Aradigm (ARDMQ) 10-Q 14 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 08, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	ARDM
Entity Registrant Name	ARADIGM CORP
Entity Central Index Key	1,013,238
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		15,201,222

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 2,099	$ 7,095
Receivables	80	200
Other assets	622	389
Total current assets	2,801	7,684
Property and equipment, net	223	289
Other assets	92	92
Total assets	3,116	8,065
Current liabilities:
Accounts payable	506	903
Accrued clinical and cost of other studies	81	274
Accrued compensation	599	1,643
Deferred revenue - related party, current	579	1,900
Deferred revenue - other	59	183
Other accrued liabilities	475	563
Total current liabilities	2,299	5,466
Deferred rent	50	32
Deferred revenue - related party, non-current		90
Debt - non-current, net of discount	999
Debt - related party, non-current, net of discount	2,926
Convertible debt - non-current, net of discount	2,575	2,382
Convertible debt - related party, non-current, net of discount	14,369	12,626
Total liabilities	23,218	20,596
Commitments and contingencies
Shareholders' deficit:
Preferred stock, 5,000,000 shares authorized, none outstanding
Common stock, no par value; authorized shares: 50,045,765 at June 30, 2018; 35,045,765 at December 31, 2017; issued and outstanding shares: 15,201,222 at June 30, 2018; 15,170,200 at December 31, 2017	443,672	442,639
Accumulated deficit	(463,774)	(455,170)
Total shareholders' deficit	(20,102)	(12,531)
Total liabilities and shareholders' deficit	$ 3,116	$ 8,065

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value
Common stock, shares authorized	50,045,765	35,045,765
Common stock, shares issued	15,201,222	15,170,200
Common stock, shares outstanding	15,201,222	15,170,200

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Contract revenue - related party	$ 96	$ 7,472	$ 1,411	$ 9,095
Contract revenue	95	196	124	235
Grant revenue	65	7	194	38
Total revenue	256	7,675	1,729	9,368
Operating expenses:
Research and development	1,602	3,794	5,170	6,568
General and administrative	1,388	1,911	3,102	3,589
Total operating expenses	2,990	5,705	8,272	10,157
Income (loss) from operations	(2,734)	1,970	(6,543)	(789)
Interest income	5	22	20	50
Interest expense	(1,038)	(959)	(2,042)	(1,912)
Other income (expense)	(35)	2	(39)	8
Net income (loss) and comprehensive income (loss)	$ (3,802)	$ 1,035	$ (8,604)	$ (2,643)
Basic and diluted net income (loss) per common share	$ (0.25)	$ 0.07	$ (0.57)	$ (0.18)
Shares used in computing basic net income (loss) per common share	15,169	14,847	15,109	14,823
Shares used in computing diluted net income (loss) per common share	15,169	14,848	15,109	14,823

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (8,604)	$ (2,643)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	67	55
Stock-based compensation expense	956	1,163
Amortization of convertible debt discount	934	865
Loss on extinguishment of convertible debt	24
Financing costs, debt restructuring	77
Changes in operating assets and liabilities:
Receivables	120	(173)
Prepaid and other current assets	(233)	416
Accounts payable	(508)	347
Accrued compensation	(1,044)	258
Deferred revenue - related party	(1,411)	(8,976)
Deferred revenue - other	(124)	(79)
Other accrued liabilities	763	(2,829)
Deferred Rent	18
Net cash used in operating activities	(8,965)	(11,596)
Cash flows from investing activities:
Transfer to/from restricted cash		1,006
Capital expenditures	(1)	(29)
Net cash provided by (used in) investing activities	(1)	977
Cash flows from financing activities:
Proceeds from issuance of note payable	4,025
Proceeds from issuance of common stock	77	56
Payment of convertible debt	(50)
Payments for financing costs	(82)
Net cash provided by financing activities	3,970	56
Net decrease in cash and cash equivalents	(4,996)	(10,563)
Cash and cash equivalents at beginning of period	7,095	22,591
Cash and cash equivalents at end of period	2,099	12,028
Supplemental disclosure of non-cash activities:
Accrued interest capitalization	$ 1,044
Cumulative effect of adoption of new accounting standards		6,046
Stock issued in payment of officer bonus		$ 444

Organization, Basis of Presenta

Organization, Basis of Presentation and Liquidity	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Basis of Presentation and Liquidity	1. Organization, Basis of Presentation and Liquidity Organization Aradigm Corporation (the “Company,” “we,” “our,” or “us”) is a California corporation, incorporated in 1991, focused on the development and commercialization of drugs delivered by inhalation for the treatment and prevention of severe respiratory diseases. The Company’s principal activities to date have included conducting research and development and developing collaborations. Management does not anticipate receiving revenues from the sale of any of its products during the upcoming year. The Company operates as a single operating segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K 10-K”). The consolidated balance sheet at December 31, 2017 included above has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and notes thereto included in the 2017 Annual Report on Form 10-K. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Liquidity and Financial Condition As reflected in the accompanying condensed consolidated financial statements, the Company has incurred significant recurring operating losses and negative cash flows from its operations and, as of June 30, 2018, had an accumulated deficit of $464 million, a total shareholders’ deficit of $20.1 million and working capital of $0.5 million. These factors among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management expects operating losses to continue for the foreseeable future including the year ending December 31, 2018. As of June 30, 2018, the Company’s current assets of $2.8 million are more than current liabilities of $2.3 million by approximately $0.5 million. In February 2018, the Board of Directors (the “Board”) implemented temporary measures intended to preserve the Company’s cash resources until additional sources of capital can be secured, including the reduction of cash compensation and severance benefits for officers and the reduction of cash compensation for members of the Board. On April 13, 2018, the Company entered into a note purchase agreement whereby entities affiliated with Grifols and First Eagle, the Company’s two largest shareholders beneficially owning collectively approximately 75% of the Company’s common stock as of June 30, 2018 and owning all of the Convertible Notes and Warrants described in Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q,

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, accruals for operating expenses, assumptions for valuing options and warrants, and income taxes. Actual results could differ from these estimates. Net Loss Per Common Share Basic net loss per common share is computed using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted shares of common stock subject to repurchase. Diluted net income/(loss) per common share is based on the weighted average number of common and common equivalent shares, such as stock options and unvested restricted stock shares outstanding during the period. Potentially dilutive securities were included for the three months ended June 30, 2017 but were excluded in the other periods presented, because such inclusion of shares would have been anti-dilutive. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. 505-50. pre-adoption For additional information about our significant accounting policies, see Note 1 to the consolidated financial statements included in the 2017 Annual Report on Form 10-K

Cash and Cash Equivalents

Cash and Cash Equivalents	6 Months Ended
	Jun. 30, 2018
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	3. Cash and Cash Equivalents At June 30, 2018 and December 31, 2017, the Company’s cash and cash equivalents approximated their fair values. The Company currently invests its cash and cash equivalents in money market funds.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements The Company follows ASC 820, Fair Value Measurements The Company’s cash and cash equivalents at June 30, 2018 consist of cash and money market funds. Money market funds are valued using quoted market prices.

Other Accrued Liabilities

Other Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Other Accrued Liabilities	5. Other Accrued Liabilities At June 30, 2018, other accrued liabilities consisted of accrued expenses for interest of $406,000, expenses for services of $54,000 and payroll withholding liabilities of $15,000. The liability for accrued interest of $406,000 is related to the Convertible Notes as outlined in Note 6 and represents the interest on the Convertible Notes that is accrued but unpaid as of June 30, 2018. At December 31, 2017, other accrued liabilities consisted of accrued expenses for interest of $345,000, expenses for services of $132,000 and payroll withholding liabilities of $86,000.

Debt and Warrants

Debt and Warrants	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Debt and Warrants	6. Debt and Warrants As of June 30, 2018, the Company’s debt consists of the following: Principal Unamortized Debt Balance (in thousands, except conversion rate and Debt $ 1,055 $ (56 ) $ 999 Debt — related party 2,979 (53 ) 2,926 Convertible debt 3,135 (560 ) 2,575 Convertible debt — related party 20,850 (6,481 ) 14,369 Total $ 28,019 $ (7,150 ) $ 20,869 For the three and six months ended June 30, 2018, the Company’s interest expense consists of the following: Three Months June 30, Six Months ended June 30, 2018 2017 2018 2017 (in thousands) Coupon interest expense $ 587 $ 518 $ 1,105 $ 1,040 Noncash interest expense Amortization of debt discount 385 383 805 750 Amortization of transaction costs 65 58 129 114 Miscellaneous interest expense 1 — 3 8 $ 1,038 $ 959 $ 2,042 $ 1,912 2018 Promissory Notes On April 13, 2018, the Company entered into a promissory note purchase agreement whereby entities affiliated with Grifols and First Eagle, the Company’s two largest shareholders beneficially owning, collectively, approximately 75% of the Company’s common stock as of June 30, 2018 and owning all of the Convertible Notes and Warrants described below, agreed to purchase up to approximately $7 million aggregate principal amount of 9% senior unsecured promissory notes due 2021 (the “Promissory Notes”). The Promissory Notes bear interest at a rate of 9% per annum payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2018 in the case of Promissory Notes issued on April 13, 2018 and on November 1, 2018 and in the case of Promissory Notes issued thereafter, unless earlier redeemed or cancelled in accordance with the terms of the Promissory Notes. Unless the Company elects otherwise, interest will be capitalized on the applicable interest payment date by adding such accrued interest to the principal balance of such Promissory Notes, at which time such interest will be deemed to have been paid. The Promissory Notes are redeemable by the Company for cash at any time for a redemption price of 100% plus accrued and unpaid interest and are subject to acceleration upon certain events of default. The Company completed the first closing under the note purchase agreement on April 13, 2018, at which time the Company issued and sold approximately $2 million aggregate principal amount of Promissory Notes. The Company received two of the five additional installment payments from a related party under subsequent closings as of June 30, 2018, for aggregate proceeds totaling approximately $4 million during the quarter ended June 30, 2018. Subject to the satisfaction or waiver of the applicable closing conditions set forth in the note purchase agreement at each subsequent closing, the Company anticipates the sale of the remaining $3 million in Promissory Notes to occur in 3 subsequent monthly closings, the last of which is expected to occur on September 13, 2018. Financing costs of $116,252 incurred in connection with the issuance of the Promissory Notes were recorded as a debt discount and are being amortized using the effective interest rate method and recognized as non-cash interest 2016 Convertible Notes and Warrants On April 21, 2016, the Company entered into a securities purchase agreement to conduct a private offering, or the Convertible Note Financing, consisting of $23 million in aggregate principal amount of 9% senior convertible notes due 2021 convertible into shares of common stock, or the Convertible Notes, and 263,436 warrants to purchase shares of the Company’s common stock or the Warrants. The Convertible Notes bear interest at a rate of 9% per year, payable semiannually in arrears on November 1 and May 1 of each year commencing on November 1, 2016. The Convertible Notes mature on May 1, 2021, unless earlier redeemed or converted. The Convertible Notes are governed by the terms of the Indenture, between the Company and U.S. Bank National Association, as trustee, dated as of April 25, 2016 or the Indenture. The Convertible Notes are senior unsecured and unsubordinated obligations; rank equal in right of payment to the Company’s existing and future unsecured indebtedness that is not subordinated and are effectively subordinated in right of payment to the Company’s existing and future secured indebtedness. On or after December 1, 2017, the Company may redeem for cash all or a portion of the Convertible Notes if the last reported sale price of the Company’s common stock is at any time equal to or greater than 200% of the conversion price then in effect for at least twenty trading days immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Indenture provides for customary events of default which may result in the acceleration of the maturity of the Notes, including, but not limited to, cross acceleration to certain other indebtedness of the Company and its subsidiaries. In the case of an event of default arising from specified events of bankruptcy or insolvency or reorganization, all outstanding Convertible Notes will become due and payable immediately without further action or notice. If any other event of default under the Indenture occurs or is continuing, the trustee or holders of at least 25% in the aggregate principal amount of the then outstanding Convertible Notes may declare all the Convertible Notes to be due and payable immediately. The Warrants have a five-year term and are exercisable at $5.21 per share of common stock. The exercise price is subject to adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events or upon any distributions of assets, including cash, stock or other property to the Company’s shareholders. On April 18, 2018, the Company entered into a Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, or the Supplemental Indenture, which amended the Indenture by, among other things, (i) the addition of provisions permitting the Company to make payments of interest on the Convertible Notes by increasing the outstanding principal amount of the Convertible Notes in the amount of the accrued interest being so paid and (ii) the removal of the Convertible Note holders’ option to require the Company to repurchase the Notes upon the occurrence of certain events, any of which constituted a “Fundamental Change” as defined in the Indenture. The Company considered the modification of the Convertible Notes to be a troubled debt restructuring under the guidance of ASC 470-60 Troubled Debt Restructurings by Debtors On April 25, 2016, the initial closing of the Convertible Notes took place under which the Company raised $20 million from a total of two investors and issued 4,319 Warrants to one investor. Of the $20 million, $19.9 million was financed by Grifols, a related party to the Company, as described in Note 8 below. The fair value of the warrants issued in the first closing was $11,000 and was recorded as a component of equity and discount to the debt host. There were 3,319,820 common shares underlying the conversion feature that was bifurcated as a derivative liability due to the Conversion Share Cap. The effective interest rate of the liability component was equal to 20.62% for the six months ended June 30, 2018. On July 14, 2016, the second and final closing of the Convertible Notes took place under which the Company raised $3 million from a total of two investors and issued 259,117 Warrants. The fair value of the warrants issued in the second closing was $662,000 and was recorded as a component of equity and discount to the debt host. The effective interest rate of the liability component was equal to 15.15% for the six months ended June 30, 2018. Because of the modification of the Convertible Notes, one investor elected not to participate in the refinancing and the Company prepaid a Convertible Note with a principal balance of $50,000. The extinguishment resulted in the Company recording a loss on extinguishment of $24,932 during the three and six months ended June 30, 2018 which is included in Other income (expense) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The financing costs of $2.4 million incurred in connection with the issuance of the Convertible Notes were allocated to the derivative liability, warrants and Convertible Note components based on their relative fair values. Financing costs of $1.4 million allocated to the Convertible Note host are being amortized using the effective interest rate method and recognized as non-cash interest As of June 30, 2018, the unamortized debt discount will be amortized over a remaining period of approximately 2.84 years. The if-converted For more information on the Company’s accounting for Convertible Notes and Warrants, see Note 7 to the consolidated financial statements included in the Company’s 2017 Annual Report on Form 10-K.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	7. Revenue Recognition For additional detail on the Company’s accounting policy regarding revenue recognition, see “Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.” The following table presents changes in the Company’s contract assets and liabilities for the six months ended June 30, 2018. Balance at Additions Deductions Balance at (in thousands) Contract Assets $ 67 $ 193 $ (196 ) $ 64 Contract Liabilities: Deferred Revenue $ 2,173 $ — $ (1,535 ) $ 638 During the three months ended June 30, 2018 and 2017, the Company recognized the following revenues (in thousands). Three Months June 30, 2018 Three Months June 30, 2017 (in thousands) (in thousands) Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 158 $ 2,933 New activities in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods — contract revenue 33 4,542 Performance obligations satisfied from new activities in the current period — contract revenue — 193 Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods — grant revenue (9 ) — Performance obligations satisfied from new activities in the current period — grant revenue 74 7 Total revenue $ 256 $ 7,675 During the six months ended June 30, 2018 and 2017, the Company recognized the following revenues (in thousands). Six Months June 30, 2018 Six Months June 30, 2017 (in thousands) (in thousands) Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 1,495 $ 4,594 New activities in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods — contract revenue 40 4,540 Performance obligations satisfied from new activities in the current period — contract revenue — 196 Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods — grant revenue (9 ) — Performance obligations satisfied from new activities in the current period — grant revenue 203 38 Total revenue $ 1,729 $ 9,368

Collaboration Agreement

Collaboration Agreement	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration Agreement	8. Collaboration Agreement Grifols License and Collaboration Agreement See Note 9 to the audited consolidated financial statements included in the 2017 Annual Report on Form 10-K The Company’s performance obligations under the Grifols Collaboration include those related to the worldwide license to commercialize products developed from the collaboration which was satisfied in 2013, development services for Phase 3 clinical trials that were completed as of December 31, 2016, regulatory submission services for the first indication that were complete as of September 30, 2017, regulatory approval services in the US for the first indication that were complete as of March 31, 2018, and regulatory approval services in the EU for the first indication which are in progress and forecasted to be complete by Q2 2019. In addition, the Company identified that Grifols has an option that will create manufacturing obligations for the Company upon exercise by the customer. Further, these customer options for manufacturing services were evaluated and did not include a material right. The Company recognizes revenue from license rights when the customer can use and benefit from the license rights. The Company recognizes revenue from its services performance obligations over time using a cost-to-cost input Under the License Agreement, the Company is eligible to receive up to $25.0 million in payments upon the achievement of regulatory filing and approval milestones. As of June 30, 2018, the Company has achieved two of the six milestones and has received $10.0 million in payments. Milestone payments related to regulatory submission and approval services are considered variable consideration and excluded from the transaction price for the period ended June 30, 2018 due to the constraint on variable consideration. The Company has deferred $579 thousand of the transaction price in the Grifols’ arrangement that is allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2018. These amounts are expected to be recognized over time as services are performed through Q2 2019.

Stock-Based Compensation and St

Stock-Based Compensation and Stock Options and Awards	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation and Stock Options and Awards	9. Stock-Based Compensation and Stock Options and Awards The following table shows the stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) for the three and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Costs and expenses: Research and development $ 164 $ 327 $ 486 $ 633 General and administrative 245 293 470 530 Total stock-based compensation expense $ 409 $ 620 $ 956 $ 1,163 There was no capitalized stock-based employee compensation cost for the three and six months ended June 30, 2018 and 2017. Since the Company did not record a tax provision during the quarters ended June 30, 2018 and 2017, there was no recognized tax benefit associated with stock-based compensation expense. During the three months ended March 31, 2018, the Company granted 730,000 performance-based options to the employees of the Company. These options were granted at-the-money, In March 2016, and June and December of 2017, and June of 2018, the Company granted to the Officers certain stock option bonus awards, that vested based upon meeting certain specified company-wide performance goals. These options and stock awards were granted at-the-money, Stock Option Plans: 2005 Equity Incentive Plan (the “2005 Plan”), and 2015 Equity Incentive Plan (the “2015 Plan”) On March 13, 2015 the Board adopted and, on May 14, 2015 the Company’s shareholders approved, the 2015 Plan. The 2015 Plan replaces the Company’s 2005 Plan, which expired in March 2015. The 2015 Plan is intended to promote the Company’s long-term success and increase shareholder value by attracting, motivating, and retaining non-employee Stock Option Activity The following is a summary of activity under the 2005 Plan and the 2015 Plan for the six months ended June 30, 2018: Shares Available for Balance at January 1, 2018 1,645,124 Options granted (1,580,469 ) Options cancelled 1,704,788 Awards cancelled 463,500 Balance at June 30, 2018 2,232,943 Stock Options Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Aggregate Outstanding at January 1, 2018 3,727,581 $ 4.72 Options granted 1,580,469 $ 1.25 Options exercised (3,500 ) $ 1.06 Options cancelled (1,704,788 ) $ 4.86 Outstanding at June 30, 2018 3,599,762 $ 3.13 8.39 $ 321,017 Exercisable at June 30, 2018 1,804,105 $ 4.05 7.11 $ 90,293 During the six months ended June 30, 2018, 3,500 stock options were exercised. The total amount of unrecognized compensation cost related to non-vested A summary of the activity of the Company’s unvested restricted stock and performance bonus stock award activities for the six months ending June 30, 2018 is presented below representing the maximum number of shares that could be earned or vested under the 2005 Plan and the 2015 Plan: Restricted Stock Awards Number Shares Weighted Grant Date Fair Balance at January 1, 2018 613,538 $ 1.95 Restricted shares cancelled (463,500 ) $ 1.51 Restricted share awards vested (134,425 ) $ 3.09 Balance at June 30, 2018 15,613 $ 5.07 For restricted stock awards the Company recognizes compensation expense over the vesting period for the fair value of the stock award on the measurement date. As of June 30, 2018, there was approximately zero of total unrecognized compensation costs, net of forfeitures, related to non-vested

Net Loss Per Common Share

Net Loss Per Common Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per Common Share	10. Net Loss Per Common Share The following data was used in computing net income/(loss) per share and the effect on the weighted-average number of shares of potentially dilutive common stock. Three Months Ended Six Months Ended June 30 June 30 2018 2017 2018 2017 (In thousands, except per share amounts) Numerator: Net income/(loss) $ (3,802 ) $ 1,035 $ (8,604 ) $ (2,643 ) Denominator: Weighted average number of common shares used in basic net income/(loss) per share 15,169 14,847 15,109 14,823 Effect of dilutive securities (using treasury stock method): Common stock options and restricted stock awards and units — 1 — — Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share 15,169 14,848 15,109 14,823 Basic net income/(loss) per share $ (0.25 ) $ 0.07 $ (0.57 ) $ (0.18 ) Diluted net income/(loss) per share $ (0.25 ) $ 0.07 $ (0.57 ) $ (0.18 ) The Company computes basic net loss per common share using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of shares of common stock subject to repurchase. For the three months ended June 30, 2017, there were no potentially dilutive stock options or common shares underlying warrants because the exercise prices are greater than or equal to the average market price of the common shares during the period. For the three months ended June 30, 2017, the Company excluded 4,414,588 shares underlying the Convertible Notes from the calculation of diluted net income/(loss) per share as their effect would be anti-dilutive due to the inclusion of the interest expense adjustment to net income under the as-converted The effects of including the incremental shares associated with options, warrants and unvested restricted stock are anti-dilutive and not included in the diluted weighted average number of shares of common stock outstanding for the six months ending June 30, 2018 and 2017 and the three months ending June 30, 2018. The Company excluded the following securities from the calculation of diluted net loss per common share for the six months ended June 30, 2018 and 2017, as their effect would be anti-dilutive (in thousands): Six months ended June 30, 2018 2017 Common shares underlying convertible notes 4,415 4,415 Outstanding stock options 3,600 2,790 Common shares underlying warrants 263 263 Unvested restricted stock 16 261 Unvested restricted stock units 10 10

Going Concern

Going Concern	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	11. Going Concern As reflected in the accompanying condensed consolidated financial statements, the Company has incurred significant recurring operating losses and negative cash flows from its operations and, as of June 30, 2018, had an accumulated deficit of $464 million, a total shareholders’ deficit of $20.1 million and working capital of $0.5 million. These factors among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management expects operating losses to continue for the foreseeable future including the year ending December 31, 2018. As of June 30, 2018, the Company’s current assets of $2.8 million are more than current liabilities of $2.3 million by approximately $0.5 million. In February 2018, the Board implemented temporary measures intended to preserve the Company’s cash resources until additional sources of capital can be secured, including the reduction of cash compensation and severance benefits for officers and the reduction of cash compensation for members of the Board. On April 13, 2018, the Company entered into a note purchase agreement whereby entities affiliated with Grifols and First Eagle, the Company’s two largest shareholders beneficially owning collectively approximately 75% of the Company’s common stock as of June 30, 2018 and owning all of the Convertible Notes and Warrants described in Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, Since cash and cash equivalents are insufficient to fund the Company’s operations for the ensuing twelve months from the filing of this report, there is substantial doubt about the Company’s ability to continue to operate as a going concern. While recoverability of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, the condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies Lease On April 1, 2017, the Company entered into an amendment of the current lease for a building containing offices, laboratory, and manufacturing facilities, through March 31, 2023. The lease calls for annual minimum rental payments that increase at the rate of 3.5% per annum throughout the lease term. In accordance with GAAP, the Company recognizes rent expense on a straight-line basis. The Company recorded deferred rent for the difference between the amounts paid and recorded as an expense. At June 30, 2018 and December 31, 2017, the Company had $50,000 and $32,000 in deferred rent. If the lease is not terminated early in accordance with its terms, the Company’s future minimum rental payments required under the operating lease as of June 30, 2018 are as follows: For the year ended June 30, (in thousands) 2019 $ 499 2020 516 2021 535 2022 553 2023 140 Total $ 2,243 For the six months ended June 30, 2018, base rental expense was approximately $257,000. Legal Matters On May 1, 2017, the Company filed a post grant review, or a PGR, petition in the United States Patent and Trademark Office Patent Trial and Appeal Board, or PTAB, challenging the validity of all 26 claims of U.S. Patent No. 9,402,845 or the ‘845 Patent, assigned to Insmed Incorporated, or Insmed. The ‘845 Patent issued on August 2, 2016, and is entitled “Lipid-based compositions of antiinfectives for treating pulmonary infections and methods of use thereof.” PGR is a proceeding that became available in September 2012 in accordance with the America Invents Act. In a PGR, a petitioner may request that PTAB reconsider the validity of issued patent claims. Any patent claim PTAB determines to be unpatentable is stricken from the challenged patent. In August 2017, Insmed filed a Preliminary Response. In November 2017, PTAB denied institution of our post-grant review of the ‘845 Patent. We are currently assessing the United States Patent and Trademark Office’s (“PTO”) decision. On January 11, 2018, a putative class action lawsuit, Kevin Kheder v. Aradigm Corporation, et al., 3:18-cv-00261,

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events After the end of the quarter, the Company received an additional $2 million in aggregate from the fourth and fifth closings and subject to the satisfaction or waiver of the applicable closing conditions set forth in the note purchase agreement, the Company anticipates the sale of the final Promissory Note for approximately $1 million to occur on September 13, 2018.

Organization, Basis of Presen19

Organization, Basis of Presentation and Liquidity (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Aradigm Corporation (the “Company,” “we,” “our,” or “us”) is a California corporation, incorporated in 1991, focused on the development and commercialization of drugs delivered by inhalation for the treatment and prevention of severe respiratory diseases. The Company’s principal activities to date have included conducting research and development and developing collaborations. Management does not anticipate receiving revenues from the sale of any of its products during the upcoming year. The Company operates as a single operating segment
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K 10-K”). The consolidated balance sheet at December 31, 2017 included above has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and notes thereto included in the 2017 Annual Report on Form 10-K. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.
Liquidity and Financial Condition	Liquidity and Financial Condition As reflected in the accompanying condensed consolidated financial statements, the Company has incurred significant recurring operating losses and negative cash flows from its operations and, as of June 30, 2018, had an accumulated deficit of $464 million, a total shareholders’ deficit of $20.1 million and working capital of $0.5 million. These factors among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management expects operating losses to continue for the foreseeable future including the year ending December 31, 2018. As of June 30, 2018, the Company’s current assets of $2.8 million are more than current liabilities of $2.3 million by approximately $0.5 million. In February 2018, the Board of Directors (the “Board”) implemented temporary measures intended to preserve the Company’s cash resources until additional sources of capital can be secured, including the reduction of cash compensation and severance benefits for officers and the reduction of cash compensation for members of the Board. On April 13, 2018, the Company entered into a note purchase agreement whereby entities affiliated with Grifols and First Eagle, the Company’s two largest shareholders beneficially owning collectively approximately 75% of the Company’s common stock as of June 30, 2018 and owning all of the Convertible Notes and Warrants described in Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q,
Use of Estimates	Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, accruals for operating expenses, assumptions for valuing options and warrants, and income taxes. Actual results could differ from these estimates.
Net Loss Per Common Share	Net Loss Per Common Share Basic net loss per common share is computed using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted shares of common stock subject to repurchase. Diluted net income/(loss) per common share is based on the weighted average number of common and common equivalent shares, such as stock options and unvested restricted stock shares outstanding during the period. Potentially dilutive securities were included for the three months ended June 30, 2017 but were excluded in the other periods presented, because such inclusion of shares would have been anti-dilutive.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. 505-50. pre-adoption For additional information about our significant accounting policies, see Note 1 to the consolidated financial statements included in the 2017 Annual Report on Form 10-K

Debt and Warrants (Tables)

Debt and Warrants (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Summary of Debt	As of June 30, 2018, the Company’s debt consists of the following: Principal Unamortized Debt Balance (in thousands, except conversion rate and Debt $ 1,055 $ (56 ) $ 999 Debt — related party 2,979 (53 ) 2,926 Convertible debt 3,135 (560 ) 2,575 Convertible debt — related party 20,850 (6,481 ) 14,369 Total $ 28,019 $ (7,150 ) $ 20,869
Summary of Interest Expense	For the three and six months ended June 30, 2018, the Company’s interest expense consists of the following: Three Months June 30, Six Months ended June 30, 2018 2017 2018 2017 (in thousands) Coupon interest expense $ 587 $ 518 $ 1,105 $ 1,040 Noncash interest expense Amortization of debt discount 385 383 805 750 Amortization of transaction costs 65 58 129 114 Miscellaneous interest expense 1 — 3 8 $ 1,038 $ 959 $ 2,042 $ 1,912

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Summary of Changes in Contract Assets and Liabilities	The following table presents changes in the Company’s contract assets and liabilities for the six months ended June 30, 2018. Balance at Additions Deductions Balance at (in thousands) Contract Assets $ 67 $ 193 $ (196 ) $ 64 Contract Liabilities: Deferred Revenue $ 2,173 $ — $ (1,535 ) $ 638
Summary of Revenue Recognized	During the three months ended June 30, 2018 and 2017, the Company recognized the following revenues (in thousands). Three Months June 30, 2018 Three Months June 30, 2017 (in thousands) (in thousands) Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 158 $ 2,933 New activities in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods — contract revenue 33 4,542 Performance obligations satisfied from new activities in the current period — contract revenue — 193 Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods — grant revenue (9 ) — Performance obligations satisfied from new activities in the current period — grant revenue 74 7 Total revenue $ 256 $ 7,675 During the six months ended June 30, 2018 and 2017, the Company recognized the following revenues (in thousands). Six Months June 30, 2018 Six Months June 30, 2017 (in thousands) (in thousands) Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 1,495 $ 4,594 New activities in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods — contract revenue 40 4,540 Performance obligations satisfied from new activities in the current period — contract revenue — 196 Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods — grant revenue (9 ) — Performance obligations satisfied from new activities in the current period — grant revenue 203 38 Total revenue $ 1,729 $ 9,368

Stock-Based Compensation and 22

Stock-Based Compensation and Stock Options and Awards (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-Based Compensation Expense	The following table shows the stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) for the three and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Costs and expenses: Research and development $ 164 $ 327 $ 486 $ 633 General and administrative 245 293 470 530 Total stock-based compensation expense $ 409 $ 620 $ 956 $ 1,163
Schedule of Activity Under Stock Option Plan	The following is a summary of activity under the 2005 Plan and the 2015 Plan for the six months ended June 30, 2018: Shares Available for Balance at January 1, 2018 1,645,124 Options granted (1,580,469 ) Options cancelled 1,704,788 Awards cancelled 463,500 Balance at June 30, 2018 2,232,943 Stock Options Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Aggregate Outstanding at January 1, 2018 3,727,581 $ 4.72 Options granted 1,580,469 $ 1.25 Options exercised (3,500 ) $ 1.06 Options cancelled (1,704,788 ) $ 4.86 Outstanding at June 30, 2018 3,599,762 $ 3.13 8.39 $ 321,017 Exercisable at June 30, 2018 1,804,105 $ 4.05 7.11 $ 90,293
Schedule of Unvested Restricted Stock Award Activities	A summary of the activity of the Company’s unvested restricted stock and performance bonus stock award activities for the six months ending June 30, 2018 is presented below representing the maximum number of shares that could be earned or vested under the 2005 Plan and the 2015 Plan: Restricted Stock Awards Number Shares Weighted Grant Date Fair Balance at January 1, 2018 613,538 $ 1.95 Restricted shares cancelled (463,500 ) $ 1.51 Restricted share awards vested (134,425 ) $ 3.09 Balance at June 30, 2018 15,613 $ 5.07

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Computing Net Income/(Loss) Per Share and Effect on Weighted-Average Number of Shares of Potentially Dilutive Common Stock	The following data was used in computing net income/(loss) per share and the effect on the weighted-average number of shares of potentially dilutive common stock. Three Months Ended Six Months Ended June 30 June 30 2018 2017 2018 2017 (In thousands, except per share amounts) Numerator: Net income/(loss) $ (3,802 ) $ 1,035 $ (8,604 ) $ (2,643 ) Denominator: Weighted average number of common shares used in basic net income/(loss) per share 15,169 14,847 15,109 14,823 Effect of dilutive securities (using treasury stock method): Common stock options and restricted stock awards and units — 1 — — Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share 15,169 14,848 15,109 14,823 Basic net income/(loss) per share $ (0.25 ) $ 0.07 $ (0.57 ) $ (0.18 ) Diluted net income/(loss) per share $ (0.25 ) $ 0.07 $ (0.57 ) $ (0.18 )
Schedule of Securities Excluded from Calculation of Diluted Net Loss per Common Share	The Company excluded the following securities from the calculation of diluted net loss per common share for the six months ended June 30, 2018 and 2017, as their effect would be anti-dilutive (in thousands): Six months ended June 30, 2018 2017 Common shares underlying convertible notes 4,415 4,415 Outstanding stock options 3,600 2,790 Common shares underlying warrants 263 263 Unvested restricted stock 16 261 Unvested restricted stock units 10 10

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Rental Payments Required under the Operating Lease	If the lease is not terminated early in accordance with its terms, the Company’s future minimum rental payments required under the operating lease as of June 30, 2018 are as follows: For the year ended June 30, (in thousands) 2019 $ 499 2020 516 2021 535 2022 553 2023 140 Total $ 2,243

Organization, Basis of Presen25

Organization, Basis of Presentation and Liquidity - Additional Information (Detail)	Jul. 01, 2018USD ($)	Apr. 13, 2018USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)Segment	Dec. 31, 2017USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Income Tax Expense Benefit [Line Items]
Number of operating segment | Segment				1
Accumulated deficit			$ (463,774,000)	$ (463,774,000)	$ (455,170,000)
Working capital deficit			500,000	500,000
Total shareholders' deficit			(20,102,000)	(20,102,000)	(12,531,000)
Cash position			$ 2,099,000	$ 2,099,000	7,095,000	$ 12,028,000	$ 22,591,000
Ownership percentage			75.00%	75.00%
Current assets			$ 2,801,000	$ 2,801,000	7,684,000
Current liabilities			$ 2,299,000	2,299,000	$ 5,466,000
Current assets are less than current liabilities				$ 500,000
Grifols and First Eagle [Member]
Income Tax Expense Benefit [Line Items]
Ownership percentage		75.00%	75.00%	75.00%
Bridge Notes [Member] | Grifols and First Eagle [Member]
Income Tax Expense Benefit [Line Items]
Aggregate principal amount		$ 7,000,000
Promissory Note [Member]
Income Tax Expense Benefit [Line Items]
Proceed from promissory notes issued		2,000,000	$ 2,000,000	$ 3,000,000
Remaining amount of notes		$ 1,000,000	1,000,000	1,000,000
Cash			$ 2,100,000	$ 2,100,000
Promissory Note [Member] | Subsequent Event [Member]
Income Tax Expense Benefit [Line Items]
Proceed from promissory notes issued	$ 2,000,000

Other Accrued Liabilities - Add

Other Accrued Liabilities - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Accrued Liabilities [Line Items]
Accrued payroll withholding liabilities	$ 599	$ 1,643
Other Accrued Liabilities [Member]
Other Accrued Liabilities [Line Items]
Accrued expenses for services	54	132
Accrued payroll withholding liabilities	15	86
Convertible Debt [Member] | Other Accrued Liabilities [Member]
Other Accrued Liabilities [Line Items]
Accrued expenses for interest	$ 406	$ 345

Debt and Warrants - Summary of

Debt and Warrants - Summary of Debt (Detail) $ in Thousands	Jun. 30, 2018USD ($)
Debt Instrument [Line Items]
Principal	$ 28,019
Unamortized Debt Discount	(7,150)
Balance	20,869
Convertible Debt [Member]
Debt Instrument [Line Items]
Principal	3,135
Unamortized Debt Discount	(560)
Balance	2,575
Convertible Debt [Member] | Affiliated Entity [Member]
Debt Instrument [Line Items]
Principal	20,850
Unamortized Debt Discount	(6,481)
Balance	14,369
Debt [Member]
Debt Instrument [Line Items]
Principal	1,055
Unamortized Debt Discount	(56)
Balance	999
Debt [Member] | Affiliated Entity [Member]
Debt Instrument [Line Items]
Principal	2,979
Unamortized Debt Discount	(53)
Balance	$ 2,926

Debt and Warrants - Summary o28

Debt and Warrants - Summary of Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest Expense [Abstract]
Coupon interest expense	$ 587	$ 518	$ 1,105	$ 1,040
Noncash interest expense
Amortization of debt discount	385	383	805	750
Amortization of transaction costs	65	58	129	114
Miscellaneous interest expense	1		3	8
Interest expense	$ 1,038	$ 959	$ 2,042	$ 1,912

Debt and Warrants - Additional

Debt and Warrants - Additional Information (Detail)	Jun. 30, 2018USD ($)Shareholder$ / shares	Apr. 13, 2018USD ($)	Dec. 01, 2017$ / shares	Jul. 14, 2016USD ($)Investorshares	Apr. 25, 2016USD ($)Investorshares	Apr. 21, 2016USD ($)shares	Jun. 30, 2018USD ($)$ / shares	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)Installments$ / sharesshares	Jun. 30, 2017USD ($)
Debt Instrument [Line Items]
Number of shareholders holding major voting interest | Shareholder	2
Percentage of voting interests held by the two shareholders	75.00%						75.00%		75.00%
Amortization of financing costs and discounts									$ 934,000	$ 865,000
Number of trading days for effectiveness preceding issuance of redemption notice			20 days
Redeemable portion of notes equal to percentage of principal amount of notes			100.00%
Loss on extinguishment of debt									(24,000)
Amortization of financing cost							$ 65,000	$ 58,000	129,000	$ 114,000
Financing costs, debt restructuring									(77,000)
Minimum [Member]
Debt Instrument [Line Items]
Redeemable portion of notes equal to or greater than percentage of sale price of common stock			200.00%
Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Warrants term			5 years
Warrants, exercise price | $ / shares			$ 5.21
Senior Unsecured Promissory Notes Due 2021 [Member]
Debt Instrument [Line Items]
Proceed from promissory notes issued		$ 2,000,000					4,000,000
Proceeds from sale of promissory notes expected									$ 3,000,000
Number of installments for monthly closing | Installments									3
Anticipated maturity date									Sep. 13, 2018
Amortization of financing costs and discounts									$ 116,252
Unamortized debt discount remaining amortization period									2 years 10 months 2 days
Accrued interest payable	$ 45,869						45,869		$ 45,869
Initial Closing [Member]
Debt Instrument [Line Items]
Amount funded by number of investors | Investor					2
Fair value of warrants issued					$ 11,000,000
Initial Closing [Member] | Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Amount funded by number of investors | Investor					1
Class of warrants or rights, issued | shares					4,319
Second and Final Closing [Member]
Debt Instrument [Line Items]
Amount funded by number of investors | Investor				2
Second and Final Closing [Member] | Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Class of warrants or rights, issued | shares				259,117
Fair value of the warrants issued				$ 662,000
Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount	50,000						50,000		$ 50,000
Unamortized debt discount remaining amortization period									2 years 10 months 2 days
Accrued interest payable	359,775						359,775		$ 359,775
Loss on extinguishment of debt	(24,932)								(24,932)
Financing cost	$ 2,400,000						$ 2,400,000		2,400,000
Amortization of financing cost									1,400,000
Financing costs, debt restructuring									$ 76,612
Effective conversion rate | shares									191.9386
Debt conversion, initial conversion ratio, denominator									$ 1,000
Conversion price per share of common stock | $ / shares	$ 5.21						$ 5.21		$ 5.21
Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Percentage of principal amount of outstanding debt held by trustee or holders, in which they may declare debt to be due and payable immediately in event of default			25.00%
Convertible Debt [Member] | Initial Closing [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Proceeds from issuance of convertible debt					$ 20,000,000
Number of common shares convertible to derivative liability due to Conversion Share Cap | shares					3,319,820
Effective interest rate on liability component									20.62%
Convertible Debt [Member] | Initial Closing [Member] | Senior Convertible Notes Due 2021 [Member] | Grifols [Member]
Debt Instrument [Line Items]
Proceeds from related party convertible debt					$ 19,900,000
Convertible Debt [Member] | Second and Final Closing [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Proceeds from issuance of convertible debt				$ 3,000,000
Effective interest rate on liability component									15.15%
Private Placement [Member] | Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Number of shares into which the class of warrant may be converted | shares						263,436
Private Placement [Member] | Senior Unsecured Promissory Notes Due 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount		$ 7,000,000
Maturity date		Dec. 31, 2021
Notes bear interest rate		9.00%
Frequency of periodic payment of interest									Semiannually
Repayment terms									The Promissory Notes bear interest at a rate of 9% per annum payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2018 in the case of Promissory Notes issued on April 13, 2018 and on November 1, 2018 and in the case of Promissory Notes issued thereafter, unless earlier redeemed or cancelled in accordance with the terms of the Promissory Notes.
Redeemable portion of notes equal to percentage of principal amount of notes		100.00%
Private Placement [Member] | Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount						$ 23,000,000
Maturity date						May 1, 2021
Notes bear interest rate						9.00%
Frequency of periodic payment of interest									Payable semiannually in arrears on November 1 and May 1 of each year commencing on November 1, 2016.

Revenue Recognition - Summary o

Revenue Recognition - Summary of Changes in Contract Assets and Liabilities (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Contract Assets, beginning balance	$ 67
Contract assets, additions	193
Contract assets, deductions	(196)
Contract Assets, ending balance	64
Contract liabilities: deferred revenue, beginning balance	2,173
Contract liabilities: deferred revenue, additions	0
Contract liabilities: deferred revenue, deductions	(1,535)
Contract liabilities: deferred revenue, ending balance	$ 638

Revenue Recognition - Summary31

Revenue Recognition - Summary of Revenue Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue recognized in the period from:
Performance obligations satisfied	$ 158	$ 2,933	$ 1,495	$ 4,594
New activities in the period:
Total revenue	256	7,675	1,729	9,368
Contract Revenue [Member]
New activities in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	33	4,542	40	4,540
Performance obligations satisfied from new activities in the current period		193		196
Grant Revenue [Member]
New activities in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	(9)		(9)
Performance obligations satisfied from new activities in the current period	$ 74	$ 7	$ 203	$ 38

Collaboration Agreement - Grifo

Collaboration Agreement - Grifols License and Collaboration Agreement - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone payments received	$ 10,000,000
Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Payments receivable upon the achievement of regulatory filing and approval milestones	$ 25,000,000
Grifols [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Minority interst percentage by other	48.00%
Unsatisfied performance obligations	$ 579,000

Stock-Based Compensation and 33

Stock-Based Compensation and Stock Options and Awards - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Costs and Expenses
Total stock-based compensation expense	$ 409	$ 620	$ 956	$ 1,163
Research and Development [Member]
Costs and Expenses
Total stock-based compensation expense	164	327	486	633
General and Administrative [Member]
Costs and Expenses
Total stock-based compensation expense	$ 245	$ 293	$ 470	$ 530

Stock-Based Compensation and 34

Stock-Based Compensation and Stock Options and Awards - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized stock-based employee compensation cost		$ 0		$ 0	$ 0	$ 0
Tax benefit associated with stock-based compensation expense		0		0
Compensation expense		409,000		$ 620,000	$ 956,000	$ 1,163,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based stock options, granted					1,580,469
Performance-based stock options, cancelled					1,704,788
Stock options exercised during the period					3,500
Unrecognized compensation expense related to unvested stock options and stock purchases		1,636,000			$ 1,636,000
Weighted average period over which unrecognized compensation costs expected to be recognized					1 year 5 months 23 days
Unrecognized compensation expense		111,000			$ 111,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 0			0
Performance-Based Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based stock options, granted			730,000
Compensation expense					$ 187,000
Performance-based stock options, vested					162,000
Vesting period					10 years
Performance-based stock options, cancelled						0
Performance-Based Options [Member] | Officers and Vice President [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 53,000
Vesting period					10 years
Performance-based stock options, vested			20,000
Performance-based stock options, cancelled					1,500,000
2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan expiration date					2015-03
Two Thousand And Fifteen Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increasing in shares of common stock authorized for issuance	2,500,000

Stock-Based Compensation and 35

Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Shares Available for Future Grant (Detail) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2018shares
Shares Available for Future Grant
Balance at January 1, 2018	1,645,124
Options granted	(1,580,469)
Options cancelled	1,704,788
Awards cancelled	463,500
Balance at June 30, 2018	2,232,943

Stock-Based Compensation and 36

Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Options Outstanding (Detail) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Number of Shares
Outstanding at January 1, 2018 | shares	3,727,581
Options granted | shares	1,580,469
Options exercised | shares	(3,500)
Options cancelled | shares	(1,704,788)
Outstanding at June 30, 2018 | shares	3,599,762
Ending exercisable | shares	1,804,105
Weighted Average Exercise Price
Outstanding at January 1, 2018 | $ / shares	$ 4.72
Options granted | $ / shares	1.25
Options exercised | $ / shares	1.06
Options cancelled | $ / shares	4.86
Outstanding at June 30, 2018 | $ / shares	3.13
Ending exercisable | $ / shares	$ 4.05
Weighted Average Remaining Contractual Term
Outstanding at June 30, 2018	8 years 4 months 20 days
Ending exercisable	7 years 1 month 9 days
Aggregate Intrinsic Value
Outstanding at June 30, 2018 | $	$ 321,017
Ending exercisable | $	$ 90,293

Stock-Based Compensation and 37

Stock-Based Compensation and Stock Options and Awards - Schedule of Unvested Restricted Stock Award Activities (Detail) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Number of Shares
Balance at January 1, 2018 | shares	613,538
Restricted shares cancelled | shares	(463,500)
Restricted share awards vested | shares	(134,425)
Balance at June 30, 2018 | shares	15,613
Weighted Average Grant Date Fair Value
Balance at January 1, 2018 | $ / shares	$ 1.95
Weighted Average Grant Date Fair Value, canceled | $ / shares	1.51
Weighted Average Grant Date Fair Value, vested | $ / shares	3.09
Balance at June 30, 2018 | $ / shares	$ 5.07

Net Loss Per Common Share - Sch

Net Loss Per Common Share - Schedule of Computing Net Income/(Loss) Per Share and Effect on Weighted-Average Number of Shares of Potentially Dilutive Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income/(loss)	$ (3,802)	$ 1,035	$ (8,604)	$ (2,643)
Denominator:
Weighted average number of common shares used in basic net income/(loss) per share	15,169	14,847	15,109	14,823
Effect of dilutive securities (using treasury stock method):
Common stock options and restricted stock awards and units		1
Weighted average number of common shares and dilutive potential common shares used in diluted net income/(loss) per share	15,169	14,848	15,109	14,823
Basic net income/(loss) per share	$ (0.25)	$ 0.07	$ (0.57)	$ (0.18)
Diluted net income/(loss) per share	$ (0.25)	$ 0.07	$ (0.57)	$ (0.18)

Net Loss Per Common Share - Add

Net Loss Per Common Share - Additional Information (Detail) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Warrants Liability [Member]
Earnings Per Share [Line Items]
Shares excluded from calculation of diluted net income/ (loss) per share	0
Common Shares Underlying Convertible Notes [Member]
Earnings Per Share [Line Items]
Shares excluded from calculation of diluted net income/ (loss) per share	4,414,588	4,415,000	4,415,000

Net Loss Per Common Share - S40

Net Loss Per Common Share - Schedule of Securities Excluded from Calculation of Diluted Net Loss per Common Share (Detail) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Common Shares Underlying Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	4,414,588	4,415,000	4,415,000
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding		3,600,000	2,790,000
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding		16,000	261,000
Unvested Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding		10,000	10,000
Common Shares Underlying Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding		263,000	263,000

Going Concern - Additional Info

Going Concern - Additional Information (Detail) - USD ($)	Jul. 01, 2018	Apr. 13, 2018	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Going Concern [Line Items]
Accumulated deficit			$ (463,774,000)	$ (463,774,000)	$ (455,170,000)
Cash position			2,099,000	2,099,000	7,095,000	$ 12,028,000	$ 22,591,000
Total shareholders' deficit			(20,102,000)	(20,102,000)	(12,531,000)
Working capital deficit			500,000	500,000
Current assets			2,801,000	2,801,000	7,684,000
Current liabilities			$ 2,299,000	2,299,000	$ 5,466,000
Current assets are less than current liabilities				$ 500,000
Ownership percentage			75.00%	75.00%
Grifols and First Eagle [Member]
Going Concern [Line Items]
Ownership percentage		75.00%	75.00%	75.00%
Bridge Notes [Member] | Grifols and First Eagle [Member]
Going Concern [Line Items]
Aggregate principal amount		$ 7,000,000
Promissory Note [Member]
Going Concern [Line Items]
Proceed from promissory notes issued		2,000,000	$ 2,000,000	$ 3,000,000
Remaining amount of notes		$ 1,000,000	$ 1,000,000	$ 1,000,000
Subsequent Event [Member] | Promissory Note [Member]
Going Concern [Line Items]
Proceed from promissory notes issued	$ 2,000,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 11, 2018	Jun. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Percentage increase in annual minimum rental payments		3.50%
Deferred rent		$ 50	$ 32
Base rental expenses		$ 257
Lawsuit filing date	Jan. 11, 2018
Putative class action lawsuit	On January 11, 2018 a putative class action lawsuit, Kevin Kheder v. Aradigm Corporation, et al., No. 3:18-cv-00261, was filed in the United States District Court for the Northern District of California against the Company and two of its former officers.

Commitments and Contingencies43

Commitments and Contingencies - Future Minimum Rental Payments Required under the Operating Lease (Detail) $ in Thousands	Jun. 30, 2018USD ($)
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract]
2,019	$ 499
2,020	516
2,021	535
2,022	553
2,023	140
Total	$ 2,243

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Promissory Note [Member] - USD ($) $ in Millions	Sep. 13, 2018	Jul. 01, 2018	Apr. 13, 2018	Jun. 30, 2018	Jun. 30, 2018
Subsequent Event [Line Items]
Proceed from promissory notes issued			$ 2	$ 2	$ 3
Scenario, Forecast [Member]
Subsequent Event [Line Items]
Proceeds from sale of promissory notes expected	$ 1
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceed from promissory notes issued		$ 2