Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | APPLIED GENETIC TECHNOLOGIES CORP | |
Entity Central Index Key | 0001273636 | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-36370 | |
Entity Tax Identification Number | 59-3553710 | |
Trading Symbol | AGTC | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 14193 NW 119th Terrace, Suite 10 | |
Entity Address, City or Town | Alachua | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32615 | |
City Area Code | 386 | |
Local Phone Number | 462-2204 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 18,218,402 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 16,272 | $ 26,703 |
Investments | 54,839 | 55,292 |
Grants receivable | 13 | 13 |
Prepaid and other current assets | 2,054 | 2,276 |
Total current assets | 73,178 | 84,284 |
Property and equipment, net | 4,137 | 4,430 |
Intangible assets, net | 1,062 | 1,013 |
Investment in Bionic Sight | 1,936 | 1,945 |
Right of use asset – operating lease | 3,654 | |
Right of use asset – finance lease | 114 | |
Other assets | 544 | 544 |
Total assets | 84,625 | 92,216 |
Current liabilities: | ||
Accounts payable | 1,338 | 1,331 |
Accrued and other liabilities | 7,185 | 8,024 |
Lease liability – operating | 641 | |
Lease liability – finance | 46 | |
Total current liabilities | 9,210 | 9,355 |
Lease liability – operating, net of current portion | 5,052 | |
Lease liability – finance, net of current portion | 75 | |
Other liabilities | 2,315 | 4,152 |
Total liabilities | 16,652 | 13,507 |
Stockholders' equity: | ||
Preferred stock, par value $.001 per share, 5,000 shares authorized; no shares issued and outstanding | ||
Common stock, par value $.001 per share, 150,000 shares authorized; 18,238 and 18,226 shares issued; 18,218 and 18,207 shares outstanding at September 30, 2019 and June 30, 2019, respectively | 18 | 18 |
Additional paid-in capital | 215,168 | 214,324 |
Shares held in treasury of: 20 and 19 at September 30, 2019 and June 30, 2019, respectively | (88) | (85) |
Accumulated deficit | (147,125) | (135,548) |
Total stockholders' equity | 67,973 | 78,709 |
Total liabilities and stockholders' equity | $ 84,625 | $ 92,216 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 18,238,000 | 18,226,000 |
Common stock, shares outstanding | 18,218,000 | 18,207,000 |
Treasury stock, shares held | 20,000 | 19,000 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||
Total revenue | $ 14,034 | |
Operating expenses: | ||
Research and development | $ 8,642 | 10,065 |
General and administrative and other | 3,348 | 3,213 |
Total operating expenses | 11,990 | 13,278 |
(Loss) income from operations | (11,990) | 756 |
Other income: | ||
Investment income, net | 446 | 471 |
Interest expense | (2) | |
Total other income, net | 444 | 471 |
(Loss) income before provision for income taxes and equity in net losses of affiliate | (11,546) | 1,227 |
Provision for income taxes | 21 | 19 |
(Loss) income before equity in net losses of affiliate | (11,567) | 1,208 |
Equity in net losses of affiliate | (10) | (8) |
Net (loss) income | $ (11,577) | $ 1,200 |
Weighted average shares outstanding: | ||
Basic | 18,212 | 18,128 |
Diluted | 18,212 | 18,158 |
Net (loss) earnings per share: | ||
Basic | $ (0.64) | $ 0.07 |
Diluted | $ (0.64) | $ 0.07 |
Collaboration [Member] | ||
Revenue: | ||
Total revenue | $ 14,025 | |
Grant and Other [Member] | ||
Revenue: | ||
Total revenue | $ 9 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning balance at Jun. 30, 2018 | $ 99,182 | $ 18 | $ (49) | $ 210,139 | $ (110,926) |
Beginning balance, shares at Jun. 30, 2018 | 18,126,000 | 11,000 | |||
Cumulative impact of adopting Topic 606 on July 1, 2018 | (22,616) | (22,616) | |||
Share based compensation expense | 1,181 | 1,181 | |||
Shares issued under employee plans | (8) | $ (8) | |||
Shares issued under employee plans, shares | 4,000 | 2,000 | |||
Net income (loss) | 1,200 | 1,200 | |||
Ending balance at Sep. 30, 2018 | 78,939 | $ 18 | $ (57) | 211,320 | (132,342) |
Ending balance, shares at Sep. 30, 2018 | 18,130,000 | 13,000 | |||
Beginning balance at Jun. 30, 2019 | 78,709 | $ 18 | $ (85) | 214,324 | (135,548) |
Beginning balance, shares at Jun. 30, 2019 | 18,207,000 | 19,000 | |||
Share based compensation expense | 810 | 810 | |||
Shares issued under employee plans | 31 | $ (3) | 34 | ||
Shares issued under employee plans, shares | 11,000 | 1,000 | |||
Net income (loss) | (11,577) | (11,577) | |||
Ending balance at Sep. 30, 2019 | $ 67,973 | $ 18 | $ (88) | $ 215,168 | $ (147,125) |
Ending balance, shares at Sep. 30, 2019 | 18,218,000 | 20,000 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (11,577) | $ 1,200 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Share-based compensation expense | 810 | 1,181 |
Depreciation and amortization | 322 | 321 |
Recovery of bad debts | (369) | |
Investment discount accretion | (173) | (142) |
Non-cash lease expense | 71 | |
Non-cash interest on lease liabilities | 122 | |
Equity in net losses of affiliate | 10 | 8 |
Changes in operating assets and liabilities: | ||
Grants receivable | (9) | |
Prepaid and other assets | 228 | 723 |
Deferred revenues | (2,967) | |
Accounts payable | 66 | 2,084 |
Operating lease liabilities | (271) | |
Accrued and other liabilities | (323) | (1,447) |
Net cash (used in) provided by operating activities | (10,715) | 583 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (244) | (41) |
Purchase of and capitalized cost related to intangible assets | (118) | (23) |
Maturities of investments | 17,500 | 24,736 |
Purchases of investments | (16,874) | (29,722) |
Net cash provided by (used in) investing activities | 264 | (5,050) |
Cash flows from financing activities: | ||
Proceeds from exercise of common stock options | 34 | |
Taxes paid related to equity awards | (3) | |
Deferred offering costs | (113) | |
Payments made toward capital lease obligations | (11) | (13) |
Net cash provided by (used in) financing activities | 20 | (126) |
Net change in cash and cash equivalents | (10,431) | (4,593) |
Cash and cash equivalents, beginning of period | 26,703 | 31,065 |
Cash and cash equivalents, end of period | 16,272 | 26,472 |
Supplemental information: | ||
Cash paid for interest | 2 | |
Cost related to purchase of intellectual property included in accrued and other liabilities | 32 | |
Shares issued for no consideration | $ 3 | $ 8 |
Organization and Operations
Organization and Operations | 3 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Operations | 1. Organization and Operations Applied Genetic Technologies Corporation (the “Company” or “AGTC”) was incorporated as a Florida corporation on January 19, 1999 and reincorporated as a Delaware corporation on October 24, 2003. The Company is a clinical-stage biotechnology company that uses a proprietary gene therapy platform to develop transformational genetic therapies for patients suffering from rare and debilitating diseases. In July 2015, the Company entered into a collaboration agreement (the “Collaboration Agreement”) with Biogen MA, Inc., a wholly owned subsidiary of Biogen Inc. (“Biogen”), pursuant to which the Company and Biogen collaborated to develop, seek regulatory approval for and commercialize gene therapy products to treat X-linked X-linked The Company has devoted substantially all of its efforts to research and development, including clinical trials. The Company has not completed the development of any products. The Company has generated revenue from collaboration agreements, sponsored research payments and grants, but has not generated product revenue to date and is subject to a number of risks similar to those of other early stage companies in the biotechnology industry, including dependence on key individuals, the difficulties inherent in the development of commercially viable products, the need to obtain additional capital necessary to fund the development of its products, development by the Company or its competitors of technological innovations, risks of failure of clinical studies, protection of proprietary technology, compliance with government regulations and ability to transition to large-scale production of products. As of September 30, 2019, the Company had an accumulated deficit of $147.1 million. While the Company expects to continue to generate some revenue from partnering, the Company expects to incur losses for the foreseeable future. The Company has funded its operations to date primarily through public offerings of its common stock, private placements of its preferred stock, and collaborations. As of September 30, 2019, the Company had cash and cash equivalents and liquid investments of $71.1 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The accompanying Unaudited Condensed Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, stockholders’ equity and cash flows for the periods presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations for interim reporting. The Condensed Balance Sheet as of June 30, 2019 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Unaudited Condensed Financial Statements should be read in conjunction with the audited financial statements included in the Company’s 2019 Annual Report on Form 10-K Form 10-K”). 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. To date, we have viewed our operations and managed our business as one Use of estimates The preparation of financial statements in conformity with U.S. GAAP and SEC regulations, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of 90 days or less at the time of purchase and generally include money market accounts. Investments The Company’s investments consist of certificates of deposit and debt securities classified as held-to held-to-maturity maturity. Held-to-maturity held-to-maturity The Company uses the specific identification method to determine the cost basis of securities sold. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company evaluates an investment for impairment by considering the length of time and extent to which market value has been less than cost or amortized cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer and the Company’s intent to sell the security or the likelihood that it will be required to sell the security before recovery of the entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to investment income (expense) and a new cost basis in the investment is established. Fair value of financial instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Revenue recognition Effective July 1, 2018, the Company adopted the provisions of ASC Topic 606, Revenue from Contracts with Customers, The adoption of the new revenue recognition guidance resulted in an increase of $22.6 million in deferred revenue and accumulated deficit as of July 1, 2018. The Company may enter into collaboration agreements which are within the scope of Topic 606, under which the Company licenses rights to its technology and certain of the Company’s product candidates and performs research and development services for third parties. The terms of these arrangements typically may include payment of one or more of the following: non-refundable, up-front Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of Topic 606, the Company performs the following five steps: (i) identification of the contract; (ii) determination of whether the promised goods or services are performance obligations; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. Performance obligations are promises to transfer distinct goods or services to the customer. Promised goods or services are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised good or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available. The Company estimates the transaction price based on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include both fixed consideration or variable consideration. At the inception of an arrangement that includes variable consideration and at each reporting period, the Company evaluates the amount of potential payment and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected amount method to estimate the amount to be received based on which method better predicts the amount expected to be received. If it is probable that a significant revenue reversal would not occur, the variable consideration is included in the transaction price. The Company will assess its revenue generating arrangements in order to determine whether a significant financing component exists and conclude that a significant financing component does not exist in any of its arrangements if: (a) the promised consideration approximates the cash selling price of the promised goods and services or any significant difference is due to factors other than financing; and (b) timing of payment approximates the transfer of goods and services and performance is over a relatively short period of time within the context of the entire term of the contract. The Company’s contracts will often include development and regulatory milestone payments. At contract inception and at each reporting period, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the customer’s control, such as regulatory approvals, are not included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates catch-up For arrangements that may include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of the Company’s collaboration arrangements. The Company allocates the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amounts the Company would expect to receive for each performance obligation. For performance obligations consisting of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front non-refundable, up-front The Company receives payments from its customers based on billing terms established in each contract. Such billings generally have 30-day Collaboration revenue To date, the Company’s collaboration revenue has been generated from its collaboration arrangement with Biogen as further described in Note 7, “ Collaboration Agreements The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements Income taxes The Company uses the asset and liability method for accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Tax Cut and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act contains several key provisions including, among other things, reducing the U.S. federal corporate tax rate from 35% to 21%. In addition, federal net operating losses (“NOLs”) will be carried forward indefinitely but will be subject to an 80% utilization against taxable income. As required by U.S. GAAP, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not For the three months ended September 30 , 2019 and 2018 , the Company’s tax expense included an increase in the uncertain tax position liability of $21,000 and $ 19,000 , respectively, related to interest on the uncertain tax position. The uncertain tax position liability as of September 30 , 2019 and June 30 , 2019 was $2,056,000 and $2,035,000, respectively. Research and development Research and development costs include costs incurred in identifying, developing and testing product candidates and generally comprise compensation and related benefits and non-cash pre-clinical As part of the process of preparing its financial statements, the Company is required to estimate its accrued expenses. This process involves reviewing quotations and contracts, identifying services that have been performed on its behalf and estimating the level of service performed and the associated cost incurred for services for which the Company has not yet been invoiced or otherwise notified of the actual cost. The majority of the Company’s service providers invoice the Company monthly in arrears for services performed or when contractual milestones are met. The Company makes estimates of its accrued expenses as of each balance sheet date in its financial statements based on facts and circumstances known to it at that time. The significant estimates in the Company’s accrued research and development expenses are related to expenses incurred with respect to academic research centers, contract research organizations, and other vendors in connection with research and development activities for which it has not yet been invoiced. There may be instances in which the Company’s service providers require advance payments at the inception of a contract or in which payments made to these vendors will exceed the level of services provided, resulting in a prepayment of the research and development expense. Such prepayments are charged to research and development expense as and when the service is provided or when a specific milestone outlined in the contract is reached. Prepayments related to research and development activities were $0.6 million and $0.7 million at September 30, 2019 and June 30, 2019, respectively, and are included within the prepaid and other current assets line item in these Unaudited Condensed Balance Sheets . Share-based compensation The Company accounts for share-based awards issued to employees in accordance with ASC Topic 718, Compensation—Stock Compensation non-employees 10-K, 505-50, Equity-Based Payments to Non-employees 505-50”). 505-50, non-employees re-measurement No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 2018-07”). As non-employee non-employee non-employees For purposes of calculating stock-based compensation, the Company uses Monte Carlo simulation model to determine the fair value of restricted stock units and Black-Scholes model to determine the fair value of stock options. The Monte Carlo simulation model incorporates probability of satisfying a market condition and uses transaction details such as the Company’s stock price, contractual terms, maturity, risk free rates, as well as, volatility. The Black-Scholes model is affected by the Company’s stock price at the grant date and incorporates a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. Net earnings (loss) per share Basic net earnings (loss) per share is calculated by dividing net income (loss) by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net earnings (loss) per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the diluted earnings (loss) per share calculations, stock options are considered to be common stock equivalents if they are dilutive. The dilutive impact of stock options for the three months ended September 30, 2019 and 2018, if applicable, would be 130,431 and 29,744 shares, respectively. The dilutive impact of stock options has been excluded from the calculation of diluted net loss per share for the three months ended September 30, 2019 as their effect would be anti-dilutive. Therefore, for the three months ended September 30, 2019 basic and diluted net loss per share were the same. Comprehensive income (loss) Comprehensive income (loss) consists of net income (loss) and changes in equity during a period from transactions and other equity and circumstances generated from non-owner New Accounting Pronouncements Adopted in the current period Leases In February 2016, the FASB issued ASU No. 2016-02, right-of-use right-of-use ASU 2016-02 right-of-use right-of-use right-of-use non-lease . Share-Based Compensation In June 2018, the FASB issued ASU No. 2018-07, 20 1 To be adopted in future periods Financial Instruments—Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Collaborative Arrangements In November 2018, the FASB issued ASU No. 2018-18, unit-of-account |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 3. Leases The Company leases certain laboratory and office space under operating leases, which consist of the following: Alachua, Florida The Company’s corporate headquarters are located in Alachua, Florida. In January 2016, the Company moved into a new combined-use five Cambridge, Massachusetts In August 2015, the Company entered into a two seven three In addition, the Company leases certain office equipment under a finance lease. As part of the Company’s assessment of the lease term, the Company did not elect the hindsight practical expedient, which allows companies to use current knowledge and expectations when determining the likelihood to extend lease options. By not electing this practical expedient, the Company will not re-assess Summary of all lease costs recognized under ASC 842 The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating and finance leases for the three months ended September 30, 2019: In thousands Three month ended Lease Cost: Finance lease cost Amortization of right-of-use $ 11 Interest on lease liabilities 2 Operating lease cost 193 Variable lease cost 91 Total lease cost $ 297 Other Information: Weighted-average remaining lease term – operating leases (in years) 6.8 Weighted-average remaining lease term – financ e 2.6 Weighted-average discount rate – operating leases 8.5% Weighted-average discount rate – financ e 6.9% Amortization of right-of-used the g the the As of September 30, 2019, future minimum commitments under the ASC 842 for the Company’s operating and financ e In thousands As of Maturity of operating lease liabilities: 2020 (excluding the three months ended September 30, 2019) $ 819 2021 1,108 2022 1,127 2023 1,146 2024 and thereafter 3,311 Present value adjustment (1,818 ) Operating lease liabilities $ 5,693 Maturity of finance lease liabilities: 2020 (excluding the three months ended September 30, 2019) $ 39 2021 53 2022 and thereafter 39 Present value adjustment (10 ) Finance lease liability $ 121 |
Share-based Compensation Plans
Share-based Compensation Plans | 3 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Plans | 4. Share-based Compensation Plans The Company uses stock options, performance service awards, restricted stock awards and restricted stock units to provide long-term incentives for its employees, non-employee No Three Months Ended September 30, 2019 2018 (In thousands, except per share amounts) Shares Weighted Shares Weighted Outstanding at June 30, 3,585 $ 9.19 3,107 $ 10.93 Granted 857 3.12 863 4.31 Exercised (10 ) 3.50 — — Forfeited (91 ) 4.55 (166 ) 8.08 Expired (247 ) 12.31 (9 ) 14.95 Outstanding at September 30, 4,094 $ 7.85 3,795 $ 9.54 Exercisable at September 30, 2,128 2,092 Weighted average fair value of options granted during the period $ 2.01 $ 2.81 As of September 30, 2018, there was $5.2 million of unrecognized compensation expense related to non-vested non-employee Assumption Three months ended Three months ended Dividend yield 0.00% 0.00% Expected term 6.25 years 6.00 to 6.25 years Risk-free interest rate 1.45% to 1.90% 2.77% to 2.99% Expected Volatility 71.2% 69.22% During the three months ended September 30, 2019, 175,000 restricted stock units, which contained a the For the three months ended September 30, 2019, share-based compensation expense amounted to approximately $0.8 million, compared to $1.2 million for the three months ended September 30, 2018. |
Investments
Investments | 3 Months Ended |
Sep. 30, 2019 | |
Schedule of Investments [Abstract] | |
Investments | 5. Investments Cash in excess of immediate requirements is invested in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. The net carrying amounts of the Company’s investments by category consisted of debt securities held-to-maturity A summary of the Company’s debt securities classified as held-to-maturity In thousands September 30, 2019 June 30, 2019 U.S. Treasury Securities: Amortized cost $ 54,839 $ 55,292 Gross unrealized gains 47 78 Gross unrealized losses — — Fair Value $ 54,886 $ 55,370 The Company continues to expect to collect the principal and interest due on its debt securities that have an amortized cost in excess of fair value. At each reporting period, the Company evaluates securities for impairment, if and when, the fair value of the investment is less than its amortized cost. The Company evaluated the underlying credit quality and credit ratings of the issuers, noting neither a significant deterioration since purchase nor other factors leading to other-than-temporary impairment. The Company does not intend to sell its investments before recovery of their amortized cost bases which may at |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Investments | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Investments | 6. Fair Value of Financial Instruments and Investments Certain assets and liabilities are measured at fair value in the Company’s financial statements or have fair values disclosed in the notes to the financial statements. These assets and liabilities are classified into one of three levels of a hierarchy defined by U.S. GAAP. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following methods and assumptions were used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument included in the table below. Cash and Cash Equivalents. Debt securities—held-to-maturity. held-to-maturity In thousands (Level 1) (Level 2) (Level 3) Total Fair September 30, 2019 Cash and cash equivalents $ 16,272 $ — $ — $ 16,272 Held-to-maturity U.S. Treasury Securities 54,886 — — 54,886 Total assets $ 71,158 $ — $ — $ 71,158 In thousands (Level 1) (Level 2) (Level 3) Total Fair June 30, 2019 Cash and cash equivalents $ 26,703 $ — $ — $ 26,703 Held-to-maturity U.S. Treasury Securities 55,370 — — 55,370 Total assets $ 82,073 $ — $ — $ 82,073 |
Collaboration Agreements
Collaboration Agreements | 3 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration Agreements | 7. Collaboration Agreements Biogen On July 1, 2015, the Company entered into a Collaboration Agreement with Biogen, pursuant to which the Company and Biogen collaborated to develop, seek regulatory approval for and commercialize gene therapy products to treat XLRS, XLRP, and discovery programs targeting three indications based on the Company’s adeno-associated virus vector technologies. Effective March 8, 2019, Biogen terminated the Collaboration Agreement. Upon termination, the Company received back the exclusive license rights to develop, manufacture and commercialize the product candidates for all of our partnered programs including our XLRP program, XLRS program and our three discovery programs. Accounting Analysis The performance obligations and the allocated transaction price as of the date of initial application of Topic 606 were as follows: In thousands Allocated XLRS License and Pre-Funded $ 52,060 XLRP License and Pre-Funded 43,570 Pre-Funded 16,700 $ 112,330 The Pre-Funded Pre-Funded Pre-Funded The Company concluded that Post-Funded Activities represent customer options that are not material rights as any services requested by Biogen and provided by the Company are reimbursed at a rate that reflects the estimated standalone selling price for the services. As such, the Company recognized revenue related to Post-Funded Activities as the services were provided. The Company concluded that the option to receive i) commercial licenses for the Discovery Programs that achieve clinical candidate designation, as defined in the Collaboration Agreement and ii) manufacturing licenses for up to six genes pursuant to the Manufacturing Agreement represent customer options that were not material rights as the exercise price for such options reflects the estimated standalone selling price for such option. As such, the Company accounted for such option if and when the options were exercised. As of the date of the initial application of Topic 606, the total transaction price for the Biogen Agreement was $112.3 million which included a $5.0 million milestone payment for initiation of dosing of XLRS and a $2.5 million milestone payment for initiation of dosing of XLRP. The Company used the most-likely method to determine the amount of variable consideration in the Biogen Agreement. The Company believes that any estimated amount of variable consideration related to clinical and regulatory milestone payments should be fully constrained as the achievement of such milestones was highly susceptible to factors outside of the Company’s control. The Company determined that the commercial milestones and sales-based royalties would be recognized when the related sales occurred as they were deemed to relate predominately to the license granted and therefore were also excluded from the transaction price. In the quarter ended September 30, 2018, the Company received a $10.0 million milestone payment related to XLRP which increased the transaction price. Based on an understanding between the parties in the quarter ended September 30, 2018, the Company also reallocated $1.1 million of Pre-Funded Pre-Funded The reallocation between Discovery Programs generated an insignificant cumulative catch up adjustment to revenue in the quarter ended September 30, 2018. The transaction price was allocated to the performance obligations based on the relative estimated standalone selling price of each performance obligation or, in the case of certain variable consideration, to one or more performance obligations. The estimated standalone selling prices for performance obligations, that include a license and Pre-Funded Pre-Funded The Company recognized revenue related to the performance obligations which included a license and Pre-Funded As a result of the termination of the Collaboration Agreement with Biogen effective March 8, 2019, the Company recognized the remaining deferred revenue balance as of the termination date. The Company recorded revenue of $14.0 million, from its collaboration with Biogen for the three months ended September 30, 2018. The company’s revenue related to the Biogen Agreement for the three months ended September 30, 2018 is comprised of the following: In thousands September 30, Collaboration revenue: Licenses and related services $ 4,619 Development services 1,058 Milestone revenue 8,348 Total collaboration revenue $ 14,025 License and related services revenue comprise of revenue related to the Company’s completion of performance obligations that contained the delivery of licenses and Pre-Funded For a more detailed description of the Company’s collaboration agreement with Biogen refer to Note 7, Collaboration Agreements, of AGTC’s Annual Report on Form 10-K Bionic Sight On February 2, 2017, the Company entered into a strategic research and development collaboration agreement with Bionic Sight, LLC (“Bionic Sight”), to develop therapies for patients with visual deficits and blindness due to retinal disease. Through the AGTC-Bionic Sight collaboration, the companies seek to develop a new optogenetic therapy that leverages AGTC’s deep experience in gene therapy and ophthalmology and Bionic Sight’s innovative neuro-prosthetic device and algorithm for retinal coding. Under the agreement, AGTC made an initial $2.0 million payment to Bionic Sight for an equity interest in that company. This initial investment represents an approximate 5% equity interest in Bionic Sight. In addition to the initial investment, AGTC is contributing ongoing research and development support costs through additional payments and other in-kind in-kind in-kind If and when, the IND Trigger is attained, AGTC will (i) receive additional equity, based on the valuation in place at the beginning of the agreement, for the AGTC Ongoing R&D Support payments and in-kind pre-determined in-kind Revenue from Contracts with Customers Investments—Equity Securities Due to the uncertainty of achieving the IND Trigger, the Company is expensing the AGTC Ongoing R&D Support payments and in-kind The Company recorded its initial $2.0 million investment in Bionic Sight using the equity method of accounting for investments, which is recorded as its own line item on the Company’s balance sheet. For the three-month ended September 30, 2019, the Company recorded a reduction of its investment in Bionic Sight of $10,000 and an investment loss on the statement of operations to reflect its equity interest in the net loss of this affiliate. As of September 30, 2019, the amount of the Company’s underlying equity in net assets of Bionic Sight is not representative of the amount at which the investment is carried due to retained losses experienced by Bionic Sight prior to the Company’s investment. The ongoing research and development costs and contributions will be recorded as a periodic cost until such time when or if the IND Trigger is achieved. The collaboration agreement grants to AGTC, subject to achievement by Bionic Sight of certain development milestones, an option to exclusively negotiate for a limited period of time to acquire (i) a majority equity interest in Bionic Sight, (ii) the Bionic Sight assets to which the collaboration agreement relates, or (iii) an exclusive license with respect to the product to which the collaboration agreement relates. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 8. Subsequent Events On October 1, 2019, the Company announced that it has entered into a collaboration agreement with Otonomy, Inc. (Otonomy) to develop and commercialize gene therapy for congenital hearing loss. Under the terms of the agreement, both parties intend to share equally (i) all development and commercialization costs, and (ii) amounts received with the respect to the collaboration products sales. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying Unaudited Condensed Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, stockholders’ equity and cash flows for the periods presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations for interim reporting. The Condensed Balance Sheet as of June 30, 2019 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Unaudited Condensed Financial Statements should be read in conjunction with the audited financial statements included in the Company’s 2019 Annual Report on Form 10-K Form 10-K”). |
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. To date, we have viewed our operations and managed our business as one |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP and SEC regulations, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of 90 days or less at the time of purchase and generally include money market accounts. |
Investments | Investments The Company’s investments consist of certificates of deposit and debt securities classified as held-to held-to-maturity maturity. Held-to-maturity held-to-maturity The Company uses the specific identification method to determine the cost basis of securities sold. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company evaluates an investment for impairment by considering the length of time and extent to which market value has been less than cost or amortized cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer and the Company’s intent to sell the security or the likelihood that it will be required to sell the security before recovery of the entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to investment income (expense) and a new cost basis in the investment is established. |
Fair value of financial instruments | Fair value of financial instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
Revenue recognition | Revenue recognition Effective July 1, 2018, the Company adopted the provisions of ASC Topic 606, Revenue from Contracts with Customers, The adoption of the new revenue recognition guidance resulted in an increase of $22.6 million in deferred revenue and accumulated deficit as of July 1, 2018. The Company may enter into collaboration agreements which are within the scope of Topic 606, under which the Company licenses rights to its technology and certain of the Company’s product candidates and performs research and development services for third parties. The terms of these arrangements typically may include payment of one or more of the following: non-refundable, up-front Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of Topic 606, the Company performs the following five steps: (i) identification of the contract; (ii) determination of whether the promised goods or services are performance obligations; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. Performance obligations are promises to transfer distinct goods or services to the customer. Promised goods or services are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised good or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available. The Company estimates the transaction price based on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include both fixed consideration or variable consideration. At the inception of an arrangement that includes variable consideration and at each reporting period, the Company evaluates the amount of potential payment and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected amount method to estimate the amount to be received based on which method better predicts the amount expected to be received. If it is probable that a significant revenue reversal would not occur, the variable consideration is included in the transaction price. The Company will assess its revenue generating arrangements in order to determine whether a significant financing component exists and conclude that a significant financing component does not exist in any of its arrangements if: (a) the promised consideration approximates the cash selling price of the promised goods and services or any significant difference is due to factors other than financing; and (b) timing of payment approximates the transfer of goods and services and performance is over a relatively short period of time within the context of the entire term of the contract. The Company’s contracts will often include development and regulatory milestone payments. At contract inception and at each reporting period, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the customer’s control, such as regulatory approvals, are not included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates catch-up For arrangements that may include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of the Company’s collaboration arrangements. The Company allocates the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amounts the Company would expect to receive for each performance obligation. For performance obligations consisting of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front non-refundable, up-front The Company receives payments from its customers based on billing terms established in each contract. Such billings generally have 30-day Collaboration revenue To date, the Company’s collaboration revenue has been generated from its collaboration arrangement with Biogen as further described in Note 7, “ Collaboration Agreements The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements |
Income taxes | Income taxes The Company uses the asset and liability method for accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Tax Cut and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act contains several key provisions including, among other things, reducing the U.S. federal corporate tax rate from 35% to 21%. In addition, federal net operating losses (“NOLs”) will be carried forward indefinitely but will be subject to an 80% utilization against taxable income. As required by U.S. GAAP, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not For the three months ended September 30 , 2019 and 2018 , the Company’s tax expense included an increase in the uncertain tax position liability of $21,000 and $ 19,000 , respectively, related to interest on the uncertain tax position. The uncertain tax position liability as of September 30 , 2019 and June 30 , 2019 was $2,056,000 and $2,035,000, respectively. |
Research and development | Research and development Research and development costs include costs incurred in identifying, developing and testing product candidates and generally comprise compensation and related benefits and non-cash pre-clinical As part of the process of preparing its financial statements, the Company is required to estimate its accrued expenses. This process involves reviewing quotations and contracts, identifying services that have been performed on its behalf and estimating the level of service performed and the associated cost incurred for services for which the Company has not yet been invoiced or otherwise notified of the actual cost. The majority of the Company’s service providers invoice the Company monthly in arrears for services performed or when contractual milestones are met. The Company makes estimates of its accrued expenses as of each balance sheet date in its financial statements based on facts and circumstances known to it at that time. The significant estimates in the Company’s accrued research and development expenses are related to expenses incurred with respect to academic research centers, contract research organizations, and other vendors in connection with research and development activities for which it has not yet been invoiced. There may be instances in which the Company’s service providers require advance payments at the inception of a contract or in which payments made to these vendors will exceed the level of services provided, resulting in a prepayment of the research and development expense. Such prepayments are charged to research and development expense as and when the service is provided or when a specific milestone outlined in the contract is reached. Prepayments related to research and development activities were $0.6 million and $0.7 million at September 30, 2019 and June 30, 2019, respectively, and are included within the prepaid and other current assets line item in these Unaudited Condensed Balance Sheets . |
Share-based compensation | Share-based compensation The Company accounts for share-based awards issued to employees in accordance with ASC Topic 718, Compensation—Stock Compensation non-employees 10-K, 505-50, Equity-Based Payments to Non-employees 505-50”). 505-50, non-employees re-measurement No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 2018-07”). As non-employee non-employee non-employees For purposes of calculating stock-based compensation, the Company uses Monte Carlo simulation model to determine the fair value of restricted stock units and Black-Scholes model to determine the fair value of stock options. The Monte Carlo simulation model incorporates probability of satisfying a market condition and uses transaction details such as the Company’s stock price, contractual terms, maturity, risk free rates, as well as, volatility. The Black-Scholes model is affected by the Company’s stock price at the grant date and incorporates a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. |
Net earnings (loss) per share | Net earnings (loss) per share Basic net earnings (loss) per share is calculated by dividing net income (loss) by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net earnings (loss) per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the diluted earnings (loss) per share calculations, stock options are considered to be common stock equivalents if they are dilutive. The dilutive impact of stock options for the three months ended September 30, 2019 and 2018, if applicable, would be 130,431 and 29,744 shares, respectively. The dilutive impact of stock options has been excluded from the calculation of diluted net loss per share for the three months ended September 30, 2019 as their effect would be anti-dilutive. Therefore, for the three months ended September 30, 2019 basic and diluted net loss per share were the same. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of net income (loss) and changes in equity during a period from transactions and other equity and circumstances generated from non-owner |
New Accounting Pronouncements | New Accounting Pronouncements Adopted in the current period Leases In February 2016, the FASB issued ASU No. 2016-02, right-of-use right-of-use ASU 2016-02 right-of-use right-of-use right-of-use non-lease . Share-Based Compensation In June 2018, the FASB issued ASU No. 2018-07, 20 1 To be adopted in future periods Financial Instruments—Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Collaborative Arrangements In November 2018, the FASB issued ASU No. 2018-18, unit-of-account |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of lease costs recognized under ASC 842 and other information pertaining to the Company's operating and finance leases | The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating and finance leases for the three months ended September 30, 2019: In thousands Three month ended Lease Cost: Finance lease cost Amortization of right-of-use $ 11 Interest on lease liabilities 2 Operating lease cost 193 Variable lease cost 91 Total lease cost $ 297 Other Information: Weighted-average remaining lease term – operating leases (in years) 6.8 Weighted-average remaining lease term – financ e 2.6 Weighted-average discount rate – operating leases 8.5% Weighted-average discount rate – financ e 6.9% |
Summary of future minimum commitments under the ASC 842 for the Company's operating and financing leases | As of September 30, 2019, future minimum commitments under the ASC 842 for the Company’s operating and financ e In thousands As of Maturity of operating lease liabilities: 2020 (excluding the three months ended September 30, 2019) $ 819 2021 1,108 2022 1,127 2023 1,146 2024 and thereafter 3,311 Present value adjustment (1,818 ) Operating lease liabilities $ 5,693 Maturity of finance lease liabilities: 2020 (excluding the three months ended September 30, 2019) $ 39 2021 53 2022 and thereafter 39 Present value adjustment (10 ) Finance lease liability $ 121 |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the stock option activity for the three months ended September 30, 2019 and 2018 is as follows: Three Months Ended September 30, 2019 2018 (In thousands, except per share amounts) Shares Weighted Shares Weighted Outstanding at June 30, 3,585 $ 9.19 3,107 $ 10.93 Granted 857 3.12 863 4.31 Exercised (10 ) 3.50 — — Forfeited (91 ) 4.55 (166 ) 8.08 Expired (247 ) 12.31 (9 ) 14.95 Outstanding at September 30, 4,094 $ 7.85 3,795 $ 9.54 Exercisable at September 30, 2,128 2,092 Weighted average fair value of options granted during the period $ 2.01 $ 2.81 |
Stock Option Pricing Model Assumption | The following assumptions were made in estimating fair value: Assumption Three months ended Three months ended Dividend yield 0.00% 0.00% Expected term 6.25 years 6.00 to 6.25 years Risk-free interest rate 1.45% to 1.90% 2.77% to 2.99% Expected Volatility 71.2% 69.22% |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Schedule of Investments [Abstract] | |
Summary of Company's Debt Securities Held-to-Maturity | A summary of the Company’s debt securities classified as held-to-maturity In thousands September 30, 2019 June 30, 2019 U.S. Treasury Securities: Amortized cost $ 54,839 $ 55,292 Gross unrealized gains 47 78 Gross unrealized losses — — Fair Value $ 54,886 $ 55,370 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Investments (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Major Category of Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis: In thousands (Level 1) (Level 2) (Level 3) Total Fair September 30, 2019 Cash and cash equivalents $ 16,272 $ — $ — $ 16,272 Held-to-maturity U.S. Treasury Securities 54,886 — — 54,886 Total assets $ 71,158 $ — $ — $ 71,158 In thousands (Level 1) (Level 2) (Level 3) Total Fair June 30, 2019 Cash and cash equivalents $ 26,703 $ — $ — $ 26,703 Held-to-maturity U.S. Treasury Securities 55,370 — — 55,370 Total assets $ 82,073 $ — $ — $ 82,073 |
Collaboration Agreements (Table
Collaboration Agreements (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Performance Obligations and Transaction Price | The performance obligations and the allocated transaction price as of the date of initial application of Topic 606 were as follows: In thousands Allocated XLRS License and Pre-Funded $ 52,060 XLRP License and Pre-Funded 43,570 Pre-Funded 16,700 $ 112,330 |
Components of Collaboration Revenue | The company’s revenue related to the Biogen Agreement for the three months ended September 30, 2018 is comprised of the following: In thousands September 30, Collaboration revenue: Licenses and related services $ 4,619 Development services 1,058 Milestone revenue 8,348 Total collaboration revenue $ 14,025 |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) $ in Thousands | Mar. 08, 2019TargetIndication | Jul. 01, 2015TargetIndication | Jul. 31, 2015TargetIndication | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Summary Of Organization And Operations [Line Items] | |||||
Accumulated deficit | $ (147,125) | $ (135,548) | |||
Cash and cash equivalents and liquid investments | $ 71,100 | ||||
Collaboration Agreement [Member] | BIOGEN [Member] | |||||
Summary Of Organization And Operations [Line Items] | |||||
Number of target indications | TargetIndication | 3 | 3 | 3 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019USD ($)Segmentshares | Sep. 30, 2018USD ($)shares | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2019USD ($) | Jul. 01, 2019USD ($) | Jul. 01, 2018USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of operating segments | Segment | 1 | ||||||
Federal statutory income tax rate | 21.00% | 21.00% | 35.00% | 21.00% | |||
Utilization of taxable income | 80.00% | ||||||
Increase in uncertain tax position liability | $ 21,000 | $ 19,000 | |||||
Uncertain tax position liability | 2,056,000 | $ 2,035,000 | |||||
Right of use asset | 3,654,000 | ||||||
Lease liability | $ 5,693,000 | ||||||
Stock options has been excluded from the calculation of diluted earnings per share | shares | 130,431 | 29,744 | |||||
Prepaid and Other Current Assets [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Advance payments | $ 600,000 | $ 700,000 | |||||
Accounting Standards Update 2014-09 [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Increase in deferred revenue and accumulated deficit | $ 22,600,000 | ||||||
Accounting Standards Update 2016-02 [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Right of use asset | $ 3,700,000 | ||||||
Lease liability | $ 5,800,000 |
Leases- Additional Information
Leases- Additional Information (Detail) - ft² | 1 Months Ended | ||
Jul. 31, 2017 | Jan. 31, 2016 | Aug. 31, 2015 | |
Alachua, Florida [Member] | |||
Leases Description [Line Items] | |||
Office and laboratory space for lease | 21,500 | ||
Term of operating lease agreement | 12 years | ||
Renewal term of operating lease agreement | 5 years | ||
Cambridge, Massachusetts [Member] | |||
Leases Description [Line Items] | |||
Office and laboratory space for lease | 5,000 | 3,000 | |
Term of operating lease agreement | 2 years | ||
Renewal term of operating lease agreement | 7 years | ||
Aggregate space for office and laboratory | 8,000 | ||
Further extended renewal term of operating lease agreement | 3 years |
Leases - Summary of lease costs
Leases - Summary of lease costs recognized under ASC 842 and other information pertaining to the Company's operating and finance leases (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Finance lease cost | |
Amortization of right-of-use asset | $ 11 |
Interest on lease liabilities | 2 |
Operating lease cost | 193 |
Variable lease cost | 91 |
Total lease cost | $ 297 |
Other Information: | |
Weighted-average remaining lease term – operating leases (in years) | 6 years 9 months 18 days |
Weighted-average remaining lease term – finance lease (in years) | 2 years 7 months 6 days |
Weighted-average discount rate – operating leases | 8.50% |
Weighted-average discount rate – finance lease | 6.90% |
Leases - Summary of future mini
Leases - Summary of future minimum commitments under the ASC 842 for the Company's operating and finance leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Maturity of operating lease liabilities: | |
2020 (excluding the three months ended September 30, 2019) | $ 819 |
2021 | 1,108 |
2022 | 1,127 |
2023 | 1,146 |
2024 and thereafter | 3,311 |
Present value adjustment | (1,818) |
Operating lease liabilities | 5,693 |
Maturity of finance lease liabilities: | |
2020 (excluding the three months ended September 30, 2019) | 39 |
2021 | 53 |
2022 and thereafter | 39 |
Present value adjustment | (10) |
Finance lease liability | $ 121 |
Share-based Compensation Plan_2
Share-based Compensation Plans - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 30, 2019USD ($)Plan$ / sharesshares | Sep. 30, 2018USD ($)shares | |
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of equity compensation plans | Plan | 2 | |
Stock options granted | 857,000 | 863,000 |
2013 Employee Stock Purchase Plan [Member] | ||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based awards issued | 0 | |
Number of shares authorized | 128,571 | |
Employees and Non-Employee Directors [Member] | 2013 Equity and Incentive Plan [Member] | ||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options granted | 835,000 | |
Stock Options [Member] | ||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | $ | $ 0.8 | $ 1.2 |
Unrecognized compensation expense | $ | $ 5.2 | |
Restricted Shares Awards [Member] | ||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted stock awards to employees, Granted | 175,000 | |
Restricted stock awards to employees, Weighted average exercise price | $ / shares | $ 2.56 |
Share-based Compensation Plan_3
Share-based Compensation Plans - Summary of Stock Option Activity (Detail) - $ / shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding Beginning Balance, Shares | 3,585 | 3,107 |
Granted, Shares | 857 | 863 |
Exercised, Shares | (10) | |
Forfeited, Shares | (91) | (166) |
Expired, Shares | (247) | (9) |
Outstanding Ending Balance, Shares | 4,094 | 3,795 |
Exercisable, end of period, Shares | 2,128 | 2,092 |
Weighted average fair value of options granted during the period | $ 2.01 | $ 2.81 |
Outstanding Beginning Balance, Weighted Average Exercise Price | 9.19 | 10.93 |
Granted, Weighted Average Exercise Price | 3.12 | 4.31 |
Exercised, Weighted Average Exercise Price | 3.50 | |
Forfeited, Weighted Average Exercise Price | 4.55 | 8.08 |
Expired, Weighted Average Exercise Price | 12.31 | 14.95 |
Outstanding Ending Balance, Weighted Average Exercise Price | $ 7.85 | $ 9.54 |
Share-based Compensation Plan_4
Share-based Compensation Plans - Stock Option Pricing Model Assumption (Detail) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected term | 6 years 3 months | |
Risk-free interest rate, minimum | 1.45% | 2.77% |
Risk-free interest rate, maximum | 1.90% | 2.99% |
Expected Volatility | 71.20% | 69.22% |
Minimum [Member] | ||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 6 years | |
Maximum [Member] | ||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 6 years 3 months |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
US Government and Agencies Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Debt securities at amortized cost | $ 54.8 | $ 55.3 |
Investments - Summary of Compan
Investments - Summary of Company's Debt Securities Held-to-Maturity (Detail) - US Treasury Securities [Member] - Investments [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 54,839 | $ 55,292 |
Gross Unrealized Gains | 47 | 78 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 54,886 | $ 55,370 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Investments - Schedule of Major Category of Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 71,158 | $ 82,073 |
Cash and Cash Equivalents [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,272 | 26,703 |
US Treasury Securities [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 54,886 | 55,370 |
Quoted Prices in Active markets (Level 1) [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 71,158 | 82,073 |
Quoted Prices in Active markets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 16,272 | 26,703 |
Quoted Prices in Active markets (Level 1) [Member] | US Treasury Securities [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 54,886 | $ 55,370 |
Collaboration Agreements - Addi
Collaboration Agreements - Additional Information (Detail) | Mar. 08, 2019TargetIndication | Jul. 01, 2018USD ($) | Feb. 02, 2017USD ($)Site | Jul. 01, 2015TargetIndication | Jul. 31, 2015TargetIndication | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Revenue | $ 14,034,000 | ||||||
Equity in net losses of affiliate | $ 10,000 | 8,000 | |||||
Number of clinical site required to conduct clinical trials | Site | 1 | ||||||
Discovery Programs [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Decrease in transaction price | 1,800,000 | ||||||
Accounting Standards Update 2014-09 [Member] | XLRP [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Milestone Revenue | 10,000,000 | ||||||
Collaboration Agreement [Member] | BIOGEN [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Number of target indications | TargetIndication | 3 | 3 | 3 | ||||
Milestone Revenue | $ 112,300,000 | ||||||
Revenue | 14,025,000 | ||||||
Decrease in transaction price | 1,100,000 | ||||||
Decrease in deferred revenue | $ 1,100,000 | ||||||
Collaboration Agreement [Member] | BIOGEN [Member] | XLRS [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Milestone Revenue | 5,000,000 | ||||||
Collaboration Agreement [Member] | BIOGEN [Member] | XLRP [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Milestone Revenue | $ 2,500,000 | ||||||
Strategic Research And Development Collaboration Agreement [Member] | Bionic Sight LLC [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Payments to acquire equity interest | $ 2,000,000 | ||||||
Percentage of initial investment in equity interest | 5.00% | ||||||
Equity method investments | $ 2,000,000 | ||||||
Equity in net losses of affiliate | 10,000 | ||||||
Ongoing research and development support costs | $ 2,000,000 | ||||||
Strategic Research And Development Collaboration Agreement [Member] | Bionic Sight LLC [Member] | If IND Trigger Attained [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Obligated to purchase additional equity at pre-determined valuation | $ 4,000,000 |
Collaboration Agreements - Summ
Collaboration Agreements - Summary of Performance Obligations and Transaction Price (Detail) - Collaboration Agreement [Member] - BIOGEN [Member] - Accounting Standards Update 2014-09 [Member] $ in Thousands | Sep. 30, 2019USD ($) |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Allocated Transaction Price | $ 112,330 |
XLRS [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Allocated Transaction Price | 52,060 |
XLRP [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Allocated Transaction Price | 43,570 |
Discovery Programs [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Allocated Transaction Price | $ 16,700 |
Collaboration Agreements - Comp
Collaboration Agreements - Components of Collaboration Revenue (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Total collaboration revenue | $ 14,034 |
Collaboration Agreement [Member] | BIOGEN [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Total collaboration revenue | 14,025 |
Collaboration Agreement [Member] | BIOGEN [Member] | Licenses and Related Services [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Total collaboration revenue | 4,619 |
Collaboration Agreement [Member] | BIOGEN [Member] | Development Services [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Total collaboration revenue | 1,058 |
Collaboration Agreement [Member] | BIOGEN [Member] | Milestone Revenue [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Total collaboration revenue | $ 8,348 |