Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Total Revenues Earned by Partner

The following table summarizes the total revenues earned in the three months ended March 31, 2020 and 2019, respectively, by partner (in thousands). Refer to Note 4, “Collaborations and License Agreements” regarding specific details.

	Three Months Ended March 31,
	2020		2019
EUSA	$	784	$	1,611
Total	$	784	$	1,611

Summary of Future Minimum Lease Payment

As of March 31, 2020, future minimum lease payments under the Company’s Winter Street Sublease are as follows (amounts in thousands):

Year Ending December 31:
2020 (remaining 9 months)		358
2021		385
2022		328
Total lease payments		1,071
Less imputed interest		(41	)
Total operating lease liabilities	$	1,030

Summary of Cash, Cash Equivalents and Marketable Securities

Below is a summary of cash, cash equivalents and marketable securities at March 31, 2020 and December 31, 2019 (in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
March 31, 2020
Cash and cash equivalents:
Cash and money market funds	$	23,457	$	—	$	—	$	23,457
Total cash and cash equivalents		23,457		—		—		23,457
Marketable securities:
Corporate debt securities due within 1 year	$	10,163	$	—	$	—	$	10,163
Total marketable securities		10,163		—		—		10,163
Total cash, cash equivalents and marketable securities	$	33,620	$	-	$	-	$	33,620
December 31, 2019
Cash and cash equivalents:
Cash and money market funds	$	25,278	$	—	$	—	$	25,278
Corporate debt securities		4,507		—		—		4,507
Total cash and cash equivalents		29,785		—		—		29,785
Marketable securities:
Corporate debt securities due within 1 year	$	17,960	$	—	$	—	$	17,960
Total marketable securities		17,960		—		—		17,960
Total cash, cash equivalents and marketable securities	$	47,745	$	—	$	—	$	47,745

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, 2020 and December 31, 2019 (in thousands):

	Fair Value Measurements as of March 31, 2020
	Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets carried at fair value:
Cash and money market funds	$	23,457	$	—	$	—	$	23,457
Total cash and cash equivalents	$	23,457	$	—	$	—	$	23,457
Marketable securities:
Corporate debt securities due within 1 year	$	—	$	10,163	$	—	$	10,163
Total marketable securities	$	—	$	10,163	$	—	$	10,163
Total cash, cash equivalents and marketable securities	$	23,457	$	10,163	$	—	$	33,620
Financial liabilities carried at fair value:
Total PIPE Warrant liability	$	—	$	—	$	2,449	$	2,449

	Fair Value Measurements as of December 31, 2019
	Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets carried at fair value:
Cash and money market funds	$	25,278	$	—	$	—	$	25,278
Corporate debt securities		—		4,507		—		4,507
Total cash and cash equivalents	$	25,278	$	4,507	$	—	$	29,785
Marketable securities:
Corporate debt securities due within 1 year	$	—	$	17,960	$	—	$	17,960
Total marketable securities	$	—	$	17,960	$	—	$	17,960
Total cash, cash equivalents and marketable securities	$	25,278	$	22,467	$	—	$	47,745
Financial liabilities carried at fair value:
Total PIPE Warrant liability	$	—	$	—	$	5,097	$	5,097

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, 2020 and 2019, respectively (in thousands except per share amounts):

	Three Months Ended March 31,
	2020			2019
Net income (loss) attributable to AVEO common    stockholders	$	(8,381	)	$	555
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	$	(8,381	)	$	(8,260	)
Weighted-average shares of common stock outstanding		16,081			13,230
Dilutive securities:
Incremental common shares issuable upon the exercise of the PIPE Warrants		—			53
Weighted-average number of common shares    outstanding and dilutive share equivalents outstanding		16,081			13,283
Basic net income (loss) per share	$	(0.52	)	$	0.04
Diluted net income (loss) per share	$	(0.52	)	$	(0.62	)

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, 2020 and 2019, respectively (in thousands):

	Outstanding at March 31,
	2020		2019
Options outstanding		1,556		1,019
Offering Warrants outstanding		2,500		—
PIPE Warrants outstanding		1,684		—
Settlement Warrants outstanding		—		200
Total		5,740		1,219

Stock-Based Compensation Expense

During the three months ended March 31, 2020 and 2019, the Company recorded the following stock-based compensation expense (in thousands):

	Three Months Ended March 31,
	2020		2019
Research and development	$	115	$	170
General and administrative		428		414
Total	$	543	$	584

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, 2020 (in thousands):

Fair value at January 1, 2020	$	5,097
Decrease in fair value		(2,648	)
Fair value at March 31, 2020	$	2,449

Key Assumptions Used to Value the Warrants

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

	Issuance			December 31, 2019			March 31, 2020
Expected price volatility		76.25	%		133.07	%		153.57	%
Expected term (in years)		5.00			1.50			1.25
Risk-free interest rates		1.22	%		1.59	%		0.17	%
Stock price	$	8.90		$	6.20		$	3.62
Dividend yield		—			—			—