Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AQXP | ||
Entity Registrant Name | AQUINOX PHARMACEUTICALS, INC | ||
Entity Central Index Key | 1,404,644 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 23,490,859 | ||
Entity Public Float | $ 54.6 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents (Note 3) | $ 52,032 | $ 32,301 |
Short-term investments (Note 11) | 56,053 | 70,758 |
Receivables, prepayments and deposits | 740 | 426 |
Total current assets | 108,825 | 103,485 |
Property and equipment, net (Note 4) | 905 | 849 |
Long-term prepayments and deposits | 599 | |
Long-term investments (Note 11) | 50,046 | |
Total assets | 110,329 | 154,380 |
Current liabilities | ||
Accounts payable and other liabilities (Note 5) | 10,956 | 9,519 |
Total current liabilities | 10,956 | 9,519 |
Other liabilities (Note 6) | 486 | 197 |
Total liabilities | 11,442 | 9,716 |
Commitments and contingencies (Note 13) | ||
Share capital: | ||
Common stock | 0 | |
Preferred stock | 0 | |
Additional paid-in capital | 297,459 | 293,111 |
Accumulated deficit | (198,502) | (148,278) |
Accumulated other comprehensive loss | (70) | (169) |
Total stockholders' equity | 98,887 | 144,664 |
Total liabilities and stockholders' equity | $ 110,329 | $ 154,380 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 23,472,430 | 23,423,150 |
Common stock, shares outstanding | 23,472,430 | 23,423,150 |
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated statements of oper
Consolidated statements of operations and comprehensive loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating expenses | |||
Research and development | $ 36,267 | $ 28,382 | $ 15,799 |
General and administrative | 14,852 | 9,263 | 5,541 |
Total operating expenses | 51,119 | 37,645 | 21,340 |
Other income (expenses) | |||
Interest expense | (4) | (1) | |
Other income (expenses) (Note 8) | 940 | 644 | (520) |
Total Other income (expenses) | 936 | 643 | (520) |
Net loss | $ (50,183) | $ (37,002) | $ (21,860) |
Net loss per common stock - basic and diluted (Note 9) | $ (2.14) | $ (1.96) | $ (1.73) |
Basic and diluted weighted average number of common stock outstanding (Note 9) | 23,450,315 | 18,893,515 | 12,637,839 |
Comprehensive loss: | |||
Net loss | $ (50,183) | $ (37,002) | $ (21,860) |
Other comprehensive income (loss) - unrealized gain (loss) on available-for-sale securities | 99 | 121 | (286) |
Comprehensive loss | $ (50,084) | $ (36,881) | $ (22,146) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net loss | $ (50,183) | $ (37,002) | $ (21,860) |
Non-cash items and reclassifications: | |||
Change in fair value of derivative liability (Note 8) | (81) | 52 | |
Stock-based compensation (Note 7(e)) | 3,839 | 1,966 | 1,506 |
Unrealized foreign exchange loss and others | 709 | 185 | 580 |
Changes in operating assets and liabilities: | |||
Receivable, prepayments and deposits | (905) | (109) | (96) |
Accounts payable and other liabilities | 1,822 | 4,815 | (450) |
Cash used in operating activities | (44,718) | (30,226) | (20,268) |
Investing activities | |||
Purchase of investments | (5,995) | (106,442) | (60,703) |
Proceeds from maturity of investments | 70,500 | 59,097 | 13,196 |
Purchase of property and equipment | (494) | (713) | (26) |
Cash provided by (used in) investing activities | 64,011 | (48,058) | (47,533) |
Financing activities | |||
Proceeds from exercise of stock options | 438 | 440 | 1,120 |
Payment on capital lease obligations | (15) | (4) | |
Public offering of common stock (Note 7(c)) | 75,368 | 98,038 | |
Public offering costs (Note 7(c)) | (4,692) | (6,210) | |
Cash provided by financing activities | 423 | 71,112 | 92,948 |
Effect of exchange rate changes on cash and cash equivalents | 15 | (53) | (527) |
Net change in cash and cash equivalents during the year | 19,731 | (7,225) | 24,620 |
Cash and cash equivalents, beginning of year | 32,301 | 39,526 | 14,906 |
Cash and cash equivalents, end of year | 52,032 | 32,301 | 39,526 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 4 | 1 | |
Interest received | 1,342 | 695 | 325 |
Non-cash investing and financing activities: | |||
Accrued purchase of property & equipment | (77) | 77 | |
Accrued offering costs | $ (30) | 35 | |
Assets acquired through capital leases | 65 | $ 11 | |
Exercise of warrants on a net settlement basis | $ 43 |
Consolidated statements of stoc
Consolidated statements of stockholders equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2014 | $ 36,147 | $ 125,567 | $ (89,416) | $ (4) | |
Beginning balance, shares at Dec. 31, 2014 | 10,695,108 | ||||
Issuance of common stock, net share issuance costs | 91,793 | 91,793 | |||
Issuance of common stock, net share issuance costs, shares | 6,325,000 | ||||
Options exercised | 1,120 | 1,120 | |||
Options exercised, shares | 191,878 | ||||
Stock-based compensation | 1,506 | 1,506 | |||
Other comprehensive income (loss) | (286) | (286) | |||
Net loss | (21,860) | (21,860) | |||
Ending balance at Dec. 31, 2015 | 108,420 | 219,986 | (111,276) | (290) | |
Ending balance, shares at Dec. 31, 2015 | 17,211,986 | ||||
Issuance of common stock, net share issuance costs | 70,676 | 70,676 | |||
Issuance of common stock, net share issuance costs, shares | 6,152,500 | ||||
Options exercised | 440 | 440 | |||
Options exercised, shares | 55,663 | ||||
Exercise of warrants | 43 | 43 | |||
Exercise of warrants, shares | 3,001 | ||||
Stock-based compensation | 1,966 | 1,966 | |||
Other comprehensive income (loss) | 121 | 121 | |||
Net loss | (37,002) | (37,002) | |||
Ending balance at Dec. 31, 2016 | $ 144,664 | 293,111 | (148,278) | (169) | |
Ending balance, shares at Dec. 31, 2016 | 23,423,150 | 23,423,150 | |||
Cumulative effect of adoption of new accounting standard (Note 2(p)) at Dec. 31, 2016 | 41 | (41) | |||
Beginning balance at Dec. 31, 2016 | $ 144,664 | 293,152 | (148,319) | (169) | |
Options exercised | $ 468 | 468 | |||
Options exercised, shares | 49,280 | 49,280 | |||
Stock-based compensation | $ 3,839 | 3,839 | |||
Other comprehensive income (loss) | 99 | 99 | |||
Net loss | (50,183) | (50,183) | |||
Ending balance at Dec. 31, 2017 | $ 98,887 | $ 297,459 | $ (198,502) | $ (70) | |
Ending balance, shares at Dec. 31, 2017 | 23,472,430 | 23,472,430 |
Consolidated statements of sto7
Consolidated statements of stockholders equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock share issuance costs | $ 4,692 | $ 6,245 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | 1. Nature of operations Aquinox Pharmaceuticals, Inc. and its subsidiary, Aquinox Pharmaceuticals (Canada) Inc., (consolidated, the “Company”) is a clinical stage pharmaceutical company developing novel therapeutics for chronic urological conditions marked by inflammation and pain. The Company is focused on leveraging its library of novel compounds that activate SHIP1 (SH2 containing inositol 5’ phosphatase 1) to develop therapeutics for application in inflammation, inflammatory pain, and blood cancers. Aquinox Pharmaceuticals, Inc. was originally incorporated under the name of Aquinox Pharmaceuticals (USA) Inc. on May 31, 2007 in the State of Delaware, United States. On January 27, 2014, Aquinox Pharmaceuticals (USA) Inc. changed its name to Aquinox Pharmaceuticals, Inc. (“Aquinox USA”). Aquinox Pharmaceuticals (Canada) Inc. (“AQXP Canada”) was originally incorporated under the name of 6175813 Canada Inc. on December 26, 2003 under the Canada Business Corporations Act. In May 2014, after a corporate restructuring, the name was changed to Aquinox Pharmaceuticals (Canada) Inc. The Company operates in Vancouver, British Columbia, Canada and San Bruno, California. |
Basis of presentation and summa
Basis of presentation and summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation and summary of significant accounting policies | 2. Basis of presentation and summary of significant accounting policies (a) Basis of presentation The accompanying consolidated financial statements are presented in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The financial results are presented on a consolidated basis. All intercompany transactions are eliminated on consolidation. (b) Capital requirements The Company operates in a capital intensive business. To finance its operations, the Company is likely to require additional capital. The Company may seek to raise funds through equity or debt financing. There is no assurance that financing will be available to the Company or at terms acceptable to the Company. Failure to obtain sufficient funds on acceptable terms can have a negative impact on the Company’s business, results of operations, financial condition, cash flows and future prospects. (c) Foreign currency translation and transactions The functional currency of the Company and its subsidiary is the U.S. dollar. Monetary assets and liabilities of the Company’s operations denominated in a currency other than the U.S. dollar are re-measured Non-monetary Income and expenses are translated at the exchange rates prevailing at each transaction date, with the exception of amortization which is translated at historical exchange rates. Exchange gains and losses on translation are included in the consolidated statements of operations and comprehensive loss. (d) Use of estimates and assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring management estimates include valuation of stock options, amortization and depreciation, accrual of expenses, valuation allowance for deferred income taxes, and contingencies. Actual results could differ from those estimates. (e) Cash and cash equivalents All highly liquid investments with maturities of three months or less at the date of acquisition are considered to be cash equivalents. (f) Short and long-term investments Short-term investments consist of bank term deposits and U.S. government securities with initial maturities of less than a year. Long-term investments consist of U.S. government securities with initial maturities of greater than a year. Short-term investments and long-term investments are both classified as available-for-sale (g) Property and equipment Property and equipment are recorded at cost and are amortized using the straight-line basis over a range of three to five years. Expenditures for improvements to the Company’s office spaces are capitalized and expenditures for maintenance and repairs are expensed as incurred. Tenant improvement allowances and rent holidays are included in deferred rent and recognized as a reduction in deferred rent over the term of the lease. Leasehold improvements are amortized over the lesser of useful life and term of the lease. The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on management’s assessment there were no indicators of impairment of property and equipment as at December 31, 2017 and 2016. (h) Clinical trial accruals As part of the process of preparing its consolidated financial statements, the Company is required to estimate expenses resulting from its obligations under contracts with vendors, consultants and clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations which vary contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company reflects the appropriate clinical trial expenses in the financial statements by matching those expenses with the period in which services and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured by patient progression and the timing of various aspects of the trial. During the course of a clinical trial, the Company adjusts the rate of clinical trial expense recognition if actual results differ from estimates. The Company prepares estimates of accrued expenses as of each balance sheet date in the financial statements based on facts and circumstances known at that time. Although the Company does not expect the estimates to be materially different from amounts actually incurred, the Company’s understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in the Company reporting amounts that are too high or too low for any particular period. The Company’s clinical trial accruals are dependent upon the timely and accurate reporting of contract research organizations and other third-party vendors. (i) Taxes The Company accounts for income taxes using ASC 740, Income Taxes which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In estimating future tax consequences, ASC 740 generally considers all expected future events other than enactments of and changes in the tax law or rates. The measurement of deferred tax assets is reduced, if necessary, by the extent of the valuation allowance. ASC 740 clarifies the criteria that must be met prior to recognition of the financial statement benefit of a position taken in a tax return. ASC 740 provides a benefit recognition model with a two-step “more-likely-than-not” Investment tax credits relating to scientific research and experimental development are accounted for as a reduction in operating expenses. To the extent there is reasonable assurance the credits will be realized, they are recorded in the period the related expenditure is made. If investment tax credit amounts subsequently received are less or more than originally recorded, the difference is treated as a change in estimate. (j) Research and development costs Research and development costs are charged to expense as incurred and include items such as: employee related expenses, including salaries and benefits, expenses incurred under agreements with contract research organizations and investigative sites that conduct clinical trials and preclinical studies, the cost of acquiring, developing and manufacturing clinical trial materials, facilities, and other expenses, which include direct and allocated expenses for rent and maintenance of facilities, and other supplies and costs associated with clinical trials, preclinical activities, and regulatory operations. Development costs are expensed in the period incurred unless management believes a development project meets generally accepted accounting criteria for deferral and amortization. No product development expenditures have been deferred to date. The Company records costs for certain development activities, such as clinical trials, based on management’s evaluation of the progress to completion of specific tasks using data such as patient enrollment, clinical site activations, or information provided to the Company by vendors on their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the consolidated financial statements as prepaid or accrued expense. (k) Accounting for stock-based compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost of such award will be recognized over the period during which services are provided in exchange for the award, generally the vesting period. All share-based payments to employees are recognized in the consolidated financial statements based upon their respective grant date fair values. The Company estimates the fair value of options granted using the Black-Scholes option pricing model. This approximation uses assumptions regarding a number of inputs that requires management to make significant estimates and judgments. Prior to the completion of the Company’s initial public offering (“IPO”) in March 2014, the Company’s common stock was not publicly traded. As a result, the expected volatility assumption is based on industry peer information due to insufficient trading history of the Company’s common stock. Additionally, because the Company has no significant history to calculate the expected term, the simplified method calculation is used. (l) Segment reporting The Company operates in one segment, the identification and development of therapeutics for chronic urological conditions marked by inflammation and pain. The Company has significant Canadian operations but its assets are mostly held in the United States, comprising primarily of cash and cash equivalents, short-term investments and long-term investments of $96,230 as of December 31, 2017 (December 31, 2016 - $149,796), with an immaterial amount of long-lived assets in Canada. (m) Net loss per common stock Basic net loss per common stock is computed by dividing loss by the weighted-average number of common stock outstanding during the period. Diluted net loss per common stock is determined using the weighted-average number of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. (n) Fair value of financial instruments ASC 820, Fair Value Measurements Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. (o) Concentration of credit risk Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments and long-term investments. Cash, cash equivalents and investments are invested in accordance with the Company’s investment policy. The primary objective for the Company’s investment portfolio is the preservation of capital and maintenance of liquidity and includes guidelines on the quality of financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. (p) Recently issued and recently adopted accounting standards The Company adopted FASB ASU 2015-17 The Company adopted FASB ASU 2016-09 In January 2016, the FASB issued ASU 2016-01 825-10): 2016-01 In February 2016, the FASB issued ASU 2016-02 right-of-use 2016-02, 2016-02 2016-02 (q) Risks and uncertainties The Company is subject to numerous risks and uncertainties. These risks, among others, included the following: • the Company has no source of revenue, has an accumulated deficit of $198.5 million as of December 31, 2017, may never become profitable and may incur substantial and increasing net losses for the foreseeable future as it continues development of, seeks regulatory approvals for, and potentially begins to commercialize rosiptor, its lead product candidate, and any future product candidates; • the Company is likely to require additional capital to finance its operations which may not be available to it on acceptable terms, or at all; • the Company’s success is primarily dependent on the successful development, regulatory approval and commercialization of rosiptor, its lead product candidate, and any future product candidates; • SHIP1 has not been validated as a target for the treatment of any disease; • the Company is subject to regulatory approval processes that are lengthy, time consuming and inherently unpredictable; the Company may not be able to obtain approval for rosiptor or any future product candidates from the U.S. Food and Drug Administration, or FDA, or foreign regulatory authorities; • the Company’s intellectual property rights may be subject to claims by third parties and can be difficult and costly to protect; • the Company may not be able to recruit or retain key employees, including its senior management team; • the Company depends on the performance of third parties, including contract research organizations and third-party manufacturers; and • the Company faces competition from other pharmaceutical and biotechnology companies, academic institutions, governmental agencies, and public and private research institutions, among others. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | 3. Cash and cash equivalents (in thousands) DECEMBER 31, DECEMBER 31, Cash $ 12,583 $ 3,726 Cash equivalents 39,449 28,575 $ 52,032 $ 32,301 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | 4. Property and equipment DECEMBER 31, 2017 (in thousands) COST ACCUMULATED NET BOOK VALUE Leasehold improvements $ 715 $ 259 $ 456 Office furniture, equipment and systems 725 276 449 $ 1,440 $ 535 $ 905 DECEMBER 31, 2016 (in thousands) COST ACCUMULATED NET BOOK VALUE Leasehold improvements $ 490 $ 77 $ 413 Office furniture, equipment and systems 534 98 436 $ 1,024 $ 175 $ 849 |
Accounts payable and other liab
Accounts payable and other liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts payable and other liabilities | 5. Accounts payable and other liabilities (in thousands) DECEMBER 31, DECEMBER 31, Trade accounts payable $ 6,016 $ 6,860 Accrued clinical/preclinical expenses 2,667 1,381 Accrued compensation and vacation 1,553 1,024 Other liabilities 720 254 $ 10,956 $ 9,519 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 6. Other liabilities (in thousands) DECEMBER 31, 2017 DECEMBER 31, Capital lease obligations (a) $ 33 $ 47 Deferred rent liability 453 150 $ 486 $ 197 (a) Capital lease obligations The Company leases office equipment under capital leases with interest rates ranging from 6.94% to 8.56% per annum. At December 31, 2017, the future payments under the Company’s capital leases were as follows: (in thousands) AMOUNT 2018 $ 19 2019 19 2020 17 Total minimum lease payments 55 Less: amount representing interest (6 ) Present value of future minimum lease payments 49 Less: current portion (16 ) Capital lease obligations, net of current portion - December 31, 2017 $ 33 The net book value of the office equipment under capital leases as of December 31, 2017 and 2016 was $0.1 million and $0.1 million, respectively, with an immaterial amount related to accumulated depreciation. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' equity | 7. Stockholders’ equity (a) Common stock Aquinox USA is authorized to issue 50,000,000 shares of common stock with a par value of $0.000001 per share (December 31, 2016 – 50,000,000). As of December 31, 2017, total number of shares of common stock issued and outstanding was 23,472,430 (December 31, 2016 – 23,423,150). (b) Preferred stock Aquinox USA is authorized to issue 5,000,000 shares of preferred stock with a par value of $0.000001 per share (December 31, 2016 – 5,000,000). As of December 31, 2017 and December 31, 2016, no shares of preferred stock were issued or outstanding. (c) Public offerings On September 15, 2015, the Company completed an underwritten public offering of 6,325,000 shares of its common stock at a price to the public of $15.50 per share. The aggregate net proceeds received by the Company from the offering, net of underwriting discounts and commissions and offering costs of approximately $6.2 million, were $91.8 million. On September 23, 2016, the Company completed an underwritten public offering of 6,152,500 shares of its common stock at a price to the public of $12.25 per share. The aggregate net proceeds received by the Company from the offering, net of underwriting discounts and commissions and offering costs of approximately $4.7 million, were $70.7 million. (d) Stock option plan On January 27, 2014, the stockholders of Aquinox USA approved a 2014 Equity Incentive Plan (“2014 Plan”). The 2014 Plan became effective on the date of the prospectus for the IPO, March 6, 2014. The 2014 Plan is the successor to and continuation of the Joint Canadian Stock Option Plan (the “2006 Plan”). No further grants will be made under the 2006 Plan. The 2014 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of equity awards to employees, directors, and consultants. As of December 31, 2017, the maximum number of shares of common stock that may be issued under the 2014 Plan was 2,856,403. The number of shares of common stock reserved for issuance under the 2014 Plan will increase by the number of shares subject to stock options granted under the 2006 Plan that would have otherwise returned to the 2006 Plan, such as upon the expiration or termination of a stock award prior to vesting. As of December 31, 2017, there were 323,310 shares subject to stock options granted under the 2006 Plan. Additionally, the number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year for a period of up to 10 years, beginning on January 1, 2015 and ending on and including January 1, 2024, by 4% of the total number of shares of capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the board of directors. At December 31, 2017, the number of shares available to be granted under the 2014 Plan was 1,110,546 (December 31, 2016—913,720). Stock option transactions and the number of stock options outstanding are summarized below: NUMBER OF SHARES WEIGHTED WEIGHTED (IN YEARS) AGGREGATE Outstanding at December 31, 2016 1,378,352 $ 9.38 7.81 $9,829 Options granted 837,540 16.63 Options exercised (49,280 ) 9.10 Options forfeited (97,445 ) 12.29 Outstanding at December 31, 2017 2,069,167 $ 12.18 7.76 $3,187 Exercisable as of December 31, 2017 912,098 $ 9.52 6.35 $2,248 During the year ended December 31, 2017, the Company granted 756,540 stock options to employees and 81,000 stock options to non-employee thirty-six non-employee 10-year During the year ended December 31, 2017, 49,280 shares of common stock were issued upon exercise of options with an aggregate intrinsic value of $0.2 million. (e) Stock-based compensation The fair value of stock options granted is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: YEARS ENDED 2017 2016 2015 Expected volatility 84 % 82 % 97 % Expected dividends 0 % 0 % 0 % Expected terms (years) 6.00 6.00 6.00 Risk free rate 1.90 % 1.24 % 1.48 % Weighted average grant-date fair value of stock options $ 11.85 $ 6.11 $ 8.91 Stock options are granted with exercise prices as determined by the Board of Directors at the date of grant. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As prior to the completion of the IPO in March 2014, the Company was a private company, the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted. The Company has based its expected term for awards issued to employees on the simplified method, which represents the average period from vesting to the expiration of the stock option. In addition, the Company does not have sufficient trading history for the Company’s common stock, and therefore, the expected stock price volatility for the Company’s common stock was estimated by taking the average historical price volatility for industry peers. The Company has never declared or paid any cash dividends to common stockholders and does not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. The risk-free interest rate was based on the yields of treasury securities with maturities similar to the expected term of the options for each option group. The Company amortizes the fair value of the stock options on a straight-line basis over the applicable requisite service periods of the awards, which is generally the vesting period. Stock-based compensation expense charged to operating expenses was $3.8 million, $2.0 million and $1.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. Total unrecognized compensation cost for all stock-based compensation plans was $10.1 million and $4.6 million as of December 31, 2017 and December 31, 2016, respectively, which is expected to be recognized over a weighted-average period of 2.72 years (December 31, 2016 – 2.82 years). |
Other income (expenses)
Other income (expenses) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other income (expenses) | 8. Other income (expenses) YEARS ENDED (in thousands) 2017 2016 2015 Change in fair value of derivative liability $ — $ 81 $ (52 ) Foreign exchange losses (19 ) (13 ) (476 ) Interest income 998 619 108 Miscellaneous expenses (39 ) (43 ) (100 ) $ 940 $ 644 $ (520 ) |
Net loss per common stock
Net loss per common stock | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net loss per common stock | 9. Net loss per common stock Basic and diluted net loss per common stock is computed by dividing net loss by the weighted average number of common stock outstanding. The Company excluded outstanding stock options and common stock warrants from the calculation of basic and diluted net loss per common stock as the effect would have been antidilutive for all periods presented. The following have been excluded from the computation of basic and diluted net loss per common stock as their effect would have been antidilutive: DECEMBER 31, DECEMBER 31, DECEMBER 31, Outstanding stock options 2,069,167 1,378,352 865,457 Common stock warrants — — 11,363 Total 2,069,167 1,378,352 876,820 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 10. Income taxes Income tax recovery varies from the amounts that would be computed by applying the expected Canadian income tax rate (26%) and U.S. income tax rates (40.75%). The combined Canadian and U.S. income tax rates of 27.89% (2016 – 27.28%; 2015 –27.4%) was applied to loss before income taxes as shown in the following table: YEARS ENDED 2017 2016 2015 Computed taxes at combined Canadian and U.S. tax rates (27.9 )% (27.3 )% (27.4 )% Change in tax rate (3.6 ) — 0.1 Non-deductible 2.2 1.8 2.0 Research and development credits (0.9 ) (3.5 ) — Change in valuation allowance 25.4 28.4 25.3 Effect of the U.S. Tax Cuts and Jobs Act 4.6 — — Other 0.2 0.6 — Income tax recovery — — — On December 22, 2017, the U.S. passed into law H.R.1 (originally known as the “Tax Cuts and Jobs Act”), or the Act, which significantly overhaul the U.S. tax system. Significant changes to the Internal Revenue Code include a reduction in the U.S. federal corporate tax rate from 35% to 21%. The Company’s accounting for the provisions of the Act, based on the Company’s understanding of the Act and the latest guidance available, resulted in a $2.3 million reduction in its net deferred income tax assets as of December 31, 2017 to reflect the new statutory tax rate. This reduction to the net deferred income tax assets was fully offset by a corresponding reduction in the valuation allowance. (in thousands) YEARS ENDED DECEMBER 31, Net loss before taxes: 2017 2016 2015 Canada $ (43,758 ) $ (31,737 ) $ (18,382 ) U.S. (6,425 ) (5,265 ) (3,478 ) Total $ (50,183 ) $ (37,002 ) $ (21,860 ) Deferred income tax assets and liabilities result from the temporary differences between the amount of assets and liabilities recognized for financial statement and income tax purposes. The significant components of the deferred income tax assets are as follows: (in thousands) DECEMBER 31, DECEMBER 31, Canadian net operating losses $ 35,605 $ 24,049 U.S. net operating losses 3,749 3,889 Research and development deductions and credits 8,234 7,331 Other 1,810 1,389 Less: valuation allowance (49,398 ) (36,658 ) Net deferred income tax assets $ — $ — At December 31, 2017, the Company had Canadian net operating losses carried forward for tax purposes which were available to reduce taxable income of future years of approximately $131.9 million (December 31, 2016—approximately $92.5 million) expiring commencing in 2025 through 2037, and U.S. net operating losses carried forward for tax purposes which were available to reduce taxable income of future years of approximately $23.2 million (December 31, 2016—approximately $11.1 million). The Company also had unclaimed Canadian tax deductions with no expiry for scientific research and experimental development expenditures of approximately $16.8 million at December 31, 2017 (December 31, 2016–approximately $15.6 million). In addition, at December 31, 2017, the Company had approximately $4.5 million (December 31, 2016—approximately $4.0 million) of investment tax credits available to offset Canadian federal and provincial taxes payable expiring commencing in 2019 through 2036. Under ASC 740, the benefit of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of the benefit of an uncertain tax position may be recognized if the position has less than a 50% likelihood of being sustained. The Company currently does not have any unrecognized tax benefits of uncertain tax positions. The Company does not expect any significant increases to its unrecognized tax benefits within twelve months of the reporting date. The Company currently files income tax returns in the United States and Canada, the jurisdictions in which the Company believes that it is subject to tax. Further, while the statute of limitations in each jurisdiction where an income tax return has been filed generally limits the examination period, as a result of loss carry-forwards, the limitation period for examination generally does not expire until several years after the loss carry-forwards are utilized. Other than routine audits by tax authorities for tax credits and tax refunds that the Company has claimed, the Company is not aware of any other material income tax examination currently in progress by any taxing jurisdiction. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial instruments | 11. Financial instruments Securities classified as available for sale The Company’s short-term and long-term investments consist of available-for-sale (in thousands) December 31, 2017 Amortized cost Gross Gross Fair value Short-term investments: U.S. treasury securities $ 56,123 $ — $ (70 ) $ 56,053 Contractual maturities: Due within one year $ 56,123 $ 56,053 December 31, 2016 Amortized cost Gross Gross Fair value Short-term investments: U.S. treasury securities $ 70,819 $ — $ (61 ) $ 70,758 Long-term investments: U.S. treasury securities $ 50,155 $ — $ (109 ) $ 50,046 Contractual maturities: Due within one year $ 70,819 $ 70,758 Due after one year through two years 50,155 50,046 The aggregate estimated fair value of the Company’s investments with unrealized losses are as follows: Period of continuous unrealized loss (in thousands) 12 months or less Greater than 12 months Fair value Gross Fair value Gross December 31, 2017 U.S. treasury securities $ 15,983 $ (27 ) $ 40,070 $ (43 ) December 31, 2016 U.S. treasury securities $ 120,804 $ (170 ) N/A N/A Fair value of financial instruments The fair value of the Company’s financial instruments are determined according to a fair value hierarchy that prioritizes the inputs and assumptions used, and the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The determination of a financial instrument’s level within the fair value hierarchy is based on an assessment of the lowest level of any input that is significant to the fair value measurement. The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The carrying amounts of certain of the Company’s financial instruments including cash, cash equivalents, receivables, accounts payable and other liabilities, approximate their fair values because of their nature and/or short maturities. The Company holds short and long-term investments that are classified as available-for-sale The following tables present the fair value of our financial instruments that are measured at fair value on a recurring basis: (in thousands) QUOTED (LEVEL 1) OTHER (LEVEL 2) SIGNIFICANT UN-OBSERVABLE (LEVEL 3) TOTAL BALANCES – December 31, 2017 Short-term investments – U.S. treasury securities $ 56,053 $ — $ — $ 56,053 $ 56,053 $ — $ — $ 56,053 BALANCES – December 31, 2016 Short-term investments – U.S. treasury securities $ 70,758 $ — $ — $ 70,758 Long-term investments – U.S. treasury securities 50,046 — — 50,046 $ 120,804 $ — $ — $ 120,804 Level 1 instruments, which include investments that are valued based on quoted market prices in active markets, consisted of U.S. treasury securities. Level 2 instruments include investments for which all significant inputs are observable. The Company had no Level 2 investments at December 31, 2017 and December 31, 2016. Level 3 instruments include investments for which significant inputs to the fair value of the assets or liabilities are unobservable and are supported by little or no market activity. The Company had no Level 3 investments at December 31, 2017 and December 31, 2016. There were no transfers between Levels 1, 2, and 3 during the years ended December 31, 2017 and December 31, 2016. At December 31, 2017, the Company had short-term investments consisting of available-for-sale |
License and patent agreements
License and patent agreements | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
License and patent agreements | 12. License and patent agreements The Company has an agreement with Biolipox AB of Sweden for patent rights relating exclusively or principally to a specific class of compounds, which include rosiptor. The terms of the agreement required the Company to pay CAD $50,000 immediately, CAD $250,000 in shares of common stock upon the first submission to the FDA of an Investigational New Drug (IND) for a compound from the acquired class of compounds, and CAD $3.0 million upon the advancement of one of the compounds from the acquired class of compounds into a Phase 3 clinical trial. Certain other milestone payments, totaling CAD $1.5 million are payable upon the first commercial sale following regulatory approval of the first compound in each of the United States, Europe and Japan. There are no royalty payments due under this agreement. In June 2014, the Company issued 19,762 shares of common stock to Biolipox AB as payment for achievement of the milestone related to the first submission to the FDA of an IND for rosiptor. A CAD $3.0 million milestone payment was paid in November 2016 as a result of the advancement of rosiptor into a Phase 3 clinical trial. The development of the technology is actively proceeding. The Company has an exclusive license agreement with the University of British Columbia for a worldwide license to certain small molecule compounds and pharmaceutical compositions that are modulators of SHIP1 activity. The agreement expires at the earlier of the last expiry of any patent obtained related to the technology or through enactment of one of the termination clauses stipulated in the agreement. The Company paid annual maintenance fees of CAD $1,000 related to this agreement for the year ended December 31, 2017 (December 31, 2016 – CAD $1,000) and have contingent payments totaling up to CAD $2.2 million for the first drug product and CAD $1.5 million for each subsequent drug product plus low single-digit royalties. The Company does not currently have any product candidates under development that are covered by the UBC license agreement. The Company has an agreement with the British Columbia Cancer Agency and StemCell Technologies, Inc. for the assignment to the Company of certain patents to technology relating to SHIP1 in return for low single-digit royalty payment on product sales or low double-digit percentage of sublicense revenue. The agreement is to expire at the later of 20 years from the effective date of the agreement or upon the expiration of the last patent covered by the license. The Company incurred maintenance fees of CAD $5,000 related to this agreement during the years ended December 31, 2017, 2016 and 2015. The Company does not currently have any product candidates under development that are covered by this agreement. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 13. Commitments and contingencies As at December 31, 2017, the Company has obligations to make future minimum payments with respect to operating leases for office space. The Company has a lease agreement for approximately 10,946 square feet of office space in Canada which commenced on November 1, 2016 and expires October 31, 2021, with the option to extend the lease to October 31, 2026. On December 22, 2016, the Company signed a lease agreement for an additional 2,500 square feet of office space in Canada. The lease for the additional 2,500 square feet expires June 30, 2019. In addition to the basic rent, the Company is obligated to pay for taxes, operating costs, utilities, additional services and other amounts. These leases are denominated in Canadian dollars and are included in the table below at their U.S. dollar equivalent. The Company has a lease agreement for approximately 3,520 square feet of office space in San Bruno, California which commenced on January 1, 2016 and expires on December 31, 2018. On January 7, 2017, the Company signed a lease agreement to expand the San Bruno, California office space by an additional 6,019 square feet which is effective February 1, 2017 and expires December 31, 2018. In addition to the basic rent, the Company is obligated to pay for taxes, operating costs, utilities, additional services and other amounts. The lease agreements contain scheduled rent increases, rent holidays and tenant improvement allowance. As such, the Company has recorded a deferred rent liability of $0.5 million as at December 31, 2017. The minimum lease payments under the non-cancelable 2018 2019 2020 2021 Total Operating lease obligations $ 883 $ 403 $ 375 $ 312 $ 1,973 $883 $403 $375 $312 $1,973 During the years ended December 31, 2017, 2016 and 2015, the Company incurred operating lease costs of $0.7 million, $0.4 million and $0.2 million, respectively. In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims. Although the Company cannot predict with assurance the outcome of any litigation, it does not believe there are currently any such actions that, if resolved unfavorable, would have a material impact on the Company’s financial condition, results of operations or cash flows. |
Basis of presentation and sum21
Basis of presentation and summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements are presented in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The financial results are presented on a consolidated basis. All intercompany transactions are eliminated on consolidation. |
Capital requirements | (b) Capital requirements The Company operates in a capital intensive business. To finance its operations, the Company is likely to require additional capital. The Company may seek to raise funds through equity or debt financing. There is no assurance that financing will be available to the Company or at terms acceptable to the Company. Failure to obtain sufficient funds on acceptable terms can have a negative impact on the Company’s business, results of operations, financial condition, cash flows and future prospects. |
Foreign currency translation and transactions | (c) Foreign currency translation and transactions The functional currency of the Company and its subsidiary is the U.S. dollar. Monetary assets and liabilities of the Company’s operations denominated in a currency other than the U.S. dollar are re-measured Non-monetary Income and expenses are translated at the exchange rates prevailing at each transaction date, with the exception of amortization which is translated at historical exchange rates. Exchange gains and losses on translation are included in the consolidated statements of operations and comprehensive loss. |
Use of estimates and assumptions | (d) Use of estimates and assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring management estimates include valuation of stock options, amortization and depreciation, accrual of expenses, valuation allowance for deferred income taxes, and contingencies. Actual results could differ from those estimates. |
Cash and cash equivalents | (e) Cash and cash equivalents All highly liquid investments with maturities of three months or less at the date of acquisition are considered to be cash equivalents. |
Short and long-term investments | (f) Short and long-term investments Short-term investments consist of bank term deposits and U.S. government securities with initial maturities of less than a year. Long-term investments consist of U.S. government securities with initial maturities of greater than a year. Short-term investments and long-term investments are both classified as available-for-sale |
Property and equipment | (g) Property and equipment Property and equipment are recorded at cost and are amortized using the straight-line basis over a range of three to five years. Expenditures for improvements to the Company’s office spaces are capitalized and expenditures for maintenance and repairs are expensed as incurred. Tenant improvement allowances and rent holidays are included in deferred rent and recognized as a reduction in deferred rent over the term of the lease. Leasehold improvements are amortized over the lesser of useful life and term of the lease. The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on management’s assessment there were no indicators of impairment of property and equipment as at December 31, 2017 and 2016. |
Clinical trial accruals | (h) Clinical trial accruals As part of the process of preparing its consolidated financial statements, the Company is required to estimate expenses resulting from its obligations under contracts with vendors, consultants and clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations which vary contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company reflects the appropriate clinical trial expenses in the financial statements by matching those expenses with the period in which services and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured by patient progression and the timing of various aspects of the trial. During the course of a clinical trial, the Company adjusts the rate of clinical trial expense recognition if actual results differ from estimates. The Company prepares estimates of accrued expenses as of each balance sheet date in the financial statements based on facts and circumstances known at that time. Although the Company does not expect the estimates to be materially different from amounts actually incurred, the Company’s understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in the Company reporting amounts that are too high or too low for any particular period. The Company’s clinical trial accruals are dependent upon the timely and accurate reporting of contract research organizations and other third-party vendors. |
Taxes | (i) Taxes The Company accounts for income taxes using ASC 740, Income Taxes which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In estimating future tax consequences, ASC 740 generally considers all expected future events other than enactments of and changes in the tax law or rates. The measurement of deferred tax assets is reduced, if necessary, by the extent of the valuation allowance. ASC 740 clarifies the criteria that must be met prior to recognition of the financial statement benefit of a position taken in a tax return. ASC 740 provides a benefit recognition model with a two-step “more-likely-than-not” Investment tax credits relating to scientific research and experimental development are accounted for as a reduction in operating expenses. To the extent there is reasonable assurance the credits will be realized, they are recorded in the period the related expenditure is made. If investment tax credit amounts subsequently received are less or more than originally recorded, the difference is treated as a change in estimate. |
Research and development costs | (j) Research and development costs Research and development costs are charged to expense as incurred and include items such as: employee related expenses, including salaries and benefits, expenses incurred under agreements with contract research organizations and investigative sites that conduct clinical trials and preclinical studies, the cost of acquiring, developing and manufacturing clinical trial materials, facilities, and other expenses, which include direct and allocated expenses for rent and maintenance of facilities, and other supplies and costs associated with clinical trials, preclinical activities, and regulatory operations. Development costs are expensed in the period incurred unless management believes a development project meets generally accepted accounting criteria for deferral and amortization. No product development expenditures have been deferred to date. The Company records costs for certain development activities, such as clinical trials, based on management’s evaluation of the progress to completion of specific tasks using data such as patient enrollment, clinical site activations, or information provided to the Company by vendors on their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the consolidated financial statements as prepaid or accrued expense. |
Accounting for stock-based compensation | (k) Accounting for stock-based compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost of such award will be recognized over the period during which services are provided in exchange for the award, generally the vesting period. All share-based payments to employees are recognized in the consolidated financial statements based upon their respective grant date fair values. The Company estimates the fair value of options granted using the Black-Scholes option pricing model. This approximation uses assumptions regarding a number of inputs that requires management to make significant estimates and judgments. Prior to the completion of the Company’s initial public offering (“IPO”) in March 2014, the Company’s common stock was not publicly traded. As a result, the expected volatility assumption is based on industry peer information due to insufficient trading history of the Company’s common stock. Additionally, because the Company has no significant history to calculate the expected term, the simplified method calculation is used. |
Segment reporting | (l) Segment reporting The Company operates in one segment, the identification and development of therapeutics for chronic urological conditions marked by inflammation and pain. The Company has significant Canadian operations but its assets are mostly held in the United States, comprising primarily of cash and cash equivalents, short-term investments and long-term investments of $96,230 as of December 31, 2017 (December 31, 2016 - $149,796), with an immaterial amount of long-lived assets in Canada. |
Net loss per common stock | (m) Net loss per common stock Basic net loss per common stock is computed by dividing loss by the weighted-average number of common stock outstanding during the period. Diluted net loss per common stock is determined using the weighted-average number of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. |
Fair value of financial instruments | (n) Fair value of financial instruments ASC 820, Fair Value Measurements Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Concentration of credit risk | (o) Concentration of credit risk Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments and long-term investments. Cash, cash equivalents and investments are invested in accordance with the Company’s investment policy. The primary objective for the Company’s investment portfolio is the preservation of capital and maintenance of liquidity and includes guidelines on the quality of financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. |
Recently issued and recently adopted accounting standards | (p) Recently issued and recently adopted accounting standards The Company adopted FASB ASU 2015-17 The Company adopted FASB ASU 2016-09 In January 2016, the FASB issued ASU 2016-01 825-10): 2016-01 In February 2016, the FASB issued ASU 2016-02 right-of-use 2016-02, 2016-02 2016-02 |
Risks and uncertainties | (q) Risks and uncertainties The Company is subject to numerous risks and uncertainties. These risks, among others, included the following: • the Company has no source of revenue, has an accumulated deficit of $198.5 million as of December 31, 2017, may never become profitable and may incur substantial and increasing net losses for the foreseeable future as it continues development of, seeks regulatory approvals for, and potentially begins to commercialize rosiptor, its lead product candidate, and any future product candidates; • the Company is likely to require additional capital to finance its operations which may not be available to it on acceptable terms, or at all; • the Company’s success is primarily dependent on the successful development, regulatory approval and commercialization of rosiptor, its lead product candidate, and any future product candidates; • SHIP1 has not been validated as a target for the treatment of any disease; • the Company is subject to regulatory approval processes that are lengthy, time consuming and inherently unpredictable; the Company may not be able to obtain approval for rosiptor or any future product candidates from the U.S. Food and Drug Administration, or FDA, or foreign regulatory authorities; • the Company’s intellectual property rights may be subject to claims by third parties and can be difficult and costly to protect; • the Company may not be able to recruit or retain key employees, including its senior management team; • the Company depends on the performance of third parties, including contract research organizations and third-party manufacturers; and • the Company faces competition from other pharmaceutical and biotechnology companies, academic institutions, governmental agencies, and public and private research institutions, among others. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | (in thousands) DECEMBER 31, DECEMBER 31, Cash $ 12,583 $ 3,726 Cash equivalents 39,449 28,575 $ 52,032 $ 32,301 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | DECEMBER 31, 2017 (in thousands) COST ACCUMULATED NET BOOK VALUE Leasehold improvements $ 715 $ 259 $ 456 Office furniture, equipment and systems 725 276 449 $ 1,440 $ 535 $ 905 DECEMBER 31, 2016 (in thousands) COST ACCUMULATED NET BOOK VALUE Leasehold improvements $ 490 $ 77 $ 413 Office furniture, equipment and systems 534 98 436 $ 1,024 $ 175 $ 849 |
Accounts payable and other li24
Accounts payable and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | (in thousands) DECEMBER 31, DECEMBER 31, Trade accounts payable $ 6,016 $ 6,860 Accrued clinical/preclinical expenses 2,667 1,381 Accrued compensation and vacation 1,553 1,024 Other liabilities 720 254 $ 10,956 $ 9,519 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | (in thousands) DECEMBER 31, 2017 DECEMBER 31, Capital lease obligations (a) $ 33 $ 47 Deferred rent liability 453 150 $ 486 $ 197 |
Summary of Future Payments under Capital Leases | At December 31, 2017, the future payments under the Company’s capital leases were as follows: (in thousands) AMOUNT 2018 $ 19 2019 19 2020 17 Total minimum lease payments 55 Less: amount representing interest (6 ) Present value of future minimum lease payments 49 Less: current portion (16 ) Capital lease obligations, net of current portion - December 31, 2017 $ 33 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Stock Option Transactions and Number of Stock Options Outstanding | Stock option transactions and the number of stock options outstanding are summarized below: NUMBER OF SHARES WEIGHTED WEIGHTED (IN YEARS) AGGREGATE Outstanding at December 31, 2016 1,378,352 $ 9.38 7.81 $9,829 Options granted 837,540 16.63 Options exercised (49,280 ) 9.10 Options forfeited (97,445 ) 12.29 Outstanding at December 31, 2017 2,069,167 $ 12.18 7.76 $3,187 Exercisable as of December 31, 2017 912,098 $ 9.52 6.35 $2,248 |
Schedule of Weighted Average Assumptions | The fair value of stock options granted is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: YEARS ENDED 2017 2016 2015 Expected volatility 84 % 82 % 97 % Expected dividends 0 % 0 % 0 % Expected terms (years) 6.00 6.00 6.00 Risk free rate 1.90 % 1.24 % 1.48 % Weighted average grant-date fair value of stock options $ 11.85 $ 6.11 $ 8.91 |
Other income (expenses) (Tables
Other income (expenses) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expenses) | YEARS ENDED (in thousands) 2017 2016 2015 Change in fair value of derivative liability $ — $ 81 $ (52 ) Foreign exchange losses (19 ) (13 ) (476 ) Interest income 998 619 108 Miscellaneous expenses (39 ) (43 ) (100 ) $ 940 $ 644 $ (520 ) |
Net loss per common stock (Tabl
Net loss per common stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Basic and Diluted Net Loss Per Share | The following have been excluded from the computation of basic and diluted net loss per common stock as their effect would have been antidilutive: DECEMBER 31, DECEMBER 31, DECEMBER 31, Outstanding stock options 2,069,167 1,378,352 865,457 Common stock warrants — — 11,363 Total 2,069,167 1,378,352 876,820 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income tax Recovery | Income tax recovery varies from the amounts that would be computed by applying the expected Canadian income tax rate (26%) and U.S. income tax rates (40.75%). The combined Canadian and U.S. income tax rates of 27.89% (2016 – 27.28%; 2015 –27.4%) was applied to loss before income taxes as shown in the following table: YEARS ENDED 2017 2016 2015 Computed taxes at combined Canadian and U.S. tax rates (27.9 )% (27.3 )% (27.4 )% Change in tax rate (3.6 ) — 0.1 Non-deductible 2.2 1.8 2.0 Research and development credits (0.9 ) (3.5 ) — Change in valuation allowance 25.4 28.4 25.3 Effect of the U.S. Tax Cuts and Jobs Act 4.6 — — Other 0.2 0.6 — Income tax recovery — — — |
Schedule of Net (Loss) Income Before Taxes | (in thousands) YEARS ENDED DECEMBER 31, Net loss before taxes: 2017 2016 2015 Canada $ (43,758 ) $ (31,737 ) $ (18,382 ) U.S. (6,425 ) (5,265 ) (3,478 ) Total $ (50,183 ) $ (37,002 ) $ (21,860 ) |
Components of Deferred Income Tax Assets | Deferred income tax assets and liabilities result from the temporary differences between the amount of assets and liabilities recognized for financial statement and income tax purposes. The significant components of the deferred income tax assets are as follows: (in thousands) DECEMBER 31, DECEMBER 31, Canadian net operating losses $ 35,605 $ 24,049 U.S. net operating losses 3,749 3,889 Research and development deductions and credits 8,234 7,331 Other 1,810 1,389 Less: valuation allowance (49,398 ) (36,658 ) Net deferred income tax assets $ — $ — |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Summary of Short-Term and Long-Term Investments of Available-for-Sale Securities | The Company’s short-term and long-term investments consist of available-for-sale (in thousands) December 31, 2017 Amortized cost Gross Gross Fair value Short-term investments: U.S. treasury securities $ 56,123 $ — $ (70 ) $ 56,053 Contractual maturities: Due within one year $ 56,123 $ 56,053 December 31, 2016 Amortized cost Gross Gross Fair value Short-term investments: U.S. treasury securities $ 70,819 $ — $ (61 ) $ 70,758 Long-term investments: U.S. treasury securities $ 50,155 $ — $ (109 ) $ 50,046 Contractual maturities: Due within one year $ 70,819 $ 70,758 Due after one year through two years 50,155 50,046 |
Aggregate Estimated Fair Value of Investments with Unrealized Losses | The aggregate estimated fair value of the Company’s investments with unrealized losses are as follows: Period of continuous unrealized loss (in thousands) 12 months or less Greater than 12 months Fair value Gross Fair value Gross December 31, 2017 U.S. treasury securities $ 15,983 $ (27 ) $ 40,070 $ (43 ) December 31, 2016 U.S. treasury securities $ 120,804 $ (170 ) N/A N/A |
Fair Value of Financial Instruments Measured At Fair Value on a Recurring Basis | The following tables present the fair value of our financial instruments that are measured at fair value on a recurring basis: (in thousands) QUOTED (LEVEL 1) OTHER (LEVEL 2) SIGNIFICANT UN-OBSERVABLE (LEVEL 3) TOTAL BALANCES – December 31, 2017 Short-term investments – U.S. treasury securities $ 56,053 $ — $ — $ 56,053 $ 56,053 $ — $ — $ 56,053 BALANCES – December 31, 2016 Short-term investments – U.S. treasury securities $ 70,758 $ — $ — $ 70,758 Long-term investments – U.S. treasury securities 50,046 — — 50,046 $ 120,804 $ — $ — $ 120,804 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Lease Payments Under Non-cancelable Operating Leases | The minimum lease payments under the non-cancelable 2018 2019 2020 2021 Total Operating lease obligations $ 883 $ 403 $ 375 $ 312 $ 1,973 $883 $403 $375 $312 $1,973 |
Nature of operations - Addition
Nature of operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Entity Information [Line Items] | |
Date of incorporation | May 31, 2007 |
Aquinox Pharmaceuticals (Canada) Inc. [Member] | |
Entity Information [Line Items] | |
Date of incorporation | Dec. 26, 2003 |
Basis of presentation and sum33
Basis of presentation and summary of significant accounting policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | ||
Operating segment | Segment | 1 | |
Total Assets | $ 110,329,000 | $ 154,380,000 |
Accumulated deficit | 198,502,000 | 148,278,000 |
United States [Member] | ||
Significant Accounting Policies [Line Items] | ||
Total Assets | $ 96,230 | $ 149,796 |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives of property and equipment | 3 years | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives of property and equipment | 5 years |
Cash and cash equivalents - Sch
Cash and cash equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 12,583 | $ 3,726 | ||
Cash equivalents | 39,449 | 28,575 | ||
Cash and cash equivalents | $ 52,032 | $ 32,301 | $ 39,526 | $ 14,906 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | $ 1,440 | $ 1,024 |
Property and equipment, accumulated amortization | 535 | 175 |
Property and equipment, net book Value | 905 | 849 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 715 | 490 |
Property and equipment, accumulated amortization | 259 | 77 |
Property and equipment, net book Value | 456 | 413 |
Office Furniture, Equipment and Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 725 | 534 |
Property and equipment, accumulated amortization | 276 | 98 |
Property and equipment, net book Value | $ 449 | $ 436 |
Accounts Payable and Other Li36
Accounts Payable and Other Liabilities - Schedule of Accounts Payable and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 6,016 | $ 6,860 |
Accrued clinical/preclinical expenses | 2,667 | 1,381 |
Accrued compensation and vacation | 1,553 | 1,024 |
Other liabilities | 720 | 254 |
Accounts payable and other liabilities | $ 10,956 | $ 9,519 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities [Abstract] | ||
Capital lease obligations | $ 33 | $ 47 |
Deferred rent liability | 453 | 150 |
Other liabilities | $ 486 | $ 197 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - Office Furniture, Equipment and Systems [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Liabilities [Line Items] | ||
Net book value of capital leases | $ 0.1 | $ 0.1 |
Minimum [Member] | ||
Other Liabilities [Line Items] | ||
Interest rate on capital leases | 6.94% | |
Maximum [Member] | ||
Other Liabilities [Line Items] | ||
Interest rate on capital leases | 8.56% |
Other Liabilities - Summary of
Other Liabilities - Summary of Future Payments under Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 19 | |
2,019 | 19 | |
2,020 | 17 | |
Total minimum lease payments | 55 | |
Less: amount representing interest | (6) | |
Present value of future minimum lease payments | 49 | |
Less: current portion | (16) | |
Capital lease obligations, net of current portion - December 31, 2017 | 33 | $ 47 |
Present value of future minimum lease payments | $ 49 |
Stockholders' equity - Addition
Stockholders' equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Sep. 23, 2016 | Sep. 15, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | ||||
Common stock, par value | $ 0.000001 | $ 0.000001 | ||||
Common stock, shares issued | 23,472,430 | 23,423,150 | ||||
Common stock, shares outstanding | 23,472,430 | 23,423,150 | ||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||
Preferred stock, par value | $ 0.000001 | $ 0.000001 | ||||
Preferred stock, shares issued | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Underwriting commissions and offering costs | $ 4,692 | $ 6,245 | ||||
Aggregate net proceeds from public offering, net of underwriting commissions | $ 70,676 | 91,793 | ||||
Shares of common stock reserved for issuance description | Additionally, the number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year for a period of up to 10 years, beginning on January 1, 2015 and ending on and including January 1, 2024, by 4% of the total number of shares of capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the board of directors. | |||||
Shares of common stock reserved for issuance percentage | 4.00% | |||||
Years of increase in shares of common stock reserved for issuance | 10 years | |||||
Stock options outstanding | 2,069,167 | 1,378,352 | ||||
Stock options granted | 837,540 | |||||
Stock options granted, exercise price per share | $ 16.63 | |||||
Common stock issued upon exercise of options | 49,280 | |||||
Common stock issued upon exercise of options aggregate intrinsic value | $ 200 | |||||
Stock-based compensation expense | 3,800 | $ 2,000 | $ 1,500 | |||
Unrecognized stock-based compensation cost | $ 10,100 | $ 4,600 | ||||
Unrecognized stock-based compensation cost, weighted-average period recognized | 2 years 8 months 19 days | 2 years 9 months 25 days | ||||
Common Stock [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Common stock, shares outstanding | 23,472,430 | 23,423,150 | 17,211,986 | 10,695,108 | ||
Sale of shares under public offering | 6,152,500 | 6,325,000 | 6,152,500 | 6,325,000 | ||
Sale of shares under public offering, price per share | $ 12.25 | $ 15.50 | ||||
Underwriting commissions and offering costs | $ 4,700 | $ 6,200 | ||||
Aggregate net proceeds from public offering, net of underwriting commissions | $ 70,700 | $ 91,800 | ||||
Common stock issued upon exercise of options | 49,280 | 55,663 | 191,878 | |||
Employees [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options granted | 756,540 | |||||
Employees [Member] | Minimum [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options granted, exercise price per share | $ 10.91 | |||||
Employees [Member] | Maximum [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options granted, exercise price per share | $ 17.35 | |||||
Employees [Member] | One Year after the Beginning of the Vesting Period [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options, vesting percentage | 25.00% | |||||
Employees [Member] | Condition (i) [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options, vesting period | 1 year | |||||
Employees [Member] | Condition (ii) [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options, vesting period | 3 years | |||||
Non-Employee Directors [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options granted | 81,000 | |||||
Stock options granted, exercise price per share | $ 13.74 | |||||
Non-Employee Directors [Member] | Condition (i) [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options, vesting period | 1 year | |||||
Non-Employee Directors [Member] | Condition (ii) [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options, vesting period | 3 years | |||||
Equity Incentive Plan 2014 [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Maximum number of shares of common stock that may be issued | 2,856,403 | |||||
Shares available to be granted | 1,110,546 | 913,720 | ||||
Stock options, expiration period | 10 years | |||||
Equity Incentive Plan 2006 [Member] | ||||||
Equity Transactions And Share Based Compensation [Line Items] | ||||||
Stock options outstanding | 323,310 |
Stockholders' equity - Schedule
Stockholders' equity - Schedule of Stock Option Transactions and Number of Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options Outstanding, Number of Shares, beginning balance | 1,378,352 | |
Options granted, Number of Shares | 837,540 | |
Options exercised, Number of Shares | (49,280) | |
Options forfeited, Number of Shares | (97,445) | |
Options Outstanding, Number of Shares, ending balance | 2,069,167 | 1,378,352 |
Exercisable, Number of Shares, ending balance | 912,098 | |
Options Outstanding, Weighted Average Exercise Price, beginning balance | $ 9.38 | |
Options granted, Weighted Average Exercise Price | 16.63 | |
Options exercised, Weighted Average Exercise Price | 9.10 | |
Options forfeited, Weighted Average Exercise Price | 12.29 | |
Options Outstanding, Weighted Average Exercise Price, ending balance | 12.18 | $ 9.38 |
Exercisable, Weighted Average Exercise Price, ending balance | $ 9.52 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years), ending balance | 7 years 9 months 3 days | 7 years 9 months 22 days |
Exercisable, Weighted Average Remaining Contractual Life (Years), ending balance | 6 years 4 months 6 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 3,187 | $ 9,829 |
Exercisable, Aggregate Intrinsic Value | $ 2,248 |
Stockholders' equity - Schedu42
Stockholders' equity - Schedule of Weighted Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected volatility | 84.00% | 82.00% | 97.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected terms (years) | 6 years | 6 years | 6 years |
Risk free rate | 1.90% | 1.24% | 1.48% |
Weighted average grant-date fair value of stock options | $ 11.85 | $ 6.11 | $ 8.91 |
Other Income - Schedule of Othe
Other Income - Schedule of Other Income Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Change in fair value of derivative liability | $ 81 | $ (52) | |
Foreign exchange losses | $ (19) | (13) | (476) |
Interest income | 998 | 619 | 108 |
Miscellaneous expenses | (39) | (43) | (100) |
Other income (expenses) | $ 940 | $ 644 | $ (520) |
Net loss per common stock - Sch
Net loss per common stock - Schedule of Antidilutive Securities Excluded from Computation of Basic and Diluted Net Loss Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of basic and diluted net loss per share | 2,069,167 | 1,378,352 | 876,820 |
Outstanding Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of basic and diluted net loss per share | 2,069,167 | 1,378,352 | 865,457 |
Warrants to Purchase Common Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of basic and diluted net loss per share | 11,363 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Disclosure [Line Items] | ||||
Expected Canadian income tax rate | 26.00% | |||
Expected U.S. income tax rates | 40.75% | |||
Combined Canadian and US expected income tax rates | (27.90%) | (27.30%) | (27.40%) | |
Reduction in net deferred tax assets as per Tax Cuts and Jobs Act | $ 2,300,000 | |||
Uncertain tax position | Less than a 50% | |||
Unrecognized tax benefits | $ 0 | |||
Income tax examination, description | The Company currently files income tax returns in the United States and Canada, the jurisdictions in which the Company believes that it is subject to tax. Further, while the statute of limitations in each jurisdiction where an income tax return has been filed generally limits the examination period, as a result of loss carry-forwards, the limitation period for examination generally does not expire until several years after the loss carry-forwards are utilized. Other than routine audits by tax authorities for tax credits and tax refunds that the Company has claimed, the Company is not aware of any other material income tax examination currently in progress by any taxing jurisdiction. | |||
Domestic Tax Authority [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating losses carried forward for tax purposes | $ 23,200,000 | $ 11,100,000 | ||
Tax Cuts and Jobs Act [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Federal corporate tax | 35.00% | |||
Tax Cuts and Jobs Act [Member] | Scenario, Plan [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Federal corporate tax | 21.00% | |||
CANADA | Minimum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2,025 | |||
CANADA | Maximum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2,037 | |||
CANADA | Foreign Tax Authority [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating losses carried forward for tax purposes | $ 131,900,000 | 92,500,000 | ||
Tax deductions for scientific research and experimental development | 16,800,000 | 15,600,000 | ||
CANADA | Foreign Tax Authority [Member] | Investment Tax Credit Carryforward [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Investment tax credits available to offset Canadian federal | $ 4,500,000 | $ 4,000,000 | ||
CANADA | Foreign Tax Authority [Member] | Investment Tax Credit Carryforward [Member] | Minimum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Investment tax credits available to offset Canadian taxes, expiration dates | 2,019 | |||
CANADA | Foreign Tax Authority [Member] | Investment Tax Credit Carryforward [Member] | Maximum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Investment tax credits available to offset Canadian taxes, expiration dates | 2,036 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income tax Recovery (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Computed taxes at combined Canadian and U.S. tax rates | (27.90%) | (27.30%) | (27.40%) |
Change in tax rate | (3.60%) | 0.10% | |
Non-deductible expenses | 2.20% | 1.80% | 2.00% |
Research and development credits | (0.90%) | (3.50%) | |
Change in valuation allowance | 25.40% | 28.40% | 25.30% |
Effect of the U.S. Tax Cuts and Jobs Act | 4.60% | ||
Other | 0.20% | 0.60% | |
Income tax recovery | 0.00% | 0.00% | 0.00% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net (Loss) Income Before Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net loss before taxes: | |||
Canada | $ (43,758) | $ (31,737) | $ (18,382) |
U.S. | (6,425) | (5,265) | (3,478) |
Total | $ (50,183) | $ (37,002) | $ (21,860) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets, Net [Abstract] | ||
Canadian net operating losses | $ 35,605 | $ 24,049 |
U.S. net operating losses | 3,749 | 3,889 |
Research and development deductions and credits | 8,234 | 7,331 |
Other | 1,810 | 1,389 |
Less: valuation allowance | (49,398) | (36,658) |
Net deferred income tax assets | $ 0 | $ 0 |
Financial instruments - Summary
Financial instruments - Summary of Short-Term and Long-Term Investments of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due within one year, Amortized cost | $ 56,123 | $ 70,819 |
Due within one year, Fair value | 56,053 | 70,758 |
Due after one year through two years, Amortized cost | 50,155 | |
Due after one year through two years, Fair value | 50,046 | |
Short-term Investments [Member] | U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 56,123 | 70,819 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (70) | (61) |
Fair value | $ 56,053 | 70,758 |
Long-term Investments [Member] | U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 50,155 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (109) | |
Fair value | $ 50,046 |
Financial instruments - Aggrega
Financial instruments - Aggregate Estimated Fair Value of Investments with Unrealized Losses (Detail) - U.S. Treasury Securities [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Period of continuous unrealized loss, 12 months or less, Fair value | $ 15,983 | $ 120,804 |
Period of continuous unrealized loss, 12 months or less, Gross unrealized losses | (27) | $ (170) |
Period of continuous unrealized loss, Greater than 12 months, Fair value | 40,070 | |
Period of continuous unrealized loss, Greater than 12 months, Gross unrealized losses | $ (43) |
Financial instruments - Fair Va
Financial instruments - Fair Value of Financial Instruments Measured At Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 56,053 | $ 70,758 |
Long-term investments | 50,046 | |
Fair Value of Financial instruments | 56,053 | 120,804 |
U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 56,053 | 70,758 |
Long-term investments | 50,046 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of Financial instruments | 56,053 | 120,804 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 56,053 | 70,758 |
Long-term investments | $ 50,046 |
Financial instruments - Additio
Financial instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Financial instruments | $ 56,053,000 | $ 120,804,000 | |
Short term investments consisting of available for sale securities | 56,053,000 | 70,758,000 | |
Net realized gains for securities | 900,000 | 600,000 | $ 100,000 |
Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Financial instruments | $ 0 | $ 0 |
License and Patent Agreements -
License and Patent Agreements - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2016CAD ($) | Jun. 30, 2014shares | Aug. 31, 2009CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) | Dec. 31, 2015CAD ($) | |
Biolipox AB [Member] | |||||||
Patent Licenses [Line Items] | |||||||
License fee | $ 50,000 | ||||||
Value of common stock shares issued for license fee | 250,000 | ||||||
Payment of milestone | $ 3,000,000 | ||||||
Amount of development milestones payment | 3,000,000 | ||||||
Additional milestone payment payable | $ 1,500,000 | ||||||
Royalty payments | $ 0 | ||||||
Biolipox AB [Member] | Goods and Services Exchanged for Equity Instrument [Member] | |||||||
Patent Licenses [Line Items] | |||||||
Number of common stock issued for payment for achievement of milestone | shares | 19,762 | ||||||
SHIP1 Product Candidates [Member] | |||||||
Patent Licenses [Line Items] | |||||||
License agreement, maintenance fees | $ 1,000 | $ 1,000 | |||||
SHIP1 Product Candidates [Member] | First Drug Product [Member] | |||||||
Patent Licenses [Line Items] | |||||||
Amount of development milestones payment | 2,200,000 | ||||||
SHIP1 Product Candidates [Member] | Subsequent Drug Product [Member] | |||||||
Patent Licenses [Line Items] | |||||||
Amount of development milestones payment | 1,500,000 | ||||||
SHIP1 Enzyme and Screening of Product Candidates [Member] | |||||||
Patent Licenses [Line Items] | |||||||
License agreement, maintenance fees | $ 5,000 | $ 5,000 | $ 5,000 | ||||
License agreement expiration period | 20 years | 20 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Jan. 07, 2017ft² | Dec. 22, 2016ft² | Nov. 01, 2016ft² | Jan. 01, 2016ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Contingencies And Commitments [Line Items] | |||||||
Deferred rent liability | $ | $ 453 | $ 150 | |||||
Operating lease costs | $ | $ 700 | $ 400 | $ 200 | ||||
CANADA | |||||||
Contingencies And Commitments [Line Items] | |||||||
Lease agreement, commencement date | Dec. 22, 2016 | Nov. 1, 2016 | |||||
Lease agreement, expiration date | Jun. 30, 2019 | Oct. 31, 2021 | |||||
Lease agreement extended period | Oct. 31, 2026 | ||||||
Square feet of office space leased | ft² | 2,500 | 10,946 | |||||
CALIFORNIA | |||||||
Contingencies And Commitments [Line Items] | |||||||
Lease agreement, commencement date | Feb. 1, 2017 | Jan. 1, 2016 | |||||
Lease agreement, expiration date | Dec. 31, 2018 | Dec. 31, 2018 | |||||
Square feet of office space leased | ft² | 6,019 | 3,520 |
Commitments and contingencies55
Commitments and contingencies - Schedule of Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 883 |
2,019 | 403 |
2,020 | 375 |
2,021 | 312 |
Total | $ 1,973 |