Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | Zynerba Pharmaceuticals, Inc. | |
Entity Central Index Key | 1,621,443 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,623,873 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 43,115,051 | $ 62,510,277 |
Incentive and tax receivables | 3,961,748 | 3,983,604 |
Prepaid expenses and other current assets | 1,962,291 | 1,733,701 |
Total current assets | 49,039,090 | 68,227,582 |
Property and equipment, net | 273,784 | 164,527 |
Incentive and tax receivables | 2,056,498 | |
Other assets | 834,174 | 662,200 |
Total assets | 52,203,546 | 69,054,309 |
Current liabilities: | ||
Accounts payable | 6,379,750 | 3,355,255 |
Accrued expenses | 4,910,918 | 3,915,491 |
Deferred grant revenue | 171,975 | |
Total current liabilities | 11,290,668 | 7,442,721 |
Deferred grant revenue, long-term | 833,974 | 662,000 |
Total liabilities | 12,124,642 | 8,104,721 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.001 par value; 200,000,000 shares authorized; 13,561,373 shares issued and outstanding at June 30, 2018 and 13,553,873 shares issued and outstanding at December 31, 2017 | 13,561 | 13,554 |
Additional paid-in capital | 142,359,776 | 138,916,900 |
Accumulated deficit | (102,294,433) | (77,980,866) |
Total stockholders' equity | 40,078,904 | 60,949,588 |
Total liabilities and stockholders' equity | $ 52,203,546 | $ 69,054,309 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 13,561,373 | 13,553,873 |
Common stock, shares outstanding | 13,561,373 | 13,553,873 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating expenses: | ||||
Research and development | $ 8,533,466 | $ 5,732,797 | $ 17,508,979 | $ 11,224,252 |
General and administrative | 3,436,340 | 2,632,857 | 6,856,963 | 4,844,650 |
Total operating expenses | 11,969,806 | 8,365,654 | 24,365,942 | 16,068,902 |
Loss from operations | (11,969,806) | (8,365,654) | (24,365,942) | (16,068,902) |
Other income (expense): | ||||
Interest income | 186,304 | 124,535 | 361,488 | 201,420 |
Foreign exchange (loss) gain | (223,731) | (82,360) | (309,113) | 284,982 |
Total other income (expense) | (37,427) | 42,175 | 52,375 | 486,402 |
Net loss | $ (12,007,233) | $ (8,323,479) | $ (24,313,567) | $ (15,582,500) |
Net loss per share basic and diluted | $ (0.89) | $ (0.64) | $ (1.80) | $ (1.24) |
Basic and diluted weighted average shares outstanding | 13,504,485 | 13,052,294 | 13,486,191 | 12,562,594 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY (DEFICIT) - 6 months ended Jun. 30, 2018 - USD ($) | Common stock | Additional paid-capital | Accumulated deficit | Total |
Balance at Dec. 31, 2017 | $ 13,554 | $ 138,916,900 | $ (77,980,866) | $ 60,949,588 |
Balance (in shares) at Dec. 31, 2017 | 13,553,873 | |||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||
Issuance of restricted stock | $ 7 | (7) | ||
Issuance of restricted stock (in shares) | 7,500 | |||
Stock-based compensation expense | 3,442,883 | 3,442,883 | ||
Net loss | (24,313,567) | (24,313,567) | ||
Balance at Jun. 30, 2018 | $ 13,561 | $ 142,359,776 | $ (102,294,433) | $ 40,078,904 |
Balance (in shares) at Jun. 30, 2018 | 13,561,373 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (24,313,567) | $ (15,582,500) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 48,152 | 43,595 |
Stock-based compensation | 3,442,883 | 2,544,073 |
Changes in operating assets and liabilities: | ||
Incentive and tax receivables | (2,034,642) | (2,814,171) |
Prepaid expenses and other assets | (337,277) | (249,995) |
Accounts payable | 2,921,369 | 122,445 |
Accrued expenses | 995,427 | 615,123 |
Net cash used in operating activities | (19,277,655) | (15,321,430) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (117,571) | (78,207) |
Net cash used in investing activities | (117,571) | (78,207) |
Cash flows from financing activities: | ||
Proceeds from the issuance of common stock, net of offering costs | 54,245,579 | |
Payment of financing costs | (67,225) | |
Proceeds from the exercise of stock options | 434,691 | |
Net cash provided by financing activities | 54,613,045 | |
Net (decrease) increase in cash and cash equivalents | (19,395,226) | 39,213,408 |
Cash and cash equivalents at beginning of period | 62,510,277 | 30,965,791 |
Cash and cash equivalents at end of period | 43,115,051 | 70,179,199 |
Supplemental disclosures of cash flow information: | ||
Deferred financing costs included in accounts payable and accrued expenses | 63,288 | $ 159,288 |
Change in property and equipment acquired but not yet paid | $ 39,838 |
Nature of Business and Liquidit
Nature of Business and Liquidity | 6 Months Ended |
Jun. 30, 2018 | |
Nature of Business and Liquidity | |
Nature of Business and Liquidity | (1) Nature of Business and Liquidity Zynerba Pharmaceuticals, Inc., together with its subsidiary, Zynerba Pharmaceuticals Pty Ltd (the “Company” or “we”), is a clinical stage pharmaceutical company focused on the development of pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders, including Fragile X syndrome and refractory epilepsies. The Company was incorporated on January 31, 2007 under the laws of the State of Delaware as AllTranz, Inc. and changed its name to Zynerba Pharmaceuticals, Inc. in August 2014. The Company has incurred losses and negative cash flows from operations since inception and has an accumulated deficit of $102.3 million as of June 30, 2018. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant revenue from its product candidates currently in development. The Company's primary source of liquidity has been the issuance of equity securities. In June 2017, the Company entered into the Open Market Sales Agreement (the “Sales Agreement”) with Jefferies LLC, (“Jefferies”) pursuant to which the Company may sell, from time to time, up to $50.0 million of its common stock. During 2017, the Company sold and issued 296,594 shares of its common stock in the open market at a weighted average selling price of $10.74 per share, for gross proceeds of $3.2 million. Net proceeds after deducting commissions and offering expenses were $3.0 million. No shares were sold under the Sales Agreement during the six months ended June 30, 2018. On July 24, 2018, the Company completed a follow-on public offering, selling 4,062,500 shares of its common stock at an offering price of $8.00 per share, resulting in gross proceeds of $32.5 million. Net proceeds received after deducting underwriting discounts and commissions and offering expenses were $30.0 million. The Company has also granted the underwriters a 30-day option to purchase up to 609,375 additional shares of common stock at the public offering price, less underwriting discounts and commissions, which expires on August 19, 2018. Management believes that current cash and cash equivalents, including proceeds from the Company’s follow-on public offering on July 24, 2018, are sufficient to fund operations and capital requirements into the first half of 2020. Substantial additional financings will be needed by the Company to fund its operations, to complete clinical development of and to commercially develop its product candidates. There is no assurance that such financing will be available when needed or on acceptable terms. The Company is subject to those risks associated with any clinical stage pharmaceutical company that has substantial expenditures for research and development. There can be no assurance that the Company's research and development projects will be successful, that products developed will obtain necessary regulatory approval, or that any approved product will be commercially viable. In addition, the Company operates in an environment of rapid technological change and is largely dependent on the services of its employees and consultants. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies a. Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The interim unaudited consolidated financial statements have been prepared on the same basis as the consolidated financial statements as of and for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Annual Report”), filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying consolidated financial statements of the Company include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company's financial position as of June 30, 2018, its results of operations for the three and six months ended June 30, 2018 and 2017 and cash flows for the six months ended June 30, 2018 and 2017. Operating results for any interim period are not necessarily indicative of results for any future interim period or for the entire year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2017 Annual Report. b. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual results could differ from such estimates. c. Incentive and Tax Receivables The Company’s subsidiary, Zynerba Pharmaceuticals Pty Ltd (the “Subsidiary”), is incorporated in Australia. The Subsidiary is eligible to participate in an Australian research and development tax incentive program. As part of this program, the Subsidiary is eligible to receive a cash refund from the Australian Taxation Office for a percentage of the research and development costs expended by the Subsidiary in Australia. The cash refund is available to eligible companies with an annual aggregate revenue of less than $20.0 million (Australian) during the reimbursable period. The Company’s estimate of the amount of cash refund it expects to receive related to the Australian research and development tax incentive program is included in “Incentive and tax receivables” in the accompanying consolidated balance sheets. As of June 30, 2018, the Company’s estimate of the amount of cash refund it expects to receive in 2018 for 2017 eligible spending as part of this incentive program was $3.6 million and was recorded as a current asset. The Company’s estimate of the amount of cash refund it expects to receive in 2019 for 2018 eligible spending through June 30, 2018 was $2.1 million and was recorded as a non-current asset. In addition, the Subsidiary incurs Goods and Services Tax (“GST”) on services provided by Australian vendors. As an Australian entity, the Subsidiary is entitled to a refund of the GST paid. The Company’s estimate of the amount of cash refund it expects to receive related to GST incurred is included in “Incentive and tax receivables” in the accompanying consolidated balance sheets. As of June 30, 2018, incentive and tax receivables included $0.4 million for refundable GST on expenses incurred with Australian vendors during the three months ended June 30, 2018. d. Research and Development Research and development costs are expensed as incurred and are primarily comprised of external research and development expenses incurred under arrangements with third parties, such as contract research organizations (“CROs”), contract manufacturing organizations (“CMO’s”), consultants and employee-related expenses including salaries and benefits. At the end of each reporting period, the Company compares the payments made to each service provider to the estimated progress towards completion of the related project. Factors that the Company considers in preparing these estimates include the number of patients enrolled in studies, milestones achieved and other criteria related to the efforts of its vendors. These estimates will be subject to change as additional information becomes available. Depending on the timing of payments to vendors and estimated services provided, the Company will record net prepaid or accrued expenses related to these costs. R esearch and development expenses are recorded net of expected refunds of eligible research and development costs paid to Australian vendors pursuant to the Australian research and development tax incentive program and GST incurred on services provided by Australian vendors . e . Net Loss Per Share Basic net loss per share is determined using the weighted average number of shares of common stock outstanding during each period. Diluted net income per share includes the effect, if any, from the potential exercise or conversion of securities, such as restricted stock and stock options, which would result in the issuance of incremental shares of common stock. Basic and dilutive computations of net loss per share are the same in periods in which a net loss exists as the dilutive effects of restricted stock and stock options would be anti-dilutive. The following potentially dilutive securities outstanding as of June 30, 2018 and 2017 have been excluded from the computation of diluted weighted average shares outstanding, as their effects on net loss per share for the periods presented would be anti-dilutive: June 30, 2018 2017 Stock options 3,222,413 2,366,345 Unvested restricted stock 43,745 181,214 3,266,158 2,547,559 f. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases , which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. The pronouncement is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which provides specific guidance related to eight cash flow classification issues. The pronouncement is effective for interim and annual periods beginning after December 15, 2017. The adoption of the guidance in ASU No. 2016-15 in the first quarter of 2018 did not have an impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash , which requires changes in restricted cash and restricted cash equivalents to be explained on the statement of cash flows by including restricted cash and restricted cash equivalents in the beginning-of-period and end-of-period total cash and cash equivalents shown on the statement of cash flows. The pronouncement is effective for interim and annual periods beginning after December 15, 2017. The adoption of the guidance in ASU No. 2016-18 in the first quarter of 2018 did not have an impact on the Company’s consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | (3) Fair Value Measurements The Company measures certain assets and liabilities at fair value in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures . ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (the exit price) in an orderly transaction between market participants at the measurement date. The guidance in ASC 820 outlines a valuation framework and creates a fair value hierarchy that serves to increase the consistency and comparability of fair value measurements and the related disclosures. In determining fair value, the Company maximizes the use of quoted prices and observable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. The fair value hierarchy is broken down into three levels based on the source of inputs as follows : Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities. Level 3 — Valuations based on unobservable inputs and models that are supported by little or no market activity. The following fair value hierarchy tables present information about each major category of financial assets measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 : Fair Value Measurement Carrying amount as of June 30, 2018 as of June 30, 2018 Level 1 Level 2 Level 3 Cash equivalents (money market accounts) $ 42,788,672 $ 42,788,672 $ — $ — $ 42,788,672 $ 42,788,672 $ — $ — Fair Value Measurement Carrying amount as of December 31, 2017 as of December 31, 2017 Level 1 Level 2 Level 3 Cash equivalents (money market accounts) $ 61,133,457 $ 61,133,457 $ — $ — Certificate of deposit (included in prepaid expenses and other current assets) 20,171 20,171 — — $ 61,153,628 $ 61,153,628 $ — $ — |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expenses and Other Current Assets | |
Prepaid Expenses and Other Current Assets | (4) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 Prepaid development expenses $ 1,392,554 $ 907,028 Prepaid insurance 47,014 355,838 Deferred financing costs 288,727 240,439 Other current assets 233,996 230,396 Total prepaid expenses and other current assets $ 1,962,291 $ 1,733,701 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property and Equipment | |
Property and Equipment | (5) Property and Equipment Property and equipment consisted of the following as of June 30, 2018 and December 31, 2017: Estimated useful life June 30, December 31, (in years) 2018 2017 Equipment 2-5 $ 85,417 $ 85,417 Computer equipment 3-5 30,319 30,319 Furniture and fixtures 3-5 300,407 199,016 Leasehold improvements various 68,881 12,863 Total cost 485,024 327,615 Less accumulated depreciation (211,240) (163,088) Property and equipment, net $ 273,784 $ 164,527 Depreciation expense was $21,586 and $23,176 for the three months ended June 30, 2018 and 2017, respectively, and $48,152 and $43,595 six months ended June 30, 2018 and 2017, respectively. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Accrued Expenses | |
Accrued Expenses | (6) Accrued Expenses Accrued expenses consisted of the following as of June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 Accrued compensation $ 1,407,686 $ 1,503,615 Accrued research and development 2,929,198 2,059,536 Other 574,034 352,340 Total accrued expenses $ 4,910,918 $ 3,915,491 |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2018 | |
Common Stock | |
Common Stock | (7) Common Stock In June 2017, the Company entered into the Sales Agreement with Jefferies pursuant to which the Company may sell, from time to time, up to $50.0 million of its common stock. As of June 30, 2018, cumulative shares sold in the open market under the Sales Agreement were 296,594 shares, resulting in gross proceeds of $3.2 million. Net proceeds after deducting commissions and offering expenses were $3.0 million. No shares were sold under the Sales Agreement during the six months ended June 30, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | (8) Stock-Based Compensation The Company maintains the Amended and Restated 2014 Omnibus Incentive Compensation Plan, as amended (the “2014 Plan”), which allows for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, stock awards, stock units, performance units and other stock‑based awards to employees, officers, non-employee directors, consultants, and advisors. In addition, the 2014 Plan provides selected executive employees with the opportunity to receive bonus awards that are considered qualified performance‑based compensation. T he 2014 Plan is subject to automatic annual increases in the number of shares authorized for issuance under the 2014 Plan on the first trading day of January each year equal to the lesser of 1.5 million shares or 10% of the number of shares of common stock outstanding on the last trading day of December of the preceding year. As of January 1, 2018, the number of shares of common stock that may be issued under the 2014 Plan was automatically increased by 1,355,387 shares, increasing the number of shares of common stock available for issuance under the 2014 Plan to 4,804,869 shares. As of June 30, 2018, 1,086,663 shares are available for issuance under the 2014 Plan. Options issued under the 2014 Plan have a contractual life of 10 years and may be exercisable in cash or as otherwise determined by the board of directors. The Company has granted options to employees and non‑employee directors. Stock options granted to employees vest 25% upon the first anniversary of the grant date and the balance of unvested options vests in quarterly installments over a three-year period. Stock options granted annually to non-employee directors vest on the earlier of the one-year anniversary of the grant date, or the date of the Company’s next annual stockholders’ meeting that occurs after the grant date. The Company’s non-employee director compensation policy enables directors to receive stock options in lieu of quarterly cash payments. Any option granted to the directors in lieu of cash compensation vests in full on the date of grant. The Company granted 83,280 performance-based stock options to certain employees in January 2018. These performance options have a 10-year life and an exercise price equal to the fair value of the Company’s stock at the grant date. Vesting of these performance options is dependent on meeting certain performance conditions, which relate to the Company’s research and development progress, which were established by the Company’s board of directors. The Company’s board of directors determines if the performance conditions have been met. Stock-based compensation expense for these options is recorded when management estimates that the vesting of these options is probable based on the status of the Company’s research and development programs and other relevant factors. For the six months ended June 30, 2018, none of the performance-based metrics were deemed probable. Any change in these estimates will result in a cumulative adjustment in the period in which the estimate is changed, so that as of the end of a period, the cumulative compensation expense recognized for an award or grant equals the amount that would be recognized on a straight-line basis as if the current estimates had been utilized since the beginning of the service period. The aggregate estimated grant date fair value of options for which the satisfaction of the related-performance conditions have not been deemed probable is $663,484. For the six months ended June 30, 2018 and 2017, the Company recorded stock-based compensation expense related to its stock option grants and restricted stock awards, as follows: Stock Option Grants Restricted stock awards Total Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 2018 2017 Research and development $ 1,393,962 $ 1,051,818 $ 130,668 $ 78,740 $ 1,524,630 $ 1,130,558 General and administrative 1,878,707 1,372,335 39,546 41,180 1,918,253 1,413,515 $ 3,272,669 $ 2,424,153 $ 170,214 $ 119,920 $ 3,442,883 $ 2,544,073 The following table summarizes the stock option activity for the six months ended June 30, 2018: Weighted- Weighted- Average Average Aggregate Number Exercise Contractual Intrinsic of Shares Price Life (in Years) Value Outstanding as of December 31, 2017 2,386,538 $ 12.53 Granted 835,875 $ 11.50 Outstanding as of June 30, 2018 3,222,413 $ 12.27 8.01 $ 3,331,726 Exercisable as of June 30, 2018 1,591,565 $ 11.03 7.21 $ 3,105,211 Vested and expected to vest as of June 30, 2018 3,222,413 $ 12.27 The weighted-average grant date fair value of options granted during the six months ended June 30, 2018 and 2017 was $7.94 and $13.09, respectively. During the six months ended June 30, 2018, stock option grants included 3,975 stock options that were granted to certain members of the Company’s board of directors, at their election, in lieu of quarterly cash payments. The fair values of stock options granted were calculated using the Black-Scholes option pricing model with the following weighted-average assumptions: Six months ended June 30, 2018 2017 Weighted-average risk-free interest rate Expected term of options (in years) Expected stock price volatility Expected dividend yield As of June 30, 2018, excluding performance-based stock options that have not been deemed probable, there was $12.6 million of unrecognized stock-based compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.62 years. The following table summarizes the restricted stock award activity under the 2014 Plan for the six months ended June 30, 2018: Weighted Average Grant Date Shares Fair Value Unvested as of December 31, 2017 108,730 $ 1.65 Granted 7,500 12.99 Vested (72,485) 1.65 Unvested as of June 30, 2018 43,745 $ 3.60 As of June 30, 2018, there was $0.1 million of unrecognized stock-based compensation expense related to unvested restricted stock awards, which is expected to be recognized over a weighted-average period of 0.38 years. The Company expects all 43,745 unvested restricted stock awards to vest. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events | |
Subsequent Events | (9) Subsequent Events On July 24, 2018, the Company completed a follow-on public offering, selling 4,062,500 shares of its common stock at an offering price of $8.00 per share, resulting in gross proceeds of $32.5 million. Net proceeds received after deducting underwriting discounts and commissions and offering expenses were $30.0 million. The Company has also granted the underwriters a 30-day option to purchase up to 609,375 additional shares of common stock at the public offering price, less underwriting discounts and commissions, which expires on August 19, 2018. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | a. Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The interim unaudited consolidated financial statements have been prepared on the same basis as the consolidated financial statements as of and for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Annual Report”), filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying consolidated financial statements of the Company include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company's financial position as of June 30, 2018, its results of operations for the three and six months ended June 30, 2018 and 2017 and cash flows for the six months ended June 30, 2018 and 2017. Operating results for any interim period are not necessarily indicative of results for any future interim period or for the entire year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2017 Annual Report. |
Use of Estimates | b. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual results could differ from such estimates. |
Incentive and Tax Receivable | c. Incentive and Tax Receivables The Company’s subsidiary, Zynerba Pharmaceuticals Pty Ltd (the “Subsidiary”), is incorporated in Australia. The Subsidiary is eligible to participate in an Australian research and development tax incentive program. As part of this program, the Subsidiary is eligible to receive a cash refund from the Australian Taxation Office for a percentage of the research and development costs expended by the Subsidiary in Australia. The cash refund is available to eligible companies with an annual aggregate revenue of less than $20.0 million (Australian) during the reimbursable period. The Company’s estimate of the amount of cash refund it expects to receive related to the Australian research and development tax incentive program is included in “Incentive and tax receivables” in the accompanying consolidated balance sheets. As of June 30, 2018, the Company’s estimate of the amount of cash refund it expects to receive in 2018 for 2017 eligible spending as part of this incentive program was $3.6 million and was recorded as a current asset. The Company’s estimate of the amount of cash refund it expects to receive in 2019 for 2018 eligible spending through June 30, 2018 was $2.1 million and was recorded as a non-current asset. In addition, the Subsidiary incurs Goods and Services Tax (“GST”) on services provided by Australian vendors. As an Australian entity, the Subsidiary is entitled to a refund of the GST paid. The Company’s estimate of the amount of cash refund it expects to receive related to GST incurred is included in “Incentive and tax receivables” in the accompanying consolidated balance sheets. As of June 30, 2018, incentive and tax receivables included $0.4 million for refundable GST on expenses incurred with Australian vendors during the three months ended June 30, 2018. |
Research and Development | d. Research and Development Research and development costs are expensed as incurred and are primarily comprised of external research and development expenses incurred under arrangements with third parties, such as contract research organizations (“CROs”), contract manufacturing organizations (“CMO’s”), consultants and employee-related expenses including salaries and benefits. At the end of each reporting period, the Company compares the payments made to each service provider to the estimated progress towards completion of the related project. Factors that the Company considers in preparing these estimates include the number of patients enrolled in studies, milestones achieved and other criteria related to the efforts of its vendors. These estimates will be subject to change as additional information becomes available. Depending on the timing of payments to vendors and estimated services provided, the Company will record net prepaid or accrued expenses related to these costs. R esearch and development expenses are recorded net of expected refunds of eligible research and development costs paid to Australian vendors pursuant to the Australian research and development tax incentive program and GST incurred on services provided by Australian vendors . |
Net Loss per Share | e . Net Loss Per Share Basic net loss per share is determined using the weighted average number of shares of common stock outstanding during each period. Diluted net income per share includes the effect, if any, from the potential exercise or conversion of securities, such as restricted stock and stock options, which would result in the issuance of incremental shares of common stock. Basic and dilutive computations of net loss per share are the same in periods in which a net loss exists as the dilutive effects of restricted stock and stock options would be anti-dilutive. The following potentially dilutive securities outstanding as of June 30, 2018 and 2017 have been excluded from the computation of diluted weighted average shares outstanding, as their effects on net loss per share for the periods presented would be anti-dilutive: June 30, 2018 2017 Stock options 3,222,413 2,366,345 Unvested restricted stock 43,745 181,214 3,266,158 2,547,559 |
Recent Accounting Pronouncements | f. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases , which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. The pronouncement is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which provides specific guidance related to eight cash flow classification issues. The pronouncement is effective for interim and annual periods beginning after December 15, 2017. The adoption of the guidance in ASU No. 2016-15 in the first quarter of 2018 did not have an impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash , which requires changes in restricted cash and restricted cash equivalents to be explained on the statement of cash flows by including restricted cash and restricted cash equivalents in the beginning-of-period and end-of-period total cash and cash equivalents shown on the statement of cash flows. The pronouncement is effective for interim and annual periods beginning after December 15, 2017. The adoption of the guidance in ASU No. 2016-18 in the first quarter of 2018 did not have an impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies | |
Summary of potentially dilutive securities excluded from the computation of diluted weighted average shares outstanding | June 30, 2018 2017 Stock options 3,222,413 2,366,345 Unvested restricted stock 43,745 181,214 3,266,158 2,547,559 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Summary of financial assets measured at fair value on a recurring basis | Fair Value Measurement Carrying amount as of June 30, 2018 as of June 30, 2018 Level 1 Level 2 Level 3 Cash equivalents (money market accounts) $ 42,788,672 $ 42,788,672 $ — $ — $ 42,788,672 $ 42,788,672 $ — $ — Fair Value Measurement Carrying amount as of December 31, 2017 as of December 31, 2017 Level 1 Level 2 Level 3 Cash equivalents (money market accounts) $ 61,133,457 $ 61,133,457 $ — $ — Certificate of deposit (included in prepaid expenses and other current assets) 20,171 20,171 — — $ 61,153,628 $ 61,153,628 $ — $ — |
Prepaid Expenses and Other Cu19
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expenses and Other Current Assets | |
Schedule of prepaid expenses and other current assets | June 30, December 31, 2018 2017 Prepaid development expenses $ 1,392,554 $ 907,028 Prepaid insurance 47,014 355,838 Deferred financing costs 288,727 240,439 Other current assets 233,996 230,396 Total prepaid expenses and other current assets $ 1,962,291 $ 1,733,701 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property and Equipment | |
Schedule of property and equipment | Estimated useful life June 30, December 31, (in years) 2018 2017 Equipment 2-5 $ 85,417 $ 85,417 Computer equipment 3-5 30,319 30,319 Furniture and fixtures 3-5 300,407 199,016 Leasehold improvements various 68,881 12,863 Total cost 485,024 327,615 Less accumulated depreciation (211,240) (163,088) Property and equipment, net $ 273,784 $ 164,527 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accrued Expenses | |
Schedule of accrued expenses | June 30, December 31, 2018 2017 Accrued compensation $ 1,407,686 $ 1,503,615 Accrued research and development 2,929,198 2,059,536 Other 574,034 352,340 Total accrued expenses $ 4,910,918 $ 3,915,491 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stock-Based Compensation | |
Schedule of stock-based compensation expense | Stock Option Grants Restricted stock awards Total Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 2018 2017 Research and development $ 1,393,962 $ 1,051,818 $ 130,668 $ 78,740 $ 1,524,630 $ 1,130,558 General and administrative 1,878,707 1,372,335 39,546 41,180 1,918,253 1,413,515 $ 3,272,669 $ 2,424,153 $ 170,214 $ 119,920 $ 3,442,883 $ 2,544,073 |
Summary of stock option activity | Weighted- Weighted- Average Average Aggregate Number Exercise Contractual Intrinsic of Shares Price Life (in Years) Value Outstanding as of December 31, 2017 2,386,538 $ 12.53 Granted 835,875 $ 11.50 Outstanding as of June 30, 2018 3,222,413 $ 12.27 8.01 $ 3,331,726 Exercisable as of June 30, 2018 1,591,565 $ 11.03 7.21 $ 3,105,211 Vested and expected to vest as of June 30, 2018 3,222,413 $ 12.27 |
Schedule of weighted-average assumptions used to calculate fair values of stock options | Six months ended June 30, 2018 2017 Weighted-average risk-free interest rate Expected term of options (in years) Expected stock price volatility Expected dividend yield |
Summary of restricted stock activity | Weighted Average Grant Date Shares Fair Value Unvested as of December 31, 2017 108,730 $ 1.65 Granted 7,500 12.99 Vested (72,485) 1.65 Unvested as of June 30, 2018 43,745 $ 3.60 |
Nature of Business and Liquid23
Nature of Business and Liquidity (Details) - USD ($) | Jul. 24, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 |
Sales of Stock | |||||
Accumulated deficit | $ 102,294,433 | $ 77,980,866 | $ 102,294,433 | ||
Proceeds from the issuance of common stock, net of offering costs | $ 54,245,579 | ||||
Follow On Public Offering | Subsequent Event | |||||
Sales of Stock | |||||
Shares issued | 4,062,500 | ||||
Offering price per share | $ 8 | ||||
Gross proceeds from issuance of common stock | $ 32,500,000 | ||||
Proceeds from the issuance of common stock, net of offering costs | $ 30,000,000 | ||||
Open Market Offering | |||||
Sales of Stock | |||||
Maximum aggregate value of common stock available for offering | $ 50,000,000 | ||||
Shares issued | 0 | 296,594 | 296,594 | ||
Weighted average selling price per share | $ 10.74 | ||||
Gross proceeds from issuance of common stock | $ 3,200,000 | $ 3,200,000 | |||
Proceeds from the issuance of common stock, net of offering costs | $ 3,000,000 | $ 3,000,000 | |||
Over-Allotment Option | Subsequent Event | |||||
Sales of Stock | |||||
Period for option to purchase additional shares | 30 days | ||||
Maximum additional shares with option to purchase | 609,375 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Other (Details) - 6 months ended Jun. 30, 2018 - Australian Taxation Office $ in Millions, $ in Millions | AUD ($) | USD ($) |
Incentive and Tax Receivable | ||
Aggregate revenue maximum to be eligible to receive a cash refund | $ 20 | |
Incentive and Tax Receivables Current | ||
Incentive and Tax Receivable | ||
Estimated incentive receivable | $ 3.6 | |
Estimated GST receivable | 0.4 | |
Incentive and Tax Receivables Noncurrent | ||
Incentive and Tax Receivable | ||
Estimated incentive receivable | $ 2.1 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Anti-dilutive securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Anti-dilutive securities | 3,266,158 | 2,547,559 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Anti-dilutive securities | 3,222,413 | 2,366,345 |
Restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Anti-dilutive securities | 43,745 | 181,214 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying value | ||
Fair value on a recurring basis | ||
Cash equivalents (money market accounts) | $ 42,788,672 | $ 61,133,457 |
Certificate of deposit (included in prepaid expenses and other current assets) | 20,171 | |
Total | 42,788,672 | 61,153,628 |
Recurring | Fair Value Measurement | Level 1 | ||
Fair value on a recurring basis | ||
Cash equivalents (money market accounts) | 42,788,672 | 61,133,457 |
Certificate of deposit (included in prepaid expenses and other current assets) | 20,171 | |
Total | $ 42,788,672 | $ 61,153,628 |
Prepaid Expenses and Other Cu27
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Prepaid Expenses and Other Current Assets | ||
Prepaid development expenses | $ 1,392,554 | $ 907,028 |
Prepaid insurance | 47,014 | 355,838 |
Deferred financing costs | 288,727 | 240,439 |
Other current assets | 233,996 | 230,396 |
Total prepaid expenses and other current assets | $ 1,962,291 | $ 1,733,701 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment | |||||
Total cost | $ 485,024 | $ 485,024 | $ 327,615 | ||
Less accumulated depreciation | (211,240) | (211,240) | (163,088) | ||
Property and equipment, net | 273,784 | 273,784 | 164,527 | ||
Depreciation expense | 21,586 | $ 23,176 | 48,152 | $ 43,595 | |
Equipment | |||||
Property, Plant and Equipment | |||||
Total cost | 85,417 | $ 85,417 | 85,417 | ||
Equipment | Minimum | |||||
Property, Plant and Equipment | |||||
Estimated useful life (in years) | P2Y | ||||
Equipment | Maximum | |||||
Property, Plant and Equipment | |||||
Estimated useful life (in years) | P5Y | ||||
Computer equipment | |||||
Property, Plant and Equipment | |||||
Total cost | 30,319 | $ 30,319 | 30,319 | ||
Computer equipment | Minimum | |||||
Property, Plant and Equipment | |||||
Estimated useful life (in years) | P3Y | ||||
Computer equipment | Maximum | |||||
Property, Plant and Equipment | |||||
Estimated useful life (in years) | P5Y | ||||
Furniture and fixtures | |||||
Property, Plant and Equipment | |||||
Total cost | 300,407 | $ 300,407 | 199,016 | ||
Furniture and fixtures | Minimum | |||||
Property, Plant and Equipment | |||||
Estimated useful life (in years) | P3Y | ||||
Furniture and fixtures | Maximum | |||||
Property, Plant and Equipment | |||||
Estimated useful life (in years) | P5Y | ||||
Leasehold improvements | |||||
Property, Plant and Equipment | |||||
Estimated useful life (in years) | various | ||||
Total cost | $ 68,881 | $ 68,881 | $ 12,863 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Accrued Expenses | ||
Accrued compensation | $ 1,407,686 | $ 1,503,615 |
Accrued research and development | 2,929,198 | 2,059,536 |
Other | 574,034 | 352,340 |
Total accrued expenses | $ 4,910,918 | $ 3,915,491 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 6 Months Ended | 7 Months Ended | 13 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 | |
Sales of Stock | ||||
Proceeds from the issuance of common stock, net of offering costs | $ 54,245,579 | |||
Open Market Offering | ||||
Sales of Stock | ||||
Maximum aggregate value of common stock available for offering | $ 50,000,000 | |||
Shares issued | 0 | 296,594 | 296,594 | |
Gross proceeds from issuance of common stock | $ 3,200,000 | $ 3,200,000 | ||
Proceeds from the issuance of common stock, net of offering costs | $ 3,000,000 | $ 3,000,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Narrative (Details) - 2014 Plan - USD ($) | Jan. 01, 2018 | Jan. 01, 2017 | Jan. 31, 2018 | Jun. 30, 2018 |
Stock-Based Compensation | ||||
Threshold increase of authorized shares for issuance | 1,500,000 | |||
Threshold increase of authorized shares for issuance (as a percent) | 10.00% | |||
Additional number of shares authorized for issuance | 1,355,387 | |||
Shares authorized for grant | 4,804,869 | |||
Shares available for issuance | 1,086,663 | |||
Stock options | ||||
Stock-Based Compensation | ||||
Granted (in shares) | 835,875 | |||
Contractual life (in years) | 10 years | |||
Performance-based Stock options | ||||
Stock-Based Compensation | ||||
Granted (in shares) | 83,280 | |||
Contractual life (in years) | 10 years | |||
Shares options vested based upon performance-based metrics | 0 | |||
Aggregate fair value | $ 663,484 | |||
Employees | Stock options | ||||
Stock-Based Compensation | ||||
Vesting percentage | 25.00% | |||
Vesting period | 3 years | |||
Board of Directors | Stock options | ||||
Stock-Based Compensation | ||||
Granted (in shares) | 3,975 | |||
Board of Directors | Stock options | Maximum | ||||
Stock-Based Compensation | ||||
Vesting period | 1 year |
Stock-Based Compensation - St32
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - 2014 Plan - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Stock-Based Compensation | ||
Stock-based compensation | $ 3,442,883 | $ 2,544,073 |
Research and development | ||
Stock-Based Compensation | ||
Stock-based compensation | 1,524,630 | 1,130,558 |
General and administrative | ||
Stock-Based Compensation | ||
Stock-based compensation | 1,918,253 | 1,413,515 |
Stock options | ||
Stock-Based Compensation | ||
Stock-based compensation | 3,272,669 | 2,424,153 |
Stock options | Research and development | ||
Stock-Based Compensation | ||
Stock-based compensation | 1,393,962 | 1,051,818 |
Stock options | General and administrative | ||
Stock-Based Compensation | ||
Stock-based compensation | 1,878,707 | 1,372,335 |
Restricted stock | ||
Stock-Based Compensation | ||
Stock-based compensation | 170,214 | 119,920 |
Restricted stock | Research and development | ||
Stock-Based Compensation | ||
Stock-based compensation | 130,668 | 78,740 |
Restricted stock | General and administrative | ||
Stock-Based Compensation | ||
Stock-based compensation | $ 39,546 | $ 41,180 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options Activity, Unrecognized Costs, Valuation (Details) - 2014 Plan - Stock options - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Options | ||
Balance (in shares) | 2,386,538 | |
Granted (in shares) | 835,875 | |
Balance (in shares) | 3,222,413 | |
Options exercisable (in shares) | 1,591,565 | |
Options vested and expected to vest (in shares) | 3,222,413 | |
Weighted average exercise price per share | ||
Balance (in dollars per shares) | $ 12.53 | |
Granted (in dollars per shares) | 11.50 | |
Balance (in dollars per shares) | 12.27 | |
Options exercisable (in dollars per shares) | 11.03 | |
Options vested and expected to vest (in dollars per share) | $ 12.27 | |
Additional disclosures | ||
Options Outstanding Weighted Average Contractual term | 8 years 4 days | |
Options Vested and Expected to Vest Weighted Average Contractual Life | 7 years 2 months 16 days | |
Options Outstanding Aggregate Intrinsic Value | $ 3,331,726 | |
Options Exercisable Aggregate Intrinsic Value | 3,105,211 | |
Expected stock based compensation expense | $ 12,600,000 | |
Recognition period for compensation costs | 2 years 7 months 13 days | |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 7.94 | $ 13.09 |
Assumptions and Methodology | ||
Weighted average risk-free interest rate (as a percent) | 2.51% | 2.11% |
Expected term of options (in years) | 6 years 1 month 17 days | 6 years 1 month 21 days |
Expected stock price volatility (as a percent) | 78.00% | 77.00% |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Board of Directors | ||
Options | ||
Granted (in shares) | 3,975 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity, Unrecognized Costs (Details) - 2014 Plan - Restricted stock $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Restricted stock award activity | |
Unvested balance (in shares) | 108,730 |
Granted (in shares) | 7,500 |
Vested (in shares) | (72,485) |
Unvested balance (in shares) | 43,745 |
Weighted Average Grant Date Fair Value | |
Unvested balance (in dollars per share) | $ / shares | $ 1.65 |
Granted (in dollars per share) | $ / shares | 12.99 |
Vested (in dollars per share) | $ / shares | 1.65 |
Unvested balance (in dollars per share) | $ / shares | $ 3.60 |
Unrecognized compensation expense related to unvested awards | $ | $ 0.1 |
Recognition period for compensation costs | 4 months 17 days |
Unvested restricted stock awards expected to vest (in shares) | 43,745 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jul. 24, 2018 | Jun. 30, 2017 |
Subsequent Events | ||
Proceeds from the issuance of common stock, net of offering costs | $ 54,245,579 | |
Subsequent Event | Follow On Public Offering | ||
Subsequent Events | ||
Shares issued | 4,062,500 | |
Offering price per share | $ 8 | |
Gross proceeds from issuance of common stock | $ 32,500,000 | |
Proceeds from the issuance of common stock, net of offering costs | $ 30,000,000 | |
Subsequent Event | Over-Allotment Option | ||
Subsequent Events | ||
Period for option to purchase additional shares | 30 days | |
Maximum additional shares with option to purchase | 609,375 |