Significant Accounting Policies (Policies) |
9 Months Ended | |||||||||
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Apr. 30, 2018 | ||||||||||
| Accounting Policies [Abstract] | ||||||||||
| Fair Value of Financial Instruments |
Fair Value of Financial Instruments
The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or, in absence of a principal, most advantageous market for the specific asset or liability.
The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value.
The three tiers are defined as follows:
During the three months ended April 30, 2018, the Company invested cash into held-to-maturity investments, requiring fair value measurements. The Company will continue to review the fair value inputs on a quarterly basis.
The Company utilizes its third-party financial institutions to assist in obtaining fair value pricing for investments. Inputs are documented in accordance with the fair value disclosure hierarchy. |
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| Use of Estimates |
Use of Estimates
The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Such estimates include stock-based compensation, accounting for long-lived assets and accounting for income taxes, including the related valuation allowance on the deferred tax asset and uncertain tax positions. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. On an ongoing basis, the Company reviews its estimates to ensure that they appropriately reflect changes in the business or as new information becomes available. Actual results could differ materially from these estimates. |
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| Segment Reporting |
Segment Reporting
The Company operates in a single industry segment—the discovery and development of novel immunotherapeutic product candidates to improve treatment options for patients and physicians, intended to treat a wide range of oncology indications. |
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| Concentrations and Credit Risk |
Concentrations and Credit Risk
The Company maintains cash balances at a small number of financial institutions and such balances commonly exceed the $250,000 amount insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts and management believes that the Company does not have significant credit risk with respect to such cash and cash equivalents. |
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| Australia Research and Development Tax Credit |
Australia Research and Development Tax Credit
The Company’s Australian, wholly-owned, subsidiary incurs research and development expenses, primarily in the course of conducting clinical trials. The Company’s Australian research and development activities qualify for the Australian government’s tax credit program, which provides a 43.5 percent credit for qualifying research and development expenses. The tax credit does not depend on the Company’s generation of future taxable income or ongoing tax status or position. Accordingly, the credit is not considered an element of income tax accounting under ASC 740 and is recorded against qualifying research and development expenses. |
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| Tax Reform |
Tax Reform
The Tax Cuts and Jobs Act (“the Act”) was signed into law in December 2017, impacting federal corporate tax rates. While the Act will impact certain aspects in the calculation of the Company’s tax provision, the Company maintains a full valuation allowance and does not anticipate any net impact to the Company’s financial statements in 2018. |
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| Recent Accounting Pronouncements |
Recent Accounting Pronouncements
There were no accounting pronouncements during the three and nine months ended April 30, 2018 that the Company anticipates will have a material impact on the Company’s financial condition, results of operations or related disclosures. See Note 2 to the Annual Report for a discussion of certain recent accounting pronouncements not yet adopted by the Company. |