2019 Q1 Form 10-K Financial Statement

#000117184319001687 Filed on March 13, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q4 2018
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.590M $2.720M $9.520M
YoY Change 13.1% 14.29% 9.68%
% of Gross Profit
Research & Development $4.048M $2.660M $11.85M
YoY Change -0.56% -17.13% -45.37%
% of Gross Profit
Depreciation & Amortization $174.0K $40.00K $115.0K
YoY Change 443.75% 33.33% -22.3%
% of Gross Profit
Operating Expenses $6.637M $5.385M $21.37M
YoY Change 4.27% -3.67% -29.61%
Operating Profit -$6.637M -$21.37M
YoY Change 4.27% -29.61%
Interest Expense $110.0K $130.0K $440.0K
YoY Change 22.22% 30.0% 69.23%
% of Operating Profit
Other Income/Expense, Net $106.0K $0.00 $643.0K
YoY Change -62.68% -100.0% 61.56%
Pretax Income -$6.530M -$5.260M -$17.86M
YoY Change 7.4% -5.23% -28.01%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$6.531M -$5.260M -$20.73M
YoY Change 7.4% -5.23% -30.82%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$13.60M -$10.96M -$46.07M
COMMON SHARES
Basic Shares Outstanding 19.24M
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q1 2018 Q4 2018
SHORT-TERM ASSETS
Cash & Short-Term Investments $16.80M $21.90M $21.90M
YoY Change -54.35% -47.98% -47.98%
Cash & Equivalents $16.76M $19.37M $19.40M
Short-Term Investments $0.00 $2.500M $2.500M
Other Short-Term Assets $1.100M $1.400M $1.400M
YoY Change -8.33% 7.69% 7.69%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $17.93M $23.24M $23.20M
YoY Change -52.85% -46.56% -46.67%
LONG-TERM ASSETS
Property, Plant & Equipment $105.0K $263.0K $300.0K
YoY Change -55.51% 1.54% 0.0%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $0.00 $0.00
YoY Change -100.0% -100.0%
Total Long-Term Assets $127.0K $285.0K $300.0K
YoY Change -73.32% -42.89% -40.0%
TOTAL ASSETS
Total Short-Term Assets $17.93M $23.24M $23.20M
Total Long-Term Assets $127.0K $285.0K $300.0K
Total Assets $18.06M $23.52M $23.50M
YoY Change -53.1% -46.52% -46.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.676M $441.0K $400.0K
YoY Change -76.11% 51.55% 33.33%
Accrued Expenses $1.559M $2.637M $2.600M
YoY Change -22.21% -70.53% -70.79%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $3.370M $3.078M $3.100M
YoY Change -62.64% -66.69% -66.3%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $3.370M $3.078M $3.100M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $3.370M $3.078M $3.100M
YoY Change -62.64% -66.69% -66.3%
SHAREHOLDERS EQUITY
Retained Earnings -$217.0M -$210.5M
YoY Change 10.82% 10.92%
Common Stock $19.00K $0.00
YoY Change 5.56% -100.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $14.69M $20.44M $20.40M
YoY Change
Total Liabilities & Shareholders Equity $18.06M $23.52M $23.50M
YoY Change -53.1% -46.52% -46.59%

Cashflow Statement

Concept 2019 Q1 2018 Q4 2018
OPERATING ACTIVITIES
Net Income -$6.531M -$5.260M -$20.73M
YoY Change 7.4% -5.23% -30.82%
Depreciation, Depletion And Amortization $174.0K $40.00K $115.0K
YoY Change 443.75% 33.33% -22.3%
Cash From Operating Activities -$5.092M -$4.310M -$23.23M
YoY Change -6.67% -24.39% 3.94%
INVESTING ACTIVITIES
Capital Expenditures $16.00K -$100.0K $119.0K
YoY Change 77.78% 400.0% 240.0%
Acquisitions
YoY Change
Other Investing Activities $2.500M $5.510M $18.55M
YoY Change -73.71% -14.71% -215.5%
Cash From Investing Activities $2.484M $5.420M $18.43M
YoY Change -73.87% -15.97% -214.46%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 50.00K 2.985M
YoY Change -16.67% -87.05%
NET CHANGE
Cash From Operating Activities -5.092M -4.310M -23.23M
Cash From Investing Activities 2.484M 5.420M 18.43M
Cash From Financing Activities 50.00K 2.985M
Net Change In Cash -2.608M 1.160M -1.799M
YoY Change -162.3% 43.21% -88.18%
FREE CASH FLOW
Cash From Operating Activities -$5.092M -$4.310M -$23.23M
Capital Expenditures $16.00K -$100.0K $119.0K
Free Cash Flow -$5.108M -$4.210M -$23.35M
YoY Change -6.53% -25.88% 4.31%

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Concentrations of Credit Risk and Off-Balance Sheet Risk</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents and short-term investments. The Company's cash and cash equivalents are held in accounts with financial institutions that management believes are creditworthy. The Company's investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. These amounts at times <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>exceed federally insured limits. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> experienced any credit losses in such accounts and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believe it is exposed to any significant credit risk on these funds. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> financial instruments with off-balance sheet risk of loss.</div></div></div></div></div></div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 23px; text-align: justify"><div style="display: inline; font-family: Times New Roman, Times, Serif; font-size: 10pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div></div></div></td> <td style="width: 8px">&nbsp;</td> <td style="text-align: justify"><div style="display: inline; font-family: Times New Roman, Times, Serif; font-size: 10pt"><div style="display: inline; font-weight: bold;">Organization and Operations</div></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">The Company</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Proteon Therapeutics, Inc. (the &#x201c;Company&#x201d;) is a late-stage biopharmaceutical company focused on the development of novel, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in-class pharmaceuticals to address the medical needs of patients with kidney and vascular disease. The Company was formed in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2001 </div>and incorporated on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 24, 2006.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 29.7pt">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Company devotes substantially all of its efforts to product research and development, initial market development and raising capital. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> generated any product revenue related to its primary business purpose to date and is subject to a number of risks similar to those of other development stage companies, including dependence on key individuals, competition from other companies, the need for development of commercially viable products and the need to obtain adequate additional financing to fund the development of its product candidates. The Company is also subject to a number of risks similar to other companies in the biotechnology industry, including regulatory approval of products, uncertainty of market acceptance of products, competition from therapeutic alternatives and larger companies, compliance with government regulations, protection of proprietary technology, dependence on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties and product liability.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Liquidity and Going Concern </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018, </div>the Company had cash, cash equivalents and available-for-sale investments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$21.9</div> million. The Company believes that its existing cash, cash equivalents and available-for-sale investments will be sufficient to fund operations and capital expenditures into the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2020.</div> The Company had an accumulated deficit of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$210.5</div> million as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Based on these available cash resources, the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have sufficient cash on hand to support current operations for at least the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months from the date of filing this Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K. This condition raises substantial doubt about the Company&#x2019;s ability to continue as a going concern.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Company&#x2019;s plans to address this condition include pursuing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more of the following options to secure additional funding, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">none</div> of which can be guaranteed or are entirely within our control:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: top"> <td style="white-space: nowrap; width: 4%; text-align: justify">&nbsp;</td> <td style="white-space: nowrap; width: 4%; text-align: justify"><div style="display: inline; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#x2022;</div></td> <td style="text-align: justify"><div style="display: inline; font-family: Times New Roman, Times, Serif; font-size: 10pt">raise additional funding through the possible sale of additional shares of the Company&#x2019;s common stock, including public or private equity&nbsp;financings, and/or possible debt financings; and </div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: top"> <td style="white-space: nowrap; width: 4%; text-align: justify">&nbsp;</td> <td style="white-space: nowrap; width: 4%; text-align: justify"><div style="display: inline; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#x2022;</div></td> <td style="text-align: justify"><div style="display: inline; font-family: Times New Roman, Times, Serif; font-size: 10pt">use the worldwide commercial rights to vonapanitase currently held by the Company to establish partnerships for the development and commercialization of vonapanitase in all or parts of Europe and other countries outside of the United States to secure additional funding.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">There can be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance, however, that the Company will receive cash proceeds from any of these potential sources or to the extent cash proceeds are received those proceeds would be sufficient to support our current operating plan for at least the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months from the date of filing this Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Pursuant to the requirements of Accounting Standards Codification (ASC) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">205</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,</div> <div style="display: inline; font-style: italic;">Disclosure of Uncertainties about an Entity&#x2019;s Ability to Continue as a Going Concern</div> management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company&#x2019;s ability to continue as a going concern within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date that the financial statements are issued. This evaluation initially does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> take into consideration the potential mitigating effect of management&#x2019;s plans that have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates&nbsp;substantial doubt about the Company&#x2019;s ability to continue as a going concern. The mitigating effect of management&#x2019;s plans, however, is only considered if both (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>)&nbsp;it is probable that the plans will be effectively implemented within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date that the financial statements are issued, and (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>)&nbsp;it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity&#x2019;s ability to continue as a going concern within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date that the financial statements are issued.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,</div> the future receipt of potential funding from the Company&#x2019;s partners and other resources cannot be considered probable at this time because <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">none</div> of the Company&#x2019;s current plans have been finalized at the time of filing this Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K and the implementation of any such plan is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> probable of being effectively implemented as <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">none</div> of the plans are entirely within the Company&#x2019;s control. Accordingly, substantial doubt is deemed to exist about the Company&#x2019;s ability to continue as a going concern within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date these financial statements are issued.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <!-- Field: Page; Sequence: 92; Value: 3 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The Company believes that its approximate <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$21.9</div>&nbsp;million in cash, cash equivalents and marketable securities at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> as described above, would allow it to fund its planned operations into the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2020.</div> This estimate assumes <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> equity financings, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> debt financings and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> funding from new partnership agreements. Accordingly, the timing and nature of activities contemplated for the remainder of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019</div> and thereafter will be conducted subject to the availability of sufficient financial resources.&nbsp;&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">If the Company is unable to obtain sufficient capital to continue to advance its programs, the Company would be forced to delay, reduce or eliminate its ongoing development and other activities.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">At-The-Market Equity Offering Program</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 12, 2015, </div>the Company filed a shelf registration statement on Form S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> (the &#x201c;Registration Statement&#x201d;), and entered into a Sales Agreement with Cowen and Company, LLC (the &#x201c;Sales Agreement&#x201d;) to establish an at-the-market (&#x201c;ATM&#x201d;) equity offering program pursuant to which they are able, with the Company&#x2019;s authorization, to offer and sell up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$40</div> million of the Company&#x2019;s Common Stock at prevailing market prices from time to time. The Registration Statement became effective on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 12, 2016. </div>The Company paid Cowen a commission equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3%</div> of the gross proceeds of the sales price of all shares sold through it as sales agent under the Sales Agreement. The offering costs were offset against proceeds from the sale of common stock under this agreement. The Company filed a prospectus supplement on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 16, 2017 </div>because the Company is currently subject to General Instruction <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">I.B.6</div> of Form S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,</div> which limits the amounts that the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>sell under the Registration Statement. The Company&#x2019;s ATM program was terminated effective as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 7, 2019, </div>when its new shelf registration statement on Form S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,</div> File <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">333</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">228865,</div> was declared effective by the SEC. For the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>the Company sold <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">896,811</div> shares of Common Stock under the Sales Agreement for aggregate gross proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.4</div> million offset by total offering costs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.1</div> million. For the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018, </div>the Company sold <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,494,579</div> shares of Common Stock under the Sales Agreement for aggregate gross proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.0</div> million. For the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018, </div>total offering costs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$46,000,</div> were offset against the proceeds from the sale of common stock. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,494,579</div> shares of Common Stock sold under the ATM program during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018 </div>were all sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 25, 2018 </div>to New Leaf Venture Partners LLC.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Series A Preferred Financing</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 22, 2017, </div>the Company entered into a Securities Purchase Agreement (the &#x201c;Purchase Agreement&#x201d;) with a syndicate of current and new institutional investors, led by an affiliate of Deerfield Management Company, L.P., pursuant to which the Company agreed to issue and sell to the &#x201c;Investors&#x201d; an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22,000</div> shares of the Company&#x2019;s Series A Convertible Preferred Stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.001</div> per share (the &#x201c;Transaction&#x201d;), for a purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,000</div> per share, or an aggregate gross purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$22.0</div> million, all upon the terms and conditions set forth in the Purchase Agreement. The Company closed this Transaction on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2, 2017 (</div>see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>).</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2, 2017, </div>the Company entered into a registration rights agreement with the Investors (the &#x201c;Registration Rights Agreement&#x201d;). On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 3, 2017, </div>in accordance with the Registration Rights Agreement, the Company filed a registration statement on Form S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> to register the common stock issuable upon conversion of the Preferred Shares. The registration statement became effective on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 21, 2017.</div></div></div>
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CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
719337
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
132495
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
2.61
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
1.99
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
5.08
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
121000
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
13.30
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
5.82
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
7.11
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
2.61
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y25D
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y21D
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y18D
CY2018Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
241000
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P5Y255D
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y292D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P7Y146D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P7Y146D
CY2016 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
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11000
CY2017 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
130000
CY2018 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
132000
CY2017 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
1288000
CY2018 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
2853000
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StockholdersEquity
63405000
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
38441000
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
34739000
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
20443000
CY2018Q4 us-gaap Tax Credit Carryforward Amount
TaxCreditCarryforwardAmount
3100000
CY2017Q4 us-gaap Tax Credit Carryforward Amount
TaxCreditCarryforwardAmount
2300000
CY2016Q4 us-gaap Tax Credit Carryforward Amount
TaxCreditCarryforwardAmount
0
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
0
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
0
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
0
CY2017 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
-54100000
CY2016 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
8800000
CY2018 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
18102219
CY2017 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
17274326
CY2016 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
16561799
CY2018Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
17674729
CY2018Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
17674729
CY2018Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
17824186
CY2018Q4 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
19221292
CY2017Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
16636201
CY2017Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
17207672
CY2017Q4 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
17619418

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