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Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit)

$ 7,304,914

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

Condensed Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Redeemable convertible preferred stock, liquidation preference (in dollars)	$ 0	$ 6,777,338
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	15,000,000
Common stock, shares issued	8,124,923	8,124,923
Common stock, shares outstanding	2,874,330	2,874,330
Series A redeemable convertible preferred stock
Redeemable convertible preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Redeemable convertible preferred stock, shares authorized	0	3,017,488
Redeemable convertible preferred stock, shares issued		3,015,902
Redeemable convertible preferred stock, shares outstanding	0	3,015,902

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Revenue	$ 77,666		$ 203,195
Operating expenses
Cost of revenue	36,634		87,889
Research and development expense	1,239,831	$ 1,126,436	4,414,162	$ 3,275,991
Sales and marketing expense	165,745		519,275
General and administrative expense	1,390,429	1,455,605	3,784,272	3,196,120
Total operating expenses	2,832,639	2,582,041	8,805,598	6,472,111
Loss from operations	(2,754,973)	(2,582,041)	(8,602,403)	(6,472,111)
Interest expense, net	(163,594)	(148,220)	(3,033,238)	(168,384)
Other income	(42,104)		(23,471)
Change in fair value of warrants			(501,617)
Net loss and comprehensive loss	(2,960,671)	(2,730,261)	(12,160,729)	(6,640,495)
Accretion of redeemable convertible preferred stock		(180,832)	(346,374)	(465,841)
Net loss attributable to common stockholders	$ (2,960,671)	$ (2,911,093)	$ (12,507,103)	$ (7,106,336)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.36)	$ (1.01)	$ (2.28)	$ (2.49)
Weighted-average common shares outstanding, basic and diluted (in shares)	8,123,293	2,874,330	5,488,655	2,848,467

CONDENSED STATEMENT OF CHANGES IN CONVERTIBLE PREFERRED STOCK (SERIES A REDEEMABLE CONVERTIBLE PREFERRED STOCK) - USD ($)

9 Months Ended

12 Months Ended

Sep. 30, 2015

Dec. 31, 2014

Increase (decrease) in temporary equity

Beginning Balance

^[1]

$ 7,304,914

Conversion of preferred stock into common stock upon initial public offering

7,651,288

Ending Balance

^[1]

$ 7,304,914

Increase (decrease) in temporary equity

Beginning Balance

$ 7,304,914

Beginning Balance (in shares)

3,015,902

Series A issuance

$ 6,658,241

Series A issuance (in shares)

3,015,902

Conversion of preferred stock into common stock upon initial public offering

$ (7,651,288)

Conversion of preferred stock into common stock upon initial public offering (in shares)

(3,015,902)

Deemed dividends on Series A

$ 263,060

$ 610,889

Accretion of issuance costs

$ 83,314

35,784

Ending Balance

$ 7,304,914

Ending Balance (in shares)

3,015,902

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

CONDENSED STATEMENT OF CHANGES IN COMMON STOCK, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'' EQUITY (DEFICIT) - USD ($)

Common Stock

Additional Paid-in Capital

Accumulated Deficit

Total

Balance at Dec. 31, 2013

$ 267

$ 366,083

$ (801,203)

$ (434,853)

Balance (in shares) at Dec. 31, 2013

2,666,666

Increase Decrease In Stockholders Equity Roll Forward

Stock-based compensation

164,156

Conversion of notes payable

$ 21

524,979

525,000

Conversion of notes payable (in shares)

207,664

Beneficial conversion feature on notes payable

614,557

Warrant, line of credit

114,300

Warrant, transfer agreement

37,840

Deemed dividends on Series A

(610,889)

Accretion of issuance costs

(35,784)

Net loss and comprehensive loss

(8,609,575)

Balance at Dec. 31, 2014

$ 288

1,175,242

(9,410,778)

(8,235,248)

^[1]

Balance (in shares) at Dec. 31, 2014

2,874,330

Increase Decrease In Stockholders Equity Roll Forward

Issuance of common stock in initial public offering, net of discounts and commissions of $1,209,802 and offering costs of $2,897,825

$ 286

15,912,374

15,912,660

Issuance of common stock in initial public offering, net of discounts and commissions (in shares)

2,860,000

Conversion of preferred stock into common stock upon initial public offering

$ 201

7,651,087

7,651,288

Conversion of preferred stock into common stock upon initial public offering (in shares)

2,010,596

Conversion of preferred stock warrant liability into additional paid-in capital

1,150,985

Stock-based compensation

828,049

Conversion of notes payable

$ 37

2,099,963

2,100,000

Conversion of notes payable (in shares)

374,997

Beneficial conversion feature on notes payable

1,202,521

Deemed dividends on Series A

(263,060)

Accretion of issuance costs

(83,314)

Napo license fee abatement

250,000

Issuance of common stock upon exercise of stock options

12,650

Issuance of common stock upon exercise of stock options (in shares)

5,000

Net loss and comprehensive loss

(12,160,729)

Balance at Sep. 30, 2015

$ 812

$ 29,936,497

$ (21,571,507)

$ 8,365,802

Balance (in shares) at Sep. 30, 2015

8,124,923

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

CONDENSED STATEMENT OF CHANGES IN COMMON STOCK, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'' EQUITY (DEFICIT) (Parenthetical) - USD ($)		9 Months Ended
	May 13, 2015	Sep. 30, 2015
Underwriters' over-allotment option
Stock Transactions, Parenthetical Disclosures
Other Financial Services Costs	$ 1,200,000
IPO
Stock Transactions, Parenthetical Disclosures
Other Financial Services Costs	$ 2,900,000
Common Stock \| Underwriters' over-allotment option
Stock Transactions, Parenthetical Disclosures
Other Financial Services Costs		$ 1,209,802
Common Stock \| IPO
Stock Transactions, Parenthetical Disclosures
Other Financial Services Costs		$ 2,897,825

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)

9 Months Ended

Sep. 30, 2015

Sep. 30, 2014

Cash Flows from Operating Activities

Net loss

$ (12,160,729)

$ (6,640,495)

Adjustments to reconcile net loss to net cash used in operating activities:

Gain (loss) on disposal of fixed assets

34,549

Materials cost in connection with license activity

6,287

1,082,626

Warrants issued in connection with transfer agreement

37,840

Warrants issued in connection with line of credit

114,300

Stock-based compensation

828,049

105,610

Amortization of beneficial conversion feature

36,981

Accretion of debt discount

2,493,074

5,514

Revaluation of warrant liability

501,617

Amortization of deferred finance charge

99,882

3,894

Changes in assets and liabilities:

(8,698)

(58,100)

100,000

(329,774)

(66,743)

Deferred finance charges

(197,524)

Other long-term assets

(122,163)

Due to/from parent

(20,790)

(44,622)

312,910

1,660

(675,000)

(421,551)

617,057

Accrued expenses

(669,634)

1,028,781

Total cash used in operations

(10,385,935)

(3,619,257)

Cash Flows from Investing Activities

Purchase of equipment

(23,300)

(55,149)

Sale of equipment

20,600

Change in restricted cash

(4,500,000)

Total Cash Used in Investing Activities

(4,502,700)

(55,149)

Cash Flows from Financing Activities

Proceeds from Issuance of Long-term Debt

5,865,567

Proceeds from issuance of redeemable convertible preferred stock, net

6,658,241

Repayment of convertible notes payable

(100,000)

Repayment of notes payable

(1,000,000)

Proceeds from issuance of redeemable convertible notes payable, net

1,250,000

450,000

Proceeds from issuance of common stock in initial public offering, net

18,810,484

Deferred offering costs

(417,775)

(1,954,007)

Proceeds from exercise of common stock options

12,650

Total Cash Provided by Financing Activities

24,420,926

5,154,234

Net increase in cash and cash equivalents

9,532,291

1,479,828

Cash and cash equivalents, beginning of period

845,192

^[1]

185,367

Cash and cash equivalents, end of period

10,377,483

1,665,195

Supplemental Schedule of Non-Cash Financing and Investing Activities

Interest paid on long-term debt

23,100

Offering costs not paid during the period

1,401,253

Equipment received in connection with license agreement

817,374

Notes payable converted into common stock

525,000

Warrants issued in connection with convertible notes payable

47,479

Conversion of convertible preferred stock to common stock

7,651,288

Conversion preferred stock warrant liability to common stock warrants

1,150,985

Conversion of convertible notes to common stock

2,100,000

Accretion of redeemable convertible preferred stock

346,374

$ 465,841

Abatement of license fee payable to Napo

$ 250,000

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

Organization and Business	9 Months Ended
Organization and Business	Sep. 30, 2015
Organization and Business
Organization and Business	1. Organization and Business Jaguar Animal Health, Inc. (“Jaguar” or the “Company”) was incorporated on June 6, 2013 (inception) in Delaware. The Company, a majority-owned subsidiary of Napo Pharmaceuticals, Inc. (“Napo” or the “Parent”) until May 13, 2015, was formed to develop and commercialize gastrointestinal products for companion and production animals. The Company is an animal health company whose activities since inception have consisted principally of raising capital, recruiting management, and performing research and development. The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding to complete the development and commercialization of its products before another company develops similar products. The Company operates in one segment and is headquartered in San Francisco, California. The following series of transactions between Jaguar and Napo were executed in order to separate the Company’s business from Napo: On June 11, 2013, Jaguar issued 2,666,666 shares of common stock to Napo in exchange for cash and services. On July 1, 2013, Jaguar entered into an employee leasing and overhead agreement (the “Service Agreement”) with Napo, under which Napo agreed to provide Jaguar with the services of certain Napo employees for research and development and the general administrative functions of Jaguar. On January 27, 2014, Jaguar executed an intellectual property license agreement with Napo pursuant to which Napo transferred fixed assets and development materials, and licensed intellectual property and technology to Jaguar. On February 28, 2014, the Service Agreement terminated and the associated employees became employees of Jaguar effective March 1, 2014. See Notes 4 and 5 for the Service Agreement and license agreement details, respectively. Reverse Stock Split In October 2014, the Board of Directors and stockholders approved a 1-for-1.5 reverse stock split (the “Reverse Split”) of the Company’s outstanding shares of common stock and increased the number of authorized shares of common stock from 10,000,000 shares to 15,000,000 shares. The Company effected the Reverse Split on October 27, 2014. Under the terms of the Reverse Split, each share of common stock, issued and outstanding as of such effective date, was automatically reclassified and changed into two-thirds of one share of common stock, without any action by the stockholder. Fractional shares were rounded down to the nearest whole share. All share and per share amounts have been restated to reflect the Reverse Split. Initial Public Offering In May 2015, the Company completed an initial public offering (“IPO”) of its common stock. In connection with its IPO, the Company issued 2,860,000 shares of its common stock at a price to the public of $7.00 per share. The Company’s shares of common stock began trading on the NASDAQ Capital Market on May 13, 2015. As a result of the IPO, the Company received approximately $15.9 million in net proceeds, after deducting underwriting discounts and commissions of $1.2 million and offering expenses of $2.9 million. At the closing of the IPO, 3,015,902 shares of outstanding convertible preferred stock were automatically converted into 2,010,596 shares of common stock. Following the IPO, there were no shares of preferred stock outstanding. In connection with the IPO, the Company amended its Amended and Restated Certificate of Incorporation to change the authorized capital stock to 50,000,000 shares designated as common stock and 10,000,000 shares designated as preferred stock, all with a par value of $0.0001 per share. Liquidity The accompanying condensed financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred recurring operating losses since inception and has an accumulated deficit of $21,571,507 as of September 30, 2015. The Company expects to incur substantial losses in future periods. Further, the Company’s future operations are dependent on the success of the Company’s ongoing development and commercialization efforts. There is no assurance that profitable operations, if ever achieved, could be sustained on a continuing basis. The Company plans to finance its operations and capital funding needs through equity and/or debt financing as well as revenue from future product sales. However, there can be no assurance that additional funding will be available to the Company on acceptable terms on a timely basis, if at all, or that the Company will generate sufficient cash from operations to adequately fund operating needs or ultimately achieve profitability. If the Company is unable to obtain an adequate level of financing needed for the long-term development and commercialization of its products, the Company will need to curtail planned activities and reduce costs. Doing so will likely have an adverse effect on the Company’s ability to execute on its business plan. These matters raise substantial doubt about the ability of the Company to continue in existence as a going concern. The accompanying condensed financial statements do not include any adjustments that might result from the outcome of these uncertainties.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and do not contain all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The accompanying unaudited condensed financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto included in the prospectus that forms part of the Company’s Registration Statement on Form S-1 (File No. 333-198383), which prospectus was filed with the SEC pursuant to Rule 424 on May 14, 2015. In the opinion of management, the accompanying unaudited Condensed Financial Statements reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s interim financial information. The results for the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other period. The balance sheet as of December 31, 2014 has been derived from the audited financial statements as of that date but it does not include all of the information and notes required by U.S. GAAP. The Company has evaluated events and transactions subsequent to the balance sheet date and has disclosed all events or transactions that occurred subsequent to the balance sheet date but prior to filing this Quarterly Report on Form 10-Q that would require recognition or disclosure in the unaudited Condensed Financial Statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its financial statements and the accompanying notes. The accounting policies that reflect the Company’s more significant estimates and judgments and that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results are valuation of stock options; valuation of warrant liabilities; impairment of long lived assets; useful lives for depreciation; valuation adjustments for excess and obsolete inventory; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies. Those estimates could change, and as a result, actual results could differ materially from those estimates. Revenue Recognition Sales to distributors are made under agreements that may provide distributor price adjustments and rights of return under certain circumstances. Until the Company develops sufficient sales history and pipeline visibility, revenue and costs of distributor sales will be deferred until products are sold by the distributor to the distributor’s customers. Revenue recognition depends on notification either directly from the distributor that product has been sold to the distributor’s customer, when the Company has access to the data. The Company will maintain system controls to verify that the reported distributor and third party data is accurate. Deferred revenue on shipments to distributors will reflect the estimated effects of distributor price adjustments, if any, and the estimated amount of gross margin expected to be realized when the distributor sells through product purchased from the Company. Accounts receivable from distributors will be recognized and included in deferred revenue when shipped to the distributor. Inventory will be relieved and revenue recognized, typically upon shipment by the distributor to their customer. The Company had no revenue for the nine months ended September 30, 2014 and $203,195 for the nine months ended September 30, 2015.

Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Measurements

Fair Value Measurements

3. Fair Value Measurements

ASC 820 “Fair Value Measurements,” defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

Level 1 — Quoted prices in active markets for identical assets or liabilities;

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

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, including pricing models, discounted cash flow methodologies and similar techniques.

The following table presents information about the Company’s liability that is measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 and indicates the fair value hierarchy of the valuation:

	Level 1		Level 2		Level 3		Total
As of December 31, 2014 Warrant liability	$	—	$	—	$	601,889	$	601,889

As of September 30, 2015 Warrant liability	$	—	$	—	$	—	$	—

The change in the estimated fair value of the warrant liability is summarized below:

		Beginning Value of Level 3 Liability			Issuance of Common Warrants			Change in Fair Value of Level 3 Liability			Conversion into Additional Paid-in Capital		Ending Fair Value of Level 3 Liability
For the nine months ended September 30, 2015		$	601,889		$	47,479		$	501,617		(1,150,985	)	$	—

The change in the fair value of the level 3 warrant liability is reflected in the statement of operations and comprehensive loss for the nine months ended September 30, 2015. The liability was converted into additional paid-in capital upon the Company’s initial public offering.

There were no other assets or liabilities measured at fair value on a recurring basis at September 30, 2015.

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

Employee Leasing and Overhead Allocation Agreement	9 Months Ended
Employee Leasing and Overhead Allocation Agreement	Sep. 30, 2015
Employee Leasing and Overhead Allocation Agreement
Employee Leasing and Overhead Allocation Agreement	4. Employee Leasing and Overhead Allocation Agreement Effective July 1, 2013, the Company entered into an employee leasing and overhead allocation agreement (the “Service Agreement”) with its parent, Napo. The term of the Service Agreement was from July 1, 2013 through February 28, 2014. In connection with the Service Agreement, Napo provided the Company with the services of Napo employees. The Service Agreement also stipulated that Jaguar would pay for a portion of Napo’s overhead costs. The Company agreed to pay Napo $71,811 per month (consisting of $38,938 for executive compensation, $26,873 for employee services, and $6,000 for overhead costs) for the months from July 2013 through February 2014 as follows: (1) for the period from July 2013 through November 2013, in 2,666,666 shares of common stock and (2) for the period from December 2013 through February 2014, in cash. Commencing March 1, 2014, the relevant Napo employees became employees of the Company and all overhead costs related to the animal health business will be paid by the Company. General and administrative expense recognized under the Service Agreement was $114,858 for the nine months ended September 30, 2014. Research and development expense recognized under the Service Agreement $28,764 for the nine months ended September 30, 2014.

License Agreement	9 Months Ended
License Agreement	Sep. 30, 2015
License Agreement
License Agreement	5. License Agreement On July 11, 2013, Jaguar entered into an option to license Napo’s intellectual property and technology (the “Option Agreement”). Under the Option Agreement, upon the payment of $100,000 in July 2013, the Company obtained an option for a period of two years to execute an exclusive worldwide license to Napo’s intellectual property and technology to use for the Company’s animal health business. The option price was creditable against future license fees to be paid to Napo under the License Agreement (as defined below). In January 2014, the Company exercised its option and entered into a license agreement (the “License Agreement”) with Napo for an exclusive worldwide license to Napo’s intellectual property and technology to permit the Company to develop, formulate, manufacture, market, use, offer for sale, sell, import, export, commercialize and distribute products for veterinary treatment uses and indications for all species of animals. The Company was originally obligated to pay a one-time non-refundable license fee of $2,000,000, less the option fee of $100,000. At the Company’s option, the license fee could have been paid in common stock. Milestone payments aggregating $3,150,000 may also be due to Napo based on regulatory approvals of various veterinary products. In addition to the milestone payments, the Company will owe Napo an 8% royalty on annual net sales of products derived from the Croton lechleri tree, up to $30,000,000 and then, a royalty of 10% on annual net sales of $30,000,000 or more. Additionally, if any other products are developed, the Company will owe Napo a 2% royalty on annual net sales of pharmaceutical prescription products that are not derived from Croton lechleri and a 1% royalty on annual net sales of nonprescription products that are not derived from Croton lechleri. The royalty term expires at the longer of 10 years from the first sale of each individual product or when there is no longer a valid patent claim covering any of the products and a competitive product has entered the market. However, because an IPO of at least $10,000,000 was consummated prior to December 31, 2015, the royalty was reduced to 2% of annual net sales of its prescription products derived from Croton lechleri and 1% of net sales of its nonprescription products derived from Croton lechleri and no milestone payment will be due and no royalties will be owed on any additional products developed. As of September 30, 2015, $2,214 is the amount of royalties due Napo. In addition to receiving a License Agreement to Napo’s intellectual property and technology, the License also transferred to the Company certain materials and equipment. Materials transferred from Napo have been included in research and development expense on the statements of operations and comprehensive loss during the year ended December 31, 2014. Equipment of $817,374 related to the License is included on the balance sheet at September 30, 2015 at the cost paid by Napo, which approximates fair value. As of September 30, 2015, the equipment has not been placed into service. The Company will begin depreciating the equipment on a straight-line basis over its estimated life of 10 years at the time it is placed into service. The Company has agreed under the License Agreement to defend, indemnify and hold Napo, its affiliates, and the officers, directors, employees, consultants and contractors of Napo harmless from and against any losses, costs, damages, liabilities, fees and expenses arising out of any third-party claim related to the Company’s gross negligence, breach of covenants or the manufacture, sale or use of the product or products. In January 2015, the License Agreement was amended to decrease the one-time non-refundable license fee payable from $2,000,000 to $1,750,000 in exchange for acceleration of the payment of the fee. In 2015, payments totalling $1,175,000 will be made, with the balance paid during the first quarter of 2016. Additionally, the terms of the License Agreement were amended to require the mutual agreement of the parties for payment of the license fee to be remitted in the form of the Company’s common stock. The Company may also, at its sole discretion, elect to remit any milestone payments and/or royalties in the form of the Company’s common stock. Given that Napo is a significant shareholder of the Company, the abatement of the license fee amount has been recorded as a capital contribution in the accompanying condensed financial statements.

Accrued Expenses

9 Months Ended

Sep. 30, 2015

Accrued Expenses

Accrued Expenses

6. Accrued Expenses

Accrued expenses at September 30, 2015 and December 31, 2014 consist of the following:

	September 30, 2015		December 31, 2014
Accrued legal costs	$	—	$	738,600
Accrued printing costs	—		275,000
Accrued interest	120,962		29,292
Accrued vacation	173,473		140,408
Accrued compensation and related expense	137,630		—
Other	216,292		134,691

	$	648,357	$	1,317,991

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	7. Commitments and Contingencies Since March 1, 2014, the date the Service Agreement terminated (Note 4), the Company paid Napo $33,897 for rent related to the office space utilized by the Company for the months of March, April and May of 2014. Effective June 26, 2014 the Company entered into a technology transfer and commercial manufacturing agreement (the “Transfer Agreement”) with a contract manufacturer in Italy (the “Manufacturer”), whereby the Company and the Manufacturer will cooperate to develop and refine the manufacturing process for the Company’s prescription and non-prescription products. Pursuant to the Transfer Agreement, the Company was to make prepayments to the Manufacturer as follows: (1) a start-up fee of €500,000, €250,000 of which was to be paid at the earlier to occur of September 15, 2014 or the closing date of an initial public offering and €250,000 of which was to be paid at the time of installation and qualification of the Company’s equipment at their facility, (2) related to the technology transfer, €620,000, €310,000 of which was paid subsequent to the signature of the Transfer Agreement and €310,000 of which was to be paid after the delivery of a final study report, (3) for design of a portion of the Manufacturer’s facility, €100,000 was to be paid within five days of the signature of the Transfer Agreement, and (4) a €300,000 bonus fee payable in two equal installments, the first of which is due by the end of March 2015, with the remainder paid by the end of December 2015. The first €150,000 of the bonus fee payable was paid in May 2015. Additionally, the Transfer Agreement stipulated that the Company was to pay the Manufacturer an aggregate of €500,000 upon the delivery of agreed-upon levels of satisfactory product. Further, the Company issued the Manufacturer warrants to purchase 16,666 shares of common stock with an exercise price of 90% of the initial public offering price, amended to $6.30 in March 2015. (Note 8) Effective February 12, 2015, March 25, 2015 and July 15, 2015 the Company entered into amendments delaying payments to the Manufacturer as follows: i) the €500,000 start-up fee was due by the end of April 2015 and has been paid during the nine months ended September 30, 2015, (ii) related to the technology transfer, of the remaining €310,000, €215,000 was due April 2015 and €95,000 was due June 30, 2015, both of which were paid during the nine months ended September 30, 2015, (iii) related to the design of a portion of the Manufacturer’s facility, the payment has increased to €170,000, €150,000 of which was due at the end of April 2015 and €20,000 was due on June 30, 2015, both of which have been paid during the nine months ended September 30, 2015 (iv) the fees linked to the deliverables are now due €250,000 on December 31, 2015 and €250,000 on March 31, 2016, 2015, (v) the bonus fee payable of €300,000, €150,000 was due at the end of April 2015 and has been paid during the nine months ended September 30, 2015 and €150,000 due at December 31, 2015. In May 2015, the Company paid the start-up fee of €500,000 and the technology transfer fee of €215,000. In accordance with the terms of the Memorandum of Understanding, the Manufacturer will supply 400Kg of SB300 at no cost in anticipation of the future deduction by December 2015. In September 2015, the Company entered into a four year manufacture and supply agreement (the “Supply Agreement”) with a contract manufacturer in India for the manufacture and supply of active pharmaceutical ingredient (“API”). For each calendar year, the Company and the manufacturer will agree to a minimum annual quantity that the Company will purchase. In connection with the Supply Agreement, the Company paid $49,090 in September 2015 as an advance payment for the API, which has been included in prepaid expenses at September 30, 2015. In accordance with a sublease assignment, effective in June 19, 2015, the Company leased 6,008 square fee of office space. The term of the sublease began upon the delivery of the premises, which was July 1, 2015, and will expire on August 31, 2018. The base rent is $29,539 with $500 annual increases. In addition, the Company will be responsible for certain costs and charges specified in the sublease, including operating expenses and taxes. Future minimum lease payments will total $1,054,909.

Debt and Warrants	9 Months Ended
Debt and Warrants	Sep. 30, 2015
Debt and warrants
Debt and Warrants	8. Debt and Warrants From July through September 2013, the Company issued four convertible promissory notes (collectively the “Notes”) for gross aggregate proceeds of $525,000 to various third-party lenders. The Notes bore interest at 8% per annum. The Notes automatically matured and the entire outstanding principal amount, together with accrued interest, was due and payable in cash at the earlier of July 8, 2015 (the “Maturity Date”) or ten business days after the date of consummation of the initial closing of a first equity round of financing. The Company consummated a first equity round of financing prior to the Maturity Date with a pre-money valuation of greater than $3,000,000, and, accordingly, principal and accrued interest was converted into shares of common stock at 75% of the purchase price paid by such equity investors. In connection with the Notes, the Company issued to the noteholders warrants, which became exercisable to purchase an aggregate of 207,664 shares of common stock as of the issuance of the first equity round of financing (the “Warrants”). The Warrants are fully exercisable from the initial date of the first equity round of financing and have a five-year term subsequent to that date. In February 2014, the Company closed its first equity round of financing and sold 2,224,991 shares of Series A convertible preferred stock at a price of $2.2472 per share. The pre-money valuation was in excess of $3,000,000 setting the exercise price of the Warrants at 75% of the purchase price paid by the investors, or $2.5281 (as adjusted for the 1-for-1.5 reverse stock split approved in October 2014) per share. As such, the fair value of the Warrants, $6,895, was recorded as equity in February 2014. The Warrants were valued at $6,895 using the Black-Scholes model with the following assumptions: exercise price of $2.5281, term of five years, volatility of 64%, dividend yield of 0%, and risk-free interest rate of 1.82%. Based on the fair value of the Warrants, the Company used the residual value of the total proceeds from the issuance of the Notes and Warrants to record the Notes on the balance sheet as of issuance of the Notes. Thus, the amount recorded, in the aggregate, for the Notes on issuance was $518,105, net. The debt discount of $6,895 is recorded as interest expense over the five-year term of the Warrants. In February 2014, in connection with the first equity round of financing and issuance of the Series A convertible preferred stock, the noteholders exercised their option to convert their Notes into 207,664 shares of common stock and accrued interest was paid in cash to the noteholders. The accreted interest expense related to the discount on the Notes was $1,443 for the period from January 1, 2014 to the conversion date of the Notes. Upon conversion, the entire remaining debt discount of $4,071 was recorded as interest expense. On June 2, 2014, pursuant to a convertible note purchase agreement, the Company issued convertible promissory notes in the aggregate principal amount of $300,000 to two accredited investors, including a convertible promissory note for $200,000 to a board member to which Series A preferred stock was sold. These notes accrued interest at 3% per annum and automatically were to mature on June 1, 2015. Accrued interest was to be paid in cash upon maturity. Upon the closing of the IPO, the outstanding principal amount automatically converted into 53,571 shares common stock at $5.60, as amended in March 2015. Upon issuance, the Company analyzed the beneficial nature of the conversion terms and determined that a beneficial conversion feature (“BCF”) existed because the effective conversion price on issuance of the notes was less than the fair value at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method and recorded a BCF of $75,000 as a discount to the notes payable and to additional paid-in capital. For the nine months ended September 30, 2015 and 2014, the Company amortized $31,250 and $6,250, respectively, of the discount, which has also been recorded as interest expense. On July 16, 2014, pursuant to a convertible note purchase agreement, the Company issued a convertible promissory note in the principal amount of $150,000 to an accredited investor. This note accrued interest at 3% per annum and automatically was to mature on June 1, 2015. Accrued interest was to be paid in cash upon maturity. Upon the closing of the IPO, the outstanding principal amount automatically converted into 26,785 shares of common stock at $5.60, as amended in March 2015. Upon issuance, the Company analyzed the beneficial nature of the conversion terms and determined that a BCF existed because the effective conversion price was less than the fair value at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method and recorded a BCF of $37,500 as a discount to the notes payable and to additional paid-in capital. For the nine months ended September 30, 2015, the Company amortized $17,857 of the discount, which has also been recorded as interest expense. In connection with the Transfer Agreement (Note 7) the Company issued fully vested and immediately exercisable warrants to the Manufacturer to purchase 16,666 shares of common stock at 90% of the IPO price, amended to $6.30 in March 2015, for a period of five years. The fair value of the warrants, $37,840, was recorded as research and development expense and additional paid-in capital in June 2014. The warrants were originally valued using the Black-Scholes model with the following assumptions: stock price of $4.83, exercise price of $4.35, term of five years, volatility of 49%, dividend yield of 0%, and risk-free interest rate of 1.64%. In August 2014, the Company entered into a standby line of credit with an accredited investor for up to $1,000,000 pursuant to a Line of Credit and Loan Agreement dated August 26, 2014. In connection with the entry into the standby line of credit, the Company issued the lender a fully vested warrant to purchase 33,333 shares of common stock at an exercise price equal to 80% of the IPO price, amended to $5.60 in March 2015, which expires in August 2016. The fair value of the warrants, $114,300, was recorded as interest expense and additional paid-in capital in August 2014. The warrants were originally valued using the Black-Scholes model with the following assumptions: stock price of $8.00, exercise price of $6.40, term of two years, volatility of 52%, dividend yield of 0%, and risk-free interest rate of 0.52%. The line of credit expired on March 31, 2015 and there have been no drawdowns under the facility. On October 30, 2014, the Company entered into a standby bridge financing agreement with two lenders, which was amended and restated on December 3, 2014, which provided a loan commitment in the aggregate principal amount of $1,000,000 (the “Bridge”). Proceeds to the Company were net of a $100,000 debt discount under the terms of the Bridge. This debt discount was recorded as interest expense using the effective interest method, over the six month term of the Bridge. The Bridge became payable upon the IPO. The Bridge was paid in May 2015, including interest thereon in an amount of $321,600. In connection with the Bridge, the lenders were granted warrants to purchase that number of shares of the Company’s common stock determined by dividing $1,000,000 by the exercise price of 80% of the IPO price, amended to $5.60 in March 2015. The fair value of the warrants, $505,348, was originally recorded as a debt discount and liability at December 3, 2014. The warrants were originally valued using the Black-Scholes model with the following assumptions: stock price of $5.01, exercise price of $5.23, term of five years, volatility of 63%, dividend yield of 0%, and risk-free interest rate of 1.61%. Based on the circumstances, the value derived using the Black-Scholes model approximated that which would be obtained using a lattice model. The debt discount was recorded as interest expense over the six month term of the Bridge. Of the aggregate debt discount of $605,348 (warrants and original $100,000 discount), $521,291 was recorded as interest expense during the nine months ended September 30, 2015. Additional financing costs of $104,000 were incurred related to the Bridge and deferred on closing. These are being recognized as interest expense over the six-month term of the Bridge using the effective interest method. During the nine months ended September, 2015, the remaining $86,667 of these deferred financing charges was recorded as interest expense. On December 23, 2014, pursuant to a convertible note purchase agreement, the Company issued convertible promissory notes in the aggregate principal amount of $650,000 to three accredited investors, including a convertible promissory note for $250,000 to the same board member to which the June 2, 2014 $200,000 convertible promissory note was issued and to which Series A preferred stock was sold. These notes accrued interest at 12% per annum and became payable within thirty days following the IPO. Upon consummation of the Company’s IPO, the noteholders converted the notes into 116,070 shares of common stock at a conversion price equal to 80% of the IPO price, amended to $5.60 in March 2015. In connection with these notes, the Company also issued the lenders a fully vested warrant to purchase shares of the Company’s common stock at an exercise price equal to 80% of the IPO price, amended to $5.60 in March 2015. These warrants entitle the noteholders to purchase 58,035 shares of common stock. The fair value of the warrants, $147,943, was recorded as a debt discount and liability at December 23, 2014. The Company amortized the remaining $141,890 of this discount during the nine months ended September 30, 2015. The warrants were originally valued using the Black-Scholes model with the following assumptions: stock price of $4.59, exercise price of $4.15, term of three years, volatility of 49%, dividend yield of 0%, and risk-free interest rate of 1.10%. Based on the circumstances, the value derived using the Black-Scholes model approximated that which would be obtained using a lattice model. The debt discount was be recorded as interest expense over the one hundred ninety days from issuance of the notes through their first maturity date of July 31, 2015, beginning in January 2015. The Company analyzed the beneficial nature of the conversion terms and determined that a BCF existed because the effective conversion price was less than the fair value at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method. A BCF of $502,057 has been recorded as a discount to the notes payable and to additional paid-in capital. For the nine months ended September 30, 2015, the Company amortized the remaining $484,326 of the BCF which has also been recorded as interest expense. In February 2015, the Company issued convertible promissory notes to two accredited investors in the aggregate principal amount of $250,000. These notes were issued pursuant to the convertible note purchase agreement dated December 23, 2014. Principal and interest of $103,912 was paid in May 2015 for $100,000 of these notes. In March 2015, the Company entered into a non-binding letter of intent with Dechra Pharmaceuticals PLC (“Dechra”). In connection therewith, Dechra paid the Company $1,000,000. At March 31, 2015, the Company had recorded this amount as a loan advance on the balance sheet. In April 2015, Dechra purchased $1,000,000 of convertible promissory notes from the Company, the terms of which provided that such notes were to be converted into shares of the Company’s common stock upon the closing of an IPO at a conversion price of $5.60 per share. In connection with the purchase of the notes, the Company issued Dechra a warrant to purchase 89,285 shares at $5.60 per share, which expires December 31, 2017. The notes accrued simple interest of 12% per annum and, upon consummation of the Company’s IPO in May 2015, converted into 178,571 shares of the Company’s common stock. The Company analyzed the beneficial nature of the conversion terms and determined that a BCF existed because the effective conversion price was less than the fair value at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method. A BCF of for the full face value was recorded as a discount to the notes payable and to additional paid-in capital. For the nine months ended June 30, 2015, the Company amortized the entire BCF of $1,000,000 which has also been recorded as interest expense. In August 2015, the Company entered into a loan and security agreement with a lender for up to $8,000,000, which provided for an initial loan commitment of $6,000,000. The loan agreement requires the Company to maintain $4,500,000 of the proceeds in cash, which amount may be reduced or eliminated on the achievement of certain milestones. An additional $2,000,000 is available contingent on the achievement of certain further milestones. The agreement has a term of three years, with interest only payments through February 29, 2016. Thereafter, principal and interest payments will be made with an interest rate of 9.9%. Additionally, there will be a balloon interest payment of $560,000 on August 1, 2018. This amount is being recognized over the term of the loan agreement and the effective interest rate, considering the balloon payment, is 15.0%. Proceeds to the Company were net of a $134,433 debt discount under the terms of the loan agreement. This debt discount is being recorded as interest expense, using the interest method, over the term of the loan agreement. Under the agreement, the Company is entitled to prepay principal and accrued interest upon five days prior notice to the lender. In the event of prepayment, the Company is obligated to pay a prepayment charge. If such prepayment is made during any of the first twelve months of the loan agreement, the prepayment charge will be (a) during such time as the Company is required to maintain a minimum cash balance, 2% of the minimum cash balance amount plus 3% of the difference between the amount being prepaid and the minimum cash balance, and (b) after such time as the Company is no longer required to maintain a minimum cash balance, 3% of the amount being prepaid. If such prepayment is made during any time after the first twelve months of the loan agreement, 1% of the amount being prepaid.

Common Stock	9 Months Ended
Common Stock	Sep. 30, 2015
Common Stock.
Common Stock	9. Common Stock On May 18, 2015, the Company filed an amended and restated certificate of incorporation was amended and restated authorizing the Company to issue 50,000,000 of common stock $0.0001 par value.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
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+ Details

Stock-Based Awards	9 Months Ended
Stock-Based Awards	Sep. 30, 2015
Stock-Based Awards
Stock-Based Awards	10. Stock-Based Awards 2013 Equity Incentive Plan Effective November 1, 2013, the Company’s board of directors and sole stockholder adopted the Jaguar Animal Health, Inc. 2013 Equity Incentive Plan (the “2013 Plan”). The 2013 Plan allows the Company’s board of directors to grant stock options, restricted stock awards and restricted stock unit awards to employees, officers, directors and consultants of the Company. As of December 31, 2013, the Company had reserved 300,000 shares of its common stock for issuance under the 2013 Plan. In April 2014, the board of directors amended the 2013 Plan to increase the shares reserved for issuance to 847,533 shares. Following the effective date of the IPO and after effectiveness of any grants under the 2013 Plan that are contingent on the IPO, the 2013 Plan was terminated and no additional stock awards will be granted under the 2013 Plan. 2014 Equity Incentive Plan In July 2014, the Company adopted the Jaguar Animal Health, Inc. 2014 Stock Incentive Plan (“2014 Plan”). The 2014 Plan provides for the grant of incentive stock options to eligible employees, and for the grant of nonstatutory stock options, restricted stock, and RSUs to eligible employees, directors and consultants. The Company has reserved 333,333 shares of common stock for issuance pursuant to the 2014 Plan. During the nine months ended September 30, 2015, 147,500 options were granted, 90,000 of which were granted to members of the Company’s board of directors, 25,000 to an outside consultant and 32,500 to employees. Following the effective date of the IPO, any stock awards granted by the Company will be under the 2014 Plan. The Company has 185,833 shares available for grant at September 30, 2015. Stock-Based Compensation The Company recognizes compensation expense for only the portion of the awards that are expected to vest. The Company recorded stock-based compensation expense of $429,468 as research and development expense, $44,462 as selling and marketing expense and $354,119 as general and administrative expense for the nine months ended September 30, 2015.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2015
Related Party Transactions
Related Party Transactions	11. Related Party Transactions The Company was a majority-owned subsidiary of Napo until its IPO. The Company had total outstanding receivables from Napo in the amount of $4,209 as of September 30, 2015. The Company had outstanding liabilities to Napo in the amount of $16,581 as of December 31, 2014. Additionally, Lisa A. Conte, Chief Executive Officer of the Company, is also the interim Chief Executive Officer of Napo Pharmaceuticals, Inc.

Net Loss Per Share Attributable to Common Stockholders

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Net Loss Per Share Attributable to Common Stockholders

9 Months Ended

Sep. 30, 2015

Net Loss Per Share Attributable to Common Stockholders

12. Net Loss Per Share Attributable to Common Stockholders

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position.

The following outstanding shares of common stock equivalents have been excluded from diluted net loss per common share for the nine months ended September 30, 2015 and 2014 because their inclusion would be anti-dilutive:

	Nine Months Ended September 30,
	2015	2014
Shares of common stock issuable upon conversion of preferred stock	—	2,010,596
Shares of common stock subject to outstanding options and restricted stock units	905,302	832,407
Warrants to purchase common stock	605,872	257,663

Total shares of common stock equivalents	1,511,174	3,100,666

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2015
Subsequent Events
Subsequent Events	13. Subsequent Events The Company completed an evaluation of the impact of subsequent events through November 13, 2015, the date these financial statements were issued. In October 2015, the Company entered into a formulation development and manufacturing contract with a manufacturer, whereby the manufacturer will provide enteric-coated tablets to the Company for use in animals. The total amount committed to be paid by the Company during 2015 and 2016 under this contract is estimated to be approximately $850,000.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2015
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and do not contain all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The accompanying unaudited condensed financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto included in the prospectus that forms part of the Company’s Registration Statement on Form S-1 (File No. 333-198383), which prospectus was filed with the SEC pursuant to Rule 424 on May 14, 2015. In the opinion of management, the accompanying unaudited Condensed Financial Statements reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s interim financial information. The results for the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other period. The balance sheet as of December 31, 2014 has been derived from the audited financial statements as of that date but it does not include all of the information and notes required by U.S. GAAP. The Company has evaluated events and transactions subsequent to the balance sheet date and has disclosed all events or transactions that occurred subsequent to the balance sheet date but prior to filing this Quarterly Report on Form 10-Q that would require recognition or disclosure in the unaudited Condensed Financial Statements.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its financial statements and the accompanying notes. The accounting policies that reflect the Company’s more significant estimates and judgments and that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results are valuation of stock options; valuation of warrant liabilities; impairment of long lived assets; useful lives for depreciation; valuation adjustments for excess and obsolete inventory; deferred taxes and valuation allowances on deferred tax assets; and evaluation and measurement of contingencies. Those estimates could change, and as a result, actual results could differ materially from those estimates.
Revenue Recognition	Revenue Recognition Sales to distributors are made under agreements that may provide distributor price adjustments and rights of return under certain circumstances. Until the Company develops sufficient sales history and pipeline visibility, revenue and costs of distributor sales will be deferred until products are sold by the distributor to the distributor’s customers. Revenue recognition depends on notification either directly from the distributor that product has been sold to the distributor’s customer, when the Company has access to the data. The Company will maintain system controls to verify that the reported distributor and third party data is accurate. Deferred revenue on shipments to distributors will reflect the estimated effects of distributor price adjustments, if any, and the estimated amount of gross margin expected to be realized when the distributor sells through product purchased from the Company. Accounts receivable from distributors will be recognized and included in deferred revenue when shipped to the distributor. Inventory will be relieved and revenue recognized, typically upon shipment by the distributor to their customer. The Company had no revenue for the nine months ended September 30, 2014 and $203,195 for the nine months ended September 30, 2015.

Summary of information about the liability that is measured at fair value on a recurring basis

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Measurements

	Level 1		Level 2		Level 3		Total
As of December 31, 2014 Warrant liability	$	—	$	—	$	601,889	$	601,889

As of September 30, 2015 Warrant liability	$	—	$	—	$	—	$	—

Summary of change in the estimated fair value of the warrant liability

		Beginning Value of Level 3 Liability			Issuance of Common Warrants			Change in Fair Value of Level 3 Liability			Conversion into Additional Paid-in Capital		Ending Fair Value of Level 3 Liability
For the nine months ended September 30, 2015		$	601,889		$	47,479		$	501,617		(1,150,985	)	$	—

Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2015

Accrued Expenses

Schedule of accrued expenses

	September 30, 2015		December 31, 2014
Accrued legal costs	$	—	$	738,600
Accrued printing costs	—		275,000
Accrued interest	120,962		29,292
Accrued vacation	173,473		140,408
Accrued compensation and related expense	137,630		—
Other	216,292		134,691

	$	648,357	$	1,317,991

Net Loss Per Share Attributable to Common Stockholders (Tables)

9 Months Ended

Sep. 30, 2015

Net Loss Per Share Attributable to Common Stockholders

Schedule of outstanding potentially dilutive securities excluded from the calculation of diluted net loss per common share

	Nine Months Ended September 30,
	2015	2014
Shares of common stock issuable upon conversion of preferred stock	—	2,010,596
Shares of common stock subject to outstanding options and restricted stock units	905,302	832,407
Warrants to purchase common stock	605,872	257,663

Total shares of common stock equivalents	1,511,174	3,100,666

Organization and Business (Details)

1 Months Ended

3 Months Ended

9 Months Ended

May 13, 2015

USD ($)

$ / shares

Oct. 27, 2014

Jul. 01, 2013

Jun. 11, 2013

May 31, 2015

$ / shares

Oct. 31, 2014

Sep. 30, 2015

USD ($)

$ / shares

Sep. 30, 2014

USD ($)

Sep. 30, 2015

USD ($)

segment

$ / shares

Sep. 30, 2014

USD ($)

May 18, 2015

$ / shares

Dec. 31, 2014

USD ($)

$ / shares

Oct. 26, 2014

Number of segments | segment

General and administrative expense | $

$ 1,390,429

$ 1,455,605

$ 3,784,272

$ 3,196,120

Research and development expense | $

$ 1,239,831

$ 1,126,436

$ 4,414,162

3,275,991

Reverse Stock Split

50,000,000

15,000,000

Net proceeds from initial public offering | $

$ 18,810,484

Preferred stock, shares authorized | shares

50,000,000

15,000,000

10,000,000

Common stock, par value (in dollars per share) | $ / shares

$ 0.0001

Preferred stock, par value (in dollars per share) | $ / shares

$ 0.0001

Deferred offering costs | $

^[1]

$ 2,480,049

Liquidity

Accumulated deficit | $

$ (21,571,507)

$ (9,410,778)

^[1]

IPO

Underwriting discounts, commissions, and estimated offering expenses | $

$ 2,900,000

Underwriters' over-allotment option

Underwriting discounts, commissions, and estimated offering expenses | $

1,200,000

Common Stock

Reverse Stock Split

Reverse stock split ratio

0.667

15,000,000

10,000,000

Shares issued (in shares) | shares

2,860,000

15,000,000

10,000,000

Common Stock | IPO

Shares issued (in shares) | shares

2,860,000

Shares issued (price per share) | $ / shares

$ 7.00

Net proceeds from initial public offering | $

$ 15,900,000

Underwriting discounts, commissions, and estimated offering expenses | $

$ 2,897,825

Issuance of common stock upon conversion (in shares) | shares

2,010,596

Common Stock | Underwriters' over-allotment option

Underwriting discounts, commissions, and estimated offering expenses | $

1,209,802

Napo

Number of shares issued in exchange for cash and services | shares

2,666,666

Service Agreement

Research and development expense | $

$ 28,764

Service Agreement | Napo

Number of shares issued in exchange for cash and services | shares

2,666,666

General and administrative expense | $

$ 114,858

Preferred shares outstanding | shares

3,015,902

Series A redeemable convertible preferred stock | IPO

Shares automatically converted at closing of IPO (in shares) | shares

3,015,902

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

Summary of Significant Accounting Policies (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenue Recognition
Deferred revenue	$ 203,195	$ 0

Fair Value Measurements (Details)

Dec. 31, 2014

USD ($)

Warrant liability

$ 601,889

^[1]

601,889

$ 601,889

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

Fair Value Measurements (Details 2) - USD ($)

9 Months Ended

12 Months Ended

Sep. 30, 2015

Dec. 31, 2014

Beginning value of warrant liability

^[1]

$ 601,889

Issuance of Common Warrants

47,479

Conversion into Additional Paid-in Liability

1,202,521

$ 614,557

Ending value of warrant liability

^[1]

601,889

Assets measured at fair value on a recurring basis

Recurring

Beginning value of warrant liability

601,889

Ending value of warrant liability

601,889

Level 3 | Recurring

Beginning value of warrant liability

601,889

Issuance of Common Warrants

47,479

Change in Fair Value of Level 3 Liability

501,617

Conversion into Additional Paid-in Liability

$ (1,150,985)

Ending value of warrant liability

$ 601,889

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

Employee Leasing and Overhead Allocation Agreement (Details) - USD ($)			3 Months Ended		9 Months Ended
	Jul. 01, 2013	Jun. 11, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Total operating expenses			$ 2,832,639	$ 2,582,041	$ 8,805,598	$ 6,472,111
General and administrative expense			1,390,429	1,455,605	3,784,272	3,196,120
Research and development expense			$ 1,239,831	$ 1,126,436	4,414,162	3,275,991
Napo
Number of shares issued		2,666,666
Service Agreement
Research and development expense					$ 28,764
Service Agreement \| Napo
Number of shares issued	2,666,666
General and administrative expense						$ 114,858
Service Agreement \| Napo \| Monthly
Executive compensation expense per month	$ 38,938
Employee services expense per month	26,873
Overhead costs per month	6,000
Total operating expenses	$ 71,811

License Agreement (Details) - USD ($)

1 Months Ended

9 Months Ended

12 Months Ended

Jan. 31, 2015

Jan. 31, 2014

Jul. 31, 2013

Sep. 30, 2015

Dec. 31, 2015

Dec. 31, 2014

Property and equipment, net

$ 834,387

$ 872,523

^[1]

Option Agreement | Napo

License fees paid

$ 100,000

Term of agreement

2 years

License Agreement | Napo

Payment obligation of one-time non-refundable license fee

$ 1,750,000

$ 2,000,000

Option fee

100,000

Milestone payments due

$ 3,150,000

Royalty expiration term from the first sale of each individual product

10 years

Minimum proceeds from IPO prior to December 31, 2015, required for royalty reduction

$ 10,000,000

Milestone payments due in the event of minimum proceeds from IPO

$ 0

Royalties due

$ 2,214

Property and equipment, net

$ 817,374

Estimated life

10 years

License Agreement | Napo | Scenario, Forecast

License Agreement | Napo | Products derived from Croton Lechleri

License fees paid

$ 1,175,000

Royalty rate for net sales below revenue base (as a percent)

8.00%

Net product sales upon which royalty rate increases

$ 30,000,000

Royalty rate for net sales above revenue base (as a percent)

10.00%

Royalties payments due in the event of minimum proceeds from IPO

$ 0

License Agreement | Napo | Prescription products derived from Croton Lechleri

Royalty rate in the event of an IPO in excess of a specified amount

2.00%

License Agreement | Napo | Nonprescription products derived from Croton Lechleri

Royalty rate in the event of an IPO in excess of a specified amount

1.00%

License Agreement | Napo | Pharmaceutical prescription products not derived from Croton Lechleri

Royalty on annual net sales of products (as a percent)

2.00%

License Agreement | Napo | Nonprescription products not derived from Croton Lechleri

Royalty on annual net sales of products (as a percent)

1.00%

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

Accrued Expenses (Details) - USD ($)

Sep. 30, 2015

Dec. 31, 2014

Accrued Expenses

Accrued legal costs

$ 738,600

Accrued printing costs

275,000

Accrued interest

$ 120,962

29,292

Accrued vacation

173,473

140,408

Accrued compensation and related expense

137,630

Other

216,292

134,691

Total

$ 648,357

$ 1,317,991

^[1]

[1]	The condensed balance sheet at December 31, 2014 is derived from the audited financial statements at that date included in the Company’s prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(4) on May 14, 2015.

Commitments and Contingencies (Details) - USD ($)		3 Months Ended
Commitments and Contingencies (Details) - USD ($)	Jun. 19, 2015	May 31, 2014
Commitments and Contingencies
Rent related to the office space	$ 29,539
Napo
Commitments and Contingencies
Rent related to the office space		$ 33,897

Commitments and Contingencies (Details 2)			1 Months Ended		3 Months Ended		9 Months Ended
Commitments and Contingencies (Details 2)	Jun. 19, 2015 USD ($) ft²	Jun. 26, 2014 EUR (€) item shares	Sep. 30, 2015 EUR (€)	May 31, 2015 EUR (€)	Dec. 31, 2015 EUR (€) item	Sep. 30, 2013 USD ($) item	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 EUR (€)	Apr. 30, 2015 EUR (€)	Mar. 31, 2015 $ / shares	Mar. 31, 2015 EUR (€)	Mar. 25, 2015 EUR (€)	Aug. 31, 2014 $ / shares
Commitments and Contingencies
Area of office space \| ft²	6,008
Base rent \| $	$ 29,539
Annual increase in monthly rent \| $	500
Future minimum lease payments \| $	$ 1,054,909
Gross aggregate proceeds \| $							$ 1,250,000	$ 450,000
Exercise price (in dollars per share) \| $ / shares															$ 6.40
Convertible promissory notes
Commitments and Contingencies
Gross aggregate proceeds \| $						$ 525,000
Interest rate (as a percent)						8.00%
Number of Convertible Promissory Notes Issued \| item						4
Debt Instrument Number of Business Days After Date of Consummation of Initial Closing of First Equity Round of Financing when Debt Instrument Is Due						10 days
Transfer Agreement \| SB300 \| Scenario, Forecast
Commitments and Contingencies
Amount of product supplied at no cost (in Kg) \| item					400
Transfer Agreement \| Manufacturer
Commitments and Contingencies
Prepayment of start-up fee		€ 500,000	€ 500,000
Prepayment of start-up fee which is to be paid at the earlier to occur of September 15, 2014 or the closing date of an initial public offering		250,000
Prepayment of start-up fee which is to be paid at the time of installation and qualification of the Company's equipment		250,000
Prepayment related to technology transfer		620,000		€ 215,000										€ 310,000
Prepayment related to technology transfer which is to be paid within five days of the signature of the Transfer Agreement		310,000								€ 95,000	€ 215,000
Prepayment related to technology transfer which is to be paid after the delivery of a final study report		310,000
Prepayment for design of a portion of the Manufacturer's facility which is to be paid within five days of the signature of the Transfer Agreement		€ 100,000								20,000	150,000
Increase in prepayment for design of portion of manufacturer facility payable within specified days of signature of agreement														170,000
Period within which prepayment for design of a portion of the Manufacturer's facility is payable from signature of the Transfer Agreement		5 days
Prepayment Of StartUp Fee				500,000
Bonus fee payable		€ 300,000												€ 300,000
Bonus fee payable due within specified number of days of signature agreement											€ 150,000
Bonus fee paid				€ 150,000
Number of installments \| item		2
Aggregate amount payable to Manufacturer upon the delivery of agreed-upon levels of satisfactory product pursuant to the agreement		€ 500,000								€ 250,000			€ 250,000
Number of warrants issued to purchase shares of common stock (in shares) \| shares		16,666
Exercise price as a percentage of initial public offering price		90.00%
Exercise price (in dollars per share) \| $ / shares												$ 6.30
Transfer Agreement \| Manufacturer \| Scenario, Forecast
Commitments and Contingencies
Bonus fee payable due within specified number of days of signature agreement					€ 150,000
Supply Agreement \| API
Commitments and Contingencies
Advance payment \| $									$ 49,090
Term of agreement			4 years

Debt and Warrants (Details)

1 Months Ended

2 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

15 Months Ended

Dec. 23, 2014

USD ($)

item

$ / shares

Dec. 03, 2014

USD ($)

$ / shares

Oct. 30, 2014

USD ($)

item

Jul. 16, 2014

USD ($)

$ / shares

Jun. 26, 2014

USD ($)

$ / shares

Jun. 26, 2014

USD ($)

$ / shares

Jun. 02, 2014

USD ($)

item

$ / shares

Aug. 31, 2015

USD ($)

May 31, 2015

USD ($)

Mar. 31, 2015

USD ($)

$ / shares

Feb. 28, 2015

USD ($)

item

Aug. 31, 2014

USD ($)

$ / shares

Feb. 28, 2014

USD ($)

$ / shares

Feb. 28, 2014

USD ($)

$ / shares

Sep. 30, 2013

USD ($)

item

Jun. 30, 2014

USD ($)

Sep. 30, 2015

USD ($)

Sep. 30, 2014

USD ($)

Dec. 31, 2014

USD ($)

Mar. 31, 2015

USD ($)

$ / shares

Aug. 01, 2018

USD ($)

Mar. 01, 2016

May 13, 2015

$ / shares

Debt, Convertible Promissory Notes and Common Stock Warrants

Gross aggregate proceeds

$ 1,250,000

$ 450,000

$ 6.40

$ 8.00

52.00%

0.00%

Proceeds required to be maintained in cash

0.52%

Net amount of Notes

150,000

$ 424,674

^[1]

Interest Paid

23,100

4,500,000

Transfer Agreement | Manufacturer

Debt, Convertible Promissory Notes and Common Stock Warrants

Number of warrants issued to purchase shares of common stock (in shares) | shares

16,666

Exercise price as a percentage of initial public offering price

$ 6.30

90.00%

Debt, Convertible Promissory Notes and Common Stock Warrants

Issuance of convertible preferred stock (in shares) | shares

2,224,991

3,015,902

Original issue price (in dollars per share) | $ / shares

$ 2.2472

Warrants | Transfer Agreement | Manufacturer

Debt, Convertible Promissory Notes and Common Stock Warrants

$ 6.30

Warrants | Common Stock | Transfer Agreement | Manufacturer

5 years

Debt, Convertible Promissory Notes and Common Stock Warrants

Number of warrants issued to purchase shares of common stock (in shares) | shares

16,666

$ 4.35

$ 37,840

$ 4.83

5 years

49.00%

0.00%

Exercise price as a percentage of initial public offering price

1.64%

90.00%

Standby bridge financing agreement

Debt, Convertible Promissory Notes and Common Stock Warrants

$ 5.23

$ 505,348

$ 5.01

5 years

6 months

63.00%

0.00%

Aggregate principal amount of bridge financing

1.61%

$ 1,000,000

Exercise price as a percentage of initial public offering price

$ 605,348

80.00%

Number of lenders | item

Interest Paid

$ 321,600

Value to be divided by IPO exercise price to determine number of warrants granted

$ 1,000,000

Standby bridge financing agreement | IPO

Debt, Convertible Promissory Notes and Common Stock Warrants

Standby bridge financing agreement | Interest Expense.

$ 5.60

Debt, Convertible Promissory Notes and Common Stock Warrants

6 months

$ 100,000

Additional financing costs

$ 521,291

$ 104,000

86,667

Convertible promissory notes

Debt, Convertible Promissory Notes and Common Stock Warrants

Number of convertible promissory notes issued | item

Number of Accredited Investors | item

Gross aggregate proceeds

$ 525,000

Number of business days after the date of consummation of the initial closing of a first equity round of financing, when the debt instrument is due

8.00%

10 days

Pre-money valuation threshold amount

$ 3,000,000

Aggregate principal amount

$ 250,000

Number of shares issued for notes converted | shares

$ 4,071

$ 1,443

Net amount of Notes

$ 518,105

207,664

Principal and interest paid on debt

103,912

Retirement of convertible promissory notes

$ 100,000

Convertible promissory notes | Interest Expense.

8.00%

Debt, Convertible Promissory Notes and Common Stock Warrants

Convertible promissory notes | Dechra Pharmaceuticals PLC

$ 6,895

Debt, Convertible Promissory Notes and Common Stock Warrants

Number of warrants issued to purchase shares of common stock (in shares) | shares

12.00%

89,285

Investment Warrants Expiration Date

$ 5.60

Dec. 31, 2017

Aggregate principal amount

$ 1,000,000

Number of shares issued for notes converted | shares

178,571

Convertible promissory notes | Dechra Pharmaceuticals PLC | IPO

12.00%

Debt, Convertible Promissory Notes and Common Stock Warrants

Convertible promissory notes | Warrants | Common Stock

$ 5.60

Debt, Convertible Promissory Notes and Common Stock Warrants

Number of warrants issued to purchase shares of common stock (in shares) | shares

207,664

Warrant term

5 years

Exercise price as a percentage of purchase price paid by equity investors when pre-money valuation threshold amount is achieved

75.00%

Exercise price as a percentage of purchase price paid by equity investors

75.00%

Minimum pre-money valuation amount

$ 3,000,000

$ 2.5281

$ 6,895

$ 2.5281

5 years

64.00%

0.00%

Convertible note purchase agreement

1.82%

Debt, Convertible Promissory Notes and Common Stock Warrants

Number of Accredited Investors | item

Gross aggregate proceeds

$ 650,000

Number of business days after the date of consummation of the initial closing of a first equity round of financing, when the debt instrument is due

12.00%

3.00%

30 days

Number of warrants issued to purchase shares of common stock (in shares) | shares

58,035

$ 4.15

$ 5.60

$ 147,943

Conversion price (in dollars per share) | $ / shares

$ 4.59

$ 5.60

3 years

49.00%

0.00%

Aggregate principal amount

1.10%

$ 150,000

$ 300,000

Number of shares issued for notes converted | shares

$ 6,250

141,890

26,785

53,571

Aggregate principal amount issued to board member to which Series A preferred stock was sold

$ 250,000

$ 200,000

Beneficial conversion feature

$ 502,057

$ 37,500

$ 75,000

Convertible note purchase agreement | IPO

12.00%

3.00%

Debt, Convertible Promissory Notes and Common Stock Warrants

Number of shares issued for notes converted | shares

5.60

116,070

Exercise price as a percentage of initial public offering price

80.00%

Convertible note purchase agreement | Interest Expense.

Debt, Convertible Promissory Notes and Common Stock Warrants

Beneficial conversion feature

$ 31,250

17,857

484,326

Convertible note purchase agreement | Dechra Pharmaceuticals PLC

Debt, Convertible Promissory Notes and Common Stock Warrants

Line of credit and loan agreement

$ 1,000,000

Debt, Convertible Promissory Notes and Common Stock Warrants

Number of warrants issued to purchase shares of common stock (in shares) | shares

33,333

$ 5.60

$ 114,300

Exercise price as a percentage of initial public offering price

2 years

80.00%

Drawdown amount

$ 0

Line of credit and loan agreement | Maximum

Debt, Convertible Promissory Notes and Common Stock Warrants

Stand-by line of credit

$ 1,000,000

Maximum borrowing capacity

$ 1,000,000

Loan and security agreement

Debt, Convertible Promissory Notes and Common Stock Warrants

Effective interest rate

15.00%

Maximum borrowing capacity

$ 134,433

Stand-by line of credit

8,000,000

8,000,000

Initial loan commitment

6,000,000

Proceeds required to be maintained in cash

4,500,000

Additional borrowing capacity contingent on achievement of milestones

$ 2,000,000

Term of agreement

3 years

Prior notification period required for pre-payment of principal and accrued interest (in days)

$ 5

Loan and security agreement | Scenario, Forecast

Debt, Convertible Promissory Notes and Common Stock Warrants

9.90%