Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 08, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | HSGX | |
Entity Registrant Name | Histogenics Corporation | |
Entity Central Index Key | 1,372,299 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 22,490,587 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 10,562 | $ 31,908 |
Marketable securities | 7,978 | |
Prepaid expenses and other current assets | 304 | 173 |
Total current assets | 18,844 | 32,081 |
Property and equipment, net | 3,146 | 3,860 |
Restricted cash | 137 | 137 |
Total assets | 22,127 | 36,078 |
Current liabilities: | ||
Accounts payable | 1,618 | 1,588 |
Accounts payable due to Intrexon Corporation | 360 | |
Accrued expenses | 1,394 | 2,097 |
Current portion of deferred rent | 86 | 136 |
Current portion of deferred lease incentive | 259 | 407 |
Current portion of equipment loan | 470 | 583 |
Total current liabilities | 3,827 | 5,171 |
Accrued expenses due to Intrexon Corporation | 3,040 | 3,040 |
Deferred rent, long-term | 298 | 315 |
Deferred lease incentive, long-term | 555 | 610 |
Equipment loan, long-term | 178 | |
Warrant liability | 13,601 | 13,197 |
Total liabilities | 21,321 | 22,511 |
Commitments and contingencies (Note 5) | ||
Convertible preferred stock and stockholders' equity: | ||
Convertible preferred stock, $0.01 par value; 30,000 shares authorized, 9,747.8979 and 13,416.4734 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | ||
Common stock, $0.01 par value; 100,000,000 shares authorized, 22,278,090 and 20,647,612 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 159 | 159 |
Additional paid-in capital | 196,045 | 195,181 |
Accumulated other comprehensive loss | (2) | |
Accumulated deficit | (195,396) | (181,773) |
Total stockholders' equity | 806 | 13,567 |
Total liabilities and stockholders' equity | $ 22,127 | $ 36,078 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 22,278,090 | 20,647,612 |
Common stock, shares outstanding | 22,278,090 | 20,647,612 |
Series A Convertible Preferred Stock [Member] | ||
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Convertible preferred stock, shares authorized | 30,000 | 30,000 |
Convertible preferred stock, shares issued | 9,747.8979 | 13,416.4734 |
Convertible preferred stock, shares outstanding | 9,747.8979 | 13,416.4734 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses: | ||||
Research and development | 4,208 | 5,794 | 8,712 | 11,380 |
General and administrative | 2,166 | 2,161 | 4,492 | 4,373 |
Total operating expenses | 6,374 | 7,955 | 13,204 | 15,753 |
Loss from operations | (6,374) | (7,955) | (13,204) | (15,753) |
Other income (expense): | ||||
Interest income (expense), net | 40 | (17) | 75 | (36) |
Other expense, net | (73) | (66) | (90) | (167) |
Change in fair value of warrant liability | (135) | (404) | ||
Total other (expense), net | (168) | (83) | (419) | (203) |
Net loss | (6,542) | (8,038) | (13,623) | (15,956) |
Other comprehensive loss: | ||||
Unrealized gain (loss) from available for sale securities | 4 | (2) | ||
Comprehensive loss | (6,538) | (8,038) | (13,625) | (15,956) |
Net loss attributable to common stockholders-basic and diluted | $ (5,454) | $ (8,038) | $ (11,285) | $ (15,956) |
Net loss per common share-basic and diluted | $ (0.25) | $ (0.61) | $ (0.51) | $ (1.20) |
Weighted-average shares used to compute loss per common share-basic and diluted | 22,183,804 | 13,270,433 | 22,050,572 | 13,270,531 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (13,623) | $ (15,956) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 789 | 862 |
Amortization of discount of investments | 26 | |
Deferred rent and lease incentive | (270) | (265) |
Stock-based compensation | 864 | 647 |
Change in fair value of warrant | 404 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (131) | (29) |
Accrued expenses due to Intrexon Corporation | 742 | |
Accounts payable | 30 | (255) |
Accounts payable due to Intrexon Corporation | (360) | 40 |
Accrued expenses | (703) | (170) |
Net cash used in operating activities | (12,974) | (14,384) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (75) | (314) |
Purchases of marketable securities | (8,006) | |
Net cash used in investing activities | (8,081) | (314) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments on equipment term loan | (291) | (291) |
Net cash used in financing activities | (291) | (291) |
Net decrease in cash and cash equivalents | (21,346) | (14,989) |
Cash and cash equivalents-Beginning of period | 31,908 | |
Cash and cash equivalents-End of period | $ 10,562 | $ 15,926 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. NATURE OF BUSINESS Organization Histogenics Corporation (the “Company”) was incorporated under the laws of the Commonwealth of Massachusetts on June 28, 2000 and has its principal operations in Waltham, Massachusetts. In 2006, the Company’s board of directors approved a corporate reorganization pursuant to which the Company incorporated as a Delaware corporation. The Company is a regenerative medicine company engaged in developing and commercializing products in the musculoskeletal segment of the marketplace. The Company combines cell therapy and tissue engineering technologies to develop products for tissue repair and regeneration and is initially focused on patients suffering from cartilage-derived pain and immobility. The Company’s most advanced product, NeoCart, is currently in a Phase 3 clinical trial in the United States (the “U.S.”) under a special protocol assessment with the U.S. Food and Drug Administration (“FDA”) for the treatment of knee cartilage damage. In June 2017, the Company announced that it had completed enrollment in the NeoCart Phase 3 clinical trial. The Company expects to report top-line On May 13, 2011, the Company completed the acquisition of ProChon Biotech Ltd. (“ProChon”), a privately-held biotechnology company focused on modulating the fibroblast growth factor system for consideration of $2.2 million to enable it to create more effective solutions for tissue regeneration. ProChon’s products combine cell regeneration technologies with proprietary growth factors and biocompatible scaffolds to restore injured or chronically damaged tissues. The acquisition of ProChon provided the Company with access to a significant portfolio of intellectual property, including proprietary cell growth factors, in addition to furthering opportunities for the use of biomaterials to create more effective solutions for regenerating human tissue. The acquisition led to the initial recognition of goodwill, which was subsequently written off in 2011, and intangible assets including IPR&D and a licensing agreement which have been fully-impaired. On December 18, 2014, the Company formed a wholly owned subsidiary, Histogenics Securities Corporation, under the laws of the Commonwealth of Massachusetts. On September 29, 2016, the Company closed a private placement of common stock, preferred stock and warrants, contemplated by a securities purchase agreement dated September 15, 2016, with certain institutional and accredited investors. The net proceeds after deducting placement agent fees and other transaction-related expenses was $27.6 million. See Note 6, Capital Stock, for further discussion of the private placement. Since its inception, the Company has devoted substantially all of its efforts to product development, recruiting management and technical staff, raising capital, starting up production and building infrastructure and has not yet generated revenues from its planned principal operations. Expenses have primarily been for research and development and related administrative costs. The Company is subject to a number of risks. The developmental nature of its activities is such that significant inherent risks exist in the Company’s operations. Principal among these risks are the successful development of therapeutics, successfully enrolling patients in its clinical trials in a timely manner, ability to obtain adequate financing, obtaining regulatory approval for any of its product candidates in any jurisdiction, obtaining adequate reimbursement rates for any of its approved product candidates, compliance with government regulations, protection of proprietary therapeutics, fluctuations in operating results, dependence on key personnel and collaborative partners, adoption of the Company’s products by the physician community, rapid technological changes inherent in the markets targeted, and substitute products and competition from larger companies. Liquidity The consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company had an accumulated deficit at June 30, 2017 of $195.4 million and has incurred losses and cash flow deficits from operations for the six months ended June 30, 2017 and 2016. The Company has financed operations to date primarily through private placements of equity securities, including the sales of common stock and preferred stock, and the related issuance of warrants in September 2016, the issuance of common stock in the initial public offering completed in December 2014, and borrowings under debt agreements. The Company anticipates that it will continue to incur net losses for the next several years and will require additional capital to complete the filing of a BLA with the FDA and commercialize NeoCart, if approved, and for the future development of its existing product candidates. However, the Company expects that total operating expenses will be lower over the next four quarters than the previous four quarters. As of June 30, 2017, the Company had approximately $18.5 million of cash and cash equivalents and marketable securities. Given the Company’s current development plans, it anticipates that its existing cash and cash equivalents and marketable securities will be not be sufficient to fund its operations beyond the middle of 2018. Accordingly, these factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. To meet its capital needs, the Company intends to raise additional capital through debt or equity financing or other strategic transactions. However, there can be no assurance that the Company will be able to complete any such transaction on acceptable terms or otherwise. The failure of the Company to obtain sufficient funds on commercially acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations and financial condition. The forecast of cash resources is forward-looking information that involves risks and uncertainties, and the actual amount of our expenses could vary materially and adversely as a result of a number of factors. The Company has based its estimates on assumptions that may prove to be wrong, and the Company’s expenses could prove to be significantly higher than it currently anticipates. Basis of Accounting The consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). However, they do not include all of the information and footnotes required by GAAP for complete financial statements. These interim consolidated financial statements, in the opinion of the Company’s management, reflect all normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods ended June 30, 2017 and 2016. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2016, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K, The consolidated financial statements include the accounts of Histogenics Corporation and its wholly-owned subsidiaries, ProChon and Histogenics Securities Corporation. All significant intercompany accounts and transactions are eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES During the six months ended June 30, 2017, there have been no material changes to the significant accounting policies described in the Company’s audited financial statements as of and for the year ended December 31, 2016, and the notes thereto, which are included in the Annual Report on Form 10-K, Fair Value Measurements The carrying amounts reported in the Company’s consolidated financial statements for cash and cash equivalents, marketable securities, accounts payable, equipment loan, and accrued liabilities approximate their respective fair values because of the short-term nature of these accounts. Fair value is defined as the price that would be received if selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as assets held for sale and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1), and the lowest priority to unobservable inputs (Level 3). The Company’s financial assets are classified within the fair value hierarchy based on the lowest level of inputs that is significant to the fair value measurement. The three levels of the fair value hierarchy, and its applicability to the Company’s financial assets, are described below. Level 1 Level 2 Level 3 non-transferability, An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The Company had no material re-measurements The fair value of the warrants is considered a Level 3 valuation and was determined using a Monte Carlo simulation model. This model incorporated several assumptions at each valuation date including: the price of the Company’s common stock on the date of valuation, the historical volatility of the price of the Company’s common stock, the remaining contractual term of the warrant and estimates of the probability of a fundamental transaction occurring (See Note 6 for further discussion of the private placement). The Company’s financial instruments as of June 30, 2017 consisted primarily of cash and cash equivalents, marketable securities and accounts payable. The Company’s financial instruments as of December 31, 2016 consisted primarily of cash and cash equivalents and accounts payable. As of June 30, 2017, and December 31, 2016, the Company’s financial assets recognized at fair value consisted of the following: Description Total Quoted prices in active markets (Level 1) Significant other observable (Level 2) Significant unobservable inputs (Level 3) (in thousands) June 30, 2017 Assets: Cash Equivalents Money market funds $ 4,422 $ 4,422 $ — $ — Marketable securities: Asset-backed securities 1,809 — 1,809 — Commercial paper 3,595 — 3,595 — Corporate notes 2,574 — 2,574 — Total $ 12,400 $ 4,422 $ 7,978 $ — Liabilities: Warrant liability $ 13,601 $ — $ — $ 13,601 December 31, 2016 Assets: Money market funds $ 30,318 $ 30,318 $ — $ — Liabilities: Warrant liability $ 13,198 $ — $ — $ 13,198 The following table provides a reconciliation of all liabilities measured at fair value using Level 3 significant unobservable inputs: As of June 30, 2017 (in thousands) Beginning balance, December 31, 2016 $ 13,198 Issuance of warrants — Change in fair value of warrant liability 403 Ending balance $ 13,601 Cash and Cash Equivalents The Company considers all highly liquid securities with original maturities of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents are comprised of funds in money market accounts. Marketable Securities The Company classifies marketable securities with a remaining maturity when purchased of greater than three months as available for sale. The Company considers all available for sale securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and therefore classifies all securities with maturity dates beyond 90 days at the date of purchase as current assets within the consolidated balance sheets. Available for sale securities are maintained by the Company’s investment managers and may consist of commercial paper, high-grade corporate notes, U.S. Treasury securities, U.S. government agency securities, and certificates of deposit. Available for sale securities are carried at fair value with the unrealized gains and losses included in other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase is amortized and/or accreted to interest income and/or expense over the life of the instrument. Realized gains and losses are determined using the specific identification method and are included in other income (expense). If any adjustment to fair value reflects a decline in value of the investment, the Company considers all available evidence to evaluate the extent to which the decline is “other-than-temporary” and, if so, marks the investment to market through a charge to the Company’s consolidated statement of operations and comprehensive loss. The following table summarizes the available for sale securities held at June 30, 2017: Description Amortized Cost Unrealized Unrealized Fair Value (in thousands) Asset-backed securities $ 1,810 $ — $ (1 ) $ 1,809 Commercial paper 3,595 — — 3,595 Corporate notes 2,575 — (1 ) 2,574 Total $ 7,980 $ — $ (2 ) $ 7,978 The Company did not hold any available for sale securities prior to the first quarter of 2017. The amortized cost of available for sale securities is adjusted for amortization of premiums and accretion of discounts to maturity. At June 30, 2017, the balance in the Company’s accumulated other comprehensive loss was composed solely of activity related to the Company’s available for sale marketable securities. There were no sales of available for sale securities during the quarter ended June 30, 2017. The aggregate fair value of available for sale securities held by the Company in an unrealized loss position for less than twelve months as of June 30, 2017 was $4.4 million. The aggregate unrealized loss for those securities in an unrealized loss position for less than twelve months as of June 30, 2017 was $2 thousand. The Company determined that there was no material change in the credit risk of any of its investments. As a result, the Company determined it did not hold any investments with any other-than-temporary impairment as of June 30, 2017. The weighted average maturity of the Company’s portfolio was approximately two months at June 30, 2017. Stock-Based Compensation The Company accounts for stock options and restricted stock based on their grant date fair value and recognizes compensation expense on a straight-line basis over their vesting period. The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model, with the exception of stock options that include a market condition, and of restricted stock based on the fair value of the underlying common stock as of the date of grant or the value of the services provided, whichever is more readily determinable. The Company, in conjunction with adoption of ASU 2016-09- Stock Compensation: Improvements to Employee Share-Based Payment Accounting pre-vesting For stock option grants with vesting triggered by the achievement of performance-based milestones, the expense is recorded over the remaining service period after the point when the achievement of the milestone is probable or the performance condition has been achieved. For stock option grants with both performance-based milestones and market conditions, expense is recorded over the derived service period after the point when the achievement of the performance-based milestone is probable or the performance condition has been achieved. For stock option grants with market conditions, the expense is calculated using the Monte Carlo model based on the grant date fair value of the option and is recorded on a straight line basis over the requisite service period, which represents the derived service period and accelerated when the market condition is satisfied. The Company did not issue awards with market conditions during the six months ended June 30, 2017. The Company accounts for stock options and restricted stock awards to non-employees non-employees Warrant Accounting As noted in Note 6, Capital Stock, the Company classifies a warrant to purchase shares of its common stock as a liability on its consolidated balance sheet if the warrant is a free-standing financial instrument that may require the Company to transfer consideration upon exercise. Each warrant of this type is initially recorded at fair value on date of grant using the Monte Carlo simulation model and net of issuance costs, and is subsequently re-measured Recent Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, In March 2016, the FASB issued ASU No. 2016-09, In February 2016, the FASB issued ASU No. 2016-02- Leases 2016-02 2016-02 In August 2014, the FASB issued ASU No. 2014-15, 205-40): In May 2014, the FASB issued ASU No. 2014-09, 2014-09 one-year In May 2017, the FASB issued ASU No. 2017-09, |
Loss Per Common Share
Loss Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | 3. LOSS PER COMMON SHARE The Company computes basic and diluted loss per share using a methodology that gives effect to the impact of outstanding participating securities (the “two-class Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands, except share and per share data) Numerator: Net loss $ (6,542 ) $ (8,038 ) $ (13,623 ) $ (15,956 ) Net Loss attributable to Series A Preferred Stock (a) (1,088 ) — (2,338 ) — Earnings (loss) attributable to common stockholders—basic and diluted $ (5,454 ) $ (8,038 ) $ (11,285 ) $ (15,956 ) Denominator: Weighted-average number of common shares used in earnings (loss) per share - basic and diluted 22,183,804 13,270,433 22,050,572 13,270,531 Earnings (loss) per share - basic and diluted $ (0.25 ) $ (0.61 ) $ (0.51 ) $ (1.20 ) (a) The Series A Preferred Stock participates in income and losses. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding, as they would be anti-dilutive (in common stock equivalent shares): For the three and six months ended 2017 2016 Unvested restricted stock and options to purchase common stock 2,365,776 1,347,630 Series A preferred stock unconverted 4,332,395 — Warrants exercisable into common stock 13,633,070 166,403 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4 . PROPERTY AND EQUIPMENT Property and equipment consisted of the following: June 30, December 31, (in thousands) Office equipment $ 279 $ 266 Laboratory equipment 4,470 4,443 Leasehold improvements 7,711 7,683 Construction in progress 765 759 Software 96 96 Total property and equipment 13,321 13,247 Less: accumulated depreciation (10,175 ) (9,387 ) Property and equipment, net $ 3,146 $ 3,860 Depreciation expense related to property and equipment amounted to $394 and $432 for the three months ended June 30, 2017 and 2016, respectively, and $789 and $862 for the six months ended June 30, 2017 and 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases its office and research facilities in Waltham and Lexington, Massachusetts under non-cancellable pro-rata Rent expense under operating lease agreements amounted to approximately $248 and $236 for the three months ended June 30, 2017 and 2016, respectively, and $495 and $494 for the six months ended June 30, 2017 and 2016, respectively. As an inducement to enter into its Waltham and Lexington facility leases, the lessors agreed to provide the Company with construction allowances of up to $3,184 and $996, respectively, towards the total cost of tenant improvements. The Company has recorded these costs in the consolidated balance sheets as leasehold improvements, with the corresponding liability as deferred lease incentive. The liability is amortized on a straight-line basis over the term of the leases as a reduction of rent expense. The Waltham lease renewal effective January 1, 2018 provides for a tenant improvement allowance not to exceed $0.9 million, of which $0.5 million can be applied to future rental payments. License Agreements From time to time, the Company enters into various licensing agreements whereby the Company may use certain technologies in conjunction with its product research and development. Licensing agreements and the Company’s commitments under the agreements are as follows: Hydrogel License In May 2005, the Company entered into an exclusive license agreement with Angiotech Pharmaceuticals (US), Inc. for the use of certain patents, patent application, and knowledge related to the manufacture and use of a hydrogel material in conjunction with NeoCart and certain other products (“Hydrogel License Agreement”). As of June 30, 2017, the Company has paid an aggregate $3.2 million in commercialization milestones under the terms of the Hydrogel License Agreement, which have been expensed to research and development. Under the terms of the Hydrogel License Agreement, the Company’s future commitments include: • A one-time • Single digit royalties on the net sales of NeoCart and certain other future products. Tissue Regeneration License In April 2001, the Company entered into an exclusive license agreement with The Board of Trustees of the Leland Stanford Junior University (“Stanford University”) for the use of certain technology to develop, manufacture and sell licensed products in the field of growth and regeneration of cartilage (“Tissue Regeneration License Agreement”). The term of the Tissue Regeneration License Agreement extends to the expiration date of Stanford University’s last to expire domestic or foreign patents. As of June 30, 2017, the Company has paid an aggregate $0.7 million in patent reimbursement costs, royalty fees, and commercialization milestone payments under the terms of the Tissue Regeneration License Agreement, which have been recorded to research and development expense. Under the terms of the Tissue Regeneration License Agreement, the Company’s future commitments include: • A one-time • An annual minimum non-refundable • Low single digit royalties on net sales. Honeycomb License In March 2013, the Company entered into a license agreement with Koken Co., Ltd. (“Koken”) and paid a fee for a non-exclusive, non-transferable know-how Tissue Processor Sub-License In December 2005, the Company entered into an exclusive agreement to sub-license (“Sub-License Sub-License sub-license Sub-License The Sub-License In May 2016, the Original Agreement was amended whereby the Company acquired the development and commercialization rights to NeoCart for the Japanese market from Purpose. Under the terms of the amended agreement, the Company assumes sole responsibility for and rights to the development and commercialization of NeoCart in Japan. In exchange for the transfer of development and commercialization rights, the Company will pay a success-based milestone to Purpose upon conditional approval of NeoCart in Japan, as well as commercial milestones and a low single digit royalty on Japanese sales of NeoCart, upon full approval, if any, in Japan. In addition to the above, the Company’s future commitments under the terms of the Original Agreement and Sub-License • A minimum non-refundable • An additional, non-refundable • $10.2 million in potential milestone payments; and • Low single digit royalties on net sales of a licensed product. The OCS Agreement In connection with its research and development, the Company received grants from the Office of Chief Scientist of the Ministry of Industry and Trade in Israel (“OCS”) in the aggregate of $1.1 million for funding the fibroblast growth factor (“FGF”) program. In consideration for this grant, the Company is committed to pay royalties at a rate of 3% to 5% of the sales of sponsored products developed using the grant money, up to the amount of the participation payments received. The Company committed to pay up to 100% of grants received plus interest according to the LIBOR interest rate if the sponsored product is produced in Israel. If the manufacturing of the sponsored product takes place outside of Israel, the royalties can increase up to, but no more than, 300% of grants received plus interest based on the LIBOR interest rate, depending on the percentage of the manufacturing of sponsored product that takes place outside of Israel. Engineering Agreement The Company entered into an agreement with a development corporation to purchase a multi-unit bioreactor system. Pursuant to the agreement, as of June 30, 2017, the Company made total payments in an aggregate amount of $0.6 million, of which $0.2 million was made in 2016 after acceptance of the final product. There are no additional payments due under this agreement. Collagen Supply Agreement In September 2015, the Company entered into an agreement with Collagen Solutions (UK) Limited (the “Supplier”) to purchase soluble collagen that meets specifications provided by the Company. The initial term of the agreement is three years and will automatically renew from year to year thereafter unless otherwise terminated with at least 180 days’ notice by either party. In February 2017, the Company entered into an amendment with the Supplier. Pursuant to the amendment, the Company agreed to pay the Supplier approximately $0.1 million in exchange for eliminating the minimum annual order of material and/or services and any other amounts due Supplier. The payment of $0.1 million will be made over the 18 months following the date of the amendment. As of June 30, 2017, the Company has paid $30 thousand under the terms of the amendment. The remaining amount of $70 thousand is expected to be paid over the next 15 months. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Capital Stock | 6. CAPITAL STOCK On September 29, 2016, the Company closed the private placement contemplated by the securities purchase agreement (the “Purchase Agreement”), dated September 15, 2016, between the Company and certain institutional and accredited investors in which the Company received gross proceeds of $30.0 million (the “Private Placement”). The net proceeds after deducting placement agent fees and other transaction-related expenses was $27.6 million. At the closing, the Company issued 2,596,059 shares of the Company’s common stock at a per share price of $2.25 and 24,158.8693 shares of the Company’s newly-created Series A Convertible Preferred Stock (“Series A Preferred Stock”), which are convertible into approximately 10,737,275 shares of common stock. As of June 30, 2017, there were 9,747.8979 shares of Series A Preferred Stock outstanding, which remain convertible into 4,332,395 shares of the Company’s common stock. As part of the Private Placement, the investors received warrants to purchase up to 13,333,334 shares of the Company’s common stock at an exercise price of $2.25 per share. The placement agent for the Private Placement, H.C. Wainwright & Co. LLC (“HCW”), and certain of its affiliates were also granted warrants to purchase 133,333 shares of the Company’s common stock with an exercise price of $2.25 per share in exchange for the services provided by HCW. The placement agent warrants were considered a financing cost of the Company and included in warrant expense within the consolidated statements of operations. The warrants include a cashless-exercise feature that may be exercised solely in the event there is no effective registration statement, or no current prospectus available for, the resale of the shares of common stock underlying the warrants as of the six-month as-if-exercised Concurrent with the closing of the Private Placement, the Company’s Certificate of Incorporation was amended by the filing of a Certificate of Designation to create the Series A Preferred Stock. The Company issued 24,158.8693 shares of the newly created Series A Preferred Stock which are convertible into approximately 10,737,275 shares of common stock. The Series A Preferred Stock has a par value of $0.01 and each share is convertible into 444.44 shares of common stock, at a conversion price of $2.25 per share, at the option of the holder. The Series A Preferred Stock has no voting rights and is only entitled to dividends as declared on an as-converted as-converted As part of the Private Placement, affiliates of certain members of the Company’s Board of Directors purchased an aggregate of 283,046 shares of common stock, an aggregate of 2,563.1439 shares of Series A Preferred Stock and received warrants to purchase up to 1,422,221 shares of common stock at an exercise price of $2.25 per share in the Private Placement. These amounts are included in the amounts noted above. |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Warrants | 7. WARRANTS Investor Warrants In September 2016, in connection with the Private Placement, the Company issued common stock warrants to the investors to purchase up to 13,333,334 shares of our common stock at an exercise price of $2.25 per share. The warrants include a cashless-exercise feature that may be exercised solely in the event there is no effective registration statement registering, or no current prospectus available for, the resale of the shares of common stock underlying the warrants as of the six-month marked-to-market Placement Agent Warrants In September 2016, in connection with the Private Placement, the Company issued HCW and certain of its affiliates warrants for the purchase of 133,333 shares of common stock at an exercise price of $2.25 per share. The HCW warrants became exercisable following approval of the Private Placement by our stockholders in the fourth quarter of 2016 and expire five years after the date of such stockholder approval. The warrants were valued at $2.28 per share using a Monte Carlo simulation and are marked-to-market Affiliates of an Advisor Warrant In July, 2012, the Company issued a warrant to purchase its common stock to affiliates of an advisor. The warrant provides the holders with the right to purchase an aggregate of 161,977 shares of the Company’s common stock at a per share exercise price of $0.01. The warrants are exercisable, in whole or in part, immediately and may be exercised on a cashless basis. The warrants expire on the tenth anniversary of issuance. The fair value of the warrants as of July 20, 2012 was $117 thousand and was estimated using the Black-Scholes option pricing model with the following inputs: (a) risk-free interest rate of 0.22%; (b) implied volatility of the Company’s common stock of 99%; and (c) the expected term to a liquidity event of 1.7 years. The fair value was recorded as a reduction to Series A Preferred Stock and a credit to additional paid-in Consulting Agreement Warrant In March 2015, in connection with a consulting agreement entered into for an interim chief financial officer, the Company issued a common stock warrant as compensation to the consulting firm. The warrant provides the holder with the right to purchase an aggregate of 7,398 shares of the Company’s common stock at a per share exercise price of $9.75, the closing price of the Company’s common stock on the date of issuance. The warrant vested and became exercisable in monthly installments over 24 months beginning September 30, 2015 and expires on the tenth anniversary of issuance. The warrant is equity classified and accounted for using the fair value approach. The fair value of the warrant is estimated using the Black-Scholes option pricing model and is subject to re-measurement Equipment Line of Credit Warrant In July 2014, the Company granted Silicon Valley Bank a warrant to purchase 6,566 shares of common stock at a per share exercise price of $7.99 as discussed in Note 10. The warrant is exercisable, in whole or in part, immediately and may be exercised on a cashless basis and expires on the tenth anniversary of issuance. The fair value of the warrant as of July 9, 2014 was estimated at $51 thousand with the following inputs: (a) risk-free interest rate of 2.58%; (b) implied volatility of the Company’s common stock of 87%; (c) the expected term of 10 years. The fair value of the warrant was recorded as a debt issuance cost with a corresponding credit to additional paid-in |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 8. STOCK-BASED COMPENSATION Stock option activity under the Company’s 2012 Equity Incentive Plan (the “2012 Plan”) and 2013 Equity Incentive Plan (the “2013 Plan”) for the six months ended June 30, 2017 is summarized as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 1,577,016 $ 5.95 Granted 840,000 1.71 Exercised — — Cancelled (51,240 ) 5.25 Outstanding at June 30, 2017 2,365,776 $ 4.47 8.6 $ 166 Vested and expected to vest at June 30, 2017 2,134,341 $ 4.60 8.5 $ 151 Exercisable at June 30, 2017 830,728 $ 6.10 7.7 $ 73 As of June 30, 2017, the unrecognized compensation cost related to outstanding options was $2.3 million and is expected to be recognized as expense over approximately 1.98 years. As of June 30, 2017, the weighted average grant date fair value of vested options was $4.11 and the weighted average grant date fair value of options outstanding was $2.72. The weighted average grant date fair value per share of employee option grants was $0.96 and $1.07 for the three months ended June 30, 2017 and 2016, respectively, and $1.01and $1.42 for the six months ended June 30, 2017 and 2016, respectively. Restricted stock awards under the 2012 Plan and 2013 Plan for the six months ended June 30, 2017 are summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 1,889 $ 0.83 Vesting of restricted stock (1,889 ) 0.83 Unvested at June 30, 2017 — $ — Stock-Based Compensation Expense The Company granted stock options to employees during the three and six months ended June 30, 2017 and 2016. The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model and restricted stock based on the stock price, with the exception of those stock options that included a market condition. The Company estimates the fair value of stock options that include a market condition using a Monte-Carlo model. Stock options and restricted stock issued to non-board non-employees Stock-based compensation expense amounted to $0.4 million and $0.3 million for the three months ended June 30, 2017 and 2016, respectively, and $0.9 million and $0.6 million for the six months ended June 30, 2017 and 2016, respectively. The allocation of stock-based compensation for all options granted and restricted stock awards is as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Research and development $ 129 $ 123 $ 240 $ 238 General and administrative 242 213 624 409 Total stock-based compensation expense $ 371 $ 336 $ 864 $ 647 Stock-based compensation by award type is as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Stock options $ 371 $ 336 $ 864 $ 646 Restricted stock — — — 1 Total stock-based compensation expense $ 371 $ 336 $ 864 $ 647 The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Risk-free interest rate 1.88 % 1.35 % 2.03 % 1.40 % Expected volatility 60.2 % 65.8 % 63.2 % 59.6 % Expected term (in years) 6.08 6.08 6.08 6.08 Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the non-employee Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Risk-free interest rate 1.35 % 1.56 % 1.14 % 1.61 % Expected volatility 59.7 % 62.9 % 69.5 % 63.8 % Expected term (in years) 6.08 6.95 6.08 7.02 Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. INCOME TAXES Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities using statutory rates. A valuation allowance is recorded against deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized. Due to the uncertainty surrounding the realization of the favorable tax attributes in future tax returns, the Company has recorded a full valuation allowance against the Company’s otherwise recognizable net deferred tax assets. |
Equipment Loan Payable
Equipment Loan Payable | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Equipment Loan Payable | 10. EQUIPMENT LOAN PAYABLE As of June 30, 2017 and December 31, 2016, the Company had the following outstanding borrowing obligations: June 30, December 31, 2017 2016 (in thousands) Silicon Valley Bank Equipment Loan Payable $ 470 $ 761 Less: current portion (470 ) (583 ) Long-term debt, net $ — $ 178 In July 2014, the Company entered into a loan and security agreement with Silicon Valley Bank, which provides for a line of credit to finance certain equipment purchases up to an aggregate of $1.8 million through March 31, 2015. The line has been fully drawn and is payable in 36 monthly installments of principal and interest, with an annual interest rate of 2.75% plus the greater of 3.25% and the prime rate in effect at the time of each draw, as published in the Wall Street Journal. The outstanding balance on the line of credit is secured by a first priority lien over all equipment purchased using the line of credit. In accordance with the terms of the equipment line of credit, the Company issued a warrant to Silicon Valley Bank in July 2014 to purchase 6,566 shares of its common stock at an exercise price per share of $7.99 as discussed in Note 7. The equipment line of credit includes customary operating but non-financial The scheduled maturities of the Company’s debt are as follows: June 30, 2017 (in thousands) December 31, 2017 $ 292 May 31, 2018 178 Total $ 470 |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Parties | 11. RELATED PARTIES Intrexon Corporation In September 2014, the Company entered into an Exclusive Channel Collaboration Agreement (the “Collaboration Agreement”) with Intrexon Corporation (“Intrexon”) to use Intrexon’s proprietary technology for the development and commercialization of allogeneic cell therapeutics (the “Collaboration Products”) to treat or repair damaged articular hyaline cartilage in humans. The term of the Collaboration Agreement commenced upon the effective date, September 30, 2014, and continues until either written notice of termination is given by the Company within ninety days, or if either party creates a material breach that cannot be remedied within sixty days. Under the terms of the Collaboration Agreement, the Company is solely responsible for the costs to develop and commercialize any Collaboration Products with the following exceptions: (i) the establishment of certain manufacturing capabilities and facilities; (ii) the cost of basic research related to Intrexon’s proprietary technology outside of costs related to the Collaboration Products; (iii) payments related to certain in-licensed Under the terms of the Collaboration Agreement, the Company reimburses Intrexon for 50% of the product research and development costs with the remaining 50% due after acceptance by the FDA or equivalent regulatory authority of an Investigational New Drug Application or equivalent regulatory filing of a collaboration product or upon 90 day written notice of cancellation by the Company. There were no expenses incurred under the collaboration for the six months ended June 30, 2017. For the six months ended June 30, 2016, total incurred expenses were $1.5 million. The total accrued expenses due to Intrexon at June 30, 2017 and December 31, 2016 were $3.0 million and $3.0 million, respectively. These expenses were included in research and development in the consolidated statements of operations. Purpose, Co. In June 2012, the Company entered into an agreement with Purpose to amend its previous agreements. In the previous agreements, Purpose granted the Company a perpetual license to its patents related to its exogenous tissue processor which is used in the development of the Company’s products. In exchange, the Company granted Purpose a perpetual license to all of the Company’s biotechnology and biomaterial for use in Japan. The agreement provided for Purpose to manufacture and sell machinery to the Company for cost until the Company’s products become commercially viable. The Company also agreed to pay royalties on any third-party revenue generated using Purpose’s licensed technology. Under the June 2012 amendment, the Company received exclusive rights to all of Purpose’s technology related to the exogenous tissue processor, continued supply of exogenous tissue processors during the Company’s clinical trials, and rights to manufacture the exogenous tissue processors at any location the Company chooses. In exchange for such consideration, the Company named Purpose the sole manufacturer of equipment and also clarified the geographic territories of the exclusive license that Purpose was granted for use of the Company’s technology. Also, the Company agreed to reimburse Purpose for $0.3 million of development costs on a next generation tissue processer. Refer to the discussion under Note 5, Tissue Processor Sub-License In May 2016, the Company acquired the development and commercialization rights to NeoCart for the Japanese market from Purpose. Under the terms of the amended agreement, the Company assumes sole responsibility for and rights to the development and commercialization of NeoCart in Japan. In exchange for the transfer of development and commercialization rights, the Company will pay a success-based milestone to Purpose upon conditional approval of NeoCart in Japan, as well as commercial milestones and a low single digit royalty on Japanese sales of NeoCart, upon full approval, if any, in Japan. The Company paid Purpose $0.1 million and $0.1 million in the six months ended June 30, 2017 and 2016, respectively. Board of Director Affiliates. Affiliates of certain members of the Company’s Board of Directors participated in the Private Placement as described in Note 6. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts reported in the Company’s consolidated financial statements for cash and cash equivalents, marketable securities, accounts payable, equipment loan, and accrued liabilities approximate their respective fair values because of the short-term nature of these accounts. Fair value is defined as the price that would be received if selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as assets held for sale and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1), and the lowest priority to unobservable inputs (Level 3). The Company’s financial assets are classified within the fair value hierarchy based on the lowest level of inputs that is significant to the fair value measurement. The three levels of the fair value hierarchy, and its applicability to the Company’s financial assets, are described below. Level 1 Level 2 Level 3 non-transferability, An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The Company had no material re-measurements The fair value of the warrants is considered a Level 3 valuation and was determined using a Monte Carlo simulation model. This model incorporated several assumptions at each valuation date including: the price of the Company’s common stock on the date of valuation, the historical volatility of the price of the Company’s common stock, the remaining contractual term of the warrant and estimates of the probability of a fundamental transaction occurring (See Note 6 for further discussion of the private placement). The Company’s financial instruments as of June 30, 2017 consisted primarily of cash and cash equivalents, marketable securities and accounts payable. The Company’s financial instruments as of December 31, 2016 consisted primarily of cash and cash equivalents and accounts payable. As of June 30, 2017, and December 31, 2016, the Company’s financial assets recognized at fair value consisted of the following: Description Total Quoted prices in active markets (Level 1) Significant other observable (Level 2) Significant unobservable inputs (Level 3) (in thousands) June 30, 2017 Assets: Cash Equivalents Money market funds $ 4,422 $ 4,422 $ — $ — Marketable securities: Asset-backed securities 1,809 — 1,809 — Commercial paper 3,595 — 3,595 — Corporate notes 2,574 — 2,574 — Total $ 12,400 $ 4,422 $ 7,978 $ — Liabilities: Warrant liability $ 13,601 $ — $ — $ 13,601 December 31, 2016 Assets: Money market funds $ 30,318 $ 30,318 $ — $ — Liabilities: Warrant liability $ 13,198 $ — $ — $ 13,198 The following table provides a reconciliation of all liabilities measured at fair value using Level 3 significant unobservable inputs: As of June 30, 2017 (in thousands) Beginning balance, December 31, 2016 $ 13,198 Issuance of warrants — Change in fair value of warrant liability 403 Ending balance $ 13,601 |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid securities with original maturities of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents are comprised of funds in money market accounts. |
Marketable Securities | Marketable Securities The Company classifies marketable securities with a remaining maturity when purchased of greater than three months as available for sale. The Company considers all available for sale securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and therefore classifies all securities with maturity dates beyond 90 days at the date of purchase as current assets within the consolidated balance sheets. Available for sale securities are maintained by the Company’s investment managers and may consist of commercial paper, high-grade corporate notes, U.S. Treasury securities, U.S. government agency securities, and certificates of deposit. Available for sale securities are carried at fair value with the unrealized gains and losses included in other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase is amortized and/or accreted to interest income and/or expense over the life of the instrument. Realized gains and losses are determined using the specific identification method and are included in other income (expense). If any adjustment to fair value reflects a decline in value of the investment, the Company considers all available evidence to evaluate the extent to which the decline is “other-than-temporary” and, if so, marks the investment to market through a charge to the Company’s consolidated statement of operations and comprehensive loss. The following table summarizes the available for sale securities held at June 30, 2017: Description Amortized Cost Unrealized Unrealized Fair Value (in thousands) Asset-backed securities $ 1,810 $ — $ (1 ) $ 1,809 Commercial paper 3,595 — — 3,595 Corporate notes 2,575 — (1 ) 2,574 Total $ 7,980 $ — $ (2 ) $ 7,978 The Company did not hold any available for sale securities prior to the first quarter of 2017. The amortized cost of available for sale securities is adjusted for amortization of premiums and accretion of discounts to maturity. At June 30, 2017, the balance in the Company’s accumulated other comprehensive loss was composed solely of activity related to the Company’s available for sale marketable securities. There were no sales of available for sale securities during the quarter ended June 30, 2017. The aggregate fair value of available for sale securities held by the Company in an unrealized loss position for less than twelve months as of June 30, 2017 was $4.4 million. The aggregate unrealized loss for those securities in an unrealized loss position for less than twelve months as of June 30, 2017 was $2 thousand. The Company determined that there was no material change in the credit risk of any of its investments. As a result, the Company determined it did not hold any investments with any other-than-temporary impairment as of June 30, 2017. The weighted average maturity of the Company’s portfolio was approximately two months at June 30, 2017. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock options and restricted stock based on their grant date fair value and recognizes compensation expense on a straight-line basis over their vesting period. The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model, with the exception of stock options that include a market condition, and of restricted stock based on the fair value of the underlying common stock as of the date of grant or the value of the services provided, whichever is more readily determinable. The Company, in conjunction with adoption of ASU 2016-09- Stock Compensation: Improvements to Employee Share-Based Payment Accounting pre-vesting For stock option grants with vesting triggered by the achievement of performance-based milestones, the expense is recorded over the remaining service period after the point when the achievement of the milestone is probable or the performance condition has been achieved. For stock option grants with both performance-based milestones and market conditions, expense is recorded over the derived service period after the point when the achievement of the performance-based milestone is probable or the performance condition has been achieved. For stock option grants with market conditions, the expense is calculated using the Monte Carlo model based on the grant date fair value of the option and is recorded on a straight line basis over the requisite service period, which represents the derived service period and accelerated when the market condition is satisfied. The Company did not issue awards with market conditions during the six months ended June 30, 2017. The Company accounts for stock options and restricted stock awards to non-employees non-employees |
Warrant Accounting | Warrant Accounting As noted in Note 6, Capital Stock, the Company classifies a warrant to purchase shares of its common stock as a liability on its consolidated balance sheet if the warrant is a free-standing financial instrument that may require the Company to transfer consideration upon exercise. Each warrant of this type is initially recorded at fair value on date of grant using the Monte Carlo simulation model and net of issuance costs, and is subsequently re-measured |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, In March 2016, the FASB issued ASU No. 2016-09, In February 2016, the FASB issued ASU No. 2016-02- Leases 2016-02 2016-02 In August 2014, the FASB issued ASU No. 2014-15, 205-40): In May 2014, the FASB issued ASU No. 2014-09, 2014-09 one-year In May 2017, the FASB issued ASU No. 2017-09, |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | As of June 30, 2017, and December 31, 2016, the Company’s financial assets recognized at fair value consisted of the following: Description Total Quoted prices in active markets (Level 1) Significant other observable (Level 2) Significant unobservable inputs (Level 3) (in thousands) June 30, 2017 Assets: Cash Equivalents Money market funds $ 4,422 $ 4,422 $ — $ — Marketable securities: Asset-backed securities 1,809 — 1,809 — Commercial paper 3,595 — 3,595 — Corporate notes 2,574 — 2,574 — Total $ 12,400 $ 4,422 $ 7,978 $ — Liabilities: Warrant liability $ 13,601 $ — $ — $ 13,601 December 31, 2016 Assets: Money market funds $ 30,318 $ 30,318 $ — $ — Liabilities: Warrant liability $ 13,198 $ — $ — $ 13,198 |
Schedule of Reconciliation of Liabilities Measured at Fair Value | The following table provides a reconciliation of all liabilities measured at fair value using Level 3 significant unobservable inputs: As of June 30, 2017 (in thousands) Beginning balance, December 31, 2016 $ 13,198 Issuance of warrants — Change in fair value of warrant liability 403 Ending balance $ 13,601 |
Summary of Available for Sale Securities | The following table summarizes the available for sale securities held at June 30, 2017: Description Amortized Cost Unrealized Unrealized Fair Value (in thousands) Asset-backed securities $ 1,810 $ — $ (1 ) $ 1,809 Commercial paper 3,595 — — 3,595 Corporate notes 2,575 — (1 ) 2,574 Total $ 7,980 $ — $ (2 ) $ 7,978 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Common Share | For the three and six months ended June 30, 2017 and 2016, there was no dilution attributed to the weighted-average shares outstanding in the calculation of diluted loss per share. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands, except share and per share data) Numerator: Net loss $ (6,542 ) $ (8,038 ) $ (13,623 ) $ (15,956 ) Net Loss attributable to Series A Preferred Stock (a) (1,088 ) — (2,338 ) — Earnings (loss) attributable to common stockholders—basic and diluted $ (5,454 ) $ (8,038 ) $ (11,285 ) $ (15,956 ) Denominator: Weighted-average number of common shares used in earnings (loss) per share - basic and diluted 22,183,804 13,270,433 22,050,572 13,270,531 Earnings (loss) per share - basic and diluted $ (0.25 ) $ (0.61 ) $ (0.51 ) $ (1.20 ) (a) The Series A Preferred Stock participates in income and losses. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding, as they would be anti-dilutive (in common stock equivalent shares): For the three and six months ended 2017 2016 Unvested restricted stock and options to purchase common stock 2,365,776 1,347,630 Series A preferred stock unconverted 4,332,395 — Warrants exercisable into common stock 13,633,070 166,403 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: June 30, December 31, (in thousands) Office equipment $ 279 $ 266 Laboratory equipment 4,470 4,443 Leasehold improvements 7,711 7,683 Construction in progress 765 759 Software 96 96 Total property and equipment 13,321 13,247 Less: accumulated depreciation (10,175 ) (9,387 ) Property and equipment, net $ 3,146 $ 3,860 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity Under the 2012 and 2013 Plans | Stock option activity under the Company’s 2012 Equity Incentive Plan (the “2012 Plan”) and 2013 Equity Incentive Plan (the “2013 Plan”) for the six months ended June 30, 2017 is summarized as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 1,577,016 $ 5.95 Granted 840,000 1.71 Exercised — — Cancelled (51,240 ) 5.25 Outstanding at June 30, 2017 2,365,776 $ 4.47 8.6 $ 166 Vested and expected to vest at June 30, 2017 2,134,341 $ 4.60 8.5 $ 151 Exercisable at June 30, 2017 830,728 $ 6.10 7.7 $ 73 |
Schedule of Restricted Stock Awards Under the 2012 and 2013 Plans | Restricted stock awards under the 2012 Plan and 2013 Plan for the six months ended June 30, 2017 are summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 1,889 $ 0.83 Vesting of restricted stock (1,889 ) 0.83 Unvested at June 30, 2017 — $ — |
Summary of Stock-Based Compensation for all Options Granted and Restricted Stock Awards | The allocation of stock-based compensation for all options granted and restricted stock awards is as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Research and development $ 129 $ 123 $ 240 $ 238 General and administrative 242 213 624 409 Total stock-based compensation expense $ 371 $ 336 $ 864 $ 647 |
Summary of Stock-Based Compensation by Award | Stock-based compensation by award type is as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Stock options $ 371 $ 336 $ 864 $ 646 Restricted stock — — — 1 Total stock-based compensation expense $ 371 $ 336 $ 864 $ 647 |
Summary of Weighted-Average Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the Employee Stock Option Grants | The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Risk-free interest rate 1.88 % 1.35 % 2.03 % 1.40 % Expected volatility 60.2 % 65.8 % 63.2 % 59.6 % Expected term (in years) 6.08 6.08 6.08 6.08 Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % |
Summary of Weighted-Average Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the Non-Employee Stock Option Grants | The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the non-employee Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Risk-free interest rate 1.35 % 1.56 % 1.14 % 1.61 % Expected volatility 59.7 % 62.9 % 69.5 % 63.8 % Expected term (in years) 6.08 6.95 6.08 7.02 Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % |
Equipment Loan Payable (Tables)
Equipment Loan Payable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowing Obligations | As of June 30, 2017 and December 31, 2016, the Company had the following outstanding borrowing obligations: June 30, December 31, 2017 2016 (in thousands) Silicon Valley Bank Equipment Loan Payable $ 470 $ 761 Less: current portion (470 ) (583 ) Long-term debt, net $ — $ 178 |
Schedule of Maturities of Debt | The scheduled maturities of the Company’s debt are as follows: June 30, 2017 (in thousands) December 31, 2017 $ 292 May 31, 2018 178 Total $ 470 |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 29, 2016 | May 13, 2011 | Jun. 30, 2017 | Dec. 31, 2016 |
Nature Of Business And Basis Of Presentation [Line Items] | ||||
Proceeds from issuance of issuance of common stock, preferred stock and warrants, net of issuance costs | $ 27,600 | |||
Accumulated deficit | $ (195,396) | $ (181,773) | ||
Cash and cash equivalents and marketable securities | $ 18,500 | |||
ProChon [Member] | ||||
Nature Of Business And Basis Of Presentation [Line Items] | ||||
Business acquisition date | May 13, 2011 | |||
Consideration paid to acquisition | $ 2,200 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Transfers between Levels 1, 2 and 3 | $ 0 | $ 0 |
Sale of available for sale securities | 0 | |
Aggregate fair value of available for sale securities held in an unrealized loss position for less than twelve months | 4,400,000 | |
Unrealized loss | 2,000 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Assets, fair value disclosure, recurring | 0 | 0 |
Liabilities, fair value disclosure, recurring | $ 0 | $ 0 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Cash Equivalents | ||
Assets, fair value | $ 12,400 | |
Marketable securities: | ||
Assets, fair value | 12,400 | |
Assets, fair value | 12,400 | |
Warrant Liability [Member] | ||
Liabilities: | ||
Liabilities, fair value | 13,601 | $ 13,198 |
Money Market Funds [Member] | ||
Cash Equivalents | ||
Assets, fair value | 4,422 | 30,318 |
Marketable securities: | ||
Assets, fair value | 4,422 | 30,318 |
Assets, fair value | 4,422 | 30,318 |
Asset Backed Securities [Member] | ||
Cash Equivalents | ||
Assets, fair value | 1,809 | |
Marketable securities: | ||
Assets, fair value | 1,809 | |
Assets, fair value | 1,809 | |
Commercial Paper [Member] | ||
Cash Equivalents | ||
Assets, fair value | 3,595 | |
Marketable securities: | ||
Assets, fair value | 3,595 | |
Assets, fair value | 3,595 | |
Corporate Notes [Member] | ||
Cash Equivalents | ||
Assets, fair value | 2,574 | |
Marketable securities: | ||
Assets, fair value | 2,574 | |
Assets, fair value | 2,574 | |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Cash Equivalents | ||
Assets, fair value | 4,422 | |
Marketable securities: | ||
Assets, fair value | 4,422 | |
Assets, fair value | 4,422 | |
Quoted Prices in Active Markets (Level 1) [Member] | Money Market Funds [Member] | ||
Cash Equivalents | ||
Assets, fair value | 4,422 | 30,318 |
Marketable securities: | ||
Assets, fair value | 4,422 | 30,318 |
Assets, fair value | 4,422 | 30,318 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Cash Equivalents | ||
Assets, fair value | 7,978 | |
Marketable securities: | ||
Assets, fair value | 7,978 | |
Assets, fair value | 7,978 | |
Significant Other Observable Inputs (Level 2) [Member] | Asset Backed Securities [Member] | ||
Cash Equivalents | ||
Assets, fair value | 1,809 | |
Marketable securities: | ||
Assets, fair value | 1,809 | |
Assets, fair value | 1,809 | |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Cash Equivalents | ||
Assets, fair value | 3,595 | |
Marketable securities: | ||
Assets, fair value | 3,595 | |
Assets, fair value | 3,595 | |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Notes [Member] | ||
Cash Equivalents | ||
Assets, fair value | 2,574 | |
Marketable securities: | ||
Assets, fair value | 2,574 | |
Assets, fair value | 2,574 | |
Significant Unobservable Inputs (Level 3) [Member] | Warrant Liability [Member] | ||
Liabilities: | ||
Liabilities, fair value | $ 13,601 | $ 13,198 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Schedule of Reconciliation of Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in fair value of warrant liability | $ 135 | $ 404 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 13,198 | |
Issuance of warrants, | 0 | |
Change in fair value of warrant liability | 403 | |
Ending balance | $ 13,601 | $ 13,601 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Summary of Available for Sale Securities (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $ 7,980 |
Unrealized Gains | 0 |
Unrealized Losses | (2) |
Fair Value | 7,978 |
Asset Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,810 |
Unrealized Gains | 0 |
Unrealized Losses | (1) |
Fair Value | 1,809 |
Commercial Paper [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 3,595 |
Unrealized Gains | 0 |
Fair Value | 3,595 |
Corporate Notes [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 2,575 |
Unrealized Gains | 0 |
Unrealized Losses | (1) |
Fair Value | $ 2,574 |
Loss Per Common Share - Schedul
Loss Per Common Share - Schedule of Basic and Diluted Loss Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net loss | $ (6,542) | $ (8,038) | $ (13,623) | $ (15,956) |
Net Loss attributable to Series A Preferred Stock | (1,088) | (2,338) | ||
Earnings (loss) attributable to common stockholders-basic and diluted | $ (5,454) | $ (8,038) | $ (11,285) | $ (15,956) |
Denominator: | ||||
Weighted-average number of common shares used in earnings (loss) per share - basic and diluted | 22,183,804 | 13,270,433 | 22,050,572 | 13,270,531 |
Earnings (loss) per share - basic and diluted | $ (0.25) | $ (0.61) | $ (0.51) | $ (1.20) |
Loss Per Common Share - Sched29
Loss Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Series A Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 4,332,395 | 4,332,395 | ||
Unvested Restricted Stock and Options to Purchase Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 2,365,776 | 1,347,630 | 2,365,776 | 1,347,630 |
Warrants Exercisable into Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 13,633,070 | 166,403 | 13,633,070 | 166,403 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 13,321 | $ 13,247 |
Less: accumulated depreciation | (10,175) | (9,387) |
Property and equipment, net | 3,146 | 3,860 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 279 | 266 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,470 | 4,443 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,711 | 7,683 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 765 | 759 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 96 | $ 96 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 394 | $ 432 | $ 789 | $ 862 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Feb. 28, 2017USD ($) | Sep. 30, 2015 | Jun. 30, 2012USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Options | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Rent expense under operating lease agreements | $ 248,000 | $ 236,000 | $ 495,000 | $ 494,000 | ||||
Research and development expense | 4,208,000 | $ 5,794,000 | 8,712,000 | $ 11,380,000 | ||||
Waltham [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Tenant improvement allowance for future rental payments | $ 500,000 | |||||||
Lease renewal date | Jan. 1, 2018 | |||||||
Hydrogel License Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Research and development expense | $ 3,200,000 | |||||||
Amount paid during period for amending the agreement | 3,000,000 | 3,000,000 | ||||||
Tissue Regeneration License Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Research and development expense | 700,000 | |||||||
Amount paid during period for amending the agreement | 300,000 | $ 300,000 | ||||||
Percentage of royalty offsetting | 50.00% | |||||||
Maximum [Member] | Waltham [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Construction allowances to total cost of tenant improvements | $ 3,184,000 | |||||||
Tenant improvement allowance | 900,000 | 900,000 | ||||||
Maximum [Member] | Lexington [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Construction allowances to total cost of tenant improvements | 996,000 | |||||||
Minimum [Member] | Tissue Regeneration License Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Non-refundable royalty fee | 10,000 | |||||||
Tissue Processor Sub License Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Research and development expense | 1,000,000 | |||||||
Reimbursement for development cost | $ 300,000 | |||||||
Potential milestone payments | 10,200,000 | 10,200,000 | ||||||
Additional non-refundable royalty fee | $ 30,000 | |||||||
Additional non-refundable royalty fee payment description | 2016 through 2019 | |||||||
Tissue Processor Sub License Agreement [Member] | Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Non-refundable royalty fee | $ 20,000 | |||||||
Engineering Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount paid to suppliers | 600,000 | $ 200,000 | ||||||
Additional payments due | 0 | 0 | ||||||
Collagen Supply Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount paid during period for amending the agreement | 70,000 | $ 70,000 | ||||||
Minimum amount of material and/or services | $ 100,000 | |||||||
Initial term of the agreement | 3 years | |||||||
Supplier agreement description | The initial term of the agreement is three years and will automatically renew from year to year thereafter unless otherwise terminated with at least 180 days' notice by either party. | |||||||
Amount agreed for amending minimum annual order | $ 100,000 | |||||||
Amount paid during period for amending the agreement | $ 30,000 | |||||||
OCS Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrued and received grants, aggregate | $ 1,100,000 | $ 1,100,000 | ||||||
OCS Agreement [Member] | Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Royalties payment, rate | 5.00% | |||||||
Royalty payment percentage as percentage of grant received | 300.00% | |||||||
OCS Agreement [Member] | Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Royalties payment, rate | 3.00% | |||||||
Royalty payment percentage as percentage of grant received | 100.00% | |||||||
Massachusetts [Member] | Waltham [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Lease expiration period | 2,023 | |||||||
Amended lease termination date | Jan. 31, 2018 | |||||||
Lease termination date | Dec. 31, 2024 | |||||||
Additional operating lease term | 5 years | |||||||
Number of additional renewal terms | Options | 1 | |||||||
Massachusetts [Member] | Lexington [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Lease expiration period | 2,023 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Sep. 29, 2016 | Jun. 30, 2017 |
Class of Stock [Line Items] | ||
Proceeds from issuance of issuance of common stock, preferred stock and warrants, net of issuance costs | $ 27.6 | |
Minimum threshold percentage of beneficial common stock interest | 4.99% | |
Maximum threshold percentage of beneficial common stock interest on holder's discretion | 9.99% | |
Convertible preferred stock, terms of conversion | The Series A Preferred Stock shall not be converted if, after giving effect to the conversion, the holder and its affiliated persons would own beneficially more than 4.99% of our common stock (subject to adjustment up to 9.99% solely at the holder's discretion upon 61 days' prior notice to us or, solely as to a holder, if such limitation is waived by such holder upon execution of the private placement agreement). | |
Private Placement [Member] | ||
Class of Stock [Line Items] | ||
Gross proceeds from issuance of common stock, preferred stock and warrants | $ 30 | |
Common stock price per share | $ 2.25 | |
Conversion of preferred stock in to common stock, preferred stock converted | 10,737,275 | 444.44 |
Class of Warrants or right to purchase common stock | 13,333,334 | |
Class of Warrants or right to purchase common stock, exercise price | $ 2.25 | $ 2.25 |
Warrants granted to placement agent | 133,333 | |
Proceeds from issuance of issuance of common stock, preferred stock and warrants, net of issuance costs | $ 27.6 | |
Warrants granted to placement agent, exercise price | $ 2.25 | |
Minimum percentage of outstanding common stock | 50.00% | |
Warrants expiry period | 5 years | |
Warrants exercisable period | 6 months | |
Fair value of warrants | $ 30.7 | |
Excess fair value of warrant liability | 0.4 | |
Warrant expense | $ 3.1 | |
Preferred stock par value | $ 0.01 | |
Private Placement [Member] | Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of shares issued | 2,596,059 | |
Private Placement [Member] | Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of shares issued | 24,158.8693 | 24,158.8693 |
Conversion of preferred stock in to common stock, preferred stock converted | 10,737,275 | |
Convertible preferred stock, shares outstanding | 9,747.8979 | |
Private Placement [Member] | Series A Preferred Stock [Member] | Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Conversion of preferred stock in to common stock, preferred stock converted | 4,332,395 | |
Private Placement [Member] | Members of Board of Directors [Member] | ||
Class of Stock [Line Items] | ||
Class of Warrants or right to purchase common stock | 1,422,221 | |
Class of Warrants or right to purchase common stock, exercise price | $ 2.25 | |
Private Placement [Member] | Members of Board of Directors [Member] | Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of shares issued | 283,046 | |
Private Placement [Member] | Members of Board of Directors [Member] | Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of shares issued | 2,563.1439 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 21, 2015 | Jul. 09, 2014 | Jul. 20, 2012 | Dec. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2012 | Jun. 30, 2017 | Sep. 30, 2015 | Sep. 30, 2016 | Mar. 31, 2015 |
Investor Warrants [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrants or right to purchase common stock | 13,333,334 | |||||||||||
Class of Warrants or right to purchase common stock, exercise price | $ 2.25 | |||||||||||
Warrants exercisable period | 6 months | |||||||||||
Warrants expiry period | 5 years | |||||||||||
Warrant expense | $ 2.28 | $ 2.28 | ||||||||||
Placement Agent Warrant [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrants or right to purchase common stock | 133,333 | |||||||||||
Class of Warrants or right to purchase common stock, exercise price | $ 2.25 | |||||||||||
Warrants expiry period | 5 years | |||||||||||
Warrant expense | $ 2.28 | $ 2.28 | ||||||||||
Consulting Agreement Warrant [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrants or right to purchase common stock | 7,398 | |||||||||||
Class of Warrants or right to purchase common stock, exercise price | $ 9.75 | |||||||||||
Warrants exercisable period | 24 months | |||||||||||
Warrants expiry period | 10 years | |||||||||||
Warrants, forfeiture | (3,699) | |||||||||||
Warrants vested and exercisable | 3,699 | 3,699 | ||||||||||
Warrants, percentage of forfeiture | 50.00% | |||||||||||
Affiliates Of Advisor Warrant [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrants or right to purchase common stock | 156,138 | 156,138 | 161,977 | 156,138 | ||||||||
Class of Warrants or right to purchase common stock, exercise price | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Warrants expiry period | 10 years | |||||||||||
Surrender of warrant to satisfy related liability | 5,839 | |||||||||||
Fair value of warrants | $ 117 | |||||||||||
Fair value of the warrants, risk free interest rate | 0.22% | |||||||||||
Fair value of the warrants, implied volatility | 99.00% | |||||||||||
Fair value of the warrants, expected term to liquidity | 1 year 8 months 12 days | |||||||||||
Silicon Valley Bank [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrants or right to purchase common stock | 6,566 | |||||||||||
Class of Warrants or right to purchase common stock, exercise price | $ 7.99 | |||||||||||
Warrants expiry period | 10 years | |||||||||||
Fair value of warrants | $ 51 | |||||||||||
Fair value of the warrants, risk free interest rate | 2.58% | |||||||||||
Fair value of the warrants, implied volatility | 87.00% | |||||||||||
Fair value of the warrants, expected term to liquidity | 10 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity Under the 2012 and 2013 Plans (Detail) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Options, Outstanding Beginning Balance | shares | 1,577,016 |
Number of Options, Granted | shares | 840,000 |
Number of Options, Exercised | shares | 0 |
Number of Options, Cancelled | shares | (51,240) |
Number of Options, Outstanding Ending Balance | shares | 2,365,776 |
Number of Options, Vested and expected to vest outstanding | shares | 2,134,341 |
Number of Options, Exercisable | shares | 830,728 |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ / shares | $ 5.95 |
Weighted Average Exercise Price, Granted | $ / shares | 1.71 |
Weighted Average Exercise Price, Exercised | $ / shares | 0 |
Weighted Average Exercise Price, Cancelled | $ / shares | 5.25 |
Weighted Average Exercise Price, Outstanding Ending Balance | $ / shares | 4.47 |
Weighted Average Exercise Price, Vested and expected to vest outstanding | $ / shares | 4.60 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 6.10 |
Weighted Average Remaining Contractual Term, Outstanding | 8 years 7 months 6 days |
Weighted Average Remaining Contractual Term, Vested and expected to vest outstanding | 8 years 6 months |
Weighted Average Remaining Contractual Term, Exercisable | 7 years 8 months 12 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 166 |
Aggregate Intrinsic Value, Vested and expected to vest outstanding | $ | 151 |
Aggregate Intrinsic Value, Exercisable | $ | $ 73 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to outstanding options | $ 2,300 | $ 2,300 | ||
Weighted average grant date fair value of vested options | $ 4.11 | |||
Weighted average grant date fair value of options outstanding | $ 2.72 | 2.72 | ||
Weighted average grant date fair value per share of employee option granted | $ 0.96 | $ 1.07 | $ 1.01 | $ 1.42 |
Stock-based compensation expense | $ 371 | $ 336 | $ 864 | $ 647 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, recognition period | 1 year 11 months 23 days | |||
Stock-based compensation expense | $ 371 | $ 336 | $ 864 | $ 646 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Awards Under the 2012 and 2013 Plans (Detail) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Unvested beginning balance | shares | 1,889 |
Vesting of restricted stock | shares | (1,889) |
Weighted-average grant date fair value, Unvested beginning balance | $ / shares | $ 0.83 |
Vesting of restricted stock | $ / shares | $ 0.83 |
Stock-Based Compensation - Su38
Stock-Based Compensation - Summary of Stock-Based Compensation for all Options Granted and Restricted Stock Awards (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 371 | $ 336 | $ 864 | $ 647 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 129 | 123 | 240 | 238 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 242 | $ 213 | $ 624 | $ 409 |
Stock-Based Compensation - Su39
Stock-Based Compensation - Summary of Stock-Based Compensation by Award (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 371 | $ 336 | $ 864 | $ 647 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 371 | $ 336 | $ 864 | 646 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1 |
Stock-Based Compensation - Su40
Stock-Based Compensation - Summary of Weighted-Average Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the Employee Stock Option Grants (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free interest rate | 1.88% | 1.35% | 2.03% | 1.40% |
Expected volatility | 60.20% | 65.80% | 63.20% | 59.60% |
Expected term (in years) | 6 years 29 days | 6 years 29 days | 6 years 29 days | 6 years 29 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Su41
Stock-Based Compensation - Summary of Weighted-Average Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the Non-Employee Stock Option Grants (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Goods and Nonemployee Services Transaction [Abstract] | ||||
Risk-free interest rate | 1.35% | 1.56% | 1.14% | 1.61% |
Expected volatility | 59.70% | 62.90% | 69.50% | 63.80% |
Expected term (in years) | 6 years 29 days | 6 years 11 months 12 days | 6 years 29 days | 7 years 7 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Equipment Loan Payable - Schedu
Equipment Loan Payable - Schedule of Outstanding Borrowing Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 470 | |
Less: current portion | (470) | $ (583) |
Long-term debt, net | 178 | |
Silicon Valley Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 470 | $ 761 |
Equipment Loan Payable - Additi
Equipment Loan Payable - Additional Information (Detail) - Silicon Valley Bank [Member] | 1 Months Ended |
Jul. 31, 2014USD ($)$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Amount of loan to purchase equipment | $ | $ 1,800,000 |
Line of credit facility, interest rate, stated percentage | 3.25% |
Bank loan and security agreement, repayment period | 36 months |
Net exercise of warrants, shares | shares | 6,566 |
Net exercise of warrants, exercise price per share | $ / shares | $ 7.99 |
Prime Rate [Member] | |
Class of Warrant or Right [Line Items] | |
Amount of loan bears interest basis spread on variable rate | 2.75% |
Equipment Loan Payable - Sche44
Equipment Loan Payable - Schedule of Maturities of Debt (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
December 31, 2017 | $ 292 |
May 31, 2018 | 178 |
Total debt | $ 470 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2012 | |
Intrexon [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaboration Agreement cancellation notification | 90 days | |||
Collaboration Agreement cancellation with material breach that cannot be remedied | 60 days | |||
Accrued expenses due to related party | $ 3,000,000 | $ 3,000,000 | ||
Intrexon [Member] | Commercialization Milestones [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Commercialization milestones obligation | 12,000,000 | |||
Intrexon [Member] | Sales Milestones [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Sales milestones | $ 22,500,000 | |||
Intrexon [Member] | Research and Development [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Percentage of reimbursement expenses | 50.00% | |||
Percentage of reimbursement expenses subject to acceptance | 50.00% | |||
Research and development expense from transaction with Intrexon | $ 0 | $ 1,500,000 | ||
Purpose, Co. [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Reimbursement for development cost, amount | $ 300,000 | |||
Reimbursement for development cost, paid | $ 100,000 | $ 100,000 |