Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 13, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | APVO | |
Entity Registrant Name | APTEVO THERAPEUTICS INC. | |
Entity Central Index Key | 0001671584 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Extended Transition Period | true | |
Entity Shell Company | false | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 3,232,811 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Address, Address Line One | 2401 4th Avenue | |
Entity Address, Address Line Two | Suite 1050 | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98121 | |
City Area Code | 206 | |
Local Phone Number | 838-0500 | |
Entity Incorporation, State or Country Code | DE | |
Entity Current Reporting Status | Yes | |
Entity Tax Identification Number | 81-1567056 | |
Entity File Number | 001-37746 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 12,258 | $ 12,448 |
Prepaid expenses | 1,343 | 1,078 |
Held for sale assets - current | 16,309 | |
Other current assets | 1,224 | 160 |
Total current assets | 14,825 | 29,995 |
Restricted cash | 2,529 | 7,498 |
Property and equipment, net | 3,629 | 3,946 |
Operating lease right-of-use asset | 3,504 | 3,747 |
Held for sale assets - non-current | 7,465 | |
Other assets | 757 | 757 |
Total assets | 25,244 | 53,408 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 5,001 | 6,427 |
Accrued compensation | 1,085 | 2,870 |
Current portion of long-term debt | 19,863 | |
Held for sale liabilities - current | 8,135 | |
Other current liabilities | 907 | 944 |
Total current liabilities | 6,993 | 38,239 |
Operating lease liability | 3,099 | 3,327 |
Total liabilities | 10,092 | 41,566 |
Stockholders' equity: | ||
Preferred stock: $0.001 par value; 15,000,000 shares authorized, zero shares issued or outstanding | ||
Common stock: $0.001 par value; 500,000,000 shares authorized; 3,232,811 and 3,234,232 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 45 | 45 |
Additional paid-in capital | 180,066 | 179,653 |
Accumulated deficit | (164,959) | (167,856) |
Total stockholders' equity | 15,152 | 11,842 |
Total liabilities and stockholders' equity | $ 25,244 | $ 53,408 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 3,232,811 | 3,234,232 |
Common stock, shares outstanding | 3,232,811 | 3,234,232 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating expenses: | ||
Research and development | $ 4,006 | $ 6,634 |
General and administrative | 3,616 | 4,528 |
Total operating expenses: | 7,622 | 11,162 |
Other expense: | ||
Other expense, net | 275 | 579 |
Loss on extinguishment of debt | 2,104 | |
Net loss from continuing operations | (10,001) | (11,741) |
Discontinued operations (Note 2): | ||
Income (loss) from discontinued operations | 12,898 | (277) |
Net income (loss) | $ 2,897 | $ (12,018) |
Net loss from continuing operations | $ (3.06) | $ (7.46) |
Net income (loss) from discontinued operations | 3.94 | (0.18) |
Basic and diluted net income (loss) per basic share | $ 0.89 | $ (7.64) |
Weighted-average shares used to compute per share calculations | 3,270,089 | 1,573,233 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net income (loss) | $ 2,897 | $ (12,018) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 413 | 594 |
Depreciation and amortization | 455 | 583 |
Gain on sale of Aptevo BioTherapeutics | (14,338) | |
Loss on extinguishment of debt | 2,104 | |
Non-cash interest expense and other | 137 | 198 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (581) | |
Inventories | (2,561) | |
Prepaid expenses and other current assets | (1,329) | 121 |
Operating lease right of use asset | 243 | 211 |
Accounts payable, accrued compensation and other liabilities | (3,248) | 368 |
Long-term operating lease liability | (228) | (371) |
Changes in assets and liabilities held for sale | 1,719 | |
Sales and rebates discounts | (388) | |
Net cash used in operating activities | (11,175) | (13,844) |
Investing Activities | ||
Cash received from sale of Aptevo BioTherapeutics | 28,120 | |
Purchases of property and equipment | (153) | |
Net cash (used in) provided by investing activities | 28,120 | (153) |
Financing Activities | ||
Payments of long-term debt, including exit and other fees | (22,104) | |
Proceeds of issuance of common stock, warrants, and pre-funded warrants, net | 20,410 | |
Proceeds from issuance of prefunded warrants | 21 | |
Value of equity awards withheld for tax liability | (58) | |
Net cash provided by (used in) financing activities | (22,104) | 20,373 |
Increase (decrease) in cash, cash equivalents, and restricted cash | (5,159) | 6,376 |
Cash, cash equivalents, and restricted cash at beginning of period | 19,946 | 38,083 |
Cash, cash equivalents, and restricted cash at end of period | $ 14,787 | $ 44,459 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance at Dec. 31, 2018 | $ 30,406 | $ 23 | $ 157,791 | $ (127,408) |
Balance (in shares) at Dec. 31, 2018 | 1,629,173 | |||
Issuance of common stock, pre-funded warrants and warrants, net | 20,206 | $ 22 | 20,184 | |
Issuance of common stock, pre-funded warrants and warrants, net (in shares) | 1,571,429 | |||
Issuance of commitment shares of common stock, non-cash transaction (in shares) | 13,991 | |||
Common stock issued upon vesting of restricted stock units | (58) | (58) | ||
Common stock issued upon vesting of restricted stock units (in shares) | 6,138 | |||
Stock-based compensation | 594 | 594 | ||
Net loss for the period | (12,018) | (12,018) | ||
Balance at Mar. 31, 2019 | 39,130 | $ 45 | 178,511 | (139,426) |
Balance (in shares) at Mar. 31, 2019 | 3,220,730 | |||
Balance at Dec. 31, 2019 | 11,842 | $ 45 | 179,653 | (167,856) |
Balance (in shares) at Dec. 31, 2019 | 3,234,232 | |||
Cancellation of fractional shares arising from reverse stock split | (1,421) | |||
Stock-based compensation | 413 | 413 | ||
Net loss for the period | 2,897 | 2,897 | ||
Balance at Mar. 31, 2020 | $ 15,152 | $ 45 | $ 180,066 | $ (164,959) |
Balance (in shares) at Mar. 31, 2020 | 3,232,811 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | Note 1. Nature of Business and Significant Accounting Policies Organization and Liquidity Aptevo Therapeutics Inc. (Aptevo, we, us, or the Company) is a clinical-stage biotechnology company focused on developing novel immunotherapies for the treatment of cancer. Our lead clinical candidate, APVO436, and preclinical candidates, ALG.APV-527 and APVO603 were developed based on the Company’s versatile and robust ADAPTIR™ modular protein technology platform. The ADAPTIR platform is capable of generating highly differentiated bispecific antibodies with unique mechanisms of action for the treatment of different types of cancer. Before February 28, 2020, we had one revenue-generating product in the area of hematology, IXINITY ® We are currently trading on the Nasdaq Capital Market under the symbol “APVO.” On February 28, 2020, we entered into an LLC Purchase Agreement with Medexus Pharma Inc. (“Medexus”), pursuant to which we sold all of the issued and outstanding limited liability company interests of Aptevo BioTherapeutics LLC (“Aptevo BioTherapeutics”) , a wholly owned subsidiary of Aptevo. As a result of the transaction, Medexus obtained all rights, title and interest to the IXINITY product, and the related Hemophilia B business and intellectual property. In addition, Aptevo BioTherapeutics personnel responsible for the sale and marketing of IXINITY also transitioned to Medexus as part of the transaction. Aptevo BioTherapeutics met all the conditions to be classified as a discontinued operation since the sale of Aptevo BioTherapeutics represented a strategic shift that will have a major effect on the Company’s operations and financial results. Aptevo will not have further significant involvement in the operations of the discontinued Aptevo BioTherapeutics business. The operating results of Aptevo BioTherapeutics are reported as income (loss) from discontinued operations, in the condensed consolidated statements of operations for all periods presented. The gain recognized on the sale of Aptevo BioTherapeutics is presented in income (loss) from discontinued operations in the condensed consolidated statement of operations. In addition, on the consolidated balance sheet as of December 31, 2019, the assets and liabilities held for sale have been presented separately. See Note 2 - Sale of Aptevo BioTherapeutics for additional information. The accompanying financial statements have been prepared on a basis that assumes we will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. For the three months ended March 31, 2020 and 2019, we had a net income $2.9 million and net loss $12.0 million, respectively. We had an accumulated deficit of $165.0 million as of March 31, 2020. For the three months ended March 31, 2020, net cash used in our operating activities was $11.2 million. We have suffered recurring losses from operations and negative cash flows from operating activities. When considered in aggregate, these factors raise substantial doubt about our ability to continue as a going concern for the one-year period from the date of issuance of these financial statements. We will need to raise additional funds to support our operating and capital needs in 2020. We continue to face significant challenges and uncertainties and, as a result, our available capital resources may be consumed more rapidly than currently expected due to: (a) changes we may make to the business that affect ongoing operating expenses; (b) changes we may make in our business strategy; (c) changes we may make in our research and development spending plans; (d) potential decreases in our expected milestone and deferred payments from Medexus with respect to IXINITY; and (e) other items affecting our forecasted level of expenditures and use of cash resources. We may attempt to obtain additional funding through our existing equity sales agreement with Lincoln Park Financial LLC or our Equity Distribution Agreement with Piper Sandler, or other public or private financing, collaborative arrangements with strategic partners, or through credit lines or other debt financing sources to increase the funds available to fund operations. However, we may not be able to secure such funding in a timely manner or on favorable terms, if at all. Furthermore, if we issue equity or debt securities to raise additional funds, our existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of our existing stockholders. If we raise additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to our potential products or proprietary technologies, or grant licenses on terms that are not favorable to us. Without additional funds, we may be forced to delay, scale back or eliminate some of our research and development activities or other operations and potentially delay product development in an effort to provide sufficient funds to continue our operations. If any of these events occurs, our ability to achieve our development and commercialization goals may be adversely affected. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, we may experience delays or difficulties to the financing environment and raising capital due to economic uncertainty. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). These condensed consolidated financial statements include all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial position. 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The condensed consolidated financial statements include the accounts of the company and its wholly owned subsidiaries: Aptevo Research and Development LLC and Aptevo BioTherapeutics LLC (for all periods prior to the sale to Medexus). All intercompany balances and transactions have been eliminated. In March 2020, we effected a reverse stock split (the “Reverse Split”) of our common stock pursuant to which every 14 shares of our common stock issued and outstanding as of March 26, 2020 were automatically combined into one issued and outstanding share of common stock. No fractional shares were issued as a result of the reverse stock split. Stockholders of record who would otherwise have been entitled to receive a fractional share received a cash payment in lieu thereof. All share and per share information with respect to our common stock have been restated to reflect the effect of the Reverse Split for all periods presented. Refer to Note 8 for additional information. Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, useful lives of equipment, commitments and contingencies, stock-based compensation forfeiture rates, and collectability of receivables. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates are becoming more challenging, and actual results could differ materially from those estimates. Other Significant Accounting Policies Our significant accounting policies were reported in our Annual Report on Form 10-K for the year ended December 31, 2019 that was filed with the SEC on March 25, 2020. Our significant accounting policies have not changed materially from the policies previously reported. Recently Adopted Standards On December 18, 2019 we adopted ASU No. 2019-12, Income Taxes (Topic 740), which amended the existing standards for income tax accounting, eliminating the legacy exception on how to allocate income tax expense or benefit for the year to continuing operations, discontinued operations, other comprehensive income, and other charges or credits recorded directly to shareholder’s equity. We did not adjust comparative periods in our financial statements prior to that period. Adoption of the new standard resulted in determining the tax effect of income or loss from continuing operations using a computation that does not consider the tax effects of items that are not included in continuing operations. As such, we did not record a tax expense or benefit in the first quarter of 2020. Refer to Note 2 for additional information. |
Sale of Aptevo BioTherapeutics
Sale of Aptevo BioTherapeutics | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Sale of Aptevo BioTherapeutics | Note 2. Sale of Aptevo BioTherapeutics On February 28, 2020, we entered into an LLC Purchase Agreement with Medexus, pursuant to which Aptevo sold all of the issued and outstanding limited liability company interests of Aptevo BioTherapeutics, a wholly owned subsidiary of Aptevo. As a result of the transaction, Medexus obtained all rights, title and interest to the IXINITY product and the related Hemophilia B business and intellectual property. From the $30 million payment at closing, Medexus withheld $0.9 million which was deposited with an escrow agent (i) to fund potential payment obligations of Aptevo with respect to the final post-closing adjustment and (ii) to fund potential post-closing indemnification obligations of Aptevo. In addition to the payment received at closing, Aptevo may also earn milestone and deferred payments from Medexus in the future. We used $22.1 million of the $30 million in proceeds to repay in full our term debt facility with MidCap Financial Trust, including $20 million of principal and $2.1 million in an end of facility fee, accrued interest, legal fees and prepayment fees. We recorded a $2.1 million loss on extinguishment of debt in the first quarter of 2020. The net gain on sale of Aptevo BioTherapeutics, totaling $14.3 million, was calculated as the difference between the fair value of the consideration received for Aptevo BioTherapeutics, less the net carrying value of the assets transferred to Medexus, less the transaction costs incurred and a working capital adjustment The following table summarizes the gain on sale (in thousands): Cash payment received $ 29,250 Escrow receivable 750 Total consideration 30,000 Less: Net carrying value of assets transferred to Medexus 13,376 Transaction costs 1,880 Minimum Transition Services Agreement ("TSA") fund 406 Net gain on sale of business $ 14,338 The purchase agreement included a target net working capital of $9.5 million compared to preliminary net working capital sold of $9.1 million. The difference between the target net working capital and the preliminary working capital is due to Medexus. The parties agreed to defer payment of this amount for a period of six months, during which time, the amount will be reduced by the cost of certain transition services performed by Aptevo during the transition service period, as agreed to by both parties (the “Minimum TSA Fund”). At March 31, 2020, the amount due to Medexus in the Minimum TSA Fund was $0.3 million, which we have included in other accrued liabilities in the accompanying balance sheet. The following table presents a reconciliation of the carrying amounts of assets and liabilities of Aptevo BioTherapeutics held for sale, net in the unaudited condensed consolidated balance sheet (in thousands): ASSETS December 31, 2019 Accounts receivable, net $ 7,022 Inventories 6,140 Prepaid expenses 3,147 Total current assets, held for sale 16,309 Intangible assets, net 4,420 VAT receivable and deposit 3,045 Total assets held for sale $ 23,774 LIABILITIES Accounts payable and other accrued liabilities $ 5,043 Royalties payable 2,018 Accrued payroll 654 Other current liabilities 420 Total current liabilities $ 8,135 The following table represents the components attributable to Aptevo BioTherapeutics presented as income (loss) from discontinued operations in the unaudited condensed consolidated statements of operations (in thousands): For the Three Months Ended March 31, 2020 2019 Loss from operations (1,580 ) (1) (277 ) Gain on sale of Aptevo BioTherapeutics 14,338 — Estimated deferred payment from Medexus 140 — Income (loss) from discontinued operations $ 12,898 $ (277 ) (1) We note that these amounts include operations of Aptevo BioTherapeutics through February 28, 2020. The LLC Purchase Agreement with Medexus entitles us to future deferred payments and royalties. We recorded an estimated deferred payment due from Medexus of $0.1 million due to activity in the first quarter of 2020. Amortization for Aptevo BioTherapeutics was $0.1 million and $0.2 million in March 31, 2020 and March 31, 2019, respectively. There was no depreciation, capital expenditures or other significant operating or investing non-cash items for the three months ended March 31, 2020 and 2019. |
Collaboration Agreements
Collaboration Agreements | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration Agreements | Note 3. Collaboration Agreements Alligator On July 20, 2017, our wholly owned subsidiary Aptevo Research and Development LLC (Aptevo R&D), entered into a collaboration and option agreement (Collaboration Agreement) with Alligator Bioscience AB (Alligator), pursuant to which Aptevo and Alligator will collaboratively develop ALG.APV-527, a lead bispecific antibody candidate simultaneously targeting 4-1BB (CD137), a member of the TNFR superfamily of a costimulatory receptor found on activated T-cells, and 5T4, a tumor antigen widely overexpressed in a number of different types of cancer. Alligator and Aptevo have made a joint decision to focus efforts on partnering ALG.APV-527 prior to phase 1 clinical development. The adjustment to the development plan for ALG.APV -527 will allow both Aptevo and Alligator to align their resources with their respective ongoing clinical programs. The companies are initiating discussions with potential partners for the upcoming clinical development of ALG.APV-527. We assessed the arrangement in accordance with ASC 606 and concluded that the contract counterparty, Alligator, is not a customer. As such the arrangement is not in the scope of ASC 606 and is instead treated as a collaborative agreement under ASC 808. ASU 2018-18, under ASC 808, clarifies the interactions between Topic 808 and 606. ASU 2018-18 is a targeted amendment to ASC 808 that requires that if the counterparty in a collaborative arrangement is a customer for goods and services that is a distinct unit, the transaction should be considered as revenues from customers. We concluded that because the Collaboration Agreement with Alligator is a cost sharing agreement, there is no revenue and therefore ASU 2018-18 is not applicable to the Collaboration Agreement with Alligator. For the three months ended March 31, 2020, we recorded an immaterial increase in research and development expense for the three months ended March 31, 2019, we recorded an increase in our research and development expense of less than $0.4 million related to the Collaboration Agreement. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, it gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows: Level 1— Quoted prices in active markets for identical assets and liabilities; Level 2— Inputs other than quoted prices in active markets that are either directly or indirectly observable; and 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. At March 31, 2020 and December 31, 2019, we had $9.5 million and $12.5 million in Level 1 money market funds, respectively. The carrying amounts of our money market funds approximate their fair value. At March 31, 2020 and December 31, 2019, we did not have any level two or level three assets. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 3 Months Ended |
Mar. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Note 5. Cash, Cash Equivalents, and Restricted Cash The Company’s cash equivalents are highly liquid investments with a maturity of 90 days or less at the date of purchase and include time deposits and investments in money market funds. Restricted cash, long-term includes $2.5 million securing letters of credit. As of March 31, 2020, we are no longer required to maintain a restricted cash balance of $5.0 million related to the minimum cash covenant included in the Credit and Security Agreement with MidCap Financial Trust, as the debt was repaid on February 28, 2020. The following table shows our cash, cash equivalents and long-term restricted cash as of March 31, 2020 and December 31, 2019: March 31, December 31, (in thousands) 2020 2019 Cash $ 2,717 $ 4,954 Cash equivalents 9,541 7,494 Restricted cash 2,529 7,498 Total cash, cash equivalents, and restricted cash $ 14,787 $ 19,946 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt On February 28, 2020, we repaid the entire amount outstanding under the Credit and Security Agreement with MidCap Financial Trust |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 7. Leases Office Space Lease - Operating We have an operating lease related to our office and laboratory space in Seattle, Washington. This lease was amended and extended in March 2019. The term of the amended lease is through April 2030 and we have two options to extend the lease term, each by five years, as well as a one-time option to terminate the lease in April 2023. The lease was further amended effective August 2019 to reduce the square footage of our rented area. We recorded a right-of-use asset for this lease on January 1, 2019, of $1.2 million which reflects the amount of the remaining lease liability, less the balance of accrued and deferred rent, and net of the unamortized balance of tenant incentives. We also recorded a lease liability of $1.9 million which reflects the present value of the remaining lease payments, discounted using our incremental borrowing rate of 16.95% for the remaining term of the lease. In March 2019, we recorded an increase to our right-of-use asset for this lease amendment of $3.2 million which reflects the amount of the remaining lease liability through April 30, 2023, less the balance of accrued and deferred rent, and net of the unamortized balance of tenant incentives. In March 2019, we also recorded an increase to our lease liability for this lease amendment of $3.2 million which reflects the present value of the remaining lease payments through April 30, 2023, discounted using our incremental borrowing rate of 14.45% for the remaining term of the lease on the date of amendment. For the three months ended March 31, 2020, we recorded $0.1 million related to variable expenses. Equipment Leases - Operating As of March 31, 2020, we have operating leases for one piece of lab equipment and four copiers in our Seattle, Washington headquarters. The future expense for these leases will be straight-line and will include any variable expenses that arise. Equipment Lease – Financing As of March 31, 2020, we had one equipment lease classified as a financing lease as the lease transfers ownership of the underlying asset to us at the end of the lease term. The remaining term of this lease is five months and has a remaining expense obligation of less than $0.1 million. There were no financing lease payments in the three months ended March 31, 2020. Components of lease expense: For the Three Months Ended March 31, For the Three Months Ended March 31, (in thousands) 2020 2019 Operating lease cost $ 395 $ 335 Finance lease cost: Amortization of right-of-use assets 2 1 Interest on lease liabilities — 1 Total lease cost $ 397 $ 337 Supplemental cash flows information related to leases is as follows: Right of use assets acquired under operating leases: As of March 31, As of December 31, (in thousands) 2020 2019 Operating leases, excluding Seattle office lease $ 404 $ 241 Seattle office lease, including amendment 3,291 3,506 Total operating leases $ 3,695 $ 3,747 The long-term portion of the lease liabilities included in the amounts above is $3.1 million and the remainder of our lease liabilities are included in other current liabilities on our condensed consolidated balance sheets. Lease payments: For the Three Months Ended March 31, For the Three Months Ended March 31, (in thousands) 2020 2019 For operating leases $ 418 $ 434 As of March 31, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 3.02 years and 14.55%. |
Reverse Stock Split
Reverse Stock Split | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders Equity [Abstract] | |
Reverse Stock Split | Note 8. Reverse Stock Split On March 11, 2020, we held a Special Meeting of Stockholders at which our stockholders approved a series of alternate amendments to the Amended and Restated Certificate of Incorporation to effect, at the option of our Board of Directors, a reverse split of the Aptevo’s common stock at a ratio ranging from 1-for-2 to 1-for-20, inclusive, with the effectiveness of one of such amendments and the abandonment of the other amendments, or the abandonment of all amendments, to be determined by the Board in its sole discretion following the Special Meeting. The specific 1-for-14 reverse split ratio was subsequently approved by the Board on March 23, 2020. On March 26, 2020, the Company filed a Certificate of Amendment of Amended and Restated Certificate of Incorporation (the “Amendment”) with the Secretary of State of the State of Delaware to effect a 1-for-14 reverse stock split of the Company’s outstanding common stock. No We have adjusted all common stock and stock equivalent figures retroactively in this Form 10-Q for all periods presented to reflect the reverse stock split. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Note 9. Net Income (Loss) per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common share equivalents outstanding for the period using the as-if converted method. For the purpose of this calculation, warrants, stock options and restricted stock units (RSUs) are only included in the calculation of diluted net income per share when their effect is dilutive. We utilize the control number concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is loss from continuing operations or income from discontinued operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Therefore, no dilutive effect has been recognized in the calculation of income from discontinued operations per share. Common stock equivalents include warrants, stock options and unvested RSUs. The following table presents the computation of basic and diluted net loss per share (in thousands, except share and per share amounts): For the Three Months Ended March 31, 2020 2019 Net loss from continuing operations $ (10,001 ) $ (11,741 ) Income (loss) from discontinued operations 12,898 (277 ) Net income (loss) $ 2,897 $ (12,018 ) Basic and diluted net income (loss) per share: Net loss from continuing operations $ (3.06 ) $ (7.46 ) Net income (loss) from discontinued operations $ 3.94 $ (0.18 ) Net income (loss) per basic share $ 0.89 $ (7.64 ) Weighted-average shares used to compute per share calculations 3,270,089 1,573,233 The following table represents all potentially dilutive shares, which were all anti-dilutive and therefore excluded from the calculation of diluted net loss per share: For the Three Months Ended March 31, (in thousands) 2020 2019 Warrants 1,571 1,571 Outstanding options to purchase common stock 389 293 Unvested RSUs 12 — |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Note 10. Equity C ommon Stock On March 11, 2019, we completed a public offering of common stock and warrants, as follows: • for a combined public offering price of $14.00 per share of common stock and related warrants, 1,417,857 shares of common stock and related warrants with a 5-year life to purchase up to 1,417,857 shares of common stock at an exercise price of $18.20 per share, • for a combined public offering price of $13.86 per pre-funded warrant and related warrant, pre-funded warrants with a 10-year life to purchase up to 153,571 shares of common stock at an exercise price of $0.14 per share and related warrants with a 5-year life to purchase up to 153,571 shares of common stock at an exercise price of $18.20 per share. These pre-funded warrants were exercised on March 21, 2019. We received net proceeds of $20.2 million, net of transaction costs, as a result of this offering. For the three months ended March 31, 2019, we issued 6,138 shares of common stock due to the vesting of RSUs. In addition, pursuant to our purchase agreement with Lincoln Park, we issued 13,991 of commitment shares in a non-cash transaction during the three months ended March 31, 2019. Equity Distribution Agreement On November 9, 2017, we entered into an Equity Distribution Agreement (the Equity Distribution Agreement) with Piper Sandler & Co. (Piper Sandler). The Equity Distribution Agreement provides that, upon the terms and subject to the conditions set forth therein, we may issue and sell through Piper Sandler, acting as sales agent, shares of our common stock, $0.001 par value per share having an aggregate offering price of up to $17.5 million. We have no obligation to sell any such shares under the Equity Distribution Agreement. The sale of such shares of common stock by Piper Sandler will be effected pursuant to a Registration Statement on Form S-3 which we filed on November 9, 2017. We issued no shares under the Equity Distribution Agreement in the first quarter of 2020. C onverted Equity Awards Incentive Plan In connection with the spin-off from Emergent BioSolutions, Inc. (Emergent) in August 2016, we adopted the Converted Equity Awards Incentive Plan (Converted Plan) and outstanding equity awards of Emergent held by Aptevo employees were converted into or replaced with equity awards of Aptevo (Conversion Awards) under the Converted Plan and were adjusted to maintain the economic value before and after the distribution date using the relative fair market value of the Emergent and Aptevo common stock based on the closing prices as of August 1, 2016. A total of 0.1 million shares of Aptevo common stock have been authorized for issuance under the Converted Plan. Options issued as Conversion Awards were priced according to the Converted Plan. RSUs issued as part of the Converted Plan provide for the issuance of a share of Aptevo’s stock at no cost to the holder. 2016 Stock Incentive Plan On August 1, 2016, the Company adopted the 2016 Stock Incentive Plan (2016 SIP). A total of 0.2 million shares of Aptevo common stock have been authorized for issuance under the 2016 SIP in the form of equity stock options. Stock options under the 2016 SIP generally vest pro rata over a three-year period and terminate ten years from the grant date, though the specific terms of each grant are determined individually. The Company’s executive officers and certain other employees may be awarded options with different vesting criteria, and options granted to non-employee directors also vest over a three-year period. Option exercise prices for new options granted by the Company equal the closing price of the Company’s common stock on the Nasdaq Capital Market on the date of grant. RSUs issued under the 2016 SIP provide for the issuance of a share of the Company’s common stock at no cost to the holder. RSUs granted to employees under the 2016 SIP generally provide for time-based vesting over a twelve-month to three-year period, although certain employees may be awarded RSUs with different time-based vesting criteria. Prior to vesting, RSUs granted under the 2016 SIP do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued or outstanding. The equity compensation awards granted by the Company generally vest only if the employee is employed by the Company (or in the case of directors, the director continues to serve on the Board) on the vesting date. On May 31, 2017, at the 2017 Annual Meeting of Stockholders (Annual Meeting), the Company’s stockholders approved the amendment and restatement of the Company’s 2016 SIP (Restated 2016 Plan) to, among other things, increase the number of authorized shares issuable by 0.1 million shares of Aptevo common stock. The Restated 2016 Plan was previously approved, subject to stockholder approval, by the Board of Directors of the Company. 2018 Stock Incentive Plan On June 1, 2018, at the 2018 Annual Meeting, the Company’s stockholders approved a new 2018 Stock Incentive Plan (2018 SIP), which replaced the Restated 2016 Plan on a go-forward basis. All stock options, RSUs or other equity awards granted subsequent to June 1, 2018 will be issued out of the 2018 SIP, which has 0.3 million shares of Aptevo common stock authorized for issuance. The 2018 Plan became effective immediately upon stockholder approval at the Annual Meeting. Any shares subject to outstanding stock awards granted under the 2016 SIP that (a) expire or terminate for any reason prior to exercise or settlement; (b) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company; or (c) otherwise would have returned to the 2016 SIP for future grant pursuant to the terms of the 2016 Plan (such shares, the “Returning Shares”) will immediately be added to the share reserve under the 2018 SIP as and when such shares become Returning Shares, up to a maximum of 0.3 million shares. The 2018 SIP was previously approved, subject to stockholder approval, by the Board of Directors of the Company. As of March 31, 2020, there are 0.1 million shares available to be granted under the 2018 SIP. Stock options under the 2018 SIP generally vest pro rata over a three-year period and terminate ten years from the grant date, though the specific terms of each grant are determined individually. The Company’s executive officers and certain other employees may be awarded options with different vesting criteria, and options granted to non-employee directors also vest over a three-year period. Option exercise prices for new options granted by the Company equal the closing price of the Company’s common stock on the Nasdaq Capital Market on the date of grant. Stock-Based Compensation Expense Stock-based compensation expense includes amortization of stock options and RSUs granted to employees and non-employees and has been reported in our Condensed Consolidated Statements of Operations as follows: For the Three Months Ended March 31, (in thousands) 2020 2019 Research and development $ 170 $ 251 General and administrative 243 343 Total stock-based compensation expense $ 413 $ 594 The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted based on the fair value of the award as of the grant date. The Company recognizes the compensation expense over the vesting period. Stock Options Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted: For the Three Months Ended March 31, 2020 2019 Expected dividend yield 0.00% 0.00% Expected volatility 83.64% 75.00% Risk-free interest rate 1.42% 2.52% Expected average life of options 5 years 7 years Management has applied an estimated forfeiture rate of 8% for the three months ended March 31, 2020 and 10% for the three months ended March 31, 2019. The following is a summary of option activity for the three months ended March 31, 2020: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Term Aggregate Intrinsic Value Balance at December 31, 2019 334,938 $ 29.89 7.28 $ — Granted 94,538 6.97 — — Forfeited (40,849 ) 21.24 — — Outstanding at March 31, 2020 388,627 $ 25.77 7.32 $ — Exercisable at March 31, 2020 191,446 $ 36.05 5.27 $ — As of March 31, 2020, we had $1.6 million of unrecognized compensation expense related to options expected to vest over a weighted average period of 1.6 years. The weighted average remaining contractual life of outstanding and exercisable options is 5.3 years. The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing stock price of Aptevo’s common stock on the last trading day of March 2020 and the exercise price, multiplied by the number of in the money options) that would have been received by the option holders had all the option holders exercised their options on the last trading day of the quarter. As the exercise price for all outstanding options as of March 31, 2020 exceeded the closing stock price of Aptevo’s common stock on that date, the aggregate intrinsic value is zero. Restricted Stock Units The following is a summary of RSU activity for the three months ended March 31, 2020: Number of Units Weighted Average Fair Value per Unit Aggregate Fair Value Balance at December 31, 2019 17,458 $ 8.06 $ — Forfeited (5,103 ) 8.06 — Outstanding at March 31, 2020 12,355 $ 8.06 $ 61,655 Expected to Vest 12,355 $ 8.06 $ 61,655 As of March 31, 2020, there was $0.06 million unrecognized stock-based compensation expense related to unvested RSUs. The fair value of each RSU has been determined to be the closing trading price of the Company’s common stock on the date of grant as quoted on the Nasdaq Capital Market. Warrants In March 2019, as part of a public offering, we issued warrants to purchase up to 1,725,000 shares of our common stock, 1,571,429 of which have an exercise price of $18.20 per share and have a five-year life, and 153,571 of pre-funded warrants with an exercise price of $0.14 per share. The pre-funded warrants have a ten-year life and would have expired on March 11, 2029; however, the pre-funded warrants were exercised in March 2019. We determined the warrants do not meet liability classification pursuant to ASC 480 – Distinguishing Liabilities from Equity. These are therefore included within equity on our consolidated balance sheet. As of March 31, 2020, there were warrants to purchase 1,571,429 shares of common stock outstanding. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, useful lives of equipment, commitments and contingencies, stock-based compensation forfeiture rates, and collectability of receivables. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates are becoming more challenging, and actual results could differ materially from those estimates. |
Other Significant Accounting Policies | Other Significant Accounting Policies Our significant accounting policies were reported in our Annual Report on Form 10-K for the year ended December 31, 2019 that was filed with the SEC on March 25, 2020. Our significant accounting policies have not changed materially from the policies previously reported. |
Recently Adopted Standards | Recently Adopted Standards On December 18, 2019 we adopted ASU No. 2019-12, Income Taxes (Topic 740), which amended the existing standards for income tax accounting, eliminating the legacy exception on how to allocate income tax expense or benefit for the year to continuing operations, discontinued operations, other comprehensive income, and other charges or credits recorded directly to shareholder’s equity. We did not adjust comparative periods in our financial statements prior to that period. Adoption of the new standard resulted in determining the tax effect of income or loss from continuing operations using a computation that does not consider the tax effects of items that are not included in continuing operations. As such, we did not record a tax expense or benefit in the first quarter of 2020. Refer to Note 2 for additional information. |
Sale of Aptevo BioTherapeutics
Sale of Aptevo BioTherapeutics (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Gain of Sale of Business | The following table summarizes the gain on sale (in thousands): Cash payment received $ 29,250 Escrow receivable 750 Total consideration 30,000 Less: Net carrying value of assets transferred to Medexus 13,376 Transaction costs 1,880 Minimum Transition Services Agreement ("TSA") fund 406 Net gain on sale of business $ 14,338 |
Summary of Reconciliation of Carrying Amounts of Assets and Liabilities and Income (Loss) from Discontinued Operation | The following table presents a reconciliation of the carrying amounts of assets and liabilities of Aptevo BioTherapeutics held for sale, net in the unaudited condensed consolidated balance sheet (in thousands): ASSETS December 31, 2019 Accounts receivable, net $ 7,022 Inventories 6,140 Prepaid expenses 3,147 Total current assets, held for sale 16,309 Intangible assets, net 4,420 VAT receivable and deposit 3,045 Total assets held for sale $ 23,774 LIABILITIES Accounts payable and other accrued liabilities $ 5,043 Royalties payable 2,018 Accrued payroll 654 Other current liabilities 420 Total current liabilities $ 8,135 The following table represents the components attributable to Aptevo BioTherapeutics presented as income (loss) from discontinued operations in the unaudited condensed consolidated statements of operations (in thousands): For the Three Months Ended March 31, 2020 2019 Loss from operations (1,580 ) (1) (277 ) Gain on sale of Aptevo BioTherapeutics 14,338 — Estimated deferred payment from Medexus 140 — Income (loss) from discontinued operations $ 12,898 $ (277 ) |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Long-term Restricted Cash | The following table shows our cash, cash equivalents and long-term restricted cash as of March 31, 2020 and December 31, 2019: March 31, December 31, (in thousands) 2020 2019 Cash $ 2,717 $ 4,954 Cash equivalents 9,541 7,494 Restricted cash 2,529 7,498 Total cash, cash equivalents, and restricted cash $ 14,787 $ 19,946 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | Components of lease expense: For the Three Months Ended March 31, For the Three Months Ended March 31, (in thousands) 2020 2019 Operating lease cost $ 395 $ 335 Finance lease cost: Amortization of right-of-use assets 2 1 Interest on lease liabilities — 1 Total lease cost $ 397 $ 337 |
Summary of Right of Use Assets Acquired Under Operating Leases | Right of use assets acquired under operating leases: As of March 31, As of December 31, (in thousands) 2020 2019 Operating leases, excluding Seattle office lease $ 404 $ 241 Seattle office lease, including amendment 3,291 3,506 Total operating leases $ 3,695 $ 3,747 Lease payments: For the Three Months Ended March 31, For the Three Months Ended March 31, (in thousands) 2020 2019 For operating leases $ 418 $ 434 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | The following table presents the computation of basic and diluted net loss per share (in thousands, except share and per share amounts): For the Three Months Ended March 31, 2020 2019 Net loss from continuing operations $ (10,001 ) $ (11,741 ) Income (loss) from discontinued operations 12,898 (277 ) Net income (loss) $ 2,897 $ (12,018 ) Basic and diluted net income (loss) per share: Net loss from continuing operations $ (3.06 ) $ (7.46 ) Net income (loss) from discontinued operations $ 3.94 $ (0.18 ) Net income (loss) per basic share $ 0.89 $ (7.64 ) Weighted-average shares used to compute per share calculations 3,270,089 1,573,233 |
Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share | The following table represents all potentially dilutive shares, which were all anti-dilutive and therefore excluded from the calculation of diluted net loss per share: For the Three Months Ended March 31, (in thousands) 2020 2019 Warrants 1,571 1,571 Outstanding options to purchase common stock 389 293 Unvested RSUs 12 — |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted | Stock-based compensation expense includes amortization of stock options and RSUs granted to employees and non-employees and has been reported in our Condensed Consolidated Statements of Operations as follows: For the Three Months Ended March 31, (in thousands) 2020 2019 Research and development $ 170 $ 251 General and administrative 243 343 Total stock-based compensation expense $ 413 $ 594 |
Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model | Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted: For the Three Months Ended March 31, 2020 2019 Expected dividend yield 0.00% 0.00% Expected volatility 83.64% 75.00% Risk-free interest rate 1.42% 2.52% Expected average life of options 5 years 7 years |
Summary of Stock Option Activity | The following is a summary of option activity for the three months ended March 31, 2020: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Term Aggregate Intrinsic Value Balance at December 31, 2019 334,938 $ 29.89 7.28 $ — Granted 94,538 6.97 — — Forfeited (40,849 ) 21.24 — — Outstanding at March 31, 2020 388,627 $ 25.77 7.32 $ — Exercisable at March 31, 2020 191,446 $ 36.05 5.27 $ — |
Summary of RSU Activity | The following is a summary of RSU activity for the three months ended March 31, 2020: Number of Units Weighted Average Fair Value per Unit Aggregate Fair Value Balance at December 31, 2019 17,458 $ 8.06 $ — Forfeited (5,103 ) 8.06 — Outstanding at March 31, 2020 12,355 $ 8.06 $ 61,655 Expected to Vest 12,355 $ 8.06 $ 61,655 |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies - Additional Information (Details) $ in Thousands | Mar. 26, 2020 | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($)Productshares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |||||
Number of revenue-generating product | Product | 1 | ||||
Net loss for the period | $ 2,897 | $ (12,018) | |||
Accumulated deficit | $ (164,959) | (164,959) | $ (167,856) | ||
Net cash used in operating activities | $ 11,175 | $ 13,844 | |||
Reverse stock split description | we effected a 1-for-14 reverse stock split (the “Reverse Split”) of our common stock pursuant to which every 14 shares of our common stock issued and outstanding as of March 26, 2020 were automatically combined into one issued and outstanding share of common stock. No fractional shares were issued as a result of the reverse stock split. | a reverse split of the Aptevo’s common stock at a ratio ranging from 1-for-2 to 1-for-20, inclusive, with the effectiveness of one of such amendments and the abandonment of the other amendments, or the abandonment of all amendments, to be determined by the Board in its sole discretion following the Special Meeting. The specific 1-for-14 reverse split ratio was subsequently approved by the Board on March 23, 2020. On March 26, 2020, the Company filed a Certificate of Amendment of Amended and Restated Certificate of Incorporation (the “Amendment”) with the Secretary of State of the State of Delaware to effect a 1-for-14 reverse stock split of the Company’s outstanding common stock. | |||
Stock split, conversion ratio | 0.071 | ||||
Fractional shares reverse stock split | shares | 0 |
Sale of Aptevo BioTherapeutic_2
Sale of Aptevo BioTherapeutics - Additional Information (Details) - USD ($) $ in Thousands | Feb. 28, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Cash received from sale of Aptevo BioTherapeutics | $ 30,000 | $ 28,120 | |
Escrow receivable | 750 | ||
Loss on extinguishment of debt | 2,104 | ||
Net gain on sale of business | 14,338 | 14,338 | |
Purchase of working capital | 9,500 | ||
Net working capital sold | 9,100 | ||
Amortization | 100 | $ 200 | |
Depreciation | 0 | 0 | |
Capital expenditure | 0 | 0 | |
Other operating and investing non cash item | 0 | $ 0 | |
Medexus Pharmaceuticals | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Working capital is due | 300 | ||
Estimated Deferred Payment From Medexus | 100 | ||
MidCap Financial | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Principal payment of full term debt facility | 20,000 | ||
Facility Fee | 2,100 | ||
Loss on extinguishment of debt | $ 2,100 | ||
IXINITY | Medexus Pharmaceuticals | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Cash received from sale of Aptevo BioTherapeutics | 30,000 | ||
Escrow receivable | 900 | ||
Repayment of full term debt facility | $ 22,100 |
Sale of Aptevo BioTherapeutic_3
Sale of Aptevo BioTherapeutics - Gain of Sale of Business (Details) - USD ($) $ in Thousands | Feb. 28, 2020 | Mar. 31, 2020 |
Discontinued Operations And Disposal Groups [Abstract] | ||
Cash payment received | $ 29,250 | |
Escrow receivable | 750 | |
Cash received from sale of Aptevo BioTherapeutics | 30,000 | $ 28,120 |
Net carrying value of assets transferred to Medexus | 13,376 | |
Transaction costs | 1,880 | |
Minimum Transition Services Agreement ("TSA") fund | 406 | |
Net gain on sale of business | $ 14,338 | $ 14,338 |
Sale of Aptevo BioTherapeutic_4
Sale of Aptevo BioTherapeutics - Summary of Reconciliation of Carrying Amounts of Assets and Liabilities and Income (Loss) from Discontinued Operation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Accounts receivable, net | $ 7,022 | ||
Inventories | 6,140 | ||
Prepaid expenses | 3,147 | ||
Total current assets, held for sale | 16,309 | ||
Intangible assets, net | 4,420 | ||
VAT receivable and deposit | 3,045 | ||
Total assets held for sale | 23,774 | ||
Accounts payable and other accrued liabilities | 5,043 | ||
Royalties payable | 2,018 | ||
Accrued payroll | 654 | ||
Other current liabilities | 420 | ||
Total current liabilities | $ 8,135 | ||
Loss from operations | $ (1,580) | $ (277) | |
Gain on sale of Aptevo BioTherapeutics | 14,338 | ||
Estimated deferred payment from Medexus | 140 | ||
Income (loss) from discontinued operations | $ 12,898 | $ (277) |
Collaboration Agreements - Addi
Collaboration Agreements - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Maximum | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Reduction in research and development expense | $ 400,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | $ 9,500,000 | $ 12,500,000 |
Level Two | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets | 0 | 0 |
Level Three | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets | $ 0 | $ 0 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Long-term restricted cash | $ 2,529 | $ 7,498 |
Maximum | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Cash equivalents, maturity period | 90 days | |
Letter of Credit | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Long-term restricted cash | $ 2,500 | |
Covenant of MidCap Loan Agreement | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Long-term restricted cash | $ 5,000 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash - Schedule of Cash, Cash Equivalents and Long-term Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash And Cash Equivalents [Abstract] | ||
Cash | $ 2,717 | $ 4,954 |
Cash equivalents | 9,541 | 7,494 |
Restricted cash | 2,529 | 7,498 |
Total cash, cash equivalents, and restricted cash | $ 14,787 | $ 19,946 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Feb. 28, 2020 | Mar. 31, 2020 |
Line Of Credit Facility [Line Items] | ||
Unamortized loan initiation fees | $ 0.1 | |
Loss on debt extinguishment | $ 2.1 | |
MidCap Financial | ||
Line Of Credit Facility [Line Items] | ||
Principal payment of full term debt facility | $ 20 | |
Facility Fee | $ 2.1 |
Leases - Additional Information
Leases - Additional Information (Details) | Mar. 19, 2019USD ($)RenewalOption | Mar. 31, 2020USD ($)PieceCopierEquipment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) |
Lessee Lease Description [Line Items] | |||||
Operating lease right-of-use asset | $ 3,504,000 | $ 3,747,000 | |||
Operating lease number of piece for lab equipment | Piece | 1 | ||||
Operating lease number of copiers | Copier | 4 | ||||
Financing lease number of equipment | Equipment | 1 | ||||
Financing lease remaining term | 5 months | ||||
Financing lease remaining expense obligation | $ 1,000 | ||||
Financing lease payments | $ 0 | ||||
Long term portion of operating lease liabilities | $ 3,099,000 | $ 3,327,000 | |||
Weighted average remaining lease term for operating leases | 3 years 7 days | ||||
Weighted discount rate for operating leases | 14.55% | ||||
Minimum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Financing lease remaining expense obligation | $ 100,000 | ||||
Office Space Lease | |||||
Lessee Lease Description [Line Items] | |||||
Initial operating lease term date | 2030-04 | ||||
Operating lease renewal option description | The term of the amended lease is through April 2030 and we have two options to extend the lease term, each by five years, as well as a one-time option to terminate the lease in April 2023. | ||||
Operating lease renewal option term | 5 years | ||||
Number of operating lease renewal option | RenewalOption | 2 | ||||
Operating lease option to extend | true | ||||
Operating lease right-of-use asset | $ 1,200,000 | ||||
Operating lease liability | $ 1,900,000 | ||||
Operating lease, discounted incremental borrowing rate | 14.45% | 16.95% | |||
Variable expense | $ 100,000 | ||||
Office Space Lease | Maximum | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease right-of-use asset | $ 3,200,000 | ||||
Operating lease liability | $ 3,200,000 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 395 | $ 335 |
Finance lease cost: | ||
Amortization of right-of-use assets | 2 | 1 |
Interest on lease liabilities | 1 | |
Total lease cost | $ 397 | $ 337 |
Leases - Summary of Right of Us
Leases - Summary of Right of Use Assets Acquired Under Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | |||
Total operating leases | $ 3,695 | $ 3,747 | |
For operating leases | 418 | $ 434 | |
Operating Leases, Excluding Seattle Office Lease | |||
Lessee Lease Description [Line Items] | |||
Total operating leases | 404 | 241 | |
Seattle Office Lease, Including Amendment | |||
Lessee Lease Description [Line Items] | |||
Total operating leases | $ 3,291 | $ 3,506 |
Reverse Stock Split - Additiona
Reverse Stock Split - Additional Information (Details) | Mar. 26, 2020 | Mar. 11, 2020 | Mar. 31, 2020 | Mar. 31, 2020shares |
Class Of Stock [Line Items] | ||||
Reverse stock split description | we effected a 1-for-14 reverse stock split (the “Reverse Split”) of our common stock pursuant to which every 14 shares of our common stock issued and outstanding as of March 26, 2020 were automatically combined into one issued and outstanding share of common stock. No fractional shares were issued as a result of the reverse stock split. | a reverse split of the Aptevo’s common stock at a ratio ranging from 1-for-2 to 1-for-20, inclusive, with the effectiveness of one of such amendments and the abandonment of the other amendments, or the abandonment of all amendments, to be determined by the Board in its sole discretion following the Special Meeting. The specific 1-for-14 reverse split ratio was subsequently approved by the Board on March 23, 2020. On March 26, 2020, the Company filed a Certificate of Amendment of Amended and Restated Certificate of Incorporation (the “Amendment”) with the Secretary of State of the State of Delaware to effect a 1-for-14 reverse stock split of the Company’s outstanding common stock. | ||
Stock split, conversion ratio | 0.071 | |||
Fractional shares reverse stock split | 0 | |||
Minimum [Member] | ||||
Class Of Stock [Line Items] | ||||
Stock split range | 1-for-2 | |||
Maximum | ||||
Class Of Stock [Line Items] | ||||
Stock split range | 1-for-20 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss from continuing operations | $ (10,001) | $ (11,741) |
Income (loss) from discontinued operations | 12,898 | (277) |
Net income (loss) | $ 2,897 | $ (12,018) |
Basic and diluted net income (loss) per share: | ||
Net loss from continuing operations | $ (3.06) | $ (7.46) |
Net income (loss) from discontinued operations | 3.94 | (0.18) |
Net income (loss) per basic share | $ 0.89 | $ (7.64) |
Weighted-average shares used to compute per share calculations | 3,270,089 | 1,573,233 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Warrants | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Anti-dilutive shares excluded from calculation of diluted net loss per share | 1,571 | 1,571 |
Outstanding Options to Purchase Common Stock | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Anti-dilutive shares excluded from calculation of diluted net loss per share | 389 | 293 |
Unvested RSUs | ||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Anti-dilutive shares excluded from calculation of diluted net loss per share | 12 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | Mar. 11, 2019 | Jun. 01, 2018 | Nov. 09, 2017 | Aug. 01, 2016 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | May 31, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Pre funded warrants outstanding, term | 10 years | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||
Pre funded warrants expire date | Mar. 31, 2029 | ||||||||
Stock Option | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Estimated forfeiture rate | 8.00% | 10.00% | |||||||
Unrecognized compensation expense | $ 1,600,000 | ||||||||
Options expected to vest, weighted average period | 1 year 7 months 6 days | ||||||||
Options outstanding and exercisable weighted average remaining contractual life | 5 years 3 months 18 days | ||||||||
2016 Stock Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock authorized for issuance under Stock Plan | 200,000 | ||||||||
Stock plan vesting period | 3 years | ||||||||
Stock plan termination period | 10 years | ||||||||
2016 Stock Incentive Plan | Unvested RSUs | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Increase of authorized shares issuable | 100,000 | ||||||||
2016 Stock Incentive Plan | Non-employee Directors | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock plan vesting period | 3 years | ||||||||
2018 Stock Incentive Plan | Unvested RSUs | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock authorized for issuance under Stock Plan | 300,000 | ||||||||
Stock plan vesting period | 3 years | ||||||||
Stock plan termination period | 10 years | ||||||||
Maximum number of returning shares from old plan to be add to shares reserve | 0.3 | ||||||||
Number of shares available for grant | 100,000 | ||||||||
2018 Stock Incentive Plan | Non-employee Directors | Unvested RSUs | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock plan vesting period | 3 years | ||||||||
Equity Distribution Agreement | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Common stock, par value | $ 0.001 | ||||||||
Issuance of common stock shares | 0 | ||||||||
Tranche Two | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of common stock to be issued exercise of prefunded warrants | 153,571 | ||||||||
Pre funded warrants exercise price, per share | $ 0.14 | ||||||||
Common Stock | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares issued price per share | $ 14 | ||||||||
Number of warrants issued | 1,417,857 | ||||||||
Warrants outstanding, term | 5 years | ||||||||
Warrants exercise price, per share | $ 18.20 | ||||||||
Pre funded warrant issued price, per share | $ 13.86 | ||||||||
Pre funded warrants outstanding, term | 10 years | ||||||||
Pre funded warrants exercise price, per share | $ 0.14 | ||||||||
Proceeds from issuance of warrants | $ 20,200,000 | ||||||||
Common stock issued upon vesting of restricted stock units (in shares) | 6,138 | ||||||||
Issuance of commitment shares of common stock, non-cash transaction (in shares) | 13,991 | ||||||||
Common Stock | Converted Equity Awards Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock authorized for issuance under Stock Plan | 100,000 | ||||||||
Common Stock | Tranche One | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Warrants outstanding, term | 5 years | ||||||||
Warrants exercise price, per share | $ 18.20 | ||||||||
Warrants | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Warrants outstanding, term | 5 years | 5 years | |||||||
Warrants outstanding | 1,571,429 | ||||||||
Warrants | Tranche One | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of warrants issued | 1,571,429 | ||||||||
Warrants exercise price, per share | $ 18.20 | $ 18.20 | |||||||
Minimum | 2016 Stock Incentive Plan | Unvested RSUs | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock plan vesting period | 12 months | ||||||||
Maximum | Unvested RSUs | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Unrecognized compensation expense | $ 60,000 | ||||||||
Maximum | 2016 Stock Incentive Plan | Unvested RSUs | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock plan vesting period | 3 years | ||||||||
Maximum | Common Stock | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of common stock to be issued up conversion of warrants | 1,417,857 | ||||||||
Number of common stock to be issued exercise of prefunded warrants | 153,571 | ||||||||
Maximum | Common Stock | Equity Distribution Agreement | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Aggregate offering price | $ 17,500,000 | ||||||||
Maximum | Common Stock | Tranche One | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of common stock to be issued up conversion of warrants | 153,571 | ||||||||
Maximum | Warrants | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of common stock to be issued up conversion of warrants | 1,725,000 | 1,725,000 |
Equity - Summary of Stock-based
Equity - Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 413 | $ 594 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 170 | 251 |
General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 243 | $ 343 |
Equity - Assumptions used in Va
Equity - Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model (Details) - Stock Option | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 83.64% | 75.00% |
Risk-free interest rate | 1.42% | 2.52% |
Expected average life of options | 5 years | 7 years |
Equity - Summary of Stock Optio
Equity - Summary of Stock Option Activity (Details) - Stock Option - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning balance | 334,938 | |
Number of Shares, Granted | 94,538 | |
Number of Shares, Forfeited | (40,849) | |
Number of Shares, Outstanding, Ending balance | 388,627 | 334,938 |
Number of Shares, Exercisable | 191,446 | |
Weighted-Average Exercise Price, Outstanding, Beginning balance | $ 29.89 | |
Weighted-Average Exercise Price, Granted | 6.97 | |
Weighted-Average Exercise Price, Forfeited | 21.24 | |
Weighted-Average Exercise Price, Outstanding, Ending balance | 25.77 | $ 29.89 |
Weighted-Average Exercise Price, Exercisable | $ 36.05 | |
Weighted-Average Remaining Term, Outstanding | 7 years 3 months 25 days | 7 years 3 months 10 days |
Weighted-Average Remaining Term, Exercisable | 5 years 3 months 7 days |
Equity - Summary of Restricted
Equity - Summary of Restricted Stock Activity (Details) - Unvested RSUs | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Units, Outstanding, Beginning balance | shares | 17,458 |
Number of Units, Forfeited | shares | (5,103) |
Number of Units, Outstanding, Ending balance | shares | 12,355 |
Number of Units, Expected to Vest | shares | 12,355 |
Weighted Average Fair Value per Unit, Outstanding Beginning Balance | $ / shares | $ 8.06 |
Weighted Average Fair Value per Unit, Forfeited | $ / shares | 8.06 |
Weighted Average Fair Value per Unit, Outstanding Ending Balance | $ / shares | 8.06 |
Weighted Average Fair Value per Unit, Expected to Vest | $ / shares | $ 8.06 |
Aggregate Fair Value, Outstanding, Ending balance | $ | $ 61,655 |
Aggregate Fair Value, Expected to Vest | $ | $ 61,655 |