Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Schedule of change in the research and development incentive receivable

The following table shows the change in the research and development incentive receivable from December 31, 2016 to March 31, 2018 (in thousands):

Balance at December 31, 2016	$	3,053
Australian research and development incentive income	1,715		(1)
Cash received for 2016 eligible expenses	(3,245		)
Foreign currency translation	221
Balance at December 31, 2017	1,744
Australian research and development incentive income	646
Cash received for 2016 eligible overseas research and development expenses	(740		)
Foreign currency translation	(20		)
Balance at March 31, 2018	$	1,630

(1) Certain supporting research and development activity is performed outside of Australia when there are no Australian facilities that support the activity (“Overseas research and development activities”).  In October 2017, the Commonwealth of Australia issued the Company a favorable ruling on its Overseas research and development activities, considering such activities to be eligible research and development activities under the Australian Incentive Program.  As such, the Company recorded Australian research and development incentives during the three months ended September 30, 2017 for its Overseas research and development activities performed during the year ended December 31, 2016 and the six months ended June 30, 2017, of $347 and $412, respectively.

Summary of assets and liabilities carried at fair value in accordance with the hierarchy

A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands):

	Total		Level 1		Level 2		Level 3
March 31, 2018
Assets:
Cash equivalents	$	34,826	$	34,826	$	—	$	—
Total assets	$	34,826	$	34,826	$	—	$	—
Liabilities:
Warrant liability	$	16,713	$	—	$	—	$	16,713
Total liabilities	$	16,713	$	—	$	—	$	16,713

December 31, 2017
Assets:
Cash equivalents	$	25,737	$	25,737	$	—	$	—
Total assets	$	25,737	$	25,737	$	—	$	—
Liabilities:
Warrant liability	$	11,862	$	—	$	—	$	11,862
Total liabilities	$	11,862	$	—	$	—	$	11,862

Schedule of the recurring fair value measurements of the warrant derivative liability categorized with Level 3 inputs

A roll-forward of the recurring fair value measurements of the warrant liability categorized with Level 3 inputs are as follows (in thousands):

Balance—December 31, 2017	11,862
Change in fair value	4,851
Balance—March 31, 2018	$	16,713