Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Jun. 13, 2019 | Sep. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UROV | ||
Entity Registrant Name | Urovant Sciences Ltd. | ||
Entity Central Index Key | 0001740547 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 91,431,000 | ||
Entity Common Stock, Shares Outstanding | 30,330,432 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 85,353 | $ 7,194 |
Restricted cash | 243 | |
Prepaid expenses and other current assets | 12,914 | 5,196 |
Total current assets | 98,510 | 12,390 |
Furniture and equipment, net | 923 | 510 |
Restricted cash, net of current portion | 600 | |
Other assets | 88 | 84 |
Total assets | 100,121 | 12,984 |
Current liabilities: | ||
Accounts payable | 1,925 | 833 |
Accrued expenses | 9,877 | 3,595 |
Due to Roivant Sciences Ltd. | 15 | 1,482 |
Total current liabilities | 11,817 | 5,910 |
Long-term debt | 13,534 | |
Total liabilities | 25,351 | 5,910 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity | ||
Common shares, par value $0.000037453 per share, 267,001,308 shares authorized, 30,322,911 and 20,025,098 issued and outstanding at March 31, 2019 and 2018, respectively | 1 | 1 |
Common shares subscribed | (1) | (1) |
Shareholder receivable | (1,310) | |
Accumulated other comprehensive income | 269 | 7 |
Additional paid-in capital | 250,032 | 72,562 |
Accumulated deficit | (175,531) | (64,185) |
Total shareholders' equity | 74,770 | 7,074 |
Total liabilities and shareholders' equity | $ 100,121 | $ 12,984 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Sep. 11, 2018 | Mar. 31, 2018 |
Statement Of Financial Position [Abstract] | |||
Common shares, par value | $ 0.000037453 | $ 0.000037453 | $ 0.000037453 |
Common shares, authorized | 267,001,308 | 267,001,308 | |
Common shares, issued | 30,322,911 | 20,025,098 | |
Common shares, outstanding | 30,322,911 | 20,025,098 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Operating expenses: | |||
Research and development | [1] | $ 92,198 | $ 32,359 |
General and administrative | [2] | 18,585 | 4,640 |
Total operating expenses | 110,783 | 36,999 | |
Other income (expense): | |||
Interest expense, net | (259) | ||
Other expense | (257) | (38) | |
Loss before provision for income taxes | (111,299) | (37,037) | |
Provision for income taxes | 47 | 37 | |
Net loss | $ (111,346) | $ (37,074) | |
Net loss per common share—basic and diluted | $ (4.43) | $ (2.16) | |
Weighted average common shares outstanding—basic and diluted | 25,145,211 | 17,124,659 | |
[1] | Includes $2,251 and $7,713 of costs allocated from Roivant Sciences Ltd. during the years ended March 31, 2019 and 2018, respectively. Also includes share-based compensation expense (see Note 9). | ||
[2] | Includes $1,692 and $1,377 of costs allocated from Roivant Sciences Ltd. during the years ended March 31, 2019 and 2018, respectively. Also includes share-based compensation expense (see Note 9). |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - Roivant Sciences Ltd. - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Research and Development | ||
Costs allocated from related party | $ 2,251 | $ 7,713 |
General and Administrative | ||
Costs allocated from related party | $ 1,692 | $ 1,377 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (111,346) | $ (37,074) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 262 | 32 |
Total other comprehensive income | 262 | 32 |
Comprehensive loss | $ (111,084) | $ (37,042) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholder's Equity (Deficit) - USD ($) $ in Thousands | Total | Initial Public Offering | Common Shares | Common SharesRoivant Sciences Ltd. | Common SharesInitial Public Offering | Common Shares Subscribed | Common Shares SubscribedRoivant Sciences Ltd. | Shareholder Receivable | Additional Paid-in Capital | Additional Paid-in CapitalInitial Public Offering | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Mar. 31, 2017 | $ 3,910 | $ 31,046 | $ (27,111) | $ (25) | ||||||||
Beginning balance (in shares) at Mar. 31, 2017 | 2,670,013 | |||||||||||
Capital contributions | 37,035 | $ (1,310) | 38,345 | |||||||||
Issuance of common shares, value | $ 1 | $ (1) | ||||||||||
Issuance of common shares, shares | 17,355,085 | |||||||||||
Share-based compensation expense | 416 | 416 | ||||||||||
Capital contribution - share-based compensation expense | 2,755 | 2,755 | ||||||||||
Foreign currency translation adjustment | 32 | 32 | ||||||||||
Net loss | (37,074) | (37,074) | ||||||||||
Ending balance at Mar. 31, 2018 | $ 7,074 | $ 1 | $ (1) | (1,310) | 72,562 | (64,185) | 7 | |||||
Ending balance (in shares) at Mar. 31, 2018 | 20,025,098 | 20,025,098 | ||||||||||
Capital contributions | $ 41,631 | $ 1,310 | 40,321 | |||||||||
Issuance of common shares, value | $ 132,931 | $ 132,931 | ||||||||||
Issuance of common shares, shares | 10,297,813 | |||||||||||
Share-based compensation expense | 3,398 | 3,398 | ||||||||||
Capital contribution - share-based compensation expense | 580 | 580 | ||||||||||
Warrants issued with long-term debt | 240 | 240 | ||||||||||
Foreign currency translation adjustment | 262 | 262 | ||||||||||
Net loss | (111,346) | (111,346) | ||||||||||
Ending balance at Mar. 31, 2019 | $ 74,770 | $ 1 | $ (1) | $ 250,032 | $ (175,531) | $ 269 | ||||||
Ending balance (in shares) at Mar. 31, 2019 | 30,322,911 | 30,322,911 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholder's Equity (Deficit) (Parenthetical) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Initial Public Offering | |
Commissions and offering costs for issuance of common shares | $ 11.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (111,346) | $ (37,074) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 180 | 12 |
Share-based compensation expense | 3,978 | 3,171 |
Amortization of debt discount and issuance costs | 92 | |
Unrealized foreign currency translation adjustment | 262 | 32 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (7,462) | (5,187) |
Other assets | (4) | (84) |
Due to Roivant Sciences Ltd. | (1,467) | 640 |
Accounts payable | 1,092 | 817 |
Accrued expenses | 5,639 | 3,587 |
Net cash used in operating activities | (109,036) | (34,086) |
Cash flows from investing activities: | ||
Purchases of furniture and equipment | (593) | (522) |
Net cash used in investing activities | (593) | (522) |
Cash flows from financing activities: | ||
Proceeds from capital contributions from Roivant Sciences Ltd. | 41,631 | 37,035 |
Proceeds from issuance of common shares in initial public offering, net of offering costs | 132,931 | |
Cash proceeds from debt financing, net of financing costs | 14,069 | |
Net cash provided by financing activities | 188,631 | 37,035 |
Net change in cash, cash equivalents and restricted cash | 79,002 | 2,427 |
Cash, cash equivalents and restricted cash—beginning of year | 7,194 | 4,767 |
Cash, cash equivalents and restricted cash—end of year | 86,196 | 7,194 |
Non-cash financing activities: | ||
Shareholder receivable for the sale of intellectual property rights in China recorded as a deemed capital contribution (see Note 6[B]) | 1,310 | |
Warrants issued with long-term debt | 240 | |
Deferred financing costs included in accounts payable and accrued expenses | 387 | |
Supplemental disclosure of cash paid: | ||
Income taxes | 178 | $ 20 |
Interest | $ 169 |
Description of Business and Liq
Description of Business and Liquidity | 12 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Liquidity | Note 1—Description of business and liquidity [A] Description of business: Urovant Sciences Ltd. and its subsidiaries (collectively, the “Company”) is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapies for urologic conditions. The Company’s lead product candidate, vibegron, is an oral, once-daily, small molecule beta-3 agonist. The Company is currently developing vibegron for the treatment of overactive bladder, or OAB. The Company is also developing vibegron for the treatment of two additional potential indications: OAB in men with benign prostatic hyperplasia and abdominal pain due to irritable bowel syndrome. The Company’s second product candidate, URO-902 (formerly known as hMaxi-K), is a novel gene therapy that the Company is developing for patients with OAB who have failed oral pharmacological therapy. There are no currently available FDA-approved gene therapy treatments for OAB. The Company was founded on January 27, 2016 as a Bermuda Exempted Limited Company and a wholly owned subsidiary of Roivant Sciences Ltd. In November 2016, the Company incorporated as its wholly owned subsidiaries (1) Urovant Holdings Ltd. (“UHL”), a private limited company incorporated under the laws of England and Wales, (2) Urovant Sciences GmbH (“USG”), a company with limited liability formed under the laws of Switzerland, (3) Urovant Sciences, Inc. (“USI”), a Delaware corporation based in the United States of America, and in March 2019 incorporated as its wholly owned subsidiaries (4) Urovant Treasury Holding, Inc. (“UTH”), a Delaware corporation based in the United States of America, and (5) Urovant Sciences Treasury, Inc. (“UST”), a Delaware corporation based in the United States of America. Since its inception, the Company has devoted substantially all of its efforts to organizing and staffing the Company, acquiring its product candidates, vibegron and URO-902, and preparing for and advancing vibegron into clinical development. Vibegron was licensed from Merck Sharp & Dohme Corp. (“Merck”), a subsidiary of Merck & Co., in February 2017. URO-902 was licensed from Ion Channel Innovations, LLC (“ICI”) in August 2018. The Company has determined that it has one operating and reporting segment as it allocates resources and assesses financial performance on a consolidated basis. [B] Liquidity: The Company has not historically been capitalized with sufficient funding to conduct its operations. Certain other costs of conducting the Company’s operations prior to the Company’s initial public offering, which was completed in October 2018, were paid by Roivant Sciences Ltd., inclusive of its wholly owned subsidiaries (“RSL”), and were reimbursed by the Company including amounts pursuant to services agreements with Roivant Sciences, Inc. (“RSI”) and Roivant Sciences GmbH (“RSG”). The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. he Company has not generated any revenues and does not anticipate generating any revenues unless and until it successfully completes development and obtains regulatory approval for one of its product candidates. he Company will seek to obtain additional capital through equity financings, the sale of debt or other arrangements. However, there can be no assurance that the Company will be able to raise additional capital when needed or under acceptable terms, if at all. The sale of additional equity may dilute existing shareholders and newly issued shares may contain senior rights and preferences compared to currently outstanding common shares. The Company’s agreement with Hercules Capital, Inc. involves, and any agreements for future debt or preferred equity financings, if available, may involve covenants limiting or restricting the Company’s ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If the Company is unable to obtain such additional financing, operations would need to be scaled back or discontinued. The Company’s future operations are highly dependent on a combination of factors, including (1) the success of its research and development programs; (2) the timely and successful completion of any additional financing; (3) the development of competitive therapies by other biotechnology and pharmaceutical companies; (4) the Company’s ability to manage growth of the organization; (5) the Company’s ability to protect its technology and products; and, ultimately (6) regulatory approval and market acceptance of vibegron, URO-902 or any future product candidate. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2—Summary of significant accounting policies [A] Basis of presentation: The Company’s fiscal year ends on March 31. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) . Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). On September 11, 2018, the Company’s board of directors approved a 1-for-3.7453 reverse share split of the Company’s authorized and issued and outstanding common shares. The reverse share split increased par value to $0.000037453. The reverse split became effective on September 13, 2018. The accompanying consolidated financial statements and notes to the consolidated financial statements give retroactive effect to the reverse share split for all periods presented. [B] Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company regularly evaluates estimates and assumptions related to assets, liabilities, costs, expenses and compensation expense allocated to the Company under its services agreements with RSI and RSG, as well as share-based compensation, research and development costs and income taxes. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. [C] Risks and uncertainties: The Company is subject to risks common to early stage companies in the biopharmaceutical industry including, but not limited to, uncertainties related to commercialization of products, regulatory approvals, dependence on key products, third-party service providers such as contract research organizations and contract manufacturing organizations, protection of intellectual property rights and the ability to make milestone, royalty or other payments due under any license, collaboration or supply agreements. [D] : Cash and cash equivalents include cash deposits in banks and all highly liquid investments that are readily convertible to cash. The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains cash deposits and cash equivalents in highly-rated, federally-insured financial institutions in excess of federally insured limits. The Company has established guidelines relative to diversification and maturities to maintain liquidity and preservation of capital. The Company has not experienced any credit losses related to these financial instruments and does not believe that it is exposed to any significant credit risk related to these instruments. Restricted cash consists of legally restricted non-interest-bearing deposit accounts held as compensating balances against the Company’s corporate credit card program and an irrevocable standby letter of credit connected to an office lease entered into in November 2018 with an expiration date in 2026 (see Note 10) Restricted cash classified as a current asset consists of the restricted deposit account relating to the Company’s corporate credit card agreement. Restricted cash classified as a long-term asset consists of the restricted deposit account related to the irrevocable standby letter of credit. Cash as reported in the consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as presented on the consolidated balance sheets. Cash as reported in the consolidated statements of cash flows consists of (in thousands): March 31, 2019 March 31, 2018 Cash and cash equivalents $ 85,353 $ 7,194 Restricted cash 843 — Cash, cash equivalents and restricted cash $ 86,196 $ 7,194 [E] Property and equipment: Property and equipment, consisting of computers, equipment, furniture and fixtures and leasehold improvements, is recorded at cost. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed to operations as incurred. Upon disposal, retirement or sale, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in the consolidated results of operations. Depreciation is recorded for property and equipment using the straight-line method over the estimated useful lives of three to seven years, once the asset is installed and placed in service. Leasehold improvements are amortized using the straight-line method over the estimated useful life or remaining lease term, whichever is shorter. The Company reviews the recoverability of all long-lived assets, including the related useful lives, whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset might not be recoverable. Recoverability is measured by comparison of the book values of the assets to future net undiscounted cash flows that the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the book value of the assets exceed their fair value, which is measured based on the projected discounted future net cash flows arising from the assets. [F] : Deferred offering costs consist of qualified legal, accounting, and other direct costs related to the Company’s efforts to raise capital through a public or private sale of the Company’s capital stock. These costs are deferred until the completion of the applicable offering, at which time such costs are reclassified to additional paid-in-capital as a reduction of the proceeds. The Company’s initial public offering costs were reclassified to additional paid-in capital upon the closing of the Company’s initial public offering on October 1, 2018. [G] Debt issuance costs and debt discount: Debt issuance costs include the costs of debt financings undertaken by the Company, including legal fees, accounting fees, and other direct costs of the financing. Debt issuance costs related to a recognized debt liability are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts, and are amortized to interest expense over the term of the related debt using the effective interest method. Further, debt discounts created as a result of the allocation of proceeds received from a debt issuance to warrants issued in conjunction with the debt issuance are amortized to interest expense under the effective interest method over the life of the recognized debt liability. [H] Financial instruments: The Company applies a fair value framework in order to measure and disclose its financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Fair values are determined by utilizing quoted prices for similar assets and liabilities in active markets or other market observable inputs such as interest rates and yield curves. • 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. To the extent the valuation is based on models or inputs that are less observable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments consist of cash, cash equivalents consisting of money market accounts, restricted cash, accounts payable, accrued expenses, amounts due to and from RSL and long-term debt. The carrying value of the Company’s long-term debt approximates fair value based on current interest rates for similar types of borrowings and is included in Level 2 of the fair value hierarchy. The remaining financial instruments are stated at their respective historical carrying amounts, which approximates fair value due to their short-term nature. [I] Contingencies: The Company may be, from time to time, a party to various disputes and claims arising from normal business activities. The Company continually assesses litigation to determine if an unfavorable outcome would lead to a probable loss or reasonably possible loss which could be estimated. In accordance with the guidance of the FASB on accounting for contingencies, the Company accrues for all contingencies at the earliest date at which the Company deems it probable that a liability has been incurred and the amount of such liability can be reasonably estimated. If the estimate of a probable loss is a range and no amount within the range is more likely than another, the Company accrues the minimum of the range. In the cases where the Company believes that a reasonably possible loss exists, the Company discloses the facts and circumstances of the litigation, including an estimable range, if possible. [J] Research and development expense: Research and development costs are expensed as incurred. Payments for a product license prior to regulatory approval of the product and payments for milestones achieved prior to regulatory approval of the product are expensed in the period incurred as research and development. Milestone payments made in connection with regulatory approvals are capitalized and amortized to cost of product sales over the remaining useful life of the asset. Research and development expenses primarily consist of employee-related expenses, such as salaries, share-based compensation, benefits and travel expenses for research and development personnel, expenses from third parties who conduct research and development activities on behalf of the Company, the intellectual property and research and development materials acquired from Merck and ICI (see Note 3) and certain costs charged by RSI and RSG under their services agreements with the Company (see Note 6[A]). The estimated costs of research and development activities conducted by third-party service providers, which primarily include the conduct of clinical trials and contract manufacturing activities, are accrued over the service periods specified in the contracts and adjusted as necessary based upon an ongoing review of the level of effort and costs actually incurred. The estimate of the work completed is developed through discussions with internal personnel and external service providers as to the progress of stage of completion of the services and the agreed-upon fee to be paid for such services. As actual costs become known, the accrued estimates are adjusted. Such estimates are not expected to be materially different from amounts actually incurred, however the Company’s understanding of the status and timing of services performed, the number of subjects enrolled, and the rate of subject enrollment may vary from estimates and could result in reporting amounts that are higher or lower than incurred in any particular period. The estimate of accrued research and development expense is dependent, in part, upon the receipt of timely and accurate reporting from clinical research organizations and other third-party service providers. [K] Leases: At the inception of a lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. For operating leases, the Company recognizes rent expense on a straight-line basis over the lease term and records the difference between cash rent payments and the recognition of rent expense as a deferred liability. Where lease agreements contain rent escalation clauses, rent abatements and/or concessions, such as rent holidays and tenant improvement allowances, the Company applies them in the determination of straight-line rent expense over the lease term. Certain lease agreements also require the Company to make additional payments for taxes, insurance, and other operating expenses incurred during the lease period, which are expensed as incurred. [L] Income taxes: The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. [M] Share-based compensation: The Company recognizes share-based compensation expense related to stock options granted to employees based on the estimated fair value of the awards on the date of grant. The Company estimates the grant date fair value, and the resulting share-based compensation expense, for stock options that only have service vesting requirements or performance-based vesting requirements without market conditions using the Black-Scholes option-pricing model. The grant date fair value of the share-based awards with service vesting requirements is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. Determining the appropriate amount to expense for performance-based awards based on the achievement of stated goals requires judgment. The estimate of expense is revised periodically based on the probability of achieving the required performance targets and adjustments are made as appropriate. The cumulative impact of any revisions is reflected in the period of change. If any applicable financial performance goals are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. For performance-based awards with market conditions, the Company determines the fair value of awards as of the grant date using a Monte Carlo simulation model. The Company recognizes share-based compensation expense related to stock options granted to non-employees issued in exchange for services based on the estimated fair value of the awards on the date of grant. The Company estimates the grant date fair value, and the resulting share-based compensation expense, using the Black-Scholes option-pricing model; however, the fair value of the stock options granted to non-employees is remeasured each reporting period until the service is complete, and the resulting increase or decrease in value, if any, is recognized as expense or a reduction in previously recognized expense, respectively, during the period the related services are rendered. The Black-Scholes option-pricing model requires the use of subjective assumptions, which determine the fair value of share-based awards. These assumptions include: Expected term . The Company’s expected term represents the period that the share-based awards are expected to be outstanding. Since the Company has limited option exercise history, it has generally elected to estimate the expected life of an award based upon the Securities and Exchange Commission (“SEC”) approved “simplified method” (based on the mid-point between the vesting date and the end of the contractual term) noted under the provisions of Staff Accounting Bulletin (“SAB”) No. 107 with the continued use of this method extended under the provisions of SAB No. 110. For share-based awards granted to non-employees, the expected term represents the contractual term of the award. Expected volatility . Because the Company does not have an extended trading history for its common shares, the expected volatility was estimated using weighted-average measures of implied volatility and the historical volatility of its peer group of companies for a period equal to the expected life of the stock options. The Company’s peer group of publicly traded biopharmaceutical companies was chosen based on their similar size, stage in the life cycle or area of specialty. Risk-free interest rate . The risk-free interest rate is based on the rates paid on securities issued by the United States Treasury with a term approximating the expected life of the stock options. Expected dividend . The Company has never paid, and does not anticipate paying, cash dividends on its common shares. Therefore, the expected dividend yield was assumed to be zero. In addition to the Black-Scholes option-pricing model assumptions, the Company adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (“ASU No. 2016-09”) As part of the valuation of share-based compensation under the Black-Scholes option-pricing model, it is necessary for the Company to estimate the fair value of its common shares. Prior to the Company’s initial public offering, it was required to periodically estimate the fair value of its common shares when issuing options and in computing its estimated share-based compensation expense. Valuation of Privately-Held-Company Equity Securities Issued as Compensation In connection with the Company’s initial public offering, the Company reassessed the fair value of its options. Subsequent to the Company’s initial public offering, the estimated fair value of share-based payment awards has been determined as indicated in the preceding paragraphs. [N] : The Company has operations in the United States, the United Kingdom and Switzerland. The results of its non-U.S. dollar based functional currency operations are translated to U.S. dollars at the average exchange rates during the period. The Company’s assets and liabilities are translated using the current exchange rate as of the consolidated balance sheet date and shareholders’ equity is translated using historical rates. Adjustments resulting from the translation of the consolidated financial statements of the Company’s foreign functional currency subsidiaries into U.S. dollars are excluded from the determination of net loss and are accumulated in a separate component of shareholders’ equity. Foreign exchange transaction gains and losses are included in other income (expense) in the Company’s consolidated results of operations. [O] : Basic net loss per common share is computed by dividing net loss applicable to common shareholder by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss applicable to common shareholders by the diluted weighted-average number of common shares outstanding during the period calculated in accordance with the treasury stock method. In periods in which the Company reports a net loss, all common share equivalents are deemed anti-dilutive such that basic net loss per common share and diluted net loss per common share are equal. Potentially dilutive common shares have been excluded from the diluted net loss per common share computations in all periods presented because such securities have an anti-dilutive effect on net loss per common share due to the Company’s net loss. There are no reconciling items used to calculate the weighted-average number of total common shares outstanding for basic and diluted net loss per common share data. At March 31, 2019 and 2018, potentially dilutive securities were as follows: March 31, 2019 2018 Options 4,058,866 1,737,838 Restricted stock units (unvested) 5,000 — Warrants 33,259 — Total 4,097,125 1,737,838 [P] Recently adopted accounting standards : In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory The adoption of ASU No. 2016-16 on April 1, 2018 did not have a material impact on the Company's consolidated financial position, results of operations and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash (Topic 230) Entities must apply the guidance retrospectively to each period presented . In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB No. 118) Income Tax Accounting Implications of the Tax Cuts and Jobs Act [Q] Recently issued accounting standards : In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) The Company plans to adopt this standard as of April 1, 2019 using the optional modified retrospective transition method. Upon adoption, the Company intends to apply the transition package of practical expedients allowed by the standard and to transition to the standard by recognizing a cumulative-effect adjustment to the opening balance of accumulated deficit. Comparative periods will not be restated. ASU No. 2016-02 is expected to impact the Company’s consolidated financial statements as the Company has certain operating lease arrangements for which the Company is the lessee. The Company has implemented a process to identify its outstanding lease portfolio and is currently evaluating its outstanding leases to determine the financial impact the new standard will have on its corresponding consolidated financial statements. The Company expects that the adoption of this standard will result in the recognition of an asset for the right to use a leased facility on the Company’s consolidated balance sheet, as well as the recognition of a corresponding lease liability. The Company plans to elect the following package of practical expedients when assessing the transition impact as the lessee as of April 1, 2019: (1) not to reassess whether any expired or existing contracts are or contain leases; (2) not to reassess the lease classification for any expired or existing leases; and (3) not to reassess initial direct costs for any existing leases. Leases with an initial term of 12 months or less will not be recorded on the consolidated balance sheet as the Company will recognize lease expense for these leases on a straight-line basis over the remaining lease term. The Company plans to elect to: (1) use the total lease term in its initial incremental borrowing rate calculation; (2) combine its lease and non-lease components and account for them as a single lease component; and (3) not apply the use of hindsight in determining the lease term when considering lessee options to extend or terminate the lease and to purchase the underlying asset. The Company expects its future financial statement disclosures for its leasing arrangements will be expanded to present additional qualitative and quantitative details. While the consolidated balance sheet presentation is expected to change, the Company does not expect a material change to the consolidated statements of operations, comprehensive loss or cash flows. In June 2018, the FASB issued ASU No. 2018-07, C ompensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting Entities must apply the guidance retrospectively with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement |
License Agreement
License Agreement | 12 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
License Agreement | Note 3—License agreements [A] Merck agreement: On February 3, 2017, the Company’s wholly owned subsidiary, USG, entered into an exclusive license agreement with Merck for the development and commercialization of vibegron in exchange for the following consideration: • An initial one-time, non-refundable, non-creditable payment of $25.0 million; • Up to an aggregate of $44.0 million upon the achievement of certain regulatory milestones; • Up to an aggregate of $80.0 million upon the achievement of certain annual sales-based milestones; and • An escalating low double-digit royalty on annual net sales The Territory for our exclusive license for vibegron is worldwide, except for Japan, Brunei, Cambodia, Hong Kong, Indonesia, Korea, Laos, Malaysia, Myanmar, Philippines, Singapore, Taiwan, Thailand, and Vietnam. For the consideration above, the Company also received a small quantity of inventory of vibegron, and certain research and development historical records. The Company did not hire, or receive, any Merck employees working on vibegron, or any research, clinical or manufacturing equipment. Additionally, the Company did not assume from Merck any contracts, licenses or agreements between Merck and any third party with respect to vibegron. The Company will need to develop independently all clinical processes and procedures for its clinical trials through the use of internal and external resources once appropriate and acceptable resources have been identified and obtained. The Company evaluated the in-license agreement of vibegron from Merck based on the applicable guidance in ASC No. 805, Business Combinations, Research and Development [B] ICI agreement: On August 24, 2018, the Company’s wholly owned subsidiary, USG, entered into an exclusive license agreement with ICI (the “ICI Agreement”) for the development and commercialization of URO-902 in exchange for the following consideration: • An initial one-time, non-refundable, non-creditable payment of $0.25 million; • Up to an aggregate of $35.0 million upon the achievement of certain development and regulatory milestones; • Up to an aggregate of $60.0 million upon the achievement of certain annual sales-based milestones; and • An escalating mid-to-high single-digit royalty on annual net sales of licensed products made by the Company, its affiliates or its sublicensees, subject to certain reductions as set forth in the ICI Agreement. The Company’s royalty obligations apply on a product-by-product and country-by-country basis and end upon the date on which the last valid claim of the licensed patents expires with respect to a given product in a given country. The exclusive license under the ICI Agreement extends to all countries and territories worldwide. For the consideration above, the Company received certain research and development historical records. The Company did not receive any material inventory of URO-902, did not hire, or receive, any ICI employees working on URO-902, and did not receive any research, clinical or manufacturing equipment. Additionally, the Company did not assume from ICI any contracts, licenses or agreements between ICI and any third party with respect to URO-902. The Company will need to develop independently all clinical processes and procedures for its clinical trials through the use of internal and external resources once appropriate and acceptable resources have been identified and obtained. The Company has evaluated the in-license agreement of URO-902 from ICI based on the applicable guidance in ASC No. 805 and has determined that the IPR&D asset licensed did not meet the definition of a business and thus the transaction was not considered a business combination. The Company then evaluated, pursuant to ASC No. 730 whether the IPR&D asset had an alternative future use and concluded it did not. As a result, the Company recorded the initial payment under the license agreement of $0.25 million as research and development expense in the accompanying consolidated statement of operations for the year ended March 31, 2019. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 4—Accrued expenses Accrued expenses at March 31, 2019 and 2018 consist of the following (in thousands): March 31, 2019 March 31, 2018 Research and development expenses $ 4,993 $ 2,482 General and administrative expenses 615 429 Bonuses and other compensation expenses 3,398 549 Professional services expenses 821 90 Other expenses 50 45 Total accrued expenses $ 9,877 $ 3,595 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 5—Long-term debt On February 20, 2019, the Company and its subsidiaries, UHL, USG (collectively with the Company and UHL, the “Borrowers”) and USI (collectively with the Borrowers, the “Loan Parties”) entered into a secured debt financing agreement (the “Hercules Loan Agreement”) with Hercules Capital, Inc., as agent and lender (the “Administrative Agent”) in the amount of $100 million (the “Term Loans”). A first tranche of $15 million, or net cash proceeds of $14.1 million, was funded upon execution of the Loan Agreement, and the remaining $85 million is available in three additional optional tranches through June 30, 2021, subject to certain terms and conditions, including the achievement of certain milestones. The Term Loans bear a variable interest rate equal to the greater of (i) 10.15% or (ii) the lesser of (x) the prime rate as reported in The Wall Street Journal plus 4.65% and (y) 12.15%. The Company is obligated to make monthly payments of accrued interest for the first 12 months from closing (the “Interest-only Period”), followed by monthly installments of principal and interest through the maturity date. The Interest-only Period may be extended up to an aggregate of 24 months after closing if certain milestones are met. The Company’s obligations under the Hercules Loan Agreement are fully and unconditionally guaranteed by the subsidiaries of the Borrowers, including USI. The Loan Parties’ obligations under the Hercules Loan Agreement are secured by a first priority security interest on substantially all of their personal property, other than intellectual property, and subject to certain other exceptions. The Term Loans mature 36 months from closing and include an option for the Loan Parties to extend the maturity date up to 18 months if certain defined milestones are met. The Loan Parties have the option to prepay the Terms Loans and the prepayment of the Term Loans will be subject to, in some circumstances, a prepayment charge equal to 2% in the first 12 months from closing, 1% in the second 12 months, and 0% thereafter. Upon repayment of the Term Loans, the Company will be obligated to pay an end of term charge in an amount equal to 4.25% of the amount of the Term Loans actually advanced. The Hercules Loan Agreement contains certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The agreement also contains a minimum cash covenant that requires the Loan Parties to hold certain minimum cash balances in the event that either certain milestones are not achieved or the market capitalization of the Company is below a certain threshold for certain periods of time. Such minimum cash covenant ceases to apply if the Company achieves certain clinical development and financial milestones as set forth in the Hercules Loan Agreement. The Hercules Loan Agreement also contains customary events of default (subject, in certain instances, to specified grace periods). If any event of default occurs, the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Term Loans may become due and payable immediately. Upon the occurrence of an event of default, a default interest rate of an additional 5% may be applied to the outstanding principal balance, and the Administrative Agent may declare all outstanding obligations immediately due and payable (subject, in certain instances, to specified grace periods) and take such other actions as set forth in the Hercules Loan Agreement. Upon the occurrence of certain bankruptcy and insolvency events, the obligations under the Hercules Loan Agreement would automatically become due and payable. The Company is in compliance with the covenants under the Hercules Loan Agreement as of March 31, 2019. In connection with each funding of the Term Loans, the Company is required to issue to the Administrative Agent a warrant (the “Warrants”) to purchase a number of the Company’s common shares equal to 2% of the principal amount of the relevant Term Loan funded divided by the exercise price, which will be based on the closing price of the Company’s common shares on the business day immediately prior to the relevant Term Loan funding (or for the first and second tranches only at the lower of (i) $9.02 per share or (ii) the closing price of the Company’s common shares on the business day immediately prior to the relevant Term Loan funding). The Warrants may be exercised on a cashless basis, and are immediately exercisable through the seventh anniversary of the applicable funding date. The number of common shares for which each Warrant is exercisable and the associated exercise price are subject to certain proportional adjustments as set forth in such Warrant. In connection with the first tranche of the Term Loans, the Company issued a Warrant to the Administrative Agent, exercisable for an aggregate of 33,259 of the Company’s common shares at an exercise price of $9.02 per share. The Company accounted for the Warrant as an equity instrument since it was indexed to the Company’s common shares and met the criteria for classification in shareholders’ equity. The relative fair value of the Warrant related to the first tranche funding was approximately $0.2 million and was treated as a discount to the Term Loan. This amount is being amortized to interest expense using the effective interest method over the life of the Term Loan. The Company estimated the fair value of the Warrant using the Black-Scholes option-pricing model based on the following key assumptions: Tranche 1 Exercise price $9.02 Common share price on date of issuance $10.50 Expected volatility 69.6% Contractual term, in years 7.00 Risk-free interest rate 2.55% Expected dividend yield —% The Company issued the first tranche of the Term Loan at a discount of $1.8 million, including the proceeds allocated to the related Warrant, and incurred financing costs of $0.4 million relating to the Hercules Loan Agreement which are recorded as an offset to long-term debt on the Company’s consolidated balance sheet. The debt discount and deferred financing costs are being amortized over the term of the debt using the effective interest method, and are included in interest expense in the Company’s consolidated statement of operations. During the year ended March 31, 2019, interest expense included $0.1 million of amortized debt discount and issuance costs related to the Term Loan. Outstanding debt obligations to Hercules Capital, Inc. are as follows (in thousands): March 31, 2019 Principal amount $ 15,000 End of term charge 638 Less: unamortized debt discount and issuance costs (2,104 ) Loan payable less unamortized debt discount and issuance costs 13,534 Less: current maturities — Long-term debt, net of unamortized debt discount and issuance costs $ 13,534 Annual maturities of long-term debt outstanding, excluding interest and the end of term charge, as of March 31, 2019 are as follows (in thousands): Years Ending March 31, 2020 $ — 2021 7,101 2022 7,899 Total $ 15,000 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6—Related party transactions [A] Services agreements: In May 2017, the Company entered into a services agreement with RSI effective January 17, 2017, as amended and restated on July 9, 2018, under which RSI agreed to provide certain administrative and research and development services to the Company during its formative period. Under this services agreement, the Company will pay or reimburse RSI for any expenses it, or third parties acting on its behalf, incurs for the Company. For any general and administrative and research and development activities performed by RSI employees, RSI will charge back the employee compensation expense plus a pre-determined markup. RSI also provided such services prior to the formalization of this services agreement, and such costs have been recognized by the Company in the period in which the services were rendered. Employee compensation expense, inclusive of base salary and fringe benefits, is determined based upon the relative percentage of time utilized on Company matters. All other costs will be billed back at cost. The consolidated financial statements also include third-party expenses that have been paid by RSI and RSL since the inception of the Company. During the years ended March 31, 2019 and 2018, RSL and RSI provided certain administrative and research and development services on behalf of the Company. Total compensation expense, inclusive of base salary, fringe benefits and share-based compensation, is proportionately allocated to the Company based upon the relative percentage of time utilized on the Company’s matters. A significant component of total compensation expense allocated back to the Company relates to the RSL common share awards and RSL options issued by RSL to RSL and RSI employees. The term of the RSI services agreement will continue until terminated upon 90 days’ written notice by RSI or by either USI or USG with respect to the services either such party receives thereunder. In May 2017, USG entered into a separate services agreement with RSG effective as of January 17, 2017 , as amended and restated on July 9, 2018, The term of the RSG services agreement will continue until terminated by RSG or USG upon 90 days’ written notice. Under the RSI and RSG services agreements, for the years ended March 31, 2019 and 2018, the Company incurred expenses of $3.4 million and $6.3 million, respectively, inclusive of the mark-up. Based upon the service performed under the services agreements, amounts included in research and development expenses totaled $2.2 million and $5.2 million, and amounts included in general and administrative expenses totaled $1.2 million and $1.1 million during the years ended March 31, 2019 and 2018, respectively. [B] China intellectual property purchase agreement: On June 12, 2017, USG and RSG entered into an intellectual property purchase agreement, as amended on May 22, 2018, pursuant to which USG assigned to RSG all of its rights, titles, claims and interests in and to all intellectual property rights under the Merck license agreement, solely as it relates to USG’s rights and obligations in China. The assignment is subject to the terms of the Merck license agreement, and RSG is obligated to make royalty and milestone payments owed under the Merck license agreement to USG, to the extent such payment obligations arise from the development, regulatory approval or sales of any vibegron product in China. In connection with this assignment, the Company also entered into a separate collaboration agreement with RSG on June 1, 2018, setting forth the parties’ respective rights and obligations to each other in connection with the development of vibegron in their respective territories. The consideration for the assignment of the rights to China under the Merck license agreement was $1.8 million plus applicable Swiss VAT and was determined based on an independent third-party valuation. Since the IPR&D asset acquired from Merck was expensed during the year ended March 31, 2017, the carrying value of the intellectual property rights transferred to RSG was $0. Since the assignment of such intellectual property rights from USG to RSG were between entities under common control with no carrying value, the Company accounted for the consideration of $1.8 million as a deemed capital contribution from its parent, RSL. In July 2017, the Company received payment of $0.5 million under such agreement and the remaining consideration due of $1.3 million was classified within equity as a shareholder receivable in the accompanying consolidated balance sheet as of March 31, 2018. The remaining consideration of $1.3 million was received in October 2018. [C] Information sharing and cooperation agreement: On July 9, 2018, the Company entered into an information sharing and cooperation agreement (the “Cooperation Agreement”) with RSL. The Cooperation Agreement, among other things: (1) obligates the Company to deliver to RSL periodic financial statements and other information upon reasonable request and to comply with other specified financial reporting requirements; (2) requires the Company to supply certain material information to RSL to assist it in preparing any future SEC filings; and (3) requires the Company to implement and observe certain policies and procedures related to applicable laws and regulations. The Company agreed to indemnify RSL and its affiliates and their respective officers, employees and directors against all losses arising out of, due to or in connection with RSL’s status as a shareholder under the Cooperation Agreement and the operations of or services provided by RSL or its affiliates or their respective officers, employees or directors to the Company or any of the Company’s subsidiaries, subject to certain limitations set forth in the Cooperation Agreement. No amounts have been paid or received under this agreement; however, the Company believes this agreement is material to its business and operations. [D] Data sharing agreement: On May 22, 2018, USG entered into a data sharing agreement (the “Data Sharing Agreement”) with Datavant, Inc. (“Datavant”), a subsidiary of the Company’s parent company, RSL. Pursuant to this Data Sharing Agreement, USG granted to Datavant a royalty-free, worldwide (excluding jurisdictions prohibited by the United States government), non-exclusive, irrevocable license to all data, subject to certain exceptions set forth in the Data Sharing Agreement, collected as part of clinical trials (but not prior to completion of such clinical trials and the publication or presentation of the data generated in connection with such clinical trials) or other patient-level data that is owned or licensed by USG and all other data mutually agreed by USG and Datavant, solely for Datavant to (1) use such data to develop its data or other analytics products (the “Datavant Products”), or (2) provide such data to third parties, subject to the limitations and conditions set forth in the Data Sharing Agreement, including limitations on providing such data to any third party that competes with USG. Pursuant to the Data Sharing Agreement, Datavant granted to USG a royalty-free, worldwide (excluding jurisdictions prohibited by the United States government), nonexclusive, irrevocable license to use all data, subject to certain exceptions set forth in the Data Sharing Agreement, owned or licensed by Datavant and applicable Datavant Products for such specified purposes as set forth in the Data Sharing Agreement. The Data Sharing Agreement has an initial term of two years and will automatically renew annually thereafter, subject to 30 days’ written notice of termination by either party. In addition, either party may terminate (1) upon a change of control of either party upon 60 days’ written notice or (2) upon 90 days’ written notice for an uncured material breach by the other party. No amounts have been paid or received under this agreement, however, the Company believes this agreement is material to its business and operations. |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholder's Equity | Note 7—Shareholders’ equity [A] Overview: The Company’s Memorandum of Association, filed on January 27, 2016 in Bermuda, authorized the creation of one class of shares. As of March 31, 2019, the Company had 267,001,308 shares authorized with a par value of $0.000037453 per share. [B] Transactions: Initial public offering On September 26, 2018, the Company’s registration statement on Form S-1 relating to its initial public offering of its common shares was declared effective by the SEC. In the initial public offering, which closed on October 1, 2018, the Company issued and sold 10,000,000 common shares at a price to the public of $14.00 per share. On October 18, 2018, the Company issued and sold an additional 297,813 common shares at the public offering price of $14.00 per share pursuant to the partial exercise of the underwriters’ over-allotment option in the initial public offering. Our sole shareholder prior to the initial public offering, RSL, purchased 2,678,571 shares in the initial public offering at the public offering price of $14.00. The aggregate net proceeds to the Company from the initial public offering, inclusive of the proceeds from the partial over-allotment exercise, were $132.9 million after deducting underwriting discounts and commissions of $10.1 million and offering related expenses of $1.2 million Capital contributions For the years ended March 31, 2019 and 2018, RSL made cash capital contributions of $40.3 million and $36.5 million, respectively. In connection with the China intellectual property purchase agreement with RSG, USG assigned all of its rights, titles, claims and interests in and to all intellectual property rights under the Merck license agreement, solely as it relates to USG’s rights and obligations in China to RSG for cash consideration of $1.8 million of which $0.5 million was received during the year ended March 31, 2018 and the remaining $1.3 million during the year ended March 31, 2019. As RSG and USG are under common control, the consideration of $1.8 million was recorded as a capital contribution from the Company’s parent, RSL (see Note 6[B]). Share issuance On June 1, 2017, upon approval of the Board of Directors, the Company issued an additional 17,355,085 shares for consideration of $650 or par value of $0.000037453 to RSL, increasing the total number of issued and outstanding shares to 20,025,098 as of March 31, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8—Income taxes The loss before income taxes and the related tax provision are as follows (in thousands): Year Ended March 31, 2019 2018 Loss before income taxes: United States $ (1,437 ) $ (159 ) Switzerland (107,905 ) (36,805 ) Bermuda (1,924 ) (81 ) Other (1) (33 ) 8 Total loss before income taxes $ (111,299 ) $ (37,037 ) Current taxes: United States $ 42 $ 36 Switzerland — — Bermuda — — Other (1) 5 1 Total current tax expense 47 37 Deferred taxes: United States — — Switzerland — — Bermuda — — Other (1) — — Total deferred tax expense — — Total income tax provision $ 47 $ 37 (1) Primarily United States state and United Kingdom activity. As of March 31, 2019 and 2018, the Company had an aggregate income tax receivable (payable) of $$0.1 million and $(0.02 million), respectively, from/to various federal, state, and local jurisdictions which is included in prepaid expenses and other current assets and accrued expenses in the accompanying consolidated balance sheets, respectively. A reconciliation of income tax provision computed at the Bermuda statutory rate to income tax provision reflected in the consolidated financial statements is as follows (in thousands): Year Ended March 31, 2019 2018 Income tax provision at Bermuda statutory rate $ — — % $ — — % Foreign rate differential (2) (18,720 ) 16.82 (4,177 ) 11.28 Tax reform — — 39 (0.11 ) Other 22 (0.02 ) — — Valuation allowance 18,745 (16.84 ) 4,175 (11.27 ) Total income tax provision $ 47 (0.04 ) % $ 37 (0.10 ) % (2) Mainly related to current tax on United States operations including permanent and temporary differences (e.g. research and development credits, etc.) as well as operations in Switzerland and the United Kingdom at rates different than the Bermuda rate. The Company’s effective tax rate for the years ended March 31, 2019 and 2018 was (0.04)% and (0.10)%, respectively, driven by the Company’s jurisdictional earnings by location and a valuation allowance that eliminates the Company’s global net deferred tax assets. Deferred taxes reflect the tax effects of the differences between the amounts recorded as assets and liabilities for financial reporting purposes and the comparable amounts recorded for income tax purposes. Significant components of the deferred tax assets (liabilities) at March 31, 2019 and 2018 are as follows (in thousands): March 31, 2019 March 31, 2018 Deferred tax assets: Research tax credits $ 4,081 $ 528 Intangibles 3,041 2,685 Net operating losses 18,052 3,745 Share-based compensation 805 87 Other 5 106 Subtotal 25,984 7,151 Valuation allowance (25,773 ) (7,044 ) Deferred tax liabilities: Depreciation (155 ) (107 ) Other (56 ) — Total deferred tax assets $ — $ — The Company has net operating losses in Switzerland and the United Kingdom in the amount of $136.0 million and $1.9 million, respectively. The net operating losses in Switzerland will begin to expire in fiscal year 2024. The net operating losses in the United Kingdom can be carried forward indefinitely with an annual usage limitation. As of March 31, 2019, the Company has research and development credit carryforwards in the United States in the amount of $4.1 million which will begin to expire in fiscal year 2037. The Company assesses the realizability of the net deferred tax assets at each balance sheet date based on available positive and negative evidence in order to determine the amount which is more likely than not to be realized and record a valuation allowance as necessary. Due to the Company’s cumulative loss position which provides significant negative evidence difficult to overcome, the Company has recorded a valuation allowance of $25.8 million and $7.0 million as of March 31, 2019 and 2018, respectively, representing the portion of the net deferred tax assets that is not more likely than not to be realized. During the years ended March 31, 2019 and 2018, the Company recorded an increase to its valuation allowance of $18.7 million and $4.1 million, respectively. The amount of the net deferred tax assets considered realizable, could be adjusted for future factors that would impact the assessment of the objective and subjective evidence of the Company. The Company will continue to assess the realizability of net deferred tax assets at each consolidated balance sheet date in order to determine the proper amount, if any, required for a valuation allowance. There are outside basis differences related to our investment in subsidiaries for which no deferred taxes have been recorded as these would not be subject to tax on repatriation as Bermuda has no tax regime for Bermuda exempted limited companies, and the United Kingdom tax regime relating to company distributions generally provides for exemption from tax for most overseas profits, subject to certain exceptions. The Company is subject to tax and files income tax returns in the United Kingdom, Switzerland, and United States federal, state, and local jurisdictions. The Company is subject to tax examinations for fiscal year 2016 and forward in all applicable income tax jurisdictions. Tax audits and examinations can involve complex issues, interpretations and judgments. The resolution of matters may span multiple years particularly if subject to litigation or negotiation. The Company believes it has appropriately recorded its tax position using reasonable estimates and assumptions, however the potential tax benefits may impact the consolidated results of operations or cash flows in the period of resolution, settlement or when the statutes of limitations expire. There are no uncertain tax benefits recorded as of March 31, 2019 and 2018. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 9—Share-based compensation Equity Incentive Plan: On June 1, 2017, the Company adopted its 2017 Equity Incentive Plan (the “2017 Plan”), under which 2,002,509 common shares are reserved for grant. On June 15, 2018, the Board of Directors approved an increase in the common shares reserved for grant under the 2017 Plan of 1,068,006 common shares. The 2017 Plan was approved by the Company’s shareholders in September 2018. In connection with the Company’s initial public offering, the 2017 Plan was amended effective upon the execution of the underwriting agreement related to the offering. All references herein to the Company’s 2017 Plan will be deemed to refer to the 2017 Plan, as amended and restated, unless context otherwise requires. Share-based awards under the 2017 Plan are subject to terms and conditions established by the Compensation Committee of the Company’s Board of Directors. The 2017 Plan provides for the grant of incentive options within the meaning of Section 422 of the Internal Revenue Code to the Company’s employees and its parent and subsidiary corporations’ employees, and for the grant of nonstatutory options, restricted share awards, restricted share unit awards, share appreciation rights, performance share awards and other forms of share compensation to its employees, including officers, consultants and directors. The 2017 Plan also provides for the grant of performance cash awards to the Company’s employees, consultants and directors. The Company’s policy is to issue new common shares upon the exercise of stock options, conversion of share units or purchase of restricted shares. Pursuant to the “evergreen” provision contained in the 2017 Plan, the number of common shares reserved for issuance under the 2017 Plan automatically increases on November 1 of each year, commencing on November 1, 2018 and ending on November 1, 2028, in an amount equal to 4% of the total number of the Company’s common shares outstanding on the last day of the preceding month, or by a lesser number of common shares as may be determined by the Company’s Board of Directors prior to any such increase date. At March 31, 2019, a total of 219,565 common shares were available for future issuance under the 2017 Plan. Stock options: The Company estimated the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model applying the range of assumptions in the following table: Year Ended March 31, 2019 2018 Risk-free interest rate 2.53% - 3.06% 2.01% - 2.76% Expected term, in years 6.00 - 6.25 6.25 - 10.00 Expected volatility 65.6% - 68.4% 68.5% - 72.2% Expected dividend yield —% —% The following table presents a summary of stock option activity and data under the Company’s 2017 Plan through March 31, 2019 (in thousands, except share and per share data): Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options outstanding at March 31, 2018 1,737,838 $ 3.84 $ 2.46 9.58 $ — Granted 2,329,038 $ 7.79 $ 4.98 Forfeited (8,010 ) $ 6.33 $ 5.72 Options outstanding at March 31, 2019 4,058,866 $ 6.10 $ 3.90 9.13 $ 16,854 Options exercisable at March 31, 2019 622,017 $ 3.85 $ 2.47 8.59 $ 4,105 The aggregate intrinsic value is calculated as the difference between the exercise price of all outstanding stock options and the quoted market price of the Company’s common shares at March 31, 2019. At March 31, 2019, there were 622,017 vested or exercisable options outstanding. During the year ended March 31, 2019, the Company granted options to purchase 2,329,038 common shares to certain employees and directors of the Company with a weighted-average exercise price and grant date fair value per share of $7.79 and $4.98, respectively, under the 2017 Plan. Restricted stock unit (“RSUs”): A summary of restricted stock unit activity under the Company’s 2017 Plan through March 31, 2019 is as follows: Number of Shares Unvested balance at March 31, 2018 — Granted 5,000 Unvested balance at March 31, 2019 5,000 The weighted average grant-date fair value of RSUs granted during the year ended March 31, 2019 was $7.84 per unit. [A] Share-based compensation expense: Share-based compensation expense was as follows (in thousands): Year Ended March 31, 2019 2018 Share-based compensation recognized as: Research and development $ 1,296 $ 2,477 General and administrative 2,682 694 Total $ 3,978 $ 3,171 Share-based compensation expense is included in research and development and general and administrative expenses in the accompanying consolidated statements of operations consistent with the grantee’s salary classification. Share-based compensation expense presented in the table above includes share-based compensation expense allocated to the Company by RSL as described below in Note 9[B]. Of the total share-based compensation expense, amounts recognized for options granted to non-employees were immaterial for all periods presented. For the years ended March 31, 2019 and 2018, the Company recorded share-based compensation expense related to stock options and restricted stock units issued to employees, directors and consultants of $3.4 million and $0.4 million, respectively. This share-based compensation expense is included in general and administrative expenses and research and development expenses in the accompanying consolidated statements of operations. Total unrecognized share-based compensation expense was approximately $13.1 million at March 31, 2019 and is expected to be recognized over a weighted-average period of 3.21 years. [B] Share-based compensation allocated to the Company by RSL: In relation to the RSL common share awards and options issued by RSL to RSL, RSI and RSG employees, the Company recorded share-based compensation expense of $0.6 million and $2.8 million for the years ended March 31, 2019 and 2018, respectively. Share-based compensation expense is allocated to the Company by RSL based upon the relative percentage of time utilized by RSL, RSI and RSG employees on Company matters. The RSL common share awards and RSL options are valued at fair value on the date of grant and that fair value is recognized over the requisite service period. Significant judgment and estimates were used to estimate the fair value of these RSL awards and RSL options, as they are not publicly traded. RSL common share awards and RSL options are subject to specified vesting schedules and requirements (a mix of time-based and performance-based events). The fair value of each RSL common share award is based on various corporate event-based considerations, including targets for RSL’s post-IPO market capitalization and future financing events. The fair value of each RSL option on the date of grant is estimated using the Black-Scholes option-pricing model. Compensation expense will be allocated to the Company over the required service period over which these RSL common share awards and RSL options would vest and is based upon the relative percentage of time utilized by RSL, RSI and RSG employees on Company matters. RSL RSUs: In connection with his employment agreement, the Company’s Principal Executive Officer was granted 66,845 RSUs of the Company’s parent company, RSL, during the year ended March 31, 2018. The RSUs have a requisite service period of eight years and have no dividend rights. The RSUs will vest upon the achievement of both a performance and liquidity condition, if both are achieved within the requisite service period. As of March 31, 2019, the performance condition had not been met and was deemed not probable of being met. For the years ended March 31, 2019 and 2018, the Company recorded no share-based compensation expense related to the RSUs that were issued. At March 31, 2019, there was $0.9 million of unrecognized compensation expense related to non-vested RSUs. The Company will recognize the expense upon the probable achievement of the performance condition through the requisite service period. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10—Commitments and contingencies The Company entered into certain commitments under the Merck license agreement (see Note 3[A]), the ICI license agreement (see Note 3[B]), the Codexis enzyme supply agreement (see Note 10[A]), the Kyorin information sharing collaboration agreement (see Note 10[B]) and the services agreements with RSI and RSG (see Note 6[A]) . In addition, the Company has entered into services agreements with third parties for pharmaceutical research and development and manufacturing activities. Expenditures to contract research organizations, or CROs, and contract manufacturing organizations, or CMOs, represent significant costs in the Company’s clinical development of its product candidates. Subject to required notice periods, a nominal early termination fee, in certain cases, and the Company’s remaining obligations under binding purchase orders, the Company can elect to discontinue the work under these agreements at any time. The Company expects to enter into additional commitments as the business further develops. The Company leased 8,038 square feet of office space located in Irvine, California, pursuant to an operating lease agreement that was set to expire in February of 2020. This lease and all future obligations under this lease were terminated in June 2019 upon the commencement of the Company’s new office lease agreement below. In November 2018, the Company entered into a lease agreement for 21,489 square feet of office space located in Irvine, California that expires seven years from the lease commencement date, with an option to terminate after five years. The lease has scheduled rent increases each year and t Approximate future operating lease obligations (excluding the optional lease renewal term) as of March 31, 2019 are as follows (in thousands): Years Ending March 31, Operating Leases 2020 $ 455 2021 675 2022 692 2023 711 2024 731 Thereafter 1,662 Total minimum operating lease payments $ 4,926 Rent expense for the years ended March 31, 2019 and 2018 was approximately $0.3 million and $0.1 million, respectively. [A] Codexis: On September 1, 2017, the Company entered into a supply agreement (the “Codexis Agreement”) with Codexis, Inc. (“Codexis”), pursuant to which Codexis agreed to supply its proprietary enzyme, currently used in the production of vibegron, to the Company on a non-exclusive basis. Pursuant to the Codexis Agreement, the Company agreed to purchase from Codexis all of the Company’s requirements for such enzyme for use in the clinical and commercial production of vibegron for the first six years after the first approved vibegron product in any of the United States, Europe or Canada. The Company could be required to make minimum purchase commitments of up to $3.75 million and a milestone payment of $0.5 million, subject to the first regulatory approval of vibegron in any of the United States, Europe or Canada. No milestone payments were made pursuant to this agreement during the years ended March 31, 2019 and 2018. [B] Kyorin information sharing collaboration agreement: On August 24, 2017, the Company entered into an information sharing collaboration agreement (the “Kyorin Agreement”) with Kyorin Pharmaceutical Co., Ltd. (“Kyorin”). Under the Kyorin Agreement, the Company and Kyorin have agreed to share with each other certain information, including clinical study reports, and have granted each other rights of reference to the others’ regulatory materials for the purposes of developing and commercializing vibegron in their respective territories. Additionally, Kyorin has agreed to share with the Company its statistical analysis system datasets and relevant sections of its trial master file. The Kyorin Agreement does not include any joint operating activities between the parties and is solely for the purpose of sharing certain information and granting each other rights of reference to regulatory materials as it relates to vibegron. Pursuant to this agreement, the Company’s maximum obligation to Kyorin is $11.5 million, of which $1.0 million was paid during the year ended March 31, 2018 and is included in research and development expense in the accompanying consolidated statement of operation. No payments were made pursuant to this agreement during the year ended March 31, 2019. The remaining obligations under this agreement will be due upon achievement of certain regulatory milestones by Kyorin in Japan and the Company in the United States, subject to certain conditions. Additionally, the Company has granted Kyorin a right of first review and negotiation if the Company acquires the Japanese rights to any urology asset(s), which right expires in 2027. [C] Indemnities and guarantees: The Company has made certain indemnities, under which the Company may be required to make payments to an indemnified party, in relation to certain transactions. We indemnify our officers and directors to the maximum extent permitted under applicable laws. The duration of these indemnities varies and, in certain cases, is indefinite. These indemnities do not provide for any limitation of the maximum potential future payments we could be obligated to make. Historically, we have not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities in the accompanying consolidated balance sheets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11—Subsequent events [A] Operating lease – related party: In June 2019, the Company entered into a sublease agreement with our affiliate, RSI, for 2,784 square feet of office space located in Durham, North Carolina that expires in July 2025. The lease has scheduled rent increases each year Approximate future operating lease obligations under this lease agreement are as follows (in thousands): Years Ending March 31, Operating Lease 2020 $ 72 2021 88 2022 91 2023 93 2024 96 Thereafter 133 Total minimum operating lease payments $ 573 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | [A] Basis of presentation: The Company’s fiscal year ends on March 31. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) . Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). On September 11, 2018, the Company’s board of directors approved a 1-for-3.7453 reverse share split of the Company’s authorized and issued and outstanding common shares. The reverse share split increased par value to $0.000037453. The reverse split became effective on September 13, 2018. The accompanying consolidated financial statements and notes to the consolidated financial statements give retroactive effect to the reverse share split for all periods presented. |
Use of Estimates | [B] Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company regularly evaluates estimates and assumptions related to assets, liabilities, costs, expenses and compensation expense allocated to the Company under its services agreements with RSI and RSG, as well as share-based compensation, research and development costs and income taxes. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. |
Risks and Uncertainties | [C] Risks and uncertainties: The Company is subject to risks common to early stage companies in the biopharmaceutical industry including, but not limited to, uncertainties related to commercialization of products, regulatory approvals, dependence on key products, third-party service providers such as contract research organizations and contract manufacturing organizations, protection of intellectual property rights and the ability to make milestone, royalty or other payments due under any license, collaboration or supply agreements. |
Cash, Cash Equivalents and Restricted Cash | [D] : Cash and cash equivalents include cash deposits in banks and all highly liquid investments that are readily convertible to cash. The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains cash deposits and cash equivalents in highly-rated, federally-insured financial institutions in excess of federally insured limits. The Company has established guidelines relative to diversification and maturities to maintain liquidity and preservation of capital. The Company has not experienced any credit losses related to these financial instruments and does not believe that it is exposed to any significant credit risk related to these instruments. Restricted cash consists of legally restricted non-interest-bearing deposit accounts held as compensating balances against the Company’s corporate credit card program and an irrevocable standby letter of credit connected to an office lease entered into in November 2018 with an expiration date in 2026 (see Note 10) Restricted cash classified as a current asset consists of the restricted deposit account relating to the Company’s corporate credit card agreement. Restricted cash classified as a long-term asset consists of the restricted deposit account related to the irrevocable standby letter of credit. Cash as reported in the consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as presented on the consolidated balance sheets. Cash as reported in the consolidated statements of cash flows consists of (in thousands): March 31, 2019 March 31, 2018 Cash and cash equivalents $ 85,353 $ 7,194 Restricted cash 843 — Cash, cash equivalents and restricted cash $ 86,196 $ 7,194 |
Property and Equipment | [E] Property and equipment: Property and equipment, consisting of computers, equipment, furniture and fixtures and leasehold improvements, is recorded at cost. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed to operations as incurred. Upon disposal, retirement or sale, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in the consolidated results of operations. Depreciation is recorded for property and equipment using the straight-line method over the estimated useful lives of three to seven years, once the asset is installed and placed in service. Leasehold improvements are amortized using the straight-line method over the estimated useful life or remaining lease term, whichever is shorter. The Company reviews the recoverability of all long-lived assets, including the related useful lives, whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset might not be recoverable. Recoverability is measured by comparison of the book values of the assets to future net undiscounted cash flows that the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the book value of the assets exceed their fair value, which is measured based on the projected discounted future net cash flows arising from the assets. |
Deferred Offering Costs | [F] : Deferred offering costs consist of qualified legal, accounting, and other direct costs related to the Company’s efforts to raise capital through a public or private sale of the Company’s capital stock. These costs are deferred until the completion of the applicable offering, at which time such costs are reclassified to additional paid-in-capital as a reduction of the proceeds. The Company’s initial public offering costs were reclassified to additional paid-in capital upon the closing of the Company’s initial public offering on October 1, 2018. |
Debt Issuance Costs and Debt Discount | [G] Debt issuance costs and debt discount: Debt issuance costs include the costs of debt financings undertaken by the Company, including legal fees, accounting fees, and other direct costs of the financing. Debt issuance costs related to a recognized debt liability are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts, and are amortized to interest expense over the term of the related debt using the effective interest method. Further, debt discounts created as a result of the allocation of proceeds received from a debt issuance to warrants issued in conjunction with the debt issuance are amortized to interest expense under the effective interest method over the life of the recognized debt liability. |
Financial Instruments | [H] Financial instruments: The Company applies a fair value framework in order to measure and disclose its financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Fair values are determined by utilizing quoted prices for similar assets and liabilities in active markets or other market observable inputs such as interest rates and yield curves. • 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. To the extent the valuation is based on models or inputs that are less observable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments consist of cash, cash equivalents consisting of money market accounts, restricted cash, accounts payable, accrued expenses, amounts due to and from RSL and long-term debt. The carrying value of the Company’s long-term debt approximates fair value based on current interest rates for similar types of borrowings and is included in Level 2 of the fair value hierarchy. The remaining financial instruments are stated at their respective historical carrying amounts, which approximates fair value due to their short-term nature. |
Contingencies | [I] Contingencies: The Company may be, from time to time, a party to various disputes and claims arising from normal business activities. The Company continually assesses litigation to determine if an unfavorable outcome would lead to a probable loss or reasonably possible loss which could be estimated. In accordance with the guidance of the FASB on accounting for contingencies, the Company accrues for all contingencies at the earliest date at which the Company deems it probable that a liability has been incurred and the amount of such liability can be reasonably estimated. If the estimate of a probable loss is a range and no amount within the range is more likely than another, the Company accrues the minimum of the range. In the cases where the Company believes that a reasonably possible loss exists, the Company discloses the facts and circumstances of the litigation, including an estimable range, if possible. |
Research and Development Expense | [J] Research and development expense: Research and development costs are expensed as incurred. Payments for a product license prior to regulatory approval of the product and payments for milestones achieved prior to regulatory approval of the product are expensed in the period incurred as research and development. Milestone payments made in connection with regulatory approvals are capitalized and amortized to cost of product sales over the remaining useful life of the asset. Research and development expenses primarily consist of employee-related expenses, such as salaries, share-based compensation, benefits and travel expenses for research and development personnel, expenses from third parties who conduct research and development activities on behalf of the Company, the intellectual property and research and development materials acquired from Merck and ICI (see Note 3) and certain costs charged by RSI and RSG under their services agreements with the Company (see Note 6[A]). The estimated costs of research and development activities conducted by third-party service providers, which primarily include the conduct of clinical trials and contract manufacturing activities, are accrued over the service periods specified in the contracts and adjusted as necessary based upon an ongoing review of the level of effort and costs actually incurred. The estimate of the work completed is developed through discussions with internal personnel and external service providers as to the progress of stage of completion of the services and the agreed-upon fee to be paid for such services. As actual costs become known, the accrued estimates are adjusted. Such estimates are not expected to be materially different from amounts actually incurred, however the Company’s understanding of the status and timing of services performed, the number of subjects enrolled, and the rate of subject enrollment may vary from estimates and could result in reporting amounts that are higher or lower than incurred in any particular period. The estimate of accrued research and development expense is dependent, in part, upon the receipt of timely and accurate reporting from clinical research organizations and other third-party service providers. |
Leases | [K] Leases: At the inception of a lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. For operating leases, the Company recognizes rent expense on a straight-line basis over the lease term and records the difference between cash rent payments and the recognition of rent expense as a deferred liability. Where lease agreements contain rent escalation clauses, rent abatements and/or concessions, such as rent holidays and tenant improvement allowances, the Company applies them in the determination of straight-line rent expense over the lease term. Certain lease agreements also require the Company to make additional payments for taxes, insurance, and other operating expenses incurred during the lease period, which are expensed as incurred. |
Income Taxes | [L] Income taxes: The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. |
Share-based Compensation | [M] Share-based compensation: The Company recognizes share-based compensation expense related to stock options granted to employees based on the estimated fair value of the awards on the date of grant. The Company estimates the grant date fair value, and the resulting share-based compensation expense, for stock options that only have service vesting requirements or performance-based vesting requirements without market conditions using the Black-Scholes option-pricing model. The grant date fair value of the share-based awards with service vesting requirements is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. Determining the appropriate amount to expense for performance-based awards based on the achievement of stated goals requires judgment. The estimate of expense is revised periodically based on the probability of achieving the required performance targets and adjustments are made as appropriate. The cumulative impact of any revisions is reflected in the period of change. If any applicable financial performance goals are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. For performance-based awards with market conditions, the Company determines the fair value of awards as of the grant date using a Monte Carlo simulation model. The Company recognizes share-based compensation expense related to stock options granted to non-employees issued in exchange for services based on the estimated fair value of the awards on the date of grant. The Company estimates the grant date fair value, and the resulting share-based compensation expense, using the Black-Scholes option-pricing model; however, the fair value of the stock options granted to non-employees is remeasured each reporting period until the service is complete, and the resulting increase or decrease in value, if any, is recognized as expense or a reduction in previously recognized expense, respectively, during the period the related services are rendered. The Black-Scholes option-pricing model requires the use of subjective assumptions, which determine the fair value of share-based awards. These assumptions include: Expected term . The Company’s expected term represents the period that the share-based awards are expected to be outstanding. Since the Company has limited option exercise history, it has generally elected to estimate the expected life of an award based upon the Securities and Exchange Commission (“SEC”) approved “simplified method” (based on the mid-point between the vesting date and the end of the contractual term) noted under the provisions of Staff Accounting Bulletin (“SAB”) No. 107 with the continued use of this method extended under the provisions of SAB No. 110. For share-based awards granted to non-employees, the expected term represents the contractual term of the award. Expected volatility . Because the Company does not have an extended trading history for its common shares, the expected volatility was estimated using weighted-average measures of implied volatility and the historical volatility of its peer group of companies for a period equal to the expected life of the stock options. The Company’s peer group of publicly traded biopharmaceutical companies was chosen based on their similar size, stage in the life cycle or area of specialty. Risk-free interest rate . The risk-free interest rate is based on the rates paid on securities issued by the United States Treasury with a term approximating the expected life of the stock options. Expected dividend . The Company has never paid, and does not anticipate paying, cash dividends on its common shares. Therefore, the expected dividend yield was assumed to be zero. In addition to the Black-Scholes option-pricing model assumptions, the Company adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (“ASU No. 2016-09”) As part of the valuation of share-based compensation under the Black-Scholes option-pricing model, it is necessary for the Company to estimate the fair value of its common shares. Prior to the Company’s initial public offering, it was required to periodically estimate the fair value of its common shares when issuing options and in computing its estimated share-based compensation expense. Valuation of Privately-Held-Company Equity Securities Issued as Compensation In connection with the Company’s initial public offering, the Company reassessed the fair value of its options. Subsequent to the Company’s initial public offering, the estimated fair value of share-based payment awards has been determined as indicated in the preceding paragraphs. |
Foreign Currency | [N] : The Company has operations in the United States, the United Kingdom and Switzerland. The results of its non-U.S. dollar based functional currency operations are translated to U.S. dollars at the average exchange rates during the period. The Company’s assets and liabilities are translated using the current exchange rate as of the consolidated balance sheet date and shareholders’ equity is translated using historical rates. Adjustments resulting from the translation of the consolidated financial statements of the Company’s foreign functional currency subsidiaries into U.S. dollars are excluded from the determination of net loss and are accumulated in a separate component of shareholders’ equity. Foreign exchange transaction gains and losses are included in other income (expense) in the Company’s consolidated results of operations. |
Net Loss per Common Share | [O] : Basic net loss per common share is computed by dividing net loss applicable to common shareholder by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss applicable to common shareholders by the diluted weighted-average number of common shares outstanding during the period calculated in accordance with the treasury stock method. In periods in which the Company reports a net loss, all common share equivalents are deemed anti-dilutive such that basic net loss per common share and diluted net loss per common share are equal. Potentially dilutive common shares have been excluded from the diluted net loss per common share computations in all periods presented because such securities have an anti-dilutive effect on net loss per common share due to the Company’s net loss. There are no reconciling items used to calculate the weighted-average number of total common shares outstanding for basic and diluted net loss per common share data. At March 31, 2019 and 2018, potentially dilutive securities were as follows: March 31, 2019 2018 Options 4,058,866 1,737,838 Restricted stock units (unvested) 5,000 — Warrants 33,259 — Total 4,097,125 1,737,838 |
Recently Adopted Accounting Standards | [P] Recently adopted accounting standards : In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory The adoption of ASU No. 2016-16 on April 1, 2018 did not have a material impact on the Company's consolidated financial position, results of operations and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash (Topic 230) Entities must apply the guidance retrospectively to each period presented . In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB No. 118) Income Tax Accounting Implications of the Tax Cuts and Jobs Act |
Recently Issued Accounting Pronouncements | [Q] Recently issued accounting standards : In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) The Company plans to adopt this standard as of April 1, 2019 using the optional modified retrospective transition method. Upon adoption, the Company intends to apply the transition package of practical expedients allowed by the standard and to transition to the standard by recognizing a cumulative-effect adjustment to the opening balance of accumulated deficit. Comparative periods will not be restated. ASU No. 2016-02 is expected to impact the Company’s consolidated financial statements as the Company has certain operating lease arrangements for which the Company is the lessee. The Company has implemented a process to identify its outstanding lease portfolio and is currently evaluating its outstanding leases to determine the financial impact the new standard will have on its corresponding consolidated financial statements. The Company expects that the adoption of this standard will result in the recognition of an asset for the right to use a leased facility on the Company’s consolidated balance sheet, as well as the recognition of a corresponding lease liability. The Company plans to elect the following package of practical expedients when assessing the transition impact as the lessee as of April 1, 2019: (1) not to reassess whether any expired or existing contracts are or contain leases; (2) not to reassess the lease classification for any expired or existing leases; and (3) not to reassess initial direct costs for any existing leases. Leases with an initial term of 12 months or less will not be recorded on the consolidated balance sheet as the Company will recognize lease expense for these leases on a straight-line basis over the remaining lease term. The Company plans to elect to: (1) use the total lease term in its initial incremental borrowing rate calculation; (2) combine its lease and non-lease components and account for them as a single lease component; and (3) not apply the use of hindsight in determining the lease term when considering lessee options to extend or terminate the lease and to purchase the underlying asset. The Company expects its future financial statement disclosures for its leasing arrangements will be expanded to present additional qualitative and quantitative details. While the consolidated balance sheet presentation is expected to change, the Company does not expect a material change to the consolidated statements of operations, comprehensive loss or cash flows. In June 2018, the FASB issued ASU No. 2018-07, C ompensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting Entities must apply the guidance retrospectively with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash as reported in the consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as presented on the consolidated balance sheets. Cash as reported in the consolidated statements of cash flows consists of (in thousands): March 31, 2019 March 31, 2018 Cash and cash equivalents $ 85,353 $ 7,194 Restricted cash 843 — Cash, cash equivalents and restricted cash $ 86,196 $ 7,194 |
Schedule of Potentially Dilutive Securities | At March 31, 2019 and 2018, potentially dilutive securities were as follows: March 31, 2019 2018 Options 4,058,866 1,737,838 Restricted stock units (unvested) 5,000 — Warrants 33,259 — Total 4,097,125 1,737,838 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses at March 31, 2019 and 2018 consist of the following (in thousands): March 31, 2019 March 31, 2018 Research and development expenses $ 4,993 $ 2,482 General and administrative expenses 615 429 Bonuses and other compensation expenses 3,398 549 Professional services expenses 821 90 Other expenses 50 45 Total accrued expenses $ 9,877 $ 3,595 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Estimated Fair Value of Warrant Using Black-Scholes Option-Pricing Model | The Company estimated the fair value of the Warrant using the Black-Scholes option-pricing model based on the following key assumptions: Tranche 1 Exercise price $9.02 Common share price on date of issuance $10.50 Expected volatility 69.6% Contractual term, in years 7.00 Risk-free interest rate 2.55% Expected dividend yield —% |
Schedule of Debt Obligations | Outstanding debt obligations to Hercules Capital, Inc. are as follows (in thousands): March 31, 2019 Principal amount $ 15,000 End of term charge 638 Less: unamortized debt discount and issuance costs (2,104 ) Loan payable less unamortized debt discount and issuance costs 13,534 Less: current maturities — Long-term debt, net of unamortized debt discount and issuance costs $ 13,534 |
Schedule of Annual Maturities of Long-term Debt Excluding Interest and End of Term Charge | Annual maturities of long-term debt outstanding, excluding interest and the end of term charge, as of March 31, 2019 are as follows (in thousands): Years Ending March 31, 2020 $ — 2021 7,101 2022 7,899 Total $ 15,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Taxes and Related Tax Provision | The loss before income taxes and the related tax provision are as follows (in thousands): Year Ended March 31, 2019 2018 Loss before income taxes: United States $ (1,437 ) $ (159 ) Switzerland (107,905 ) (36,805 ) Bermuda (1,924 ) (81 ) Other (1) (33 ) 8 Total loss before income taxes $ (111,299 ) $ (37,037 ) Current taxes: United States $ 42 $ 36 Switzerland — — Bermuda — — Other (1) 5 1 Total current tax expense 47 37 Deferred taxes: United States — — Switzerland — — Bermuda — — Other (1) — — Total deferred tax expense — — Total income tax provision $ 47 $ 37 (1) Primarily United States state and United Kingdom activity. |
Schedule of Reconciliation of Income Tax Provision Computed at Bermuda Statutory Rate to Income Tax Provision Reflected in Consolidated Financial Statements | A reconciliation of income tax provision computed at the Bermuda statutory rate to income tax provision reflected in the consolidated financial statements is as follows (in thousands): Year Ended March 31, 2019 2018 Income tax provision at Bermuda statutory rate $ — — % $ — — % Foreign rate differential (2) (18,720 ) 16.82 (4,177 ) 11.28 Tax reform — — 39 (0.11 ) Other 22 (0.02 ) — — Valuation allowance 18,745 (16.84 ) 4,175 (11.27 ) Total income tax provision $ 47 (0.04 ) % $ 37 (0.10 ) % (2) Mainly related to current tax on United States operations including permanent and temporary differences (e.g. research and development credits, etc.) as well as operations in Switzerland and the United Kingdom at rates different than the Bermuda rate. |
Schedule of Components of Deferred Tax Assets (Liabilities) | Deferred taxes reflect the tax effects of the differences between the amounts recorded as assets and liabilities for financial reporting purposes and the comparable amounts recorded for income tax purposes. Significant components of the deferred tax assets (liabilities) at March 31, 2019 and 2018 are as follows (in thousands): March 31, 2019 March 31, 2018 Deferred tax assets: Research tax credits $ 4,081 $ 528 Intangibles 3,041 2,685 Net operating losses 18,052 3,745 Share-based compensation 805 87 Other 5 106 Subtotal 25,984 7,151 Valuation allowance (25,773 ) (7,044 ) Deferred tax liabilities: Depreciation (155 ) (107 ) Other (56 ) — Total deferred tax assets $ — $ — |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Estimated Fair Value of Each Stock Option on Date of Grant Using Black-Scholes Option Pricing Model | The Company estimated the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model applying the range of assumptions in the following table: Year Ended March 31, 2019 2018 Risk-free interest rate 2.53% - 3.06% 2.01% - 2.76% Expected term, in years 6.00 - 6.25 6.25 - 10.00 Expected volatility 65.6% - 68.4% 68.5% - 72.2% Expected dividend yield —% —% |
Summary of Option Activity | The following table presents a summary of stock option activity and data under the Company’s 2017 Plan through March 31, 2019 (in thousands, except share and per share data): Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options outstanding at March 31, 2018 1,737,838 $ 3.84 $ 2.46 9.58 $ — Granted 2,329,038 $ 7.79 $ 4.98 Forfeited (8,010 ) $ 6.33 $ 5.72 Options outstanding at March 31, 2019 4,058,866 $ 6.10 $ 3.90 9.13 $ 16,854 Options exercisable at March 31, 2019 622,017 $ 3.85 $ 2.47 8.59 $ 4,105 |
Summary of Restricted Stock Unit Activity | A summary of restricted stock unit activity under the Company’s 2017 Plan through March 31, 2019 is as follows: Number of Shares Unvested balance at March 31, 2018 — Granted 5,000 Unvested balance at March 31, 2019 5,000 |
Schedule of Share-based Compensation Expense | Share-based compensation expense was as follows (in thousands): Year Ended March 31, 2019 2018 Share-based compensation recognized as: Research and development $ 1,296 $ 2,477 General and administrative 2,682 694 Total $ 3,978 $ 3,171 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Operating Lease Obligation | Approximate future operating lease obligations (excluding the optional lease renewal term) as of March 31, 2019 are as follows (in thousands): Years Ending March 31, Operating Leases 2020 $ 455 2021 675 2022 692 2023 711 2024 731 Thereafter 1,662 Total minimum operating lease payments $ 4,926 Approximate future operating lease obligations under this lease agreement are as follows (in thousands): Years Ending March 31, Operating Lease 2020 $ 72 2021 88 2022 91 2023 93 2024 96 Thereafter 133 Total minimum operating lease payments $ 573 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Schedule of Future Operating Lease Obligation | Approximate future operating lease obligations (excluding the optional lease renewal term) as of March 31, 2019 are as follows (in thousands): Years Ending March 31, Operating Leases 2020 $ 455 2021 675 2022 692 2023 711 2024 731 Thereafter 1,662 Total minimum operating lease payments $ 4,926 Approximate future operating lease obligations under this lease agreement are as follows (in thousands): Years Ending March 31, Operating Lease 2020 $ 72 2021 88 2022 91 2023 93 2024 96 Thereafter 133 Total minimum operating lease payments $ 573 |
Description of Business and L_2
Description of Business and Liquidity - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019USD ($)Segment | Mar. 31, 2018USD ($) | |
Description Of Business And Liquidity [Line Items] | ||
Number of operating segments | Segment | 1 | |
Number of reportable segments | Segment | 1 | |
Cash and cash equivalents | $ | $ 85,353 | $ 7,194 |
Hercules Capital, Inc. | ||
Description Of Business And Liquidity [Line Items] | ||
Cash and cash equivalents | $ | $ 30,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Sep. 11, 2018$ / shares | Mar. 31, 2019$ / shares | Mar. 31, 2018$ / shares |
Significant Accounting Policies [Line Items] | |||
Share split of authorized, issued and outstanding shares | 0.2670 | ||
Common stock par value | $ 0.000037453 | $ 0.000037453 | $ 0.000037453 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment estimated useful life | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment estimated useful life | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 85,353 | $ 7,194 | |
Restricted cash | 843 | ||
Cash, cash equivalents and restricted cash | $ 86,196 | $ 7,194 | $ 4,767 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities (Details) - shares | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 4,097,125 | 1,737,838 |
Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 4,058,866 | 1,737,838 |
Restricted Stock Units (unvested) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 5,000 | |
Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 33,259 |
License Agreement - Additional
License Agreement - Additional Information (Details) - USG - USD ($) | Aug. 24, 2018 | Feb. 03, 2017 | Mar. 31, 2019 | Mar. 31, 2018 |
Merck Sharp & Dohme Corp | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Initial one-time, non-refundable and non-creditable payment | $ 25,000,000 | |||
Aggregate payment to be made upon achievement of certain development and regulatory milestone | 44,000,000 | |||
Aggregate payment to be made upon achievement of certain annual sales-based milestones | $ 80,000,000 | |||
Royalty obligation period | 15 years | |||
Amounts due to or paid | $ 0 | $ 0 | ||
Merck Sharp & Dohme Corp | Research and Development | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Initial one-time, non-refundable and non-creditable payment | 25,000,000 | |||
Ion Channel Innovations, LLC | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Initial one-time, non-refundable and non-creditable payment | $ 250,000 | |||
Aggregate payment to be made upon achievement of certain development and regulatory milestone | 35,000,000 | |||
Aggregate payment to be made upon achievement of certain annual sales-based milestones | $ 60,000,000 | |||
Ion Channel Innovations, LLC | Research and Development | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Initial one-time, non-refundable and non-creditable payment | $ 250,000 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Payables And Accruals [Abstract] | ||
Research and development expenses | $ 4,993 | $ 2,482 |
General and administrative expenses | 615 | 429 |
Bonuses and other compensation expenses | 3,398 | 549 |
Professional services expenses | 821 | 90 |
Other expenses | 50 | 45 |
Total accrued expenses | $ 9,877 | $ 3,595 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 20, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Amortized debt discount and issuance costs | $ 92 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Interest-only Period | 12 months | |
Maximum extended interest-only period | 24 months | |
Debt instrument maturity period | 36 months | |
Debt instrument maximum extend maturity period | 18 months | |
Percentage of prepayment charge in first twelve months | 2.00% | |
Percentage of prepayment charge in second twelve months | 1.00% | |
Percentage of prepayment charge, thereafter | 0.00% | |
Percentage of repayment charge obligated to pay an end of term | 4.25% | |
Term Loan | Hercules Loan Agreement | Interest Expense | ||
Debt Instrument [Line Items] | ||
Amortized debt discount and issuance costs | $ 100 | |
Term Loan | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 12.15% | |
Term Loan | Maximum | Prime Rate | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 4.65% | |
Term Loan | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 10.15% | |
Administrative Agent | Term Loan | ||
Debt Instrument [Line Items] | ||
Percentage of warrants to purchase number of common shares | 2.00% | |
Common shares exercise price | $ 9.02 | |
Hercules Loan Agreement | ||
Debt Instrument [Line Items] | ||
Proceeds from Long-term debt | $ 14,100 | |
Remaining borrowing capacity | $ 85,000 | |
Additional default interest rate | 5.00% | |
Hercules Loan Agreement | First Tranche | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 15,000 | |
Hercules Loan Agreement | Administrative Agent | Term Loan | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | 100,000 | |
Tranche 1 | Term Loan | Hercules Loan Agreement | ||
Debt Instrument [Line Items] | ||
Debt discount | 1,800 | |
Debt financing costs | $ 400 | |
Tranche 1 | Administrative Agent | Term Loan | ||
Debt Instrument [Line Items] | ||
Common shares exercise price | $ 9.02 | |
Warrants to purchase number of common shares | 33,259 | |
Fair value of warrants issued | $ 200 |
Long-term Debt - Schedule of Es
Long-term Debt - Schedule of Estimated Fair Value of Warrant Using Black-Scholes Option-Pricing Model (Details) - Tranche 1 | Mar. 31, 2019$ / shares |
Debt Instrument [Line Items] | |
Contractual term, in years | 7 years |
Exercise Price | |
Debt Instrument [Line Items] | |
Estimated fair value of warrant assumptions | 9.02 |
Common Share Price on Date of Issuance | |
Debt Instrument [Line Items] | |
Estimated fair value of warrant assumptions | 10.50 |
Expected Volatility | |
Debt Instrument [Line Items] | |
Estimated fair value of warrant assumptions | 69.6 |
Risk-free Interest Rate | |
Debt Instrument [Line Items] | |
Estimated fair value of warrant assumptions | 2.55 |
Long-term Debt - Schedule of De
Long-term Debt - Schedule of Debt Obligations (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Principal amount | $ 15,000 |
Long-term debt | 13,534 |
Hercules Loan Agreement | Term Loan | |
Debt Instrument [Line Items] | |
Principal amount | 15,000 |
End of term charge | 638 |
Less: unamortized debt discount and issuance costs | (2,104) |
Loan payable less unamortized debt discount and issuance costs | 13,534 |
Long-term debt | $ 13,534 |
Long-term Debt - Schedule of An
Long-term Debt - Schedule of Annual Maturities of Long-term Debt Excluding Interest and End of Term Charge (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 7,101 |
2022 | 7,899 |
Total | $ 15,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Jul. 09, 2018 | May 22, 2018 | Jun. 12, 2017 | May 31, 2017 | Jul. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 31, 2018 | Mar. 31, 2017 |
Related Party Transaction [Line Items] | |||||||||
Deemed capital contribution receivable | $ 1,310,000 | ||||||||
Services Agreement | RSI | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement written notice of termination period | 90 days | ||||||||
Services Agreement | RSG | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement written notice of termination period | 90 days | ||||||||
Services Agreement | RSI and RSG | |||||||||
Related Party Transaction [Line Items] | |||||||||
Costs allocated from related party | $ 3,400,000 | 6,300,000 | |||||||
Related party transaction expenses, amount included in research and development expenses | 2,200,000 | 5,200,000 | |||||||
Related party transaction expenses, amount included in general and administrative Expense | $ 1,200,000 | 1,100,000 | |||||||
China Intellectual Property Purchase Agreement | USG and RSG | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amounts of transactions with related party | $ 1,800,000 | ||||||||
Carrying value of the intellectual property rights | $ 0 | ||||||||
Deemed capital contribution received | $ 500,000 | ||||||||
Deemed capital contribution receivable | $ 1,300,000 | $ 1,300,000 | |||||||
Cooperation Agreement | RSL | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amounts of transactions with related party | $ 0 | ||||||||
Data Sharing Agreement | USG | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement written notice of termination period | 30 days | ||||||||
Amounts of transactions with related party | $ 0 | ||||||||
Agreement term | 2 years | ||||||||
Data Sharing Agreement | USG | Upon Change Of Control Of Either Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement written notice of termination period | 60 days | ||||||||
Data Sharing Agreement | USG | For Uncured Material Breach By Other Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement written notice of termination period | 90 days |
Shareholder's Equity - Addition
Shareholder's Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 18, 2018 | Oct. 01, 2018 | Sep. 25, 2018 | Jun. 01, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 11, 2018 | Mar. 31, 2017 |
Subsidiary Sale Of Stock [Line Items] | ||||||||
Common shares, authorized | 267,001,308 | 267,001,308 | ||||||
Common shares, par value | $ 0.000037453 | $ 0.000037453 | $ 0.000037453 | |||||
Net proceeds from initial public offering, inclusive of over-allotment exercise | $ 132,900 | |||||||
Underwriting discounts and commissions | 10,100 | |||||||
Offering expenses | $ 1,200 | |||||||
Capital contributions | $ 41,631 | $ 37,035 | ||||||
Common shares, issued | 30,322,911 | 20,025,098 | ||||||
Common shares, outstanding | 30,322,911 | 20,025,098 | ||||||
Common Shares | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Common shares, outstanding | 30,322,911 | 20,025,098 | 2,670,013 | |||||
Initial Public Offering | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Stock issued, Value | $ 132,931 | |||||||
Initial Public Offering | Common Shares | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Shares issued | 10,000,000 | 10,297,813 | ||||||
Shares issued, price per share | $ 14 | |||||||
Over-allotment option | Common Shares | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Shares issued | 297,813 | |||||||
Shares issued, price per share | $ 14 | |||||||
RSL | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Common shares, par value | $ 0.000037453 | |||||||
Shares issued | 0 | |||||||
Capital contributions | $ 40,300 | $ 36,500 | ||||||
Ownership percentage of shares issued and outstanding | 100.00% | |||||||
Common shares, issued | 20,025,098 | |||||||
Common shares, outstanding | 20,025,098 | |||||||
RSL | Common Shares | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Shares issued | 17,355,085 | |||||||
Stock issued, Value | $ 650 | |||||||
RSL | Initial Public Offering | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Shares issued | 2,678,571 | |||||||
Shares issued, price per share | $ 14 | |||||||
RSG | China Intellectual Property Purchase Agreement | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Assigned rights, titles, claims interests and obligations for cash consideration | $ 1,800 | |||||||
Assigned rights, titles, claims interests and obligations for cash consideration, received | 1,300 | $ 500 | ||||||
USG and RSG | China Intellectual Property Purchase Agreement | ||||||||
Subsidiary Sale Of Stock [Line Items] | ||||||||
Consideration recorded as a capital contribution from parent | $ 1,800 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Taxes and Related Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Loss before income taxes: | |||
Total loss before income taxes | $ (111,299) | $ (37,037) | |
Current taxes: | |||
Total current tax expense | 47 | 37 | |
Deferred taxes: | |||
Provision for income taxes | 47 | 37 | |
United States | |||
Loss before income taxes: | |||
Total loss before income taxes | (1,437) | (159) | |
Current taxes: | |||
Total current tax expense | 42 | 36 | |
Switzerland | |||
Loss before income taxes: | |||
Total loss before income taxes | (107,905) | (36,805) | |
Bermuda | |||
Loss before income taxes: | |||
Total loss before income taxes | (1,924) | (81) | |
Other | |||
Loss before income taxes: | |||
Total loss before income taxes | [1] | (33) | 8 |
Current taxes: | |||
Total current tax expense | [1] | $ 5 | $ 1 |
[1] | (1)Primarily United States state and United Kingdom activity. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes [Line Items] | ||
Effective tax rate, percent | (0.04%) | (0.10%) |
Valuation allowance | $ 25,773,000 | $ 7,044,000 |
Increase in valuation allowance | 18,700,000 | 4,100,000 |
Uncertain tax benefits | 0 | 0 |
Switzerland | ||
Income Taxes [Line Items] | ||
Net operating loss | $ 136,000,000 | |
Net operating loss carryforwards expiration beginning year | 2024 | |
United Kingdom | ||
Income Taxes [Line Items] | ||
Net operating loss | $ 1,900,000 | |
United States | Research and Development | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | $ 4,100,000 | |
Tax credit carryforwards expiration beginning year | 2037 | |
Prepaid Expenses and Other Current Assets | ||
Income Taxes [Line Items] | ||
Income tax receivable | $ 100,000 | |
Accrued Expenses | ||
Income Taxes [Line Items] | ||
Income tax payable | $ (20,000) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Provision Computed at Bermuda Statutory Rate to Income Tax Provision Reflected in Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Income Tax Disclosure [Abstract] | |||
Foreign rate differential | [1] | $ (18,720) | $ (4,177) |
Tax reform | 39 | ||
Other | 22 | ||
Valuation allowance | 18,745 | 4,175 | |
Total income tax provision | $ 47 | $ 37 | |
Foreign rate differential | [1] | 16.82% | 11.28% |
Tax reform | (0.11%) | ||
Other | (0.02%) | ||
Valuation allowance | (16.84%) | (11.27%) | |
Total income tax provision | (0.04%) | (0.10%) | |
[1] | (2)Mainly related to current tax on United States operations including permanent and temporary differences (e.g. research and development credits, etc.) as well as operations in Switzerland and the United Kingdom at rates different than the Bermuda rate. |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred tax assets: | ||
Research tax credits | $ 4,081 | $ 528 |
Intangibles | 3,041 | 2,685 |
Net operating losses | 18,052 | 3,745 |
Share-based compensation | 805 | 87 |
Other | 5 | 106 |
Subtotal | 25,984 | 7,151 |
Valuation allowance | (25,773) | (7,044) |
Deferred tax liabilities: | ||
Depreciation | (155) | $ (107) |
Other | $ (56) |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) | Nov. 01, 2018 | Jun. 15, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 01, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares vested | 622,017 | ||||
Number of shares exercisable | 622,017 | ||||
Share-based compensation expense | $ 3,978,000 | $ 3,171,000 | |||
Unrecognized compensation expense related to non-vested options | 13,100,000 | ||||
RSL to RSL, RSI and RSG Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 600,000 | 2,800,000 | |||
2017 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional shares for grant, approved | 1,212,916 | ||||
Increase in common shares reserved for future issuance, percentage of common shares outstanding | 4.00% | ||||
Increase in number of common shares reserved for issuance period, description | The number of common shares reserved for issuance under the 2017 Plan automatically increases on November 1 of each year, commencing on November 1, 2018 and ending on November 1, 2028, in an amount equal to 4% of the total number of the Company’s common shares outstanding on the last day of the preceding month, or by a lesser number of common shares as may be determined by the Company’s Board of Directors prior to any such increase date. | ||||
Number of shares exercisable | 622,017 | ||||
Number of options granted | 2,329,038 | ||||
Weighted-average exercise price | $ 7.79 | ||||
Weighted-average grant date fair value | $ 4.98 | ||||
2017 Equity Incentive Plan | Employees and Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 2,329,038 | ||||
Weighted-average exercise price | $ 7.79 | ||||
Weighted-average grant date fair value | $ 4.98 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to non-vested options, weighted-average service period | 3 years 2 months 15 days | ||||
Stock Options | 2017 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares reserved for grant | 2,002,509 | ||||
Common shares available for future issuance | 219,565 | ||||
Stock Options | 2017 Equity Incentive Plan | Common Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional shares for grant, approved | 1,068,006 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant-date fair value | $ 7.84 | ||||
Shares granted | 5,000 | ||||
Restricted Stock Units | Principal Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 0 | $ 0 | |||
Shares granted | 66,845 | ||||
Awards requisite service period | 8 years | ||||
Unrecognized compensation expense | 900,000 | ||||
Stock Option and Restricted Stock Units | Employees, Directors and Consultants | General and Administrative Expenses and Research and Development Expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 3,400,000 | $ 400,000 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Estimated Fair Value of Each Stock Option on Date of Grant Using Black-Scholes Option Pricing Model (Details) - Stock Options | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate, Minimum | 2.53% | 2.01% |
Risk-free interest rate, Maximum | 3.06% | 2.76% |
Expected volatility, Minimum | 65.60% | 68.50% |
Expected volatility, Maximum | 68.40% | 72.20% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term, in years | 6 years | 6 years 3 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term, in years | 6 years 3 months | 10 years |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options, Options exercisable at March 31, 2019 | 622,017 | |
2017 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options, Options outstanding at March 31, 2018 | 1,737,838 | |
Number of Options, Granted | 2,329,038 | |
Number of Options, Forfeited | (8,010) | |
Number of Options, Options outstanding at March 31, 2019 | 4,058,866 | 1,737,838 |
Number of Options, Options exercisable at March 31, 2019 | 622,017 | |
Weighted Average Exercise Price, Options outstanding at March 31, 2018 | $ 3.84 | |
Weighted Average Exercise Price, Granted | 7.79 | |
Weighted Average Exercise Price, Forfeited | 6.33 | |
Weighted Average Exercise Price, Options outstanding at March 31, 2019 | 6.10 | $ 3.84 |
Weighted Average Exercise Price, Options exercisable at March 31, 2019 | 3.85 | |
Weighted Average Grant Date Fair Value, Options outstanding at March 31, 2018 | 2.46 | |
Weighted Average Grant Date Fair Value, Granted | 4.98 | |
Weighted Average Grant Date Fair Value, Forfeited | 5.72 | |
Weighted Average Grant Date Fair Value, Options outstanding at March 31, 2019 | 3.90 | $ 2.46 |
Weighted Average Grant Date Fair Value, Options exercisable at March 31, 2019 | $ 2.47 | |
Options outstanding at March 31, 2018 | 9 years 1 month 17 days | 9 years 6 months 29 days |
Weighted Average Remaining Contractual Life, Options exercisable at March 31, 2019 | 8 years 7 months 2 days | |
Aggregate Intrinsic Value, Options outstanding | $ 16,854 | |
Aggregate Intrinsic Value, Options exercisable at March 31, 2019 | $ 4,105 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units | 12 Months Ended |
Mar. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 5,000 |
Unvested balance at March 31, 2019 | 5,000 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Share-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation recognized | $ 3,978 | $ 3,171 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation recognized | 1,296 | 2,477 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation recognized | $ 2,682 | $ 694 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Sep. 01, 2017USD ($) | Nov. 30, 2018ft² | Mar. 31, 2019USD ($)ft² | Mar. 31, 2018USD ($) | Aug. 24, 2017USD ($) |
Commitments And Contingencies [Line Items] | |||||
Area of office space | ft² | 21,489 | 8,038 | |||
Operating lease obligations terminated period | 2019-06 | ||||
Term of contract | 7 years | ||||
Option to terminate lease | with an option to terminate after five years | ||||
Option to terminate, years | 5 years | ||||
Additional term of contract | 5 years | ||||
Description of lessee leasing arrangements, operating leases | The lease has scheduled rent increases each year and the Company has the option to extend the lease term for an additional five years. The lease commenced in June 2019. | ||||
Rent expense | $ 300,000 | $ 100,000 | |||
Codexis Agreement | |||||
Commitments And Contingencies [Line Items] | |||||
Milestone payments | $ 500,000 | 0 | 0 | ||
Codexis Agreement | Maximum | |||||
Commitments And Contingencies [Line Items] | |||||
Minimum purchase commitments | $ 3,750,000 | ||||
Kyorin Agreement | |||||
Commitments And Contingencies [Line Items] | |||||
Collaboration agreement maximum obligation | $ 0 | $ 11,500,000 | |||
Collaborative arrangement payments to collaborator | $ 1,000,000 | ||||
Irvine, California | |||||
Commitments And Contingencies [Line Items] | |||||
Lease agreement, expiration date | 2020-02 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Operating Lease Obligation (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 455 |
2021 | 675 |
2022 | 692 |
2023 | 711 |
2024 | 731 |
Thereafter | 1,662 |
Total minimum operating lease payments | $ 4,926 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - ft² | Jun. 14, 2019 | Mar. 31, 2019 | Nov. 30, 2018 |
Subsequent Event [Line Items] | |||
Area of office space | 8,038 | 21,489 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Area of office space | 2,784 | ||
Subsequent Event [Member] | Durham, North Carolina [Member] | |||
Subsequent Event [Line Items] | |||
Lease agreement, expiration date | Jul. 31, 2025 |
Subsequent Events - Schedule of
Subsequent Events - Schedule of Future Operating Lease Obligation (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Subsequent Event [Line Items] | |
2020 | $ 455 |
2021 | 675 |
2022 | 692 |
2023 | 711 |
2024 | 731 |
Thereafter | 1,662 |
Total minimum operating lease payments | 4,926 |
RSI | Sublease of Office Space, Located in Durham, North Carolina | |
Subsequent Event [Line Items] | |
2020 | 72 |
2021 | 88 |
2022 | 91 |
2023 | 93 |
2024 | 96 |
Thereafter | 133 |
Total minimum operating lease payments | $ 573 |