Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 11, 2016 | |
Entity Registrant Name | SOPHIRIS BIO INC. | |
Entity Central Index Key | 1,563,855 | |
Trading Symbol | sphs | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 20,816,164 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 5,146,000 | $ 5,881,000 |
Securities available-for-sale | $ 250,000 | 2,500,000 |
Other receivables | 8,000 | |
Prepaid expenses | $ 430,000 | 467,000 |
Total current assets | 5,826,000 | 8,856,000 |
Property and equipment, net | 12,000 | 17,000 |
Other long-term assets | 19,000 | 19,000 |
Total assets | 5,857,000 | 8,892,000 |
Current liabilities: | ||
Accounts payable | 395,000 | 909,000 |
Accrued expenses | 619,000 | 566,000 |
Current portion of promissory notes | 1,824,000 | 1,771,000 |
Total current liabilities | 2,838,000 | 3,246,000 |
Long-term promissory notes | 3,096,000 | 3,572,000 |
Stock-based compensation liability | 121,000 | 168,000 |
Total liabilities | $ 6,055,000 | $ 6,986,000 |
Commitments and contingencies | ||
Shareholders’ (deficit) equity: | ||
Common shares, unlimited authorized shares, no par value; 17,244,736 shares issued and outstanding at March 31, 2016 and December 31, 2015 | $ 113,880,000 | $ 113,880,000 |
Contributed surplus | 17,821,000 | 17,683,000 |
Accumulated other comprehensive gain | 99,000 | 99,000 |
Accumulated deficit | (131,998,000) | (129,756,000) |
Total shareholders’ (deficit) equity | (198,000) | 1,906,000 |
Total liabilities and shareholders’ (deficit) equity | $ 5,857,000 | $ 8,892,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Common shares, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 17,244,736 | 17,244,736 |
Common shares, shares outstanding (in shares) | 17,244,736 | 17,244,736 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating expenses: | ||
Research and development | $ 929 | $ 3,081 |
General and administrative | 1,164 | 1,048 |
Total operating expenses | 2,093 | 4,129 |
Other income (expense): | ||
Interest expense | (150) | (176) |
Interest income | 5 | 8 |
Other expense | (4) | (7) |
Total other expense | (149) | (175) |
Net loss | $ (2,242) | $ (4,304) |
Basic and diluted loss per share (in dollars per share) | $ (0.13) | $ (0.26) |
Weighted average number of outstanding shares – basic and diluted (in shares) | 17,244 | 16,845 |
Other comprehensive income (loss): | ||
Unrealized gain on securities available-for-sale | $ 1 | |
Total other comprehensive loss | $ (2,242) | $ (4,303) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows used in operating activities | ||
Net loss for the period | $ (2,242,000) | $ (4,304,000) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Stock-based compensation | 90,000 | 227,000 |
Amortization of debt discount | 32,000 | 34,000 |
Depreciation of property and equipment | $ 5,000 | 5,000 |
Amortization of discount on securities available-for-sale | 2,000 | |
Foreign exchange transaction loss | 15,000 | |
Other | $ 1,000 | |
Changes in operating assets and liabilities: | ||
Other receivables | $ 8,000 | |
Prepaid expenses | 37,000 | $ 319,000 |
Accounts payable | (514,000) | (1,094,000) |
Accrued expenses | 53,000 | (849,000) |
Net cash used in operating activities | (2,531,000) | (5,644,000) |
Cash flows provided by investing activities | ||
Maturities of securities available-for-sale | 2,500,000 | 12,120,000 |
Purchases of securities available-for-sale | (250,000) | (2,598,000) |
Net cash provided by investing activities | 2,250,000 | $ 9,522,000 |
Cash flows used in financing activities | ||
Principal payments on promissory notes | (455,000) | |
Net cash used in financing activities | (455,000) | |
Effect of exchange rate changes on cash and cash equivalents | 1,000 | $ (7,000) |
Net (decrease) increase in cash and cash equivalents | (735,000) | 3,871,000 |
Cash and cash equivalents at beginning of period | 5,881,000 | 4,123,000 |
Cash and cash equivalents at end of period | 5,146,000 | 7,994,000 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Change in the fair value of stock-based compensation liability recorded to capital surplus | $ (47,000) | $ 11,000 |
Note 1 - Nature of the Business
Note 1 - Nature of the Business | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of the business Company Sophiris Bio Inc., or the Company, or Sophiris, is a clinical-stage biopharmaceutical company currently developing topsalysin for treatment of the symptoms of benign prostatic hyperplasia, or BPH, commonly referred to as an enlarged prostate and for the treatment of localized low to intermediate risk prostate cancer. The Company is governed by the British Columbia Business Corporations Act. The Company’s operations were initially located in Vancouver, British Columbia until April 2011, when its core activities and headquarters relocated from Vancouver, British Columbia to San Diego, California. The condensed consolidated financial statements include the accounts of Sophiris Bio Inc. and its wholly-owned subsidiaries, Sophiris Bio Corp. and Sophiris Bio Holding Corp., both of which are incorporated in the State of Delaware. Liquidity The condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. Taking into consideration the net proceeds of $4.6 million from the Company’s at-the-market financing which closed on May 11, 2016, the Company expects that its cash, cash equivalents and securities available-for-sale will be sufficient to fund its operations for at least twelve months assuming the Company does not begin any new development activities for topsalysin. Any clinical development efforts beyond the Company’s ongoing Phase 2a proof of concept clinical trial in localized low to intermediate risk prostate cancer will require additional funding beyond the proceeds received from the May 11, 2016 financing. The Company is currently evaluating options to further advance the development of topsalysin. The Company could use dilutive funding options such as equity financing and non-dilutive funding options such as a partnering arrangement or royalty agreement to fund future clinical development of topsalysin. While the exact path of how the Company will move this program forward has not been determined, the Company currently believes that a non-dilutive option is the most desirable options given the Company’s current capital requirements and potential access to capital. At this point in time the Company does not plan on pursuing new clinical trials, including a second Phase 3 trial in BPH unless the Company obtains financing. There can be no assurance that such funding will be available on acceptable terms or at all. The Company received a letter dated April 5, 2016 from the Listing Qualifications Department of The NASDAQ Stock Market, or NASDAQ, notifying the Company that it did not meet the minimum stockholders’ equity requirement for continued listing set forth in NASDAQ Listing Rule 5550(b)(1). Delisting from The NASDAQ Capital Market could adversely affect the Company's ability to raise additional financing through the public or private sale of equity securities and would significantly affect the ability of investors to trade the Company's securities. As a result of the completion of the financing, the Company believes that it is now in compliance with NASDAQ Listing Rule 5550(b)(1) but the actual determination of compliance can only be made by the NASDAQ. See additional information related to this issue at footnote number 11. During May 2016, the Company will lay off five of its ten employees in order to conserve its cash resources while it evaluates strategic alternatives, including potential partnering arrangements, financings or a strategic transaction. On May 12, 2016, the Company announced that it had engaged Oppenheimer & Co. Inc. as its financial advisor to assist with the evaluation of various strategic alternatives. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Summary of significant accounting policies Significant accounting policies followed by the Company in the preparation of its condensed consolidated financial statements are as follows: Basis of consolidation The consolidated financial statements include the accounts of the Company, Sophiris Bio Corp. and Sophiris Bio Holding Corp. All intercompany balances and transactions have been eliminated for purposes of consolidation. Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States, or GAAP, for the interim financial information and the rules and regulations of the Securities and Exchange Commission, or SEC, related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual audited financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, or Annual Report, filed with the SEC on March 29, 2016. The accompanying year-end condensed balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. In the opinion of management, these condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. The Company bases estimates and judgments on historical experience and on various other factors that it believes to be reasonable under the circumstances. The significant estimates in these condensed consolidated financial statements include stock-based compensation expense and accrued research and development expenses, including accruals related to the Company’s ongoing clinical trial. The Company’s actual results may differ from these estimates. The Company evaluates its estimates on an ongoing basis. Changes in estimates are reflected in reported results in the period in which they become known by the Company’s management. Foreign currency Historically gains and losses resulting from foreign currency translation were recorded in accumulated other comprehensive gain (loss), which is a separate component of stockholders’ (deficit) equity. Foreign currency transaction gains and losses are recognized as a component of other expense. The Company recorded foreign exchange transaction losses of $4,000 and $7,000 for the three months ended March 31, 2016 and 2015, respectively. Cash and cash equivalents Cash equivalents are short-term, highly liquid investments with an original maturity of three months or less at the date of purchase. Securities Available-for-Sale Investments with an original maturity of more than three months when purchased have been classified by management as securities available-for-sale. Such investments are carried at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive gain (loss) in shareholders’ equity. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in interest income. No other-than-temporary impairments were identified for the investment securities held by the Company as of March 31, 2016 and December 31, 2015. The cost of investment securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in interest income. The cost of securities sold is based on the specific-identification method. The Company has classified all of its investment securities as available-for-sale, including those with maturities beyond one year, as current assets on the consolidated balance sheets based on the highly liquid nature of the investment securities and because these investment securities are considered available for use in current operations. Revenue recognition The Company may enter into product development agreements with collaborative partners for the research and development of products for the treatment of urological diseases. The terms of the agreements may include nonrefundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations. These multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. License fees are recognized as revenue when persuasive evidence of an arrangement exists, the fee is fixed or determinable, delivery or performance has substantially completed and collection is reasonably assured. The Company recognizes up front license payments as revenue upon delivery of the license only if the license has stand-alone value to the customer and if the agreement includes a general right of return, the delivery or performance of undelivered items is considered probable and within the control of the Company. The payment is generally allocated to the separate units of accounting based on their relative selling prices. The selling price of each deliverable is determined using vendor specific objective evidence of selling prices, if it exists; otherwise, third-party evidence of selling prices. If neither vendor specific objective evidence nor third-party evidence exists, the Company uses its’ best estimate of the selling price for each deliverable. The payment allocated is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. Whenever the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue recognized. If the Company cannot reasonably estimate the timing and the level of effort to complete its performance obligations under the arrangement, then revenue under the arrangement is recognized on a straight-line basis over the period the Company is expected to complete its performance obligations. The Company evaluates milestone payments on an individual basis and recognizes revenue from non-refundable milestone payments when the earnings process is complete and the payment is reasonably assured. Non-refundable milestone payments related to arrangements under which the Company has continuing performance obligations are recognized as revenue upon achievement of the associated milestone, provided that (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (ii) the amount of the milestone payment is reasonable in relation to the effort expended or the risk associated with the milestone event. Any amounts received under agreements in advance of performance, if deemed substantive, are recorded as deferred revenue and recognized as revenue as the Company completes its performance obligations. A milestone event is considered substantive if (i) the milestone is commensurate with either (a) the Company’s performance to achieve the milestone or (b) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) it relates solely to past performance and (iii) it is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. If any portion of the milestone payment does not relate to the Company’s performance, does not relate solely to past performance or is refundable or adjustable based on future performance, the milestone is not considered to be substantive. Milestone payments are not bifurcated into substantive and non-substantive components. Payments related to the achievement of non-substantive milestones is deferred and recognized over the Company’s remaining performance period. Royalty revenue will be recognized upon the sale of the related products provided the Company has no remaining performance obligations under the arrangement. Research and development expenses Research and development costs are charged to expense as incurred. Research and development expenses comprise costs incurred in performing research and development activities, including personnel-related costs, stock-based compensation, facilities, research-related overhead, clinical trial costs, contracted services, manufacturing, license fees and other external costs. The Company accounts for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been consumed rather than when the payment is made. Accrued research and development expenses Clinical trial costs are recorded as a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed of the total work over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services based on facts and circumstances known to the Company as of each balance sheet date. However, actual costs and timing of clinical trials are highly uncertain, subject to risks and may change depending upon a number of factors, including the Company’s clinical development plan. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Adjustments to prior period estimates have not been material. Examples of estimated accrued research and development expenses include: • fees to clinical research organizations in connection with clinical studies; • fees to investigative sites in connection with clinical studies; • fees to vendors in connection with preclinical development activities; • fees to vendors associated with the development of companion diagnostics; and • fees to vendors related to product manufacturing, development and distribution of clinical supplies. Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are recorded as a prepaid expense and recognized as expense in the period that the related goods are consumed or services are performed. Stock-based compensation The Company expenses the fair value of employee stock options over the vesting period. Compensation expense is measured using the fair value of the award at the grant date, net of estimated forfeitures, and is adjusted annually to reflect actual forfeitures. The fair value of each stock-based award is estimated using the Black-Scholes pricing model and is expensed using graded amortization over the vesting period. The Company accounts for stock options granted to non-employees, which primarily consist of consultants of the Company, using the fair value approach. Stock options granted to non-employees are subject to revaluation each reporting period over their vesting terms. Prior to the Company’s initial public offering, or IPO, the Company had issued its stock options with a Canadian dollar denominated exercise price. Subsequent to the Company’s IPO, the Company issues its stock options with a U.S. dollar denominated exercise price. Effective November 13, 2013, the Company voluntarily delisted from the Toronto Stock Exchange, or TSX. As a result of the delisting from the TSX and the change in the Company’s functional currency to the U.S. dollar, the stock options granted with exercise prices denominated in Canadian dollars are considered dual indexed as defined in Accounting Standards Codification, or ASC, topic 718, “ Compensation, Stock Compensation” Fair value of financial instruments The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid for to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents and accounts payable and accrued expenses, approximate fair value due to their short maturities. The Company follows ASC 820-10, “ Fair Value Measurements and Disclosures Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, “ Revenue from Contracts with Customers Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. In August 2014, the FASB issued ASU No. 2014-15, “ Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, In February 2016, the FASB issued ASU No. 2016-02, “ Lease (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. |
Note 3 - Net Loss Per Common Sh
Note 3 - Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3. Net loss per common share Basic net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period, without consideration for common shares equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. The following diluted securities have been excluded from the computation of diluted weighted-average shares outstanding as of March 31, 2016 and 2015 as the Company recorded a net loss in all periods and therefore they would be anti-dilutive (in thousands): March 31, 201 6 March 31, 201 5 Options to purchase common shares 1,674 1,639 Common share purchase warrants 590 878 |
Note 4 - Securities Available-f
Note 4 - Securities Available-for-Sale | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. Securities Available-for-Sale Securities available-for-sale consisted of the following as of March 31, 2016 (in thousands): March 31, 201 6 Amortized Unrealized Estimated Cost Gain Loss Fair Value Commercial paper $ 250 $ — $ — $ 250 $ 250 $ — $ — $ 250 The amortized cost and estimated fair value of the Company securities available-for-sale by contractual maturity as of March 31, 2016 are shown below (in thousands): March 31, 201 6 Amortized Unrealized Estimated Cost Gain Loss Fair Value Within one year $ 250 $ — $ — $ 250 After one year — — — — $ 250 $ — $ — $ 250 Securities available-for-sale consisted of the following as of December 31, 2015 (in thousands): December 31, 201 5 Amortized Unrealized Estimated Cost Gain Loss Fair Value Commercial paper $ 750 $ — $ — $ 750 U.S. government sponsored enterprise securities 1,750 — — 1,750 $ 2,500 $ — $ — $ 2,500 The amortized cost and estimated fair value of the Company securities available-for-sale by contractual maturity as of December 31, 2015 are shown below (in thousands): December 31, 201 5 Amortized Unrealized Estimated Cost Gain Loss Fair Value Within one year $ 2,500 $ — $ — $ 2,500 After one year — — — — $ 2,500 $ — $ — $ 2,500 |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurement and Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. Fair value measurement and financial instruments As of March 31, 2016 the Company has $4.5 million of securities consisting of money market funds, commercial paper, and U.S. government sponsored enterprise securities with maturities that range from one day to three months with an overall average time to maturity of approximately one month. The Company has the ability to liquidate these investments without restriction. The Company determines fair value for securities with Level 1 inputs through quoted market prices. The Company determines fair value for securities with Level 2 inputs through broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. The Company’s Level 2 securities have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other observable market data. The pricing services utilize industry standard valuation models, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, and other industry and economic events. The Company’s Level 3 inputs are unobservable inputs based on the Company’s assessment that market participants would use in pricing the instruments. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis for the periods presented (in thousands): March 31 , 201 6 Level 1 Level 2 Level 3 Assets: Money market funds $ 343 $ 343 $ — $ — Commercial paper 1,749 — 1,749 — U.S. government sponsored enterprise securities 2,401 — 2,401 — Total assets $ 4,493 $ 343 $ 4,150 $ — Liabilities: Stock-based compensation liability $ 121 $ — $ — $ 121 Total liabilities $ 121 $ — $ — $ 121 December 31, 201 5 Level 1 Level 2 Level 3 Assets: Money market funds $ 87 $ 87 $ — $ — Commercial paper 1,850 — 1,850 — U.S. government sponsored enterprise securities 5,549 — 5,549 — Total assets $ 7,486 $ 87 $ 7,399 $ — Liabilities: Stock-based compensation liability $ 168 $ — $ — $ 168 Total liabilities $ 168 $ — $ — $ 168 The Company calculates the fair value of the stock-based compensation liability for those stock options with exercise prices denominated in Canadian Dollars (level 3) at each reporting period utilizing a Black-Scholes pricing model. The following inputs were utilized in the Black-Scholes pricing model: March 31, 201 6 December 31, 201 5 Stock price at the end of each reporting period $ 1.44 $ 1.78 Weighted average exercise price $ 13.81 $ 13.12 Risk-free interest rate 0.65 % 0.91 % Volatility 168.75 % 182.74 % Dividend yield 0.00 % 0.00 % Expected life in years 1.30 1.53 Calculated fair value per stock option $ 0.54 $ 0.74 The following table presents a reconciliation of the stock-based compensation liability measured at fair value using unobservable inputs (Level 3) (in thousands): Three Months Ended March 31, 201 6 Liabilities: Balance at beginning of period $ 168 Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus (47 ) Balance at end of period $ 121 The Company recognizes transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers of assets or liabilities between the fair value measurement classifications. |
Note 6 - Prepaid Expenses
Note 6 - Prepaid Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Prepaid Expenses and Other Assets [Text Block] | 6. Prepaid expenses Prepaid expenses as of March 31, 2016 and December 31, 2015 consisted of the following (in thousands): March 31, 201 6 December 31, 201 5 Prepaid insurance $ 158 $ 261 Prepaid research and development expenses 203 176 Other prepaid expenses 69 30 $ 430 $ 467 As of March 31, 2016 and December 31, 2015, prepaid research and development expenses includes $0.2 million for upfront fees paid to our clinical research organization assisting with our on-going clinical trial. The upfront fees will be relieved in future periods based upon work completed. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. Accrued expenses Accrued expenses as of March 31, 2016 and December 31, 2015 consisted of the following (in thousands): March 31, 201 6 December 31, 201 5 Accrued personnel related costs $ 291 $ 224 Accrued interest 38 42 Accrued research and development expenses 20 78 Accrued audit and tax services 130 182 Other accrued expenses 140 40 $ 619 $ 566 |
Note 8 - Promissory Notes
Note 8 - Promissory Notes | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Promissory notes On June 30, 2014, we entered into a $6.0 million Loan and Security Agreement with Oxford Finance LLC. The principal borrowed under the loan bears fixed interest of 9.504% per annum. The Company has the option to prepay the outstanding balance of the loan in full, subject to a prepayment fee of 1% to 3% depending upon when the prepayment occurs. Upon the final repayment of the loan on the maturity date, by prepayment, or upon acceleration, the Company shall pay Oxford an additional fee of 5% of the principal amount of $6.0 million. This additional fee is recorded as a debt discount and is being recognized as interest expense over the life of the loan utilizing the effective interest method. The repayment terms are monthly interest only payments through July 1, 2015 followed by 36 equal monthly payments of principal and interest. In connection with the New Loan, the Company and its subsidiaries granted to Oxford a security interest in all of the Company’s and its subsidiaries’ personal property now owned or hereafter acquired, excluding intellectual property and certain other assets. Oxford has the right to declare a default under the New Loan upon the occurrence of a material adverse change as that is defined under the New Loan, thereby requiring the Company to repay the loan immediately or to attempt to reverse the declaration of default through negotiation or litigation. As of March 31, 2016, the Company was in compliance with all covenants under the credit facility. As of March 31, 2016, the Company was in compliance with all covenants under the loan. As of March 31, 2016, the future contractual principal and final fee payments on our debt obligation are as follows (in thousands): Year 1 $ 1,932 Year 2 2,124 Year 3 1,054 Total $ 5,110 The following table summarizes interest expense (in thousands) for the periods presented: Three Months Ended March 31, 201 6 201 5 Simple interest $ 118 $ 142 Amortization of debt discount 32 34 $ 150 $ 176 The Company calculated the fair value of the secured promissory notes as $4.7 million (Level 3) as of March 31, 2016. The fair value of long-term debt is based on the net present value of calculated interest and principal payments, using an interest rate of 9.5%, which takes into consideration the financial position of the Company and the recent interest rate environment for new debt issuances for comparable companies. The fair value of this equity component was derived using the Black-Scholes valuation model. The Company calculated the promissory notes’ fair value by allocating to equity and the debt based on their respective fair values. |
Note 9 - Common Stock Purchase
Note 9 - Common Stock Purchase Agreement with Aspire Capital | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. Common stock purchase agreement with Aspire Capital On May 16, 2014, the Company entered into a common stock purchase agreement, or the Purchase Agreement, with Aspire Capital Fund, LLC, or Aspire Capital, which provides that Aspire Capital is committed to purchase up to an aggregate of $15.0 million of the Company’s common shares over the approximately 30-month term of the Purchase Agreement. In connection with the execution of the Purchase Agreement, the Company registered 3,409,629 shares on a Form S-1 which could be issued to Aspire Capital in connection with this Purchase Agreement. However, pursuant to the Purchase Agreement, the number of shares that may be issued to Aspire Capital is limited to 3,228,359 shares, which equals 19.99% of the total common shares outstanding and the non-affiliate shares outstanding when the Purchase Agreement was executed, unless shareholder approval is obtained to issue more than 3,228,359 shares. In consideration for entering into the Purchase Agreement, concurrently with the execution of the Purchase Agreement, the Company issued to Aspire Capital 90,635 of the Company’s common shares. Upon the execution of the Purchase Agreement, the Company sold to Aspire Capital 604,230 common shares at $3.31 per share for net proceeds of $1.9 million which was recorded as in increase to common shares on the balance sheet. The Company incurred offering costs of $0.1 million associated with this transaction. During 2015, Aspire Capital purchased 400,000 common shares under the Purchase Agreement, resulting in net proceeds to the Company of $0.8 million. Under the Purchase Agreement, on any trading day on which the closing sale price of the Company’s common shares exceeds $2.00, the Company has the right, in its sole discretion, to present Aspire Capital with a purchase notice, directing Aspire Capital (as principal) to purchase up to 100,000 of the Company’s common shares, per trading day, provided that the aggregate price of each such purchase shall not exceed $1,000,000 per trading day. Future purchases under the Purchase Agreement will be at a per share price equal to the lesser of: • the lowest sale price of the Company’s common shares on the purchase date; or • the arithmetic average of the three lowest closing sale prices for the Company’s common shares during the ten consecutive trading days ending on the trading day immediately preceding the purchase date. |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation Plan | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. Stock-based compensation plan Equity awards The Company’s Amended and Restated 2011 Stock Option plan, or the Plan, provides for the granting of options for the purchase of common shares of the Company at the fair value of the Company’s common shares on the date of the option grant. Options are granted to employees, directors and non-employees. The board of directors or a committee appointed by the board of directors administers the Plan and has discretion as to the number, vesting period and expiry date of each option award. Historically the Company granted options to residents of the United States with an exercise price denominated in Canadian dollars, the functional currency of Sophiris Bio Inc. Inc. prior to the Company’s IPO. The Company grants options with an exercise price denominated in U.S. dollars. In March 2016, the Company registered 40,000 additional common shares issuable pursuant to the Plan. As of March 31, 2016, the Company had 50,521 common shares which were issuable pursuant to the Plan. The Company recognized stock-based compensation expense as follows (in thousands): Three Months Ended March 31, 201 6 201 5 Research and development $ 32 $ 82 General and administrative 58 145 Total $ 90 $ 227 As of March 31, 2016 there was $0.1 million of total unrecognized compensation expense related to non-vested stock awards, which is expected to be recognize over a weighted average period of less than one year. The following table summarizes stock option activity, including options issued to employees, directors and non-employees (in thousands, except per share): Options O utstanding Weighted A verage E xercise P rice Currency Outstanding at January 1, 2016 1,677 $ 5.52 US Options expired 3 36.25 US Outstanding at March 31, 2016 1,674 $ 5.46 US The total amount of options outstanding at March 31, 2016 include options with exercise prices denominated in Canadian dollars and U.S. dollars. The Canadian dollar amounts have been converted to U.S. dollars for purposes of the weighted average exercise price calculation using the grant date exchange rate for each Canadian dollar denominated option. |
Note 11 - NASDAQ Listing
Note 11 - NASDAQ Listing | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
NASDAQ Stock Market [Text Block] | 11. NASDAQ Listing Minimum Stockholders’ Equity Requirement The Company received a letter dated April 5, 2016 from the Listing Qualifications Department of The NASDAQ Stock Market, or NASDAQ, notifying the Company that it did not meet the minimum stockholders’ equity requirement for continued listing set forth in NASDAQ Listing Rule 5550(b)(1). Under the NASDAQ listing rules, the Company has 45 calendar days to submit a Compliance Plan, or Plan, to regain compliance with the minimum stockholder’s equity requirement. If the Company’s Plan is accepted, NASDAQ can grant an extension of up to 180 calendar days from April 5, 2016 for the Company to gain compliance with the minimum stockholders’ equity requirement. If the Plan is not accepted, the Company will have the opportunity to appeal the decision before the NASDAQ Listing Qualifications Panel. On May 11, 2016, the Company completed an at-the-market offering in which the Company raised net proceeds of approximately $4.6 million. As a result of the completion of this financing, the Company believes that it is now in compliance with NASDAQ Listing Rule 5550(b)(1) but the actual determination of compliance can only be made by the NASDAQ. The Company plans to submit its Plan to NASDAQ no later than May 20, 2016. |
Note 12 - Subsequent Event
Note 12 - Subsequent Event | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 1 2 . Subsequent event On May 11, 2016, the Company completed an at-the-market offering in which the Company raised net proceeds of approximately $4.6 million by selling 3,571,428 common shares at a price of $1.40 per share. Additionally, for each common share purchased, the investors will receive a warrant to purchase one-half of a common share of the Company at a price of $1.40 per full share for a period of five years from May 11, 2016. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of consolidation The consolidated financial statements include the accounts of the Company, Sophiris Bio Corp. and Sophiris Bio Holding Corp. All intercompany balances and transactions have been eliminated for purposes of consolidation. |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States, or GAAP, for the interim financial information and the rules and regulations of the Securities and Exchange Commission, or SEC, related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual audited financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, or Annual Report, filed with the SEC on March 29, 2016. The accompanying year-end condensed balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP. In the opinion of management, these condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. The Company bases estimates and judgments on historical experience and on various other factors that it believes to be reasonable under the circumstances. The significant estimates in these condensed consolidated financial statements include stock-based compensation expense and accrued research and development expenses, including accruals related to the Company’s ongoing clinical trial. The Company’s actual results may differ from these estimates. The Company evaluates its estimates on an ongoing basis. Changes in estimates are reflected in reported results in the period in which they become known by the Company’s management. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency Historically gains and losses resulting from foreign currency translation were recorded in accumulated other comprehensive gain (loss), which is a separate component of stockholders’ (deficit) equity. Foreign currency transaction gains and losses are recognized as a component of other expense. The Company recorded foreign exchange transaction losses of $4,000 and $7,000 for the three months ended March 31, 2016 and 2015, respectively. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash equivalents are short-term, highly liquid investments with an original maturity of three months or less at the date of purchase. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Securities Available-for-Sale Investments with an original maturity of more than three months when purchased have been classified by management as securities available-for-sale. Such investments are carried at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive gain (loss) in shareholders’ equity. Realized gains and losses and declines in value judged to be other-than-temporary on available-for-sale securities are included in interest income. No other-than-temporary impairments were identified for the investment securities held by the Company as of March 31, 2016 and December 31, 2015. The cost of investment securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in interest income. The cost of securities sold is based on the specific-identification method. The Company has classified all of its investment securities as available-for-sale, including those with maturities beyond one year, as current assets on the consolidated balance sheets based on the highly liquid nature of the investment securities and because these investment securities are considered available for use in current operations. |
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition The Company may enter into product development agreements with collaborative partners for the research and development of products for the treatment of urological diseases. The terms of the agreements may include nonrefundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations. These multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. License fees are recognized as revenue when persuasive evidence of an arrangement exists, the fee is fixed or determinable, delivery or performance has substantially completed and collection is reasonably assured. The Company recognizes up front license payments as revenue upon delivery of the license only if the license has stand-alone value to the customer and if the agreement includes a general right of return, the delivery or performance of undelivered items is considered probable and within the control of the Company. The payment is generally allocated to the separate units of accounting based on their relative selling prices. The selling price of each deliverable is determined using vendor specific objective evidence of selling prices, if it exists; otherwise, third-party evidence of selling prices. If neither vendor specific objective evidence nor third-party evidence exists, the Company uses its’ best estimate of the selling price for each deliverable. The payment allocated is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. Whenever the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue recognized. If the Company cannot reasonably estimate the timing and the level of effort to complete its performance obligations under the arrangement, then revenue under the arrangement is recognized on a straight-line basis over the period the Company is expected to complete its performance obligations. The Company evaluates milestone payments on an individual basis and recognizes revenue from non-refundable milestone payments when the earnings process is complete and the payment is reasonably assured. Non-refundable milestone payments related to arrangements under which the Company has continuing performance obligations are recognized as revenue upon achievement of the associated milestone, provided that (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (ii) the amount of the milestone payment is reasonable in relation to the effort expended or the risk associated with the milestone event. Any amounts received under agreements in advance of performance, if deemed substantive, are recorded as deferred revenue and recognized as revenue as the Company completes its performance obligations. A milestone event is considered substantive if (i) the milestone is commensurate with either (a) the Company’s performance to achieve the milestone or (b) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) it relates solely to past performance and (iii) it is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. If any portion of the milestone payment does not relate to the Company’s performance, does not relate solely to past performance or is refundable or adjustable based on future performance, the milestone is not considered to be substantive. Milestone payments are not bifurcated into substantive and non-substantive components. Payments related to the achievement of non-substantive milestones is deferred and recognized over the Company’s remaining performance period. Royalty revenue will be recognized upon the sale of the related products provided the Company has no remaining performance obligations under the arrangement. |
Research and Development Expense, Policy [Policy Text Block] | Research and development expenses Research and development costs are charged to expense as incurred. Research and development expenses comprise costs incurred in performing research and development activities, including personnel-related costs, stock-based compensation, facilities, research-related overhead, clinical trial costs, contracted services, manufacturing, license fees and other external costs. The Company accounts for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been consumed rather than when the payment is made. |
Accrued Research and Development Expenses [Policy Text Block] | Accrued research and development expenses Clinical trial costs are recorded as a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed of the total work over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services based on facts and circumstances known to the Company as of each balance sheet date. However, actual costs and timing of clinical trials are highly uncertain, subject to risks and may change depending upon a number of factors, including the Company’s clinical development plan. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Adjustments to prior period estimates have not been material. Examples of estimated accrued research and development expenses include: • fees to clinical research organizations in connection with clinical studies; • fees to investigative sites in connection with clinical studies; • fees to vendors in connection with preclinical development activities; • fees to vendors associated with the development of companion diagnostics; and • fees to vendors related to product manufacturing, development and distribution of clinical supplies. Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are recorded as a prepaid expense and recognized as expense in the period that the related goods are consumed or services are performed. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based compensation The Company expenses the fair value of employee stock options over the vesting period. Compensation expense is measured using the fair value of the award at the grant date, net of estimated forfeitures, and is adjusted annually to reflect actual forfeitures. The fair value of each stock-based award is estimated using the Black-Scholes pricing model and is expensed using graded amortization over the vesting period. The Company accounts for stock options granted to non-employees, which primarily consist of consultants of the Company, using the fair value approach. Stock options granted to non-employees are subject to revaluation each reporting period over their vesting terms. Prior to the Company’s initial public offering, or IPO, the Company had issued its stock options with a Canadian dollar denominated exercise price. Subsequent to the Company’s IPO, the Company issues its stock options with a U.S. dollar denominated exercise price. Effective November 13, 2013, the Company voluntarily delisted from the Toronto Stock Exchange, or TSX. As a result of the delisting from the TSX and the change in the Company’s functional currency to the U.S. dollar, the stock options granted with exercise prices denominated in Canadian dollars are considered dual indexed as defined in Accounting Standards Codification, or ASC, topic 718, “ Compensation, Stock Compensation” |
Fair Value Measurement, Policy [Policy Text Block] | Fair value of financial instruments The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid for to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents and accounts payable and accrued expenses, approximate fair value due to their short maturities. The Company follows ASC 820-10, “ Fair Value Measurements and Disclosures Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, “ Revenue from Contracts with Customers Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. In August 2014, the FASB issued ASU No. 2014-15, “ Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, In February 2016, the FASB issued ASU No. 2016-02, “ Lease (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. |
Note 3 - Net Loss Per Common 19
Note 3 - Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | March 31, 201 6 March 31, 201 5 Options to purchase common shares 1,674 1,639 Common share purchase warrants 590 878 |
Note 4 - Securities Available20
Note 4 - Securities Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | March 31, 201 6 Amortized Unrealized Estimated Cost Gain Loss Fair Value Commercial paper $ 250 $ — $ — $ 250 $ 250 $ — $ — $ 250 December 31, 201 5 Amortized Unrealized Estimated Cost Gain Loss Fair Value Commercial paper $ 750 $ — $ — $ 750 U.S. government sponsored enterprise securities 1,750 — — 1,750 $ 2,500 $ — $ — $ 2,500 |
Investments Classified by Contractual Maturity Date [Table Text Block] | March 31, 201 6 Amortized Unrealized Estimated Cost Gain Loss Fair Value Within one year $ 250 $ — $ — $ 250 After one year — — — — $ 250 $ — $ — $ 250 December 31, 201 5 Amortized Unrealized Estimated Cost Gain Loss Fair Value Within one year $ 2,500 $ — $ — $ 2,500 After one year — — — — $ 2,500 $ — $ — $ 2,500 |
Note 5 - Fair Value Measureme21
Note 5 - Fair Value Measurement and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stock-based Compensation Liability [Member] | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | March 31, 201 6 December 31, 201 5 Stock price at the end of each reporting period $ 1.44 $ 1.78 Weighted average exercise price $ 13.81 $ 13.12 Risk-free interest rate 0.65 % 0.91 % Volatility 168.75 % 182.74 % Dividend yield 0.00 % 0.00 % Expected life in years 1.30 1.53 Calculated fair value per stock option $ 0.54 $ 0.74 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Three Months Ended March 31, 201 6 Liabilities: Balance at beginning of period $ 168 Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus (47 ) Balance at end of period $ 121 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | March 31 , 201 6 Level 1 Level 2 Level 3 Assets: Money market funds $ 343 $ 343 $ — $ — Commercial paper 1,749 — 1,749 — U.S. government sponsored enterprise securities 2,401 — 2,401 — Total assets $ 4,493 $ 343 $ 4,150 $ — Liabilities: Stock-based compensation liability $ 121 $ — $ — $ 121 Total liabilities $ 121 $ — $ — $ 121 December 31, 201 5 Level 1 Level 2 Level 3 Assets: Money market funds $ 87 $ 87 $ — $ — Commercial paper 1,850 — 1,850 — U.S. government sponsored enterprise securities 5,549 — 5,549 — Total assets $ 7,486 $ 87 $ 7,399 $ — Liabilities: Stock-based compensation liability $ 168 $ — $ — $ 168 Total liabilities $ 168 $ — $ — $ 168 |
Note 6 - Prepaid Expenses (Tabl
Note 6 - Prepaid Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Prepaid Expense and Other Current Assets [Table Text Block] | March 31, 201 6 December 31, 201 5 Prepaid insurance $ 158 $ 261 Prepaid research and development expenses 203 176 Other prepaid expenses 69 30 $ 430 $ 467 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | March 31, 201 6 December 31, 201 5 Accrued personnel related costs $ 291 $ 224 Accrued interest 38 42 Accrued research and development expenses 20 78 Accrued audit and tax services 130 182 Other accrued expenses 140 40 $ 619 $ 566 |
Note 8 - Promissory Notes (Tabl
Note 8 - Promissory Notes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year 1 $ 1,932 Year 2 2,124 Year 3 1,054 Total $ 5,110 |
Contractual Interest Expense and Amortization of Debt Issuance Costs and Debt Discount [Table Text Block] | Three Months Ended March 31, 201 6 201 5 Simple interest $ 118 $ 142 Amortization of debt discount 32 34 $ 150 $ 176 |
Note 10 - Stock-based Compens25
Note 10 - Stock-based Compensation Plan (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended March 31, 201 6 201 5 Research and development $ 32 $ 82 General and administrative 58 145 Total $ 90 $ 227 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options O utstanding Weighted A verage E xercise P rice Currency Outstanding at January 1, 2016 1,677 $ 5.52 US Options expired 3 36.25 US Outstanding at March 31, 2016 1,674 $ 5.46 US |
Note 1 - Nature of the Busine26
Note 1 - Nature of the Business (Details Textual) $ in Millions | May. 11, 2016USD ($) |
At-The-Market Offering [member] | Subsequent Event [Member] | |
Proceeds from Issuance of Common Stock | $ 4.6 |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Other Expense [Member] | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ 4,000 | $ 7,000 | |
Foreign Currency Transaction Gain (Loss), before Tax | (15,000) | ||
Other than Temporary Impairment Losses, Investments | $ 0 | 0 | |
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent | 121,000 | $ 168,000 | |
Change in Fair Value of Stock-based Compensation Liability | $ (47,000) | $ 11,000 |
Note 3 - Potentially Dilutive S
Note 3 - Potentially Dilutive Securities Excluded from Diluted Weighted-average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Anti-dilutive securities excluded from computation of weighted-average shares outstanding (in shares) | 1,674 | 1,639 |
Warrant [Member] | ||
Anti-dilutive securities excluded from computation of weighted-average shares outstanding (in shares) | 590 | 878 |
Note 4 - Securities Available29
Note 4 - Securities Available-for-Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||
Amortized Cost | $ 250 | $ 750 |
Unrealized Gain | ||
Unrealized Loss | ||
Estimated Fair Value | $ 250 | $ 750 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Amortized Cost | $ 1,750 | |
Unrealized Gain | ||
Unrealized Loss | ||
Estimated Fair Value | $ 1,750 | |
Amortized Cost | $ 250 | $ 2,500 |
Unrealized Gain | ||
Unrealized Loss | ||
Estimated Fair Value | $ 250 | $ 2,500 |
Note 4 - Amortized Cost and Est
Note 4 - Amortized Cost and Estimated Fair Value of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Within One Year [Member] | ||
Amortized Cost | $ 250 | $ 2,500 |
Unrealized Gain | ||
Unrealized Loss | ||
Estimated Fair Value | $ 250 | $ 2,500 |
After One Year [Member] | ||
Amortized Cost | ||
Unrealized Gain | ||
Unrealized Loss | ||
Estimated Fair Value | ||
Amortized Cost | $ 250 | $ 2,500 |
Unrealized Gain | ||
Unrealized Loss | ||
Estimated Fair Value | $ 250 | $ 2,500 |
Note 5 - Fair Value Measureme31
Note 5 - Fair Value Measurement and Financial Instruments (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure, Recurring | $ 4,493 | $ 7,486 |
Note 5 - Assets and Liabilities
Note 5 - Assets and Liabilities Measured at Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 343 | $ 87 |
Money Market Funds [Member] | ||
Assets, Fair Value Disclosure, Recurring | 343 | 87 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | 1,749 | 1,850 |
Commercial Paper [Member] | ||
Assets, Fair Value Disclosure, Recurring | 1,749 | 1,850 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | 2,401 | 5,549 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | 2,401 | 5,549 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Recurring | 343 | 87 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | 4,150 | 7,399 |
Fair Value, Inputs, Level 3 [Member] | Stock-based Compensation Liability [Member] | ||
Liability Fair Value | 121 | 168 |
Fair Value, Inputs, Level 3 [Member] | ||
Liability Fair Value | 121 | 168 |
Stock-based Compensation Liability [Member] | ||
Liability Fair Value | 121 | 168 |
Assets, Fair Value Disclosure, Recurring | 4,493 | 7,486 |
Liability Fair Value | $ 121 | $ 168 |
Note 5 - Fair Value Assumptions
Note 5 - Fair Value Assumptions, Stock-based Compensation Liability (Details) - Stock-based Compensation Liability [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Stock price at the end of each reporting period (in dollars per share) | $ 1.44 | $ 1.78 |
Weighted average exercise price (in dollars per share) | $ 13.81 | $ 13.12 |
Risk-free interest rate | 0.65% | 0.91% |
Volatility | 168.75% | 182.74% |
Dividend yield | 0.00% | 0.00% |
Expected life in years | 1 year 109 days | 1 year 193 days |
Calculated fair value per stock option (in dollars per share) | $ 0.54 | $ 0.74 |
Note 5 - Fair Value Reconciliat
Note 5 - Fair Value Reconciliation of Stock-based Compensation Liability (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock-based Compensation Liability [Member] | ||
Balance at beginning of period | $ 168,000 | |
Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus | (47,000) | |
Balance at end of period | 121,000 | |
Change in fair value of stock-based compensation liability recorded as an adjustment to contributed surplus | $ 47,000 | $ (11,000) |
Note 6 - Prepaid Expenses (Deta
Note 6 - Prepaid Expenses (Details Textual) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Upfront Fees Included in Prepaid Researchs and Development Expenses | $ 0.2 | $ 0.2 |
Note 6 - Components of Prepaid
Note 6 - Components of Prepaid Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Prepaid insurance | $ 158 | $ 261 |
Prepaid research and development expenses | 203 | 176 |
Other prepaid expenses | 69 | 30 |
$ 430 | $ 467 |
Note 7 - Components of Accrued
Note 7 - Components of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accrued Audit and Tax Services [Member] | ||
Accrued audit and tax services | $ 130 | $ 182 |
Accrued personnel related costs | 291 | 224 |
Accrued interest | 38 | 42 |
Accrued research and development expenses | 20 | 78 |
Other accrued expenses | 140 | 40 |
$ 619 | $ 566 |
Note 8 - Promissory Notes (Deta
Note 8 - Promissory Notes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2014 | |
Oxford New Loan [Member] | Minimum [Member] | ||
Prepayment Fee Rate | 1.00% | |
Oxford New Loan [Member] | Maximum [Member] | ||
Prepayment Fee Rate | 3.00% | |
Oxford New Loan [Member] | ||
Debt Instrument, Face Amount | $ 6 | |
Debt Instrument, Interest Rate, Stated Percentage | 9.504% | |
Additional Fee Percentage | 5.00% | |
Debt Instrument, Number of Monthly Payments | 36 | |
Promissory Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Long-term Debt, Fair Value | $ 4.7 | |
Promissory Notes [Member] | ||
Debt Instrument, Interest Rate, Effective Percentage | 9.50% |
Note 8 - Future Contractual and
Note 8 - Future Contractual and Final Fee Payments (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Year 1 | $ 1,932 |
Year 2 | 2,124 |
Year 3 | 1,054 |
Total | $ 5,110 |
Note 8 - Actual Interest Expens
Note 8 - Actual Interest Expense and Amortization of Debt Discount (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Simple interest | $ 118 | $ 142 |
Amortization of debt discount | 32 | 34 |
$ 150 | $ 176 |
Note 9 - Common Stock Purchas41
Note 9 - Common Stock Purchase Agreement with Aspire Capital (Details Textual) - Aspire Capital [Member] - USD ($) | May. 16, 2014 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2016 |
Employee Shareholder Approval Not Obtained [Member] | |||||
Remaining Number of Shares Issuable Under Common Stock Purchase Agreement | 2,133,494 | 2,133,494 | 2,133,494 | ||
Employee Shareholder Approval Obtained [Member] | |||||
Remaining Number of Shares Issuable Under Common Stock Purchase Agreement | 181,270 | 181,270 | 181,270 | ||
Common Stock, Value, Subscriptions | $ 15,000,000 | ||||
Common Stock Purchase Agreement Term | 2 years 180 days | ||||
Number of Additional Shares Registered with SEC | 3,409,629 | ||||
Maximum Number of Shares Issuable Under Common Stock Purchase Agreement, Shares | 3,228,359 | ||||
Maximum Number of Shares Issuable Under Common Stock Purchase Agreement, Percent | 19.99% | ||||
Stock Issued During Period, Shares, Other | 90,635 | ||||
Stock Issued During Period, Shares, New Issues | 604,230 | 0 | 400,000 | 1,094,865 | |
Share Price | $ 3.31 | ||||
Proceeds from Issuance of Common Stock | $ 1,900,000 | $ 800,000 | |||
Issuance Cost for Purchase Agreement | $ 100,000 | ||||
Minimum Price Per Share to Retain Stock Purchase Direction Right | $ 2 | $ 2 | |||
Additional Common Shares to Be Purchased at Reporting Entity's Direction, Value | $ 12,200,000 | ||||
Maximum Number of Common Shares to be Purchased | 100,000 | ||||
Maximum Amount of Common Shares to be Purchased Per Trading Day | $ 1,000,000 |
Note 10 - Stock-based Compens42
Note 10 - Stock-based Compensation Plan (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)shares | |
Number of Additional Shares Available to be Issued Registered with SEC | 40,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 50,521 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 0.1 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year |
Note 10 - Stock-based Compens43
Note 10 - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Research and Development Expense [Member] | ||
Stock-based compensation expense | $ 32 | $ 82 |
General and Administrative Expense [Member] | ||
Stock-based compensation expense | 58 | 145 |
Stock-based compensation expense | $ 90 | $ 227 |
Note 10 - Stock Option Activity
Note 10 - Stock Option Activity (Details) - United States of America, Dollars shares in Thousands | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Options outstanding (in shares) | shares | 1,677 |
Weighted average exercise price - options outstanding (in dollars per share) | $ / shares | $ 5.52 |
Options expired (in shares) | shares | 3 |
Options expired (in dollars per share) | $ / shares | $ 36.25 |
Options outstanding (in shares) | shares | 1,674 |
Weighted average exercise price - options outstanding (in dollars per share) | $ / shares | $ 5.46 |
Note 11 - NASDAQ Listing (Detai
Note 11 - NASDAQ Listing (Details Textual) - Subsequent Event [Member] - USD ($) $ in Millions | May. 11, 2016 | Apr. 05, 2016 |
If Company's Plan is Accepted [Member] | ||
NASDAQ Listing Requirement to Regain Compliance, Grace Period | 180 days | |
At-The-Market Offering [member] | ||
Proceeds from Issuance of Common Stock | $ 4.6 | |
NASDAQ Listing Requirement to Regain Compliance, Grace Period | 45 days |
Note 12 - Subsequent Event (Det
Note 12 - Subsequent Event (Details Textual) - At-The-Market Offering [member] - Subsequent Event [Member] $ / shares in Units, $ in Millions | May. 11, 2016USD ($)$ / sharesshares |
Common Stock [Member] | Warrant [Member] | |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 0.5 |
Warrant [Member] | |
Derivative, Term of Contract | 5 years |
Two Warrant Units [Member] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 1.40 |
Proceeds from Issuance of Common Stock | $ | $ 4.6 |
Stock Issued During Period, Shares, New Issues | shares | 3,571,428 |
Shares Issued, Price Per Share | $ / shares | $ 1.40 |