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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Jul. 31, 2019
Document and Entity Information
Entity Registrant Name	CATABASIS PHARMACEUTICALS INC
Entity Central Index Key	0001454789
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,617,112
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 9,615	$ 15,294
Short-term investments	36,496	22,276
Prepaid expenses and other current assets	880	1,345
Total current assets	46,991	38,915
Right-of-use asset	1,274
Other assets	264	254
Total assets	48,529	39,169
Current liabilities:
Accounts payable	1,390	1,408
Accrued expenses	2,512	2,763
Current portion of operating lease liabilities	1,266
Total current liabilities	5,168	4,171
Other long-term liabilities		56
Total liabilities	5,168	4,227
Commitments (Note 6)
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; 11,553,937 and 7,141,996 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively	12	7
Additional paid-in capital	253,821	232,243
Accumulated other comprehensive income (loss)	1	(4)
Accumulated deficit	(210,473)	(197,304)
Total stockholders' equity	43,361	34,942
Total liabilities and stockholders' equity	$ 48,529	$ 39,169

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
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)	11,553,937	7,141,996
Common stock, outstanding (in shares)	11,553,937	7,141,996

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating expenses:
Research and development	$ 5,160	$ 4,239	$ 9,357	$ 9,486
General and administrative	2,165	2,397	4,302	4,789
Total operating expenses	7,325	6,636	13,659	14,275
Loss from operations	(7,325)	(6,636)	(13,659)	(14,275)
Other income (expense):
Interest expense		(33)		(90)
Interest and investment income	257	43	483	75
Other (expense) income, net	(63)	147	7	159
Total other income, net	194	157	490	144
Net loss	$ (7,131)	$ (6,479)	$ (13,169)	$ (14,131)
Net loss per share - basic and diluted (in dollars per share)	$ (0.62)	$ (1.98)	$ (1.24)	$ (4.76)
Weighted-average common shares outstanding used in net loss per share - basic and diluted (in shares)	11,505,542	3,272,877	10,600,909	2,965,936

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (7,131)	$ (6,479)	$ (13,169)	$ (14,131)
Other comprehensive income:
Gain on short-term investments	1		5
Total other comprehensive income:	1		5
Comprehensive loss	$ (7,130)	$ (6,479)	$ (13,164)	$ (14,131)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Total
Balance at Dec. 31, 2017	$ 2	$ 183,224	$ (171,434)
Balance (in shares) at Dec. 31, 2017	2,364,526
Increase (Decrease) in Shareholders' Equity
Issuance of common stock for at-the-market offerings	$ 1	8,312
Issuance of common stock for at-the-market offerings (in shares)	539,026
Issuance of common stock and warrants in public offerings	$ 4	38,907
Issuance of common stock and warrants in public offerings (in shares)	4,200,000
Issuance of common stock upon exercise of common stock options and warrants		4
Issuance of common stock upon exercise of common stock options and warrants (in shares)	291
Stock-based compensation expense		924
Net loss			(14,131)		$ (14,131)
Balance at Jun. 30, 2018	$ 7	231,371	(185,565)		45,813
Balance (in shares) at Jun. 30, 2018	7,103,843
Balance at Mar. 31, 2018	$ 3	192,014	(179,086)
Balance (in shares) at Mar. 31, 2018	2,903,552
Increase (Decrease) in Shareholders' Equity
Issuance of common stock and warrants in public offerings	$ 4	38,907
Issuance of common stock and warrants in public offerings (in shares)	4,200,000
Issuance of common stock upon exercise of common stock options and warrants		4
Issuance of common stock upon exercise of common stock options and warrants (in shares)	291
Stock-based compensation expense		446
Net loss			(6,479)		(6,479)
Balance at Jun. 30, 2018	$ 7	231,371	(185,565)		45,813
Balance (in shares) at Jun. 30, 2018	7,103,843
Balance at Dec. 31, 2018	$ 7	232,243	(197,304)	$ (4)	$ 34,942
Balance (in shares) at Dec. 31, 2018	7,141,996				7,141,996
Increase (Decrease) in Shareholders' Equity
Issuance of common stock for at-the-market offerings	$ 1	2,173
Issuance of common stock for at-the-market offerings (in shares)	403,241
Issuance of common stock and warrants in public offerings	$ 4	18,501
Issuance of common stock and warrants in public offerings (in shares)	4,000,000
Issuance of common stock upon exercise of common stock options and warrants		55
Issuance of common stock upon exercise of common stock options and warrants (in shares)	8,700
Stock-based compensation expense		849
Realized gain on short-term investments				5
Net loss			(13,169)		$ (13,169)
Balance at Jun. 30, 2019	$ 12	253,821	(210,473)	1	$ 43,361
Balance (in shares) at Jun. 30, 2019	11,553,937				11,553,937
Balance at Mar. 31, 2019	$ 11	253,200	(203,342)
Balance (in shares) at Mar. 31, 2019	11,496,242
Increase (Decrease) in Shareholders' Equity
Issuance of common stock for at-the-market offerings	$ 1	128
Issuance of common stock for at-the-market offerings (in shares)	49,495
Issuance of common stock upon exercise of common stock options and warrants		52
Issuance of common stock upon exercise of common stock options and warrants (in shares)	8,200
Stock-based compensation expense		441
Realized gain on short-term investments				1
Net loss			(7,131)		$ (7,131)
Balance at Jun. 30, 2019	$ 12	$ 253,821	$ (210,473)	$ 1	$ 43,361
Balance (in shares) at Jun. 30, 2019	11,553,937				11,553,937

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating activities
Net loss	$ (13,169)	$ (14,131)
Reconciliation of net loss to net cash used in operating activities:
Depreciation and amortization	15	105
Stock-based compensation expense	849	924
Accretion of discount/premium on investment securities	15
Non-cash interest expense		33
Gain on disposal of property and equipment		(148)
Services received in non-monetary exchange	10	5
Changes in assets and liabilities:
Prepaid expenses and other current assets	456	641
Other assets	(25)
Right-of-use asset-operating	(9)
Accounts payable	(160)	(402)
Accrued expenses	(256)	547
Other liabilities	(51)	5
Net cash used in operating activities	(12,325)	(12,421)
Investing activities
Purchases of short-term investments	(88,506)
Sales and maturities of short-term investments	74,277
Proceeds from sale of property and equipment		8
Net cash (used in) provided by investing activities	(14,229)	8
Financing activities
Proceeds from public offerings, net of issuance costs	18,505	39,325
Proceeds from at-the-market offering, net of issuance costs	2,315	8,313
Proceeds from exercise of common stock options and warrants	55	4
Payments on borrowing		(1,667)
Net cash provided by financing activities	20,875	45,975
Net (decrease) increase in cash, cash equivalents and restricted cash	(5,679)	33,562
Cash, cash equivalents and restricted cash, beginning of period	15,407	16,482
Cash, cash equivalents and restricted cash, end of period	9,728	50,044
Supplemental disclosure of cash flow information
Cash paid for interest		68
Non-cash financing activities
At-the-market issuance costs included in accounts payable and accrued expenses	$ 141
Public offering issuance costs included in accounts payable		$ 414

Organization and Operations	6 Months Ended
Organization and Operations	Jun. 30, 2019
Organization and Operations
Organization and Operations	1. Organization and Operations The Company Catabasis Pharmaceuticals, Inc. (the "Company") is a clinical-stage biopharmaceutical company. The Company’s lead program is edasalonexent, formerly known as CAT-1004, an oral small molecule designed to inhibit NF-B, or nuclear factor kappa-light-chain-enhancer of activated B cells, in development for the treatment of Duchenne muscular dystrophy (“DMD”). The Company believes edasalonexent has the potential to be a foundational therapy for all patients affected by DMD, regardless of the underlying dystrophin mutation. DMD is an ultimately fatal genetic disorder involving progressive muscle degeneration. The United States Food and Drug Administration has granted orphan drug, fast track and rare pediatric disease designations to edasalonexent for the treatment of DMD. The European Commission has granted orphan medicinal product designation to edasalonexent for the treatment of DMD. The Company was incorporated in the State of Delaware on June 26, 2008. Liquidity The Company has entered into various sales agreements with Cowen and Company LLC, (“Cowen”), pursuant to which the Company could issue and sell shares of common stock, par value of $0.001 per share, under at-the-market offering programs (the “ATM Programs”). Shares sold pursuant to these sales agreements were sold pursuant to shelf registration statements, one of which became effective on July 19, 2016 and was replaced by a new shelf registration statement effective May 22, 2019. The Company pays Cowen 3% of the gross proceeds from any common stock sold through these sales agreements. As of June 30, 2019, the Company has $49.6 million remaining available under its current sales agreement. During the six months ended June 30, 2019, the Company sold an aggregate of 403,241 shares of common stock pursuant to the ATM Programs, at an average price of $6.17 per share, for net proceeds of $2.2 million after deducting sales commissions and offering expenses. On February 6, 2019, the Company entered into an underwriting agreement with Oppenheimer & Co. Inc. relating to an underwritten public offering (the “February 2019 Financing”) of 4,000,000 shares of common stock and accompanying warrants to purchase up to 2,000,000 shares of common stock, at a combined price to the public of $5.00 per unit, for net proceeds of $18.5 million. As of June 30, 2019, the Company had an accumulated deficit of $210.5 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 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 June 30, 2019, the Company had available cash, cash equivalents and short-term investments of $46.1 million. Based on the Company’s current operating plan, the Company believes it has sufficient cash, cash equivalents and short-term investments to fund operations through 2020. 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

6 Months Ended

Jun. 30, 2019

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, 2018 and notes thereto included in the 2018 Annual Report on Form 10-K.

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements except for the adoption of the new lease accounting standard discussed below. In the opinion of the Company’s management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments, including those adjustments that are of a normal and recurring nature, which are necessary to fairly present the Company’s financial position as of June 30, 2019, the results of its operations for the three and six months ended June 30, 2019 and 2018, the statement of stockholders’ equity for the three and six months ended June 30, 2019 and 2018 and its cash flows for the six months ended June 30, 2019 and 2018. Such adjustments are of a normal and recurring nature. The results for the three and six months ended June 30, 2019 are not necessarily indicative of the results for the year ending December 31, 2019, 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 Accounting Standards Codification (“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 granted stock options, 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.

During the three and six months ended June 30, 2019 and 2018, the Company recorded stock-based compensation expense, which was allocated as follows in the condensed consolidated statements of operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Research and development	$	165	$	164	$	300	$	337
General and administrative		276		282		549		587
Total	$	441	$	446	$	849	$	924

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 June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Stock options	763,592	368,922	763,592	368,922
Common stock warrants	6,193,749	4,202,457	6,193,749	4,202,457
	6,957,341	4,571,379	6,957,341	4,571,379

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:


	June 30,
	2019		2018
Cash and cash equivalents	$	9,615	$	49,931
Restricted cash (1)		113		113
Total	$	9,728	$	50,044

(1) Included in other assets in the accompanying condensed consolidated balance sheets

Leases

Effective January 1, 2019, the Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) lease assets, current portion of lease obligations, and long-term lease obligations on the Company’s balance sheets. The Company does not currently hold any financing leases.

ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s facility lease does not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s ROU lease asset also includes any lease payments made and excludes lease incentives. The Company’s facility lease includes options to terminate the lease which would affect the lease period when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments under the facility lease is recognized on a straight-line basis over the lease term.

Recent Accounting Pronouncements - Adopted

In February 2016, the Financial Accounting Standards Board, ("FASB”) issued Accounting Standards Update ("ASU”) 2016-02, Leases. This standard amends the existing guidance to require lessees to present most leases on their balance sheets and recognize corresponding expenses on their statements of operations. The FASB also provided practical expedients that give lessors an option to combine non-lease and associated lease components when certain criteria are met and requires a lessor to account for the combined component in accordance with the new revenue standard if the associated non-lease components are the predominant component. The Company adopted this standard effective January 1, 2019 by recording the cumulative effect on the date of the adoption. The Company has elected the package of practical expedients permitted under the transition guidance in ASC Topic 842, Leases, ("ASC Topic 842"). Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. As a result of the adoption of the new lease accounting guidance, the Company recognized on January 1, 2019 a lease liability and right-of-use asset of approximately $1.9 million. The lease liability represents the present value of the remaining lease payments, discounted using the Company’s estimated incremental borrowing rate of 7.49%. The ROU asset represents the lease liability adjusted for any prepaid and accrued rent payments as well as any remaining liability associated with an active sublease. This standard did not have a material impact on the Company’s cash flows from operations and had no impact on the Company’s operating results. The most significant impact was the recognition of ROU assets and lease obligations for operating leases.

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 June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). This standard requires a financial asset to be presented at amortized cost basis at the net amount expected to be collected. It also requires that credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This amendment is effective for annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). This standard includes amendments regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and disclosure requirements of measurement uncertainty. This amendment is effective for annual reporting periods beginning after December 15, 2019. 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 2018 Annual Report on Form 10-K, and there were no significant changes to such policies in the three and six months ended June 30, 2019 that had a material impact on the Company’s results of operations or financial position, except the impacts on the Company's balance sheet related to the adoption of the new leasing standard in the current year.

Financial Instruments

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018 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 for 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 or six months ended June 30, 2019 or 2018.

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 June 30, 2019
	Quoted Prices		Significant		Significant
	in Active		Observable		Unobservable
	Markets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash and cash equivalents:
Money market funds	$	3,822	$	—	$	—	$	3,822
Reverse repurchase agreements		—		2,000		—		2,000
Short-term investments:
Corporate debt securities		—		5,496		—		5,496
Reverse repurchase agreements		—		31,000		—		31,000
Total assets	$	3,822	$	38,496	$	—	$	42,318


	As of December 31, 2018
	Quoted Prices		Significant		Significant
	in Active		Observable		Unobservable
	Markets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash and cash equivalents:
Money market funds	$	5,956	$	—	$	—	$	5,956
Corporate debt securities		—		1,948		—		1,948
Reverse repurchase agreements		—		3,000		—		3,000
Short-term investments:
Corporate debt securities		—		7,276		—		7,276
Reverse repurchase agreements		—		15,000		—		15,000
Total assets	$	5,956	$	27,224	$	—	$	33,180

At June 30, 2019 the Company’s cash equivalents consisted of money market funds and U.S. reverse repurchase agreements. At December 31, 2018 the Company’s cash equivalents consisted of money market funds, corporate debt securities and U.S. reverse repurchase agreements. At June 30, 2019, and December 31, 2018, cash equivalents approximated their fair value due to their short-term nature.

- 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

Short-Term Investments

6 Months Ended

Jun. 30, 2019

Short-Term Investments

Short-Term Investments

4. Short-Term Investments

The following table summarizes the short-term investments held at June 30, 2019 and December 31, 2018 (in thousands):


			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		Losses		Fair Value
June 30, 2019
Corporate debt securities	$	5,495	$	1	$	—	$	5,496
Reverse repurchase agreements		31,000		—		—		31,000
Total	$	36,495	$	1	$	—	$	36,496


			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		Losses		Fair Value
December 31, 2018
Corporate debt securities	$	7,280	$	—	$	(4)	$	7,276
Reverse repurchase agreements		15,000		—		—		15,000
Total	$	22,280	$	—	$	(4)	$	22,276

The contractual maturities of all short-term investments held at June 30, 2019 and December 31, 2018 were one year or less. There was one short-term investment in an unrealized loss position at June 30, 2019 and seven short-term investments in an unrealized loss position at December 31, 2018, none of which had been in an unrealized loss position for more than 12 months. The aggregate fair value of these investments was approximately $2.0 million and $7.3 million at June 30, 2019 and December 31, 2018, respectively. The Company did not hold any investments with other-than-temporary impairments at June 30, 2019 and December 31, 2018.

Gross realized gains and losses on the sales of short-term investments 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 investments 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 short-term investments in the three and six-month periods ended June 30, 2018. All proceeds in the three and six-month periods ended June 30, 2019 related to maturities of underlying investments. The gains on proceeds from maturities of short-term investments were not material to the Company’s condensed consolidated results of operations for the three or six months ended June 30, 2019 and 2018.

Stock Incentive Plans

6 Months Ended

Jun. 30, 2019

Stock Incentive Plans

Stock Incentive Plans

9. Stock Incentive Plans

Prior to the Company's initial public offering in June 2015 (the “IPO”), the Company granted awards to eligible participants under its 2008 Equity Incentive 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.

The 2015 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, stock appreciation rights and other stock-based awards. The Company’s employees, officers, directors and consultants and advisors are eligible to receive awards under the 2015 Plan.

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 June 30, 2019, 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 follows:


				Weighted
				Average
		Weighted-		Remaining	Aggregate
		Average		Contractual	Intrinsic Value
	Shares	Exercise Price		Term (years)	(in thousands)
Outstanding at December 31, 2018	433,389	$	29.05	7.97	$	—
Granted	372,320	$	4.52
Cancelled or forfeited	(42,117)	$	30.00
Outstanding at June 30, 2019	763,592	$	17.04	8.52	$	1,421
Vested and Exercisable at June 30, 2019	201,831	$	44.29	6.32	$	9

There were no options exercised in the three and six months ended June 30, 2019. The total intrinsic value of options exercised for the three and six months ended June 30, 2018 was $1 thousand. The total fair value of employee and non-employee options vested for the three months ended June 30, 2019 and 2018 was $0.4 million and $0.5 million, respectively. The total fair value of employee and non-employee options vested for the six months ended June 30, 2019 and 2018 was $0.8 million and $1.1 million, respectively. The weighted-average grant date fair value of options granted to employees and non-employees for the three months ended June 30, 2019 and 2018 was $4.00 and $10.30, respectively. The weighted-average grant date fair value of options granted to employees and non-employees for the six months ended June 30, 2019 and 2018 was $3.06 and $8.90, respectively.

At June 30, 2019, the total unrecognized compensation expense related to unvested stock option awards was $2.3 million. The Company expects to recognize that cost over a weighted-average period of approximately 2.1 years.

Summary of Significant Accounting Polices (Polices)

6 Months Ended

Jun. 30, 2019

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 June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Research and development	$	165	$	164	$	300	$	337
General and administrative		276		282		549		587
Total	$	441	$	446	$	849	$	924

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 June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Stock options	763,592	368,922	763,592	368,922
Common stock warrants	6,193,749	4,202,457	6,193,749	4,202,457
	6,957,341	4,571,379	6,957,341	4,571,379

Cash, Cash Equivalents and Restricted Cash


	June 30,
	2019		2018
Cash and cash equivalents	$	9,615	$	49,931
Restricted cash (1)		113		113
Total	$	9,728	$	50,044

(1) Included in other assets in the accompanying condensed consolidated balance sheets

Leases

Recent Accounting Pronouncements

Recent Accounting Pronouncements - Adopted

Recent Accounting Pronouncements - Not Yet Adopted

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies

Schedule of stock-based compensation expense


	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Research and development	$	165	$	164	$	300	$	337
General and administrative		276		282		549		587
Total	$	441	$	446	$	849	$	924

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Stock options	763,592	368,922	763,592	368,922
Common stock warrants	6,193,749	4,202,457	6,193,749	4,202,457
	6,957,341	4,571,379	6,957,341	4,571,379

Schedule of reconciliation of cash, cash equivalents and restricted cash


	June 30,
	2019		2018
Cash and cash equivalents	$	9,615	$	49,931
Restricted cash (1)		113		113
Total	$	9,728	$	50,044

(1) Included in other assets in the accompanying condensed consolidated balance sheets

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019
	Quoted Prices		Significant		Significant
	in Active		Observable		Unobservable
	Markets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash and cash equivalents:
Money market funds	$	3,822	$	—	$	—	$	3,822
Reverse repurchase agreements		—		2,000		—		2,000
Short-term investments:
Corporate debt securities		—		5,496		—		5,496
Reverse repurchase agreements		—		31,000		—		31,000
Total assets	$	3,822	$	38,496	$	—	$	42,318


	As of December 31, 2018
	Quoted Prices		Significant		Significant
	in Active		Observable		Unobservable
	Markets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash and cash equivalents:
Money market funds	$	5,956	$	—	$	—	$	5,956
Corporate debt securities		—		1,948		—		1,948
Reverse repurchase agreements		—		3,000		—		3,000
Short-term investments:
Corporate debt securities		—		7,276		—		7,276
Reverse repurchase agreements		—		15,000		—		15,000
Total assets	$	5,956	$	27,224	$	—	$	33,180

- 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

Short-Term Investments (Tables)

6 Months Ended

Jun. 30, 2019

Short-Term Investments

Summary of short-term investments

The following table summarizes the short-term investments held at June 30, 2019 and December 31, 2018 (in thousands):


			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		Losses		Fair Value
June 30, 2019
Corporate debt securities	$	5,495	$	1	$	—	$	5,496
Reverse repurchase agreements		31,000		—		—		31,000
Total	$	36,495	$	1	$	—	$	36,496


			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		Losses		Fair Value
December 31, 2018
Corporate debt securities	$	7,280	$	—	$	(4)	$	7,276
Reverse repurchase agreements		15,000		—		—		15,000
Total	$	22,280	$	—	$	(4)	$	22,276

Stock Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2019

Stock Incentive Plans

Summary of stock option activity


				Weighted
				Average
		Weighted-		Remaining	Aggregate
		Average		Contractual	Intrinsic Value
	Shares	Exercise Price		Term (years)	(in thousands)
Outstanding at December 31, 2018	433,389	$	29.05	7.97	$	—
Granted	372,320	$	4.52
Cancelled or forfeited	(42,117)	$	30.00
Outstanding at June 30, 2019	763,592	$	17.04	8.52	$	1,421
Vested and Exercisable at June 30, 2019	201,831	$	44.29	6.32	$	9

Organization and Operations - Liquidity (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended	6 Months Ended
	Feb. 06, 2019	Jul. 19, 2016	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Common Stock
Common stock, par value (in dollars per share)			$ 0.001	$ 0.001		$ 0.001
Accumulated deficit			$ (210,473)	$ (210,473)		$ (197,304)
Cash, cash equivalents and short-term investments			$ 46,100	$ 46,100
Common stock
Common Stock
Number of shares issued			49,495	403,241	539,026
Additional common stock issued			$ 1	$ 1	$ 1
Common stock \| Cowen
Common Stock
Percentage of commission paid to underwriter based on proceeds from common stock		3.00%
Common stock \| ATM
Common Stock
Number of shares issued				403,241
Share price (in dollars per share)			$ 6.17	$ 6.17
Net proceeds				$ 2,200
Common stock \| First ATM Program \| Cowen
Common Stock
Remaining current sales agreement		$ 49,600
Common stock \| February 2019 Financing \| Oppenheimer & Co. Inc
Common Stock
Number of shares issued	4,000,000
Number of warrants issued	2,000,000
Warrants price (in dollars per unit)	$ 5.00
Proceeds from public offering, net of issuance costs	$ 18,500

Financial Instruments (Details) $ in Thousands	6 Months Ended
Financial Instruments (Details) $ in Thousands	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)
Financial Instruments
Transfers between fair value measurement levels	$ 0		$ 0
Cash and cash equivalents:
Cash and cash equivalents	9,615	$ 15,294	$ 49,931
Short-term investments:
Short-term investments	36,496	22,276
Corporate debt securities
Short-term investments:
Short-term investments	5,496	7,276
Reverse repurchase agreements
Short-term investments:
Short-term investments	$ 31,000	15,000
Government Securities and Obligations \| Reverse Repurchase Agreement \| Minimum
Financial Instruments
Percentage of investment amount to collateralized deposits value	102
Recurring
Assets:
Total assets	$ 42,318	33,180
Recurring \| Money market funds
Cash and cash equivalents:
Cash and cash equivalents	3,822	5,956
Recurring \| Corporate debt securities
Cash and cash equivalents:
Cash and cash equivalents		1,948
Short-term investments:
Short-term investments	5,496	7,276
Recurring \| Reverse repurchase agreements
Cash and cash equivalents:
Cash and cash equivalents	2,000	3,000
Short-term investments:
Short-term investments	31,000	15,000
Recurring \| Level 1
Assets:
Total assets	3,822	5,956
Recurring \| Level 1 \| Money market funds
Cash and cash equivalents:
Cash and cash equivalents	3,822	5,956
Recurring \| Level 2
Assets:
Total assets	38,496	27,224
Recurring \| Level 2 \| Corporate debt securities
Cash and cash equivalents:
Cash and cash equivalents		1,948
Short-term investments:
Short-term investments	5,496	7,276
Recurring \| Level 2 \| Reverse repurchase agreements
Cash and cash equivalents:
Cash and cash equivalents	2,000	3,000
Short-term investments:
Short-term investments	$ 31,000	$ 15,000

Short-Term Investments (Details) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
Short-Term Investments (Details) $ in Thousands	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) instrument	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) instrument
Short-Term Investments
Amortized Cost		$ 36,495		$ 22,280
Gross Unrealized Gains		1
Gross Unrealized Losses				(4)
Fair Value		$ 36,496		$ 22,276
Number of short term investments in unrealized loss position \| instrument		1		7
Number of short term investments in an unrealized loss position more than 12 months \| instrument		0
Aggregate fair value of the investments in an unrealized loss position		$ 2,000		$ 7,300
Proceeds from Sale of Short-term Investments	$ 0		$ 0
Corporate debt securities
Short-Term Investments
Amortized Cost		5,495		7,280
Gross Unrealized Gains		1
Gross Unrealized Losses				(4)
Fair Value		5,496		7,276
Reverse repurchase agreements
Short-Term Investments
Amortized Cost		31,000		15,000
Fair Value		$ 31,000		$ 15,000

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accrued Expenses
Accrued contracted research costs	$ 1,238	$ 680
Accrued compensation	789	1,241
Accrued professional fees	291	393
Accrued other	174	172
Accrued franchise tax	20	168
Accrued severance		109
Total	$ 2,512	$ 2,763

Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended			12 Months Ended
Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2019	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2020
Maturity analysis of the annual undiscounted cash flows of the operating lease liabilities
2019	$ 721			$ 721
2020	721			721
Total minimum lease payments	1,442			1,442
Rent expense	100	$ 300		200	$ 700
Lease payment	300	$ 300		700	$ 700
Amount of base rent from sub-lease			$ 500			$ 500
Sublease income	$ 300			$ 500

Stockholders' Equity - Common Stock Warrants (Details) - $ / shares		1 Months Ended	3 Months Ended	6 Months Ended
	Jun. 19, 2018	Feb. 28, 2019	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
February 2019 common stock warrants
Convertible Preferred Stock
Number of warrants issued		2,000,000
Exercise price of warrants (in dollars per share)		$ 6.25
Warrants term		5 years
Warrants outstanding			1,991,300	1,991,300
Weighted average remaining contractual life				4 years 7 months 10 days
June 2018 common stock warrants
Convertible Preferred Stock
Number of warrants issued	4,200,000
Exercise price of warrants (in dollars per share)	$ 12.00
Warrants term	5 years
Weighted average remaining contractual life				3 years 11 months 23 days
Common stock
Convertible Preferred Stock
Number of shares issued			49,495	403,241	539,026
Oppenheimer & Co. Inc \| Common stock \| June 2018 common stock warrants
Convertible Preferred Stock
Number of shares issued	4,200,000
Share price (in dollars per share)	$ 0.001

Stock Incentive Plans - Stock Option Plan Activity (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Stock options
Outstanding at beginning of year (in shares)			433,389
Granted (in shares)			372,320
Cancelled or forfeited (in shares)			(42,117)
Outstanding at end of year (in shares)	763,592		763,592		433,389
Vested and Exercisable to vest at end of year (in shares)	201,831		201,831
Weighted-Average Exercise Price
Outstanding at beginning of year (in dollars per share)			$ 29.05
Granted (in dollars per share)			4.52
Cancelled or forfeited (in dollars per share)			30.00
Outstanding at end of year (in dollars per share)	$ 17.04		17.04		$ 29.05
Vested and Exercisable at end of year (in dollars per share)	$ 44.29		$ 44.29
Weighted Average Remaining Contractual Term (years)
Outstanding at end of year			8 years 6 months 7 days		7 years 11 months 19 days
Vested and Exercisable at end of year			6 years 3 months 26 days
Aggregate Intrinsic Value
Outstanding at the end of the year	$ 1,421,000		$ 1,421,000
Vested and Exercisable at end of year	9,000		9,000
Stock options
Unrecognized stock-based compensation expense
Intrinsic value of options exercised	0	$ 1,000	0	$ 1,000
Adjusted fair value of options vested	$ 400,000	$ 500,000	$ 800,000	$ 1,100,000
Weighted average grant date fair value of options granted (in dollars per share)	$ 4.00	$ 10.30	$ 3.06	$ 8.90
Unrecognized compensation expense related to unvested stock option awards	$ 2,300,000		$ 2,300,000
Weighted-average amortization period over which cost is expected to be recognized			2 years 1 month 6 days

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2019
Stockholders' Equity
Stockholders' Equity	7. Stockholders’ Equity Preferred Stock As of June 30, 2019, 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. Common Stock Warrants February 2019 Warrants In the February 2019 Financing, the Company issued warrants to purchase 2,000,000 shares of common stock with an exercise price of $6.25 per share, which were immediately exercisable upon issuance and will expire five years from the date of issuance. The terms of the warrants include certain provisions related to fundamental transactions, a cashless exercise provision in the event registered shares are not available, and do not include any mandatory redemption provisions. Therefore, the warrants have been classified in stockholders’ equity. Any changes to the fair value of the warrants will not be recognized so long as the warrants continue to be equity classified. As of June 30, 2019, 1,991,300 warrants related to the February 2019 Financing were outstanding with a remaining contractual life of 4.61 years. June 2018 Warrants On June 19, 2018, the Company entered into an underwriting agreement with Oppenheimer & Co. Inc. relating to an underwritten public offering (the "June 2018 Financing") of 4,200,000 shares of the Company's common stock, par value $0.001 per share, and accompanying warrants to purchase up to 4,200,000 shares of common stock. The warrants were issued at an exercise price of $12.00 per share, and were immediately exercisable upon issuance expiring five years from the date of issuance. The terms of the warrants include certain provisions related to fundamental transactions, a cashless exercise provision in the event registered shares are not available, and do not include any mandatory redemption provisions. Therefore, the warrants have been classified in stockholders’ equity. Any changes to the fair value of the warrants will not be recognized so long as the warrants continue to be equity classified. As of June 30, 2019, all warrants related to the June 2018 Financing were outstanding with a remaining contractual life of 3.98 years.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2019
Subsequent Events
Subsequent Events	10. 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.

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - ASU 2016-02 - USD ($) $ in Millions	Jan. 01, 2019	Jun. 30, 2019
New Accounting Pronouncements
Package of practical expedients	true
Lessee, Operating Lease, Discount Rate		7.49%
Incremental borrowing rate		7.49%
Restatement Adjustment
New Accounting Pronouncements
Lease liability	$ 1.9
Right-of-use asset	$ 1.9

Stockholders' Equity - Preferred Stock (Details)	6 Months Ended
Stockholders' Equity - Preferred Stock (Details)	Jun. 30, 2019 series $ / shares shares	Dec. 31, 2018 $ / 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

Common Stock Reserved for Future Issuance (Details) - shares	Jun. 30, 2019	Dec. 31, 2018
Stockholders' equity
Shares reserved for future issuance (in shares)	7,617,536	5,589,766
Common stock warrants
Stockholders' equity
Shares reserved for future issuance (in shares)	6,193,749	4,202,449
Common stock options outstanding
Stockholders' equity
Shares reserved for future issuance (in shares)	763,592	433,389
Common stock options available for future issuance
Stockholders' equity
Shares reserved for future issuance (in shares)	547,714	877,917
Employee stock purchase plan reserved
Stockholders' equity
Shares reserved for future issuance (in shares)	112,481	76,011

Stock Incentive Plans - Plan Information and Valuation Assumptions (Details) - Stock options	6 Months Ended
	Jun. 30, 2019
Stock-Based Compensation
Vesting period	4 years
Cliff period for vesting	1 year
Exercisable period	10 years