VICAL INC, 10-K filed on 3/14/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2015
Feb. 29, 2016
Jun. 30, 2015
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
FY 
 
 
Trading Symbol
VICL 
 
 
Entity Registrant Name
VICAL INC 
 
 
Entity Central Index Key
0000819050 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
91,905,977 
 
Entity Public Float
 
 
$ 63,553,157 
Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 13,450 
$ 20,471 
Marketable securities, available-for-sale
23,258 
23,499 
Restricted cash
3,246 
3,182 
Receivables and other assets
4,544 
4,178 
Total current assets
44,498 
51,330 
Long-term investments
2,052 
1,971 
Property and equipment, net
1,873 
2,639 
Intangible assets, net
1,300 
1,660 
Other assets
191 
379 
Total assets
49,914 
57,979 
Current liabilities:
 
 
Accounts payable and accrued expenses
3,912 
5,201 
Deferred revenue
250 
Total current liabilities
4,162 
5,201 
Long-term liabilities:
 
 
Deferred rent
359 
856 
Commitments and contingencies (Notes 6 and 7)
   
   
Stockholders’ equity:
 
 
Preferred stock, $0.01 par value, 5,000 shares authorized, none issued and outstanding
Common stock, $0.01 par value, 160,000 shares authorized, 91,544 and 90,334 shares issued and outstanding at December 31, 2015 and 2014, respectively
915 
903 
Additional paid-in capital
449,343 
446,698 
Accumulated deficit
(404,905)
(395,667)
Accumulated other comprehensive income (loss)
40 
(12)
Total stockholders’ equity
45,393 
51,922 
Total liabilities and stockholders’ equity
$ 49,914 
$ 57,979 
Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2015
Dec. 31, 2014
Statement Of Financial Position [Abstract]
 
 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
5,000,000 
5,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
160,000,000 
160,000,000 
Common stock, shares issued
91,544,000 
90,334,000 
Common stock, shares outstanding
91,544,000 
90,334,000 
Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenues:
 
 
 
Contract revenue
$ 18,860 
$ 13,304 
$ 5,846 
License and royalty revenue
2,090 
1,913 
1,872 
Total revenues
20,950 
15,217 
7,718 
Operating expenses:
 
 
 
Research and development
11,061 
11,467 
14,558 
Manufacturing and production
10,927 
10,824 
12,698 
General and administrative
8,366 
9,552 
11,814 
Total operating expenses
30,354 
31,843 
39,070 
Loss from operations
(9,404)
(16,626)
(31,352)
Other income:
 
 
 
Investment and other income, net
166 
134 
114 
Net loss
$ (9,238)
$ (16,492)
$ (31,238)
Basic and diluted net loss per share
$ (0.10)
$ (0.19)
$ (0.36)
Weighted average shares used in computing basic and diluted net loss per share
91,751 
88,786 
86,840 
Statements of Comprehensive Loss (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
Net loss
$ (9,238)
$ (16,492)
$ (31,238)
Unrealized gain (loss) on available-for-sale and long-term marketable securities:
 
 
 
Unrealized gain (loss) arising during holding period, net of tax
52 
(23)
(236)
Other comprehensive gain (loss)
52 
(23)
(236)
Total comprehensive loss
$ (9,186)
$ (16,515)
$ (31,474)
Statements of Stockholders' Equity (USD $)
In Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Income/(loss) [Member]
Beginning Balance at Dec. 31, 2012
$ 89,086 
$ 861 
$ 435,915 
$ (347,937)
$ 247 
Beginning Balance, shares at Dec. 31, 2012
 
86,136 
 
 
 
Net loss
(31,238)
 
 
(31,238)
 
Other comprehensive income (loss)
(236)
 
 
 
(236)
Exercise of stock options and issuance of common stock underlying restricted stock units net of shares withheld to settle withholding taxes
334 
327 
 
 
Exercise of stock options and issuance of common stock underlying restricted stock units net of shares withheld to settle withholding taxes, shares
 
642 
 
 
 
Non-cash compensation expense related to grant of equity based compensation
3,466 
 
3,466 
 
 
Ending Balance at Dec. 31, 2013
61,412 
868 
439,708 
(379,175)
11 
Ending Balance, shares at Dec. 31, 2013
 
86,778 
 
 
 
Net loss
(16,492)
 
 
(16,492)
 
Other comprehensive income (loss)
(23)
 
 
 
(23)
Issuance of common stock
3,923 
33 
3,890 
 
 
Issuance of common stock, shares
 
3,292 
 
 
 
Issuance of common stock underlying restricted stock units net of shares withheld to settle withholding taxes
(57)
(59)
 
 
Issuance of common stock underlying restricted stock units net of shares withheld to settle withholding taxes, shares
 
264 
 
 
 
Non-cash compensation expense related to grant of equity based compensation
3,159 
 
3,159 
 
 
Ending Balance at Dec. 31, 2014
51,922 
903 
446,698 
(395,667)
(12)
Ending Balance, shares at Dec. 31, 2014
90,334 
90,334 
 
 
 
Net loss
(9,238)
 
 
(9,238)
 
Other comprehensive income (loss)
52 
 
 
 
52 
Issuance of common stock
775 
766 
 
 
Issuance of common stock, shares
 
861 
 
 
 
Issuance of common stock underlying restricted stock units net of shares withheld to settle withholding taxes
(20)
(23)
 
 
Issuance of common stock underlying restricted stock units net of shares withheld to settle withholding taxes, shares
 
349 
 
 
 
Non-cash compensation expense related to grant of equity based compensation
1,902 
 
1,902 
 
 
Ending Balance at Dec. 31, 2015
$ 45,393 
$ 915 
$ 449,343 
$ (404,905)
$ 40 
Ending Balance, shares at Dec. 31, 2015
91,544 
91,544 
 
 
 
Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash flows from operating activities:
 
 
 
Net loss
$ (9,238)
$ (16,492)
$ (31,238)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation and amortization
1,159 
1,663 
2,213 
Write-off of abandoned patents and licensed technology
230 
350 
889 
Gain on sale of property and equipment
(1)
(15)
(7)
Compensation expense related to stock options and awards
1,902 
3,159 
3,466 
Purchase of technology license with common stock
775 
Changes in operating assets and liabilities:
 
 
 
Receivables and other assets
(178)
412 
(2,626)
Accounts payable and accrued expenses
(1,415)
1,635 
(2,188)
Deferred revenue
250 
(150)
Deferred rent
(432)
(368)
(307)
Net cash used in operating activities
(6,948)
(9,806)
(29,798)
Cash flows from investing activities:
 
 
 
Maturities of marketable securities
20,183 
10,556 
30,974 
Purchases of marketable securities
(20,114)
(22,643)
(5,137)
Purchases of property and equipment
(72)
(85)
(332)
Proceeds from the sale of property and equipment
15 
49 
Patent and licensed technology expenditures
(53)
(269)
(412)
Net cash (used in) provided by investing activities
(53)
(12,426)
25,142 
Cash flows from financing activities:
 
 
 
Net proceeds from issuance of common stock
3,925 
816 
Payment of withholding taxes for net settlement of restricted stock units
(23)
(59)
(482)
Net cash (used in) provided by financing activities
(20)
3,866 
334 
Net decrease in cash and cash equivalents
(7,021)
(18,366)
(4,322)
Cash and cash equivalents at beginning of year
20,471 
38,837 
43,159 
Cash and cash equivalents at end of year
$ 13,450 
$ 20,471 
$ 38,837 
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies

1. Organization and Summary of Significant Accounting Policies

Organization and Business Activity

Vical Incorporated, or the Company, a Delaware corporation, was incorporated in April 1987 and has devoted substantially all of its resources since that time to its research and development programs. The Company researches and develops biopharmaceutical products, including those based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases.

All of the Company’s potential products are in research and development phases. No revenues have been generated from the sale of any such products, nor are any such revenues expected for at least the next several years. The Company earns revenue from research and development agreements with pharmaceutical collaborators and from contract manufacturing agreements. Most of the Company’s product candidates will require significant additional research and development efforts, including extensive preclinical and clinical testing. All product candidates that advance to clinical testing will require regulatory approval prior to commercial use, and will require significant costs for commercialization. There can be no assurance that the Company’s research and development efforts, or those of its collaborators, will be successful. The Company expects to continue to incur substantial losses and not generate positive cash flows from operations for at least the next several years. No assurance can be given that the Company can generate sufficient product revenue to become profitable or generate positive cash flows from operations.

Basis of Presentation

These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make informed estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes. Actual results could differ materially from those estimates.

Cash, Cash Equivalents and Marketable Securities

Cash and cash equivalents consist of cash and highly liquid securities with original maturities at the date of acquisition of ninety days or less and can be liquidated without prior notice or penalty. Investments with an original maturity of more than ninety days are considered marketable securities and have been classified by management as available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from sales of these securities to fund its operations, as necessary. Such investments are carried at fair value, with unrealized gains and losses included as a separate component of stockholders’ equity. Realized gains and losses from the sale of available-for-sale securities or the amounts, net of tax, reclassified out of accumulated other comprehensive income (loss), if any, are determined on a specific identification basis.

Restricted Cash

The Company is required to maintain a letter of credit securing an amount equal to twelve months of the current monthly installment of base rent for the term of the lease for its facilities, which ends in August 2017. Under certain circumstances the Company may be able to eliminate the need for the letter of credit. At December 31, 2015 and 2014, restricted cash of $3.2 million  was pledged as collateral for the letter of credit.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, marketable securities and receivables. The Company invests its excess cash in debt instruments of financial institutions and of corporations with above average credit ratings, in U.S. government obligations, and in money market funds and certificates of deposits at financial institutions.

Property and Equipment

Property and equipment is recorded at cost and depreciation is computed using the straight-line method over the estimated useful lives of the assets. Assets acquired pursuant to capital lease arrangements and leasehold improvements are amortized using the straight-line method over the shorter of the life of the remaining lease term or the remaining useful life of the asset. Manufacturing equipment has estimated useful lives of ten years. All other property and equipment have estimated useful lives of 3 to 5 years. Maintenance and repairs of property and equipment are expensed as incurred.

Intangible Assets

Intangible assets include certain costs related to patent applications. The Company capitalizes license fees paid to acquire access to proprietary technology if the technology is expected to have alternative future use in multiple research and development projects. The cost of licensed technology rights is amortized using the straight-line method over the estimated useful life of the technology. Certain costs related to patent applications are amortized over the estimated economic lives of the patents, which is generally 20 years and typically commences at the time the patent application is filed. As of December 31, 2015, the weighted average amortization period of capitalized patent costs is approximately 9 years. Amortization expense for licensed technology and capitalized patent cost is included in research and development expenses.

Impairment of Long-lived Assets

The Company reviews long-lived assets for impairment at least annually, quarterly for intangible assets, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset’s estimated fair value and the loss recognized in current earnings. The Company recognized research and development expense of approximately $0.2 million, $0.4 million and $0.9 million for the years ended December 31, 2015, 2014 and 2013, respectively, related to patents for which the value was deemed to be impaired.  2013 also includes expense relating to licensed technology for which the value was deemed to be impaired.

Revenue Recognition

Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Certain of the Company’s revenue is generated through manufacturing contracts and stand-alone license agreements.

The Company has entered into multiple-element arrangements. In order to account for the multiple-element arrangements, the Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation.

Multiple-element arrangements

The Company has entered into multiple-element arrangements. In order to account for the multiple-element arrangements, the Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation. The delivered item(s) must have value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the Company’s control.

A delivered item is considered a separate unit of accounting when the delivered item has value to the partner on a standalone basis based on the consideration of the relevant facts and circumstances for each arrangement. Factors considered in this determination include the research capabilities of the partner and the availability of research expertise in this field in the general marketplace. Arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence, or VSOE, of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, the Company uses its best estimate of the selling price for the deliverable. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement. If facts and circumstances dictate that the license has standalone value from the undelivered items, which generally include research and development services and the manufacture of drug products, the license is identified as a separate unit of accounting and the amounts allocated to the license are recognized upon the delivery of the license, assuming the other revenue recognition criteria have been met. However, if the amounts allocated to the license through the relative selling price allocation exceed the upfront license fee, the amount recognized upon the delivery of the license is limited to the upfront fee received. If facts and circumstances dictate that the license does not have standalone value, the transaction price, including any upfront license fee payments received, are allocated to the identified separate units of accounting and recognized as those items are delivered.

The terms of the Company’s partnership agreements provide for milestone payments upon achievement of certain regulatory and commercial events. Under the Milestone Method, the Company recognizes consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following three criteria: 1) The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, 2) The consideration relates solely to past performance, and 3) The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the Company.

Contract Services, Grant and Royalty Revenue

The Company recognizes revenues from contract services and federal government research grants during the period in which the related expenditures are incurred and related payments for those services are received or collection is reasonably assured. Royalties to be received based on sales of licensed products by the Company’s partners incorporating the Company’s licensed technology are recognized when received.

Accruals for Potential Disallowed Costs on Government Contracts

The Company has contracts with U.S. government agencies under which it bills for direct and indirect costs incurred. These billed costs are subject to audit by government agencies. The Company established accruals of approximately $49,000 at each of December 31, 2015 and 2014 to provide for potential disallowed costs. In the event that the final costs allowed are different from what the Company has estimated, the Company may need to make a change in its estimated accrual, which could also affect its results of operations and cash flow.

Research and Development Costs

Research and development costs are expensed as incurred. Research and development costs include salaries and personnel-related costs, supplies and materials, outside services, costs of conducting preclinical and clinical trials, facilities costs and amortization of intangible assets. The Company accounts for its clinical trial costs by estimating the total cost to treat a patient in each clinical trial, and accruing this total cost for the patient over the estimated treatment period, which corresponds with the period over which the services are performed, beginning when the patient enrolls in the clinical trial. This estimated cost includes payments to the site conducting the trial, and patient-related lab and other costs related to the conduct of the trial. Cost per patient varies based on the type of clinical trial, the site of the clinical trial, the method of administration of the treatment, and the number of treatments that a patient receives. Treatment periods vary depending on the clinical trial. The Company makes revisions to the clinical trial cost estimates in the current period, as clinical trials progress.

Manufacturing and Production Costs

Manufacturing and production costs include expenses related to manufacturing contracts and expenses for the production of plasmid DNA for use in the Company’s research and development efforts. Manufacturing expenses related to manufacturing contracts are deferred and expensed when the related revenue is recognized. Production expenses related to the Company’s research and development efforts are expensed as incurred.

Net Loss Per Share

Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options, and the assumed issuance of common stock under restricted stock units, or RSUs, as the effect would be antidilutive. Common stock equivalents of 0.3 million, 0.5 million and 0.9 million for the years ended December 31, 2015, 2014 and 2013, respectively, were excluded from the calculation because of their antidilutive effect.

Fair Value of Financial Instruments

The carrying amounts of cash, cash equivalents, restricted cash, marketable securities, receivables, accounts payable and accrued expenses at December 31, 2015 and 2014, are considered to approximate fair value because of the short term nature of those items.

Income Taxes

The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits recorded by the Company as of the date of adoption in 2007. There are no unrecognized tax benefits included in the balance sheets that would, if recognized, affect the effective tax rate.

Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax assets and liabilities are determined based on the difference between the financial statement bases and the tax bases of assets and liabilities using enacted tax rates. A valuation allowance is established to reduce a deferred tax asset to the amount that is expected more likely than not to be realized.

Comprehensive Loss

Comprehensive loss consists of net loss and certain changes in equity that are excluded from net loss. Comprehensive loss for the years ended December 31, 2015, 2014 and 2013, has been reflected in the accompanying Statements of Comprehensive Loss. Accumulated other comprehensive income (loss), which is included in stockholders’ equity, represents unrealized gains and losses on marketable securities.

Business Segments

The Company operates in one business segment, which is within the United States, and is dedicated to research and development of DNA delivery technology.

Stock-Based Compensation

The Company records its compensation expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. Stock-based compensation includes amortization related to stock option awards based on the estimated grant date fair value. Stock-based compensation expense related to stock options includes an estimate for forfeitures and the portion that is ultimately expected to vest is recognized ratably over the vesting period of the option. In addition, the Company records expense related to RSUs granted based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the vesting term of those awards. Stock-based compensation expense related to RSUs includes an estimate for forfeitures and the portion expected to vest is recognized ratably over the requisite service period. The expected forfeiture rate of all equity based compensation is based on observed historical patterns of the Company’s employees and is estimated to be 8.75%, 8.75% and 11.2% annually for each of the years ended December 31, 2015, 2014 and 2013, respectively .

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton valuation model using the assumptions noted in the following table. The expected life of options is based on the Company’s observed historical exercise patterns. The expected volatility of stock options is based upon the historical volatility of the Company’s stock commensurate with the expected life of the option. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future.

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

Assumed risk-free interest rate

 

 

1.34%

 

 

 

1.63%

 

 

 

1.14%

 

Assumed volatility

 

 

68%

 

 

 

73%

 

 

 

72%

 

Average expected option life

 

4.5 years

 

 

4.5 years

 

 

4.5 years

 

Expected dividend yield

 

 

 

 

 

 

 

 

 

 

Recent Accounting Pronouncements

In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance was effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard beginning with the first quarter of 2014 did not have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The guidance allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2017. The Company is evaluating the alternative transition methods and the potential effects of the adoption of this update on its financial statements.

In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The amendment also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. The amended guidance is effective prospectively for fiscal years beginning after December 15, 2016. The new guidance will not have an impact on the Company’s financial position, results of operations or cash flows.

Short-Term Marketable Securities
Short-Term Marketable Securities

2. Short-Term Marketable Securities

The following is a summary of short-term marketable securities classified as available-for-sale (in thousands):

 

December 31, 2015

 

Amortized

Cost

 

 

Unrealized

Gain

 

 

Unrealized

Loss

 

 

Market

Value

 

U.S. treasuries

 

$

7,027

 

 

$

 

 

$

8

 

 

$

7,019

 

Corporate bonds

 

 

1,000

 

 

 

 

 

 

 

 

 

1,000

 

Certificates of deposit

 

 

15,239

 

 

 

 

 

 

 

 

 

15,239

 

 

 

$

23,266

 

 

$

 

 

$

8

 

 

$

23,258

 

 

December 31, 2014

 

Amortized

Cost

 

 

Unrealized

Gain

 

 

Unrealized

Loss

 

 

Market

Value

 

U.S. treasuries

 

$

5,558

 

 

$

 

 

$

1

 

 

$

5,557

 

Government-sponsored enterprise securities

 

 

7,499

 

 

 

 

 

 

6

 

 

 

7,493

 

Corporate bonds

 

 

2,025

 

 

 

 

 

 

5

 

 

 

2,020

 

Certificates of deposit

 

 

8,429

 

 

 

 

 

 

 

 

 

8,429

 

 

 

$

23,511

 

 

$

 

 

$

12

 

 

$

23,499

 

 

At December 31, 2015, none of these securities were scheduled to mature outside of one year. There were no net realized gains (losses) on sales of available-for-sale securities for the years ended December 31, 2015, 2014 and 2013. None of these investments have been in a continuous unrealized loss position for more than 12 months as of December 31, 2015 and 2014.

Long-Term Investments
Long-Term Investments

3. Long-Term Investments

As of December 31, 2015, the Company held an auction rate security with a par value of $2.5 million. This auction rate security has not experienced a successful auction since the liquidity issues experienced in the global credit and capital markets in 2008. As a result the security is classified as a long-term investment as it is scheduled to mature in 2038. The security was rated A- by Standard and Poor’s as of December 31, 2015. The security continues to pay interest according to its stated terms.

The valuation of the Company’s auction rate security is subject to uncertainties that are difficult to predict. The fair value of the security is estimated utilizing a discounted cash flow analysis. The key drivers of the valuation model include the expected term, collateral underlying the security investment, the creditworthiness of the counterparty, the timing of expected future cash flows, discount rates, liquidity and the expected holding period. The security was also compared, when possible, to other observable market data for securities with similar characteristics. As of December 31, 2015, the inputs used in the Company’s discounted cash flow analysis assumed an interest rate of 1.72%, an estimated redemption period of five years and a discount rate of 1.0%.  Based on the valuation of the security, the Company has recognized cumulative losses of $0.5 million as of December 31, 2015, none of which were realized during the year ended December 31, 2015. The losses, when recognized, are included in investment and other income. The market value of the security has partially recovered. Included in other comprehensive (loss) income are unrealized gains (losses) of $48,000, $(9,000) and $(0.2) million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, the Company had recorded cumulative unrealized gains of $0.2 million. The resulting carrying value of the auction rate security at December 31, 2015, was $2.1 million. Any future decline in market value may result in additional losses being recognized.

Fair Value Measurements
Fair Value Measurements

4. Fair Value Measurements

The Company measures fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

·

Level 1: Observable inputs such as quoted prices in active markets;

 

·

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

·

Level 3: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

Cash equivalents, marketable securities and long-term investments measured at fair value are classified in the table below in one of the three categories described above (in thousands):

 

 

 

Fair Value Measurements

 

December 31, 2015

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Certificates of deposit

 

$

15,239

 

 

$

 

 

$

 

 

$

15,239

 

U.S. treasuries

 

 

7,019

 

 

 

 

 

 

 

 

 

7,019

 

Corporate bonds

 

 

 

 

 

1,000

 

 

 

 

 

 

1,000

 

Auction rate securities

 

 

 

 

 

 

 

 

2,052

 

 

 

2,052

 

 

 

$

22,258

 

 

$

1,000

 

 

$

2,052

 

 

$

25,310

 

 

 

 

Fair Value Measurements

 

December 31, 2014

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Certificates of deposit

 

$

8,674

 

 

$

 

 

$

 

 

$

8,674

 

Money market funds

 

 

169

 

 

 

 

 

 

 

 

 

169

 

U.S. treasuries

 

 

5,557

 

 

 

 

 

 

 

 

 

5,557

 

Corporate bonds

 

 

 

 

 

2,020

 

 

 

 

 

 

2,020

 

Government-sponsored enterprise securities

 

 

 

 

 

7,493

 

 

 

 

 

 

7,493

 

Auction rate securities

 

 

 

 

 

 

 

 

1,971

 

 

 

1,971

 

 

 

$

14,400

 

 

$

9,513

 

 

$

1,971

 

 

$

25,884

 

 

The Company’s investments in U.S. treasury securities, certificates of deposit and money market funds are valued based on publicly available quoted market prices for identical securities as of December 31, 2015. The Company determines the fair value of other government-sponsored enterprise related securities with the aid of valuations provided by third parties using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. The Company validates the valuations received from its primary pricing vendors for its level 2 securities by examining the inputs used in that vendor’s pricing process and determines whether they are reasonable and observable. The Company also compares those valuations to recent reported trades for those securities. The Company did not adjust any of the valuations received from these third parties with respect to any of its level 2 securities at December 31, 2015. The valuation of the Company’s investment in auction rate securities is more fully described in Note 3.

Activity for assets measured at fair value using significant unobservable inputs (Level 3) is presented in the table below (in thousands):

 

Balance at December 31, 2014

 

$

1,971

 

Total net realized gains included in earnings

 

 

 

Total net unrealized gains included in other

   comprehensive income

 

 

81

 

Net transfers in and/out of Level 3

 

 

 

Balance at December 31, 2015

 

$

2,052

 

Amount of total losses for the period included in net loss

   attributable to the change in unrealized gains or losses

   relating to assets still held at December 31, 2015

 

$

 

 

Total cumulative unrealized losses of $0.4 million relate to Level 3 assets still held as of December 31, 2015, none of which were recognized during the years ended December 31, 2015, 2014 and 2013. The losses, when recognized, are included in investment and other income.

 

Other Balance Sheet Accounts
Other Balance Sheet Accounts

5. Other Balance Sheet Accounts

Property and equipment consisted of the following at December 31 (in thousands):

 

 

 

2015

 

 

2014

 

Equipment

 

$

17,425

 

 

$

17,515

 

Leasehold improvements

 

 

8,048

 

 

 

8,048

 

 

 

 

25,473

 

 

 

25,563

 

Less accumulated depreciation and amortization

 

 

(23,600

)

 

 

(22,924

)

 

 

$

1,873

 

 

$

2,639

 

 

Depreciation and amortization of equipment and leasehold improvements for the years ended December 31, 2015, 2014 and 2013, was $0.9 million, $1.4 million and $1.6 million, respectively.

Intangible assets consisted of the following at December 31 (in thousands):

 

 

 

2015

 

 

2014

 

Patent application costs

 

 

2,252

 

 

 

2,972

 

Accumulated amortization patent costs

 

 

(952

)

 

 

(1,312

)

 

 

$

1,300

 

 

$

1,660

 

 

Amortization of licensed technology rights and patent application costs for the years ended December 31, 2015, 2014 and 2013, was $0.2 million, $0.2 million and $0.4 million, respectively. Estimated annual amortization for these assets is $0.2 million for the years ended 2016 and 2017, $0.1 million for each of the years in the period from 2018 to 2020, and $0.6 million being recognized thereafter.

Accounts payable and accrued expenses consisted of the following at December 31 (in thousands):

 

 

 

2015

 

 

2014

 

Employee compensation

 

$

2,220

 

 

$

2,471

 

Clinical trial accruals

 

 

102

 

 

 

1,686

 

Accounts payable

 

 

733

 

 

 

227

 

Deferred rent

 

 

496

 

 

 

432

 

Other accrued liabilities

 

 

361

 

 

 

385

 

 

 

$

3,912

 

 

$

5,201

 

 

Significant Contract, License and Royalty Agreements
Significant Contract, License and Royalty Agreements

6. Significant Contract, License and Royalty Agreements

Contracts

IPPOX

In April 2015, the Company entered into a $4.1 million contract with the IPPOX Foundation to manufacture HIV-antigen plasmid DNA as a component of vaccine regimens to be evaluated in clinical trials for the prevention of HIV infection. IPPOX is a Swiss non-profit foundation that participates in the conduct of HIV vaccine clinical trials under the auspices of the Pox-Protein Public-Private Partnership, or P5, funded by the Bill & Melinda Gates Foundation and the U.S. National Institute of Allergy and Infectious Diseases, or NIAID.  These plasmids were shipped and the related revenue of $4.1 million was recognized in December 2015. This contract builds upon the Company’s 2010 agreement with IPPOX to manufacture plasmid DNA for HIV vaccine clinical trials.

Astellas

In July 2011, the Company entered into license agreements with Astellas Pharma Inc., or Astellas, granting Astellas exclusive, worldwide, royalty-bearing licenses under certain of the Company’s know-how and intellectual property to develop and commercialize certain products containing plasmids encoding certain forms of glycoprotein B and/or phosphoprotein 65, including ASP0113 but excluding CyMVectin™. Under the agreements, Astellas is responsible for the worldwide development and commercialization of products in the licensed field, at its expense, and has agreed to use commercially reasonable efforts to develop, obtain regulatory approval for and commercialize at least one licensed product for use in certain immunocompromised patients in the licensed field in the United States and certain other major markets. Under the terms of the license agreements, Astellas paid a nonrefundable upfront license fee of $25.0 million.

In 2012, the Company received a $10.0 million milestone payment upon finalization of the trial design for a Phase 3 registration trial of ASP0113 in hematopoietic stem cell transplant recipients. The Company is also entitled to receive additional cash payments potentially totaling $95.0 million for achievement of certain milestones through commercial launch and to receive double-digit royalties on net sales of products. In addition, the Company has an option to co-promote ASP0113 in the United States. Under the terms of a supply and services agreement entered into by the Company and Astellas on the same date, the Company agreed to perform certain development and regulatory activities, at Astellas’ expense, and to supply licensed products to Astellas, at Astellas’ expense, for use in development and initial commercialization activities in the licensed field.

In August 2012, the Company amended its license and supply agreements with Astellas to, among other things, extend the time period that the Company is obligated to supply licensed products for commercial use to Astellas, at Astellas’ expense, modify the allocation of $95.0 million of milestone payments among certain milestones through commercial launch and modify the structure of the royalties on net sales from a fixed double digit royalty to tiered double digit royalties.

The Company identified the deliverables at the inception of the agreements. The Company has determined that the license and related know-how, the development and regulatory services and the drug product supply individually represent separate units of accounting, because each deliverable has standalone value. The best estimated selling prices for these units of accounting was determined based on market conditions, the terms of comparable collaborative arrangements for similar technology in the pharmaceutical and biotechnology industry and entity-specific factors, such as the terms of the Company’s previous collaborative agreements, the Company’s pricing practices and pricing objectives and the nature of the research and development services to be performed for the partner. The arrangement consideration was allocated to the deliverables based on the relative selling price method.

The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable; therefore, the amount allocated to the licenses was limited to the extent of cash received. As a result, during the years ended December 31, 2015, 2014 and 2013, the Company recognized $1.8 million, $1.6 million and $0.7 million, respectively, related to the license fee and know-how. The Company will recognize the amounts allocated to research and development services as revenues under the agreements as the related services are delivered and as reimbursements are received. During the years ended December 31, 2015, 2014 and 2013, the Company recognized $8.7 million, $7.8 million and $4.4 million, respectively, of revenue related to contract services delivered. The Company will recognize as revenue the amounts allocated to the sales of drug product when the sale of that drug product has met all required specifications and the related title and risk of loss and damages have passed to Astellas. During the years ended December 31, 2015, 2014 and 2013, the Company recognized $6.0 million, $5.5 million and $1.2 million, respectively, of revenue related to drug product delivered. The Company is eligible to receive additional cash payments upon the achievement of specified regulatory and commercial milestones. The Company has determined that each of the regulatory and commercial milestones meets the definition of a milestone and that each milestone is substantive in accordance with the milestone method of revenue recognition. Accordingly, the Company expects to recognize such regulatory and commercial milestone payments as revenues under the agreements upon achievement of each milestone.

In-licensing Agreements

Astellas

In March 2015, the Company entered into a license agreement with Astellas which grants to the Company exclusive worldwide license to develop and commercialize a novel antifungal, VL-2397.  As consideration for the rights under the license, the Company issued 861,216 shares of our common stock to Astellas and made an up-front payment of $250,000 in cash. The License Agreement provides for potential development, regulatory and sales milestone payments totaling up to $99.0 million, the vast majority of which are payable upon achievement of commercial and sales milestones, and single-digit royalties on net sales of commercial products. The Company is responsible for the worldwide development, manufacturing and commercialization of licensed products, at the Company’s cost, and we are required to use commercially reasonable efforts with respect to such development and commercialization activities.

The license agreement, unless terminated earlier, will continue until expiration of Vical’s royalty obligations with respect to licensed products. Either party may terminate the license agreement earlier if the other party materially breaches the agreement and does not cure the breach within a specified notice period, or upon the other party’s insolvency.  Astellas may terminate the license agreement earlier if Vical or any of its affiliates or sublicensees oppose or challenge any of the licensed patents. Vical may terminate the license agreement on a country-by-country basis for reasonable scientific, regulatory, commercial, financial, ethical or other reasons.

City of Hope

In 2003, the Company licensed from the City of Hope on an exclusive basis various U.S. patents that provide protection for CMV-related polynucleotide based vaccines, including TransVaxTM and CyMVectinTM vaccine candidates. The agreement expires upon the last to expire of the patent rights licensed by the Company under the agreement, unless earlier terminated as set forth in the agreement. The City of Hope may terminate the agreement early, in accordance with notice provisions set forth in the agreement, if the Company ceases to operate, fails to make payments when due or materially breaches the agreement. Subject to certain conditions, the Company may terminate the agreement early at any time upon prior written notice to the City of Hope. The Company is also obligated to pay a low double-digit percentage of any payments it receives from the sub-license of products that incorporate the licensed technology. The Company paid the City of Hope $0.1 million under the agreement for each of the years ended December 31, 2015, 2014 and 2013.

CytRx

In 2001, the Company entered into an exclusive agreement with CytRx which grants to the Company the rights to use or sublicense CytRx’s poloxamer technology to enhance viral or non-viral delivery of polynucleotides in all preventive and therapeutic human and animal health applications, including CMV. The agreement excludes applications for four infectious disease vaccine targets that had been licensed to Merck and prostate-specific membrane antigen. In addition, the agreement permits the Company’s use of CytRx’s technology to enhance the delivery of proteins in prime-boost vaccine applications that involve the use of polynucleotides. As part of the agreement, the Company made a $3.8 million up-front payment and agreed to make potential future milestone and royalty payments. The license fee is fully amortized as of December 31, 2013. The Company paid CytRx $0.1 million, $0.1 million and $0.3 million under the agreement for the years ended December 31, 2015, 2014 and 2013, respectively.

Milestone Payments

The Company may be required to make future payments to its licensors based on the achievement of milestones set forth in various in-licensing agreements. In most cases, these milestone payments are based on the achievement of development or regulatory milestones, including the exercise of options to obtain licenses related to specific disease targets, commencement of various phases of clinical trials, filing of product license applications, approval of product licenses from the FDA or a foreign regulatory agency, and the first commercial sale of a related product. Payment for the achievement of milestones under the Company’s in-license agreements is highly speculative and subject to a number of contingencies.

The aggregate amount of additional milestone payments that the Company could be required to pay under its active in-license agreements in place at December 31, 2015, is approximately $106.1 million. These amounts assume that all remaining milestones associated with the milestone payments are met. In the event that product license approval for any of the related products is obtained, the Company may be required to make royalty payments in addition to these milestone payments. Although the Company believes that some of the milestones contained in its in-license agreements may be achieved, it is highly unlikely that a significant number of them will be achieved. Because the milestones are contingent the Company is not in a position to reasonably estimate how much, if any, of the potential milestone payments will ultimately be paid. Additionally, under the in-license agreements, many of the milestone events are related to progress in clinical trials which the Company estimates will take several years to achieve.

Commitments and Contingencies
Commitments and Contingencies

7. Commitments and Contingencies

Facility Leases

The Company is currently leasing its facility which has approximately 68,400 square feet of manufacturing, research laboratory and office space. The lease expires in August 2017. The Company has the option to renew the lease for three additional five-year periods beyond its expiration.

The lease related to the facility is treated as an operating lease. The minimum annual rent on the facility is subject to increases specified in the lease. The Company is also required to pay taxes, insurance and operating costs under the facility lease. The Company recognizes level monthly rent for its facility lease over the entire lease period. The monthly rent is calculated by adding the total rent payments over the entire lease period and then dividing the result by the total term of the lease. The $0.9 million difference between the base rent paid and the rent expensed through December 31, 2015 is recorded as deferred rent in the balance sheet. Rent expense for each of the years ended December 31, 2015, 2014 and 2013 was $2.8 million.

At December 31, 2015, future minimum rental payments due under the Company’s facilities lease were as follows (in thousands):

 

Year ending December 31,

 

 

 

 

2016

 

$

3,602

 

2017

 

 

2,433

 

2018

 

 

 

2019

 

 

 

2020

 

 

 

Thereafter

 

 

 

Total lease payments

 

$

6,035

 

 

Other Contingencies

In late October and early November 2013, following the Company’s announcement of the results of its Phase 3 trial of Allovectin® and the subsequent decline of the price of the Company’s common stock, two putative securities class action complaints were filed in the U.S. District Court for the Southern District of California against the Company and certain of its current and former officers. On February 26, 2014, the two cases were consolidated into one action and a lead plaintiff and lead counsel were appointed (“Consolidation Order”).  On May 12, 2014, the lead plaintiff filed a first amended consolidated complaint alleging that the defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934 by making materially false and misleading statements regarding our business prospects and the prospects for Allovectin®, thereby artificially inflating the price of the Company’s common stock.  On June 9, 2014, the defendants filed a motion to dismiss the first amended complaint and a motion to strike certain allegations in the amended complaint.  On March 9, 2015, the Court granted defendants’ motion to dismiss the first amended complaint and terminated as moot defendants’ motion to strike, or Order. The lead plaintiff was granted leave to amend his first amended complaint on or before March 25, 2015. The lead plaintiff chose not to amend his complaint and instead stipulated to an entry of judgment. On April 28, 2015, the Court entered final judgment dismissing the action, or Judgment. On May 28, 2015, the lead plaintiff appealed the Judgment to the U.S. Court of Appeals for the Ninth Circuit. That same day, another group of the Company’s stockholders that had previously moved for appointment as lead plaintiff, or the Vical Investor Group, also appealed the Judgment, as well as the Consolidation Order, to the U.S. Court of Appeals for the Ninth Circuit. On August 3, 2015, the Vical Investor Group voluntarily dismissed its appeal. On October 8, 2015, the lead plaintiff-appellant filed an opening brief in support of his appeal. Defendants filed an answering brief on December 9, 2015. On January 27, 2016, lead plaintiff-appellant filed a motion to dismiss his appeal with prejudice, which was joined by defendants. On February 1, 2016, the Ninth Circuit granted the joint motion and dismissed the appeal.     

In the ordinary course of business, the Company may become a party to additional lawsuits involving various matters. The Company is unaware of any such lawsuits presently pending against it which, individually or in the aggregate, are deemed to be material to the Company’s financial condition or results of operations.

The Company prosecutes its intellectual property vigorously to obtain the broadest valid scope for its patents. Due to uncertainty of the ultimate outcome of these matters, the impact on future operating results or the Company’s financial condition is not subject to reasonable estimates.

Stockholders' Equity
Stockholders' Equity

8. Stockholders’ Equity

As of the date of this filing the Company has on file a shelf registration statement that allows it to raise up to an additional $100.0 million from the sale of common stock, preferred stock, debt securities and/or warrants. Specific terms of any offering under the shelf registration statements and the securities involved would be established at the time of sale.

In March 2015, the Company entered into license and stock purchase agreements with Astellas, granting the Company an exclusive worldwide license to develop and commercialize a novel antifungal, VL-2397, formally known as ASP2397.  VL-2397 is a potential therapeutic for invasive fungal infections, including invasive aspergillosis.  Astellas received 861,216 shares of unregistered Company common stock and $250,000 in cash.  The $250,000 cash payment and the fair value of the common stock issued of $775,094 were included in research and development expenses during the year ended December 31, 2015.

In April 2014, the Company entered into an At-the-Market Issuance Sales Agreement, or ATM Agreement, with Meyers Associates, L.P. (doing business as Brinson Patrick, a division of Meyers Associates, L.P.), or Brinson Patrick, under which the Company could issue and sell up to $25.0 million of shares of its common stock from time to time. During the year ended December 31, 2014, the Company sold 3,291,521 shares under the Sales Agreement and received gross proceeds of $4,067,751. There were no shares sold during the year ended December 31, 2015. This agreement expired in May 2015.

 

 

Stock Based Compensation
Stock Based Compensation

9. Stock Based Compensation

The Company has a stock-based compensation plan which is described below. Total stock-based compensation expense of $1.9 million, $3.2 million and $3.5 million was recognized for the years ended December 31, 2015, 2014 and 2013, respectively. Total stock-based compensation expense was allocated to research and development, manufacturing and production and general and administrative expense as follows (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Research and development

 

$

392

 

 

$

785

 

 

$

908

 

Manufacturing and production

 

 

159

 

 

 

229

 

 

 

258

 

General and administrative

 

 

1,351

 

 

 

2,145

 

 

 

2,300

 

Total stock-based compensation expense

 

$

1,902

 

 

$

3,159

 

 

$

3,466

 

Cash received from RSU grants and options exercised

 

$

3

 

 

$

2

 

 

$

816

 

 

Stock Incentive Plan

The Company has a stock incentive plan, under which 19,700,000 shares of common stock, subject to adjustment as provided in the plan, are reserved for issuance to employees, non-employee directors and consultants of the Company. As of December 31, 2015 there were 16,448,052 shares reserved for future issuance under the plan. The plan provides for the grant of incentive and nonstatutory stock options and the direct award or sale of shares, including restricted stock. The exercise price of stock options must equal at least the fair market value of the underlying common stock on the date of grant. The maximum term of options granted under the plan is ten years. Except for annual grants to non-employee directors which vest at the next annual meeting, options generally vest 25% on the first anniversary of the date of grant, with the balance vesting quarterly over the remaining three years. The plan also limits the number of options that may be granted to any plan participant in a single calendar year to 1,300,000 shares.

The Company has granted RSUs to executive officers, other executives, and employees under the stock incentive plan. In 2015, 2014, and 2013 the Company granted RSUs covering an aggregate of 788,429, 828,000, and 409,189 shares of common stock, respectively. These RSUs generally vest 25% on the first anniversary date of the grant, with the remaining rights vesting quarterly over the remaining three years and, once vested, allow the participants to acquire the underlying shares of common stock at par value. The participants are not entitled to sell or transfer any unvested RSUs and are not entitled to vote or receive dividends on any shares of common stock covered by the RSUs prior to the acquisition of such shares. Granted but unvested RSUs are forfeited at termination of employment. Compensation expense related to the RSUs for the years ended December 31, 2015, 2014, and 2013 was approximately $0.8 million, $1.1 million and $1.0 million, respectively.

The following table summarizes stock option transactions under the Company’s stock incentive plans for the years ended December 31, 2015, 2014 and 2013:

 

 

 

Shares

 

 

Weighted Average

Exercise Price

 

Outstanding December 31, 2012

 

 

7,996,569

 

 

$

3.36

 

Granted

 

 

2,876,382

 

 

$

2.56

 

Exercised

 

 

(347,450

)

 

$

2.34

 

Forfeited

 

 

(2,121,313

)

 

$

3.27

 

Outstanding December 31, 2013

 

 

8,404,188

 

 

$

3.15

 

Granted

 

 

1,889,614

 

 

$

1.40

 

Exercised

 

 

 

 

$

 

Forfeited

 

 

(1,699,370

)

 

$

3.69

 

Outstanding December 31, 2014

 

 

8,594,432

 

 

$

2.66

 

Granted

 

 

2,356,750

 

 

$

1.01

 

Exercised

 

 

 

 

$

 

Forfeited

 

 

(1,495,344

)

 

$

2.15

 

Outstanding December 31, 2015

 

 

9,455,838

 

 

$

2.33

 

Vested and unvested options expected to vest as of

   December 31, 2015

 

 

9,235,450

 

 

$

2.35

 

 

The number of underlying shares and weighted average exercise price of options exercisable at December 31, 2015, 2014 and 2013, were 6,884,679 shares at $2.68, 6,037,169 shares at $2.89, and 5,212,897 shares at $3.49, respectively. The weighted average remaining contractual term of options outstanding and options exercisable at December 31, 2015, was 6.3 years and 5.5 years, respectively. The weighted average remaining contractual term of vested and unvested options expected to vest at December 31, 2015, was 6.3 years. The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2015, was $0.0 million and $0.0 million, respectively. As of December 31, 2015, the total unrecognized compensation cost related to unvested options was $0.8 million, which is expected to be recognized over a weighted-average period of 1.34 years.

The weighted average grant-date fair value of options granted during the years ended December 31, 2015, 2014 and 2013, was $0.51, $0.73 and $1.31 per share, respectively. There were no options exercised during the years ended December 31, 2015 or 2014.  The total intrinsic value of options exercised during the year ended December 31, 2013 was $0.5 million. At December 31, 2015, there were 5,421,917 shares available for grant under the Company’s stock incentive plans.

A summary of the outstanding RSUs as of December 31, 2015, and changes during the year then ended is presented below:

 

 

 

Shares

 

 

Weighted Average

Grant-Date Fair

Value per Share

 

Unvested at December 31, 2014

 

 

960,066

 

 

$

1.70

 

Granted

 

 

788,429

 

 

$

1.04

 

Vested

 

 

(579,677

)

 

$

1.68

 

Cancelled

 

 

(128,076

)

 

$

1.37

 

Unvested at December 31, 2015

 

 

1,040,742

 

 

$

1.26

 

 

The aggregate grant-date fair value of RSUs granted during the years ended December 31, 2015, 2014 and 2013, was $0.8 million, $1.2 million and $1.0 million, respectively. As of December 31, 2015, the total unrecognized compensation cost related to unvested RSUs was $0.5 million, which is expected to be recognized over a weighted average period of 1.35 years. The aggregate grant-date fair value of shares subject to RSUs vested during the years ended December 31, 2015, 2014 and 2013, was $1.0 million, $0.8 million and $1.0 million, respectively. As of December 31, 2015, there were 529,555 shares of common stock underlying RSUs that were fully vested but the issuance of such shares has been deferred.

Restructuring Costs
Restructuring Costs

10. Restructuring Costs

In August 2013, the Company announced that its recently completed Phase 3 clinical trial of Allovectin®, the Company’s investigational cancer immunotherapy, failed to meet the pre-established endpoints. As a result, the Company restructured its operations to conserve capital, which included a staff reduction of 47 employees and the impairment of certain intangible assets. The Company recorded charges for employee termination benefits during the year ended December 31, 2013 of $2.2 million, of which $1.2 million, $0.5 million and $0.5 million is included in research and development, manufacturing and production and general and administrative expenses, respectively. The Company also recorded an asset impairment charge during the year ended December 31, 2013 of $0.7 million, which is included in research and development expenses.

Income Taxes
Income Taxes

11. Income Taxes

At December 31, 2015, the Company had deferred tax assets of $120.8 million. Due to uncertainties surrounding the Company’s ability to generate future taxable income to realize these assets, a full valuation allowance has been established to offset the net deferred tax asset. Pursuant to Sections 382 and 383 of the Internal Revenue Code, or IRC, annual use of the Company’s net operating loss and credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The Company determined that such an ownership change occurred on December 29, 2006, as defined in the provisions of Section 382 of the IRC as a result of various stock issuances used to finance the Company’s operations. Such ownership change resulted in annual limitations on the utilization of tax attributes, including net operating loss carryforwards and tax credits. The Company estimates that $101.2 million of its net operating loss carryforwards were effectively eliminated under Section 382 for federal tax purposes. A portion of the remaining net operating losses limited by Section 382 become available each year. The Company also estimates that $12.2 million of its research and development credits and other tax credits were effectively eliminated under Section 383 for federal purposes. As a result of the Section 382 analysis completed during 2012, the Company has included in the deferred tax asset schedule the deferred tax assets for net operating losses of $83.1 million and tax credits of $19.9 million. The company’s Section 382 analysis was completed through December 31, 2011. There is a risk that additional changes in ownership could have occurred since that date. If a change in ownership were to have occurred, additional net operating loss and tax credit carryforwards could be eliminated or restricted. If eliminated, the related asset would be removed from the deferred tax asset schedule with a corresponding reduction in the valuation allowance.

The Company has historically filed its California income tax returns as doing business only in the state of California.  Accordingly, all of its tax operating losses have been allocated to California.  On December 31, 2015, the California Supreme Court overturned the decision of the California Court of Appeals in Gillette v. FTB.  The California Supreme Court ruling, coupled with administrative guidance from the California Franchise Tax Board, has the effect of requiring California businesses to apportion their losses to California using a single sales factor, based on a market approach.  Accordingly, the Company has preliminarily redetermined its California tax operating losses for 2013 through 2015 as if it were a multistate business subject to the California single sales factor market rules.  Such an analysis has not been completed, and therefore the Company has adjusted its California net operating loss carryforwards and deferred tax assets to the state rate of zero in its financial statement disclosures.  The California tax effect of the Company’s 2013 and 2014 net operating losses is reflected as an increase in unrecognized tax benefits in the table below.

Deferred income taxes result primarily from temporary differences between financial and tax reporting.  Deferred tax assets and liabilities are determined based on the difference between the financial statement bases and the tax bases of assets and liabilities using enacted tax rates.  A valuation allowance is established to reduce deferred tax assets to the amount that is expected more likely than not to be realized.

         

 

Significant components of the Company’s deferred tax assets as of December 31, 2015 and 2014 are listed below. A valuation allowance of $120.8 million and $124.9 million at December 31, 2015 and 2014, respectively, has been recognized to offset the net deferred tax assets as realization of such assets is uncertain.

Amounts for the years ended December 31 were as follows (in thousands):

 

Deferred Tax Assets

 

2015

 

 

2014

 

Net operating losses

 

$

83,143

 

 

$

85,510

 

Credit carryovers

 

 

19,903

 

 

 

19,903

 

Depreciation and amortization

 

 

13,944

 

 

 

14,922

 

Accruals and reserves

 

 

609

 

 

 

808

 

Capital loss carryover

 

 

85

 

 

 

100

 

Other

 

 

3,114

 

 

 

3,660

 

Total deferred tax assets

 

 

120,798

 

 

 

124,903

 

Less valuation allowance

 

 

(120,798

)

 

 

(124,903

)

Net deferred tax assets

 

$

 

 

$

 

 

In November 2015, the FASB issued Accounting Standard Update No. 2015-17, “Balance Sheet Classification of Deferred Taxes”, an update to ASC 740, Income Taxes (“Update”).  Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position.  To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position.  The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update.

For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  The Board also decided to permit earlier application by all entities as of the beginning of any interim or annual reporting period.  The Board further provides that this Update may be applied to all deferred tax liabilities and assets retrospectively to all periods presented.  The Company chose to adopt the Update in fiscal year ended December 31, 2015 and apply this Update on a prospective basis.

The reconciliation between the provision for income taxes and income taxes computed using the U.S. federal statutory corporate tax rate were as follows for the years ended December 31 (in thousands):

 

 

 

2015

 

 

2014

 

 

2013

 

Computed “expected” tax benefit

 

$

(3,152

)

 

$

(5,607

)

 

$

(10,621

)

State income taxes, net of federal benefit

 

 

 

 

 

(444

)

 

 

(1,947

)

Tax effect of:

 

 

 

 

 

 

 

 

 

 

 

 

Change in valuation allowance

 

 

(4,069

)

 

 

5,102

 

 

 

13,074

 

Rate change

 

 

3,524

 

 

 

 

 

 

 

Expiration of prior year credits and net operating

   losses

 

 

786

 

 

 

675

 

 

 

(237

)

Research and development and other tax credits

   carryovers

 

 

 

 

 

 

 

 

(672

)

Stock compensation

 

 

376

 

 

 

274

 

 

 

337

 

Uncertain tax positions

 

 

3,074

 

 

 

 

 

 

 

Other

 

 

(539

)

 

 

 

 

 

66

 

Provision for income taxes

 

$

 

 

$

 

 

$

 

 

As of December 31, 2015 and 2014, the Company had available federal net operating loss carryforwards of approximately $311.3 million and $307.3 million, respectively, which expire from 2018 through 2035. In addition, the Company had federal research and development credit and orphan drug credit carryforwards of $26.3 million and $26.3 million as of December 31, 2015 and 2014, respectively, to reduce future federal income taxes, if any. These carryforwards expire from 2018 through 2033 and are subject to review and possible adjustment by the Internal Revenue Service. The Company also has available California state net operating loss carryforwards of approximately $262.8 million and $275.0 million as of December 31, 2015 and 2014, respectively, which expire from 2016 to 2035. In addition, the Company had California research and development credits of approximately $8.8 million as of December 31, 2015 and 2014 to reduce future California income tax, if any. The California research and development credits do not expire.

The Company generated windfall tax benefits from the settlement of certain stock awards. The tax benefit will be recorded as a credit to additional paid-in capital in the year the deduction reduces income taxes payable. The net operating loss carryforwards related to these windfall tax benefits of approximately $1.6 million are included in the net operating loss carryforwards disclosed above.

The Company recognizes liabilities for uncertain tax positions based on a two-step process.  The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any.  The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.  While the Company believes that it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcome of examinations by tax authorities in determining the adequacy of its provision for income taxes.

The Company has not completed an analysis of uncertain tax positions related to credits recorded as deferred tax assets.  If such analysis is performed at a later date and an uncertain tax position is identified, the related deferred tax asset would be reduced along with a corresponding reduction in the valuation allowance.

The following table summarizes the activity related to our unrecognized tax benefits (in thousands):

 

 

 

2015

 

 

2014

 

 

2013

 

Beginning balance

 

$

582

 

 

$

 

 

$

 

Increases related to prior year tax positions

 

 

3,758

 

 

 

 

 

 

 

Increases related to current year tax positions

 

 

 

 

 

582

 

 

 

 

Ending balance

 

$

4,340

 

 

$

582

 

 

$

 

 

As of December 31, 2015 and 2014, the Company had gross unrecognized tax benefits of $4.3 million and $0.6 million, respectively, none of which would affect the effective tax rate.  The Company does not anticipate any significant decreases in its unrecognized tax benefits over the next 12 months.  The Company’s policy is to recognize the interest expense and/or penalties related to income tax matters as a component of income tax expense.  The Company had no accrual for interest or penalties on its balance sheets at December 31, 2015 or December 31, 2014, and has not recognized interest and/or penalties in its statements of operations for any of the years ended December 31, 2015, 2014 or 2013.

The Company is subject to taxation in the United States and California. The Company’s tax years for 1997 and forward are subject to examination by the United States and California tax authorities due to the carryforward of unutilized net operating losses and R&D credits.

 

 

Employee Benefit Plan
Employee Benefit Plan

12. Employee Benefit Plan

The Company has a defined contribution savings plan under section 401(k) of the IRC. The plan covers substantially all employees. The Company matches employee contributions made to the plan according to a specified formula. The Company’s matching contributions totaled approximately $0.1 million, $0.1 million and $0.2 million for the years ended 2015, 2014 and 2013, respectively.

 

Summary of (Unaudited) Quarterly Financial Information
Summary of (Unaudited) Quarterly Financial Information

13. Summary of (Unaudited) Quarterly Financial Information

The following is a summary of the Company’s (unaudited) quarterly results of operations for the years ended December 31 (in thousands, except per share amounts):

 

2015:

 

March 31,

 

 

June 30,

 

 

Sept. 30,

 

 

Dec. 31,

 

Total revenues

 

$

4,944

 

 

$

4,176

 

 

$

5,017

 

 

$

6,813

 

Total operating expenses

 

 

8,801

 

 

 

6,968

 

 

 

5,350

 

 

 

9,235

 

Net loss

 

 

(3,821

)

 

 

(2,762

)

 

 

(300

)

 

 

(2,355

)

Basic and diluted net loss per share (1)

 

 

(0.04

)

 

 

(0.03

)

 

 

(0.00

)

 

 

(0.03

)

 

2014:

 

March 31,

 

 

June 30,

 

 

Sept. 30,

 

 

Dec. 31,

 

Total revenues

 

$

2,447

 

 

$

4,505

 

 

$

3,442

 

 

$

4,823

 

Total operating expenses

 

 

5,930

 

 

 

8,570

 

 

 

7,838

 

 

 

9,505

 

Net income (loss)

 

 

(3,455

)

 

 

(4,040

)

 

 

(4,364

)

 

 

(4,633

)

Basic and diluted net loss per share (1)

 

 

(0.04

)

 

 

(0.05

)

 

 

(0.05

)

 

 

(0.05

)

 

(1)

Net income (loss) per share is computed independently for each quarter and the full year based upon respective shares outstanding. Therefore, the sum of the quarterly loss per share amounts may not equal the annual amounts reported.

 

Organization and Summary of Significant Accounting Policies (Policies)

Organization and Business Activity

Vical Incorporated, or the Company, a Delaware corporation, was incorporated in April 1987 and has devoted substantially all of its resources since that time to its research and development programs. The Company researches and develops biopharmaceutical products, including those based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases.

All of the Company’s potential products are in research and development phases. No revenues have been generated from the sale of any such products, nor are any such revenues expected for at least the next several years. The Company earns revenue from research and development agreements with pharmaceutical collaborators and from contract manufacturing agreements. Most of the Company’s product candidates will require significant additional research and development efforts, including extensive preclinical and clinical testing. All product candidates that advance to clinical testing will require regulatory approval prior to commercial use, and will require significant costs for commercialization. There can be no assurance that the Company’s research and development efforts, or those of its collaborators, will be successful. The Company expects to continue to incur substantial losses and not generate positive cash flows from operations for at least the next several years. No assurance can be given that the Company can generate sufficient product revenue to become profitable or generate positive cash flows from operations.

Basis of Presentation

These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make informed estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes. Actual results could differ materially from those estimates.

Cash, Cash Equivalents and Marketable Securities

Cash and cash equivalents consist of cash and highly liquid securities with original maturities at the date of acquisition of ninety days or less and can be liquidated without prior notice or penalty. Investments with an original maturity of more than ninety days are considered marketable securities and have been classified by management as available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from sales of these securities to fund its operations, as necessary. Such investments are carried at fair value, with unrealized gains and losses included as a separate component of stockholders’ equity. Realized gains and losses from the sale of available-for-sale securities or the amounts, net of tax, reclassified out of accumulated other comprehensive income (loss), if any, are determined on a specific identification basis.

Restricted Cash

The Company is required to maintain a letter of credit securing an amount equal to twelve months of the current monthly installment of base rent for the term of the lease for its facilities, which ends in August 2017. Under certain circumstances the Company may be able to eliminate the need for the letter of credit. At December 31, 2015 and 2014, restricted cash of $3.2 million  was pledged as collateral for the letter of credit.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, marketable securities and receivables. The Company invests its excess cash in debt instruments of financial institutions and of corporations with above average credit ratings, in U.S. government obligations, and in money market funds and certificates of deposits at financial institutions.

Property and Equipment

Property and equipment is recorded at cost and depreciation is computed using the straight-line method over the estimated useful lives of the assets. Assets acquired pursuant to capital lease arrangements and leasehold improvements are amortized using the straight-line method over the shorter of the life of the remaining lease term or the remaining useful life of the asset. Manufacturing equipment has estimated useful lives of ten years. All other property and equipment have estimated useful lives of 3 to 5 years. Maintenance and repairs of property and equipment are expensed as incurred.

Intangible Assets

Intangible assets include certain costs related to patent applications. The Company capitalizes license fees paid to acquire access to proprietary technology if the technology is expected to have alternative future use in multiple research and development projects. The cost of licensed technology rights is amortized using the straight-line method over the estimated useful life of the technology. Certain costs related to patent applications are amortized over the estimated economic lives of the patents, which is generally 20 years and typically commences at the time the patent application is filed. As of December 31, 2015, the weighted average amortization period of capitalized patent costs is approximately 9 years. Amortization expense for licensed technology and capitalized patent cost is included in research and development expenses.

Impairment of Long-lived Assets

The Company reviews long-lived assets for impairment at least annually, quarterly for intangible assets, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset’s estimated fair value and the loss recognized in current earnings. The Company recognized research and development expense of approximately $0.2 million, $0.4 million and $0.9 million for the years ended December 31, 2015, 2014 and 2013, respectively, related to patents for which the value was deemed to be impaired.  2013 also includes expense relating to licensed technology for which the value was deemed to be impaired.

Revenue Recognition

Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Certain of the Company’s revenue is generated through manufacturing contracts and stand-alone license agreements.

The Company has entered into multiple-element arrangements. In order to account for the multiple-element arrangements, the Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation.

Multiple-element arrangements

The Company has entered into multiple-element arrangements. In order to account for the multiple-element arrangements, the Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation. The delivered item(s) must have value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the Company’s control.

A delivered item is considered a separate unit of accounting when the delivered item has value to the partner on a standalone basis based on the consideration of the relevant facts and circumstances for each arrangement. Factors considered in this determination include the research capabilities of the partner and the availability of research expertise in this field in the general marketplace. Arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence, or VSOE, of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, the Company uses its best estimate of the selling price for the deliverable. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement. If facts and circumstances dictate that the license has standalone value from the undelivered items, which generally include research and development services and the manufacture of drug products, the license is identified as a separate unit of accounting and the amounts allocated to the license are recognized upon the delivery of the license, assuming the other revenue recognition criteria have been met. However, if the amounts allocated to the license through the relative selling price allocation exceed the upfront license fee, the amount recognized upon the delivery of the license is limited to the upfront fee received. If facts and circumstances dictate that the license does not have standalone value, the transaction price, including any upfront license fee payments received, are allocated to the identified separate units of accounting and recognized as those items are delivered.

The terms of the Company’s partnership agreements provide for milestone payments upon achievement of certain regulatory and commercial events. Under the Milestone Method, the Company recognizes consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following three criteria: 1) The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, 2) The consideration relates solely to past performance, and 3) The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the Company.

Contract Services, Grant and Royalty Revenue

The Company recognizes revenues from contract services and federal government research grants during the period in which the related expenditures are incurred and related payments for those services are received or collection is reasonably assured. Royalties to be received based on sales of licensed products by the Company’s partners incorporating the Company’s licensed technology are recognized when received.

Accruals for Potential Disallowed Costs on Government Contracts

The Company has contracts with U.S. government agencies under which it bills for direct and indirect costs incurred. These billed costs are subject to audit by government agencies. The Company established accruals of approximately $49,000 at each of December 31, 2015 and 2014 to provide for potential disallowed costs. In the event that the final costs allowed are different from what the Company has estimated, the Company may need to make a change in its estimated accrual, which could also affect its results of operations and cash flow.

Research and Development Costs

Research and development costs are expensed as incurred. Research and development costs include salaries and personnel-related costs, supplies and materials, outside services, costs of conducting preclinical and clinical trials, facilities costs and amortization of intangible assets. The Company accounts for its clinical trial costs by estimating the total cost to treat a patient in each clinical trial, and accruing this total cost for the patient over the estimated treatment period, which corresponds with the period over which the services are performed, beginning when the patient enrolls in the clinical trial. This estimated cost includes payments to the site conducting the trial, and patient-related lab and other costs related to the conduct of the trial. Cost per patient varies based on the type of clinical trial, the site of the clinical trial, the method of administration of the treatment, and the number of treatments that a patient receives. Treatment periods vary depending on the clinical trial. The Company makes revisions to the clinical trial cost estimates in the current period, as clinical trials progress.

Manufacturing and Production Costs

Manufacturing and production costs include expenses related to manufacturing contracts and expenses for the production of plasmid DNA for use in the Company’s research and development efforts. Manufacturing expenses related to manufacturing contracts are deferred and expensed when the related revenue is recognized. Production expenses related to the Company’s research and development efforts are expensed as incurred.

Net Loss Per Share

Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options, and the assumed issuance of common stock under restricted stock units, or RSUs, as the effect would be antidilutive. Common stock equivalents of 0.3 million, 0.5 million and 0.9 million for the years ended December 31, 2015, 2014 and 2013, respectively, were excluded from the calculation because of their antidilutive effect.

Fair Value of Financial Instruments

The carrying amounts of cash, cash equivalents, restricted cash, marketable securities, receivables, accounts payable and accrued expenses at December 31, 2015 and 2014, are considered to approximate fair value because of the short term nature of those items.

Income Taxes

The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits recorded by the Company as of the date of adoption in 2007. There are no unrecognized tax benefits included in the balance sheets that would, if recognized, affect the effective tax rate.

Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax assets and liabilities are determined based on the difference between the financial statement bases and the tax bases of assets and liabilities using enacted tax rates. A valuation allowance is established to reduce a deferred tax asset to the amount that is expected more likely than not to be realized.

Comprehensive Loss

Comprehensive loss consists of net loss and certain changes in equity that are excluded from net loss. Comprehensive loss for the years ended December 31, 2015, 2014 and 2013, has been reflected in the accompanying Statements of Comprehensive Loss. Accumulated other comprehensive income (loss), which is included in stockholders’ equity, represents unrealized gains and losses on marketable securities.

Business Segments

The Company operates in one business segment, which is within the United States, and is dedicated to research and development of DNA delivery technology.

Stock-Based Compensation

The Company records its compensation expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. Stock-based compensation includes amortization related to stock option awards based on the estimated grant date fair value. Stock-based compensation expense related to stock options includes an estimate for forfeitures and the portion that is ultimately expected to vest is recognized ratably over the vesting period of the option. In addition, the Company records expense related to RSUs granted based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the vesting term of those awards. Stock-based compensation expense related to RSUs includes an estimate for forfeitures and the portion expected to vest is recognized ratably over the requisite service period. The expected forfeiture rate of all equity based compensation is based on observed historical patterns of the Company’s employees and is estimated to be 8.75%, 8.75% and 11.2% annually for each of the years ended December 31, 2015, 2014 and 2013, respectively .

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton valuation model using the assumptions noted in the following table. The expected life of options is based on the Company’s observed historical exercise patterns. The expected volatility of stock options is based upon the historical volatility of the Company’s stock commensurate with the expected life of the option. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future.

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

Assumed risk-free interest rate

 

 

1.34%

 

 

 

1.63%

 

 

 

1.14%

 

Assumed volatility

 

 

68%

 

 

 

73%

 

 

 

72%

 

Average expected option life

 

4.5 years

 

 

4.5 years

 

 

4.5 years

 

Expected dividend yield

 

 

 

 

 

 

 

 

 

 

Recent Accounting Pronouncements

In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance was effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard beginning with the first quarter of 2014 did not have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The guidance allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2017. The Company is evaluating the alternative transition methods and the potential effects of the adoption of this update on its financial statements.

In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The amendment also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. The amended guidance is effective prospectively for fiscal years beginning after December 15, 2016. The new guidance will not have an impact on the Company’s financial position, results of operations or cash flows.

Organization and Summary of Significant Accounting Policies (Tables)
Schedule of Assumptions Used to Estimate the Fair Value of Each Option Award

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton valuation model using the assumptions noted in the following table.

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

Assumed risk-free interest rate

 

 

1.34%

 

 

 

1.63%

 

 

 

1.14%

 

Assumed volatility

 

 

68%

 

 

 

73%

 

 

 

72%

 

Average expected option life

 

4.5 years

 

 

4.5 years

 

 

4.5 years

 

Expected dividend yield

 

 

 

 

 

 

 

 

 

 

Short-Term Marketable Securities (Tables)
Summary of Short-Term Marketable Securities

The following is a summary of short-term marketable securities classified as available-for-sale (in thousands):

 

December 31, 2015

 

Amortized

Cost

 

 

Unrealized

Gain

 

 

Unrealized

Loss

 

 

Market

Value

 

U.S. treasuries

 

$

7,027

 

 

$

 

 

$

8

 

 

$

7,019

 

Corporate bonds

 

 

1,000

 

 

 

 

 

 

 

 

 

1,000

 

Certificates of deposit

 

 

15,239

 

 

 

 

 

 

 

 

 

15,239

 

 

 

$

23,266

 

 

$

 

 

$

8

 

 

$

23,258

 

 

December 31, 2014

 

Amortized

Cost

 

 

Unrealized

Gain

 

 

Unrealized

Loss

 

 

Market

Value

 

U.S. treasuries

 

$

5,558

 

 

$

 

 

$

1

 

 

$

5,557

 

Government-sponsored enterprise securities

 

 

7,499

 

 

 

 

 

 

6

 

 

 

7,493

 

Corporate bonds

 

 

2,025

 

 

 

 

 

 

5

 

 

 

2,020

 

Certificates of deposit

 

 

8,429

 

 

 

 

 

 

 

 

 

8,429

 

 

 

$

23,511

 

 

$

 

 

$

12

 

 

$

23,499

 

 

Fair Value Measurements (Tables)

Cash equivalents, marketable securities and long-term investments measured at fair value are classified in the table below in one of the three categories described above (in thousands):

 

 

 

Fair Value Measurements

 

December 31, 2015

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Certificates of deposit

 

$

15,239

 

 

$

 

 

$

 

 

$

15,239

 

U.S. treasuries

 

 

7,019

 

 

 

 

 

 

 

 

 

7,019

 

Corporate bonds

 

 

 

 

 

1,000

 

 

 

 

 

 

1,000

 

Auction rate securities

 

 

 

 

 

 

 

 

2,052

 

 

 

2,052

 

 

 

$

22,258

 

 

$

1,000

 

 

$

2,052

 

 

$

25,310

 

 

 

 

Fair Value Measurements

 

December 31, 2014

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Certificates of deposit

 

$

8,674

 

 

$

 

 

$

 

 

$

8,674

 

Money market funds

 

 

169

 

 

 

 

 

 

 

 

 

169

 

U.S. treasuries

 

 

5,557

 

 

 

 

 

 

 

 

 

5,557

 

Corporate bonds

 

 

 

 

 

2,020

 

 

 

 

 

 

2,020

 

Government-sponsored enterprise securities

 

 

 

 

 

7,493

 

 

 

 

 

 

7,493

 

Auction rate securities

 

 

 

 

 

 

 

 

1,971

 

 

 

1,971

 

 

 

$

14,400

 

 

$

9,513

 

 

$

1,971

 

 

$

25,884

 

 

Activity for assets measured at fair value using significant unobservable inputs (Level 3) is presented in the table below (in thousands):

 

Balance at December 31, 2014

 

$

1,971

 

Total net realized gains included in earnings

 

 

 

Total net unrealized gains included in other

   comprehensive income

 

 

81

 

Net transfers in and/out of Level 3

 

 

 

Balance at December 31, 2015

 

$

2,052

 

Amount of total losses for the period included in net loss

   attributable to the change in unrealized gains or losses

   relating to assets still held at December 31, 2015

 

$

 

 

Other Balance Sheet Accounts (Tables)

Property and equipment consisted of the following at December 31 (in thousands):

 

 

 

2015

 

 

2014

 

Equipment

 

$

17,425

 

 

$

17,515

 

Leasehold improvements

 

 

8,048

 

 

 

8,048

 

 

 

 

25,473

 

 

 

25,563

 

Less accumulated depreciation and amortization

 

 

(23,600

)

 

 

(22,924

)

 

 

$

1,873

 

 

$

2,639

 

 

Intangible assets consisted of the following at December 31 (in thousands):

 

 

 

2015

 

 

2014

 

Patent application costs

 

 

2,252

 

 

 

2,972

 

Accumulated amortization patent costs

 

 

(952

)

 

 

(1,312

)

 

 

$

1,300

 

 

$

1,660

 

 

Accounts payable and accrued expenses consisted of the following at December 31 (in thousands):

 

 

 

2015

 

 

2014

 

Employee compensation

 

$

2,220

 

 

$

2,471

 

Clinical trial accruals

 

 

102

 

 

 

1,686

 

Accounts payable

 

 

733

 

 

 

227

 

Deferred rent

 

 

496

 

 

 

432

 

Other accrued liabilities

 

 

361

 

 

 

385

 

 

 

$

3,912

 

 

$

5,201

 

 

Commitments and Contingencies (Tables)
Summary of Future Minimum Rental Payments Due under Company's Facilities Lease

At December 31, 2015, future minimum rental payments due under the Company’s facilities lease were as follows (in thousands):

 

Year ending December 31,

 

 

 

 

2016

 

$

3,602

 

2017

 

 

2,433

 

2018

 

 

 

2019

 

 

 

2020

 

 

 

Thereafter

 

 

 

Total lease payments

 

$

6,035

 

 

Stock Based Compensation (Tables)

Total stock-based compensation expense was allocated to research and development, manufacturing and production and general and administrative expense as follows (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Research and development

 

$

392

 

 

$

785

 

 

$

908

 

Manufacturing and production

 

 

159

 

 

 

229

 

 

 

258

 

General and administrative

 

 

1,351

 

 

 

2,145

 

 

 

2,300

 

Total stock-based compensation expense

 

$

1,902

 

 

$

3,159

 

 

$

3,466

 

Cash received from RSU grants and options exercised

 

$

3

 

 

$

2

 

 

$

816

 

 

The following table summarizes stock option transactions under the Company’s stock incentive plans for the years ended December 31, 2015, 2014 and 2013:

 

 

 

Shares

 

 

Weighted Average

Exercise Price

 

Outstanding December 31, 2012

 

 

7,996,569

 

 

$

3.36

 

Granted

 

 

2,876,382

 

 

$

2.56

 

Exercised

 

 

(347,450

)

 

$

2.34

 

Forfeited

 

 

(2,121,313

)

 

$

3.27

 

Outstanding December 31, 2013

 

 

8,404,188

 

 

$

3.15

 

Granted

 

 

1,889,614

 

 

$

1.40

 

Exercised

 

 

 

 

$

 

Forfeited

 

 

(1,699,370

)

 

$

3.69

 

Outstanding December 31, 2014

 

 

8,594,432

 

 

$

2.66

 

Granted

 

 

2,356,750

 

 

$

1.01

 

Exercised

 

 

 

 

$

 

Forfeited

 

 

(1,495,344

)

 

$

2.15

 

Outstanding December 31, 2015

 

 

9,455,838

 

 

$

2.33

 

Vested and unvested options expected to vest as of

   December 31, 2015

 

 

9,235,450

 

 

$

2.35

 

 

A summary of the outstanding RSUs as of December 31, 2015, and changes during the year then ended is presented below:

 

 

 

Shares

 

 

Weighted Average

Grant-Date Fair

Value per Share

 

Unvested at December 31, 2014

 

 

960,066

 

 

$

1.70

 

Granted

 

 

788,429

 

 

$

1.04

 

Vested

 

 

(579,677

)

 

$

1.68

 

Cancelled

 

 

(128,076

)

 

$

1.37

 

Unvested at December 31, 2015

 

 

1,040,742

 

 

$

1.26

 

 

Income Taxes (Tables)

Amounts for the years ended December 31 were as follows (in thousands):

 

Deferred Tax Assets

 

2015

 

 

2014

 

Net operating losses

 

$

83,143

 

 

$

85,510

 

Credit carryovers

 

 

19,903

 

 

 

19,903

 

Depreciation and amortization

 

 

13,944

 

 

 

14,922

 

Accruals and reserves

 

 

609

 

 

 

808

 

Capital loss carryover

 

 

85

 

 

 

100

 

Other

 

 

3,114

 

 

 

3,660

 

Total deferred tax assets

 

 

120,798

 

 

 

124,903

 

Less valuation allowance

 

 

(120,798

)

 

 

(124,903

)

Net deferred tax assets

 

$

 

 

$

 

 

The reconciliation between the provision for income taxes and income taxes computed using the U.S. federal statutory corporate tax rate were as follows for the years ended December 31 (in thousands):

 

 

 

2015

 

 

2014

 

 

2013

 

Computed “expected” tax benefit

 

$

(3,152

)

 

$

(5,607

)

 

$

(10,621

)

State income taxes, net of federal benefit

 

 

 

 

 

(444

)

 

 

(1,947

)

Tax effect of:

 

 

 

 

 

 

 

 

 

 

 

 

Change in valuation allowance

 

 

(4,069

)

 

 

5,102

 

 

 

13,074

 

Rate change

 

 

3,524

 

 

 

 

 

 

 

Expiration of prior year credits and net operating

   losses

 

 

786

 

 

 

675

 

 

 

(237

)

Research and development and other tax credits

   carryovers

 

 

 

 

 

 

 

 

(672

)

Stock compensation

 

 

376

 

 

 

274

 

 

 

337

 

Uncertain tax positions

 

 

3,074

 

 

 

 

 

 

 

Other

 

 

(539

)

 

 

 

 

 

66

 

Provision for income taxes

 

$

 

 

$

 

 

$

 

 

The following table summarizes the activity related to our unrecognized tax benefits (in thousands):

 

 

 

2015

 

 

2014

 

 

2013

 

Beginning balance

 

$

582

 

 

$

 

 

$

 

Increases related to prior year tax positions

 

 

3,758

 

 

 

 

 

 

 

Increases related to current year tax positions

 

 

 

 

 

582

 

 

 

 

Ending balance

 

$

4,340

 

 

$

582

 

 

$

 

 

Summary of (Unaudited) Quarterly Financial Information (Tables)
Summary of Company's (Unaudited) Quarterly Results of Operations

The following is a summary of the Company’s (unaudited) quarterly results of operations for the years ended December 31 (in thousands, except per share amounts):

 

2015:

 

March 31,

 

 

June 30,

 

 

Sept. 30,

 

 

Dec. 31,

 

Total revenues

 

$

4,944

 

 

$

4,176

 

 

$

5,017

 

 

$

6,813

 

Total operating expenses

 

 

8,801

 

 

 

6,968

 

 

 

5,350

 

 

 

9,235

 

Net loss

 

 

(3,821

)

 

 

(2,762

)

 

 

(300

)

 

 

(2,355

)

Basic and diluted net loss per share (1)

 

 

(0.04

)

 

 

(0.03

)

 

 

(0.00

)

 

 

(0.03

)

 

2014:

 

March 31,

 

 

June 30,

 

 

Sept. 30,

 

 

Dec. 31,

 

Total revenues

 

$

2,447

 

 

$

4,505

 

 

$

3,442

 

 

$

4,823

 

Total operating expenses

 

 

5,930

 

 

 

8,570

 

 

 

7,838

 

 

 

9,505

 

Net income (loss)

 

 

(3,455

)

 

 

(4,040

)

 

 

(4,364

)

 

 

(4,633

)

Basic and diluted net loss per share (1)

 

 

(0.04

)

 

 

(0.05

)

 

 

(0.05

)

 

 

(0.05

)

 

(1)

Net income (loss) per share is computed independently for each quarter and the full year based upon respective shares outstanding. Therefore, the sum of the quarterly loss per share amounts may not equal the annual amounts reported.

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Segment
Dec. 31, 2014
Dec. 31, 2013
Organization and Summary of Significant Accounting Policies [Line Items]
 
 
 
Maximum period for cash and highly liquid securities with original maturities
90 days or less 
 
 
Minimum period for marketable securities classified as available-for-sale with original maturities
More than 90 days 
 
 
Amount of letter of credit, description
The Company is required to maintain a letter of credit securing an amount equal to twelve months of the current monthly installment of base rent for the term of the lease for its facilities, which ends in August 2017. 
 
 
Restricted cash
$ 3,246,000 
$ 3,182,000 
 
Weighted average amortization period for capitalized patent costs
9 years 
 
 
Research and development expense
230,000 
350,000 
889,000 
Accruals for potential disallowed costs on government contracts
49,000 
49,000 
 
Common stock equivalents excluded from the calculation of diluted net income per share
0.3 
0.5 
0.9 
Likelihood threshold for recognition of uncertain tax position
50.00% 
 
 
Unrecognized tax benefits
$ 0 
 
 
Number of business segment
 
 
Expected forfeiture rate of equity based compensation
8.75% 
8.75% 
11.20% 
Patent application costs [Member]
 
 
 
Organization and Summary of Significant Accounting Policies [Line Items]
 
 
 
Estimated economic lives of the patents
20 years 
 
 
Equipment [Member]
 
 
 
Organization and Summary of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful life of property and equipment
10 years 
 
 
Minimum [Member] |
All other property and equipment [Member]
 
 
 
Organization and Summary of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful life of property and equipment
3 years 
 
 
Maximum [Member] |
All other property and equipment [Member]
 
 
 
Organization and Summary of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful life of property and equipment
5 years 
 
 
Organization and Summary of Significant Accounting Policies - Summary of Fair Value of Share-Based Compensation, Stock Options (Detail)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
 
Assumed risk-free interest rate
1.34% 
1.63% 
1.14% 
Assumed volatility
68.00% 
73.00% 
72.00% 
Average expected option life
4 years 6 months 
4 years 6 months 
4 years 6 months 
Expected dividend yield
0.00% 
0.00% 
0.00% 
Short-Term Marketable Securities - Summary of Short-Term Marketable Securities (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 23,266 
$ 23,511 
Unrealized Gain
Unrealized Loss
12 
Market Value
23,258 
23,499 
U.S. treasuries [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
7,027 
5,558 
Unrealized Gain
Unrealized Loss
Market Value
7,019 
5,557 
Corporate bonds [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
1,000 
2,025 
Unrealized Gain
Unrealized Loss
Market Value
1,000 
2,020 
Certificates of deposit [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
15,239 
8,429 
Unrealized Gain
Unrealized Loss
Market Value
15,239 
8,429 
Government-sponsored enterprise securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
 
7,499 
Unrealized Gain
 
Unrealized Loss
 
Market Value
 
$ 7,493 
Short-Term Marketable Securities - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Investments Debt And Equity Securities [Abstract]
 
 
 
Available-for-sale securities maturing outside of one year
$ 0 
 
 
Net realized gains (losses) on sales of available-for-sale securities
Available-for-sale securities in a continuous unrealized loss position more than 12 months
$ 0 
$ 0 
 
Long-Term Investments - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Investments Schedule [Abstract]
 
 
 
Auction rate securities held, at par value
$ 2,500,000 
 
 
Maturity of long-term investment
2038 
 
 
Assumed interest rate
1.72% 
 
 
Estimated redemption period
5 years 
 
 
Fair value input discount rate
1.00% 
 
 
Recognized cumulative losses
500,000 
 
 
Unrealized gains (losses) on auction rate securities
48,000 
(9,000)
(200,000)
Cumulative unrealized gains
200,000 
 
 
Carrying value of auction rate security
2,052,000 
1,971,000 
 
Recognized cumulative losses realized
$ 0 
 
 
Fair Value Measurements - Summary of Cash Equivalents, Marketable Securities and Long-Term Investments Measured at Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
$ 25,310 
$ 25,884 
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
15,239 
8,674 
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
7,019 
5,557 
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
1,000 
2,020 
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,052 
1,971 
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
 
169 
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
 
7,493 
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
22,258 
14,400 
Level 1 [Member] |
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
15,239 
8,674 
Level 1 [Member] |
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
7,019 
5,557 
Level 1 [Member] |
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 1 [Member] |
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 1 [Member] |
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
 
169 
Level 1 [Member] |
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
1,000 
9,513 
Level 2 [Member] |
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 2 [Member] |
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 2 [Member] |
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
1,000 
2,020 
Level 2 [Member] |
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 2 [Member] |
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
 
Level 2 [Member] |
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
 
7,493 
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,052 
1,971 
Level 3 [Member] |
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member] |
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member] |
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member] |
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,052 
1,971 
Level 3 [Member] |
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
 
Level 3 [Member] |
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
 
$ 0 
Fair Value Measurements - Summary of Activity for Assets Measured at Fair Value Using Significant Unobservable Inputs (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]
 
Balance at December 31, 2014
$ 1,971 
Total net realized gains included in earnings
Total net unrealized gains included in other comprehensive income
81 
Net transfers in and/out of Level 3
Balance at December 31, 2015
2,052 
Amount of total losses for the period included in net loss attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2015
$ 0 
Fair Value Measurements - Additional Information (Detail) (Level 3 [Member], USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Level 3 [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Total cumulative unrealized losses related to Level3 assets
$ 400,000 
 
 
Unrealized losses
$ 0 
$ 0 
$ 0 
Other Balance Sheet Accounts - Summary of Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Total of property and equipment
$ 25,473 
$ 25,563 
Less accumulated depreciation and amortization
(23,600)
(22,924)
Property and equipment, net
1,873 
2,639 
Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total of property and equipment
17,425 
17,515 
Leasehold improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total of property and equipment
$ 8,048 
$ 8,048 
Other Balance Sheet Accounts - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Balance Sheet Related Disclosures [Abstract]
 
 
 
Depreciation and amortization of equipment and leasehold improvements
$ 0.9 
$ 1.4 
$ 1.6 
Amortization of licensed technology rights and patent application costs
0.2 
0.2 
0.4 
Estimated annual amortization for these assets in 2016
0.2 
 
 
Estimated annual amortization for these assets in 2017
0.2 
 
 
Estimated annual amortization for these assets in 2018
0.1 
 
 
Estimated annual amortization for these assets in 2019
0.1 
 
 
Estimated annual amortization for these assets in 2020
0.1 
 
 
Estimated annual amortization for these assets after 2020
$ 0.6 
 
 
Other Balance Sheet Accounts - Summary of Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Net total of intangible assets
$ 1,300 
$ 1,660 
Patent application costs [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total of summary of intangible assets
2,252 
2,972 
Accumulated amortization
$ (952)
$ (1,312)
Other Balance Sheet Accounts - Summary of Accounts Payable and Accrued Expenses (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Payables And Accruals [Abstract]
 
 
Employee compensation
$ 2,220 
$ 2,471 
Clinical trial accruals
102 
1,686 
Accounts payable
733 
227 
Deferred rent
496 
432 
Other accrued liabilities
361 
385 
Total accounts payable and accrued expenses
$ 3,912 
$ 5,201 
Significant Contract, License and Royalty Agreements - Additional Information (Detail) (USD $)
1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2015
Mar. 31, 2015
Astellas In-License Agreements [Member]
Jul. 31, 2011
Collaborative Arrangement [Member]
Product
Dec. 31, 2015
Collaborative Arrangement [Member]
Dec. 31, 2014
Collaborative Arrangement [Member]
Dec. 31, 2013
Collaborative Arrangement [Member]
Dec. 31, 2012
Collaborative Arrangement [Member]
Mar. 31, 2015
Collaborative Arrangement [Member]
Astellas In-License Agreements [Member]
Mar. 31, 2015
Collaborative Arrangement [Member]
Astellas In-License Agreements [Member]
Research and development [Member]
Dec. 31, 2015
IPPOX Foundation [Member]
Apr. 30, 2015
IPPOX Foundation [Member]
Dec. 31, 2015
City of Hope [Member]
Dec. 31, 2014
City of Hope [Member]
Dec. 31, 2013
City of Hope [Member]
Dec. 31, 2015
CytRx [Member]
Dec. 31, 2014
CytRx [Member]
Dec. 31, 2013
CytRx [Member]
Dec. 31, 2013
CytRx [Member]
Up-front Payment [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contractual obligation to manufacture HIV-antigen plasmid DNA
 
 
 
 
 
 
 
 
 
 
$ 4,100,000 
 
 
 
 
 
 
 
Revenue related to drug product delivered
 
 
 
6,000,000 
5,500,000 
1,200,000 
 
 
 
4,100,000 
 
 
 
 
 
 
 
 
Number of licensed products Astellas agrees to develop
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognized license revenue
 
 
25,000,000 
1,800,000 
1,600,000 
700,000 
 
 
 
 
 
 
 
 
 
 
 
 
Milestone payment upon finalization of the trial design
 
 
 
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
Additional cash payments for achievement through commercial launch
 
 
 
 
 
 
95,000,000 
 
 
 
 
 
 
 
 
 
 
 
Revenue related to contract services delivered
 
 
 
8,700,000 
7,800,000 
4,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock issued, shares
 
861,216 
 
 
 
 
 
861,216 
 
 
 
 
 
 
 
 
 
 
Cash payment for license agreement
 
 
 
 
 
 
 
 
250,000 
 
 
 
 
 
 
 
 
 
Potential future milestone payments
 
 
 
 
 
 
 
99,000,000 
 
 
 
 
 
 
 
 
 
 
License fees
 
 
 
 
 
 
 
 
 
 
 
100,000 
100,000 
100,000 
100,000 
100,000 
300,000 
3,800,000 
Additional milestone payments related to active in-license agreements
$ 106,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended
Nov. 30, 2013
Lawsuit
Dec. 31, 2015
Renewal_Options
sqft
Dec. 31, 2014
Dec. 31, 2013
Commitments And Contingencies Disclosure [Abstract]
 
 
 
 
Area for leasing facility of manufacturing, research laboratory and office space
 
68,400 
 
 
Expiry date of lease
 
Aug. 01, 2017 
 
 
Number of additional renewals for lease beyond its expiration
 
 
 
Renewal period for lease for lease beyond its expiration
 
5 years 
 
 
Base rent paid and the rent expensed recorded as deferred rent in balance sheet
 
$ 0.9 
 
 
Rent expense
 
$ 2.8 
$ 2.8 
$ 2.8 
Number of putative, securities class action complaints filed in U.S District Court
 
 
 
Commitments and Contingencies - Summary of Future Minimum Rental Payments Due under Company's Facilities Lease (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Leases [Abstract]
 
2016
$ 3,602 
2017
2,433 
2018
2019
2020
Thereafter
Total lease payments
$ 6,035 
Stockholders' Equity - Additional Information (Detail) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Apr. 30, 2014
Mar. 31, 2015
Astellas In-License Agreements [Member]
Mar. 31, 2015
Astellas In-License Agreements [Member]
Collaborative Arrangement [Member]
Mar. 31, 2015
Astellas In-License Agreements [Member]
Collaborative Arrangement [Member]
Research and development [Member]
Dec. 31, 2015
Astellas In-License Agreements [Member]
Collaborative Arrangement [Member]
Research and development [Member]
Stockholders Equity [Line Items]
 
 
 
 
 
 
 
 
Sale of common stock, preferred stock, debt securities and warrants
$ 100,000,000 
 
 
 
 
 
 
 
Restricted stock issued, shares
 
 
 
 
861,216 
861,216 
 
 
Cash payment for license agreement
 
 
 
 
 
 
250,000 
 
Purchase of technology license with common stock
775,000 
 
 
 
 
775,094 
Maximum value of common stock issuable under agreement
 
 
 
25,000,000 
 
 
 
 
Number of shares of common stock sold under the sales agreement
3,291,521 
 
 
 
 
 
 
Gross proceeds from the sales agreement
 
$ 4,067,751 
 
 
 
 
 
 
Sales agreement expiration month and year
2015-05 
 
 
 
 
 
 
 
Stock Based Compensation - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Total stock-based compensation expense
$ 1,902,000 
$ 3,159,000 
$ 3,466,000 
Common stock reserved
19,700,000 
 
 
Shares reserved for future issuance
16,448,052 
 
 
Maximum term of options granted
10 years 
 
 
Number of options to be granted to any one individual
1,300,000 
 
 
Number of underlying shares exercisable
6,884,679 
6,037,169 
5,212,897 
Weighted average exercise price of options exercisable
$ 2.68 
$ 2.89 
$ 3.49 
Weighted average remaining contractual term of options outstanding
6 years 3 months 18 days 
 
 
Weighted average remaining contractual term of options exercisable
5 years 6 months 
 
 
Weighted average remaining contractual term of vested and unvested options expected to vest
6 years 3 months 18 days 
 
 
Aggregate intrinsic value of options outstanding
 
 
Aggregate intrinsic value of options exercisable
 
 
Unrecognized compensation cost related to unvested options
800,000 
 
 
Unvested stock-based awards expected to be recognized, weighted-average period
1 year 4 months 2 days 
 
 
Weighted average grant-date fair value of options granted
$ 0.51 
$ 0.73 
$ 1.31 
Number of options exercised
347,450 
Total intrinsic value of options exercised
 
 
500,000 
Shares available for grant
5,421,917 
 
 
Aggregate grant-date fair value of RSUs vested
1,000,000 
800,000 
1,000,000 
Common stock underlying RSUs that were fully vested
529,555 
 
 
Restricted stock units (RSUs) [Member]
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Total stock-based compensation expense
800,000 
1,100,000 
1,000,000 
Aggregate RSUs granted
788,429 
828,000 
409,189 
Unvested stock-based awards expected to be recognized, weighted-average period
1 year 4 months 6 days 
 
 
Aggregate grant-date fair value of RSUs granted
800,000 
1,200,000 
1,000,000 
Total unrecognized compensation cost related to unvested RSUs
$ 500,000 
 
 
Share-based Compensation Award, Tranche One [Member]
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Percentage of options vested
25.00% 
 
 
Share-based Compensation Award, Tranche One [Member] |
Restricted stock units (RSUs) [Member]
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Percentage of options vested
25.00% 
 
 
Stock Based Compensation - Summary of Total Stock-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
Total stock-based compensation expense
$ 1,902 
$ 3,159 
$ 3,466 
Cash received from RSU grants and options exercised
816 
Research and development [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
Total stock-based compensation expense
392 
785 
908 
Manufacturing and production [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
Total stock-based compensation expense
159 
229 
258 
General and administrative [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
 
Total stock-based compensation expense
$ 1,351 
$ 2,145 
$ 2,300 
Stock Based Compensation - Summary of Stock Option Transactions under Company's Stock Incentive Plans (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
 
Shares Outstanding, Beginning Balance
8,594,432 
8,404,188 
7,996,569 
Shares, Granted
2,356,750 
1,889,614 
2,876,382 
Shares, Exercised
(347,450)
Shares, Forfeited
(1,495,344)
(1,699,370)
(2,121,313)
Shares Outstanding, Ending Balance
9,455,838 
8,594,432 
8,404,188 
Shares Vested and unvested options expected to vest as of December 31, 2015
9,235,450 
 
 
Weighted Average Exercise Price, Beginning Balance
$ 2.66 
$ 3.15 
$ 3.36 
Weighted Average Exercise Price, Granted
$ 1.01 
$ 1.40 
$ 2.56 
Weighted Average Exercise Price, Exercised
$ 0 
$ 0 
$ 2.34 
Weighted Average Exercise Price, Forfeited
$ 2.15 
$ 3.69 
$ 3.27 
Weighted Average Exercise Price, Ending Balance
$ 2.33 
$ 2.66 
$ 3.15 
Weighted Average Exercise Price, Vested and unvested options expected to vest as of December 31, 2015
$ 2.35 
 
 
Stock Based Compensation - Summary of Outstanding RSUs (Detail) (Restricted stock units (RSUs) [Member], USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restricted stock units (RSUs) [Member]
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
 
 
 
Shares Unvested, Beginning Balance
960,066 
 
 
Shares, Granted
788,429 
828,000 
409,189 
Shares, Vested
(579,677)
 
 
Shares, Cancelled
(128,076)
 
 
Shares Unvested, Ending Balance
1,040,742 
960,066 
 
Weighted Average Grant-Date Fair Value per Share, Unvested, Beginning Balance
$ 1.70 
 
 
Weighted Average Grant-Date Fair Value per Share, Granted
$ 1.04 
 
 
Weighted Average Grant-Date Fair Value per Share, Vested
$ 1.68 
 
 
Weighted Average Grant-Date Fair Value per Share, Cancelled
$ 1.37 
 
 
Weighted Average Grant-Date Fair Value per Share, Unvested, Ending Balance
$ 1.26 
$ 1.70 
 
Restructuring Costs - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Aug. 31, 2013
Employee
Dec. 31, 2013
Restructuring Cost and Reserve [Line Items]
 
 
Charges for employee termination benefits
 
$ 2.2 
Restructured of employees to conserve capital include a staff reduction of employees
47 
 
Research and development [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Charges for employee termination benefits
 
1.2 
Charges for asset impairments
 
0.7 
Manufacturing and production [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Charges for employee termination benefits
 
0.5 
General and administrative [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Charges for employee termination benefits
 
$ 0.5 
Income Taxes - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Operating Loss Carryforwards [Line Items]
 
 
 
 
Cumulative change in ownership
More than 50% occurs within a three-year period. 
 
 
 
Deferred tax assets
$ 120,798,000 
$ 124,903,000 
 
 
Percentage of cumulative change in ownership
50.00% 
 
 
 
Deferred tax assets for net operating losses
83,143,000 
85,510,000 
 
 
Tax credits
19,903,000 
19,903,000 
 
 
Accrual for interest or penalties
 
 
Interest or penalties expense
 
Valuation allowance
120,798,000 
124,903,000 
 
 
Net operating loss carryforwards related to windfall tax benefits
1,600,000 
 
 
 
Gross unrecognized tax benefits
4,340,000 
582,000 
Tax year open to examination
1997 
 
 
 
Domestic Tax Authority [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Operating loss carryforwards
101,200,000 
 
 
 
Research and development credits and other tax credits
12,200,000 
 
 
 
Net operating loss carryforwards
311,300,000 
307,300,000 
 
 
Federal research and development credit and orphan drug credit carryforwards
26,300,000 
26,300,000 
 
 
Domestic Tax Authority [Member] |
Earliest Tax Year [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards, expiration year
2018 
 
 
 
Federal research and development credit and orphan drug credit carryforwards, expiration year
2018 
 
 
 
Domestic Tax Authority [Member] |
Latest Tax Year [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards, expiration year
2035 
 
 
 
Federal research and development credit and orphan drug credit carryforwards, expiration year
2033 
 
 
 
State and Local Jurisdiction [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
262,800,000 
275,000,000 
 
 
Federal research and development credit and orphan drug credit carryforwards
$ 8,800,000 
$ 8,800,000 
 
 
State and Local Jurisdiction [Member] |
Earliest Tax Year [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards, expiration year
2016 
 
 
 
State and Local Jurisdiction [Member] |
Latest Tax Year [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards, expiration year
2035 
 
 
 
Income Taxes - Summary of Deferred Tax Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
Net operating losses
$ 83,143 
$ 85,510 
Credit carryovers
19,903 
19,903 
Depreciation and amortization
13,944 
14,922 
Accruals and reserves
609 
808 
Capital loss carryover
85 
100 
Other
3,114 
3,660 
Total deferred tax assets
120,798 
124,903 
Less valuation allowance
(120,798)
(124,903)
Net deferred tax assets
$ 0 
$ 0 
Income Taxes - Reconciliation Between Provision for Income Taxes and Income Taxes (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
Computed “expected” tax benefit
$ (3,152)
$ (5,607)
$ (10,621)
State income taxes, net of federal benefit
(444)
(1,947)
Tax effect of:
 
 
 
Change in valuation allowance
(4,069)
5,102 
13,074 
Rate change
3,524 
Expiration of prior year credits and net operating losses
786 
675 
(237)
Research and development and other tax credits carryovers
(672)
Stock compensation
376 
274 
337 
Uncertain tax positions
3,074 
Other
(539)
66 
Provision for income taxes
$ 0 
$ 0 
$ 0 
Employee Benefit Plan - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Compensation And Retirement Disclosure [Abstract]
 
 
 
Company's contributions towards employee benefit plan
$ 0.1 
$ 0.1 
$ 0.2 
Summary of (Unaudited) Quarterly Financial Information - Summary of Company's (Unaudited) Quarterly Results of Operations (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$ 6,813 
$ 5,017 
$ 4,176 
$ 4,944 
$ 4,823 
$ 3,442 
$ 4,505 
$ 2,447 
$ 20,950 
$ 15,217 
$ 7,718 
Total operating expenses
9,235 
5,350 
6,968 
8,801 
9,505 
7,838 
8,570 
5,930 
30,354 
31,843 
39,070 
Net income (loss)
$ (2,355)
$ (300)
$ (2,762)
$ (3,821)
$ (4,633)
$ (4,364)
$ (4,040)
$ (3,455)
$ (9,238)
$ (16,492)
$ (31,238)
Basic and diluted net loss per share
$ (0.03)
$ 0.00 
$ (0.03)
$ (0.04)
$ (0.05)
$ (0.05)
$ (0.05)
$ (0.04)
$ (0.10)
$ (0.19)
$ (0.36)