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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2018	Apr. 30, 2018
Document and Entity Information
Entity Registrant Name	CATABASIS PHARMACEUTICALS INC
Entity Central Index Key	0001454789
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		29,035,502
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 17,030	$ 16,369
Prepaid expenses and other current assets	889	1,094
Total current assets	17,919	17,463
Property and equipment, net	258	321
Restricted cash	113	113
Total assets	18,290	17,897
Current liabilities:
Accounts payable	1,115	773
Accrued expenses	2,164	2,432
Current portion of notes payable, net of discount	1,657	2,479
Other liability	341	332
Total current liabilities	5,277	6,016
Deferred rent, net of current portion	82	89
Total liabilities	5,359	6,105
Commitments (Note 7)
Stockholders' equity:
Preferred stock, $0.001 par value per share, 5,000,000 shares authorized and no shares issued and outstanding
Common stock, $0.001 par value per share, 150,000,000 shares authorized; 29,035,502 and 23,645,247 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively	29	24
Additional paid-in capital	191,988	183,202
Accumulated deficit	(179,086)	(171,434)
Total stockholders' equity	12,931	11,792
Total liabilities and stockholders' equity	$ 18,290	$ 17,897

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in Shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	29,035,502	23,645,247
Common stock, outstanding (in shares)	29,035,502	23,645,247

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating expenses:
Research and development	$ 5,247	$ 5,398
General and administrative	2,392	2,363
Total operating expenses	7,639	7,761
Loss from operations	(7,639)	(7,761)
Other (expense) income:
Interest expense	(57)	(149)
Interest and investment income	32	39
Other income (expense), net	12	(5)
Total other expense, net	(13)	(115)
Net loss	$ (7,652)	$ (7,876)
Net loss per share - basic and diluted (in dollars per share)	$ (0.29)	$ (0.41)
Weighted-average common shares outstanding used in net loss per share - basic and diluted (in shares)	26,555,840	19,093,273

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net loss	$ (7,652)	$ (7,876)
Reconciliation of net loss to net cash used in operating activities:
Depreciation and amortization	62	88
Stock-based compensation expense	479	505
Accretion of discount/premium on investment securities		25
Non-cash interest expense	20	50
Changes in assets and liabilities:
Prepaid expenses and other current assets	205	(19)
Accounts payable	342	(468)
Accrued expenses	(277)	(454)
Deferred rent	2	44
Net cash used in operating activities	(6,819)	(8,105)
Investing activities
Sales and maturities of available-for-sale securities		14,910
Purchases of property and equipment		(9)
Net cash provided by investing activities		14,901
Financing activities
Proceeds from at-the-market offering, net of issuance costs	8,313	2,215
Proceeds from exercise of common stock options and warrants		21
Payments on borrowing	(833)	(833)
Net cash provided by financing activities	7,480	1,403
Net increase in cash, cash equivalents and restricted cash	661	8,199
Cash, cash equivalents and restricted cash, beginning of period	16,482	23,709
Cash, cash equivalents and restricted cash, end of period	17,143	31,908
Supplemental disclosure of cash flow information
Cash paid for interest	$ 42	104
Non-cash financing activities
Fixed asset purchases included in accounts payable		$ 5

Organization and Operations	3 Months Ended
Organization and Operations	Mar. 31, 2018
Organization and Operations
Organization and Operations	1.Organization and Operations The Company Catabasis Pharmaceuticals, Inc. (the “Company”) is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics based on the Company’s proprietary Safely Metabolized And Rationally Targeted, or SMART, linker drug discovery platform. The Company’s SMART LinkerSM technology platform enables the Company to engineer product candidates that can simultaneously modulate multiple targets in a disease. The Company’s proprietary product candidates impact pathways that are central to diseases where efficacy may be optimized by a multiple target approach. The Company’s primary focus is on treatments for rare diseases. The Company has applied its SMART Linker drug discovery platform to build an internal pipeline of product candidates for rare diseases and plans to pursue partnerships to develop additional product candidates. The Company was incorporated in the State of Delaware on June 26, 2008. Liquidity In October 2017, the Company entered into a sales agreement with Cowen and Company LLC (“Cowen”) pursuant to which the Company could issue and sell shares of common stock for an aggregate maximum offering amount of $10.0 million under an at-the-market offering program (the “ATM Program”). Shares sold pursuant to the sales agreement were sold pursuant to a shelf registration statement, which became effective on July 19, 2016. The Company paid Cowen 3% of the gross proceeds from any common stock sold through these sales agreements. During the three months ended March 31, 2018, the Company sold an aggregate of 5,390,255 shares of common stock pursuant to the ATM Program, at an average price of $1.59 per share, for gross proceeds of $8.6 million, resulting in net proceeds of $8.3 million after deducting sales commissions and offering expenses. As of March 31, 2018, the ATM Program has been fully utilized. As of March 31, 2018, the Company had an accumulated deficit of $179.1 million. The Company has been primarily involved with research and development activities and has incurred operating losses and negative cash flows from operations since its inception. The Company is subject to a number of risks including, but not limited to, the need to obtain adequate additional funding, including the resources necessary to fund a global Phase 3 clinical trial of edasalonexent in DMD. The Company is currently exploring various avenues to secure capital to advance edasalonexent into a Phase 3 clinical trial, and its Phase 3 development activities will be dependent on securing adequate capital resources. The Company is also subject to a number of risks similar to other life science companies, including, but not limited to, successful discovery and development of its drug candidates, raising additional capital, development by its competitors of new technological innovations, protection of proprietary technology and regulatory approval and market acceptance of the Company’s products. The Company anticipates that it will continue to incur significant operating losses for the next several years as it continues to develop its product candidates. As of March 31, 2018, the Company had available cash and cash equivalents of $17.0 million. Based on the Company’s current operating plan, the Company believes it has sufficient cash to fund operations through December 2018. Based on the Company’s available cash resources, the Company does not have sufficient cash on hand to support current operations for at least the next twelve months from the date of filing this Report on Form 10-Q. This condition results in the assessment that there is substantial doubt about the Company’s ability to continue as a going concern. The Company’s plans to address this condition include seeking additional funds through equity or debt financings or through collaboration or licensing transactions. The Company may be unable to obtain equity or debt financings or enter into collaboration or licensing transactions and, if necessary, the Company will be required to implement cost reduction strategies, including ceasing or delaying development of the Company’s product candidates. Accordingly, the Company has concluded that substantial doubt exists regarding the Company’s ability to continue as a going concern for a period of at least twelve months from the date of issuance of these consolidated financial statements. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. The Company will require substantial additional capital to fund operations. The Company has not generated any product revenues and has financed its operations primarily through public offerings and private placements of its equity securities. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate product revenue or revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations, and financial condition.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2.Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying financial statements and the related disclosures are unaudited and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Additionally, certain information and footnote disclosures normally included in the Company’s annual financial statements have been condensed or omitted from this report. Accordingly, these condensed financial statements should be read in conjunction with the financial statements as of and for the year ended December 31, 2017 and notes thereto, included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission on March 15, 2018 (the “2017 Annual Report on Form 10-K”).

Apart from the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash (“ASU 2016-18”) as described below, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company’s management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary to fairly present the Company’s financial position as of March 31, 2018, the results of its operations for the three months ended March 31, 2018 and 2017 and its cash flows for the three months ended March 31, 2018 and 2017. Such adjustments are of a normal and recurring nature. The results for the three months ended March 31, 2018 are not necessarily indicative of the results for the year ending December 31, 2018, or for any future period.

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Catabasis Securities Corporation. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from such estimates.

The Company utilizes certain estimates to record expenses relating to research and development contracts. These contract estimates, which are primarily related to the length of service of each contract and the amount of service provided as of each measurement date, are determined by the Company based on input from internal project management, as well as from third-party service providers.

Stock-Based Compensation

The Company accounts for its stock-based compensation awards in accordance with ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statements of operations based on their grant date fair values. For stock options granted to employees and to members of the board of directors for their services on the board of directors, the Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the Common Stock consistent with the expected term of the option, risk-free interest rates and expected dividend yields of the Common Stock.

For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense equal to the grant date fair value of stock options on a straight-line basis over the requisite service period.

The Company expenses restricted stock awards based on the fair value of the award on a straight-line basis over the associated service period of the award.

Share-based payments issued to non-employees are recorded at their fair values, and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC Topic 505, Equity. For equity instruments granted to non-employees, the Company recognizes stock-based compensation expense on a straight-line basis.

During the three months ended March 31, 2018 and 2017, the Company recorded stock-based compensation expense for employee and non-employee stock options, which was allocated as follows in the condensed consolidated statements of operations (in thousands):

	Three Months Ended March 31,
	2018		2017
Research and development	$	173	$	200
General and administrative	306		305

Total	$	479	$	505

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss by the weighted average shares outstanding during the period, without consideration for Common Stock equivalents. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of Common Stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the Company’s dilutive net loss per share calculation, stock options and warrants to purchase Common Stock were considered to be Common Stock equivalents but were excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive; therefore, basic and diluted net loss per share were the same for all periods presented.

The following Common Stock equivalents were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:

	Three Months Ended March 31,
	2018	2017
Stock options	3,775,626	2,903,497
Common stock warrants	24,566	24,566

	3,800,192	2,928,063

Cash, Cash Equivalents and Restricted Cash

The reconciliation of cash, cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amount shown in the statement of cash flows is as follows:

	March 31,
	2018		2017
Cash and cash equivalents	$	17,030	$	31,795
Restricted cash	113		113

Total	$	17,143	$	31,908

Recent Accounting Pronouncements- Adopted

In October 2016, the Finaincial Accounting Standards Board, (“FASB”) issued ASU 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and restricted cash or restricted cash equivalents. Therefore, amounts described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted ASU 2016-18 in the period beginning January 1, 2018. Upon adoption of ASU 2016-18 the Company revised the presentation as well as caption of certain items within the unaudited condensed consolidated statements of cash flows to conform to the current period presentation. These revisions had no impact on the net cash used in operating activities or cash, cash equivalents and restricted cash at end of period.

In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, (“ASU 2017-09”). This standard provides clarity on whether the change in existing terms and conditions of a share-based award require application of the guidance in ASC Topic 718, Compensation- Stock Compensation. The Company early adopted the standard in the period ending June 30, 2017. As of March 31, 2018, there was no material impact on the Company’s consolidated financial statements, and any future impact from adoption will be dependent on future transactions involving modifications of share-based awards.

Recent Accounting Pronouncements- Not Yet Adopted

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

In February 2016, the FASB issued ASU 2016-02, Leases, (“ASU 2016-02”). This standard amends the existing guidance to require lessees to present most leases on their balance sheets but recognize corresponding expenses on their statements of operations. It is effective for annual reporting periods beginning after December 15, 2018, but early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, (“ASU 2018-02”). This standard amends the existing guidance related to adjustment of deferred liabilities and assets for the effects of changes in tax laws or rates. This amendment is effective for annual reporting periods beginning after December 15, 2018, but early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-03, Recognition and Measurement of Financial Assets and Financial Liabilities, (“ASU 2018-03”). This standard made improvements to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This amendment is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods beginning after June 15, 2018. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” in the 2017 Annual Report on Form 10-K, and there were no significant changes to such policies in the three months ended March 31, 2018 that had a material impact on the Company’s results of operations or financial position.

Financial Instruments

3 Months Ended

Mar. 31, 2018

Financial Instruments

Financial Instruments

3.Financial Instruments

The tables below present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 and indicate the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize observable inputs such as quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are either directly or indirectly observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs utilize unobservable data points in which there is little or no market data, which require the Company to develop its own assumptions for the asset or liability. There were no transfers between fair value measurement levels during the three months ended March 31, 2018 or 2017.

The Company’s investment portfolio may include fixed income securities that do not always trade on a daily basis. As a result, the pricing services used by the Company apply other available information as applicable through processes such as benchmark yields, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. The Company validates the prices provided by its third party pricing services by obtaining market values from other pricing sources and analyzing pricing data in certain instances. The Company also invests in certain reverse repurchase agreements which are collateralized by deposits in the form of U.S. Government Securities and Obligations for an amount no less than 102% of their value. The Company does not record an asset or liability for the collateral as the Company is not permitted to sell or re-pledge the collateral. The collateral has at least the prevailing credit rating of U.S. Government Treasuries and Agencies. The Company utilizes a third party custodian to manage the exchange of funds and ensure that collateral received is maintained at 102% of the value of the reverse repurchase agreements on a daily basis.

Below is a summary of assets measured at fair value on a recurring basis (in thousands):

	As of March 31, 2018
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

Assets:
Cash and cash equivalents:
Money market funds	$	5,623	$	—	$	—	$	5,623
U.S. reverse repurchase agreements	—		8,000		—		8,000

Total assets	$	5,623	$	8,000	$	—	$	13,623

	As of December 31, 2017
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

Assets:
Cash and cash equivalents:
Money market funds	$	13,588	$	—	$	—	$	13,588

Total assets	$	13,588	$	—	$	—	$	13,588

At March 31, 2018 the Company’s cash equivalents consisted of money market funds and U.S. reverse repurchase agreements. At December 31, 2017, the Company’s cash equivalents consisted of money market funds. At March 31, 2018, and December 31, 2017, cash equivalents approximated their fair value due to their short-term nature.

At March 31, 2018 and December 31, 2017, the carrying value of the Company’s debt approximated fair value, which was determined using Level 3 inputs, including a quoted interest rate.

- 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

Notes Payable

3 Months Ended

Mar. 31, 2018

Notes Payable

Notes Payable

6.Notes Payable

On August 27, 2014, the Company entered into a credit facility with MidCap Financial Trust, Flexpoint MCLS SPV LLC and Square 1 Bank, which was subsequently amended in March and December 2015 (as amended, the “Credit Facility”). The Credit Facility provided for maximum borrowings of $25.0 million. The Company received total proceeds of $10.0 million under term loans and the remaining amounts available for borrowing under this arrangement expired unused as of July 31, 2015. All amounts outstanding under the Credit Facility are due on October 1, 2018 and are collateralized by substantially all of the Company’s personal property, other than its intellectual property.

Amounts due under the Credit Facility bear interest at an annual rate of 7.49%. In addition, a final payment equal to 3.48% of any amounts drawn under the Credit Facility is due upon the earlier of the maturity date, acceleration of the term loans or prepayment of all or part of the term loans. The final payment is being accrued as additional interest expense using the effective-interest method from the date of issuance through the maturity date, and is recorded within other current liabilities. In the event of prepayment, the Company is obligated to pay 1% to 3% of the amount of the outstanding principal depending upon the timing of the prepayment. As of March 31, 2018, the Company would be obligated to pay 1% of the amount of the outstanding principal in the event of a prepayment. The effective interest rate as of March 31, 2018 was 11.2%.

In conjunction with the term loans, the Company issued warrants to purchase 315,688 shares of series B convertible preferred stock. Upon the closing of the Company’s initial public offering (the “IPO”) in June 2015, the warrants were automatically converted into warrants to purchase an aggregate of 24,566 shares of Common Stock at an exercise price of $12.21 per share.

There are no financial covenants associated with the Credit Facility; however, there are negative covenants restricting the Company’s activities, including limitations on asset dispositions, mergers or acquisitions; encumbering or granting a security interest in its intellectual property; incurring indebtedness or liens; paying dividends; making certain investments; and entering into certain other business transactions.

Upon the occurrence and continuation of an event of default, the lenders have the right to exercise certain remedies against the Company and the collateral securing the loans under the Credit Facility, including cash. Events of default include, among other things, failure to pay amounts due under the Credit Facility, insolvency, the occurrence of a material adverse event, which includes a material adverse change in the business, operations or conditions (financial or otherwise) of the Company or a material impairment of the prospect of repayment of any portion of the obligations, the occurrence of any default under certain other indebtedness and a final judgment against the Company in an amount greater than $250,000. The occurrence of a material adverse event could result in acceleration of the payment of the debt. At March 31, 2018 and December 31, 2017, the maturity date of the debt was within twelve months and therefore all debt was classified as current. Following the occurrence and during the continuance of an event of default, borrowings under the Credit Facility shall bear interest at a rate per annum, which is five hundred basis points, or 5.00%, above the rate that is otherwise applicable.

The Company assessed all terms and features of the Credit Facility in order to identify any potential embedded features that would require bifurcation or any beneficial conversion features. As part of this analysis, the Company assessed the economic characteristics and risks of the Credit Facility, including put and call features. The Company determined that all features of the Credit Facility were clearly and closely associated with a debt host and did not require bifurcation as a derivative liability, or the fair value of the feature was immaterial to the Company’s financial statements. The Company reassesses the features on a quarterly basis to determine if they require separate accounting.

Estimated future principal payments at March 31, 2018 are as follows (in thousands):

Year Ending December 31,	Amount
2018	1,667

Total	$	1,667
Less: discount for warrants and costs paid to lenders	(10		)
Less: current portion	(1,657		)

Note payable, net of current portion and discount	$	—

The Company recognized $0.1 million of interest expense related to the Credit Facility in the three month periods ending March 31, 2018 and 2017, respectively.

Stock Incentive Plans

3 Months Ended

Mar. 31, 2018

Stock Incentive Plans

Stock Incentive Plans

10.Stock Incentive Plans

Prior to the IPO, the Company granted awards to eligible participants under its 2008 Equity Incentive Plan (“2008 Plan”). In May 2015, the Company’s board of directors adopted and, in June 2015, the Company’s stockholders approved the 2015 Stock Incentive Plan (“2015 Plan”), which became effective immediately prior to the effectiveness of the IPO. Subsequent to the IPO, option grants are awarded to eligible participants only under the 2015 Plan.

As of March 31, 2018, the Company had reserved 832,092 shares of Common Stock under the 2008 Plan, of which none remained available for future issuance. As of March 31, 2018, the Company had reserved 3,783,509 shares of Common Stock under the 2015 Plan, of which 839,975 shares remained available for future issuance. Under the 2015 Plan, stock options may not be granted with exercise prices at less than fair value on the date of the grant.

Terms of stock option agreements, including vesting requirements, are determined by the Company’s board of directors, subject to the provisions of the applicable stock incentive plan. Options granted by the Company generally vest ratably over four years, with a one-year cliff, and options are exercisable from the date of grant for a period of ten years. For options granted through March 31, 2018 the exercise price or purchase price, as applicable, equaled the estimated fair value of the Common Stock as determined by the Company’s board of directors on the date of grant.

A summary of the Company’s stock option activity and related information for employees and nonemployees follows:

	Shares	Weighted- Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2017	2,845,626	$	4.53	7.75	$	216
Granted	930,000	$	1.28
Exercised	—	$	—
Cancelled or forfeited	—	$	—

Outstanding at March 31, 2018	3,775,626	$	3.73	8.08	$	1,001

Vested and Exercisable at March 31, 2018	1,573,375	$	5.30	6.72	$	140

The total intrinsic value of options exercised for the three months ended March 31, 2017 was $27 thousand. There were no options exercised in the three months ended March 31, 2018. The total fair value of employee and non-employee options vested was $0.6 million for each of the three months ended March 31, 2018 and 2017, respectively. The weighted-average grant date fair value of options granted to employees and non-employees for the three months ended March 31, 2018 and 2017 was $0.88 and $0.84, respectively.

At March 31, 2018, the total unrecognized compensation expense related to unvested stock option awards was $3.6 million. The Company expects to recognize that cost over a weighted-average period of approximately 2.1 years.

Summary of Significant Accounting Polices (Polices)

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

Use of Estimates

Stock-Based Compensation

The Company expenses restricted stock awards based on the fair value of the award on a straight-line basis over the associated service period of the award.

	Three Months Ended March 31,
	2018		2017
Research and development	$	173	$	200
General and administrative	306		305

Total	$	479	$	505

Net Loss Per Share

The following Common Stock equivalents were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:

	Three Months Ended March 31,
	2018	2017
Stock options	3,775,626	2,903,497
Common stock warrants	24,566	24,566

	3,800,192	2,928,063

Cash, Cash Equivalents and Restricted Cash

	March 31,
	2018		2017
Cash and cash equivalents	$	17,030	$	31,795
Restricted cash	113		113

Total	$	17,143	$	31,908

Recent Accounting Pronouncements

Recent Accounting Pronouncements- Adopted

Recent Accounting Pronouncements- Not Yet Adopted

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Schedule of stock-based compensation expense

	Three Months Ended March 31,
	2018		2017
Research and development	$	173	$	200
General and administrative	306		305

Total	$	479	$	505

Schedule of anti-dilutive common stock equivalents excluded from calculation of diluted net loss per share

	Three Months Ended March 31,
	2018	2017
Stock options	3,775,626	2,903,497
Common stock warrants	24,566	24,566

	3,800,192	2,928,063

Schedule of reconciliation of cash, cash equivalents and restricted cash

	March 31,
	2018		2017
Cash and cash equivalents	$	17,030	$	31,795
Restricted cash	113		113

Total	$	17,143	$	31,908

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Financial Instruments

Summary of assets measured at fair value on a recurring basis

Below is a summary of assets measured at fair value on a recurring basis (in thousands):

	As of March 31, 2018
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

Assets:
Cash and cash equivalents:
Money market funds	$	5,623	$	—	$	—	$	5,623
U.S. reverse repurchase agreements	—		8,000		—		8,000

Total assets	$	5,623	$	8,000	$	—	$	13,623

	As of December 31, 2017
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

Assets:
Cash and cash equivalents:
Money market funds	$	13,588	$	—	$	—	$	13,588

Total assets	$	13,588	$	—	$	—	$	13,588

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Stock Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2018

Stock Incentive Plans

Summary of stock option activity

	Shares	Weighted- Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2017	2,845,626	$	4.53	7.75	$	216
Granted	930,000	$	1.28
Exercised	—	$	—
Cancelled or forfeited	—	$	—

Outstanding at March 31, 2018	3,775,626	$	3.73	8.08	$	1,001

Vested and Exercisable at March 31, 2018	1,573,375	$	5.30	6.72	$	140

Organization and Operations - Liquidity and Going Concern (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Common Stock
Accumulated deficit		$ (179,086)	$ (171,434)
Cash and cash equivalents		$ 17,030	$ 16,369	$ 31,795
Common Stock \| Cowen
Common Stock
Percentage of commission paid to underwriter based on proceeds from common stock	0.03%
Common Stock \| First ATM Program \| Cowen
Common Stock
Aggregate maximum offering amount	$ 10,000
Common Stock \| Second ATM Program
Common Stock
Number of shares issued		5,390,255
Share price (in dollars per share)		$ 1.59
Additional common stock issued		$ 8,600
Net proceeds		$ 8,300

Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 17,030	$ 16,369	$ 31,795
Restricted cash	113	113	113
Total	$ 17,143	$ 16,482	$ 31,908	$ 23,709

Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Financial Instruments
Transfers between fair value measurement levels	$ 0		$ 0
Cash and cash equivalents:
Cash and cash equivalents	$ 17,030	$ 16,369	$ 31,795
Government Securities and Obligations \| Reverse Repurchase Agreement \| Minimum
Financial Instruments
Percentage of investment amount to collateralized deposits value	102.00%
Recurring
Assets:
Total assets	$ 13,623	13,588
Recurring \| Money market funds
Cash and cash equivalents:
Cash and cash equivalents	5,623	13,588
Recurring \| U.S. reverse repurchase agreements
Cash and cash equivalents:
Cash and cash equivalents	8,000
Recurring \| Level 1
Assets:
Total assets	5,623	13,588
Recurring \| Level 1 \| Money market funds
Cash and cash equivalents:
Cash and cash equivalents	5,623	$ 13,588
Recurring \| Level 2
Assets:
Total assets	8,000
Recurring \| Level 2 \| U.S. reverse repurchase agreements
Cash and cash equivalents:
Cash and cash equivalents	$ 8,000

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accrued Expenses
Accrued compensation	$ 512	$ 632
Accrued contracted research costs	1,212	1,357
Accrued professional fees	241	298
Accrued other	199	145
Total	$ 2,164	$ 2,432

Notes Payable - (Details) - USD ($)		3 Months Ended
Notes Payable - (Details) - USD ($)	Aug. 27, 2014	Mar. 31, 2018	Jun. 30, 2015
Line of Credit Facility
Maximum borrowing capacity	$ 25,000,000
Total proceeds from issuance of promissory notes	$ 10,000,000
Debt Instruments
Number of shares after conversion of issued warrants (in shares)		315,688
Credit Facility
Line of Credit Facility
Interest rate (as a percent)		7.49%
Percentage of amount outstanding due as a payment (as a percent)		3.48%
Effective interest rate (as a percent)		11.20%
Debt Instruments
Financial covenants		0
Final judgment amount that would trigger lender rights for remedy		$ 250,000
Basis spread		5.00%
Interest rate increase in the event of a default (as a percent)		5.00%
Minimum \| Credit Facility
Line of Credit Facility
Percentage of amount outstanding due as a payment (as a percent)		1.00%
Maximum \| Credit Facility
Line of Credit Facility
Percentage of amount outstanding due as a payment (as a percent)		3.00%
Common stock warrants \| Initial public offering
Debt Instruments
Number of shares after conversion of issued warrants (in shares)			24,566
Exercise price of warrants (in dollars per share)			$ 12.21

Commitments (Details) - USD ($) $ in Thousands	3 Months Ended
Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Operating leases
Rent expense	$ 300	$ 300
Future minimum payments required under the non-cancelable operating lease
2018	1,040
2019	1,421
2020	721
Total minimum lease payments	$ 3,182

Stock Incentive Plans - Plan Information and Valuation Assumptions (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock-Based Compensation
Shares reserved for future issuance (in shares)	5,400,278	4,229,689
2015 Plan
Stock-Based Compensation
Shares reserved for future issuance (in shares)	3,783,509
Shares available for future issuance (in shares)	839,975
2008 Plan
Stock-Based Compensation
Shares reserved for future issuance (in shares)	832,092
Shares available for future issuance (in shares)	0
Stock options
Stock-Based Compensation
Vesting period	4 years
Cliff period for vesting	1 year
Exercisable period	10 years

Stock Incentive Plans - Stock Option Plan Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Stock options
Outstanding at beginning of year (in shares)	2,845,626
Granted (in shares)	930,000
Outstanding at end of year (in shares)	3,775,626		2,845,626
Vested and Exercisable to vest at end of year (in shares)	1,573,375
Weighted-Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 4.53
Granted (in dollars per share)	1.28
Outstanding at end of year (in dollars per share)	3.73		$ 4.53
Vested and Exercisable at end of year (in dollars per share)	$ 5.30
Weighted Average Remaining Contractual Term (years)
Outstanding at end of year	8 years 29 days		7 years 9 months
Vested and Exercisable at end of year	6 years 8 months 19 days
Aggregate Intrinsic Value
Outstanding at the beginning of the year	$ 216
Outstanding at the end of the year	1,001		$ 216
Aggregate intrinsic value of options vested and exercisable	140
Stock options
Unrecognized stock-based compensation expense
Intrinsic value of options exercised	0	$ 27
Adjusted fair value of options vested	$ 600	$ 600
Weighted average grant date fair value of options granted (in dollars per share)	$ 0.88	$ 0.84
Unrecognized compensation expense related to unvested stock option awards	$ 3,600
Weighted-average amortization period over which cost is expected to be recognized	2 years 1 month 6 days

Available-for-Sale Securities	3 Months Ended
Available-for-Sale Securities	Mar. 31, 2018
Available-for-Sale Securities
Available-for-Sale Securities	4.Available-for-Sale Securities As of March 31, 2018 and December 31, 2017, the Company held no available-for-sale securities. Gross realized gains and losses on the sales of available-for-sale securities are included in other income, net. Unrealized holding gains or losses for the period that have been included in accumulated other comprehensive income, as well as gains and losses reclassified out of accumulated other comprehensive income into other income, net were not material to the Company’s condensed consolidated results of operations. The cost of securities sold or the amount reclassified out of the accumulated other comprehensive income into other income, net is based on the specific identification method for purposes of recording realized gains and losses. There were no proceeds from sales of available-for-sale securities in the three-month period ended March 31, 2018. All proceeds in the three-month period ended March 31, 2017 related to maturities of underlying securities. The gains on proceeds from maturities of available-for-sale securities were not material to the Company’s condensed consolidated results of operations for the three months ended March 31, 2018 and 2017.

Preferred Stock	3 Months Ended
Preferred Stock	Mar. 31, 2018
Preferred Stock
Preferred Stock	8.Preferred Stock As of March 31, 2018, the Company had 5,000,000 shares of preferred stock authorized for issuance, $0.001 par value per share, with none issued or outstanding. Preferred stock may be issued from time to time in one or more series, each series to have such terms as stated or expressed in the resolutions providing for the issue of such series adopted by the board of directors of the Company. Preferred stock which may be redeemed, purchased or acquired by the Company may be reissued except as otherwise provided by law.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2018
Subsequent Events
Subsequent Events	11.Subsequent Events The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates and to identify matters that require additional disclosure. Subsequent events have been evaluated as required. In April 2018, the Company restructured its organization to focus resources on edasalonexent. The restructuring reduced the Company’s workforce by 42% and will result in estimated one-time severance related costs of approximately $1.0 million.

Preferred Stock (Details)	3 Months Ended
Preferred Stock (Details)	Mar. 31, 2018 series $ / shares shares	Dec. 31, 2017 $ / shares shares
Preferred Stock
Preferred stock, authorized (in Shares)	5,000,000	5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Preferred Stock, shares issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Minimum number of series used to issue preferred stock \| series	1

Subsequent Events (Details) - Subsequent Events $ in Millions	1 Months Ended
	Apr. 30, 2018 USD ($)
Percentage of workforce reduced	42.00%
Severance related costs	$ 1.0

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements Comprehensive Loss
Net loss	$ (7,652)	$ (7,876)
Other comprehensive income:
Gain on available-for-sale securities		4
Total other comprehensive income:		4
Comprehensive loss	$ (7,652)	$ (7,872)

Summary of Significant Accounting Policies - Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Antidilutive common stock equivalents excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares)	3,800,192	2,928,063
Stock options
Antidilutive common stock equivalents excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares)	3,775,626	2,903,497
Common stock warrants
Antidilutive common stock equivalents excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares)	24,566	24,566

Notes Payable - Future Principal Payments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Estimated future principal payments
2018	$ 1,667
Total	1,667
Less: discount for warrants and costs paid to lenders	(10)
Less: current portion	(1,657)
Credit Facility
Estimated future principal payments
Interest expense	$ 100	$ 100

Common Stock Reserved for Future Issuance (Details) - shares	Mar. 31, 2018	Mar. 31, 2017
Stockholders' equity
Shares reserved for future issuance (in shares)	5,400,278	4,229,689
Common stock warrants
Stockholders' equity
Shares reserved for future issuance (in shares)	24,566	24,566
Stock options
Stockholders' equity
Shares reserved for future issuance (in shares)	4,615,601	3,681,464
Employee Stock Purchase Plan
Stockholders' equity
Shares reserved for future issuance (in shares)	760,111	523,659