Annual report pursuant to Section 13 and 15(d)

Organization and Description of the Business

v2.4.1.9
Organization and Description of the Business
12 Months Ended
Dec. 31, 2014
Organization and Description of the Business  
Organization and Description of the Business

 

1. Organization and Description of the Business

        Trevena, Inc. (the "Company") was incorporated in Delaware as Parallax Therapeutics, Inc. on November 9, 2007. The Company began operations in December 2007, and its name was changed to Trevena, Inc. on January 3, 2008. The Company is a clinical stage biopharmaceutical company that discovers, develops and intends to commercialize therapeutics that use a novel approach to target G protein coupled receptors. The Company operates in one segment and has its principal office in King of Prussia, Pennsylvania. The Company's revenue has been derived from research grants and a research collaboration with a pharmaceutical company.

Reverse Stock Split

        During 2013, the Company's Board of Directors and stockholders approved a one-for-6.2 reverse stock split of the company's common stock that became effective on October 30, 2013. All share and per share amounts in the financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split.

Public Offerings

        On February 5, 2014, the Company issued and sold 9,250,000 shares of common stock in an initial public offering (the "IPO") at a price of $7.00 per share, for aggregate gross proceeds of $64.8 million. On March 6, 2014, in connection with the partial exercise of the IPO underwriters' over-allotment option, the Company sold an additional 270,449 shares of common stock at a price of $7.00 per share, for aggregate gross proceeds of approximately $1.9 million. The net offering proceeds to the Company from both sales were approximately $59.5 million, after deducting underwriting discounts and commissions of approximately $4.7 million and offering costs of approximately $2.5 million. In addition, as part of the IPO, all of the Company's outstanding convertible preferred stock was converted and all but 22,580 of its outstanding warrants were net exercised into an aggregate of 15,728,286 shares of common stock.

        On December 10, 2014, the Company issued and sold 11,250,000 shares of common stock in a public offering as well as 1,598,000 shares of common stock pursuant to the partial exercise of the underwriters' over-allotment option for a total of 12,848,000 shares at a price of $4.00 per share, for aggregate gross proceeds of approximately $51.4 million. The net offering proceeds to the Company from the combined sales were approximately $47.7 million, after deducting underwriting discounts and commissions of approximately $3.1 million and offering costs of approximately $0.6 million.

Liquidity

        At December 31, 2014, the Company had an accumulated deficit of $132.0 million and its net loss was $49.7 million and $23.3 million for the year ended December 31, 2014 and 2013, respectively. The Company expects its cash and cash equivalents of $36.2 million and marketable securities of $70.7 million as of December 31, 2014 and the $16.5 million that the Company currently can draw under the second tranche of our credit facility, together with interest thereon, to be sufficient to fund its operating expenses and capital expenditure requirements through the end of 2016.