Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2015 | Aug. 07, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Xenon Pharmaceuticals Inc. | |
Document Type | 10-Q/A | |
Trading Symbol | XENE | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,286,858 | |
Amendment Flag | true | |
Amendment Description | We are filing this Amended Quarterly Report on Form 10-Q/A (the “Amended Filing”) to update our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, which was filed with the Securities and Exchange Commission (“SEC”) and with the securities commissions in British Columbia, Alberta and Ontario on May 12, 2015 (the “Original Filing”), to amend and restate our unaudited interim financial statements for the quarter ended March 31, 2015, to adjust non-cash stock based compensation accounting as discussed below and in Note 2 to the accompanying restated unaudited interim financial statements | |
Entity Central Index Key | 1,582,313 | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q1 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 65,917 | $ 72,026 |
Marketable securities | 9,464 | 12,015 |
Accounts receivable | 1,205 | 215 |
Prepaid expenses and other current assets | 464 | 686 |
Total current assets | 77,050 | 84,942 |
Property, plant and equipment, net | 2,353 | 2,476 |
Total assets | 79,403 | 87,418 |
Current liabilities: | ||
Accounts payable and accrued expenses (note 7) | 1,530 | 2,664 |
Deferred revenue | 8,724 | 11,622 |
Fair value of liability classified stock options | 6,298 | |
Total current liabilities | 16,552 | 14,286 |
Deferred revenue, less current portion | 157 | |
Deferred tenant inducements | 180 | 196 |
Total liabilities | 16,732 | 14,639 |
Shareholders’ equity: | ||
Common shares, without par value; unlimited shares authorized; issued and outstanding: 14,222,275 (December 31, 2014 - 14,181,333) | 147,508 | 147,157 |
Additional paid-in capital | 29,083 | 30,346 |
Accumulated deficit | (112,930) | (103,734) |
Accumulated other comprehensive loss | (990) | (990) |
Shareholders' equity | 62,671 | 72,779 |
Total liabilities and shareholders’ equity | $ 79,403 | $ 87,418 |
Commitments and contingencies (note 10) |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Common shares, Par Value (in Dollars per share) | $ 0 | $ 0 |
Common shares, Issued | 14,222,275 | 14,181,333 |
Common shares, Outstanding | 14,222,275 | 14,181,333 |
Statements of Operations and Co
Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue: | ||
Collaboration revenue (note 9) | $ 4,010 | $ 5,001 |
Operating expenses: | ||
Research and development | 3,427 | 2,533 |
General and administrative | 1,571 | 1,300 |
Total operating expenses | 10,147 | 3,969 |
Income (loss) from operations | (6,137) | 1,032 |
Other income (expense): | ||
Interest income | 152 | 141 |
Foreign exchange gain (loss) | (3,171) | 200 |
Net income (loss) | (9,156) | 1,373 |
Net income attributable to participating securities | $ 1,373 | |
Net loss attributable to common shareholders | $ (9,156) | |
Net loss per common share (note 5): | ||
Basic and diluted | $ (0.64) | |
Weighted-average shares outstanding (note 5): | ||
Basic and diluted | 14,212,579 | 1,345,312 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | $ (909) | |
Comprehensive income (loss) | $ (9,156) | 464 |
General and Administrative [Member] | ||
Operating expenses: | ||
General and administrative - stock based compensation | $ 5,149 | $ 136 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Preferred Stock [Member]Series A Preferred Stock [Member] | Preferred Stock [Member]Series B Preferred Stock [Member] | Preferred Stock [Member]Series E Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||
Balance at Dec. 31, 2013 | $ (78,372) | $ 2,939 | $ 8,683 | $ 90,866 | $ 6,147 | $ 29,722 | $ (116,752) | $ 2,511 | ||
Balance (in Shares) at Dec. 31, 2013 | 1,151,468 | 994,885 | 4,322,126 | 1,344,627 | ||||||
Net income (loss) | 13,018 | 13,018 | ||||||||
Conversion of Series A, B and E convertible preferred shares | 102,488 | $ (2,939) | $ (8,683) | $ (90,866) | $ 102,488 | |||||
Issuance of common shares, net of issuance costs | 38,373 | $ 38,373 | ||||||||
Issuance of common shares, net of issuance costs (in Shares) | 5,095,000 | |||||||||
Foreign currency translation adjustment | (3,501) | (3,501) | ||||||||
Stock option compensation expense | 760 | 760 | ||||||||
Issuance of common shares on conversion of subscription rights | $ 124 | (124) | ||||||||
Issuance of common shares on conversion of subscription rights (in Shares) | 13,365 | |||||||||
Issued pursuant to exercise of stock options | 13 | $ 25 | (12) | |||||||
Issued pursuant to exercise of stock options (in Shares) | 2,417 | |||||||||
Balance at Dec. 31, 2014 | 72,779 | $ 147,157 | 30,346 | (103,734) | (990) | |||||
Balance (in Shares) at Dec. 31, 2014 | 14,181,333 | |||||||||
Conversion of series A, B and E convertible preferred shares (in Shares) | (1,151,468) | (994,885) | (4,322,126) | 7,725,924 | ||||||
Net income (loss) | (9,156) | $ 0 | (9,156) | |||||||
Stock option compensation expense | 239 | 239 | ||||||||
Issued pursuant to exercise of stock options | $ 127 | $ 351 | (184) | (40) | ||||||
Issued pursuant to exercise of stock options (in Shares) | 44,656 | [1] | 40,942 | |||||||
Balance at Mar. 31, 2015 | $ 62,671 | $ 147,508 | 30,450 | $ (107,999) | $ (990) | [2] | ||||
Balance (in Shares) at Mar. 31, 2015 | 14,222,275 | |||||||||
Reclassification to fair value of liability classified stock options | $ (1,318) | $ (1,318) | ||||||||
[1] | During the three months ended March 31, 2015, 26,910 stock options were exercised for the same number of common shares for cash. In the same period, the Company issued 14,032 common shares for the cashless exercise of 17,746 stock options. | |||||||||
[2] | At March 31, 2015, our accumulated other comprehensive loss is entirely related to historical cumulative translation adjustments from the application of U.S. dollar reporting when the functional currency of the Company was the Canadian dollar. See Note 3 – Changes in significant accounting policies. |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities: | ||
Net income (loss) | $ (9,156) | $ 1,373 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 207 | 175 |
Stock-based compensation | 5,219 | 186 |
Deferred tenant inducements | (16) | (17) |
Unrealized foreign exchange loss | 3,140 | 37 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (996) | 2 |
Prepaid expenses, and other current assets | 220 | 29 |
Accounts payable and accrued expenses | (1,110) | (265) |
Deferred revenue | (3,055) | (2,362) |
Net cash used in operating activities | (5,547) | (842) |
Investing activities: | ||
Purchases of property, plant and equipment | (84) | (480) |
Purchase of marketable securities | (2,578) | |
Proceeds from marketable securities | 1,575 | 2,720 |
Net cash provided by (used in) investing activities | 1,491 | (338) |
Financing activities: | ||
Deferred financing fees | (398) | |
Proceeds from issuance of common shares | 127 | 5 |
Net cash provided by (used in) financing activities | 127 | (393) |
Effect of exchange rate changes on cash and cash equivalents | (2,180) | (1,430) |
Decrease in cash and cash equivalents | (6,109) | (3,003) |
Cash and cash equivalents, beginning of period | 72,026 | 37,950 |
Cash and cash equivalents, end of period | 65,917 | 34,947 |
Supplemental disclosures: | ||
Interest received | 121 | 125 |
Supplemental disclosures of non-cash transactions: | ||
Issuance of common shares on conversion of subscription rights | $ 14 | |
Fair value of options exercised on a cashless basis | $ 69 |
Nature of the Business
Nature of the Business | 3 Months Ended |
Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the business | 1. Nature of the business: Xenon Pharmaceuticals Inc. (the “Company”), incorporated in 1996 under the British Columbia Business Corporations Act and continued federally in 2000 under the Canada Business Corporation Act, is a clinical-stage biopharmaceutical company discovering and developing a pipeline of differentiated therapeutics for orphan indications that it intends to commercialize on its own, and for larger market indications that it intends to partner with global pharmaceutical companies. On October 1, 2014, the Company effected a 1 for 4.86 reverse share split of its common and Series A, B and E redeemable convertible preferred shares. At the time of the consolidation, there were no outstanding Series C and D preferred shares and therefore such series were not included in the consolidation. Accordingly, (i) every 4.86 common shares were combined into one common share, (ii) every 4.86 redeemable Series A, B and E convertible preferred shares were combined into one redeemable convertible preferred share, (iii) the number of common shares into which each outstanding subscription right was exchangeable into common shares were proportionately decreased on a 1 for 4.86 basis, (iv) the number of common shares into which each outstanding option to purchase common shares was exercisable were proportionately decreased on a 1 for 4.86 basis, and (v) the exercise price for each such outstanding option to purchase common shares was proportionately increased on a 1 for 4.86 basis. All of the share numbers, share prices, and exercise prices prior to October 1, 2014 have been adjusted, on a retroactive basis, to reflect this 1 for 4.86 reverse share split. On November 10, 2014, the Company completed an initial public offering (“IPO”) of 4,600,000 of its common shares at a price to the public of $9.00 per share. On November 10, 2014, the Company also completed a private placement, in which the Company issued 495,000 of its common shares to an affiliate of Genentech, Inc. (“Genentech”) at a price of $9.00 per share. Immediately prior to the closing of the IPO, all outstanding convertible preferred shares were converted into 7,725,924 common shares and 10,201 outstanding subscription rights were converted into 10,201 common shares. Following the IPO, there were no preferred shares or subscription rights outstanding. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Basis of presentation | 2. Basis of presentation: These financial statements are presented in U.S. dollars. The accompanying unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these financial statements do not include all of the information and footnotes required for complete financial statements and should be read in conjunction with the audited financial statements and notes for the year ended December 31, 2014 and included in the Company’s 2014 Annual Report on Form 10-K filed with the SEC on March 12, 2015. These unaudited interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three month periods ended March 31, 2015 and 2014 are not necessarily indicative of results that can be expected for a full year. These unaudited interim financial statements follow the same significant accounting policies as those described in the notes to the audited financial statements of the Company included in the Company’s 2014 Annual Report on Form 10-K for the year ended December 31, 2014, with the exception of the liability classified stock options described in note 2 and the change in functional currency described in note 3. Certain comparative figures have been reclassified to conform to the financial statement presentation adopted for the current interim period. Restatement The Company has determined that a restatement is required to the previously reported unaudited interim financial statements for the quarter ended March 31, 2015. Under U.S. GAAP guidance for share-based payment transactions, awards of options that provide for an exercise price which is not denominated in: (a) the currency of a market in which a substantial portion of the Company’s equity securities trades, (b) the currency in which the individual’s pay is denominated, or (c) the Company’s functional currency, are required to be classified as liabilities. Liability classified awards are measured at fair value at each reporting period with changes in fair value recognized as compensation cost of the period. The Company granted stock options with exercise prices denominated in Canadian dollars under its Amended and Restated Stock Option Plan to members of its board of directors and certain consultants prior to the Company’s IPO in November 2014. Following the change in functional currency on January 1, 2015, described in note 3, the options with exercise prices denominated in Canadian dollars that were granted to members of the Company’s board of directors and certain consultants were subject to liability accounting (the “liability options") with fair value calculated using the Black-Scholes option-pricing model. Prior to January 1, 2015, these options were subject to equity accounting. The Company revalued the liability options as of March 31, 2015 and recorded a stock option liability of $6.3 million. The fair value of the liability options, net of amounts previously recognized in additional paid-in capital, is included in the statement of operations and comprehensive income (loss) as general and administrative stock based compensation expense. A summary of the impact of the correction of the stock based compensation adjustment on the unaudited interim financial statements is as follows: As originally reported Reclassification Adjustment Restated Fair value of liability classified stock options $ — $ — $ 6,298 $ 6,298 Additional paid-in capital 30,450 — (1,367 ) 29,083 Accumulated deficit (107,999 ) — (4,931 ) (112,930 ) General and administrative 1,789 (218 ) — 1,571 General and administrative - stock based compensation — 218 4,931 5,149 Loss from operations (1,206 ) — (4,931 ) (6,137 ) Net loss (4,225 ) — (4,931 ) (9,156 ) Net loss attributable to common shareholders (4,225 ) — (4,931 ) (9,156 ) Net loss per common share - basic and diluted (0.30 ) — (0.34 ) (0.64 ) Comprehensive loss (4,225 ) — (4,931 ) (9,156 ) Adjustments to reconcile net loss to net cash used in operating activities: stock based compensation 288 — 4,931 5,219 |
Changes in Significant Accounti
Changes in Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Changes in significant accounting policies | 3. Changes in significant accounting policies: The Company’s reporting currency is the U.S. dollar. The functional currency of the Company changed to U.S. dollars from Canadian dollars on January 1, 2015 based on management’s analysis of the changes in the primary economic environment in which the Company operates. The change in functional currency is accounted for prospectively from January 1, 2015 and prior year financial statements have not been restated for the change in functional currency. Past translation gains and losses from the application of the U.S. dollar as the reporting currency while the Canadian dollar was the functional currency are included as part of the cumulative foreign currency translation adjustment, which is reported as a component of shareholders’ equity under accumulated other comprehensive loss. For periods commencing January 1, 2015, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Opening balances related to non-monetary assets and liabilities are based on prior period translated amounts, and nonmonetary assets and nonmonetary liabilities incurred after January 1, 2015 are translated at the approximate exchange rate prevailing at the date of the transaction. Revenue and expense transactions are translated at the approximate exchange rate in effect at the time of the transaction. Foreign exchange gains and losses are included in the statement of operations and comprehensive income (loss) as foreign exchange gain (loss). |
Future Changes in Accounting Po
Future Changes in Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Future changes in accounting policies | 4. Future changes in accounting policies: In May 2014, the FASB issued amendments to clarify the principles of recognizing revenue and to develop a common revenue standard that would remove inconsistencies in revenue requirements, leading to improved comparability of revenue recognition practices across entities and industries. The amendments stipulate that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosure will also be required about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In April 2015, the FASB voted to propose a deferral of the effective date of the new revenue standard by one year. The new guidance would be effective for public entities for fiscal years beginning after December 15, 2017 instead of the originally contemplated effective date of December 15, 2016. Entities are permitted to adopt in accordance with the original effective date if they choose. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s financial position, results of operations and cash flows. In August 2014, the FASB issued amendments requiring management to assess an entity’s ability to continue as a going concern. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. These amendments will be effective for public entities for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The adoption of these amendments in fiscal 2017 is not expected to have a material impact on the Company’s financial statements. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | 5. Net income (loss) per common share: Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share is computed by adjusting net income (loss) attributable to common shareholders to reallocate undistributed earnings based on the potential impact of dilutive securities. Prior to the Company’s IPO, net income (loss) per share was calculated under the two-class method as the Company had outstanding shares that met the definition of participating securities. The two-class method determines net income (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common shareholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. All of the outstanding redeemable convertible preferred shares converted to common shares upon the consummation of the Company’s IPO. As the Company reported a net loss attributable to common shareholders for the three months ended March 31, 2015 and no net income was attributable to common shareholders for the three months ended March 31, 2014, all stock options were anti-dilutive and were excluded from the diluted weighted average shares outstanding for both periods. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | 6. Fair value of financial instruments: U.S. GAAP establishes a fair value hierarchy for inputs to be used to measure fair value of financial assets and liabilities. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1 (highest priority), Level 2, and Level 3 (lowest priority). · Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the balance sheet date. · Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). · Level 3 - Inputs are unobservable and reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. The Company’s Level 1 assets include cash and cash equivalents and marketable securities with quoted prices in active markets. The carrying amount of accounts receivables, accounts payable and accrued expenses approximates fair value due to the nature and short-term of those instruments. As quoted prices for the liability classified stock options The weighted average Black-Scholes option-pricing assumptions for liability classified stock options March 31, 2015 Average risk-free interest rate 1.71 % Average expected term (in years) 4.67 Expected volatility 75 % Expected dividend yield 0.00 % Expected forfeiture rate 0.00 % Number of liability classified stock options outstanding 492,842 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Mar. 31, 2015 | |
Payables And Accruals [Abstract] | |
Accounts payable and accrued expenses | 7. Accounts payable and accrued expenses: Accounts payable and accrued expenses consisted of the following: March 31, December 31, 2015 2014 Trade payables $ 632 $ 553 Employee compensation, benefits, and related accruals 384 1,077 Consulting and contracted research 288 774 Professional fees 171 180 Other 55 80 Total $ 1,530 $ 2,664 |
Stock Option Plan
Stock Option Plan | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock option plan | 8. Stock option plan: The following table presents stock option activity for the period: Three Months Ended March 31, 2015 2014 Outstanding, beginning of period 1,484,218 1,333,099 Granted 346,964 157,231 Exercised (1) (44,656 ) (772 ) Forfeited and expired (1,090 ) (44,238 ) Outstanding, end of period 1,785,436 1,445,320 Exercisable, end of period 1,146,383 999,089 (1) During the three months ended March 31, 2015, 26,910 stock options were exercised for the same number of common shares for cash. In the same period, the Company issued 14,032 common shares for the cashless exercise of 17,746 stock options. The fair value of each option issued to employees and non-employees is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2015 2014 Average risk-free interest rate 1.71 % 1.97 % Average expected term (in years) 6.25 6.20 Expected volatility 75 % 74 % Expected dividend yield 0.00 % 0.00 % Expected forfeiture rate 0.00 % 0.00 % The weighted-average fair value of options granted during the three months ended March 31, 2015 was $11.84 (three months ended March 31, 2014 - $6.57) per option . |
Collaboration Agreements
Collaboration Agreements | 3 Months Ended |
Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration Agreements | 9. Collaboration agreements: The Company has entered into a number of collaboration agreements with multiple deliverables under which it may have received non-refundable upfront payments. The Company generally recognizes revenue from upfront payments ratably over the term of its estimated period of performance of research under its collaboration agreements in the event that such arrangements represent a single unit of accounting. The collaborations may also include contractual milestone payments, which relate to the achievement of prespecified research, development, regulatory and commercialization events. The milestone events coincide with the progression of product candidates from research and development, to regulatory approval and through to commercialization. The process of successfully discovering a new product candidate, having it selected by the collaborator for development and having it approved and ultimately sold for a profit is highly uncertain. As such, the milestone payments that the Company may earn from its collaborators involve a significant degree of risk to achieve. The following table is a summary of the revenue recognized from the Company’s collaborations for the three months ended March 31, 2015 and 2014: Three Months Ended March 31, 2015 2014 Teva: Recognition of upfront payment $ 2,876 $ 3,025 Research funding 45 80 Genentech: Recognition of upfront payment 179 786 Research funding 910 1,110 Total collaboration revenue $ 4,010 $ 5,001 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and contingencies: The Company has entered into license and research agreements with third parties that include indemnification provisions that are customary in the industry. These indemnification provisions generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party claims or damages arising from these transactions. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds commercial and product liability insurance. This insurance limits the Company’s exposure and may enable it to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and the Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Summary of Impact of Correction of Stock Based Compensation Adjustment on Unaudited Interim Financial Statements | A summary of the impact of the correction of the stock based compensation adjustment on the unaudited interim financial statements is as follows: As originally reported Reclassification Adjustment Restated Fair value of liability classified stock options $ — $ — $ 6,298 $ 6,298 Additional paid-in capital 30,450 — (1,367 ) 29,083 Accumulated deficit (107,999 ) — (4,931 ) (112,930 ) General and administrative 1,789 (218 ) — 1,571 General and administrative - stock based compensation — 218 4,931 5,149 Loss from operations (1,206 ) — (4,931 ) (6,137 ) Net loss (4,225 ) — (4,931 ) (9,156 ) Net loss attributable to common shareholders (4,225 ) — (4,931 ) (9,156 ) Net loss per common share - basic and diluted (0.30 ) — (0.34 ) (0.64 ) Comprehensive loss (4,225 ) — (4,931 ) (9,156 ) Adjustments to reconcile net loss to net cash used in operating activities: stock based compensation 288 — 4,931 5,219 |
Fair Value of Financial Instr18
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Stock Options | |
Schedule of Weighted Average Option-Pricing Assumptions for Liability Classified Stock Options | The weighted average Black-Scholes option-pricing assumptions for liability classified stock options March 31, 2015 Average risk-free interest rate 1.71 % Average expected term (in years) 4.67 Expected volatility 75 % Expected dividend yield 0.00 % Expected forfeiture rate 0.00 % Number of liability classified stock options outstanding 492,842 |
Accounts Payable and Accrued 19
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: March 31, December 31, 2015 2014 Trade payables $ 632 $ 553 Employee compensation, benefits, and related accruals 384 1,077 Consulting and contracted research 288 774 Professional fees 171 180 Other 55 80 Total $ 1,530 $ 2,664 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table presents stock option activity for the period: Three Months Ended March 31, 2015 2014 Outstanding, beginning of period 1,484,218 1,333,099 Granted 346,964 157,231 Exercised (1) (44,656 ) (772 ) Forfeited and expired (1,090 ) (44,238 ) Outstanding, end of period 1,785,436 1,445,320 Exercisable, end of period 1,146,383 999,089 (1) During the three months ended March 31, 2015, 26,910 stock options were exercised for the same number of common shares for cash. In the same period, the Company issued 14,032 common shares for the cashless exercise of 17,746 stock options. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option issued to employees and non-employees is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2015 2014 Average risk-free interest rate 1.71 % 1.97 % Average expected term (in years) 6.25 6.20 Expected volatility 75 % 74 % Expected dividend yield 0.00 % 0.00 % Expected forfeiture rate 0.00 % 0.00 % |
Collaboration Agreements (Table
Collaboration Agreements (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Revenue Recognized From Collaborations | The following table is a summary of the revenue recognized from the Company’s collaborations for the three months ended March 31, 2015 and 2014: Three Months Ended March 31, 2015 2014 Teva: Recognition of upfront payment $ 2,876 $ 3,025 Research funding 45 80 Genentech: Recognition of upfront payment 179 786 Research funding 910 1,110 Total collaboration revenue $ 4,010 $ 5,001 |
Nature of the Business (Details
Nature of the Business (Details) | Nov. 10, 2014$ / sharesshares | Oct. 01, 2014 | Mar. 31, 2015shares | Dec. 31, 2014shares |
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Stockholders' Equity Note, Reverse Stock Split | On October 1, 2014, the Company effected a 1 for 4.86 reverse share split of its common and Series A, B and E redeemable convertible preferred shares. At the time of the consolidation, there were no outstanding Series C and D preferred shares and therefore such series were not included in the consolidation. Accordingly, (i) every 4.86 common shares were combined into one common share, (ii) every 4.86 redeemable Series A, B and E convertible preferred shares were combined into one redeemable convertible preferred share, (iii) the number of common shares into which each outstanding subscription right was exchangeable into common shares were proportionately decreased on a 1 for 4.86 basis, (iv) the number of common shares into which each outstanding option to purchase common shares was exercisable were proportionately decreased on a 1 for 4.86 basis, and (v) the exercise price for each such outstanding option to purchase common shares was proportionately increased on a 1 for 4.86 basis. All of the share numbers, share prices, and exercise prices prior to October 1, 2014 have been adjusted, on a retroactive basis, to reflect this 1 for 4.86 reverse share split. | |||
Preferred Stock, Shares Outstanding | 0 | |||
Preferred Stock, Subscription Rights Outstanding | 0 | |||
Converted from Convertible Preferred Shares [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Subscribed common stock issued | 7,725,924 | |||
Converted from Subscription Rights [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Subscribed common stock issued | 10,201 | |||
Common Stock [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Issuance of common shares, net of issuance costs (in Shares) | 5,095,000 | |||
Subscription rights converted into common shares | 10,201 | |||
Common Stock [Member] | IPO [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Issuance of common shares, net of issuance costs (in Shares) | 4,600,000 | |||
Share Price (in Dollars per share) | $ / shares | $ 9 | |||
Common Stock [Member] | Private Placement [Member] | Genentech Affiliate [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Issuance of common shares, net of issuance costs (in Shares) | 495,000 | |||
Share Price (in Dollars per share) | $ / shares | $ 9 | |||
Common Stock [Member] | Reverse Stock Split [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4.86 | |||
Series A Preferred Stock [Member] | Preferred Stock [Member] | Reverse Stock Split [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4.86 | |||
Series B Preferred Stock [Member] | Preferred Stock [Member] | Reverse Stock Split [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4.86 | |||
Series E Preferred Stock [Member] | Preferred Stock [Member] | Reverse Stock Split [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4.86 | |||
Series C Preferred Stock [Member] | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Preferred Stock, Shares Outstanding | 0 | |||
Series D Preferred Stock | ||||
Note 1 - Nature of the Business (Details) [Line Items] | ||||
Preferred Stock, Shares Outstanding | 0 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ in Thousands | Mar. 31, 2015USD ($) |
Accounting Changes And Error Corrections [Abstract] | |
Fair value of liability classified stock options | $ 6,298 |
Basis of Presentation - Summary
Basis of Presentation - Summary of Impact of Correction of Stock Based Compensation Adjustment on Unaudited Interim Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Change In Accounting Estimate [Line Items] | |||
Fair value of liability classified stock options | $ 6,298 | ||
Additional paid-in capital | 29,083 | $ 30,346 | |
Accumulated deficit | (112,930) | (103,734) | |
General and administrative | 1,571 | $ 1,300 | |
Loss from operations | (6,137) | 1,032 | |
Net income (loss) | (9,156) | 1,373 | $ 13,018 |
Net loss attributable to common shareholders | $ (9,156) | ||
Net loss per common share - basic and diluted | $ (0.64) | ||
Comprehensive loss | $ (9,156) | 464 | |
Stock-based compensation | 5,219 | 186 | |
General and Administrative [Member] | |||
Change In Accounting Estimate [Line Items] | |||
General and administrative - stock based compensation | 5,149 | $ 136 | |
Scenario, Previously Reported | |||
Change In Accounting Estimate [Line Items] | |||
Additional paid-in capital | 30,450 | ||
Accumulated deficit | (107,999) | ||
General and administrative | 1,789 | ||
Loss from operations | (1,206) | ||
Net income (loss) | (4,225) | ||
Net loss attributable to common shareholders | $ (4,225) | ||
Net loss per common share - basic and diluted | $ (0.30) | ||
Comprehensive loss | $ (4,225) | ||
Stock-based compensation | 288 | ||
Reclassification | |||
Change In Accounting Estimate [Line Items] | |||
General and administrative | (218) | ||
Reclassification | General and Administrative [Member] | |||
Change In Accounting Estimate [Line Items] | |||
General and administrative - stock based compensation | 218 | ||
Scenario, Adjustment | |||
Change In Accounting Estimate [Line Items] | |||
Fair value of liability classified stock options | 6,298 | ||
Additional paid-in capital | (1,367) | ||
Accumulated deficit | (4,931) | ||
Loss from operations | (4,931) | ||
Net income (loss) | (4,931) | ||
Net loss attributable to common shareholders | $ (4,931) | ||
Net loss per common share - basic and diluted | $ (0.34) | ||
Comprehensive loss | $ (4,931) | ||
Stock-based compensation | 4,931 | ||
Scenario, Adjustment | General and Administrative [Member] | |||
Change In Accounting Estimate [Line Items] | |||
General and administrative - stock based compensation | $ 4,931 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments - Schedule of Weighted Average Option-Pricing Assumptions for Liability Classified Stock Options (Details) - Mar. 31, 2015 - Stock Options - shares | Total |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Average risk-free interest rate | 1.71% |
Average expected term (in years) | 4 years 8 months 1 day |
Expected volatility | 75.00% |
Expected dividend yield | 0.00% |
Expected forfeiture rate | 0.00% |
Number of liability classified stock options outstanding | 492,842 |
Accounts Payable and Accrued 26
Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 632 | $ 553 |
Employee compensation, benefits, and related accruals | 384 | 1,077 |
Consulting and contracted research | 288 | 774 |
Professional fees | 171 | 180 |
Other | 55 | 80 |
Total | $ 1,530 | $ 2,664 |
Stock Option Plan - Stock Optio
Stock Option Plan - Stock Option Activity (Details) - shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Outstanding, beginning of period | 1,484,218 | 1,333,099 | 1,333,099 | |
Granted | 346,964 | 157,231 | ||
Exercised | [1] | (44,656) | (772) | |
Forfeited and expired | (1,090) | (44,238) | ||
Outstanding, end of period | 1,785,436 | 1,445,320 | 1,484,218 | |
Exercisable, end of period | 1,146,383 | 999,089 | ||
[1] | During the three months ended March 31, 2015, 26,910 stock options were exercised for the same number of common shares for cash. In the same period, the Company issued 14,032 common shares for the cashless exercise of 17,746 stock options. |
Stock Option Plan - Stock Opt28
Stock Option Plan - Stock Option Activity (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2015shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock options exercised for number of common shares for cash | 26,910 |
Common stock issued for cashless exercise | 14,032 |
Cashless exercise of stock options | 17,746 |
Stock Option Plan - Fair Value
Stock Option Plan - Fair Value Assumptions for Stock Options (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value Assumptions For Stock Options [Abstract] | ||
Average risk-free interest rate | 1.71% | 1.97% |
Average expected term (in years) | 6 years 3 months | 6 years 2 months 12 days |
Expected volatility | 75.00% | 74.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected forfeiture rate | 0.00% | 0.00% |
Stock Option Plan (Details)
Stock Option Plan (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value Assumptions For Stock Options [Abstract] | ||
Weighted Average Grant Date Fair Value, Granted | $ 11.84 | $ 6.57 |
Collaboration Agreements - Reve
Collaboration Agreements - Revenue Recognized from Collaborations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Deferred Revenue Arrangement [Line Items] | ||
Collaboration revenue | $ 4,010 | $ 5,001 |
Teva [Member] | Recognition of Upfront Payment [Member] | Collaborative Arrangement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Collaboration revenue | 2,876 | 3,025 |
Teva [Member] | Research Funding [Member] | Collaborative Arrangement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Collaboration revenue | 45 | 80 |
Genentech [Member] | Recognition of Upfront Payment [Member] | Collaborative Arrangement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Collaboration revenue | 179 | 786 |
Genentech [Member] | Research Funding [Member] | Collaborative Arrangement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Collaboration revenue | $ 910 | $ 1,110 |