Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Total Revenues Earned by Partner

The following table summarizes the total revenues earned in the three months ended March 31, 2019 and 2018, respectively, by partner (in thousands). Refer to Note 4, “Collaborations and License Agreements” regarding specific details.

	Three Months Ended March 31,
	2019		2018
EUSA	$	1,611	$	1,026
Total	$	1,611	$	1,026

Summary of Cash, Cash Equivalents and Marketable Securities

Below is a summary of cash, cash equivalents and marketable securities at March 31, 2019 and December 31, 2018 (in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
March 31, 2019
Cash and cash equivalents:
Cash and money market funds	$	14,806	$	—	$	—	$	14,806
Corporate debt securities		8,677		—		—		8,677
Total cash, cash equivalents and marketable securities	$	23,483	$	—	$	—	$	23,483
December 31, 2018:
Cash and cash equivalents:
Cash and money market funds	$	16,211	$	—	$	—	$	16,211
Corporate debt securities		8,215		1		—		8,216
Total cash, cash equivalents and marketable securities	$	24,426	$	1	$	—	$	24,427

Summary of Assets And Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the assets and liabilities measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018 (in thousands):

	Fair Value Measurements as of March 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets carried at fair value:
Cash and money market funds	$	14,806	$	—	$	—	$	14,806
Corporate debt securities		—		8,677		—		8,677
Total cash, cash equivalents and marketable securities	$	14,806	$	8,677	$	—	$	23,483
Financial liabilities carried at fair value:
Total PIPE Warrant liability	$	—	$	—	$	7,859	$	7,859

	Fair Value Measurements as of December 31, 2018
	Level 1		Level 2		Level 3		Total
Financial assets carried at fair value:
Cash and money market funds	$	16,211	$	—	$	—	$	16,211
Corporate debt securities		—		8,216		—		8,216
Total cash, cash equivalents and marketable securities	$	16,211	$	8,216	$	—	$	24,427
Financial liabilities carried at fair value:
Total PIPE Warrant liability	$	—	$	—	$	16,674	$	16,674

Summary of Computation of Basic and Diluted Net Income (Loss) per Share

The following table summarizes the computation of basic and diluted net income (loss) per share for the three months ended March 31, 2019 and 2018, respectively (in thousands except per share amounts):

	Three Months Ended March 31,
	2019			2018
Basic net income (loss) attributable to AVEO common stockholders	$	555		$	(8,988	)
Less: non-cash gains attributable to the change in fair value of the PIPE    Warrant liability		(8,815	)		—
Diluted net income (loss) attributable to AVEO common stockholders	$	(8,260	)	$	(8,988	)
Weighted-average shares of common stock outstanding		132,304			118,840
Dilutive securities:
Incremental common shares issuable upon the exercise of the PIPE Warrants		527			—
Weighted-average number of common shares outstanding and dilutive    share equivalents outstanding		132,831			118,840
Basic net income (loss) per share	$	0.01		$	(0.08	)
Diluted net income (loss) per share	$	(0.06	)	$	(0.08	)

Summary of Outstanding Securities Not Included in Computation of Diluted Net Loss Per Common Share

The following table summarizes outstanding securities not included in the computation of diluted net loss per common share as the effect would have been anti-dilutive for the three months ended March 31, 2019 and 2018, respectively (in thousands):

	Outstanding at March 31,
	2019		2018
Options outstanding		10,190		10,029
PIPE Warrants outstanding		—		16,865
Settlement Warrants outstanding		2,000		—
Total		12,190		26,894

Stock-Based Compensation Expense

During the three months ended March 31, 2019 and 2018, the Company recorded the following stock-based compensation expense (in thousands):

	Three Months Ended March 31,
	2019		2018
Research and development	$	170	$	183
General and administrative		414		400
Total	$	584	$	583

Settlement Warrants

Key Assumptions Used to Value the Warrants

The key assumptions used to estimate the fair value the Settlement Warrants were as follows:

	December 31, 2017			March 31, 2018			June 30, 2018
Expected price volatility		101.52	%		96.01	%		62.74	%
Expected term (in years)		1.00			1.00			1.00
Risk-free interest rates		1.76	%		2.09	%		2.37	%
Stock price	$	2.79		$	2.90		$	2.90
Dividend yield		—			—			—

PIPE Warrants

Summary of Fair Value of Company's Warrant Liability

The following table rolls forward the fair value of the Company’s PIPE Warrant liability, the fair value of which is determined by Level 3 inputs for the three months ended March 31, 2019 (in thousands):

Fair value at January 1, 2019	$	16,674
Decrease in fair value		(8,815	)
Fair value at March 31, 2019	$	7,859

Key Assumptions Used to Value the Warrants

The key assumptions used to value the PIPE Warrants were as follows:

	Issuance			December 31, 2018			March 31, 2019
Expected price volatility		76.25	%		82.64	%		111.99	%
Expected term (in years)		5.00			2.50			2.25
Risk-free interest rates		1.22	%		2.47	%		2.27	%
Stock price	$	0.89		$	1.60		$	0.82
Dividend yield		—			—			—