x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 46-1160142 | |
(State of incorporation) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Part No. | Item No. | Description | Page No. |
I | |||
1 | |||
2 | |||
3 | |||
4 | |||
II | |||
1 | |||
1A | |||
2 | |||
3 | |||
4 | |||
5 | |||
6 | |||
September 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 13,311 | $ | 19,992 | |||
Short-term investments | 47,168 | 53,051 | |||||
Prepaid expenses and other | 887 | 712 | |||||
Total current assets | 61,366 | 73,755 | |||||
Property and equipment, net | 1,796 | 1,244 | |||||
Long-term investments | 2,005 | 4,590 | |||||
Other assets | 30 | 30 | |||||
Total assets | $ | 65,197 | $ | 79,619 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 690 | $ | 717 | |||
Accrued compensation | 1,280 | 1,922 | |||||
Accrued liabilities | 677 | 569 | |||||
Total current liabilities | 2,647 | 3,208 | |||||
Long-term liability | 18 | 40 | |||||
Total liabilities | 2,665 | 3,248 | |||||
Commitments and contingencies (Note 6) | |||||||
Stockholders' equity: | |||||||
Common stock, $0.0001 par value; 100,000,000 shares authorized; 19,891,407 and 19,836,360 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 2 | 2 | |||||
Additional paid-in capital | 137,810 | 135,021 | |||||
Accumulated other comprehensive income (loss) | 12 | (50 | ) | ||||
Accumulated deficit | (75,292 | ) | (58,602 | ) | |||
Total stockholders' equity | 62,532 | 76,371 | |||||
Total liabilities and stockholders' equity | $ | 65,197 | $ | 79,619 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating expenses: | |||||||||||||||
Research and development | $ | 3,754 | $ | 5,033 | $ | 10,352 | $ | 14,833 | |||||||
General and administrative | 2,022 | 2,095 | 5,907 | 5,969 | |||||||||||
Restructuring costs | — | — | 655 | — | |||||||||||
Total operating expenses | 5,776 | 7,128 | 16,914 | 20,802 | |||||||||||
Loss from operations | (5,776 | ) | (7,128 | ) | (16,914 | ) | (20,802 | ) | |||||||
Interest and other income, net | 93 | 33 | 224 | 92 | |||||||||||
Net loss | (5,683 | ) | (7,095 | ) | (16,690 | ) | (20,710 | ) | |||||||
Change in unrealized gains (losses) on available-for-sale securities | (21 | ) | 5 | 62 | 31 | ||||||||||
Comprehensive loss | $ | (5,704 | ) | $ | (7,090 | ) | $ | (16,628 | ) | $ | (20,679 | ) | |||
Net loss per share, basic and diluted | $ | (0.29 | ) | $ | (0.36 | ) | $ | (0.84 | ) | $ | (1.05 | ) | |||
Weighted-average number of common shares outstanding, basic and diluted | 19,891 | 19,792 | 19,864 | 19,758 |
Nine months ended September 30, | |||||||
2016 | 2015 | ||||||
Cash Flows from Operating Activities | |||||||
Net loss | $ | (16,690 | ) | $ | (20,710 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Stock-based compensation expense | 2,699 | 3,103 | |||||
Depreciation and amortization expense | 115 | 108 | |||||
Amortization of premium on marketable securities | 199 | 128 | |||||
Changes in operating assets and liabilities: | |||||||
Prepaid expenses and other | (175 | ) | 28 | ||||
Other assets | — | (8 | ) | ||||
Accounts payable | 141 | (135 | ) | ||||
Accrued liabilities and accrued compensation | (553 | ) | 258 | ||||
Net cash used in operating activities | (14,264 | ) | (17,228 | ) | |||
Cash Flows from Investing Activities | |||||||
Purchase of investments | (61,482 | ) | (81,086 | ) | |||
Sale of investments | — | 3,000 | |||||
Maturities of investments | 69,813 | 87,000 | |||||
Purchase of property and equipment | (838 | ) | (322 | ) | |||
Net cash provided by investing activities | 7,493 | 8,592 | |||||
Cash Flows from Financing Activities | |||||||
Exercise of stock options and purchase of ESPP shares | 90 | 206 | |||||
Net cash provided by financing activities | 90 | 206 | |||||
Net change in cash and cash equivalents | (6,681 | ) | (8,430 | ) | |||
Cash and cash equivalents at beginning of period | 19,992 | 12,969 | |||||
Cash and cash equivalents at end of period | $ | 13,311 | $ | 4,539 |
Fair Value Measurements as of September 30, 2016 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 2,136 | $ | 2,136 | $ | — | $ | — | ||||||||
U.S. treasury bills | 1,999 | 1,999 | — | — | ||||||||||||
U.S. government agency notes | 600 | — | 600 | — | ||||||||||||
Commercial paper | 6,399 | — | 6,399 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. treasury bills | 9,491 | 9,491 | — | — | ||||||||||||
U.S. treasury bonds | 15,045 | 15,045 | — | — | ||||||||||||
U.S. government agency notes | 9,643 | — | 9,643 | — | ||||||||||||
Commercial paper | 2,691 | — | 2,691 | — | ||||||||||||
Corporate notes | 10,298 | — | 10,298 | — | ||||||||||||
Long-term investments: | ||||||||||||||||
Corporate notes | 2,005 | — | 2,005 | — | ||||||||||||
$ | 60,307 | $ | 28,671 | $ | 31,636 | $ | — |
Fair Value Measurements as of December 31, 2015 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 8,169 | $ | 8,169 | $ | — | $ | — | ||||||||
U.S. government agency notes | 4,385 | — | 4,385 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. treasury bills | 41,282 | — | 41,282 | — | ||||||||||||
U.S. government agency notes | 11,769 | — | 11,769 | — | ||||||||||||
Long-term investments: | ||||||||||||||||
U.S. treasury bills | 4,590 | — | 4,590 | — | ||||||||||||
$ | 70,195 | $ | 8,169 | $ | 62,026 | $ | — |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Short-term investments: | |||||||||||||||
U.S. treasury bills | $ | 9,485 | $ | 6 | $ | — | $ | 9,491 | |||||||
U.S. government agency notes | 9,639 | 4 | — | 9,643 | |||||||||||
U.S. treasury bonds | 15,036 | 9 | — | 15,045 | |||||||||||
Commercial paper | 2,691 | — | — | 2,691 | |||||||||||
Corporate notes | 10,308 | 2 | (12 | ) | 10,298 | ||||||||||
47,159 | 21 | (12 | ) | 47,168 | |||||||||||
Long-term investments: | |||||||||||||||
Corporate notes | 2,002 | 3 | — | 2,005 | |||||||||||
Total available-for-sale investments | $ | 49,161 | $ | 24 | $ | (12 | ) | $ | 49,173 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Short-term investments: | |||||||||||||||
U.S. treasury bills | $ | 41,293 | $ | 14 | $ | (25 | ) | $ | 41,282 | ||||||
U.S. government agency notes | 11,776 | — | (7 | ) | 11,769 | ||||||||||
U.S. treasury bonds | 25 | 9 | (34 | ) | — | ||||||||||
53,094 | 23 | (66 | ) | 53,051 | |||||||||||
Long-term investments: | |||||||||||||||
U.S. treasury bills | 4,597 | — | (7 | ) | 4,590 | ||||||||||
Total available-for-sale investments | $ | 57,691 | $ | 23 | $ | (73 | ) | $ | 57,641 |
September 30, 2016 | December 31, 2015 | ||||||
Accrued consulting | $ | 168 | $ | 83 | |||
Accrued research and development costs | 288 | 345 | |||||
Other expenses | 191 | 128 | |||||
Deferred rent | 48 | 53 | |||||
695 | 609 | ||||||
Less current portion | (677 | ) | (569 | ) | |||
Long-term liability (deferred rent) | $ | 18 | $ | 40 |
Stock Option Plan | Three months ended September 30, | Nine months ended September 30, | |||||
2016 | 2015 | 2016 | 2015 | ||||
Shares underlying options granted | 62,000 | 32,500 | 833,183 | 844,733 | |||
Weighted-average exercise price | $3.94 | $6.37 | $3.45 | $6.67 | |||
Weighted average risk- free interest rate | 1.22 % | 1.78 % | 1.57% | 1.50% | |||
Weighted average expected term (years) | 6.3 | 6.3 | 6.3 | 6.1 | |||
Weighted average expected volatility | 87% | 90% | 83% | 96% | |||
Expected dividend yield | — | — | — | — | |||
Weighted-average grant date fair value per share | $2.88 | $4.80 | $2.42 | $5.14 |
Stock Purchase Plan | Three months ended September 30, | Nine months ended September 30, | |||||
2016 | 2015 | 2016 | 2015 | ||||
Weighted average risk-free interest rate | — | — | 0.46% | 0.07% | |||
Weighted average expected term (years) | — | — | 0.5 | 0.5 | |||
Weighted average expected volatility | — | — | 89% | 73% | |||
Expected dividend yield | — | — | — | — | |||
Weighted-average grant date fair value per share | — | — | $1.46 | $2.14 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Research and development | $ | 411 | $ | 439 | $ | 1,063 | $ | 1,371 | |||||||
General and administrative | 604 | 567 | 1,636 | 1,732 | |||||||||||
$ | 1,015 | $ | 1,006 | $ | 2,699 | $ | 3,103 |
Year ending December 31, | Lease Payments | |||
2016 (remaining of year) | $ | 144 | ||
2017 | 661 | |||
2018 | 497 | |||
2019 | 486 | |||
2020 and after | 1,032 | |||
Total | $ | 2,820 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Basic and diluted net loss per share: | |||||||||||||||
Numerator: | |||||||||||||||
Net loss | $ | (5,683 | ) | $ | (7,095 | ) | $ | (16,690 | ) | $ | (20,710 | ) | |||
Denominator: | |||||||||||||||
Weighted-average number of common shares outstanding, basic and diluted | 19,891 | 19,792 | 19,864 | 19,758 | |||||||||||
Net loss per share, basic and diluted | $ | (0.29 | ) | $ | (0.36 | ) | $ | (0.84 | ) | $ | (1.05 | ) |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating expenses: | |||||||||||||||
Research and development | $ | 3,754 | $ | 5,033 | $ | 10,352 | $ | 14,833 | |||||||
General and administrative | 2,022 | 2,095 | 5,907 | 5,969 | |||||||||||
Restructuring costs | — | — | 655 | — | |||||||||||
Total operating expenses | 5,776 | 7,128 | 16,914 | 20,802 | |||||||||||
Loss from operations | (5,776 | ) | (7,128 | ) | (16,914 | ) | (20,802 | ) | |||||||
Interest and other income, net | 93 | 33 | 224 | 92 | |||||||||||
Net loss | $ | (5,683 | ) | $ | (7,095 | ) | $ | (16,690 | ) | $ | (20,710 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Payroll and related | $ | 1,472 | $ | 2,324 | (37 | )% | $ | 4,408 | $ | 6,149 | (28 | )% | |||||||||
Consulting | 333 | 259 | 29 | % | 863 | 1,019 | (15 | )% | |||||||||||||
Field trial costs, including materials | 1,010 | 1,419 | (29 | )% | 2,287 | 4,501 | (49 | )% | |||||||||||||
Stock-based compensation | 411 | 439 | (6 | )% | 1,063 | 1,371 | (22 | )% | |||||||||||||
Other | 528 | 592 | (11 | )% | 1,731 | 1,793 | (3 | )% | |||||||||||||
$ | 3,754 | $ | 5,033 | (25 | )% | $ | 10,352 | $ | 14,833 | (30 | )% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Payroll and related | $ | 571 | $ | 535 | 7 | % | $ | 1,683 | $ | 1,439 | 17 | % | |||||||||
Consulting, legal fees and professional services | 221 | 361 | (39 | )% | 696 | 1,153 | (40 | )% | |||||||||||||
Stock-based compensation | 604 | 567 | 7 | % | 1,636 | 1,732 | (6 | )% | |||||||||||||
Corporate and marketing expenses | 334 | 220 | 52 | % | 1,067 | 799 | 34 | % | |||||||||||||
Other | 292 | 412 | (29 | )% | 825 | 846 | (2 | )% | |||||||||||||
$ | 2,022 | $ | 2,095 | (3 | )% | $ | 5,907 | $ | 5,969 | (1 | )% |
Nine months ended September 30, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Net cash used in operating activities | $ | (14,264 | ) | $ | (17,228 | ) | |
Net cash provided by investing activities | $ | 7,493 | $ | 8,592 | |||
Net cash provided by financing activities | $ | 90 | $ | 206 |
• | pivotal trials of our product candidates; |
• | toxicology (target animal safety) studies for our product candidates; |
• | small molecule manufacturing; |
• | establishment of biologics manufacturing capability; and |
• | commercialization of one or more of our product candidates, if approved. |
• | the scope, progress, results and costs of researching and developing our current or future product candidates; |
• | the timing of, and the costs involved in, obtaining regulatory approvals for any of our current or future product candidates; |
• | the number and characteristics of the product candidates we pursue; |
• | the cost of manufacturing our current and future product candidates and any products we successfully commercialize, including cost of building internal biologics manufacturing capacity; |
• | the cost of commercialization activities if any of our current or future product candidates are approved for sale, including marketing, sales and distribution costs; |
• | the expenses needed to attract and retain skilled personnel; |
• | the costs associated with being a public company; |
• | our ability to establish and maintain strategic collaborations, licensing or other arrangements and the financial terms of such agreements; and |
• | the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing possible patent claims, including litigation costs and the outcome of any such litigation. |
Exhibit Number | Description | |
31.1 | Sarbanes-Oxley Act Section 302 Certification of Chief Executive Officer and Interim Chief Financial Officer. | |
32.1 | Sarbanes-Oxley Act Section 906 Certification of Chief Executive Officer and Interim Chief Financial Officer. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Kindred Biosciences, Inc. | |
By: | /s/ Richard Chin |
Richard Chin, M.D. | |
President and Chief Executive Officer and Interim Chief Financial Officer | |
1. | I have reviewed this quarterly report on Form 10-Q of Kindred Biosciences, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report. |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
4. | I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a- 15(e) and 15d- 15(e)) and and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 7, 2016 | By: /s/ Richard Chin | |
Name: Richard Chin, MD | ||
Title: Chief Executive Officer and Interim Chief Financial Officer |
Date: November 7, 2016 | By: /s/ Richard Chin | |
Name: Richard Chin, MD | ||
Title: Chief Executive Officer and Interim Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 31, 2016 |
|
Entity [Abstract] | ||
Entity Registrant Name | Kindred Biosciences, Inc. | |
Entity Central Index Key | 0001561743 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 19,891,407 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 19,891,407 | 19,836,360 |
Common stock, shares outstanding (in shares) | 19,891,407 | 19,836,360 |
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Operating expenses: | ||||
Research and development | $ 3,754 | $ 5,033 | $ 10,352 | $ 14,833 |
General and administrative | 2,022 | 2,095 | 5,907 | 5,969 |
Restructuring costs | 0 | 0 | 655 | 0 |
Total operating expenses | 5,776 | 7,128 | 16,914 | 20,802 |
Loss from operations | (5,776) | (7,128) | (16,914) | (20,802) |
Interest and other income, net | 93 | 33 | 224 | 92 |
Net loss | (5,683) | (7,095) | (16,690) | (20,710) |
Change in unrealized gains (losses) on available-for-sale securities | (21) | 5 | 62 | 31 |
Comprehensive loss | $ (5,704) | $ (7,090) | $ (16,628) | $ (20,679) |
Net loss per share, basic and diluted (USD per share) | $ (0.29) | $ (0.36) | $ (0.84) | $ (1.05) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 19,891 | 19,792 | 19,864 | 19,758 |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Kindred Biosciences, Inc. ("KindredBio", "we", "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. On April 25, 2016, we filed a Certificate of Incorporation with the State of Delaware for a wholly owned subsidiary, KindredBio Equine, Inc. ("Subsidiary"). The Subsidiary has one class of capital stock which is designated common stock, $0.0001 par value per share. The authorized number of shares of common stock for the Subsidiary is 1,000. We are a biopharmaceutical company focused on saving and improving the lives of pets. Our activities since inception have consisted principally of raising capital, establishing facilities, recruiting management and technical staff and performing research and development and advancing our product candidates seeking regulatory approval. Our headquarters are located in Burlingame, California. We are subject to risks common to companies in the biotechnology and pharmaceutical industries. There can be no assurance that our research and development will be successfully completed, that adequate patent or other intellectual property protection for our technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. We operate in an environment of substantial competition from other animal health companies. In addition, we are dependent upon the services of our employees and consultants, as well as third-party contract research organizations and manufacturers. The accompanying unaudited interim condensed consolidated financial statements (“financial statements”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2015 included in our annual report on Form 10-K as filed with the SEC on March 4, 2016. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included in these unaudited interim condensed consolidated financial statements. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned Subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Liquidity We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception. We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of our former convertible preferred stock, the sale of our common stock in our initial public offering in December 2013 and the sale of our common stock in our April 2014 follow-on public offering. We believe that our cash, cash equivalents, short-term and long-term investments totaling $62,484,000 as of September 30, 2016, are sufficient to fund our planned operations for at least the next 24 months. If we require additional funding for operations, we may seek such funding through public or private equity or debt financings or other sources, such as corporate collaborations and licensing arrangements. We may not be able to obtain financing on acceptable terms, or at all, and we may not be able to enter into corporate collaborations or licensing arrangements. The terms of any financing may result in dilution or otherwise adversely affect the holdings or the rights of our stockholders. Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of stock-based awards, the realization of deferred tax assets, the recoverability of long-lived assets and the accrual of research and development expenses. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates. Comprehensive Loss Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses are reflected as a separate component of stockholders' equity in the condensed consolidated balance sheets as accumulated other comprehensive income (loss). Recently Issued Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, "Balance Sheet Classification of Deferred Taxes", requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the consolidated balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The update is effective for public business entities issuing consolidated financial statements for the annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities", which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments and also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", requiring organizations that lease assets—referred to as “lessees”—to recognize on the consolidated balance sheet the assets and liabilities for the rights and obligations created by those leases. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which amends ASC Topic 718, “Compensation - Stock Compensation”. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption will be permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. Our early adoption of this standard in the nine months ended September 30, 2016 did not have any material impact on our condensed consolidated financial statements. We do not believe there are any other recently issued standards not yet effective that will have a material impact on our consolidated financial statements when the standards become effective. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value. 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is 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 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, 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 determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The carrying amount of financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities approximate fair value due to the short maturities of these financial instruments. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis. Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis and are summarized as follows (in thousands):
During the nine months ended September 30, 2016, U.S. treasury bills were transferred from Level 2 to Level 1. With the exception of U.S. treasury bills, there were no other transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy at September 30, 2016 or December 31, 2015. At September 30, 2016 and December 31, 2015, we did not have any financial liabilities which were measured at fair value on a recurring basis. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments We classify all highly-liquid investments with stated maturities of greater than three months from the date of purchase and remaining maturities of less than one year as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such investments are viewed as being available to support current operations. We classify and account for investments as available-for-sale and reflect realized gains and losses using the specific identification method. Changes in market value, if any, excluding other-than-temporary impairments, are reflected in other comprehensive income (loss). The fair value of available-for-sale investments by type of security at September 30, 2016 was as follows (in thousands):
The fair value of available-for-sale investments by type of security at December 31, 2015 was as follows (in thousands):
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Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands):
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Stock-Based Awards and Common Stock |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Awards and Common Stock | Stock-Based Awards and Common Stock The table below shows the number of shares of common stock underlying options granted to employees, directors and consultants, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share:
In May 2016, we adopted the 2016 Equity Incentive Plan (the “2016 Plan”), and reserved 3,000,000 shares of our common stock for issuance under the 2016 Plan. The 2016 Plan is the successor to our 2012 Equity Incentive Plan (the “2012 Plan”), which was retired on May 23, 2016 upon stockholders’ approval of our 2016 Plan. All awards made under the 2012 Plan shall remain subject to the terms of that plan. Options granted under the 2016 Plan may be either incentive stock options or nonstatutory stock options. The 2016 Plan also provides for the grant of stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards and other stock awards. The exercise price of a stock option may not be less than 100% of the closing price of our common stock on the date of the grant. If, at any time we grant an incentive stock option, and the optionee directly or by attribution owns stock possessing more than 10% of the total combined voting power of all classes of KindredBio stock, the option price shall be at least 110% of the fair value and shall not be exercisable more than five years after the date of grant. Options generally vest over a period of two or four years from the date of grant. Options granted under the 2016 Plan expire no later than 10 years from the date of grant. As of September 30, 2016, there were 65,350 option shares outstanding and 2,934,650 shares available for future grants under the 2016 Plan. Our Employee Stock Purchase Plan (the "Stock Purchase Plan"), adopted in December 2014, permits eligible employees to purchase common stock at a discount through payroll deductions during defined six-month consecutive offering periods beginning December 1 with the exception of our first offering period which commenced on January 1, 2015 for a five month duration. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock on the first day of the offering or 85% of the fair market value of our common stock on the purchase date. A total of 200,000 shares of common stock are authorized for issuance under the Stock Purchase Plan. A participant may purchase a maximum of 2,000 shares of common stock during each offering period, not to exceed $25,000 worth of common stock on the offering date during each calendar year. We use the Black-Scholes option pricing model, in combination with the discounted employee price, in determining the value of the Stock Purchase Plan expense to be recognized during each offering period. The following assumptions were used in the Black-Scholes option pricing model to calculate employee stock-based compensation:
Under the Stock Purchase Plan, employees purchased 22,797 shares of common stock for $77,000 during the nine months ended September 30, 2016. At September 30, 2016 and December 31, 2015, we had an outstanding liability of $56,000 and $25,000, respectively, which is included in accrued compensation on the condensed consolidated balance sheets, for employee contributions to the Stock Purchase Plan for shares pending issuance at the end of the next offering period. We recorded stock-based compensation expense as follows (in thousands):
We had an aggregate of approximately $6,124,000 of unrecognized stock-based compensation expense for options outstanding and the Stock Purchase Plan as of September 30, 2016 which is expected to be recognized over a weighted-average period of 2.1 years. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies In April 2014, we entered into new non-cancelable operating leases for 2,145 square feet of laboratory space through May 2017 and 6,900 square feet of office space through November 2017. In January, August and November 2015, we amended our original operating lease for laboratory space to expand the facility with an additional 2,431 square feet, 131 square feet and 123 square feet, respectively, of manufacturing space through May 2017. In August 2015, we entered into a new non-cancelable operating lease for 3,126 square feet of office space in San Diego, California through September 2019. In February and October 2016, we further amended our original operating lease for laboratory space to further expand the facility with an additional 3,599 square feet and 2,326 square feet, respectively, of laboratory space through May 2017. Commencing on June 1, 2017, the non-cancellable operating lease for the entire existing laboratory space of a total 10,755 square feet is extended for another 5 years through May 2022. In addition, we have three equipment leases expiring through 2020. As of September 30, 2016 (including amendments entered into after period end), we are obligated to make minimum lease payments under noncancelable operating leases as follows (in thousands):
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Net Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Net Loss Per Share Basic and diluted net loss per share was calculated as follows (in thousands, except per share amounts):
There was no difference between the Company’s net loss and the net loss attributable to common stockholders for all periods presented. Stock options to purchase 3,573,955 shares of common stock as of September 30, 2016, were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2016, because their effect was anti-dilutive. Stock options to purchase 3,078,065 shares of common stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2015, because their effect was anti-dilutive. |
Restructuring Plan |
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Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | Restructuring Plan On January 8, 2016, our Board of Directors committed to a restructuring plan intended to better align our workforce to our revised operating needs and program development plans. On January 11, 2016, we implemented the restructuring plan that focused on streamlining our development programs and to ensure our remaining funds are sufficient to fund our planned operations through 2018. To match these priorities, we reduced our workforce by 18 positions, or approximately 31% of our workforce, resulting in a total workforce of 39 positions. As a result of the restructuring plan which has been completed, we recorded a restructuring charge of approximately $655,000 related to severance payments which was entirely paid in the quarter ended March 31, 2016. There were no further restructuring charges since then. |
Subsequent Event |
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Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 5, 2016, we further amended our existing operating lease for laboratory space at the Mitten Road facility. The amendment to the original lease provides for an expansion of an additional 2,326 square feet of laboratory space for a total of 10,755 square feet through May 31, 2017. Commencing on June 1, 2017, the non-cancellable operating lease for the entire existing laboratory space of a total 10,755 square feet is extended for another 5 years through May 31, 2022. |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Kindred Biosciences, Inc. ("KindredBio", "we", "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. On April 25, 2016, we filed a Certificate of Incorporation with the State of Delaware for a wholly owned subsidiary, KindredBio Equine, Inc. ("Subsidiary"). The Subsidiary has one class of capital stock which is designated common stock, $0.0001 par value per share. The authorized number of shares of common stock for the Subsidiary is 1,000. We are a biopharmaceutical company focused on saving and improving the lives of pets. Our activities since inception have consisted principally of raising capital, establishing facilities, recruiting management and technical staff and performing research and development and advancing our product candidates seeking regulatory approval. Our headquarters are located in Burlingame, California. We are subject to risks common to companies in the biotechnology and pharmaceutical industries. There can be no assurance that our research and development will be successfully completed, that adequate patent or other intellectual property protection for our technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. We operate in an environment of substantial competition from other animal health companies. In addition, we are dependent upon the services of our employees and consultants, as well as third-party contract research organizations and manufacturers. The accompanying unaudited interim condensed consolidated financial statements (“financial statements”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2015 included in our annual report on Form 10-K as filed with the SEC on March 4, 2016. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included in these unaudited interim condensed consolidated financial statements. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned Subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. |
Liquidity | Liquidity We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception. We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of our former convertible preferred stock, the sale of our common stock in our initial public offering in December 2013 and the sale of our common stock in our April 2014 follow-on public offering. We believe that our cash, cash equivalents, short-term and long-term investments totaling $62,484,000 as of September 30, 2016, are sufficient to fund our planned operations for at least the next 24 months. If we require additional funding for operations, we may seek such funding through public or private equity or debt financings or other sources, such as corporate collaborations and licensing arrangements. We may not be able to obtain financing on acceptable terms, or at all, and we may not be able to enter into corporate collaborations or licensing arrangements. The terms of any financing may result in dilution or otherwise adversely affect the holdings or the rights of our stockholders. |
Use of Estimates | Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of stock-based awards, the realization of deferred tax assets, the recoverability of long-lived assets and the accrual of research and development expenses. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates. |
Comprehensive Loss | Comprehensive Loss Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses are reflected as a separate component of stockholders' equity in the condensed consolidated balance sheets as accumulated other comprehensive income (loss). |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, "Balance Sheet Classification of Deferred Taxes", requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the consolidated balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The update is effective for public business entities issuing consolidated financial statements for the annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities", which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments and also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", requiring organizations that lease assets—referred to as “lessees”—to recognize on the consolidated balance sheet the assets and liabilities for the rights and obligations created by those leases. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the new guidance and have not determined the impact this standard may have on our condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which amends ASC Topic 718, “Compensation - Stock Compensation”. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption will be permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. Our early adoption of this standard in the nine months ended September 30, 2016 did not have any material impact on our condensed consolidated financial statements. We do not believe there are any other recently issued standards not yet effective that will have a material impact on our consolidated financial statements when the standards become effective. |
Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis and are summarized as follows (in thousands):
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Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Available-for-Sale Short Term Investments | The fair value of available-for-sale investments by type of security at September 30, 2016 was as follows (in thousands):
The fair value of available-for-sale investments by type of security at December 31, 2015 was as follows (in thousands):
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Accrued Liabilities (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands):
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Stock-Based Awards and Common Stock (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Plan valuation assumptions | The table below shows the number of shares of common stock underlying options granted to employees, directors and consultants, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share:
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Schedule of Stock Purchase Plan valuation assumptions | The following assumptions were used in the Black-Scholes option pricing model to calculate employee stock-based compensation:
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Schedule of Stock-Based Compensation Expense | We recorded stock-based compensation expense as follows (in thousands):
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Commitments and Contingencies (Tables) |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases | As of September 30, 2016 (including amendments entered into after period end), we are obligated to make minimum lease payments under noncancelable operating leases as follows (in thousands):
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Net Loss Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Net Loss per Share | Basic and diluted net loss per share was calculated as follows (in thousands, except per share amounts):
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Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Apr. 25, 2016
class_of_stock
$ / shares
shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Dec. 31, 2015
$ / shares
shares
|
|
Subsidiary or Equity Method Investee [Line Items] | |||
Common stock, par value (USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | |
Cash, cash equivalents, and short-term investments | $ | $ 62,484 | ||
Substantial cash and cash equivalent, term (in months) | 24 months | ||
KindredBio Equine, Inc | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Number of classes of stock | class_of_stock | 1 | ||
Common stock, par value (USD per share) | $ / shares | $ 0.0001 | ||
Common stock, shares authorized (in shares) | shares | 1,000 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued consulting | $ 168 | $ 83 |
Accrued research and development costs | 288 | 345 |
Other expenses | 191 | 128 |
Deferred rent | 48 | 53 |
Accrued liabilities | 695 | 609 |
Less current portion | (677) | (569) |
Long-term liability (deferred rent) | $ 18 | $ 40 |
Stock-Based Awards and Common Stock - Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average risk- free interest rate | 0.00% | 0.00% | 0.46% | 0.07% |
Weighted average expected term (in years) | 0 years | 0 years | 6 months | 6 months |
Weighted average expected volatility | 0.00% | 0.00% | 89.00% | 73.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average grant date fair value per share (USD per share) | $ 0.00 | $ 0.00 | $ 1.46 | $ 2.14 |
Stock-Based Awards and Common Stock - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,015 | $ 1,006 | $ 2,699 | $ 3,103 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 411 | 439 | 1,063 | 1,371 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 604 | $ 567 | $ 1,636 | $ 1,732 |
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Numerator: | ||||
Net loss | $ (5,683) | $ (7,095) | $ (16,690) | $ (20,710) |
Denominator: | ||||
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 19,891,000 | 19,792,000 | 19,864,000 | 19,758,000 |
Net loss per share, basic and diluted (USD per share) | $ (0.29) | $ (0.36) | $ (0.84) | $ (1.05) |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS computation (in shares) | 3,573,955 | 3,078,065 | 3,573,955 | 3,078,065 |
Restructuring Plan (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jan. 11, 2016
position
|
Sep. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
|
Restructuring and Related Activities [Abstract] | |||||||
Number of positions eliminated (in positions) | 18 | ||||||
Percentage of workforce reduced | 31.00% | ||||||
Entity number of employees (in positions) | 39 | ||||||
Restructuring charge | $ | $ 0 | $ 655 | $ 0 | $ 0 | $ 655 | $ 0 |
Subsequent Event (Details) - Operating lease - Laboratory space - ft² |
1 Months Ended | |||||
---|---|---|---|---|---|---|
Oct. 05, 2016 |
Oct. 31, 2016 |
Feb. 29, 2016 |
Nov. 30, 2015 |
Aug. 31, 2015 |
Jan. 31, 2015 |
|
Subsequent Event [Line Items] | ||||||
Square footage of laboratory space (in sqft) | 3,599 | 123 | 131 | 2,431 | ||
Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Square footage of laboratory space (in sqft) | 2,326 | 2,326 | ||||
Area of Real Estate Property, Total | 10,755 | 10,755 | ||||
Operating Leases, Extension Term | 5 years | 5 years |
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