Fennec Pharmaceuticals (FENC) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 11, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-32295
Entity Registrant Name	FENNEC PHARMACEUTICALS INC.
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	20-0442384
Entity Address, Address Line One	PO Box 13628, 68 TW Alexander Drive
Entity Address, City or Town	Research Triangle Park
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27709
City Area Code	919
Local Phone Number	636-4530
Title of 12(b) Security	Common Shares, no par value
Trading Symbol	FENCF
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,237,726
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001211583
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash	$ 29,752	$ 21,100
Prepaid expenses	278	1,034
Other current assets	123	253
Total current assets	30,153	22,387
Non-current assets
Deferred issuance cost, net amortization	264	27
Total non-current assets	264	27
Total assets	30,417	22,414
Current liabilities:
Accounts payable	2,533	777
Accrued liabilities	394	877
Total current liabilities	2,927	1,654
Long term liabilities
Term loan	25,000	5,000
Debt discount	(312)	(12)
Total long term liabilities	24,688	4,988
Total liabilities	27,615	6,642
Commitments and Contingencies (Note 6)
Stockholders' equity:
Common stock, no par value; unlimited shares authorized; 26,238 shares issued and outstanding (2021 26,014)	141,309	140,801
Additional paid-in capital	56,593	53,214
Accumulated deficit	(196,343)	(179,486)
Accumulated other comprehensive income	1,243	1,243
Total stockholders' equity	2,802	15,772
Total liabilities and stockholders' equity	$ 30,417	$ 22,414

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Common stock, no par value	$ 0	$ 0
Common stock, shares issued	26,238	26,014
Common stock, shares outstanding	26,238	26,014

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating expenses:
Research and development	$ 846	$ 1,242	$ 3,414	$ 4,458
General and administrative	7,053	2,931	13,040	8,558
Loss from operations	(7,899)	(4,173)	(16,454)	(13,016)
Other (expense)/income
Unrealized foreign exchange loss	(4)	(1)	(6)	(9)
Amortization expense	(64)	(8)	(79)	(8)
Unrealized (loss)/gain on securities	(27)	39	(126)	137
Interest income	24	13	42	41
Interest expense	(119)	(55)	(234)	(64)
Total other (expense)/income	(190)	(12)	(403)	97
Net loss	$ (8,089)	$ (4,185)	$ (16,857)	$ (12,919)
Basic net loss per common share	$ (0.31)	$ (0.16)	$ (0.65)	$ (0.50)
Diluted net loss per common share	$ (0.31)	$ (0.16)	$ (0.65)	$ (0.50)
Weighted-average number of common shares outstanding basic	26,108	26,007	26,105	26,004
Weighted-average number of common shares outstanding diluted	26,108	26,007	26,105	26,004

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net loss	$ (16,857)	$ (12,919)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt access fees	77	7
Amortization of debt discount	2	1
Unrealized loss/(gain) on securities	126	(137)
Stock-based compensation - consultants	103	9
Stock-based compensation - employees	3,260	2,830
Changes in operating assets and liabilities:
Prepaid expenses	756	(435)
Other assets	4
Accounts payable	1,756	(417)
Accrued liabilities	(483)	84
Net cash used in operating activities	(11,256)	(10,977)
Financing activities:
Long-term Debt	25,000	5,000
Long-term debt paid	(5,000)
Debt discount		(14)
Capitalized deferred issuance costs	(175)	(42)
Cash paid for taxes on restricted share release	(166)
Issuance of shares, options exercise	249	24
Net cash provided by financing activities	19,908	4,968
Decrease in cash and cash equivalents	8,652	(6,009)
Cash and cash equivalents - Beginning of period	21,100	30,344
Cash and cash equivalents - End of period	29,752	$ 24,335
Non-cash investing and financing activities:
Financed insurance policy	$ 441

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock Contractors Grantee Status - Contractors or Consultants	Common Stock Grantee Status - Employees	Common Stock	Additional Paid-in Capital Employees Grantee Status - Employees	Additional Paid-in Capital Contractors Grantee Status - Contractors or Consultants	Additional Paid-in Capital Grantee Status - Employees	Additional Paid-in Capital Grantee Status - Contractors or Consultants	Additional Paid-in Capital	Accumulated Deficit Contractors Grantee Status - Contractors or Consultants	Accumulated Deficit Grantee Status - Employees	Accumulated Deficit	Accumulated Other Comprehensive Income Contractors Grantee Status - Contractors or Consultants	Accumulated Other Comprehensive Income Grantee Status - Employees	Accumulated Other Comprehensive Income	Employees Grantee Status - Employees	Contractors Grantee Status - Contractors or Consultants	Grantee Status - Employees	Grantee Status - Contractors or Consultants	Total
Balance at Dec. 31, 2020			$ 140,733					$ 49,234			$ (162,140)			$ 1,243					$ 29,070
Balance (in shares) at Dec. 31, 2020			26,003
Stock options issued	$ 0	$ 0			$ 9	$ 587			$ 0	$ 0		$ 0	$ 0			$ 9	$ 587
Net loss											(4,733)								(4,733)
Balance at Mar. 31, 2021			$ 140,733					49,830			(166,873)			1,243					24,933
Balance (in shares) at Mar. 31, 2021			26,003
Balance at Dec. 31, 2020			$ 140,733					49,234			(162,140)			1,243					29,070
Balance (in shares) at Dec. 31, 2020			26,003
Net loss																			(12,919)
Balance at Sep. 30, 2021			$ 140,780					52,049			(175,059)			1,243					19,013
Balance (in shares) at Sep. 30, 2021			26,007
Balance at Mar. 31, 2021			$ 140,733					49,830			(166,873)			1,243					24,933
Balance (in shares) at Mar. 31, 2021			26,003
Stock options issued				$ 1,326											$ 1,326
Exercise of stock options			$ 47					(24)											23
Exercise of stock options (in shares)			4
Net loss											(4,001)								(4,001)
Balance at Jun. 30, 2021			$ 140,780					51,132			(170,874)			1,243					22,281
Balance (in shares) at Jun. 30, 2021			26,007
Stock options issued						917											917
Net loss											(4,185)								(4,185)
Balance at Sep. 30, 2021			$ 140,780					52,049			(175,059)			1,243					19,013
Balance (in shares) at Sep. 30, 2021			26,007
Balance at Dec. 31, 2021			$ 140,801					53,214			(179,486)			1,243					15,772
Balance (in shares) at Dec. 31, 2021			26,014
Stock options issued	$ 0	$ 0			$ 34	399			$ 0	$ 0		$ 0	$ 0			$ 34	399
Exercise of stock options			$ 31					(16)											$ 15
Exercise of stock options (in shares)			26																26
Net loss											(3,696)								$ (3,696)
Balance at Mar. 31, 2022			$ 140,832					53,631			(183,182)			1,243					12,524
Balance (in shares) at Mar. 31, 2022			26,040
Balance at Dec. 31, 2021			$ 140,801					53,214			(179,486)			1,243					15,772
Balance (in shares) at Dec. 31, 2021			26,014
Net loss																			(16,857)
Balance at Sep. 30, 2022			$ 141,309					56,593			(196,343)			1,243					2,802
Balance (in shares) at Sep. 30, 2022			26,238
Balance at Mar. 31, 2022			$ 140,832					53,631			(183,182)			1,243					12,524
Balance (in shares) at Mar. 31, 2022			26,040
Stock options issued						1,008	$ 35										1,008	$ 35
Exercise of stock options			$ 90					(44)											$ 46
Exercise of stock options (in shares)			19																19
Restricted stock unit release (in shares)			8
Net loss											(5,072)								$ (5,072)
Balance at Jun. 30, 2022			$ 140,922					54,630			(188,254)			1,243					8,541
Balance (in shares) at Jun. 30, 2022			26,067
Stock options issued						$ 1,853	$ 34										$ 1,853	$ 34
Exercise of stock options			$ 387					(199)											$ 188
Exercise of stock options (in shares)			151																151
Restricted stock unit release			$ 20					(166)											$ (166)
Warrants issued to Petrichor								441											441
Net loss											(8,089)								(8,089)
Balance at Sep. 30, 2022			$ 141,309					$ 56,593			$ (196,343)			$ 1,243					$ 2,802
Balance (in shares) at Sep. 30, 2022			26,238

Nature of Business and Going Co

Nature of Business and Going Concern	9 Months Ended
	Sep. 30, 2022
Nature of Business and Going Concern
Nature of Business and Going Concern	1. Nature of Business and Going Concern Fennec Pharmaceuticals Inc., a British Columbia corporation (“Fennec,” ”the “Company,” “we,” “us,” or “our”), is a commercial stage specialty biopharmaceutical company focused on PEDMARK ® These unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) that are applicable to a going concern, which contemplates that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. During the three and nine months ended September 30, 2022, the Company incurred a loss from operations of $7,899 and $16,454, respectively. At September 30, 2022, the Company had an accumulated deficit of $196,343 and had experienced negative cash flows from operating activities during the nine months ended September 30, 2022 in the amount of $11,256. On August 1, 2022, the Company entered into a Securities Purchase Agreement (the “SPA”) with Petrichor Opportunities Fund I LP (the “Creditor”) in connection with the issuance of up to $45,000 of senior secured floating rate convertible notes (the “Notes”), issuable in multiple tranches (the “Note Financing”). On August 19, 2022, the Company closed on the initial tranche of $5,000 (the “First Closing Note”) which has an Initial Conversion Price equal to $8.11 per share, which was calculated based on a 20% premium of the 5-day volume weighted average price of the Company’s common shares as traded on the Nasdaq Capital Market (the “VWAP”) immediately prior to the announcement of the Securities Purchase Agreement (“SPA”) dated August 1, 2022. In connection with the first closing, the Company repaid in full its secured indebtedness with Bridge Bank in the amount of $5,000. ​ On September 23, 2022, the Company closed on the second tranche of the Note Financing in the amount of $20,000 (the “Second Closing Note”), which has an Initial Conversion Price equal to $7.89 per share, which was calculated based on a 20% premium of the 5-day VWAP immediately prior to September 20, 2022, which was the date the Company obtained FDA approval of PEDMARK (the “Second Closing Trigger”). ​ Subsequent to the funding of the Second Closing Note, and before December 31, 2023, the Company may draw up to $20,000 of additional financing under the SPA, in one or more tranches of $10,000 upon mutual agreement of the Company and the Creditor (the “Subsequent Closing Notes”). The Subsequent Closing Notes will be convertible at a price per share equal to $7.89 per share, which price is calculated on the same basis as for the Second Closing Note. ​ A commitment fee of 2.0% of the Notes is payable under the SPA. Half half ​ The Company believes current funds, along with the funds from the Note Financing issued as part of the Creditor financing provide sufficient funding for the Company to carry out its planned activities, including the commencement of commercialization efforts for at least the next twelve months of PEDMARK. The Company also has the ability to obtain additional funds under the Subsequent Closing Notes. ​ These financial statements do not reflect the potentially material adjustments in the carrying values of assets and liabilities, the reported expenses, and the balance sheet classifications used, that would be necessary if the going concern assumption was not appropriate or if there was a materially adverse event which affected the Company’s solvency.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Significant Accounting Policies
Significant Accounting Policies	2. Significant Accounting Policies Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and are the responsibility of the Company’s management. These unaudited interim condensed consolidated financial statements do not include all of the information and notes required by U.S. GAAP for annual financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes filed with the Securities and Exchange Commission (“SEC”) in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Company’s accounting policies are consistent with those presented in the audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2021. These unaudited interim condensed consolidated financial statements have been prepared in U.S. dollars. All amounts presented are in thousands except for per share amounts. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of results to be expected for the full fiscal year. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim condensed consolidated financial statements and the reported amounts of expense during the reporting period. Actual results could differ from those estimates. In the opinion of management, these unaudited interim condensed consolidated financial statements include all adjustments, which are normal and recurring in nature, necessary for the fair presentation of the Company’s financial position at September 30, 2022 and to state fairly the results for the periods presented. The most significant estimates utilized during the three and nine months ended September 30, 2022 include estimates necessary to value grants of various equity instruments to employees and contractors and the warrants issued to the Creditor, as disclosed in Note 4. New accounting pronouncements The Company did not adopt any new accounting pronouncements during the quarter ended September 30, 2022. Cash and cash equivalents Cash equivalents consist of highly liquid investments with original maturities at the date of purchase of three months or less. The Company places its cash and cash equivalents in investments held by highly rated financial institutions in accordance with its investment policy designed to protect the principal investment. At September 30, 2022, the Company had $29,752 in cash, savings and money market accounts ($21,100 at December 31, 2021). At September 30, 2022, the Company held $438 in cash of which $33 (as presented in U.S. dollars) was in Canadian dollars ($34 at December 31, 2021 as presented in U.S. dollars). At September 30, 2022, the Company held $29,314 in money market investments. Money market investments typically have minimal risks. While the Company has not experienced any loss or write-down of its money market investments, the amounts it holds in money market accounts are substantially above the $250 amount insured by the FDIC and may lose value. ​ Inventory Inventory is stated at the lower of cost or estimated net realizable value with cost determined under the first-in first-out method. Inventory costs include third-party contract manufacturing, third-party packaging services and freight. At this time, we primarily use actual costs to determine the cost basis for inventory. The determination of whether inventory costs will be realizable requires management review of the expiration dates of PEDMARK ® Prior to FDA approval of PEDMARK ® ® Financial instruments ​ Financial instruments recognized on the balance sheets at September 30, 2022 and December 31, 2021 consist of cash and cash equivalents, common shares of Processa Pharmaceuticals, Inc., accounts payable and accrued liabilities, the carrying values of which approximate fair value due to their relatively short time to maturity. The Company does not hold or issue financial instruments for trading. The Company’s investment policy is to manage investments to achieve, in the order of importance, the financial objectives of preservation of principal, liquidity and return on investment. Investments, when made, are made in U.S. or Canadian bank securities, commercial paper of U.S. or Canadian industrial companies, utilities, financial institutions and consumer loan companies, and securities of foreign banks provided the obligations are guaranteed or carry ratings appropriate to the policy. Securities must have a minimum Dun & Bradstreet rating of A for bonds or R1 low for commercial paper. The policy risks are primarily the opportunity cost of the conservative nature of the allowable investments. As our main purpose is preservation of capital while we endeavor to become cash flow positive through the sale of product, we have chosen to avoid investments of a trading or speculative nature. Securities must have a minimum Dun & Bradstreet rating of A for bonds or R1 low for commercial paper. The policy also provides for investment limits on concentrations of securities by issuer and a maximum-weighted average time to maturity of twelve months. Product revenue, net The ® and will ®

Loss per Share

Loss per Share	9 Months Ended
	Sep. 30, 2022
Loss per Share
Loss per Share	3. Loss Per Share Earnings per common share is presented under two formats: basic earnings per common share and diluted earnings per common share. Basic earnings per common share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period, plus the potentially dilutive impact of common stock equivalents (i.e. stock options and warrants). Dilutive common share equivalents consist of the incremental common shares issuable upon exercise of stock options and warrants. The following table sets forth the computation of basic and diluted net loss per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2022 2021 2022 2021 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss ​ $ (8,089) ​ $ (4,185) ​ $ (16,857) ​ $ (12,919) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ Weighted-average common shares, basic ​ 26,108 ​ 26,007 ​ 26,105 ​ 26,004 ​ Dilutive effect of stock options ​ — ​ — ​ — ​ — ​ Dilutive effect of warrants ​ — ​ — ​ — ​ — ​ Incremental dilutive shares ​ — ​ — ​ — ​ — ​ Weighted-average common shares, diluted ​ 26,108 ​ 26,007 ​ 26,105 ​ 26,004 ​ Net loss per share, basic and diluted ​ $ (0.31) ​ $ (0.16) ​ $ (0.65) ​ $ (0.50) ​ ​ The following outstanding options and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2022 2021 2022 2021 Options to purchase common shares 4,466 3,653 4,466 3,653 Warrants to purchase common shares 150 39 150 39 ​

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2022
Stockholders' Equity
Stockholders' Equity	4. Stockholders’ Equity Authorized capital stock The Company’s authorized capital stock consists of an unlimited number of common shares, no par value per share. Warrants to purchase common stock During the three and nine months ended September 30, 2022, the Company issued 111 warrants at a strike price of $8.11. The Company capitalized $441 in non-cash expense, and cash expense of $175 associated with issuing the SPA. During the three and nine month ended September 30, 2022, there were no ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Shares ​ ​ ​ ​ Issuable Upon Exercise ​ ​ ​ ​ ​ of Outstanding ​ Weighted-Average Creditor Warrants ​ Warrants ​ Exercise Price Outstanding December 31, 2021 39 ​ $ 6.80 Issued ​ — ​ ​ — Outstanding March 31, 2022 ​ 39 ​ $ 6.80 Issued ​ — ​ ​ — Outstanding June 30, 2022 ​ 39 ​ $ 6.80 Issued ​ 111 ​ ​ 8.11 Outstanding September 30, 2022 ​ 150 ​ $ 7.30 ​ Equity Incentive Plan The Compensation Committee of the Board of Directors administers the Company’s equity incentive plan (the “Plan”). The Compensation Committee designates eligible participants to be included under the Plan and approves the number of equity instruments to be granted from time to time under the Plan. Currently, the maximum number of equity instruments issuable under the Plan, together with the Company’s prior stock option plan, is twenty-five percent (25%) of the total number of issued and outstanding common shares. Based upon the current shares outstanding, a maximum of 6,559 shares of common stock are authorized for issuance pursuant to stock options or other equity awards granted under the Plan. For all options issued under the Plan, the exercise price is the fair value of the underlying shares on the date of grant. All options vest within three years or less and are exercisable for a period of ten years from the date of grant. The Plan allows the issuance of Canadian and U.S. dollar grants. The table below outlines recognized contractor and employee expense from equity awards for the three and nine month periods ended September 30, 2022 and 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2022 2021 2022 2021 Contractor options expense recognized ​ $ 34 ​ $ — ​ $ 103 ​ $ 9 Employee options expense recognized ​ 1,853 ​ 917 ​ 3,260 ​ 2,830 Total option expense recognized ​ $ 1,887 ​ $ 917 ​ $ 3,363 ​ $ 2,839 ​ Stock Option Activity The following is a summary of option activity for the three and nine months ended September 30, 2022, for stock options denominated in U.S. dollars. Since August of 2020, there have been no Canadian denominated options outstanding. ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Weighted-Average US Denominated Options ​ Options (thousands) Exercise Price Outstanding at December 31, 2021 4,259 ​ $ 5.13 Granted 200 ​ 5.64 Exercised (26) ​ 0.58 Forfeited ​ (382) ​ ​ 6.13 Outstanding at March 31, 2022 ​ 4,051 ​ ​ 5.34 Granted ​ 305 ​ ​ 5.71 Exercised ​ (19) ​ ​ 2.38 Outstanding at June 30, 2022 4,337 ​ ​ 5.14 Granted ​ 310 ​ ​ 6.93 Exercised ​ (151) ​ ​ 1.25 Forfeited ​ (30) ​ ​ 5.59 Outstanding at September 30, 2022 ​ 4,466 ​ $ 5.33 ​ ​ ​ ​ ​ ​ ​ During the three and nine month periods ended September 30, 2022, there were 310 and 815 options granted, respectively. During the three and nine month periods ended September 30, 2022, there were 151 and 196 exercises of options, respectively. This resulted in a cash inflow of $188 and $249, respectively. During the three and nine month periods ended September 30, 2022, there were 30 and 412 option grant forfeitures by departing employees. Of the 4,466 U.S. denominated options granted and outstanding at September 30, 2022, 3,448 are fully vested and exercisable. The value of options and warrants issued was estimated using the Black-Scholes option pricing model using the assumptions in the table below. The expected volatility was determined using historical volatility of our stock based on the expected term of the award. ​ ​ ​ ​ ​ ​ ​ Valuation Assumptions Black-Scholes Model Assumptions ​ September 30, 2022 Expected dividend 0.00% Risk free rate 1.18 - 4.11% Expected volatility ​ 67 - 74% Expected life ​ 5 - 6.0 years ​ Restricted Share Units Activity ​ The Plan allows for the issuance of restricted share units (“RSU’s”). The following is a summary of RSU activity for the three and nine months ended September 30, 2022. During the three and nine month ended September 30, 2022, there were 20 and 28 RSU’s released from restriction, respectively. During the nine months ended September 30, 2022, there were 88 RSU’s forfeited by departing employees. All RSU’s vest over one ​ ​ ​ ​ ​ ​ Number of Restricted US Denominated RSUs ​ Share Units (thousands) Outstanding at December 31, 2021 219 Awarded ​ — Forfeited (88) Outstanding at March 31, 2022 ​ 131 Awarded ​ — Released ​ (8) Outstanding at June 30, 2022 ​ 123 Awarded ​ — Released ​ (20) Outstanding at September 30, 2022 ​ 103 ​ The value of RSU’s issued was estimated using the share price on the date of the award multiplied by the number of shares granted.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Measurements
Fair Value Measurements	5. Fair Value Measurements The Company has adopted ASC 820, the Fair Value Measurements and Disclosure Topic of the FASB. This Topic applies to certain assets and liabilities that are being measured and reported on a fair value basis. The Fair Value Measurements Topic defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosure about fair value measurements. This Topic enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Topic requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: ​ Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at September 30, 2022 and December 31, 2021 ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ Quoted Price in Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Market for Identical ​ Significant Other ​ Significant ​ ​ ​ ​ ​ ​ Instruments ​ Observable Inputs ​ Unobservable Inputs ​ ​ ​ ​ ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Total ​ 2022 2021 2022 2021 2022 2021 2022 2021 Assets ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ 438 (1) 82 (1) 29,314 ​ 21,018 ​ — ​ — ​ 29,752 ​ 21,100 Processa common shares — — 114 (2) 240 (2) — — 114 240 ​ (1) The Company held approximately $438 in cash as of September 30, 2022, of which approximately $33 was in Canadian funds (translated into U.S. dollars). As of December 31, 2021, the Company held approximately $82 in cash of which approximately $34 was in Canadian funds (translated into U.S. dollars). (2) The Company holds 46 unrestricted common shares of Processa Pharmaceuticals, Inc. (NASDAQ:PCSA) (“Processa”). The Company received another 5 restricted common shares of Processa on October 20, 2022 which will become unrestricted one year after receipt. The Company originally applied a 20%, 30% and 40% liquidity discount to the shares and will mark to market at each balance sheet date. The Company will also adjust the liquidity discounts being applied to the share valuation to appropriately reflect the passage of time and the existence of any restrictions on the shares. Valuation of the shares at September 30, 2022 had a 0%, 0% and 15% liquidity discount applied to the 41, 5 and 5 share tranches, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies
Commitments and Contingencies	6. Commitments and Contingencies Oregon Health & Science University Agreement On February 20, 2013, Fennec entered into an exclusive license agreement with Oregon Health & Science University (“OHSU”) for exclusive worldwide license rights to intellectual property directed to thiol-based compounds, including PEDMARK, and their use in oncology (the “OHSU Agreement”). OHSU will receive certain milestone payments, royalty on net sales for licensed products and a royalty on any consideration received from sublicensing of the licensed technology. On May 18, 2015, Fennec negotiated an amendment (“Amendment 1”) to the OHSU Agreement, which expands Fennec’s exclusive license to include the use of N-acetylcysteine as a standalone therapy and/or in combination with sodium thiosulfate for the prevention of ototoxicity induced by chemotherapeutic agents to treat cancers. Further, Amendment 1 adjusts select milestone payments in the OHSU Agreement including but not limited to the royalty rate on net sales for licensed products, royalty rate from sublicensing of the licensed technology and the fee payable upon the regulatory approval of a licensed product. The term of the OHSU Agreement as amended by Amendment 1 expires on the date of the last to expire claim(s) covered in the patents licensed to Fennec or 8 years, whichever is later. In the event a licensed product obtains regulatory approval and is covered by the Orphan Drug Designation, the parties will in good faith amend the term of the agreement. PEDMARK is currently protected by methods of use patent that the Company exclusively licensed from OHSU that expire in the United States in 2038. The OHSU Agreement is terminable by either Fennec or OHSU in the event of a material breach of the agreement by either party after 45 days prior written notice. Fennec also has the right to terminate the OHSU Agreement at any time upon 60 days prior written notice and payment of all fees due to OHSU under the OHSU Agreement. Securities Class Action Suit Chapman v. Fennec Pharmaceuticals Inc. et al. On September 3, 2020, plaintiff Jim Chapman filed a putative federal securities class action lawsuit against the Company, our Chief Executive Officer, Rostislav Raykov, and Chief Financial Officer, Robert Andrade, in the United States District Court for the Middle District of North Carolina, captioned Chapman v. Fennec Pharmaceuticals Inc. et al concerning our NDA for PEDMARK, defendants made materially false or misleading statements and failed to disclose material facts about our third-party PEDMARK product manufacturing facility and the impact the facility would have on regulatory approval for PEDMARK. On December 3, 2020, the court appointed a lead plaintiff to represent the putative class. On February 1, 2021, the lead plaintiff filed an amended complaint. The amended complaint added members of our Board of Directors as defendants, asserts a putative class period from December 20, 2018 through August 10, 2020, makes allegations similar to those in the original complaint, claims the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, and seeks an unspecified amount of compensatory damages and attorneys’ fees and costs. On March 3, 2021, defendants filed a motion to dismiss the amended complaint. On April 2, 2021, lead plaintiff filed an opposition to the motion to dismiss. On April 16, 2021, defendants filed a reply in support of the motion to dismiss, and on December 16, 2021, the Magistrate Judge entered an order recommending that defendants’ motion to dismiss be granted in its entirety. On January 24, 2022, lead plaintiff filed objections to the Magistrate Judge’s recommendation, and defendants filed their response on February 3, 2022. On March 2, 2022, the U.S. District Court Judge adopted the Magistrate Judge’s order and recommendation and entered an order and judgment dismissing the amended complaint with prejudice. On March 30, 2022, lead plaintiff filed a motion for post judgment relief, seeking leave to file a second amended complaint. In his proposed second amended complaint, lead plaintiff seeks to add allegations stemming from the receipt of a second CRL following our resubmission of our NDA for PEDMARK, which we received on November 29, 2021, among other things. Defendants filed an opposition to plaintiff’s motion for post judgment relief on April 20, 2022. On May 4, 2022, lead plaintiff submitted a reply in support of his motion. On September 27, 2022, defendants filed a request for judicial notice regarding the FDA’s press release announcing that it has approved PEDMARK. On October 18, 2022, lead plaintiff filed his opposition to request for judicial notice. On October 21, 2022, defendants filed a reply in support of the request for judicial notice. We believe that this lawsuit is without merit and intend to defend it vigorously. We cannot predict the outcome of this lawsuit. Failure by us to obtain a favorable resolution of the lawsuit could have a material adverse effect on our business, results of operations, and financial condition. We have not recorded a liability as of September 30, 2022, because we believe a potential loss is not probable or reasonably estimable given the nature of the proceedings and our success so far by obtaining a dismissal with prejudice of the amended complaint. Fisher v. Fennec Pharmaceuticals Inc. et al. On February 9, 2022, plaintiff Jeffrey D. Fisher filed a putative federal securities class action lawsuit against the Company and our CEO and CFO in the United States District Court for the Middle District of North Carolina, captioned Fisher v. Fennec Pharmaceuticals Inc. et al. TM On June 23, 2022, lead plaintiff filed an amended complaint. The amended complaint asserts the same putative class period from May 28, 2021 through November 28, 2021, is brought against the same defendants and makes allegations similar to those in the original complaint. On August 5, 2022, defendants filed a motion to dismiss the amended complaint. On August 26, 2022, lead plaintiff filed an opposition to the motion to dismiss. On September 9, 2022, defendants filed a reply in support of the motion to dismiss. On September 27, 2022, defendants filed a request for judicial notice regarding the FDA’s press release announcing that it approved PEDMARK. On September 30, 2022, lead plaintiff filed an opposition to the request for judicial notice. On October 6, 2022, defendants filed a reply in support of the request for judicial notice. On October 12, 2022, the U.S. District Court Judge issued a memorandum opinion and order dismissing the amended complaint in its entirety and with prejudice, and on October 14, 2022, entered judgment. Lead plaintiff has until November 14, 2022 to file a notice of appeal. We believe that the lawsuit is without merit and intend to defend it vigorously. We cannot predict the outcome of this lawsuit. Failure by us to obtain a favorable resolution of the lawsuit could have a material adverse effect on our business, results of operations, and financial condition. We have not recorded a liability as of September 30, 2022, because we believe a potential loss is not probable or reasonably estimable given the nature of the proceedings and our success so far by obtaining a dismissal with prejudice of the amended complaint. Hope Medical Enterprises, Inc. On October 29, 2021, Hope Medical Enterprises, Inc. (“Hope”) filed two petitions for inter partes review (“IPR”) with the Patent Trial and Appeal Board (“PTAB”) of the USPTO. In its petitions, Hope seeks to invalidate our U.S. Patent No. 10,596,190 (“US ‘190”), which is exclusively in-licensed from OHSU and relates to a method of using our PEDMARK product, and our U.S. Patent No. 10,792,363 (“US ’363”), which relates to an anhydrous form of STS, which is the active pharmaceutical ingredient in our PEDMARK product. US ‘190 was issued on March 24, 2020. US ‘363 was issued on October 6, 2020. On January 11, 2022, OHSU filed a Request for Supplemental Examination of US ‘190 requesting the consideration by the Central Re-examination Unit (“CRU”) of the USPTO of certain prior art references, including references cited by Hope in its Petition for IPR that are relevant to the granted claim of the patent. On May 9, the PTAB granted Hope Medical’s Petition to Institute the IPR against the ‘190 patent and a stayed the Supplemental Examination pending the result of the ‘190 IPR. On August 12, 2022, we filed a Motion to Amend the single claim of the ‘190 Patent in the IPR to focus on the treatment of medulloblastoma. We expect a decision in the ‘190 IPR in May 2023, which can be appealed by the losing party. Further, in May 2022, the PTAB granted Hope Medical’s Petition to Institute the IPR against the ‘363 patent. During the ‘363 IPR, we disclaimed the patent claims directed to the anhydrous morphic form of STS and continued with claims directed to its method of manufacture. We expect a decision in the ‘363 IPR in May 2023, which can be appealed by the losing party. On April 5, 2022, the USPTO issued U.S. Patent No. 11,291,728 (‘728) that covers the PEDMARK pharmaceutical formulation. On September 14, 2022, the USPTO issued Notices of Allowance to us for two additional patent applications that cover the PEDMARK pharmaceutical formulation. We expect these two additional U.S. patents to issue in Q4 of 2022 or Q1 of 2023. These patents will expire in 2039, unless held invalid or unenforceable by a court of final jurisdiction. On approval of PEDMARK, we listed the ‘728 and the ‘190 patents in the FDA Orange Book. We plan to update the Orange Book with additional patents granted by the USPTO on issuance. We obtained U.S. Orphan Drug Designation for the use of PEDMARK in the prevention of platinum-induced ototoxicity in pediatric patients in 2004. We plan to pursue PUMA upon approval of the MAA, which would allow for 10 years of market exclusivity upon PUMA approval. We plan to vigorously defend our intellectual property rights related to PEDMARK. However, we are unable to predict the outcome of Hope’s IPR petitions, or the Supplemental Examination. While we now have, or will shortly receive, additional U.S. patents that cover PEDMARK over the IPR challenged patents, an invalidation of our patents covering PEDMARK could have a material adverse effect on our ability to protect our rights in PEDMARK beyond periods of marketing exclusivity for PEDMARK possible in the United States under Orphan Drug Designation and in Europe under European Market Exclusivity for Pediatric Use (“PUMA”). Executive Severance In the event of his termination with us other than for cause, we will be obligated to pay Mr. Raykov a one-time severance payment equal to twelve months of salary ($513 as of September 30, 2022). In the event of his termination with us other than for cause, we will be obligated to pay Mr. Andrade a one-time severance payment equal to six months of salary ($186 as of September 30, 2022). Leases We have an operating lease in Research Triangle Park, North Carolina utilizing small space within a commercial building. The operating lease has payments of $0.4 per month with no scheduled increases. This operating lease is terminable with 30 days’ notice and has no penalties or contingent payments due. On January 23, 2020, the Company entered into an Office Service Agreement (the “Office Service Agreement”) with Regus to lease office space at in Hoboken, New Jersey. Per the terms of the Office Service Agreement, the monthly rent payments are $1. The Company was required to pay a security deposit of $2, which is the equivalent to two months of rent. The Office Service Agreement commenced on January 27, 2020, and terminates on July 31, 2020, thereafter the lease may continue on a month-to-month basis with either party being able to terminate the agreement by providing one months’ advance written notice of termination. COVID-19 Our operations may be affected by the ongoing COVID-19 pandemic. The ultimate disruption that may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on our financial position, operations and cash flows. Possible effects may include, but are not limited to, disruption to our product launch which includes the ability of sales reps to communicate with oncologists, absenteeism in our labor workforce, unavailability of products and supplies used in operations, and a decline in value of our assets, including inventories, property and equipment, and marketable securities. COVID-19 has not had a material effect on our operations to date as we have historically had a workforce which works remotely, preparations for product launch have been under the assumption of a virtual launch, and product supplies have not been impacted.

Term Loans

Term Loans	9 Months Ended
	Sep. 30, 2022
Term Loans
Term Loans	7. Term Loans On August 1, 2022, the Company entered into the SPA with the Creditor in connection with the issuance of up to $45,000 of Notes, issuable in multiple tranches. On August 19, 2022, the Company closed on the initial tranche of $5,000, which has an Initial Conversion Price equal to $8.11 per share, which was calculated based on a 20% premium of the 5-day VWAP immediately prior to the announcement of the SPA. In connection with the first closing, the Company repaid in full its secured indebtedness with Bridge Bank in the amount of $5,000. The note becomes due on the maturity date, which is August 19, 2027. On September 23, 2022, the Company closed on the second tranche of the Note Financing in the amount of $20,000, which has an Initial Conversion Price equal to $7.89 per share, which was calculated based on a 20% premium of the 5-day VWAP immediately prior to the Second Closing Trigger. Subsequent to the funding of the Second Closing Note, and before December 31, 2023, the Company may draw up to $20,000 of additional financing under the SPA, in one A commitment fee of 2.0% of the Notes is payable under the SPA. Half half satisfy the payable on second closing. The warrants will be exercisable at a price per share of $8.11 and will have a term of five years from the date of the grant. The maturity date of the second tranche is September 23, 2027. Cash interest on outstanding principal shall accrue at a rate of prime, plus 4.5% per annum (10.75% as of September 30, 2022), from the date of funding. Cash interest is due on the first business day of each calendar quarter (“Interest Date”). Payment-in-kind (“PIK”) interest will commence on funding date and accrue at a rate of 3.5% per annum (9.75% as of September 30, 2022). PIK interest will stop accruing on August 24, 2024. Any accrued PIK interest shall remain outstanding and be payable on each Interest Date and be added to the outstanding principal amount. The SPA notes are convertible into fully paid, non-assessable share of common shares at any point after their issuance dates and before the maturity date. Any amount of the SPA notes may be converted into common shares so long as it does not create partial shares. The conversion rate is determined by dividing the conversion amount by the conversion price. Aggregate annual payments due on the SPA as of September 30, 2022, are as follows: ​ ​ ​ ​ Years Ending December 31, ​ Amount 2022 $ — 2023 ​ — 2024 ​ — 2025 ​ ​ — 2026 ​ ​ — 2027 ​ ​ 25,000 Total future payments ​ ​ 25,000 Less: unamortized debt discount ​ ​ (312) Total term loan, net of debt discount ​ $ 24,688 ​ In the event of default or change of control, all unpaid principal and all accrued and unpaid interest amounts (if any) become immediately due and payable. Events of default include, but are not limited to, a payment default, a material adverse change, and insolvency. The SPA facility is secured by all of the Company’s assets, including all capital stock held by the Company. Debt issuance costs amounting to $175 were paid in cash to the Creditor and warrants valued at $441 (non-cash) secured access to the SPA. These amounts were capitalized and are being amortized over the access period of the SPA. Upon drawing tranche 1 and tranche 2, the Company recorded a debt discount of $314, which was based on a pro-rata allocation of the issue costs to secure the SPA, reducing the capitalized amount by the same amount. The debt discount is being amortized over the term of the SPA.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events
Subsequent Events	8. Subsequent Events On October 17, 2022, the Company announced the U.S. commercial launch and availability of PEDMARK ® ​

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Significant Accounting Policies
Basis of presentation	Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and are the responsibility of the Company’s management. These unaudited interim condensed consolidated financial statements do not include all of the information and notes required by U.S. GAAP for annual financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes filed with the Securities and Exchange Commission (“SEC”) in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Company’s accounting policies are consistent with those presented in the audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2021. These unaudited interim condensed consolidated financial statements have been prepared in U.S. dollars. All amounts presented are in thousands except for per share amounts. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of results to be expected for the full fiscal year.
Use of estimates	Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim condensed consolidated financial statements and the reported amounts of expense during the reporting period. Actual results could differ from those estimates. In the opinion of management, these unaudited interim condensed consolidated financial statements include all adjustments, which are normal and recurring in nature, necessary for the fair presentation of the Company’s financial position at September 30, 2022 and to state fairly the results for the periods presented. The most significant estimates utilized during the three and nine months ended September 30, 2022 include estimates necessary to value grants of various equity instruments to employees and contractors and the warrants issued to the Creditor, as disclosed in Note 4.
New accounting pronouncements	New accounting pronouncements The Company did not adopt any new accounting pronouncements during the quarter ended September 30, 2022.
Cash and cash equivalents	Cash and cash equivalents Cash equivalents consist of highly liquid investments with original maturities at the date of purchase of three months or less. The Company places its cash and cash equivalents in investments held by highly rated financial institutions in accordance with its investment policy designed to protect the principal investment. At September 30, 2022, the Company had $29,752 in cash, savings and money market accounts ($21,100 at December 31, 2021). At September 30, 2022, the Company held $438 in cash of which $33 (as presented in U.S. dollars) was in Canadian dollars ($34 at December 31, 2021 as presented in U.S. dollars). At September 30, 2022, the Company held $29,314 in money market investments. Money market investments typically have minimal risks. While the Company has not experienced any loss or write-down of its money market investments, the amounts it holds in money market accounts are substantially above the $250 amount insured by the FDIC and may lose value.
Inventory	​ Inventory Inventory is stated at the lower of cost or estimated net realizable value with cost determined under the first-in first-out method. Inventory costs include third-party contract manufacturing, third-party packaging services and freight. At this time, we primarily use actual costs to determine the cost basis for inventory. The determination of whether inventory costs will be realizable requires management review of the expiration dates of PEDMARK ® Prior to FDA approval of PEDMARK ® ®
Financial instruments	Financial instruments ​ Financial instruments recognized on the balance sheets at September 30, 2022 and December 31, 2021 consist of cash and cash equivalents, common shares of Processa Pharmaceuticals, Inc., accounts payable and accrued liabilities, the carrying values of which approximate fair value due to their relatively short time to maturity. The Company does not hold or issue financial instruments for trading. The Company’s investment policy is to manage investments to achieve, in the order of importance, the financial objectives of preservation of principal, liquidity and return on investment. Investments, when made, are made in U.S. or Canadian bank securities, commercial paper of U.S. or Canadian industrial companies, utilities, financial institutions and consumer loan companies, and securities of foreign banks provided the obligations are guaranteed or carry ratings appropriate to the policy. Securities must have a minimum Dun & Bradstreet rating of A for bonds or R1 low for commercial paper. The policy risks are primarily the opportunity cost of the conservative nature of the allowable investments. As our main purpose is preservation of capital while we endeavor to become cash flow positive through the sale of product, we have chosen to avoid investments of a trading or speculative nature. Securities must have a minimum Dun & Bradstreet rating of A for bonds or R1 low for commercial paper. The policy also provides for investment limits on concentrations of securities by issuer and a maximum-weighted average time to maturity of twelve months.
Product Revenue, Net	Product revenue, net The ® and will ®

Loss per Share (Tables)

Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Loss per Share
Schedule of Earnings Per Share, Basic and Diluted	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2022 2021 2022 2021 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss ​ $ (8,089) ​ $ (4,185) ​ $ (16,857) ​ $ (12,919) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ Weighted-average common shares, basic ​ 26,108 ​ 26,007 ​ 26,105 ​ 26,004 ​ Dilutive effect of stock options ​ — ​ — ​ — ​ — ​ Dilutive effect of warrants ​ — ​ — ​ — ​ — ​ Incremental dilutive shares ​ — ​ — ​ — ​ — ​ Weighted-average common shares, diluted ​ 26,108 ​ 26,007 ​ 26,105 ​ 26,004 ​ Net loss per share, basic and diluted ​ $ (0.31) ​ $ (0.16) ​ $ (0.65) ​ $ (0.50) ​
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2022 2021 2022 2021 Options to purchase common shares 4,466 3,653 4,466 3,653 Warrants to purchase common shares 150 39 150 39

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Stockholders' Equity
Schedule of Warrants Outstanding to Purchase Common Stock	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Shares ​ ​ ​ ​ Issuable Upon Exercise ​ ​ ​ ​ ​ of Outstanding ​ Weighted-Average Creditor Warrants ​ Warrants ​ Exercise Price Outstanding December 31, 2021 39 ​ $ 6.80 Issued ​ — ​ ​ — Outstanding March 31, 2022 ​ 39 ​ $ 6.80 Issued ​ — ​ ​ — Outstanding June 30, 2022 ​ 39 ​ $ 6.80 Issued ​ 111 ​ ​ 8.11 Outstanding September 30, 2022 ​ 150 ​ $ 7.30
Schedule of Share Based Compensation, Stock Options Expense Recognized	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2022 2021 2022 2021 Contractor options expense recognized ​ $ 34 ​ $ — ​ $ 103 ​ $ 9 Employee options expense recognized ​ 1,853 ​ 917 ​ 3,260 ​ 2,830 Total option expense recognized ​ $ 1,887 ​ $ 917 ​ $ 3,363 ​ $ 2,839
Schedule of Share- Based Compensation Stock Options Activity	​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Weighted-Average US Denominated Options ​ Options (thousands) Exercise Price Outstanding at December 31, 2021 4,259 ​ $ 5.13 Granted 200 ​ 5.64 Exercised (26) ​ 0.58 Forfeited ​ (382) ​ ​ 6.13 Outstanding at March 31, 2022 ​ 4,051 ​ ​ 5.34 Granted ​ 305 ​ ​ 5.71 Exercised ​ (19) ​ ​ 2.38 Outstanding at June 30, 2022 4,337 ​ ​ 5.14 Granted ​ 310 ​ ​ 6.93 Exercised ​ (151) ​ ​ 1.25 Forfeited ​ (30) ​ ​ 5.59 Outstanding at September 30, 2022 ​ 4,466 ​ $ 5.33 ​ ​ ​ ​ ​ ​
Fair values of options granted using weighted average assumptions	​ ​ ​ ​ ​ ​ Valuation Assumptions Black-Scholes Model Assumptions ​ September 30, 2022 Expected dividend 0.00% Risk free rate 1.18 - 4.11% Expected volatility ​ 67 - 74% Expected life ​ 5 - 6.0 years
Schedule of Restricted Share Units Activity	​ ​ ​ ​ ​ ​ Number of Restricted US Denominated RSUs ​ Share Units (thousands) Outstanding at December 31, 2021 219 Awarded ​ — Forfeited (88) Outstanding at March 31, 2022 ​ 131 Awarded ​ — Released ​ (8) Outstanding at June 30, 2022 ​ 123 Awarded ​ — Released ​ (20) Outstanding at September 30, 2022 ​ 103

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Measurements
Schedule of Assets/Liabilities Measured at Fair Value on Recurring Basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at September 30, 2022 and December 31, 2021 ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ Quoted Price in Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Market for Identical ​ Significant Other ​ Significant ​ ​ ​ ​ ​ ​ Instruments ​ Observable Inputs ​ Unobservable Inputs ​ ​ ​ ​ ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Total ​ 2022 2021 2022 2021 2022 2021 2022 2021 Assets ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ 438 (1) 82 (1) 29,314 ​ 21,018 ​ — ​ — ​ 29,752 ​ 21,100 Processa common shares — — 114 (2) 240 (2) — — 114 240 ​ (1) The Company held approximately $438 in cash as of September 30, 2022, of which approximately $33 was in Canadian funds (translated into U.S. dollars). As of December 31, 2021, the Company held approximately $82 in cash of which approximately $34 was in Canadian funds (translated into U.S. dollars). (2) The Company holds 46 unrestricted common shares of Processa Pharmaceuticals, Inc. (NASDAQ:PCSA) (“Processa”). The Company received another 5 restricted common shares of Processa on October 20, 2022 which will become unrestricted one year after receipt. The Company originally applied a 20%, 30% and 40% liquidity discount to the shares and will mark to market at each balance sheet date. The Company will also adjust the liquidity discounts being applied to the share valuation to appropriately reflect the passage of time and the existence of any restrictions on the shares. Valuation of the shares at September 30, 2022 had a 0%, 0% and 15% liquidity discount applied to the 41, 5 and 5 share tranches, respectively.

Term Loans (Tables)

Term Loans (Tables)	9 Months Ended
	Sep. 30, 2022
Term Loans
Schedule of aggregate annual payments	Aggregate annual payments due on the SPA as of September 30, 2022, are as follows: ​ ​ ​ ​ Years Ending December 31, ​ Amount 2022 $ — 2023 ​ — 2024 ​ — 2025 ​ ​ — 2026 ​ ​ — 2027 ​ ​ 25,000 Total future payments ​ ​ 25,000 Less: unamortized debt discount ​ ​ (312) Total term loan, net of debt discount ​ $ 24,688

Nature of Business and Going _2

Nature of Business and Going Concern (Details) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended
	Sep. 23, 2022 USD ($) $ / shares shares	Aug. 19, 2022 USD ($) $ / shares shares	Aug. 01, 2022 USD ($)	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Nature of Business and Going Concern [Line Items]
Loss from operations				$ 7,899	$ 4,173	$ 16,454	$ 13,016
Accumulated deficit				$ (196,343)		(196,343)		$ (179,486)
Cash flows from operating activities						$ (11,256)	$ (10,977)
Exercise price of warrants issued | $ / shares				$ 8.11
Petrichor Financing | Securities Purchase Agreements | Convertible Note Borrowings
Nature of Business and Going Concern [Line Items]
Maximum borrowing capacity			$ 45,000
Commitment fee percentage			2%
Petrichor Financing | Securities Purchase Agreements | First Closing Note
Nature of Business and Going Concern [Line Items]
Borrowings, face amount		$ 5,000
Initial conversion price | $ / shares		$ 8.11
Premium over 5-day VWAP		20%
VWAP term		5 days
Commitment fees payable in warrants		50%
Common shares available through issuance of warrants | shares		55,498
Exercise price of warrants issued | $ / shares		$ 8.11
Exercise term of warrants		5 years
Petrichor Financing | Securities Purchase Agreements | Second Closing Note
Nature of Business and Going Concern [Line Items]
Borrowings, face amount	$ 20,000
Initial conversion price | $ / shares	$ 7.89
Premium over 5-day VWAP	20%
VWAP term	5 days
Common shares available through issuance of warrants | shares	55,498
Commitment fees payable in cash or warrants	50%
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes
Nature of Business and Going Concern [Line Items]
Initial conversion price | $ / shares	$ 7.89
Common shares available through issuance of warrants | shares	55,498
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes | Minimum
Nature of Business and Going Concern [Line Items]
Remaining borrowing capacity	$ 10,000
Number of loan tranches for remaining borrowing capacity	1
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes | Maximum
Nature of Business and Going Concern [Line Items]
Remaining borrowing capacity	$ 20,000
Bridge Bank | Bridge Bank Term Loan
Nature of Business and Going Concern [Line Items]
Repayment of term loan		$ 5,000

Significant Accounting Polici_3

Significant Accounting Policies - Additional Information (Details) $ / shares in Units, shares in Thousands, $ in Thousands, $ in Thousands	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2022 CAD ($) shares	Jun. 30, 2022 $ / shares shares	Mar. 31, 2022 $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2021 CAD ($) shares
Summary Of Significant Accounting Policies [Line Items]
Money market investments	$ 29,314
Cash	29,752				$ 21,100
FDIC insured amount	$ 250
Warrants exercise price | $ / shares	$ 7.30		$ 6.80	$ 6.80	$ 6.80
Class of Warrant or Right, Outstanding | shares	150	150	39	39	39	39
Money Market Funds
Summary Of Significant Accounting Policies [Line Items]
Cash	$ 438	$ 33				$ 34

Significant Accounting Polici_4

Significant Accounting Policies - Revenue recognition (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2022 shares
Processa Pharmaceuticals, Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares to be issued under agreement	46

Loss per Share - Computation of

Loss per Share - Computation of Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net loss	$ (8,089)	$ (5,072)	$ (3,696)	$ (4,185)	$ (4,001)	$ (4,733)	$ (16,857)	$ (12,919)
Denominator:
Weighted-average common shares, basic	26,108			26,007			26,105	26,004
Incremental dilutive shares								0
Weighted-average common shares, dilutive	26,108			26,007			26,105	26,004
Basic net loss per common share	$ (0.31)			$ (0.16)			$ (0.65)	$ (0.50)
Diluted net loss per common share	$ (0.31)			$ (0.16)			$ (0.65)	$ (0.50)
Warrants
Denominator:
Dilutive effect of stock options								0
Employee Options
Denominator:
Dilutive effect of stock options								0

Loss per Share - Outstanding Op

Loss per Share - Outstanding Options and Warrants (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Employee Options
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,466	3,653	4,466	3,653
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	150	39	150	39

Stockholders' Equity - Warrants

Stockholders' Equity - Warrants to Purchase Common Stock (Details) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Stockholders' Equity
Outstanding and exercisable at the beginning	39,000	39,000
Issued	111,000
Outstanding and exercisable at the end	150,000	150,000
Exercised		0
Weighted-Average Outstanding, beginning	$ 6.80	$ 6.80
Issued	8.11
Weighted-Average Outstanding, end	$ 7.30	$ 7.30

Stockholders' Equity - Recogniz

Stockholders' Equity - Recognized Contractor and Employee Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Recognized Employee Expense [Line Items]
Stock or Unit Option Plan Expense	$ 1,887	$ 917	$ 3,363	$ 2,839
Contractor Option [Member]
Recognized Employee Expense [Line Items]
Stock or Unit Option Plan Expense	34		103	9
Employee Options
Recognized Employee Expense [Line Items]
Stock or Unit Option Plan Expense	$ 1,853	$ 917	$ 3,260	$ 2,830

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Option Activity (Details) - $ / shares shares in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of Options Outstanding at Beginning	4,337	4,051	4,259	4,259
Number of Options Granted	310	305	200
Number of Options Exercised	(151)	(19)	(26)
Number of Options Forfeited	(30)		(382)
Number of Options Outstanding at Ending	4,466	4,337	4,051	4,466
Stock Option In Us Dollars [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Weighted-average Exercise Price outstanding at Beginning	$ 5.14	$ 5.34	$ 5.13	$ 5.13
Weighted-average Exercise Price Granted	6.93	5.71	5.64
Weighted-average Exercise Price Exercised	1.25	2.38	0.58
Weighted-average Exercise Price Forfeited	5.59		6.13
Weighted-average Exercise Price Outstanding at Ending	$ 5.33	$ 5.14	$ 5.34	$ 5.33

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Aug. 31, 2020
Stockholders Equity Note [Line Items]
Common stock, no par value	$ 0			$ 0		$ 0
Options outstanding	4,466	4,337	4,051	4,466		4,259
Exercise of options (in shares)	151	19	26
Number of stock options forfeited (in shares)	30		382
Number of Options Granted	310	305	200
Proceeds from issuance of stock options				$ 249	$ 24
Cash expense capitalized, warrant issues				175
Non cash expense capitalized, warrant issues				$ 441
Equity Incentive Plan
Stockholders Equity Note [Line Items]
Exercise of options (in shares)	151			196
Number of Options Granted	310			815
Proceeds from issuance of stock options	$ 188			$ 249
Shares issuable under Stock Option Plan, as percent of shares outstanding				25%
Vesting period				3 years
Expiration term				10 years
Stock Option In Canadian Dollars [Member]
Stockholders Equity Note [Line Items]
Options outstanding							0
Stock Option In Us Dollars [Member] | Equity Incentive Plan
Stockholders Equity Note [Line Items]
Options outstanding	4,466			4,466
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	3,448			3,448
U.S.dollars [Member]
Stockholders Equity Note [Line Items]
Class Or Warrant Or Right Outstanding Weighted Average Remaining Contractual Terms				5 years 3 months 18 days
Maximum | Equity Incentive Plan
Stockholders Equity Note [Line Items]
Shares issuable under Stock Option Plan	6,559			6,559

Stockholders' Equity - Black Sc

Stockholders' Equity - Black Scholes Option Pricing Model (Details)	9 Months Ended
	Sep. 30, 2022
Expected dividend	0%
Minimum
Risk free rate	1.18%
Expected volatility	67%
Expected life	5 years
Maximum
Risk free rate	4.11%
Expected volatility	74%
Expected life	6 years

Stockholders Equity - Restricte

Stockholders Equity - Restricted Share Units Activity (Details) - Equity Incentive Plan - shares shares in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
US Denominated RSU's
US Denominated RSU's
Outstanding at beginning of period	123	131	219	219
Forfeited			(88)	(88)
Released	20	8		28
Outstanding at end of period	103	123	131	103
US Denominated RSU's | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
US Denominated RSU's | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years

Fair Value Measurements - Asset

Fair Value Measurements - Assets/Liabilities Measured at Fair Value (Details) - USD ($) shares in Thousands, $ in Thousands			3 Months Ended		9 Months Ended
	Oct. 22, 2022	Dec. 31, 2020	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash and cash equivalents					$ 29,752	$ 21,100
Processa common shares					$ 114	240
6 month interval
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares to be issued under agreement					41
Liquidity discount (as a percent)		20%			0%
9 month interval
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares to be issued under agreement					5
Liquidity discount (as a percent)				30%	0%
12 month interval
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares to be issued under agreement					5
Liquidity discount (as a percent)			40%		15%
Quoted Price in Active Markets for Identical Instruments Level 1 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash and cash equivalents					$ 438	82
Significant Other Observable Inputs Level 2 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash and cash equivalents					29,314	21,018
Processa common shares					$ 114	$ 240
Processa Pharmaceuticals, Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares to be issued under agreement					46
License agreement | Processa Pharmaceuticals, Inc | Restricted shares | 12 month interval
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of year after which shares will become unrestricted					1 year
License agreement | Processa Pharmaceuticals, Inc | Forecast [Member] | Restricted shares
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares to be issued under agreement	5

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) $ in Thousands, $ in Thousands	Sep. 30, 2022 USD ($)	Sep. 30, 2022 CAD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 CAD ($)
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]
Cash	$ 29,752		$ 21,100
Quoted Price in Active Markets for Identical Instruments Level 1 [Member]
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]
Cash	$ 438	$ 33	$ 82	$ 34

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)		1 Months Ended
	Jan. 23, 2020	Sep. 30, 2021	Sep. 30, 2022
Rent expense	$ 1,000	$ 400
Security deposit	$ 2,000
Rostislav Raykov [Member]
Severance Costs Payable In Case Of Termination Other Than For Cause			$ 513,000
Robert Andrade [Member]
Severance Costs Payable In Case Of Termination Other Than For Cause			$ 186,000

Term Loans (Details)

Term Loans (Details) $ / shares in Units, $ in Thousands					3 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 23, 2022 USD ($) $ / shares shares	Aug. 19, 2022 USD ($) $ / shares shares	Aug. 01, 2022 USD ($)	Sep. 30, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($)
Term Loans [Line Items]
Exercise price of warrants issued | $ / shares					$ 8.11
Debt discount	$ (312)				$ (312)	$ (12)
Petrichor Financing | Securities Purchase Agreements
Term Loans [Line Items]
Debt issuance costs	175				175
Debt discount	(314)				(314)
Fair value warrants	$ 441				$ 441
Petrichor Financing | Securities Purchase Agreements | Convertible Note Borrowings
Term Loans [Line Items]
Maximum borrowing capacity				$ 45,000
Commitment fee percentage				2%
Cash interest accrual rate over Prime	10.75%			4.50%
Accrual rate, PIK interest	9.75%			3.50%
Petrichor Financing | Securities Purchase Agreements | First Closing Note
Term Loans [Line Items]
Borrowings, face amount			$ 5,000
Initial conversion price | $ / shares			$ 8.11
Premium over 5-day VWAP			20%
VWAP term			5 days
Commitment fees payable in warrants			50%
Common shares available through issuance of warrants | shares			55,498
Exercise price of warrants issued | $ / shares			$ 8.11
Exercise term of warrants			5 years
Petrichor Financing | Securities Purchase Agreements | Second Closing Note
Term Loans [Line Items]
Borrowings, face amount		$ 20,000
Initial conversion price | $ / shares		$ 7.89
Premium over 5-day VWAP		20%
VWAP term		5 days
Common shares available through issuance of warrants | shares		55,498
Commitment fees payable in cash or warrants		50%
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes
Term Loans [Line Items]
Initial conversion price | $ / shares		$ 7.89
Common shares available through issuance of warrants | shares		55,498
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes | Minimum
Term Loans [Line Items]
Remaining borrowing capacity		$ 10,000
Number of loan tranches for remaining borrowing capacity		1
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes | Maximum
Term Loans [Line Items]
Remaining borrowing capacity		$ 20,000
Bridge Bank | Bridge Bank Term Loan
Term Loans [Line Items]
Repayment of term loan			$ 5,000

Term Loans - Aggregate annual p

Term Loans - Aggregate annual payments due on Term Loan (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Aggregate annual payments due on Term Loan
2027	$ 25,000
Total future payments	25,000
Less: unamortized debt discount	(312)	$ (12)
Total term Loan	$ 24,688