Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2018 | May 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AGTC | |
Entity Registrant Name | APPLIED GENETIC TECHNOLOGIES CORP | |
Entity Central Index Key | 1,273,636 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,110,536 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 47,633 | $ 30,706 |
Investments | 64,167 | 95,994 |
Grants receivable | 133 | 174 |
Prepaid and other current assets | 3,968 | 3,361 |
Total current assets | 115,901 | 130,235 |
Investments, net of current portion | 0 | 11,749 |
Property and equipment, net | 5,526 | 2,661 |
Investment in Bionic Sight | 1,995 | 2,000 |
Other assets | 2,025 | 1,278 |
Total assets | 125,447 | 147,923 |
Current liabilities: | ||
Accounts payable | 1,322 | 998 |
Accrued and other liabilities | 8,035 | 6,162 |
Deferred revenue | 8,188 | 20,996 |
Total current liabilities | 17,545 | 28,156 |
Deferred revenue, net of current portion | 912 | 4,438 |
Other liabilities | 2,294 | |
Total liabilities | 20,751 | 32,594 |
Stockholders' equity: | ||
Common stock—par value $.001 per share; shares authorized: 150,000; shares issued and outstanding: 18,121 and 18,088 at March 31, 2018 and June 30, 2017, respectively | 18 | 18 |
Additional paid-in capital | 209,015 | 204,937 |
Shares held in treasury of: 6 and 0 at March 31, 2018 and June 30, 2017 respectively | (23) | |
Accumulated deficit | (104,314) | (89,626) |
Total stockholders' equity | 104,696 | 115,329 |
Total liabilities and stockholders' equity | $ 125,447 | $ 147,923 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Jun. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 18,121,000 | 18,088,000 |
Common stock, shares outstanding | 18,121,000 | 18,088,000 |
Treasury stock, shares held | 6,000 | 0 |
Condensed Statement of Operatio
Condensed Statement of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||||
Collaboration revenue | $ 3,588,000 | $ 8,297,000 | $ 18,727,000 | $ 30,959,000 |
Grant and other revenue | 15,000 | 91,000 | 43,000 | 169,000 |
Total revenue | 3,603,000 | 8,388,000 | 18,770,000 | 31,128,000 |
Operating expenses: | ||||
Research and development | 7,353,000 | 6,303,000 | 23,355,000 | 17,916,000 |
General and administrative and other | 3,946,000 | 2,921,000 | 11,020,000 | 8,507,000 |
Total operating expenses | 11,299,000 | 9,224,000 | 34,375,000 | 26,423,000 |
Income (loss) from operations | (7,696,000) | (836,000) | (15,605,000) | 4,705,000 |
Other income: | ||||
Investment income, net | 325,000 | 236,000 | 866,000 | 700,000 |
Other expense | (10,000) | |||
Total other income, net | 325,000 | 236,000 | 856,000 | 700,000 |
Income (loss) before provision for income taxes and equity in net earnings (losses) of affiliate | (7,371,000) | (600,000) | (14,749,000) | 5,405,000 |
Provision (benefit) for income taxes | 725,000 | 600,000 | (66,000) | 1,800,000 |
Income (loss) before equity in net losses of affiliate | (8,096,000) | (1,200,000) | (14,683,000) | 3,605,000 |
Equity in net losses of affiliate | (5,000) | (5,000) | ||
Net income (loss) | $ (8,101,000) | $ (1,200,000) | $ (14,688,000) | $ 3,605,000 |
Weighted Average Shares Outstanding | ||||
Weighted average shares outstanding – basic | 18,112 | 18,081 | 18,098 | 18,068 |
Weighted average shares outstanding – diluted | 18,112 | 18,081 | 18,098 | 18,408 |
Net income (loss) per common share | ||||
Net income (loss) per share, basic | $ (0.45) | $ (0.07) | $ (0.81) | $ 0.20 |
Net income (loss) per share, diluted | $ (0.45) | $ (0.07) | $ (0.81) | $ 0.20 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income (loss) | $ (14,688) | $ 3,605 |
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | ||
Share-based compensation expense | 4,072 | 4,161 |
Depreciation and amortization | 821 | 657 |
Provision for uncollectible accounts | 369 | |
Investment premium accretion | 174 | 320 |
Loss on disposal of property and equipment | 20 | |
Equity in net losses of affiliate | 5 | |
Changes in operating assets and liabilities: | ||
Grants receivable | 41 | 785 |
Prepaid and other assets | (1,946) | (725) |
Deferred revenues | (16,334) | (30,435) |
Accounts payable | 324 | (514) |
Accrued and other liabilities | 1,365 | 1,139 |
Net cash (used in) operating activities | (25,777) | (21,007) |
Cash flows from investing activities | ||
Purchase of property and equipment | (654) | (560) |
Purchase of and capitalized costs related to intangible assets | (132) | |
Investment in Bionic Sight | (2,000) | |
Maturities of investments | 88,183 | 80,821 |
Purchases of investments | (44,779) | (50,517) |
Net cash provided by investing activities | 42,750 | 27,612 |
Cash flows from financing activities | ||
Proceeds from exercise of common stock options | (17) | 27 |
Payments made toward capital lease obligations | (29) | |
Net cash (used in) provided by financing activities | (46) | 27 |
Net change in cash and cash equivalents | 16,927 | 6,632 |
Cash and cash equivalents, beginning of period | 30,706 | 28,868 |
Cash and cash equivalents, end of period | 47,633 | $ 35,500 |
Supplemental disclosure of non-cash financing activities | ||
Capital lease obligation related to the purchase of equipment | 240 | |
Lease incentive obligation related to the purchase of leasehold improvements | 2,588 | |
Issuance of restricted stock for no consideration | $ 25 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Mar. 31, 2018 | |
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 will collaborate to develop, seek regulatory approval for and commercialize gene therapy products to treat X-linked retinoschisis (“XLRS”), X-linked retinitis pigmentosa (“XLRP”), and discovery programs targeting three indications based on the Company’s adeno-associated virus vector technologies. The Collaboration Agreement became effective in August 2015. The Collaboration Agreement and other transactions with Biogen are discussed further in Note 6 to these financial statements. 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 March 31, 2018, the Company had an accumulated deficit of $104.3 million. While the Company expects to continue to generate some revenue from partnering, including under the collaboration with Biogen, 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. At March 31, 2018, the Company had cash and cash equivalents and liquid investments of $111.8 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2018 | |
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 (“GAAP”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for each period 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 GAAP have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations for interim reporting. See Note 7 for a discussion of a revision of prior financial results presented related to the recording of our income tax provision for fiscal year 2017. The Condensed Balance Sheet as of June 30, 2017 was derived from audited financial statements, but does not include all disclosures required by GAAP. These Unaudited Condensed Financial Statements should be read in conjunction with the audited financial statements included in the Company’s 2017 Annual Report on Form 10-K, as amended, (“June 30, 2017 Form 10-K”). Results of operations for the three and nine months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any other interim period. 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 segment. Use of estimates The preparation of financial statements in conformity with GAAP 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 periods. 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 maturity. Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in investment income. Interest on securities classified as held-to-maturity is included in investment income. 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”) Topic 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 The Company has primarily generated revenue through collaboration agreements, sponsored research arrangements with nonprofit organizations for the development and commercialization of product candidates and revenues from federal research and development grant programs. The Company recognizes revenue when amounts are realized or realizable and earned. Revenue is considered realizable and earned when the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the price is fixed or determinable; and (iv) collection of the amounts due are reasonably assured. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s balance sheets. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current liabilities. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue and not as a reduction of research and development expenses, as the Company has the risks and rewards as the principal in the research and development activities. The Company evaluates the terms of sponsored research agreement grants and federal grants to assess the Company’s obligations and if the Company’s obligations are satisfied by the passage of time, revenue is recognized on a straight-line basis. In situations where the performance of the Company’s obligations has been satisfied when the grant is received, revenue is recognized upon receipt of the grant. Certain grants contain refund provisions. The Company reviews those refund provisions to determine the likelihood of repayment. If the likelihood of repayment of the grant is determined to be remote, the grant is recognized as revenue. If the probability of repayment is determined to be more than remote, the Company records the grant as a deferred revenue liability, until such time that the grant requirements have been satisfied. Collaboration revenue On July 1, 2015, the Company entered into a Collaboration Agreement with Biogen. This collaboration is discussed further in Note 6 to the financial statements. The terms of the Collaboration Agreement and other potential collaboration or commercialization agreements the Company may enter into generally contain multiple elements, or deliverables, which may include, among others, (i) licenses, or options to obtain licenses, to its technology, and (ii) research and development activities to be performed on behalf of the collaborative partner. Payments made under such arrangements typically include one or more of the following: non-refundable, up-front license fees; option exercise fees; funding of research and/or development efforts; milestone payments; and royalties on future product sales. Multiple element arrangements are analyzed to determine whether the deliverables within the agreement can be separated or whether they must be accounted for as a single unit of accounting. Deliverables under an agreement are required to be accounted for as separate units of accounting provided that (i) a delivered item has value to the customer on a stand-alone basis; and (ii) if the agreement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor. The allocation of consideration amongst the deliverables under the agreement is derived using a “best estimate of selling price” if vendor specific objective evidence and third-party evidence of fair value is not available. If the delivered element does not have stand-alone value or if the fair value of any of the undelivered elements cannot be determined, the arrangement is then accounted for as a single unit of accounting, and the Company recognizes the consideration received under the arrangement as revenue on a straight-line basis over the estimated period of performance. The Company determines the estimated selling price for deliverables within each agreement using vendor-specific objective evidence, or VSOE, of selling price, if available, third-party evidence, or TPE, of selling price if VSOE is not available, or best estimate of selling price, or BESP, if neither VSOE nor TPE are available. Determining the best estimate of selling price for a deliverable requires significant judgment. The Company uses BESP to estimate the selling price related to licenses to its proprietary technology, since it often does not have VSOE or TPE of selling price for these deliverables. In those circumstances where it utilizes BESP to determine the estimated selling price of a license to our proprietary technology, the Company considers market conditions as well as entity-specific factors, including those factors contemplated in negotiating the agreements as well as internally developed models that include assumptions related to the market opportunity, estimated development costs, probability of success and the time needed to commercialize a product candidate pursuant to the license. In validating its best estimate of selling price, the Company evaluates whether changes in the key assumptions used to determine the best estimate of selling price will have a significant effect on the allocation of arrangement consideration among multiple deliverables. If the delivered element does not have stand-alone value, the arrangement is then accounted for as a single unit of accounting and the Company recognizes the consideration received under the arrangement as revenue on a straight-line basis over its estimated period of performance. The Company’s anticipated periods of performance, typically the terms of its research and development obligations, are subject to estimates by management and may change over the course of the collaboration agreement. Such changes could have a material impact on the amount of revenue recorded in future periods. Milestone revenue The Company applies the milestone method of accounting to recognize revenue from milestone payments when earned, as evidenced by written acknowledgement from the collaborator or other persuasive evidence that the milestone has been achieved and the payment is non-refundable, provided that the milestone event is substantive. A milestone event is defined as an event (i) that can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; (ii) for which there is substantive uncertainty at the inception of the arrangement that the event will be achieved; and (iii) that would result in additional payments being due to the Company. Events for which the occurrence is either contingent solely upon the passage of time or the result of a counterparty’s performance are not considered to be milestone events. A milestone event is substantive if all of the following conditions are met: (i) the consideration is commensurate with either the Company’s performance to achieve the milestone, or the enhancement of the value to the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) the consideration relates solely to past performance; and (iii) the consideration is reasonable relative to all the deliverables and payment terms (including other potential milestone consideration) within the arrangement. The Company assesses whether a milestone is substantive at the inception of the arrangement. If a milestone is deemed non-substantive, the Company accounts for that milestone payment in accordance with the multiple element arrangements guidance and recognizes revenue consistent with the related units of accounting for the arrangement over the related performance period. No milestone revenues were recognized during the three and nine month periods ended March 31, 2018 and March 31, 2017. 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 Cuts and Jobs Act of 2017 was signed into law on December 22, 2017. The law includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%. In December 2017, the SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the enactment date for companies to complete the accounting for the initial income tax effects of the Tax Act. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting is complete and provide a provisional estimate (where determinable) of the income tax effects of the Tax Act where the accounting is incomplete. The provisional estimate is required to be updated throughout the measurement period. During the quarter ending December 31, 2017, the Company recorded an income tax benefit of $791,000 relating to the Company’s minimum tax credit carryforward, which becomes refundable under the new law. For the three and nine months ended March 31, 2017, the Company recorded an income tax provision of $0.6 million and $1.8 million respectively, related to the Company’s federal alternative minimum taxable income (“AMTI”) and state income tax in multiple states where the Company is doing business. The Company calculates its AMTI using the alternative minimum tax (“AMT”) system. The Company’s federal income tax liability is the greater of the tax computed using the regular tax system or the tax under the AMT system. Corporations are exempt from the AMT for all years in which their annual gross receipts for the 3-year period ending before the current tax year did not exceed $7.5 million. As of June 30, 2017, the Company no longer qualifies for the small company exclusion. The AMT system limits the use of net operating losses used by the taxpayer to offset 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 threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense. The Company is subject to examination of its income tax returns in the federal and state income tax jurisdictions in which it operates. At June 30, 2017, the total amount of unrecognized tax benefits recorded on the Company’s balance sheet was approximately $1.0 million. During the three and nine months ended March 31, 2018, the Company recognized an increase in unrecognized tax benefits as a result of tax positions taken during a prior period in the amount of $0.7 million, resulting in an ending accrued balance $1.7 million at March 31,2018. The Company recorded potential interest and penalties on unrecognized tax benefits in the amount of $0.4 million during the three months ended March 31, 2018. The Company’s deferred tax asset, net of liabilities, decreased by $7.5 million, primarily due to a re-measurement of deferred tax assets and liabilities to the revised statutory tax rate under the Tax Act. The deferred tax asset, net of liabilities, is completely offset by valuation allowances established because realization of the deferred tax benefits are not considered more likely than not as of March 31, 2018. For the three month and nine month periods ended March 31, 2018, the Company recorded an income tax provision (benefit) of $0.7 million and ($66,000), respectively. The income tax expense for the three months ended March 31, 2018 was primarily driven by the apportionment of income to certain state jurisdictions where the Company had not generated net operating losses (NOL’s). The income tax benefit for the nine months ended March 31, 2018 was primarily due to certain tax credit carryforwards becoming refundable under The Tax Cuts and Jobs Act of 2017, offset by income tax expense for the three months ended March 31, 2018. 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 share-based compensation to research related employees; laboratory costs; animal and laboratory maintenance and supplies; rent; utilities; clinical and pre-clinical expenses; and payments for sponsored research, scientific and regulatory consulting fees and testing. 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 $1.2 million and $1.5 million at March 31, 2018 and June 30, 2017, respectively, and are included within the prepaid and other current assets line item on the 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 Equity-Based Payments to Non-employees For purposes of calculating stock-based compensation, the Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the Company’s stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The expected volatility is primarily based on the historical volatility of peer company data while the expected life of the stock options is based on historical and other economic data trended into the future. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the Company’s stock options. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. If factors change and the Company employs different assumptions, stock-based compensation expense may differ significantly from what has been recorded in the past. If there is a difference between the assumptions used in determining stock-based compensation expense and the actual factors which become known over time, specifically with respect to anticipated forfeitures, the Company may change the input factors used in determining stock-based compensation costs for future grants. These changes, if any, may materially impact the Company’s results of operations in the period such changes are made. Net income (loss) per share Basic net earnings (loss) per share is calculated by dividing net earnings (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 net earnings (loss) per share calculation, stock options and warrants are considered to be common stock equivalents if they are dilutive. For the three and nine months ended March 31, 2018 and the three months ended March 31, 2017, basic and diluted net loss per share are the same due to stock options and warrants being considered anti-dilutive. If stock options and warrants had been dilutive, their impact would have increased common stock equivalents outstanding for the three and nine- month periods ended March 31, 2018 by 0.2 million shares and by 0.3 million shares for the three months ended March 31, 2017. Stock options and warrants were dilutive for the nine months ended March 31, 2017 and increased common stock equivalents outstanding by 0.4 million shares. Comprehensive income or loss Comprehensive income or loss consists of net income or loss and changes in equity during a period from transactions and other equity and circumstances generated from non-owner sources. The Company’s net income or loss equals comprehensive income or loss for all periods presented. New accounting pronouncements In May 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-09, Scope of Modification Accounting Compensation – Stock Compensation In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Share-based Compensation Plans
Share-based Compensation Plans | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation Plans | 3. Share-based Compensation Plans: The Company uses stock options and awards of restricted stock to provide long-term incentives for its employees, non-employee directors and certain consultants. The Company has two equity compensation plans under which awards are currently authorized for issuance, the 2013 Employee Stock Purchase Plan and the 2013 Equity and Incentive Plan. No awards have been issued to date under the 2013 Employee Stock Purchase Plan and all of the 128,571 shares previously authorized under this plan remain available for issuance. A summary of the stock option activity for the nine months ended March 31, 2018 and 2017 is as follows: For the Nine Months Ended March 31, 2018 2017 Weighted Weighted Average Average Exercise Exercise (In thousands, except per share amounts) Shares Price Shares Price Outstanding at June 30, 2,714 $ 12.96 2,037 $ 13.71 Granted 819 4.75 831 11.00 Exercised (18 ) 0.35 (31 ) 0.90 Forfeited (401 ) 9.89 (93 ) 13.98 Expired (18 ) 15.81 (29 ) 17.07 Outstanding at March 31, 3,096 $ 11.24 2,715 $ 12.98 Exercisable at March 31, 1,862 1,392 Weighted average fair value of options granted during the period $ 3.43 $ 7.53 For the three and nine months ended March 31, 2018, share-based compensation expense related to stock options awarded to employees, non-employee directors and consultants amounted to approximately $1.2 million and $3.9 million, respectively, compared to $1.2 million and $4.2 million, respectively, for the three and nine months ended March 31, 2017. As of March 31, 2018, there was $7.5 million of unrecognized compensation expense related to non-vested stock options. During the nine months ended March 31, 2018, 819,468 stock options were granted to the Company’s employees and non-employee directors under the 2013 Equity and Incentive Plan. The fair value of each option granted is estimated on the grant date using the Black-Scholes stock option pricing model. The following assumptions were made in estimating fair value: Assumption Nine months ended March 31, 2018 Dividend yield 0.00% Expected term 6.25 years Risk-free interest rate 1.83-2.21% Expected Volatility 83.53% |
Investments
Investments | 9 Months Ended |
Mar. 31, 2018 | |
Investments Schedule [Abstract] | |
Investments | 4. 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 following table summarizes the Company’s investments by category as of March 31, 2018 and June 30, 2017: March 31, June 30, In thousands 2018 2017 Investments - Current: Certificates of deposit $ 2,819 $ 3,500 Debt securities - held-to-maturity 61,348 92,494 Total investments – current $ 64,167 $ 95,994 Investments - Noncurrent: Certificates of deposit — 2,111 Debt securities - held-to-maturity — 9,638 Total investments - non-current $ — $ 11,749 A summary of the Company’s debt securities classified as held-to-maturity is as follows: At March 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair In thousands Cost Gains Losses Value Investments - Current: U.S. government and agency obligations $ 62,143 $ — $ (80 ) $ 62,063 Corporate obligations 2,024 — (7 ) 2,017 Total investments - current $ 64,167 $ — $ (87 ) $ 64,080 At June 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair In thousands Cost Gains Losses Value Investments - Current: U.S. government and agency obligations $ 92,494 $ — $ (147 ) $ 92,347 Corporate obligations — — — — $ 92,494 $ — $ (147 ) $ 92,347 Investments - Noncurrent: U.S. government and agency obligations $ 7,552 $ — $ (52 ) $ 7,500 Corporate obligations 2,086 — (12 ) 2,074 $ 9,638 $ — $ (64 ) $ 9,574 The amortized cost and fair value of held-to-maturity debt securities as of March 31, 2018, by contractual maturity, were as follows: In thousands Amortized Cost Fair Value Due in one year or less $ 64,167 $ 64,080 $ 64,167 $ 64,080 The Company believes that the unrealized losses disclosed above were primarily driven by interest rate changes rather than by unfavorable changes in the credit ratings associated with these securities and as a result, 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 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 an other-than-temporary impairment. Therefore, the Company believes these losses to be temporary. As of March 31, 2018, the Company did not have the intent to sell any of the securities that were in an unrealized loss position at that date. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Investments | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Investments | 5. 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 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. The carrying value of cash and cash equivalents approximates fair value as maturities are less than three months. Certificates of Deposit. The Company’s certificates of deposit are placed through an account registry service. The fair value measurement of the Company’s certificates of deposit is considered Level 2 of the fair value hierarchy as the inputs are based on rates currently offered for deposits of similar remaining maturities. The carrying amounts of the Company’s certificates of deposit reported in the unaudited condensed balance sheets approximate fair value. Debt securities – held-to-maturity. The Company’s investments in debt securities classified as held-to-maturity generally include U.S. Treasury Securities, government agency obligations, and corporate obligations. U.S. Treasury Securities are valued using quoted market prices. Valuation adjustments are not applied. Accordingly, U.S. Treasury Securities are considered Level 1 of the fair value hierarchy. The fair values of U.S. government agency obligations and corporate obligations are generally determined using recently executed transactions, broker quotes, market price quotations where these are available or other observable market inputs for the same or similar securities. As such, the Company classifies its investments in U.S. government agency obligations and corporate obligations within Level 2 of the hierarchy. 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: Quoted prices Significant Significant in active other observable unobservable Total markets inputs inputs Total Fair Carrying In thousands (Level 1) (Level 2) (Level 3) Value Value March 31, 2018 Cash and cash equivalents $ 47,633 $ — $ — $ 47,633 $ 47,633 Certificates of deposit — 2,811 — $ 2,811 2,819 Held-to-maturity investments: Corporate obligations — 2,017 — 2,017 2,024 U.S. government and agency obligations 57,256 1,996 — 59,252 59,324 Total assets $ 104,889 $ 6,824 $ — $ 111,713 $ 111,800 June 30, 2017 Cash and cash equivalents $ 30,706 $ — $ — $ 30,706 $ 30,706 Certificates of deposit — 5,611 — 5,611 5,611 Held-to-maturity investments: Corporate obligations — 2,074 — 2,074 2,086 U.S. government and agency obligations 79,476 20,372 — 99,847 100,046 Total assets $ 110,182 $ 28,057 $ — $ 138,238 $ 138,449 |
Collaboration Agreements
Collaboration Agreements | 9 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration Agreements | 6. Collaboration Agreements Biogen On July 1, 2015, the Company entered into a Collaboration Agreement with Biogen, pursuant to which the Company and Biogen will collaborate 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. The Collaboration Agreement became effective on August 14, 2015. Under the Collaboration Agreement, the Company will conduct all development activities through regulatory approval in the United States for the XLRS program (with activities through Phase 1/2 completion being pre-funded under the agreement and any further activities subject to incremental consideration), and all development activities through the completion of the first in human clinical trial for the XLRP program (with activities through filing the IND being pre-funded under the agreement and any further activities subject to incremental consideration). In addition, the Collaboration Agreement provides for discovery programs targeting three indications whereby the Company will conduct discovery, research and development activities for those additional drug candidates through the stage of clinical candidate designation, after which, Biogen may exercise an option to continue to develop, seek regulatory approval for and commercialize the designated clinical candidate. In February 2016, the Company announced Biogen’s selection of adrenoleukodystrophy as the non-ophthalmic indication of the discovery programs. Under the terms of the Collaboration Agreement, the Company, in part through its participation in joint committees with Biogen, will participate in overseeing the development and commercialization of these specific programs. The Company has granted to Biogen with respect to the XLRS and XLRP programs, and upon exercise of the option for the applicable discovery program, an exclusive, royalty-bearing license, with the right to grant sublicenses, to use adeno-associated virus vector technology and other technology controlled by the Company for the licensed products or discovery programs developed under the Collaboration Agreement. Biogen and the Company have also granted each other worldwide licenses, with the right to grant sublicenses, of their respective interests in other intellectual property developed under the collaboration outside of the licensed products or discovery programs. Activities under the Collaboration Agreement were evaluated under ASC 605-25, Revenue Recognition—Multiple Element Arrangements Revenue Recognition (1) for each of the XLRS and XLRP programs, exclusive, royalty-bearing licenses, with the right to grant sublicenses, to use adeno-associated virus vector technology and other technology controlled by the Company for the purpose of researching, developing, manufacturing and commercializing licensed products developed under the arrangement (the “License Deliverables”); (2) for each of the discovery programs, exercisable options to obtain exclusive licenses to develop, seek regulatory approval for and commercialize any of the designated clinical candidates under such discovery programs (the “Option Deliverables”); and (3) the performance obligations to conduct research and development activities through (a) regulatory approval in the United States, in the case of the XLRS program; (b) completion of the first in human clinical trial, in the case of the XLRP program; and (c) the stage of clinical candidate designation, in the case of each of the discovery programs (the “R&D Activity Deliverables”). The R&D Activity Deliverables for each program are further segmented by those that are “Pre-Funded Activities” and those that are “Post-Funding Development Activities”. Pre-Funded Activities are those R&D activities for which the Company has primary responsibility and the consideration to be received under the agreement was received at the inception of the arrangement. Post-Funding Development Activities (referred to as “development services” throughout these financial statements) are those activities that may occur after the Pre-Funded Activities and for which the Company is entitled to additional compensation under the agreement from Biogen. Post Funding Development activities have commenced on the XLRP program and revenue is being generated. Biogen has final decision-making authority for all matters related to the conduct of the Post-Funding Development Activities. Because Biogen is not contractually obligated to continue the programs beyond the Pre-Funded Activities, and due to the uncertain outcome of the discovery, research and development activities, the Post-Funding Development Activities are not considered deliverables at the inception of the arrangement and the associated fees and milestones are not included in the allocable arrangement consideration. The Company has determined that the additional fees it could receive under the arrangement for Post-Funding Development Activities are not priced at a significant and incremental discount. The Company determined that both the License Deliverables and Option Deliverables do not have stand-alone value and do not meet the criteria to be accounted for as separate units of accounting under ASC 605-25. The factors considered by the Company in making this determination included, among other things, the unique and specialized nature of its proprietary technology and intellectual property, and the development stages of each of the XLRS, XLRP and the discovery programs targeting three indications. Accordingly, the License Deliverables under each of the XLRS and XLRP programs and the Option Deliverables under each of the discovery programs have been combined with the initial, Pre-Funded Activities deliverables associated with each related program and as a result, the Company’s separate units of accounting under its collaboration with Biogen, comprise the XLRS program, the XLRP program, and each of the discovery programs. Under the Collaboration Agreement, the Company received a non-refundable upfront payment of $94.0 million in August 2015 which it recorded as deferred revenue. This upfront payment of $94.0 million was allocated among the separate units of accounting discussed above using the relative selling price method. In addition to the Collaboration Agreement, on July 1, 2015, the Company also entered into an equity agreement with Biogen. Under the terms of this equity agreement, Biogen purchased 1,453,957 shares of the Company’s common stock, at a purchase price equal to $20.63 per share, for an aggregate cash purchase price of $30.0 million which the Company also received in August 2015. The shares issued to Biogen represented approximately 8.1% of the Company’s outstanding common stock on a post-issuance basis, calculated on the number of shares that were outstanding at June 30, 2015, and constitute restricted securities that may not be resold by Biogen other than in a transaction registered under, or pursuant to an exemption from the registration requirements of, the Securities Act of 1933, as amended. Accounting standards for multiple element arrangements contain a presumption that separate contracts negotiated or entered into at or near to the same time with the same entity were likely negotiated as a package and should be evaluated as a single agreement. The Company determined that the price of $20.63 paid by Biogen included a premium of $7.45 per share over the fair value of the Company’s stock price, calculated based upon the stock price on the date of close of the agreement and adjusted for lack of marketability due to restrictions. Accordingly, the total premium of $10.8 million was also recorded as deferred revenue and, together with the $94.0 million, allocated to the separate units of accounting identified above using the relative selling price method as discussed in Note 2 to these financial statements. The Company records revenue based on the revenue recognition criteria applicable to each separate unit of accounting. For amounts received up-front and initially deferred, the Company recognizes the deferred revenue on a straight-line basis over the estimated service periods in which it is required to perform the research and development activities associated with each unit of accounting. At the inception of the Collaboration Agreement, the Company initially estimated the service periods to range between 2 and 3 years. However, due to certain delays which have extended the Company’s estimated period of performance, the estimated service periods are currently anticipated to be between 2 and 5 years from inception of the Collaboration Agreement. The Company recognized collaboration revenue of $3.6 million and $8.3 million during the three months ended March 31, 2018 and 2017, respectively, and $18.7 million and $31.0 million during the nine months ended March 31, 2018 and 2017, respectively, from its collaboration with Biogen. Below is a summary of the components of the collaboration revenue: For the Three Months Ended March 31, For the Nine Months Ended March 31, 2018 2017 2018 2017 (dollars in thousands) Amortization of non-refundable upfront fees $ 2,844 $ 7,907 $ 16,333 $ 30,435 Development services 744 390 2,394 524 Total collaboration revenue $ 3,588 $ 8,297 $ 18,727 $ 30,959 As a result of the upfront payment of $94.0 million made by Biogen and the achievement of a $5.0 million milestone in fiscal year 2016, upon dosing the first XLRS patient, the Company became liable to various research partner institutions for sub-license and other payments under existing agreements with such institutions. These agreements obligate the Company to pay to each research partner institution a portion of certain proceeds received from collaboration and other arrangements, including any milestone payments received under such arrangements. Accordingly, the Company recorded total collaboration costs of approximately $12.0 million associated with such obligations, including $636,000 of expense that was settled during fiscal year 2016 by the issuance of 40,000 shares of the Company’s common stock to a research partner institution, pursuant to the terms of the existing agreement with that institution. The remainder of these sub-license and milestone fees were fully paid in cash during the fiscal year ended June 30, 2016. The Company is also eligible to receive payments of up to $467.5 million based on the successful achievement of future milestones under its XLRS and XLRP programs. For XLRS, the Company is eligible to receive up to: (i) $40 million in milestone payments based upon the successful achievement of clinical milestones (relating to dosing in specified trials), (ii) $155 million in milestone payments based upon the achievement of regulatory approvals and first commercial sale in specified territories and (iii) $65 million in milestone payments based upon the achievement of worldwide sales targets. For XLRP, the Company is eligible to receive up to: (i) $42.5 million in milestone payments based upon successful achievement of clinical milestones (relating to dosing in specified trials), (ii) $102.5 million in milestone payments based upon the achievement of regulatory approvals and first commercial sale in specified territories and (iii) $62.5 million in milestone payments based upon the achievement of worldwide sales targets. In addition, the Company is eligible to receive payments of up to $592.5 million based on the exercise of the option for and the successful achievement of future milestones under its discovery programs. Each discovery program is categorized as Category A, Category B or Category C depending on the nature of the indication it seeks to address. For Category A, the Company is eligible to receive payments of up to: (i) $20 million based upon the successful achievement of clinical milestones (relating to dosing in specified trials) and (ii) $70 million in milestone payments based upon the achievement of regulatory approvals and first commercial sale in specified territories. For Category B, the Company is eligible to receive payments of up to: (i) $27.5 million based upon the successful achievement of clinical milestones (relating to dosing in specified trials) and (ii) $105 million in milestone payments based upon the achievement of regulatory approvals and first commercial sale in specified territories. For Category C, the Company is eligible to receive payments of up to: (i) $40 million based upon the successful achievement of clinical milestones (relating to dosing in specified trials) and (ii) $140 million in milestone payments based upon the achievement of regulatory approvals and first commercial sale in specified territories. Under certain limited circumstances, if there are discovery products from more than one discovery program in any of Category A, Category B or Category C, then the milestone payments under the applicable category shall be payable for the applicable discovery product from each such discovery program to achieve the specified milestones. Biogen will also pay revenue-based royalties for each licensed product at tiered rates ranging from high single digit to mid-teen percentages of annual net sales of the XLRS or XLRP products and at rates ranging from mid-single digit to low-teen percentages of annual net sales for the discovery products. The Company has elected to apply the guidance in ASC 605-28 to the milestones. These milestones, if achieved, are substantive as they relate solely to past performance, are commensurate with estimated enhancement of value associated with the achievement of each milestone as a result of the Company’s performance and are reasonable when compared to other consideration amounts payable under the Collaboration Agreement; however, there can be no assurance that the Company will achieve the milestones or that the Company will receive the related revenue. Due to the uncertainty surrounding the achievement of the future milestones, such payments were not considered fixed or determinable at the inception of the Collaboration Agreement and accordingly, will not be recognized as revenue unless and until they become earned. The Company is not able to reasonably predict if and when the remaining milestones will be achieved. 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 will contribute to ongoing research and development support costs through additional payments or other in-kind contributions (AGTC Ongoing R&D Support). The AGTC Ongoing R&D Support payments and in-kind contributions will be made over time, up to the date that Bionic Sight has received both IND clearance from the FDA and receipt of written approval from an internal review board to conduct clinical trials from at least one clinical site for that product (the “IND Trigger”.) For the three and nine months ended March 31, 2018 payments and in-kind contributions were approximately $0.2 million and $0.8 million, respectively. If the IND Trigger is attained, AGTC will 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 contributions, and will be obligated to purchase additional equity in Bionic Sight for $4.0 million, at a pre-determined valuation. Due to the uncertainty of achieving the IND Trigger, the Company is expensing the AGTC Ongoing R&D Support payments and in-kind contributions made under the collaboration agreement. Such amounts are included as a component of research and development expenses in the Company’s financial statements. 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. During the three-month period ending March 31, 2018, the Company recorded a reduction of its investment in Bionic Sight of $5,061 and an investment loss on the statement of operations to reflect its equity interest in the net loss of this affiliate. 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. |
Revision of Prior Period Financ
Revision of Prior Period Financial Statements | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Revision of Prior Period Financial Statements | 7. Revision of Prior Period Financial Statements In the fourth quarter of fiscal 2017, the Company became aware of an immaterial error regarding the calculation of the income tax provision for the first three quarters of fiscal 2017. An assessment concluded that the error was not material to any prior period financial statements. As such, in accordance with ASC 250 (SAB No. 108, Considering Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the prior period financial statements have been revised (the "Revision") in the applicable financial statements. Periods not presented herein will be revised, as applicable, in future filings. Although management has determined that the error was not material to prior periods, the financial statements for the three and nine months ended March 31, 2017, included herein, have been revised to correct for the impact of this item. Unless otherwise indicated, the financial information as of and for the three and nine months ended March 31, 2017 presented in this Quarterly Report on Form 10-Q reflects this revision. The following table summarize the effect of the Revision on the Statement of Operations for the three and nine months ended March 31, 2017: For the Three Months Ended March 31, 2017 In thousands 2017 Adjustment 2017 Adjusted Loss before provision for income taxes $ (600 ) $ (600 ) Provision for Income Taxes 221 379 600 Net loss $ (821 ) $ (1,200 ) Net loss per share, basic $ (0.05 ) $ (0.07 ) Net loss per share, diluted $ (0.05 ) $ (0.07 ) For the Nine Months Ended March 31, 2017 In thousands 2017 Adjustment 2017 Adjusted Income before provision for income taxes $ 5,405 $ 5,405 Provision for Income Taxes 519 1,281 1,800 Net income $ 4,886 $ 3,605 Net earnings per share, basic $ 0.27 $ 0.20 Net earnings per share, diluted $ 0.27 $ 0.20 The following table summarize the effect of the Revision on the Statement of Cash Flows for the nine months ended March 31, 2017: For the Nine Months Ended March 31, 2017 In thousands 2017 Adjustment 2017 Adjusted Net income $ 4,886 (1,281 ) $ 3,605 Changes in operating assets and liabilities Accrued and other liabilities (142 ) 1,281 1,139 Net cash (used in) operating activities $ (21,007 ) $ (21,007 ) |
Subsequent events
Subsequent events | 9 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | 8. Subsequent events In April 2018, the Company earned a $2.5 million milestone payment from Biogen due to dosing of the first patient in the XLRP Phase 1/2 clinical trial. The company owes sublicensing fees of approximately 23% to certain collaborators associated with this milestone payment. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [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 (“GAAP”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for each period 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 GAAP have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations for interim reporting. See Note 7 for a discussion of a revision of prior financial results presented related to the recording of our income tax provision for fiscal year 2017. The Condensed Balance Sheet as of June 30, 2017 was derived from audited financial statements, but does not include all disclosures required by GAAP. These Unaudited Condensed Financial Statements should be read in conjunction with the audited financial statements included in the Company’s 2017 Annual Report on Form 10-K, as amended, (“June 30, 2017 Form 10-K”). Results of operations for the three and nine months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any other interim period. |
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 segment. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP 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 periods. 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 maturity. Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in investment income. Interest on securities classified as held-to-maturity is included in investment income. 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”) Topic 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 The Company has primarily generated revenue through collaboration agreements, sponsored research arrangements with nonprofit organizations for the development and commercialization of product candidates and revenues from federal research and development grant programs. The Company recognizes revenue when amounts are realized or realizable and earned. Revenue is considered realizable and earned when the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the price is fixed or determinable; and (iv) collection of the amounts due are reasonably assured. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s balance sheets. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current liabilities. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue and not as a reduction of research and development expenses, as the Company has the risks and rewards as the principal in the research and development activities. The Company evaluates the terms of sponsored research agreement grants and federal grants to assess the Company’s obligations and if the Company’s obligations are satisfied by the passage of time, revenue is recognized on a straight-line basis. In situations where the performance of the Company’s obligations has been satisfied when the grant is received, revenue is recognized upon receipt of the grant. Certain grants contain refund provisions. The Company reviews those refund provisions to determine the likelihood of repayment. If the likelihood of repayment of the grant is determined to be remote, the grant is recognized as revenue. If the probability of repayment is determined to be more than remote, the Company records the grant as a deferred revenue liability, until such time that the grant requirements have been satisfied. Collaboration revenue On July 1, 2015, the Company entered into a Collaboration Agreement with Biogen. This collaboration is discussed further in Note 6 to the financial statements. The terms of the Collaboration Agreement and other potential collaboration or commercialization agreements the Company may enter into generally contain multiple elements, or deliverables, which may include, among others, (i) licenses, or options to obtain licenses, to its technology, and (ii) research and development activities to be performed on behalf of the collaborative partner. Payments made under such arrangements typically include one or more of the following: non-refundable, up-front license fees; option exercise fees; funding of research and/or development efforts; milestone payments; and royalties on future product sales. Multiple element arrangements are analyzed to determine whether the deliverables within the agreement can be separated or whether they must be accounted for as a single unit of accounting. Deliverables under an agreement are required to be accounted for as separate units of accounting provided that (i) a delivered item has value to the customer on a stand-alone basis; and (ii) if the agreement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor. The allocation of consideration amongst the deliverables under the agreement is derived using a “best estimate of selling price” if vendor specific objective evidence and third-party evidence of fair value is not available. If the delivered element does not have stand-alone value or if the fair value of any of the undelivered elements cannot be determined, the arrangement is then accounted for as a single unit of accounting, and the Company recognizes the consideration received under the arrangement as revenue on a straight-line basis over the estimated period of performance. The Company determines the estimated selling price for deliverables within each agreement using vendor-specific objective evidence, or VSOE, of selling price, if available, third-party evidence, or TPE, of selling price if VSOE is not available, or best estimate of selling price, or BESP, if neither VSOE nor TPE are available. Determining the best estimate of selling price for a deliverable requires significant judgment. The Company uses BESP to estimate the selling price related to licenses to its proprietary technology, since it often does not have VSOE or TPE of selling price for these deliverables. In those circumstances where it utilizes BESP to determine the estimated selling price of a license to our proprietary technology, the Company considers market conditions as well as entity-specific factors, including those factors contemplated in negotiating the agreements as well as internally developed models that include assumptions related to the market opportunity, estimated development costs, probability of success and the time needed to commercialize a product candidate pursuant to the license. In validating its best estimate of selling price, the Company evaluates whether changes in the key assumptions used to determine the best estimate of selling price will have a significant effect on the allocation of arrangement consideration among multiple deliverables. If the delivered element does not have stand-alone value, the arrangement is then accounted for as a single unit of accounting and the Company recognizes the consideration received under the arrangement as revenue on a straight-line basis over its estimated period of performance. The Company’s anticipated periods of performance, typically the terms of its research and development obligations, are subject to estimates by management and may change over the course of the collaboration agreement. Such changes could have a material impact on the amount of revenue recorded in future periods. Milestone revenue The Company applies the milestone method of accounting to recognize revenue from milestone payments when earned, as evidenced by written acknowledgement from the collaborator or other persuasive evidence that the milestone has been achieved and the payment is non-refundable, provided that the milestone event is substantive. A milestone event is defined as an event (i) that can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; (ii) for which there is substantive uncertainty at the inception of the arrangement that the event will be achieved; and (iii) that would result in additional payments being due to the Company. Events for which the occurrence is either contingent solely upon the passage of time or the result of a counterparty’s performance are not considered to be milestone events. A milestone event is substantive if all of the following conditions are met: (i) the consideration is commensurate with either the Company’s performance to achieve the milestone, or the enhancement of the value to the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) the consideration relates solely to past performance; and (iii) the consideration is reasonable relative to all the deliverables and payment terms (including other potential milestone consideration) within the arrangement. The Company assesses whether a milestone is substantive at the inception of the arrangement. If a milestone is deemed non-substantive, the Company accounts for that milestone payment in accordance with the multiple element arrangements guidance and recognizes revenue consistent with the related units of accounting for the arrangement over the related performance period. No milestone revenues were recognized during the three and nine month periods ended March 31, 2018 and March 31, 2017. |
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 Cuts and Jobs Act of 2017 was signed into law on December 22, 2017. The law includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%. In December 2017, the SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides for a measurement period of up to one year from the enactment date for companies to complete the accounting for the initial income tax effects of the Tax Act. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting is complete and provide a provisional estimate (where determinable) of the income tax effects of the Tax Act where the accounting is incomplete. The provisional estimate is required to be updated throughout the measurement period. During the quarter ending December 31, 2017, the Company recorded an income tax benefit of $791,000 relating to the Company’s minimum tax credit carryforward, which becomes refundable under the new law. For the three and nine months ended March 31, 2017, the Company recorded an income tax provision of $0.6 million and $1.8 million respectively, related to the Company’s federal alternative minimum taxable income (“AMTI”) and state income tax in multiple states where the Company is doing business. The Company calculates its AMTI using the alternative minimum tax (“AMT”) system. The Company’s federal income tax liability is the greater of the tax computed using the regular tax system or the tax under the AMT system. Corporations are exempt from the AMT for all years in which their annual gross receipts for the 3-year period ending before the current tax year did not exceed $7.5 million. As of June 30, 2017, the Company no longer qualifies for the small company exclusion. The AMT system limits the use of net operating losses used by the taxpayer to offset 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 threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense. The Company is subject to examination of its income tax returns in the federal and state income tax jurisdictions in which it operates. At June 30, 2017, the total amount of unrecognized tax benefits recorded on the Company’s balance sheet was approximately $1.0 million. During the three and nine months ended March 31, 2018, the Company recognized an increase in unrecognized tax benefits as a result of tax positions taken during a prior period in the amount of $0.7 million, resulting in an ending accrued balance $1.7 million at March 31,2018. The Company recorded potential interest and penalties on unrecognized tax benefits in the amount of $0.4 million during the three months ended March 31, 2018. The Company’s deferred tax asset, net of liabilities, decreased by $7.5 million, primarily due to a re-measurement of deferred tax assets and liabilities to the revised statutory tax rate under the Tax Act. The deferred tax asset, net of liabilities, is completely offset by valuation allowances established because realization of the deferred tax benefits are not considered more likely than not as of March 31, 2018. For the three month and nine month periods ended March 31, 2018, the Company recorded an income tax provision (benefit) of $0.7 million and ($66,000), respectively. The income tax expense for the three months ended March 31, 2018 was primarily driven by the apportionment of income to certain state jurisdictions where the Company had not generated net operating losses (NOL’s). The income tax benefit for the nine months ended March 31, 2018 was primarily due to certain tax credit carryforwards becoming refundable under The Tax Cuts and Jobs Act of 2017, offset by income tax expense for the three months ended March 31, 2018. |
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 share-based compensation to research related employees; laboratory costs; animal and laboratory maintenance and supplies; rent; utilities; clinical and pre-clinical expenses; and payments for sponsored research, scientific and regulatory consulting fees and testing. 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 $1.2 million and $1.5 million at March 31, 2018 and June 30, 2017, respectively, and are included within the prepaid and other current assets line item on the 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 Equity-Based Payments to Non-employees For purposes of calculating stock-based compensation, the Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the Company’s stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The expected volatility is primarily based on the historical volatility of peer company data while the expected life of the stock options is based on historical and other economic data trended into the future. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the Company’s stock options. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. If factors change and the Company employs different assumptions, stock-based compensation expense may differ significantly from what has been recorded in the past. If there is a difference between the assumptions used in determining stock-based compensation expense and the actual factors which become known over time, specifically with respect to anticipated forfeitures, the Company may change the input factors used in determining stock-based compensation costs for future grants. These changes, if any, may materially impact the Company’s results of operations in the period such changes are made. |
Net income (loss) per share | Net income (loss) per share Basic net earnings (loss) per share is calculated by dividing net earnings (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 net earnings (loss) per share calculation, stock options and warrants are considered to be common stock equivalents if they are dilutive. For the three and nine months ended March 31, 2018 and the three months ended March 31, 2017, basic and diluted net loss per share are the same due to stock options and warrants being considered anti-dilutive. If stock options and warrants had been dilutive, their impact would have increased common stock equivalents outstanding for the three and nine- month periods ended March 31, 2018 by 0.2 million shares and by 0.3 million shares for the three months ended March 31, 2017. Stock options and warrants were dilutive for the nine months ended March 31, 2017 and increased common stock equivalents outstanding by 0.4 million shares. |
Comprehensive income or loss | Comprehensive income or loss Comprehensive income or loss consists of net income or loss and changes in equity during a period from transactions and other equity and circumstances generated from non-owner sources. The Company’s net income or loss equals comprehensive income or loss for all periods presented. |
New accounting pronouncements | New accounting pronouncements In May 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-09, Scope of Modification Accounting Compensation – Stock Compensation In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Certificates of Deposit | Certificates of Deposit. The Company’s certificates of deposit are placed through an account registry service. The fair value measurement of the Company’s certificates of deposit is considered Level 2 of the fair value hierarchy as the inputs are based on rates currently offered for deposits of similar remaining maturities. The carrying amounts of the Company’s certificates of deposit reported in the unaudited condensed balance sheets approximate fair value. |
Debt Securities - Held-to-maturity | Debt securities – held-to-maturity. The Company’s investments in debt securities classified as held-to-maturity generally include U.S. Treasury Securities, government agency obligations, and corporate obligations. U.S. Treasury Securities are valued using quoted market prices. Valuation adjustments are not applied. Accordingly, U.S. Treasury Securities are considered Level 1 of the fair value hierarchy. The fair values of U.S. government agency obligations and corporate obligations are generally determined using recently executed transactions, broker quotes, market price quotations where these are available or other observable market inputs for the same or similar securities. As such, the Company classifies its investments in U.S. government agency obligations and corporate obligations within Level 2 of the hierarchy. |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the stock option activity for the nine months ended March 31, 2018 and 2017 is as follows: For the Nine Months Ended March 31, 2018 2017 Weighted Weighted Average Average Exercise Exercise (In thousands, except per share amounts) Shares Price Shares Price Outstanding at June 30, 2,714 $ 12.96 2,037 $ 13.71 Granted 819 4.75 831 11.00 Exercised (18 ) 0.35 (31 ) 0.90 Forfeited (401 ) 9.89 (93 ) 13.98 Expired (18 ) 15.81 (29 ) 17.07 Outstanding at March 31, 3,096 $ 11.24 2,715 $ 12.98 Exercisable at March 31, 1,862 1,392 Weighted average fair value of options granted during the period $ 3.43 $ 7.53 |
Stock Option Pricing Model Assumption | The following assumptions were made in estimating fair value: Assumption Nine months ended March 31, 2018 Dividend yield 0.00% Expected term 6.25 years Risk-free interest rate 1.83-2.21% Expected Volatility 83.53% |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Investments Schedule [Abstract] | |
Summary of Company's Investments | The following table summarizes the Company’s investments by category as of March 31, 2018 and June 30, 2017: March 31, June 30, In thousands 2018 2017 Investments - Current: Certificates of deposit $ 2,819 $ 3,500 Debt securities - held-to-maturity 61,348 92,494 Total investments – current $ 64,167 $ 95,994 Investments - Noncurrent: Certificates of deposit — 2,111 Debt securities - held-to-maturity — 9,638 Total investments - non-current $ — $ 11,749 |
Summary of Company's Debt Securities Held-to-Maturity | A summary of the Company’s debt securities classified as held-to-maturity is as follows: At March 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair In thousands Cost Gains Losses Value Investments - Current: U.S. government and agency obligations $ 62,143 $ — $ (80 ) $ 62,063 Corporate obligations 2,024 — (7 ) 2,017 Total investments - current $ 64,167 $ — $ (87 ) $ 64,080 At June 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair In thousands Cost Gains Losses Value Investments - Current: U.S. government and agency obligations $ 92,494 $ — $ (147 ) $ 92,347 Corporate obligations — — — — $ 92,494 $ — $ (147 ) $ 92,347 Investments - Noncurrent: U.S. government and agency obligations $ 7,552 $ — $ (52 ) $ 7,500 Corporate obligations 2,086 — (12 ) 2,074 $ 9,638 $ — $ (64 ) $ 9,574 |
Summary of Amortized Cost and Fair Value of Held-to-Maturity Debt Securities | The amortized cost and fair value of held-to-maturity debt securities as of March 31, 2018, by contractual maturity, were as follows: In thousands Amortized Cost Fair Value Due in one year or less $ 64,167 $ 64,080 $ 64,167 $ 64,080 |
Fair Value of Financial Instr17
Fair Value of Financial Instruments and Investments (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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: Quoted prices Significant Significant in active other observable unobservable Total markets inputs inputs Total Fair Carrying In thousands (Level 1) (Level 2) (Level 3) Value Value March 31, 2018 Cash and cash equivalents $ 47,633 $ — $ — $ 47,633 $ 47,633 Certificates of deposit — 2,811 — $ 2,811 2,819 Held-to-maturity investments: Corporate obligations — 2,017 — 2,017 2,024 U.S. government and agency obligations 57,256 1,996 — 59,252 59,324 Total assets $ 104,889 $ 6,824 $ — $ 111,713 $ 111,800 June 30, 2017 Cash and cash equivalents $ 30,706 $ — $ — $ 30,706 $ 30,706 Certificates of deposit — 5,611 — 5,611 5,611 Held-to-maturity investments: Corporate obligations — 2,074 — 2,074 2,086 U.S. government and agency obligations 79,476 20,372 — 99,847 100,046 Total assets $ 110,182 $ 28,057 $ — $ 138,238 $ 138,449 |
Collaboration Agreements (Table
Collaboration Agreements (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Collaboration Revenue | Below is a summary of the components of the collaboration revenue: For the Three Months Ended March 31, For the Nine Months Ended March 31, 2018 2017 2018 2017 (dollars in thousands) Amortization of non-refundable upfront fees $ 2,844 $ 7,907 $ 16,333 $ 30,435 Development services 744 390 2,394 524 Total collaboration revenue $ 3,588 $ 8,297 $ 18,727 $ 30,959 |
Revision of Prior Period Fina19
Revision of Prior Period Financial Statements (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Summary of Revision of Prior Period Financial Statements | The following table summarize the effect of the Revision on the Statement of Operations for the three and nine months ended March 31, 2017: For the Three Months Ended March 31, 2017 In thousands 2017 Adjustment 2017 Adjusted Loss before provision for income taxes $ (600 ) $ (600 ) Provision for Income Taxes 221 379 600 Net loss $ (821 ) $ (1,200 ) Net loss per share, basic $ (0.05 ) $ (0.07 ) Net loss per share, diluted $ (0.05 ) $ (0.07 ) For the Nine Months Ended March 31, 2017 In thousands 2017 Adjustment 2017 Adjusted Income before provision for income taxes $ 5,405 $ 5,405 Provision for Income Taxes 519 1,281 1,800 Net income $ 4,886 $ 3,605 Net earnings per share, basic $ 0.27 $ 0.20 Net earnings per share, diluted $ 0.27 $ 0.20 The following table summarize the effect of the Revision on the Statement of Cash Flows for the nine months ended March 31, 2017: For the Nine Months Ended March 31, 2017 In thousands 2017 Adjustment 2017 Adjusted Net income $ 4,886 (1,281 ) $ 3,605 Changes in operating assets and liabilities Accrued and other liabilities (142 ) 1,281 1,139 Net cash (used in) operating activities $ (21,007 ) $ (21,007 ) |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) $ in Thousands | Aug. 14, 2015TargetIndication | Jul. 31, 2015TargetIndication | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) |
Summary Of Organization And Operations [Line Items] | ||||
Accumulated deficit | $ (104,314) | $ (89,626) | ||
Cash and cash equivalents and liquid investments | $ 111,800 | |||
Collaboration Agreement [Member] | BIOGEN [Member] | ||||
Summary Of Organization And Operations [Line Items] | ||||
Number of target indications | TargetIndication | 3 | 3 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Milestone revenue | $ 0 | $ 0 | $ 0 | $ 0 | |||
Federal statutory income tax rate | 21.00% | 35.00% | |||||
Income tax provision (benefit) | $ 725,000 | $ (791,000) | $ 600,000 | $ (66,000) | $ 1,800,000 | ||
Alternative minimum tax exemption, description | Corporations are exempt from the AMT for all years in which their annual gross receipts for the 3-year period ending before the current tax year did not exceed $7.5 million. | ||||||
Unrecognized tax benefits | 1,700,000 | $ 1,700,000 | $ 1,000,000 | ||||
Increase in unrecognized tax benefits as a result of tax positions taken in prior period | 700,000 | 700,000 | |||||
Interest and penalties on unrecognized tax benefits | $ 400,000 | ||||||
Decrease in deferred tax asset, net of liabilities | $ 7,500,000 | ||||||
Dilutive impact of options and other share based compensation awards | 0.2 | 0.3 | 0.2 | 0.4 | |||
Prepaid and Other Current Assets [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Advance payments | $ 1,200,000 | $ 1,200,000 | $ 1,500,000 | ||||
Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Annual gross receipts amount limit for last three years period to avail AMT exemption | $ 7,500,000 |
Share-based Compensation Plan22
Share-based Compensation Plans - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($)Planshares | Mar. 31, 2017USD ($)shares | |
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of equity compensation plans | Plan | 2 | |||
Stock options granted | 819,000 | 831,000 | ||
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 | 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 | 819,468 | |||
Stock Options [Member] | ||||
Share-Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ | $ 1.2 | $ 1.2 | $ 3.9 | $ 4.2 |
Unrecognized compensation expense | $ | $ 7.5 | $ 7.5 |
Share-based Compensation Plan23
Share-based Compensation Plans - Summary of Stock Option Activity (Detail) - $ / shares shares in Thousands | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Outstanding Beginning Balance, Shares | 2,714 | 2,037 |
Granted, Shares | 819 | 831 |
Exercised, Shares | (18) | (31) |
Forfeited, Shares | (401) | (93) |
Expired, Shares | (18) | (29) |
Outstanding Ending Balance, Shares | 3,096 | 2,715 |
Exercisable, end of period, Shares | 1,862 | 1,392 |
Weighted average fair value of options granted during the period | $ 3.43 | $ 7.53 |
Outstanding Beginning Balance, Weighted Average Exercise Price | 12.96 | 13.71 |
Granted, Weighted Average Exercise Price | 4.75 | 11 |
Exercised, Weighted Average Exercise Price | 0.35 | 0.90 |
Forfeited, Weighted Average Exercise Price | 9.89 | 13.98 |
Expired, Weighted Average Exercise Price | 15.81 | 17.07 |
Outstanding Ending Balance, Weighted Average Exercise Price | $ 11.24 | $ 12.98 |
Share-based Compensation Plan24
Share-based Compensation Plans - Stock Option Pricing Model Assumption (Detail) | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Dividend yield | 0.00% |
Expected term | 6 years 3 months |
Risk-free interest rate, minimum | 1.83% |
Risk-free interest rate, maximum | 2.21% |
Expected Volatility | 83.53% |
Investments - Summary of Compan
Investments - Summary of Company's Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Investments - Current: | ||
Certificates of deposit | $ 2,819 | $ 3,500 |
Debt securities - held-to-maturity | 61,348 | 92,494 |
Total investments – current | 64,167 | 95,994 |
Investments - Noncurrent: | ||
Certificates of deposit | 2,111 | |
Debt securities - held-to-maturity | 9,638 | |
Total investments - non-current | $ 0 | $ 11,749 |
Investments - Summary of Comp26
Investments - Summary of Company's Debt Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Investments - Current [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 64,167 | $ 92,494 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (87) | (147) |
Fair Value | 64,080 | 92,347 |
Investments - Noncurrent [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 9,638 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (64) | |
Fair Value | 9,574 | |
US Government and Agencies Obligations [Member] | Investments - Current [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 62,143 | 92,494 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (80) | (147) |
Fair Value | 62,063 | 92,347 |
US Government and Agencies Obligations [Member] | Investments - Noncurrent [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 7,552 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (52) | |
Fair Value | 7,500 | |
Corporate Obligations [Member] | Investments - Current [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,024 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | 0 |
Fair Value | $ 2,017 | 0 |
Corporate Obligations [Member] | Investments - Noncurrent [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,086 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (12) | |
Fair Value | $ 2,074 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Fair Value of Held-to-Maturity Debt Securities (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Investments Schedule [Abstract] | |
Amortized cost due in one year or less | $ 64,167 |
Total amortized cost | 64,167 |
Fair value due in one year or less | 64,080 |
Total fair value | $ 64,080 |
Fair Value of Financial Instr28
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) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, carrying value | $ 125,447 | $ 147,923 |
Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 111,713 | 138,238 |
Assets, carrying value | 111,800 | 138,449 |
Fair Value on a Recurring Basis [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 47,633 | 30,706 |
Assets, carrying value | 47,633 | 30,706 |
Fair Value on a Recurring Basis [Member] | Certificate of Deposit [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,811 | 5,611 |
Assets, carrying value | 2,819 | 5,611 |
Fair Value on a Recurring Basis [Member] | Corporate Obligations [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,017 | 2,074 |
Assets, carrying value | 2,024 | 2,086 |
Fair Value on a Recurring Basis [Member] | US Government and Agencies Obligations [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 59,252 | 99,847 |
Assets, carrying value | 59,324 | 100,046 |
Fair Value on a Recurring Basis [Member] | Quoted Prices in Active markets (Level 1) [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 104,889 | 110,182 |
Fair Value on a Recurring Basis [Member] | 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 | 47,633 | 30,706 |
Fair Value on a Recurring Basis [Member] | Quoted Prices in Active markets (Level 1) [Member] | US Government and Agencies Obligations [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 57,256 | 79,476 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 6,824 | 28,057 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificate of Deposit [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,811 | 5,611 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,017 | 2,074 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Government and Agencies Obligations [Member] | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 1,996 | $ 20,372 |
Collaboration Agreements - Addi
Collaboration Agreements - Additional Information (Detail) | Feb. 02, 2017USD ($)Site | Aug. 14, 2015TargetIndication | Jun. 30, 2015 | Aug. 31, 2015USD ($)$ / sharesshares | Jul. 31, 2015TargetIndication | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($)Programshares | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($)shares | Jun. 30, 2015 | Jun. 30, 2017USD ($)shares |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Common stock, shares issued | shares | 18,121,000 | 18,121,000 | 18,088,000 | |||||||||
Aggregate cash purchase price | $ 18,000 | $ 18,000 | $ 18,000 | |||||||||
Collaboration revenue | 3,588,000 | $ 8,297,000 | 18,727,000 | $ 30,959,000 | ||||||||
Milestone revenue | 0 | 0 | 0 | 0 | ||||||||
Equity method investments | 1,995,000 | 1,995,000 | $ 2,000,000 | |||||||||
Reduction in equity interest investment in net loss of affiliate | 5,000 | $ 5,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Number of target indications | TargetIndication | 3 | 3 | ||||||||||
Non-refundable upfront payments received | $ 94,000,000 | |||||||||||
Common stock, shares issued | shares | 1,453,957 | |||||||||||
Purchase price of common stock | $ / shares | $ 20.63 | |||||||||||
Aggregate cash purchase price | $ 30,000,000 | |||||||||||
Aggregate net proceeds received | $ 30,000,000 | |||||||||||
Percentage common stock post-issuance | 8.10% | |||||||||||
Premium price per share | $ / shares | $ 7.45 | |||||||||||
Premium recorded as deferred revenue | $ 10,800,000 | |||||||||||
Deferred revenue recognition period | For amounts received up-front and initially deferred, the Company recognizes the deferred revenue on a straight-line basis over the estimated service periods in which it is required to perform the research and development activities associated with each unit of accounting. At the inception of the Collaboration Agreement, the Company initially estimated the service periods to range between 2 and 3 years. However, due to certain delays which have extended the Company’s estimated period of performance, the estimated service periods are currently anticipated to be between 2 and 5 years from inception of the Collaboration Agreement[12.15]. | |||||||||||
Collaboration revenue | 3,588,000 | $ 8,297,000 | $ 18,727,000 | $ 30,959,000 | ||||||||
Milestone revenue | $ 5,000,000 | |||||||||||
Total collaboration costs | 12,000,000 | |||||||||||
Share-settled collaboration expense | $ 636,000 | |||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Minimum [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Deferred revenue recognition estimated service period | 2 years | 2 years | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Minimum [Member] | Category A Discovery Program [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Number of programs | Program | 1 | |||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Minimum [Member] | Category B Discovery Program [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Number of programs | Program | 1 | |||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Minimum [Member] | Category C Discovery Program [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Number of programs | Program | 1 | |||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Deferred revenue recognition estimated service period | 5 years | 3 years | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | Category A Discovery Program [Member] | Clinical Milestones [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 20,000,000 | $ 20,000,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | Category A Discovery Program [Member] | Regulatory Approvals and First Commercial Sale in Specified Territories [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 70,000,000 | 70,000,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | Category B Discovery Program [Member] | Clinical Milestones [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 27,500,000 | 27,500,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | Category B Discovery Program [Member] | Regulatory Approvals and First Commercial Sale in Specified Territories [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 105,000,000 | 105,000,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | Category C Discovery Program [Member] | Clinical Milestones [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 40,000,000 | 40,000,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | Category C Discovery Program [Member] | Regulatory Approvals and First Commercial Sale in Specified Territories [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 140,000,000 | 140,000,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | XLRS and XLRP [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 467,500,000 | 467,500,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | XLRS [Member] | Clinical Milestones [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 40,000,000 | 40,000,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | XLRS [Member] | Regulatory Approvals and First Commercial Sale in Specified Territories [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 155,000,000 | 155,000,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | XLRS [Member] | Worldwide Sales Targets [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 65,000,000 | 65,000,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | XLRP [Member] | Clinical Milestones [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 42,500,000 | 42,500,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | XLRP [Member] | Regulatory Approvals and First Commercial Sale in Specified Territories [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 102,500,000 | 102,500,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | XLRP [Member] | Worldwide Sales Targets [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 62,500,000 | 62,500,000 | ||||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | Discovery Programs [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Potential future milestone payments receivable | 592,500,000 | 592,500,000 | ||||||||||
Collaboration Agreement [Member] | Research Partner Institution [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Common stock, shares issued | shares | 40,000 | |||||||||||
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% | |||||||||||
Payments and in-kind contributions | 200,000 | $ 800,000 | ||||||||||
Equity method investments | $ 2,000,000 | |||||||||||
Reduction in equity interest investment in net loss of affiliate | $ 5,061 | |||||||||||
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 | |||||||||||
Strategic Research and Development Collaboration Agreement [Member] | Bionic Sight LLC [Member] | Minimum [Member] | IND Trigger [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Number of clinical site required to conduct clinical trials | Site | 1 |
Collaboration Agreements - Comp
Collaboration Agreements - Components of Collaboration Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Total collaboration revenue | $ 3,588 | $ 8,297 | $ 18,727 | $ 30,959 |
Collaboration Agreement [Member] | BIOGEN [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Amortization of non-refundable upfront fees | 2,844 | 7,907 | 16,333 | 30,435 |
Development services | 744 | 390 | 2,394 | 524 |
Total collaboration revenue | $ 3,588 | $ 8,297 | $ 18,727 | $ 30,959 |
Revision of Prior Period Fina31
Revision of Prior Period Financial Statements - Summary of Revision on Statements of Operations (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Income (Loss) before provision for income taxes | $ (600,000) | $ 5,405,000 | |||
Provision for Income Taxes | $ 725,000 | $ (791,000) | 600,000 | $ (66,000) | 1,800,000 |
Net income (loss) | $ (8,101,000) | $ (1,200,000) | $ (14,688,000) | $ 3,605,000 | |
Net earnings (loss) per share, basic | $ (0.45) | $ (0.07) | $ (0.81) | $ 0.20 | |
Net earnings (loss) per share, diluted | $ (0.45) | $ (0.07) | $ (0.81) | $ 0.20 | |
As Previously Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Income (Loss) before provision for income taxes | $ (600,000) | $ 5,405,000 | |||
Provision for Income Taxes | 221,000 | 519,000 | |||
Net income (loss) | $ (821,000) | $ 4,886,000 | |||
Net earnings (loss) per share, basic | $ (0.05) | $ 0.27 | |||
Net earnings (loss) per share, diluted | $ (0.05) | $ 0.27 | |||
Adjustment [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Provision for Income Taxes | $ 379,000 | $ 1,281,000 | |||
Net income (loss) | $ (1,281,000) |
Revision of Prior Period Fina32
Revision of Prior Period Financial Statements - Summary of Revision on Statements of Cash (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | $ (8,101) | $ (1,200) | $ (14,688) | $ 3,605 |
Changes in operating assets and liabilities | ||||
Accrued and other liabilities | 1,365 | 1,139 | ||
Net cash (used in) operating activities | $ (25,777) | (21,007) | ||
As Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | $ (821) | 4,886 | ||
Changes in operating assets and liabilities | ||||
Accrued and other liabilities | (142) | |||
Net cash (used in) operating activities | (21,007) | |||
Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | (1,281) | |||
Changes in operating assets and liabilities | ||||
Accrued and other liabilities | $ 1,281 |
Subsequent events - Additional
Subsequent events - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2016 | |
Subsequent Event [Line Items] | ||||||
Milestone payment earned | $ 0 | $ 0 | $ 0 | $ 0 | ||
Collaboration Agreement [Member] | BIOGEN [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Milestone payment earned | $ 5,000,000 | |||||
Collaboration Agreement [Member] | BIOGEN [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Milestone payment earned | $ 2,500,000 | |||||
Percentage of sublicensing fees to certain collaborators associated with milestone payment | 23.00% |