Fennec Pharmaceuticals (FENC) 10-Q 9 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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		26,634,676
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
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, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 12,399	$ 23,774
Accounts receivable	4,525	1,545
Prepaid expenses	247	770
Inventory	1,755	576
Other current assets	20	63
Total current assets	18,946	26,728
Non-current assets
ROU asset	29
Deferred issuance cost, net of amortization	53	211
Total non-current assets	82	211
Total assets	19,028	26,939
Current liabilities:
Accounts payable	2,941	2,390
Accrued liabilities	951	2,219
Operating lease liability - current	21
Total current liabilities	3,913	4,609
Long term liabilities
Term loan	25,000	25,000
PIK interest	937	260
Debt discount	(298)	(361)
Operating lease liability - net of current portion	7
Total long term liabilities	25,646	24,899
Total liabilities	29,559	29,508
Commitments and Contingencies (Note 6)
Stockholders' deficit:
Common stock, no par value; unlimited shares authorized; 26,633 shares issued and outstanding (2022 26,361)	143,560	142,591
Additional paid-in capital	61,229	56,797
Accumulated deficit	(216,563)	(203,200)
Accumulated other comprehensive income	1,243	1,243
Total stockholders' deficit	(10,531)	(2,569)
Total liabilities and stockholders' deficit	$ 19,028	$ 26,939

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets
Common stock, no par value	$ 0	$ 0
Common stock, shares issued	26,635	26,361
Common stock, shares outstanding	26,635	26,361

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Condensed Consolidated Statements of Operations
PEDMARK, product sales, net	$ 6,515		$ 11,517
Cost of products sold	(331)		(574)
Gross profit	6,184		10,943
Operating expenses:
Research and development	12	$ 846	24	$ 3,414
Selling and marketing	3,384		8,255
General and administrative	3,805	7,053	13,617	13,040
Total operating expenses	7,201	7,899	21,896	16,454
Loss from operations	(1,017)	(7,899)	(10,953)	(16,454)
Other (expense)/income
Unrealized foreign exchange gain/(loss)	(11)	(4)	3	(6)
Amortization expense	(72)	(64)	(217)	(79)
Unrealized loss on securities	(13)	(27)	(43)	(126)
Interest income	102	24	326	42
Interest expense	(856)	(119)	(2,479)	(234)
Total other expense	(850)	(190)	(2,410)	(403)
Net loss	$ (1,867)	$ (8,089)	$ (13,363)	$ (16,857)
Basic net loss per common share	$ (0.07)	$ (0.31)	$ (0.50)	$ (0.65)
Diluted net loss per common share	$ (0.07)	$ (0.31)	$ (0.50)	$ (0.65)
Weighted-average number of common shares outstanding basic	26,596	26,108	26,523	26,105
Weighted-average number of common shares outstanding diluted	26,596	26,108	26,523	26,105

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock Employees	Common Stock Consultants	Common Stock	Additional Paid-in Capital Employees	Additional Paid-in Capital Consultants	Additional Paid-in Capital	Accumulated Deficit Employees	Accumulated Deficit Consultants	Accumulated Deficit	Accumulated Other Comprehensive Income Employees	Accumulated Other Comprehensive Income Consultants	Accumulated Other Comprehensive Income	Employees	Consultants	Total
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-based compensation	$ 0	$ 0		$ 399	$ 34		$ 0	$ 0		$ 0	$ 0		$ 399	$ 34
Stock option exercise			$ 31			(16)									15
Stock option exercise (in shares)			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-based compensation				1,008	35								1,008	35
Stock option exercise			$ 90			(44)									46
Stock option exercise (in shares)			19
Restricted stock 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-based compensation				1,853	$ 34								1,853	$ 34
Stock option exercise			$ 387			(199)									188
Stock option exercise (in shares)			151
Restricted stock release						(166)									(166)
Restricted stock release (in shares)			20
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
Balance at Dec. 31, 2022			$ 142,591			56,797			(203,200)			1,243			(2,569)
Balance (in shares) at Dec. 31, 2022			26,361
Stock-based compensation	$ 0			1,089			$ 0			$ 0			1,089
Stock option exercise			$ 213												$ 213
Stock option exercise (in shares)			49												49
Restricted stock release						(20)									$ (20)
Restricted stock release (in shares)			1
Net loss									(6,052)						(6,052)
Balance at Mar. 31, 2023			$ 142,804			57,866			(209,252)			1,243			(7,339)
Balance (in shares) at Mar. 31, 2023			26,411
Balance at Dec. 31, 2022			$ 142,591			56,797			(203,200)			1,243			(2,569)
Balance (in shares) at Dec. 31, 2022			26,361
Net loss															(13,363)
Balance at Sep. 30, 2023			$ 143,560			61,229			(216,563)			1,243			(10,531)
Balance (in shares) at Sep. 30, 2023			26,633
Balance at Mar. 31, 2023			$ 142,804			57,866			(209,252)			1,243			(7,339)
Balance (in shares) at Mar. 31, 2023			26,411
Stock-based compensation				2,543									2,543
Stock option exercise			$ 541												$ 541
Stock option exercise (in shares)			95												95
Restricted stock release						(28)									$ (28)
Restricted stock release (in shares)			3
Net loss									(5,444)						(5,444)
Balance at Jun. 30, 2023			$ 143,345			60,381			(214,696)			1,243			(9,727)
Balance (in shares) at Jun. 30, 2023			26,509
Stock-based compensation				$ 865									$ 865
Stock option exercise			$ 215												$ 215
Stock option exercise (in shares)			92												92
Restricted stock release						(17)									$ (17)
Restricted stock release (in shares)			32
Net loss									(1,867)						(1,867)
Balance at Sep. 30, 2023			$ 143,560			$ 61,229			$ (216,563)			$ 1,243			$ (10,531)
Balance (in shares) at Sep. 30, 2023			26,633

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities:
Net loss	$ (13,363)	$ (16,857)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt access fees	166	77
Amortization of debt discount	51	2
Unrealized loss/(gain) on securities	43	126
Stock-based compensation - consultants		103
Stock-based compensation - employees	4,497	3,260
Changes in operating assets and liabilities:
Accounts receivables	(2,980)
Prepaid expenses	523	756
Inventory	(1,179)
Other assets		4
Accounts payable	551	1,756
Accrued liabilities and PIK interest	(592)	(483)
Net cash used in operating activities	(12,283)	(11,256)
Financing activities:
Long-term debt		25,000
Long-term debt paid		(5,000)
Issuance of shares, options exercise	969	249
Cash paid for taxes on restricted share release	(61)	(166)
Capitalized deferred issuance costs		(175)
Net cash provided by financing activities	908	19,908
Increase/(decrease) in cash and cash equivalents	(11,375)	8,652
Cash and cash equivalents - Beginning of period	23,774	21,100
Cash and cash equivalents - End of period	12,399	29,752
Non-cash investing and financing activities:
Capitalized lease asset	$ 29
Warrants issued for long-term debt		$ 441

Nature of Business and Going Co

Nature of Business and Going Concern	9 Months Ended
	Sep. 30, 2023
Nature of Business and Going Concern
Nature of Business and Going Concern	1. Nature of Business and Going Concern ​ Fennec Pharmaceuticals Inc., a corporation existing under the laws of British Columbia (“Fennec,” the “Company,” “we,” “us,” or “our”), was originally formed under the name Adherex Technologies Inc. and subsequently changed its name on September 3, 2014. Fennec is a commercial stage specialty pharmaceutical company with one U.S. Food and Drug Administration (“FDA”) approved and European Commission approved product , PEDMARK ® These unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US 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, 2023, the Company incurred a loss from operations of $1,017 and $10,953, respectively. At September 30, 2023, it had an accumulated deficit of $216,563 and had experienced negative cash flows from operating activities during the nine months ended September 30, 2023, in the amount of $12,283. On August 1, 2022, the Company entered into a Securities Purchase Agreement (the “SPA”) with Petrichor Opportunities Fund I LP (the “Investor”) 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 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 SPA. 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 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®. ​ 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 Investor (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 was payable under the SPA. Half half five ​ The Company believes current funds, which include funds from the First Closing Note and the Second Closing Note, provide sufficient funding for the Company to carry out its planned activities, including the continuation of commercialization efforts of PEDMARK ® ®

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
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 US 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 US GAAP for annual financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited condensed 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, 2022. 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, 2022. 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, 2023, 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 US 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 consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates include product sales discounts and allowances, allowance against trade receivables, measurement of stock-based compensation and estimates of the Company’s capital requirement over the next twelve months from the date of issuance of the consolidated financial statements. Actual results could differ from those estimates. Segment and Geographic Information Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment principally in the United States. As of September 30, 2023, the Company had an operating lease in Ireland. This is the only asset located outside of the United States. Stock-Based Compensation Under the Company’s stock-based compensation programs, the Company periodically grants stock options and restricted stock units to employees, directors, and consultants. The fair value of each award is recognized in the Company’s statements of operations over the requisite service period for such award. ​ The Company uses the Black-Scholes option pricing model to value stock option awards without market conditions, which requires the Company to make certain assumptions regarding the expected volatility of its common stock price, the expected term of the option grants, the risk-free interest rate and the dividend yield with respect to its common stock. The Company calculates volatility using its historical stock price data. Due to the lack of the Company’s own historical data, the Company elected to use the “simplified” method for “plain vanilla” options to estimate the expected term of the Company’s stock option grants. Under this approach, the weighted-average expected life is presumed to be the average of the vesting term and the contractual term of the option. The risk-free interest rate used for each grant is based on the United States Treasury yield curve in effect at the time of grant for instruments with a similar expected life. The Company utilizes a dividend yield of zero based on the fact that the Company has never paid cash dividends and, at present, has no intention to pay cash dividends. Inventory Inventories are valued under a standard costing methodology on a first-in, first-out basis and are stated at the lower of cost or net realizable value. The Company capitalizes inventory costs related to products to be sold in the ordinary course of business. The Company makes a determination of capitalizing inventory costs for a product based on, among other factors, information regarding safety, efficacy and expectations relating to commercial sales and recoverability of costs. Capitalized costs of inventories mainly include third party manufacturing, logistics and distribution costs. The Company assesses the recoverability of inventory each reporting period to determine any write down to net realizable value resulting from excess or obsolete inventories. The manufacturing costs for PEDMARK ® ® ​ Revenue Recognition Under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, the Company recognizes revenue when its customers obtain control of promised goods or services, in an amount that reflects the consideration which the Company determines it expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies its performance obligation(s). As part of the accounting for these arrangements, the Company must make significant judgments, including identifying performance obligations in the contract and estimating the amount of variable consideration to include in the transaction price. Net Product Revenue On September 20, 2022, the FDA approved PEDMARK ® ® ® Product Sales Discounts and Allowances The Company records revenues from product sales at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established primarily from discounts, chargebacks, rebates, co-pay assistance, returns and other allowances that are offered within contracts between the Company and its Customers, health care providers, payors and other indirect customers relating to the sales of its products. These reserves are based on the amounts to be claimed on the related sales and are classified as a contra-asset or a current liability. Where appropriate, these estimates take into consideration a range of possible outcomes that are probability-weighted for relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data, forecasted Customer buying and payment patterns, and the Company’s historical experience that will develop over time as PEDMARK ® is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect net product revenues and earnings in the period such variances become known. Chargebacks: Discounts for Prompt Payment: Rebates: ® Co-payment Assistance: Other Customer Credits: The following table summarizes net product revenues for PEDMARK ® ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ ​ September 30, ​ ​ September 30, ​ ​ September 30, ​ ​ September 30, In thousands ​ ​ ​ 2023 ​ ​ 2022 ​ ​ 2023 ​ ​ 2022 Product revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross product revenues ​ ​ $ 6,919 ​ $ — ​ $ 12,525 ​ $ — Discounts and allowances ​ ​ ​ (404) ​ ​ — ​ ​ (1,008) ​ ​ — Net product revenues ​ ​ $ 6,515 ​ $ — ​ $ 11,517 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes the percentage of total product revenues for PEDMARK ® ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ September 30, ​ September 30, Specialty Distributors ​ 2023 ​ 2022 ​ ​ 2023 ​ 2022 ASD ​ 16 % — % ​ 24 % — McKesson ​ 19 ​ — ​ ​ 16 ​ — Subtotal-Specialty Distributors ​ 35 ​ — ​ ​ 40 ​ — Direct Customers ​ 65 ​ — ​ ​ 60 ​ — ​ ​ 100 % — % ​ 100 % — ​ The activities and ending allowance balances for each significant category of discounts and allowances for PEDMARK ® ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Chargebacks, ​ Rebates, Customer ​ ​ ​ ​ ​ Discounts for ​ Fees/Credits ​ ​ ​ ​ ​ Prompt pay and ​ and Co-Pay ​ ​ ​ In thousands ​ Other allowances ​ Assistance ​ Totals Balance at December 31, 2022 ​ $ 71 ​ $ 163 ​ $ 234 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ 116 ​ ​ 117 ​ ​ 233 Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (31) ​ ​ (66) ​ ​ (97) Balance at March 31, 2023 ​ $ 156 ​ $ 214 ​ $ 370 Provision related to sales made in: ​ ​ 246 ​ ​ 148 ​ ​ 394 Current period ​ ​ — ​ ​ — ​ ​ — Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (193) ​ ​ (124) ​ ​ (317) Balance at June 30, 2023 ​ $ 209 ​ $ 238 ​ $ 447 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ 334 ​ ​ 180 ​ ​ 514 Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (307) ​ ​ (71) ​ ​ (378) Balance at September 30, 2023 ​ $ 236 ​ $ 347 ​ $ 583 ​ The allowances for chargebacks, fees due to Customers, rebates and discounts for prompt payment are recorded as a contra-asset to accounts receivable, while Medicaid rebates and return allowances are in accrued liabilities in the accompanying Condensed Consolidated Balance Sheets. Trade Receivables The Company records gross trade characteristics of such a Customer. The Customers are mainly specialty distributors, and accordingly, the Company considers the risk of potential credit losses to be low. It is the policy of the Company to reserve 1% of its net sales to non-specialty distributors, as such the Company had an immaterial balance in allowance for doubtful accounts as of September 30, 2023. ​ Cost of Products Sold Cost of products sold is related to the Company's product revenues for PEDMARK ® ® ® ® ® ® 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, 2023, the Company had $12,399 in cash, savings and money market accounts ($23,774 at December 31, 2022). At September 30, 2023, the Company held $2,007 in cash of which $488 (as presented in U.S. dollars) was in Canadian dollars ($34 at December 31, 2022 as presented in U.S. dollars). At September 30, 2023, the Company held $10,392 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. Financial Instruments Financial instruments recognized on the balance sheets at September 30, 2023 and December 31, 2022 consist of cash and cash equivalents, accounts receivable, accounts payable and term loans, the carrying values of which approximate fair value due to their relatively short time to maturity or interest rates that approximate market interest rates. 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. Until the company is cash flow positive from operations, the Company has chosen to avoid investments of a trading or speculative nature. Research and Development Costs and Investment Tax Credits Research costs, including employee compensation, laboratory fees, lab supplies, and research and testing performed under contract by third parties, are expensed as incurred. Development costs, including drug substance costs, clinical study expenses and regulatory expenses are expensed as incurred. Investment tax credits, which are earned as a result of qualifying research and development expenditures, are recognized when the expenditures are made and their realization is reasonably assured. They are applied to reduce related capital costs and research and development expenses in the year recognized. Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk primarily consist of cash and cash equivalents, and instrument. The Company’s trade receivables include amounts billed to Customers for product sales of PEDMARK ® Income Taxes The Company accounts for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates. The Company has deferred tax assets, which are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. As of September 30, 2023, we maintained a full valuation allowance against our deferred tax assets. The provisions of the FASB ASC 740-10, Uncertainty in Income Taxes, address the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Foreign Currency Transactions The U.S. dollar is the functional currency for the Company’s consolidated operations. All gains and losses from currency transactions are included in results of operations. New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates on certain types of financial instruments, including trade receivables. In addition, new disclosures are required. The ASU, as subsequently amended, is effective for the Company for fiscal years beginning after December 15, 2022, as the Company is a smaller reporting company as defined in Item 10(f)(1) of Regulation S-K. We adopted ASU 2016-13 on January 1, 2023. Based on the composition of the Company’s accounts receivable, the adoption of this standard did not have a material impact on the Company’s consolidated financial statements or disclosures. Specifically, the Company’s estimate of expected credit losses as of September 30, 2023, using its expected credit loss evaluation process, resulted in no adjustments to the provision for credit losses and no cumulative effect adjustment to accumulated deficit on the adoption date of the standard. ​ In July 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-03 to amend various SEC paragraphs in the Accounting Standards Codification to primarily reflect the issuance of SEC Staff Accounting Bulletin No. 120. ASU No. 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement-Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation-Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280-General Revision of Regulation S-X: Income or Loss Applicable to Common Stock.” ASU 2023-03 amends the ASC for SEC updates pursuant to SEC Staff Accounting Bulletin No. 120; SEC Staff Announcement at the March 24, 2022 Emerging Issues Task Force (“EITF”) Meeting; and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280 - General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. These updates were immediately effective and did not have a material impact on our financial statements. ​ In October 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-06 to amend various SEC paragraphs in the Accounting Standards Codification to primarily reflect SEC Release No. 33-10532, Disclosure Update and Simplification. ASU 2023-06 amends disclosure guidance over an entity’s accounting policy related to derivative instruments, material prior period adjustments upon a change in a reporting entity, earnings-per-share, encumbered assets, unused lines of credit and unfunded commitments, and liquidation preferences of preferred stock. The amendments are effective prospectively on the date each individual amendment is effectively removed from Regulation S-X or Regulation S-K.

Loss per Share

Loss per Share	9 Months Ended
	Sep. 30, 2023
Loss per Share
Loss per Share	3. Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted net loss per share is computed using the same method, except the weighted average number of common shares outstanding includes convertible debentures, stock options and warrants, if dilutive, as determined using the if-converted method and treasury methods. Accordingly, warrants to purchase 0.2 million of our common shares and options to purchase 5.0 million of our common shares at September 30, 2023, were not included in loss per share. Such instruments would have an antidilutive effect. During the same period in 2022, warrants to purchase 0.04 million of our common shares and options to purchase 4.3 million common shares were excluded from the computation of loss per share as their inclusion would have been anti dilutive ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2023 2022 Options to purchase common shares 5,005 ​ 4,466 Warrants to purchase common shares 150 ​ 150 ​

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2023
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, 2023 and 2022, there were no warrants issued exercised ​ 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 6,658 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, 2023 and 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ September 30, ​ September 30, ​ September 30, ​ September 30, ​ 2023 ​ 2022 2023 ​ 2022 Contractor options expense recognized ​ $ — ​ $ 34 ​ $ — ​ $ 103 Employee options expense recognized ​ 865 ​ 1,853 ​ ​ 4,497 ​ ​ 3,260 Total option expense recognized ​ $ 865 ​ $ 1,887 ​ $ 4,497 ​ $ 3,363 ​ ​ Stock Option Activity The following is a summary of option activity for the three and nine months ended September 30, 2023 for stock options denominated in U.S. dollars. ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Weighted-Average Options ​ Options (thousands) Exercise Price $USD Outstanding at December 31, 2022 ​ 4,539 ​ $ 5.13 Granted ​ 580 ​ 8.12 Exercised ​ (49) ​ 4.36 Forfeited ​ (38) ​ ​ 6.98 Outstanding at March 31, 2023 ​ 5,032 ​ ​ 5.43 Granted ​ 125 ​ ​ 8.80 Exercised ​ (95) ​ ​ 5.60 Forfeited ​ (175) ​ ​ 7.51 Outstanding at June 30, 2023 ​ 4,887 ​ $ 5.77 Granted ​ 370 ​ ​ 7.88 Exercised ​ (92) ​ ​ 2.34 Forfeited ​ (160) ​ ​ 7.35 Outstanding at September 30, 2023 ​ 5,005 ​ $ 5.94 ​ Of the 5,005 U.S. denominated options granted and outstanding at September 30, 2023, 3,932 are fully vested and exercisable. The value of options 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 common shares based on the expected term of the award. ​ ​ ​ ​ ​ ​ Valuation ​ ​ Assumptions Black-Scholes Model Assumptions ​ September 30, 2023 Expected dividend 0.00% Risk free rate 3.56 - 5.12% Expected volatility ​ 49 - 77% Expected life ​ ​ Restricted Share Units Activity ​ The Plan allows for the issuance of restricted share units (“RSUs”). The following is a summary of RSU activity for the three and nine months ended September 30, 2023. During the three and nine months ended September 30, 2023, there were 32 and 36 RSU’s released from restriction, respectively. During the three and nine months ended September 30, 2023, there were 84 and 101 RSUs forfeited by departing employees. RSUs vesting vary from one ​ ​ ​ ​ ​ ​ Number of ​ ​ Restricted Share RSUs Current Year ​ Units (thousands) Outstanding at December 31, 2022 35 Awarded 264 Released ​ (1) Outstanding at March 31, 2023 ​ 298 Awarded ​ 98 Released ​ (3) Forfeited ​ (17) Outstanding at June 30, 2023 ​ 376 Awarded ​ — Released ​ (32) Forfeited ​ (84) Outstanding at September 30, 2023 ​ 260 ​ The value of RSUs issued was estimated using the share price on the date of the award multiplied by the number of common shares granted.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
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 US 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, 2023 and December 31, 2022 ​ ​ (in thousands) ​ ​ Quoted Price in Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Market for Identical ​ Significant Other Significant ​ ​ ​ ​ ​ ​ Instruments ​ Observable Inputs Unobservable Inputs ​ ​ ​ ​ ​ ​ Level 1 ​ Level 2 Level 3 ​ Total ​ ​ 2023 ​ 2022 ​ 2023 2022 2023 2022 2023 2022 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 2,007 (1) $ 307 (1) $ 10,392 $ 23,467 $ — $ — $ 12,399 $ 23,774 Processa common shares ​ $ 13 (2) $ 56 (2) $ — $ — $ — $ — $ 13 $ 56 ​ (1) The Company held approximately $2,007 in cash as of September 30, 2023, of which approximately $488 was in Canadian funds (translated into U.S. dollars). As of December 31, 2022, the Company held approximately $307 in cash of which approximately $33 was in Canadian funds (translated into U.S. dollars). (2) The Company holds 51 unrestricted common shares of Processa Pharmaceuticals, Inc. (NASDAQ:PCSA), which it received as part of a royalty arrangement in 2020.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies
Commitments and Contingencies	6. Commitments and Contingencies Oregon Health & Science University Agreement On February 20, 2013, we 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 ® On May 18, 2015, we 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 ® 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 ® ® ® 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 sought to add allegations stemming from the receipt of a second CRL following our resubmission of our NDA for PEDMARK ® ® 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. ® ® ® On June 23, 2022, lead plaintiff filed an amended complaint. The amended complaint asserted the same putative class period from May 28, 2021 through November 28, 2021, was brought against the same defendants and made 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 ® Hope Medical Enterprises, Inc. Inter Partes Review Challenges On October 29, 2021, Hope Medical Enterprises, Inc. (“Hope”) filed a Petition for inter partes review (IPR2022-00123) with the Patent Trial and Appeal Board (“PTAB”) of the USPTO to invalidate U.S. Patent No. 10,596,190 (the “‘190 Patent”), which is exclusively in-licensed from Oregon Health & Science University (“OHSU”) and relates to a method of using PEDMARK ® ​ On October 29, 2021, Hope Medical Enterprises, Inc. (“Hope”) filed a Petition for inter partes review (IPR2022-00125) to invalidate our wholly owned U.S. Patent No. 10,792,363 (the “’363 Patent”), which relates to an anhydrous form of STS and its method of manufacture, which is the active pharmaceutical ingredient in the PEDMARK ® The USPTO has now granted three additional U.S. patents that cover the PEDMARK ® ® ® ® ® CIPLA ANDA Litigation On December 1, 2022, we received a letter dated November 30, 2022, notifying us that CIPLA Ltd. and CIPLA USA (“CIPLA”) submitted to the FDA an ANDA (ANDA No. 218028) for a generic version of PEDMARK ® ® ® Under the Food and Drug Cosmetic Act, as amended by the Drug Price Competition and Patent Term Restoration Act of 1984, as amended, after receipt of a valid Paragraph IV notice, the Company may bring a patent infringement suit in a federal district court against CIPLA within 45 days from the receipt of the Notice Letter and if such a suit is commenced within the 45-day period, the Company is entitled to a 30 month stay on the FDA’s ability to give final approval to any proposed products that reference PEDMARK ® ® On January 10, 2023, we filed suit against the CIPLA entities in the United States District Court for the District of New Jersey (Case No. 2:23-cv-00123), for infringement of the ‘190 Patent, the ‘728 Patent, and the ‘984 Patent. On April 20, 2023, we filed an Amended Complaint to assert infringement of the ‘728 patent and the ‘984 Patent. On April 4, 2023, we were granted US 11,617,793 Patent (the “’793 Patent”) covering the formulation of the PEDMARK ® PEDMARQSI TM ® Executive Severance In the event of Mr. Raykov's termination with the Company other than for cause, the Company will be obligated to pay him a one -time severance payment equal to twelve months of salary (currently $585 ). In the event of Mr. Andrade’s termination with the Company other than for cause, the Company will be obligated to pay him a one -time severance payment equal to six months of salary (currently $212 ). Leases The Company has an operating lease in Research Triangle Park, North Carolina utilizing a 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 terminated on July 31, 2020, thereafter the lease has been continuing on a month-to-month basis with either party being able to terminate the agreement by providing one months’ advance written notice of termination. ​ On August 1, 2023, the Company entered into a second Office Service Agreement (the “Second Office Service Agreement”) with Regus to lease office space in Dublin, Ireland. Per the terms of the Second Office Service Agreement, the monthly rent payments are $2. The Company was required to pay a security deposit of $5, which is the equivalent of two months rent. The Second Office Service Agreement commenced on August 1, 2023 and terminates on January 31, 2025, 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. ​ The Second Office Service Agreement does not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring the operating lease liability. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. The Company uses an incremental borrowing rate consisting of the current prime rate plus 150 basis points for operating leases that commenced after August 2023. The depreciable lives of operating leases and leasehold improvements are limited by the expected lease term. ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2023 ​ ​ ​ ​ ​ ​ Remaining lease terms (in months) ​ 16 ​ Discount rate ​ 10 % ​ ​ ​ ​ Maturities of lease liabilities as of September 30, 2023 were as follows (in thousands): ​ ​ ​ Year Ending December 31, ​ ​ ​ 2023 (remaining three months) ​ $ 6 ​ 2024 ​ ​ 23 ​ 2025 ​ ​ 2 ​ ​ ​ ​ 31 ​ Less imputed interest ​ ​ 2 ​ Total lease liabilities ​ $ 29 ​ ​ ​ ​ ​ ​ Current operating lease liabilities ​ $ 21 ​ Non-current operating lease liabilities ​ ​ 8 ​ Total lease liabilities ​ $ 29 ​ ​

Term Loans

Term Loans	9 Months Ended
	Sep. 30, 2023
Term Loans
Term Loans	7. Term Loans On August 1, 2022, the Company entered into the SPA with the Investor in connection with the issuance of up to $45,000 of Notes, issuable in multiple tranches. On August 19, 2022, the Company closed 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 Notes become due on the maturity date, which is August 19, 2027. On September 23, 2022, the Company closed 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 or more tranches of $10,000 upon mutual agreement of the Company and the Investor. 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 was payable under the SPA. Half half share Cash interest on outstanding principal shall accrue at a rate of prime, plus 4.5% per annum, from the date of funding (12.75% at September 30, 2023 and 12% as of December 31, 2022). Cash interest is due on the first business day of each calendar quarter (“Interest Date”). In addition to cash interest, payment-in-kind (“PIK”) interest will commence on funding date and accrue at a rate of 3.5% per annum. 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 Company has accrued $0.71 in PIK interest and has classified the PIK interest in long-term liabilities. The Notes are convertible into fully paid, non-assessable shares of the Company’s common shares at any point after their issuance dates and before the maturity date. Any amount of the Notes may be converted into the Company’s 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. Provisions of the SPA create legal, valid and enforceable liens on, and security interests in, all of the Company’s and each of its subsidiaries assets. Aggregate annual payments due on the SPA as of September 30, 2023 are as follows (in thousands): ​ ​ ​ ​ ​ Years Ending December 31, ​ Amount 2023 $ — 2024 ​ — 2025 ​ ​ — 2026 ​ ​ — 2027 ​ ​ 25,000 Payment in kind interest ​ ​ 937 Total future payments ​ ​ 25,937 Less: unamortized debt discount ​ ​ (298) Total term loan, net of debt discount ​ $ 25,639 ​ 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 of $175 were paid in cash for legal fees and to the Investor in 2022 and warrants valued at $441 were granted to the Investor to secure access to the SPA. These amounts were capitalized and are being amortized over the access period of the SPA. Upon closing on the First Closing Note and the Second Closing Note, 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 life of the SPA.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2023
Subsequent Events
Subsequent Events	8. Subsequent Events Management has evaluated subsequent events through the date of this filing and concluded there are no events of significance which require disclosure .

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with US 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 US GAAP for annual financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited condensed 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, 2022. 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, 2022. 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, 2023, 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 US 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 consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates include product sales discounts and allowances, allowance against trade receivables, measurement of stock-based compensation and estimates of the Company’s capital requirement over the next twelve months from the date of issuance of the consolidated financial statements. Actual results could differ from those estimates.
Segment and Geographic Information	Segment and Geographic Information Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment principally in the United States. As of September 30, 2023, the Company had an operating lease in Ireland. This is the only asset located outside of the United States.
Stock-Based Compensation	Stock-Based Compensation Under the Company’s stock-based compensation programs, the Company periodically grants stock options and restricted stock units to employees, directors, and consultants. The fair value of each award is recognized in the Company’s statements of operations over the requisite service period for such award. ​ The Company uses the Black-Scholes option pricing model to value stock option awards without market conditions, which requires the Company to make certain assumptions regarding the expected volatility of its common stock price, the expected term of the option grants, the risk-free interest rate and the dividend yield with respect to its common stock. The Company calculates volatility using its historical stock price data. Due to the lack of the Company’s own historical data, the Company elected to use the “simplified” method for “plain vanilla” options to estimate the expected term of the Company’s stock option grants. Under this approach, the weighted-average expected life is presumed to be the average of the vesting term and the contractual term of the option. The risk-free interest rate used for each grant is based on the United States Treasury yield curve in effect at the time of grant for instruments with a similar expected life. The Company utilizes a dividend yield of zero based on the fact that the Company has never paid cash dividends and, at present, has no intention to pay cash dividends.
Inventory	Inventory Inventories are valued under a standard costing methodology on a first-in, first-out basis and are stated at the lower of cost or net realizable value. The Company capitalizes inventory costs related to products to be sold in the ordinary course of business. The Company makes a determination of capitalizing inventory costs for a product based on, among other factors, information regarding safety, efficacy and expectations relating to commercial sales and recoverability of costs. Capitalized costs of inventories mainly include third party manufacturing, logistics and distribution costs. The Company assesses the recoverability of inventory each reporting period to determine any write down to net realizable value resulting from excess or obsolete inventories. The manufacturing costs for PEDMARK ® ®
New Accounting Pronouncements	New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates on certain types of financial instruments, including trade receivables. In addition, new disclosures are required. The ASU, as subsequently amended, is effective for the Company for fiscal years beginning after December 15, 2022, as the Company is a smaller reporting company as defined in Item 10(f)(1) of Regulation S-K. We adopted ASU 2016-13 on January 1, 2023. Based on the composition of the Company’s accounts receivable, the adoption of this standard did not have a material impact on the Company’s consolidated financial statements or disclosures. Specifically, the Company’s estimate of expected credit losses as of September 30, 2023, using its expected credit loss evaluation process, resulted in no adjustments to the provision for credit losses and no cumulative effect adjustment to accumulated deficit on the adoption date of the standard. ​ In July 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-03 to amend various SEC paragraphs in the Accounting Standards Codification to primarily reflect the issuance of SEC Staff Accounting Bulletin No. 120. ASU No. 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement-Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation-Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280-General Revision of Regulation S-X: Income or Loss Applicable to Common Stock.” ASU 2023-03 amends the ASC for SEC updates pursuant to SEC Staff Accounting Bulletin No. 120; SEC Staff Announcement at the March 24, 2022 Emerging Issues Task Force (“EITF”) Meeting; and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280 - General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. These updates were immediately effective and did not have a material impact on our financial statements. ​ In October 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-06 to amend various SEC paragraphs in the Accounting Standards Codification to primarily reflect SEC Release No. 33-10532, Disclosure Update and Simplification. ASU 2023-06 amends disclosure guidance over an entity’s accounting policy related to derivative instruments, material prior period adjustments upon a change in a reporting entity, earnings-per-share, encumbered assets, unused lines of credit and unfunded commitments, and liquidation preferences of preferred stock. The amendments are effective prospectively on the date each individual amendment is effectively removed from Regulation S-X or Regulation S-K.
Revenue Recognition	Revenue Recognition Under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, the Company recognizes revenue when its customers obtain control of promised goods or services, in an amount that reflects the consideration which the Company determines it expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies its performance obligation(s). As part of the accounting for these arrangements, the Company must make significant judgments, including identifying performance obligations in the contract and estimating the amount of variable consideration to include in the transaction price.
Net Product Revenue	Net Product Revenue On September 20, 2022, the FDA approved PEDMARK ® ® ®
Product Sales Discounts and Allowances	Product Sales Discounts and Allowances The Company records revenues from product sales at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established primarily from discounts, chargebacks, rebates, co-pay assistance, returns and other allowances that are offered within contracts between the Company and its Customers, health care providers, payors and other indirect customers relating to the sales of its products. These reserves are based on the amounts to be claimed on the related sales and are classified as a contra-asset or a current liability. Where appropriate, these estimates take into consideration a range of possible outcomes that are probability-weighted for relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data, forecasted Customer buying and payment patterns, and the Company’s historical experience that will develop over time as PEDMARK ® is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect net product revenues and earnings in the period such variances become known. Chargebacks: Discounts for Prompt Payment: Rebates: ® Co-payment Assistance: Other Customer Credits: The following table summarizes net product revenues for PEDMARK ® ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ ​ September 30, ​ ​ September 30, ​ ​ September 30, ​ ​ September 30, In thousands ​ ​ ​ 2023 ​ ​ 2022 ​ ​ 2023 ​ ​ 2022 Product revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross product revenues ​ ​ $ 6,919 ​ $ — ​ $ 12,525 ​ $ — Discounts and allowances ​ ​ ​ (404) ​ ​ — ​ ​ (1,008) ​ ​ — Net product revenues ​ ​ $ 6,515 ​ $ — ​ $ 11,517 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes the percentage of total product revenues for PEDMARK ® ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ September 30, ​ September 30, Specialty Distributors ​ 2023 ​ 2022 ​ ​ 2023 ​ 2022 ASD ​ 16 % — % ​ 24 % — McKesson ​ 19 ​ — ​ ​ 16 ​ — Subtotal-Specialty Distributors ​ 35 ​ — ​ ​ 40 ​ — Direct Customers ​ 65 ​ — ​ ​ 60 ​ — ​ ​ 100 % — % ​ 100 % — ​ The activities and ending allowance balances for each significant category of discounts and allowances for PEDMARK ® ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Chargebacks, ​ Rebates, Customer ​ ​ ​ ​ ​ Discounts for ​ Fees/Credits ​ ​ ​ ​ ​ Prompt pay and ​ and Co-Pay ​ ​ ​ In thousands ​ Other allowances ​ Assistance ​ Totals Balance at December 31, 2022 ​ $ 71 ​ $ 163 ​ $ 234 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ 116 ​ ​ 117 ​ ​ 233 Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (31) ​ ​ (66) ​ ​ (97) Balance at March 31, 2023 ​ $ 156 ​ $ 214 ​ $ 370 Provision related to sales made in: ​ ​ 246 ​ ​ 148 ​ ​ 394 Current period ​ ​ — ​ ​ — ​ ​ — Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (193) ​ ​ (124) ​ ​ (317) Balance at June 30, 2023 ​ $ 209 ​ $ 238 ​ $ 447 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ 334 ​ ​ 180 ​ ​ 514 Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (307) ​ ​ (71) ​ ​ (378) Balance at September 30, 2023 ​ $ 236 ​ $ 347 ​ $ 583 ​ The allowances for chargebacks, fees due to Customers, rebates and discounts for prompt payment are recorded as a contra-asset to accounts receivable, while Medicaid rebates and return allowances are in accrued liabilities in the accompanying Condensed Consolidated Balance Sheets.
Trade Receivables	Trade Receivables The Company records gross trade characteristics of such a Customer. The Customers are mainly specialty distributors, and accordingly, the Company considers the risk of potential credit losses to be low. It is the policy of the Company to reserve 1% of its net sales to non-specialty distributors, as such the Company had an immaterial balance in allowance for doubtful accounts as of September 30, 2023.
Cost of Products Sold	Cost of Products Sold Cost of products sold is related to the Company's product revenues for PEDMARK ® ® ® ® ® ®
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, 2023, the Company had $12,399 in cash, savings and money market accounts ($23,774 at December 31, 2022). At September 30, 2023, the Company held $2,007 in cash of which $488 (as presented in U.S. dollars) was in Canadian dollars ($34 at December 31, 2022 as presented in U.S. dollars). At September 30, 2023, the Company held $10,392 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.
Financial Instruments	Financial Instruments Financial instruments recognized on the balance sheets at September 30, 2023 and December 31, 2022 consist of cash and cash equivalents, accounts receivable, accounts payable and term loans, the carrying values of which approximate fair value due to their relatively short time to maturity or interest rates that approximate market interest rates. 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. Until the company is cash flow positive from operations, the Company has chosen to avoid investments of a trading or speculative nature.
Research and Development Costs and Investment Tax Credits	Research and Development Costs and Investment Tax Credits Research costs, including employee compensation, laboratory fees, lab supplies, and research and testing performed under contract by third parties, are expensed as incurred. Development costs, including drug substance costs, clinical study expenses and regulatory expenses are expensed as incurred. Investment tax credits, which are earned as a result of qualifying research and development expenditures, are recognized when the expenditures are made and their realization is reasonably assured. They are applied to reduce related capital costs and research and development expenses in the year recognized.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk primarily consist of cash and cash equivalents, and instrument. The Company’s trade receivables include amounts billed to Customers for product sales of PEDMARK ®
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates. The Company has deferred tax assets, which are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. As of September 30, 2023, we maintained a full valuation allowance against our deferred tax assets. The provisions of the FASB ASC 740-10, Uncertainty in Income Taxes, address the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position.
Foreign Currency Translation	Foreign Currency Transactions The U.S. dollar is the functional currency for the Company’s consolidated operations. All gains and losses from currency transactions are included in results of operations.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2023
Significant Accounting Policies
Schedule of PEDMARK Revenues, Net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ ​ September 30, ​ ​ September 30, ​ ​ September 30, ​ ​ September 30, In thousands ​ ​ ​ 2023 ​ ​ 2022 ​ ​ 2023 ​ ​ 2022 Product revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross product revenues ​ ​ $ 6,919 ​ $ — ​ $ 12,525 ​ $ — Discounts and allowances ​ ​ ​ (404) ​ ​ — ​ ​ (1,008) ​ ​ — Net product revenues ​ ​ $ 6,515 ​ $ — ​ $ 11,517 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of PEDMARK Revenues, Significant Customers	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ September 30, ​ September 30, Specialty Distributors ​ 2023 ​ 2022 ​ ​ 2023 ​ 2022 ASD ​ 16 % — % ​ 24 % — McKesson ​ 19 ​ — ​ ​ 16 ​ — Subtotal-Specialty Distributors ​ 35 ​ — ​ ​ 40 ​ — Direct Customers ​ 65 ​ — ​ ​ 60 ​ — ​ ​ 100 % — % ​ 100 % —
Schedule of PEDMARK Revenues, Discounts and Allowances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Chargebacks, ​ Rebates, Customer ​ ​ ​ ​ ​ Discounts for ​ Fees/Credits ​ ​ ​ ​ ​ Prompt pay and ​ and Co-Pay ​ ​ ​ In thousands ​ Other allowances ​ Assistance ​ Totals Balance at December 31, 2022 ​ $ 71 ​ $ 163 ​ $ 234 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ 116 ​ ​ 117 ​ ​ 233 Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (31) ​ ​ (66) ​ ​ (97) Balance at March 31, 2023 ​ $ 156 ​ $ 214 ​ $ 370 Provision related to sales made in: ​ ​ 246 ​ ​ 148 ​ ​ 394 Current period ​ ​ — ​ ​ — ​ ​ — Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (193) ​ ​ (124) ​ ​ (317) Balance at June 30, 2023 ​ $ 209 ​ $ 238 ​ $ 447 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ 334 ​ ​ 180 ​ ​ 514 Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ (307) ​ ​ (71) ​ ​ (378) Balance at September 30, 2023 ​ $ 236 ​ $ 347 ​ $ 583

Loss per Share (Tables)

Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Loss per Share
Schedule of Antidilutive Securities Excluded from Net Loss Per Share	​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2023 2022 Options to purchase common shares 5,005 ​ 4,466 Warrants to purchase common shares 150 ​ 150 ​

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2023
Stockholders' Equity
Schedule of Share-Based Compensation, Option Expense Recognized	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ September 30, ​ September 30, ​ September 30, ​ September 30, ​ 2023 ​ 2022 2023 ​ 2022 Contractor options expense recognized ​ $ — ​ $ 34 ​ $ — ​ $ 103 Employee options expense recognized ​ 865 ​ 1,853 ​ ​ 4,497 ​ ​ 3,260 Total option expense recognized ​ $ 865 ​ $ 1,887 ​ $ 4,497 ​ $ 3,363
Schedule of Share-Based Compensation, Stock Option Activity	​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Weighted-Average Options ​ Options (thousands) Exercise Price $USD Outstanding at December 31, 2022 ​ 4,539 ​ $ 5.13 Granted ​ 580 ​ 8.12 Exercised ​ (49) ​ 4.36 Forfeited ​ (38) ​ ​ 6.98 Outstanding at March 31, 2023 ​ 5,032 ​ ​ 5.43 Granted ​ 125 ​ ​ 8.80 Exercised ​ (95) ​ ​ 5.60 Forfeited ​ (175) ​ ​ 7.51 Outstanding at June 30, 2023 ​ 4,887 ​ $ 5.77 Granted ​ 370 ​ ​ 7.88 Exercised ​ (92) ​ ​ 2.34 Forfeited ​ (160) ​ ​ 7.35 Outstanding at September 30, 2023 ​ 5,005 ​ $ 5.94
Schedule of Share-Based Compensation, Stock Option Volatility Measurements	​ ​ ​ ​ ​ ​ Valuation ​ ​ Assumptions Black-Scholes Model Assumptions ​ September 30, 2023 Expected dividend 0.00% Risk free rate 3.56 - 5.12% Expected volatility ​ 49 - 77% Expected life ​
Schedule of Share-Based Compensation, Restricted Share Unit Activity	​ ​ ​ ​ ​ ​ Number of ​ ​ Restricted Share RSUs Current Year ​ Units (thousands) Outstanding at December 31, 2022 35 Awarded 264 Released ​ (1) Outstanding at March 31, 2023 ​ 298 Awarded ​ 98 Released ​ (3) Forfeited ​ (17) Outstanding at June 30, 2023 ​ 376 Awarded ​ — Released ​ (32) Forfeited ​ (84) Outstanding at September 30, 2023 ​ 260

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Measurements
Schedule of Assets/Liabilities Measured at Fair Value on Recurring Basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at September 30, 2023 and December 31, 2022 ​ ​ (in thousands) ​ ​ Quoted Price in Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Market for Identical ​ Significant Other Significant ​ ​ ​ ​ ​ ​ Instruments ​ Observable Inputs Unobservable Inputs ​ ​ ​ ​ ​ ​ Level 1 ​ Level 2 Level 3 ​ Total ​ ​ 2023 ​ 2022 ​ 2023 2022 2023 2022 2023 2022 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 2,007 (1) $ 307 (1) $ 10,392 $ 23,467 $ — $ — $ 12,399 $ 23,774 Processa common shares ​ $ 13 (2) $ 56 (2) $ — $ — $ — $ — $ 13 $ 56 ​ (1) The Company held approximately $2,007 in cash as of September 30, 2023, of which approximately $488 was in Canadian funds (translated into U.S. dollars). As of December 31, 2022, the Company held approximately $307 in cash of which approximately $33 was in Canadian funds (translated into U.S. dollars). (2) The Company holds 51 unrestricted common shares of Processa Pharmaceuticals, Inc. (NASDAQ:PCSA), which it received as part of a royalty arrangement in 2020.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies
Schedule of components of operating lease liability	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2023 ​ ​ ​ ​ ​ ​ Remaining lease terms (in months) ​ 16 ​ Discount rate ​ 10 % ​ ​ ​ ​ Maturities of lease liabilities as of September 30, 2023 were as follows (in thousands): ​ ​ ​ Year Ending December 31, ​ ​ ​ 2023 (remaining three months) ​ $ 6 ​ 2024 ​ ​ 23 ​ 2025 ​ ​ 2 ​ ​ ​ ​ 31 ​ Less imputed interest ​ ​ 2 ​ Total lease liabilities ​ $ 29 ​ ​ ​ ​ ​ ​ Current operating lease liabilities ​ $ 21 ​ Non-current operating lease liabilities ​ ​ 8 ​ Total lease liabilities ​ $ 29 ​ ​

Term Loans (Tables)

Term Loans (Tables)	9 Months Ended
	Sep. 30, 2023
Term Loans
Schedule of Aggregate Annual Term-Loan Payments	​ ​ ​ ​ ​ Years Ending December 31, ​ Amount 2023 $ — 2024 ​ — 2025 ​ ​ — 2026 ​ ​ — 2027 ​ ​ 25,000 Payment in kind interest ​ ​ 937 Total future payments ​ ​ 25,937 Less: unamortized debt discount ​ ​ (298) Total term loan, net of debt discount ​ $ 25,639

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. 30, 2023 USD ($) $ / shares	Sep. 23, 2022 USD ($) $ / shares	Aug. 19, 2022 USD ($) $ / shares	Sep. 30, 2023 USD ($) $ / shares	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Aug. 01, 2022 USD ($)
Nature of Business and Going Concern [Line Items]
Loss from operations				$ 1,017			$ 7,899			$ 10,953	$ 16,454
Net loss				1,867	$ 5,444	$ 6,052	$ 8,089	$ 5,072	$ 3,696	13,363	16,857
Accumulated deficit	$ (216,563)			(216,563)						(216,563)		$ (203,200)
Cash flows from operating activities										(12,283)	$ (11,256)
Petrichor Financing | Minimum
Nature of Business and Going Concern [Line Items]
Borrowings, face amount	$ 10,000			10,000						$ 10,000
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%									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
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
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes
Nature of Business and Going Concern [Line Items]
Borrowings, face amount	$ 10,000			10,000						$ 10,000
Remaining borrowing capacity	$ 20,000			$ 20,000						$ 20,000
Initial conversion price | $ / shares	$ 7.89			$ 7.89						$ 7.89
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes | Minimum
Nature of Business and Going Concern [Line Items]
Number of loan tranches for remaining borrowing capacity	1			1						1
Petrichor Financing | Securities Purchase Agreements | First Closing Warrant
Nature of Business and Going Concern [Line Items]
Commitment fees payable in warrants	50%
Common shares available through issuance of warrants | shares										50
Exercise price of warrants issued | $ / shares	$ 8.11
Petrichor Financing | Securities Purchase Agreements | Second Closing Warrant
Nature of Business and Going Concern [Line Items]
Common shares available through issuance of warrants | shares										50
Commitment fees payable in cash or warrants	50%
Exercise price of warrants issued | $ / shares	$ 8.11
Exercise term of warrants	5 years
Bridge Bank | Securities Purchase Agreements | Bridge Bank Term Loan
Nature of Business and Going Concern [Line Items]
Repayment of term loan			$ 5,000

Significant Accounting Polici_4

Significant Accounting Policies - Additional Information (Details) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) shares	Sep. 30, 2022 shares	Dec. 31, 2022 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of Operating Segments	1
Discounts for prompt payment	0.65%
Percentage of prompt payment discounts expected to pay out	100%
Cash | $	$ 2,007
Money market investments | $	10,392
FDIC insured amount | $	$ 250
Warrants outstanding | shares	150
Cash, Savings and Money Market Accounts
Summary Of Significant Accounting Policies [Line Items]
Cash | $	$ 12,399		$ 23,774
Cash denoted in Canadian dollars
Summary Of Significant Accounting Policies [Line Items]
Cash | $	$ 488		$ 34
Employee Stock Option [Member]
Summary Of Significant Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares	5,005	4,466
Warrants
Summary Of Significant Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares	150	150
Warrants
Summary Of Significant Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares	200	40
Common Stock [Member]
Summary Of Significant Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares	5,000	4,300

Significant Accounting Polici_5

Significant Accounting Policies - Revenue recognition (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues	$ 6,515	$ 11,517
PEDMARK
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percentage of royalties		1%
Revenues	$ 6,515	$ 11,517
Processa Pharmaceuticals, Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares to be issued under agreement		51

Significant Accounting Polici_6

Significant Accounting Policies - Product Sales Discounts and Allowances (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
PEDMARK, product sales, net	$ 6,515	$ 11,517
Contribution of revenue percentage denoting significant customers		10%
PEDMARK
Disaggregation of Revenue [Line Items]
Gross product revenues	6,919	$ 12,525
Discounts and allowances	(404)	(1,008)
PEDMARK, product sales, net	$ 6,515	$ 11,517
PEDMARK | Revenue Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	100%	100%
PEDMARK | Revenue Benchmark | Customer Concentration Risk | Subtotal - Specialty Distributors
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	40%	35%
PEDMARK | Revenue Benchmark | Customer Concentration Risk | ASD
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	24%	16%
PEDMARK | Revenue Benchmark | Customer Concentration Risk | McKesson
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	16%	19%
PEDMARK | Revenue Benchmark | Customer Concentration Risk | Direct Customers
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	60%	65%

Significant Accounting Polici_7

Significant Accounting Policies - Product Sales Discounts and Allowances Continued (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Provision for discounts and allowances, beginning balance	$ 447	$ 370	$ 234
Current period	514	394	233
Payments and customer credits issued	(378)	(317)	(97)
Provision for discounts and allowances, ending balance	583	447	370
Chargebacks, Discounts for Prompt pay and Other allowances
Provision for discounts and allowances, beginning balance	209	156	71
Current period	334	246	116
Payments and customer credits issued	(307)	(193)	(31)
Provision for discounts and allowances, ending balance	236	209	156
Rebates, Customer Fees/Credits and Co-pay Assistance
Provision for discounts and allowances, beginning balance	238	214	163
Current period	180	148	117
Payments and customer credits issued	(71)	(124)	(66)
Provision for discounts and allowances, ending balance	$ 347	$ 238	$ 214

Significant Accounting Polici_8

Significant Accounting Policies - Cost of Products Sold (Details) - PEDMARK $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Percentage of royalties	1%
Manufacturing costs capitalized to inventory	$ 1.8
Manufacturing costs capitalized to inventory, raw materials	0.1
Manufacturing costs capitalized to inventory, work-in-process	0.9
Manufacturing costs capitalized to inventory, finished goods	0.8
Manufacturing costs capitalized to inventory, cost of products sold	$ 0.6

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, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net loss	$ (1,867)	$ (5,444)	$ (6,052)	$ (8,089)	$ (5,072)	$ (3,696)	$ (13,363)	$ (16,857)
Denominator:
Weighted-average common shares, basic	26,596			26,108			26,523	26,105
Weighted-average common shares, dilutive	26,596			26,108			26,523	26,105
Basic net loss per common share	$ (0.07)			$ (0.31)			$ (0.50)	$ (0.65)
Diluted net loss per common share	$ (0.07)			$ (0.31)			$ (0.50)	$ (0.65)

Loss per Share - Outstanding Op

Loss per Share - Outstanding Options and Warrants (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,005	4,466
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	150	150

Stockholders' Equity - Warrants

Stockholders' Equity - Warrants to Purchase Common Stock (Details) - $ / shares	9 Months Ended	21 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Class of Warrant or Right [Line Items]
Exercised warrants during period		0
Issued warrants during period		0
Warrants outstanding	150,000	150,000
Common shares issuable upon exercise of outstanding warrants, ending balance	150,000	150,000
Warrants to Purchase Common Stock
Class of Warrant or Right [Line Items]
Weighted Average Remaining Life (years)	4 years 3 months 18 days
Weighted-average exercise price, end of period	$ 7.79	$ 7.79

Stockholders' Equity - Recogniz

Stockholders' Equity - Recognized Contractor and Employee Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Recognized Employee Expense [Line Items]
Stock or Unit Option Plan Expense	$ 865	$ 1,887	$ 4,497	$ 3,363
Contractor Option [Member]
Recognized Employee Expense [Line Items]
Stock or Unit Option Plan Expense		34		103
Employee Stock Option [Member]
Recognized Employee Expense [Line Items]
Stock or Unit Option Plan Expense	$ 865	$ 1,853	$ 4,497	$ 3,260

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Option Activity (Details) - $ / shares shares in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of Options Outstanding at Beginning	4,887	5,032	4,539
Number of Options Granted	370	125	580
Number of Options Exercised	(92)	(95)	(49)
Number of Options Forfeited	(160)	(175)	(38)
Number of Options Outstanding at Ending	5,005	4,887	5,032
Stock Option In Us Dollars [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of Options Outstanding at Ending	5,005
Weighted-average Exercise Price outstanding at Beginning	$ 5.77	$ 5.43	$ 5.13
Weighted-average Exercise Price Granted	7.88	8.80	8.12
Weighted-average Exercise Price Exercised	2.34	5.60	4.36
Weighted-average Exercise Price Forfeited	7.35	7.51	6.98
Weighted-average Exercise Price Outstanding at Ending	$ 5.94	$ 5.77	$ 5.43

Stockholders' Equity - Black Sc

Stockholders' Equity - Black Scholes Option Pricing Model (Details)	9 Months Ended
	Sep. 30, 2023
Expected dividend	0%
Minimum
Risk free rate	3.56%
Expected volatility	49%
Expected life	1 year 6 months
Maximum
Risk free rate	5.12%
Expected volatility	77%
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, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
US Denominated RSU's
RSU's released	(32)
RSU's forfeited	(84)			(101)
US Denominated RSU's
US Denominated RSU's
Unvested RSUs, beginning of period	376	298	35	35
RSU's awarded		98	(264)
RSU's released	(32)	(3)	(1)	(36)
RSU's forfeited	(84)	(17)
Unvested RSUs, end of period	260	376	298	260
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

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Stockholders Equity Note [Line Items]
Common stock, no par value	$ 0			$ 0		$ 0
Options outstanding	5,005,000	4,887,000	5,032,000	5,005,000		4,539,000
Exercise of options (in shares)	92,000	95,000	49,000
Number of stock options forfeited (in shares)	160,000	175,000	38,000
Number of Options Granted	370,000	125,000	580,000
Proceeds from issuance of stock options				$ 969	$ 249
Equity Incentive Plan
Stockholders Equity Note [Line Items]
Shares issuable under Stock Option Plan, as percent of shares outstanding				25%
Shares issuable under Stock Option Plan	6,658			6,658
Vesting period				3 years
Expiration term				10 years
Stock Option In Us Dollars [Member]
Stockholders Equity Note [Line Items]
Options outstanding	5,005,000			5,005,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	3,932,000			3,932,000

Fair Value Measurements - Asset

Fair Value Measurements - Assets/Liabilities Measured at Fair Value (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash and cash equivalents	$ 12,399	$ 23,774
Processa common shares	13	56
Quoted Price in Active Markets for Identical Instruments Level 1
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash and cash equivalents	2,007	307
Processa common shares	13	56
Significant Other Observable Inputs Level 2
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash and cash equivalents	$ 10,392	$ 23,467
Processa Pharmaceuticals, Inc
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Shares to be issued under agreement	51

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) $ in Thousands, $ in Thousands	Sep. 30, 2023 USD ($)	Sep. 30, 2023 CAD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CAD ($)
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]
Cash	$ 2,007
Quoted Price in Active Markets for Identical Instruments Level 1
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]
Cash	$ 2,007	$ 488	$ 307	$ 33

Commitments and Contingencies_2

Commitments and Contingencies (Details) € in Thousands				9 Months Ended
	Aug. 01, 2023 EUR (€)	Jan. 27, 2020 USD ($)	May 18, 2015	Sep. 30, 2023 USD ($)
Oregon Health & Science University Agreement
Licensing term OHSU agreement			8 years
Days notice required to terminate OHSU agreement			45 days
Days notice required by Fennec to terminate OHSU agreement			60 days
Lease Contingencies | Triangle Park, North Carolina
Monthly lease expense				$ 400,000
Operating lease, number of scheduled payment increases				0
Operating lease, days notice required to terminate agreement				30 days
Operating lease, penalties and contingent payments payable				$ 0
Lease Contingencies | Hoboken, New Jersey | Office Service Agreement
Monthly lease expense		$ 1,000
Security deposit		$ 2,000
Lease Contingencies | Dublin, Ireland
Monthly lease expense | €	€ 2
Security deposit | €	€ 5
CIPLA ANDA Litigation
Days following receipt of Notice Letter to file patent infringement suit				45 days
Duration of FDA's ability to give final approval to proposed products that reference PEDMARK				30 months
PEDMARK's Orphan Drug Exclusivity period				7 years
PEDMARK's exclusivity period under PUMA				10 years
Executive Severance | Rostislav Raykov
Severance payments due				$ 585,000
Number of severance payments				1
Severance payment term				P12M
Executive Severance | Robert Andrade
Severance payments due				$ 212,000
Number of severance payments				1
Severance payment term				P6M

Commitments and Contingencies -

Commitments and Contingencies - Lease Agreements (Details) € in Thousands, $ in Thousands	Aug. 01, 2023 EUR (€)	Sep. 30, 2023 USD ($)
Current operating lease liabilities		$ 21
Non-current operating lease liabilities		$ 7
Lease Contingencies | Dublin, Ireland
Monthly lease expense | €	€ 2
Security deposit | €	€ 5
Remaining lease terms (in months)		16 months
Discount rate		10%
2023		$ 6
2024		23
2025		2
lease liabilities to be paid before imputed interest		31
lease liabilities imputed interest		2
Total lease liabilities		29
Current operating lease liabilities		21
Non-current operating lease liabilities		8
Total lease liabilities		$ 29

Term Loans (Details)

Term Loans (Details) $ / shares in Units, $ in Thousands					9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($)	Sep. 23, 2022 USD ($) $ / shares	Aug. 19, 2022 USD ($) $ / shares	Sep. 30, 2023 USD ($) $ / shares shares	Aug. 01, 2022 USD ($)
Term Loans [Line Items]
Debt discount	$ (298)	$ (361)			$ (298)
Petrichor Financing | Minimum
Term Loans [Line Items]
Borrowings, face amount	$ 10,000				$ 10,000
Petrichor Financing | Securities Purchase Agreements | Convertible Note Borrowings
Term Loans [Line Items]
Maximum borrowing capacity						$ 45,000
Commitment fee percentage	2%				2%
Debt issuance costs	$ 175				$ 175
Debt discount	(314)				(314)
Fair value warrants	$ 441				$ 441
Cash interest accrual rate over Prime	12.75%	12%			4.50%
Accrual rate, PIK interest					3.50%
Accrued Paid-in-Kind Interest	$ 710				$ 710
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
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
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes
Term Loans [Line Items]
Borrowings, face amount	10,000				10,000
Remaining borrowing capacity	$ 20,000				$ 20,000
Initial conversion price | $ / shares	$ 7.89				$ 7.89
Petrichor Financing | Securities Purchase Agreements | Subsequent Closing Notes | Minimum
Term Loans [Line Items]
Number of loan tranches for remaining borrowing capacity	1				1
Petrichor Financing | Securities Purchase Agreements | First Closing Warrant
Term Loans [Line Items]
Commitment fees payable in warrants	50%
Common shares available through issuance of warrants | shares					50
Exercise price of warrants issued | $ / shares	$ 8.11
Petrichor Financing | Securities Purchase Agreements | Second Closing Warrant
Term Loans [Line Items]
Common shares available through issuance of warrants | shares					50
Commitment fees payable in cash or warrants	50%
Exercise price of warrants issued | $ / shares	$ 8.11
Exercise term of warrants	5 years
Bridge Bank | Securities Purchase Agreements | 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, 2023	Dec. 31, 2022
Aggregate annual payments due on Term Loan
2027	$ 25,000
Payment of in-kind interest	937
Total future payments	25,937
Less: unamortized debt discount	(298)	$ (361)
Total term loan, net of discount	$ 25,639

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (1,867)	$ (5,444)	$ (6,052)	$ (8,089)	$ (5,072)	$ (3,696)	$ (13,363)	$ (16,857)