DEI Document
DEI Document - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | XERIS PHARMACEUTICALS INC | |
Entity Central Index Key | 0001346302 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Listing, Par Value Per Share | $ 0.0001 | |
Entity Common Stock, Shares Outstanding | 26,987,351 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 66,669 | $ 45,716 |
Short-term Investments | 57,841 | 66,917 |
Accounts receivable, net | 826 | 2,869 |
Prepaid expenses and other current assets | 813 | 2,397 |
Total current assets | 126,149 | 117,899 |
Property and equipment, net | 7,677 | 2,034 |
Other assets | 68 | 95 |
Total assets | 133,894 | 120,028 |
Current Liabilities | ||
Accounts payable | 1,840 | 866 |
Accrued expenses | 15,609 | 8,214 |
Current portion of long-term debt | 3,000 | 0 |
Warrants liabilities | 403 | 860 |
Deferred grant awards | 156 | 232 |
Total current liabilities | 21,008 | 10,172 |
Long-term debt, net of unamortized deferred costs | 29,403 | 31,890 |
Other long-term liabilities | 8,692 | 2,560 |
Total liabilities | 59,103 | 44,622 |
Commitments and Contingencies (Note 8) | ||
Stockholders' Equity | ||
Preferred Stock, par value $0.0001 | 0 | 0 |
Common stock, par value $0.0001 | 3 | 2 |
Additional paid in capital | 255,047 | 196,121 |
Accumulated deficit | (180,327) | (120,665) |
Accumulated other comprehensive gain (loss) | 68 | (52) |
Total stockholders' equity | 74,791 | 75,406 |
Total liabilities and stockholders' equity | $ 133,894 | $ 120,028 |
Condensed Balance Sheets Balanc
Condensed Balance Sheets Balance Sheets Parenthetical - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||
Preferred Stock, Par Value Per Share | $ 0.0001 | $ 0.0001 |
Common Shares, Par Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Shares, Issued | 26,934,673 | 20,808,366 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Grant income | $ 314 | $ 819 | $ 529 | $ 1,029 |
Service revenue | 6 | 0 | 39 | 53 |
Cost of revenue | 23 | 0 | 23 | 42 |
Gross Profit | 297 | 819 | 545 | 1,040 |
Operating expenses | ||||
Research and development | 19,333 | 8,677 | 32,500 | 17,389 |
Selling, general and administrative | 15,024 | 4,499 | 27,542 | 7,738 |
Expense from operations | 34,357 | 13,176 | 60,042 | 25,127 |
Loss from operations | (34,060) | (12,357) | (59,497) | (24,087) |
Other income (expense) | ||||
Interest and other income | 845 | 238 | 1,516 | 334 |
Interest expense | (1,062) | (562) | (2,125) | (753) |
Change in fair value of warrants | (108) | (306) | 444 | (388) |
Total other income (expense) | (325) | (630) | (165) | (807) |
Net loss | (34,385) | (12,987) | (59,662) | (24,894) |
Other comprehensive loss, net of tax | ||||
Unrealized gains on short-term investments | 69 | 0 | 120 | 0 |
Comprehensive loss | $ (34,316) | $ (12,987) | $ (59,542) | $ (24,894) |
Net loss per common share - basic and diluted | $ (1.28) | $ (3.07) | $ (2.36) | $ (7.76) |
Weighted average common shares outstanding, basic and diluted | 26,889,398 | 4,231,054 | 25,234,489 | 3,205,998 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Deficit) Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] |
Common Stock, Shares, Issued | 2,159,068 | ||
Common Stock, Value, Issued | $ 1 | ||
Additional paid in capital | $ 2,754 | ||
Accumulated other comprehensive gain (loss) | $ 0 | ||
Accumulated deficit | (60,585) | ||
Stockholders' Equity Attributable to Parent | (57,830) | ||
Net loss | (11,906) | ||
Shares, Exercise and vesting of stock-based awards | 39,510 | ||
Value, Exercise of stock-based awards | 51 | 51 | |
Stock-based compensation | 244 | 244 | |
Net loss | (24,894) | ||
Unrealized gains on short-term investments | 0 | ||
Common Stock, Shares, Issued | 2,198,578 | ||
Common Stock, Value, Issued | $ 1 | ||
Additional paid in capital | 3,049 | ||
Accumulated other comprehensive gain (loss) | 0 | ||
Accumulated deficit | (72,491) | ||
Stockholders' Equity Attributable to Parent | (69,441) | ||
Net loss | (12,987) | ||
Stock Issued During Period, Shares, New Issues | 6,555,000 | ||
Stock Issued During Period, Value, Conversion of Convertible Securities | 102,293 | $ 1 | 102,292 |
Stock Issued During Period, Value, New Issues | 89,002 | 89,002 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 11,837,073 | ||
Shares, Exercise and vesting of stock-based awards | 97,806 | ||
Value, Exercise of stock-based awards | 109 | 109 | |
Stock-based compensation | 361 | 361 | |
Unrealized gains on short-term investments | 0 | ||
Common Stock, Shares, Issued | 20,688,457 | ||
Common Stock, Value, Issued | $ 2 | ||
Additional paid in capital | 194,813 | ||
Accumulated other comprehensive gain (loss) | 0 | ||
Accumulated deficit | (85,478) | ||
Stockholders' Equity Attributable to Parent | $ 109,337 | ||
Common Stock, Shares, Issued | 20,808,366 | 20,808,366 | |
Common Stock, Value, Issued | $ 2 | $ 2 | |
Additional paid in capital | 196,121 | 196,121 | |
Accumulated other comprehensive gain (loss) | (52) | ||
Accumulated deficit | (120,665) | ||
Stockholders' Equity Attributable to Parent | 75,406 | ||
Net loss | (25,277) | ||
Stock Issued During Period, Shares, New Issues | 5,996,775 | ||
Stock Issued During Period, Value, New Issues | 55,632 | $ 1 | 55,631 |
Shares, Exercise and vesting of stock-based awards | 72,797 | ||
Value, Exercise of stock-based awards | 128 | 128 | |
Stock-based compensation | 1,147 | 1,147 | |
Unrealized gains on short-term investments | $ 51 | ||
Warrants, exercises in period | 2,271 | ||
Warrants, exercises in period, value | $ 13 | 13 | |
Net loss | (59,662) | ||
Unrealized gains on short-term investments | 120 | ||
Common Stock, Shares, Issued | 26,880,209 | ||
Common Stock, Value, Issued | $ 3 | ||
Additional paid in capital | 253,040 | ||
Accumulated other comprehensive gain (loss) | (1) | ||
Accumulated deficit | (145,942) | ||
Stockholders' Equity Attributable to Parent | 107,100 | ||
Net loss | (34,385) | ||
Shares, Exercise and vesting of stock-based awards | 30,235 | ||
Value, Exercise of stock-based awards | 70 | 70 | |
Stock-based compensation | $ 1,701 | 1,701 | |
Shares, Issuance of common stock through employee stock purchase plan | 24,229 | ||
Value, Issuance of common stock through employee stock purchase plan | $ 236 | 236 | |
Unrealized gains on short-term investments | $ 69 | ||
Common Stock, Shares, Issued | 26,934,673 | 26,934,673 | |
Common Stock, Value, Issued | $ 3 | $ 3 | |
Additional paid in capital | 255,047 | $ 255,047 | |
Accumulated other comprehensive gain (loss) | 68 | ||
Accumulated deficit | (180,327) | ||
Stockholders' Equity Attributable to Parent | $ 74,791 |
Condensed Statements of Stock_2
Condensed Statements of Stockholders' Equity (Deficit) Parenthetical (Parentheticals) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Condensed Statements of Stockholders' Equity (Deficit) [Abstract] | |
Total costs for the issuance of common stock from public offering | $ 4,338,000 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (59,662,000) | $ (24,894,000) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 359,000 | 141,000 |
Amortization of short-term investments | (451,000) | 0 |
Amortization of debt issuance costs | 513,000 | 156,000 |
Stock-based compensation | 2,848,000 | 605,000 |
Change in fair value of warrants | (444,000) | 388,000 |
Changes in operating assets and liabilities | ||
Accounts receivable | 2,043,000 | 134,000 |
Prepaid expenses and other current assets | 1,584,000 | (629,000) |
Other assets | 27,000 | 69,000 |
Accounts payable | 974,000 | (1,420,000) |
Accrued expenses | 7,571,000 | 3,261,000 |
Deferred grant awards | (76,000) | 50,000 |
Deferred rent | 492,000 | 112,000 |
Other liabilities | 31,000 | 0 |
Net cash used in operating activities | (44,191,000) | (22,027,000) |
Cash flows from investing activities | ||
Capital expenditures | (494,000) | (489,000) |
Purchases of short-term investments | (46,260,000) | 0 |
Sales and maturities of short-term investments | 55,908,000 | 0 |
Net cash provided (used) in investing activities | 9,154,000 | (489,000) |
Cash flows from financing activities | ||
Proceeds from Initial Public Offering | 0 | 98,325,000 |
Payments for Initial Public Offering Costs | 0 | (7,588,000) |
Proceeds from the issuance of common stock from public offering | 59,970,000 | 0 |
Payments of public offering costs | (4,338,000) | 0 |
Proceeds from sale of Series C Preferred Stock | 0 | 4,438,000 |
Payments for Series C Preferred Stock offering costs | 0 | (24,000) |
Proceeds from issuance of long-term debt | 0 | 20,000,000 |
Payments of debt issuance costs | 0 | (238,000) |
Purchases from employee stock purchase plan | 236,000 | 0 |
Proceeds from exercise of stock awards | 122,000 | 86,000 |
Net cash provided by financing activities | 55,990,000 | 114,999,000 |
Increase in cash and cash equivalents | 20,953,000 | 92,483,000 |
Cash and cash equivalents, beginning of period | 45,716,000 | 42,045,000 |
Cash and cash equivalents, end of period | 66,669,000 | 134,528,000 |
Supplemental schedule of cash flow information | ||
Cash paid for interest | 1,638,000 | 451,000 |
Supplemental schedule of non-cash investing and financing activities | ||
Tenant improvements | 5,508,000 | 0 |
Deferred Initial Public Offering costs within accrued expenses | 0 | 1,735,000 |
Accrued debt issuance costs | 2,325,000 | 1,425,000 |
Allocation of debt costs to warrants | 0 | 326,000 |
Vesting of early exercised awards | $ 76,000 | $ 75,000 |
Note 1. Organization and Nature
Note 1. Organization and Nature of the Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of the Business | Organization and Nature of the Business Nature of business Xeris Pharmaceuticals, Inc. ("Xeris" or the "Company") is a specialty pharmaceutical company that was incorporated in Delaware in 2005. Xeris is dedicated to the development of ready-to-use injectable and infusible drug formulations that address important unmet medical needs, are easier to use by patients, caregivers and health practitioners, and reduce costs for payors and the healthcare system. Since its inception, the Company has devoted substantially all of its efforts to research and development, regulatory and technical activities. The Company has financed its operations through the issuance of its common stock, convertible preferred stock and other equity instruments, debt financing and grant funding from the National Institutes of Health ("NIH") and other philanthropic organizations. The Company has not generated any revenue from product sales. The Company has incurred operating losses since inception and has an accumulated deficit of $180.3 million as of June 30, 2019 . The Company expects to continue to incur net losses for the next several years. Based on the Company’s current operating plans and existing working capital at June 30, 2019 , the Company believes cash resources are sufficient to sustain operations and capital expenditure requirements for at least the next 12 months. The Company is subject to a number of risks similar to other specialty pharmaceutical companies, including, but not limited to, successful development and commercialization of its drug candidates, the development of new technological innovations by its competitors, protection of intellectual property and market acceptance of the Company’s products. Basis of presentation These condensed financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), including those for interim financial information, and with the instructions for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (the "SEC"). Accordingly, such financial statements do not include all of the information and note disclosures required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position and its results of operations and cash flows for the periods presented. The results of operations for such periods are not necessarily indicative of the results that may be expected for any future period. The accompanying financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2018 included in the Company's Annual Report on Form 10-K filed with the SEC on March 6, 2019. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). |
Note 2. Summary of Significant
Note 2. Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Refer to the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 for a discussion of the Company's accounting policies. New accounting pronouncements Recently issued accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases will be classified as either operating or finance leases under the new guidance. Operating leases will result in straight-line expense in the income statement, similar to current operating leases, and finance leases will result in more expense being recognized in the earlier years of the lease term, similar to current capital leases. As an emerging growth company, ASU 2016-02 will be effective for the Company on January 1, 2020. The Company is currently evaluating the impact the adoption of this new standard will have on the financial statements and related disclosures; however, since the Company is a lessee to certain leases for property whose terms exceed twelve months, it expects to report assets and liabilities related to these leases on the financial statements that have not been previously reported once adopted. |
Note 3. Reverse Stock Split and
Note 3. Reverse Stock Split and Initial Public Offering | 6 Months Ended |
Jun. 30, 2019 | |
Reverse Stock Split and Initial Public Offering [Abstract] | |
Reverse Stock Split and Initial Public Offering | Reverse Stock Split and Public Stock Offerings On June 8, 2018, the Company effectuated a 1-for- 1.78112 reverse stock split of its outstanding common stock, which was approved by the Company’s board of directors on May 22, 2018 and by the Company’s stockholders on June 8, 2018. The reverse stock split resulted in an adjustment to the then outstanding preferred stock conversion prices to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying condensed financial statements and related notes to condensed financial statements give retroactive effect to the reverse stock split for all periods presented. The shares of common stock retained a par value of $0.0001 per share. Accordingly, stockholders’ equity reflects the reverse stock split by reclassifying from common stock to additional paid in capital an amount equal to the par value of the decreased shares resulting from the reverse stock split. On June 25, 2018, the Company closed the initial public offering ("IPO") of its common stock pursuant to a registration statement on Form S-1, as amended. The Company sold an aggregate of 6,555,000 shares of common stock under the registration statement at an IPO price of $15.00 per share, including 855,000 shares of common stock pursuant to the exercise of the underwriters’ option to purchase additional shares. Net proceeds from the IPO were $88.9 million , after deducting underwriting discounts and commissions, as well as other IPO expenses. Upon closing the IPO, all outstanding shares of the Company's Series A, B and C convertible preferred stock were converted into 11,837,073 shares of common stock. On February 19, 2019, the Company completed a public offering of its common stock pursuant to a registration statement on Form S-1, as amended. The Company sold an aggregate of 5,996,775 shares of common stock at a price of $10.00 per share, including 116,775 shares of common stock pursuant to the exercise of the underwriters' option to purchase additional shares. Net proceeds from the public offering were $55.6 million after deducting underwriting discounts and commissions, as well as other public offering expenses. Warrants In 2014 the Company issued 19,931 warrants (“2014 Warrants”) to certain investors. The 2014 Warrants allow each holder to purchase one share of common stock for $5.912 . There have been 16,944 2014 Warrants exercised, and 2,987 2014 Warrants remain outstanding as of June 30, 2019 . As part of the Loan and Security Agreement discussed in Note 5, "Long-term Debt," in the notes to condensed financial statements, the Lenders received warrants equal to 3.0% of the principal borrowing amounts concurrent with the borrowing. The warrants represent a right for the lender to purchase shares of the Company’s common stock at an exercise price of $11.169 per share. The Company issued 53,720 warrants ("Term A Warrants") upon the drawdown of the Term A Loan in February 2018, and the Company issued 40,292 warrants ("Term B Warrants") upon the drawdown of the Term B Loan in September 2018. There have been no exercises of Term A Warrants or Term B Warrants, and as such all 53,720 warrants and 40,292 warrants, respectively, were outstanding as of June 30, 2019 . Because the warrants are a freestanding instrument, indexed to the Company's stock, they do not meet the criteria for equity classification. Therefore, warrants are liability classified and subject to remeasurement at each reporting period until they are exercised, expired, or otherwise settled. The Company recognized losses of $(4,000) , $(59,000) and $(45,000) due to the change in fair value of the warrants during the three months ended June 30, 2019 related to the 2014 Warrants, the Term A Warrants and the Term B Warrants, respectively. The Company recognized gains of $68,000 , $215,000 and $161,000 due to the change in fair value of the warrants during the six months ended June 30, 2019 related to the 2014 Warrants, the Term A Warrants and the Term B Warrants, respectively. The Company recognized losses of $(133,000) and $(173,000) due to the change in fair value of the warrants during the three months ended June 30, 2018 related to the 2014 Warrants and the Term A Warrants, respectively. The Company recognized losses of $(178,000) and $(210,000) due to the change in fair value of the warrants during the six months ended June 30, 2018 related to the 2014 Warrants and the Term A Warrants, respectively. As of June 30, 2019 , the following warrants were outstanding: Outstanding Warrants Exercise Price per Warrant Expiration Date 2014 Warrants 2,987 $5.912 August 2020 Term A Warrants 53,720 $11.169 February 2025 Term B Warrants 40,292 $11.169 September 2025 96,999 |
Note 4. Accrued Expenses (Notes
Note 4. Accrued Expenses (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following: (in thousands) June 30, 2019 December 31, 2018 Accrued research and development costs $ 8,863 $ 2,221 Accrued employee costs 3,449 4,326 Accrued marketing and selling costs 2,395 — Accrued other costs 902 1,667 Accrued expenses $ 15,609 $ 8,214 |
Note 5. Long-Term Debt
Note 5. Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-term Debt Senior Secured Loan Facility In February 2018, the Company entered into the Loan and Security Agreement that provides a senior secured loan facility of up to an aggregate principal amount of $45.0 million . The first tranche was $20.0 million and was drawn down in February 2018 ("Term A Loan"). The second tranche was $15.0 million and was drawn down in September 2018 ("Term B Loan"). The third tranche is $10.0 million and is available beginning upon approval of the Company’s Gvoke TM New Drug Application ("NDA") by the U.S. Food & Drug Administration (”FDA”) until the earlier of September 30, 2019 or the 30 th day following NDA approval by the FDA. The interest rate under the Loan and Security Agreement is the thirty-day U.S. LIBOR rate plus 6.75% , which was 9.18% as of June 30, 2019 . Payments on the Loan and Security Agreement are interest only for the first 24 months , which can be extended by an additional twelve months if the third tranche is drawn. The total term of the loan is fifty-nine months , and the principal payments will begin 24 months from the beginning of the term or, should the third tranche be drawn, 36 months from the beginning of the term. Pursuant to the Loan and Security Agreement, the Company provided a first priority security interest in all existing and future-acquired assets, excluding intellectual property and certain other assets, owned by the Company. The Loan and Security Agreement contains a negative pledge on intellectual property owned by the Company. The Company also issued warrants to the Lenders to purchase common stock, which is further discussed in Note 7, "Warrants," of the notes to condensed financial statements. The Loan and Security Agreement allows the Company to voluntarily prepay the outstanding amounts thereunder, but not less than $2.0 million of the outstanding principal at any time. Prior to April 1, 2020, the Company is subject to a prepayment penalty equal to 1.50% of the principal amount being prepaid. In the event the Company draws down the third tranche, the period subject to the 1.50% prepayment penalty is extended to April 1, 2021. No prepayment fee exists for prepayments made after April 1, 2020, or April 1, 2021 in the event the third tranche is issued. A final payment fee of 6.5% multiplied by the original principal amount of each tranche drawn is due upon the earlier to occur of the maturity date of the Loan and Security Agreement, the acceleration of the Loan and Security Agreement or prepayment of such borrowings and is recorded in other long-term liabilities on the condensed balance sheets. The Loan and Security Agreement includes a non-utilization fee of 2.0% multiplied by the principal amount of tranche three payable to Lenders in October 2019, if the Company elects not to draw the third tranche. The Loan and Security Agreement also contains customary indemnification obligations and customary events of default, including, among other things, failure to fulfill certain obligations under the Loan and Security Agreement and the occurrence of a material adverse change in the Company's business, operations or condition, a material impairment of the prospect of repayment of any portion of the loan, or a material impairment in the perfection or priority of the Lenders’ lien in the collateral or in the value of such collateral. In the event of default under the Loan and Security Agreement, the Company would be required to pay interest on principal and all other due and unpaid obligations at the current rate in effect plus 5% . All such interest would be payable on demand and in cash. Further, the Lenders would be entitled to exercise their remedies thereunder, including the right to accelerate the debt, upon which the Company may be required to repay all amounts then outstanding under the Loan and Security Agreement. The Loan and Security Agreement includes certain restrictions on, among other things, the Company’s ability to incur additional indebtedness, change the name or location of the business, merge with or acquire other entities, pay dividends or make other distributions to holders of the Company’s capital stock, make certain investments, engage in transactions with affiliates, create liens, open new deposit accounts, sell assets or pay subordinated debt. The components of debt are as follows: (in thousands) June 30, 2019 December 31, 2018 Term A Loan $ 20,000 $ 20,000 Term B Loan 15,000 15,000 Principal amount of long-term debt 35,000 35,000 Less: Current portion of long-term debt (3,000 ) — Long-term debt, net of current position 32,000 35,000 Less: Unamortized deferred costs (2,597 ) (3,110 ) Long-term debt, net of unamortized deferred costs $ 29,403 $ 31,890 The following table sets forth the Company’s future minimum principal payments (in thousands): 2019 $ — 2020 9,000 2021 12,000 2022 12,000 2023 2,000 $ 35,000 The Company incurred total debt issuance costs of $3.7 million , which are reflected as a direct reduction to the term loan balance and are being amortized into interest expense over the life of the loan using the effective interest method. For the three and six months ended June 30, 2019 , the Company recognized interest expense of $1,062,000 and $2,125,000 , respectively, of which $262,000 and $513,000 , respectively, was related to the amortization of debt issuance costs. For the three and six months ended June 30, 2018 , the Company recognized interest expense of $562,000 and $753,000 , respectively, of which $116,000 and $156,000 , respectively, was related to the amortization of debt issuance costs. |
Note 6. Convertible Preferred S
Note 6. Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2019 | |
Convertible preferred stock [Abstract] | |
Convertible Preferred Stock | Convertible Preferred Stock In February 2018, the Company issued an additional 707,680 shares of Series C convertible preferred stock for net proceeds of $4.4 million . During the second quarter of 2018, a majority of the holders of the Company's convertible preferred stock elected to have their shares converted into common stock; therefore, all outstanding shares of preferred stock were converted into 11,837,073 shares of common stock at a conversion rate of 1: 1.78112 upon the closing of the Company's IPO on June 25, 2018. Prior to the conversion of the convertible preferred stock into common stock, the holders of the Company’s convertible preferred stock were entitled to receive non-cumulative dividends at the rate of 8% of the purchase price per annum in preference to any dividends to the holders of the common stock, payable as and if when declared by the Board of Directors. The holders of the convertible preferred stock also were entitled to participate pro rata in any dividends paid to the holders of the common stock on an as-converted basis. No dividends were declared by the Company’s Board of Directors. |
Note 7. Warrants (Notes)
Note 7. Warrants (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Warrants [Abstract] | |
Warrants | Reverse Stock Split and Public Stock Offerings On June 8, 2018, the Company effectuated a 1-for- 1.78112 reverse stock split of its outstanding common stock, which was approved by the Company’s board of directors on May 22, 2018 and by the Company’s stockholders on June 8, 2018. The reverse stock split resulted in an adjustment to the then outstanding preferred stock conversion prices to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying condensed financial statements and related notes to condensed financial statements give retroactive effect to the reverse stock split for all periods presented. The shares of common stock retained a par value of $0.0001 per share. Accordingly, stockholders’ equity reflects the reverse stock split by reclassifying from common stock to additional paid in capital an amount equal to the par value of the decreased shares resulting from the reverse stock split. On June 25, 2018, the Company closed the initial public offering ("IPO") of its common stock pursuant to a registration statement on Form S-1, as amended. The Company sold an aggregate of 6,555,000 shares of common stock under the registration statement at an IPO price of $15.00 per share, including 855,000 shares of common stock pursuant to the exercise of the underwriters’ option to purchase additional shares. Net proceeds from the IPO were $88.9 million , after deducting underwriting discounts and commissions, as well as other IPO expenses. Upon closing the IPO, all outstanding shares of the Company's Series A, B and C convertible preferred stock were converted into 11,837,073 shares of common stock. On February 19, 2019, the Company completed a public offering of its common stock pursuant to a registration statement on Form S-1, as amended. The Company sold an aggregate of 5,996,775 shares of common stock at a price of $10.00 per share, including 116,775 shares of common stock pursuant to the exercise of the underwriters' option to purchase additional shares. Net proceeds from the public offering were $55.6 million after deducting underwriting discounts and commissions, as well as other public offering expenses. Warrants In 2014 the Company issued 19,931 warrants (“2014 Warrants”) to certain investors. The 2014 Warrants allow each holder to purchase one share of common stock for $5.912 . There have been 16,944 2014 Warrants exercised, and 2,987 2014 Warrants remain outstanding as of June 30, 2019 . As part of the Loan and Security Agreement discussed in Note 5, "Long-term Debt," in the notes to condensed financial statements, the Lenders received warrants equal to 3.0% of the principal borrowing amounts concurrent with the borrowing. The warrants represent a right for the lender to purchase shares of the Company’s common stock at an exercise price of $11.169 per share. The Company issued 53,720 warrants ("Term A Warrants") upon the drawdown of the Term A Loan in February 2018, and the Company issued 40,292 warrants ("Term B Warrants") upon the drawdown of the Term B Loan in September 2018. There have been no exercises of Term A Warrants or Term B Warrants, and as such all 53,720 warrants and 40,292 warrants, respectively, were outstanding as of June 30, 2019 . Because the warrants are a freestanding instrument, indexed to the Company's stock, they do not meet the criteria for equity classification. Therefore, warrants are liability classified and subject to remeasurement at each reporting period until they are exercised, expired, or otherwise settled. The Company recognized losses of $(4,000) , $(59,000) and $(45,000) due to the change in fair value of the warrants during the three months ended June 30, 2019 related to the 2014 Warrants, the Term A Warrants and the Term B Warrants, respectively. The Company recognized gains of $68,000 , $215,000 and $161,000 due to the change in fair value of the warrants during the six months ended June 30, 2019 related to the 2014 Warrants, the Term A Warrants and the Term B Warrants, respectively. The Company recognized losses of $(133,000) and $(173,000) due to the change in fair value of the warrants during the three months ended June 30, 2018 related to the 2014 Warrants and the Term A Warrants, respectively. The Company recognized losses of $(178,000) and $(210,000) due to the change in fair value of the warrants during the six months ended June 30, 2018 related to the 2014 Warrants and the Term A Warrants, respectively. As of June 30, 2019 , the following warrants were outstanding: Outstanding Warrants Exercise Price per Warrant Expiration Date 2014 Warrants 2,987 $5.912 August 2020 Term A Warrants 53,720 $11.169 February 2025 Term B Warrants 40,292 $11.169 September 2025 96,999 |
Note 8. Commitments and Conting
Note 8. Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has non-cancellable operating leases for office space, which expire at various times through 2031. The non-cancellable office lease agreements provide for monthly lease payments, which increase during the term of each lease agreement. In the first quarter of 2018, the Company signed a lease for office space in Chicago, Illinois. In the fourth quarter of 2018, the Company signed an amendment to this lease to occupy new space and relocated from its existing premises to this additional space in March 2019. The future minimum lease payments of the amended lease are approximately $0 in 2019, $746,000 in 2020, $1,095,000 in 2021, $1,125,000 in 2022, $1,156,000 in 2023, and $9,747,000 for 2024 and thereafter. Total rent expense under these operating leases was approximately $556,000 and $229,000 for the three months ended June 30, 2019 and 2018 , respectively |
Note 9. Stock Compensation Plan
Note 9. Stock Compensation Plan (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plan | Stock Compensation Plan In 2011, the Company adopted the 2011 Stock Option Issuance Plan (“2011 Plan”) and subsequently amended it to authorize the Board of Directors to grant up to 4,714,982 incentive stock option and non-qualified stock option awards. The 2018 Stock Option and Incentive Plan ("2018 Plan") was adopted by the Board of Directors in April 2018 and approved by the Company's stockholders in June 2018 to award up to 1,822,000 shares of common stock. This plan became effective on the date immediately prior to the effectiveness of the Company's IPO registration statement. The 2018 Plan replaced the 2011 Plan as the Board of Directors determined not to make additional awards under the 2011 Plan following the closing of the IPO, which occurred in June 2018. The 2018 Plan allows the compensation committee to make equity-based and cash-based incentive awards to the Company's officers, employees, directors and other key persons (including consultants). The 2018 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2019, by 4% of the outstanding number of shares of our common stock on the immediately preceding December 31, or such lesser number of shares as determined by the compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company's capitalization. On January 1, 2019, the number of shares of common stock available for issuance under the 2018 Plan was automatically increased by 835,728 shares. As of June 30, 2019 , there were approximately 833,000 shares of common stock available for future issuance under the 2018 Plan. The 2018 Employee Stock Purchase Plan ("ESPP") was adopted by the Board of Directors in April 2018 and approved by the Company's stockholders in June 2018 to award up to 193,000 shares of common stock to participating employees. This plan became effective on the date immediately prior to the effectiveness of the Company's IPO registration statement. The ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2019 and each January 1 thereafter through January 1, 2028, by the least of (i) 1% of the outstanding number of shares of our common stock on the immediately preceding December 31; (ii) 386,000 shares or (iii) such lesser number of shares as determined by the ESPP administrator. On January 1, 2019, the number of shares of common stock available for issuance under the ESPP increased by 208,932 shares. The number of shares reserved under the ESPP is subject to adjustment in the event of a stock split, stock dividend or other change in capitalization. The first offering period for the ESPP began January 1, 2019 and ended June 30, 2019. As of June 30, 2019 , there were approximately 378,000 shares available for issuance under the ESPP. For the six months ended June 30, 2019 , the Company recognized expense of $128,000 related to the ESPP. The Equity Inducement Plan ("Inducement Plan") was adopted by the Board of Directors in February 2019. The Inducement Plan was adopted without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. The Inducement Plan allows the Company to make stock option or restricted stock unit awards to prospective employees of the Company as an inducement to such individuals to commence employment with the Company. The Company intends to use this Inducement Plan to help it attract and retain prospective employees who are necessary to support the commercial launch of Gvoke and the expansion of the Company generally. The Company has initially reserved 750,000 shares of common stock for the issuance of awards under the Inducement Plan. This number is subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization. As of June 30, 2019 , there were approximately 452,000 shares of common stock available for future issuance under the Inducement Plan. Stock options are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. Stock option awards typically vest over either two years or four years from the grant date and expire ten years from the grant date. The fair value of each option is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods during the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected stock price volatility assumption is based on the historical volatilities of a peer group of publicly traded companies as well as the historical volatility of the Company's common stock since the Company began trading subsequent to its IPO in June 2018 over the period corresponding to the expected life as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of the Company’s ordinary shares as of the grant date. The Company uses historical data to estimate employee terminations within the valuation model. The fair value of stock options granted was estimated with the following weighted average assumptions: Six Months Ended June 30, 2019 2018 Expected term (years) 6.0 6.0 Risk-free interest rate 1.76 % 2.77 % Expected volatility 58.50 % 63.22 % Expected dividends — — Stock option activity for employee awards under the 2011 Plan, 2018 Plan and Inducement Plan for the six months ended June 30, 2019 was as follows: Options Weighted Average Exercise Price Weighted Average Contractual Life (Years) Outstanding - January 1, 2019 3,127,308 $ 8.06 8.69 Granted 1,391,380 12.49 Exercised and vested (102,330) 1.78 Forfeited (118,845) 11.99 Outstanding - June 30, 2019 4,297,513 $ 9.45 8.60 Exercisable - June 30, 2019 2,260,381 $ 4.63 7.40 Vested and expected to vest at June 30, 2019 4,039,662 $ 9.49 8.60 The weighted average fair value of awards granted to employees during the six months ended June 30, 2019 was $6.34 per share. The total intrinsic value of options exercised during the six months ended June 30, 2019 was $1.0 million . The aggregate intrinsic value of awards vested and expected to vest as of June 30, 2019 was $16.3 million . The Company also granted stock options to non-employees under the 2011 Plan and 2018 Plan. These awards are marked to fair value at the end of each reporting period until they vest. Stock option activity for these awards for the six months ended June 30, 2019 was as follows: Options Weighted Average Exercise Price Weighted Average Contractual Life (Years) Outstanding - January 1, 2019 3,392 $ 1.55 2.00 Granted 12,500 13.88 Exercised and vested (702) 1.55 Outstanding - June 30, 2019 15,190 $ 11.70 8.25 Exercisable - June 30, 2019 0 $ 0.00 0.00 Vested and expected to vest at June 30, 2019 14,278 $ 11.70 8.25 The aggregate intrinsic value of non-employee awards vested and expected to vest at June 30, 2019 was $25,000 . The aggregate intrinsic value of awards exercisable as of June 30, 2019 was $0 . The company recognized expense associated with these awards of $4,000 and $50,000 for the three months ended June 30, 2019 and 2018 , respectively. The company recognized expense associated with these awards of $8,000 and $57,000 for the six months ended June 30, 2019 and 2018 , respectively. Restricted stock unit ("RSU") awards for the six months ended June 30, 2019 were as follows: Units Unvested balance - January 1, 2019 0 Granted 125,000 Unvested balance - June 30, 2019 125,000 Restricted stock unit awards are measured based on the fair market value of the underlying stock on the date of grant and recognized as expense on a straight-line basis over the employee’s requisite service period (generally the vesting period). As of June 30, 2019 there was $1.3 million of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over the weighted-average remaining vesting period of 3.5 years . The following table summarizes the reporting of total stock-based compensation expense resulting from employee and non-employee stock options: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Research and development $ 300 $ 161 $ 495 $ 282 Selling, general and administrative 1,401 200 2,353 323 Total stock-based compensation expense $ 1,701 $ 361 $ 2,848 $ 605 At June 30, 2019 , there was a total of $16.4 million of unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted average period of 2.91 years . |
Note 10. Fair Value Measurement
Note 10. Fair Value Measurement | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Measured using unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Measured using quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Measured based on prices or valuation models that required inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below takes into account the market for its financial assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of June 30, 2019 and December 31, 2018 : (in thousands) Total as of June 30, 2019 Level 1 Level 2 Level 3 Current Assets Cash and cash equivalents: Money market funds $ 66,669 $ 66,669 $ — $ — Short-term investments: U.S. government securities $ 41,321 $ 41,321 $ — $ — Corporate securities 4,988 — 4,988 — Agency securities 10,334 — 10,334 — Commercial paper 1,198 1,198 — — Total short-term investments $ 57,841 $ 42,519 $ 15,322 $ — Other Current Liabilities Warrant liabilities $ 403 $ — $ — $ 403 (in thousands) Total as of December 31, 2018 Level 1 Level 2 Level 3 Current Assets Cash and cash equivalents: Money market funds $ 45,716 $ 45,716 $ — $ — Short-term investments: U.S. government securities $ 38,737 $ 38,737 $ — $ — Corporate securities 15,066 — 15,066 — Agency securities 11,931 — 11,931 — Commercial paper 1,183 1,183 — — Total short-term investments $ 66,917 $ 39,920 $ 26,997 $ — Other Current Liabilities Warrant liabilities $ 860 $ — $ — $ 860 The fair value of the Company’s warrant liabilities is based on a Black-Scholes valuation which considers the expected term of the warrants as well as the risk-free interest rate and expected volatility of the Company's common stock. The Company has determined that the warrant liabilities' fair values are Level 3 items within the fair value hierarchy. The following table presents the changes in the warrant liabilities: (in thousands) Balance at December 31, 2018 $ 860 Exercise of warrants (13) Change in fair value of warrants (444) Balance at June 30, 2019 $ 403 There were no transfers between any of the levels of the fair value hierarchy during the six months ended June 30, 2019 . |
Note 11. Short-Term Investments
Note 11. Short-Term Investments (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term investments | Short-Term Investments The Company classifies its investments in debt securities as short-term investments and available-for-sale. Debt securities are comprised of highly liquid investments with minimum “A” rated securities and, as of June 30, 2019 , consist of U.S. Treasury and agency bonds and corporate entity commercial paper and securities with maturities of more than three months but less than one year at the date of purchase. Debt securities as of June 30, 2019 had an average remaining maturity of 0.39 years. The debt securities are reported at fair value with unrealized gains or losses recorded in accumulated other comprehensive gain (loss) in the condensed balance sheets. Any differences between the cost and fair value of investments are represented by unrealized gains or losses. Refer to Note 10, "Fair Value Measurements," of the notes to condensed financial statements for information related to the fair value measurements and valuation methods utilized. The following table represents the Company’s available-for-sale short-term investments by major security type as of June 30, 2019 : (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Fair Value Short-term investments: Agency securities $ 10,330 $ 4 $ — $ 10,334 Commercial paper 1,198 — — 1,198 Corporate securities 4,981 7 — 4,988 U.S. government securities 41,263 59 (1 ) 41,321 Total short-term investments $ 57,772 $ 70 $ (1 ) $ 57,841 The Company reviews available-for-sale investments for other-than-temporary impairment loss quarterly. The Company considers factors such as the duration, severity and the reason for the decline in value, the potential recovery period and our intent to sell. For debt securities, we also consider whether (i) it is more likely than not that the Company will be required to sell the debt securities before recovery of their amortized cost basis and (ii) the amortized cost basis cannot be recovered as a result of credit losses. During the quarter ended June 30, 2019 , the Company did not recognize any other-than-temporary impairment losses. All marketable securities with unrealized losses have been in a loss position for less than twelve months. |
Note 12. Net Loss Per Common Sh
Note 12. Net Loss Per Common Share (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Earnings Per Share [Text Block] | Net Loss Per Common Share Basic and diluted net loss per common share is determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. For all periods presented, the outstanding shares of preferred stock, warrants, stock option awards and restricted stock units have been excluded from the calculation because their effects would be anti-dilutive. Therefore, the weighted average common shares outstanding used to calculate both basic and diluted loss per common share are the same. The following potentially dilutive securities were excluded from the computation of diluted weighted average common shares outstanding due to their anti-dilutive effect: As of June 30, 2019 2018 Vested and unvested stock options 4,312,703 2,541,262 Restricted stock units 125,000 — Warrants 96,999 73,651 4,534,702 2,614,913 |
Note 4. Accrued Expenses (Table
Note 4. Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: (in thousands) June 30, 2019 December 31, 2018 Accrued research and development costs $ 8,863 $ 2,221 Accrued employee costs 3,449 4,326 Accrued marketing and selling costs 2,395 — Accrued other costs 902 1,667 Accrued expenses $ 15,609 $ 8,214 |
Note 5. Long-Term Debt (Tables)
Note 5. Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments | The components of debt are as follows: (in thousands) June 30, 2019 December 31, 2018 Term A Loan $ 20,000 $ 20,000 Term B Loan 15,000 15,000 Principal amount of long-term debt 35,000 35,000 Less: Current portion of long-term debt (3,000 ) — Long-term debt, net of current position 32,000 35,000 Less: Unamortized deferred costs (2,597 ) (3,110 ) Long-term debt, net of unamortized deferred costs $ 29,403 $ 31,890 |
Schedule of Maturities of Long-term Debt | The following table sets forth the Company’s future minimum principal payments (in thousands): 2019 $ — 2020 9,000 2021 12,000 2022 12,000 2023 2,000 $ 35,000 |
Note 7. Warrants (Tables)
Note 7. Warrants (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Warrants [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | As of June 30, 2019 , the following warrants were outstanding: Outstanding Warrants Exercise Price per Warrant Expiration Date 2014 Warrants 2,987 $5.912 August 2020 Term A Warrants 53,720 $11.169 February 2025 Term B Warrants 40,292 $11.169 September 2025 96,999 |
Note 9. Stock Compensation Pl_2
Note 9. Stock Compensation Plan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based Compensation Assumptions Used in Black-Scholes Option Valuation Model | The fair value of stock options granted was estimated with the following weighted average assumptions: Six Months Ended June 30, 2019 2018 Expected term (years) 6.0 6.0 Risk-free interest rate 1.76 % 2.77 % Expected volatility 58.50 % 63.22 % Expected dividends — — |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Activity | Stock option activity for employee awards under the 2011 Plan, 2018 Plan and Inducement Plan for the six months ended June 30, 2019 was as follows: Options Weighted Average Exercise Price Weighted Average Contractual Life (Years) Outstanding - January 1, 2019 3,127,308 $ 8.06 8.69 Granted 1,391,380 12.49 Exercised and vested (102,330) 1.78 Forfeited (118,845) 11.99 Outstanding - June 30, 2019 4,297,513 $ 9.45 8.60 Exercisable - June 30, 2019 2,260,381 $ 4.63 7.40 Vested and expected to vest at June 30, 2019 4,039,662 $ 9.49 8.60 The weighted average fair value of awards granted to employees during the six months ended June 30, 2019 was $6.34 per share. The total intrinsic value of options exercised during the six months ended June 30, 2019 was $1.0 million . The aggregate intrinsic value of awards vested and expected to vest as of June 30, 2019 was $16.3 million . The Company also granted stock options to non-employees under the 2011 Plan and 2018 Plan. These awards are marked to fair value at the end of each reporting period until they vest. Stock option activity for these awards for the six months ended June 30, 2019 was as follows: Options Weighted Average Exercise Price Weighted Average Contractual Life (Years) Outstanding - January 1, 2019 3,392 $ 1.55 2.00 Granted 12,500 13.88 Exercised and vested (702) 1.55 Outstanding - June 30, 2019 15,190 $ 11.70 8.25 Exercisable - June 30, 2019 0 $ 0.00 0.00 Vested and expected to vest at June 30, 2019 14,278 $ 11.70 8.25 The aggregate intrinsic value of non-employee awards vested and expected to vest at June 30, 2019 was $25,000 . The aggregate intrinsic value of awards exercisable as of June 30, 2019 was $0 . The company recognized expense associated with these awards of $4,000 and $50,000 for the three months ended June 30, 2019 and 2018 , respectively. The company recognized expense associated with these awards of $8,000 and $57,000 for the six months ended June 30, 2019 and 2018 , respectively. Restricted stock unit ("RSU") awards for the six months ended June 30, 2019 were as follows: Units Unvested balance - January 1, 2019 0 Granted 125,000 Unvested balance - June 30, 2019 125,000 Restricted stock unit awards are measured based on the fair market value of the underlying stock on the date of grant and recognized as expense on a straight-line basis over the employee’s requisite service period (generally the vesting period). As of June 30, 2019 there was $1.3 million of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over the weighted-average remaining vesting period of 3.5 years . |
Note 9. Stock Compensation Pl_3
Note 9. Stock Compensation Plan Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table summarizes the reporting of total stock-based compensation expense resulting from employee and non-employee stock options: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Research and development $ 300 $ 161 $ 495 $ 282 Selling, general and administrative 1,401 200 2,353 323 Total stock-based compensation expense $ 1,701 $ 361 $ 2,848 $ 605 |
Note 10. Fair Value Measureme_2
Note 10. Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The Company has determined that the warrant liabilities' fair values are Level 3 items within the fair value hierarchy. The following table presents the changes in the warrant liabilities: (in thousands) Balance at December 31, 2018 $ 860 Exercise of warrants (13) Change in fair value of warrants (444) Balance at June 30, 2019 $ 403 There were no transfers between any of the levels of the fair value hierarchy during the six months ended June 30, 2019 . |
Note 10. Fair Value Measureme_3
Note 10. Fair Value Measurement Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of June 30, 2019 and December 31, 2018 : (in thousands) Total as of June 30, 2019 Level 1 Level 2 Level 3 Current Assets Cash and cash equivalents: Money market funds $ 66,669 $ 66,669 $ — $ — Short-term investments: U.S. government securities $ 41,321 $ 41,321 $ — $ — Corporate securities 4,988 — 4,988 — Agency securities 10,334 — 10,334 — Commercial paper 1,198 1,198 — — Total short-term investments $ 57,841 $ 42,519 $ 15,322 $ — Other Current Liabilities Warrant liabilities $ 403 $ — $ — $ 403 (in thousands) Total as of December 31, 2018 Level 1 Level 2 Level 3 Current Assets Cash and cash equivalents: Money market funds $ 45,716 $ 45,716 $ — $ — Short-term investments: U.S. government securities $ 38,737 $ 38,737 $ — $ — Corporate securities 15,066 — 15,066 — Agency securities 11,931 — 11,931 — Commercial paper 1,183 1,183 — — Total short-term investments $ 66,917 $ 39,920 $ 26,997 $ — Other Current Liabilities Warrant liabilities $ 860 $ — $ — $ 860 |
Note 11. Short-Term Investmen_2
Note 11. Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The following table represents the Company’s available-for-sale short-term investments by major security type as of June 30, 2019 : (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Fair Value Short-term investments: Agency securities $ 10,330 $ 4 $ — $ 10,334 Commercial paper 1,198 — — 1,198 Corporate securities 4,981 7 — 4,988 U.S. government securities 41,263 59 (1 ) 41,321 Total short-term investments $ 57,772 $ 70 $ (1 ) $ 57,841 |
Note 12. Net Loss Per Common _2
Note 12. Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following potentially dilutive securities were excluded from the computation of diluted weighted average common shares outstanding due to their anti-dilutive effect: As of June 30, 2019 2018 Vested and unvested stock options 4,312,703 2,541,262 Restricted stock units 125,000 — Warrants 96,999 73,651 4,534,702 2,614,913 |
Note 1. Organization and Natu_2
Note 1. Organization and Nature of the Business Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Accumulated deficit | $ 180,327 | $ 145,942 | $ 120,665 | $ 85,478 | $ 72,491 | $ 60,585 |
Note 3. Reverse Stock Split a_2
Note 3. Reverse Stock Split and Initial Public Offering Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Feb. 19, 2019$ / sharesshares | Jun. 25, 2018$ / sharesshares | |
Reverse Stock Split and Initial Public Offering [Abstract] | |||||
Reverse Stock Split, Conversion Ratio | 1.78112 | ||||
Common Shares, Par Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common Stock, Shares, Issued | 26,934,673 | 20,808,366 | 5,996,775 | 6,555,000 | |
Shares Issued, Price Per Share | $ / shares | $ 10 | $ 15 | |||
Common shares issued, due to exercise of underwriter option | 116,775 | 855,000 | |||
Net Proceeds from Issuance Initial Public Offering | $ | $ 88.9 | ||||
Shares of common stock issued, after preferred stock conversion | 11,837,073 | ||||
Net proceeds from issuance of public offering | $ | $ 55.6 |
Note 4. Accrued Expenses Accrue
Note 4. Accrued Expenses Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued Expenses [Abstract] | ||
Accrued research and development costs | $ 8,863 | $ 2,221 |
Accrued employee costs | 3,449 | 4,326 |
Accrued marketing and selling costs | 2,395 | 0 |
Accrued other costs | 902 | 1,667 |
Accrued expenses | $ 15,609 | $ 8,214 |
Note 5. Long-Term Debt Debt, Fu
Note 5. Long-Term Debt Debt, Future Principal Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Debt Disclosure [Abstract] | |||
Future principal payments, 2019 | $ 0 | ||
Future principal payments, 2020 | 9,000 | ||
Future principal payments, 2021 | 12,000 | ||
Future principal payments, 2022 | 12,000 | ||
Future principal payments, 2023 | 2,000 | ||
Long-term Debt | $ 35,000 | $ 35,000 | $ 20,000 |
Note 5. Long-Term Debt Narrativ
Note 5. Long-Term Debt Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 45,000,000 | ||||||
Debt Instrument, Face Amount | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 | $ 20,000,000 | |||
Current portion of long-term debt | (3,000,000) | (3,000,000) | 0 | ||||
Long-term Debt, Gross | 32,000,000 | 32,000,000 | |||||
Proceeds from second tranche of the Loan and Security Agreement | $ 15,000,000 | ||||||
Additional expected proceeds from third tranche of the Loan and Security Agreement | $ 10,000,000 | $ 10,000,000 | |||||
Interest rate, thirty-day LIBOR plus stated percentage | 6.75% | 6.75% | |||||
Debt Instrument, Interest Rate, Stated Percentage | 9.18% | 9.18% | |||||
Period debt payments are interest only | 24 months | ||||||
Debt Instrument, Term | 59 months | ||||||
Prepayment allowed per debt agreement | $ 2,000,000 | $ 2,000,000 | |||||
Prepayment penalty percentage | 1.50% | ||||||
Final payment fee percentage | 6.50% | 6.50% | |||||
Debt, non-utilization fee percentage | 2.00% | 2.00% | |||||
In event of default, additional percentage plus current rate penalty | 5.00% | 5.00% | |||||
Debt Issuance Costs, Gross | $ 3,700,000 | $ 3,700,000 | |||||
Interest expense | 1,062,000 | $ 562,000 | 2,125,000 | $ 753,000 | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (2,597,000) | (2,597,000) | (3,110,000) | ||||
Long-term debt, net of unamortized deferred costs | 29,403,000 | 29,403,000 | 31,890,000 | ||||
Long-term debt, net of unamortized deferred costs | 35,000,000 | ||||||
Amortization of debt issuance costs | 262,000 | $ 116,000 | $ 513,000 | $ 156,000 | |||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal payments on debt to begin | 36 months | ||||||
Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal payments on debt to begin | 24 months | ||||||
Term A Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | 20,000,000 | $ 20,000,000 | 20,000,000 | ||||
Term B Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 |
Note 6. Convertible Preferred_2
Note 6. Convertible Preferred Stock Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018shares | Mar. 31, 2018USD ($)shares | Jun. 30, 2019shares | Dec. 31, 2018shares | |
Equity [Abstract] | ||||
Preferred Stock, Shares Issued | 707,680 | 0 | 0 | |
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants | $ | $ 4.4 | |||
Shares of common stock issued, after preferred stock conversion | 11,837,073 | |||
Reverse Stock Split, Conversion Ratio | 1.78112 | |||
Preferred Stock, Dividend Rate, Percentage | 8.00% |
Note 7. Warrants Schedule of St
Note 7. Warrants Schedule of Stockholders' Equity Note, Warrants or Rights (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding | 96,999 |
2014 Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding | 2,987 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 5.912 |
Investment Warrants Expiration Date | Aug. 31, 2020 |
Term A Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding | 53,720 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 11.169 |
Investment Warrants Expiration Date | Feb. 28, 2025 |
Term B Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding | 40,292 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 11.169 |
Investment Warrants Expiration Date | Sep. 7, 2025 |
Note 7. Warrants Narrative (Det
Note 7. Warrants Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2014 | |
Class of Warrant or Right [Line Items] | |||||||
Class of warrants, exercised | 16,944 | ||||||
Warrants outstanding | 96,999 | 96,999 | 96,999 | ||||
Change in fair value of warrants | $ (108) | $ (306) | $ 444 | $ (388) | |||
2014 Warrants [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Preferred stock and warrants issued during the period, shares | 19,931 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5.912 | $ 5.912 | $ 5.912 | ||||
Warrants outstanding | 2,987 | 2,987 | 2,987 | ||||
Change in fair value of warrants | $ (4) | (133) | $ 68 | (178) | |||
Term A Warrants [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Preferred stock and warrants issued during the period, shares | 53,720 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.169 | $ 11.169 | $ 11.169 | ||||
Warrants outstanding | 53,720 | 53,720 | 53,720 | ||||
Warrant coverage, equal to percent of principal borrowing amounts | 3.00% | 3.00% | 3.00% | ||||
Change in fair value of warrants | $ (59) | $ (173) | $ 215 | $ (210) | |||
Term B Warrants [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Preferred stock and warrants issued during the period, shares | 40,292 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.169 | $ 11.169 | $ 11.169 | ||||
Warrants outstanding | 40,292 | 40,292 | 40,292 | ||||
Change in fair value of warrants | $ (45) | $ 161 |
Note 8. Commitments and Conti_2
Note 8. Commitments and Contingencies Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Remaining future minimum lease payments, 2019 | $ 0 | $ 0 | ||
Remaining future minimum lease payments, 2020 | 746,000 | 746,000 | ||
Remaining future minimum lease payments, 2021 | 1,095,000 | 1,095,000 | ||
Remaining future minimum lease payments, 2022 | 1,125,000 | 1,125,000 | ||
Remaining future minimum lease payments, 2023 | 1,156,000 | 1,156,000 | ||
Remaining future minimum lease payments, 2024 and thereafter | 9,747,000 | 9,747,000 | ||
Rent Expense, operating leases | 556,000 | $ 229,000 | 1,043,000 | $ 420,000 |
Unused letters of credit | $ 1,083,000 | $ 1,083,000 |
Note 9. Stock Compensation Pl_4
Note 9. Stock Compensation Plan Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used (Details) - shares | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 6 years | 6 years | |
Risk-free interest rate | 1.76% | 2.77% | |
Expected volatility | 58.50% | 63.22% | |
Expected dividends | 0.00% | 0.00% | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 125,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 125,000 | 0 |
Note 9. Stock Compensation Pl_5
Note 9. Stock Compensation Plan Employee Stock Award Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized expense from restricted stock units | $ 1,300,000 | ||||
Non--employee stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 4,000 | $ 50,000 | $ 8,000 | $ 57,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 15,190 | 15,190 | 3,392 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 11.70 | $ 11.70 | $ 1.55 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 92 days | 2 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 12,500 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 13.88 | ||||
Shares, Exercise and vesting of stock-based awards | (702) | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 1.55 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 0 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 14,278 | 14,278 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 11.70 | $ 11.70 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 8 years 92 days | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,297,513 | 4,297,513 | 3,127,308 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 9.45 | $ 9.45 | $ 8.06 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 220 days | 8 years 252 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,391,380 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 12.49 | ||||
Shares, Exercise and vesting of stock-based awards | (102,330) | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 1.78 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (118,845) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 11.99 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,260,381 | 2,260,381 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 4.63 | $ 4.63 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 7 years 146 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 4,039,662 | 4,039,662 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 9.49 | $ 9.49 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 8 years 220 days | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 125,000 | 125,000 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 125,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 190 days |
Note 9. Stock Compensation Pl_6
Note 9. Stock Compensation Plan Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 1,701 | $ 361 | $ 2,848 | $ 605 |
Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | 300 | 161 | 495 | 282 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 1,401 | $ 200 | $ 2,353 | $ 323 |
Note 9. Stock Compensation Pl_7
Note 9. Stock Compensation Plan Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 16,400,000 | |||
Least amount of annual increase of shares available for issuance | 386,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 332 days | |||
Unrecognized expense from restricted stock units | $ 1,300,000 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 190 days | |||
Equity Inducement Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 452,000 | |||
Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 193,000 | |||
Percentage shares available for issuance automatically increase annually | 1.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 208,932 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 378,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 128,000 | |||
2011 Stock Option Issuance Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,714,982 | |||
2018 Stock Option and Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,822,000 | |||
Percentage shares available for issuance automatically increase annually | 4.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 835,728 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 833,000 |
Note 10. Fair Value Measureme_4
Note 10. Fair Value Measurement Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Money market funds | $ 66,669 | $ 66,669 | $ 45,716 | |||
Cash and cash equivalents | 66,669 | $ 134,528 | 66,669 | $ 134,528 | 45,716 | $ 42,045 |
Short-term Investments | 57,841 | 57,841 | 66,917 | |||
Warrants liabilities | 403 | 403 | 860 | |||
Exercise of warrants | (13) | |||||
Change in fair value of warrants | 108 | 306 | (444) | 388 | ||
Term A Warrants [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Change in fair value of warrants | 59 | $ 173 | (215) | $ 210 | ||
Term B Warrants [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Change in fair value of warrants | 45 | (161) | ||||
Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Money market funds | 66,669 | 66,669 | 45,716 | |||
Short-term Investments | 42,519 | 42,519 | 39,920 | |||
Warrants liabilities | 0 | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Money market funds | 0 | 0 | 0 | |||
Short-term Investments | 15,322 | 15,322 | 26,997 | |||
Warrants liabilities | 0 | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Money market funds | 0 | 0 | 0 | |||
Short-term Investments | 0 | 0 | 0 | |||
Warrants liabilities | 403 | 403 | 860 | |||
U.S. government securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 41,321 | 41,321 | 38,737 | |||
U.S. government securities | Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 41,321 | 41,321 | 38,737 | |||
U.S. government securities | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 0 | 0 | 0 | |||
U.S. government securities | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 0 | 0 | 0 | |||
Corporate Debt Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 4,988 | 4,988 | 15,066 | |||
Corporate Debt Securities | Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 0 | 0 | 0 | |||
Corporate Debt Securities | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 4,988 | 4,988 | 15,066 | |||
Corporate Debt Securities | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 0 | 0 | 0 | |||
Agency Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 10,334 | 10,334 | 11,931 | |||
Agency Securities | Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 0 | 0 | 0 | |||
Agency Securities | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 10,334 | 10,334 | 11,931 | |||
Agency Securities | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 0 | 0 | 0 | |||
Commercial Paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 1,198 | 1,198 | 1,183 | |||
Commercial Paper | Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 1,198 | 1,198 | 1,183 | |||
Commercial Paper | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | 0 | 0 | 0 | |||
Commercial Paper | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Short-term Investments | $ 0 | $ 0 | $ 0 |
Note 11. Short-Term Investmen_3
Note 11. Short-Term Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available For Sale Securities Maturities Period | 144 days | ||
Available-for-sale securities, Amortized Cost | $ 57,772 | $ 57,772 | |
Available-for-sale Securities, Gross Unrealized Gains | 70 | ||
Available-for-sale Securities, Gross Unrealized Losses | (1) | ||
Short-term Investments | 57,841 | 57,841 | $ 66,917 |
Agency Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, Amortized Cost | 10,330 | 10,330 | |
Available-for-sale Securities, Gross Unrealized Gains | 4 | ||
Available-for-sale Securities, Gross Unrealized Losses | 0 | ||
Short-term Investments | 10,334 | 10,334 | 11,931 |
Commercial Paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, Amortized Cost | 1,198 | 1,198 | |
Available-for-sale Securities, Gross Unrealized Gains | 0 | ||
Available-for-sale Securities, Gross Unrealized Losses | 0 | ||
Short-term Investments | 1,198 | 1,198 | 1,183 |
Corporate Debt Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, Amortized Cost | 4,981 | 4,981 | |
Available-for-sale Securities, Gross Unrealized Gains | 7 | ||
Available-for-sale Securities, Gross Unrealized Losses | 0 | ||
Short-term Investments | 4,988 | 4,988 | 15,066 |
U.S. government securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, Amortized Cost | 41,263 | 41,263 | |
Available-for-sale Securities, Gross Unrealized Gains | 59 | ||
Available-for-sale Securities, Gross Unrealized Losses | (1) | ||
Short-term Investments | $ 41,321 | $ 41,321 | $ 38,737 |
Note 12. Net Loss Per Common _3
Note 12. Net Loss Per Common Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,534,702 | 2,614,913 |
Vested and unvested stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,312,703 | 2,541,262 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 125,000 | 0 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 96,999 | 73,651 |
Uncategorized Items - xers-2019
Label | Element | Value |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | us-gaap_SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue | $ 6.34 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue | $ 1,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue | $ 16,300,000 |
Non--employee stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 | 2 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue | $ 0 |