Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Reconciliation of Cash and Cash Equivalents and Restricted Cash

The Company’s restricted cash consists of money market mutual funds used to collateralize an irrevocable letter of credit as required by the Company’s lease agreement for its office space in New York, New York. The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported on the consolidated balance sheets to the total of these amounts as reported at the end of the period in the consolidated statements of cash flows (in thousands):

	September 30, 2018		September 30, 2017
Cash and cash equivalents	$	142,423	$	59,884
Restricted cash		225		225
Total cash and cash equivalents and restricted cash	$	142,648	$	60,109

ASU 2014-09 [Member]

Schedule of Impact on Financial Statements on Adoption of Topic 606

The cumulative adjustment for the adoption of Topic 606 had the following effects on the Company’s consolidated balance sheet as of January 1, 2018 (in thousands):

				Cumulative
				Adjustment for
	Balance at			Adoption of		Balance at
	December 31, 2017			Topic 606		January 1, 2018
Consolidated Balance Sheet
Assets:
Accounts receivable, current	$	473		$	527	$	1,000
Accounts receivable, non-current	$	—		$	4,850	$	4,850
Other current assets	$	1,412		$	350	$	1,762
Liabilities:
Accrued expenses and other current liabilities	$	9,605		$	105	$	9,710
Other liabilities	$	—		$	819	$	819
Stockholdersʼ Equity:
Accumulated deficit	$	(187,756	)	$	4,803	$	(182,953	)

The following tables present the effects of the adoption of Topic 606 on each financial statement line item of the Company’s financial statements for the interim periods ended September 30, 2018 (in thousands, except per share data):

	As of September 30, 2018
				Impact of		Results Without
				Adoption of		Adoption of
	As Reported			Topic 606		Topic 606
Consolidated Balance Sheet
Assets:
Accounts receivable, current	$	2,626		$	626	$	2,000
Accounts receivable, non-current	$	4,600		$	4,600	$	—
Prepaid expenses	$	6,308		$	60	$	6,248
Other current assets	$	4,834		$	2,000	$	2,834
Liabilities:
Accrued expenses and other current liabilities	$	13,306		$	322	$	12,984
Deferred revenue	$	600		$	600	$	—
Other liabilities	$	691		$	691	$	—
Stockholdersʼ Equity:
Accumulated deficit	$	(87,322	)	$	5,673	$	(92,995	)

	Three Months Ended September 30, 2018
				Impact of		Results Without
				Adoption of		Adoption of
	As Reported			Topic 606		Topic 606
Consolidated Statement of Operations
Revenues:
License revenue	$	5,306		$	2,066	$	3,240
Expenses:
Licensing costs	$	517		$	193	$	324
Other Income:
Interest income from licensing	$	109		$	109	$	—
Net Income (Loss)	$	(19,202	)	$	1,982	$	(21,184	)
Net Income (Loss) Per Share:
Basic	$	(0.56	)	$	0.06	$	(0.62	)
Diluted	$	(0.56	)	$	0.06	$	(0.62	)

	Nine Months Ended September 30, 2018
			Impact of			Results Without
			Adoption of			Adoption of
	As Reported		Topic 606			Topic 606
Consolidated Statement of Operations
Revenues:
License revenue	$	177,728	$	(7,462	)	$	185,190
Expenses:
Licensing costs	$	6,797	$	30		$	6,767
Other Income:
Interest income from licensing	$	8,362	$	8,362		$	—
Net Income (Loss)	$	95,631	$	870		$	94,761
Net Income (Loss) Per Share:
Basic	$	2.94	$	0.03		$	2.91
Diluted	$	2.67	$	0.03		$	2.64

	Nine Months Ended September 30, 2018
				Impact of			Results Without
				Adoption of			Adoption of
	As Reported			Topic 606			Topic 606
Consolidated Statement of Cash Flows
Cash Flows from Operating Activities:
Net income	$	95,631		$	870		$	94,761
Imputed interest income from licensing	$	(8,362	)	$	(8,362	)	$	—
Changes in accounts receivable	$	6,986		$	8,513		$	(1,527	)
Changes in prepaid expenses	$	(974	)	$	(60	)	$	(914	)
Changes in other current assets	$	(3,072	)	$	(1,650	)	$	(1,422	)
Changes in accrued expenses and other current liabilities	$	3,438		$	217		$	3,221
Changes in deferred revenue	$	600		$	600		$	—
Changes in other liabilities	$	(128	)	$	(128	)	$	—