Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions for Form 10 X. not ’s Form 10 March 23, 2017. |
Reclassification, Policy [Policy Text Block] | Reclassifications Prior period amounts in the accompanying consolidated balance sheets have been reclassified to conform to current period presentation. The reclassifications did not ’ equity. Prior period amounts in the accompanying consolidated statements of operations and comprehensive loss have also been reclassified to conform to current period presentation. The reclassifications did not Additionally, prior period amounts in the accompanying consolidated statements of cash flow have also been reclassified to conform to current period presentation. The reclassifications did not |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, DermaBay, Inc., as applicable. DermaBay, Inc. was dissolved by the Company in April 2016. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, estimated amortization periods for payments received from product development and license agreements as they relate to revenue recognition, assumptions for valuing options and warrants, and income taxes. Actual results could differ from those estimates. |
Unaudited Interim Financial Information, Policy [Policy Text Block] | Unaudited Interim Financial Information The accompanying interim condensed consolidated financial statements and related disclosures are unaudited, have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not not |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly-liquid instruments with a stated maturity of three roximates fair value. As of September 30, 2017, December 31, 2016, two |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk and Major Partners Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits of cash and cash equivalents with two Deposits in these banks may not During the nine months ended September 30, 2017 2016, three During the three nine months ended September 30, 2017 2016, 10% Three Months Ended Nine Months Ended September 30, September 30, Major distribution or collaboration partner 2017 2016 2017 2016 Distributer A 25 % 21 % 24 % 18 % Distributer B 24 % 21 % 24 % 19 % Distributer C 23 % 16 % 21 % 15 % As of September 30, 2017 December 31, 2016, 10% Major distribution partner September 30, 2017 December 31, 2016 Distributer A 30 % 22 % Distributer B 22 % 24 % Distributer C 31 % 31 % The Company relies on two not third may not ’s needs with respect to timing, quantity or quality. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Assets and Liabilities Financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments. Our warrant liability is carried at fair value. The Company measures the fair value of financial assets and liabilities based on GAAP guidance, which defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. Under GAAP, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is also established, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three may Level 1 – quoted prices in active markets for identical assets or liabilities; Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable; and Level 3 – inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Doubtful Accounts The Company charges bad debt expense and records an allowance for doubtful accounts when management believes it to be unlikely that specific invoices will be collected. Management identifies amounts due that are in dispute and it believes are unli kely to be collected. As of September 30, 2017 December 31, 2016, $28 $10 120 |
Inventory, Policy [Policy Text Block] | Inventory Inventory is comprised of ( 1 2 3 September 30, 2017 December 31, 2016, $139 $196 Inventory is stated at the lower of cost or estimated net realizable value determined by the first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets of five seven three seven seven The costs of normal maintenance, repairs, and minor replacements are charged to operations when incurred. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with GAAP, which requires that companies consider whether events or changes in facts and circumstances, both internally and externally, may first 2016, no not not $91 velopment expense during the nine September 30, 2016. no nine September 30, 2017. not |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) Accounting Standards Codification (“ASC”) 220, Comprehensive Income |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company sells products through a limited number of distributors and via its webstore. The Company generally records product sales upon shipment to the final customer for its webstore sales and upon shipment from its distributor to the final customers for its major distribution partners. The Company recognizes product revenue when: (i) persuasive evidence that a sale arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue from sales transactions where the customer has the right to return the product is recognized at the time of sale only if: (i) the Company ’s price to the customer is substantially fixed or determinable at the date of sale, (ii) the customer has paid the Company, or the customer is obligated to pay the Company and the obligation is not not not Product Revenue Allowances Product revenue is recognized net of cash consideration paid to our customers and wholesalers, for services rendered by the wholesalers in accordance with the wholesalers’ agreements, and include a fixed rate per prescription shipped and monthly program management and data fees. These services are not Other product revenue allowances include certain prompt pay discounts and allowances offered to our customers, program rebates and chargebacks. These product revenue allowances are recognized as a reduction of revenue or as a selling expense at the later of the date at which the related revenue is recognized or the date at which the allowance is offered. Calculating certain of these items involves estimates and judgments based on sales or invoice data, contractual terms, utilization rates, new information regarding changes in these programs ’ regulations and guidelines that would impact the amount of the actual rebates or chargebacks. We review the adequacy of product revenue allowances on a quarterly basis. Amounts accrued for product revenue allowances are adjusted when trends or significant events indicate that adjustment is appropriate and to reflect actual experience. Other Revenue License and collaboration revenue is primarily generated through agreements with strategic partners for the development and commercialization of the Company ’s product candidates. The terms of the agreements typically include non-refundable upfront fees, funding of research and development activities, and payments based upon achievement of certain milestones and royalties on net product sales. In accordance with authoritative guidance, the Company analyzes its multiple element arrangements to determine whether the elements can be separated. The Company performs its analysis at the inception of the arrangement and as each product or service is delivered. If a product or service is not |
Cost of Sales, Policy [Policy Text Block] | Cost of Goods Sold Cost of goods sold includes third |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs The Company charges research and development costs to expense as incurred. These costs include salaries and benefits for research and development personnel, costs associated with clinical trials managed by contract research organizations, and other costs associated with research, development and regulatory activities. Research and development costs may ’s research, clinical and development activities are often performed under agreements it enters with external service providers. The Company estimates and accrues the costs incurred under these agreements based on factors such as milestones achieved, patient enrollment, estimates of work performed, and historical data for similar arrangements. As actual costs are incurred, the Company adjusts its accruals. Historically, the Company’s accruals have been consistent with management’s estimates and no may |
Legal Costs, Policy [Policy Text Block] | Patent Costs Patent costs, including legal expenses, are expensed in the period in which they are incurred. Patent expenses are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of Accounting Standards Update (“ASU”) No. 2014 12, Compensation-Stock Compensation (Topic 718 12 Stock-based compensation arrangements with non-employees are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. Non-employee stock-based compensation charges are amortized over the vesting period on a straight-line basis. For stock options granted to non-employees, the fair value of the stock options is estimated using a Black-Scholes-Merton option pricing model. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not not |
Warrant Liabilities [Policy Text Block] | Common Stock Warrant Liability For warrants that are issued or modified and there is a deemed possibility that the Company may ’s common stock eligible for purchase thereunder in the event that the Company subsequently issues equity instruments at a price lower than the exercise price of the warrants, the Company records the fair value of the issued or modified warrants as a liability at each balance sheet date and records changes in the estimated fair value as a non-cash gain or loss on the consolidated statements of operations and comprehensive loss. The fair values of these warrants have been determined using the Binomial Lattice (“Lattice”) valuation model, which provides for assumptions regarding volatility, call and put features and risk-free interest rates within the total period to maturity. These values are subject to a significant degree of the Company’s judgment. For additional information regarding the Company’s outstanding warrants, see Note 10 |
Earnings Per Share, Policy [Policy Text Block] | Net (Loss) per Share The Company computes net (loss) per share by presenting both basic and diluted (loss) per share (“EPS”). Basic EPS is computed by dividing net (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period, including stock options and warrants, using the treasury stock method, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Potentially dilutive common share equivalents are excluded from the diluted EPS computation in net loss periods since their effect would be anti-dilutive. During the three nine September 30, 2017 2016, no Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2017 2016 2017 2016 Net loss $ (2,447 ) $ (3,736 ) $ (8,196 ) $ (11,503 ) Basic Shares 15,324 10,913 15,306 7,481 Add: shares issued upon assumed exercise of stock options and warrants — — — — Diluted shares 15,324 10,913 15,306 7,481 Basic and diluted net loss per share $ (0.16 ) $ (0.34 ) $ (0.54 ) $ (1.54 ) The following outstanding stock options and stock warrants were excluded from the diluted net loss per share computation, as their effect would have been anti-dilutive: As of September 30, (in thousands) 2017 2016 Period end stock options to purchase common stock 2,893 1,502 Period end common stock warrants 544 929 3,437 2,431 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, FASB”) issued ASU No. 2014 09, Revenue from Contracts with Customers 606 August 2015 March, April, May December 2016, may 2014 09 December 15, 2017 , and permits companies to adopt the standard early. The Company plans to adopt the new standard effective January 1, 2018 , with a modified retrospective transition applying the new guidance to the most current period presented with the cumulative effect of changes reflected in the opening balance of retained earnings in the most current period presented. While the Company is still in the process of assessing the potential impact of this new standard on its consolidated financial statements, the Company has identified transactions which, under current guidance are recognized upon shipment from its distributor to the final customers for its major distribution partners will be recognized upon transfer of control to its major distribution partners at the amount of consideration that the Company expects to be entitled to. As a result, the Company will record contract liabilities for the invoiced amounts that are estimated to be subject to significant reversal, including product revenue allowances for cash consideration paid to customers for services, discounts, rebate programs, chargebacks, and product returns. The constraint on variable consideration for product returns will be a new estimation resulting from the earlier recognition under the new guidance. The Company has identified license and collaboration reve nue for which contract deliverables are currently accounted for as a combined unit of accounting because products or services are not . Under the new guidance, the Company has identified separate performance obligations that are capable of being distinct. As a result, the transaction price under these arrangements, including upfront fees and milestone payments, will be allocated differently to each performance obligation and may The Company identified the following performance obligations in its preliminary review of the license and collaboration agreements: ● Exclusive distribution rights in the product territory ● Regulatory submission and approval services ● Development services ● Sample supply, free of charge ● Incremental discounts and product supply prepayments representing a material right to the customer The Company has found that based upon the relative estimated selling prices of each performance obligation, the licenses typically makes up the majority of the transaction price allocation for each contract. Because the licenses have been classified under the new guidance as “right to use,” for which the customers right to the intellectual property is transferred at a point in time, under the new rules the revenue for each license will be considered recognized at contract inception. Based on these findings, the Company estimates a significant majority of the current deferred revenue balance related to its license and collaboration agreements will be allocated to performance obligations that were satisfied in periods prior to adoption and included in the cumulative adjustment to retained earnings upon adoption. The Company is still evaluating its major distribution agreements and its license and collaboration agreements and assessing the impact of adoption of the new standard to its consolidated financial statements. The Company will continue to monitor additional modifications, clarifications or interpretations undertaken by the FASB that may fourth 2017. In August 2014, 2014 15, Presentation of Financial Statements Going Concern (Subtopic 205 40 December 15, 2016 2014 15. 1 Liquidity. In July 2015, No. 2015 11, Inventory (Topic 330 No. 2015 11 first 2017. 2015 11 not In January 2016, 2016 01, Financial Instruments – Overall (Subtopic 825 10 Recognition and Measurement of Financial Assets and Financial Liabilities first 2018. In February 2016, 2016 02, Leases (Topic 842 Leases (Topic 840 2016 02 first 2019. In March 2016, 2016 09, Compensation – Stock Compensation (Topic 718 first 2017. 2016 09 not In August 2016, 2016 15, Classification of Certain Cash Receipts and Cash Payments (Topic 230 eight 2018. 2016 15 In November 2016, 2016 18, Statement of Cash Flows (Topic 230 2018. 2016 18 In July 2017, 2017 11, Earnings Per Share (Topic 260 480 815 . 480 not December 15, 2018, 2017 11 |