View Filing Data

Print Document View Excel Document

DEI Document	6 Months Ended
DEI Document	Jun. 30, 2018 shares
Document and Entity Information [Abstract]
Entity Registrant Name	XERIS PHARMACEUTICALS INC
Entity Central Index Key	0001346302
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding	20,817,313

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Balance Sheets [Abstract]
Cash and cash equivalents	$ 134,528	$ 42,045
Accounts receivable, net	1,065	1,199
Prepaid expenses and other current assets	1,439	809
Total current assets	137,032	44,053
Property and equipment, net	1,136	788
Other assets	88	157
Total assets	138,256	44,998
Accounts payable	556	1,976
Accrued expenses	7,542	2,557
Warrants liabilities	807	93
Deferred grant award	284	234
Total current liabilities	9,189	4,860
Long-term debt, net of unamortized deferred costs	18,167	0
Other long-term liabilities	1,563	90
Total liabilities	28,919	4,950
Commitments and contingencies (Note 8)
Series A Convertible Preferred Stock, par value $0.0001	0	1,945
Series B Convertible Preferred Stock, par value $0.0001	0	18,536
Series C Convertible Preferred Stock, par value $0.0001	0	77,397
Total convertible preferred stock	0	97,878
Preferred Stock, par value $0.0001	0	0
Common stock, par value $0.0001	2	1
Additional paid in capital	194,813	2,754
Accumulated deficit	(85,478)	(60,585)
Total stockholders' equity (deficit)	109,337	(57,830)
Total liabilities, convertible preferred stock and stockholders' (deficit) equity	$ 138,256	$ 44,998

Condensed Balance Sheets Balance Sheets Parenthetical - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Preferred Stock, Par Value Per Share	$ 0.0001	$ 0.0001
Common Shares, Par Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	0
Common Stock, Shares Authorized	150,000,000	30,450,994
Preferred Stock, Shares Issued	0	0
Common Shares, Shares, Issued	20,688,457	2,159,068
Preferred Stock, Series A [Member]
Class of Stock [Line Items]
Preferred Stock, Par Value Per Share		$ 0.0001
Preferred Stock, Shares Authorized		1,864,797
Preferred Stock, Shares Issued		1,843,965
Preferred Stock, Series B [Member]
Class of Stock [Line Items]
Preferred Stock, Par Value Per Share		$ 0.0001
Preferred Stock, Shares Authorized		5,732,338
Preferred Stock, Shares Issued		5,696,834
Preferred Stock, Series C [Member]
Class of Stock [Line Items]
Preferred Stock, Par Value Per Share		$ 0.0001
Preferred Stock, Shares Authorized		14,353,859
Preferred Stock, Shares Issued		12,834,912

Statement of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Statement of Income - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Grant income	$ 819	$ 549	$ 1,029	$ 903
Service revenue	0	16	53	16
Cost of revenue	0	4	42	4
Gross Profit	819	561	1,040	915
Research and development	8,677	4,201	17,389	7,863
General and administrative	4,499	1,559	7,738	2,900
Expense from operations	13,176	5,760	25,127	10,763
Loss from operations	(12,357)	(5,199)	(24,087)	(9,848)
Interest income	238	0	334	0
Interest expense	(562)	(1)	(753)	(1)
Change in fair value of warrants	(306)	(32)	(388)	(32)
Other Expenses	(630)	(33)	(807)	(33)
Net loss	$ (12,987)	$ (5,232)	$ (24,894)	$ (9,881)
Net loss per common share - basic and diluted	$ (3.07)	$ (2.59)	$ (7.76)	$ (4.92)
Weighted average common shares outstanding, basic and diluted	4,231,054	2,022,240	3,205,998	2,010,236

Statement of Cash Flows - USD ($)	6 Months Ended
Statement of Cash Flows - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Net loss	$ (24,894,000)	$ (9,881,000)
Depreciation and amortization	141,000	71,000
Amortization of debt issuance costs	156,000	0
Stock-based compensation	605,000	247,000
Change in fair value of warrants	388,000	32,000
Accounts receivable	134,000	(490,000)
Prepaid expenses and other current assets	(629,000)	437,000
Other assets	69,000	(43,000)
Accounts payable	(1,420,000)	(926,000)
Accrued expenses	3,261,000	555,000
Deferred grant award	50,000	0
Deferred rent	112,000	12,000
Net cash used in operating activities	(22,027,000)	(9,986,000)
Purchases of property and equipment	(489,000)	(439,000)
Net cash used in investing activities	(489,000)	(439,000)
Proceeds from Initial Public Offering	98,325,000	0
Payments for Initial Public Offering Costs	(7,588,000)	0
Proceeds from sale of Series C Preferred Stock	4,438,000	30,050,000
Payments of Series C Preferred Stock offering costs	(24,000)	(428,000)
Proceeds from issuance of long-term debt	20,000,000	0
Payment of debt issuance costs	(238,000)	0
Proceeds from exercise of stock awards	86,000	31,000
Net cash provided by financing activities	114,999,000	29,653,000
Increase in cash and cash equivalents	92,483,000	19,228,000
Cash and cash equivalents	134,528,000	51,497,000
Cash paid for interest	451,000	0
Allocation of debt proceeds to warrants	326,000	0
Deferred Initial Public Offering costs withing accrued expenses	1,735,000
Accrued debt issuance costs	1,425,000	0
Vesting of early exercised awards	$ 75,000	$ 0

Note 1. Organization and Nature of the Business	6 Months Ended
Note 1. Organization and Nature of the Business	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of the Business	Organization and Nature of the Business Nature of business Xeris Pharmaceuticals, Inc. ("Xeris" or the "Company") is a specialty pharmaceutical company that was incorporated in Delaware in 2005. Xeris is dedicated to the development of ready-to-use injectable and infusible drug formulations that address important unmet medical needs, are easier to use by patients, caregivers and health practitioners, and reduce costs for payors and the healthcare system. Basis of presentation The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Since its inception, the Company has devoted substantially all of its efforts to research and development, regulatory and technical activities. The Company has financed its operations through the issuance of common stock in its June 2018 initial public offering ("IPO"), issuance of convertible preferred stock and other equity instruments, issuance of debt and grant funding from the National Institutes of Health ("NIH") and other philanthropic organizations. The Company has not generated any revenue from product sales. The Company has incurred operating losses since inception and has an accumulated deficit of $85.5 million as of June 30, 2018. The Company expects to continue to incur net losses for the next several years. Based on the Company’s current operating plans and existing working capital at June 30, 2018 combined with the $15.0 million in additional expected proceeds from the second tranche of the Loan and Security Agreement, cash is sufficient to sustain operations and capital expenditure requirements through at least the first quarter of 2021. The Company is subject to a number of risks similar to other specialty pharmaceutical companies, including, but not limited to, successful development and commercialization of its drug candidates, the development of new technological innovations by its competitors, protection of intellectual property and market acceptance of the Company’s products.

Note 2. Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

The accompanying unaudited interim financial statements have been prepared in conformity with GAAP. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

In the opinion of management, the accompanying unaudited interim financial statements include all normal and recurring adjustments (which consist primarily of accruals and estimates that impact the financial statements) considered necessary to present fairly the Company’s financial position as of June 30, 2018 and its results of operations and cash flows for the six months ended June 30, 2018 and 2017. Operating results for the three and six month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The unaudited interim financial statements, presented herein, do not contain the required disclosures under GAAP for annual financial statements. The accompanying unaudited interim financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2017 included in the prospectus (Registration No. 333-225191) filed pursuant to Rule 424(b) on June 21, 2018 with the U.S. Securities and Exchange Commission.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, contingent liabilities and expenses included in the financial statements and accompanying notes. Actual results could differ from those estimates.

Impacts of the Tax Cuts and Jobs Act

On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) (the “Tax Act”) was signed into law. The Tax Act contains significant changes to corporate taxation, including (i) the reduction of the corporate income tax rate to 21%, (ii) the acceleration of expensing for certain business assets, (iii) the one-time transition tax related to the transition of U.S. international tax from a worldwide tax system to a territorial tax system, (iv) the repeal of the domestic production deduction, (v) additional limitations on the deductibility of interest expense, and (vi) expanded limitations on executive compensation. The key impacts of the Tax Act on the Company’s financial statements for the year ended December 31, 2017 were the re-measurement of deferred tax balances to the new corporate tax rate. While the Company has not yet completed the assessment of the effects of the Tax Act, the Company was able to determine reasonable estimates for the impact of the key items specified above and thus it reported provisional amounts for these items. In accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), the Company provides additional disclosures related to these provisional amounts. In order to calculate the effects of the new corporate tax rate on its deferred tax balances, ASC 740 “Income Taxes” (“ASC 740”) required the re-measurement of the Company’s deferred tax balances as of the enactment date of the Tax Act, based on the rates at which the balances were expected to reverse in the future. The provisional amount determined, and recorded as of December 31, 2017, for the re-measurement of its deferred tax balances resulted in a net reduction in deferred tax assets of $7,478,000 and a corresponding reduction in the valuation allowance of $7,478,000.

The aforementioned provisional amounts related to the deferred tax balances are based on information available at this time and may change due to a variety of factors, including, among others, (i) anticipated guidance from the U.S. Department of Treasury about implementing the Tax Act, (ii) potential additional guidance from the U.S. Securities and Exchange Commission or the FASB related to the Tax Act and (iii) management’s further assessment of the Tax Act and related regulatory guidance. The Company is not complete in its assessment of the impact of the Tax Act on its business and financial statements. The effective date of most of the provisions of the Tax Act applies to the Company’s tax year beginning January 1, 2018. The Company will continue the assessment of the impact of the Tax Act on its business and financial statements throughout the one-year measurement period as provided by SAB 118.

Debt issuance costs

Long-term debt is accounted for at amortized cost. Debt issuance costs incurred in connection with financing arrangements are amortized to interest expense over the life of the respective financing arrangement using the effective interest method. Debt issuance costs, net of related amortization, are deducted from the carrying value of the related debt.

IPO costs

The Company capitalizes costs that are directly associated with in-process equity financings until such financings are consummated, at which time such costs are recorded in the additional paid in capital line on the balance sheet against the gross proceeds of the IPO. As of June 30, 2018, the Company capitalized approximately $9.3 million in IPO costs.

Fair value of financial instruments

Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value determination in accordance with applicable accounting guidance requires that a number of significant judgments be made. Additionally, fair value is used on a non-recurring basis to evaluate assets for impairment or as required for disclosure purposes by applicable accounting guidance on disclosures about fair value of financial instruments. Depending on the nature of the assets and liabilities, various valuation techniques and assumptions are used when estimating fair value. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, and accounts payable, are shown at cost, which approximates fair value due to the short-term nature of these instruments. The debt outstanding under the Loan and Security Agreement approximates fair value due to the variable interest rate on the debt. Items measured at fair value on a recurring basis include the Company’s warrants.

Net loss per common share

Basic and diluted net loss per common share is determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. For all periods presented, the outstanding shares of the preferred stock, warrants, and stock awards have been excluded from the calculation because their effects would be anti-dilutive. Therefore, the weighted average common shares outstanding used to calculate both basic and diluted loss per common share are the same.

The following potentially dilutive securities (shown below in common stock equivalent shares) were excluded from the computation of diluted weighted average common shares outstanding due to their anti-dilutive effect:



	As of June 30,
	2018	2017
Convertible preferred stock	—	10,954,012
Warrants	73,651	19,931
Stock awards and unvested stock awards	2,541,262	1,957,432

Recent accounting pronouncements

In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share Based Payment Accounting (“ASU 2016-09”), as part of the FASB simplification initiative. The new standard provides for changes to accounting for stock compensation including 1) excess tax benefits and tax deficiencies related to share-based payment awards being recognized as income tax expense in the reporting period in which they occur; 2) excess tax benefits being classified as an operating activity in the statement of cash flow; 3) the option to elect to estimate forfeitures or account for them when they occur; and 4) increase tax withholding requirements threshold to qualify for equity classification. ASU 2016-09 is effective for public companies with annual periods and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company adopted this standard on January 1, 2018 and did not have an impact on the financial statements.

Note 3. Reverse Stock Split and Initial Public Offering

6 Months Ended

Jun. 30, 2018

Reverse Stock Split and Initial Public Offering [Abstract]

Reverse Stock Split and Initial Public Offering

On June 8, 2018, the Company effectuated a 1-for-1.78112 reverse stock split of its outstanding common stock, which was approved by the Company’s board of directors on May 22, 2018 and by the Company’s stockholders on June 8, 2018. The reverse stock split resulted in an adjustment to the preferred stock conversion prices to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying financial statements and notes to the financial statements give retroactive effect to the reverse stock split for all periods presented. The shares of common stock retained a par value of $0.0001 per share. Accordingly, the stockholders’ deficit reflects the reverse stock split by reclassifying from common stock to additional paid in capital an amount equal to the par value of the decreased shares resulting from the reverse stock split.

On June 25, 2018, the Company closed the IPO of its common stock pursuant to a registration statement on Form S-1, as amended. The Company sold an aggregate of 6,555,000 shares of common stock under the registration statement at a public offering price of $15.00 per share, including 855,000 shares of common stock pursuant to the exercise of the underwriters’ option to purchase additional shares. Net proceeds from the offering were approximately $89.0 million, after deducting underwriting discounts and commissions, as well as other offering expenses.

Upon closing the IPO, all outstanding shares of the Company's Series A, B and C convertible preferred stock were converted into 11,837,073 shares of common stock.

Warrants

In 2014 the Company issued 19,931 warrants (“2014 Warrants”) to certain investors. The 2014 Warrants allow each holder to purchase one share of common stock for $5.912. There have been no exercises of 2014 Warrants and as such all 19,931 warrants were outstanding as of June 30, 2018.

As part of the Loan and Security Agreement discussed in Note 5, "Long-term Debt," in the notes to unaudited condensed financial statements, the Lenders shall receive warrant coverage equal to 3.0% of the principal borrowing amounts. The warrants will represent a right for the lender to purchase shares of the Company’s common stock at an initial exercise price of $11.169 per share. The Company issued 53,720 warrants ("Term A Warrants") upon the drawdown of the Term A Loan in February 2018. There have been no exercises of Term A Warrants and as such all 53,720 warrants were outstanding as of June 30, 2018.

Because the warrants are a freestanding instrument, indexed to the Company's stock, they do not meet the criteria for equity classification. Therefore warrants are liability classified and subject to remeasurement at each reporting period until they are exercised, expired, or otherwise settled. The initial fair value of the warrant liability was recorded with a corresponding offset to deferred debt cost which is a reduction to the notional value of the debt.

The Company recognized a loss of $133,000 and $173,000 upon the change in fair value of the warrants during the three months ended June 30, 2018 related to the 2014 Warrants and the Term A Warrants, respectively. The Company recognized a loss of $178,000 and $210,000 upon the change in fair value of the warrants during the six months ended June 30, 2018 related to the 2014 Warrants and the Term A Warrants, respectively. The Company recognized a loss of $32,000 upon the change in fair value of the 2014 Warrants during the three months and six months ended June 30, 2017.

As of June 30, 2018, the following warrants were outstanding:



	Outstanding Shares	Exercise Price per Share	Expiration Date

2014 Warrants	19,931	$5.912	August 2020
Term A Warrants	53,720	$11.169	February 2025
	73,651

Note 4. Accrued Expenses (Notes)

6 Months Ended

Jun. 30, 2018

Accrued Expenses [Abstract]

Accrued Expenses

Accrued expenses consist of the following:



(in thousands)	June 30, 2018		December 31, 2017

Accrued research costs	$	2,500	$	566
Accrued employee costs	1,995		1,581
Accrued IPO costs	1,735		—
Accrued other costs	1,312		410
Accrued expenses	$	7,542	$	2,557

Note 5. Long-Term Debt

6 Months Ended

Jun. 30, 2018

Long-term Debt, Unclassified [Abstract]

Long-Term Debt

Long-term Debt

Senior Secured Loan Facility

In February 2018, the Company entered into the Loan and Security Agreement that provides a senior secured loan facility of up to an aggregate principal amount of $45.0 million. The first tranche was $20.0 million and was drawn down in February 2018 ("Term A Loan"). The second tranche is $15.0 million and is available to us through the 30th day following our submission of a New Drug Application (“NDA”) for our Glucagon Rescue Pen. The third tranche is $10.0 million and is available beginning upon approval of the Company’s Glucagon Rescue Pen NDA by the U.S. Food & Drug Administration (”FDA”) until the earlier of September 30, 2019 or the 30^th day following NDA approval by the FDA.

The interest rate under the Loan and Security Agreement is the thirty-day U.S. LIBOR rate plus 6.75%, which was approximately 8.75% as of June 30, 2018. Payments on the Loan and Security Agreement are interest only for the first 24 months, which can be extended by an additional twelve months if the third tranche is drawn. The total term of the loan is fifty-nine months, and the principal payments will begin in either 36 months or 24 months, contingent on the third tranche being drawn.

Pursuant to the Loan and Security Agreement, the Company provided a first priority security interest in all existing and future-acquired assets, excluding intellectual property and certain other assets, owned by the Company. The Loan and Security Agreement contains a negative pledge on intellectual property owned by the Company. The Company also issued warrants to the Lenders to purchase common stock, which is further discussed in Note 7, "Warrants," of the notes to unaudited condensed financial statements.

The Loan and Security Agreement allows the Company to voluntarily prepay the outstanding amounts thereunder, but not less than $2.0 million of the outstanding principal at any time. Prior to April 1, 2020, the Company is subject to a prepayment penalty equal to 1.50% of the principal amount being prepaid. In the event the Company draws on the third tranche, the period subject to 1.50% prepayment is extended to April 1, 2021. No prepayment fee exists for prepayments made after April 1, 2020, or April 1, 2021 in the event the third tranche is issued. A final payment fee of 6.5% multiplied by the original principal amount of each tranche drawn is due upon the earlier to occur of the maturity date of the Loan and Security Agreement, the acceleration of the Loan and Security Agreement or prepayment of such borrowings. The Loan and Security Agreement includes a non-utilization fee of 2.0% multiplied by the principal amount of tranche three payable to Lenders in October 2019, if the Company elects not to draw the third tranche.

The Loan and Security Agreement also contains customary indemnification obligations and customary events of default, including, among other things, failure to fulfill certain obligations under the Loan and Security Agreement and the occurrence of a material adverse change in the Company's business, operations or condition, a material impairment of the prospect of repayment of any portion of the loan, or a material impairment in the perfection or priority of the Lenders’ lien in the collateral or in the value of such collateral. In the event of default under the Loan and Security Agreement, the Company would be required to pay interest on principal and all other due and unpaid obligations at the current rate in effect plus 5%. All such interest would be payable on demand and in cash. Further, the Lenders would be entitled to exercise their remedies thereunder, including the right to accelerate the debt, upon which the Company may be required to repay all amounts then outstanding under the Loan and Security Agreement.

The Loan and Security Agreement includes certain restrictions on, among other things, the Company’s ability to incur additional indebtedness, change the name or location of the business, merge with or acquire other entities, pay dividends or make other distributions to holders of the Company’s capital stock, make certain investments, engage in transactions with affiliates, create liens, open new deposit accounts, sell assets or pay subordinated debt.

The components of debt are as follows:



(in thousands)	June 30, 2018			December 31, 2017

Term A Loan	$	20,000		$	—
Less unamortized deferred cost	(1,833		)	—
Long-term debt	$	18,167		$	—

The following table sets forth the Company’s future principal payments:



2018	$	—
2019	—
2020	4,680
2021	6,725
2022	7,315
2023	1,280
	$	20,000

The Company incurred debt issuance costs of $1.9 million, which are reflected as a direct reduction to the term loan balance and are being amortized into interest expense over the life of the loan using the effective interest method. For the three and six months ended June 30, 2018, the Company recognized interest expense of $562,000 and $753,000, respectively, of which $116,000 and $156,000, respectively, was related to the amortization of debt issuance costs.

Note 6. Convertible Preferred Stock	6 Months Ended
Note 6. Convertible Preferred Stock	Jun. 30, 2018
Convertible preferred stock [Abstract]
Convertible Preferred Stock	Convertible Preferred Stock In February 2018, the Company issued an additional 707,680 shares of Series C convertible preferred stock for net proceeds of $4.4 million. During the second quarter of 2018, a majority of the holders of the Company's convertible preferred stock elected to have their shares converted into common stock, therefore, all outstanding shares of preferred stock were converted into 11,837,073 shares of common stock at a conversion rate of 1:1.78112 upon the closing of the Company's IPO on June 25, 2018. Refer to Note 3, "Reverse Stock Split and Initial Public Offering," of the notes to unaudited condensed financial statements for additional information. Prior to the conversion of the convertible preferred stock into common stock, the holders of the Company’s convertible preferred stock were entitled to receive non-cumulative dividends at the rate of 8% of the purchase price per annum in preference to any dividends to the holders of the common stock, payable as and if when declared by the Board of Directors. No such dividends were declared by the Company’s Board of Directors. The holders of the convertible preferred stock also were entitled to participate pro rata in any dividends paid to the holders of the common stock on an as-converted basis. No dividends were declared by the Company’s Board of Directors.

Note 7. Warrants (Notes)

6 Months Ended

Jun. 30, 2018

Warrants [Abstract]

Warrants

Reverse Stock Split and Initial Public Offering

Upon closing the IPO, all outstanding shares of the Company's Series A, B and C convertible preferred stock were converted into 11,837,073 shares of common stock.

Warrants

As of June 30, 2018, the following warrants were outstanding:



	Outstanding Shares	Exercise Price per Share	Expiration Date

2014 Warrants	19,931	$5.912	August 2020
Term A Warrants	53,720	$11.169	February 2025
	73,651

Note 8. Commitments and Contingencies	6 Months Ended
Note 8. Commitments and Contingencies	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments The Company has non-cancellable operating leases for office space, which expire at various times through 2024. The non-cancellable office lease agreements provide for monthly lease payments, which increase during the term of each lease agreement. In the first quarter of 2018, the Company signed a new lease for office space in Chicago, Illinois with remaining future minimum lease payments of approximately $98,000 in 2018, $202,000 in 2019, $210,000 in 2020, $219,000 in 2021, $228,000 in 2022, $462,000 in 2023 and thereafter. Total rent expense under these operating leases was approximately $229,000 and $131,000 for the three months ended June 30, 2018 and 2017, respectively, and $420,000 and $171,000 for the six months ended June 30, 2018 and 2017, respectively.

Note 9. Stock Compensation Plan (Notes)

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Plan

In 2011 the Company adopted the 2011 Stock Option Issuance Plan (“2011 Plan”) and subsequently amended it to authorize the Board of Directors to issue up to 4,714,982 incentive grant and non-statutory awards. Options and restricted stock granted to employees under the 2011 Plan typically vest over a 48 months period. Options and restricted stock granted to non-employee directors vest over a 24 months period. All stock awards typically expire 10 years after they were issued.

The 2018 Stock Option and Incentive Plan ("2018 Plan") was adopted by our Board of Directors in April 2018 and approved by our stockholders in June 2018 to award up to 1,822,000 shares of our common stock. This plan became effective on the date immediately prior to the effectiveness of the Company's IPO registration statement. The 2018 Plan replaced the 2011 Plan as our Board of Directors determined not to make additional awards under the 2011 Plan following the closing of our IPO, which occurred in June 2018. The 2018 Plan allows the compensation committee to make equity-based and cash-based incentive awards to our officers, employees, directors and other key persons (including consultants). As of June 30, 2018, there were 1,822,000 awards available for future issuance.

Stock options are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. Stock option awards typically vest between two and four years after the grant date and expire ten years from the grant date.

The fair value of each option is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. The expected life of options represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods during the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. For fiscal 2018, the expected volatility is based on the historical volatility of certain peer companies over the most recent period corresponding to the expected life as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of the Company’s ordinary shares as of the grant date. The Company uses historical data to estimate option exercises and employee terminations within the valuation model.

The fair value of stock options granted was estimated with the following weighted average assumptions:



	Six Months Ended June 30,
	2018		2017
Expected term	6.00		6.07
Risk-free interest rate	2.77	%	2.05	%
Expected volatility	63.22	%	61.23	%
Expected dividends	—		—

Stock option activity for employee awards for the six months ended June 30, 2018 is as follows:



	UNITS	WEIGHTED AVERAGE EXERCISE PRICE		WEIGHTED AVERAGE CONTRACTUAL LIFE (YEARS)
Outstanding - January 1, 2018	1,946,230	$	1.66	8.70
Issued	868,620	9.18
Exercised	(121,869)	1.64
Forfeited	(169,403)	1.90
Outstanding - June 30, 2018	2,523,578	4.36		8.76
Exercisable - June 30, 2018	2,365,024	4.40		8.76
Vested and expected to vest at June 30, 2018	2,232,758	4.26		8.72

The weighted-average fair value of awards granted during the six months ended June 30, 2018 was $3.80 per share. The total intrinsic value of options exercised during the six months ended June 30, 2018 was $1.2 million. The aggregate intrinsic value of awards vested and expected to vest as of June 30, 2018 was $32.9 million.

The Company also granted stock options to non-employees. These awards are marked to fair value at the end of each reporting period until they vest. Stock option activity for these awards for the six months ended June 30, 2018 is as follows:



	UNITS	WEIGHTED AVERAGE EXERCISE PRICE		WEIGHTED AVERAGE CONTRACTUAL LIFE (YEARS)
Outstanding - January 1, 2018	33,125	$	1.91	6.75
Issued	—	—
Exercised	(17,699)	2.83
Forfeited	—	—
Outstanding - June 30, 2018	15,426	4.74		4.63
Exercisable - June 30, 2018	13,474	0.95		4.63
Vested and expected to vest at June 30, 2018	13,474	0.95		4.63

The aggregate intrinsic value of awards vested and expected to vest at June 30, 2018 was $243,000. The aggregate intrinsic value of awards exercisable as of June 30, 2018 was $227,000. The company recognized expense associated with these awards of $50,000 and $2,000 for the three months ended June 30, 2018 and 2017, respectively. The company recognized expense associated with these awards of $106,000 and $9,000 for the six months ended June 30, 2018 and 2017, respectively.

The following table summarizes the reporting of total stock-based compensation expense resulting from employee and non-employee stock options:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Research and development	$	161	$	15	$	282	$	30
General and administrative	200		74		323		217
Total stock-based compensation	$	361	$	89	$	605	$	247

At June 30, 2018, there was a total of $4.8 million of unrecognized compensation expense that is expected to be recognized over a weighted average period of 1.47 years.

Note 10. Fair Value Measurement

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair value is the price 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. Fair value measurements are classified and disclosed in one of the following categories:

Level 1: Measured using unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Measured using quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Measured based on prices or valuation models that required inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity).

Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below takes into account the market for its financial assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

The carrying amounts of cash and cash equivalents, grants receivable, and accounts payables approximate their fair values due to the short-term maturities of these instruments.

The fair value of the Company’s warrant liabilities at inception and for subsequent mark-to-market fair value measurements is based on management’s valuation model and expected methods and timing of settlement. These estimates are prepared using models that consider various inputs including: (a) the Company’s estimated future cash flows, (b) time value, (c) current market conditions, and (d) other relevant economic measures.

The Company has determined that the warrant liabilities fair values are Level 3 items within the fair value hierarchy. The following table presents the changes in the warrant liabilities:



(in thousands)
Balance at December 31, 2017	$	93
Fair value of Term A Warrants issued under the Loan and Security Agreement	326
Change in fair value of warrants	82
Balance at March 31, 2018	501
Change in fair value of warrants	306
Balance at June 30, 2018	$	807

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 2. Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	As of June 30,
	2018	2017
Convertible preferred stock	—	10,954,012
Warrants	73,651	19,931
Stock awards and unvested stock awards	2,541,262	1,957,432

Note 4. Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2018

Accrued Expenses [Abstract]

Accrued Expenses

Accrued expenses consist of the following:



(in thousands)	June 30, 2018		December 31, 2017

Accrued research costs	$	2,500	$	566
Accrued employee costs	1,995		1,581
Accrued IPO costs	1,735		—
Accrued other costs	1,312		410
Accrued expenses	$	7,542	$	2,557

Note 5. Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2018

Long-term Debt, Unclassified [Abstract]

Schedule of Long-term Debt Instruments

The components of debt are as follows:



(in thousands)	June 30, 2018			December 31, 2017

Term A Loan	$	20,000		$	—
Less unamortized deferred cost	(1,833		)	—
Long-term debt	$	18,167		$	—

Schedule of Maturities of Long-term Debt

The following table sets forth the Company’s future principal payments:



2018	$	—
2019	—
2020	4,680
2021	6,725
2022	7,315
2023	1,280
	$	20,000

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Note 7. Warrants (Tables)

6 Months Ended

Jun. 30, 2018

Warrants [Abstract]

Schedule of Stockholders' Equity Note, Warrants or Rights

As of June 30, 2018, the following warrants were outstanding:



	Outstanding Shares	Exercise Price per Share	Expiration Date

2014 Warrants	19,931	$5.912	August 2020
Term A Warrants	53,720	$11.169	February 2025
	73,651

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Note 9. Stock Compensation Plan (Tables)

6 Months Ended

Jun. 30, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based Compensation Assumptions Used in Black-Scholes Option Valuation Model

The fair value of stock options granted was estimated with the following weighted average assumptions:



	Six Months Ended June 30,
	2018		2017
Expected term	6.00		6.07
Risk-free interest rate	2.77	%	2.05	%
Expected volatility	63.22	%	61.23	%
Expected dividends	—		—

Employee Stock Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation, Activity

Stock option activity for employee awards for the six months ended June 30, 2018 is as follows:



	UNITS	WEIGHTED AVERAGE EXERCISE PRICE		WEIGHTED AVERAGE CONTRACTUAL LIFE (YEARS)
Outstanding - January 1, 2018	1,946,230	$	1.66	8.70
Issued	868,620	9.18
Exercised	(121,869)	1.64
Forfeited	(169,403)	1.90
Outstanding - June 30, 2018	2,523,578	4.36		8.76
Exercisable - June 30, 2018	2,365,024	4.40		8.76
Vested and expected to vest at June 30, 2018	2,232,758	4.26		8.72



	UNITS	WEIGHTED AVERAGE EXERCISE PRICE		WEIGHTED AVERAGE CONTRACTUAL LIFE (YEARS)
Outstanding - January 1, 2018	33,125	$	1.91	6.75
Issued	—	—
Exercised	(17,699)	2.83
Forfeited	—	—
Outstanding - June 30, 2018	15,426	4.74		4.63
Exercisable - June 30, 2018	13,474	0.95		4.63
Vested and expected to vest at June 30, 2018	13,474	0.95		4.63

Note 9. Stock Compensation Plan Stock-Based Compensation Expense (Tables)

6 Months Ended

Jun. 30, 2018

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

The following table summarizes the reporting of total stock-based compensation expense resulting from employee and non-employee stock options:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017
Research and development	$	161	$	15	$	282	$	30
General and administrative	200		74		323		217
Total stock-based compensation	$	361	$	89	$	605	$	247

Note 10. Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The Company has determined that the warrant liabilities fair values are Level 3 items within the fair value hierarchy. The following table presents the changes in the warrant liabilities:



(in thousands)
Balance at December 31, 2017	$	93
Fair value of Term A Warrants issued under the Loan and Security Agreement	326
Change in fair value of warrants	82
Balance at March 31, 2018	501
Change in fair value of warrants	306
Balance at June 30, 2018	$	807

Note 1. Organization and Nature of the Business Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Retained Earnings (Accumulated Deficit)	$ (85,478)	$ (60,585)
Additional expected proceeds from second tranche of the Loan and Security Agreement	$ 15,000

Note 2. Summary of Significant Accounting Policies Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	Jun. 30, 2018	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Convertible preferred stock	0	10,954,012
Warrants outstanding	73,651	19,931
Stock awards and unvested stock awards	2,541,262	1,957,432

Note 2. Summary of Significant Accounting Policies Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2018
Accounting Policies [Abstract]
Capitalized costs, initial public offering costs		$ 9,300,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%
Re-measurement of tax	$ 7,478,000

Note 3. Reverse Stock Split and Initial Public Offering Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 25, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares
Reverse Stock Split and Initial Public Offering [Abstract]
Reverse Stock Split, Conversion Ratio	1.78112
Common Shares, Par Value Per Share \| $ / shares	$ 0.0001		$ 0.0001
Common Shares, Shares, Issued	20,688,457	6,555,000	2,159,068
Shares Issued, Price Per Share \| $ / shares		$ 15.00
Common shares issued, due to exercise of underwriter option		855,000
Net Proceeds from Issuance Initial Public Offering \| $	$ 89.0
Shares of common stock issued, after preferred stock conversion	11,837,073

Note 4. Accrued Expenses Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accrued Expenses [Abstract]
Accrued research costs	$ 2,500	$ 566
Accrued employee costs	1,995	1,581
Accrued IPO costs	1,735	0
Accrued other costs	1,312	410
Accrued expenses	$ 7,542	$ 2,557

Note 5. Long-Term Debt Debt, Future Principal Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Future principal payments, 2018	$ 0
Future principal payments, 2019	0
Future principal payments, 2020	4,680
Future principal payments, 2021	6,725
Future principal payments, 2022	7,315
Future principal payments, 2023	1,280
Long-term Debt	$ 20,000	$ 0

Note 5. Long-Term Debt Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
Note 5. Long-Term Debt Narrative (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 45,000,000		$ 45,000,000
Debt Instrument, Face Amount	20,000,000		20,000,000		$ 0
Additional expected proceeds from second tranche of the Loan and Security Agreement	15,000,000		15,000,000
Additional expected proceeds from third tranche of the Loan and Security Agreement	$ 10,000,000		$ 10,000,000
Interest rate, thirty-day LIBOR plus stated percentage	6.75%		6.75%
Debt Instrument, Interest Rate, Stated Percentage	8.75%		8.75%
Period debt payments are interest only			24 months
Debt Instrument, Term			59 months
Prepayment allowed per debt agreement	$ 2,000,000		$ 2,000,000
Prepayment penalty percentage			1.50%
Final payment fee percentage	6.50%		6.50%
Debt, non-utilization fee percentage	2.00%		2.00%
In event of default, additional percentage plus current rate penalty	5.00%		5.00%
Debt Issuance Costs, Gross	$ 1,900,000		$ 1,900,000
Interest expense	562,000	$ 1,000	753,000	$ 1,000
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	(1,833,000)		(1,833,000)		0
Long-term Debt	18,167,000		18,167,000		$ 0
Amortization of debt issuance costs	$ 116,000		$ 156,000	$ 0
Maximum [Member]
Debt Instrument [Line Items]
Principal payments on debt to begin			36 months
Minimum [Member]
Debt Instrument [Line Items]
Principal payments on debt to begin			24 months

Note 6. Convertible Preferred Stock Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 shares	Mar. 31, 2018 USD ($) shares	Jun. 30, 2018 shares	Dec. 31, 2017 shares
Equity [Abstract]
Preferred Stock, Shares Issued	0	707,680	0	0
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants \| $		$ 4.4
Shares of common stock issued, after preferred stock conversion	11,837,073
Reverse Stock Split, Conversion Ratio	1.78112
Preferred Stock, Dividend Rate, Percentage			8.00%

Note 7. Warrants Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - $ / shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Class of Warrant or Right [Line Items]
Warrants outstanding	73,651	19,931
2014 Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants outstanding	19,931
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5.912
Investment Warrants Expiration Date	Aug. 31, 2020
Term A Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants outstanding	53,720
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 11.169
Investment Warrants Expiration Date	Feb. 28, 2025

Note 7. Warrants Narrative (Details) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
Note 7. Warrants Narrative (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2014
Class of Warrant or Right [Line Items]
Warrants issued		$ 326,000
Warrants outstanding	73,651		19,931	73,651	19,931
Change in fair value of warrants	$ 306,000	82,000	$ 32,000	$ 388,000	$ 32,000
2014 Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants issued						$ 19,931
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5.912			$ 5.912
Warrants outstanding	19,931			19,931
Change in fair value of warrants	$ (133,000)		$ (32,000)	$ (178,000)	$ (32,000)
Term A Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants issued		$ 53,720
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 11.169			$ 11.169
Warrants outstanding	53,720			53,720
Warrant coverage, equal to percent of principal borrowing amounts	3.00%			3.00%
Change in fair value of warrants	$ (173,000)			$ (210,000)

Note 8. Commitments and Contingencies Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Remaining future minimum lease payments, 2018	$ 98,000		$ 98,000
Remaining future minimum lease payments, 2019	202,000		202,000
Remaining future minimum lease payments, 2020	210,000		210,000
Remaining future minimum lease payments, 2021	219,000		219,000
Remaining future minimum lease payments, 2022	228,000		228,000
Remaining future minimum lease payments, 2023 and thereafter	462,000		462,000
Rent Expense, operating leases	$ 229,000	$ 131,000	$ 420,000	$ 171,000

Note 9. Stock Compensation Plan Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used (Details)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Abstract]
Expected term	6 years	6 years 25 days
Risk-free interest rate	2.77%	2.05%
Expected volatility	63.22%	61.23%
Expected dividends	0.00%	0.00%

Note 9. Stock Compensation Plan Employee Stock Award Activity (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	2,541,262	1,957,432	2,541,262	1,957,432
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	2,523,578		2,523,578		1,946,230
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 4.36		$ 4.36		$ 1.66
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			8 years 278 days		8 years 255 days
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			868,620
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 9.18
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			(121,869)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price			$ 1.64
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares			(169,403)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price			$ 1.90
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	2,365,024		2,365,024
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 4.40		$ 4.40
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term			8 years 278 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	2,232,758		2,232,758
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 4.26		$ 4.26
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term			8 years 262 days
Non--employee stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 227,000		$ 227,000
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$ 50,000	$ 2,000	$ 106,000	$ 9,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	15,426		15,426		33,125
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 4.74		$ 4.74		$ 1.91
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			4 years 230 days		6 years 274 days
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			(17,699)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price			$ 2.83
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares			0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price			$ 0.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	13,474		13,474
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0.95		$ 0.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term			4 years 230 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	13,474		13,474
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 0.95		$ 0.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term			4 years 230 days

Note 9. Stock Compensation Plan Narrative (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 4.8
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 172 days
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	48 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value \| $ / shares	$ 3.80
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 1.2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$ 32.9
Non--employee stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	24 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$ 0.2
2011 Stock Option Issuance Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant \| shares	4,714,982
2018 Stock Option and Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant \| shares	1,822,000

Note 9. Stock Compensation Plan Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 361	$ 89	$ 605	$ 247
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	161	15	282	30
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 200	$ 74	$ 323	$ 217

Note 10. Fair Value Measurement Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Warrants liabilities	$ 807	$ 501		$ 807		$ 93
Fair value of Term A Warrants issued under the Loan and Security Agreement		326
Change in fair value of warrants	$ 306	$ 82	$ 32	$ 388	$ 32