ||
Gross proceeds | $ 6,391,919 | $ 6,757,879 |
Net proceeds | $ 6,188,079 | $ 6,543,539 |
Shares sold | 824,798 | 804,963 |
Minimum | Common stock | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Price range | $ 5.55 | $ 7.24 |
Maximum | Common stock | ||
Subsidiary Or Equity Method Investee [Line Items] | ||
Price range | $ 10.45 | $ 10.03 |
Common Stock Reserved for Futur
Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 10,512,624 |
2013 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 2,897,135 |
Warrants | 2004 Plan and 2013 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 7,401,387 |
2007 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 214,102 |
Reconciliation of Loss before I
Reconciliation of Loss before Income Taxes for Domestic and Foreign Locations (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (13,865,784) | $ (12,952,730) |
Foreign | 10,239 | 23,732 |
Loss before income taxes | $ (13,855,545) | $ (12,928,998) |
Reconciliation of Income Tax Be
Reconciliation of Income Tax Benefit (Expense) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Foreign | $ 1,648 | $ (12,660) |
Total current income tax benefit (expense) | 1,648 | (12,660) |
Total income tax benefit (expense) | $ 1,648 | $ (12,660) |
Components of Deferred Income T
Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 67,403,329 | $ 64,600,662 |
Capitalized licenses | 98,411 | 175,831 |
Research tax credits | 8,980,935 | 8,690,484 |
Stock options | 2,902,963 | 3,119,991 |
Other, net | 770,293 | 601,210 |
Right-of-use asset | 39,615 | 74,380 |
Total deferred tax assets | 80,195,546 | 77,262,558 |
Deferred tax liabilities | ||
Right-of-use liability | (35,726) | (68,202) |
In process R&D | (1,343,213) | (1,343,213) |
Total deferred tax liabilities | (1,378,939) | (1,411,415) |
Net deferred tax assets | 78,816,607 | 75,851,143 |
Valuation allowance | (79,018,206) | (76,052,742) |
Net deferred tax liability | $ (201,599) | $ (201,599) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Mar. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax [Line Items] | |||
Unrecognized tax benefits | $ 0 | ||
Unrecognized tax benefits, tax penalties and interest accrued | 0 | ||
Previous Year | CARES Act | |||
Income Tax [Line Items] | |||
NOL carrybacks expiration period | 5 years | ||
Tax Year 2020 | CARES Act | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards indefinitely, percentage of taxable income | 100.00% | ||
Tax Year 2021 and Thereafter | CARES Act | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards indefinitely, percentage of taxable income | 80.00% | ||
Federal | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | $ 267,900,000 | ||
Net operating loss carryforwards, expiration year | 2020 | ||
Research tax credit carry forwards | $ 7,300,000 | ||
Research and development credits, expiration period | 2024 | ||
California | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | $ 159,500,000 | ||
Net operating loss carryforwards, expiration year | 2028 | ||
Research tax credit carry forwards | $ 2,100,000 |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 21.00% | 21.00% |
State income taxes, net of federal benefit | 5.20% | 3.20% |
Tax credits | 2.10% | 2.00% |
Change in valuation allowance | (21.40%) | (15.00%) |
Permanent differences | (0.10%) | |
Expiration of attributes | (1.80%) | |
Stock compensation | (5.20%) | (11.10%) |
Other | 0.10% | (0.10%) |
Provision for income taxes | 0.00% | (0.10%) |
Employee Savings Plan - Additio
Employee Savings Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | ||
Discretionary contributions to employee savings plan | $ 81,647 | $ 78,412 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Jan. 29, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Payments of stock issuance costs | $ 203,840 | $ 288,369 | |
Subsequent Event | Private Placement | |||
Subsequent Event [Line Items] | |||
Shares sold and issued | 3,656,307 | ||
Subsequent Event | Private Placement | Common stock | |||
Subsequent Event [Line Items] | |||
Share price per share | $ 5.47 | ||
Gross proceeds | $ 20,000,000 | ||
Payments of stock issuance costs | $ 100,000 |