Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Fair Value Measurement Financial Asset and Liabilities

Financial assets and liabilities subject to fair value measurements were as follows:


	Fair Value Measurements at September 30, 2013
	Total			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	7,522,029		$	7,522,029	$	—	$	—
Money market funds		26,047,169			26,047,169		—		—
Restricted cash		404,850			404,850		—		—

Total assets	$	33,974,048		$	33,974,048	$	—	$	—

Liabilities:
Preferred stock warrant liability	$	(679,296	)	$	—	$	—	$	(679,296	)


	Fair Value Measurements at December 31, 2012
	Total			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	18,695,197		$	18,695,197	$	—	$	—
Money market funds		29,047,958			29,047,958		—		—
Restricted cash		404,850			404,850		—		—

Total assets	$	48,148,005		$	48,148,005	$	—	$	—

Liabilities:
Preferred stock warrant liability	$	(52,947	)	$	—	$	—	$	(52,947	)

Summary of Preferred Stock Warrant Liability

The following table provides a rollforward of the Company’s preferred stock warrant liability, which was the only financial instrument measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as defined in ASC 820:


Balance at December 31, 2012	$	(52,947	)
Total unrealized gains (losses) included in earnings		(626,349	)

Balance at September 30, 2013	$	(679,296	)

Estimated Useful Lives

Depreciation and amortization are computed using the straight-line method over the following estimated useful lives:


Computer equipment		3 years
Software		3 years
Furniture		10 years
Laboratory and office equipment		5 years
Leasehold improvements		Shorter of lease term or useful life

Schedule of Dilutive Securities Excluded from Computation of Diluted Net Income Per Share

Basic and diluted income (loss) per common share is computed as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net income (loss)	$	6,603,982		$	2,600,514		$	2,944,149		$	10,466,582
Less: undistributed earnings allocated to participating securities		(6,434,756	)		(2,600,514	)		(2,944,149	)		(10,466,582	)

Net income (loss) allocable to common shares	$	169,226		$	—		$	—		$	—

Basic weighted average common shares outstanding		1,184,507			1,092,307			1,463,798			1,078,145
Basic income (loss) per common share	$	0.14		$	—		$	—		$	—
Net income (loss)	$	6,603,982		$	2,600,514		$	2,944,149		$	10,466,582
Less: undistributed earnings allocated to participating securities and other add-backs to net income (loss)		(6,403,843	)		(2,600,514	)		(2,944,149	)		(10,466,582	)

Net income (loss) allocable to common shares	$	200,139		$	—		$	—		$	—

Basic weighted average common shares outstanding		1,184,507			1,092,307			1,463,798			1,078,145
Effect of dilutive securities		20,058,471			20,410,117			20,445,061			20,334,703

Diluted weighted average common shares outstanding		21,242,978			21,502,424			21,908,859			21,412,848

Diluted income (loss) per common share	$	0.01		$	—		$	—		$	—

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following common stock equivalents are included in the calculation of diluted net income (loss) per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Series A-1 Preferred Stock		2,156,114		2,156,114		2,156,114		2,156,114
Series A-2 Preferred Stock		392,274		392,274		392,274		392,274
Series B Preferred Stock		4,336,037		4,336,037		4,336,037		4,336,037
Series C Preferred Stock		5,909,906		5,909,906		5,909,906		5,909,906
Series D Preferred Stock		769,468		769,468		769,468		769,468
Series D-2 Preferred Stock		3,391,991		3,391,991		3,391,991		3,391,991
Warrants to purchase Series D-2 Preferred Stock		180,784		180,784		180,784		180,784
Stock Options		2,910,952		3,276,516		2,910,952		3,276,516

Summary of Significant Revenue [Member]

Summary of Percentage of Customer Concentration

The following table represents the percentage of all significant revenue earned in the periods indicated:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Servier		71.3	%		14.2	%		58.8	%		12.6	%
Boehringer		11.5	%		15.6	%		15.9	%		17.2	%
Gilead		10.9	%		0.0	%		13.7	%		0.0	%
Pfizer		4.5	%		7.7	%		7.3	%		7.4	%
Government Agencies		0.6	%		3.5	%		2.6	%		6.9	%
Eli Lilly		0.9	%		59.0	%		1.6	%		55.7	%

Summary of Significant Accounts Receivable[Member]

Summary of Percentage of Customer Concentration

The following table represents the percentage of all significant accounts receivable:


	September 30, 2013			December 31, 2012
Gilead		51.2	%		—
Pfizer		22.6	%		45.4	%
Boehringer		11.1	%		18.0	%
Eli Lilly		11.0	%		28.2	%
Government Agencies		4.0	%		8.4	%

- 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.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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- Definition

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

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