| Warrants
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• | Develop novel cancer immunotherapies to address unmet medical needs through the use of peptide-based vaccines targeting well-established tumor antigens. One of our key strategies is to target the adjuvant setting in patients with higher risk of recurrence, who had their primary treatment for cancer and have no evidence of disease, and are more likely to benefit from treatment via immunotherapy. Our immunotherapy programs are currently targeting two key areas: secondary prevention intended to significantly decrease the risk of disease recurrence in breast, gastric, and ovarian cancers; and primary prevention intended to cease or delay ductal carcinoma in situ (DCIS) from becoming invasive breast cancer. |
• | Expand our development pipeline by enhancing the clinical and geographic footprint of our technologies. We intend to accomplish this through the initiation of new clinical trials and potentially through acquisition of additional oncology programs. |
• | Leverage partnerships and collaborations, as well as investigator-sponsored trial arrangements, to maximize the scope of potential clinical opportunities in a cost effective and efficient manner. |
• | Focus our resources on our valuable and expanding clinical development programs. On November 19, 2015 we sold our Abstral® (fentanyl) Sublingual Tablets product and related assets and on December 24, 2015 we sold Zuplenz (ondansetron) Oral Soluble Film product and related assets, and as of December 31, 2015, we ceased our commercial operations. |
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December 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 29,171 | $ | 29,171 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 29,171 | $ | 29,171 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 14,518 | $ | — | $ | 14,518 | $ | — | |||||||
Contingent purchase price consideration | 6,142 | — | — | 6,142 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 20,660 | $ | — | $ | 14,518 | $ | 6,142 |
December 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 19,477 | $ | 19,477 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 19,477 | $ | 19,477 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 5,383 | $ | — | $ | 5,383 | $ | — | |||||||
Contingent purchase price consideration | 6,651 | — | — | 6,651 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 12,034 | $ | — | $ | 5,383 | $ | 6,651 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2014 | $ | 6,821 | |
Change in the estimated fair value of the contingent purchase price consideration | (170 | ) | |
Balance, December 31, 2014 | 6,651 | ||
Change in the estimated fair value of the contingent purchase price consideration | (509 | ) | |
Balance at December 31, 2015 | $ | 6,142 |
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December 31, | |||||||
2015 | 2014 | ||||||
Clinical development expense | $ | 3,294 | $ | 6,967 | |||
Compensation and related benefits | 1,535 | 1,040 | |||||
Professional fees | 435 | 821 | |||||
Interest expense | 28 | 57 | |||||
Accrued expenses and other current liabilities | $ | 5,292 | $ | 8,885 |
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2016 Principal Payments | $ | 4,254 | ||
Add - 5.5% cash final payment (less Unamortized debt issuance costs) | 485 | |||
Carrying value of long-term debt | $ | 4,739 |
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Amount | |||
Class action settlement | $ | 20,000 | |
Derivative settlement | 5,000 | ||
Total settlement payable | 25,000 | ||
Payable by the insurance carriers | 21,700 | ||
Payable by the company in cash | 2,300 | ||
Payable by the company in common stock | 1,000 | ||
Total settlement payable | $ | 25,000 |
Operating Leases(1) | Non-Cancelable Employment Agreements(2) | Subtotal | Cancelable License Agreements(3) | Total | |||||||||||||||
2016 | $ | 316 | $ | 850 | $ | 1,166 | $ | 350 | $ | 1,516 | |||||||||
2017 | 323 | — | 323 | 350 | 673 | ||||||||||||||
2018 | 316 | — | 316 | 350 | 666 | ||||||||||||||
2019 | 251 | — | 251 | 4,200 | 4,451 | ||||||||||||||
2020 and thereafter | 236 | — | 236 | 2,965 | 3,201 | ||||||||||||||
Total | $ | 1,442 | $ | 850 | $ | 2,292 | $ | 8,215 | $ | 10,507 |
(1) | Operating leases are primarily facility and equipment related obligations with third party vendors. Operating lease expenses during the years ended December 31, 2015, 2014, and 2013 were approximately $116,000, $72,000 and $77,000, respectively. |
(2) | Employment agreement obligations include management contracts, as well as scientific advisory board member compensation agreements. Certain agreements, which have been revised from time to time, provide for minimum salary levels, adjusted annually at the discretion of the Compensation Committee, as well as for minimum bonuses that are payable. |
(3) | License agreements generally relate to the company’s obligations with The Board of Regents, University of Texas and Henry M. Jackson Foundation for our oncology therapies. The company continually assesses the progress of its licensed technology and the progress of its research and development efforts as it relates to its licensed technology and may terminate with notice to the licensor at any time. In the event these licenses are terminated, no amounts will be due. |
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2015 | 2014 | 2013 | |||||||||
Research and development | $ | 350 | $ | 484 | $ | 754 | |||||
General and administrative | 1,591 | 4,903 | 2,150 | ||||||||
Total stock-based compensation | $ | 1,941 | $ | 5,387 | $ | 2,904 |
2015 | 2014 | 2013 | ||||||
Risk free interest rate | 1.67 | % | 2.01 | % | 1.57 | % | ||
Volatility | 73.97 | % | 79.37 | % | 77.98 | % | ||
Expected lives (years) | 6.16 | 6.16 | 6.25 | |||||
Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2014 | 8,590 | $ | 3.25 | |||
Granted | 6,743 | 1.63 | ||||
Exercised | (39 | ) | 0.79 | |||
Cancelled | (2,032 | ) | 2.31 | |||
Outstanding at December 31, 2015 | 13,262 | $ | 2.58 | |||
Options exercisable at December 31, 2015 | 7,192 | $ | 3.22 |
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March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | Other Warrant Issuances | Consultant and Oxford Warrants | Total | ||||||||||||||
Outstanding, January 1, 2014 | — | 6,442 | 4,917 | 1,158 | 1,444 | 889 | 14,850 | |||||||||||||
Granted | — | — | — | — | — | 300 | 300 | |||||||||||||
Exercised | — | (2,469 | ) | (1,886 | ) | (543 | ) | (327 | ) | (469 | ) | (5,694 | ) | |||||||
Expired | — | — | — | — | (916 | ) | — | (916 | ) | |||||||||||
Outstanding, December 31, 2014 | — | 3,973 | 3,031 | 615 | 201 | 720 | 8,540 | |||||||||||||
Granted | 14,006 | — | — | — | — | — | 14,006 | |||||||||||||
Expired | — | — | — | — | — | (238 | ) | (238 | ) | |||||||||||
Outstanding, December 31, 2015 | 14,006 | 3,973 | 3,031 | 615 | 201 | 482 | 22,308 | |||||||||||||
Expiration | March 2020 | September 2018 | December 2017 | April 2017 | Varies 2014-2016 | Varies 2014-2020 |
As of December 31, 2015 | |||||||||||||||||||||||
March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | ||||||||||||||||||
Strike price | $ | 2.08 | $ | 2.50 | $ | 1.83 | $ | 0.65 | $ | 0.65 | $ | 2.02 | |||||||||||
Expected term (years) | 4.22 | 2.72 | 1.98 | 1.31 | 0.18 | 0.24 | |||||||||||||||||
Volatility % | 75.85 | % | 74.70 | % | 76.37 | % | 65.60 | % | 47.98 | % | 71.41 | % | |||||||||||
Risk-free rate % | 1.58 | % | 1.24 | % | 1.05 | % | 0.77 | % | — | % | — | % |
As of December 31, 2014 | |||||||||||||||||||
September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | |||||||||||||||
Strike price | $ | 2.50 | $ | 1.90 | $ | 0.65 | $ | 0.65 | $ | 2.15 | |||||||||
Expected term (years) | 3.72 | 2.98 | 2.31 | 1.18 | 1.24 | ||||||||||||||
Volatility % | 75.60 | % | 76.85 | % | 78.24 | % | 77.38 | % | 77.12 | % | |||||||||
Risk-free rate % | 1.30 | % | 1.09 | % | 0.80 | % | 0.32 | % | 0.35 | % |
March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | Other Warrant Issuances | Total | ||||||||||||||||||
Warrant liability, January 1, 2014 | $ | — | $ | 22,950 | $ | 18,060 | $ | 5,069 | $ | 2,886 | $ | 48,965 | |||||||||||
Fair value of warrants granted | — | — | — | — | — | — | |||||||||||||||||
Fair value of warrants exercised | — | (12,713 | ) | (10,086 | ) | (2,906 | ) | (1,321 | ) | (27,026 | ) | ||||||||||||
Change in fair value of warrants | — | (7,677 | ) | (5,947 | ) | (1,538 | ) | (1,394 | ) | (16,556 | ) | ||||||||||||
Warrant liability, December 31, 2014 | — | 2,560 | 2,027 | 625 | 171 | 5,383 | |||||||||||||||||
Fair value of warrants granted | 10,296 | — | — | — | — | 10,296 | |||||||||||||||||
Fair value of warrants exercised | — | — | — | — | — | — | |||||||||||||||||
Change in fair value of warrants | 41 | (627 | ) | (462 | ) | (88 | ) | (25 | ) | (1,161 | ) | ||||||||||||
Warrant liability, December 31, 2015 | $ | 10,337 | $ | 1,933 | $ | 1,565 | $ | 537 | $ | 146 | $ | 14,518 |
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Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Realized gain on sale of marketable securities | $ | — | $ | — | $ | 3,911 | ||||||
Change in fair value of the contingent purchase price liability | 509 | 170 | (926 | ) | ||||||||
Miscellaneous other income | — | — | 37 | |||||||||
Total other income | $ | 509 | $ | 170 | $ | 3,022 |
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As of December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Current | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | — | — | — | |||||||||
Total current | — | — | — | |||||||||
Deferred expense (benefit) | ||||||||||||
Federal | 332 | — | 894 | |||||||||
State | 33 | — | 158 | |||||||||
Total deferred | 365 | — | 1,052 | |||||||||
Total income tax expense (benefit) | $ | 365 | $ | — | $ | 1,052 |
As of December 31, | ||||||||
2015 | 2014 | |||||||
Net operating loss carryforwards | $ | 75,221 | $ | 53,950 | ||||
Tax credit carryforwards | 3,866 | 3,590 | ||||||
Stock based compensation | 5,050 | 4,676 | ||||||
Other | 1,430 | 190 | ||||||
Licensing deduction deferral | 9,910 | 8,919 | ||||||
Gross deferred tax assets | 95,477 | 71,325 | ||||||
Valuation allowance | (95,477 | ) | (71,325 | ) | ||||
Net deferred tax asset | $ | — | $ | — |
As of December 31, | ||||||||
2015 | 2014 | |||||||
In-process research and development not subject to future amortization for tax purposes | $ | 5,418 | $ | 5,053 | ||||
Gross deferred tax liability | $ | 5,418 | $ | 5,053 |
As of December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Expected federal income tax benefit | $ | (21,603 | ) | $ | (12,447 | ) | $ | (25,713 | ) | |||
State income taxes after credits | (2,375 | ) | (1,283 | ) | (3,676 | ) | ||||||
Unrealized gain on marketable securities | — | — | 1,052 | |||||||||
Changes in warrant value | (456 | ) | (6,503 | ) | 17,283 | |||||||
Stock compensation | 508 | 3,996 | 813 | |||||||||
Effect of change in valuation allowance | 24,029 | 17,275 | 11,408 | |||||||||
Income tax credits | (276 | ) | (42 | ) | (240 | ) | ||||||
Other | 538 | (996 | ) | 125 | ||||||||
$ | 365 | $ | — | $ | 1,052 |
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Year ended December 31, | ||||||
2014 | 2013 | |||||
Customer A | 43 | % | 25 | % | ||
Customer B | 18 | % | 6 | % | ||
Customer C | 14 | % | 26 | % | ||
Customer D | 11 | % | 34 | % |
December 31, | ||||||
2014 | 2013 | |||||
Customer A | 24 | % | 25 | % | ||
Customer B | 31 | % | 1 | % | ||
Customer C | 16 | % | 11 | % | ||
Customer D | 21 | % | 54 | % |
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1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
2015 | ||||||||||||||||
Net revenue | $ | 2,750 | $ | 3,382 | $ | 2,166 | $ | 1,436 | ||||||||
Gross profit on net revenue (1) | $ | 2,357 | $ | 2,914 | $ | 1,454 | $ | 1,229 | ||||||||
Net loss | $ | (10,537 | ) | $ | (15,660 | ) | $ | (18,026 | ) | $ | (19,678 | ) | ||||
Net loss per share | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.12 | ) | ||||
2014 | ||||||||||||||||
Net revenue | $ | 2,173 | $ | 2,331 | $ | 1,620 | $ | 3,195 | ||||||||
Gross profit on net revenue (1) | $ | 1,751 | $ | 1,886 | $ | 1,303 | $ | 2,536 | ||||||||
Net loss | $ | (2,536 | ) | $ | (19,941 | ) | $ | (6,173 | ) | $ | (7,506 | ) | ||||
Net loss per share | $ | (0.02 | ) | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.06 | ) |
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Sale of Abstral and related assets on November 19, 2015 | Sale of Zuplenz and related assets on December 24, 2015 | ||||||
Net proceeds from sales | |||||||
Total consideration | $ | 8,348 | $ | 3,750 | |||
Less selling costs* | (815 | ) | (1,050 | ) | |||
Proceeds from sale, net of selling costs | $ | 7,533 | $ | 2,700 |
2015 | 2014 | ||||||
Carrying amounts of assets included as part of discontinued operations: | |||||||
Accounts receivable | $ | 392 | $ | 1,535 | |||
Inventories | — | 655 | |||||
Prepaid expenses and other current assets | — | 1,747 | |||||
Equipment and furnishings, net | — | 270 | |||||
Abstral rights, net | — | 14,533 | |||||
Zuplenz rights | — | 8,101 | |||||
Goodwill | — | 172 | |||||
Total current assets of discontinued operations | $ | 392 | $ | 27,013 | |||
Carrying amounts of liabilities included as part of discontinued operations: | |||||||
Accounts payable | $ | 1,491 | $ | 385 | |||
Accrued expenses and other current liabilities | 4,434 | 6,784 | |||||
Total current liabilities of discontinued operations | $ | 5,925 | $ | 7,169 |
2015 | 2014 | 2013 | |||||||||
Net revenue | $ | 9,734 | $ | 9,319 | $ | 2,487 | |||||
Cost of revenue | (1,780 | ) | (1,403 | ) | (520 | ) | |||||
Amortization of certain acquired intangible assets | (921 | ) | (440 | ) | (131 | ) | |||||
Research and development | (355 | ) | (680 | ) | (651 | ) | |||||
Selling, general, and administrative | (17,655 | ) | (15,118 | ) | (6,536 | ) | |||||
Impairment charge form classification as held for sale | (8,071 | ) | — | — | |||||||
Loss on sale of commercial business assets | (4,549 | ) | — | — | |||||||
Severance and exit costs | (1,349 | ) | — | — | |||||||
Loss from discontinued operations | $ | (24,946 | ) | $ | (8,322 | ) | $ | (5,351 | ) |
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December 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 29,171 | $ | 29,171 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 29,171 | $ | 29,171 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 14,518 | $ | — | $ | 14,518 | $ | — | |||||||
Contingent purchase price consideration | 6,142 | — | — | 6,142 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 20,660 | $ | — | $ | 14,518 | $ | 6,142 |
December 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 19,477 | $ | 19,477 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 19,477 | $ | 19,477 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 5,383 | $ | — | $ | 5,383 | $ | — | |||||||
Contingent purchase price consideration | 6,651 | — | — | 6,651 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 12,034 | $ | — | $ | 5,383 | $ | 6,651 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2014 | $ | 6,821 | |
Change in the estimated fair value of the contingent purchase price consideration | (170 | ) | |
Balance, December 31, 2014 | 6,651 | ||
Change in the estimated fair value of the contingent purchase price consideration | (509 | ) | |
Balance at December 31, 2015 | $ | 6,142 |
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December 31, | |||||||
2015 | 2014 | ||||||
Clinical development expense | $ | 3,294 | $ | 6,967 | |||
Compensation and related benefits | 1,535 | 1,040 | |||||
Professional fees | 435 | 821 | |||||
Interest expense | 28 | 57 | |||||
Accrued expenses and other current liabilities | $ | 5,292 | $ | 8,885 |
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2016 Principal Payments | $ | 4,254 | ||
Add - 5.5% cash final payment (less Unamortized debt issuance costs) | 485 | |||
Carrying value of long-term debt | $ | 4,739 |
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Amount | |||
Class action settlement | $ | 20,000 | |
Derivative settlement | 5,000 | ||
Total settlement payable | 25,000 | ||
Payable by the insurance carriers | 21,700 | ||
Payable by the company in cash | 2,300 | ||
Payable by the company in common stock | 1,000 | ||
Total settlement payable | $ | 25,000 |
Operating Leases(1) | Non-Cancelable Employment Agreements(2) | Subtotal | Cancelable License Agreements(3) | Total | |||||||||||||||
2016 | $ | 316 | $ | 850 | $ | 1,166 | $ | 350 | $ | 1,516 | |||||||||
2017 | 323 | — | 323 | 350 | 673 | ||||||||||||||
2018 | 316 | — | 316 | 350 | 666 | ||||||||||||||
2019 | 251 | — | 251 | 4,200 | 4,451 | ||||||||||||||
2020 and thereafter | 236 | — | 236 | 2,965 | 3,201 | ||||||||||||||
Total | $ | 1,442 | $ | 850 | $ | 2,292 | $ | 8,215 | $ | 10,507 |
(1) | Operating leases are primarily facility and equipment related obligations with third party vendors. Operating lease expenses during the years ended December 31, 2015, 2014, and 2013 were approximately $116,000, $72,000 and $77,000, respectively. |
(2) | Employment agreement obligations include management contracts, as well as scientific advisory board member compensation agreements. Certain agreements, which have been revised from time to time, provide for minimum salary levels, adjusted annually at the discretion of the Compensation Committee, as well as for minimum bonuses that are payable. |
(3) | License agreements generally relate to the company’s obligations with The Board of Regents, University of Texas and Henry M. Jackson Foundation for our oncology therapies. The company continually assesses the progress of its licensed technology and the progress of its research and development efforts as it relates to its licensed technology and may terminate with notice to the licensor at any time. In the event these licenses are terminated, no amounts will be due. |
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2015 | 2014 | 2013 | |||||||||
Research and development | $ | 350 | $ | 484 | $ | 754 | |||||
General and administrative | 1,591 | 4,903 | 2,150 | ||||||||
Total stock-based compensation | $ | 1,941 | $ | 5,387 | $ | 2,904 |
2015 | 2014 | 2013 | ||||||
Risk free interest rate | 1.67 | % | 2.01 | % | 1.57 | % | ||
Volatility | 73.97 | % | 79.37 | % | 77.98 | % | ||
Expected lives (years) | 6.16 | 6.16 | 6.25 | |||||
Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2014 | 8,590 | $ | 3.25 | |||
Granted | 6,743 | 1.63 | ||||
Exercised | (39 | ) | 0.79 | |||
Cancelled | (2,032 | ) | 2.31 | |||
Outstanding at December 31, 2015 | 13,262 | $ | 2.58 | |||
Options exercisable at December 31, 2015 | 7,192 | $ | 3.22 |
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March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | Other Warrant Issuances | Consultant and Oxford Warrants | Total | ||||||||||||||
Outstanding, January 1, 2014 | — | 6,442 | 4,917 | 1,158 | 1,444 | 889 | 14,850 | |||||||||||||
Granted | — | — | — | — | — | 300 | 300 | |||||||||||||
Exercised | — | (2,469 | ) | (1,886 | ) | (543 | ) | (327 | ) | (469 | ) | (5,694 | ) | |||||||
Expired | — | — | — | — | (916 | ) | — | (916 | ) | |||||||||||
Outstanding, December 31, 2014 | — | 3,973 | 3,031 | 615 | 201 | 720 | 8,540 | |||||||||||||
Granted | 14,006 | — | — | — | — | — | 14,006 | |||||||||||||
Expired | — | — | — | — | — | (238 | ) | (238 | ) | |||||||||||
Outstanding, December 31, 2015 | 14,006 | 3,973 | 3,031 | 615 | 201 | 482 | 22,308 | |||||||||||||
Expiration | March 2020 | September 2018 | December 2017 | April 2017 | Varies 2014-2016 | Varies 2014-2020 |
As of December 31, 2015 | |||||||||||||||||||||||
March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | ||||||||||||||||||
Strike price | $ | 2.08 | $ | 2.50 | $ | 1.83 | $ | 0.65 | $ | 0.65 | $ | 2.02 | |||||||||||
Expected term (years) | 4.22 | 2.72 | 1.98 | 1.31 | 0.18 | 0.24 | |||||||||||||||||
Volatility % | 75.85 | % | 74.70 | % | 76.37 | % | 65.60 | % | 47.98 | % | 71.41 | % | |||||||||||
Risk-free rate % | 1.58 | % | 1.24 | % | 1.05 | % | 0.77 | % | — | % | — | % |
As of December 31, 2014 | |||||||||||||||||||
September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | |||||||||||||||
Strike price | $ | 2.50 | $ | 1.90 | $ | 0.65 | $ | 0.65 | $ | 2.15 | |||||||||
Expected term (years) | 3.72 | 2.98 | 2.31 | 1.18 | 1.24 | ||||||||||||||
Volatility % | 75.60 | % | 76.85 | % | 78.24 | % | 77.38 | % | 77.12 | % | |||||||||
Risk-free rate % | 1.30 | % | 1.09 | % | 0.80 | % | 0.32 | % | 0.35 | % |
March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | Other Warrant Issuances | Total | ||||||||||||||||||
Warrant liability, January 1, 2014 | $ | — | $ | 22,950 | $ | 18,060 | $ | 5,069 | $ | 2,886 | $ | 48,965 | |||||||||||
Fair value of warrants granted | — | — | — | — | — | — | |||||||||||||||||
Fair value of warrants exercised | — | (12,713 | ) | (10,086 | ) | (2,906 | ) | (1,321 | ) | (27,026 | ) | ||||||||||||
Change in fair value of warrants | — | (7,677 | ) | (5,947 | ) | (1,538 | ) | (1,394 | ) | (16,556 | ) | ||||||||||||
Warrant liability, December 31, 2014 | — | 2,560 | 2,027 | 625 | 171 | 5,383 | |||||||||||||||||
Fair value of warrants granted | 10,296 | — | — | — | — | 10,296 | |||||||||||||||||
Fair value of warrants exercised | — | — | — | — | — | — | |||||||||||||||||
Change in fair value of warrants | 41 | (627 | ) | (462 | ) | (88 | ) | (25 | ) | (1,161 | ) | ||||||||||||
Warrant liability, December 31, 2015 | $ | 10,337 | $ | 1,933 | $ | 1,565 | $ | 537 | $ | 146 | $ | 14,518 |
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Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Realized gain on sale of marketable securities | $ | — | $ | — | $ | 3,911 | ||||||
Change in fair value of the contingent purchase price liability | 509 | 170 | (926 | ) | ||||||||
Miscellaneous other income | — | — | 37 | |||||||||
Total other income | $ | 509 | $ | 170 | $ | 3,022 |
|
As of December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Current | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | — | — | — | |||||||||
Total current | — | — | — | |||||||||
Deferred expense (benefit) | ||||||||||||
Federal | 332 | — | 894 | |||||||||
State | 33 | — | 158 | |||||||||
Total deferred | 365 | — | 1,052 | |||||||||
Total income tax expense (benefit) | $ | 365 | $ | — | $ | 1,052 |
As of December 31, | ||||||||
2015 | 2014 | |||||||
Net operating loss carryforwards | $ | 75,221 | $ | 53,950 | ||||
Tax credit carryforwards | 3,866 | 3,590 | ||||||
Stock based compensation | 5,050 | 4,676 | ||||||
Other | 1,430 | 190 | ||||||
Licensing deduction deferral | 9,910 | 8,919 | ||||||
Gross deferred tax assets | 95,477 | 71,325 | ||||||
Valuation allowance | (95,477 | ) | (71,325 | ) | ||||
Net deferred tax asset | $ | — | $ | — |
As of December 31, | ||||||||
2015 | 2014 | |||||||
In-process research and development not subject to future amortization for tax purposes | $ | 5,418 | $ | 5,053 | ||||
Gross deferred tax liability | $ | 5,418 | $ | 5,053 |
As of December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Expected federal income tax benefit | $ | (21,603 | ) | $ | (12,447 | ) | $ | (25,713 | ) | |||
State income taxes after credits | (2,375 | ) | (1,283 | ) | (3,676 | ) | ||||||
Unrealized gain on marketable securities | — | — | 1,052 | |||||||||
Changes in warrant value | (456 | ) | (6,503 | ) | 17,283 | |||||||
Stock compensation | 508 | 3,996 | 813 | |||||||||
Effect of change in valuation allowance | 24,029 | 17,275 | 11,408 | |||||||||
Income tax credits | (276 | ) | (42 | ) | (240 | ) | ||||||
Other | 538 | (996 | ) | 125 | ||||||||
$ | 365 | $ | — | $ | 1,052 |
|
Year ended December 31, | ||||||
2014 | 2013 | |||||
Customer A | 43 | % | 25 | % | ||
Customer B | 18 | % | 6 | % | ||
Customer C | 14 | % | 26 | % | ||
Customer D | 11 | % | 34 | % |
December 31, | ||||||
2014 | 2013 | |||||
Customer A | 24 | % | 25 | % | ||
Customer B | 31 | % | 1 | % | ||
Customer C | 16 | % | 11 | % | ||
Customer D | 21 | % | 54 | % |
|
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
2015 | ||||||||||||||||
Net revenue | $ | 2,750 | $ | 3,382 | $ | 2,166 | $ | 1,436 | ||||||||
Gross profit on net revenue (1) | $ | 2,357 | $ | 2,914 | $ | 1,454 | $ | 1,229 | ||||||||
Net loss | $ | (10,537 | ) | $ | (15,660 | ) | $ | (18,026 | ) | $ | (19,678 | ) | ||||
Net loss per share | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.12 | ) | ||||
2014 | ||||||||||||||||
Net revenue | $ | 2,173 | $ | 2,331 | $ | 1,620 | $ | 3,195 | ||||||||
Gross profit on net revenue (1) | $ | 1,751 | $ | 1,886 | $ | 1,303 | $ | 2,536 | ||||||||
Net loss | $ | (2,536 | ) | $ | (19,941 | ) | $ | (6,173 | ) | $ | (7,506 | ) | ||||
Net loss per share | $ | (0.02 | ) | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.06 | ) |
|
Sale of Abstral and related assets on November 19, 2015 | Sale of Zuplenz and related assets on December 24, 2015 | ||||||
Net proceeds from sales | |||||||
Total consideration | $ | 8,348 | $ | 3,750 | |||
Less selling costs* | (815 | ) | (1,050 | ) | |||
Proceeds from sale, net of selling costs | $ | 7,533 | $ | 2,700 |
2015 | 2014 | ||||||
Carrying amounts of assets included as part of discontinued operations: | |||||||
Accounts receivable | $ | 392 | $ | 1,535 | |||
Inventories | — | 655 | |||||
Prepaid expenses and other current assets | — | 1,747 | |||||
Equipment and furnishings, net | — | 270 | |||||
Abstral rights, net | — | 14,533 | |||||
Zuplenz rights | — | 8,101 | |||||
Goodwill | — | 172 | |||||
Total current assets of discontinued operations | $ | 392 | $ | 27,013 | |||
Carrying amounts of liabilities included as part of discontinued operations: | |||||||
Accounts payable | $ | 1,491 | $ | 385 | |||
Accrued expenses and other current liabilities | 4,434 | 6,784 | |||||
Total current liabilities of discontinued operations | $ | 5,925 | $ | 7,169 |
2015 | 2014 | 2013 | |||||||||
Net revenue | $ | 9,734 | $ | 9,319 | $ | 2,487 | |||||
Cost of revenue | (1,780 | ) | (1,403 | ) | (520 | ) | |||||
Amortization of certain acquired intangible assets | (921 | ) | (440 | ) | (131 | ) | |||||
Research and development | (355 | ) | (680 | ) | (651 | ) | |||||
Selling, general, and administrative | (17,655 | ) | (15,118 | ) | (6,536 | ) | |||||
Impairment charge form classification as held for sale | (8,071 | ) | — | — | |||||||
Loss on sale of commercial business assets | (4,549 | ) | — | — | |||||||
Severance and exit costs | (1,349 | ) | — | — | |||||||
Loss from discontinued operations | $ | (24,946 | ) | $ | (8,322 | ) | $ | (5,351 | ) |
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