Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 11, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | OXGN | |
Entity Registrant Name | MATEON THERAPEUTICS INC | |
Entity Central Index Key | 908,259 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,419,934 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 233 | $ 1,115 |
Other prepaid expenses and current assets | 171 | 22 |
Total current assets | 404 | 1,137 |
Property and equipment, net | 2 | |
Other assets | 33 | 33 |
Total assets | 437 | 1,172 |
Current liabilities: | ||
Accounts payable | 1,164 | 788 |
Accrued compensation and employee benefits | 23 | 73 |
Accrued clinical trial expenses | 90 | 509 |
Other accrued liabilities | 247 | 279 |
Total current liabilities | 1,524 | 1,649 |
Commitments and contingencies | ||
Stockholders' equity/(deficit): | ||
Preferred stock, $0.01 par value, 15,000 shares authorized; No shares issued and outstanding | ||
Common stock, $0.01 par value, 70,000 shares authorized; 26,545 shares issued and outstanding | 265 | 265 |
Additional paid-in capital | 291,717 | 291,533 |
Accumulated deficit | (293,069) | (292,275) |
Total stockholders' deficit | (1,087) | (477) |
Total liabilities and stockholders' deficit | $ 437 | $ 1,172 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 26,545,000 | 26,545,000 |
Common stock, shares outstanding | 26,545,000 | 26,545,000 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating expenses: | ||
Research and development | $ 225 | $ 2,848 |
General and administrative | 570 | 1,122 |
Total operating expenses | 795 | 3,970 |
Loss from operations | (795) | (3,970) |
Interest income | 1 | 14 |
Other expense | (2) | |
Net loss and comprehensive loss | $ (794) | $ (3,958) |
Basic and diluted net loss per share attributable to common stock | $ (0.03) | $ (0.15) |
Weighted-average number of common shares outstanding | 26,545 | 26,545 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net loss | $ (794) | $ (3,958) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2 | 3 |
Stock-based compensation | 184 | 240 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (149) | 233 |
Accounts payable and accrued expenses | (125) | (221) |
Net cash used in operating activities | (882) | (3,703) |
Investing activities: | ||
Sale of short-term investments | 6,209 | |
Increase (decrease) in cash and cash equivalents | (882) | 2,506 |
Cash and cash equivalents at beginning of period | 1,115 | 3,535 |
Cash and cash equivalents at end of period | $ 233 | $ 6,041 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Description of Business Mateon Therapeutics, Inc. (“Mateon” or the “Company”) is a clinical-stage biopharmaceutical company developing drugs for the treatment of orphan oncology indications, with programs in acute myeloid leukemia (“AML”) and immuno-oncology. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q S-X. The balance sheet at December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Annual Report on Form 10-K Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents Highly liquid investments with original maturities of three months or less at the date of purchase are considered to be cash equivalents. Cash equivalents are stated at fair value. Going Concern Evaluation The Company has experienced net losses every year since inception and, as of March 31, 2018, had an accumulated deficit of approximately $293 million. The Company has no source of revenue and does not expect to receive any product revenue in the near future. The Company expects to incur significant additional operating losses over at least the next several years, principally as a result of the Company’s continuing clinical trials for its investigational drugs. The principal source of the Company’s working capital to date has been the proceeds from the sale of equity. As of March 31, 2018, the Company had $0.2 million in cash and current liabilities of $1.5 million. Following the receipt of an estimated $2.4 million in net proceeds from a financing transaction in April 2018, based on the Company’s planned operations, the Company’s management expects Mateon’s existing cash to support its planned operations into the fourth quarter of 2018. Prior to this time, the Company will need to secure additional funding or could be forced to curtail or terminate operations. Because the Company does not currently have a guaranteed source of working capital that will sustain planned operations past the fourth quarter of 2018, Management has determined that there is substantial doubt about the Company’s ability to continue as a going concern. The Company will need to raise capital in order to fund its planned operations beyond this time. If the Company is unable to access additional funds when needed, it may not be able to continue the development of its investigational drugs and the Company could be required to delay, scale back or eliminate some or all of its development programs and other operations. Any additional equity financing, if available to the Company, may not be available on favorable terms, would most likely be dilutive to its current stockholders and debt financing, if available, may involve restrictive covenants. If the Company accesses funds through collaborative or licensing arrangements, it may be required to relinquish rights to some of its technologies or product candidates that it would otherwise seek to develop or commercialize on its own, on terms that are not favorable to the Company. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis, will materially harm its business, financial condition and results of operations. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-2, right-of-use In August 2016, the FASB issued ASU No. 2016-15 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 2. Stockholders’ Equity The following is a summary of the Company’s outstanding common stock warrants: March 31, 2018 December 31, 2017 Expiration Date Exercise Price (in thousands) 04/16/18 $ 3.40 1,460 1,460 09/23/18 $ 2.80 147 147 02/11/19 $ 2.56 293 293 02/18/19 $ 2.75 1,872 1,872 08/28/19 $ 2.90 2,700 2,700 03/20/20 $ 2.13 234 234 03/25/20 $ 1.71 2,920 2,920 Total Warrants Outstanding 9,626 9,626 The following is a summary of the Company’s stock option activity under its equity incentive plans: Options Options Weighted Weighted Aggregate (in thousands) (years) (in thousands) Balance at December 31, 2017 1,846 4,880 $ 1.05 7.63 $ — Options forfeited 175 (175 ) $ 0.81 Balance at March 31, 2018 2,021 4,705 $ 1.06 7.36 $ — Vested and exercisable at March 31, 2018 2,252 $ 1.09 7.15 $ — Vested and expected to vest at March 31, 2018 4,077 $ 0.87 7.27 $ — Unvested at March 31, 2018 2,453 $ 1.03 As of March 31, 2018, there was approximately $0.7 million of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over a weighted average period of approximately 1.9 years. The fair value for stock options granted is estimated at the date of grant using the Black-Scholes option pricing model. No stock options were granted during the three months ended March 31, 2018. For the three months ended March 31, 2017, the Company used the following weighted average assumptions to estimate the fair value of the stock options: Risk-free interest rate 2.0 % Expected life (years) 6.3 Expected volatility 89 % Dividend yield 0 % |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 3. Net Loss Per Share Basic and diluted net loss per share was calculated by dividing the net loss per share attributed to the Company’s common shares by the weighted-average number of common shares outstanding during the period. Diluted net loss per share includes the effect of all dilutive, potentially issuable common equivalent shares as defined using the treasury stock method. All of the Company’s common stock equivalents are anti-dilutive due to the Company’s net loss position for all periods presented. Accordingly, common stock equivalents of approximately 4,705,000 stock options and 9,626,000 warrants at March 31, 2018 and 5,936,000 stock options and 9,842,000 warrants at March 31, 2017, were excluded from the calculation of weighted average shares for diluted net loss per share. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 4. Subsequent Events On April 12 and 30, 2018, the Company entered into private placement transactions with accredited investors, raising gross proceeds of approximately $3.0 million in two closings. The Company estimates that net proceeds will be approximately $2.4 million after all transaction costs are paid. In the private placement transactions, the Company sold 14,875,000 shares of its common stock and warrants to purchase 14,875,000 shares of common stock. The purchase price of the common stock was $0.20 per share and warrants are exercisable at $0.40 per share. |
Summary of Significant Accoun10
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Mateon Therapeutics, Inc. (“Mateon” or the “Company”) is a clinical-stage biopharmaceutical company developing drugs for the treatment of orphan oncology indications, with programs in acute myeloid leukemia (“AML”) and immuno-oncology. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q Regulation S-X. The balance sheet at December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Annual Report on Form 10-K |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents Highly liquid investments with original maturities of three months or less at the date of purchase are considered to be cash equivalents. Cash equivalents are stated at fair value. |
Going Concern Evaluation | Going Concern Evaluation The Company has experienced net losses every year since inception and, as of March 31, 2018, had an accumulated deficit of approximately $293 million. The Company has no source of revenue and does not expect to receive any product revenue in the near future. The Company expects to incur significant additional operating losses over at least the next several years, principally as a result of the Company’s continuing clinical trials for its investigational drugs. The principal source of the Company’s working capital to date has been the proceeds from the sale of equity. As of March 31, 2018, the Company had $0.2 million in cash and current liabilities of $1.5 million. Following the receipt of an estimated $2.4 million in net proceeds from a financing transaction in April 2018, based on the Company’s planned operations, the Company’s management expects Mateon’s existing cash to support its planned operations into the fourth quarter of 2018. Prior to this time, the Company will need to secure additional funding or could be forced to curtail or terminate operations. Because the Company does not currently have a guaranteed source of working capital that will sustain planned operations past the fourth quarter of 2018, Management has determined that there is substantial doubt about the Company’s ability to continue as a going concern. The Company will need to raise capital in order to fund its planned operations beyond this time. If the Company is unable to access additional funds when needed, it may not be able to continue the development of its investigational drugs and the Company could be required to delay, scale back or eliminate some or all of its development programs and other operations. Any additional equity financing, if available to the Company, may not be available on favorable terms, would most likely be dilutive to its current stockholders and debt financing, if available, may involve restrictive covenants. If the Company accesses funds through collaborative or licensing arrangements, it may be required to relinquish rights to some of its technologies or product candidates that it would otherwise seek to develop or commercialize on its own, on terms that are not favorable to the Company. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis, will materially harm its business, financial condition and results of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-2, right-of-use In August 2016, the FASB issued ASU No. 2016-15 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of the Company's Outstanding Common Stock Warrants | The following is a summary of the Company’s outstanding common stock warrants: March 31, 2018 December 31, 2017 Expiration Date Exercise Price (in thousands) 04/16/18 $ 3.40 1,460 1,460 09/23/18 $ 2.80 147 147 02/11/19 $ 2.56 293 293 02/18/19 $ 2.75 1,872 1,872 08/28/19 $ 2.90 2,700 2,700 03/20/20 $ 2.13 234 234 03/25/20 $ 1.71 2,920 2,920 Total Warrants Outstanding 9,626 9,626 |
Summary of the Company's Stock Option Activity under Equity Incentive Plans | The following is a summary of the Company’s stock option activity under its equity incentive plans: Options Options Weighted Weighted Aggregate (in thousands) (years) (in thousands) Balance at December 31, 2017 1,846 4,880 $ 1.05 7.63 $ — Options forfeited 175 (175 ) $ 0.81 Balance at March 31, 2018 2,021 4,705 $ 1.06 7.36 $ — Vested and exercisable at March 31, 2018 2,252 $ 1.09 7.15 $ — Vested and expected to vest at March 31, 2018 4,077 $ 0.87 7.27 $ — Unvested at March 31, 2018 2,453 $ 1.03 |
Weighted-Average Assumptions | For the three months ended March 31, 2017, the Company used the following weighted average assumptions to estimate the fair value of the stock options: Risk-free interest rate 2.0 % Expected life (years) 6.3 Expected volatility 89 % Dividend yield 0 % |
Summary of Significant Accoun12
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Subsidiary, Sale of Stock [Line Items] | |||||
Cash equivalents maturities, term | three months or less | ||||
Accumulated deficit | $ (293,069) | $ (292,275) | |||
Cash | 233 | 1,115 | $ 6,041 | $ 3,535 | |
Current liabilities | $ 1,524 | $ 1,649 | |||
Substantial doubt about going concern, management's evaluation | Mateon's existing cash to support its planned operations into the fourth quarter of 2018. Prior to this time, the Company will need to secure additional funding or could be forced to curtail or terminate operations. Because the Company does not currently have a guaranteed source of working capital that will sustain planned operations past the fourth quarter of 2018, Management has determined that there is substantial doubt about the Company's ability to continue as a going concern. | ||||
Subsequent Event [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Estimated net proceeds from private placement transaction | $ 2,400 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Company's Outstanding Common Stock Warrants (Detail) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Class of Warrant or Right [Line Items] | ||
Number of warrants outstanding | 9,626 | 9,626 |
Private Placement Series A [Member] | ||
Class of Warrant or Right [Line Items] | ||
Expiration Date | Apr. 16, 2018 | |
Exercise Price | $ 3.40 | |
Number of warrants outstanding | 1,460 | 1,460 |
2013 Private Placement [Member] | ||
Class of Warrant or Right [Line Items] | ||
Expiration Date | Sep. 23, 2018 | |
Exercise Price | $ 2.80 | |
Number of warrants outstanding | 147 | 147 |
2014 Public Offering [Member] | ||
Class of Warrant or Right [Line Items] | ||
Expiration Date | Feb. 18, 2019 | |
Exercise Price | $ 2.75 | |
Number of warrants outstanding | 1,872 | 1,872 |
2014 Public Offering [Member] | ||
Class of Warrant or Right [Line Items] | ||
Expiration Date | Feb. 11, 2019 | |
Exercise Price | $ 2.56 | |
Number of warrants outstanding | 293 | 293 |
2014 Private Placement [Member] | ||
Class of Warrant or Right [Line Items] | ||
Expiration Date | Aug. 28, 2019 | |
Exercise Price | $ 2.90 | |
Number of warrants outstanding | 2,700 | 2,700 |
2015 Private Placement [Member] | ||
Class of Warrant or Right [Line Items] | ||
Expiration Date | Mar. 25, 2020 | |
Exercise Price | $ 1.71 | |
Number of warrants outstanding | 2,920 | 2,920 |
2015 Private Placement [Member] | ||
Class of Warrant or Right [Line Items] | ||
Expiration Date | Mar. 20, 2020 | |
Exercise Price | $ 2.13 | |
Number of warrants outstanding | 234 | 234 |
Stockholders' Equity - Summar14
Stockholders' Equity - Summary of the Company's Stock Option Activity under Equity Incentive Plans (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Available for Grant, Beginning Balance | 1,846 |
Options Available for Grant, Options forfeited | 175 |
Options Available for Grant, Ending Balance | 2,021 |
Options Outstanding, Beginning Balance | 4,880 |
Options Outstanding, Options forfeited | (175) |
Options Outstanding, Ending Balance | 4,705 |
Options Outstanding, Vested and exercisable | 2,252 |
Options Outstanding, Vested and expected to vest, Ending Balance | 4,077 |
Options Outstanding, Unvested | 2,453 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 1.05 |
Weighted Average Exercise Price, Options forfeited | $ / shares | 0.81 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 1.06 |
Weighted Average Exercise Price, Vested and exercisable | $ / shares | 1.09 |
Weighted Average Exercise Price, Vested and expected to vest, Ending Balance | $ / shares | 0.87 |
Weighted Average Exercise Price, Unvested | $ / shares | $ 1.03 |
Weighted Average Remaining Contractual Life, Beginning Balance | 7 years 7 months 17 days |
Weighted Average Remaining Contractual Life, Ending Balance | 7 years 4 months 9 days |
Weighted Average Remaining Contractual Life, Vested and exercisable | 7 years 1 month 24 days |
Weighted Average Remaining Contractual Life, Vested and expected to vest, Ending Balance | 7 years 3 months 8 days |
Aggregate Intrinsic Value | $ | $ 0 |
Aggregate Intrinsic Value, Vested and exercisable | $ | 0 |
Aggregate Intrinsic Value, Vested and expected to vest, Ending Balance | $ | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted average period for recognizing unrecognized compensation cost as expense | 1 year 10 months 25 days |
Unrecognized compensation cost related to stock option awards | $ | $ 0.7 |
Stock options granted | shares | 0 |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted-Average Assumptions (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free interest rate | 2.00% |
Expected life (years) | 6 years 3 months 19 days |
Expected volatility | 89.00% |
Dividend yield | 0.00% |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock excluded from the calculation of weighted average shares for diluted net loss per share | 4,705 | 5,936 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock excluded from the calculation of weighted average shares for diluted net loss per share | 9,626 | 9,842 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended |
Apr. 30, 2018USD ($)$ / sharesshares | |
Subsequent Event [Line Items] | |
Gross proceeds from private placement transaction | $ | $ 3 |
Estimated net proceeds from private placement transaction | $ | $ 2.4 |
Sale of common stock shares | shares | 14,875 |
Warrants to purchase shares of common stock | shares | 14,875 |
Purchase price of common stock per share | $ / shares | $ 0.20 |
Warrants exercise price per share | $ / shares | $ 0.40 |