Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 09, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | ABEONA THERAPEUTICS INC. | |
Entity Central Index Key | 318,306 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | ABEO | |
Entity Common Stock, Shares Outstanding | 47,943,285 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 49,990,000 | $ 137,750,000 |
Marketable securities | 69,852,000 | 0 |
Receivables | 47,000 | 107,000 |
Prepaid expenses and other current assets | 1,937,000 | 2,735,000 |
Total current assets | 121,826,000 | 140,592,000 |
Property and equipment, net | 8,007,000 | 1,374,000 |
Licensed technology, net | 3,803,000 | 3,977,000 |
Goodwill | 32,466,000 | 32,466,000 |
Other assets and restricted cash | 595,000 | 357,000 |
Total assets | 166,697,000 | 178,766,000 |
Current liabilities | ||
Accounts payable | 5,783,000 | 2,393,000 |
Current portion of deferred revenue | 0 | 3,214,000 |
Total current liabilities | 5,783,000 | 5,607,000 |
Deferred revenue, net of current portion | 0 | 3,061,000 |
Total liabilities | 5,783,000 | 8,668,000 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock - $.01 par value; authorized 200,000,000 shares; issued, 47,327,785 at June 30, 2018 and 46,888,108 at December 31, 2017 | 473,000 | 469,000 |
Additional paid-in capital | 536,733,000 | 529,421,000 |
Accumulated deficit | (376,292,000) | (359,792,000) |
Total stockholders' equity | 160,914,000 | 170,098,000 |
Total liabilities and stockholders' equity | $ 166,697,000 | $ 178,766,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 47,327,785 | 46,888,108 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Total revenues | $ 819,000 | $ 217,000 | $ 3,417,000 | $ 403,000 |
Expenses | ||||
Research and development | 7,916,000 | 5,808,000 | 16,078,000 | 8,006,000 |
General and administrative | 4,627,000 | 2,642,000 | 7,505,000 | 5,664,000 |
Depreciation and amortization | 290,000 | 207,000 | 464,000 | 457,000 |
Total expenses | 12,833,000 | 8,657,000 | 24,047,000 | 14,127,000 |
Loss from operations | (12,014,000) | (8,440,000) | (20,630,000) | (13,724,000) |
Interest and miscellaneous income | 317,000 | 164,000 | 473,000 | 203,000 |
Interest and other expense | (3,000) | (3,000) | (6,000) | (5,000) |
Total non operating income (expense) | 314,000 | 161,000 | 467,000 | 198,000 |
Net loss | $ (11,700,000) | $ (8,279,000) | $ (20,163,000) | $ (13,526,000) |
Basic and diluted loss per common share (in dollars per share) | $ (0.25) | $ (0.21) | $ (0.43) | $ (0.34) |
Weighted average number of common shares outstanding (in shares) | 47,303,518 | 40,270,879 | 47,182,691 | 40,262,824 |
Grant [Member] | ||||
Revenues | ||||
Total revenues | $ 802,000 | $ 0 | $ 3,350,000 | $ 0 |
Royalty [Member] | ||||
Revenues | ||||
Total revenues | 17,000 | 67,000 | 67,000 | 102,000 |
License [Member] | ||||
Revenues | ||||
Total revenues | $ 0 | $ 150,000 | $ 0 | $ 301,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated deficit [Member] |
Balance at Dec. 31, 2017 | $ 170,098,000 | $ 469,000 | $ 529,421,000 | $ (359,792,000) |
Balance (in shares) at Dec. 31, 2017 | 46,888,108 | |||
Cumulative effect adjustment of ASC 606 on January 1, 2018 | 3,663,000 | $ 0 | 0 | 3,663,000 |
Stock based compensation expense | 1,900,000 | 0 | 1,900,000 | 0 |
Vesting of restricted common stock issued to employees | 172,000 | 0 | 172,000 | 0 |
Common stock issued for cash exercise of options | 1,685,000 | $ 3,000 | 1,682,000 | 0 |
Common stock issued for cash exercise of options (in shares) | 267,196 | |||
Exercise of $5.00 warrants | 144,000 | $ 0 | 144,000 | 0 |
Exercise of $5.00 warrants (in shares) | 28,874 | |||
Cashless warrant exercises | 0 | $ 0 | 0 | 0 |
Cashless warrant exercises (in shares) | 48,762 | |||
Net loss | (8,463,000) | $ 0 | 0 | (8,463,000) |
Balance at Mar. 31, 2018 | 169,199,000 | $ 472,000 | 533,319,000 | (364,592,000) |
Balance (in shares) at Mar. 31, 2018 | 47,232,940 | |||
Balance at Dec. 31, 2017 | 170,098,000 | $ 469,000 | 529,421,000 | (359,792,000) |
Balance (in shares) at Dec. 31, 2017 | 46,888,108 | |||
Net loss | (20,163,000) | |||
Balance at Jun. 30, 2018 | 160,914,000 | $ 473,000 | 536,733,000 | (376,292,000) |
Balance (in shares) at Jun. 30, 2018 | 47,327,785 | |||
Balance at Mar. 31, 2018 | 169,199,000 | $ 472,000 | 533,319,000 | (364,592,000) |
Balance (in shares) at Mar. 31, 2018 | 47,232,940 | |||
Stock based compensation expense | 2,673,000 | $ 0 | 2,673,000 | 0 |
Vesting of restricted common stock issued to employees | 172,000 | 0 | 172,000 | 0 |
Common stock issued for cash exercise of options | 481,000 | $ 1,000 | 480,000 | 0 |
Common stock issued for cash exercise of options (in shares) | 76,956 | |||
Exercise of $5.00 warrants | 89,000 | $ 0 | 89,000 | 0 |
Exercise of $5.00 warrants (in shares) | 17,889 | |||
Net loss | (11,700,000) | $ 0 | 0 | (11,700,000) |
Balance at Jun. 30, 2018 | $ 160,914,000 | $ 473,000 | $ 536,733,000 | $ (376,292,000) |
Balance (in shares) at Jun. 30, 2018 | 47,327,785 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | Jun. 30, 2018 | Mar. 31, 2018 |
Dollar Five Warrant [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5 | $ 5 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (20,163,000) | $ (13,526,000) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 464,000 | 457,000 |
Stock option compensation expense | 4,573,000 | 2,735,000 |
Restricted common stock expense issued to directors and employees | 344,000 | 686,000 |
Net gain on write off of licensed technology | 0 | (127,000) |
Change in operating assets and liabilities: | ||
Receivables | 60,000 | 27,000 |
Prepaid expenses and other current assets | 798,000 | (712,000) |
Other assets | 42,000 | 0 |
Accounts payable and accrued expenses | 3,390,000 | (77,000) |
Deferred revenue | (2,612,000) | (302,000) |
Net cash used in operating activities | (13,104,000) | (10,839,000) |
Cash flows from investing activities: | ||
Capital expenditures | (6,923,000) | (84,000) |
Short term investments | (69,852,000) | 0 |
Net cash used in investing activities | (76,775,000) | (84,000) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 2,166,000 | 85,000 |
Net cash provided by financing activities | 2,399,000 | 85,000 |
Net decrease in cash, cash equivalents and restricted cash | (87,480,000) | (10,838,000) |
Cash, cash equivalents and restricted cash at beginning of period | 138,030,000 | 69,142,000 |
Cash, cash equivalents and restricted cash at end of period | 50,550,000 | 58,304,000 |
Supplemental disclosure: | ||
Cash and cash equivalents | 49,990,000 | 58,304,000 |
Restricted cash | 560,000 | 0 |
Total cash, cash equivalents and restricted cash | 50,550,000 | 58,304,000 |
Write off of licensed asset and corresponding liability | 0 | 4,000,000 |
Cash paid for interest | 6,000 | 5,000 |
Dollar Five Warrant [Member] | ||
Cash flows from financing activities: | ||
Proceeds from Warrant Exercises | $ 233,000 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Parenthetical) - $ / shares | Jun. 30, 2018 | Mar. 31, 2018 |
Dollar Five Warrant [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5 | $ 5 |
Interim Financial Statements
Interim Financial Statements | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | (1) Interim Financial Statements The condensed consolidated balance sheet as of June 30, 2018, the condensed consolidated statements of operations for the three and six months ended June 30, 2018 and 2017, the condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2018, and the condensed consolidated statements of cash flows for the six months ended June 30, 2018 and 2017, were prepared by management without audit. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, except as otherwise disclosed, necessary for the fair presentation of the financial position, results of operations, and changes in financial position for such periods, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these interim financial statements be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for the period ended June 30, 2018 are not necessarily indicative of the operating results may be expected for a full year. The condensed consolidated balance sheet as of December 31, 2017 contains financial information taken from the audited Abeona consolidated financial statements as of that date. As of June 30, 2018, we had 5,895,135 options and 2,820,687 warrants that were not included in the EPS calculation as their effect would be antidilutive. |
New Accounting Standards Implem
New Accounting Standards Implemented | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards Implemented | (2) New Accounting Standards Implemented Revenue Recognition Effective January 1, 2018, we adopted ASC 606 using the modified retrospective transition method. The cumulative effect of applying the standard was an increase of $3.7 million to stockholders’ equity as of January 1, 2018. Our statement of operations for the quarterly period ended June 30, 2018 and our balance sheet as of June 30, 2018 are presented under ASC 606, while our statement of operations for the second quarter and six months ended June 30, 2017 and our balance sheet as of December 31, 2017 are presented under ASC 605. See below for disclosure of the impact of the adoption of ASC 606 on our statement of operations and balance sheet for the quarterly period ended June 30, 2018, and the effect of changes made to our consolidated balance sheet as of January 1, 2018. The table below presents the cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet due to the adoption of ASC 606. Balance Sheet (in thousands) December 31, 2017, Adjustments Due January 1, 2018 Liabilities Current liabilities Current portion of deferred revenue $ 3,214 $ (602 ) $ 2,612 Total current liabilities 3,214 (602 ) 2,612 Deferred revenue, net of current portion 3,061 (3,061 ) - Total liabilities 8,668 (3,663 ) 5,005 Stockholders’ Equity Accumulated deficit (359,792 ) 3,663 (356,129 ) Total equity $ 170,098 $ - $ 170,098 The table below presents the impact of the adoption of ASC 606 on our statement of operations. Second Quarter Ended June 30, 2018 STATEMENT OF OPERATIONS (in thousands except per share amounts) Under Effect of As Reported Revenues License revenues $ 150 $ (150 ) $ - Total revenues 969 (150 ) 819 Loss from operations $ (11,864 ) $ (150 ) $ (12,014 ) Net loss $ (11,550 ) $ (150 ) $ (11,700 ) Basic and diluted loss per common share $ (0.25 ) $ 0.00 $ (0.25 ) Six Months Ended June 30, 2018 STATEMENT OF OPERATIONS (in thousands except per share amounts) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenues License revenues $ 301 $ (301 ) $ - Total revenues 3,718 (301 ) 3,417 Loss from operations $ (20,329 ) $ (301 ) $ (20,630 ) Net loss $ (19,862 ) $ (301 ) $ (20,163 ) Basic and diluted loss per common share $ (0.42 ) $ (0.01 ) $ (0.43 ) The table below presents the impact of the adoption of ASC 606 on our balance sheet. June 30, 2018 Balance Sheet (in thousands) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Liabilities and Stockholders’ Equity Current liabilities Current portion of deferred revenue $ 602 $ (602 ) $ - Total current liabilities 6,385 (602 ) 5,783 Deferred revenue, net of current portion 2,760 (2,760 ) - Total liabilities 9,145 (3,362 ) 5,783 Stockholders’ Equity Accumulated deficit (379,254 ) 3,662 (375,829 ) Total stockholders’ equity $ 164,256 $ (3,662 ) $ 160,914 We received upfront cash payments for licenses of our technology in years 2008-2014. The revenue was recognized straight-line over the life of the patent. Our obligation was performed at the time the license was granted. Following the revenue recognition policies in accordance with ASC 606, we decreased the accumulated deficit by $3,663,000 as of January 1, 2018 and decreased deferred revenue by the same amount. Royalty revenues will continue to be recognized in the period of sales. Royalties recognized in the second quarter of 2018 are $17,000 and for the first six months of 2018 are $67,000. On October 16, 2017, we announced a collaborative agreement between nine Sanfilippo foundations to provide up to approximately $13.85 million of grants to Abeona in installments for the advancement of the Company’s clinical stage gene therapies for MPS IIIA and MPS IIIB, subject to the achievement of certain milestones. As of June 30, 2018, we received $3.4 million in grants ($2.6 million in the fourth quarter 2017 and $0.8 million in the six months of 2018) and recorded them first as deferred revenue. We recorded $2.6 million of the $3.4 million in grants as revenue in the first quarter of 2018, and we recorded $0.8 million in grants as revenue in the second quarter of 2018. We recorded revenue for Foundation Grants of $802,000 in the second quarter of 2018 and no revenues for the same period of 2017, an increase of $802,000. We recorded revenue for Foundation Grants of $3,350,000 in the first six months of 2018 and no revenues for the same period of 2017, an increase of $3,350,000. We record revenue to match expenses for the advancement of the Company’s clinical stage gene therapies for MPS IIIA and MPS IIIB. Restricted cash disclosure In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash |
Short Term Investments
Short Term Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | (3) Short Term Investments The following table summarizes the available-for-sale investments held June 30, 2018. There were no available-for-sale investments in prior periods. Description Fair Value June 30, 2018 U.S. government agency securities and treasuries $ 69,852,000 The amortized cost of the available-for-sale investments is adjusted for amortization of premiums and accretion of discounts to maturity. There were no material realized gains or losses recognized on the sale or maturity of available-for-sale investments during the three or six months ended June 30, 2018 . |
Licensed Technology
Licensed Technology | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Licensed Technology | (4) Licensed Technology On May 15, 2015, we acquired Abeona Therapeutics LLC which had an exclusive license through Nationwide Children’s Hospital to the AB-101 and AB-102 patent portfolios for developing treatments for patients with Sanfilippo Syndrome Type A and Type B. The license is amortized over the life of the license of 20 years. On August 3, 2016, We also entered into a license with Stanford for the AAV-based gene therapy EB-201 (AAV DJ COL7A1) technology, and we perform preclinical development and perform clinical trials of a gene therapy treatment for EB based upon such in-licensed technology. EB-201 (AAV DJ COL7A1) is a pre-clinical candidate targeting a novel, AAV-mediated gene editing and delivery approach (known as homologous recombination) to correct gene mutations in skin cells (keratinocytes) for patients with . The licenses are amortized over the life of the license of 20 years. Licensed technology consists of the following June 30, 2018 December 31, 2017 Gross carrying value Accumulated amortization Gross carrying value Accumulated Amortization Amortizable intangible assets Licensed technology $ 4,608 $ 805 $ 4,608 $ 631 Amortization expense related to intangible assets totaled $87,000 and $174,000 for the three and six months ended June 30, 2018, respectively, and totaled $158,000 and $361,000 for the three and six months ended June 30, 2017, respectively. The aggregate estimated amortization expense for intangible assets remaining as of June 30, 2018 is as follows (in thousands): 2018 $ 172 2019 346 2020 346 2021 346 2022 346 over 5 years 2,247 Total $ 3,803 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (5) Fair Value Measurements We calculate the fair value of our assets and liabilities qualify as financial instruments and include additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of receivables, prepaids and other and accounts payable approximate their carrying amounts due to the relatively short maturity of these instruments. U.S. GAAP defines fair value 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 at the measurement date. This guidance establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar valuation techniques that use significant unobservable inputs. The guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We have segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. Financial assets and liabilities measured at fair value on a non-recurring and recurring basis as of June 30, 2018 and December 31, 2017 are summarized below: (in thousands) Description As of June 30, 2018 Level 1 Level 2 Level 3 Total Gains (Losses) Non-recurring Assets: Licensed technology (net) $ 3,803 $ - $ - $ 3,803 $ 174 Goodwill 32,466 - - 32,466 - Recurring Marketable securities - - 69,852 - - (in thousands) Description As of December 31, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Non-recurring Assets: Licensed technology (net) $ 3,977 $ - $ - $ 3,977 $ 127 Goodwill 32,466 - - 32,466 - Recurring Liabilities: Contingent consideration $ - $ - $ - $ - $ 1,391 |
Stock Based Option Compensation
Stock Based Option Compensation and Restricted Stock Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Option Compensation and Restricted Stock Compensation | (6) Stock Based Option Compensation and Restricted Stock Compensation For the three and six months ended June 30, 2018, we recognized stock-based option compensation expense of $2,673,000 and $4,573,000, respectively. For the three and six months ended June 30, 2017, we recognized stock-based option compensation expense of $1,243,000 and $2,735,000, respectively. The following table summarizes stock-based option compensation for the three and six months ended June 30, 2018 and 2017: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Research and development $ 900,000 $ 368,000 $ 1,744,000 $ 724,000 General and administrative 1,773,000 875,000 2,829,000 2,011,000 Stock-based option compensation expense included in operating expense $ 2,673,000 $ 1,243,000 $ 4,573,000 $ 2,735,000 For the three and six months ended June 30, 2018, we granted 224,800 and 869,800 stock options, respectively, and for the three and six months ended June 30, 2017 we granted 185,000 and 185,000 stock options, respectively. For the three and six months ended June 30, 2018, the fair value of options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: For the three months ended June 30, 2018, the fair value of options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 0%; volatility of 109%; risk-free interest rate of 2.65%; and expected lives of 5.0 years. The weighted average fair value of options granted was $12.87 per share. The weighted average grant date fair value is $12.87 and the weighted average exercise price is $16.27. For the six months ended June 30, 2018, the fair value of options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 0%; volatility of 109%; risk-free interest rate of 2.44%; and expected lives of 5.0 years. The weighted average fair value of options granted was $11.36 per share. The weighted average grant date fair value is $11.36 and the weighted average exercise price is $14.38. For the three and six months ended June 30, 2018, we recognized restricted common stock compensation expense of $172,000 and $344,000, respectively. For the three and six months ended June 30, 2017, we recognized restricted stock compensation expense of $324,000 and $686,000, respectively. The following table summarizes restricted common stock compensation expense for the three and six months ended June 30, 2018 and 2017: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Research and development $ - $ - $ - $ - General and administrative 172,000 324,000 344,000 686,000 Restricted stock compensation expense included in operating expense $ 172,000 $ 324,000 $ 344,000 $ 686,000 For the three and six months ended June 30, 2018 and June 30, 2017 no common stock was granted to directors or employees. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (7) Commitments and Contingencies We are not currently subject to any material pending legal proceedings. |
New Accounting Standards Impl16
New Accounting Standards Implemented (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Balance Sheet Due to the Adoption of ASC 606 | The table below presents the cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet due to the adoption of ASC 606. Balance Sheet (in thousands) December 31, 2017, Adjustments Due January 1, 2018 Liabilities Current liabilities Current portion of deferred revenue $ 3,214 $ (602 ) $ 2,612 Total current liabilities 3,214 (602 ) 2,612 Deferred revenue, net of current portion 3,061 (3,061 ) - Total liabilities 8,668 (3,663 ) 5,005 Stockholders’ Equity Accumulated deficit (359,792 ) 3,663 (356,129 ) Total equity $ 170,098 $ - $ 170,098 The table below presents the impact of the adoption of ASC 606 on our balance sheet. June 30, 2018 Balance Sheet (in thousands) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Liabilities and Stockholders’ Equity Current liabilities Current portion of deferred revenue $ 602 $ (602 ) $ - Total current liabilities 6,385 (602 ) 5,783 Deferred revenue, net of current portion 2,760 (2,760 ) - Total liabilities 9,145 (3,362 ) 5,783 Stockholders’ Equity Accumulated deficit (379,254 ) 3,662 (375,829 ) Total stockholders’ equity $ 164,256 $ (3,662 ) $ 160,914 |
Adoption of ASC 606 on Our Statement of Operations | The table below presents the impact of the adoption of ASC 606 on our statement of operations. Second Quarter Ended June 30, 2018 STATEMENT OF OPERATIONS (in thousands except per share amounts) Under Effect of As Reported Revenues License revenues $ 150 $ (150 ) $ - Total revenues 969 (150 ) 819 Loss from operations $ (11,864 ) $ (150 ) $ (12,014 ) Net loss $ (11,550 ) $ (150 ) $ (11,700 ) Basic and diluted loss per common share $ (0.25 ) $ 0.00 $ (0.25 ) Six Months Ended June 30, 2018 STATEMENT OF OPERATIONS (in thousands except per share amounts) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenues License revenues $ 301 $ (301 ) $ - Total revenues 3,718 (301 ) 3,417 Loss from operations $ (20,329 ) $ (301 ) $ (20,630 ) Net loss $ (19,862 ) $ (301 ) $ (20,163 ) Basic and diluted loss per common share $ (0.42 ) $ (0.01 ) $ (0.43 ) |
Short Term Investments (Tables)
Short Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale [Table Text Block] | The following table summarizes the available-for-sale investments held June 30, 2018. There were no available-for-sale investments in prior periods. Description Fair Value June 30, 2018 U.S. government agency securities and treasuries $ 69,852,000 |
Licensed Technology (Tables)
Licensed Technology (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Licensed technology consists of the following June 30, 2018 December 31, 2017 Gross carrying value Accumulated amortization Gross carrying value Accumulated Amortization Amortizable intangible assets Licensed technology $ 4,608 $ 805 $ 4,608 $ 631 |
Schedule of Finite-lived Intangible Assets Amortization Expense | Amortization expense related to intangible assets totaled $87,000 and $174,000 for the three and six months ended June 30, 2018, respectively, and totaled $158,000 and $361,000 for the three and six months ended June 30, 2017, respectively. The aggregate estimated amortization expense for intangible assets remaining as of June 30, 2018 is as follows (in thousands): 2018 $ 172 2019 346 2020 346 2021 346 2022 346 over 5 years 2,247 Total $ 3,803 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on recurring basis | Financial assets and liabilities measured at fair value on a non-recurring and recurring basis as of June 30, 2018 and December 31, 2017 are summarized below: (in thousands) Description As of June 30, 2018 Level 1 Level 2 Level 3 Total Gains (Losses) Non-recurring Assets: Licensed technology (net) $ 3,803 $ - $ - $ 3,803 $ 174 Goodwill 32,466 - - 32,466 - Recurring Marketable securities - - 69,852 - - (in thousands) Description As of December 31, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Non-recurring Assets: Licensed technology (net) $ 3,977 $ - $ - $ 3,977 $ 127 Goodwill 32,466 - - 32,466 - Recurring Liabilities: Contingent consideration $ - $ - $ - $ - $ 1,391 |
Stock Based Option Compensati20
Stock Based Option Compensation and Restricted Stock Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Summarization of stock-based compensation | The following table summarizes stock-based option compensation for the three and six months ended June 30, 2018 and 2017: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Research and development $ 900,000 $ 368,000 $ 1,744,000 $ 724,000 General and administrative 1,773,000 875,000 2,829,000 2,011,000 Stock-based option compensation expense included in operating expense $ 2,673,000 $ 1,243,000 $ 4,573,000 $ 2,735,000 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Summarization of stock-based compensation | The following table summarizes restricted common stock compensation expense for the three and six months ended June 30, 2018 and 2017: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Research and development $ - $ - $ - $ - General and administrative 172,000 324,000 344,000 686,000 Restricted stock compensation expense included in operating expense $ 172,000 $ 324,000 $ 344,000 $ 686,000 |
Interim Financial Statements (D
Interim Financial Statements (Details Textual) | 6 Months Ended |
Jun. 30, 2018shares | |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,895,135 |
Warrant [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,820,687 |
New Accounting Standards Impl22
New Accounting Standards Implemented (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 |
Liabilities | ||||
Current portion of deferred revenue | $ 0 | $ 2,612,000 | $ 3,214,000 | |
Total current liabilities | 5,783,000 | 2,612,000 | 5,607,000 | |
Deferred revenue, net of current portion | 0 | 0 | 3,061,000 | |
Total liabilities | 5,783,000 | 5,005,000 | 8,668,000 | |
Stockholders' Equity | ||||
Accumulated deficit | (376,292,000) | (356,129,000) | (359,792,000) | |
Total stockholders' equity | 160,914,000 | $ 169,199,000 | $ 170,098,000 | 170,098,000 |
Scenario Previously Reported | ||||
Liabilities | ||||
Current portion of deferred revenue | 602,000 | 3,214,000 | ||
Total current liabilities | 6,385,000 | 3,214,000 | ||
Deferred revenue, net of current portion | 2,760,000 | 3,061,000 | ||
Total liabilities | 9,145,000 | 8,668,000 | ||
Stockholders' Equity | ||||
Accumulated deficit | (379,254,000) | (359,792,000) | ||
Total stockholders' equity | 164,256,000 | 170,098,000 | ||
Scenario Adjustment | ||||
Liabilities | ||||
Current portion of deferred revenue | (602,000) | (602,000) | ||
Total current liabilities | (602,000) | (602,000) | ||
Deferred revenue, net of current portion | (2,760,000) | (3,061,000) | ||
Total liabilities | (3,362,000) | (3,663,000) | ||
Stockholders' Equity | ||||
Accumulated deficit | 3,662,000 | 3,663,000 | ||
Total stockholders' equity | $ (3,662,000) | $ 0 |
New Accounting Standards Impl23
New Accounting Standards Implemented (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 819,000 | $ 217,000 | $ 3,417,000 | $ 403,000 | |
Total revenues BS | 819,000 | 3,417,000 | |||
Expenses | |||||
Loss from operations | (12,014,000) | (8,440,000) | (20,630,000) | (13,724,000) | |
Net loss | $ 11,700,000 | $ 8,463,000 | $ 8,279,000 | $ 20,163,000 | $ 13,526,000 |
Basic and diluted loss per common share | $ (0.25) | $ (0.21) | $ (0.43) | $ (0.34) | |
License [Member] | |||||
Revenues | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 0 | $ 150,000 | $ 0 | $ 301,000 | |
As Reported Under ASC 605 | |||||
Revenues | |||||
Total revenues BS | 969,000 | 3,718,000 | |||
Expenses | |||||
Loss from operations | (11,864,000) | (20,329,000) | |||
Net loss | (11,550,000) | (19,862,000) | |||
As Reported Under ASC 605 | License [Member] | |||||
Revenues | |||||
Revenue from Contract with Customer, Including Assessed Tax | 150,000 | 301,000 | |||
Adjustments Due to ASC 606 | |||||
Revenues | |||||
Total revenues BS | (150,000) | (301,000) | |||
Expenses | |||||
Loss from operations | (150,000) | (301,000) | |||
Net loss | (150,000) | (301,000) | |||
Adjustments Due to ASC 606 | License [Member] | |||||
Revenues | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ (150,000) | $ (301,000) |
New Accounting Standards Impl24
New Accounting Standards Implemented (Details Textual) - USD ($) | Jan. 02, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Revenue from Contract with Customer, Including Assessed Tax | $ 819,000 | $ 217,000 | $ 3,417,000 | $ 403,000 | |||
Restricted Cash and Cash Equivalents | 560,000 | $ 0 | 0 | 560,000 | 0 | ||
Grants Receivable | 13,850,000 | 13,850,000 | |||||
Deferred Revenue, Current | $ 2,612,000 | 0 | 3,214,000 | 0 | |||
Proceeds From Grant Received | 3,400,000 | $ 800,000 | $ 2,600,000 | ||||
Royalty [Member] | |||||||
Revenue from Contract with Customer, Including Assessed Tax | 17,000 | 67,000 | 67,000 | 102,000 | |||
Grant [Member] | |||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 802,000 | $ 0 | $ 3,350,000 | $ 0 | |||
Accounting Standards Update 2014-09 [Member] | |||||||
Stockholders' Equity, Period Increase (Decrease) | $ 3,700,000 |
Short Term Investments (Details
Short Term Investments (Details) | Jun. 30, 2018USD ($) |
Debt Securities, Available-for-sale, Fair Value | $ 69,852,000 |
Licensed Technology (Details 1)
Licensed Technology (Details 1) - Licensed Technology [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortizable intangible assets [Abstract] | ||
Gross carrying value | $ 4,608 | $ 4,608 |
Accumulated amortization | $ 805 | $ 631 |
Licensed Technology (Details 2)
Licensed Technology (Details 2) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
2,018 | $ 172,000 | |
2,019 | 346,000 | |
2,020 | 346,000 | |
2,021 | 346,000 | |
2,022 | 346,000 | |
over 5 years | 2,247,000 | |
Total | $ 3,803,000 | $ 3,977,000 |
Licensed Technology (Details Te
Licensed Technology (Details Textual) - USD ($) | May 15, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Amortization of Intangible Assets | $ 87,000 | $ 158,000 | $ 174,000 | $ 361,000 | |
License Agreement Terms [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Assets | ||
Marketable securities | $ 69,852,000 | $ 0 |
Nonrecurring [Member] | ||
Assets | ||
Licensed technology (net) | 3,803,000 | 3,977,000 |
Goodwill | 32,466,000 | 32,466,000 |
Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Licensed technology (net) | 0 | 0 |
Goodwill | 0 | 0 |
Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Licensed technology (net) | 0 | 0 |
Goodwill | 0 | 0 |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Licensed technology (net) | 3,803,000 | 3,977,000 |
Goodwill | 32,466,000 | 32,466,000 |
Nonrecurring [Member] | Licensed technology [Member] | ||
Liabilites | ||
Total gains (losses) | 174,000 | 127,000 |
Nonrecurring [Member] | Goodwill [Member] | ||
Liabilites | ||
Total gains (losses) | 0 | 0 |
Recurring [Member] | ||
Assets | ||
Marketable securities | 0 | |
Liabilites | ||
Contingent consideration | 0 | |
Marketable securities Total Gains (Losses) | 0 | |
Recurring [Member] | Contingent Consideration [Member] | ||
Liabilites | ||
Total gains (losses) | 1,391,000 | |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Marketable securities | 0 | |
Liabilites | ||
Contingent consideration | 0 | |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Marketable securities | 69,852,000 | |
Liabilites | ||
Contingent consideration | 0 | |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Marketable securities | $ 0 | |
Liabilites | ||
Contingent consideration | $ 0 |
Stock Based Option Compensati30
Stock Based Option Compensation and Restricted Stock Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | $ 4,573,000 | $ 2,735,000 | ||
Stock Options [Member] | ||||
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | $ 2,673,000 | $ 1,243,000 | 4,573,000 | 2,735,000 |
Stock Options [Member] | Research and Development Expense [Member] | ||||
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | 900,000 | 368,000 | 1,744,000 | 724,000 |
Stock Options [Member] | General and Administrative [Member] | ||||
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | 1,773,000 | 875,000 | 2,829,000 | 2,011,000 |
Restricted Stock [Member] | ||||
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | 172,000 | 324,000 | 344,000 | 686,000 |
Restricted Stock [Member] | Research and Development Expense [Member] | ||||
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | 0 | 0 | 0 | 0 |
Restricted Stock [Member] | General and Administrative [Member] | ||||
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | $ 172,000 | $ 324,000 | $ 344,000 | $ 686,000 |
Stock Based Option Compensati31
Stock Based Option Compensation and Restricted Stock Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | $ 4,573,000 | $ 2,735,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 109.00% | 109.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.65% | 2.44% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.87 | $ 11.36 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Option Grants in Period Weighted Average Grant Date Fair Value | $ 12.87 | $ 11.36 | ||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Weighted Average Exercise Price | $ 16.27 | $ 14.38 | ||
Stock Options [Member] | ||||
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock options granted (in shares) | 224,800 | 185,000 | 869,800 | 185,000 |
Stock-based compensation expense included in operating expense | $ 2,673,000 | $ 1,243,000 | $ 4,573,000 | $ 2,735,000 |
Restricted Stock [Member] | ||||
Share-based and Restricted Stock Compensation Expense [Abstract] | ||||
Stock-based compensation expense included in operating expense | $ 172,000 | $ 324,000 | $ 344,000 | $ 686,000 |