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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 04, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Trading Symbol	NVUS
Entity Registrant Name	Novus Therapeutics, Inc.
Entity Central Index Key	0001404281
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,943,060

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 22,498	$ 1,103
Restricted cash	13	14
Prepaid expenses and other current assets	2,332	33
Total current assets	24,843	1,150
Property and equipment, net	49	31
Restricted cash	70
Goodwill	1,867
Other assets	15	15
Total assets	26,844	1,196
Current liabilities:
Accounts payable	374	338
Accrued severance	1,300
Accrued expenses and other liabilities	1,486	113
Convertible notes		3,447
Total current liabilities	3,160	3,898
Long-term liabilities	245
Total liabilities	3,405	3,898
Commitments and contingencies (Note 7)
Stockholders' equity (deficit):
Preferred stock, $0.001 par value, 5,000,000 shares authorized and 0 issued and outstanding at June 30, 2017; preferred stock, $0.0026 par value, 6,565,540 shares authorized and 452,706 shares issued and outstanding at December 31, 2016		11
Common stock, $0.001 par value, 200,000,000 shares authorized and 6,943,832 shares issued and outstanding at June 30, 2017; common stock, $0.0026 par value, 9,207,060 shares authorized and 82,246 shares issued and outstanding at December 31, 2016	7	1
Additional paid-in capital	45,858	11,385
Receipts on account of Preferred A stock		291
Accumulated deficit	(22,426)	(14,390)
Total stockholders' equity (deficit)	23,439	(2,702)
Total liabilities and stockholders' equity (deficit)	$ 26,844	$ 1,196

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred shares, par value	$ 0.0010	$ 0.0026
Preferred shares, shares authorized	5,000,000	6,565,540
Preferred shares, shares issued	0	452,706
Preferred shares, shares outstanding	0	452,706
Common stock, par value	$ 0.0010	$ 0.0026
Common stock, shares authorized	200,000,000	9,207,060
Common stock, shares issued	6,943,832	82,246
Common stock, shares outstanding	6,943,832	82,246

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Operating expenses
Research and development	$ 533	$ 592	$ 1,012	$ 1,282
General and administrative	6,133	340	7,039	762
Total operating expenses	6,666	932	8,051	2,044
Loss from operations	(6,666)	(932)	(8,051)	(2,044)
Other income (expense), net	4	(70)	15	(61)
Net loss and comprehensive loss	$ (6,662)	$ (1,002)	$ (8,036)	$ (2,105)
Net loss per share, basic and diluted (Note 2)	$ (1.32)	$ (2.25)	$ (2.51)	$ (4.68)
Weighted-average common shares outstanding, basic and diluted	4,154,842	77,856	2,270,907	77,856

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Operating activities
Net loss	$ (6,662)	$ (1,002)	$ (8,036)	$ (2,105)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			16	20
Stock-based compensation			236	85
Loss on disposal of fixed assets			31
Changes in operating assets and liabilities:
Prepaid expenses and other assets			(1,167)	45
Accounts payable and accrued expenses			7	(207)
Net cash used in operating activities			(8,913)	(2,162)
Investing activities
Cash received from merger transaction			23,250
Proceeds from sale of equipment			8
Purchase of property and equipment				(10)
Net cash provided by (used in) investing activities			23,258	(10)
Financing activities
Proceeds from issuance of common stock, net			4,000
Proceeds from exercise of warrants			3,119
Net cash provided by financing activities			7,119
Net increase (decrease) in cash, cash equivalents and restricted cash			21,464	(2,172)
Cash, cash equivalents and restricted cash at beginning of period			1,117	3,109
Cash, cash equivalents and restricted cash at end of period	$ 22,581	$ 937	22,581	$ 937
Noncash activities:
Conversion of promissory notes and interest to common stock			3,447
Conversion of preferred stock to common stock			9
Conversion of contingently issuable shares to common stock			291
Fair value of assets acquired, excluding cash and restricted cash			3,072
Fair value of liabilities assumed			(2,947)
Fair value of net assets acquired in the merger			$ 125

Description of Business	6 Months Ended
Description of Business	Jun. 30, 2017
Accounting Policies [Abstract]
Description of Business	Note 1. Description of Business Novus Therapeutics, Inc. is a development-stage, specialty pharmaceutical company focused on the development of products for disorders of the ear, nose, and throat (ENT). Unless otherwise indicated, references to the terms the “combined company”, “Novus”, the “Company”, refer to Otic Pharma, Ltd. prior to the consummation of the Merger, and Novus Therapeutics, Inc., upon the consummation of the Merger described herein. The term “Tokai” refers to Tokai Pharmaceuticals, Inc., and its subsidiaries prior to the Merger. Novus, a Delaware corporation, owns 100% of the issued and outstanding common stock or other ownership interest in Otic Pharma, Ltd., a private limited company organized under the laws of the State of Israel. Otic Pharma, Ltd. (“Otic”) owns 100% of the issued and outstanding common stock or other ownership interest in its U.S. subsidiary, Otic Pharma, Inc. All intercompany transactions between the consolidated entities are eliminated in consolidation. *Reverse Merger* On December 21, 2016, Tokai Pharmaceuticals, Inc. (“Tokai”), a Delaware corporation, Otic, and the shareholders of Otic (each a “Seller” and collectively, the “Sellers”), entered into a Share Purchase Agreement (the “Share Purchase Agreement”), pursuant to which, among other things, each Seller agreed to sell to Tokai, and Tokai agreed to purchase from each Seller, all of the common and preferred shares of Otic (“Otic Shares”) owned by such Seller in exchange for the issuance of a certain number of shares of common stock of Tokai, as determined pursuant to the terms of the Share Purchase Agreement (the “Reverse Merger”). The parties amended and restated the Share Purchase Agreement on March 2, 2017. On May 9, 2017, Tokai, Otic, and the Sellers closed the transaction contemplated by the Share Purchase Agreement, and subsequently effected a reverse stock split at a ratio of one-for-nine (see Reverse Stock Split below). On a post-split basis, Tokai issued to the Sellers an aggregate of 4,027,693 shares of Tokai’s common stock in exchange for 836,857 Otic Shares. Following the completion of the Reverse Merger, the business being conducted by Tokai became primarily the business conducted by Otic. In connection with the Reverse Merger, the name of the surviving corporation was changed to “Novus Therapeutics, Inc.” *Private Placement* On January 31, 2017, Novus entered into a stock purchase agreement (the “Stock Purchase Agreement”) with certain purchasers named therein (the “Purchasers”), pursuant to which the Purchasers agreed to purchase approximately $4 million of the Company’s common stock through the purchase of 400,400 shares of the Company’s common stock at a price of $9.99 per share. This transaction closed on May 10, 2017. After giving effect to the issuance of the shares in the private placement, the shareholders of Otic owned approximately 64% of the Company’s common stock. *Reverse Stock Split* On May 11, 2017, Novus effected a reverse stock split of its issued and outstanding common stock and options for common stock at a ratio of one-for-nine. The Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware effecting such reverse stock split. The accompanying condensed consolidated financial statements and notes give retroactive effect to the reverse stock split for all periods presented. *Liquidity and Financial Condition* For the year ended December 31, 2016, the Company has adopted FASB Accounting Standard Codification (“ASC”) Topic 205-40, Presentation of Financial Statements – Going Concern, which requires that management evaluate whether there are relevant conditions and events that, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern and to meet its obligations as they become due within one year after the date that the financial statements are issued. The Company has experienced recurring net losses and negative cash flows from operating activities since its inception. The Company recorded a net loss of $8.0 million for the six months ended June 30, 2017. As of June 30, 2017, the Company had working capital of $21.7 million and an accumulated deficit of $22.4 million. Management estimates that the Company has sufficient cash resources to meet anticipated cash needs through at least the next 12 months from the date of issuance of these financial statements. Due to continuing research and development activities, the Company expects to continue to incur net losses into the foreseeable future. In order to continue these activities, the Company may need to raise additional funds through future public or private debt and equity financings or strategic collaboration and licensing arrangements. If the Company issues equity or convertible debt securities to raise additional funding, its existing stockholders may experience dilution, it may incur significant financing costs, and the new equity or convertible debt securities may have rights, preferences and privileges senior to those of its existing stockholders. If the Company issues debt securities to raise additional funding, it would incur additional debt service obligations, it could become subject to additional restrictions limiting its ability to operate its business, and it may be required to further encumber its assets. Sufficient additional funding may not be available or be available on acceptable terms. If so, the Company may need to delay, reduce the scope of, or put on hold research and development activities while the Company seeks strategic alternatives.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Article 10 of Regulation S-X requirements as set forth by the Securities and Exchange Commission (SEC) for interim financial information and reflect all adjustments and disclosures, which are, in the opinion of management, of a normal and recurring nature, considered necessary for a fair presentation of the financial information contained herein. The unaudited condensed consolidated financial statements do not include all information and notes necessary for a complete presentation of results of operations and comprehensive loss, financial position, and cash flows in conformity with GAAP.

The accompanying unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and accompanying notes of Otic for the year ended December 31, 2016 included in the definitive proxy statement on Schedule 14A relating to the Reverse Merger filed by the Company with the SEC on April 7, 2017. The results of operations and comprehensive loss for the three and six months ended June 30, 2017 are not necessarily indicative of expected results for the full fiscal year or any other future period.

There have been no significant and material changes in our critical accounting policies and significant judgments and estimates during the three and six months ended June 30, 2017, except as described below.

Use of Estimates

The preparation of the Company’s financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to the valuation of certain financial instruments, stock-based compensation, and accruals for liabilities and other matters that affect the condensed consolidated financial statements and related disclosures. Actual results could differ materially from those estimates under different assumptions or conditions and the differences may be material to the consolidated financial statements.

Business Combinations

Accounting for acquisitions requires extensive use of estimates and judgment to measure the fair value of the identifiable tangible and intangible assets acquired, including in-process research and development and liabilities assumed. Additionally, the Company must determine whether an acquired entity is considered a business or a set of net assets because the excess of the purchase price over the fair value of net assets acquired can only be recognized as goodwill in a business combination. The Company accounted for the merger with Tokai as a business combination under the acquisition method of accounting. Consideration paid to acquire Tokai was measured at fair value and included the exchange of Tokai’s common stock and preferred stock. The allocation of the purchase price resulted in recognition of intangible assets related to goodwill. The operating activity for Tokai, the acquiree for accounting purposes, was immediately integrated with Otic post-merger, therefore it is not practical to segregate results of operations related specifically to Tokai since the date of acquisition.

As a result of the merger, historical common stock, stock options and additional paid-in capital, including share and per share amounts, have been retroactively adjusted to reflect the equity structure of the Company.

Goodwill

Goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired under the acquisition method of accounting. Goodwill is not amortized but is evaluated for impairment during the last fiscal quarter of the year or if indicators of impairment exist that would, more likely than not, reduce the fair value from its carrying amount.

Net Loss Per Share

Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, preferred stock, convertible notes and accrued interest, and stock options and warrants are considered to be potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for the periods presented due to the Company’s net loss position.


	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands, except share and per share data)
Net loss available to stockholders of the company		(6,662	)		(1,002	)		(8,036	)		(2,105	)
Interest accumulated on preferred shares and on preferred shares contingently issuable for little or no cash		(98	)		(229	)		(328	)		(459	)
Net loss attributable to shareholders of preferred shares and to shareholders of preferred shares contingently issuable for little or no cash		1,279			1,056			2,666			2,200

Net loss used in the calculation of basic and diluted loss per share	$	(5,481	)	$	(175	)	$	(5,698	)	$	(364	)

Net loss per share, basic and diluted	$	(1.32	)	$	(2.25	)	$	(2.51	)	$	(4.68	)

Weighted-average number of common shares		4,154,842			77,856			2,270,907			77,856

The computation of diluted earnings per share excludes stock options, warrants, and restricted stock units that are anti-dilutive. For the three and six months ended June 30, 2017, common share equivalents of 587,819 shares were anti-dilutive. For the three and six months ended June 30, 2016, common share equivalents of 347,611 shares were anti-dilutive.

Stock-based Compensation

For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model net of estimated forfeitures. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables.

Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the period the Company expects to receive services from the non-employee. Stock options granted to non-employees are subject to periodic revaluation over their vesting terms.

Since the Company has a net operating loss carry-forward as of June 30, 2017, no excess tax benefits for tax deductions related to share-based awards were recognized in the accompanying consolidated statements of operations.

Recently Issued Accounting Pronouncements

In January 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU No. 2016-01 will be effective for the Company beginning in its first quarter of 2018. The adoption of ASU No. 2016-01 is not expected to have a material impact on the Company’s condensed consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under this guidance, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor, and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for the annual reporting period beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact on its condensed consolidated financial statements of the adoption of this guidance.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies the measurement of expected credit losses of certain financial instruments. ASU No. 2016-13 will be effective for the Company beginning in its first quarter of 2020 and early adoption is permitted. The adoption of ASU No. 2016-13 is not expected to have a material impact on the Company’s condensed consolidated financial statements.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU No. 2016-06 will be effective for the Company in the first quarter of 2018. The Company is currently evaluating the impact of adopting ASU No. 2016-16 on its condensed consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (Topic 805), which clarifies and provides a more robust framework to use in determining when a set of assets and activities is a business. The amendments in this update should be applied prospectively on or after the effective date. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those periods. Early adoption is permitted for acquisition or deconsolidation transactions occurring before the issuance date or effective date and only when the transactions have not been reported in issued or made available for issuance financial statements. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to early adopt the new guidance.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350), which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The standard has tiered effective dates, starting in 2020 for calendar-year public business entities that meet the definition of an SEC filer. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to early adopt the new guidance.

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early adoption permitted. The Company early adopted ASU No. 2016-09 in the fourth quarter of 2016 and the adoption did not have a material impact on its condensed consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statements of Cash Flows (Topic 230): Classification and Presentation of Restricted Cash in the Statements of Cash Flows, which requires that restricted cash and restricted cash equivalents be included as components of total cash and cash equivalents in the statement of cash flows. The Company adopted the provisions of this guidance using the retrospective approach in the first quarter of 2017. The adoption did not have a material impact on its condensed consolidated financial statements but did impact the presentation of the cash flow statement.

Reverse Merger

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Reverse Merger

Note 3. Reverse Merger

We completed the Reverse Merger with Tokai as discussed in Note 1. Based on the terms of the Reverse Merger, the Company concluded that the transaction is a business combination pursuant to ASC 805 Business Combinations, Otic was deemed the acquiring company for accounting purposes, and the transaction has been accounted for as a reverse acquisition under the acquisition method of accounting for business combinations in accordance with U.S. GAAP. Under the acquisition method of accounting, the total purchase price is allocated to the acquired tangible and intangible assets and assumed liabilities of Tokai based on their estimated fair values as of the Reverse Merger closing date. The excess of the purchase price over the fair value of assets acquired and liabilities assume, if any, is allocated to goodwill.

On May 9, 2017, Tokai issued 4,027,693 shares of its common stock to the shareholders of Otic and the holders of warrants and options of Otic upon the exercise of such options and warrants in exchange for 836,857 Otic Shares.

Purchase Consideration

The purchase price for Tokai on May 9, 2017, the closing date of the merger, was as follows (in thousands):


Fair value of Tokai common stock outstanding (1)	$	14,486
Premium paid (2)		8,889

Purchase price	$	23,375

(1)	Comprised of 2,515,739 shares of common stock outstanding at the date of the Reverse Merger based on the closing price of $5.76 per share on May 9, 2017, as adjusted for the one for nine reverse stock split on May 11, 2017.

(2)	Premium paid over fair value of common stock based on net tangible asset multiple of 1.08x book value of Tokai equity of $21.5 million as of May 9, 2017.

Allocation of Purchase Consideration

The allocation of the estimated purchase price to the acquired assets and liabilities assumed of Tokai, based on their estimated fair values as of May 9, 2017, the close of the transaction, is as follows (in thousands):


Cash, cash equivalents, and restricted cash	$	23,250
Prepaids and other current assets		1,132
Property and equipment		73
Goodwill		1,867
Accounts payable, accrued expenses and other liabilities		(2,947	)

Net assets acquired	$	23,375

The Company engaged a third-party valuation firm to assist management in its analysis of the fair value of Tokai. All estimates, key assumptions, and forecasts were either provided by or reviewed by management. While the Company chose to utilize a third-party valuation firm, the fair value analysis and related valuations represent the conclusions of management and not the conclusions or statements of any third party. The excess of the total purchase price over the fair value of assets acquired and liabilities assumed was allocated to goodwill.

The Company believes that the historical values of Tokai’s current assets and current liabilities approximate fair value based on the short-term nature of such items.

Goodwill is calculated as the difference between the fair value of the consideration expected to be transferred and the values assigned to the identifiable tangible and intangible assets acquired and liabilities assumed. Goodwill is not expected to be deductible for tax purposes.

The unaudited financial information in the following table summarizes the combined results of operations of the Company and Tokai, on a pro forma basis, as if the merger had occurred at the beginning of the periods presented (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Operating expenses
Research and development	$	686		$	10,487		$	1,471		$	19,109
General and administrative		2,592			4,020			5,474			7,991

Total operating expenses		3,278			14,507			6,945			27,100

Loss from operations		(3,278	)		(14,507	)		(6,945	)		(27,100	)
Other income, net		18			(21	)		55			42

Net loss and comprehensive loss	$	(3,260	)	$	(14,528	)	$	(6,890	)	$	(27,058	)

Net loss per share, basic and diluted	$	(0.47	)	$	(2.20	)	$	(0.99	)	$	(4.10	)

Weighted-average shares outstanding, basic and diluted		6,943,831			6,605,009			6,943,831			6,605,009

The above unaudited pro forma information was determined based on historical GAAP results of Otic and Tokai. The unaudited pro forma combined results are not necessarily indicative of what the Company’s combined results of operations would have been if the acquisition was completed at the beginning of the periods presented. The unaudited pro forma combined net loss includes pro forma adjustments primarily relating to the following non-recurring items directly attributable to the business combination:

•

Elimination of transaction costs of $5.4 million and $7.0 million incurred during the three and six months ended June 30, 2017, respectively. These amounts have been eliminated on a pro forma basis as they are not expected to have a continuing effect on the operating results of the combined company.

•

An increase in the weighted-average shares outstanding for the period after giving effect to the issuance of Tokai common stock in connection with the Reverse Merger and Equity Financing.

The combined aggregate transaction costs of the Company were $7.7 million, which were expensed as incurred.

Fair Value

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value

Note 4. Fair Value

Financial assets and liabilities are recorded at fair value. At June 30, 2017, the Company had no financial instruments included. At December 31, 2016, the Company’s financial instruments included short-term convertible debt. The carrying amount of the short-term convertible debt approximates fair value due to the short-term maturities of these instruments.

The Company measures the fair value of certain of its financial instruments on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1—Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

There have been no transfers of assets for liabilities between these fair value measurement classifications during the periods presented.

The Company had no financial assets or liabilities measured at fair value on a recurring basis at June 30, 2017.

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016 (in thousands):


	Level 1		Level 2		Level 3		Total
Liabilities
Convertible notes		—		3,447		—		3,447

Total liabilities at fair value	$	—	$	3,447	$	—	$	3,447

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accrued Expenses

6 Months Ended

Jun. 30, 2017

Payables and Accruals [Abstract]

Accrued Expenses

Note 5. Accrued Expenses

Accrued expenses consisted of the following as of June 30, 2017 and December 31, 2016 (in thousands):


	June 30,		December 31,
	2017		2016
Accrued clinical	$	518	$	—
Accrued compensation and related expenses		349		51
Accrued professional services		276		—
Accrued vacation		122		50
Accrued other		221		12

Total accrued expenses	$	1,486	$	113

Convertible Loan	6 Months Ended
Convertible Loan	Jun. 30, 2017
Debt Disclosure [Abstract]
Convertible Loan	Note 6. Convertible Loan On July 11, 2016, OrbiMed Israel Partners Limited Partnership and Peregrine Management II Ltd., provided Otic with a convertible bridge financing (the “Bridge Financing”) in the aggregate amount of $2.9 million (the “Bridge Financing Amount”), pursuant to a Bridge Financing Agreement (the “Bridge Financing Agreement”). Under the terms of the Bridge Financing Agreement, other than upon occurrence of an Event of Default (as defined in the Bridge Financing Agreement), Otic is not required to repay the Bridge Financing Amount or any portion in cash. The Bridge Financing Agreement further provides that upon a Deemed Liquidation (as defined in Otic’s Articles of Association), the Bridge Financing Amount is convertible into Preferred C Shares of Otic at a price per share representing 85% of the Preferred C Shares’ original issue price. Upon closing of the Reverse Merger, pursuant to the terms of the Bridge Financing Agreement, the Bridge Financing amount converted into 67,427 shares of common stock. The Company concluded the value of the Bridge Financing is predominantly based on a fixed monetary amount known at the date of issuance as represented by the 15% discount on the Company’s shares to be sold upon a Deemed Liquidation event. Accordingly, the Bridge Financing was classified as debt and was remeasured at its fair value of $3.4 million. As of June 30, 2017, the Company has no convertible debt.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 7. Commitments and Contingencies

Leases

The Company leases office space and equipment under various operating leases. These leases are generally subject to scheduled base rent and maintenance cost increases, which are recognized on a straight-line basis over the term of the leases. Total rental expense for all operating leases in the accompanying condensed consolidated statements of operations and comprehensive loss was $141,000 and $46,000 for the three months ended June 30, 2017 and 2016, respectively, and $182,000 and $105,000 for the six months ended June 30, 2017 and 2016, respectively.

Grants and Licenses

From 2012 through 2015, the Company received grants in the amount of approximately $537,000 from the Office of Chief Scientist designated for investments in research and development. The grants are linked to the U.S. dollar and bear annual interest of LIBOR. The grants are to be repaid out of royalties from sales of the products developed by the Company from their investments in research and development. Because the Company has not yet earned revenues related to these investments and cannot estimate potential royalties, no liabilities related to these grants have been recorded as of each period presented.

In November 2015, the Company entered into an exclusive license agreement with Scientific Development and Research, Inc. and Otodyne, Inc. (collectively, the “Licensors”) granting it an exclusive worldwide rights to develop and commercialize OP-02. Under the terms of the agreement, the Company is obligated to use commercially reasonable efforts to seek approval for and commercialize at least one product for otitis media in the U.S. and key European markets (France, Germany, Italy, Spain, and the United Kingdom). The Company is responsible for prosecuting, maintaining, and enforcing all intellectual property and will be the sole owner of improvements. Under the agreement with the Licensors, the Company paid license fees totaling $700,000 and issued 9,780 common shares to the Licensors.

In December 2015, the Licensors completed transfer of all technology, including the active Investigational New Drug application (“IND”) to the Company. The Company is obligated to pay up to $42.1 million in development and regulatory milestones if OP-02 is approved for three indications in the U.S., two in Europe, and two in Japan. The Company is also obligated to pay up to $36.0 million in sales based milestones, beginning with sales exceeding $1.0 billion in a calendar year. The Company is also obligated to pay a tiered royalty for a period up to eight years, on a country-by-country basis. The royalty ranges from low-single to mid-single percent of net sales.

The Company has a master license agreement with the University of Maryland, Baltimore (“UMB”), which was originally entered into by Tokai. Pursuant to the license agreement, UMB granted an exclusive, worldwide license, with the right to sublicense, under certain patents and patent applications to make, have made, use, sell, offer to sell and import certain anti-androgen steroids, including galeterone, for the prevention, diagnosis, treatment or control of any human or animal disease. In addition, UMB granted the Company a first option to receive an exclusive license to UMB’s rights in certain improvements to the licensed products. The Company has exercised its option and acquired exclusive rights to licensed improvements under four amendments to the license agreement. The Company is obligated to pay UMB an annual maintenance fee of $10,000 each year until the first commercial sale of a product developed using the licensed technology. The Company is also obligated to make milestone payments of an additional $50,000 for the filing of each additional investigational new drug application filed for a licensed product, aggregate milestone payments of up to $150,000 associated with the development of a licensed product for a particular non-prostate disease indication, and a $100,000 milestone payment upon the approval by the U.S. Food and Drug Administration (“FDA”) of each new drug application (“NDA”) for a licensed product. There were no milestones achieved during the six months ended June 30, 2017 or 2016.

The Company must also pay UMB a low-single digit percentage royalty on aggregate worldwide net sales of licensed products, including sales by sublicensees, on a licensed product-by-licensed product and country-by-country basis until the later of the expiration of the last-to-expire applicable licensed patent or ten years after first commercial sale of the applicable licensed product, in each case in the applicable country. The royalty obligations are subject to specified reductions in the event that additional licenses need to be obtained from third parties or in the event of specified competition from third-party products licensed by UMB. Minimum annual royalty payments to UMB are $50,000 beginning in the year following the year in which the first commercial sale occurs. The Company must also pay UMB 10% of all non-royalty sublicense income received from sublicensees. Finally, the Company is responsible for all patent expenses related to the prosecution and maintenance of the licensed patents. As of June 30, 2017, the Company has not yet developed a commercial product using the licensed technologies, nor has it entered into any sublicense agreements for the technologies.

In January 2015, the Company (through Tokai) entered into an exclusive license agreement with The Johns Hopkins University (“Johns Hopkins”) pursuant to which Johns Hopkins granted the Company an exclusive, worldwide license under certain patents and patent applications, and a non-exclusive license under certain know-how, in each case with the right to sublicense, to make, have made, use, sell, offer to sell and import certain assays to identify androgen receptor variants for use as a companion diagnostic with galeterone. In addition, Johns Hopkins granted the Company an option to negotiate an exclusive license to Johns Hopkins’s rights in certain improvements to the licensed intellectual property.

In consideration for the rights granted to the Company under the license agreement, the Company made an upfront payment to Johns Hopkins of $75,000 following the execution of the license agreement, which was recognized as research and development expense during the year ended December 31, 2015. The Company is obligated to pay Johns Hopkins an annual minimum royalty of up to $30,000 and to make milestone payments to Johns Hopkins upon the achievement of specified technical and commercial milestones. If all such milestones were achieved, the total milestone payments owed to Johns Hopkins would equal $700,000 in the aggregate. During the year ended December 31, 2015, the Company expensed $50,000 upon the achievement of two of these milestones. The Company has not achieved any other milestones and, therefore, no additional liabilities for such milestone payments have been recorded in the Company’s financial statements.

The Company must also pay Johns Hopkins single digit percentage royalties on aggregate worldwide net sales of licensed products (but not galeterone), including sales by sublicensees, on a licensed product-by-licensed product and country-by-country basis until the later of the expiration of the last-to-expire applicable licensed patent or ten years after first commercial sale of the applicable licensed product, in each case in the applicable country. These royalty obligations are subject to specified reductions in the event that additional licenses from third parties are required. The Company must also pay Johns Hopkins 20% of all non-royalty sublicense income received from sublicensees and reimburse Johns Hopkins for patent costs. As of June 30, 2017, the Company has not yet developed a commercial product using the licensed technologies.

Legal Matters

The Company is involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, the Company assesses, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures. The amount of ultimate loss may differ from these estimates. Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding. Because of the uncertainties related to the occurrence, amount, and range of loss on any pending litigation or claim, the Company is currently unable to predict their ultimate outcome, and, with respect to any pending litigation or claim where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. In the event that opposing litigants in outstanding litigation proceedings or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on the Company’s business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods.

Legal Proceedings

Doshi Action.

On August 1, 2016, a purported stockholder of Tokai filed a putative class action lawsuit in the U.S. District Court for the Southern District of New York against Tokai, Jodie P. Morrison, and Lee H. Kalowski, entitled Doshi v. Tokai Pharmaceuticals, Inc., et al., No. 1:16-cv-06106 (“Doshi Action”). The plaintiff sought to represent a class of purchasers of Tokai securities between June 24, 2015, and July 25, 2016, and alleges that, in violation of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated thereunder, defendants made false and misleading statements and omissions about Tokai’s clinical trials for its drug candidate, galeterone. The lawsuit sought, among other things, unspecified compensatory damages, interest, costs, and attorneys’ fees. On October 3, 2016, the case was transferred to the U.S. District Court for the District of Massachusetts. A lead plaintiff has yet to be appointed.

Legal Proceedings Related to Tokai IPO

On September 22, 2014, Tokai completed the initial public offering of its common stock (the IPO”). Subsequent to the IPO, several lawsuits were filed against Tokai, Jodie Pope Morrison, Lee H. Kalowski, Seth L. Harrison, Timothy J. Barberich, David A. Kessler, Joseph A. Yanchik, III, and the underwriters of the IPO (collectively, the “IPO Defendants”). The lawsuits allege that, in violation of the Securities Act of 1933 (“Securities Act”), Tokai’s registration statement for the IPO made false and misleading statements and omissions about Tokai’s clinical trials for galeterone. Each lawsuit sought, among other things, unspecified compensatory damages, interest, costs, and attorneys’ fees. Further details on each lawsuit are set forth below.

•

Jackie888 Action. On August 19, 2016, a purported stockholder of Tokai filed a putative class action lawsuit in the Superior Court of the State of California, County of San Francisco, against the IPO defendants, entitled Jackie888, Inc. v. Tokai Pharmaceuticals, Inc., et al., No. CGC-16-553796. The plaintiff sought to represent a class of purchasers of Tokai common stock in or traceable to Tokai’s IPO. On October 19, 2016, the defendants moved to dismiss or stay the action on grounds of forum non conveniens, and certain individual defendants moved to quash the plaintiff’s summons for lack of personal jurisdiction. On February 27, 2017, the Superior Court entered an order granting defendants’ motion to stay the lawsuit.

•

Garbowski Action. On September 29, 2016, two purported stockholders of Tokai filed a putative class action lawsuit in the U.S. District Court for the District of Massachusetts against the IPO defendants, entitled Garbowski, et al. v. Tokai Pharmaceuticals, Inc., et al., No. 1:16-cv-11963 (“Garbowski Action”). This lawsuit also alleges that the defendants and Tokai’s registration statement for its IPO made false and misleading statements and omissions about Tokai’s clinical trials for galeterone, in violation of the Securities Act, the Exchange Act, and Rule 10b-5. The plaintiffs sought to represent a class of purchasers of Tokai common stock in or traceable to Tokai’s IPO as well as a class of purchasers Tokai common stock between September 17, 2014, and July 25, 2016. A prospective lead plaintiff has filed a motion to consolidate the Doshi and Garbowski Actions for all purposes. A lead plaintiff has yet to be appointed.

•

Wu Action. On December 5, 2016, a putative securities class action was filed in the Business Litigation Session of the Superior Court Department of the Suffolk County Trial Court, Massachusetts (“Massachusetts State Court”) against the IPO defendants, entitled Wu v. Tokai Pharmaceuticals, Inc., et al., 16-3725 BLS (“Wu Action”). The plaintiff seeks to represent a class of purchasers of Tokai common stock in or traceable to Tokai’s IPO. On December 19, 2016, defendants removed the Wu Action to the U.S. District Court for the District of Massachusetts, where it was captioned Wu v. Tokai Pharmaceuticals, Inc., et al., 16-cv-12550, and assigned to the same judge presiding over the Doshi and Garbowski Actions. On December 22, 2016, defendants filed a motion to consolidate the Wu Action with the Doshi and Garbowski Actions. On January 6, 2017, plaintiff filed a motion to remand the Wu Action to Massachusetts State Court.

•

Angelos Action. On July 25, 2017, a purported stockholder of Tokai filed a putative class action lawsuit in the U.S. District Court for the District of Massachusetts against the IPO defendants, entitled Peter B. Angelos v. Tokai Pharmaceuticals, Inc., et al., No. 1:17-cv-11365-MLW. The case has been assigned to the same judge presiding over the Doshi, Garbowski, and Wu Actions.

Legal Proceedings Related to Reverse Merger

In connection with the Reverse Merger, two putative securities class actions have been filed in the U.S. District Court for the District of Massachusetts against Tokai, Jodie P. Morrison, Seth L. Harrison, Stephen Buckley, Jr., Cheryl L. Cohen, David A. Kessler, and Joseph A. Yanchik, III. The two complaints are captioned as follows: Bushansky v. Tokai Pharmaceuticals, Inc., et al., No. 1:17-cv-10621-DPW (filed April 11, 2017), and Wilson v. Tokai Pharmaceuticals, Inc., et al., No. 1:17-cv-10645-DPW (filed April 14, 2017). Each lawsuit alleges that Tokai’s definitive proxy statement on Schedule 14A filed with the SEC on April 7, 2017 (the “Definitive Proxy Statement”) made false and misleading statements and omissions in connection with the Reverse Merger, in violation of the Exchange Act and Rule 14a-9, promulgated thereunder. Each plaintiff sought to represent a class of all persons and entities that owned Tokai common stock. Each lawsuit sought, among other things, preliminary and permanent injunctions of the Reverse Merger unless Tokai disclosed certain information requested by plaintiff, rescission and unspecified damages if the Reverse Merger is consummated, and attorneys’ fees. These two actions are collectively referred to as the “Stockholder Litigation.” On June 6, 2017, each of the plaintiffs in these two actions, the Stockholder Litigation, voluntarily dismissed the actions with prejudice as to Plaintiff only and without prejudice as to the putative class in the action.

Novus believes it has valid defenses with respect to each of the legal proceedings discussed above and intends to vigorously defend itself against the claims asserted in such proceedings. However, Novus is unable to predict the ultimate outcome of these actions, and, therefore cannot estimate its possible losses or ranges of losses, if any, or the materiality thereof. An unexpected unfavorable resolution of these matters in any reporting period may have a material adverse effect on Novus’ results of operations and cash flows for that period.

Indemnification

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves future claims that may be made against the Company but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future because of these indemnification obligations. No amounts associated with such indemnifications have been recorded to date.

Contingencies

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. There have been no contingent liabilities requiring accrual at June 30, 2017.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. Income Taxes The Company is subject to income taxes under the Israeli and U.S. tax laws. The Company was subject to an Israeli corporate tax rate of 25% in the year 2016 and will be subject to an Israeli corporate tax rate of 24% in the year 2017 and 23% in the year 2018 and thereafter. The Company was subject to a blended U.S. tax rate (Federal as well as state corporate tax) of 35% in 2016.

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2017
Equity [Abstract]
Stockholders' Equity	Note 9. Stockholders’ Equity *Warrants* In March 2017, OrbiMed Israel Partners Limited Partnership, a related party, exercised a warrant to purchase 22,679 shares of Preferred B shares of the Company at $17.64 per share for an aggregate amount of approximately $400,000. In May 2017, OrbiMed Israel Partners Limited Partnership, a related party, exercised warrants to purchase 149,686 shares of Preferred B shares and 10,737 shares Ordinary Shares of the Company at a weighted-average price of $16.46 per share for an aggregate amount of approximately $2.6 million. In May 2017, Peregrine Management II Ltd., a related party, exercised warrants to purchase 4,460 shares of Preferred B shares and 2,148 shares Ordinary Shares of the Company at a weighted-average price of $11.91 per share for an aggregate amount of approximately $79,000. In May 2017, Pontifax, in a cashless exercise, purchased 18,940 shares of Ordinary Shares of the Company.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Business Combinations

Business Combinations

Goodwill

Goodwill

Net Loss Per Share

Net Loss Per Share


	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands, except share and per share data)
Net loss available to stockholders of the company		(6,662	)		(1,002	)		(8,036	)		(2,105	)
Interest accumulated on preferred shares and on preferred shares contingently issuable for little or no cash		(98	)		(229	)		(328	)		(459	)
Net loss attributable to shareholders of preferred shares and to shareholders of preferred shares contingently issuable for little or no cash		1,279			1,056			2,666			2,200

Net loss used in the calculation of basic and diluted loss per share	$	(5,481	)	$	(175	)	$	(5,698	)	$	(364	)

Net loss per share, basic and diluted	$	(1.32	)	$	(2.25	)	$	(2.51	)	$	(4.68	)

Weighted-average number of common shares		4,154,842			77,856			2,270,907			77,856

Stock-based Compensation

Stock-based Compensation

Recently Issued or Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

In January 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-01,Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU No. 2016-01 will be effective for the Company beginning in its first quarter of 2018. The adoption of ASU No. 2016-01 is not expected to have a material impact on the Company’s condensed consolidated financial statements.

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU No. 2016-09,Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early adoption permitted. The Company early adopted ASU No. 2016-09 in the fourth quarter of 2016 and the adoption did not have a material impact on its condensed consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Schedule of Common Share Equivalents Included from Computation of Net Loss Per Share


	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands, except share and per share data)
Net loss available to stockholders of the company		(6,662	)		(1,002	)		(8,036	)		(2,105	)
Interest accumulated on preferred shares and on preferred shares contingently issuable for little or no cash		(98	)		(229	)		(328	)		(459	)
Net loss attributable to shareholders of preferred shares and to shareholders of preferred shares contingently issuable for little or no cash		1,279			1,056			2,666			2,200

Net loss used in the calculation of basic and diluted loss per share	$	(5,481	)	$	(175	)	$	(5,698	)	$	(364	)

Net loss per share, basic and diluted	$	(1.32	)	$	(2.25	)	$	(2.51	)	$	(4.68	)

Weighted-average number of common shares		4,154,842			77,856			2,270,907			77,856

Reverse Merger (Tables)

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Schedule of Purchase Price Consideration

The purchase price for Tokai on May 9, 2017, the closing date of the merger, was as follows (in thousands):


Fair value of Tokai common stock outstanding (1)	$	14,486
Premium paid (2)		8,889

Purchase price	$	23,375

(1)	Comprised of 2,515,739 shares of common stock outstanding at the date of the Reverse Merger based on the closing price of $5.76 per share on May 9, 2017, as adjusted for the one for nine reverse stock split on May 11, 2017.

(2)	Premium paid over fair value of common stock based on net tangible asset multiple of 1.08x book value of Tokai equity of $21.5 million as of May 9, 2017.

Summary of Allocation of Estimated Purchase Price to Acquired Assets and Liabilities Assumed


Cash, cash equivalents, and restricted cash	$	23,250
Prepaids and other current assets		1,132
Property and equipment		73
Goodwill		1,867
Accounts payable, accrued expenses and other liabilities		(2,947	)

Net assets acquired	$	23,375

Summary of Combined Results of Operations of Company and Tokai, on a Pro Forma Basis


	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Operating expenses
Research and development	$	686		$	10,487		$	1,471		$	19,109
General and administrative		2,592			4,020			5,474			7,991

Total operating expenses		3,278			14,507			6,945			27,100

Loss from operations		(3,278	)		(14,507	)		(6,945	)		(27,100	)
Other income, net		18			(21	)		55			42

Net loss and comprehensive loss	$	(3,260	)	$	(14,528	)	$	(6,890	)	$	(27,058	)

Net loss per share, basic and diluted	$	(0.47	)	$	(2.20	)	$	(0.99	)	$	(4.10	)

Weighted-average shares outstanding, basic and diluted		6,943,831			6,605,009			6,943,831			6,605,009

Fair Value (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016 (in thousands):


	Level 1		Level 2		Level 3		Total
Liabilities
Convertible notes		—		3,447		—		3,447

Total liabilities at fair value	$	—	$	3,447	$	—	$	3,447

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2017

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following as of June 30, 2017 and December 31, 2016 (in thousands):


	June 30,		December 31,
	2017		2016
Accrued clinical	$	518	$	—
Accrued compensation and related expenses		349		51
Accrued professional services		276		—
Accrued vacation		122		50
Accrued other		221		12

Total accrued expenses	$	1,486	$	113

Description of Business - Additional Information (Detail) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended
	May 11, 2017	May 09, 2017 $ / shares shares	Jan. 31, 2017 $ / shares shares	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Description Of Business [Line Items]
Stock issued during period, shares, reverse stock splits		836,857
Net loss \| $				$ (6,662)	$ (1,002)	$ (8,036)	$ (2,105)
Working capital \| $				21,700		21,700
Accumulated deficit \| $				$ (22,426)		$ (22,426)		$ (14,390)
Stock Purchase Agreement [Member]
Description Of Business [Line Items]
Number of shares Issued under Stock purchase agreement			4,000,000
Tokai Pharmaceuticals Inc [Member]
Description Of Business [Line Items]
Number of shares Issued under Stock purchase agreement			400,400
Price of shares Issued under Stock purchase agreement \| $ / shares			$ 9.99
Tokai Pharmaceuticals, Inc. [Member]
Description Of Business [Line Items]
Stock issued during period, shares, reverse stock splits		4,027,693
Common stock and options for common stock reverse stock split description	One for nine
Price of shares Issued under Stock purchase agreement \| $ / shares		$ 5.76
Tokai Pharmaceuticals, Inc. [Member] \| Reverse Stock Split [Member]
Description Of Business [Line Items]
Stock conversion, conversion ratio	0.111111111
Otic Pharma [Member]
Description Of Business [Line Items]
Ownership percentage				100.00%		100.00%
Common stock and options for common stock reverse stock split description	One-for-nine	One-for-nine
Percentage of ownership			64.00%
Otic Pharma [Member] \| Reverse Stock Split [Member]
Description Of Business [Line Items]
Stock conversion, conversion ratio	0.111111111	0.111111111
Otic Pharma, Inc. [Member]
Description Of Business [Line Items]
Ownership percentage				100.00%		100.00%

Summary of Significant Accounting Policies - Schedule of Common Share Equivalents Included from Computation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net loss available to stockholders of the company	$ (6,662)	$ (1,002)	$ (8,036)	$ (2,105)
Interest accumulated on preferred shares and on preferred shares contingently issuable for little or no cash	(98)	(229)	(328)	(459)
Net loss attributable to shareholders of preferred shares and to shareholders of preferred shares contingently issuable for little or no cash	1,279	1,056	2,666	2,200
Net loss used in the calculation of basic and diluted loss per share	$ (5,481)	$ (175)	$ (5,698)	$ (364)
Net loss per share, basic and diluted	$ (1.32)	$ (2.25)	$ (2.51)	$ (4.68)
Weighted-average number of common shares	4,154,842	77,856	2,270,907	77,856

Summary of Significant Accounting Policies - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accounting Policies [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount	587,819	347,611	587,819	347,611

Reverse Merger - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
	May 09, 2017	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Common stock, shares issued		6,943,832	6,943,832	82,246
Merger transaction costs			$ 7.7
Tokai Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Common stock, shares issued	4,027,693
Merger transaction costs		$ 5.4	$ 7.0
Otic Pharma [Member]
Business Acquisition [Line Items]
Options and warrants in exchange, shares	836,857

Reverse Merger - Schedule of Purchase Price Consideration (Detail) - Tokai Pharmaceuticals, Inc. [Member] $ in Thousands	May 09, 2017 USD ($)
Business Acquisition [Line Items]
Total purchase price	$ 23,375
Common Stock [Member]
Business Acquisition [Line Items]
Total purchase price	14,486
Premium Paid [Member]
Business Acquisition [Line Items]
Total purchase price	$ 8,889

Reverse Merger - Schedule of Purchase Price Consideration (Parenthetical) (Detail) $ / shares in Units, $ in Thousands	May 11, 2017	May 09, 2017 USD ($) $ / shares shares	Jun. 30, 2017 USD ($) shares	Dec. 31, 2016 USD ($) shares
Business Acquisition [Line Items]
Common stock outstanding \| shares			6,943,832	82,246
Equity \| $			$ 23,439	$ (2,702)
Tokai Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Common stock outstanding \| shares		2,515,739
Closing price per share \| $ / shares		$ 5.76
Common stock reverse stock split description	One for nine
Equity \| $		$ 21,500
Premium payment over fair value of common stock based on net tangible asset, rate		1.08
Reverse Stock Split [Member] \| Tokai Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Common stock reverse stock split ratio	0.111111111

Reverse Merger - Summary of Allocation of Estimated Purchase Price to Acquired Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	May 09, 2017
Business Acquisition [Line Items]
Goodwill	$ 1,867
Tokai Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Cash, cash equivalents, and restricted cash		$ 23,250
Prepaids and other current assets		1,132
Property and equipment		73
Goodwill		1,867
Accounts payable, accrued expenses and other liabilities		(2,947)
Net assets acquired		$ 23,375

Reverse Merger - Summary of Combined Results of Operations of Company and Tokai, on a Pro Forma Basis (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Operating expenses
Research and development	$ 686	$ 10,487	$ 1,471	$ 19,109
General and administrative	2,592	4,020	5,474	7,991
Total operating expenses	3,278	14,507	6,945	27,100
Loss from operations	(3,278)	(14,507)	(6,945)	(27,100)
Other income, net	18	(21)	55	42
Net loss and comprehensive loss	$ (3,260)	$ (14,528)	$ (6,890)	$ (27,058)
Net loss per share, basic and diluted	$ (0.47)	$ (2.20)	$ (0.99)	$ (4.10)
Weighted-average shares outstanding, basic and diluted	6,943,831	6,605,009	6,943,831	6,605,009

Fair Value - Additional Information (Detail) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets transfers level 1 to 2	$ 0
Financial assets transfers level 2 to 1	0
Financial liabilities transfers level 1 to 2	0
Financial liabilities transfers level 2 to 1	0
Liabilities measured at fair value		$ 3,447,000
Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value	0
Liabilities measured at fair value	$ 0

Fair Value - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Liabilities
Liability, fair value		$ 3,447,000
Fair Value, Measurements, Recurring [Member]
Liabilities
Liability, fair value	$ 0
Fair Value, Measurements, Recurring [Member] \| Convertible Notes [Member]
Liabilities
Liability, fair value		3,447,000
Level 2 [Member]
Liabilities
Liability, fair value		3,447,000
Level 2 [Member] \| Fair Value, Measurements, Recurring [Member] \| Convertible Notes [Member]
Liabilities
Liability, fair value		$ 3,447,000

Accrued Expenses - Schedule of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accrued Liabilities and Other Liabilities [Abstract]
Accrued clinical	$ 518
Accrued compensation and related expenses	349	$ 51
Accrued professional services	276
Accrued vacation	122	50
Accrued other	221	12
Total accrued expenses	$ 1,486	$ 113

Convertible Loan - Additional Information (Detail) - USD ($)	May 09, 2017	Jul. 11, 2016	Jun. 30, 2017
Debt Instrument [Line Items]
Percentage on discount on common stock		15.00%
Fair value of debt		$ 3,400,000
Convertible debt			$ 0
Otic Pharma [Member] \| OrbiMed Israel Partners Limited Partnership and Peregrine Management II Ltd [Member]
Debt Instrument [Line Items]
Convertible bridge financing amount		$ 2,900,000
Common Stock [Member] \| Otic Pharma [Member]
Debt Instrument [Line Items]
Bridge financing amount conversion	67,427
Series C Preferred Stock [Member] \| Otic Pharma [Member]
Debt Instrument [Line Items]
Percentage of original issue price of shares		85.00%

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2015 USD ($)	Nov. 30, 2015 USD ($) shares	Jan. 31, 2015	Jun. 30, 2017 USD ($) Amendments	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) Amendments Milestone	Jun. 30, 2016 USD ($) Milestone	Dec. 31, 2015 USD ($)
Other Commitments [Line Items]
Rental expense				$ 141,000	$ 46,000	$ 182,000	$ 105,000
Number of milestones achieved \| Milestone						0	0
Indemnification obligations amount				0		$ 0
Contingent liabilities				$ 0		$ 0
License Agreement [Member]
Other Commitments [Line Items]
Sales based milestone payment	$ 36,000,000							$ 36,000,000
Royalty payment period	8 years
License Agreement [Member] \| Maximum [Member]
Other Commitments [Line Items]
Development and regulatory milestone payments	$ 42,100,000							42,100,000
License Agreement [Member] \| Minimum [Member]
Other Commitments [Line Items]
Sales required to achieve milestone payment	1,000,000,000
Office of Chief Scientist [Member]
Other Commitments [Line Items]
Grants received	537,000							537,000
Scientific Development and Research, Inc. and Otodyne, Inc. [Member] \| License Agreement [Member]
Other Commitments [Line Items]
License fees paid		$ 700,000
Share issued as consideration \| shares		9,780
UMB [Member] \| Master License Agreement [Member]
Other Commitments [Line Items]
Number of amendments \| Amendments				4		4
Annual maintenance fee						$ 10,000
Percentage of non-royalty sub license income						10.00%
UMB [Member] \| Master License Agreement [Member] \| Minimum [Member]
Other Commitments [Line Items]
Annual royalty						$ 50,000
UMB [Member] \| Master License Agreement [Member] \| IND [Member] \| Upon Filing IND Application For Licensed Product [Member]
Other Commitments [Line Items]
Milestone payment						50,000
UMB [Member] \| Master License Agreement [Member] \| IND [Member] \| Upon FDA Approval [Member]
Other Commitments [Line Items]
Milestone payment						100,000
UMB [Member] \| Master License Agreement [Member] \| Investigational Drug Application Non Prostate Disease [Member] \| Maximum [Member]
Other Commitments [Line Items]
Aggregate milestone payments associated with development of licensed product						$ 150,000
Johns Hopkins [Member] \| License Agreement [Member]
Other Commitments [Line Items]
Percentage of non-royalty sub license income			20.00%
Potential milestone payments under license agreement								700,000
Milestone payments expensed during period								50,000
Additional liabilities for milestone payments	$ 0							0
Johns Hopkins [Member] \| License Agreement [Member] \| Research and Development [Member]
Other Commitments [Line Items]
Upfront payment								75,000
Johns Hopkins [Member] \| License Agreement [Member] \| Minimum [Member]
Other Commitments [Line Items]
Annual royalty								$ 30,000

Income Taxes - Additional Information (Detail)	12 Months Ended
Income Taxes - Additional Information (Detail)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Tax Credit Carryforward [Line Items]
Federal Income tax rate			35.00%
Israeli [Member]
Tax Credit Carryforward [Line Items]
Income tax rate			25.00%
Scenario, Forecast [Member] \| Israeli [Member]
Tax Credit Carryforward [Line Items]
Income tax rate	23.00%	24.00%

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended		6 Months Ended
	May 31, 2017	Mar. 31, 2017	Jun. 30, 2017
Class of Stock [Line Items]
Proceeds from exercise of warrants			$ 3,119,000
OrbiMed Israel Partners Limited Partnership [Member] \| Ordinary Shares [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	10,737
Peregrine Management II Ltd. [Member] \| Ordinary Shares [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	2,148
Pontifax [Member] \| Ordinary Shares [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	18,940
Preferred Class B [Member] \| OrbiMed Israel Partners Limited Partnership [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	149,686	22,679
Warrant exercise price		$ 17.64
Proceeds from exercise of warrants	$ 2,600,000	$ 400,000
Preferred Class B [Member] \| OrbiMed Israel Partners Limited Partnership [Member] \| Weighted Average [Member]
Class of Stock [Line Items]
Warrant exercise price	$ 16.46
Preferred Class B [Member] \| Peregrine Management II Ltd. [Member]
Class of Stock [Line Items]
Number of warrants exercised to purchase shares	4,460
Proceeds from exercise of warrants	$ 79,000
Preferred Class B [Member] \| Peregrine Management II Ltd. [Member] \| Weighted Average [Member]
Class of Stock [Line Items]
Warrant exercise price	$ 11.91