Adynxx (ADYX) 10-Q 9 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 02, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	Alliqua BioMedical, Inc.
Entity Central Index Key	1,054,274
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	ALQA
Entity Common Stock, Shares Outstanding		45,975,994

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 2,350	$ 5,580
Accounts receivable, net	2,861	2,760
Inventory, net	2,631	2,702
Prepaid expenses and other current assets	451	735
Total current assets	8,293	11,777
Improvements and equipment, net	1,956	2,092
Intangible assets, net	27,290	28,498
Goodwill, net	11,959	11,959
Other assets	229	173
Total assets	49,727	54,499
Current Liabilities:
Accounts payable	2,311	2,612
Accrued expenses and other current liabilities	4,672	5,286
Contingent consideration, current	0	675
Senior secured term loan, net	11,745	11,541
Warrant liability	672	20
Total current liabilities	19,400	20,134
Contingent consideration, long-term	500	1,141
Deferred tax liability	752	749
Other long-term liabilities	338	385
Total liabilities	20,990	22,409
Commitments and Contingencies
Stockholders’ Equity
Preferred Stock, par value $0.001 per share, 1,000,000 shares authorized, no shares issued and outstanding	0	0
Common Stock, par value $0.001 per share, 95,000,000 shares authorized; 36,122,025 and 29,669,036 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	36	30
Additional paid-in capital	160,002	156,363
Accumulated deficit	(131,301)	(124,303)
Total stockholders' equity	28,737	32,090
Total liabilities and stockholders’ equity	$ 49,727	$ 54,499

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	95,000,000	95,000,000
Common stock, shares issued	36,122,025	29,669,036
Common stock, shares outstanding	36,122,025	29,669,036

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue, net of returns, allowances and discounts	$ 4,594	$ 3,957
Cost of revenues	1,660	1,590
Gross profit	2,934	2,367
Operating expenses
Selling, general and administrative	7,740	9,740
Royalties	185	217
Research and product development	111	199
Acquisition-related	635	0
Change in fair value of contingent consideration liability	35	362
Total operating expenses	8,706	10,518
Loss from operations	(5,772)	(8,151)
Other (expense) income
Interest expense	(573)	(619)
Interest income	2	8
Change in fair value of warrant liability	118	737
Warrant modification expense	(770)	0
Total other (expense) income	(1,223)	126
Loss from continuing operations before tax	(6,995)	(8,025)
Income tax expense	(3)	(3)
Loss from continuing operations	(6,998)	(8,028)
Discontinued operations:
Income from discontinued operations, net of tax of $0 for the three months ended March 31, 2017 and 2016	0	346
Net loss	$ (6,998)	$ (7,682)
Net loss per basic and diluted common share:
Loss from continuing operations	$ (0.23)	$ (0.29)
Income from discontinued operations	0	0.01
Income from discontinued operations
Net loss per basic and diluted common share	$ (0.23)	$ (0.28)
Weighted average shares used in computing basic and diluted net loss per common share	30,713,415	27,293,087

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating Activities
Net loss	$ (6,998)	$ (7,682)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,382	1,037
Amortization of deferred lease incentive	(11)	(8)
Deferred income tax expense	3	3
Provision for (recovery of) doubtful accounts	7	(80)
Reserve for note receivable	350	0
Provision for excess and slow moving inventory	23	0
Stock-based compensation expense	491	1,706
Deferred rent	2	0
Amortization of debt issuance and discount costs	204	198
Warrant modification expense	770	0
Change in fair value of warrant liability	(118)	(737)
Fair value adjustment of contingent consideration liability	35	362
Changes in operating assets and liabilities:
Accounts receivable	(108)	91
Inventory	48	(398)
Prepaid expenses and other assets	227	(129)
Accounts payable	(301)	(285)
Accrued expenses and other current liabilities	(652)	(224)
Net Cash Used in Operating Activities	(4,646)	(6,146)
Investing Activities
Purchase of improvements and equipment	(39)	(362)
Issuance of note	(350)	0
Net Cash Used in Investing Activities	(389)	(362)
Financing Activities
Contingent purchase price payments	(675)	(2,573)
Net proceeds from issuance of common stock	2,534	0
Payment of withholding taxes related to stock-based employee compensation	(54)	0
Net Cash Provided by (Used in) Financing Activities	1,805	(2,573)
Net Decrease in Cash and Cash Equivalents	(3,230)	(9,081)
Cash and Cash Equivalents - Beginning of period	5,580	26,080
Cash and Cash Equivalents - End of period	2,350	16,999
Supplemental Disclosure of Cash Flows Information
Interest	370	421
Non-cash investing and financing activities:
2015 Accrued bonus awarded in equity	0	474
Common stock issued for contingent purchase price payments	$ 675	$ 2,574

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Basis of Presentation [Text Block]	1. Description of Business and Basis of Presentation Alliqua BioMedical, Inc. (the “Company”) is a regenerative technologies company that commercializes differentiated regenerative medical products which assist the body in the repair of human tissue. Basis of Presentation The condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of March 31, 2017 and results of operations and cash flows for the three months ended March 31, 2017 and 2016. While management believes that the disclosures presented are adequate to make the information not misleading, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the Company’s latest year-end financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Annual Report”). The results of the Company’s operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for the full year. Principles of Consolidation The accompanying condensed consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiary, AquaMed Technologies, Inc. All significant inter-company transactions and accounts have been eliminated in consolidation. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current year presentation. Such reclassifications did not have a material effect on the Company’s financial condition or results of operations as previously reported. Discontinued Operations In order to add capital and to focus on future investments on commercializing its own regenerative technologies effective June 30, 2016, the Company entered into a purchase agreement with BSN medical, Inc. (“BSN”) whereby the Company agreed to sell to BSN all of the Company’s rights, including all distribution rights, exclusivity rights, intellectual property rights and marketing rights to the sorbion product line pursuant to its distribution agreement with Sorbion GmbH & Co KG. The results of operations for the three months ended March 31, 2016 reflect the Company’s continuing operations. March 31, 2016 Revenue, net of returns, allowances and discounts $ 686 Cost of revenues 187 Gross profit 499 Selling, general and administrative 153 Income from discontinued operations, net of tax $ 346 Non-cash amortization expense of $ 19,000 There were no assets and liabilities or operating results of discontinued operations as of or for the three months ended March 31, 2017. Significant Accounting Policies and Estimates The Company’s significant accounting policies are disclosed in Note 2 — Summary of Significant Accounting Policies Recent Accounting Principles In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition” and some cost guidance included in ASC Subtopic 605-35, “Revenue Recognition - Construction-Type and Production-Type Contracts.” The core principle of ASU 2014-09 is that revenue is recognized when the transfer of goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASU 2014-09 requires the disclosure of sufficient information to enable readers of the Company’s financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 also requires disclosure of information regarding significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 provides two methods of retrospective application. The first method would require the Company to apply ASU 2014-09 to each prior reporting period presented. The second method would require the Company to retrospectively apply ASU 2014-09 with the cumulative effect recognized at the date of initial application. ASU 2014-09 will be effective for the Company beginning in fiscal 2019 as a result of ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which was issued by the FASB in August 2015 and extended the original effective date by one year. The Company is currently evaluating the impact of adopting the available methodologies of ASU 2014-09 and 2015-14 upon its financial statements in future reporting periods. The Company has not yet selected a transition method. The Company is in the process of evaluating the new standard against its existing accounting policies, including the timing of revenue recognition, and its contracts with customers to determine the effect the guidance will have on its financial statements and what changes to systems and controls may be warranted. There have been four new ASUs issued amending certain aspects of ASU 2014-09, ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross Versus Net),” was issued in March 2016 to clarify certain aspects of the principal versus agent guidance in ASU 2014-09. In addition, ASU 2016-10, “Identifying Performance Obligations and Licensing,” issued in April 2016, amends other sections of ASU 2014-09 including clarifying guidance related to identifying performance obligations and licensing implementation. ASU 2016-12, “Revenue from Contracts with Customers - Narrow Scope Improvements and Practical Expedients” provides amendments and practical expedients to the guidance in ASU 2014-09 in the areas of assessing collectability, presentation of sales taxes received from customers, noncash consideration, contract modification and clarification of using the full retrospective approach to adopt ASU 2014-09. Finally, ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” was issued in December 2016, and provides elections regarding the disclosures required for remaining performance obligations in certain cases and also makes other technical corrections and improvements to the standard. With its evaluation of the impact of ASU 2014-09, the Company will also consider the impact on its financial statements related to the updated guidance provided by these four new ASUs.

Going Concern

Going Concern	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern [Text Block]	2. Going Concern The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of March 31, 2017, the Company had a cash balance of approximately $ 2.4 3.8 7.0 4.6 131.3 Note 7- Debt 22,250,000 24,600,000 27,200,000 39.2 Management is evaluating all options to raise sufficient funds to meet its outstanding debt obligations and to fund the Company’s working capital requirements. There can be no assurances, however, that management will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtained on terms satisfactory to the Company. There is no assurance that the Company will be successful in achieving profitable operations. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

Net Loss Per Common Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	3. Net Loss Per Common Share Basic loss per share data for each period presented is computed using the weighted-average number of shares of common stock outstanding during each such period. Diluted income (loss) per share data is computed using the weighted-average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of: (a) shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method; and (b) shares of non-vested restricted stock. As of March 31, 2017 2016 Stock options 7,073,282 7,198,456 Warrants 4,541,121 3,365,407 Non-vested restricted stock 826,668 816,287 Total 12,441,071 11,380,150

Termination of Merger Agreement

Termination of Merger Agreement	3 Months Ended
	Mar. 31, 2017
Disclosure Text Block Supplement [Abstract]
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	4. Termination of Merger Agreement On October 5, 2016, the Company entered into a merger agreement to acquire the business of Soluble Systems, LLC (“Soluble”) through a series of transactions. On February 27, 2017, the Company terminated this agreement, due to its inability to secure the requisite financing to meet the closing conditions of the merger agreement. In connection with the merger agreement to acquire the business of Soluble, the Company provided Soluble with bridge loans in the form of subordinated promissory notes totaling approximately $ 1.4 1.0 350,000 350,000 285,000 0

Inventory

Inventory	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	5. Inventory March 31, December 31, 2017 2016 Raw materials $ 148 $ 135 Work in process 139 173 Finished goods 2,367 2,394 Less: Inventory reserve for excess and slow moving inventory (23) - Total $ 2,631 $ 2,702

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	6. Accrued Expenses and Other Current Liabilities March 31, December 31, 2017 2016 Salaries, benefits and incentive compensation $ 2,534 $ 3,070 Milestone payment to licensor 1,000 1,000 Professional fees 564 692 Royalty fees 185 197 Deferred revenue 175 181 Other 214 146 Total accrued expenses and other current liabilities $ 4,672 $ 5,286

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt Instruments [Abstract]
Long-term Debt [Text Block]	7. Debt Senior Secured Term Loan Facility On May 29, 2015, the Company entered into a Credit Agreement and Guaranty (the “Credit Agreement”) with Perceptive Credit Opportunities Fund, L.P. (“Perceptive”). The Credit Agreement provided a senior secured term loan in a single borrowing to the Company in the principal amount of $ 15.5 10.75 In connection with the Credit Agreement, the Company incurred approximately $ 1.3 64,000 72,000 In connection with the entry into the Credit Agreement, a 750,000 0.001 5.5138 2.7 140,000 126,000 Fair Value Measurement As of March 31, 2017, the Company was in default of a covenant pertaining to trailing twelve-month revenue under the Credit Agreement as a result of the Company’s failure to achieve $ 22,250,000 24,600,000 27,200,000 13.8 In connection with the entry into the January 26, 2017 forbearance agreement, as amended on March 7, 2017, the Company also amended and restated the warrant issued to Perceptive in connection with the closing of the Credit Agreement on May 29, 2015. The amended and restated warrant is exercisable for 2,000,000 0.50 Fair Value Measurement March 31, December 31, 2017 2016 Long-term debt $ 13,752 $ 13,752 Unamortized debt issuance and discount costs (2,007) (2,211) Total $ 11,745 $ 11,541

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	8. Commitments and Contingencies Agreements for Human Placental Based Products Human Longevity, Inc. In November 2013, the Company entered into a License, Marketing and Development Agreement (the “License Agreement”) and Supply Agreement (the “Biovance Supply Agreement”) with Celgene Cellular Therapeutics (“CCT”), an affiliate of Celgene Corporation (“Celgene”). The agreements grant the Company an exclusive, royalty-bearing license in CCT’s intellectual property for certain placental based products, including ECM and Biovance ®, as well as provide the Company with the its requirements of Biovance for distribution. In January 2016, Human Longevity, Inc.’s (“HLI”), a genomics-based, technology-driven company, announced the purchase of LifebankUSA and other select assets from CCT. CCT assigned and HLI assumed the license and supply agreements the Company entered into with CCT, for certain placental based products. The Company is required to pay HLI annual license fees, designated amounts when certain milestone events occur and royalties on all sales of licensed products, with such amounts being variable and contingent on various factors. During the three months ended March 31, 2017 and 2016, the Company incurred royalties of approximately $ 185,000 67,000 185,000 The License Agreement with HLI is terminable on a product-by-product basis if the Company fails to meet certain minimum sales thresholds in the second year or any subsequent year of commercial sales of each licensed product. Each year of commercial sales are referred to in the License Agreement as “launch years” and the calendar period constituting each launch year for each licensed product is determined in accordance with the terms of the License Agreement. To maintain its license for Biovance, the Company must meet a minimum gross sales amount for Biovance in the second year and third year of commercial sales. If the Company fails to meet the minimum threshold in the second year of commercial sales of product, it would be able to cure such failure by making a cure payment specified in the License Agreement to HLI; provided, however, the Company does not have the option to make a cure payment, should it fail to meet the minimum threshold for such product in the third year of commercial sales and HLI may terminate the License Agreement with respect to such product. In September 2014, the Company entered into a First Amendment to the License Agreement (the “Amended License Agreement”), pursuant to which the Company received the right to market Biovance for podiatric and orthopedic applications. The Amended License Agreement also amends certain terms and the related schedule for milestone payments to CCT. In May 2015, the Company amended its exclusive licensing agreement with CCT, which granted the Company the right to develop and market CCT’s connective tissue matrix product, also known as Interfyl. In April 2016, the Company entered into a Supply Agreement with HLI, pursuant to which HLI supplies the Company with the Company’s entire requirement of Interfyl™ Human Connective Tissue Matrix. Additionally, the Company agreed to make certain future milestone payments upon the achievement of certain milestones. The Company initiated sales and marketing efforts of Interfyl™ Human Connective Tissue Matrix in September 2016 and achieved two milestones under the license agreement. The Company is required to pay HLI $ 500,000 500,000 1.0 Contingent Consideration Celleration, Inc. On May 29, 2015, the Company acquired all outstanding equity interest of Celleration, Inc. (“Celleration”), a medical device company focused on developing and commercializing the MIST Therapy® therapeutic ultrasound platform for the treatment of acute and chronic wounds. The Company agreed to pay contingent consideration of 3.5 times revenue from acquired MIST Therapy products in excess of certain revenue targets for the years ending December 31, 2015 and 2016, payable in equal amounts of cash and the Company’s common stock. This contingent consideration was payable in two installments in March 2016 and March 2017. The first installment consisted of $ 2.6 986,000 2.6 3.5 10.2 8.7 The second installment consisted of $ 675,000 675,000 3.5 10.5 10.2 Choice Therapeutics, Inc. On May 5, 2014, the Company acquired all outstanding equity interest of Choice Therapeutics, Inc., a provider of innovative wound care products using proprietary TheraBond 3D® Antimicrobial Barrier Systems. The Company agreed to pay contingent consideration based upon the company achieving specific performance metrics over the three twelve month periods, ended April 30, 2017. As of March 31, 2017, the Company estimates this contingent liability to be $ 500,000 Litigation, Claims and Assessments The Company is subject to periodic lawsuits, investigations and claims that arise in the ordinary course of business. The Company is not party to any material litigation as of March 31, 2017.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders Equity Note [Abstract]
Stockholders Equity Note Disclosure [Text Block]	9. Stockholders’ Equity Private Placement On February 27, 2017, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with certain accredited investors, pursuant to which the Company agreed to issue and sell to the investors in a private placement (the “Private Placement”) an aggregate of 5,540,000 0.50 2,770,000 196,000 40,000 Stock-Based Compensation During the three months ended March 31, 2017 and 2016, the Company recognized $ 491,000 1.7 11,000 82,000 480,000 1.6 1.9 1.2

Related Party

Related Party	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	10. Related Party In November 2015, the Company entered into a manufacturing supply agreement with a company where a Company director was then member of the Board of Directors. During the three months ended March 31, 2017 and 2016, the Company incurred costs of approximately $ 127,000 163,000 82,000 102,000

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	11. Fair Value Measurement Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date. It focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows: Level 1: Observable prices in active markets for identical assets and liabilities. Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Warrant Liabilities In connection with the entry into the January 26, 2017 forbearance agreement, as amended on March 7, 2017, the Company also amended and restated the warrant issued to Perceptive in connection with the closing of the Credit Agreement on May 29, 2015. The amended and restated warrant is exercisable for 2,000,000 0.50 Debt 789,000 19,000 65.33 78.98 1.49 1.95 3.34 5.00 0.00 770,000 On March 31, 2017, the Company recomputed the fair value of its warrant liability of outstanding warrants to purchase an aggregate of 2,290,338 672,000 79.19 94.41 0.91 1.93 0.61 4.83 0.00 118,000 5.51 0.50 66,287 290,338 Warrants that contain exercise reset provisions and contingent consideration liabilities are Level 3 derivative liabilities measured at fair value on a recurring basis using pricing models for which at least one significant assumption is unobservable as defined in ASC 820. The fair value of contingent consideration liabilities that are classified as Level 3 were estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820. The significant inputs in the Level 3 measurement not supported by market activity include the probability assessments of expected future cash flows related to the acquisitions, appropriately discounted considering the uncertainties associated with the obligation, and as calculated in accordance with the terms of the acquisition agreements. The development and determination of the unobservable inputs for Level 3 fair value measurements and the fair value calculations are the responsibility of the Company’s Chief Financial Officer and are approved by the Chief Executive Officer. March 31, 2017 2016 Warrant Liabilities Beginning balance as of January 1, $ 20 $ 861 Change in fair value of warrant liability (118) (737) Warrant modification expense 770 - Ending balance as of March 31, $ 672 $ 124 March 31, 2017 2016 Contingent Consideration Beginning balance as of January 1, $ 1,816 $ 17,028 Payments of contingent consideration (1,350) (5,147) Change in fair value of contingent consideration 34 362 Ending balance as of March 31, $ 500 $ 12,243 March 31, 2017 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities $ - $ - $ 672 Contingent consideration - - 500 Total liabilities $ - $ - $ 1,172 December 31, 2016 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities $ - $ - $ 20 Contingent consideration - - 1,816 Total liabilities $ - $ - $ 1,836

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events [Text Block]	12. Subsequent Events Underwritten Public Offering On April 3, 2017, the Company closed an underwritten public offering of 9,473,250 0.40 3.8 On April 3, 2017, the Company issued warrants to purchase an aggregate of 236,831 0.44 March 29, 2022 2.19 0.40 April 3, 2017 362,293 Issuance of Additional Shares under the Securities Purchase Agreement Under the Securities Purchase Agreement entered into in the Private Placement, the Company sold and issued to private investors 5,540,000 0.50 380,717 1,004,283 Amendment and Adjustments of the Perceptive Warrant On April 6, 2017, the Company and Perceptive entered into an amendment and restatement of a warrant to reduce the exercise price from $ 0.50 0.47 2,000,000

Description of Business and B18

Description of Business and Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2017
Disposal Groups, Including Discontinued Operations [Table Text Block]	Summarized operating results of discontinued operations for the three months ended March 31, 2016 are presented in the following table (in thousands): March 31, 2016 Revenue, net of returns, allowances and discounts $ 686 Cost of revenues 187 Gross profit 499 Selling, general and administrative 153 Income from discontinued operations, net of tax $ 346

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: As of March 31, 2017 2016 Stock options 7,073,282 7,198,456 Warrants 4,541,121 3,365,407 Non-vested restricted stock 826,668 816,287 Total 12,441,071 11,380,150

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventory consists of the following (dollars in thousands): March 31, December 31, 2017 2016 Raw materials $ 148 $ 135 Work in process 139 173 Finished goods 2,367 2,394 Less: Inventory reserve for excess and slow moving inventory (23) - Total $ 2,631 $ 2,702

Accrued Expenses and Other Cu21

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Accrued Liabilities, Current [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2017 2016 Salaries, benefits and incentive compensation $ 2,534 $ 3,070 Milestone payment to licensor 1,000 1,000 Professional fees 564 692 Royalty fees 185 197 Deferred revenue 175 181 Other 214 146 Total accrued expenses and other current liabilities $ 4,672 $ 5,286

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Instruments [Abstract]
Schedule of Debt [Table Text Block]	Debt consists of the following (in thousands): March 31, December 31, 2017 2016 Long-term debt $ 13,752 $ 13,752 Unamortized debt issuance and discount costs (2,007) (2,211) Total $ 11,745 $ 11,541

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	The following table sets forth a summary of the changes in the fair value of Level 3 warrant liabilities that are measured at fair value on a recurring basis (in thousands): March 31, 2017 2016 Warrant Liabilities Beginning balance as of January 1, $ 20 $ 861 Change in fair value of warrant liability (118) (737) Warrant modification expense 770 - Ending balance as of March 31, $ 672 $ 124 March 31, 2017 2016 Contingent Consideration Beginning balance as of January 1, $ 1,816 $ 17,028 Payments of contingent consideration (1,350) (5,147) Change in fair value of contingent consideration 34 362 Ending balance as of March 31, $ 500 $ 12,243
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands): March 31, 2017 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities $ - $ - $ 672 Contingent consideration - - 500 Total liabilities $ - $ - $ 1,172 December 31, 2016 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities $ - $ - $ 20 Contingent consideration - - 1,816 Total liabilities $ - $ - $ 1,836

Description of Business and B24

Description of Business and Basis of Presentation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue, net of returns, allowances and discounts		$ 686
Cost of revenues		187
Gross profit		499
Selling, general and administrative		153
Income from discontinued operations, net of tax	$ 0	$ 346

Description of Business and B25

Description of Business and Basis of Presentation (Details Textual)	3 Months Ended
	Mar. 31, 2016USD ($)
Selling, General and Administrative Expenses [Member]
Amortization of Intangible Assets	$ 19,000

Going Concern (Details Textual)

Going Concern (Details Textual) - USD ($)	Apr. 03, 2017	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Net Income (Loss) Attributable to Parent, Total		$ (6,998,000)	$ (7,682,000)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total		(4,646,000)	(6,146,000)
Retained Earnings (Accumulated Deficit), Total		(131,301,000)		$ (131,301,000)	$ (124,303,000)
Cash and Cash Equivalents, at Carrying Value, Total		2,350,000	$ 16,999,000	2,350,000	5,580,000		$ 26,080,000
Intangible Assets, Net (Including Goodwill)		$ 39,200,000		39,200,000
Gross Revenue				$ 27,200,000	$ 24,600,000	$ 22,250,000
Subsequent Event [Member]
Proceeds from Issuance or Sale of Equity	$ 3,800,000

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	12,441,071	11,380,150
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	7,073,282	7,198,456
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,541,121	3,365,407
Non-vested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	826,668	816,287

Termination of Merger Agreeme28

Termination of Merger Agreement (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Jan. 30, 2017	Dec. 31, 2016	Oct. 05, 2016
Long-term Debt, Gross	$ 13,752,000			$ 13,752,000
Provision for Doubtful Accounts	7,000	$ (80,000)
Business Combination, Acquisition Related Costs	635,000	$ 0
Bridge Loan [Member]
Long-term Debt, Gross					$ 1,400,000
Debt Instrument, Face Amount			$ 350,000	1,000,000
Provision for Doubtful Accounts	350,000
Business Combination, Acquisition Related Costs	285,000
Prepaid Expenses and Other Current Assets [Member]
Notes Receivable, Current	$ 0			$ 0

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory [Line Items]
Raw materials	$ 148	$ 135
Work in process	139	173
Finished goods	2,367	2,394
Less: Inventory reserve for excess and slow moving inventory	(23)	0
Total	$ 2,631	$ 2,702

Accrued Expenses and Other Cu30

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accrued Liabilities Current Line Items [Line Items]
Salaries, benefits and incentive compensation	$ 2,534	$ 3,070
Milestone payment to licensor	1,000	1,000
Professional fees	564	692
Royalty fees	185	197
Deferred revenue	175	181
Other	214	146
Total accrued expenses and other current liabilities	$ 4,672	$ 5,286

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term debt	$ 13,752	$ 13,752
Unamortized debt issuance and discount costs	(2,007)	(2,211)
Total	$ 11,745	$ 11,541

Debt (Details Textual)

Debt (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Sep. 30, 2016	Jan. 26, 2017	Dec. 31, 2015	May 29, 2015	Nov. 30, 2012	Nov. 08, 2012
Debt Instrument [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights					2,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001		$ 0.001
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5.5138				$ 0.50			$ 5.51	$ 2.19
Derivative Liability	$ 672,000	$ 124,000	$ 20,000			$ 861,000
Amortization of Debt Discount (Premium)	$ 204,000	198,000
Warrant Expiration Period	five-year warrant
Common Stock Purchased By Warrants Issued	750,000
Exit fee payment, Credit Agreement Description	The Company is required to pay an exit fee when the term loan is paid in full equal to the greater of 2% of the outstanding principal balance immediately prior to the final payment or $200,000, which was amended in conjunction with the extinguishment of debt described below from the greater of 1% of the outstanding principal balance immediately prior to the final payment or $100,000.
Revenues	$ 4,594,000	3,957,000
Long-term Debt, Gross	13,752,000		13,752,000
Fair Value, Inputs, Level 3 [Member]
Debt Instrument [Line Items]
Derivative Liability	672,000		20,000
Warrant [Member] | Fair Value, Inputs, Level 3 [Member]
Debt Instrument [Line Items]
Derivative Liability	2,700,000
Interest Expense [Member]
Debt Instrument [Line Items]
Amortization of Financing Costs	64,000	72,000
Amortization of Debt Discount (Premium)	140,000	$ 126,000
Senior Secured Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount							$ 15,500,000
Debt Issuance Costs1	$ 1,300,000
Debt Instrument, Interest Rate Terms	accrues interest at an annual rate equal to the greater of (a) one-month LIBOR or 1% plus (b) 9.75%
Debt Instrument, Payment Terms	is interest only for the first 24 months, followed by monthly amortization payments of $225,000, with the remaining unpaid balance due on the maturity date
Debt Instrument, Maturity Date, Description	The Company is required to pay an exit fee when the term loan is paid in full equal to the greater of 2% of the outstanding principal balance immediately prior to the final payment or $200,000,
Debt Instrument, Interest Rate During Period	10.75%
Long-term Debt, Gross	$ 13,800,000
Credit Agreement [Member]
Debt Instrument [Line Items]
Revenues	$ 27,200,000		$ 24,600,000	$ 22,250,000

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Commitments And Contingencies [Line Items]
Royalty Expense	$ 185,000	$ 217,000
Accrued Liabilities, Current	4,672,000		$ 5,286,000
Payments to Acquire Businesses, Gross	675,000	2,573,000
Revenues	$ 4,594,000	3,957,000
Installment One [Member]
Commitments And Contingencies [Line Items]
Business Combination Agreed Contingent Consideration Payable Ratio In Excess Of Certain Revenue Targets	3.5
Installment One [Member] | Two Thousand Fifteen MIST Therapy [Member]
Commitments And Contingencies [Line Items]
Revenues		10,200,000
Installment One [Member] | Two Thousand Fourteen MIST Therapy [Member]
Commitments And Contingencies [Line Items]
Revenues		8,700,000
Installment two [Member]
Commitments And Contingencies [Line Items]
Business Combination Agreed Contingent Consideration Payable Ratio In Excess Of Certain Revenue Targets	3.5
Payments to Acquire Businesses, Gross	$ 675,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	1
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned	$ 675,000
Installment two [Member] | Two Thousand Fifteen MIST Therapy [Member]
Commitments And Contingencies [Line Items]
Revenues	10,200,000
Installment two [Member] | Two Thousand Sixteen MIST Therapy [Member]
Commitments And Contingencies [Line Items]
Revenues	10,500,000
Human Longevity, Inc [Member]
Commitments And Contingencies [Line Items]
Royalty Expense	185,000	67,000
Accrued Liabilities, Current	185,000
Revenue Recognition, Milestone Method, Milestone Expenses	1,000,000
Human Longevity, Inc [Member] | First Commercial Sale [Member]
Commitments And Contingencies [Line Items]
Contractual Obligation, Due in Next Twelve Months	500,000
Human Longevity, Inc [Member] | Second Commercial Sale [Member]
Commitments And Contingencies [Line Items]
Contractual Obligation, Due in Next Twelve Months	500,000
Choice Therapeutics, Inc. [Member]
Commitments And Contingencies [Line Items]
Business Combination, Contingent Consideration, Liability	$ 500,000
Contingent Consideration [Member] | Installment One [Member]
Commitments And Contingencies [Line Items]
Payments to Acquire Businesses, Gross		$ 2,600,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares		986,000
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned		$ 2,600,000

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 27, 2017	Mar. 31, 2017	Mar. 31, 2016	Apr. 11, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 491,000	$ 1,700,000
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		11,000	82,000
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		480,000	$ 1,600,000
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues	5,540,000
Share Price	$ 0.50
Proceeds from Issuance of Private Placement	$ 2,770,000
Payments for Other Fees	196,000
Payment for Administrative Fees	$ 40,000
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of Stock, Price Per Share				$ 0.50
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		$ 1,900,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 2 months 12 days

Related Party (Details Textual)

Related Party (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 127,000	$ 163,000
Accounts Payable, Related Parties	$ 82,000		$ 102,000

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 20	$ 861
Change in fair value of warrant liability	(118)	(737)
Warrant modification expense	770	0
Ending balance	672	124
Contingent Consideration [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	1,816	17,028
Payments of contingent consideration	(1,350)	(5,147)
Change in fair value of warrant liability	34	362
Ending balance	$ 500	$ 12,243

Fair Value Measurement (Detai37

Fair Value Measurement (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Liabilities:
Warrant liabilities	$ 672	$ 20	$ 124	$ 861
Fair Value, Inputs, Level 1 [Member]
Liabilities:
Warrant liabilities	0	0
Contingent consideration	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 2 [Member]
Liabilities:
Warrant liabilities	0	0
Contingent consideration	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 3 [Member]
Liabilities:
Warrant liabilities	672	20
Contingent consideration	500	1,816
Total liabilities	$ 1,172	$ 1,836

Fair Value Measurement (Detai38

Fair Value Measurement (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 26, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Nov. 30, 2012	Nov. 08, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		$ 672,000	$ 124,000	$ 20,000	$ 861,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.50	$ 5.5138				$ 5.51	$ 2.19
Fair Value Adjustment of Warrants		$ (118,000)	(737,000)
Restructuring Costs		$ 770,000	$ 0
Class of Warrant or Right, Outstanding						66,287
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,000,000
Private Placement 2017 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.50
Class of Warrant or Right, Outstanding		290,338
Common Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants To Purchase Common Stock		2,290,338
Original Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability	$ 789,000
Modified Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability	$ 19,000
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		$ 672,000		$ 20,000
Fair Value, Inputs, Level 3 [Member] | Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Assumptions, Expected Volatility Rate	78.98%	94.41%
Fair Value Assumptions, Risk Free Interest Rate	1.95%	1.93%
Fair Value Assumptions, Expected Term	5 years	4 years 9 months 29 days
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Assumptions, Expected Volatility Rate	65.33%	79.19%
Fair Value Assumptions, Risk Free Interest Rate	1.49%	0.91%
Fair Value Assumptions, Expected Term	3 years 4 months 2 days	7 months 10 days

Subsequent Events (Details Text

Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Apr. 11, 2017	Apr. 03, 2017	Feb. 27, 2017	Apr. 06, 2017	Mar. 31, 2017	Jan. 26, 2017	Nov. 30, 2012	Nov. 08, 2012
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						2,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 5.5138	$ 0.50	$ 5.51	$ 2.19
Private Placement [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues			5,540,000
Share Price			$ 0.50
Subsequent Event [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		236,831		2,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.44		$ 0.50
Share Price		$ 0.40
Class of Warrant or Right, Expiration Date		Mar. 29, 2022
Subsequent Event [Member] | Perceptive Warrant [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 0.47
Subsequent Event [Member] | Securities Purchase Agreement [Member]
Subsequent Event [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	1,004,283
Subsequent Event [Member] | Securities Purchase Agreement [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	380,717
Subsequent Event [Member] | November 2012 Warrants [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		362,293
Class of Warrant or Right, Expiration Date		Apr. 3, 2017
Subsequent Event [Member] | Underwritten Public Offering [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues		9,473,250
Share Price		$ 0.40
Stock Issued During Period, Value, New Issues		$ 3.8