Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Viking Therapeutics, Inc. | ||
Entity Central Index Key | 0001607678 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 72,562,863 | ||
Entity Public Float | $ 534,926,426 | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-37355 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-1073877 | ||
Entity Address, Address Line One | 12340 El Camino Real | ||
Entity Address, Address Line Two | Suite 250 | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92130 | ||
City Area Code | 858 | ||
Local Phone Number | 704-4660 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of the Registrant’s Definitive Proxy Statement for its 2020 Annual Meeting of Stockholders or an amendment to this Annual Report on Form 10-K to be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2019 are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Common stock [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | VKTX | ||
Title of 12(b) Security | Common Stock, par value $0.00001 per share | ||
Security Exchange Name | NASDAQ | ||
Common stock warrants [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | VKTXW | ||
Title of 12(b) Security | Warrants to purchase Common Stock, par value $0.00001 per share | ||
Security Exchange Name | NASDAQ |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 8,377 | $ 24,779 |
Short-term investments – available for sale | 267,261 | 276,741 |
Prepaid clinical trial and preclinical study costs | 7,458 | 335 |
Prepaid expenses and other current assets | 405 | 278 |
Total current assets | 283,501 | 302,133 |
Right-of-use assets | 598 | |
Deferred public offering and other financing costs | 128 | 150 |
Deposits | 29 | 29 |
Total assets | 284,256 | 302,312 |
Current liabilities: | ||
Accounts payable | 2,431 | 959 |
Other accrued liabilities | 4,044 | 3,591 |
Lease liability, current | 302 | |
Total current liabilities | 6,777 | 4,550 |
Deferred rent | 12 | |
Lease liability, net of current portion | 360 | |
Total long-term liabilities | 360 | 12 |
Total liabilities | 7,137 | 4,562 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value: 10,000,000 shares authorized at December 31, 2019 and 2018; no shares issued and outstanding at December 31, 2019 and 2018 | ||
Common stock, $0.00001 par value: 300,000,000 shares authorized at December 31, 2019 and 2018; 72,413,602 shares issued and outstanding at December 31, 2019 and 71,742,043 shares issued and outstanding at December 31, 2018 | 1 | 1 |
Additional paid-in capital | 405,803 | 401,090 |
Accumulated deficit | (128,697) | (102,918) |
Accumulated other comprehensive income (loss) | 12 | (423) |
Total stockholders’ equity | 277,119 | 297,750 |
Total liabilities and stockholders’ equity | $ 284,256 | $ 302,312 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 72,413,602 | 71,742,043 |
Common stock, shares outstanding | 72,413,602 | 71,742,043 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 0 | $ 0 |
Operating expenses: | ||
Research and development | 23,559 | 19,040 |
General and administrative | 9,128 | 7,121 |
Total operating expenses | 32,687 | 26,161 |
Loss from operations | (32,687) | (26,161) |
Other income (expense): | ||
Change in fair value of debt conversion feature liability | 0 | 1,398 |
Amortization of debt discount | 0 | (404) |
Amortization of financing costs | (146) | (120) |
Interest income, net | 7,050 | 3,236 |
Realized gain (loss) on investments | 4 | (12) |
Total other income, net | 6,908 | 4,098 |
Net loss | (25,779) | (22,063) |
Other comprehensive gain (loss), net of tax: | ||
Unrealized gain (loss) on securities | 435 | (403) |
Comprehensive loss | $ (25,344) | $ (22,466) |
Basic and diluted net loss per share | $ (0.36) | $ (0.38) |
Weighted-average shares used to compute basic and diluted net loss per share | 71,959,093 | 57,580,244 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2017 | $ 13,464 | $ 94,339 | $ (80,855) | $ (20) | |
Balance (in shares) at Dec. 31, 2017 | 35,817,104 | ||||
Employee stock-based compensation, net | 2,481 | 2,481 | |||
Employee stock-based compensation, net (in shares) | (26,006) | ||||
Issuance of common stock under employee stock plans | 560 | 560 | |||
Issuance of common stock under employee stock plans (in shares) | 343,405 | ||||
Issuance of common stock from warrant exercises | 7,729 | 7,729 | |||
Issuance of common stock from warrant exercises (in shares) | 4,832,540 | ||||
Sale of common stock, net of issuance costs | 295,982 | $ 1 | 295,981 | ||
Sale of common stock, net of issuance costs (in shares) | 30,775,000 | ||||
Unrealized gain (loss) on investments | (403) | (403) | |||
Net loss | (22,063) | (22,063) | |||
Balance at Dec. 31, 2018 | 297,750 | $ 1 | 401,090 | (102,918) | (423) |
Balance (in shares) at Dec. 31, 2018 | 71,742,043 | ||||
Employee stock-based compensation, net | 3,592 | 3,592 | |||
Employee stock-based compensation, net (in shares) | (17,709) | ||||
Issuance of common stock under employee stock plans | 328 | 328 | |||
Issuance of common stock under employee stock plans (in shares) | 160,573 | ||||
Issuance of common stock from warrant exercises | 793 | 793 | |||
Issuance of common stock from warrant exercises (in shares) | 528,695 | ||||
Unrealized gain (loss) on investments | 435 | 435 | |||
Net loss | (25,779) | (25,779) | |||
Balance at Dec. 31, 2019 | $ 277,119 | $ 1 | $ 405,803 | $ (128,697) | $ 12 |
Balance (in shares) at Dec. 31, 2019 | 72,413,602 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (25,779) | $ (22,063) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Amortization of debt discount on notes payable | 0 | 404 |
Amortization of investment premiums | 477 | 73 |
Amortization of financing costs | 146 | 120 |
Amortization of non-cash clinical trial costs | 140 | 666 |
Change in fair value of debt conversion feature liability | 0 | (1,398) |
Stock-based compensation | 3,743 | 2,608 |
Amortization of right-of-use assets | 260 | |
Interest expense related to operating lease liability | 48 | |
Realized (gain) loss on investments | (4) | 12 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (7,380) | (137) |
Accounts payable | 1,472 | (508) |
Accrued expenses | 2,394 | 1,468 |
Lease liability | (269) | |
Net cash used in operating activities | (24,752) | (18,755) |
Cash flows from investing activities | ||
Purchases of investments | (362,406) | (348,204) |
Proceeds from sales and maturities of investments | 369,869 | 82,475 |
Net cash provided by (used in) investing activities | 7,463 | (265,729) |
Cash flows from financing activities | ||
Proceeds from issuances of common stock, net of underwriting discounts and commissions | 296,607 | |
Public offering and financing costs | (73) | (765) |
Value of shares withheld related to employee tax withholding | (151) | (127) |
Repayment of convertible notes payable | (3,833) | |
Proceeds from stock issuance under employee stock purchase plan and warrant exercises | 1,111 | 8,393 |
Net cash provided by financing activities | 887 | 300,275 |
Net increase (decrease) in cash and cash equivalents | (16,402) | 15,791 |
Cash and cash equivalents beginning of period | 24,779 | 8,988 |
Cash and cash equivalents end of period | 8,377 | 24,779 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | $ 81 | |
Supplemental disclosure of non-cash investing and financing transactions | ||
Unpaid deferred public offering and other financing costs | 50 | |
Receivable from exercise of warrants | $ 10 |
Organization, Liquidity and Man
Organization, Liquidity and Management's Plan, and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization, Liquidity and Management's Plan, and Summary of Significant Accounting Policies | 1. Organization, Liquidity and Management’s Plan, and Summary of Significant Accounting Policies The Company Viking Therapeutics, Inc., a Delaware corporation (the “Company”), is a clinical-stage biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders. The Company was incorporated under the laws of the State of Delaware on September 24, 2012 and its principal executive offices are located in San Diego, CA. Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements. Significant estimates made in preparing these financial statements relate to determining the fair value of the debt conversion feature liability, through May 21, 2018, and accounting for operating lease and certain commitments. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. Investments Available-for-Sale Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in accumulated other comprehensive income (loss). The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. The amortization of premiums and accretion of discounts is included in interest income. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are included in other income (expense). The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and marketable securities. The Company maintains deposits in federally insured depository institutions in excess of federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Additionally, the Company has established guidelines regarding approved investments and maturities of investments, which are designed to maintain safety and liquidity. Prepaid Clinical Trial and Preclinical Study Costs Prepaid clinical trial and preclinical study costs represent advance payments by the Company for future clinical trial and preclinical study services to be performed by the clinical research organization and other research organizations. Such amounts are recognized as research and development expense as the related clinical trial and preclinical study services are performed. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, and lease liability obligations are included in the Company’s balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liability obligations represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases typically do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The ROU asset also includes any lease payments made and excludes lease incentives and lease direct costs. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. Please refer to Note 5 for additional information. Deferred Financing Costs Deferred financing costs represent legal, accounting and other direct costs related to the Company’s efforts to raise capital through a public or private sale of the Company’s common stock. Costs related to the public sale of the Company’s common stock are deferred until the completion of the applicable offering, at which time such costs are reclassified to additional paid-in-capital as a reduction of the proceeds. Costs related to the private sale of the Company’s common stock are deferred until the completion of the applicable offering, at which time such costs are amortized over the term of the applicable purchase agreement. Revenue Recognition The Company has not recorded any revenues since its inception. However, in the future, the Company may enter into collaborative research and licensing agreements, under which the Company could be eligible for payments made in the form of upfront license fees, research funding, cost reimbursement, contingent event-based payments and/or royalties. On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers and all related amendments (“ASC 606” or “the new revenue standard”). ASC 606 is a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-s Research and Development Expenses All costs of research and development are expensed in the period incurred. Research and development costs primarily consist of fees paid to contract research organizations (“CROs”) and clinical trial sites, employee and consultant related expenses, which include salaries, benefits and stock-based compensation for research and development personnel, external research and development expenses incurred pursuant to agreements with third-party manufacturing organizations, facilities costs, travel costs, dues and subscriptions, depreciation and materials used in preclinical studies, clinical trials and research and development. The Company estimates its preclinical study and clinical trial expenses based on the services it received pursuant to contracts with research institutions and CROs that conduct and manage preclinical studies and clinical trials on the Company’s behalf. Clinical trial-related contracts vary significantly in length, and may be for a fixed amount based on milestones or deliverables, a variable amount based on actual costs incurred, capped at a certain limit, or a combination of these elements. The Company accrues service fees based on work performed, which relies on estimates of total costs incurred based on milestones achieved, patient enrollment and other events. The majority of the Company’s service providers invoice the Company in arrears, and to the extent that amounts invoiced differ from its estimates of expenses incurred, the Company accrues for additional costs. The financial terms of these agreements vary from contract to contract and may result in uneven expenses and payment flows. Preclinical study and clinical trial expenses include: • fees paid to CROs, consultants and laboratories in connection with preclinical studies; • fees paid to CROs, clinical trial sites, investigators and consultants in connection with clinical trials; and • fees paid to contract manufacturers and service providers in connection with the production, testing and packaging of active pharmaceutical ingredients and drug materials for preclinical studies and clinical trials. Payments under some of these agreements depend on factors such as the milestones accomplished, including enrollment of certain numbers of patients, site initiation and the completion of clinical trial milestones. To date, the Company has not experienced any events requiring it to make material adjustments to its accruals for service fees. If the Company does not identify costs that it has begun to incur or if it underestimates or overestimates the level of services performed or the costs of these services, its actual expenses could differ from its estimates which could materially affect its results of operations. Adjustments to the Company’s accruals are recorded as changes in estimates become evident. Furthermore, based on amounts invoiced to the Company by its service providers, the Company may also record payments made to those providers as prepaid expenses that will be recognized as expense in future periods as services are rendered. In May 2014, the Company entered into a master license agreement, pursuant to which it acquired certain rights to a number of research and development programs from Ligand Pharmaceuticals Incorporated (“ Research and Development, Patent Costs Costs related to filing and pursuing patent applications are expensed as incurred to general and administrative expense, as recoverability of such expenditures is uncertain. Stock-Based Compensation The Company generally uses the straight-line method to allocate compensation cost to reporting periods over each optionee’s requisite service period, which is generally the vesting period, and estimates the fair value of stock-based awards or restricted stock units to employees and directors using the Black-Scholes option-valuation model (the “Black-Scholes model”). The Black-Scholes model requires the input of subjective assumptions, including volatility, the expected term and the fair value of the underlying common stock on the date of grant, among other inputs. For restricted stock and restricted stock unit awards, the Company generally uses the straight-line method to allocate compensation cost to reporting periods over the holder’s requisite service period, which is generally the vesting period, and uses the fair value at grant date to value the awards. For restricted stock that vests upon the satisfaction of certain performance conditions, the Company recognizes stock-based compensation expense when it becomes probable that the performance conditions will be met. At the grant date, the Company determines the grant date fair value, as a publicly traded company, using the intrinsic value, or the closing price of the Company’s common stock on the date of grant. At the point where the criteria are deemed probable of being met, the Company records stock-based compensation with a cumulative catch-up expense in the period first recognized and then on a straight-line basis over the remaining period for which the performance criteria are expected to be completed. For the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”), the Company generally recognizes compensation expense for the fair value of the purchase options, as measured on the grant date, and uses the graded vesting method to allocate this compensation cost to each purchase period within the related two-year offering period. As the ESPP also allows for up to one increase in contributions during each purchase period, as an employee elects to increase his or her contributions, the Company treats this as an accounting modification. The pre- and post-modification values are calculated on the date of the modification, and the incremental expense is then amortized over the remaining purchase periods. Income Taxes The Company accounts for its income taxes using the liability method whereby deferred tax assets and liabilities are determined based on temporary differences between the basis used for financial reporting and income tax reporting purposes. Deferred income taxes are provided based on the enacted tax rates in effect at the time such temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not that the Company will not realize those tax assets through future operations. ASC Topic 740-10, Income Taxes The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. Net Loss per Common Share Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, the Company currently does not have any deemed common share equivalents; therefore, its basic and diluted net loss per share calculations are the same. The following table presents the computation of basic and diluted net loss per common share (in thousands, except share and per share data): Year Ended December 31, 2019 2018 Historical net loss per share Numerator Net loss $ (25,779 ) $ (22,063 ) Denominator Weighted-average common shares outstanding 72,142,188 57,784,402 Less: Weighted-average shares subject to repurchase (183,095 ) (204,158 ) Denominator for basic and diluted net loss per share 71,959,093 57,580,244 Basic and diluted net loss per share $ (0.36 ) $ (0.38 ) Potentially dilutive securities that are not included in the calculation of diluted net loss per share because their effect is anti-dilutive are as follows (in common equivalent shares): Year Ended December 31, 2019 2018 Common stock warrants 5,841,301 6,369,996 Restricted stock units 352,726 128,125 Common stock subject to repurchase 183,095 183,095 Common stock options 2,580,476 2,014,047 8,957,598 8,695,263 Segments The Company operates in only one segment. Management uses cash flows as the primary measure to manage its business and does not segment its business for internal reporting or decision making purposes. Recent Accounting Pronouncements Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), which establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for most leases. In July 2018, the FASB issued ASU No. 2018-11 (“ASU 2018-11”), which amends the guidance to add a method of adoption whereby the issuer may elect to recognize a cumulative effect adjustment at the beginning of the period of adoption. ASU 2018-11 does not require comparative period financial information to be adjusted. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. To determine whether a contract conveys the right to control the use of the identified asset for a period of time, the customer has to have both (1) the right to obtain substantially all of the economic benefits from the use of the identified asset and (2) the right to direct the use of the identified asset; a contract does not contain an identified asset if the supplier has a substantive right to substitute such asset (“the leasing criteria”). The Company has determined that its office lease, which has a term in excess of one year, meets the leasing criteria. Therefore, on January 1, 2019, the Company adopted ASU 2016-02, applying the package of practical expedients to leases that commenced before the effective date whereby the Company elected not to reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The Company elected to apply the transition provisions as of January 1, 2019, the date of adoption, and the Company recorded lease ROU assets of $858,000 and related lease liabilities of $882,000 on its balance sheet related to its operating lease. The Company has no financing leases. There were no changes to the Company’s statements of operations or cash flows. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) |
Investments in Marketable Secur
Investments in Marketable Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments in Marketable Securities | 2. Investments in Marketable Securities The Company’s investment strategy is focused on capital preservation. The Company invests in instruments that meet the credit quality standards outlined in the Company’s investment policy. This policy also limits the amount of credit exposure to any one issue or type of instrument. As of December 31, 2019 and 2018, the Company’s investments were in money market funds, commercial paper and corporate debt securities. There were no sales of available-for-sale securities during the years ended December 31, 2019 and 2018. Investments classified as available-for-sale as of December 31, 2019 consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains (1) Gross Unrealized Losses (1) Aggregate Estimated Fair Value Commercial paper (2) $ 1,495 $ — $ — $ 1,495 Corporate debt securities (2) 265,754 190 (178 ) 265,766 $ 267,249 $ 190 $ (178 ) $ 267,261 (1) Unrealized gains and losses on available-for-sale securities are included as a component of comprehensive loss. At December 31, 2019, there were 87 securities in an unrealized gain position and 66 securities in an unrealized loss position. The unrealized gains were less than $22,000 individually and $190,000 in the aggregate. The unrealized losses were less than $32,000 individually and $178,000 in the aggregate. Nine of these securities have been in a continuous unrealized loss or unrealized gain position for more than 12 months. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Company reviews its investments to identify and evaluate investments that have an indication of possible other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. (2) At December 31, 2019, none of these securities were classified as cash and cash equivalents on the Company’s balance sheet and $5.9 million of these securities were scheduled to mature outside of one year at the time of purchase. Investments classified as available-for-sale as of December 31, 2018 consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains (1) Gross Unrealized Losses (1) Aggregate Estimated Fair Value Commercial paper (2) $ 3,479 $ — $ — $ 3,479 Corporate debt securities (2) 273,677 1 (416 ) 273,262 $ 277,156 $ 1 $ (416 ) $ 276,741 (1) Unrealized gains and losses on available-for-sale securities are included as a component of comprehensive loss. At December 31, 2018, there were 181 securities in an unrealized loss position and three securities in an unrealized gain position. These unrealized losses were less than $17,000 individually and $416,000 in the aggregate. The unrealized gains were less than $1,000 individually and $1,000 in the aggregate. These securities have not been in a continuous unrealized loss position for more than 12 months. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Company reviews its investments to identify and evaluate investments that have an indication of possible other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. (2) At December 31, 2018, none of these securities were classified as cash and cash equivalents on the Company’s balance sheet and $10 million of these securities were scheduled to mature outside of one year at the time of purchase. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, investments and accounts payable and, through May 21, 2018, debt and its related debt conversion feature liability. The carrying amounts reported in the accompanying balance sheets for cash and cash equivalents and accounts payable approximate fair value because of the short-term maturity of those instruments. Further, the Company believed the fair value of the debt approximated its carrying value based upon relatively stable interest rates and the short-term maturity of the instrument. Fair value measurements are classified and disclosed in one of the following three categories: Level 1 —Quoted prices in active markets for identical assets or liabilities. Level 2 —Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of December 31, 2019 and 2018, all of the Company’s financial assets that were subject to fair value measurements were valued using observable inputs. The Company’s financial assets valued based on Level 1 inputs consist of money market funds and certificates of deposit. The Company’s financial assets valued based on Level 2 inputs consist of corporate debt securities, which consist of investments in highly-rated investment-grade corporations. The Company’s investment strategy is focused on capital preservation. The Company invests in instruments that meet the credit quality standards outlined in the Company’s investment policy. This policy also limits the amount of credit exposure to any one issue or type of instrument. As of December 31, 2019, the Company’s investments were in government money market funds, commercial paper and corporate debt securities. The fair values of the Company’s financial instruments are presented below (in thousands): Fair Value Measurements at December 31, 2019 Total Level 1 Level 2 Level 3 Financial assets carried at fair value: Cash equivalents: Government money market funds $ 3,671 $ 3,671 $ — $ — Corporate debt securities, available-for-sale 3,498 — 3,498 — Short-term investments Commercial paper, available for sale 1,495 — 1,495 — Corporate debt securities, available-for-sale 265,766 — 265,766 — Total financial assets $ 274,430 $ 3,671 $ 270,759 $ — Fair Value Measurements at December 31, 2018 Total Level 1 Level 2 Level 3 Financial assets carried at fair value: Cash equivalents: Government money market funds $ 1,724 $ 1,724 $ — $ — Corporate debt securities, available-for-sale 21,976 — 21,976 — Short-term investments Commercial paper, available for sale 3,479 — 3,479 — Corporate debt securities, available-for-sale 273,262 — 273,262 — Total financial assets $ 300,441 $ 1,724 $ 298,717 $ — |
Agreements with Ligand Pharmace
Agreements with Ligand Pharmaceuticals Incorporated | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Agreements with Ligand Pharmaceuticals Incorporated | 4. Agreements with Ligand Pharmaceuticals Incorporated In May 2014, the Company entered into a master license agreement with Ligand, as amended (the “Master License Agreement”), pursuant to which, among other things, the Company acquired the rights to a number of research and development programs under patents related to the Company’s VK5211, VK2809, VK0214, VK0612, erythropoietin receptor (“EPOR”) and diacylglycerol acyltransferase-1 (“DGAT-1”) programs, related know-how controlled by Ligand and physical quantities of VK5211, VK2809, VK0214, VK0612, EPOR and DGAT-1 compounds. Pursuant to the terms of the Master License Agreement, the Company has the exclusive right and sole responsibility and decision-making authority for researching and developing any pharmaceutical products that contain or comprise one or any combination of the technology and compounds licensed from Ligand pursuant to the Master License Agreement (the “Licensed Products”). The Company also has the exclusive right and sole responsibility and decision-making authority to conduct all clinical trials and preclinical studies that the Company believes are appropriate to obtain the regulatory approvals necessary for commercialization of the Licensed Products, and the Company will own and maintain all regulatory filings and all regulatory approvals for the Licensed Products. Additionally, pursuant to the terms of the Master License Agreement, the Company has the sole decision-making authority and responsibility and the exclusive right to commercialize any of the Licensed Products, either by itself or, in certain circumstances, through sublicensees selected by the Company. The Company also has the exclusive right to manufacture or have manufactured any Licensed Product itself or, in certain circumstances, through sublicensees or third parties selected by the Company. The Company will own any intellectual property that it develops in connection with the license granted under the Master License Agreement. As partial consideration for the grant of the rights and licenses to the Company under the Master License Agreement, the Company issued to Ligand at the closing of the Company’s initial public offering (“IPO”) 3,655,964 shares of its common stock having an estimated aggregate value of $29.2 million. Furthermore, as partial consideration for the grant of the rights and licenses to the Company under the Master License Agreement the Company entered into the Loan and Security Agreement with Ligand. As further partial consideration for the grant of the rights and licenses to the Company by Ligand under the Master License Agreement, the Company has agreed to pay to Ligand certain one-time, non-refundable milestone payments in connection with the Licensed Products of up to $1.54 billion in the aggregate upon the achievement of certain development, regulatory and sales milestones. The Company will also pay to Ligand royalties on aggregate annual worldwide net sales of Licensed Products by the Company, its affiliates and its sublicensees at tiered percentage rates from the low-to-upper single digits based upon net sales. The term of the Master License Agreement will continue unless the agreement is terminated by the Company or Ligand, and each of the Company and Ligand have the right to terminate the Master License Agreement in certain circumstances, including, without limitation, if the other party defaults on certain of its obligations under the Master License Agreement. Ligand has the right to terminate the Master License Agreement under certain circumstances, including, but not limited to: (1) in the event of the Company’s insolvency or bankruptcy, (2) if the Company does not pay an undisputed amount owing under the Master License Agreement when due and fails to cure such default within a specified period of time, or (3) if the Company defaults on certain of its material and substantial obligations and fails to cure the default within a specified period of time. The Company has the right to terminate the Master License Agreement under certain circumstances, including, but not limited to: (i) if Ligand does not pay an undisputed amount owing under the Master License Agreement when due and fails to cure such default within a specified period of time, or (ii) if Ligand defaults on certain of its material and substantial obligations and fails to cure the default within a specified period of time. In addition, provisions of the Master License Agreement can be terminated on a licensed program-by-program basis under certain circumstances. In the event that the Master License Agreement is terminated in its entirety or with respect to a specific licensed program for any reason: (A) all licenses granted to the Company under the Master License Agreement (or with respect to the specific licensed program) will terminate and the Company will, upon Ligand’s request (subject to Ligand assuming legal responsibility for any clinical trials of the Licensed Products then ongoing), assign and transfer to Ligand (or to such transferee as Ligand may direct), at no cost to Ligand, all regulatory documentation and all regulatory approvals prepared or obtained by the Company or on its behalf related to the Licensed Products (or those related to the specific licensed program), or, if Ligand does not make such a request, the Company will wind down any ongoing clinical trials with respect to the Licensed Products (or those related to the specific licensed program) at no cost to Ligand; (B) the Company will, upon Ligand’s request, sell and transfer to Ligand (or to such transferee as Ligand may direct), at a price equal to 125% of the Company’s costs of goods, any and all chemical, biological or physical materials relating to or comprising the Licensed Products (or those related to the specific licensed program); (C) the Company will have, for a period of six months following termination, the right to sell on the normal business terms in existence before such termination any finished commercial inventory of Licensed Products (or those related to the specific licensed program) which remains on hand, so long as the Company pays to Ligand the applicable royalties and sales milestones; (D) Ligand has the right to require the Company to assign to Ligand the trademarks owned by the Company relating to the Licensed Products (or those related to the specific licensed program); and (E) the Company will grant to Ligand a non-exclusive, worldwide, royalty-bearing sublicensable license under any patent rights and know-how controlled by the Company to the extent necessary to make, have made, import, use, offer to sell and sell the Licensed Products (or those related to the specific licensed program) anywhere in the world at a royalty rate in the low single digits. Under the Master License Agreement, the Company has agreed to indemnify Ligand for claims relating to the performance of the Company’s obligations under the Master License Agreement, any breach of the representations and warranties made by the Company under the Master License Agreement, clinical trials conducted by the Company and the research, development and commercialization of the Licensed Products by the Company and its affiliates, sublicensees, distributors and agents. In addition, Ligand has agreed to indemnify the Company for claims relating to the performance of its obligations under the Master License Agreement, its breach of representations and warranties under the agreement and its research and development of the licensed compounds before the effective date of the Master License Agreement. Each party’s indemnification obligations will not apply to the extent the claims result from the negligence or willful misconduct of the indemnified party or any of its employees, agents, officers or directors or from the indemnified party’s breach of its representations or warranties set forth in the Master License Agreement. On September 6, 2014, the Company and Ligand entered into an amendment to the Master License Agreement pursuant to which the parties agreed to certain modifications to the calculations used to determine the number of shares issuable to Ligand pursuant to the Master License Agreement. As a result of the modification, the Company incurred an incremental charge to research and development expense of $518,000 and a corresponding increase in the accrued license fees. In connection with entering into the Master License Agreement with Ligand, the Company entered into the Loan and Security Agreement, pursuant to which, among other things, Ligand agreed to provide the Company with loans in the aggregate amount of up to $2.5 million. On May 21, 2018, the Company repaid the entire remaining balance of $3.9 million due on the Ligand Note in cash. During the year ended December 31, 2018, the Company recorded $38,000 of interest expense, $404,000 of amortization of debt discount, and $1.4 million as other income related to the decrease in the fair value of the debt conversion feature liability. In May 2014, the Company also entered into a Management Rights Letter (the “Management Rights Letter”) with Ligand that requires the Company to expand the size of the Company’s board of directors to create an additional directorship on the Company’s board of directors and to allow Ligand to appoint an individual to fill the new directorship. The Management Rights Letter will terminate upon the earliest to occur of the liquidation or indefinite cessation of the Company’s business operations, the execution by the Company of a general assignment for the benefit of creditors or the appointment of a receiver or trustee to take possession of the Company’s property and assets, an acquisition of the Company by means of any transaction (including, without limitation, any reorganization, merger or consolidation) if the Company’s stockholders of record as constituted immediately prior to the transaction hold less than 50% of the voting power of the surviving or acquiring entity, or following the issuance of the Company’s securities pursuant to the Master License Agreement, the date that Ligand ceases to beneficially own at least 7.5% of the Company’s outstanding voting stock, or the date of May 21, 2024. The Company also entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with Ligand in May 2014 for which the Company granted certain registration rights to Ligand with respect to the securities of the Company issued to Ligand pursuant to the Master License Agreement and the Ligand Note (collectively, the “Viking Securities”), the shares of the Company’s common stock issued or issuable upon conversion of the Viking Securities, if applicable, the shares of the Company’s common stock issued as a dividend or other distribution with respect to, in exchange for or in replacement of the Viking Securities and the shares of the Company’s capital stock issued upon conversion of the Ligand Note (collectively, the “Registrable Securities”). Under the Registration Rights Agreement, the Company agreed to file with the SEC a registration statement on under the Securities Act of 1933, as amended (the “Securities Act”), that covered the resale of the full amount of the Registrable Securities. On February 14, 2017, the Company filed a Registration Statement on Form S-3 under the Securities Act covering the resale of the full amount of the Registrable Securities. |
Operating Leases - Right-of-Use
Operating Leases - Right-of-Use Assets and Lease Liability Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Leases - Right-of-Use Assets and Lease Liability Obligations | 5. Operating Leases – Right-of-Use Assets and Lease Liability Obligations The Company has only one operating lease which is for office space that expires in January 2022. Below is a summary of the Company’s right-of-use assets and lease liabilities as of December 31, 2019 (in thousands, except for years and %): Right of use assets $ 598 Lease liability obligations, current $ 302 Lease liability obligations, less current portion 360 Total lease liability obligations $ 662 Weighted-average remaining lease term 2.08 years Weighted-average discount rate 6.00 % During the year ended December 31, 2019, the Company recognized $308,000 in operating lease expenses, which are included in operating expenses in the Company’s statement of operations. Approximate future minimum lease payments for the Company’s right-of-use assets over the remaining lease period as of December 31, 2019 are as follows (in thousands): 2020 $ 333 2021 343 2022 29 Total minimum lease payments $ 705 Less: amount representing interest $ (43 ) Total lease liability obligations $ 662 The operating lease provides the Company with an option to extend the term of the lease for a period of three years beyond the expiration date of January 2022. If the option is exercised, the renewal term will be upon the same terms and conditions as the original agreement, except that the base rent will be equal to the prevailing market rate as determined pursuant to the terms of the lease. The option to extend the operating lease was not recognized as part of the Company’s lease liability and right-of-use assets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity Preferred Stock The Company is authorized to issue up to 10,000,000 shares of $0.00001 par value preferred stock, with no shares of preferred stock outstanding as of December 31, 2019 and 2018. The Board of Directors is authorized to designate the terms and conditions of any preferred stock the company issues without further action by the common stockholders. Common Stock The Company is authorized to issue up to 300,000,000 shares of common stock, $0.00001 par value per share. In February 2014, the Company entered into a stock purchase agreement with one of its founders. The agreement provided for the purchase of 1,000,000 shares of the Company’s common stock at a price per share of $0.01 in exchange for future services to be rendered to the Company as measured by certain performance criteria. The shares were subject to a repurchase option and were to vest in two tranches of 500,000 shares each, upon achievement of the performance target or upon a triggering event as defined. The Company determined that the fair value of the unrecognized expense was $168,000 at February 20, 2014, the grant date. In May 2015, the Company repurchased 633,810 of these shares at a purchase price of $0.00001 per share. In connection with the repurchase, the Company entered into an amendment to the stock purchase agreement to provide that the remaining 366,190 shares will continue to vest in two tranches of 183,095 shares each, upon achievement of the performance target or upon a triggering event as defined. The pro rata grant date fair value of the unrecognized expense is $62,000. In October 2015, a triggering event became probable of occurrence and was deemed achieved in October 2016; therefore, the Company recorded $31,000 of stock-based compensation expense through December 31, 2016. No similar expense was recognized during the years ended December 31, 2019 and 2018. The Company will continue to reassess at each reporting period whether it is probable that the performance target will be achieved, and if and when it is deemed probable, the Company will begin to record compensation expense using the fair value to determine stock-based compensation expense in its financial statements over the period the Company estimates the performance target will actually be achieved. On February 8, 2017, the Company entered into a Stock Purchase Agreement (the “SPA”), with PoC Capital, LLC (“PoC”) pursuant to which, among other things, the Company issued to PoC 1,286,173 shares of its common stock. Under the terms of the SPA, PoC has agreed to fund $1,800,000 in study costs associated with certain clinical studies. Any study costs in excess of that amount will be the Company’s sole responsibility. The Company has accounted for the $1,800,000 as a prepaid expense on the balance sheet, which was fully amortized as of December 31, 2019. During the years ended December 31, 2019 and 2018, the Company recorded amortization expense of $140,000 and $666,000, respectively, in clinical study costs related to the SPA with PoC. On September 28, 2017, the Company entered into the Registered Offering Purchase Agreement, pursuant to which, on September 29, 2017, the Company sold to Lincoln Park Capital Fund, LLC (“LPC”), 701,282 shares of common stock, at a price of approximately $1.78 per share for an aggregate purchase price of $1.3 million, pursuant to the Company’s effective shelf registration statement on Form S-3 (Registration No. 333-212134), filed with the SEC on June 20, 2016, as amended by Amendment No. 1 thereto filed with the SEC on July 26, 2016, and declared effective on July 26, 2016, and the prospectus supplement thereto dated September 28, 2017. On September 28, 2017, the Company also entered into the Commitment Purchase Agreement and the LPC Registration Rights Agreement with LPC, pursuant to which the Company has the right to sell to LPC up to $15,000,000 in shares of common stock, subject to certain limitations and conditions set forth in the Commitment Purchase Agreement. Upon the Commencement, the Company will have the right, from time to time at its sole discretion over the 30-month period from and after the Commencement, to direct LPC to purchase up to 75,000 shares of common stock on any business day (subject to certain limitations contained in the Commitment Purchase Agreement), with such amounts increasing based on certain threshold prices set forth in the Commitment Purchase Agreement; however, not to exceed $1.0 million in total purchase proceeds per purchase date. The purchase price of shares of common stock that the Company elects to sell to LPC pursuant to the Commitment Purchase Agreement will be based on the market prices of the common stock at the time of such purchases as set forth in the Commitment Purchase Agreement. In addition to regular purchases, as described above, the Company may also direct LPC to purchase additional amounts as accelerated purchases or as additional purchases if the closing sale price of the common stock is not below certain threshold prices, as set forth in the Commitment Purchase Agreement. In all instances, the Company may not sell shares of its common stock to LPC under the Commitment Purchase Agreement if it would result in LPC beneficially owning more than 4.99% of the Common Stock. As consideration for LPC’s commitment to purchase shares of common stock pursuant to the Commitment Purchase Agreement, the Company issued to LPC 100,000 shares of common stock From inception of the Commitment Purchase Agreement through December 31, 2017, Commitment Purchase On February 6, 2018, the Company completed an underwritten public offering of common stock pursuant to the Shelf Registration Statement (the “February 2018 Offering”). In the February 2018 Offering, the Company sold 12,650,000 shares of the Company’s common stock at a public offering price of $5.00 per share of common stock. Upon the closing of the February 2018 Offering on February 6, 2018, the Company received net proceeds of $58.7 million, after deducting underwriting discounts, commissions and other offering expenses. On June 11, 2018, the Company completed an underwritten public offering of common stock (the “June 2018 Offering”) pursuant to the Shelf Registration Statement and a registration statement on Form S-3MEF (File No. 333-225479) filed pursuant to Rule 462(b) of the Securities Act of 1933, as amended. In the June 2018 Offering, the Company sold 8,625,000 shares of the Company’s common stock at a public offering price of $9.00 per share of common stock. Upon the closing of the June 2018 Offering on June 11, 2018, the Company received net proceeds of $72.3 million, after deducting underwriting discounts, commissions and other offering expenses. On September 25, 2018, the Company completed an underwritten public offering of common stock (the “September 2018 Offering”) pursuant to the Company’s universal shelf registration statement on Form S-3 (File No. 333-226133), filed with the SEC on July 11, 2018 and declared effective on July 19, 2018. In the September 2018 Offering, the Company sold 9,500,000 shares of the Company’s common stock at a public offering price of $18.50 per share. Upon the closing of the September 2018 Offering on September 25, 2018, the Company received net proceeds of $165.0 million, after deducting underwriting discounts, commissions and other offering expenses. On August 1, 2019, the Company entered into an At-The-Market Equity Offering Sales Agreement (the “ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated and Oppenheimer & Co. Inc. During the years ended December 31, 2019 and 2018, and in accordance with the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”), the Company issued an aggregate of 20,114 and 148,713 shares of its common stock to certain employees, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation In connection with the IPO, the Company’s 2014 Equity Incentive Plan (the “2014 Plan”) and the ESPP became effective on April 28, 2015, the date of the execution and delivery of the underwriting agreement for the IPO. A total of 1,527,770 shares of the Company’s common stock were initially reserved for issuance under the 2014 Plan, and 458,331 shares of the Company’s common stock were initially reserved for issuance under the ESPP. From January 1, 2016 and through December 31, 2019, in accordance with the terms of the 2014 Plan, an additional 4,832,334 shares of the Company’s common stock were added to the number of shares reserved for issuance under the 2014 Plan, respectively, and, in accordance with the terms of the ESPP, an additional 1,380,666 shares of the Company’s common stock were added to the number of shares reserved for issuance under the ESPP, respectively. The Company generally uses the straight-line method to allocate compensation cost to reporting periods over each optionee’s requisite service period, which is generally the vesting period, and estimates the fair value of stock-based awards or restricted stock units to employees and directors using the Black-Scholes option-valuation model. The Black-Scholes model requires the input of subjective assumptions, including volatility, the expected term and the fair value of the underlying common stock on the date of grant, among other inputs. For restricted stock and restricted stock unit awards, the Company generally uses the straight-line method to allocate compensation cost to reporting periods over the holder’s requisite service period, which is generally the vesting period, and uses the fair value at grant date to value the awards. For restricted stock that vests upon the satisfaction of certain performance conditions, the Company recognizes stock-based compensation expense when it becomes probable that the performance conditions will be met. At the grant date, the Company determines the grant date fair value, as a publicly traded company, using the intrinsic value, or the closing price of its common stock on the date of grant. At the point where the criteria are deemed probable of being met, the Company records stock-based compensation with a cumulative catch-up expense in the period first recognized and then on a straight-line basis over the remaining period for which the performance criteria are expected to be completed. For the ESPP, the Company generally recognizes compensation expense for the fair value of the purchase options, as measured on the grant date, and uses the graded vesting method to allocate this compensation cost to each purchase period within the related two-year offering period. As the ESPP also allows for up to one increase in contributions during each purchase period, then as an employee elects to increase their contributions, the Company treats this as an accounting modification. The pre- and post-modification values are calculated on the date of the modification, and the incremental expense is then amortized over the remaining purchase periods. 2014 Plan. The 2014 Plan provides that the compensation committee of the Company’s Board of Directors (the “Compensation Committee”) may grant or issue stock options, stock appreciation rights, restricted shares, restricted stock units and unrestricted shares, deferred share units, performance and cash-settled awards and dividend equivalent rights to participants under the 2014 Plan. Initially, a total of 1,527,770 shares of the Company’s common stock were reserved for issuance pursuant to the 2014 Plan, which number is also the limit on shares of common stock available for awards of incentive stock options. The number of shares available for issuance under the 2014 Plan will, unless otherwise determined by the Company’s Board of Directors or the Compensation Committee, be automatically increased on January 1st of each year commencing on January 1, 2016 and ending on (and including) January 1, 2024, in an amount equal to 3.5% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year. The shares of common stock deliverable pursuant to awards under the 2014 Plan are authorized but unissued shares of the Company’s common stock, or shares of the Company’s common stock that the Company otherwise holds in treasury or in trust. Any shares of the Company’s common stock underlying awards that are settled in cash or otherwise expire, or are forfeited, terminated or cancelled (including pursuant to an exchange program established by the Compensation Committee) prior to the issuance of stock will again be available for issuance under the 2014 Plan. In addition, shares of the Company’s common stock that are withheld (or not issued) in payment of the exercise price or taxes relating to an award, and shares of the Company’s common stock equal to the number surrendered in payment of any exercise price or withholding taxes relating to an award, will again be available for issuance under the 2014 Plan. ESPP. Initially, a total of 458,331 shares of the Company’s common stock were reserved for issuance pursuant to the ESPP. The number of shares available for issuance under the ESPP will, unless otherwise determined by the Company’s Board of Directors or the Compensation Committee, be automatically increased on January 1st of each year commencing on January 1, 2016 and ending on (and including) January 1, 2024, in an amount equal to 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year. The shares of common stock available for purchase pursuant to the ESPP are authorized but unissued shares of the Company’s common stock, shares of the Company’s common stock that the Company otherwise holds in treasury or shares of the Company’s common stock that were purchased on the open market in arms’ length transactions in accordance with applicable securities laws. Shares of the Company’s common stock will be offered for purchase under the ESPP as determined by the Compensation Committee through a series of successive offerings that each have a term of 24 months and consist of four consecutive purchase periods of six months each. Prior to the commencement of any future offering under the ESPP, the Compensation Committee may determine that the current offering shall end, may commence a new offering on the first day after the end of such terminal purchase period (or any desired later date), and may decide that future offerings will consist of one or more consecutive purchase periods, each to be of such duration as determined by the Compensation Committee; however, no offering will exceed 27 months and no purchase period will exceed one year. Each employee of the Company who (1) is an employee on the first date of any offering under the ESPP, (2) is customarily scheduled to work for more than 20 hours per week and more than five months per calendar year, and (3) meets such other criteria as may be determined by the Compensation Committee (consistent with Section 423 of the Internal Revenue Code of 1986, as amended), is eligible to participate in the ESPP for each purchase period within such offering. The purchase price per share of the Company’s common stock under the ESPP may not be less than, and will initially be equal to, the lesser of: (1) 85% of the fair market value per share of the Company’s common stock on the first day of the offering, or (2) 85% of the fair market value per share of the Company’s common stock on the date the purchase right is exercised, which will be the last day of the applicable purchase period. During the years ended December 31, 2019 and 2018, the Company recognized the following stock-based compensation expense (in thousands): Year Ended December 31, 2019 2018 Stock-based compensation expense by type of award: Stock options $ 2,401 $ 1,320 Restricted stock and restricted stock units 1,126 482 Employee stock purchase plan 216 806 Total stock-based compensation expense included in expenses $ 3,743 $ 2,608 Stock-based compensation expense by line item: Research and development expenses $ 953 $ 956 General and administrative expenses 2,790 1,652 Total stock-based compensation expense included in expenses $ 3,743 $ 2,608 The following table sets forth the Company’s unrecognized stock-based compensation expense, net of estimated forfeitures, by type of award and the weighted-average period over which that expense is expected to be recognized (in thousands, except for years): As of December 31, 2019 Unrecognized Expense Weighted- average Recognition Period (in years) Type of award: Stock options $ 3,525 2.43 Restricted stock and restricted stock units $ 1,553 1.85 The following table is a summary of restricted shares granted during the years ended December 31, 2019 and 2018: Shares Weighted- Average Grant Date Fair Value Unvested at December 31, 2017 245,096 $ 2.53 Granted — $ — Vested (62,001 ) $ 9.49 Forfeited — $ — Repurchased — $ — Unvested at December 31, 2018 183,095 $ 0.17 Granted — $ — Vested — $ — Forfeited — $ — Repurchased — $ — Unvested at December 31, 2019 183,095 $ 0.17 The following table summarizes restricted stock units activity during the years ended December 31, 2019 and 2018: Shares Weighted- Average Grant Date Value Unvested at December 31, 2017 46,250 $ 5.50 Granted 105,000 $ 5.34 Vested (23,125 ) $ 5.50 Forfeited — $ — Unvested at December 31, 2018 128,125 $ 5.37 Granted 343,524 $ 7.80 Vested (58,122 ) $ 5.40 Forfeited (60,801 ) $ 7.57 Unvested December 31, 2019 352,726 $ 7.35 In January 2019, the Company issued 221,600 performance based restricted stock units (PRSU awards) to several of its employees, which are reflected in the above summary of restricted stock unit activity. The shares subject to the PRSU awards shall vest upon the Company achieving certain milestones, with 100% of the PRSU awards vesting upon the achievement of three of the milestones over a four-year period, with any then-unvested portion of the PRSU awards to be cancelled on the four-year anniversary of the grant dates. As of December 31, 2019, 20,000 PRSU awards were forfeited and three of the milestones were deemed as probable of achievement, resulting in the Company recording stock-based compensation expense of $734,000 during the year ended December 31, 2019. The following table summarizes stock option activity during the years ended December 31, 2019 and 2018: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at December 31, 2017 1,575,864 $ 2.68 Granted 628,500 $ 5.89 Exercised (171,567 ) $ 2.31 $ 1,336,000 Cancelled (18,750 ) $ 1.91 Options outstanding at December 31, 2018 2,014,047 $ 3.72 8.04 $ 8,599,000 Granted 855,787 $ 7.82 Exercised (82,337 ) $ 2.40 $ 423,000 Cancelled (207,021 ) $ 6.51 Options outstanding at December 31, 2019 2,580,476 $ 4.90 7.66 $ 8,643,000 Options exercisable at December 31, 2019 1,218,098 $ 3.83 6.78 $ 5,459,000 The Company received $197,000 and $396,000 in cash proceeds from exercises of stock options during the years ended December 31, 2019 and 2018, respectively. The total fair value of stock options that vested during the years ended December 31, 2019 and 2018 was $1,343,000 and $852,000, respectively. Compensation expense for stock options granted to employees is based on the estimated grant date fair value and is recognized ratably over the vesting period of the applicable option. The estimated per share weighted average fair value of stock options granted to employees during the years ended December 31, 2019 and 2018 was $5.34 and $4.11, respectively. As stock-based compensation expense recognized is based on options ultimately expected to vest, the fair value of each employee option grant during the years ended December 31, 2019 and 2018 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Year ended December 31, 2019 2018 Expected volatility 77.9 % 80.9 % Expected term (in years) 6.01 6.00 Risk-free interest rate 2.26 % 2.55 % Expected dividend yield 0 % 0 % Expected Volatility. The expected volatility rate used to value stock option grants is based on volatilities of a peer group of similar companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical and biotechnology industry in a similar stage of development to the Company. Expected Term . The Company elected to utilize the “simplified” method for “plain vanilla” options to value stock option grants. Under this approach, the weighted-average expected life is presumed to be the average of the vesting term and the contractual term of the option. Risk-free Interest Rate . The risk-free interest rate assumption was based on zero-coupon U.S. Treasury instruments that had terms consistent with the expected term of the Company’s stock option grants. Expected Dividend Yield . The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. Forfeitures are accounted for as actual forfeitures occur. Since the Company had a net operating loss carryforward as of December 31, 2019, no excess tax benefits for the tax deductions related to stock-based awards were recognized in the Statements of Operations. Common Stock Reserved for Future Issuance Common stock reserved for future issuance as of December 31, 2019 is as follows: Common stock warrants 5,841,301 Restricted stock units 352,726 Common stock options 2,580,476 Available for grant under the 2014 Plan 2,835,203 Available for issuance under Employee Stock Purchase Plan 1,600,020 13,209,726 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | |
Warrants | 8. Warrants Upon the closing of the IPO, on May 4, 2015, the Company issued to the representative of the underwriters as additional compensation a warrant to purchase the aggregate of 82,500 shares of the Company’s common stock. All 82,500 warrants were exercised during the year ended December 31, 2018. The warrant was exercisable for cash or on a cashless basis at a per share exercise price equal to $10.00 commencing on April 28, 2016, one year following the date of the prospectus filed with the SEC relating to the IPO. On April 13, 2016, pursuant to the Offering, the Company sold 7,500,000 shares of its common stock and warrants to purchase up to 7,500,000 shares of its common stock at a public offering price of $1.25 per share of common stock and related warrant. The warrants have an exercise price of $1.50 per share of common stock, were immediately exercisable upon issuance and will expire on April 13, 2021. Additionally, on April 13, 2016, the underwriters for the Offering partially exercised the over-allotment option for warrants to purchase an additional 1,125,000 shares of the Company’s common stock at a public offering price of $0.01 per warrant to purchase a share of common stock. As of December 31, 2019, 3,995,906 warrants were outstanding and 528,695 and 3,648,098 warrants were exercised during the years ended December 31, 2019 and 2018, respectively. On April 13, 2016, pursuant to the terms of the Loan and Security Agreement , the Company issued to Ligand the Ligand Warrant to purchase up to 960,000 shares of the Company’s common stock. beneficial ownership of the Company’s common stock to greater than 49.9%) The Ligand Warrant was issued to Ligand as a part of the repayment of $1,200,000 of the Company’s obligation under the Ligand Note On June 14, 2017, pursuant to the terms of the Securities Purchase Agreement, the Company sold the 3,749,783 Shares and the Warrants to purchase up to 2,812,337 shares of its common stock to the Purchasers. The combined purchase price for one Share and one Warrant to purchase 0.75 shares of common stock in the Offerings, was $1.15. The closing of the Offerings occurred on June 19, 2017. The Warrants have an exercise price of $1.30 per share, subject to adjustment as provided therein, and were exercisable beginning on December 19, 2017 through December 19, 2022. Each holder of a Warrant does not have the right to exercise any portion of its Warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of common stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that upon 61 days’ prior notice to the Company, the holder may increase the Beneficial Ownership Limitation; however, in no event shall the Beneficial Ownership Limitation exceed 9.99%. The exercise price and number of shares of common stock issuable upon the exercise of the Warrants will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described in the Warrants. On January 16, 2018, the resale Registration Statement on Form S-1 (File No. 333-222202) that the Company filed related to the 1,987,337 shares subject to unexercised warrants was declared effective by the SEC. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Income tax expense (benefit) from continuing operations consists of the following for the years ended December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Current: Federal $ — $ — State — — $ — $ — Deferred: Federal $ (5,976 ) $ (6,283 ) State (1,857 ) (2,701 ) $ (7,833 ) $ (8,984 ) Change in federal tax rate — — Change in valuation allowance 7,833 8,984 Total income tax expense (benefit) $ — $ — The reconciliations of the U.S. federal statutory tax rate to the effective income tax rate for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 2018 Tax provision at U.S. Federal statutory rates 21 % 21 % State income taxes net of federal benefit 6 % 8 % Non-deductible permanent items (1 )% (1 )% Stock options (1 )% 1 % Enactment of the Tax Cuts and Jobs Act — — Research and development credits 5 % 10 % Other — 2 % Change in valuation allowance (30 )% (41 )% Effective income tax rate — — Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes as of December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Accrued liabilities $ 248 $ 66 Intangible assets 24,463 18,991 Net operating loss carryforwards 7,017 6,479 Share-based compensation 1,632 1,415 Credits 4,398 2,687 Other 5 121 Total deferred tax assets 37,763 29,759 Valuation Allowance (37,592 ) (29,759 ) Total deferred tax assets, net of allowance $ 171 $ — Deferred tax liabilities: Right of use assets $ (167 ) $ — Other (4 ) — Total deferred tax liabilities: $ (171 ) $ — Net deferred tax assets (liabilities): $ — $ — A valuation allowance of $37.6 million and $29.8 million at December 31, 2019 and December 31, 2018, respectively, has been recorded to offset net deferred tax assets, as the Company is unable to conclude that it is more likely than not that such deferred tax assets will be realized. At December 31, 2019, the Company had approximately $25.2 million of federal net operating loss carryforwards, of which $17.8 million will begin to expire in 2032 and the remaining $7.4 million of which can be carried forward indefinitely. The Company has $24.8 million of state net operating loss carryforwards that will begin to expire in 2034. The Company’s ability to utilize its federal net operating loss carryforwards may be limited under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). Specifically, this limitation may arise in the event of an “ownership change,” which is defined by Section 382 of the Code as a cumulative change in ownership of the Company of more than 50% within a three-year period. If the Company undergoes one or more ownership changes in connection with any future transactions in its stock, the Company’s ability to utilize net operating loss carryforwards to offset federal taxable income, if any, could potentially result in increased future tax liability to the Company. An ownership change under Section 382 of the Code occurred during the year ended December 31, 2018. Of the Company’s $25.2 million and $24.8 million of federal and state net operating loss carryforwards, $18.3 million and $17.9 million are limited based on the Company’s ownership change. The annual limitation is $5.7 million. The Company is subject to U.S. federal income tax as well as income tax in various state jurisdictions. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and various state agencies for the years ended December 31, 2015 through December 31, 2019. The differences between the Company’s effective income tax rate and the statutory federal rate for the year ended December 31, 2019 and the year ended December 31, 2018 relate primarily to losses incurred for which no tax benefit was recognized, due to the uncertainty of realization. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. The Company considers projected future taxable income and tax planning strategies in making this assessment. At each of December 31, 2019 and December 31, 2018, the Company provided a full valuation allowance against its deferred tax assets due to uncertainty surrounding the realization of those assets as a result of historical taxable net losses. At December 31, 2019, the Company has federal and state research and development tax credit carry-forwards of approximately $2.9 million and $1.5 million, respectively. The federal credits begin to expire in 2036. The state credits do not expire. The Company has reviewed its operations and has not identified any material uncertain tax positions. As a result, there is no liability for uncertain tax positions in the income tax provision as of December 31, 2019 or December 31, 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related-Party Transactions In May 2014, the Company entered into the Master License Agreement with Ligand, pursuant to which, among other things, Ligand granted the Company an exclusive worldwide license to certain clinical and preclinical programs. See Note 4 for more information related to this agreement. In connection with entering into the Master License Agreement, the Company also entered into a Loan and Security Agreement (see Note 6), a Management Rights Letter (see Note 4) and a Registration Rights Agreement (see Note 4). As Ligand beneficially owns 10.2% of the Company’s outstanding shares as of December 31, 2019, the Company considers Ligand to be a related party. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies On July 7, 2015, the Company entered into a Sublease (the “Sublease”) for approximately 7,049 rentable square feet of space located at 12340 El Camino Real, Suite 250, San Diego, California 92130 (the “Premises”). Under the Sublease, the Company is responsible for certain charges for common area maintenance and other costs, and the Sublease provides for abatement of rent during certain periods and escalating rent payments throughout the term of the Sublease. Rent expense is being recorded on a straight line basis over the life of the Sublease and the difference between the rent expense and rent paid is being recorded as deferred rent. In September 2018, the Company renewed the Sublease for one additional month through October 31, 2018. Minimum payments pursuant to the Sublease were $22,000 in the aggregate through October 31, 2018. Additionally, on May 25, 2018, the Company entered into an Office Lease (the “Lease”) with Kilroy Realty, L.P. The Lease is for approximately 7,149 rentable square feet of space located at the Premises. The Premises will continue to be the Company’s corporate headquarters. The Lease commenced on November 1, 2018 and will expire on January 31, 2022, unless terminated earlier in accordance with the terms of the Lease (the “Term”). Monthly base rent payments due under the Lease for the Premises will be $27,000, subject to annual increases of 3.0% during the term of the Lease. The Company is also responsible for certain other costs under the Lease, including electricity and utility expenses and certain repair and maintenance obligations. The Lease provides the Company with an option to extend the term of the lease for a period of three years beyond the Term. If the option is exercised, the renewal term will be upon the same terms and conditions as the original Term, except that the base rent will be equal to the prevailing market rate as determined pursuant to the terms of the Lease. Rent expense was $308,000 and $197,000 for the years ended December 31, 2019 and 2018, respectively. Future minimum payments pursuant to the Lease are as follows (in thousands): Year Ending December 31: 2020 $ 333 2021 343 2022 29 Total minimum lease payments $ 705 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events The Company evaluated subsequent events through the date of the filing of this Annual Report on Form 10-K with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of December 31, 2019, and events which occurred subsequent to December 31, 2019 but were not recognized in the financial statements. The Company has determined that there were no subsequent events which required recognition, adjustment to or disclosure in the financial statements. |
Organization, Liquidity and M_2
Organization, Liquidity and Management's Plan, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | The Company Viking Therapeutics, Inc., a Delaware corporation (the “Company”), is a clinical-stage biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders. The Company was incorporated under the laws of the State of Delaware on September 24, 2012 and its principal executive offices are located in San Diego, CA. |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements. Significant estimates made in preparing these financial statements relate to determining the fair value of the debt conversion feature liability, through May 21, 2018, and accounting for operating lease and certain commitments. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. |
Investments Available-for-Sale | Investments Available-for-Sale Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in accumulated other comprehensive income (loss). The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. The amortization of premiums and accretion of discounts is included in interest income. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are included in other income (expense). The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and marketable securities. The Company maintains deposits in federally insured depository institutions in excess of federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Additionally, the Company has established guidelines regarding approved investments and maturities of investments, which are designed to maintain safety and liquidity. |
Prepaid Clinical Trial and Preclinical Study Costs | Prepaid Clinical Trial and Preclinical Study Costs Prepaid clinical trial and preclinical study costs represent advance payments by the Company for future clinical trial and preclinical study services to be performed by the clinical research organization and other research organizations. Such amounts are recognized as research and development expense as the related clinical trial and preclinical study services are performed. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, and lease liability obligations are included in the Company’s balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liability obligations represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases typically do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The ROU asset also includes any lease payments made and excludes lease incentives and lease direct costs. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. Please refer to Note 5 for additional information. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs represent legal, accounting and other direct costs related to the Company’s efforts to raise capital through a public or private sale of the Company’s common stock. Costs related to the public sale of the Company’s common stock are deferred until the completion of the applicable offering, at which time such costs are reclassified to additional paid-in-capital as a reduction of the proceeds. Costs related to the private sale of the Company’s common stock are deferred until the completion of the applicable offering, at which time such costs are amortized over the term of the applicable purchase agreement. |
Revenue Recognition | Revenue Recognition The Company has not recorded any revenues since its inception. However, in the future, the Company may enter into collaborative research and licensing agreements, under which the Company could be eligible for payments made in the form of upfront license fees, research funding, cost reimbursement, contingent event-based payments and/or royalties. On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers and all related amendments (“ASC 606” or “the new revenue standard”). ASC 606 is a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-s |
Research and Development Expenses | Research and Development Expenses All costs of research and development are expensed in the period incurred. Research and development costs primarily consist of fees paid to contract research organizations (“CROs”) and clinical trial sites, employee and consultant related expenses, which include salaries, benefits and stock-based compensation for research and development personnel, external research and development expenses incurred pursuant to agreements with third-party manufacturing organizations, facilities costs, travel costs, dues and subscriptions, depreciation and materials used in preclinical studies, clinical trials and research and development. The Company estimates its preclinical study and clinical trial expenses based on the services it received pursuant to contracts with research institutions and CROs that conduct and manage preclinical studies and clinical trials on the Company’s behalf. Clinical trial-related contracts vary significantly in length, and may be for a fixed amount based on milestones or deliverables, a variable amount based on actual costs incurred, capped at a certain limit, or a combination of these elements. The Company accrues service fees based on work performed, which relies on estimates of total costs incurred based on milestones achieved, patient enrollment and other events. The majority of the Company’s service providers invoice the Company in arrears, and to the extent that amounts invoiced differ from its estimates of expenses incurred, the Company accrues for additional costs. The financial terms of these agreements vary from contract to contract and may result in uneven expenses and payment flows. Preclinical study and clinical trial expenses include: • fees paid to CROs, consultants and laboratories in connection with preclinical studies; • fees paid to CROs, clinical trial sites, investigators and consultants in connection with clinical trials; and • fees paid to contract manufacturers and service providers in connection with the production, testing and packaging of active pharmaceutical ingredients and drug materials for preclinical studies and clinical trials. Payments under some of these agreements depend on factors such as the milestones accomplished, including enrollment of certain numbers of patients, site initiation and the completion of clinical trial milestones. To date, the Company has not experienced any events requiring it to make material adjustments to its accruals for service fees. If the Company does not identify costs that it has begun to incur or if it underestimates or overestimates the level of services performed or the costs of these services, its actual expenses could differ from its estimates which could materially affect its results of operations. Adjustments to the Company’s accruals are recorded as changes in estimates become evident. Furthermore, based on amounts invoiced to the Company by its service providers, the Company may also record payments made to those providers as prepaid expenses that will be recognized as expense in future periods as services are rendered. In May 2014, the Company entered into a master license agreement, pursuant to which it acquired certain rights to a number of research and development programs from Ligand Pharmaceuticals Incorporated (“ Research and Development, |
Patent Costs | Patent Costs Costs related to filing and pursuing patent applications are expensed as incurred to general and administrative expense, as recoverability of such expenditures is uncertain. |
Stock-Based Compensation | Stock-Based Compensation The Company generally uses the straight-line method to allocate compensation cost to reporting periods over each optionee’s requisite service period, which is generally the vesting period, and estimates the fair value of stock-based awards or restricted stock units to employees and directors using the Black-Scholes option-valuation model (the “Black-Scholes model”). The Black-Scholes model requires the input of subjective assumptions, including volatility, the expected term and the fair value of the underlying common stock on the date of grant, among other inputs. For restricted stock and restricted stock unit awards, the Company generally uses the straight-line method to allocate compensation cost to reporting periods over the holder’s requisite service period, which is generally the vesting period, and uses the fair value at grant date to value the awards. For restricted stock that vests upon the satisfaction of certain performance conditions, the Company recognizes stock-based compensation expense when it becomes probable that the performance conditions will be met. At the grant date, the Company determines the grant date fair value, as a publicly traded company, using the intrinsic value, or the closing price of the Company’s common stock on the date of grant. At the point where the criteria are deemed probable of being met, the Company records stock-based compensation with a cumulative catch-up expense in the period first recognized and then on a straight-line basis over the remaining period for which the performance criteria are expected to be completed. For the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”), the Company generally recognizes compensation expense for the fair value of the purchase options, as measured on the grant date, and uses the graded vesting method to allocate this compensation cost to each purchase period within the related two-year offering period. As the ESPP also allows for up to one increase in contributions during each purchase period, as an employee elects to increase his or her contributions, the Company treats this as an accounting modification. The pre- and post-modification values are calculated on the date of the modification, and the incremental expense is then amortized over the remaining purchase periods. |
Income Taxes | Income Taxes The Company accounts for its income taxes using the liability method whereby deferred tax assets and liabilities are determined based on temporary differences between the basis used for financial reporting and income tax reporting purposes. Deferred income taxes are provided based on the enacted tax rates in effect at the time such temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not that the Company will not realize those tax assets through future operations. ASC Topic 740-10, Income Taxes The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, the Company currently does not have any deemed common share equivalents; therefore, its basic and diluted net loss per share calculations are the same. The following table presents the computation of basic and diluted net loss per common share (in thousands, except share and per share data): Year Ended December 31, 2019 2018 Historical net loss per share Numerator Net loss $ (25,779 ) $ (22,063 ) Denominator Weighted-average common shares outstanding 72,142,188 57,784,402 Less: Weighted-average shares subject to repurchase (183,095 ) (204,158 ) Denominator for basic and diluted net loss per share 71,959,093 57,580,244 Basic and diluted net loss per share $ (0.36 ) $ (0.38 ) Potentially dilutive securities that are not included in the calculation of diluted net loss per share because their effect is anti-dilutive are as follows (in common equivalent shares): Year Ended December 31, 2019 2018 Common stock warrants 5,841,301 6,369,996 Restricted stock units 352,726 128,125 Common stock subject to repurchase 183,095 183,095 Common stock options 2,580,476 2,014,047 8,957,598 8,695,263 |
Segments | Segments The Company operates in only one segment. Management uses cash flows as the primary measure to manage its business and does not segment its business for internal reporting or decision making purposes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), which establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for most leases. In July 2018, the FASB issued ASU No. 2018-11 (“ASU 2018-11”), which amends the guidance to add a method of adoption whereby the issuer may elect to recognize a cumulative effect adjustment at the beginning of the period of adoption. ASU 2018-11 does not require comparative period financial information to be adjusted. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. To determine whether a contract conveys the right to control the use of the identified asset for a period of time, the customer has to have both (1) the right to obtain substantially all of the economic benefits from the use of the identified asset and (2) the right to direct the use of the identified asset; a contract does not contain an identified asset if the supplier has a substantive right to substitute such asset (“the leasing criteria”). The Company has determined that its office lease, which has a term in excess of one year, meets the leasing criteria. Therefore, on January 1, 2019, the Company adopted ASU 2016-02, applying the package of practical expedients to leases that commenced before the effective date whereby the Company elected not to reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The Company elected to apply the transition provisions as of January 1, 2019, the date of adoption, and the Company recorded lease ROU assets of $858,000 and related lease liabilities of $882,000 on its balance sheet related to its operating lease. The Company has no financing leases. There were no changes to the Company’s statements of operations or cash flows. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) |
Organization, Liquidity and M_3
Organization, Liquidity and Management's Plan, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss per Common Share | The following table presents the computation of basic and diluted net loss per common share (in thousands, except share and per share data): Year Ended December 31, 2019 2018 Historical net loss per share Numerator Net loss $ (25,779 ) $ (22,063 ) Denominator Weighted-average common shares outstanding 72,142,188 57,784,402 Less: Weighted-average shares subject to repurchase (183,095 ) (204,158 ) Denominator for basic and diluted net loss per share 71,959,093 57,580,244 Basic and diluted net loss per share $ (0.36 ) $ (0.38 ) |
Schedule of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss per Share | Potentially dilutive securities that are not included in the calculation of diluted net loss per share because their effect is anti-dilutive are as follows (in common equivalent shares): Year Ended December 31, 2019 2018 Common stock warrants 5,841,301 6,369,996 Restricted stock units 352,726 128,125 Common stock subject to repurchase 183,095 183,095 Common stock options 2,580,476 2,014,047 8,957,598 8,695,263 |
Investments in Marketable Sec_2
Investments in Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investments Classified As Available-For-Sale Securities | Investments classified as available-for-sale as of December 31, 2019 consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains (1) Gross Unrealized Losses (1) Aggregate Estimated Fair Value Commercial paper (2) $ 1,495 $ — $ — $ 1,495 Corporate debt securities (2) 265,754 190 (178 ) 265,766 $ 267,249 $ 190 $ (178 ) $ 267,261 (1) Unrealized gains and losses on available-for-sale securities are included as a component of comprehensive loss. At December 31, 2019, there were 87 securities in an unrealized gain position and 66 securities in an unrealized loss position. The unrealized gains were less than $22,000 individually and $190,000 in the aggregate. The unrealized losses were less than $32,000 individually and $178,000 in the aggregate. Nine of these securities have been in a continuous unrealized loss or unrealized gain position for more than 12 months. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Company reviews its investments to identify and evaluate investments that have an indication of possible other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. (2) At December 31, 2019, none of these securities were classified as cash and cash equivalents on the Company’s balance sheet and $5.9 million of these securities were scheduled to mature outside of one year at the time of purchase. Investments classified as available-for-sale as of December 31, 2018 consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains (1) Gross Unrealized Losses (1) Aggregate Estimated Fair Value Commercial paper (2) $ 3,479 $ — $ — $ 3,479 Corporate debt securities (2) 273,677 1 (416 ) 273,262 $ 277,156 $ 1 $ (416 ) $ 276,741 (1) Unrealized gains and losses on available-for-sale securities are included as a component of comprehensive loss. At December 31, 2018, there were 181 securities in an unrealized loss position and three securities in an unrealized gain position. These unrealized losses were less than $17,000 individually and $416,000 in the aggregate. The unrealized gains were less than $1,000 individually and $1,000 in the aggregate. These securities have not been in a continuous unrealized loss position for more than 12 months. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Company reviews its investments to identify and evaluate investments that have an indication of possible other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. (2) At December 31, 2018, none of these securities were classified as cash and cash equivalents on the Company’s balance sheet and $10 million of these securities were scheduled to mature outside of one year at the time of purchase. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Values of Financial Instruments | The fair values of the Company’s financial instruments are presented below (in thousands): Fair Value Measurements at December 31, 2019 Total Level 1 Level 2 Level 3 Financial assets carried at fair value: Cash equivalents: Government money market funds $ 3,671 $ 3,671 $ — $ — Corporate debt securities, available-for-sale 3,498 — 3,498 — Short-term investments Commercial paper, available for sale 1,495 — 1,495 — Corporate debt securities, available-for-sale 265,766 — 265,766 — Total financial assets $ 274,430 $ 3,671 $ 270,759 $ — Fair Value Measurements at December 31, 2018 Total Level 1 Level 2 Level 3 Financial assets carried at fair value: Cash equivalents: Government money market funds $ 1,724 $ 1,724 $ — $ — Corporate debt securities, available-for-sale 21,976 — 21,976 — Short-term investments Commercial paper, available for sale 3,479 — 3,479 — Corporate debt securities, available-for-sale 273,262 — 273,262 — Total financial assets $ 300,441 $ 1,724 $ 298,717 $ — |
Operating Leases - Right-of-U_2
Operating Leases - Right-of-Use Assets and Lease Liability Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Right-of-use Assets and Lease Liabilities | The Company has only one operating lease which is for office space that expires in January 2022. Below is a summary of the Company’s right-of-use assets and lease liabilities as of December 31, 2019 (in thousands, except for years and %): Right of use assets $ 598 Lease liability obligations, current $ 302 Lease liability obligations, less current portion 360 Total lease liability obligations $ 662 Weighted-average remaining lease term 2.08 years Weighted-average discount rate 6.00 % |
Schedule of Future Minimum Lease Payments | Approximate future minimum lease payments for the Company’s right-of-use assets over the remaining lease period as of December 31, 2019 are as follows (in thousands): 2020 $ 333 2021 343 2022 29 Total minimum lease payments $ 705 Less: amount representing interest $ (43 ) Total lease liability obligations $ 662 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Stock-based Compensation Expense Recognized | During the years ended December 31, 2019 and 2018, the Company recognized the following stock-based compensation expense (in thousands): Year Ended December 31, 2019 2018 Stock-based compensation expense by type of award: Stock options $ 2,401 $ 1,320 Restricted stock and restricted stock units 1,126 482 Employee stock purchase plan 216 806 Total stock-based compensation expense included in expenses $ 3,743 $ 2,608 Stock-based compensation expense by line item: Research and development expenses $ 953 $ 956 General and administrative expenses 2,790 1,652 Total stock-based compensation expense included in expenses $ 3,743 $ 2,608 |
Schedule of Unrecognized Stock-based Compensation Expense, Net of Estimated Forfeitures, by Type of Award and Weighted-average Recognition Period | The following table sets forth the Company’s unrecognized stock-based compensation expense, net of estimated forfeitures, by type of award and the weighted-average period over which that expense is expected to be recognized (in thousands, except for years): As of December 31, 2019 Unrecognized Expense Weighted- average Recognition Period (in years) Type of award: Stock options $ 3,525 2.43 Restricted stock and restricted stock units $ 1,553 1.85 |
Summary of Stock Option Activity | The following table summarizes stock option activity during the years ended December 31, 2019 and 2018: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at December 31, 2017 1,575,864 $ 2.68 Granted 628,500 $ 5.89 Exercised (171,567 ) $ 2.31 $ 1,336,000 Cancelled (18,750 ) $ 1.91 Options outstanding at December 31, 2018 2,014,047 $ 3.72 8.04 $ 8,599,000 Granted 855,787 $ 7.82 Exercised (82,337 ) $ 2.40 $ 423,000 Cancelled (207,021 ) $ 6.51 Options outstanding at December 31, 2019 2,580,476 $ 4.90 7.66 $ 8,643,000 Options exercisable at December 31, 2019 1,218,098 $ 3.83 6.78 $ 5,459,000 |
Schedule of Weighted Average Assumptions using Black-Scholes Option Pricing Model | the fair value of each employee option grant during the years ended December 31, 2019 and 2018 was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Year ended December 31, 2019 2018 Expected volatility 77.9 % 80.9 % Expected term (in years) 6.01 6.00 Risk-free interest rate 2.26 % 2.55 % Expected dividend yield 0 % 0 % |
Common Stock Reserved For Future Issuance | Common stock reserved for future issuance as of December 31, 2019 is as follows: Common stock warrants 5,841,301 Restricted stock units 352,726 Common stock options 2,580,476 Available for grant under the 2014 Plan 2,835,203 Available for issuance under Employee Stock Purchase Plan 1,600,020 13,209,726 |
Restricted stock [Member] | |
Summary of Shares Granted and Stock Activity | The following table is a summary of restricted shares granted during the years ended December 31, 2019 and 2018: Shares Weighted- Average Grant Date Fair Value Unvested at December 31, 2017 245,096 $ 2.53 Granted — $ — Vested (62,001 ) $ 9.49 Forfeited — $ — Repurchased — $ — Unvested at December 31, 2018 183,095 $ 0.17 Granted — $ — Vested — $ — Forfeited — $ — Repurchased — $ — Unvested at December 31, 2019 183,095 $ 0.17 |
Restricted stock units [Member] | |
Summary of Shares Granted and Stock Activity | The following table summarizes restricted stock units activity during the years ended December 31, 2019 and 2018: Shares Weighted- Average Grant Date Value Unvested at December 31, 2017 46,250 $ 5.50 Granted 105,000 $ 5.34 Vested (23,125 ) $ 5.50 Forfeited — $ — Unvested at December 31, 2018 128,125 $ 5.37 Granted 343,524 $ 7.80 Vested (58,122 ) $ 5.40 Forfeited (60,801 ) $ 7.57 Unvested December 31, 2019 352,726 $ 7.35 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) from Continuing Operations | Income tax expense (benefit) from continuing operations consists of the following for the years ended December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Current: Federal $ — $ — State — — $ — $ — Deferred: Federal $ (5,976 ) $ (6,283 ) State (1,857 ) (2,701 ) $ (7,833 ) $ (8,984 ) Change in federal tax rate — — Change in valuation allowance 7,833 8,984 Total income tax expense (benefit) $ — $ — |
Schedule of Reconciliations of the U.S. Federal Statutory Tax Rate to the Effective Income Tax Rate | The reconciliations of the U.S. federal statutory tax rate to the effective income tax rate for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 2018 Tax provision at U.S. Federal statutory rates 21 % 21 % State income taxes net of federal benefit 6 % 8 % Non-deductible permanent items (1 )% (1 )% Stock options (1 )% 1 % Enactment of the Tax Cuts and Jobs Act — — Research and development credits 5 % 10 % Other — 2 % Change in valuation allowance (30 )% (41 )% Effective income tax rate — — |
Schedule of Significant Components of Company's Deferred Taxes | Significant components of the Company’s deferred taxes as of December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Accrued liabilities $ 248 $ 66 Intangible assets 24,463 18,991 Net operating loss carryforwards 7,017 6,479 Share-based compensation 1,632 1,415 Credits 4,398 2,687 Other 5 121 Total deferred tax assets 37,763 29,759 Valuation Allowance (37,592 ) (29,759 ) Total deferred tax assets, net of allowance $ 171 $ — Deferred tax liabilities: Right of use assets $ (167 ) $ — Other (4 ) — Total deferred tax liabilities: $ (171 ) $ — Net deferred tax assets (liabilities): $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Payments for Lease | Future minimum payments pursuant to the Lease are as follows (in thousands): Year Ending December 31: 2020 $ 333 2021 343 2022 29 Total minimum lease payments $ 705 |
Organization, Liquidity and M_4
Organization, Liquidity and Management's Plan, and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019USD ($)Segment | Jan. 01, 2019USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Date of incorporation | Sep. 24, 2012 | |
Entity Incorporation, State or Country Code | DE | |
Highly liquid investments maturities | Three months or less | |
Number of operating segment | Segment | 1 | |
Right-of-use assets | $ 598,000 | |
Related lease liabilities | $ 662,000 | |
Financing leases | $ 0 | |
ASU 2016-02 [Member] | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Right-of-use assets | 858,000 | |
Related lease liabilities | $ 882,000 |
Organization, Liquidity and M_5
Organization, Liquidity and Management's Plan, and Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Net Loss per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator | ||
Net loss | $ (25,779) | $ (22,063) |
Denominator | ||
Weighted-average common shares outstanding | 72,142,188 | 57,784,402 |
Less: Weighted-average shares subject to repurchase | (183,095) | (204,158) |
Denominator for basic and diluted net loss per share | 71,959,093 | 57,580,244 |
Basic and diluted net loss per share | $ (0.36) | $ (0.38) |
Organization, Liquidity and M_6
Organization, Liquidity and Management's Plan, and Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss per Share (Detail) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded in calculation of diluted net loss per share | 8,957,598 | 8,695,263 |
Common stock warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded in calculation of diluted net loss per share | 5,841,301 | 6,369,996 |
Restricted stock units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded in calculation of diluted net loss per share | 352,726 | 128,125 |
Common stock subject to repurchase [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded in calculation of diluted net loss per share | 183,095 | 183,095 |
Common stock options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded in calculation of diluted net loss per share | 2,580,476 | 2,014,047 |
Investments in Marketable Sec_3
Investments in Marketable Securities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Available For Sale Securities [Abstract] | ||
Proceeds from sales of available-for-sale securities | $ 0 | $ 0 |
Investments in Marketable Sec_4
Investments in Marketable Securities - Summary of Investments Classified As Available-For-Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 267,249 | $ 277,156 |
Gross Unrealized Gains | 190 | 1 |
Gross Unrealized Losses | (178) | (416) |
Aggregate Estimated Fair Value | 267,261 | 276,741 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,495 | 3,479 |
Aggregate Estimated Fair Value | 1,495 | 3,479 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 265,754 | 273,677 |
Gross Unrealized Gains | 190 | 1 |
Gross Unrealized Losses | (178) | (416) |
Aggregate Estimated Fair Value | $ 265,766 | $ 273,262 |
Investments in Marketable Sec_5
Investments in Marketable Securities - Summary of Investments Classified As Available-For-Sale Securities (Parenthetical) (Detail) | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | Security | 66 | 181 |
Unrealized losses, aggregate | $ 178,000 | $ 416,000 |
Number of securities in unrealized gain position | Security | 87 | 3 |
Unrealized gains, aggregate | $ 190,000 | $ 1,000 |
Short-term investments - available for sale | 267,261,000 | 276,741,000 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term investments - available for sale | 1,495,000 | 3,479,000 |
Short-term investments classified as available-for-sale, noncurrent | 5,900,000 | 10,000,000 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses, aggregate | 178,000 | 416,000 |
Unrealized gains, aggregate | 190,000 | 1,000 |
Short-term investments - available for sale | 265,766,000 | 273,262,000 |
Short-term investments classified as available-for-sale, noncurrent | 5,900,000 | 10,000,000 |
Cash equivalents [Member] | Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term investments - available for sale | 0 | 0 |
Cash equivalents [Member] | Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term investments - available for sale | 0 | 0 |
Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses, individually | 32,000 | 17,000 |
Unrealized losses, aggregate | 178,000 | 416,000 |
Unrealized gains, individually | 22,000 | 1,000 |
Unrealized gains, aggregate | $ 190,000 | $ 1,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets carried at fair value: | ||
Total financial assets | $ 274,430 | $ 300,441 |
Government money market funds [Member] | ||
Financial assets carried at fair value: | ||
Cash equivalents, fair value disclosure | 3,671 | 1,724 |
Corporate debt securities, available-for-sale [Member] | ||
Financial assets carried at fair value: | ||
Cash equivalents, fair value disclosure | 3,498 | 21,976 |
Short-term investments, available for sale | 265,766 | 273,262 |
Commercial paper, available-for-sale [Member] | ||
Financial assets carried at fair value: | ||
Short-term investments, available for sale | 1,495 | 3,479 |
Level 1 [Member] | ||
Financial assets carried at fair value: | ||
Total financial assets | 3,671 | 1,724 |
Level 1 [Member] | Government money market funds [Member] | ||
Financial assets carried at fair value: | ||
Cash equivalents, fair value disclosure | 3,671 | 1,724 |
Level 2 [Member] | ||
Financial assets carried at fair value: | ||
Total financial assets | 270,759 | 298,717 |
Level 2 [Member] | Corporate debt securities, available-for-sale [Member] | ||
Financial assets carried at fair value: | ||
Cash equivalents, fair value disclosure | 3,498 | 21,976 |
Short-term investments, available for sale | 265,766 | 273,262 |
Level 2 [Member] | Commercial paper, available-for-sale [Member] | ||
Financial assets carried at fair value: | ||
Short-term investments, available for sale | $ 1,495 | $ 3,479 |
Agreements with Ligand Pharma_2
Agreements with Ligand Pharmaceuticals Incorporated - Additional Information (Detail) - USD ($) | May 21, 2018 | Apr. 13, 2016 | Sep. 06, 2014 | May 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
License agreement entered date | 2014-05 | |||||
Common stock issued as part of partial consideration of agreement | 7,500,000 | 0 | 0 | |||
Amortization of debt discount | $ 0 | $ 404,000 | ||||
Change in fair value of debt conversion feature liability | 0 | 1,398,000 | ||||
Ligand Note [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Required payment in cash for note obligation | $ 3,900,000 | |||||
Interest Expense | 38,000 | |||||
Amortization of debt discount | 404,000 | |||||
Change in fair value of debt conversion feature liability | 1,400,000 | |||||
Ligand [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
One time nonrefundable mile stone payments maximum payable amount | $ 1,540,000,000 | |||||
Legal costs | $ 0 | |||||
Sale and transfer of price equals to percentage of cost of goods | 125.00% | |||||
Ligand [Member] | Research and development expenses [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Incremental charges incurred | $ 518,000 | |||||
Ligand [Member] | Loan and Security Agreement [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Maximum aggregate loan amount | $ 2,500,000 | |||||
Ligand [Member] | Management Rights Letter [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Date agreement might terminate | May 21, 2024 | |||||
Ligand [Member] | Management Rights Letter [Member] | Maximum [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Voting power of the surviving or acquiring entity | 50.00% | |||||
Ligand [Member] | Management Rights Letter [Member] | Minimum [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Percentage of voting interest beneficiary owned | 7.50% | |||||
IPO [Member] | Ligand [Member] | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Common stock issued as part of partial consideration of agreement | 3,655,964 | |||||
Common stock issued value as part of partial consideration of agreement | $ 29,200,000 |
Operating Leases - Right-of-U_3
Operating Leases - Right-of-Use Assets and Lease Liability Obligations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($)Lease | |
Leases [Abstract] | |
Operating lease number of leases | Lease | 1 |
Lease expiration date | 2022-01 |
Operating lease expense | $ | $ 308,000 |
Operating lease, option to extend | true |
Operating lease option to extend term | 3 years |
operating lease, option to extend, description | The operating lease provides the Company with an option to extend the term of the lease for a period of three years beyond the expiration date of January 2022. |
Operating Leases - Right-of-U_4
Operating Leases - Right-of-Use Assets and Lease Liability Obligations - Schedule of Right-of-use Assets and Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee Disclosure [Abstract] | |
Right-of-use assets | $ 598 |
Lease liability, current | 302 |
Lease liability, net of current portion | 360 |
Total lease liability obligations | $ 662 |
Weighted-average remaining lease term | 2 years 29 days |
Weighted-average discount rate | 6.00% |
Operating Leases - Right-of-U_5
Operating Leases - Right-of-Use Assets and Lease Liability Obligations - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 333 |
2021 | 343 |
2022 | 29 |
Total minimum lease payments | 705 |
Less: amount representing interest | (43) |
Related lease liabilities | $ 662 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Aug. 01, 2019USD ($)shares | Sep. 25, 2018USD ($)$ / sharesshares | Jun. 11, 2018USD ($)$ / sharesshares | Feb. 06, 2018USD ($)$ / sharesshares | Sep. 29, 2017USD ($)$ / sharesshares | Sep. 28, 2017USD ($)shares | Feb. 08, 2017USD ($)shares | Apr. 13, 2016$ / sharesshares | May 31, 2015USD ($)$ / sharesshares | Feb. 28, 2014Tranche$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Feb. 20, 2014USD ($) |
Equity [Line Items] | ||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||||||||||||
Preferred stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||||||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | ||||||||||||
Common stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Number of common stock for issuance in exchange for future services from founders | 1,000,000 | |||||||||||||
Common stock price per share | $ / shares | $ 0.01 | |||||||||||||
Number of tranches | Tranche | 2 | |||||||||||||
Unrecognized compensation expense | $ | $ 62,000 | $ 168,000 | ||||||||||||
Common stock shares repurchased | 633,810 | |||||||||||||
Repurchase of common stock from stockholders, per share | $ / shares | $ 0.00001 | |||||||||||||
Remaining number of repurchased shares | 366,190 | |||||||||||||
Common stock sold | 7,500,000 | 0 | 0 | |||||||||||
Common stock, price per share | $ / shares | $ 1.25 | |||||||||||||
Cash proceeds from common stock issuance | $ | $ 296,607,000 | |||||||||||||
Shares issued under ESPP | 20,114 | 148,713 | ||||||||||||
Common stock [Member] | February 2018 Offering [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Common stock sold | 12,650,000 | |||||||||||||
Common stock, price per share | $ / shares | $ 5 | |||||||||||||
Cash proceeds from common stock issuance | $ | $ 58,700,000 | |||||||||||||
Common stock [Member] | June 2018 Offering [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Common stock sold | 8,625,000 | |||||||||||||
Common stock, price per share | $ / shares | $ 9 | |||||||||||||
Cash proceeds from common stock issuance | $ | $ 72,300,000 | |||||||||||||
Common stock [Member] | September 2018 Offering [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Common stock sold | 9,500,000 | |||||||||||||
Common stock, price per share | $ / shares | $ 18.50 | |||||||||||||
Cash proceeds from common stock issuance | $ | $ 165,000,000 | |||||||||||||
Common stock [Member] | ATM Agreement [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Common stock sold | 0 | |||||||||||||
Common stock [Member] | Maximum [Member] | ATM Agreement [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Aggregate offering price, common stock | $ | $ 75,000,000 | |||||||||||||
PoC Capital, LLC [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Prepaid clinical study costs | $ | $ 1,800,000 | |||||||||||||
Amortization expense | $ | $ 140,000 | $ 666,000 | ||||||||||||
PoC Capital, LLC [Member] | Stock Purchase Agreement [Member] | Common stock [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Common stock sold | 1,286,173 | |||||||||||||
PoC Capital, LLC [Member] | Stock Purchase Agreement [Member] | Common stock [Member] | Clinical Studies [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Common stock sold aggregate purchase price | $ | 1,800,000 | |||||||||||||
LPC [Member] | Registered Offering Purchase Agreement [Member] | Common stock [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Common stock sold | 701,282 | |||||||||||||
Common stock sold aggregate purchase price | $ | $ 1,300,000 | |||||||||||||
Common stock, price per share | $ / shares | $ 1.78 | |||||||||||||
Registration statement commencement date | Jun. 20, 2016 | |||||||||||||
LPC [Member] | Commitment Purchase Agreement [Member] | Common stock [Member] | Registration Rights Agreement [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Common stock sold | 343,051 | |||||||||||||
Common stock purchase agreement term | 30 months | |||||||||||||
Common stock issued as consideration for commitment | 100,000 | |||||||||||||
Gross proceeds from common stock issuance | $ | $ 802,000 | |||||||||||||
LPC [Member] | Commitment Purchase Agreement [Member] | Common stock [Member] | Registration Rights Agreement [Member] | Maximum [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Total of purchase agreement and potential aggregate future purchases | $ | $ 15,000,000 | |||||||||||||
Common stock to be sold, subject to certain limitations | 75,000 | |||||||||||||
Total purchase proceeds per purchase date, subject to certain limitations | $ | $ 1,000,000 | |||||||||||||
LPC [Member] | Commitment Purchase Agreement [Member] | Common stock [Member] | Registration Rights Agreement [Member] | Minimum [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Percentage of shares may not sell if it is beneficial owning | 4.99% | |||||||||||||
Tranche One [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Number of common stock for issuance in exchange for future services from founders | 500,000 | |||||||||||||
Remaining number of repurchased shares | 183,095 | |||||||||||||
Stock compensation expense | $ | $ 0 | $ 0 | $ 31,000 | |||||||||||
Tranche Two [Member] | ||||||||||||||
Equity [Line Items] | ||||||||||||||
Number of common stock for issuance in exchange for future services from founders | 500,000 | |||||||||||||
Remaining number of repurchased shares | 183,095 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2019Milestoneshares | Dec. 31, 2019USD ($)PeriodMilestone$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Apr. 28, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock reserved for issuance | 13,209,726 | |||
Forfeited awards | 207,021 | 18,750 | ||
Stock-based compensation | $ | $ 3,743,000 | $ 2,608,000 | ||
Cash proceeds from exercises of stock options | $ | 197,000 | 396,000 | ||
Total fair value of stock options, vested | $ | $ 1,343,000 | $ 852,000 | ||
Weighted average fair value of stock options granted to employees | $ / shares | $ 5.34 | $ 4.11 | ||
Excess tax benefit from stock-based awards | $ | $ 0 | |||
Performance Based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of performance based award | 221,600 | |||
Percentage of shares vested upon achievement of certain milestone | 100.00% | |||
Number of milestones to be achieve | Milestone | 3 | |||
Number of milestones deemed as achievable | Milestone | 3 | |||
Milestone achievement period | 4 years | |||
Forfeited awards | 20,000 | |||
Stock-based compensation | $ | $ 734,000 | |||
2014 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock reserved for issuance | 1,527,770 | |||
Additional number of shares of common stock reserved for issuance | 4,832,334 | |||
Common stock reserved for issuance, description | Initially, a total of 1,527,770 shares of the Company’s common stock were reserved for issuance pursuant to the 2014 Plan, which number is also the limit on shares of common stock available for awards of incentive stock options. The number of shares available for issuance under the 2014 Plan will, unless otherwise determined by the Company’s Board of Directors or the Compensation Committee, be automatically increased on January 1st of each year commencing on January 1, 2016 and ending on (and including) January 1, 2024, in an amount equal to 3.5% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year. | |||
Percentage of common stock outstanding to increase shares reserved for issuance | 3.50% | |||
2014 ESPP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock reserved for issuance | 458,331 | |||
Additional number of shares of common stock reserved for issuance | 1,380,666 | |||
Common stock reserved for issuance, description | The number of shares available for issuance under the ESPP will, unless otherwise determined by the Company’s Board of Directors or the Compensation Committee, be automatically increased on January 1st of each year commencing on January 1, 2016 and ending on (and including) January 1, 2024, in an amount equal to 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year. | |||
Percentage of common stock outstanding to increase shares reserved for issuance | 1.00% | |||
Duration of employee stock purchase plan as determined by the compensation committee | 24 months | |||
Duration for offering period, employee stock purchase plan | 6 months | |||
Employee stock purchase plan, number of purchase periods | Period | 4 | |||
Maximum duration for purchase under employee stock purchase plan | 1 year | |||
Maximum duration of employee stock purchase plan | 27 months | |||
Percentage of purchase of common stock | 85.00% | |||
Percentage of common stock on the date of purchase | 85.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense included in expenses | $ 3,743 | $ 2,608 |
Research and development expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense included in expenses | 953 | 956 |
General and administrative expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense included in expenses | 2,790 | 1,652 |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense included in expenses | 2,401 | 1,320 |
Restricted stock and restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense included in expenses | 1,126 | 482 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense included in expenses | $ 216 | $ 806 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Unrecognized Stock-based Compensation Expense, Net of Estimated Forfeitures, by Type of Award and Weighted-average Recognition Period (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | May 31, 2015 | Feb. 20, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Expense, Net of Estimated Forfeitures | $ 62,000 | $ 168,000 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Expense, Net of Estimated Forfeitures | $ 3,525,000 | ||
Weighted-average Recognition Period | 2 years 5 months 4 days | ||
Restricted stock and restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Expense, Net of Estimated Forfeitures | $ 1,553,000 | ||
Weighted-average Recognition Period | 1 year 10 months 6 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Unvested, Beginning balance | 183,095 | 245,096 |
Shares, Vested | (62,001) | |
Shares, Unvested, Ending balance | 183,095 | 183,095 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning balance | $ 0.17 | $ 2.53 |
Weighted-Average Grant Date Fair Value, Vested | 9.49 | |
Weighted-Average Grant Date Fair Value, Unvested, Ending balance | $ 0.17 | $ 0.17 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Detail) - Restricted stock units [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Unvested, Beginning balance | 128,125 | 46,250 |
Shares, Granted | 343,524 | 105,000 |
Shares, Vested | (58,122) | (23,125) |
Shares, Forfeited | (60,801) | |
Shares, Unvested, Ending balance | 352,726 | 128,125 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning balance | $ 5.37 | $ 5.50 |
Weighted-Average Grant Date Fair Value, Granted | 7.80 | 5.34 |
Weighted-Average Grant Date Fair Value, Vested | 5.40 | 5.50 |
Weighted-Average Grant Date Fair Value, Forfeited | 7.57 | |
Weighted-Average Grant Date Fair Value, Unvested, Ending balance | $ 7.35 | $ 5.37 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options outstanding beginning balance, Shares Subject to Stock Options | 2,014,047 | 1,575,864 |
Granted, Shares Subject to Stock Options | 855,787 | 628,500 |
Exercised, Shares Subject to Stock Options | (82,337) | (171,567) |
Cancelled, Shares Subject to Stock Options | (207,021) | (18,750) |
Options outstanding ending balance, Shares Subject to Stock Options | 2,580,476 | 2,014,047 |
Options exercisable, Shares Subject to Stock Options | 1,218,098 | |
Options outstanding beginning balance, Weighted-Average Exercise Price | $ 3.72 | $ 2.68 |
Granted, Weighted-Average Exercise Price | 7.82 | 5.89 |
Exercised, Weighted-Average Exercise Price | 2.40 | 2.31 |
Cancelled, Weighted-Average Exercise Price | 6.51 | 1.91 |
Options outstanding ending balance, Weighted-Average Exercise Price | 4.90 | $ 3.72 |
Options exercisable, Weighted-Average Exercise Price | $ 3.83 | |
Options outstanding, Weighted-Average Remaining Contractual Term | 7 years 7 months 28 days | 8 years 14 days |
Options exercisable, Weighted-Average Remaining Contractual Term | 6 years 9 months 10 days | |
Options outstanding, Aggregate Intrinsic Value | $ 8,599,000 | |
Exercised, Aggregate Intrinsic Value | 423,000 | $ 1,336,000 |
Options outstanding, Aggregate Intrinsic Value | 8,643,000 | $ 8,599,000 |
Options exercisable, Aggregate Intrinsic Value | $ 5,459,000 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Weighted Average Assumptions using Black-Scholes Option Pricing Model (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Expected volatility | 77.90% | 80.90% |
Expected term (in years) | 6 years 3 days | 6 years |
Risk-free interest rate | 2.26% | 2.55% |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation - Comm
Stock-Based Compensation - Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 13,209,726 |
Common stock warrants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 5,841,301 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 352,726 |
Common stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 2,580,476 |
Available for grant under the 2014 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 2,835,203 |
Available for issuance under Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 1,600,020 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - USD ($) | Jun. 14, 2017 | Apr. 13, 2016 | May 04, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 16, 2018 |
Class of Warrant or Right [Line Items] | ||||||
Issuance of shares of common stock | 7,500,000 | 0 | 0 | |||
Exercise price of warrant | $ 1.50 | $ 10 | ||||
Warrant description | The warrant was exercisable for cash or on a cashless basis at a per share exercise price equal to $10.00 commencing on April 28, 2016, one year following the date of the prospectus filed with the SEC relating to the IPO. | |||||
Warrants exercised | 528,695 | 3,648,098 | ||||
Warrants sold | 7,500,000 | 885,395 | ||||
Common stock, price per share | $ 1.25 | |||||
Warrants expiry date | Apr. 13, 2021 | |||||
Public offering price per warrant | $ 0.01 | |||||
Warrants outstanding | 3,995,906 | |||||
Securities Purchase Agreement [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants exercised | 0 | 1,101,942 | ||||
Public offering price per share and per warrant | $ 1.15 | |||||
Unexercised warrants | 1,987,337 | |||||
Loan and Security Agreement [Member] | Minimum [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Beneficial ownership of company's common stock | 49.90% | |||||
Ligand [Member] | Loan and Security Agreement [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise price of warrant | $ 1.50 | |||||
Warrants sold | 960,000 | |||||
Warrants expiry date | Apr. 13, 2021 | |||||
Repayments of notes payable in stock | $ 1,200,000 | |||||
Over-Allotment Option [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants sold | 1,125,000 | |||||
Private Placement and Registered Direct Offering [Member] | Securities Purchase Agreement [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise price of warrant | $ 1.30 | |||||
Warrants expiry date | Dec. 19, 2022 | Dec. 19, 2022 | ||||
Number of warrants issued for common stock | 0.75 | |||||
Warrants exercisable date | Dec. 19, 2017 | Dec. 19, 2017 | ||||
Percentage of warrant exercise beneficial ownership limitation of common stock outstanding minimum | 4.99% | |||||
Prior notice period of increase beneficial ownership limitation | 61 days | |||||
Percentage of minimum beneficial ownership limitation | 9.99% | |||||
Description of beneficial ownership limitation | Each holder of a Warrant does not have the right to exercise any portion of its Warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of common stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that upon 61 days’ prior notice to the Company, the holder may increase the Beneficial Ownership Limitation; however, in no event shall the Beneficial Ownership Limitation exceed 9.99%. | |||||
Common stock warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Issuance of shares of common stock | 82,500 | |||||
Warrants exercised | 82,500 | |||||
Common stock [Member] | Private Placement and Registered Direct Offering [Member] | Securities Purchase Agreement [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Issuance of shares of common stock | 3,749,783 | |||||
Common stock [Member] | Private Placement and Registered Direct Offering [Member] | Maximum [Member] | Securities Purchase Agreement [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants sold | 2,812,337 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Total current | 0 | 0 |
Deferred: | ||
Federal | (5,976) | (6,283) |
State | (1,857) | (2,701) |
Total deferred | (7,833) | (8,984) |
Change in federal tax rate | 0 | 0 |
Change in valuation allowance | 7,833 | 8,984 |
Total income tax expense (benefit) | $ 0 | $ 0 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliations of the U.S. Federal Statutory Tax Rate to the Effective Income Tax Rate (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Tax provision at U.S. Federal statutory rates | 21.00% | 21.00% |
State income taxes net of federal benefit | 6.00% | 8.00% |
Non-deductible permanent items | (1.00%) | (1.00%) |
Stock options | (1.00%) | 1.00% |
Enactment of the Tax Cuts and Jobs Act | 0.00% | 0.00% |
Research and development credits | 5.00% | 10.00% |
Other | 0.00% | 2.00% |
Change in valuation allowance | (30.00%) | (41.00%) |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Company's Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accrued liabilities | $ 248 | $ 66 |
Intangible assets | 24,463 | 18,991 |
Net operating loss carryforwards | 7,017 | 6,479 |
Share-based compensation | 1,632 | 1,415 |
Credits | 4,398 | 2,687 |
Other | 5 | 121 |
Total deferred tax assets | 37,763 | 29,759 |
Valuation Allowance | (37,592) | (29,759) |
Total deferred tax assets, net of allowance | 171 | 0 |
Deferred tax liabilities: | ||
Right of use assets | (167) | |
Other | (4) | |
Total deferred tax liabilities: | (171) | 0 |
Net deferred tax assets (liabilities): | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax [Line Items] | ||
Valuation Allowance | $ 37,592,000 | $ 29,759,000 |
Federal net operating loss carryforwards | 25,200,000 | |
Federal net operating loss carryforwards subject to expire | $ 17,800,000 | |
Federal net operating loss carryforwards subject to expiration year | 2032 | |
Remaining federal net operating loss carryforwards | $ 7,400,000 | |
State net operating loss carryforwards | $ 24,800,000 | |
State net operating loss carryforwards, begin to expiration year. | 2034 | |
Description of the limitations on the use of all operating loss carryforwards | Specifically, this limitation may arise in the event of an “ownership change,” which is defined by Section 382 of the Code as a cumulative change in ownership of the Company of more than 50% within a three-year period. If the Company undergoes one or more ownership changes in connection with any future transactions in its stock, the Company’s ability to utilize net operating loss carryforwards to offset federal taxable income, if any, could potentially result in increased future tax liability to the Company. An ownership change under Section 382 of the Code occurred during the year ended December 31, 2018. | |
Percentage of cumulative change in stock ownership. | 50.00% | |
Federal net operating loss carryforwards limited based on ownership change | $ 18,300,000 | |
State net operating loss carryforwards limited based on ownership change | 17,900,000 | |
Annual limitation | 5,700,000 | |
Tax benefit not recognized | 0 | 0 |
Deferred tax assets, research and development tax credit carry-forwards | 4,398,000 | 2,687,000 |
Liability for uncertain tax positions | 0 | $ 0 |
Federal [Member] | ||
Income Tax [Line Items] | ||
Deferred tax assets, research and development tax credit carry-forwards | $ 2,900,000 | |
Tax credit carry-forwards begin to expiration year | 2036 | |
State [Member] | ||
Income Tax [Line Items] | ||
Deferred tax assets, research and development tax credit carry-forwards | $ 1,500,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Dec. 31, 2019 |
Ligand [Member] | |
Related Party Transaction [Line Items] | |
Equity method investment, beneficially ownership percentage | 10.20% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | May 25, 2018USD ($)ft² | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2018USD ($) | Sep. 30, 2018 | Jul. 07, 2015ft² |
Commitments And Contingencies [Line Items] | ||||||
Minimum payments pursuant to sublease | $ 705,000 | |||||
Operating lease option to extend term | 3 years | |||||
Rent expense | $ 308,000 | $ 197,000 | ||||
Sublease [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Lease renewal term | 1 month | |||||
Minimum payments pursuant to sublease | $ 22,000 | |||||
California [Member] | Sublease [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Area of lease premises | ft² | 7,049 | |||||
California [Member] | Office Lease [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Area of lease premises | ft² | 7,149 | |||||
Lease commencement date | Nov. 1, 2018 | |||||
Lease expiration date | Jan. 31, 2022 | |||||
Monthly base rent payments | $ 27,000 | |||||
Percentage of rent increase under lease | 3.00% |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Payments for Lease (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2020 | $ 333 |
2021 | 343 |
2022 | 29 |
Total minimum lease payments | $ 705 |