0001437749-21-012167 | 10-Q | XBRL Viewer

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2021	May 12, 2021
Document Information [Line Items]
Entity Registrant Name	KEMPHARM, INC
Entity Central Index Key	0001434647
Trading Symbol	kmph
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		28,507,297
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Title of 12(b) Security	Common

Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 75,917	$ 4,213
Accounts and other receivables	11,308	2,579
Prepaid expenses and other current assets	395	1,481
Restricted cash	109	109
Total current assets	87,729	8,382
Property and equipment, net	975	1,039
Operating lease right-of-use assets	1,294	1,350
Other long-term assets	437	438
Total assets	90,435	11,209
Liabilities and stockholders' equity (deficit)
Accounts payable and accrued expenses	2,855	6,647
Current portion of operating lease liabilities	336	327
Current portion of loans payable	683	390
Other current liabilities	364	172
Total current liabilities	4,238	7,536
Convertible notes, less current portion, net		67,658
Derivative and warrant liability	334	304
Operating lease liabilities, less current portion	1,500	1,587
Loans payable	98	391
Other long-term liabilities	14	145
Total liabilities	6,184	77,621
Commitments and contingencies (Note D)
Stockholders’ equity (deficit):
Common stock, $0.0001 par value, 250,000,000 shares authorized, 28,480,156 shares issued and outstanding as of March 31, 2021 (unaudited); 4,537,321 shares issued and outstanding as of December 31, 2020	3
Additional paid-in capital	353,018	192,062
Accumulated deficit	(268,770)	(258,474)
Total stockholders' equity (deficit)	84,251	(66,412)
Total liabilities and stockholders' equity (deficit)	90,435	11,209
Series A Convertible Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock
Series B-1 Convertible Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock
Series B-2 Convertible Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock
Undesignated Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock

Unaudited Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue	$ 12,117	$ 2,089
Operating expenses:
Royalty and direct contract acquisition costs	1,000	663
Research and development	2,265	2,126
General and administrative	1,892	2,245
Severance expense		830
Total operating expenses	5,157	5,864
Income (loss) from operations	6,960	(3,775)
Other (expense) income:
Loss on extinguishment of debt	(16,885)
Interest expense related to amortization of debt issuance costs and discount	(150)	(571)
Interest expense on principal	(199)	(1,260)
Fair value adjustment related to derivative and warrant liability	(30)	75
Interest and other income (expense), net	8	(223)
Total other expenses	(17,256)	(1,979)
Loss before income taxes	(10,296)	(5,754)
Income tax benefit (expense)
Net loss	(10,296)	(5,754)
Deemed dividend	(37,444)
Net loss attributable to common stockholders	$ (47,740)	$ (5,754)
Basic and diluted net loss per share of common stock:
Net loss (in dollars per share)	$ (0.54)	$ (1.92)
Net loss attributable to common stockholders (in dollars per share)	(2.49)	(1.92)
Weighted average number of shares of common stock outstanding:
Basic and diluted (in dollars per share)	$ 19,146,270	$ 3,004,559

Unaudited Condensed Statements of Changes in Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Underwritten Public Offering [Member] Common Stock [Member]	Underwritten Public Offering [Member] Additional Paid-in Capital [Member]	Underwritten Public Offering [Member]	Equity Line of Credit [Member] Additional Paid-in Capital [Member]	Equity Line of Credit [Member]	Optional Exchange Principal Amount [Member] Additional Paid-in Capital [Member]	Optional Exchange Principal Amount [Member]	Inducement Warrants [Member] Common Stock [Member]	Inducement Warrants [Member] Additional Paid-in Capital [Member]	Inducement Warrants [Member]	Warrants to Purchase Common Stock [Member] Additional Paid-in Capital [Member]	Warrants to Purchase Common Stock [Member]	Exchange Warrants [Member] Additional Paid-in Capital [Member]	Exchange Warrants [Member]	Conversion of Facility Notes into Series B-2 Preferred Stock [Member] Preferred Stock [Member] Series B-2 Convertible Preferred Stock [Member]	Conversion of Facility Notes into Series B-2 Preferred Stock [Member]	Conversion of Series B-2 Preferred Stock into Common Stock [Member] Preferred Stock [Member] Series B-2 Convertible Preferred Stock [Member]	Conversion of Series B-2 Preferred Stock into Common Stock [Member] Common Stock [Member]	Conversion of Series B-2 Preferred Stock into Common Stock [Member] Additional Paid-in Capital [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2019																					$ 171,258	$ (245,714)	$ (74,456)
Net loss																						(5,754)	(5,754)
Stock-based compensation expense																					1,029		1,029
Issuance of common stock in connection with Public Offering, net of discounts and commissions				$ 1,112	$ 1,112	$ 9,600	$ 9,600
Offering expenses charged to equity																					(327)		(327)
Balance at Mar. 31, 2020																					182,793	(251,468)	(68,675)
Change in estimated deferred offering costs				$ 121	$ 121
Balance at Dec. 31, 2020																					192,062	(258,474)	(66,412)
Net loss																						(10,296)	(10,296)
Stock-based compensation expense																					675		675
Issuance of common stock in connection with Public Offering, net of discounts and commissions	$ 1	$ 49,284	$ 49,285
Issuance of common stock in connection with the exercise of warrants								$ 1	$ 40,390	$ 40,391	$ 25,593	$ 25,593
Fair value of warrants issued									$ 38,437	$ 38,437			$ 15,990	$ 15,990
Issuance of stock as a result of conversion															$ 29,056	$ 29,056	$ (29,056)	$ 1	$ 29,055
Deemed dividend related the Inducement Transaction																					(37,444)		(37,444)
Offering expenses charged to equity																					(1,106)		(1,106)
Issuance of common stock in exchange for consulting services																					82		82
Balance at Mar. 31, 2021																				$ 3	$ 353,018	$ (268,770)	$ 84,251

Unaudited Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		12 Months Ended	15 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Mar. 31, 2021
Cash flows from operating activities:
Net loss	$ (10,296)	$ (5,754)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on extinguishment of debt	16,885
Stock-based compensation expense	675	1,029
Non-cash interest expense		1,244
Amortization of debt issuance costs and debt discount	150	571
Depreciation and amortization expense	64	72
Fair value adjustment related to derivative and warrant liability	30	(75)
Loss on sublease and disposal of property and equipment		200
Consulting fees paid in common stock	82
Change in assets and liabilities:
Accounts and other receivables	(8,729)	(400)
Prepaid expenses and other assets	273	455
Operating lease right-of-use assets	56	86
Accounts payable and accrued expenses	(1,820)	586
Operating lease liabilities	(78)	(48)
Other liabilities	122	12
Net cash used in operating activities	(2,586)	(2,022)
Cash flows from investing activities:
Purchases of property and equipment		(11)
Net cash used in investing activities		(11)
Cash flows from financing activities:
Proceeds from Public Offering, net of discounts and commissions	49,285
Proceeds from Inducement Transaction, net of discounts and commissions	41,384
Proceeds from equity line of credit		1,112
Payment of offering costs	(1,106)
Repayment of principal on finance lease liabilities	(61)	(58)
Payment of debt issuance costs	(2,881)	(34)
Repayment of principal on convertible notes	(37,924)
Net proceeds from exercise of common stock warrants	25,593
Net cash provided by financing activities	74,290	1,020
Net increase (decrease) in cash, cash equivalents and restricted cash	71,704	(1,013)
Cash, cash equivalents and restricted cash, beginning of period	4,322	3,555	$ 3,555	$ 3,555
Cash, cash equivalents and restricted cash, end of period	76,026	2,542	$ 4,322	$ 76,026
Supplemental cash flow information:
Cash paid for interest	199	52
Commitment shares issued in connection with equity line of credit included in deferred offering costs		121
Amounts due for property and equipment included in accounts payable and accrued expenses	4	4
Amounts due for deferred offering costs included in accounts payable and accrued expenses	17	123
Fair value of warrants issued to underwriters in connection with Public Offering	3,485
Conversion of Facility Notes into Series B-2 Preferred Stock [Member]
Supplemental cash flow information:
Notes principal converted	31,477
The 2019 Notes Converted to Common Stock [Member]
Supplemental cash flow information:
Notes principal converted		$ 9,600

Note B - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Significant Accounting Policies [Text Block]

B.	Summary of Significant Accounting Policies

Use of Estimates

The preparation of unaudited condensed financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed financial statements and accompanying notes. Actual results could differ from those estimates.

On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, the useful lives of property and equipment, the recoverability of long-lived assets, the incremental borrowing rate for leases, and assumptions used for purposes of determining stock-based compensation, income taxes, and the fair value of the derivative and warrant liability, among others. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities.

Revenue Recognition

The Company commenced recognizing revenue in accordance with the provisions of ASC

606,

Revenue from Contracts with Customers

(“ASC

606”

), starting

January

2018.

Arrangements with Multiple-Performance Obligations

From time to time, the Company enters into arrangements for research and development, manufacturing and/or commercialization services. Such arrangements

may

require the Company to deliver various rights, services, including intellectual property rights/licenses, research and development services, and/or commercialization services. The underlying terms of these arrangements generally provide for consideration to the Company in the form of nonrefundable upfront license fees, development and commercial performance milestone payments, royalty payments, consulting fees and/or profit sharing.

In arrangements involving more than

one

performance obligation, each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects the Company's best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis or using an adjusted market assessment approach if selling price on a stand-alone basis is

not

available.

The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will

not

occur. Should there be royalties, the Company utilizes the sales and usage-based royalty exception in arrangements that resulted from the license of intellectual property, recognizing revenues generated from royalties or profit sharing as the underlying sales occur.

Licensing Agreements

The Company enters into licensing agreements with licensees that fall under the scope of ASC

606.

The terms of the Company's licensing agreements typically include

one

or more of the following: (i) upfront fees; (ii) milestone payments related to the achievement of development, regulatory, or commercial goals; and (iii) royalties on net sales of licensed products. Each of these payments

may

result in licensing revenues.

As part of the accounting for these agreements, the Company must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligations. Generally, the estimation of the stand-alone selling price

may

include such estimates as, independent evidence of market price, forecasted revenues or costs, development timelines, discount rates, and probability of regulatory success. The Company evaluates each performance obligation to determine if they can be satisfied at a point in time or over time, and it measures the services delivered to the licensee which are periodically reviewed based on the progress of the related program. The effect of any change made to an estimated input component and, therefore revenue or expense recognized, would be recorded as a change in estimate. In addition, variable consideration (e.g., milestone payments) must be evaluated to determine if it is constrained and, therefore, excluded from the transaction price.

Up-front

Fees:

If a license to the Company's intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from the transaction price allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time.

Milestone Payments:

At the inception of each arrangement that includes milestone payments (variable consideration), the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would

not

occur, the associated milestone value is included in the transaction price. Milestone payments that are

not

within the Company's or the licensee's control, such as non-operational developmental and regulatory approvals, are generally

not

considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of milestones that are within its or the licensee's control, such as operational developmental milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues and earnings in the period of adjustment. Revisions to the Company's estimate of the transaction price

may

also result in negative licensing revenues and earnings in the period of adjustment.

KP415

License Agreement

September 2019,

the Company entered into a Collaboration and License Agreement (the

“KP415

License Agreement”) with Commave Therapeutics SA, an affiliate of Gurnet Point Capital (“Commave”). Under the

KP415

License Agreement, the Company granted to Commave an exclusive, worldwide license to develop, manufacture and commercialize the Company's product candidates containing serdexmethylphenidate (“SDX”) and d-methylphenidate (“d-MPH”), including AZSTARYS,

KP484,

and, at the option of Commave,

KP879,

KP922

or any other product candidate developed by the Company containing SDX and developed to treat ADHD or any other central nervous system disorder (the “Additional Product Candidates” and, collectively with AZSTARYS and

KP484,

the “Licensed Product Candidates”). Pursuant to the

KP415

License Agreement, Commave (i) paid the Company an upfront payment of

$10.0

million; (ii) agreed to pay milestone payments of up to

$63.0

million upon the occurrence of specified regulatory milestones related to AZSTARYS and

KP484;

(iii) agreed to pay additional payments of up to

$420.0

million upon the achievement of specified U.S. sales milestones; and (iv) has agreed to pay the Company quarterly, tiered royalty payments ranging from a percentage in the high single digits to the mid-twenties of Net Sales (as defined in the

KP415

License Agreement) in the United States and a percentage in the low to mid-single digits of Net Sales in each country outside the United States, in each case subject to specified reductions under certain conditions as described in the

KP415

License Agreement. Commave is obligated to make such royalty payments on a product-by-product basis until expiration of the Royalty Term (as defined in the

KP415

License Agreement) for the applicable product.

In exchange for the exclusive, worldwide license, discussed above, Commave paid the Company a non-refundable upfront payment of

$10.0

million. The Company is also entitled to additional payments from Commave of up to

$63.0

million, conditioned upon the achievement of specified regulatory milestones related to AZSTARYS and

KP484.

May 2020,

the FDA accepted the Company's NDA for AZSTARYS. Per the

KP415

License Agreement, the Company received a regulatory milestone payment of

$5.0

million following the FDA's acceptance of the AZSTARYS NDA. In addition, the Company is entitled to payments from Commave of up to

$420.0

million in the aggregate, conditioned upon the achievement of certain U.S. sales milestones, which are dependent upon, among other things, the timing of approval for a new drug application for AZSTARYS and its final approved label, if any. Further, Commave will pay the Company quarterly, tiered royalty payments ranging from a percentage in the high single digits to mid-twenties of Net Sales (as defined in the

KP415

License Agreement) in the U.S. and a percentage in the low to mid-single digits of Net Sales in each country outside of the U.S., in each case subject to specified reductions under certain conditions as described in the

KP415

License Agreement.

Commave also agreed to be responsible for and reimburse the Company for all of the development, commercialization and regulatory expenses incurred on the licensed products, subject to certain limitations as set forth in the

KP415

License Agreement. As part of this agreement the Company is obligated to perform consulting services on behalf of Commave related to the licensed products. For these consulting services, Commave has agreed to pay the Company a set rate per hour on any consulting services performed on behalf of Commave for the benefit of the licensed products.

The

KP415

License Agreement also established a joint steering committee, which monitors progress of the development of both AZSTARYS and

KP484.

Subject to the oversight of the joint steering committee, the Company otherwise retains all responsibility for the conduct of all regulatory activities required to obtain new drug application approval of AZSTARYS and

KP484;

provided that Commave shall be the sponsor of any clinical trials conducted by the Company on behalf of Commave.

In accordance with the terms of the Company's

March

20,

2012

Termination Agreement with Aquestive Therapeutics (formerly known as MonoSol Rx, LLC), Aquestive Therapeutics has the right to receive an amount equal to

10%

of any royalty or milestone payments made to the Company related to AZSTARYS,

KP484

KP879

under the

KP415

License Agreement.

The

KP415

License Agreement is within the scope of ASC

606,

as the transaction represents a contract with a customer where the participants function in a customer / vendor relationship and are

not

exposed equally to the risks and rewards of the activities contemplated under the

KP415

License Agreement. Using the concepts of ASC

606,

the Company identified the grant of the exclusive, worldwide license and the performance of consulting services, which includes the reimbursement of out-of-pocket

third

-party research and development costs, as its only

two

performance obligations at inception. The Company further determined that the transaction price, at inception, under the agreement was

$10.0

million upfront payment plus the fair value of the Development Costs (as defined in the

KP415

License Agreement) which was allocated among the performance obligations based on their respective related stand-alone selling price.

The consideration allocated to the grant of the exclusive, worldwide license was

$10.0

million, which reflects the standalone selling price. The Company utilized the adjusted market assessment approach to determine this standalone selling price which included analyzing prospective offers received from various entities throughout our licensing negotiation process as well as the consideration paid to other competitors in the market for a similar type transaction. The Company determined that the intellectual property licensed under the

KP415

License Agreement represented functional intellectual property and it has significant standalone functionality and therefore should be recognized at a point in time as opposed to over time. The revenue related to the grant of the exclusive, worldwide license was recognized at a point in time at the inception of the

KP415

License Agreement.

The consideration allocated to the performance of consulting services, which includes the reimbursement of out-of-pocket

third

-party research and development costs, was the fair value of the Development Costs (as defined in the

KP415

License Agreement), which reflects the standalone selling price. The Company utilized a blended approach which took into consideration the adjusted market assessment approach and the expected cost plus a margin approach to determine this standalone selling price. This blended approach utilized the adjusted market approach and expected cost plus margin approach to value the performance of consulting services which included analyzing hourly rates of vendors in the a market who perform similar services to those of the Company to develop a range and then analyzing the average cost per hour of our internal resources and applying a margin which placed the value in the median of the previously identified range. For the reimbursement of out-of-pocket

third

-party research and development costs the Company utilized the expected cost plus a margin approach, which included estimating the actual out-of-pocket cost the Company expects to pay to

third

-parties for research and development costs and applying a margin, if necessary. The Company determined that

margin was necessary of these out-of-pocket

third

-party research and development costs as these are purely pass-through costs and the margin for managing these

third

-party activities is included within the value of the performance of consulting services. The Company determined that the performance of consulting services, including reimbursement of out-of-pocket

third

-party research and development costs, is a performance obligation that is satisfied over time as the services are performed and the reimbursable costs are paid. As such, the revenue related to the performance obligation will be recognized as the consulting services are performed and the services associated with the reimbursable out-of-pocket

third

-party research and development costs are incurred and paid by the Company, in accordance with the practical expedient allowed under ASC

606

regarding an entity's right to consideration from a customer in an amount that corresponds directly to the value to the customer of the entity's performance completed to date. As discussed above, the combination of the standalone selling price of these consulting services and certain out-of-pocket

third

-party research and development costs for AZSTARYS was the fair value of the Development Costs at inception. These Development Costs effectively created a cap on certain consulting services and out-of-pocket

third

-party research and development costs identified in the initial product development plan for AZSTARYS which was anticipated at the inception date of the

KP415

License Agreement. As of

March 31, 2021,

the Company has recognized all of the consulting services and out-of-pocket

third

-party research and development costs under this cap.

Under the

KP415

License Agreement, Commave was granted an exclusive right to

first

negotiation whereby upon completion of a Phase

proof-of-concept study, the Company and Commave

may

negotiate the economic terms under which certain Additional Products

may

be included as a Product (both as defined in the

KP415

License Agreement) under the

KP415

License Agreement (the “Additional Product Option”). In addition to the Additional Product Option, Commave was also granted a right of

first

refusal (“ROFR”) to acquire, license and/or commercialize any of the Additional Product Candidates should they choose

not

to exercise the Additional Product Option. Should Commave choose to exercise the Additional Product Option on any Additional Product Candidates, Commave and the Company shall negotiate in good faith regarding the economic terms of such Additional Product Candidate. Further, should Commave exercise the ROFR on any Additional Product Candidate, the economic terms of the agreement shall be the same as those offered to the

third

-party. Under ASC

606

an option to acquire additional goods or services gives rise to a performance obligation if the option provides a material right to the customer. The Company concluded that the above described Additional Product Option and ROFR do

not

constitute material rights to the customer as Commave would acquire the goods or services at a to be negotiated price, which the Company expects to approximate fair value and therefore Commave would

not

receive a material discount on these goods or services compared to market rates.

The Company is entitled to additional payments from Commave conditioned upon the achievement of specified regulatory milestones related to AZSTARYS and

KP484

and the achievement of certain U.S. sales milestones, which are dependent upon, among other things, the timing of approval for a new drug application for AZSTARYS and its final approved label, if any. Further, Commave will pay the Company quarterly, tiered royalty payments ranging from a percentage in the high single digits to mid-twenties of Net Sales (as defined in the

KP415

License Agreement. The Company concluded that these regulatory milestones, sales milestones and royalty payments each contain a significant uncertainty associated with a future event. As such, these milestone and royalty payments are constrained at contract inception and are

not

included in the transaction price as the Company could

not

conclude that it is probable a significant reversal in the amount of cumulative revenue recognized will

not

occur surrounding these milestone payments. At the end of each reporting period, the Company updates its assessment of whether the milestone and royalty payments are constrained by considering both the likelihood and magnitude of the potential revenue reversal.

For example, in

May 2020,

the FDA accepted the Company's NDA for AZSTARYS. Per the

KP415

License Agreement, the Company received a regulatory milestone payment of

$5.0

million following the FDA's acceptance of the AZSTARYS NDA. Since the FDA accepted the Company's NDA for AZSTARYS the constraint was removed and revenue recognized. The associated revenue was allocated among the

two

performance obligations identified at contract inception. Since both performance obligations were satisfied as of the end of the

second

quarter of

2020

the full

$5.0

million payment was recognized as revenue during the

second

quarter of

2020.

April 8, 2021,

the Company entered into Amendment

No.

to the

KP415

Amendment (the

"KP415

Amendment"). Pursuant to the

KP415

Amendment, the Company and Commave agreed to modify the compensation terms of the

KP415

License Agreement. Pursuant to the

KP415

Amendment, Commave paid the Company

$10.0

million in connection with the entry into the

KP415

Amendment as a result of the regulatory approval of AZSTARYS in the United States which occurred on

March 2, 2021.

Commave also agreed to pay the Company

$10.0

million within

thirty

calendar days following receipt of the scheduling determination of the compound SDX by the U.S. Drug Enforcement Agency (the "DEA"), which occurred on

May 7, 2020.

SDX is the prodrug component of AZSTARYS. In addition, the

KP415

Amendment increases the total remaining future regulatory and sales milestone payments related to AZSTARYS to up to an aggregate of

$590.0

million in payments upon the occurrence of specified regulatory milestones related to AZSTARYS and upon the achievement of specified U.S. net sales milestones. Further, Commave agreed to pay the Company quarterly, tiered royalty payments ranging from a percentage in the high single digits to the mid-twenties of Net Sales in the United States and a percentage in the low to mid-single digits of Net Sales in each country outside the United States, in each case subject to specified reductions under certain conditions, including with respect to the final approval label, as described in the

KP415

License Agreement. Commave is obligated to make such royalty payments on a product-by-product basis until expiration of the Royalty Term for the applicable product.

Pursuant to the

KP415

Amendment, Commave and the Company also agreed to modify Commave's right of

first

refusal such that the Company's product candidate,

KP922,

longer subject to Commave' right of

first

refusal to acquire, license or commercialize any Additional Product Candidate. Commave's right of

first

refusal shall only apply to any Additional Product Candidate which contains SDX, with such right of

first

refusal expiring upon the acceptance of an NDA for such Additional Product Candidate containing SDX.

Per the

KP415

Amendment, the Company earned a regulatory milestone payment of

$10.0

million following the FDA's approval of the AZSTARYS NDA. Since the FDA approved the NDA for AZSTARYS the constraint was removed and revenue recognized. The associated revenue was allocated among the

two

performance obligations identified at contract inception. Since both performance obligations were satisfied as of the end of the

first

quarter of

2021

the full

$10.0

million was recognized as revenue during the

first

quarter of

2021.

In accordance with ASC

340

40,

Contracts with Customers

, the Company recognized

$1.0

million of royalty costs due to payment to Aquestive related to the regulatory milestone earned and recorded it in the item titled royalty and direct contract acquisition costs in the unaudited condensed statements of operations.

For the

three

months ended

March 31, 2021

and

2020,

the Company recognized revenue under the

KP415

License Agreement of

$10.0

million and

$2.1

million, respectively. There was

deferred revenue related to this agreement as of

March 31, 2021

December 31, 2020.

APADAZ License Agreement

October 2018,

the Company entered into a Collaboration and License Agreement (the “APADAZ License Agreement”) with KVK Tech, Inc. (“KVK”) pursuant to which we have granted an exclusive license to KVK to conduct regulatory activities for, manufacture and commercialize APADAZ in the United States.

Pursuant to the APADAZ License Agreement, KVK agreed to pay the Company certain payments and cost reimbursements of an estimated

$3.4

million, which includes a payment of

$2.0

million within

days of the achievement of a specified milestone related to the initial formulary adoption of APADAZ (the “Initial Adoption Milestone”). In addition, KVK has agreed to make additional payments to the Company upon the achievement of specified sales milestones of up to

$53.0

million in the aggregate. Further, the Company and KVK will share the quarterly net profits of APADAZ by KVK in the United States at specified tiered percentages, ranging from the Company receiving

30%

50%

of net profits, based on the amount of net sales on a rolling

four

quarter basis. The Company is responsible for a portion of commercialization and regulatory expenses for APADAZ until the Initial Adoption Milestone is achieved, after which KVK will be responsible for all expenses incurred in connection with commercialization and maintaining regulatory approval in the United States.

The APADAZ License Agreement will terminate on the later of the date that all of the patent rights for APADAZ have expired in the United States or KVK's cessation of commercialization of APADAZ in the United States. KVK

may

terminate the APADAZ License Agreement upon

days written notice if a regulatory authority in the United States orders KVK to stop sales of APADAZ due to a safety concern. In addition, after the

third

anniversary of the APADAZ License Agreement, KVK

may

terminate the APADAZ License Agreement without cause upon

months prior written notice. The Company

may

terminate the APADAZ License Agreement if KVK stops conducting regulatory activities for or commercializing APADAZ in the United States for a period of

six

months, subject to specified exceptions, or if KVK or its affiliates challenge the validity, enforceability or scope of any licensed patent under the APADAZ License Agreement. Both parties

may

terminate the APADAZ License Agreement (i) upon a material breach of the APADAZ License Agreement, subject to a

-day cure period, (ii) if the other party encounters bankruptcy or insolvency or (iii) if the Initial Adoption Milestone is

not

achieved. Upon termination, all licenses and other rights granted by the Company to KVK pursuant to the APADAZ License Agreement would revert to the Company.

The APADAZ License Agreement also established a joint steering committee, which monitors progress of the commercialization of APADAZ.

Consulting Arrangements

The Company enters into consulting arrangements with

third

-parties that fall under the scope of ASC

606.

These arrangements

may

require the Company to deliver various rights, services, including research and development services, regulatory services and/or commercialization support services. The underlying terms of these arrangements generally provide for consideration to the Company in the form of consulting fees and reimbursements of out-of-pocket

third

-party research and development, regulatory and commercial costs.

Corium Consulting Agreement

July 2020,

the Company entered into a consultation services arrangement (the “Corium Consulting Agreement”) with Corium, Inc. (“Corium”) under which Corium engaged the Company to guide the product development and regulatory activities for certain current and potential future products in Corium's portfolio, as well as continue supporting preparation for the potential commercial launch of AZSTARYS (together, “Corium Consulting Services”). Corium is a portfolio company of Gurnet Point Capital and is responsible for leading all commercialization activities for AZSTARYS under the

KP415

License Agreement, as discussed above.

Under the Corium Consulting Agreement, the Company is entitled to receive payments from Corium of up to

$15.6

million,

$13.6

million of which will be paid in quarterly installments through

March

31,

2022.

The remaining

$2.0

million is conditioned upon the achievement of a specified regulatory milestone related to Corium's product portfolio. Corium also agreed to be responsible for and reimburse the Company for all development, commercialization and regulatory expenses incurred as part of the performance of the Corium Consulting Services.

The Corium Consulting Agreement is within the scope of ASC

606,

as the transaction represents a contract with a customer where the participants function in a customer / vendor relationship and are

not

exposed equally to the risks and rewards of the activities contemplated under the Corium Consulting Agreement. Using the concepts of ASC

606,

the Company identified the performance of consulting services, which includes the reimbursement to the Company of

third

-party pass-through costs, as its only performance obligation at inception. The Company further determined that the transaction price, at inception, under the agreement was

$13.6

million which is the fair value of the consulting services, including the reimbursement of

third

-party pass-through costs. The Company concluded that the regulatory milestone contains a significant uncertainty associated with a future event. As such, this milestone is constrained at contract inception and is

not

included in the transaction price as the Company could

not

conclude that it is probable a significant reversal in the amount of cumulative revenue recognized will

not

occur surrounding these milestone payments. At the end of each reporting period, the Company updates its assessment of whether the milestone is constrained by considering both the likelihood and magnitude of the potential revenue reversal.

The Company determined that the performance of consulting services, including reimbursement of

third

-party pass-through costs, is a performance obligation that is satisfied over time as the services are performed and the reimbursable costs are paid. As such, the revenue related to the performance obligation will be recognized as the consulting services are performed and the services associated with the reimbursable

third

-party pass-through costs are incurred and paid by the Company, in accordance with the practical expedient allowed under ASC

606

regarding an entity's right to consideration from a customer in an amount that corresponds directly to the value to the customer of the entity's performance completed to date. As of

March 31, 2021,

the Company has recognized approximately

45%

of the consulting services and

third

-party pass-through costs under the Corium Consulting Agreement.

For the

three

months ended

March 31, 2021,

the Company recognized revenue under the Corium Consulting Agreement of

$1.6

million. There was

revenue recognized for the

three

months ended

March 31, 2020

related to the Corium Consulting Agreement. As of

March 31, 2021,

the Company had deferred revenue related to this agreement of

$0.2

million. As of

December 31, 2020,

the Company had deferred revenue related to this agreement or

$0.1

million.

Other Consulting Arrangements

For the

three

months ended

March 31, 2021,

the Company recognized revenue under other consulting arrangements of

$0.5

million. There was

revenue recognized from other consulting arrangements for the

three

months ended

March 31, 2020.

There was

deferred revenue from other consulting arrangements as of

March 31, 2021

December 31, 2020.

Accounts and Other Receivables

Accounts and other receivables consists of receivables under the

KP415

License Agreement and Corium Consulting Agreement, as well as receivables related to other consulting arrangements, income tax receivables and other receivables due to the Company. Receivables under the

KP415

License Agreement and Corium Consulting Agreement are recorded for amounts due to the Company related to reimbursable

third

-party costs and performance of consulting services. These receivables, as well as the receivables related to other consulting arrangements, are evaluated to determine if any reserve or allowance should be established at each reporting date. As of

March 31, 2021,

the Company had receivables related to the Corium Consulting Agreement in the amount of

$0.6

million, other consulting arrangements in the amount of

$0.6

million and

$10.0

million related to the

KP415

License Agreement. As of

December

31,

2020,

the Company had receivables related to the Corium Consulting Agreement of

$2.1

million, other consulting arrangements of

$0.4

million and

receivables related to the

KP415

License Agreement. As of

March 31, 2021

and

December 31, 2020,

reserve or allowance for doubtful accounts has been established.

Application of New or Revised Accounting Standards—Adopted

From time to time, the Financial Accounting Standards Board (the “FASB”) or other standard-setting bodies issue accounting standards that are adopted by the Company as of the specified effective date.

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments

—

Credit Losses

(Topic

326

)

—

Measurement of Credit Losses on Financial Instruments

(“ASU

2016

13”

), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update applies to all entities holding financial assets and net investment in leases that are

not

accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets

not

excluded from the scope that have the contractual right to receive cash. This guidance is effective for financial statements issued for fiscal years beginning after

December

15,

2019,

and interim periods within those fiscal years. The adoption of ASU

2016

did

not

have a material impact on the Company's financial statements and disclosures.

August 2018,

the FASB issued ASU

2018

13,

Fair Value Measurement (Topic

820

)

—

Disclosure Framework

—

Changes to the Disclosure Requirements for Fair Value Measurement

(“ASU

2018

13”

), which modifies the disclosure requirements on fair value measurements in Topic

820,

Fair Value Measurement, based on the concepts in the FASB Concepts Statement,

Conceptual Framework for Financial Reporting

—

Chapter

Notes to Financial Statements,

which the FASB finalized on

August

28,

2018,

including the consideration of costs and benefits. This update applies to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. This guidance is effective for financial statements issued for fiscal years beginning after

December

15,

2019,

and interim periods within those fiscal years. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level

fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The adoption of ASU

2018

did

not

have a material impact on the Company's financial statements and disclosures.

Application of New or Revised Accounting Standards—Not Yet Adopted

August 2020,

the FASB issued ASU

2020

06,

Debt

—

Debt with Conversion and Other Options

(Subtopic

470

)

and Derivatives and Hedging

—

Contracts in Entity

s Own Equity (Subtopic

815

);

Accounting for Convertible Instruments and Contracts in an Entity

s Own Equity

(“ASU

2020

06”

), which addresses issues identified as a result of the complexities associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. This update addresses, among other things, the number of accounting models for convertible debt instruments and convertible preferred stock, targeted improvements to the disclosures for convertible instruments and earnings-per-share (“EPS”) guidance and amendments to the guidance for the derivatives scope exception for contracts in an entity's own equity, as well as the related EPS guidance. This update applies to all entities that issue convertible instruments and/or contracts in an entity's own equity. This guidance is effective for financial statements issued for fiscal years beginning after

December

15,

2021,

and interim periods within those fiscal years. Early adoption is permitted, but

earlier than fiscal years beginning after

December

15,

2020,

including interim periods within those fiscal years. FASB specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact the adoption of ASU

2020

could have on the Company's financial statements and disclosures.

Note C - Debt Obligations

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

C.	Debt Obligations

As of

March 31, 2021

, the Company had

convertible notes outstanding. As of

December 31, 2020,

the Company had convertible notes outstanding in the aggregate principal amount of

$68.2

million.

Deerfield Facility Agreement

June

2014,

the Company entered into a

$60

million multi-tranche credit facility (the “Deerfield Facility Agreement”) with Deerfield Private Design Fund III, LP (“Deerfield”). At the time the Company entered into the Deerfield Facility Agreement, the Company borrowed the

first

tranche, which consisted of a term loan of

$15

million (the “Term Note”) and a senior secured loan of

$10

million (the “Deerfield Convertible Note”). Deerfield was able to convert any portion of the outstanding principal and any accrued but unpaid interest on the Deerfield Convertible Note into shares of the Company's common stock at an initial conversion price of

$5.85

per share (the “Deerfield Note Put Option”). After giving effect to the Reverse Stock Split effected in

December 2020,

the conversion price became

$93.60.

The Deerfield Convertible Note originally bore interest at

9.75%

per annum, but was subsequently reduced to

6.75%.

Interest accrued on the outstanding balance under the Deerfield Convertible Note was due quarterly in arrears. The Company originally had to repay

one

third

of the outstanding principal amount of the Deerfield Convertible Note on the

fourth

and

fifth

anniversaries of the Deerfield Facility Agreement (

June

2018

and

June 2019).

June 2018,

Deerfield agreed to convert the

$3,333,333

of the principal amount then due, plus

$168,288

of accrued interest, into

37,410

shares of our common stock (as discussed below in the section entitled “Facility Agreement Waiver and Fifth Amendment to Senior Secured Convertible Note”). In

September

2019,

the Company entered into an amendment with Deerfield in order to (i) reduce the interest rate applicable under the Deerfield Facility Agreement from

9.75%

6.75%,

(ii) provide for “payment in kind” of interest on the Loans (as defined in the Deerfield Facility Agreement), and (iii) defer the Loan payments due pursuant to the Deerfield Facility Agreement until

June

2020

(as discussed below in the section entitled

“2021

Note Exchange Effected in

September 2019”).

December 2019,

the Company entered into another amendment with Deerfield in order to (i) defer the Loan payments due pursuant to the Deerfield Facility Agreement until

March

31,

2021

and (ii) allow for the entries of additional debt and debt holders under the Deerfield Facility Agreement (as discussed below in the section entitled

“2021

Note Exchange Effected in

December 2019”).

The Company was also obligated to repay principal of the Deerfield Convertible Note in the amount of

$6,980,824

plus any capitalized interest to date on

March

31,

2021.

Prepayment of the outstanding balance was

not

allowed without written consent of Deerfield.

Pursuant to the Deerfield Facility Agreement, the Company issued to Deerfield a warrant to purchase

14,423,076

shares of Series D Preferred at an initial exercise price of

$0.78

per share, which is exercisable until

June

2024

(the “Deerfield Warrant”). Upon completion of the Company's initial public offering, the Deerfield Warrant automatically converted into a warrant to purchase

1,923,077

shares of the Company's common stock at an exercise price of

$5.85

per share. After giving effect to the Reverse Stock Split effected in

December 2020,

the shares issuable upon conversion of the warrant became

120,192

shares of common stock, and the exercise price of the Deerfield Warrant became

$93.60

per share, which in

January 2021

was further adjusted to

$46.25

per share in connection with the Company entering into the Inducement Transaction (as defined in Note F) which triggered the anti-dilution provisions of the Deerfield Warrant. This warrant qualifies as a participating security under ASC Topic

260,

Earnings per Share, and is treated as such in the net loss per share calculation (Note I). If a Major Transaction occurs (as defined in the Deerfield Facility Agreement) Deerfield

may

require the Company to redeem the Deerfield Warrant for a cash amount equal to the Black-Scholes value of the portion of the Deerfield Warrant to be redeemed (the “Warrant Put Option”).

The Company recorded the fair value of the shares of Series D Preferred to debt issuance costs on the date of issuance. The Company also recorded the fair value of the Deerfield Warrant and the embedded Warrant Put Option to debt discount on the date of issuance. The debt issuance costs and debt discount were amortized over the term of the related debt and the expense was recorded as interest expense related to amortization of debt issuance costs and discount in the unaudited condensed statements of operations. In

February 2021,

the debt was extinguished and the discount and debt issuance costs were written off as a loss on extinguishment.

Pursuant to the Deerfield Facility Agreement, the Company was

not

able to enter into specified transactions, including a debt financing in the aggregate value of

$750,000

or more, other than permitted indebtedness under the Deerfield Facility Agreement, a merger, an asset sale or any other change of control transaction or any joint venture, partnership or other profit-sharing arrangement, without the prior approval of the Required Lenders (as defined in the Deerfield Facility Agreement). Additionally, if the Company were to enter into a major transaction, including a merger, consolidation, sale of substantially all of its assets or other change of control transaction, Deerfield would have had the ability to demand that prior to consummation of such transaction the Company repay all outstanding principal and accrued interest of any notes issued under the Deerfield Facility Agreement. Under each warrant issued pursuant to the Deerfield Facility Agreement, Deerfield has the right to demand that the Company redeem the warrant for a cash amount equal to the Black-Scholes value of a portion of the warrant upon the occurrence of specified events, including a merger, an asset sale or any other change of control transaction.

Issuance of

5.50%

Senior Convertible Notes and Third Amendment to Senior Secured Convertible Note and Warrant

February 2016,

the Company issued

$86.3

million aggregate principal amount of its

5.50%

Senior Convertible Notes due

2021

(the

“2021

Notes”) to Cowen and RBC Capital Markets, LLC, as representatives of the several initial purchasers (the “Initial Purchasers”), who subsequently resold the

2021

Notes to qualified institutional buyers (the “Note Offering”) in reliance on the exemption from registration provided by Rule

144A

under the Securities Act of

1933,

as amended (the “Securities Act”).

The

2021

Notes were issued pursuant to an indenture, dated as of

February

2016

(the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). Interest on the

2021

Notes was payable semi-annually in cash in arrears on

February 1

and

August 1

of each year, beginning on

August 1, 2016,

at a rate of

5.50%

per year. The

2021

Notes had an original maturity of

February

2021

unless earlier converted or repurchased.

The net proceeds from the Note Offering were approximately

$82.8

million, after deducting the Initial Purchasers' discount and estimated offering expenses. Concurrent with the Note Offering, the Company used approximately

$18.6

million of the net proceeds from the Note Offering to repay in full the Term Note, plus all accrued but unpaid interest, a make-whole interest payment and a prepayment premium on the Term Note.

The

2021

Notes were

not

redeemable prior to the maturity date, and

sinking fund was provided for the

2021

Notes. The

2021

Notes were convertible at an initial conversion rate of

58.4454

shares of the Company's common stock per

$1,000

principal amount of the

2021

Notes, subject to adjustment under the Indenture, which is equal to an initial conversion price of approximately

$17.11

per share of common stock. After giving effect to the Reverse Stock Split effected in

December 2020,

the conversion rate of the

2021

Notes would have been approximately

3.6528

shares of the Company's common stock per

$1,000

principal amount of the

2021

Notes, which is equal to a conversion price of approximately

$273.76

per share.

If the Company underwent a “fundamental change” (as defined in the Indenture), holders could have required that the Company repurchase for cash all or any portion of their

2021

Notes at a fundamental change repurchase price equal to

100%

of the principal amount of the

2021

Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

The Indenture included customary terms and covenants, including certain events of default after which the

2021

Notes

may

have become due and payable immediately.

As described in more detail below, in multiple exchanges occurring in

December 2019

and

January 2020,

all outstanding

2021

Notes were exchanged by the holders thereof for either shares of our common stock or senior secured convertible promissory notes issued under the terms of the Deerfield Facility Agreement.

2021

Note Exchange Effected in

December 2019

December 2019,

the Company entered into the

December 2019

Exchange Agreement and Amendment to Facility Agreement, Senior Secured Convertible Notes and Warrants (the

“December 2019

Exchange Agreement”) with the Deerfield Lenders and Delaware Street Capital Master Fund, L.P. (“DSC” and, collectively with the Deerfield Lenders, the

“December 2019

Holders”). Under the

December 2019

Exchange Agreement, the Company issued senior secured convertible promissory notes under the Deerfield Facility Agreement in the aggregate principal amount of

$71,418,011

(the

“December 2019

Notes”), in exchange for the cancellation of an aggregate of

$71,418,011

principal amount and accrued interest of the Company's

2021

Notes. Upon entering into the

December 2019

Exchange Agreement, the Company agreed to pay the

December 2019

Holders, in the aggregate, an interest payment of

$745,011

which represents

50%

of the accrued interest, as of

December

18,

2019,

on the

2021

Notes owned by the

December 2019

Holders. The remainder of such interest was included in the principal amount of the

December 2019

Notes.

The

December 2019

Notes bore interest at

6.75%

per annum. The

December 2019

Notes were convertible into shares of the Company's common stock at an initial conversion price of

$17.11

per share (which represented the conversion price of the

2021

Notes), subject to adjustment in accordance with the terms of the

December 2019

Notes. After giving effect to the Reverse Stock Split effected in

December 2020,

the conversion price of the

December 2019

Notes would have been

$273.76

per share. The Company subsequently amended the

December 2019

Notes to provide that such notes would have been convertible into shares of the Company's common stock at a conversion price of

$93.60

per share (which represented the conversion price of the Deerfield Convertible Note). The conversion price of the

December 2019

Notes would have been adjusted downward if the Company issued or sold any shares of common stock, convertible securities, warrants or options at a sale or exercise price per share less than the greater of the

December 2019

Notes' conversion price or the closing sale price of the Company's common stock on the last trading date immediately prior to such issuance, or, in the case of a firm commitment underwritten offering, on the date of execution of the underwriting agreement between the Company and the underwriters for such offering. However, if the Company effected an “at the market offering” as defined in Rule

415

of the Securities Act, of its common stock, the conversion price of the

December 2019

Notes would have been adjusted downward pursuant to this anti-dilution adjustment only if such sales were made at a price less than

$93.60

per share, provided that this anti-dilution adjustment would

not

have applied to any sales made under (

) the

2020

ELOC Agreement, (y) the ATM Agreement, or (z) the

September 2019

Exchange Agreement (as amended). Notwithstanding anything to the contrary in the

December 2019

Notes, the anti-dilution adjustment of such notes would

not

have resulted in the conversion price of the

December 2019

Notes being less than

$9.328

per share. The

December 2019

Notes were convertible at any time at the option of the holders thereof, provided that a holder of a

December 2019

Note was prohibited from converting such note into shares of the Company's common stock if, as a result of such conversion, such holder (together with certain affiliates and “group” members) would have beneficially owned more than

4.985%

of the total number of shares of common stock then issued and outstanding. However, the

December 2019

Note issued to DSC, due to the fact DSC was a beneficial owner of more than

4.985%

of the total number of shares of the Company's common stock then issued and outstanding, had a beneficial ownership cap equal to

19.985%

of the total number of shares of the Company's common stock then issued and outstanding. Pursuant to the

December 2019

Notes, the

December 2019

Holders had the option to demand repayment of all outstanding principal, and any unpaid interest accrued thereon, in connection with a Major Transaction (as defined in the

December 2019

Notes), which included, among others, any acquisition or other change of control of the Company; a liquidation, bankruptcy or other dissolution of the Company; or if at any time after

March

31,

2021,

shares of the Company's common stock are

not

listed on an Eligible Market (as defined in the

December 2019

Notes). The

December 2019

Notes were subject to specified events of default, the occurrence of which would have entitled the

December 2019

Holders to immediately demand repayment of all outstanding principal and accrued interest on the

December 2019

Notes. Such events of default included, among others, failure to make any payment under the

December 2019

Notes when due, failure to observe or perform any covenant under the Deerfield Facility Agreement (as defined below) or the other transaction documents related thereto (subject to a standard cure period), the failure of the Company to be able to pay debts as they come due, the commencement of bankruptcy or insolvency proceedings against the Company, a material judgement levied against the Company and a material default by the Company under the Deerfield Warrant, the

December 2019

Notes or the Deerfield Convertible Note.

The

December 2019

Exchange Agreement amended the Deerfield Facility Agreement in order to, among other things, (i) provide for the Deerfield Facility Agreement to govern the

December 2019

Notes received by the

December 2019

Holders pursuant to the

December 2019

Exchange Agreement, (ii) extend the maturity of the Deerfield Convertible Note from

February

14,

2020

and

June

2020,

as applicable, to

March

31,

2021,

(iii) defer interest payments on the Deerfield Convertible Note until

March

31,

2021

(which such interest shall accrue as “payment-in-kind” interest), (iv) designate DSC as a Lender under (and as defined in the Deerfield Facility Agreement), (v) name Deerfield as the “Collateral Agent” for all Lenders and (vi) modify the terms and conditions under which the Company

may

issue additional pari passu and subordinated indebtedness under the Deerfield Facility Agreement (subject to certain conditions specified in the Deerfield Facility Agreement).

The

December 2019

Exchange Agreement also amended and restated the Deerfield Convertible Note to conform the definitions of “Eligible Market” and “Major Transactions” to the definition in the

December 2019

Notes, to remove provisions that were only applicable prior to the Company's initial public offering and to make certain other changes to conform to the

December 2019

Notes. The conversion price for the Deerfield Convertible Note remained

$93.60

per share, subject to adjustment on the same basis as the

December 2019

Notes.

The

December 2019

Exchange Agreement also amended the Deerfield Warrant to conform the definitions of “Eligible Market” and “Major Transaction” in the Deerfield Warrant with the definitions of such terms in the

December 2019

Notes.

The

December 2019

Exchange Agreement contained customary representations, warranties and covenants made by the Company and the

December 2019

Holders, including a covenant of the Company to, upon request, use commercially reasonable efforts to use its technology to discover a product based upon a compound that

may

be identified by the Deerfield Lenders in a manner that is reasonably acceptable to the Deerfield Lenders, or

one

of their affiliates, with the terms of such discovery plan, including the Company's compensation thereunder, to be mutually agreed to by the parties.

In connection with entering into the

December 2019

Exchange Agreement, on

December

18,

2019,

the Company amended and restated that certain Guaranty and Security Agreement, dated

June

2014,

by and between the Company and the other parties thereto (the “GSA”) to, among other things, (i) provide that all of the notes will be secured by the liens securing the indebtedness under the Deerfield Facility Agreement, and (ii) name Deerfield as the “Collateral Agent” under the GSA.

In connection with entering into the

December 2019

Exchange Agreement, the Company also entered into an amendment (the

“September 2019

Exchange Agreement Amendment”) to the

September 2019

Exchange Agreement to, among other things, (i) amend and restate Annex I of the

September 2019

Exchange Agreement to allow the Deerfield Lenders to effect optional exchanges of the

December 2019

Notes and the Deerfield Convertible Note under the terms of the

September 2019

Exchange Agreement; (ii) amend the common stock exchange price under the

September 2019

Exchange Agreement to be a per share price equal to the greater of (

)

$0.60,

subject to adjustment to reflect stock splits and similar events, or (y) the average of the volume-weighted average prices of the Company's common stock on each of the

trading days immediately preceding such exchange, (iii) provide that

more than

28,439,015

of shares of the Company's common stock shall be issued pursuant to optional exchanges under the

September 2019

Exchange Agreement (whether by common stock exchange or upon conversion of Series B-

Shares (as defined in the

September 2019

Exchange Agreement Amendment)), subject to adjustment to reflect stock splits and similar events and (iv) eliminate limitations regarding the timing and aggregate amount of principal which

may

be exchanged under the

September 2019

Exchange Agreement. These changes in the

September 2019

Exchange Agreement Amendment significantly modified the Optional Exchange Principal Amount, as such after giving effect to the

September

Exchange Agreement Amendment the Optional Exchange Principal Amount ceases to exist the new optional exchanges are referred to as the Deerfield Optional Conversion Feature. After giving effect to the Reverse Stock Split effected in

December 2020,

the exchange price of the Deerfield Optional Conversion Feature would have been

$9.60

per share or the average of the volume-weighted average price of the common stock on the principal securities exchange or trading market on which the common stock is then trading on each of the

trading days immediately preceding such exchange and the shares of the Company's common stock issued pursuant to the optional exchanges would have been

1,777,437

shares of common stock.

In connection with entering into the

September 2019

Amendment, the Company filed an amendment to the Series B-

Certificate of Designation (the “Series B-

Certificate of Designation Amendment”) with the Secretary of State of the State Delaware. The Series B-

Certificate of Designation Amendment provides that each share of the Company's Series B-

preferred stock is convertible into shares of the Company's common stock at a per share price equal to the common stock exchange price under the

September 2019

Exchange Agreement, which equals the greater of (i)

$9.60

(subject to adjustment to reflect stock splits and similar events), or (ii) the average of the volume-weighted average prices of the Company's common stock on each of the

trading days immediately preceding such exchange.

As of

March 31, 2021,

the Deerfield Lenders have converted

$17.1

million of principal under the

December 2019

Notes into all

1,777,437

shares of common stock available under the Deerfield Optional Conversion Feature.

The Company determined the changes to the Deerfield Convertible Note met the definition of a troubled debt restructuring under ASC

470

60,

Troubled Debt Restructurings by Debtors

, as the Company was experiencing financial difficulties and Deerfield granted a concession. The amendments to the terms of the Deerfield Convertible Note resulted in

gain on restructuring because the total cash outflows required under the amended Deerfield Convertible Note exceeded the carrying value of the original Deerfield Convertible Note immediately prior to amendment. Prospectively, the Deerfield Convertible Note will continue to be carried net of the associated discount and debt issuance costs which will be amortized and recorded as interest expense using a modified effective interest rate based on the amendments.

The changes to the

2021

Notes, under the

December 2019

Exchange Agreement, referred to after as the

December 2019

Notes, were accounted for as a debt modification, prospectively, the

December 2019

Notes will be carried net of the associated discount and debt issuance costs which will be amortized and recorded as interest expense using a modified effective interest rate based on the amendments.

2021

Note Exchange Effected in

January 2020

January 2020,

the Company entered into the

January 2020

Exchange Agreement (the

“January 2020

Exchange Agreement”) with M. Kingdon Offshore Master Fund, LP (“Kingdon”). Under the

January 2020

Exchange Agreement, the Company issued a senior secured convertible note in the aggregate principal amount of

$3,037,354

(the

“January 2020

Note”) in exchange for the cancellation of an aggregate of

$3,037,354

principal amount and accrued interest of the

2021

Note then owned by Kingdon. Upon entering into the

January 2020

Exchange Agreement, the Company agreed to pay Kingdon an interest payment of

$37,354,

which represents

50%

of the accrued and unpaid interest, as of

January

13,

2020,

on Kingdon's

2021

Note. The remainder of such interest was included in the principal amount of the

January 2020

Note.

The

January 2020

Note was issued with substantially the same terms and conditions as the

December 2019

Notes (as amended by the amendment described in more detail below).

In connection with entering into the

January 2020

Exchange Agreement, the Company entered into an Amendment to Facility Agreement and

December 2019

Notes and Consent (the

“December 2019

Note Amendment”) with the

December 2019

Holders that, among other things, (i) amended the

December 2019

Notes to (a) reduce the Conversion Price (as defined in the

December 2019

Notes) from

$17.11

$5.85

per share and (b) increased the Floor Price (as defined in the

December 2019

Notes) from

$0.38

$0.583

per share, and (ii) amended the Deerfield Facility Agreement to (

) provide for Kingdon to join the Deerfield Facility Agreement as a Lender (as defined in the Deerfield Facility Agreement) and (y) provide that the

2020

Note and shall constitute a “Senior Secured Convertible Note” (as defined in the Deerfield Facility Agreement) for purposes of the Deerfield Facility Agreement and other Transaction Documents (as defined in the Deerfield Facility Agreement). After giving effect to the Reverse Stock Split effected in

December 2020,

the Conversion Price became

$93.60

per share and the Floor Price became

$9.328

per share.

The changes to the

2021

Note, under the

January 2020

Exchange Agreement, referred to after as the

January 2020

Note, were accounted for as a debt modification, prospectively, the

January 2020

Note will be carried net of the associated discount and debt issuance costs which will be amortized and recorded as interest expense using a modified effective interest rate based on the amendments.

December 2020

Exchange Agreement and Amendment to Facility Agreement, Notes and Investors

Rights Agreement

December 2020,

the Company entered into a

December 2020

Exchange Agreement and Amendment to Facility Agreement, Notes and Investors' Rights Agreement, as amended (the

“December 2020

Exchange Agreement”) with the Deerfield Lenders, DSC and Kingdon (collectively, the “Facility Agreement Note Holders”). Under the

December 2020

Exchange Agreement, the Company and the Facility Agreement Note Holders agreed that (a) the Company will make a cash pre-payment of a portion of principal amount of the Deerfield Convertible Note, the

December 2019

Notes and the

January 2020

Note (collectively, the “Facility Agreement Notes”) to the Facility Agreement Note Holders (the “Debt Payment”) equal to approximately

$30.3

million, plus accrued interest if such payment is made on or after

January 1, 2021,

and (b) subject to the satisfaction or waiver of certain conditions specified in the

December 2020

Exchange Agreement, including the making of the Debt Payment, issue shares of its Series B-

Preferred Stock and warrants exercisable for shares of its common stock (the “Exchange Warrants”), in exchange for the cancellation of a portion of the principal amount of the Facility Agreement Notes owned by the Facility Agreement Note Holders in an aggregate amount equal to the Debt Payment, plus the

PIK Interest Payment (as defined in the

December 2020

Exchange Agreement) (such transaction, the

“December 2020

Exchange”).

The

December 2020

Exchange Agreement amended the Facility Agreement Notes to provide that the failure of the Company's common stock to remain listed on an eligible securities market will

not

constitute a “Major Transaction” unless such failure occurs after

March 31, 2023.

Subject to the satisfaction or waiver of certain conditions specified in the

December 2020

Exchange Agreement, including the making of the Debt Payment and the consummation of the exchange, the

December 2020

Exchange Agreement amended that certain Facility Agreement dated as of

June 2, 2014,

as amended (the “Facility Agreement”), by and among the Company and the Facility Agreement Note Holders in order to, among other things, (i) extend the maturity date of the Facility Agreement Notes to

March 31, 2023, (

ii) provide for cash payments of interest on the Loans (as defined in the Facility Agreement) for the periods following

July 1, 2021,

and (iii) provide for specified prepayment terms on the Loans.

The

December 2020

Exchange Agreement amended that certain Amended and Restated Investors' Rights Agreement, dated as of

February 19, 2015 (

the “IRA”), by and among the Company, Deerfield and the other parties signatory thereto in order to, among other things, add Deerfield Special Situations Fund, L.P. as a party thereto and to give effect to the issuance of the Exchange Warrants and the Company's registration obligations under the

December 2020

Exchange Agreement (as described in more detail below).

The Exchange Warrants issued pursuant to the

December 2020

Exchange Agreement were exercisable for a number of shares of the Company's common stock equal to

75%

of the shares of common stock issuable upon conversion of the Series B-

Preferred Stock issued in the Exchange (without regard for any beneficial ownership limitations included therein). The Exercise Warrants were subject to substantially the same terms and conditions as the warrants issued to the public in the public offering of the Company's securities contemplated pursuant to a registration statement on Form S-

file

no.

333

250945

(the “Public Offering”), with an exercise price equal to the exercise price per share of the warrants issued in the Public Offering and provided that the Facility Agreement Note Holders will be limited from exercising such Exchange Warrants if, as a result of such exercise, such holders (together with certain affiliates and “group” members of such holders) would beneficially own more than

4.985%

of the total number of shares of the Company's common stock then issued and outstanding.

In anticipation of the Public Offering, and to meet the Nasdaq Listing Requirements, the Company agreed in

December 2020

to restructure the

December 2019

Notes and the

January 2020

Note in the aggregate principal amount of

$60.8

million and the Deerfield Note in the principal amount of

$7.5

million (collectively the "the Facility Notes"). The total outstanding principal and accrued interest under the Facility Notes was

$69.4

million as of

December

31,

2020.

Under the terms of the

December 2020

Exchange Agreement, the Company, on

January 12, 2021,

in connection with the closing of the Public Offering:

	●	Exchanged $31.5 million of the outstanding principal and accrued interest on the Facility Notes for (i) 31,476.98412 shares of Series B- 2 Preferred Stock, and (ii) Exchange Warrants exercisable for 3,632,019 shares of the Company's common stock, and

	●	Made a payment of $30.3 million (the "Debt Payment"), in partial repayment of the remaining outstanding principal and accrued interest of the Facility Notes.

Following the completion of these transactions, the aggregate balance of principal and accrued interest remaining outstanding under the Facility Notes was approximately

$7.6

million. With respect to this remaining outstanding balance under the Facility Notes, the

December 2020

Exchange Agreement amended the terms of that debt to provide that:

	●	The maturity date was changed to March 31, 2023, and the debt was prepayable upon specified conditions, and

	●	Interest would accrue at the rate of 6.75% per annum, payable quarterly, would be added to principal until June 30, 2021, and then be payable in cash thereafter.

The changes to the Facility Notes, under the

December 2020

Exchange Agreement, were accounted for as a debt extinguishment as the cash flows immediately after the

December 2020

Exchange Agreement were substantially different from the cash flows immediately prior to the

December 2020

Exchange Agreement and while the Company was experiencing financial difficulties it was determined that the lender did

not

grant a concession. As such a loss of extinguishment related to the extinguishment of the old notes was recorded in the unaudited condensed statement of operations for the

three

months ended

March 31, 2021

and additional debt issuance costs related the new notes were capitalized and amortized using the effective interest method through the Payoff of Facility Agreement Notes (discussed below).

The transactions contemplated under the

December 2020

Exchange Agreement, including the obligation to pre-pay any portion of the Facility Agreement Notes or to complete the Exchange and the effectiveness of the amendments to the Facility Agreement, the Notes and the IRA, were subject to specified conditions of closing, including certain closing of the Public Offering, the filing of the Restated Series B-

Certificate of Designation (as defined below) and the approval for listing of the Company's common stock, including the shares issuable upon conversion of the Series B-

Preferred Stock and exercise of the Exchange Warrants, on the Nasdaq Capital Market.

As a condition to closing of the

December 2020

Exchange Agreement, the Company filed an Amended and Restated Certificate of Designation of Preferences, Rights and Limitations of Series B-

Convertible Preferred Stock (the “Restated Series B-

Certificate of Designation”) with the Secretary of State of the State Delaware, setting forth the preferences, rights and limitations of the Series B-

Preferred Stock.

Each share of Series B-

Preferred Stock had an aggregate stated value of

$1,000

and was convertible into shares of the Company's common stock at a per share price equal to the price per share to the public of the Company's common stock in the Public Offering (subject to adjustment to reflect stock splits and similar events).

The Series B-

Preferred Stock was convertible at any time on or after the PDUFA Date (as defined in the Restated Series B-

Certificate of Designation) at the option of the holders thereof; provided that the holders thereof will be prohibited from converting shares of Series B-

Preferred Stock into shares of the Company's common stock if, as a result of such conversion, such holders (together with certain affiliates and “group” members of such Holders) would beneficially own more than

4.985%

of the total number of shares of the Company's common stock then issued and outstanding. The Series B-

Preferred Stock is

not

redeemable. In the event of the Company's liquidation, dissolution or winding up or a change in control of the Company (each, a “Liquidation Event”), the holders of Series B-

Preferred Stock will receive, prior to any distribution or payment on our common stock, an amount equal to the greater of (i)

$1,000

per share (in the case of a change in control, transaction consideration with such value), or (ii) the amount (in the case of a change in control, in the form of the transaction consideration) per share each such holder would have been entitled to receive if every share of Series B-

Preferred Stock had been converted into common stock immediately prior to such Liquidation Event, in each case, plus any declared but unpaid dividends thereon. With respect to rights upon liquidation, the Series B-

Preferred Stock ranks senior to the common stock, on parity with any Parity Securities (as defined in the Restated Series B-

Certificate of Designation) and junior to existing and future indebtedness. Except as otherwise required by law (or with respect to approval of certain actions involving the Company's organizational documents that adversely affect the holders of Series B-

Preferred Stock and other specified matters regarding the rights, preferences and privileges of the Series B-

Preferred Stock), the Series B-

Preferred Stock does

not

have voting rights. The Series B-

Preferred Stock is

not

subject to any price-based anti-dilution protections and does

not

provide for any accruing dividends, but provides that holders of Series B-

Preferred Stock will participate in any dividends on the Company's common stock on an as-converted basis (without giving effect to the limitation on conversion described above). The Restated Series B-

Certificate of Designation also provides for partial liquidated damages in the event that the Company fails to timely convert shares of Series B-

Preferred Stock into common stock in accordance with the Restated Series B-

Certificate of Designation.

Payoff of Facility Agreement Notes and Termination of Facility Agreement

February 8, 2021,

the Company entered into a payoff letter with the Facility Agreement Note Holders, pursuant to which the Company agreed to pay off and thereby terminate the Facility Agreement.

Pursuant to the payoff letter, the Company paid a total of

$8.0

million to the Facility Agreement Note Holders, representing the principal balance, accrued interest outstanding and a prepayment fee in repayment of the Company's outstanding obligations under the Facility Agreement.

Pursuant to the payoff letter, all outstanding indebtedness and obligations of the Company owing to the Facility Agreement Note Holders under the Facility Agreement have been paid in full. The Facility Agreement and the notes thereunder, as well as the security interests in the assets of the Company securing the Facility Agreement and note obligations, have been terminated. The Facility Agreement Note Holders will retain the warrants previously issued to them by the Company.

The Company determined the payoff letter met the liability derecognition threshold under ASC

405

20,

Liabilities - Extinguishment of Liabilities

, as the Company repaid the debt (and has been relieved of the related obligation) without entering into new debt with the Facility Agreement Note Holders and there is

other continuing debt with the Facility Agreement Note Holders. The payoff letter resulted in a loss on extinguishment of debt which is recorded on the unaudited condensed statements of operations for the

three

months ended

March 31, 2021.

PPP Loan

April

23,

2020,

the Company received proceeds of

$0.8

million from the PPP Loan under the PPP of the CARES Act, a portion of which

may

be forgiven, which the Company used to retain current employees, maintain payroll and make lease and utility payments. The PPP Loan matures on

April

23,

2022

and bears annual interest at a rate of

1.0%.

Payments of principal and interest on the PPP Loan were originally deferred for the

first

six

months of the PPP Loan term. Thereafter, the Company would have been required to pay the lender equal monthly payments of principal and interest. As of

March

31,

2021,

$0.7

million of the PPP Loan is recorded on the unaudited condensed balance sheets in current portion of loans payable and

$0.1

million is recorded in loan payable, less current portion.

The CARES Act and the PPP provide a mechanism for forgiveness of up to the full amount borrowed. Under the PPP, the Company

may

apply for and be granted forgiveness for all or part of the PPP Loan. The Company applied for forgiveness for all of the PPP Loan in the

fourth

quarter of

2020

and is still awaiting a decision on forgiveness. The amount of loan proceeds eligible for forgiveness was originally based on a formula that takes into account a number of factors, including the amount of loan proceeds used by the Company during the

eight

-week period after the loan origination for certain purposes, including payroll costs, interest on certain mortgage obligations, rent payments on certain leases, and certain qualified utility payments, provided that at least

75%

of the loan amount was used for eligible payroll costs. Subject to the other requirements and limitations on loan forgiveness, only loan proceeds spent on payroll and other eligible costs during the covered

eight

-week period would have qualified for forgiveness.

June

2020,

President Trump signed into law the PPP Flexibility Act of

2020

(the “Flexibility Act”), which among other things provided the following important changes to the PPP:

	●	Extended the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who had already received PPP loans retained the option to use an eight -week covered period.

	●	Lowered the requirements that 75 percent of a borrower's loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24 -week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.

	●	Provided a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.

	●	Provided a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.

	●	Increased to five years the maturity of PPP loans that are approved by the U.S. Small Business Administration (the “SBA”) (based on the date SBA assigns a loan number) on or after June 5, 2020.

	●	Extended the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower's loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower's loan forgiveness covered period).

Based on the changes provided by the Flexibility Act the Company took advantage of (i) the extended covered period for loan forgiveness from

eight

weeks to

weeks, (ii) the lowered requirement that a certain percentage of loan proceeds must be used for payroll costs from

percent to

percent, (iii) the extended deferral period for payments of principal, interest and fees from

six

months after loan disbursement to

months after the SBA remits the borrower's loan forgiveness amount to the lender and (iv) any safe harbor provisions as applicable. The Company will be required to repay any portion of the outstanding principal that is

not

forgiven, along with accrued interest, in accordance with the amortization schedule described above. Based on the changes provided by the Flexibility Act the Company expects that substantially all of the PPP loan will be forgiven, however, the Company cannot provide any assurance that the Company will be eligible for loan forgiveness or that any amount of the PPP Loan will ultimately be forgiven by the SBA.

Letters

of Credit

As of

March 31, 2021,

the Company has

one

irrevocable letter of credit supporting certain finance lease agreements. This letter of credit is guaranteed by a money market account which is reported as restricted cash on the unaudited condensed balance sheets.

Note F - Common Stock and Warrants

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

F.	Common Stock and Warrants

Authorized,

Issued, and Outstanding Common Shares

As of

March 31, 2021

and

December 31, 2020

, the Company had authorized shares of common stock of

250,000,000

shares. Of the authorized shares,

28,480,156

and

4,537,321

shares of common stock were issued and outstanding as of

March 31, 2021

and

December 31, 2020

, respectively.

As of

March 31, 2021

and

December 31, 2020

, the Company had reserved authorized shares of common stock for future issuance as follows:

	March 31, 2021		December 31, 2020
Conversion of Deerfield Convertible Note		—		81,101
Conversion of January 2020 Note		—		34,615
Conversion of December 2019 Notes		—		625,747
Outstanding awards under equity incentive plans		354,869		355,785
Outstanding common stock warrants		9,544,693		151,442
Possible future issuances under equity incentive plans		229,317		47,825
Total common shares reserved for future issuance		10,128,879		1,296,515

Common Stock Activity

The following table summarizes common stock activity for the

three

months ended

March 31, 2021

	Shares of Common Stock
Balance as of December 31, 2020		4,537,321
Common stock issued as a result of the Public Offering		7,139,498
Common stock issued as a result of Series B-2 Preferred Stock conversions		4,842,699
Common stock issued as a result of warrant exercises		11,951,038
Common stock issued as compensation to third-parties		9,600
Balance as of March 31, 2021		28,480,156

Warrants

June

2014,

pursuant to the terms of the Deerfield Facility Agreement, the Company issued the Deerfield Warrant to purchase

14,423,076

shares of Series D Preferred (Note C). The Company recorded the fair value of the Deerfield Warrant as a debt discount and a warrant liability. The Deerfield Warrant, if unexercised, expires on the earlier of

June

2024,

or upon a liquidation event. Upon completion of the Company's initial public offering (the “IPO”), the Deerfield Warrant automatically converted into a warrant to purchase

1,923,077

shares of the Company's common stock at an exercise price of

$5.85

per share. After giving effect to the Reverse Stock Split effected in

December 2020,

the exercise price of the Deerfield Warrant became

$93.60

and the shares of the Company's common stock issuable upon exercise of the Deerfield Warrant became

120,192

shares of common stock. As a result of the Warrant Inducement transaction on

January 26, 2021 (

discussed below) the anti-dilution provisions within the Deerfield Warrant were triggered and the exercise price was reduced from

$93.60

per share to

$46.25

per share. The Company amortized the debt discount over the term of the Deerfield Convertible Note and the expense was recorded as interest expense related to amortization of debt issuance costs and discount in the unaudited condensed statements of operations. The Deerfield Convertible Note was extinguished in

February 2021

and the remaining debt discount was written off and recognized as a loss on extinguishment of debt.

The Company determined that the Deerfield Warrant should be recorded as a liability and stated at fair value at each reporting period upon inception. As stated above, upon completion of the IPO, the Deerfield Warrant automatically converted into warrants to purchase the Company's common stock. The Deerfield Warrant remains classified as a liability and is recorded at fair value at each reporting period since it can be settled in cash. Changes to the fair value of the warrant liability are recorded through the unaudited condensed statements of operations as a fair value adjustment (Note H).

In connection with the APADAZ License Agreement, in

October 2018,

the Company issued to KVK a warrant to purchase up to

500,000

shares of common stock of the Company at an exercise price of

$2.30

per share, which reflected the closing price of the Company's common stock on the Nasdaq Stock Market on the execution date of the APADAZ License Agreement (the “KVK Warrant”). The KVK Warrant is initially

not

exercisable for any shares of common stock. Upon the achievement of each of

four

specified milestones under the KVK Warrant, the KVK Warrant will become exercisable for an additional

125,000

shares, up to an aggregate of

500,000

shares of the Company's common stock. The exercise price and the number and type of shares underlying the KVK Warrant are subject to adjustment in the event of specified events, including a reclassification of the Company's common stock, a subdivision or combination of the Company's common stock, or in the event of specified dividend payments. The KVK Warrant is exercisable until

October

24,

2023.

Upon exercise, the aggregate exercise price

may

be paid, at KVK's election, in cash or on a net issuance basis, based upon the fair market value of the Company's common stock at the time of exercise. After giving effect to the Reverse Stock Split effected in

December 2020,

the exercise price of the KVK Warrant became

$36.80

and the shares of common stock issuable upon exercise of the KVK Warrant became

31,250

shares of common stock.

The Company determined that, since KVK qualifies as a customer under ASC

606,

the KVK Warrant should be recorded as a contract asset and recognized as contra-revenue as the Company recognizes revenue from the APADAZ License Agreement. In addition, the Company determined that the KVK Warrant qualifies as a derivative under ASC

815

and should be recorded as a liability and stated at fair value each reporting period. The Company calculates the fair value of the KVK Warrant using a probability-weighted Black-Scholes option pricing model. Changes in fair value resulting from changes in the inputs to the Black Scholes model are accounted for as changes in the fair value of the derivative under ASC

815

and are recorded as fair value adjustment related to derivative and warrant liability in the statements of operations. Changes in the number of shares that are expected to be issued are treated as changes in variable consideration under ASC

606

and are recorded as a change in contract asset in the balance sheets. As of

March 31, 2021

and

December 31, 2020,

a contract asset of

$0.4

million is recorded in other long-term assets on the balance sheets related to the KVK Warrant.

Pre-Funded

Warrants

January

12,

2021,

pursuant to the terms of the Underwriting Agreement, the Company issued pre-funded warrants to purchase

926,844

shares of the Company's common stock to specified investors in the Public Offering. Each pre-funded warrant had an initial exercise price per share equal to

$0.0001.

The pre-funded warrants were immediately exercisable. The pre-funded warrants were exercisable, at the option of each holder, in whole or in part, by delivering to the Company a duly executed exercise notice accompanied by payment in full for the number of shares of common stock purchased upon such exercise. In lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the aggregate exercise price, the holder was able to elect instead to receive upon such exercise (either in whole or in part) the net number of shares of common stock determined according to a formula set forth in the pre-funded warrants. As of

March 31, 2021,

all pre-funded warrants have been exercised for

926,841

shares of common stock and gross proceeds of approximately

$72.

Warrants to Purchase Common Stock

January

12,

2021,

pursuant to the terms of the Underwriting Agreement and

December 2020

Exchange Agreement, the Company issued warrants to purchase

12,078,361

shares of the Company's common stock (collectively, the “Offering Warrants”) in the Public Offering and in connection with the transactions contemplated under the

December 2020

Exchange Agreement. The Offering Warrants were immediately exercisable and expire on the

fifth

anniversary of their issuance date, at an exercise price per share of common stock equal to

$6.50

per share. The Offering Warrants are exercisable, at the option of each holder, in whole or in part, by delivering to the Company a duly executed exercise notice, provided that payment in full for the number of shares of the Company's common stock purchased upon such exercise is delivered to the Company in accordance with the terms of the Offering Warrants. In lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the aggregate exercise price, the holder

may

elect instead to receive upon such exercise (either in whole or in part) the net number of shares of common stock determined according to a formula set forth in the Offering Warrants. A holder (together with its affiliates)

may

not

exercise any portion of the Offering Warrant to the extent that the holder and its affiliates and any other person or entities with which such holder would constitute a Section

(d) “group” would own more than

4.99%

of the Company's outstanding common stock immediately after exercise. Except as otherwise provided in the Offering Warrants or by virtue of such holder's ownership of shares of the Company's common stock, the holders of the Offering Warrants do

not

have the rights or privileges of holders of common stock with respect to the shares of common stock underlying the Offering Warrants, including any voting rights, until they exercise their Offering Warrants. The Offering Warrants provide that holders have the right to participate in distributions or dividends paid on the Company's common stock. In the event of a fundamental transaction, as described in the Offering Warrants and generally including any reorganization, recapitalization or reclassification of the Company's common stock, the sale, transfer or other disposition of all or substantially all of the Company's properties or assets, the Company's consolidation or merger with or into another person, the acquisition of more than

50%

of the Company's outstanding common stock, or any person or group becoming the beneficial owner of

50%

of the voting power represented by the Company's outstanding common stock, the holders of the Offering Warrants will be entitled to receive upon exercise of the Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the Offering Warrants immediately prior to such fundamental transaction. In addition, in the event of a fundamental transaction which is approved by the Company's board of directors, the holders of the warrants have the right to require the Company or a successor entity to redeem the Offering Warrants for cash in the amount of the Black Scholes value of the unexercised portion of the Offering Warrants on the date of the consummation of the fundamental transaction. In the event of a fundamental transaction which is

not

approved by the Company's board of directors, the holders of the Offering Warrants have the right to require the Company or a successor entity to redeem the Offering Warrants in the amount of the Black Scholes value of the unexercised portion of the Offering Warrants on the date of the consummation of the fundamental transaction payable in the form of consideration paid to the holders of common stock in such fundamental transaction. The Offering Warrants meet the equity classification requirements and thus are recorded in additional paid-in capital on the unaudited condensed balance sheets. As of

March 31, 2021,

3,157,895

Offering Warrants have been exercised for

2,726,918

shares of common stock and gross proceeds of approximately

$14.9

million. These amounts are exclusive of the Offering Warrants exercised as part of the Inducement Transaction discussed below.

Underwriter Warrant

January

12,

2021,

pursuant to the terms of the Underwriting Agreement, the Company issued to the Underwriter a warrant to purchase

806,932

shares of the Company's common stock (the “Underwriter Warrant”). The Underwriter Warrant is subject to substantially the same terms and conditions as the Warrants, provided that the exercise price for the Underwriter Warrant is

$8.125

per share. If the Underwriter exercises any additional portion of its over-allotment option, then the Company shall issue the Underwriter an additional Underwriter Warrant exercisable for a number of shares of common stock equal to

5.0%

of the number of shares of common stock issued in such over-allotment exercise (including the shares of common stock issuable upon the exercise of any Warrants issued in connection therewith). In connection with the closing of the Underwriter's partial exercise of its over-allotment option, on

February 3, 2021,

the Underwriter was issued an additional warrant to purchase

18,702

shares of common stock. As of

March 31, 2021,

Underwriter Warrants have been exercised.

Warrant Exercise Inducement Letters and Issuance of Warrants

January 26, 2021,

the Company entered into warrant exercise inducement offer letters (“Inducement Transaction”) with certain holders of warrants issued in the Public Offering discussed above (the "Existing Warrants") (collectively, the “Exercising Holders”) pursuant to which such holders agreed to exercise for cash their Existing Warrants to purchase

6,620,358

shares of the Company's common stock in exchange for the Company's agreement to issue new warrants (the “Inducement Warrants”) on substantially the same terms as the Existing Warrants, except as set forth in the following sentence, to purchase up to

7,944,430

shares of the Company's common stock, which is equal to

120%

of the number of shares of the Company's common stock issued upon exercise of the Existing Warrants. The purchase price of the Inducement Warrants was

$0.125

per share underlying each Inducement Warrant, and the Inducement Warrants have an exercise price of

$6.36

per share. The Company received aggregate gross proceeds of approximately

$44.0

million from the exercise of the Existing Warrants by the Exercising Holders and the sale of the Inducement Warrants. The Company engaged Roth as its exclusive placement agent in connection with these transactions and paid Roth a fee equal to

of gross proceeds from the exercise of the Existing Warrants by the Exercising Holders and the sale of the Inducement Warrants. As a result of this transaction the anti-dilution provisions contained with the Deerfield Warrant were triggered and the exercise price of the Deerfield Warrant was reduced from

$93.60

per share to

$46.25

per share.

The Inducement Warrants were immediately exercisable and expire on the

fifth

anniversary of their issuance date, at an exercise price per share of common stock equal to

$6.36

per share. The Inducement Warrants are exercisable, at the option of each holder, in whole or in part, by delivering to the Company a duly executed exercise notice, provided that payment in full for the number of shares of the Company's common stock purchased upon such exercise is delivered to the Company in accordance with the terms of the Inducement Warrants. In lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the aggregate exercise price, the holder

may

elect instead to receive upon such exercise (either in whole or in part) the net number of shares of common stock determined according to a formula set forth in the warrants. A holder (together with its affiliates)

may

not

exercise any portion of the Inducement Warrant to the extent that the holder and its affiliates and any other person or entities with which such holder would constitute a Section

(d) “group” would own more than

4.99%

(or, upon election by a holder prior to the issuance of its Inducement Warrants,

9.99%

) of the Company's outstanding common stock immediately after exercise. Except as otherwise provided in the Inducement Warrants or by virtue of such holder's ownership of shares of the Company's common stock, the holders of the Inducement Warrants do

not

have the rights or privileges of holders of common stock with respect to the shares of common stock underlying the Inducement Warrants, including any voting rights, until they exercise their Inducement Warrants. The Inducement Warrants provide that holders have the right to participate in distributions or dividends paid on the Company's common stock. In the event of a fundamental transaction, as described in the Inducement Warrants and generally including any reorganization, recapitalization or reclassification of the Company's common stock, the sale, transfer or other disposition of all or substantially all of the Company's properties or assets, the Company's consolidation or merger with or into another person, the acquisition of more than

50%

of the Company's outstanding common stock, or any person or group becoming the beneficial owner of

50%

of the voting power represented by the Company's outstanding common stock, the holders of the Inducement Warrants will be entitled to receive upon exercise of the Inducement Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the Inducement Warrants immediately prior to such fundamental transaction. In addition, in the event of a fundamental transaction which is approved by the Company's board of directors, the holders of the Inducement Warrants have the right to require the Company or a successor entity to redeem the Inducement Warrants for cash in the amount of the Black Scholes value of the unexercised portion of the Inducement Warrants on the date of the consummation of the fundamental transaction. In the event of a fundamental transaction which is

not

approved by the Company's board of directors, the holders of the Inducement Warrants have the right to require the Company or a successor entity to redeem the Inducement Warrants in the amount of the Black Scholes value of the unexercised portion of the Warrants on the date of the consummation of the fundamental transaction payable in the form of consideration paid to the holders of common stock in such fundamental transaction. As of

March 31, 2021,

1,676,921

Inducement Warrants have been exercised for

1,676,921

shares of common stock and gross proceeds of approximately

$10.7

million.

In accordance with the Inducement Transaction we recognized a deemed dividend of

$37.4

million which is the difference between the grant date fair value of the Inducement Warrants and the purchase price of the Inducement Warrants. This deemed dividend is added to net loss to arrive at net loss attributable to common stockholders on the unaudited condensed statements of operations.

Note H - Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Fair Value Disclosures [Text Block]

H.	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:

	●	Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;
	●	Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and
	●	Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The carrying amounts of certain financial instruments, including cash and cash equivalents, restricted cash and accounts payable and accrued expenses, approximate their respective fair values due to the short-term nature of such instruments.

The fair values of the Deerfield Convertible Note,

December 2019

Notes and the

January 2020

Note were

$7.3

million,

$56.2

million and

$3.1

million, respectively, as of

December 31, 2020.

The Deerfield Convertible Note,

December 2019

Notes and the

January 2020

Note were all extinguished in the

first

quarter of

2021

and therefore had

value as of

March 31, 2021.

The Deerfield Convertible Note,

December 2019

Notes and the

January 2020

Note fell within Level

of the fair value hierarchy as their value was based on the credit worthiness of the Company, which was an unobservable input. The Company used a Tsiveriotis-Fernandes model to value the Deerfield Convertible Note,

December 2019

Notes and the

January 2020

Note as of

December 31, 2020.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. This determination requires significant judgments to be made. The following table summarizes the conclusions reached regarding fair value measurements as of

March 31, 2021

and

December 31, 2020 (

in thousands):

	Balance as of March 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Deerfield Warrant liability	$	240	$	—	$	—	$	240
Embedded Warrant Put Option		52		—		—		52
KVK Warrant liability		42		—		42		—
Total liabilities	$	334	$	—	$	42	$	292

	Balance as of December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Deerfield Warrant liability	$	230	$	—	$	—	$	230
Embedded Warrant Put Option		25		—		—		25
Deerfield Note Conversion Feature		—		—		—		—
KVK Warrant liability		49		—		49		—
Total liabilities	$	304	$	—	$	49	$	255

The Company's Deerfield Warrant liability and embedded Warrant Put Option are, and the embedded Deerfield Note Put Option was, measured at fair value on a recurring basis. As of

March 31, 2021,

the Deerfield Warrant liability and embedded Warrant Put Option are, and as of

December 31, 2020

the Deerfield Warrant liability, embedded Warrant Put Option and the embedded Deerfield Note Conversion Feature were, reported on the unaudited condensed balance sheets in derivative and warrant liability. The Company used a Monte Carlo simulation to value the Deerfield Warrant liability, embedded Warrant Put Option and the embedded Deerfield Note Conversion Feature for all periods presented. Significant unobservable inputs used in measuring the fair value of these financial instruments included the Company's estimated enterprise value, an estimate of the timing of a liquidity or fundamental change event and a present value discount rate. Changes in the fair value of the Deerfield Warrant liability and embedded Warrant Put Option are, and changes in the fair value of the embedded Deerfield Note Put Option were, reflected in the unaudited condensed statements of operations for the

three

months ended

March 31, 2021

and

2020

as a fair value adjustment related to derivative and warrant liability.

The derivative liability for the Deerfield Warrant was

$240,000

and

$230,000

March 31, 2021

and

December 31, 2020,

respectively. The derivative liability for the embedded Warrant Put Option was

$52,000

and

$25,000

March 31, 2021

and

December 31, 2020,

respectively. The derivative liability for the Deerfield Note Conversion Feature had

value at

December 31, 2020.

10%

increase in the enterprise value would result in an increase of

$61,000

in the estimated fair value of the Deerfield Warrant liability and an increase of

$1,000

in the estimated fair value of the embedded Warrant Put Option liability. In addition, the Company assumed a weighted-average probability of a liquidity event occurring of approximately

14%

with an estimated probability-weighted value of approximately

$35.3

million and a weighted-average probability of a fundamental change event occurring of approximately

30%

with an estimated probability-weighted value of approximately

$1.1

billion, respectively, with estimated timing in each scenario of the

fourth

quarter of

2022.

The Company's KVK Warrant liability is measured at fair value on a recurring basis. As of

March 31, 2021

and

December 31, 2020,

the KVK Warrant liability is reported on the unaudited condensed balance sheets in derivative and warrant liability. The Company estimates the fair value of the KVK Warrant using a probability-weighted Black-Scholes option-pricing model, which requires the use of subjective assumptions, including the expected term of the warrant, the expected stock price volatility, expected dividend yield and the risk-free interest rate for the expected term of the warrant. The expected term represents the period of time the warrant is expected to be outstanding. For the KVK Warrant, the Company used an expected term equal to the contractual term of the warrant. Expected volatility is based on the Company's historical volatility since the IPO. The Company assumes

dividend yield because dividends are

not

expected to be paid in the near future, which is consistent with the Company's history of

not

paying dividends. Changes in the fair value of the KVK Warrant liability are reflected in the unaudited condensed statements of operations for the

three

months ended

March 31, 2021

and

2020

as a fair value adjustment related to derivative and warrant liability.

A reconciliation of the beginning and ending balances for the derivative and warrant liability measured at fair value on a recurring basis using significant unobservable inputs (Level

) is as follows (in thousands):

	Three months ended March 31,
	2021		2020
Balance as of beginning of period	$	255	$	96
Adjustment to fair value		37		(58	)
Balance as of end of period	$	292	$	38

- 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

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of unaudited condensed financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, the useful lives of property and equipment, the recoverability of long-lived assets, the incremental borrowing rate for leases, and assumptions used for purposes of determining stock-based compensation, income taxes, and the fair value of the derivative and warrant liability, among others. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities.
Revenue from Contract with Customer [Policy Text Block]	Revenue Recognition The Company commenced recognizing revenue in accordance with the provisions of ASC 606, Revenue from Contracts with Customers (“ASC 606” ), starting January 1, 2018. Arrangements with Multiple-Performance Obligations From time to time, the Company enters into arrangements for research and development, manufacturing and/or commercialization services. Such arrangements may require the Company to deliver various rights, services, including intellectual property rights/licenses, research and development services, and/or commercialization services. The underlying terms of these arrangements generally provide for consideration to the Company in the form of nonrefundable upfront license fees, development and commercial performance milestone payments, royalty payments, consulting fees and/or profit sharing. In arrangements involving more than one performance obligation, each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects the Company's best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis or using an adjusted market assessment approach if selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Should there be royalties, the Company utilizes the sales and usage-based royalty exception in arrangements that resulted from the license of intellectual property, recognizing revenues generated from royalties or profit sharing as the underlying sales occur. Licensing Agreements The Company enters into licensing agreements with licensees that fall under the scope of ASC 606. The terms of the Company's licensing agreements typically include one or more of the following: (i) upfront fees; (ii) milestone payments related to the achievement of development, regulatory, or commercial goals; and (iii) royalties on net sales of licensed products. Each of these payments may result in licensing revenues. As part of the accounting for these agreements, the Company must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligations. Generally, the estimation of the stand-alone selling price may include such estimates as, independent evidence of market price, forecasted revenues or costs, development timelines, discount rates, and probability of regulatory success. The Company evaluates each performance obligation to determine if they can be satisfied at a point in time or over time, and it measures the services delivered to the licensee which are periodically reviewed based on the progress of the related program. The effect of any change made to an estimated input component and, therefore revenue or expense recognized, would be recorded as a change in estimate. In addition, variable consideration (e.g., milestone payments) must be evaluated to determine if it is constrained and, therefore, excluded from the transaction price. Up-front Fees: If a license to the Company's intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from the transaction price allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. Milestone Payments: At the inception of each arrangement that includes milestone payments (variable consideration), the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company's or the licensee's control, such as non-operational developmental and regulatory approvals, are generally not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of milestones that are within its or the licensee's control, such as operational developmental milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues and earnings in the period of adjustment. Revisions to the Company's estimate of the transaction price may also result in negative licensing revenues and earnings in the period of adjustment. KP415 License Agreement In September 2019, the Company entered into a Collaboration and License Agreement (the “KP415 License Agreement”) with Commave Therapeutics SA, an affiliate of Gurnet Point Capital (“Commave”). Under the KP415 License Agreement, the Company granted to Commave an exclusive, worldwide license to develop, manufacture and commercialize the Company's product candidates containing serdexmethylphenidate (“SDX”) and d-methylphenidate (“d-MPH”), including AZSTARYS, KP484, and, at the option of Commave, KP879, KP922 or any other product candidate developed by the Company containing SDX and developed to treat ADHD or any other central nervous system disorder (the “Additional Product Candidates” and, collectively with AZSTARYS and KP484, the “Licensed Product Candidates”). Pursuant to the KP415 License Agreement, Commave (i) paid the Company an upfront payment of $10.0 million; (ii) agreed to pay milestone payments of up to $63.0 million upon the occurrence of specified regulatory milestones related to AZSTARYS and KP484; (iii) agreed to pay additional payments of up to $420.0 million upon the achievement of specified U.S. sales milestones; and (iv) has agreed to pay the Company quarterly, tiered royalty payments ranging from a percentage in the high single digits to the mid-twenties of Net Sales (as defined in the KP415 License Agreement) in the United States and a percentage in the low to mid-single digits of Net Sales in each country outside the United States, in each case subject to specified reductions under certain conditions as described in the KP415 License Agreement. Commave is obligated to make such royalty payments on a product-by-product basis until expiration of the Royalty Term (as defined in the KP415 License Agreement) for the applicable product. In exchange for the exclusive, worldwide license, discussed above, Commave paid the Company a non-refundable upfront payment of $10.0 million. The Company is also entitled to additional payments from Commave of up to $63.0 million, conditioned upon the achievement of specified regulatory milestones related to AZSTARYS and KP484. In May 2020, the FDA accepted the Company's NDA for AZSTARYS. Per the KP415 License Agreement, the Company received a regulatory milestone payment of $5.0 million following the FDA's acceptance of the AZSTARYS NDA. In addition, the Company is entitled to payments from Commave of up to $420.0 million in the aggregate, conditioned upon the achievement of certain U.S. sales milestones, which are dependent upon, among other things, the timing of approval for a new drug application for AZSTARYS and its final approved label, if any. Further, Commave will pay the Company quarterly, tiered royalty payments ranging from a percentage in the high single digits to mid-twenties of Net Sales (as defined in the KP415 License Agreement) in the U.S. and a percentage in the low to mid-single digits of Net Sales in each country outside of the U.S., in each case subject to specified reductions under certain conditions as described in the KP415 License Agreement. Commave also agreed to be responsible for and reimburse the Company for all of the development, commercialization and regulatory expenses incurred on the licensed products, subject to certain limitations as set forth in the KP415 License Agreement. As part of this agreement the Company is obligated to perform consulting services on behalf of Commave related to the licensed products. For these consulting services, Commave has agreed to pay the Company a set rate per hour on any consulting services performed on behalf of Commave for the benefit of the licensed products. The KP415 License Agreement also established a joint steering committee, which monitors progress of the development of both AZSTARYS and KP484. Subject to the oversight of the joint steering committee, the Company otherwise retains all responsibility for the conduct of all regulatory activities required to obtain new drug application approval of AZSTARYS and KP484; provided that Commave shall be the sponsor of any clinical trials conducted by the Company on behalf of Commave. In accordance with the terms of the Company's March 20, 2012 Termination Agreement with Aquestive Therapeutics (formerly known as MonoSol Rx, LLC), Aquestive Therapeutics has the right to receive an amount equal to 10% of any royalty or milestone payments made to the Company related to AZSTARYS, KP484 or KP879 under the KP415 License Agreement. The KP415 License Agreement is within the scope of ASC 606, as the transaction represents a contract with a customer where the participants function in a customer / vendor relationship and are not exposed equally to the risks and rewards of the activities contemplated under the KP415 License Agreement. Using the concepts of ASC 606, the Company identified the grant of the exclusive, worldwide license and the performance of consulting services, which includes the reimbursement of out-of-pocket third -party research and development costs, as its only two performance obligations at inception. The Company further determined that the transaction price, at inception, under the agreement was $10.0 million upfront payment plus the fair value of the Development Costs (as defined in the KP415 License Agreement) which was allocated among the performance obligations based on their respective related stand-alone selling price. The consideration allocated to the grant of the exclusive, worldwide license was $10.0 million, which reflects the standalone selling price. The Company utilized the adjusted market assessment approach to determine this standalone selling price which included analyzing prospective offers received from various entities throughout our licensing negotiation process as well as the consideration paid to other competitors in the market for a similar type transaction. The Company determined that the intellectual property licensed under the KP415 License Agreement represented functional intellectual property and it has significant standalone functionality and therefore should be recognized at a point in time as opposed to over time. The revenue related to the grant of the exclusive, worldwide license was recognized at a point in time at the inception of the KP415 License Agreement. The consideration allocated to the performance of consulting services, which includes the reimbursement of out-of-pocket third -party research and development costs, was the fair value of the Development Costs (as defined in the KP415 License Agreement), which reflects the standalone selling price. The Company utilized a blended approach which took into consideration the adjusted market assessment approach and the expected cost plus a margin approach to determine this standalone selling price. This blended approach utilized the adjusted market approach and expected cost plus margin approach to value the performance of consulting services which included analyzing hourly rates of vendors in the a market who perform similar services to those of the Company to develop a range and then analyzing the average cost per hour of our internal resources and applying a margin which placed the value in the median of the previously identified range. For the reimbursement of out-of-pocket third -party research and development costs the Company utilized the expected cost plus a margin approach, which included estimating the actual out-of-pocket cost the Company expects to pay to third -parties for research and development costs and applying a margin, if necessary. The Company determined that no margin was necessary of these out-of-pocket third -party research and development costs as these are purely pass-through costs and the margin for managing these third -party activities is included within the value of the performance of consulting services. The Company determined that the performance of consulting services, including reimbursement of out-of-pocket third -party research and development costs, is a performance obligation that is satisfied over time as the services are performed and the reimbursable costs are paid. As such, the revenue related to the performance obligation will be recognized as the consulting services are performed and the services associated with the reimbursable out-of-pocket third -party research and development costs are incurred and paid by the Company, in accordance with the practical expedient allowed under ASC 606 regarding an entity's right to consideration from a customer in an amount that corresponds directly to the value to the customer of the entity's performance completed to date. As discussed above, the combination of the standalone selling price of these consulting services and certain out-of-pocket third -party research and development costs for AZSTARYS was the fair value of the Development Costs at inception. These Development Costs effectively created a cap on certain consulting services and out-of-pocket third -party research and development costs identified in the initial product development plan for AZSTARYS which was anticipated at the inception date of the KP415 License Agreement. As of March 31, 2021, the Company has recognized all of the consulting services and out-of-pocket third -party research and development costs under this cap. Under the KP415 License Agreement, Commave was granted an exclusive right to first negotiation whereby upon completion of a Phase 1 proof-of-concept study, the Company and Commave may negotiate the economic terms under which certain Additional Products may be included as a Product (both as defined in the KP415 License Agreement) under the KP415 License Agreement (the “Additional Product Option”). In addition to the Additional Product Option, Commave was also granted a right of first refusal (“ROFR”) to acquire, license and/or commercialize any of the Additional Product Candidates should they choose not to exercise the Additional Product Option. Should Commave choose to exercise the Additional Product Option on any Additional Product Candidates, Commave and the Company shall negotiate in good faith regarding the economic terms of such Additional Product Candidate. Further, should Commave exercise the ROFR on any Additional Product Candidate, the economic terms of the agreement shall be the same as those offered to the third -party. Under ASC 606 an option to acquire additional goods or services gives rise to a performance obligation if the option provides a material right to the customer. The Company concluded that the above described Additional Product Option and ROFR do not constitute material rights to the customer as Commave would acquire the goods or services at a to be negotiated price, which the Company expects to approximate fair value and therefore Commave would not receive a material discount on these goods or services compared to market rates. The Company is entitled to additional payments from Commave conditioned upon the achievement of specified regulatory milestones related to AZSTARYS and KP484 and the achievement of certain U.S. sales milestones, which are dependent upon, among other things, the timing of approval for a new drug application for AZSTARYS and its final approved label, if any. Further, Commave will pay the Company quarterly, tiered royalty payments ranging from a percentage in the high single digits to mid-twenties of Net Sales (as defined in the KP415 License Agreement) in the U.S. and a percentage in the low to mid-single digits of Net Sales in each country outside of the U.S., in each case subject to specified reductions under certain conditions as described in the KP415 License Agreement. The Company concluded that these regulatory milestones, sales milestones and royalty payments each contain a significant uncertainty associated with a future event. As such, these milestone and royalty payments are constrained at contract inception and are not included in the transaction price as the Company could not conclude that it is probable a significant reversal in the amount of cumulative revenue recognized will not occur surrounding these milestone payments. At the end of each reporting period, the Company updates its assessment of whether the milestone and royalty payments are constrained by considering both the likelihood and magnitude of the potential revenue reversal. For example, in May 2020, the FDA accepted the Company's NDA for AZSTARYS. Per the KP415 License Agreement, the Company received a regulatory milestone payment of $5.0 million following the FDA's acceptance of the AZSTARYS NDA. Since the FDA accepted the Company's NDA for AZSTARYS the constraint was removed and revenue recognized. The associated revenue was allocated among the two performance obligations identified at contract inception. Since both performance obligations were satisfied as of the end of the second quarter of 2020 the full $5.0 million payment was recognized as revenue during the second quarter of 2020. On April 8, 2021, the Company entered into Amendment No. 1 to the KP415 Amendment (the "KP415 Amendment"). Pursuant to the KP415 Amendment, the Company and Commave agreed to modify the compensation terms of the KP415 License Agreement. Pursuant to the KP415 Amendment, Commave paid the Company $10.0 million in connection with the entry into the KP415 Amendment as a result of the regulatory approval of AZSTARYS in the United States which occurred on March 2, 2021. Commave also agreed to pay the Company $10.0 million within thirty calendar days following receipt of the scheduling determination of the compound SDX by the U.S. Drug Enforcement Agency (the "DEA"), which occurred on May 7, 2020. SDX is the prodrug component of AZSTARYS. In addition, the KP415 Amendment increases the total remaining future regulatory and sales milestone payments related to AZSTARYS to up to an aggregate of $590.0 million in payments upon the occurrence of specified regulatory milestones related to AZSTARYS and upon the achievement of specified U.S. net sales milestones. Further, Commave agreed to pay the Company quarterly, tiered royalty payments ranging from a percentage in the high single digits to the mid-twenties of Net Sales in the United States and a percentage in the low to mid-single digits of Net Sales in each country outside the United States, in each case subject to specified reductions under certain conditions, including with respect to the final approval label, as described in the KP415 License Agreement. Commave is obligated to make such royalty payments on a product-by-product basis until expiration of the Royalty Term for the applicable product. Pursuant to the KP415 Amendment, Commave and the Company also agreed to modify Commave's right of first refusal such that the Company's product candidate, KP922, is no longer subject to Commave' right of first refusal to acquire, license or commercialize any Additional Product Candidate. Commave's right of first refusal shall only apply to any Additional Product Candidate which contains SDX, with such right of first refusal expiring upon the acceptance of an NDA for such Additional Product Candidate containing SDX. Per the KP415 Amendment, the Company earned a regulatory milestone payment of $10.0 million following the FDA's approval of the AZSTARYS NDA. Since the FDA approved the NDA for AZSTARYS the constraint was removed and revenue recognized. The associated revenue was allocated among the two performance obligations identified at contract inception. Since both performance obligations were satisfied as of the end of the first quarter of 2021 the full $10.0 million was recognized as revenue during the first quarter of 2021. In accordance with ASC 340 - 40, Contracts with Customers , the Company recognized $1.0 million of royalty costs due to payment to Aquestive related to the regulatory milestone earned and recorded it in the item titled royalty and direct contract acquisition costs in the unaudited condensed statements of operations. For the three months ended March 31, 2021 and 2020, the Company recognized revenue under the KP415 License Agreement of $10.0 million and $2.1 million, respectively. There was no deferred revenue related to this agreement as of March 31, 2021 or December 31, 2020. APADAZ License Agreement In October 2018, the Company entered into a Collaboration and License Agreement (the “APADAZ License Agreement”) with KVK Tech, Inc. (“KVK”) pursuant to which we have granted an exclusive license to KVK to conduct regulatory activities for, manufacture and commercialize APADAZ in the United States. Pursuant to the APADAZ License Agreement, KVK agreed to pay the Company certain payments and cost reimbursements of an estimated $3.4 million, which includes a payment of $2.0 million within 10 days of the achievement of a specified milestone related to the initial formulary adoption of APADAZ (the “Initial Adoption Milestone”). In addition, KVK has agreed to make additional payments to the Company upon the achievement of specified sales milestones of up to $53.0 million in the aggregate. Further, the Company and KVK will share the quarterly net profits of APADAZ by KVK in the United States at specified tiered percentages, ranging from the Company receiving 30% to 50% of net profits, based on the amount of net sales on a rolling four quarter basis. The Company is responsible for a portion of commercialization and regulatory expenses for APADAZ until the Initial Adoption Milestone is achieved, after which KVK will be responsible for all expenses incurred in connection with commercialization and maintaining regulatory approval in the United States. The APADAZ License Agreement will terminate on the later of the date that all of the patent rights for APADAZ have expired in the United States or KVK's cessation of commercialization of APADAZ in the United States. KVK may terminate the APADAZ License Agreement upon 90 days written notice if a regulatory authority in the United States orders KVK to stop sales of APADAZ due to a safety concern. In addition, after the third anniversary of the APADAZ License Agreement, KVK may terminate the APADAZ License Agreement without cause upon 18 months prior written notice. The Company may terminate the APADAZ License Agreement if KVK stops conducting regulatory activities for or commercializing APADAZ in the United States for a period of six months, subject to specified exceptions, or if KVK or its affiliates challenge the validity, enforceability or scope of any licensed patent under the APADAZ License Agreement. Both parties may terminate the APADAZ License Agreement (i) upon a material breach of the APADAZ License Agreement, subject to a 30 -day cure period, (ii) if the other party encounters bankruptcy or insolvency or (iii) if the Initial Adoption Milestone is not achieved. Upon termination, all licenses and other rights granted by the Company to KVK pursuant to the APADAZ License Agreement would revert to the Company. The APADAZ License Agreement also established a joint steering committee, which monitors progress of the commercialization of APADAZ. Consulting Arrangements The Company enters into consulting arrangements with third -parties that fall under the scope of ASC 606. These arrangements may require the Company to deliver various rights, services, including research and development services, regulatory services and/or commercialization support services. The underlying terms of these arrangements generally provide for consideration to the Company in the form of consulting fees and reimbursements of out-of-pocket third -party research and development, regulatory and commercial costs. Corium Consulting Agreement In July 2020, the Company entered into a consultation services arrangement (the “Corium Consulting Agreement”) with Corium, Inc. (“Corium”) under which Corium engaged the Company to guide the product development and regulatory activities for certain current and potential future products in Corium's portfolio, as well as continue supporting preparation for the potential commercial launch of AZSTARYS (together, “Corium Consulting Services”). Corium is a portfolio company of Gurnet Point Capital and is responsible for leading all commercialization activities for AZSTARYS under the KP415 License Agreement, as discussed above. Under the Corium Consulting Agreement, the Company is entitled to receive payments from Corium of up to $15.6 million, $13.6 million of which will be paid in quarterly installments through March 31, 2022. The remaining $2.0 million is conditioned upon the achievement of a specified regulatory milestone related to Corium's product portfolio. Corium also agreed to be responsible for and reimburse the Company for all development, commercialization and regulatory expenses incurred as part of the performance of the Corium Consulting Services. The Corium Consulting Agreement is within the scope of ASC 606, as the transaction represents a contract with a customer where the participants function in a customer / vendor relationship and are not exposed equally to the risks and rewards of the activities contemplated under the Corium Consulting Agreement. Using the concepts of ASC 606, the Company identified the performance of consulting services, which includes the reimbursement to the Company of third -party pass-through costs, as its only performance obligation at inception. The Company further determined that the transaction price, at inception, under the agreement was $13.6 million which is the fair value of the consulting services, including the reimbursement of third -party pass-through costs. The Company concluded that the regulatory milestone contains a significant uncertainty associated with a future event. As such, this milestone is constrained at contract inception and is not included in the transaction price as the Company could not conclude that it is probable a significant reversal in the amount of cumulative revenue recognized will not occur surrounding these milestone payments. At the end of each reporting period, the Company updates its assessment of whether the milestone is constrained by considering both the likelihood and magnitude of the potential revenue reversal. The Company determined that the performance of consulting services, including reimbursement of third -party pass-through costs, is a performance obligation that is satisfied over time as the services are performed and the reimbursable costs are paid. As such, the revenue related to the performance obligation will be recognized as the consulting services are performed and the services associated with the reimbursable third -party pass-through costs are incurred and paid by the Company, in accordance with the practical expedient allowed under ASC 606 regarding an entity's right to consideration from a customer in an amount that corresponds directly to the value to the customer of the entity's performance completed to date. As of March 31, 2021, the Company has recognized approximately 45% of the consulting services and third -party pass-through costs under the Corium Consulting Agreement. For the three months ended March 31, 2021, the Company recognized revenue under the Corium Consulting Agreement of $1.6 million. There was no revenue recognized for the three months ended March 31, 2020 related to the Corium Consulting Agreement. As of March 31, 2021, the Company had deferred revenue related to this agreement of $0.2 million. As of December 31, 2020, the Company had deferred revenue related to this agreement or $0.1 million. Other Consulting Arrangements For the three months ended March 31, 2021, the Company recognized revenue under other consulting arrangements of $0.5 million. There was no revenue recognized from other consulting arrangements for the three months ended March 31, 2020. There was no deferred revenue from other consulting arrangements as of March 31, 2021 or December 31, 2020.
Receivable [Policy Text Block]	Accounts and Other Receivables Accounts and other receivables consists of receivables under the KP415 License Agreement and Corium Consulting Agreement, as well as receivables related to other consulting arrangements, income tax receivables and other receivables due to the Company. Receivables under the KP415 License Agreement and Corium Consulting Agreement are recorded for amounts due to the Company related to reimbursable third -party costs and performance of consulting services. These receivables, as well as the receivables related to other consulting arrangements, are evaluated to determine if any reserve or allowance should be established at each reporting date. As of March 31, 2021, the Company had receivables related to the Corium Consulting Agreement in the amount of $0.6 million, other consulting arrangements in the amount of $0.6 million and $10.0 million related to the KP415 License Agreement. As of December 31, 2020, the Company had receivables related to the Corium Consulting Agreement of $2.1 million, other consulting arrangements of $0.4 million and no receivables related to the KP415 License Agreement. As of March 31, 2021 and December 31, 2020, no reserve or allowance for doubtful accounts has been established.
New Accounting Pronouncements, Policy [Policy Text Block]	Application of New or Revised Accounting Standards—Adopted From time to time, the Financial Accounting Standards Board (the “FASB”) or other standard-setting bodies issue accounting standards that are adopted by the Company as of the specified effective date. In June 2016, the FASB issued ASU 2016 - 13, Financial Instruments — Credit Losses (Topic 326 ) — Measurement of Credit Losses on Financial Instruments (“ASU 2016 - 13” ), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update applies to all entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The adoption of ASU 2016 - 13 did not have a material impact on the Company's financial statements and disclosures. In August 2018, the FASB issued ASU 2018 - 13, Fair Value Measurement (Topic 820 ) — Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018 - 13” ), which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements, which the FASB finalized on August 28, 2018, including the consideration of costs and benefits. This update applies to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The adoption of ASU 2018 - 13 did not have a material impact on the Company's financial statements and disclosures. Application of New or Revised Accounting Standards—Not Yet Adopted In August 2020, the FASB issued ASU 2020 - 06, Debt — Debt with Conversion and Other Options (Subtopic 470 - 20 ) and Derivatives and Hedging — Contracts in Entity ' s Own Equity (Subtopic 815 - 40 ); Accounting for Convertible Instruments and Contracts in an Entity ' s Own Equity (“ASU 2020 - 06” ), which addresses issues identified as a result of the complexities associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. This update addresses, among other things, the number of accounting models for convertible debt instruments and convertible preferred stock, targeted improvements to the disclosures for convertible instruments and earnings-per-share (“EPS”) guidance and amendments to the guidance for the derivatives scope exception for contracts in an entity's own equity, as well as the related EPS guidance. This update applies to all entities that issue convertible instruments and/or contracts in an entity's own equity. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. FASB specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact the adoption of ASU 2020 - 06 could have on the Company's financial statements and disclosures.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

+ Details

Note A - Description of Business and Basis of Presentation (Details Textual) $ / shares in Units, $ in Millions					1 Months Ended	4 Months Ended
	Feb. 01, 2021 shares	Jan. 12, 2021 USD ($) $ / shares shares	Jan. 08, 2021 $ / shares shares	Dec. 23, 2020 $ / shares	Feb. 29, 2020 USD ($) shares	May 31, 2020 USD ($) shares	Mar. 31, 2021 $ / shares	Feb. 03, 2021 shares	Dec. 31, 2020 $ / shares
Common Stock, Par or Stated Value Per Share (in dollars per share) \| $ / shares				$ 0.0001			$ 0.0001		$ 0.0001
Lincoln Park [Member]
Sale of Securities, Value, Available to Issue \| $					$ 4.0
Purchase Agreement, Term (Month)					1 year
Purchase Agreement, Additional Shares to Be Issued as Commitment Shares (in shares)					19,289
Purchase Agreement, Maximum Shares to be Issued (in shares)					579,260
Stock Issued During Period, Shares, New Issues (in shares)						559,971
Proceeds from Issuance of Common Stock \| $						$ 2.3
Roth Capital Partners, LLC [Member] \| Pre-funded Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		926,844	926,844
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) \| $ / shares		$ 0.0001
Roth Capital Partners, LLC [Member] \| Public Offering Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		12,078,361	7,692,307
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) \| $ / shares		$ 6.50	$ 6.50
Class of Warrant or Right, Offering Price, Per Related Warrant (in dollars per share) \| $ / shares			$ 0.0001
Roth Capital Partners, LLC [Member] \| Underwriter Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		806,932	754,035					18,702
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) \| $ / shares		$ 8.125
Over Allotment Options, Number of Shares for Warrants (in shares)			1,153,846
Roth Capital Partners, LLC [Member] \| Underwriting Agreement [Member]
Stock Issued During Period, Shares, New Issues (in shares)			6,765,463
Shares and Warrants Issued, Price Per Share (in dollars per share) \| $ / shares			$ 6.50
Shares Issued, Price Per Share (in dollars per share) \| $ / shares			$ 6.4999
Proceeds from Issuance or Sale of Equity, Total \| $		$ 52.4
Roth Capital Partners, LLC [Member] \| Over-Allotment Option [Member]
Stock Issued During Period, Shares, New Issues (in shares)	374,035
Purchase Agreement Optional Period to Shares (Day)			45 days
Purchase Agreement, Maximum, Additional Shares Available for Purchase During the Optional Period (in shares)			1,153,846
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio				16

Note B - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands					1 Months Ended	3 Months Ended
	May 07, 2021	Apr. 08, 2021	Sep. 03, 2019	Mar. 20, 2012	Oct. 31, 2018	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Mar. 02, 2021	Dec. 31, 2020	Jul. 31, 2020	May 31, 2020
Revenue from Contract with Customer, Including Assessed Tax						$ 12,117		$ 2,089
Accounts Receivable, Allowance for Credit Loss, Ending Balance						0				$ 0
License [Member]
Accounts Receivable, after Allowance for Credit Loss, Current, Total						10,000				0
Consulting Services [Member]
Revenue from Contract with Customer, Including Assessed Tax						500		0
Deferred Revenue, Total						0				0
GPC Member \| License [Member]
Revenue from Contract with Customer, Including Assessed Tax			$ 10,000			10,000		2,100
Revenue Recognition, Milestone Method, Revenue to be Recognized			63,000
Revenue Recognition, Milestone Method, Additional Revenue to be Recognized			420,000
Regulatory Milestone Revenue to Be Earned Following FDA Acceptance			$ 5,000						$ 10,000			$ 5,000
Contract with Customer, Liability, Revenue Recognized						10,000	$ 5,000
Deferred Revenue, Total						0				0
GPC Member \| License [Member] \| Subsequent Event [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 10,000	$ 10,000
Revenue Recognition, Milestone Method, Revenue to be Recognized		10,000
Revenue Recognition, Milestone Method, Additional Revenue to be Recognized		$ 590,000
Aquestive Therapeutics [Member] \| License [Member]
Royalty Revenue, Percent				10.00%
Royalty Expense						1,000
KVK [Member] \| License [Member]
License Agreement, Estimated Pre-launch Payments and Reimbursements					$ 3,400
License Agreement, Pre-launch Payment Reimbursement Within 10 Days of Initial Adoption Milestone					2,000
License Agreement, Additional Payments Upon Achievement of Sales Milestone					$ 53,000
KVK [Member] \| License [Member] \| Minimum [Member]
License Agreement, Percentage of Net Profits					30.00%
KVK [Member] \| License [Member] \| Maximum [Member]
License Agreement, Percentage of Net Profits					50.00%
Corium, Inc [Member]
Accounts Receivable, after Allowance for Credit Loss, Current, Total						600				2,100
Corium, Inc [Member] \| Consulting Services [Member]
Revenue from Contract with Customer, Including Assessed Tax						1,600		$ 0
Deferred Revenue, Total						$ 200				100
Consulting Agreement, Maximum Amount to be Received											$ 15,600
Contract with Customer, Asset, after Allowance for Credit Loss, Total											13,600
Consulting Agreement, Conditional Milestone Achievement to be Received											$ 2,000
Percentage of Consulting Services and Out-of-pocket Third-party Research and Development Costs Recognized						45.00%
Accounts Receivable, after Allowance for Credit Loss, Current, Total						$ 600				$ 400

Note C - Debt Obligations (Details Textual) - USD ($)									1 Months Ended	3 Months Ended		12 Months Ended	15 Months Ended
Note C - Debt Obligations (Details Textual) - USD ($)	Feb. 08, 2021	Jan. 12, 2021	Jan. 01, 2021	Apr. 23, 2020	Jan. 13, 2020	Dec. 18, 2019	Feb. 09, 2016	Jun. 02, 2014	Jun. 30, 2018	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Mar. 31, 2021	Jan. 26, 2021	Dec. 31, 2019	Sep. 30, 2019	Sep. 02, 2019	Jun. 30, 2016
Convertible Notes Payable, Total										$ 0		$ 68,200,000	$ 0
Interest Paid, Excluding Capitalized Interest, Operating Activities										199,000	$ 52,000
Debt Instrument, Convertible, Minimum Conversion Price (in dollars per share)															$ 9.328
Loans Payable, Current, Total										683,000		390,000	683,000
Loans Payable, Noncurrent, Total										98,000		$ 391,000	98,000
Conversion from Deerfield Convertible Note to Common Stock [Member]
Debt Conversion, Original Debt, Amount									$ 3,333,333
Debt Conversion, Accrued Interest									$ 168,288
Debt Conversion, Converted Instrument, Shares Issued (in shares)									37,410
Conversion of December 2019 Notes into Common Stock [Member]
Debt Conversion, Original Debt, Amount													$ 17,100,000
Debt Conversion, Converted Instrument, Shares Issued (in shares)													1,777,437
December 2020 Exchange Agreement [Member]
Debt Conversion, Original Debt, Amount		$ 31,500,000
Debt Conversion, Converted Instrument, Shares Issued (in shares)		31,476.98412
Debt Conversion, Converted Instrument, Warrants or Options Issued (in shares)		3,632,019
Deerfield Convertible Notes [Member]
Debt Instrument, Convertible, Conversion Price (in dollars per share)															93.60
2021 Notes [Member]
Debt Instrument, Convertible, Conversion Price (in dollars per share)							$ 17.11					$ 273.76
Debt Conversion, Original Debt, Amount							$ 1,000					$ 1,000
Debt Conversion, Converted Instrument, Shares Issued (in shares)							58.4454					3.6528
Debt Instrument, Interest Rate, Stated Percentage							5.50%
Debt Instrument, Face Amount							$ 86,300,000
Proceeds from Debt, Net of Issuance Costs							82,800,000
Repayments of Long-term Debt, Total							18,600,000
Debt Instrument, Sinking Fund Payment							$ 0
Debt Instrument Repurchase Price Equal to Percentage of Principal Amount							100.00%
Debt Instrument, Cancellation of Debt, Amount					$ 3,037,354	$ 71,418,011
Interest Paid, Excluding Capitalized Interest, Operating Activities					$ 37,354	$ 745,011
Debt Instrument, Percentage of Accrued Interest Paid						50.00%
The 2019 Notes [Member]
Debt Instrument, Convertible, Conversion Price (in dollars per share)					$ 5.85	$ 17.11						$ 93.60			273.76
Debt Instrument, Interest Rate, Stated Percentage						6.75%
Debt Instrument, Face Amount						$ 71,418,011
Debt Instrument, Percentage of Accrued Interest Paid					50.00%
Debt Instrument, Convertible, Minimum Conversion Price (in dollars per share)					$ 0.583										$ 0.38
Debt Instrument, Convertible, Conversion Restriction Percentage of Common Stock						4.985%
Beneficial Ownership, Cap Limit, Percentage						19.985%
Debt Instrument, Convertible, Floor Price (in dollars per share)												$ 9.328
January 2020 Note [Member]
Debt Instrument, Face Amount					$ 3,037,354
The December 2020 Exchange Agreement [Member]
Repayments of Debt			$ 30,300,000
The December 2019 and January 2020 Notes [Member]
Long-term Debt, Gross												$ 60,800,000
Deerfield Facility Agreement [Member]
Long-term Debt, Gross												7,500,000
The Facility Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage		6.75%
Repayments of Long-term Debt, Total		$ 30,300,000
Long-term Debt, Total		$ 7,600,000										$ 69,400,000
Paycheck Protection Program CARES Act [Member]
Proceeds from Issuance of Long-term Debt, Total				$ 800,000
Loans Payable, Current, Total										700,000			$ 700,000
Loans Payable, Noncurrent, Total										100,000			100,000
Deerfield Facility Agreement [Member]
Line of Credit Facility, Maximum Borrowing Capacity								$ 60,000,000
Line of Credit Facility, Interest Rate at Period End								9.75%										6.75%
Debt Instrument, Interest Rate, Stated Percentage																6.75%	9.75%
Convertible Notes Payable, Current										$ 6,980,824			$ 6,980,824
Debt Covenant, Debt Financing Restriction								$ 750,000
Repayments of Long-term Debt, Total	$ 8,000,000
Debt Instrument, Convertible, Minimum Conversion Price (in dollars per share)						$ 0.60
Conversion of Stock, Maximum Shares Issued (in shares)						28,439,015
Debt Instrument, Convertible, Optional Conversion Feature, Exchange Price (in dollars per share)												$ 9.60
Debt Instrument, Convertible Optional Conversion Feature Shares Issuable Upon Exchange (in shares)												1,777,437
Deerfield Facility Agreement [Member] \| Deerfield Warrant [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)								$ 0.78
Deerfield Facility Agreement [Member] \| Deerfield Warrant [Member] \| IPO [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)								1,923,077
Deerfield Facility Agreement [Member] \| Series D Redeemable Convertible Preferred Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)								14,423,076
Deerfield Facility Agreement [Member] \| Term Notes [Member]
Proceeds from Secured Notes Payable								$ 15,000,000
Deerfield Facility Agreement [Member] \| Deerfield Convertible Notes [Member]
Proceeds from Secured Notes Payable								$ 10,000,000
Debt Instrument, Convertible, Conversion Price (in dollars per share)								$ 5.85				$ 93.60
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)												120,192
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)								$ 5.85				$ 93.60		$ 46.25

Note E - Preferred Stock and Warrants (Details Textual) - USD ($)		3 Months Ended
	Jan. 12, 2021	Mar. 31, 2021	Dec. 31, 2020
Preferred Stock, Shares Authorized (in shares)		10,000,000	10,000,000
Conversion of Series B-2 Preferred Stock into Common Stock [Member]
Conversion of Stock, Shares Issued (in shares)		4,842,699
The Facility Notes [Member]
Repayments of Long-term Debt, Total	$ 30,300,000
December 2020 Exchange Agreement [Member]
Debt Conversion, Converted Instrument, Shares Issued (in shares)	31,476.98412
Debt Conversion, Converted Instrument, Warrants or Options Issued (in shares)	3,632,019
Debt Conversion, Original Debt, Amount	$ 31,500,000
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)		9,578	9,578
Preferred Stock, Shares Issued, Total (in shares)		9,577	9,577
Preferred Stock, Shares Outstanding, Ending Balance (in shares)		0	0
Series B-1 Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)		1,576	1,576
Preferred Stock, Shares Issued, Total (in shares)		1,576	1,576
Preferred Stock, Shares Outstanding, Ending Balance (in shares)		0	0
Series B-2 Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)		31,480	27,000
Preferred Stock, Shares Issued, Total (in shares)		31,476.98412	0
Preferred Stock, Shares Outstanding, Ending Balance (in shares)		0	0
Preferred Stock Convertible Shares Issuable (in shares)	4,842,690
Preferred Stock, Convertible, Conversion Price (in dollars per share)	$ 6.4999

Note F - Common Stock and Warrants (Details Textual) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended
	Jan. 26, 2021	Jan. 12, 2021	Oct. 25, 2018	Jun. 02, 2014	Mar. 31, 2021	Mar. 31, 2020	Feb. 03, 2021	Jan. 08, 2021	Dec. 31, 2020
Common Stock, Shares Authorized (in shares)					250,000,000				250,000,000
Common Stock, Shares, Issued, Total (in shares)					28,480,156				4,537,321
Stock Issued During Period, Shares, Warrant Exercises (in shares)					11,951,038
Proceeds from Warrant Exercises					$ 25,593
Preferred Stock Dividends and Other Adjustments, Total					37,444
Other Noncurrent Assets [Member]
Contract with Customer, Asset, after Allowance for Credit Loss, Total					$ 400				$ 400
Deerfield Warrant [Member]
Class of Warrant or Right Issued (in shares)				14,423,076
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 46.25								$ 93.60
Deerfield Warrant [Member] \| Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)				1,923,077					120,192
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 46.25			$ 5.85					$ 93.60
Warrant Issued to KVK [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			500,000						31,250
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 2.30						$ 36.80
Class of Warrant or Right, Additional Shares Exercisable for Each Milestones (in shares)			125,000
Pre-funded Warrants [Member] \| Roth Capital Partners, LLC [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		926,844						926,844
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 0.0001
Stock Issued During Period, Shares, Warrant Exercises (in shares)					926,841
Proceeds from Warrant Exercises					$ 72,000
Public Offering Warrants [Member] \| Roth Capital Partners, LLC [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		12,078,361						7,692,307
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 6.50						$ 6.50
Stock Issued During Period, Shares, Warrant Exercises (in shares)					2,726,918
Proceeds from Warrant Exercises					$ 14,900
Warrants and Rights Outstanding, Term (Year)		5 years
Maximum Percent of Common Stock Ownership Allowed Per Holder Upon Warrant Exercise		4.99%
Class of Warrants or Right, Exercised During Period (in shares)					3,157,895
Underwriter Warrants [Member] \| Roth Capital Partners, LLC [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		806,932					18,702	754,035
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 8.125
Class of Warrants or Right, Exercised During Period (in shares)					0
Over Allotment Options, Percentage of Common Stock Outstanding for Warrants		5.00%
Existing Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	6,620,358
Proceeds from Warrant Exercises	$ 44,000
Placement Agent Fee, Percentage	6.00%
Inducement Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	7,944,430
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 6.36
Stock Issued During Period, Shares, Warrant Exercises (in shares)					1,676,921
Proceeds from Warrant Exercises					$ 10,700
Warrants and Rights Outstanding, Term (Year)	5 years
Maximum Percent of Common Stock Ownership Allowed Per Holder Upon Warrant Exercise	4.99%
Class of Warrants or Right, Exercised During Period (in shares)					1,676,921
Warrants Issued Upon Exchange, Percentage of Shares Issued Upon Exercise	120.00%
Class of Warrant, Purchase Price Per Warrant (in dollars per share)	$ 0.125
Maximum Percent of Common Stock Ownership Allowed Per Holder After Warrant Exercise Upon Holders Selection	9.99%
Preferred Stock Dividends and Other Adjustments, Total					$ 37,400

Note K - Leases - Supplement Balance Sheet Information Related to Lease (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Lease liabilities, finance leases	$ 133	$ 194
Operating lease right-of-use assets	1,294	1,350
Total operating lease right-of-use assets	1,294	1,350
Current portion of operating lease liabilities	336	327
Operating lease liabilities, less current portion	1,500	1,587
Total operating lease liabilities	$ 1,836	$ 1,914
Finance leases (years) (Year)	1 year	1 year
Operating leases (years) (Year)	5 years	5 years
Finance leases	8.80%	8.50%
Operating leases	7.50%	7.50%
Property and Equipment, At Cost [Member]
Property and equipment, at cost	$ 1,031	$ 1,031
Accumulated Depreciation and Amortization [Member]
less: accumulated depreciation and amortization	(555)	(523)
Property and Equipment, Net [Member]
Property and equipment, net	476	508
Other Current Liabilities [Member]
Other current liabilities	119	172
Other Noncurrent Liabilities [Member]
Other long-term liabilities	14	22
Operating Lease Right-of-Use Assets [Member]
Operating lease right-of-use assets	1,294	1,350
Total operating lease right-of-use assets	1,294	1,350
Current Portion of Operating Lease Liabilities [Member]
Current portion of operating lease liabilities	336	327
Operating Lease Liabilities, Less Current Portion [Member]
Operating lease liabilities, less current portion	$ 1,500	$ 1,587

Note K - Leases - Maturities of lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
2021 (excluding the three months ended March 31, 2021), finance leases	$ 116
2021 (excluding the three months ended March 31, 2021), operating leases	346
2022, finance leases	18
2022, operating leases	463
2023, finance leases	6
2023, operating leases	472
2024, finance leases
2024, operating leases	484
2025, finance leases
2025, operating leases	390
Thereafter, finance leases
Thereafter, operating leases	30
Total lease payments, finance leases	140
Total lease payments, operating leases	2,185
Less: future interest expense, finance leases	(7)
Less: future interest expense, operating leases	(349)
Lease liabilities, finance leases	133	$ 194
Lease liabilities, operating leases	$ 1,836	$ 1,914

Note G - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Jan. 01, 2021	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Expense		$ 675	$ 1,029
Performance Shares [Member]
Share-based Payment Arrangement, Expense		$ 400	$ 0
2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)		589,659
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Reserved for Issuance, Incremental Percentage of Capital Stock Outstanding		4.00%
Increase in Common Stock Reserved for Issuance (in shares)	181,492
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total (in shares)		0	3,806
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)		0	0

Note G - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stock based compensation expense	$ 675	$ 1,029
Research and Development Expense [Member]
Stock based compensation expense	296	246
General and Administrative Expense [Member]
Stock based compensation expense	379	363
Severance Expense [Member]
Stock based compensation expense		$ 420

Note H - Fair Value of Financial Instruments (Details Textual)	3 Months Ended
	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Deerfield Warrant Liability [Member]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 240,000	$ 230,000
Liabilities, Fair Value Disclosure, Increase from Ten Percent Increase in Enterprise Value	61,000
Liabilities, Fair Value Disclosure, Estimated Amount of Weighted-average Probability of Liquidity Event	35,300,000
Liabilities, Fair Value Disclosure, Estimated Amount of Weighted-average Probability of Fundamental Change	$ 1,100,000,000
Deerfield Warrant Liability [Member] \| Weighted Average Probability of Liquidity Event [Member]
Derivative Liability, Measurement Input	0.14
Deerfield Warrant Liability [Member] \| Weighted Average Probability of Fundamental Change [Member]
Derivative Liability, Measurement Input	0.3
Embedded Put Option [Member]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 52,000	25,000
Liabilities, Fair Value Disclosure, Increase from Ten Percent Increase in Enterprise Value	1,000
Fair Value, Inputs, Level 3 [Member] \| The 2019 Notes [Member]
Long-term Debt, Fair Value	0	56,200,000
Fair Value, Inputs, Level 3 [Member] \| January 2020 Note [Member]
Long-term Debt, Fair Value	0	3,100,000
Fair Value, Inputs, Level 3 [Member] \| Deerfield Facility Agreement [Member] \| Deerfield Convertible Notes [Member]
Long-term Debt, Fair Value	$ 0	$ 7,300,000

Note H - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Recurring [Member]
Financial liabilities measured at fair value on recurring basis		$ 304,000
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis		49,000
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis		255,000
Deerfield Warrant Liability [Member]
Financial liabilities measured at fair value on recurring basis	$ 240,000	230,000
Deerfield Warrant Liability [Member] \| Fair Value, Recurring [Member]
Financial liabilities measured at fair value on recurring basis	240,000	230,000
Deerfield Warrant Liability [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Deerfield Warrant Liability [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis
Deerfield Warrant Liability [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis	240,000	230,000
Embedded Put Option [Member]
Financial liabilities measured at fair value on recurring basis	52,000	25,000
Embedded Put Option [Member] \| Fair Value, Recurring [Member]
Financial liabilities measured at fair value on recurring basis	52,000	25,000
Embedded Put Option [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Put Option [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Put Option [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis	52,000	25,000
KVK Warrant Liability [Member] \| Fair Value, Recurring [Member]
Financial liabilities measured at fair value on recurring basis	42,000	49,000
KVK Warrant Liability [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
KVK Warrant Liability [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis	42,000	49,000
KVK Warrant Liability [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Deerfield Note Put Option [Member] \| Fair Value, Recurring [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Deerfield Note Put Option [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Deerfield Note Put Option [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Deerfield Note Put Option [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis
Optional Exchange Principal Amount Conversion Feature [Member[ \| Fair Value, Recurring [Member]
Financial liabilities measured at fair value on recurring basis	334,000
Optional Exchange Principal Amount Conversion Feature [Member[ \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Optional Exchange Principal Amount Conversion Feature [Member[ \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis	42,000
Optional Exchange Principal Amount Conversion Feature [Member[ \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis	$ 292,000

Note J - Severance Expense (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Share-based Payment Arrangement, Expense	$ 675	$ 1,029
Severance Expense [Member]
Share-based Payment Arrangement, Expense		$ 420
Employee Severance [Member] \| Accounts Payable and Accrued Liabilities [Member]
Accrued Severance Expense	0		$ 100
Employee Severance [Member] \| Severance Expense [Member]
Severance Charges	400
Share-based Payment Arrangement, Expense	$ 400

Note F - Common Stock and Warrants - Reserved Authorized Shares of Common Stock for Future Issuance (Details) - shares	Mar. 31, 2021	Dec. 31, 2020
Common shares reserved for future issuance (in shares)	10,128,879	1,296,515
Warrant [Member]
Common shares reserved for future issuance (in shares)	9,544,693	151,442
Share-based Payment Arrangement [Member]
Common shares reserved for future issuance (in shares)	354,869	355,785
Possible Future Issuances Under Equity Incentive Plans [Member]
Common shares reserved for future issuance (in shares)	229,317	47,825
January 2020 Note [Member]
Common shares reserved for future issuance (in shares)		34,615
2021 Notes [Member]
Common shares reserved for future issuance (in shares)		625,747
Convertible Notes Payable [Member]
Common shares reserved for future issuance (in shares)		81,101

Note F - Common Stock and Warrants - Common Stock Activity (Details)	3 Months Ended
	Mar. 31, 2021 shares
Balance (in shares)	4,537,321
Common stock issued as a result of warrant exercises (in shares)	11,951,038
Common stock issued as compensation to third-parties (in shares)	9,600
Balance (in shares)	28,480,156
Conversion of Series B-2 Preferred Stock into Common Stock [Member]
Common stock issued as a result of Series B-2 Preferred Stock conversions (in shares)	4,842,699
Underwritten Public Offering [Member]
Common stock issued as a result of the Public Offering (in shares)	7,139,498

Note K - Leases (Details Textual)	3 Months Ended
Note K - Leases (Details Textual)	Mar. 31, 2021
Lessee, Lease, Option to Extend, Maximum Term (Year)	5 years
Lessee, Lease, Option to Terminate, Term (Year)	1 year
Minimum [Member]
Lessee, Lease, Remaining Term of Contract (Year)	1 year
Maximum [Member]
Lessee, Lease, Remaining Term of Contract (Year)	5 years

Note K - Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Amortization of right-of-use assets	$ 32	$ 31
Interest on lease liabilities	4	8
Total finance lease cost	36	39
Operating lease cost	91	89
Short-term lease cost	50	57
Variable lease cost	13	14
Less: sublease income		(13)
Total lease costs	$ 190	$ 186

Note K - Leases - Supplement Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating cash flows from finance leases	$ 4	$ 8
Financing cash flows from finance leases	61	58
Operating cash flows from operating leases	114	109
Operating cash flows from short-term leases	50	57
Operating cash flows from variable lease costs	13	14
Finance leases
Operating leases		$ 20