| Warrants
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• | Phase 3 Ongoing: Our Phase 3 PRESENT (Prevention of Recurrence in Early- Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment) study is enrolling HER2 1+ and 2+ patients under a Special Protocol Assessment (SPA) granted by the U.S. Food and Drug Administration (FDA). The multinational, multicenter, randomized, double-blinded PRESENT trial is ongoing in North America, Western and Eastern Europe, and Israel. Additional information on the study can be found at www.neuvax.com. |
• | Phase 2b Ongoing: A randomized, multicenter, investigator-sponsored, 300 patient Phase 2b clinical trial is enrolling HER2 1+/2+ node-positive and high-risk node-negative breast cancer patients to study NeuVax in combination with Herceptin® (trastuzumab; Genentech/Roche) in the adjuvant setting. |
• | Phase 2 Ongoing: An investigator-sponsored trial is ongoing to study NeuVax in combination with Herceptin. The study will enroll 100 patients in neoadjuvant, node positive and negative HER2 IHC 3+ patients or HER2 gene-amplified breast cancer patients who are HLA A2+ or HLA A3+ and are determined to be at high-risk for recurrence. Partial funding for this trial comes from the Department of Defense (DoD) through the Congressionally Directed Medical Research Program (CDMRP) via legislation known as the Defense Appropriations Act. The grant was awarded under a Breast Cancer Research Program (BCRP) Breakthrough Award given to the lead investigator for the trial. |
• | Phase 2 Planned: In January 2014, we partnered with Dr. Reddy’s Laboratories, Ltd. in India for the commercialization of NeuVax in that region. Dr. Reddy’s is responsible for running a Phase 2 gastric cancer trial of NeuVax in India that is expected to initiate in 2016. |
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Total Acquisition Date Fair Value | ||||
Purchase price consideration: | ||||
Cash and cash equivalents | $ | 3,056 | ||
Common stock | 2,482 | |||
Liabilities assumed: | ||||
Future milestone payments | 740 | |||
Credit memos for expiring channel inventory | 1,995 | |||
Total consideration | $ | 8,273 | ||
Asset acquired: | ||||
Zuplenz rights | $ | 8,101 | ||
Goodwill | 172 | |||
Fair value of assets acquired | $ | 8,273 |
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Description | December 31, 2014 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (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 |
Description | December 31, 2013 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 42,349 | $ | 42,349 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 42,349 | $ | 42,349 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 48,965 | $ | — | $ | 48,965 | $ | — | |||||||
Contingent purchase price consideration | 6,821 | — | — | 6,821 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 55,786 | $ | — | $ | 48,965 | $ | 6,821 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2013 | $ | 7,142 | |
Milestone payment | (1,247 | ) | |
Change in the estimated fair value of the contingent purchase price consideration | 926 | ||
Balance, December 31, 2013 | 6,821 | ||
Change in the estimated fair value of the contingent purchase price consideration | (170 | ) | |
Balance at December 31, 2014 | $ | 6,651 |
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December 31, | |||||||
2014 | 2013 | ||||||
Clinical development expense | $ | 6,967 | $ | 3,109 | |||
Compensation and related benefits | 1,040 | 1,015 | |||||
Professional fees | 821 | 647 | |||||
Interest expense | 57 | 70 | |||||
Accrued expenses and other current liabilities | $ | 8,885 | $ | 4,841 |
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For the year ending December 31, 2015 | $ | 3,910 | ||
2016 | 4,254 | |||
Total future principal payments | 8,164 | |||
Unamortized debt issuance costs (net of fair value of warrants issued) | 238 | |||
Total debt | 8,402 | |||
Less current portion | (3,910 | ) | ||
Total long-term debt, net | $ | 4,492 |
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Operating Leases(1) | Non-Cancelable Employment Agreements(2) | Subtotal | Cancelable License Agreements(3) | Total | |||||||||||||||
2015 | $ | 74 | $ | 828 | $ | 902 | $ | 350 | $ | 1,252 | |||||||||
2016 | 83 | 100 | 183 | 350 | 533 | ||||||||||||||
2017 | 82 | — | 82 | 350 | 432 | ||||||||||||||
2018 | 70 | — | 70 | 350 | 420 | ||||||||||||||
2019 and thereafter | — | — | — | 6,815 | 6,815 | ||||||||||||||
Total | $ | 309 | $ | 928 | $ | 1,237 | $ | 8,215 | $ | 9,452 |
(1) | Operating leases are primarily facility and equipment related obligations with third party vendors. Operating lease expenses during the years ended December 31, 2014, 2013, and 2012 were approximately $72,000, $77,000 and $139,000, 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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2014 | 2013 | 2012 | |||||||||
Research and development | $ | 484 | $ | 754 | $ | 580 | |||||
General and administrative | 4,903 | 2,150 | 1,179 | ||||||||
Total stock-based compensation | $ | 5,387 | $ | 2,904 | $ | 1,759 |
2014 | 2013 | 2012 | ||||||
Risk free interest rate | 2.01 | % | 1.57 | % | 1.05 | % | ||
Volatility | 79.37 | % | 77.98 | % | 75.76 | % | ||
Expected lives (years) | 6.16 | 6.25 | 6.13 | |||||
Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2013 | 13,159 | $ | 2.73 | |||
Granted | 1,375 | 2.50 | ||||
Exercised | (3,608 | ) | 1.31 | |||
Cancelled | (2,336 | ) | 2.85 | |||
Outstanding at December 31, 2014 | 8,590 | $ | 3.25 | |||
Options exercisable at December 31, 2014 | 5,544 | $ | 3.56 |
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September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | August 2009 Warrants | Consultant and Oxford Warrants | Total | ||||||||||||||||
Outstanding, January 1, 2013 | — | 7,578 | 2,846 | 361 | 360 | 978 | 1,093 | 13,216 | |||||||||||||||
Granted | 7,044 | — | — | — | — | — | 182 | 7,226 | |||||||||||||||
Exercised | (602 | ) | (2,661 | ) | (1,688 | ) | (185 | ) | (70 | ) | — | (196 | ) | (5,402 | ) | ||||||||
Expired | — | — | — | — | — | — | (190 | ) | (190 | ) | |||||||||||||
Outstanding, December 31, 2013 | 6,442 | 4,917 | 1,158 | 176 | 290 | 978 | 889 | 14,850 | |||||||||||||||
Granted | — | — | — | — | — | — | 300 | 300 | |||||||||||||||
Exercised | (2,469 | ) | (1,886 | ) | (543 | ) | — | (265 | ) | (62 | ) | (469 | ) | (5,694 | ) | ||||||||
Expired | — | — | — | — | — | (916 | ) | — | (916 | ) | |||||||||||||
Outstanding, December 31, 2014 | 3,973 | 3,031 | 615 | 176 | 25 | — | 720 | 8,540 | |||||||||||||||
Expiration | September 2018 | December 2017 | April 2017 | March 2016 | March 2016 | August 2014 | Varies 2014-2020 |
As of December 31, 2014 | |||||||||||||||||||||||
September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | August 2009 Warrants | ||||||||||||||||||
Strike price | $ | 2.50 | $ | 1.90 | $ | 0.65 | $ | 0.65 | $ | 2.15 | $ | 4.50 | |||||||||||
Expected term (years) | 3.72 | 2.98 | 2.31 | 1.18 | 1.24 | 0.00 | |||||||||||||||||
Volatility % | 75.60 | % | 76.85 | % | 78.24 | % | 77.38 | % | 77.12 | % | — | % | |||||||||||
Risk-free rate % | 1.30 | % | 1.09 | % | 0.80 | % | 0.32 | % | 0.35 | % | — | % |
As of December 31, 2013 | |||||||||||||||||||||||
September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | August 2009 Warrants | ||||||||||||||||||
Strike price | $ | 2.50 | $ | 1.90 | $ | 0.65 | $ | 0.65 | $ | 2.15 | $ | 4.50 | |||||||||||
Expected term (years) | 4.72 | 3.98 | 3.31 | 2.18 | 2.24 | 0.59 | |||||||||||||||||
Volatility % | 71.97 | % | 71.38 | % | 71.71 | % | 73.45 | % | 73.36 | % | 66.85 | % | |||||||||||
Risk-free rate % | 1.61 | % | 1.25 | % | 0.93 | % | 0.45 | % | 0.47 | % | 0.11 | % |
September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | August 2009 Warrants | Total | |||||||||||||||||||||
Warrant liability, January 1, 2013 | $ | — | $ | 6,954 | $ | 3,310 | $ | 378 | $ | 187 | $ | 135 | $ | 10,964 | |||||||||||||
Fair value of warrants granted | 8,238 | — | — | — | — | — | 8,238 | ||||||||||||||||||||
Fair value of warrants exercised | (1,931 | ) | (8,482 | ) | (3,455 | ) | (260 | ) | (121 | ) | — | (14,249 | ) | ||||||||||||||
Change in fair value of warrants | 16,643 | 19,588 | 5,214 | 645 | 879 | 1,043 | 44,012 | ||||||||||||||||||||
Warrant liability, December 31, 2013 | 22,950 | 18,060 | 5,069 | 763 | 945 | 1,178 | 48,965 | ||||||||||||||||||||
Fair value of warrants granted | — | — | — | — | — | — | — | ||||||||||||||||||||
Fair value of warrants exercised | (12,713 | ) | (10,086 | ) | (2,906 | ) | — | (1,159 | ) | (162 | ) | (27,026 | ) | ||||||||||||||
Change in fair value of warrants | (7,677 | ) | (5,947 | ) | (1,538 | ) | (600 | ) | 222 | (1,016 | ) | (16,556 | ) | ||||||||||||||
Warrant liability, December 31, 2014 | $ | 2,560 | $ | 2,027 | $ | 625 | $ | 163 | $ | 8 | $ | — | $ | 5,383 |
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Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Realized gain on sale of marketable securities | $ | — | $ | 3,911 | $ | — | ||||||
Change in fair value of the contingent purchase price liability | 170 | (926 | ) | (2,370 | ) | |||||||
Miscellaneous other income | — | 37 | — | |||||||||
Total other income (expense) | $ | 170 | $ | 3,022 | $ | (2,370 | ) |
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As of December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | — | — | — | |||||||||
Total current | — | — | — | |||||||||
Deferred expense (benefit) | ||||||||||||
Federal | — | 894 | (894 | ) | ||||||||
State | — | 158 | (158 | ) | ||||||||
Total deferred | — | 1,052 | (1,052 | ) | ||||||||
Total income tax expense (benefit) | $ | — | $ | 1,052 | $ | (1,052 | ) |
As of December 31, | ||||||||
2014 | 2013 | |||||||
Net operating loss carryforwards | $ | 53,950 | $ | 33,539 | ||||
Tax credit carryforwards | 3,590 | 3,549 | ||||||
Stock based compensation | 4,676 | 8,322 | ||||||
Other | 190 | 12 | ||||||
Licensing deduction deferral | 8,919 | 8,682 | ||||||
Gross deferred tax assets | 71,325 | 54,104 | ||||||
Valuation allowance | (71,325 | ) | (54,104 | ) | ||||
Net deferred tax asset | $ | — | $ | — |
As of December 31, | ||||||||
2014 | 2013 | |||||||
In-process research and development not subject to future amortization for tax purposes | $ | 5,053 | $ | 5,053 | ||||
Gross deferred tax liability | $ | 5,053 | $ | 5,053 |
As of December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected federal income tax benefit | $ | (12,447 | ) | $ | (25,713 | ) | $ | (11,688 | ) | |||
State income taxes after credits | (1,283 | ) | (3,676 | ) | (1,067 | ) | ||||||
Unrealized gain on marketable securities | — | 1,052 | (1,052 | ) | ||||||||
Changes in warrant value | (6,503 | ) | 17,283 | 3,664 | ||||||||
Stock compensation | 3,996 | 813 | 152 | |||||||||
Effect of change in valuation allowance | 17,275 | 11,408 | 8,939 | |||||||||
Income tax credits | (42 | ) | (240 | ) | — | |||||||
Other | (996 | ) | 125 | — | ||||||||
$ | — | $ | 1,052 | $ | (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 | |||||||||||||
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 | ) | ||||
2013 | ||||||||||||||||
Net revenue | $ | — | $ | — | $ | 1,170 | $ | 1,317 | ||||||||
Gross profit on net revenue (1) | $ | — | $ | — | $ | 869 | $ | 967 | ||||||||
Net loss | $ | (9,293 | ) | $ | (9,597 | ) | $ | (9,287 | ) | $ | (48,501 | ) | ||||
Net loss per share | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.46 | ) |
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2014 | 2013 | ||||||
Carrying amounts of assets included as part of discontinued operations: | |||||||
Accounts receivable | $ | 1,535 | $ | 3,683 | |||
Inventories | 655 | 386 | |||||
Prepaid expenses and other current assets | 1,747 | 1,269 | |||||
Equipment and furnishings, net | 270 | 351 | |||||
Abstral rights, net | 14,533 | 14,979 | |||||
Zuplenz rights | 8,101 | — | |||||
Goodwill | 172 | — | |||||
Total current assets held for sale | 27,013 | 20,668 | |||||
Carrying amounts of liabilities included as part of discontinued operations: | |||||||
Accounts payable | $ | 385 | $ | 753 | |||
Accrued expenses and other current liabilities | 6,784 | 3,858 | |||||
Total current liabilities held for sale | $ | 7,169 | $ | 4,611 |
2014 | 2013 | 2012 | |||||||||
Net revenue | $ | 9,319 | $ | 2,487 | $ | — | |||||
Cost of revenue | (1,403 | ) | (520 | ) | — | ||||||
Amortization of certain acquired intangible assets | (440 | ) | (131 | ) | — | ||||||
Research and development | (680 | ) | (651 | ) | (1,325 | ) | |||||
Selling, general, and administrative | (15,118 | ) | (6,536 | ) | (293 | ) | |||||
Non-operating income (expense) | — | — | (26 | ) | |||||||
Loss from discontinued operations | $ | (8,322 | ) | $ | (5,351 | ) | $ | (1,644 | ) |
2014 | 2013 | ||||||
Depreciation and amortization | $ | 527 | $ | 166 | |||
Stock-based compensation | $ | 721 | $ | 223 | |||
Purchases of property and equipment | $ | — | $ | (385 | ) | ||
Cash paid for acquisition of Abstral rights | $ | — | $ | (15,143 | ) | ||
Cash paid for acquisition of Zuplenz rights | $ | (3,056 | ) | $ | — |
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Total Acquisition Date Fair Value | ||||
Purchase price consideration: | ||||
Cash and cash equivalents | $ | 3,056 | ||
Common stock | 2,482 | |||
Liabilities assumed: | ||||
Future milestone payments | 740 | |||
Credit memos for expiring channel inventory | 1,995 | |||
Total consideration | $ | 8,273 | ||
Asset acquired: | ||||
Zuplenz rights | $ | 8,101 | ||
Goodwill | 172 | |||
Fair value of assets acquired | $ | 8,273 |
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Description | December 31, 2014 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (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 |
Description | December 31, 2013 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 42,349 | $ | 42,349 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 42,349 | $ | 42,349 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 48,965 | $ | — | $ | 48,965 | $ | — | |||||||
Contingent purchase price consideration | 6,821 | — | — | 6,821 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 55,786 | $ | — | $ | 48,965 | $ | 6,821 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2013 | $ | 7,142 | |
Milestone payment | (1,247 | ) | |
Change in the estimated fair value of the contingent purchase price consideration | 926 | ||
Balance, December 31, 2013 | 6,821 | ||
Change in the estimated fair value of the contingent purchase price consideration | (170 | ) | |
Balance at December 31, 2014 | $ | 6,651 |
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December 31, | |||||||
2014 | 2013 | ||||||
Clinical development expense | $ | 6,967 | $ | 3,109 | |||
Compensation and related benefits | 1,040 | 1,015 | |||||
Professional fees | 821 | 647 | |||||
Interest expense | 57 | 70 | |||||
Accrued expenses and other current liabilities | $ | 8,885 | $ | 4,841 |
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For the year ending December 31, 2015 | $ | 3,910 | ||
2016 | 4,254 | |||
Total future principal payments | 8,164 | |||
Unamortized debt issuance costs (net of fair value of warrants issued) | 238 | |||
Total debt | 8,402 | |||
Less current portion | (3,910 | ) | ||
Total long-term debt, net | $ | 4,492 |
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Operating Leases(1) | Non-Cancelable Employment Agreements(2) | Subtotal | Cancelable License Agreements(3) | Total | |||||||||||||||
2015 | $ | 74 | $ | 828 | $ | 902 | $ | 350 | $ | 1,252 | |||||||||
2016 | 83 | 100 | 183 | 350 | 533 | ||||||||||||||
2017 | 82 | — | 82 | 350 | 432 | ||||||||||||||
2018 | 70 | — | 70 | 350 | 420 | ||||||||||||||
2019 and thereafter | — | — | — | 6,815 | 6,815 | ||||||||||||||
Total | $ | 309 | $ | 928 | $ | 1,237 | $ | 8,215 | $ | 9,452 |
(1) | Operating leases are primarily facility and equipment related obligations with third party vendors. Operating lease expenses during the years ended December 31, 2014, 2013, and 2012 were approximately $72,000, $77,000 and $139,000, 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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2014 | 2013 | 2012 | |||||||||
Research and development | $ | 484 | $ | 754 | $ | 580 | |||||
General and administrative | 4,903 | 2,150 | 1,179 | ||||||||
Total stock-based compensation | $ | 5,387 | $ | 2,904 | $ | 1,759 |
2014 | 2013 | 2012 | ||||||
Risk free interest rate | 2.01 | % | 1.57 | % | 1.05 | % | ||
Volatility | 79.37 | % | 77.98 | % | 75.76 | % | ||
Expected lives (years) | 6.16 | 6.25 | 6.13 | |||||
Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2013 | 13,159 | $ | 2.73 | |||
Granted | 1,375 | 2.50 | ||||
Exercised | (3,608 | ) | 1.31 | |||
Cancelled | (2,336 | ) | 2.85 | |||
Outstanding at December 31, 2014 | 8,590 | $ | 3.25 | |||
Options exercisable at December 31, 2014 | 5,544 | $ | 3.56 |
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September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | August 2009 Warrants | Consultant and Oxford Warrants | Total | ||||||||||||||||
Outstanding, January 1, 2013 | — | 7,578 | 2,846 | 361 | 360 | 978 | 1,093 | 13,216 | |||||||||||||||
Granted | 7,044 | — | — | — | — | — | 182 | 7,226 | |||||||||||||||
Exercised | (602 | ) | (2,661 | ) | (1,688 | ) | (185 | ) | (70 | ) | — | (196 | ) | (5,402 | ) | ||||||||
Expired | — | — | — | — | — | — | (190 | ) | (190 | ) | |||||||||||||
Outstanding, December 31, 2013 | 6,442 | 4,917 | 1,158 | 176 | 290 | 978 | 889 | 14,850 | |||||||||||||||
Granted | — | — | — | — | — | — | 300 | 300 | |||||||||||||||
Exercised | (2,469 | ) | (1,886 | ) | (543 | ) | — | (265 | ) | (62 | ) | (469 | ) | (5,694 | ) | ||||||||
Expired | — | — | — | — | — | (916 | ) | — | (916 | ) | |||||||||||||
Outstanding, December 31, 2014 | 3,973 | 3,031 | 615 | 176 | 25 | — | 720 | 8,540 | |||||||||||||||
Expiration | September 2018 | December 2017 | April 2017 | March 2016 | March 2016 | August 2014 | Varies 2014-2020 |
As of December 31, 2014 | |||||||||||||||||||||||
September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | August 2009 Warrants | ||||||||||||||||||
Strike price | $ | 2.50 | $ | 1.90 | $ | 0.65 | $ | 0.65 | $ | 2.15 | $ | 4.50 | |||||||||||
Expected term (years) | 3.72 | 2.98 | 2.31 | 1.18 | 1.24 | 0.00 | |||||||||||||||||
Volatility % | 75.60 | % | 76.85 | % | 78.24 | % | 77.38 | % | 77.12 | % | — | % | |||||||||||
Risk-free rate % | 1.30 | % | 1.09 | % | 0.80 | % | 0.32 | % | 0.35 | % | — | % |
As of December 31, 2013 | |||||||||||||||||||||||
September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | August 2009 Warrants | ||||||||||||||||||
Strike price | $ | 2.50 | $ | 1.90 | $ | 0.65 | $ | 0.65 | $ | 2.15 | $ | 4.50 | |||||||||||
Expected term (years) | 4.72 | 3.98 | 3.31 | 2.18 | 2.24 | 0.59 | |||||||||||||||||
Volatility % | 71.97 | % | 71.38 | % | 71.71 | % | 73.45 | % | 73.36 | % | 66.85 | % | |||||||||||
Risk-free rate % | 1.61 | % | 1.25 | % | 0.93 | % | 0.45 | % | 0.47 | % | 0.11 | % |
September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2011 Warrants | March 2010 Warrants | August 2009 Warrants | Total | |||||||||||||||||||||
Warrant liability, January 1, 2013 | $ | — | $ | 6,954 | $ | 3,310 | $ | 378 | $ | 187 | $ | 135 | $ | 10,964 | |||||||||||||
Fair value of warrants granted | 8,238 | — | — | — | — | — | 8,238 | ||||||||||||||||||||
Fair value of warrants exercised | (1,931 | ) | (8,482 | ) | (3,455 | ) | (260 | ) | (121 | ) | — | (14,249 | ) | ||||||||||||||
Change in fair value of warrants | 16,643 | 19,588 | 5,214 | 645 | 879 | 1,043 | 44,012 | ||||||||||||||||||||
Warrant liability, December 31, 2013 | 22,950 | 18,060 | 5,069 | 763 | 945 | 1,178 | 48,965 | ||||||||||||||||||||
Fair value of warrants granted | — | — | — | — | — | — | — | ||||||||||||||||||||
Fair value of warrants exercised | (12,713 | ) | (10,086 | ) | (2,906 | ) | — | (1,159 | ) | (162 | ) | (27,026 | ) | ||||||||||||||
Change in fair value of warrants | (7,677 | ) | (5,947 | ) | (1,538 | ) | (600 | ) | 222 | (1,016 | ) | (16,556 | ) | ||||||||||||||
Warrant liability, December 31, 2014 | $ | 2,560 | $ | 2,027 | $ | 625 | $ | 163 | $ | 8 | $ | — | $ | 5,383 |
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Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Realized gain on sale of marketable securities | $ | — | $ | 3,911 | $ | — | ||||||
Change in fair value of the contingent purchase price liability | 170 | (926 | ) | (2,370 | ) | |||||||
Miscellaneous other income | — | 37 | — | |||||||||
Total other income (expense) | $ | 170 | $ | 3,022 | $ | (2,370 | ) |
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As of December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | — | — | — | |||||||||
Total current | — | — | — | |||||||||
Deferred expense (benefit) | ||||||||||||
Federal | — | 894 | (894 | ) | ||||||||
State | — | 158 | (158 | ) | ||||||||
Total deferred | — | 1,052 | (1,052 | ) | ||||||||
Total income tax expense (benefit) | $ | — | $ | 1,052 | $ | (1,052 | ) |
As of December 31, | ||||||||
2014 | 2013 | |||||||
Net operating loss carryforwards | $ | 53,950 | $ | 33,539 | ||||
Tax credit carryforwards | 3,590 | 3,549 | ||||||
Stock based compensation | 4,676 | 8,322 | ||||||
Other | 190 | 12 | ||||||
Licensing deduction deferral | 8,919 | 8,682 | ||||||
Gross deferred tax assets | 71,325 | 54,104 | ||||||
Valuation allowance | (71,325 | ) | (54,104 | ) | ||||
Net deferred tax asset | $ | — | $ | — |
As of December 31, | ||||||||
2014 | 2013 | |||||||
In-process research and development not subject to future amortization for tax purposes | $ | 5,053 | $ | 5,053 | ||||
Gross deferred tax liability | $ | 5,053 | $ | 5,053 |
As of December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected federal income tax benefit | $ | (12,447 | ) | $ | (25,713 | ) | $ | (11,688 | ) | |||
State income taxes after credits | (1,283 | ) | (3,676 | ) | (1,067 | ) | ||||||
Unrealized gain on marketable securities | — | 1,052 | (1,052 | ) | ||||||||
Changes in warrant value | (6,503 | ) | 17,283 | 3,664 | ||||||||
Stock compensation | 3,996 | 813 | 152 | |||||||||
Effect of change in valuation allowance | 17,275 | 11,408 | 8,939 | |||||||||
Income tax credits | (42 | ) | (240 | ) | — | |||||||
Other | (996 | ) | 125 | — | ||||||||
$ | — | $ | 1,052 | $ | (1,052 | ) |
|
December 31, | ||||||
2014 | 2013 | |||||
Customer A | 24 | % | 25 | % | ||
Customer B | 31 | % | 1 | % | ||
Customer C | 16 | % | 11 | % | ||
Customer D | 21 | % | 54 | % |
Year ended December 31, | ||||||
2014 | 2013 | |||||
Customer A | 43 | % | 25 | % | ||
Customer B | 18 | % | 6 | % | ||
Customer C | 14 | % | 26 | % | ||
Customer D | 11 | % | 34 | % |
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1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
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 | ) | ||||
2013 | ||||||||||||||||
Net revenue | $ | — | $ | — | $ | 1,170 | $ | 1,317 | ||||||||
Gross profit on net revenue (1) | $ | — | $ | — | $ | 869 | $ | 967 | ||||||||
Net loss | $ | (9,293 | ) | $ | (9,597 | ) | $ | (9,287 | ) | $ | (48,501 | ) | ||||
Net loss per share | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.46 | ) |
|
2014 | 2013 | ||||||
Carrying amounts of assets included as part of discontinued operations: | |||||||
Accounts receivable | $ | 1,535 | $ | 3,683 | |||
Inventories | 655 | 386 | |||||
Prepaid expenses and other current assets | 1,747 | 1,269 | |||||
Equipment and furnishings, net | 270 | 351 | |||||
Abstral rights, net | 14,533 | 14,979 | |||||
Zuplenz rights | 8,101 | — | |||||
Goodwill | 172 | — | |||||
Total current assets held for sale | 27,013 | 20,668 | |||||
Carrying amounts of liabilities included as part of discontinued operations: | |||||||
Accounts payable | $ | 385 | $ | 753 | |||
Accrued expenses and other current liabilities | 6,784 | 3,858 | |||||
Total current liabilities held for sale | $ | 7,169 | $ | 4,611 |
2014 | 2013 | 2012 | |||||||||
Net revenue | $ | 9,319 | $ | 2,487 | $ | — | |||||
Cost of revenue | (1,403 | ) | (520 | ) | — | ||||||
Amortization of certain acquired intangible assets | (440 | ) | (131 | ) | — | ||||||
Research and development | (680 | ) | (651 | ) | (1,325 | ) | |||||
Selling, general, and administrative | (15,118 | ) | (6,536 | ) | (293 | ) | |||||
Non-operating income (expense) | — | — | (26 | ) | |||||||
Loss from discontinued operations | $ | (8,322 | ) | $ | (5,351 | ) | $ | (1,644 | ) |
2014 | 2013 | ||||||
Depreciation and amortization | $ | 527 | $ | 166 | |||
Stock-based compensation | $ | 721 | $ | 223 | |||
Purchases of property and equipment | $ | — | $ | (385 | ) | ||
Cash paid for acquisition of Abstral rights | $ | — | $ | (15,143 | ) | ||
Cash paid for acquisition of Zuplenz rights | $ | (3,056 | ) | $ | — |
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