| 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. |
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Description | March 31, 2016 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 32,029 | $ | 32,029 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 32,029 | $ | 32,029 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 23,934 | $ | — | $ | 23,934 | $ | — | |||||||
Contingent purchase price consideration | 6,312 | — | — | 6,312 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 30,246 | $ | — | $ | 23,934 | $ | 6,312 |
Description | December 31, 2015 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (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 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2016 | $ | 6,142 | |
Change in the estimated fair value of the contingent purchase price consideration | 170 | ||
Balance at March 31, 2016 | $ | 6,312 |
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March 31, 2016 | December 31, 2015 | ||||||
Clinical trial costs | $ | 2,437 | $ | 3,294 | |||
Professional fees | 942 | 435 | |||||
Compensation and related benefits | 642 | 1,535 | |||||
Interest expense | 21 | 28 | |||||
Accrued expenses and other current liabilities | $ | 4,042 | $ | 5,292 |
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Amount | |||
Class action settlement | $ | 20,000 | |
Derivative settlement | 5,000 | ||
Total settlements | $ | 25,000 | |
Paid by the insurance carriers | $ | 20,000 | |
Payable by the insurance carriers | 1,700 | ||
Payable by the company in cash | 2,300 | ||
Payable by the company in common stock | 1,000 | ||
Total settlements payable | $ | 25,000 |
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As of March 31, 2016 | ||
Warrants outstanding | 35,775 | |
Stock options outstanding | 12,001 | |
Options reserved for future issuance under the Company’s 2007 Incentive Plan | 9,399 | |
Shares reserved for future issuance under the Employee Stock Purchase Plan | 461 | |
Total reserved for future issuance | 57,636 |
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January 2016 Warrants | March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | Other Equity Financing Warrants | Consultant and Oxford Warrants | Total | ||||||||||||||
Outstanding, January 1, 2016 | — | 14,006 | 3,973 | 3,031 | 816 | 482 | 22,308 | |||||||||||||
Issued | 13,643 | — | — | — | — | — | 13,643 | |||||||||||||
Exercised | — | — | — | — | (145 | ) | — | (145 | ) | |||||||||||
Expired | — | — | — | — | (31 | ) | — | (31 | ) | |||||||||||
Outstanding, March 31, 2016 | 13,643 | 14,006 | 3,973 | 3,031 | 640 | 482 | 35,775 | |||||||||||||
Expiration | January 2021 | March 2020 | September 2018 | December 2017 | Varies 2016-2017 | Varies 2014-2020 |
As of March 31, 2016 | |||||||||||||||||||||||
January 2016 Warrants | March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2010 Warrants | ||||||||||||||||||
Strike price | $ | 1.42 | $ | 2.08 | $ | 2.50 | $ | 1.75 | $ | 0.65 | $ | 1.92 | |||||||||||
Expected term (years) | 4.77 | 3.97 | 2.47 | 1.73 | 1.06 | 0.50 | |||||||||||||||||
Volatility % | 77.91 | % | 78.82 | % | 79.51 | % | 75.03 | % | 83.64 | % | 75.90 | % | |||||||||||
Risk-free rate % | 1.17 | % | 1.03 | % | 0.80 | % | 0.69 | % | 0.60 | % | 0.39 | % |
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 | 1.00 | |||||||||||||||||
Volatility % | 75.85 | % | 74.70 | % | 76.37 | % | 65.60 | % | 47.98 | % | 71.41 | % | |||||||||||
Risk-free rate % | 1.58 | % | 1.24 | % | 1.05 | % | 0.77 | % | — | % | — | % |
January 2016 Warrants | March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | Other Equity Financing Warrants | Total | |||||||||||||||||||||
Warrant liability, January 1, 2016 | $ | — | $ | 10,337 | $ | 1,933 | $ | 1,565 | $ | 537 | $ | 146 | $ | 14,518 | |||||||||||||
Fair value of warrants issued | 5,590 | — | — | — | — | — | 5,590 | ||||||||||||||||||||
Fair value of warrants exercised | — | — | — | — | — | (46 | ) | (46 | ) | ||||||||||||||||||
Change in fair value of warrants | 5,686 | (1,134 | ) | (231 | ) | (305 | ) | (48 | ) | (96 | ) | 3,872 | |||||||||||||||
Warrant liability, March 31, 2016 | $ | 11,276 | $ | 9,203 | $ | 1,702 | $ | 1,260 | $ | 489 | $ | 4 | $ | 23,934 |
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Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Research and development | $ | 127 | $ | 77 | |||
General and administrative | 529 | 294 | |||||
Total stock-based compensation from continuing operations | $ | 656 | $ | 371 |
Three Months Ended March 31, | |||||
2016 | 2015 | ||||
Risk free interest rate | 1.41 | % | 1.41 | % | |
Volatility | 75.24 | % | 74.62 | % | |
Expected lives (years) | 6.25 | 6.25 | |||
Expected dividend yield | — | % | — | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | Aggregate Intrinsic Value (In Thousands) | ||||||||
Outstanding at January 1, 2016 | 13,262 | $ | 2.58 | |||||||
Granted | 105 | 0.84 | ||||||||
Exercised | (40 | ) | 0.87 | $ | 10 | |||||
Cancelled | (1,326 | ) | 2.37 | $ | 25 | |||||
Outstanding at March 31, 2016 | 12,001 | $ | 2.59 | $ | 421 | |||||
Options exercisable at March 31, 2016 | 7,152 | $ | 3.19 | $ | 366 |
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Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Change in fair value of the contingent purchase price liability | $ | (170 | ) | $ | (321 | ) | |
Total other expense | $ | (170 | ) | $ | (321 | ) |
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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 |
March 31, 2016 | December 31, 2015 | ||||||
Carrying amounts of assets included as part of discontinued operations: | |||||||
Accounts receivable, net | $ | 88 | $ | 392 | |||
Total current assets of discontinued operations, net | 88 | 392 | |||||
Carrying amounts of liabilities included as part of discontinued operations: | |||||||
Accounts payable | $ | 1,236 | $ | 1,491 | |||
Accrued expenses and other current liabilities | 3,251 | 4,434 | |||||
Total current liabilities of discontinued operations | $ | 4,487 | $ | 5,925 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net revenue | $ | — | $ | 2,750 | |||
Additional channel obligations | (1,010 | ) | — | ||||
Cost of revenue | — | (393 | ) | ||||
Amortization of certain acquired intangible assets | — | (146 | ) | ||||
Research and development | — | (85 | ) | ||||
Selling, general, and administrative | (2,381 | ) | (4,340 | ) | |||
Non-operating income (expense) | — | (17 | ) | ||||
Impairment charge from classification as assets held for sale | — | — | |||||
Loss from discontinued operations | $ | (3,391 | ) | $ | (2,231 | ) |
March 31, 2016 | March 31, 2015 | ||||||
Depreciation and amortization | $ | — | $ | 20 | |||
Stock-based compensation | $ | — | $ | 256 | |||
Purchases of property and equipment | $ | — | $ | (34 | ) | ||
Cash paid for acquisition of Zuplenz rights | $ | — | $ | (500 | ) |
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Description | March 31, 2016 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 32,029 | $ | 32,029 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 32,029 | $ | 32,029 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 23,934 | $ | — | $ | 23,934 | $ | — | |||||||
Contingent purchase price consideration | 6,312 | — | — | 6,312 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 30,246 | $ | — | $ | 23,934 | $ | 6,312 |
Description | December 31, 2015 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (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 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2016 | $ | 6,142 | |
Change in the estimated fair value of the contingent purchase price consideration | 170 | ||
Balance at March 31, 2016 | $ | 6,312 |
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March 31, 2016 | December 31, 2015 | ||||||
Clinical trial costs | $ | 2,437 | $ | 3,294 | |||
Professional fees | 942 | 435 | |||||
Compensation and related benefits | 642 | 1,535 | |||||
Interest expense | 21 | 28 | |||||
Accrued expenses and other current liabilities | $ | 4,042 | $ | 5,292 |
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Amount | |||
Class action settlement | $ | 20,000 | |
Derivative settlement | 5,000 | ||
Total settlements | $ | 25,000 | |
Paid by the insurance carriers | $ | 20,000 | |
Payable by the insurance carriers | 1,700 | ||
Payable by the company in cash | 2,300 | ||
Payable by the company in common stock | 1,000 | ||
Total settlements payable | $ | 25,000 |
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As of March 31, 2016 | ||
Warrants outstanding | 35,775 | |
Stock options outstanding | 12,001 | |
Options reserved for future issuance under the Company’s 2007 Incentive Plan | 9,399 | |
Shares reserved for future issuance under the Employee Stock Purchase Plan | 461 | |
Total reserved for future issuance | 57,636 |
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January 2016 Warrants | March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | Other Equity Financing Warrants | Consultant and Oxford Warrants | Total | ||||||||||||||
Outstanding, January 1, 2016 | — | 14,006 | 3,973 | 3,031 | 816 | 482 | 22,308 | |||||||||||||
Issued | 13,643 | — | — | — | — | — | 13,643 | |||||||||||||
Exercised | — | — | — | — | (145 | ) | — | (145 | ) | |||||||||||
Expired | — | — | — | — | (31 | ) | — | (31 | ) | |||||||||||
Outstanding, March 31, 2016 | 13,643 | 14,006 | 3,973 | 3,031 | 640 | 482 | 35,775 | |||||||||||||
Expiration | January 2021 | March 2020 | September 2018 | December 2017 | Varies 2016-2017 | Varies 2014-2020 |
As of March 31, 2016 | |||||||||||||||||||||||
January 2016 Warrants | March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | March 2010 Warrants | ||||||||||||||||||
Strike price | $ | 1.42 | $ | 2.08 | $ | 2.50 | $ | 1.75 | $ | 0.65 | $ | 1.92 | |||||||||||
Expected term (years) | 4.77 | 3.97 | 2.47 | 1.73 | 1.06 | 0.50 | |||||||||||||||||
Volatility % | 77.91 | % | 78.82 | % | 79.51 | % | 75.03 | % | 83.64 | % | 75.90 | % | |||||||||||
Risk-free rate % | 1.17 | % | 1.03 | % | 0.80 | % | 0.69 | % | 0.60 | % | 0.39 | % |
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 | 1.00 | |||||||||||||||||
Volatility % | 75.85 | % | 74.70 | % | 76.37 | % | 65.60 | % | 47.98 | % | 71.41 | % | |||||||||||
Risk-free rate % | 1.58 | % | 1.24 | % | 1.05 | % | 0.77 | % | — | % | — | % |
January 2016 Warrants | March 2015 Warrants | September 2013 Warrants | December 2012 Warrants | April 2011 Warrants | Other Equity Financing Warrants | Total | |||||||||||||||||||||
Warrant liability, January 1, 2016 | $ | — | $ | 10,337 | $ | 1,933 | $ | 1,565 | $ | 537 | $ | 146 | $ | 14,518 | |||||||||||||
Fair value of warrants issued | 5,590 | — | — | — | — | — | 5,590 | ||||||||||||||||||||
Fair value of warrants exercised | — | — | — | — | — | (46 | ) | (46 | ) | ||||||||||||||||||
Change in fair value of warrants | 5,686 | (1,134 | ) | (231 | ) | (305 | ) | (48 | ) | (96 | ) | 3,872 | |||||||||||||||
Warrant liability, March 31, 2016 | $ | 11,276 | $ | 9,203 | $ | 1,702 | $ | 1,260 | $ | 489 | $ | 4 | $ | 23,934 |
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Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Research and development | $ | 127 | $ | 77 | |||
General and administrative | 529 | 294 | |||||
Total stock-based compensation from continuing operations | $ | 656 | $ | 371 |
Three Months Ended March 31, | |||||
2016 | 2015 | ||||
Risk free interest rate | 1.41 | % | 1.41 | % | |
Volatility | 75.24 | % | 74.62 | % | |
Expected lives (years) | 6.25 | 6.25 | |||
Expected dividend yield | — | % | — | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | Aggregate Intrinsic Value (In Thousands) | ||||||||
Outstanding at January 1, 2016 | 13,262 | $ | 2.58 | |||||||
Granted | 105 | 0.84 | ||||||||
Exercised | (40 | ) | 0.87 | $ | 10 | |||||
Cancelled | (1,326 | ) | 2.37 | $ | 25 | |||||
Outstanding at March 31, 2016 | 12,001 | $ | 2.59 | $ | 421 | |||||
Options exercisable at March 31, 2016 | 7,152 | $ | 3.19 | $ | 366 |
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Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Change in fair value of the contingent purchase price liability | $ | (170 | ) | $ | (321 | ) | |
Total other expense | $ | (170 | ) | $ | (321 | ) |
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March 31, 2016 | December 31, 2015 | ||||||
Carrying amounts of assets included as part of discontinued operations: | |||||||
Accounts receivable, net | $ | 88 | $ | 392 | |||
Total current assets of discontinued operations, net | 88 | 392 | |||||
Carrying amounts of liabilities included as part of discontinued operations: | |||||||
Accounts payable | $ | 1,236 | $ | 1,491 | |||
Accrued expenses and other current liabilities | 3,251 | 4,434 | |||||
Total current liabilities of discontinued operations | $ | 4,487 | $ | 5,925 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net revenue | $ | — | $ | 2,750 | |||
Additional channel obligations | (1,010 | ) | — | ||||
Cost of revenue | — | (393 | ) | ||||
Amortization of certain acquired intangible assets | — | (146 | ) | ||||
Research and development | — | (85 | ) | ||||
Selling, general, and administrative | (2,381 | ) | (4,340 | ) | |||
Non-operating income (expense) | — | (17 | ) | ||||
Impairment charge from classification as assets held for sale | — | — | |||||
Loss from discontinued operations | $ | (3,391 | ) | $ | (2,231 | ) |
March 31, 2016 | March 31, 2015 | ||||||
Depreciation and amortization | $ | — | $ | 20 | |||
Stock-based compensation | $ | — | $ | 256 | |||
Purchases of property and equipment | $ | — | $ | (34 | ) | ||
Cash paid for acquisition of Zuplenz rights | $ | — | $ | (500 | ) |
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