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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2015	Oct. 30, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	CBIO
Entity Registrant Name	CATALYST BIOSCIENCES, INC.
Entity Central Index Key	0001124105
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,427,983

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 23,096	$ 1,544
Short-term investments	13,665
Restricted cash	34,825	50
Deposits		278
Accounts receivable	648	95
Prepaid and other current assets	620	103
Total current assets	72,854	2,070
Restricted cash, noncurrent	125
Property and equipment, net	709	911
Long-term investments	825
Total assets	74,513	2,981
Current liabilities:
Accounts payable	669	249
Accrued compensation	823	281
Other accrued liabilities	517	30
Deferred revenue, current portion	438	1,750
Deferred rent, current portion	8	26
Redeemable convertible notes	34,775
Derivative liability	676
Total current liabilities	37,906	2,336
Deferred revenue, noncurrent portion	401	729
Warrant liability		391
Total liabilities	38,307	3,456
Convertible preferred stock:
Convertible preferred stock		108,877
Stockholders' equity (deficit):
Preferred stock
Common stock, $0.001 par value, 105,000,000 shares and 110,000,000 shares authorized at September 30, 2015 (unaudited) and December 31, 2014; 11,411,680 and 370,944 shares issued and outstanding at September 30, 2015 (unaudited) and December 31, 2014	11
Additional paid-in capital	162,086	6,923
Accumulated other comprehensive income	16
Accumulated deficit	(125,907)	(116,275)
Total stockholders' equity (deficit)	36,206	(109,352)
Total liabilities and stockholders' equity (deficit)	$ 74,513	$ 2,981

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	0	88,469,871
Convertible preferred stock, shares issued	0	87,405,011
Convertible preferred stock, shares outstanding	0	87,405,011
Convertible preferred stock, aggregate liquidation preference	$ 0	$ 118,678
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	105,000,000	110,000,000
Common stock, shares issued	11,411,680	370,944
Common stock, shares outstanding	11,411,680	370,944

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Contract revenue	$ 109	$ 547	$ 1,641	$ 1,141
Operating expenses:
Research and development	1,486	1,336	4,192	3,871
General and administrative	2,508	849	6,567	2,980
Total operating expenses	3,994	2,185	10,759	6,851
Loss from operations	(3,885)	(1,638)	(9,118)	(5,710)
Interest and other income, net	273	136	964	399
Interest expense	(1,439)		(1,478)
Net loss	$ (5,051)	$ (1,502)	$ (9,632)	$ (5,311)
Net loss per common share: Basic and diluted	$ (0.93)	$ (4.08)	$ (4.65)	$ (14.49)
Shares used to compute net loss per common share: Basic and diluted	5,410,864	368,461	2,071,161	366,455

Condensed Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net loss	$ (5,051)	$ (1,502)	$ (9,632)	$ (5,311)
Other comprehensive income (loss):
Unrealized gain on available-for-sale securities, net of tax	16		16
Total comprehensive loss	$ (5,035)	$ (1,502)	$ (9,616)	$ (5,311)

- 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 Convertible Preferred Stock and Stockholders Equity (Deficit) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Reverse Merger	Convertible Preferred Stock Amount	Convertible Preferred Stock Amount Reverse Merger	Convertible Preferred Stock Amount Series F Convertible Preferred Stock	Common Stock Amount	Common Stock Amount Reverse Merger	Additional Paid-In Capital	Additional Paid-In Capital Reverse Merger	Accumulated Other Comprehensive Income	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2014						370,944
Beginning balance at Dec. 31, 2014	$ (109,352)							$ 6,923			$ (116,275)
Beginning balance at Dec. 31, 2014	$ 108,877		$ 108,877
Beginning balance (in shares) at Dec. 31, 2014	87,405,011		87,405,011
Stock based compensation expense associated with vesting of stock awards	$ 135							135
Stock options exercised for cash (in shares)						3,820
Stock options exercised for cash	13							13
Issuance of stock, value		$ 36,619	$ 7,259				$ 5		$ 36,614
Issuance of stock, shares			5,788,522				4,893,519
Conversion of preferred stock warrants to common stock warrants in connection with merger	774							774
Common stock withheld and cancelled, Value	(82)							(82)
Common stock withheld and cancelled, in shares						(12,146)
Conversion of convertible securities, value	68	$ 117,647		$ (117,647)	$ 1,511		$ 6	68	$ 117,641
Conversion of convertible securities, shares				(94,705,256)	1,511,723	7,382	6,148,161
Unrealized gain on available-for-sale securities, net of tax	16									$ 16
Net loss	(9,632)										(9,632)
Ending balance (in shares) at Sep. 30, 2015						11,411,680
Ending balance at Sep. 30, 2015	$ 36,206					$ 11		$ 162,086		$ 16	$ (125,907)
Ending balance (in shares) at Sep. 30, 2015	0

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders Equity (Deficit) (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Net of issuance costs	$ 96

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities
Net loss	$ (9,632)	$ (5,311)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	135	189
Depreciation and amortization	365	601
Non-cash interest expense on convertible notes	1,478
Loss on disposal of fixed assets	11	77
Gain on extinguishment of redeemable convertible notes	(39)
Change in fair value of warrant liability	(91)
Change in fair value of derivative liability	(740)
Changes in operating assets and liabilities:
Accounts receivable	(235)	6
Prepaid and other current assets	(56)	128
Accounts payable	(4,543)	(224)
Accrued compensation and other accrued liabilities	1,029	(38)
Deferred rent	(18)	(117)
Deferred revenue	(1,640)	359
Net cash flows used in operating activities	(13,976)	(4,330)
Investing Activities
Proceeds from the reverse merger	23,931
Proceeds from maturities of securities investments	2,750
Change in restricted cash	(125)
Purchases of property and equipment	(174)
Proceeds from sale of fixed assets		98
Net cash flows provided by investing activities	26,382	98
Financing Activities
Release of restricted cash due to conversion and redemption of redeemable convertible notes	2,225
Payments for the redemption of redeemable convertible notes	(2,157)
Proceeds from issuance of convertible preferred stock, net of issuance costs	7,259	4,982
Proceeds from issuance of convertible notes and warrants to related parties	1,888
Repurchase of common stock in connection with equity award assumed	(82)
Proceeds from the exercise of common stock options	13	25
Net cash flows provided by financing activities	9,146	5,007
Net increase in cash and cash equivalents	21,552	775
Cash and cash equivalents at beginning of period	1,544
Cash and equivalents at end of period	23,096	$ 3,603
Supplemental Disclosure of Non-Cash Investing and Financing Information:
Conversion of convertible notes to Series F convertible preferred stock	1,511
Investment securities received from the reverse merger	17,223
Redeemable convertible notes assumed upon reverse merger	37,073
Issuance of common stock in connection with conversion of convertible notes	68
Derivative liability related to redeemable convertible notes	1,455
Conversion of preferred stock to equity upon reverse merger
Supplemental Disclosure of Non-Cash Investing and Financing Information:
Conversion of stock	117,647
Conversion of preferred stock warrant liabilities to equity upon reverse merger
Supplemental Disclosure of Non-Cash Investing and Financing Information:
Conversion of stock	$ 774

Nature of Operations and Basis of Presentation

9 Months Ended

Sep. 30, 2015

Nature of Operations and Basis of Presentation

1.	Nature of Operations and Basis of Presentation

Catalyst Biosciences, Inc. (the “Company” or “Catalyst”), was incorporated in the state of Delaware on March 7, 2009. The Company is a clinical-stage biotechnology company focused on engineering proteases as therapeutics for hemophilia, hemostasis, compliment-mediated diseases, and other unmet medical needs. The Company is located in South San Francisco, California and we operate our business as a single segment, as defined by U.S. generally accepted accounting principles (“U.S. GAAP”).

Reverse Merger

Prior to August 20, 2015, the name of the Company was Targacept, Inc. (“Targacept”). On August 20, 2015, Targacept completed its business combination with Catalyst Bio, Inc., previously named Catalyst Biosciences, Inc. (“Old Catalyst”), in accordance with the terms of an Agreement and Plan of Merger, dated as of March 5, 2015, as amended on May 6 and May 13, 2015 (the “Merger Agreement”), by and among Targacept, Talos Merger Sub, Inc. (“Merger Sub”) and Old Catalyst, pursuant to which Merger Sub merged with and into Old Catalyst, with Old Catalyst surviving as a wholly-owned subsidiary of Targacept (the “Merger”). Also on August 20, 2015, in connection with, and prior to the completion of, the Merger, Targacept effected a 7-for-1 reverse stock split of its common stock (the “Reverse Stock Split”) and changed its name from Targacept, Inc. to Catalyst Biosciences, Inc. Following the completion of the Merger, the business conducted by the Company became primarily the business conducted by Old Catalyst described in the paragraph above.

These unaudited interim condensed consolidated financial statements reflect the historical results of Old Catalyst prior to the completion of the Merger, and do not include the historical results of Targacept prior to the completion of the Merger. All 2015 share and per share disclosures have been adjusted to reflect the exchange of shares in the Merger, and the 7-for-1 reverse stock split of the common stock on August 20, 2015. Under U.S. GAAP, the Merger is treated as a “reverse merger” under the purchase method of accounting. For accounting purposes, Old Catalyst is considered to have acquired Targacept. See Note 5 for further details on U.S. GAAP accounting treatment.

Liquidity

The Company had an accumulated deficit of $125.9 million as of September 30, 2015 and expects to continue to incur losses for the next several years. As of September 30, 2015, the Company had $37.6 million in cash, cash equivalents and marketable securities. Management believes that the currently available resources will provide sufficient funds to enable the Company to meet its operating plan for at least the next twelve months. However, if the Company’s anticipated operating results are not achieved in future periods, management believes that planned expenditures may need to be reduced in order to extend the time period over which the then-available resources would be able to fund the Company’s operations.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of Presentation

The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period or for any other future year. The balance sheet as of December 31, 2014 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements.

The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements for the year ended December 31, 2014 and the related notes thereto contained in the Company’s Current Report on Form 8-K/A, filed with the SEC on October 23, 2015.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, convertible preferred stock and related warrants up to the date of conversion, common stock and stock-based compensation. The Company bases its estimates on various assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company invests its excess cash in bank deposits, consisting primarily of money market mutual funds. The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents.

Restricted Cash

At September 30, 2015 and December 31, 2014, the Company had restricted cash of $35.0 million and $50,000, respectively. The restricted cash at September 30, 2015, includes a deposit in a segregated escrow account for the benefit of the holders of the redeemable convertible notes in order to facilitate the payment of the redeemable convertible notes upon redemption or at maturity as discussed in Note 6. $175,000 of restricted cash serves as collateral for the Company’s corporate credit card and deposit for its facility lease.

Investments

All investments have been classified as “available-for-sale” and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such designation as of each balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of comprehensive loss. Realized gains and losses and declines in fair value determined to be other-than-temporarily impaired, if any, on available-for-sale securities are included in interest and other income, net. The cost of securities sold is based on the specific-identification method. Interest on marketable securities is included in interest and other income, net.

Derivative Liability

The derivative issued in connection with the redeemable convertible notes, which are convertible into shares of the Company’s common stock, are classified as derivative liabilities at their estimated fair value. The derivative is subject to remeasurement at the end of each reporting period, with changes in fair value recognized as a component of interest and other income, net, in the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the conversion, redemption or maturity of the redeemable convertible notes.

Revenue Recognition

The Company enters into collaboration arrangements that may include the receipt of payments for up-front license fees, success-based milestone payments; full time equivalent based payments for research services, and royalties on any future sales of commercialized products that result from the collaborations.

Revenue related to collaborations is recognized when the four basic criteria for revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) transfer of technology has been completed or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured.

Revenue recognition for multiple element revenue arrangements will have deliverables associated with the arrangement divided into separate units of accounting provided that (i) a delivered item has value to the customer on a standalone basis and (ii) if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor. As a biotechnology company with unique and specialized technological undelivered performance obligations associated with its collaborations, the Company’s multiple element arrangements most often involve deliverables and consideration that do not meet the criteria for having stand-alone value.

Deliverables and performance obligations are accounted for under a single unit of accounting when they do not have stand-alone value and the related consideration is recognized as revenue over the estimated period of when the performance obligations are to be performed. The revenue is recognized on a proportional performance basis when the levels of the performance obligations under an arrangement can be reasonably estimated and on a straight-line basis when they cannot.

The Company’s collaboration agreements entitle it to additional payments upon the achievement of performance-based milestones related to product development, regulatory actions and commercial events in certain geographic areas. Milestones that are not deemed probable or that are tied to counter-party performance are not included in the Company’s revenue until the performance conditions are met. If a collaborative agreement milestone is deemed to be substantive, as defined in the accounting rules, the Company is permitted to recognize revenue related to the milestone payment in its entirety. Refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations “Revenue Recognition” section for further details.

In the event milestones are deemed non-substantive, the Company recognizes, and defers if applicable, payments for the achievement of such non-substantive milestones over the estimated period of performance applicable to each collaborative agreement using the proportional performance method or on a straight-line basis, as appropriate.

Collaborative agreement amounts received prior to satisfying revenue recognition criteria are recorded as deferred revenue in the accompanying balance sheets. Deferred revenue is recorded on the Company’s balance sheet as short-term or long-term based on its best estimate as to when such revenue will be recognized. Short-term deferred revenue consists of amounts that the Company expects to recognize as revenue in the next 12 months. Amounts that the Company expects will not be recognized prior to the next 12 months are classified as long-term deferred revenue.

The Company’s performance obligations under its collaboration arrangements also consist of participation on steering committees and the performance of other research and development and business development services. The timing for satisfying these performance obligations can be difficult to estimate and can be subject to change over the course of these agreements. A change in the estimated timing for satisfying the Company’s performance obligations could change the timing and amount of revenue that the Company recognizes and records in future periods.

Research and Development Expenses

Research and development costs are expensed as incurred. Research and development costs consist of payroll and other personnel-related expenses, laboratory supplies and reagents, contract research and development services, and consulting costs, as well as allocations of facilities and other overhead costs. Under the Company’s collaboration agreements, certain specific expenditures are reimbursed by third parties. During the three months ended September 30, 2015 and 2014 and the nine months ended September 30, 2015 and 2014, the Company recorded a reduction to research and development expenses of $418,000, $90,000, $887,000 and $285,000, respectively.

Net Loss per Share

Basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive given the net loss of the Company.

Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Measurements

3.	Fair Value Measurements

Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance on fair value measurements establishes a three tier fair value hierarchy for disclosure of fair value measurements as follows:

•

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.

•

Level 2: Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

Level 3: Unobservable inputs that are supported by little or no market data. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

As of September 30, 2015 and December 31, 2014, the Company’s highly liquid money market funds included within cash equivalents and restricted cash including deposit in an escrow account are financial assets that are valued using Level 1 inputs. The Company classifies its U.S. government agency securities, municipal bonds and corporate notes as Level 2. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. There were no transfers in or out of Level 1 and Level 2 during the periods presented.

Liabilities that are measured at fair value consist of the derivative liability and the warrant for convertible preferred stock that utilize Level 3 inputs. There were no transfers in or out of Level 3 during the periods presented.

The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands):


	September 30, 2015
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	23,096	$	—	$	—	$	23,096
Restricted cash (money market funds)		34,950		—		—		34,950
U.S. government agency securities		—		3,607		—		3,607
Municipal bonds		—		296		—		296
Corporate notes		—		10,587		—		10,587

Total financial assets	$	58,046	$	14,490	$	—	$	72,536

Financial liabilities:
Derivative liability	$	—	$	—	$	676	$	676

Total financial liabilities	$	—	$	—	$	676	$	676


	December 31, 2014
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	1,496	$	—	$	—	$	1,496
Restricted cash (money market funds)		50		—		—		50

Total financial assets	$	1,546	$		$	—	$	1,546

Financial liabilities:
Warrant for convertible preferred stock liability	$	—	$	—	$	391	$	391

Total financial liabilities	$	—	$	—	$	391	$	391

The fair value of the liability related to the warrant for convertible preferred stock is measured using the Black-Scholes option-pricing model. Inputs used to determine the estimated fair value of the warrant liability include the estimated fair value of the underlying convertible preferred stock at the valuation measurement date, the remaining contractual term of the warrant, risk-free interest rates, and expected dividends on and expected volatility of the price of the underlying preferred stock.

The following table presents the activity for the liability related to the warrant for convertible preferred stock measured at estimated fair value using unobservable inputs for the nine months ended September 30, 2015 (in thousands):


Balance as of December 31, 2014	$	391
Issuance of preferred stock warrants		474
Change in fair value included in interest and other income, net		(91	)
Reclassification of warrant liability to equity upon conversion to common stock warrants		(774	)

Balance as of September 30, 2015	$	—

The fair value of the derivative liability is measured using the Black-Scholes option-pricing valuation model. Inputs used to determine the estimated fair value of the conversion option include the fair value of the underlying common stock at the valuation measurement date, the remaining contractual term of the conversion option, risk-free interest rates, and expected dividends on and expected volatility of the price of the underlying common stock. In addition, the Company estimated the convertible redeemable note exchange rate based on an analysis of its actual exchange of notes for cash redemption or exchange of notes for conversion to common stock. See Note 7 for further detail.

The following table presents the activity for the derivative liability measured at estimated fair value using unobservable inputs as of September 30, 2015 (in thousands):


Balance as of December 31, 2014	$	—
Issuance of derivative issued with the redeemable convertible notes		1,455
Change in fair value included in interest and other income, net		(740	)
Gain on extinguishment of redeemable convertible notes		(39	)

Balance as of September 30, 2015	$	676

- 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

Financial Instruments

9 Months Ended

Sep. 30, 2015

Financial Instruments

4.	Financial Instruments

Cash equivalents, restricted cash and short-term and long-term investments, all of which are classified as available-for-sale securities, consisted of the following (in thousands):


September 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Money market funds	$	23,096	$	—	$	—	$	23,096
Restricted cash		34,950		—		—		34,950
U.S. government agency securities		3,605		2		—		3,607
Municipal bonds		295		1		—		296
Corporate notes		10,574		13		—		10,587

Total financial assets	$	72,520	$	16	$	—	$	72,536

Classified as:
Cash and cash equivalents							$	23,096
Restricted cash								34,950
Short-term investments								13,665
Long-term investments								825

							$	72,536


December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Money market funds	$	1,496	$	—	$	—	$	1,496
Restricted cash		50		—		—		50

Total financial assets	$	1,546	$	—	$	—	$	1,546

Classified as:
Cash and cash equivalents							$	1,496
Restricted cash								50

							$	1,546

As of September 30, 2015, the remaining contractual maturities of available-for-sale securities were less than two years. There have been no significant realized gains or losses on available-for-sale securities for the periods presented.

Reverse Merger

9 Months Ended

Sep. 30, 2015

Reverse Merger

5.	Reverse Merger

Old Catalyst completed the Merger with Targacept as discussed in Note 1. Based on the terms of the Merger, Old Catalyst was deemed the acquiring company for accounting purposes, and the transaction has been accounted for as a reverse acquisition under the asset acquisition method of accounting in accordance with U.S. GAAP. Accordingly, the assets and liabilities of Targacept have been recorded as of the Merger closing date at estimated fair value.

Immediately prior to and in connection with the Merger, each share of Old Catalyst preferred stock outstanding was converted into shares of Old Catalyst common stock at ratios determined in accordance with the Old Catalyst certificate of incorporation then in effect. Under the terms of the Merger Agreement, at the effective time of the Merger, the Company issued shares of its common stock to Old Catalyst stockholders, at an exchange rate of 0.0382 shares of common stock, after taking into account the Reverse Stock Split, in exchange for each share of Old Catalyst common stock outstanding immediately prior to the Merger. The exchange rate was calculated by a formula that was determined through arms-length negotiations between Targacept and Old Catalyst. The Company assumed all of the outstanding options, whether or not vested, under the Catalyst 2004 Stock Plan, as amended (the “Catalyst Plan”), all of the standalone options of Old Catalyst that were not issued under the Catalyst Plan, and the warrants of Old Catalyst, whether or not vested, outstanding immediately prior to the Merger, with such options and warrants henceforth representing the right to purchase a number of shares of the Company’s common stock equal to 0.0382 multiplied by the number of shares of Old Catalyst common stock previously represented by such options and warrants. For accounting purposes, the Company is also deemed to have assumed the Targacept 2015 Stock Incentive Plan, the Targacept 2006 Stock Incentive Plan and the Targacept 2000 Equity Incentive Plan, as well as a standalone inducement stock option to Targacept’s former chief executive office upon commencement of his employment with Targacept in December 2012 (together, the “Targacept Plans and Options”).

Immediately after the Merger, there were 11,416,984 shares of the Company’s common stock outstanding and, Old Catalyst equity holders beneficially owned approximately 59% of the common stock of the Company.

Purchase Consideration

The purchase price for Targacept on August 20, 2015, the closing date of the Merger, was as follows (in thousands):


Estimated fair value of shares issued	$	34,664
Estimated fair value of awards assumed		1,955
Estimated fair value of redeemable convertible notes		37,073

Estimated total purchase price of net assets acquired, including assumed debt	$	73,692

Allocation of Purchase Consideration

Under the acquisition method of accounting, the total purchase price was allocated to tangible and identifiable intangible assets acquired and liabilities assumed of Targacept on the basis of their estimated fair values as of the transaction closing date on August 20, 2015.

The following table summarizes the allocation of the purchase consideration to the assets acquired and liabilities assumed based on their fair values as of August 20, 2015 (in thousands):


Cash, cash equivalents and investments in marketable securities	$	41,154
Restricted cash		37,000
Accounts receivable		318
Prepaid and other current assets		183
Accounts payable and accrued liabilities		(4,963	)

Estimated total purchase price of net assets acquired, including assumed debt	$	73,692

The Company believes that the historical values of Targacept’s current assets and current liabilities approximate fair value based on the short-term nature of such items.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

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-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Convertible Notes

9 Months Ended

Sep. 30, 2015

Convertible Notes

7.	Redeemable Convertible Notes

On August 19, 2015, the Company issued to its stockholders non-interest bearing redeemable convertible notes (the “Notes”) in the aggregate principal amount of $37.0 million, which is approximately $1.08 per share of the Company’s common stock as of the record date, or $7.56 per share after giving effect to the Reverse Stock Split (the “Pre-Closing Dividend”). The notes do not bear interest. The principal amounts under notes are convertible, at the option of each noteholder, into cash or post Merger into shares of the Company’s common stock at a conversion rate of $9.19 per share (after taking into account the Reverse Stock Split), and are payable in cash, if not previously redeemed or converted, at maturity on February 19, 2018, the 30-month anniversary of the closing of the issuance of the Notes.

In connection with the Pre-Closing Dividend, on August 19, 2015, Targacept entered into an indenture (the “Indenture”) with American Stock Transfer & Trust Company, LLC, as trustee, and an escrow agreement with American Stock Transfer & Trust Company, LLC and Delaware Trust Company, LLC, as escrow agent, under which $37.0 million, which represents the initial principal amount of the convertible notes, was deposited in a segregated escrow account for the benefit of the holders of the notes in order to facilitate the payment of the notes upon redemption or at maturity (the amount of such deposit together with interest accrued and capitalized thereon, the “Escrow Funds”). The Notes are the Company’s secured obligation, and the Indenture does not limit its other indebtedness, secured or unsecured.

Holders of the Notes may submit conversion notices, which are irrevocable, instructing the trustee to convert such the Notes into shares of the common stock at a conversion price of $9.19 per share. Following each conversion date, the Company will issue the number of whole shares of common stock issuable upon conversion as promptly as practicable (and in any event within 10 business days). The trustee will in turn release to the Company the respective amount of restricted cash to cover the stock issuance.

The conversion to common stock feature of the Notes was determined to be an derivative liability requiring bifurcation and separate accounting. The fair value of such conversion feature at issuance was determined to be $1.5 million. The Company estimated the fair value of the conversion option using the Black-Scholes option-pricing valuation model with the following assumptions: expected term of 2.25 years, risk-free interest rate of 0.84%, expected volatility of 70.0%, anticipated future exchange rate of the Notes and a dividend yield of 0%.

The bifurcation of the derivative liability from the estimated fair value of the Notes of $37.1 million at issuance resulted in a debt discount of $1.4 million. The Company has elected to accrete the entire debt discount as interest expense immediately subsequent to the Merger. In addition, changes in the fair value of the derivative liability will be recorded within interest and other income, net in the statement of operations. The Company will periodically remeasure the derivative liability to fair value until the earlier of the conversion, redemption or maturity of the redeemable convertible notes.

For the three and nine months ended September 30, 2015, the Company recognized interest expense of $1.4 million related to the amortization of the debt discount within interest expense on the Company’s statement of operations as the redeemable convertible notes are immediately fully redeemable at the option of the holders.

As of September 30, 2015, $2.2 million of the Notes were redeemed and $68,000 of the Notes were converted into common stock. The Company recognized $39,000 of gain on the extinguishment of redeemable convertible notes upon the redemption of the Notes for the three and nine months ended September 30, 2015.

Related Party Debt

Convertible Notes

6.	Convertible Notes – Related Parties

In May and June 2015, Old Catalyst issued and sold convertible promissory notes in a series of closings in the aggregate principal amount of $1.9 million to existing stockholders, together with warrants to purchase shares of either the Old Catalyst’s Series E preferred stock or the capital stock issued during the next financing. The convertible promissory notes accrue interest at a rate of 12% per annum and will mature one year from the date of issuance. If Old Catalyst, prior to the payment in full of the convertible promissory notes, issues and sells shares of preferred stock or common stock in a single transaction or series of related transactions for aggregate cash proceeds to the Company of at least $3.0 million (excluding any amount invested by cancellation of the indebtedness represented by the convertible promissory notes), the outstanding principal amount and unpaid accrued interest of the convertible promissory notes will be automatically converted into shares of the securities sold in such financing at a conversion price equal to the price per share paid by investors for such securities in the financing. Alternatively, if Old Catalyst, prior to the payment in full of the convertible promissory notes, issues and sells shares of preferred stock of an equity financing of preferred stock or common stock for aggregate cash proceeds to Old Catalyst of less than $3.0 million, the outstanding principal amount and unpaid accrued interest of the convertible promissory notes may be converted, at the option of the holder, into the same type of securities issued in such financing at a conversion price equal to the price per share paid by investors for such securities in the financing. In addition, at any time prior to repayment or conversion in full of the convertible promissory notes, the outstanding principal amount and unpaid accrued interest of the convertible promissory note may be converted, at the option of the holder, into shares of Series E Preferred Stock at a conversion rate of $1.2706 per share.

In connection with the debt financing, Old Catalyst also issued and sold to each investor purchasing a convertible promissory note a warrant to purchase equity securities of the same type that the principal amount of the convertible promissory note issued to such investor converts into. The warrants are exercisable for up to a number of shares equal to the quotient of: (a) 25% multiplied by the principal amount of the convertible promissory note issued to such investor divided by (b) the stock purchase price equal to: (i) in the case the notes convert in connection with a financing the price per share of the securities paid by investors in such financing or (ii) in the case that the warrant shares are Series E Preferred Stock, $1.2706 per share. The purchase price for each warrant was equal to 0.1% of the principal amount of the corresponding convertible promissory note. The exercise price for the warrant shares is equal to the stock purchase price.

The Company recorded the aggregate fair value of the warrants of $474,000 as a debt discount and convertible preferred stock warrant liability upon issuance of the convertible notes. The debt discount is accreted as additional interest expense over the term of the convertible promissory notes. The Company estimated the fair value of the warrants using an option-pricing valuation model with the following assumptions: expected term of five years, risk-free interest rate of 0.11% and 0.18%, expected volatility of 80.0% and a dividend yield of 0%.

For the three and nine months ended September 30, 2015, the Company recognized interest expense of $39,000 and $96,000 related to the accrued interest and amortization of the debt discount within interest expense on the Company’s statement of operations and comprehensive loss.

As the recipients of the convertible promissory notes each have an equity ownership in the Company, the convertible promissory notes are considered to be a related-party transaction.

In conjunction with the second closing of the Series F convertible preferred stock financing discussed in Note 8, Old Catalyst and the majority holders of the Notes amended the Notes such that the closing constituted a qualified financing and, accordingly, the total outstanding principal amount of the Notes of $1.9 million and all unpaid accrued interest of $30,000, were converted into 1,511,723 shares of Series F convertible preferred stock and warrants for the purchase of 372,045 shares of Series F convertible preferred stock were issued to the Notes holders in connection with the conversion of the Notes to Series F convertible preferred stock. All preferred stock and warrants were converted to common stock and warrants to purchase common stock upon the closing of the Merger.

Convertible Preferred Stock and Warrants

9 Months Ended

Sep. 30, 2015

Convertible Preferred Stock and Warrants

8.	Convertible Preferred Stock and Warrants

In January 2015, Old Catalyst completed a Series F convertible preferred stock offering that generated cash proceeds of $3.3 million, net of $74,000 of issuance costs. In the offering, Old Catalyst issued 2,623,650 shares of Series F convertible preferred stock at a price of $1.2706 per share. The Series F convertible preferred stock had a conversion rate of 1:10 such that each individual share of Series F convertible preferred stock was convertible into ten shares of common stock. In July 2015, Old Catalyst completed a second closing of a Series F convertible preferred stock financing and issued 3,164,872 shares for cash proceeds of $4.0 million, net of $22,000 of issuance costs.

As discussed in Note 5, all outstanding shares of Old Catalyst’s convertible preferred stock and warrants to purchase convertible preferred stock were converted into shares of the Company’s common stock and warrants to purchase common stock upon completion of the merger.

Stock Based Compensation

9 Months Ended

Sep. 30, 2015

Stock Based Compensation

9.	Stock Based Compensation

As discussed in Note 5, the Company assumed all of the outstanding options, whether or not vested, under the Catalyst Plan, all of the standalone options of Old Catalyst that were not issued under the Catalyst Plan, whether or not vested, outstanding immediately prior to the Merger, with such options henceforth representing the right to purchase a number of shares of the Company’s common stock equal to 0.0382 multiplied by the number of shares of Old Catalyst common stock previously represented by such options. For accounting purposes, however, the Company is instead deemed to have assumed the Targacept Plans and Options (together with the Catalyst Plan and the standalone Catalyst options, the “Plans”).

The following table summarizes stock option activity under the Plans including stock options granted to non-employees, and related information:


	Number of Shares Underlying Outstanding Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)
Outstanding — December 31, 2014		250,255		$	8.97		5.51
Options granted		24,085		$	6.66
Options exercised		(3,820	)	$	3.38
Options canceled		(81,994	)	$	28.38
Options assumed in merger		1,420,823		$	15.16

Outstanding — September 30, 2015		1,609,349		$	13.43		2.45

Exercisable — September 30, 2015		1,578,024		$	13.52		2.33

Vested and expected to vest — September 30, 2015		1,609,349		$	13.43		2.45

In connection with the Merger, the Company assumed stock options covering an aggregate of 1,420,823 shares of common stock.

Total stock-based compensation recognized was as follows (in thousands):


	Three Months ended September 30				Nine Months ended September 30
	2015		2014		2015		2014
Research and development	$	13	$	20	$	37	$	61
General and administrative		39		36		98		128

Total stock-based compensation	$	52	$	56	$	135	$	189

As of September 30, 2015, the Company had unrecognized employee stock-based compensation expense of $177,000, related to unvested stock awards, which is expected to be recognized over an estimated weighted-average period of 1.97 years.

Collaborations

9 Months Ended

Sep. 30, 2015

Collaborations

10.

Collaborations

Pfizer

On August 20, 2013, the Company and Pfizer, Inc. (“Pfizer”) entered into an amendment to the Factor VIIa collaboration agreement whereby the companies agreed to provide specific mutual releases and covenants and modify certain milestone payment schedules in the agreement. Per the amendment, Pfizer agreed to make two non-refundable annual license maintenance payments to the Company, each $1.5 million, payable on August 1, 2014 and August 1, 2013. The annual license maintenance payments received were being amortized to contract revenue over the estimated expected performance period under the arrangement, which the Company estimated to end August 1, 2015.

On April 2, 2015, Pfizer notified the Company that it was exercising its right to terminate in its entirety the collaboration agreement. The termination became effective 60 days after the Company’s receipt of the termination notice. On June 1, 2015, the license and certain rights under the research and license agreement terminated and reverted back to the Company. Pfizer is in the process of transferring clinical trial data, regulatory documentation and related technology under the research and license agreement to the Company. The Company plans to continue clinical development of this product candidate. The Company revised the expected period of performance to end on June 1, 2015, which was the effective termination of all performance obligations of the Company under the research and license agreement.

Contract revenue related to the agreement with Pfizer was zero and $438,000 during the three months ended September 30, 2015 and 2014, respectively, and $1.3 million and $813,000 during the nine months ended September 30, 2015 and 2014, respectively. The deferred revenue balance related to the Pfizer collaboration was zero and $1.3 million as of September 30, 2015 and December 31, 2014, respectively.

ISU Abxis

On June 16, 2013, the Company entered into a license and collaboration agreement with ISU Abxis, whereby the Company licensed its proprietary human Factor IX products to ISU Abxis for initial development in South Korea. Under the terms of the agreement, ISU Abxis is responsible for development and manufacturing of the licensed products through Phase 1 clinical trials. Until the completion of Phase 1 development, ISU Abxis also has a right of first refusal with respect to commercialization rights for the licensed products in South Korea. The Company has the sole rights and responsibility for worldwide development, manufacture and commercialization of Factor IX products after Phase 1 development, unless ISU Abxis has exercised its right of first refusal regarding commercialization rights in South Korea, in which case the Company’s rights are in the entire world excluding South Korea. ISU’s rights will also terminate in the event that the Company enters into a license agreement with another party to develop, manufacture and commercialize Factor IX products in at least two major market territories.

ISU Abxis paid the Company an up-front signing fee of $1.75 million and is obligated to pay to the Company contingent milestone-based payments on the occurrence of certain defined development events, and reimbursement for a portion of the Company’s costs relating to intellectual property filings and maintenance thereof on products. The Company is obligated to pay ISU Abxis a percentage of all net profits it receives from collaboration products.

Contract revenue of $109,000 for both of the three months ended September 30, 2015 and 2014 and $328,000 for both of the nine months ended September 30, 2015 and 2014 reflected the amortization of the up-front fee over the estimated period of the Company’s performance obligations under the agreement, which was assessed to be four years beginning in September 2013 when the agreement was executed. The deferred revenue balance related to the ISU Abxis collaboration was $839,000 and $1.2 million as of September 30, 2015, and December 31, 2014 respectively.

Net Loss per Share

9 Months Ended

Sep. 30, 2015

Net Loss per Share

11.

Net Loss per Share

The following table sets forth the computation of the basic and diluted net loss per share during the three and nine months ended September 30, 2014 and 2015 (in thousands, except share and per share data):


	Three Months Ended, September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss, basic and diluted	$	(5,051	)	$	(1,502	)	$	(9,632	)	$	(5,311	)

Weighted-average number of shares used in computing net loss per share, basic and diluted		5,410,864			368,461			2,071,161			366,455

Net loss per share, basic and diluted	$	(0.93	)	$	(4.08	)	$	(4.65	)	$	(14.49	)

Since the Company was in a loss position for all periods presented, diluted net loss per share is the same as basic net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities on an as-if converted basis that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:


	September 30,		December 31,
	2015		2014
Convertible preferred stock		—		3,338,871
Options to purchase common stock		1,609,349		250,255
Convertible preferred stock warrants		—		37,580
Common stock warrants		180,954		1,289
Redeemable convertible notes		3,783,976		—

Total		5,574,279		3,627,996

Subsequent Events

9 Months Ended

Sep. 30, 2015

Subsequent Events

12.

Subsequent events

Effective October 14, 2015 Catalyst Biosciences, Inc. issued the amended and restated 2015 Stock Incentive Plan, included in Exhibit 10.1.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2015
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, convertible preferred stock and related warrants up to the date of conversion, common stock and stock-based compensation. The Company bases its estimates on various assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company invests its excess cash in bank deposits, consisting primarily of money market mutual funds. The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents.
Restricted Cash	Restricted Cash At September 30, 2015 and December 31, 2014, the Company had restricted cash of $35.0 million and $50,000, respectively. The restricted cash at September 30, 2015, includes a deposit in a segregated escrow account for the benefit of the holders of the redeemable convertible notes in order to facilitate the payment of the redeemable convertible notes upon redemption or at maturity as discussed in Note 6. $175,000 of restricted cash serves as collateral for the Company’s corporate credit card and deposit for its facility lease.
Investments	Investments All investments have been classified as “available-for-sale” and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such designation as of each balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of comprehensive loss. Realized gains and losses and declines in fair value determined to be other-than-temporarily impaired, if any, on available-for-sale securities are included in interest and other income, net. The cost of securities sold is based on the specific-identification method. Interest on marketable securities is included in interest and other income, net.
Derivative Liability	Derivative Liability The derivative issued in connection with the redeemable convertible notes, which are convertible into shares of the Company’s common stock, are classified as derivative liabilities at their estimated fair value. The derivative is subject to remeasurement at the end of each reporting period, with changes in fair value recognized as a component of interest and other income, net, in the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the conversion, redemption or maturity of the redeemable convertible notes.
Revenue Recognition	Revenue Recognition The Company enters into collaboration arrangements that may include the receipt of payments for up-front license fees, success-based milestone payments; full time equivalent based payments for research services, and royalties on any future sales of commercialized products that result from the collaborations. Revenue related to collaborations is recognized when the four basic criteria for revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) transfer of technology has been completed or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Revenue recognition for multiple element revenue arrangements will have deliverables associated with the arrangement divided into separate units of accounting provided that (i) a delivered item has value to the customer on a standalone basis and (ii) if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor. As a biotechnology company with unique and specialized technological undelivered performance obligations associated with its collaborations, the Company’s multiple element arrangements most often involve deliverables and consideration that do not meet the criteria for having stand-alone value. Deliverables and performance obligations are accounted for under a single unit of accounting when they do not have stand-alone value and the related consideration is recognized as revenue over the estimated period of when the performance obligations are to be performed. The revenue is recognized on a proportional performance basis when the levels of the performance obligations under an arrangement can be reasonably estimated and on a straight-line basis when they cannot. The Company’s collaboration agreements entitle it to additional payments upon the achievement of performance-based milestones related to product development, regulatory actions and commercial events in certain geographic areas. Milestones that are not deemed probable or that are tied to counter-party performance are not included in the Company’s revenue until the performance conditions are met. If a collaborative agreement milestone is deemed to be substantive, as defined in the accounting rules, the Company is permitted to recognize revenue related to the milestone payment in its entirety. Refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations “Revenue Recognition” section for further details. In the event milestones are deemed non-substantive, the Company recognizes, and defers if applicable, payments for the achievement of such non-substantive milestones over the estimated period of performance applicable to each collaborative agreement using the proportional performance method or on a straight-line basis, as appropriate. Collaborative agreement amounts received prior to satisfying revenue recognition criteria are recorded as deferred revenue in the accompanying balance sheets. Deferred revenue is recorded on the Company’s balance sheet as short-term or long-term based on its best estimate as to when such revenue will be recognized. Short-term deferred revenue consists of amounts that the Company expects to recognize as revenue in the next 12 months. Amounts that the Company expects will not be recognized prior to the next 12 months are classified as long-term deferred revenue. The Company’s performance obligations under its collaboration arrangements also consist of participation on steering committees and the performance of other research and development and business development services. The timing for satisfying these performance obligations can be difficult to estimate and can be subject to change over the course of these agreements. A change in the estimated timing for satisfying the Company’s performance obligations could change the timing and amount of revenue that the Company recognizes and records in future periods.
Research and Development Expense	Research and Development Expenses Research and development costs are expensed as incurred. Research and development costs consist of payroll and other personnel-related expenses, laboratory supplies and reagents, contract research and development services, and consulting costs, as well as allocations of facilities and other overhead costs. Under the Company’s collaboration agreements, certain specific expenditures are reimbursed by third parties. During the three months ended September 30, 2015 and 2014 and the nine months ended September 30, 2015 and 2014, the Company recorded a reduction to research and development expenses of $418,000, $90,000, $887,000 and $285,000, respectively.
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive given the net loss of the Company.

- Definition

Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.

+ References + Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Assets and Liabilities Measured at Fair Value

The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands):


	September 30, 2015
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	23,096	$	—	$	—	$	23,096
Restricted cash (money market funds)		34,950		—		—		34,950
U.S. government agency securities		—		3,607		—		3,607
Municipal bonds		—		296		—		296
Corporate notes		—		10,587		—		10,587

Total financial assets	$	58,046	$	14,490	$	—	$	72,536

Financial liabilities:
Derivative liability	$	—	$	—	$	676	$	676

Total financial liabilities	$	—	$	—	$	676	$	676


	December 31, 2014
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	1,496	$	—	$	—	$	1,496
Restricted cash (money market funds)		50		—		—		50

Total financial assets	$	1,546	$		$	—	$	1,546

Financial liabilities:
Warrant for convertible preferred stock liability	$	—	$	—	$	391	$	391

Total financial liabilities	$	—	$	—	$	391	$	391

Warrant

Derivative Liability Measured at Estimated Fair Value Using Unobservable Inputs


Balance as of December 31, 2014	$	391
Issuance of preferred stock warrants		474
Change in fair value included in interest and other income, net		(91	)
Reclassification of warrant liability to equity upon conversion to common stock warrants		(774	)

Balance as of September 30, 2015	$	—

Derivative

Derivative Liability Measured at Estimated Fair Value Using Unobservable Inputs

The following table presents the activity for the derivative liability measured at estimated fair value using unobservable inputs as of September 30, 2015 (in thousands):


Balance as of December 31, 2014	$	—
Issuance of derivative issued with the redeemable convertible notes		1,455
Change in fair value included in interest and other income, net		(740	)
Gain on extinguishment of redeemable convertible notes		(39	)

Balance as of September 30, 2015	$	676

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Cash Equivalents and Short-Term and Long-Term Investments Classified as Available for Sale Securities

Cash equivalents, restricted cash and short-term and long-term investments, all of which are classified as available-for-sale securities, consisted of the following (in thousands):


September 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Money market funds	$	23,096	$	—	$	—	$	23,096
Restricted cash		34,950		—		—		34,950
U.S. government agency securities		3,605		2		—		3,607
Municipal bonds		295		1		—		296
Corporate notes		10,574		13		—		10,587

Total financial assets	$	72,520	$	16	$	—	$	72,536

Classified as:
Cash and cash equivalents							$	23,096
Restricted cash								34,950
Short-term investments								13,665
Long-term investments								825

							$	72,536


December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Money market funds	$	1,496	$	—	$	—	$	1,496
Restricted cash		50		—		—		50

Total financial assets	$	1,546	$	—	$	—	$	1,546

Classified as:
Cash and cash equivalents							$	1,496
Restricted cash								50

							$	1,546

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Reverse Merger (Tables)

9 Months Ended

Sep. 30, 2015

Allocation of Purchase Consideration to Assets Acquired and Liabilities Assumed Based on Fair Values

The following table summarizes the allocation of the purchase consideration to the assets acquired and liabilities assumed based on their fair values as of August 20, 2015 (in thousands):


Cash, cash equivalents and investments in marketable securities	$	41,154
Restricted cash		37,000
Accounts receivable		318
Prepaid and other current assets		183
Accounts payable and accrued liabilities		(4,963	)

Estimated total purchase price of net assets acquired, including assumed debt	$	73,692

Targacept

Schedule of Purchase Price

The purchase price for Targacept on August 20, 2015, the closing date of the Merger, was as follows (in thousands):


Estimated fair value of shares issued	$	34,664
Estimated fair value of awards assumed		1,955
Estimated fair value of redeemable convertible notes		37,073

Estimated total purchase price of net assets acquired, including assumed debt	$	73,692

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Summary of Option Activity

The following table summarizes stock option activity under the Plans including stock options granted to non-employees, and related information:


	Number of Shares Underlying Outstanding Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)
Outstanding — December 31, 2014		250,255		$	8.97		5.51
Options granted		24,085		$	6.66
Options exercised		(3,820	)	$	3.38
Options canceled		(81,994	)	$	28.38
Options assumed in merger		1,420,823		$	15.16

Outstanding — September 30, 2015		1,609,349		$	13.43		2.45

Exercisable — September 30, 2015		1,578,024		$	13.52		2.33

Vested and expected to vest — September 30, 2015		1,609,349		$	13.43		2.45

Summary of Stock-Based Compensation Recognized

Total stock-based compensation recognized was as follows (in thousands):


	Three Months ended September 30				Nine Months ended September 30
	2015		2014		2015		2014
Research and development	$	13	$	20	$	37	$	61
General and administrative		39		36		98		128

Total stock-based compensation	$	52	$	56	$	135	$	189

Net Loss per Share (Tables)

9 Months Ended

Sep. 30, 2015

Basic and Diluted Net Loss Per Share


	Three Months Ended, September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss, basic and diluted	$	(5,051	)	$	(1,502	)	$	(9,632	)	$	(5,311	)

Weighted-average number of shares used in computing net loss per share, basic and diluted		5,410,864			368,461			2,071,161			366,455

Net loss per share, basic and diluted	$	(0.93	)	$	(4.08	)	$	(4.65	)	$	(14.49	)

Anti-dilutive Security not Included In Diluted per Share Calculations


	September 30,		December 31,
	2015		2014
Convertible preferred stock		—		3,338,871
Options to purchase common stock		1,609,349		250,255
Convertible preferred stock warrants		—		37,580
Common stock warrants		180,954		1,289
Redeemable convertible notes		3,783,976		—

Total		5,574,279		3,627,996

Nature of Operations and Basis of Presentation - Additional Information (Detail) $ in Thousands		9 Months Ended
	Aug. 20, 2015 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Organization and Nature of Operations [Line Items]
Corporation incorporated		Mar. 07, 2009
Accumulated deficit		$ 125,907	$ 116,275
Cash, cash equivalents and investments in marketable securities	$ 41,154	$ 37,600
Targacept
Organization and Nature of Operations [Line Items]
Stock split ratio	7

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Significant Accounting Policies [Line Items]
Restricted cash	$ 34,825,000		$ 34,825,000		$ 50,000
Reduction to research and development expense	418,000	$ 90,000	887,000	$ 285,000
Collateral for Corporate Credit Card and Deposit
Significant Accounting Policies [Line Items]
Restricted cash	$ 175,000		$ 175,000

Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	$ 72,536	$ 1,546
Liabilities, fair value	676	391
U.S. Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	3,607
Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	296
Corporate Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	10,587
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	23,096	1,496
Restricted cash (money market funds)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	34,950	50
Warrant For Convertible Preferred Stock Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		391
Derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	676
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	58,046	1,546
Fair Value, Inputs, Level 1 \| Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	23,096	1,496
Fair Value, Inputs, Level 1 \| Restricted cash (money market funds)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	34,950	50
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	14,490
Fair Value, Inputs, Level 2 \| U.S. Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	3,607
Fair Value, Inputs, Level 2 \| Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	296
Fair Value, Inputs, Level 2 \| Corporate Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	10,587
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	676	391
Fair Value, Inputs, Level 3 \| Warrant For Convertible Preferred Stock Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		$ 391
Fair Value, Inputs, Level 3 \| Derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	$ 676

Liability Related to Warrant for Convertible Preferred Stock Measured at Estimated Fair Value Using Unobservable Inputs (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance as of December 31, 2014	$ 391
Issuance of preferred stock warrants	474
Change in fair value included in interest and other income, net	(91)
Reclassification of warrant liability to equity upon conversion to common stock warrants	$ (774)

Derivative Liability Measured at Estimated Fair Value Using Unobservable Inputs (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Issuance of derivative issued with the redeemable convertible notes	$ 1,455
Change in fair value included in interest and other income, net	(740)
Gain on extinguishment of redeemable convertible notes	(39)
Balance as of September 30, 2015	$ 676

Cash Equivalents and Short-Term and Long-Term Investments Classified as Available for Sale Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 72,520	$ 1,546
Gross Unrealized Gains	16
Gross Unrealized Losses	0	0
Estimated Fair Value	72,536	1,546
Restricted cash (money market funds)
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	34,950	50
Gross Unrealized Losses	0	0
Estimated Fair Value	34,950	50
Money Market Funds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	23,096	1,496
Gross Unrealized Losses	0	0
Estimated Fair Value	23,096	1,496
U.S. Government Agency Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,605
Gross Unrealized Gains	2
Gross Unrealized Losses	0
Estimated Fair Value	3,607
Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	295
Gross Unrealized Gains	1
Gross Unrealized Losses	0
Estimated Fair Value	296
Corporate Notes
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,574
Gross Unrealized Gains	13
Gross Unrealized Losses	0
Estimated Fair Value	10,587
Cash Equivalents
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses	0	0
Estimated Fair Value	23,096	$ 1,496
Short-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses	0
Estimated Fair Value	13,665
Long-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses	0
Estimated Fair Value	$ 825

Financial Instruments - Additional Information (Detail)	9 Months Ended
Financial Instruments - Additional Information (Detail)	Sep. 30, 2015 USD ($)
Financial Instrument [Line Items]
Significant realized gains or losses on available-for-sale securities	$ 0
Maximum
Financial Instrument [Line Items]
Available for sale securities contractual maturities	2 years

Reverse Merger - Additional Information (Detail) - shares	Sep. 30, 2015	Mar. 05, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Common stock, shares outstanding	11,411,680		370,944
Merger Agreement
Business Acquisition [Line Items]
Common stock exchange rate	0.0382	0.0382
Common stock, shares outstanding		11,416,984
Merger Agreement \| Old Catalysts
Business Acquisition [Line Items]
Expected ownership percentage		59.00%

Schedule of Purchase Price (Detail) - Targacept $ in Thousands	Aug. 20, 2015 USD ($)
Business Acquisition [Line Items]
Estimated fair value of shares issued	$ 34,664
Estimated fair value of awards assumed	1,955
Estimated fair value of redeemable convertible notes	37,073
Estimated total purchase price of net assets acquired, including assumed debt	$ 73,692

Allocation of Purchase Consideration to Assets Acquired and Liabilities Assumed Based on Fair Values (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Aug. 20, 2015
Business Acquisition [Line Items]
Cash, cash equivalents and investments in marketable securities	$ 37,600	$ 41,154
Restricted cash		37,000
Accounts receivable		318
Prepaid and other current assets		183
Accounts payable and accrued liabilities		(4,963)
Estimated total purchase price of net assets acquired, including assumed debt		$ 73,692

Convertible Notes - Related Parties - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended	9 Months Ended
	Jul. 29, 2015	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2015	Aug. 19, 2015	May 31, 2015
Debt Instrument [Line Items]
Interest expense related to accrued interest and amortization of debt discount			$ 39,000,000	$ 96,000,000
Series F Convertible Preferred Stock
Debt Instrument [Line Items]
Convertible notes, shares issued upon conversion	1,511,723
Convertible preferred stock, warrants issued	372,045
Convertible Notes
Debt Instrument [Line Items]
Aggregate principal amount of convertible promissory notes issued and sold	$ 1,900,000				$ 37,000,000
Preferred stock conversion rate per share			$ 9.19	$ 9.19	$ 1.08
Fair value assumptions, expected term				2 years 3 months
Fair value assumptions, risk-free interest rate				0.84%
Fair value assumptions, expected volatility				70.00%
Fair value assumptions, dividend yield				0.00%
Convertible notes, accrued interest	$ 30,000
Related Party \| Warrant
Debt Instrument [Line Items]
Aggregate fair value of warrants			$ 474,000	$ 474,000
Fair value assumptions, expected term				5 years
Fair value assumptions, expected volatility				80.00%
Fair value assumptions, dividend yield				0.00%
Related Party \| Warrant \| Minimum
Debt Instrument [Line Items]
Fair value assumptions, risk-free interest rate				0.11%
Related Party \| Warrant \| Maximum
Debt Instrument [Line Items]
Fair value assumptions, risk-free interest rate				0.18%
Related Party \| Convertible Notes Payable
Debt Instrument [Line Items]
Aggregate principal amount of convertible promissory notes issued and sold		$ 1,900,000				$ 1,900,000
Convertible debt interest rate		12.00%
Debt instrument maturity period		1 year
Warrants exercisable percentage			25.00%	25.00%
Warrants purchase percentage				0.10%
Related Party \| Convertible Notes Payable \| Minimum
Debt Instrument [Line Items]
Aggregate cash proceeds from issuance of debt		$ 3,000,000
Related Party \| Convertible Notes Payable \| Series E Preferred Stock
Debt Instrument [Line Items]
Preferred stock conversion rate per share		$ 1.2706

Redeemable Convertible Notes - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Aug. 19, 2015	Jul. 29, 2015
Debt Instrument [Line Items]
Conversion of convertible notes in to common stock, value		$ 68,000
Gain on extinguishment of redeemable convertible notes	$ 39,000	$ 39,000
Convertible Notes
Debt Instrument [Line Items]
Convertible notes, total outstanding principal amount			$ 37,000,000	$ 1,900,000
Redeemable convertible notes, conversion per share price	$ 9.19	$ 9.19	$ 1.08
Convertible notes, maturity date		Feb. 19, 2018
Convertible notes, maturity period		30 months
Redeemable convertible notes, threshold trading days		10 days
Redeemable convertible notes, conversion feature		$ 1,500,000
Redeemable convertible notes, expected term		2 years 3 months
Redeemable convertible notes, risk free interest rate		0.84%
Redeemable convertible notes, expected volatility		70.00%
Redeemable convertible notes, dividend yield		0.00%
Redeemable convertible notes, estimated fair value	$ 37,100,000	$ 37,100,000
Redeemable convertible notes, debt discount	1,400,000	1,400,000
Redeemable convertible notes, interest expense	1,400,000	1,400,000
Redeemable convertible notes, redeemed	$ 2,200,000	2,200,000
Conversion of convertible notes in to common stock, value		$ 68,000
Convertible Notes \| After Reverse Stock Split
Debt Instrument [Line Items]
Redeemable convertible notes, conversion per share price	$ 9.19	$ 9.19	$ 7.56

Convertible Preferred Stock and Warrants - Additional Information (Detail) - USD ($)	1 Months Ended		9 Months Ended
	Jul. 31, 2015	Jan. 31, 2015	Sep. 30, 2015	Sep. 30, 2014
Debt Instrument [Line Items]
Convertible preferred stock, principal offer amount			$ 7,259,000	$ 4,982,000
Series F Convertible Preferred Stock
Debt Instrument [Line Items]
Convertible preferred stock, principal offer amount	$ 4,000,000	$ 3,300,000
Convertible preferred stock, issuance cost	$ 22,000	$ 74,000
Convertible preferred stock, shares issued	3,164,872	2,623,650
Convertible preferred stock, shares issued per share value		$ 1.2706
Convertible preferred stock, conversion rate into common stock shares		110.00%
Convertible preferred stock, conversion shares into common stock shares		10

Stock Based Compensation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015 USD ($) shares	Mar. 05, 2015 shares
Targacept
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options assumed in merger	1,420,823
Merger Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock exchange rate	0.0382	0.0382
2004 Stock Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized employee stock based compensation expense \| $	$ 177,000
Unrecognized employee stock based compensation expense, period for recognition	1 year 11 months 19 days

Summary of Option Activity (Detail) - 2004 Stock Plan - Non Employee Stock Option - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Number of Shares Underlying Outstanding Options
Number of Shares Underlying Outstanding Options, Beginning Balance	250,255
Number of Shares Underlying Outstanding Options, Options granted	24,085
Number of Shares Underlying Outstanding Options, Options exercised	(3,820)
Number of Shares Underlying Outstanding Options, Options canceled	(81,994)
Number of Shares Underlying Outstanding Options, Options assumed in merger	1,420,823
Number of Shares Underlying Outstanding Options, Ending Balance	1,609,349	250,255
Number of Shares Underlying Outstanding Options, Exercisable- September 30, 2015	1,578,024
Number of Shares Underlying Outstanding Options, Vested and expected to vest - September 30, 2015	1,609,349
Weighted- Average Exercise Price
Weighted- Average Exercise Price, Beginning Balance	$ 8.97
Weighted- Average Exercise Price, Options exercised, Options granted	6.66
Weighted- Average Exercise Price, Options exercised	3.38
Weighted- Average Exercise Price, Options canceled	28.38
Weighted- Average Exercise Price, Options assumed in merger	15.16
Weighted- Average Exercise Price, Ending Balance	13.43	$ 8.97
Weighted- Average Exercise Price, Exercisable- September 30, 2015	13.52
Weighted- Average Exercise Price, Vested and expected to vest - September 30, 2015	$ 13.43
Weighted Average Remaining Contractual Term
Outstanding - December 31, 2014	2 years 5 months 12 days	5 years 6 months 4 days
Exercisable - September 30, 2015	2 years 3 months 29 days
Vested and expected to vest - September 30, 2015	2 years 5 months 12 days

Summary of Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 52	$ 56	$ 135	$ 189
Research and Development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	13	20	37	61
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 39	$ 36	$ 98	$ 128

Collaborations - Additional Information (Detail)				3 Months Ended		9 Months Ended
Collaborations - Additional Information (Detail)	Apr. 02, 2015	Sep. 16, 2013 USD ($)	Aug. 20, 2013 USD ($) Licenses	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Contract revenue				$ 109,000	$ 547,000	$ 1,641,000	$ 1,141,000
Pfizer Inc
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Number of Non-refundable annual license maintenance payments \| Licenses			2
Non-refundable annual license maintenance payments			$ 1,500,000
Effective termination notice period	60 days
Deferred revenue				0		0		$ 1,300,000
Collaboration contract revenue				0	438,000	1,300,000	813,000
Pfizer Inc \| Period 1
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
license maintenance payable period			Aug. 01, 2014
Pfizer Inc \| Period 2
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
license maintenance payable period			Aug. 01, 2013
ISU Abxis
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Deferred revenue				839,000		839,000		$ 1,200,000
Contract revenue				$ 109,000	$ 109,000	$ 328,000	$ 328,000
Deferred revenue recognition period				4 years
ISU Abxis \| Up Front Payment
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Amount received for research and development process		$ 1,750,000

Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net loss, basic and diluted	$ (5,051)	$ (1,502)	$ (9,632)	$ (5,311)
Weighted-average number of shares used in computing net loss per share, basic and diluted	5,410,864	368,461	2,071,161	366,455
Net loss per share, basic and diluted	$ (0.93)	$ (4.08)	$ (4.65)	$ (14.49)

- Definition

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

+ References + Details

Anti-dilutive Security not Included In Diluted per Share Calculations (Detail) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	5,574,279	3,627,996
Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities		3,338,871
Options To Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	1,609,349	250,255
Convertible Preferred Stock Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities		37,580
Common Stock Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	180,954	1,289
Redeemable Convertible Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	3,783,976