Talphera (TLPH) 10-Q 8 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 27, 2017
Document Information [Line Items]
Entity Registrant Name	ACELRX PHARMACEUTICALS INC
Entity Central Index Key	1,427,925
Trading Symbol	acrx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		45,380,473
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 72,332	$ 80,310	[1]
Accounts receivable, net	2,708	5,833	[1]
Inventories	1,852	2,154	[1]
Prepaid expenses and other current assets	1,079	756	[1]
Total current assets	77,971	89,053	[1]
Property and equipment, net	10,245	10,712	[1]
Restricted cash	178	178	[1]
Other assets	50	50	[1]
Total Assets	88,444	99,993	[1]
Current Liabilities:
Accounts payable	1,687	1,558	[1]
Accrued liabilities	4,544	4,595	[1]
Long-term debt, current portion	5,056	2,912
Deferred revenue, current portion	362	362	[1]
Liability related to the sale of future royalties, current portion	1,104	764	[1]
Total current liabilities	12,753	10,191	[1]
Deferred rent, net of current portion		43	[1]
Long-term debt, net of current portion	16,584	18,637	[1]
Deferred revenue, net of current portion	3,734	3,824	[1]
Liability related to the sale of future royalties, net of current portion	74,420	72,223	[1]
Contingent put option liability	314	124	[1]
Warrant liability	295	288	[1]
Total liabilities	108,100	105,330	[1]
Commitments and Contingencies			[1]
Stockholders’ Deficit:
Common stock, $0.001 par value—100,000,000 shares authorized as of March 31, 2017 and December 31, 2016; 45,371,351 and 45,333,790 shares issued and outstanding as of March 31, 2017 and December 31, 2016	45	45	[1]
Additional paid-in capital	242,214	240,977	[1]
Accumulated deficit	(261,913)	(246,362)	[1]
Accumulated other comprehensive (loss) income	(2)	3	[1]
Total stockholders’ deficit	(19,656)	(5,337)	[1]
Total Liabilities and Stockholders’ Deficit	$ 88,444	$ 99,993	[1]
[1]	The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016	[1]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	45,371,351	45,333,790
Common stock, outstanding (in shares)	45,371,351	45,333,790
[1]	The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Collaboration agreement revenue	$ 3,027	$ 1,793
Contract and other	82	1,232
Total revenue	3,109	3,025
Operating costs and expenses:
Cost of goods sold	4,125	3,599
Research and development	6,919	4,171
General and administrative	4,138	3,777
Total operating costs and expenses	15,182	11,547
Loss from operations	(12,073)	(8,522)
Other (expense) income:
Interest expense	(774)	(680)
Interest income and other income (expense), net	(146)	419
Non-cash interest expense on liability related to future sale of royalties	(2,558)	(2,196)
Total other expense	(3,478)	(2,457)
Net loss before income taxes	(15,551)	(10,979)
Provision for income taxes		(2)
Net loss	(15,551)	(10,981)
Other comprehensive (loss) income:
Unrealized (losses) gains on available-for-sale securities	(5)	5
Comprehensive loss	$ (15,556)	$ (10,976)
Net loss per share of common stock, basic (in dollars per share)	$ (0.34)	$ (0.24)
Net loss per share of common stock, diluted (in dollars per share)	$ (0.34)	$ (0.25)
Shares used in computing net loss per share of common stock, basic (in shares)	45,348,255	45,286,877
Shares used in computing net loss per share of common stock, diluted – see Note 10 (in shares)	45,348,255	45,296,954

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017		Mar. 31, 2016
Net loss	$ (15,551)		$ (10,981)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash royalty revenue	(21)
Non-cash interest expense on liability related to royalty monetization	2,558		2,196
Depreciation and amortization	480		512
Non-cash interest expense related to debt financing	91		210
Stock-based compensation	1,144		1,185
Revaluation of put option and PIPE warrant liabilities	197		(375)
Other	(5)		14
Changes in operating assets and liabilities:
Accounts receivable	3,125		80
Inventories	302		(444)
Prepaid expenses and other assets	(323)		210
Accounts payable	652		2,124
Accrued liabilities	(51)		(1,515)
Deferred revenue	(90)		603
Deferred rent	(43)		(48)
Net cash used in operating activities	(7,535)		(6,229)
Cash flows from investing activities:
Purchase of property and equipment	(536)		(190)
Proceeds from maturities of investments			3,805
Net cash (used in) provided by investing activities	(536)		3,615
Cash flows from financing activities:
Net proceeds from issuance of common stock through equity plans and exercise of warrants	93		121
Net cash provided by financing activities	93		121
Net decrease in cash and cash equivalents	(7,978)		(2,493)
Cash and cash equivalents—Beginning of period	80,310	[1]	107,922
Cash and cash equivalents—End of period	$ 72,332		$ 105,429
[1]	The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Note 1 - Organization and Summa

Note 1 - Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	1. AcelRx Pharmaceuticals, Inc., or the Company or AcelRx, was incorporated in Delaware on July 13, 2005 January 2006, AcelRx is a specialty pharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of acute pain. AcelRx’s lead product candidate, DSUVIA ™ 04 ® may The Company has two first, 30 3 February 2017. In March 2017, 04 30 04 first 2018. The Company’s other late-stage investigational product candidate, ZALVISO, delivers 15 July 25, 2014. IAP312, September 2016 2017. IAP312 2017. On December 16, 2013, July 17, 2015 September 20, 2016, September 2015, 28 December 16, 2013, July 22, 2015, July 17, 2015, Grünenthal has initially deployed the ZALVISO System in a limited number of hospitals in targeted countries under a pilot program, whereby the hospital will use ZALVISO in a small number of post-operative patients. Pilot programs are expected to last several months after which ZALVISO may 2017 2017. The Company has incurred recurring operating losses and negative cash flows from operating activities since inception and expects to continue to incur negative cash flows. Although ZALVISO has been approved for sale in the EU, the Company sold the majority of the royalty rights and certain commercial sales milestones it is entitled to receive under the Amended License Agreement with Grünenthal to PDL BioPharma, Inc., or PDL. As a result, the Company expects to continue to incur negative cash flows. When we refer to "we," "our," "us," the "Company" or "AcelRx" in this document, we mean the current Delaware corporation, or AcelRx Pharmaceuticals, Inc., and its predecessor, as well as its consolidated subsidiary. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, ARPI LLC, which was formed in September 2015 7 Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three March 31, 2017, may December 31, 2017. December 31, 2016, December 31, 2016, 10 10 December 31, 2016, Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management evaluates its estimates on an ongoing basis including critical accounting policies. Estimates are based on historical experience and on various other market-specific and other relevant assumptions that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Significant Accounting Policies The Company’s significant accounting policies are detailed in its Annual Report on Form 10 December 31, 2016. three March 31, 2017, 10 Recently Adopted Accounting Standards In March 2016, 2016 09, Compensation - Stock Compensation (Topic 718) December 15, 2016, January 1, 2017, In July 2015, 2015 11, Inventory (Topic 330) first first 2015 11 2017, Recently Issued Accounting Standards In November 2016, 2016 18, Statement of Cash Flows (Topic 230): 2016 18 2016 18 January 1, 2018, 2016 18 In August 2016, FASB issued ASU No. 2016 15, Statement of Cash Flows (Topic 230): eight December 31, 2017, In February 2016, 2016 02, Leases (Topic 842) December 15, 2018, In May 2014, 2014 09, Revenue from Contracts with Customers 2014 09 may August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606): December 15, 2017. 2014 09 first 2018. first 2017 2014 09 2014 09 ● ASU No. 2016 08, Revenue from Contracts with Customers (Topic 606): ● ASU No. 2016 10, Identifying Performance Obligations and Licensing (Topic 606) ; ● ASU No. 2016 11, Revenue Recognition (Topic 605) 815): 2014 09 2014 16 March 3, 2016 ; ● ASU No. 2016 12, Revenue from Contracts with Customers (Topic 606): and ● ASU No. 2016 20, Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements The Company currently anticipates adoption of the new standard effective January 1, 2018 may may

Note 2 - Investments and Fair V

Note 2 - Investments and Fair Value Measurement	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Investments And Fair Value Measurement Disclosure [Text Block]	2. Investments The Company classifies its marketable securities as available-for-sale and records its investments at fair value. Available-for-sale securities are carried at estimated fair value based on quoted market prices or observable market inputs of almost identical assets, with the unrealized holding gains and losses included in accumulated other comprehensive income. Marketable securities which have maturities beyond one The table below summarizes the Company’s cash, cash equivalents and investments (in thousands): As of March 31, 2017 Amortized Cost Gross Unrealized Gross Unrealized Fair Cash and cash equivalents: Cash $ 41,836 $ — $ — $ 41,836 U.S. government agency securities 30,498 — (2 ) 30,496 Total cash and cash equivalents 72,334 — (2 ) 72,332 Total cash, cash equivalents and investments $ 72,334 $ — $ (2 ) $ 72,332 As of December 31, 2016 Amortized Cost Gross Unrealized Gross Unrealized Fair Cash and cash equivalents: Cash $ 49,833 $ — $ — $ 49,833 U.S. government agency securities 30,474 3 — 30,477 Total cash and cash equivalents 80,307 3 — 80,310 Total cash, cash equivalents and investments $ 80,307 $ 3 $ — $ 80,310 As of March 31, 2017 December 31, 2016, none no March 31, 2017 December 31, 2016. No no three March 31, 2017 2016. As of March 31, 2017 December 31, 2016, one Fair Value Measurement The Company’s financial instruments consist of Level II assets and Level III liabilities. For Level II instruments, the Company estimates fair value by utilizing third March 31, 2017 December 31, 2016, June 29, 2011, March 2, 2017, 2014 1 6 two March 31, 2017 December 31, 2016, June 2012. 8 As of March 31, 2017 Fair Value Level I Level II Level III Assets U.S. government agency obligations $ 30,496 $ — $ 30,496 $ — Total assets measured at fair value $ 30,496 $ — $ 30,496 $ — Liabilities PIPE warrants $ 295 — — $ 295 Contingent put option liability 314 — — 314 Total liabilities measured at fair value $ 609 $ — $ — $ 609 As of December 31, 2016 Fair Value Level I Level II Level III Assets U.S. government agency obligations $ 30,477 $ — $ 30,477 $ — Total assets measured at fair value $ 30,477 $ — $ 30,477 $ — Liabilities PIPE warrants $ 288 — — $ 288 Contingent put option liability 124 — — 124 Total liabilities measured at fair value $ 412 $ — $ — $ 412 The following table sets forth the assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the PIPE warrants as of March 31, 2017 December 31, 2016: As of March 31, 2017 As of December 31, 6 Market Price $ 3.15 $ 2.60 Exercise Price $ 3.40 $ 3.40 Risk-free interest rate 0.91 % 0.85 % Expected volatility 65.0 % 81.0 % Expected life (in years) 0.67 0.92 Expected dividend yield 0.0 % 0.0 % The following tables set forth a summary of the changes in the fair value of the Company’s Level III financial liabilities for the three March 31, 2017 March 31, 2016 Three Months Fair value—beginning of period $ 412 Change in fair value of PIPE warrants 7 Change in fair value of contingent put option associated with Amended Loan Agreement 190 Fair value—end of period $ 609 Three Months Fair value—beginning of period $ 1,179 Change in fair value of PIPE warrants (331 ) Change in fair value of contingent put option associated with Original Loan Agreement (44 ) Fair value—end of period $ 804

Note 3 - Inventories

Note 3 - Inventories	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. Inventories consist of finished goods, raw materials and work in process and are stated at the lower of cost or market and consist of the following (in thousands): Balance as of March 31, 201 7 December 31, 201 6 Raw materials $ 847 $ 1,126 Work-in-process 324 296 Finished goods 681 732 Total $ 1,852 $ 2,154

Note 4 - U.S. Department of Def

Note 4 - U.S. Department of Defense Contract	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Long-term Contracts or Programs Disclosure [Text Block]	4 . U.S. Department of Defense Contract On May 11, 2015, the Clinical and Rehabilitative Medicine Research Program, or CRMRP, of the United States Army Medical Research and Materiel Command, or the USAMRMC, within the U.S. Department of Defense, or the DoD, in which the DoD agreed to provide up to $17.0 DSUVIA (sufentanil sublingual tablet, 30 non-invasive, single-use tablet in a disposable, pre-filled single-dose applicator, or SDA, for the treatment of moderate-to-severe acute pain, referred to as the DoD Contract. The DoD Contract supports development of DSUVIA. Under the terms of the DOD Contract, the DoD has and continues to reimburse the Company for costs incurred for development, manufacturing, regulatory and clinical costs outlined in the DOD Contract, including reimbursement for certain personnel and overhead expenses. The period of performance under the DOD Contract began on May 11, 2015. DOD Contract gives the DoD the option to extend the term of the DOD Contract and provide additional funding for the research. On March 2, 2016, to approve enrollment of additional patients in the SAP302 SAP303 four November 10, 2016 March 9, 2017, SAP302 SAP303 March 9, 2017, 11 February 28, 2018 $17.0 DSUVIA is approved by the FDA, the DoD has the option to purchase a certain number of units of commercial product pursuant to the terms of the DOD Contract. Revenue is recognized based on expenses incurred by the Company in conducting research and development activities, including overhead, as set forth in the agreement. Revenue attributable to the research and development performed under the DoD Contract, recorded as contract and other revenue in the condensed consolidated statements of comprehensive loss, was $0.1 three March 31, 2017 $1.2 three March 31, 2016.

Note 5 - Collaboration Agreemen

Note 5 - Collaboration Agreement	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Collaborative Arrangement Disclosure [Text Block]	5 . Collaboration Agreement On December 16, 2013, July 17, 2015 September 20, 2016, July 17, 2015, In the Amended Agreements, the parties amended the Product supply configurations and packaging of Product components and accessories, and associated pricing therefor, which the Company will manufacture and supply to Grünenthal for the Territory. The parties agreed to increase the pricing of the Product components and accessories in exchange for a reduction of $5.5 $171.5 $166.0 $0.7 $3.7 Amended License Agreement Under the terms of the Amended License Agreement, Grünenthal has the exclusive right to commercialize the Product in the Field in the Territory. The Company retains control of clinical development, while Grünenthal and the Company will be responsible for certain development activities pursuant to a development plan as agreed between the parties. The Company will not receive separate payment for such development activities, apart from the $0.7 fourth 2014 September 2015, (15 28 April 2016, first The Company received an upfront non-refundable cash payment of $30.0 December 2013, and a milestone payment of $5.0 third 2014, $15.0 September 2015. $194.5 ($28.5 ($166.0 A portion of the tiered royalty payment, exclusive of the supply and trademark fee payments, will be paid to PDL in connection with the Royalty Monetization. For additional information on the Royalty Monetization with PDL, see Note 7 Amended MSA Under the terms of the Amended MSA, the Company will manufacture and supply the Product for use in the Field for the Territory exclusively for Grünenthal. Grünenthal shall purchase from AcelRx, during the first five 100% 80% third third Unless earlier terminated, the Amended MSA continues in effect until the later of the expiration of the obligation of Grünenthal to make royalty and supply and trademark fee payments or the end of any transition period for manufacturing obligations due to the expiration or termination of the Amended License Agreement. The Amended MSA is subject to earlier termination in connection with certain termination events in the Amended License Agreement, in the event the parties mutually agree, by a party in the event of an uncured material breach by the other party or upon the bankruptcy or insolvency of either party. The Company identified the following four 1) 2) 3) 4) At the time the Amended Agreements were executed, with the exception of the intellectual property license, these obligations remained partially undelivered. Additionally, the Company identified the following three 1) 2) 3) The Company considered the provisions of the multiple-element arrangement guidance in determining whether the deliverables outlined above have standalone value and thus should be treated as separate units of accounting. The Company’s management determined that the license under the original License Agreement had standalone value and represented a separate unit of accounting because the rights conveyed permitted Grünenthal to perform all efforts necessary to commercialize and begin selling the product upon regulatory approval. In addition, Grünenthal has the appropriate development, regulatory and commercial expertise with products similar to the product licensed under the agreement and has the ability to engage third third The Company believes that none of the deliverables have vendor-specific objective evidence, or VSOE, or sufficient third third The Company’s management determined the best estimate of selling price for the license based on Grünenthal’s estimated future cash flows arising from the arrangement. Embedded in the estimate were significant assumptions regarding regulatory expenses, revenue, including potential customer market for the product and product price, costs to manufacture the product and the discount rate. The Company’s management determined the best estimate of selling price of the research and development services and committee participation based on the nature and timing of the services to be performed and in consideration of personnel and other costs incurred in the delivery of the services. For the discount on manufacturing services, the Company’s management estimated the selling price based on the market level of contract manufacturing margin it could have received if it were engaged to supply products to a customer in a separate transaction, the estimated cost of manufacturing, and the anticipated volume of Grünenthal’s orders over the course of the agreement, to which the discount would apply. For the ZALVISO demonstration devices and the obligation to manufacture and deliver Product, the Company’s management estimated the selling price based on the binding volume of such devices and Products, the estimated cost of manufacturing, and the market level of contract manufacturing margin. BESP of the license, research and development and committee participation services and the discount on manufacturing services were updated at the time the Amended Agreements were executed for purposes of allocating the amended arrangement consideration. The Amended Agreements entitle the Company to receive additional payments upon the achievement of certain development and sales milestones. Based on ASC Topic 605 28, Revenue Recognition — Milestone Method (1) (2) The substantive milestone payments will be recognized as revenue in their entirety upon the achievement of each substantive milestone. Based on the criteria noted above, the identified substantive milestones in the original Agreements pertain to post approval product enhancements, expanded market opportunities and manufacturing efficiencies for ZALVISO. Each of these potential achievements is based primarily on the Company’s performance and involves substantive uncertainty as achievement of these milestones requires future research, development and regulatory activities, which are inherently uncertain in nature. The Company determined that the consideration for each milestone was commensurate with the Company’s performance to achieve the milestone, including future research, development, manufacturing and regulatory activities and that the consideration is reasonable relative to all of the other deliverables and payments within the arrangement. Aggregate potential payments for these milestones total $28.5 In addition to substantive milestones, two $20.0 July 2014, first two $5.0 September 2015, second two $15.0 The Amended Agreements also include milestone payments related to specified net sales targets, totaling $166.0 2010 17 At the time the Amended Agreements were executed, approximately $33.3 $1.7 $35.0 $54.4 $0.7 $3.7 $15.0 September 2015 $13.2 $0.5 $4.4 February 2016, 2029. $0.2 2018. $2.3 $0.5 Below is a summary of revenue recognized under the Amended Agreements during the three March 31, 2017 2016 Three Months Ended March 31, 201 7 201 6 Product sales $ 2,921 $ 1,400 Joint steering committee, research and development services and demonstration devices 78 393 Non-cash royalty revenue related to Royalty Monetization (See Note 8) 21 — Royalty revenue 7 — Total $ 3,027 $ 1,793 As of March 31, 2017, $0.4 $3.7

Note 6 - Long-term Debt

Note 6 - Long-term Debt	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Long-term Debt [Text Block]	6 . Long-Term Debt Amended and Restated Loan and Security Agreement In June 2011, $20.0 two $10.0 . The Company borrowed the first $10.0 June 29, 2011 second $10.0 December 2011. first September 16, 2008. 8.50%. seven 274,508 $3.06 On December 16, 2013, $40.0 three 2013 June 29, 2011. first $15.0 December 16, 2013, second $10.0 June 16, 2014 . The Company used approximately $8.6 first $24.9 December 31, 2014. 176,730 $6.79 On September 24, 2014, 1 1 third $15.0 March 15, 2015 August 1, 2015, August 1, 2015 third On September 18, 2015, 2, 2, 2 October 1, 2015 March 31, 2016, September 30, 2016 third 2015 September 30, 2016. October 1, 2017. 2, 176,730 $6.79 $3.88 On September 30, 2016, 3 3 October 1, 2016 April 1, 2017. 3, 176,730 $3.88 $3.07 On March 2, 2017, may $30.5 two The Company borrowed the first $20.5 March 2, 2017. first second $10.0 April 1, 2017 December 31, 2017, December 31, 2017, 2 second 9.55% 3.50%, 9.55%. October 1, 2017 April 1, 2018 $40.0 March 2, 2017 December 31, 2017, October 1, 2018 2 March 1, 2020 September 1, 2020 March 1, 2021 2 $1.7 October 1, 2017, 6.5% If the Company prepays the loan prior to the maturity date, it will pay Hercules a prepayment charge, based on a percentage of the then outstanding principal balance, equal to 3% March 2, 2018, 2% March 2, 2018, March 2, 2019, 1% March 2, 2019. The Amended Loan Agreement includes customary affirmative and restrictive covenants, but does not include any financial maintenance covenants, and also includes standard events of default, including payment defaults, breaches of covenants following any applicable cure period, a material impairment in the perfection or priority ofHercules’ security interest or in the value of the collateral, and events relating to bankruptcy or insolvency. Upon the occurrence of an event of default, a default interest rate of an additional 5% may may Upon an event of default, including a change of control, Hercules has the option to accelerate repayment of the Amended Loan Agreement, including payment of any applicable prepayment charges. This option is considered a contingent put option liability, as the holder of the loan has the ability to exercise the option in the event of default, and is considered an embedded derivative, which must be valued and separately accounted for in the Company’s financial statements. As the Original Loan Agreement entered into on December 16, 2013 $32,000 March 31, 2017, $314,000 December 31, 2016, $124,000 two other income (expense), net in the condensed consolidated statements of comprehensive loss. The Company performed an analysis of Amendments No. 2 3 2 3 In connection with the Amended Loan Agreement, the Company performed an analysis to determine if the amendment and restatement of the Original Loan Agreement was a modification or extinguishment of the debt. The Company assumed immediate prepayment of both the pre-modification debt and post-modification debt and concluded the Amended Loan Agreement was a modification rather than extinguishment of the debt under the Original Loan Agreement. The accrued balance due under the Amended Loan Agreement was $21.6 March 31, 2017 $21.5 December 31, 2016. $0.8 $0.3 three March 31, 2017. $0.7 $0.2 three March 31, 2016.

Note 7 - Liability Related to S

Note 7 - Liability Related to Sale of Future Royalties	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Liability Related To Sale Of Future Royalties Disclosure [Text Block]	7 . L iability Related to Sale of Future Royalties On September 18, 2015, $65.0 $195.0 75% 80% first four $35.6 80% $44.5 25% 20% first four 100% $43.5 $15.0 The Company and ARPI LLC continue to retain certain duties and obligations under the Amended License Agreement. These include the collection of the royalty and milestones amounts due and enforcement of related provisions under the Amended License Agreement, among others. In addition, the Company must prepare a quarterly distribution report relating to the Amended License Agreement, containing among other items, the amount of royalty and milestone payments received, reimbursable expenses and set-offs. The Company and ARPI LLC must also provide PDL with notice of certain communications, events or actions with respect to the Amended License Agreement and infringement of any underlying intellectual property. The Company has significant continuing involvement in the Royalty Monetization primarily due to an obligation to act as the intermediary for the supply of ZALVISO to Grünenthal. Due to the Company’s significant continuing involvement, the Royalty Monetization has been accounted for as a liability that will be amortized using the interest method over the life of the arrangement. In order to determine the amortization of the liability, the Company is required to estimate the total amount of future royalty and milestone payments to be received by PDL and payments the Company is required to make to PDL, up to a capped amount of $195.0 $195.0 $61.2 14%. The Company will periodically assess the expected royalty and milestone payments using a combination of historical results, internal projections and forecasts from external sources. To the extent such payments are greater or less than our initial estimates or the timing of such payments is materially different than our original estimates, the Company will prospectively adjust the amortization of the liability and the interest rate. The following table shows the activity within the liability account during the three March 31, 2017 Three months ended March 31, 7 Period from inception to March 31, 7 Liability related to sale of future royalties — beginning balance $ 72,987 $ — Proceeds from sale of future royalties — 61,184 Non-cash royalty revenue (21 ) (28 ) Non-cash interest expense recognized 2,558 14,368 Liability related to sale of future royalties as of March 31, 2017 75,524 75,524 Less: current portion (1,104 ) (1,104 ) Liability related to sale of future royalties — net of current portion $ 74,420 $ 74,420 As royalties are remitted to PDL from ARPI LLC as described in Note 1

Note 8 - Warrants

Note 8 - Warrants	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Warrants Disclosure [Text Block]	8. Series A Warrants On March 15, 2017, 3,425 Hercules Warrants In connection with the Original Loan Agreement, executed in December 2013, 176,730 $6.79 2 $6.79 $3.88 Each Warrant may five $1.1 $0.1 As of March 31, 2017, 176,730 December 2018. 2012 In connection with the Private Placement, completed in June 2012, 2,630,103 $3.40 May 29, 2012, six five tender 50% may 2 Upon execution of the Purchase Agreement, the fair value of the PIPE warrants was estimated to be $5.8 March 31, 2017, $0.3 three March 31, 2017, $0.01 three March 31, 2016, $0.3 As of March 31, 2017, 512,456 November 2017.

Note 9 - Stock-based Compensati

Note 9 - Stock-based Compensation	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	9. The Company recorded total stock-based compensation expense for stock options, stock awards and the 2011 Three Months Ended March 31, 2017 2016 Cost of goods sold $ 84 $ 71 Research and development 537 600 General and administrative 523 514 Total $ 1,144 $ 1,185 As of March 31, 2017, 2,333,995 8,559,217 no 2011 1,101,331

Note 10 - Net Loss Per Share of

Note 10 - Net Loss Per Share of Common Stock	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	10 . Net Loss per Share of Common Stock The Company’s basic net loss per share of common stock is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by giving effect to all potential common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, options to purchase common stock and warrants to purchase common stock were considered to be common stock equivalents. In periods with a reported net loss, common stock equivalents are excluded from the calculation of diluted net loss per share of common stock if their effect is antidilutive. During the three March 31, 2017, three March 31, 2017. three March 31, 2016, March 31, 2016, December 31, 2015. three March 31, 2016. The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock during the three March 31, 2017 2016 Three Months Ended March 31 , 201 7 201 6 Numerator Net loss used to compute net loss per share: Basic $ (15,551 ) $ (10,981 ) Adjustments for change in fair value of warrant liability — (331 ) Diluted $ (15,551 ) $ (11,312 ) Denominator Weighted average shares outstanding used to compute net loss per share: Basic 45,348,255 45,286,877 Dilutive effect of warrants — 10,077 Diluted 45,348,255 45,296,954 Net loss per share — basic $ (0.34 ) $ (0.24 ) Net loss per share — diluted $ (0.34 ) $ (0.25 ) The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been antidilutive: March 31, 2017 2016 ESPP and stock options to purchase common stock 8,689,375 6,538,471 Convertible debt into common stock — 553,763 Common stock warrants 689,186 180,155

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, ARPI LLC, which was formed in September 2015 7
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three March 31, 2017, may December 31, 2017. December 31, 2016, December 31, 2016, 10 10 December 31, 2016,
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management evaluates its estimates on an ongoing basis including critical accounting policies. Estimates are based on historical experience and on various other market-specific and other relevant assumptions that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
New Accounting Pronouncements, Policy [Policy Text Block]	Significant Accounting Policies The Company’s significant accounting policies are detailed in its Annual Report on Form 10 December 31, 2016. three March 31, 2017, 10 Recently Adopted Accounting Standards In March 2016, 2016 09, Compensation - Stock Compensation (Topic 718) December 15, 2016, January 1, 2017, In July 2015, 2015 11, Inventory (Topic 330) first first 2015 11 2017, Recently Issued Accounting Standards In November 2016, 2016 18, Statement of Cash Flows (Topic 230): 2016 18 2016 18 January 1, 2018, 2016 18 In August 2016, FASB issued ASU No. 2016 15, Statement of Cash Flows (Topic 230): eight December 31, 2017, In February 2016, 2016 02, Leases (Topic 842) December 15, 2018, In May 2014, 2014 09, Revenue from Contracts with Customers 2014 09 may August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606): December 15, 2017. 2014 09 first 2018. first 2017 2014 09 2014 09 ● ASU No. 2016 08, Revenue from Contracts with Customers (Topic 606): ● ASU No. 2016 10, Identifying Performance Obligations and Licensing (Topic 606) ; ● ASU No. 2016 11, Revenue Recognition (Topic 605) 815): 2014 09 2014 16 March 3, 2016 ; ● ASU No. 2016 12, Revenue from Contracts with Customers (Topic 606): and ● ASU No. 2016 20, Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements The Company currently anticipates adoption of the new standard effective January 1, 2018 may may

Note 2 - Investments and Fair17

Note 2 - Investments and Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Cash, Cash Equivalents and Investments [Table Text Block]	As of March 31, 2017 Amortized Cost Gross Unrealized Gross Unrealized Fair Cash and cash equivalents: Cash $ 41,836 $ — $ — $ 41,836 U.S. government agency securities 30,498 — (2 ) 30,496 Total cash and cash equivalents 72,334 — (2 ) 72,332 Total cash, cash equivalents and investments $ 72,334 $ — $ (2 ) $ 72,332 As of December 31, 2016 Amortized Cost Gross Unrealized Gross Unrealized Fair Cash and cash equivalents: Cash $ 49,833 $ — $ — $ 49,833 U.S. government agency securities 30,474 3 — 30,477 Total cash and cash equivalents 80,307 3 — 80,310 Total cash, cash equivalents and investments $ 80,307 $ 3 $ — $ 80,310
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	As of March 31, 2017 Fair Value Level I Level II Level III Assets U.S. government agency obligations $ 30,496 $ — $ 30,496 $ — Total assets measured at fair value $ 30,496 $ — $ 30,496 $ — Liabilities PIPE warrants $ 295 — — $ 295 Contingent put option liability 314 — — 314 Total liabilities measured at fair value $ 609 $ — $ — $ 609 As of December 31, 2016 Fair Value Level I Level II Level III Assets U.S. government agency obligations $ 30,477 $ — $ 30,477 $ — Total assets measured at fair value $ 30,477 $ — $ 30,477 $ — Liabilities PIPE warrants $ 288 — — $ 288 Contingent put option liability 124 — — 124 Total liabilities measured at fair value $ 412 $ — $ — $ 412
Fair Value Of Warrants [Table Text Block]	As of March 31, 2017 As of December 31, 6 Market Price $ 3.15 $ 2.60 Exercise Price $ 3.40 $ 3.40 Risk-free interest rate 0.91 % 0.85 % Expected volatility 65.0 % 81.0 % Expected life (in years) 0.67 0.92 Expected dividend yield 0.0 % 0.0 %
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Three Months Fair value—beginning of period $ 412 Change in fair value of PIPE warrants 7 Change in fair value of contingent put option associated with Amended Loan Agreement 190 Fair value—end of period $ 609 Three Months Fair value—beginning of period $ 1,179 Change in fair value of PIPE warrants (331 ) Change in fair value of contingent put option associated with Original Loan Agreement (44 ) Fair value—end of period $ 804

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	Balance as of March 31, 201 7 December 31, 201 6 Raw materials $ 847 $ 1,126 Work-in-process 324 296 Finished goods 681 732 Total $ 1,852 $ 2,154

Note 5 - Collaboration Agreem19

Note 5 - Collaboration Agreement (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Revenue Recognition Amended Agreements [Table Text Block]	Three Months Ended March 31, 201 7 201 6 Product sales $ 2,921 $ 1,400 Joint steering committee, research and development services and demonstration devices 78 393 Non-cash royalty revenue related to Royalty Monetization (See Note 8) 21 — Royalty revenue 7 — Total $ 3,027 $ 1,793

Note 7 - Liability Related to20

Note 7 - Liability Related to Sale of Future Royalties (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Other Liabilities [Table Text Block]	Three months ended March 31, 7 Period from inception to March 31, 7 Liability related to sale of future royalties — beginning balance $ 72,987 $ — Proceeds from sale of future royalties — 61,184 Non-cash royalty revenue (21 ) (28 ) Non-cash interest expense recognized 2,558 14,368 Liability related to sale of future royalties as of March 31, 2017 75,524 75,524 Less: current portion (1,104 ) (1,104 ) Liability related to sale of future royalties — net of current portion $ 74,420 $ 74,420

Note 9 - Stock-based Compensa21

Note 9 - Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended March 31, 2017 2016 Cost of goods sold $ 84 $ 71 Research and development 537 600 General and administrative 523 514 Total $ 1,144 $ 1,185

Note 10 - Net Loss Per Share 22

Note 10 - Net Loss Per Share of Common Stock (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31 , 201 7 201 6 Numerator Net loss used to compute net loss per share: Basic $ (15,551 ) $ (10,981 ) Adjustments for change in fair value of warrant liability — (331 ) Diluted $ (15,551 ) $ (11,312 ) Denominator Weighted average shares outstanding used to compute net loss per share: Basic 45,348,255 45,286,877 Dilutive effect of warrants — 10,077 Diluted 45,348,255 45,296,954 Net loss per share — basic $ (0.34 ) $ (0.24 ) Net loss per share — diluted $ (0.34 ) $ (0.25 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	March 31, 2017 2016 ESPP and stock options to purchase common stock 8,689,375 6,538,471 Convertible debt into common stock — 553,763 Common stock warrants 689,186 180,155

Note 2 - Investments and Fair23

Note 2 - Investments and Fair Value Measurement (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Available For Sale Securities, Gross, Unrealized Gain (Loss) Accumulated In Investments	$ 0		$ 0
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	0		$ 0
Available-for-sale Securities, Gross Realized Gain (Loss)	0	$ 0
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, Net of Tax	$ 0	$ 0

Note 2 - Investments and Fair24

Note 2 - Investments and Fair Value Measurement - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Amortized Cost	$ 72,334	$ 80,307
Gross Unrealized Gains		3
Gross Unrealized Losses	(2)
Fair Value	72,332	80,310
Cash and Cash Equivalents [Member]
Amortized Cost	72,334	80,307
Gross Unrealized Gains		3
Gross Unrealized Losses	(2)
Fair Value	72,332	80,310
Cash and Cash Equivalents [Member] | Cash [Member]
Amortized Cost	41,836	49,833
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	41,836	49,833
Cash and Cash Equivalents [Member] | U.S. Government Agency Securities [Member]
Amortized Cost	30,498	30,474
Gross Unrealized Gains		3
Gross Unrealized Losses	(2)
Fair Value	$ 30,496	$ 30,477

Note 2 - Investments and Fair25

Note 2 - Investments and Fair Value Measurement - Fair Value of Financial Assets and Liabilities by Level Within Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Total assets measured at fair value	$ 30,496	$ 30,477
Total liabilities measured at fair value	609	412
Contingent Put Option Liability [Member]
Total liabilities measured at fair value	314	124
PIPE Warrants [Member]
Total liabilities measured at fair value	295	288
Fair Value, Inputs, Level 1 [Member]
Total assets measured at fair value
Total liabilities measured at fair value
Fair Value, Inputs, Level 1 [Member] | Contingent Put Option Liability [Member]
Total liabilities measured at fair value
Fair Value, Inputs, Level 1 [Member] | PIPE Warrants [Member]
Total liabilities measured at fair value
Fair Value, Inputs, Level 2 [Member]
Total assets measured at fair value	30,496	30,477
Total liabilities measured at fair value
Fair Value, Inputs, Level 2 [Member] | Contingent Put Option Liability [Member]
Total liabilities measured at fair value
Fair Value, Inputs, Level 2 [Member] | PIPE Warrants [Member]
Total liabilities measured at fair value
Fair Value, Inputs, Level 3 [Member]
Total assets measured at fair value
Total liabilities measured at fair value	609	412
Fair Value, Inputs, Level 3 [Member] | Contingent Put Option Liability [Member]
Total liabilities measured at fair value	314	124
Fair Value, Inputs, Level 3 [Member] | PIPE Warrants [Member]
Total liabilities measured at fair value	295	288
U.S. Government Agency Obligations [Member]
Total assets measured at fair value	30,496	30,477
U.S. Government Agency Obligations [Member] | Fair Value, Inputs, Level 1 [Member]
Total assets measured at fair value
U.S. Government Agency Obligations [Member] | Fair Value, Inputs, Level 2 [Member]
Total assets measured at fair value	30,496	30,477
U.S. Government Agency Obligations [Member] | Fair Value, Inputs, Level 3 [Member]
Total assets measured at fair value

Note 2 - Investments and Fair26

Note 2 - Investments and Fair Value Measurement - Assumptions Used in Black-Scholes Option Pricing Model to Estimate Fair Value of Pipe Warrants (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Market Price (in dollars per share)	$ 3.15	$ 2.60
Exercise Price (in dollars per share)	$ 3.40	$ 3.40
Risk-free interest rate	0.91%	0.85%
Expected volatility	65.00%	81.00%
Expected life (in years) (Year)	244 days	335 days
Expected dividend yield	0.00%	0.00%

Note 2 - Investments and Fair27

Note 2 - Investments and Fair Value Measurement - Summary of Changes in Fair Value of Level III Financial Liabilities (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Balance, fair value	$ 412	$ 1,179
Change in fair value of PIPE warrants	7	(331)
Balance, fair value	609	804
Hercules 2011 Loan and Security Agreement [Member]
Change in fair value of contingent put option associated with Amended Loan Agreement	$ 190	$ (44)

Note 3 - Inventories - Inventor

Note 3 - Inventories - Inventory Components (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Raw materials	$ 847	$ 1,126
Work-in-process	324	296
Finished goods	681	732
Total	$ 1,852	$ 2,154	[1]
[1]	The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Note 4 - U.S. Department of D29

Note 4 - U.S. Department of Defense Contract (Details Textual) - USD ($) $ in Thousands	Mar. 09, 2017	Mar. 02, 2016	Mar. 31, 2017	Mar. 31, 2016	May 11, 2015
Government Contract Receivable					$ 17,000
Contracts Revenue			$ 82	$ 1,232
Government [Member]
Award Contract Renewal Term	11 years	120 days
Government [Member] | Contract and Other Revenue [Member]
Contracts Revenue			$ 100	$ 1,200

Note 5 - Collaboration Agreem30

Note 5 - Collaboration Agreement (Details Textual) - USD ($) $ in Thousands	Jul. 17, 2015	Sep. 30, 2015	Jul. 31, 2014	Dec. 31, 2013	Mar. 31, 2017	Sep. 30, 2014	Dec. 31, 2015	Jul. 17, 2015	Jul. 16, 2015	Dec. 31, 2016	[1]
Payments In Exchange For Services Under Collaboration Agreement	$ 700
Amount Of Binding Product Forecast Revenue	3,700
Revenue Recognition, Milestone Method, Revenue Recognized		$ 15,000		$ 30,000		$ 5,000		$ 33,300
Revenue Recognition Milestone Method Agreed, Additional Amount, Based On Efforts And Targets					$ 194,500
Manufacturing Agreement, Percentage For Five Years					100.00%
Manufacturing Agreement, Percentage, Thereafter					80.00%
Revenue Recognition Milestone Method Agreed, Additional Amount		$ 15,000
Deferred Revenue	54,400							54,400	$ 1,700
Collaboration Agreement Consideration, Amount								35,000
Discount On Manufacturing Services							$ 4,400
Committee Participation Sercices Recognized							200
Manufacturing Services Revenues Related To Binding Forecast							$ 2,300
Deferred Revenue, Current					$ 362					$ 362
Deferred Revenue, Noncurrent					3,734					$ 3,824
AUSTRALIA
Revenue Recognition, Milestone Method, Revenue Recognized					166,000
Zalviso [Member]
Revenue Recognition, Milestone Method, Revenue Recognized					28,500
Milestone Payments Received			$ 5,000
Zalviso [Member] | Europe [Member]
Revenue Recognition, Milestone Method, Revenue Recognized					20,000
Based upon Net Sales Target Achievements [Member]
Increase (Decrease) In Milestone Payments Related To Net Sales Target	(5,500)
Potential Milestone Payments Related To Net Sales Target	166,000								$ 171,500
Revenue Recognition Milestone Method Agreed, Additional Amount, Based On Efforts And Targets					166,000
Based upon Successful Regulatory and Product Development Efforts [Member]
Revenue Recognition Milestone Method Agreed, Additional Amount, Based On Efforts And Targets					$ 28,500
Previously Delivered License [Member]
Revenue Recognition Milestone Method Agreed, Additional Amount	13,200							13,200
Research and Development and Committee Participation Services [Member]
Revenue Recognition Milestone Method Agreed, Additional Amount	$ 500							$ 500
[1]	The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Note 5 - Collaboration Agreem31

Note 5 - Collaboration Agreement - A Summary of Revenue Recognized Under the Amended Agreements (Details) - USD ($) $ in Thousands	3 Months Ended		18 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017
Non-cash royalty revenue related to Royalty Monetization (See Note 8)	$ 21		$ 28
Collaboration agreement revenue	3,027	1,793
Collaborative Arrangement [Member]
Revenue Recognized	78	393
Non-cash royalty revenue related to Royalty Monetization (See Note 8)	21
Royalty revenue	7
Collaboration agreement revenue	3,027	1,793
Collaborative Arrangement [Member] | Zalviso [Member] | Grunenthal [Member]
Revenue Recognized	$ 2,921	$ 1,400

Note 6 - Long-term Debt (Detail

Note 6 - Long-term Debt (Details Textual)	Mar. 02, 2017USD ($)	Sep. 18, 2015$ / sharesshares	Dec. 16, 2013USD ($)$ / sharesshares	Sep. 30, 2016$ / sharesshares	Dec. 31, 2013$ / sharesshares	Jun. 30, 2011$ / sharesshares	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Jun. 30, 2016$ / shares	Jun. 30, 2015	Mar. 01, 2019	Mar. 01, 2018	Dec. 31, 2011USD ($)	Mar. 01, 2020	Dec. 31, 2016USD ($)		Sep. 17, 2015$ / shares	Dec. 31, 2014USD ($)	Sep. 24, 2014USD ($)	Jun. 16, 2014USD ($)	Jun. 29, 2011USD ($)
Fair Value Of Contingent Put Option, Liability							$ 314,000								$ 124,000	[1]
Interest Expense							774,000	$ 680,000
Hercules Warrants [Member]
Warrant Exercisable Term										5 years
Debt Conversion, Converted Instrument, Warrants or Options Issued | shares						274,508
Investment Warrants, Exercise Price | $ / shares				$ 3.07	$ 6.79	$ 3.06			$ 3.88
Common Stock Warrants Exercised | shares		176,730	176,730	176,730	176,730
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 3.88	$ 6.79														$ 6.79
Hercules Loan and Security Agreement [Member]
Debt Instrument, Face Amount																					$ 20,000,000
Number of Tranches for Loan and Security Agreement																					2
Debt Instrument, Interest Rate, Stated Percentage													8.50%
Additional Default Interest Rate	5.00%
Fair Value Of Contingent Put Option, Liability			$ 32,000				314,000								124,000
Long-term Line of Credit							21,600,000								$ 21,500,000
Interest Expense							800,000	700,000
Amortization of Debt Discount (Premium)							$ 300,000	$ 200,000
Hercules Loan and Security Agreement [Member] | Scenario, Forecast [Member]
Prepayment Charge Of Term Loan Percentage											2.00%	3.00%		1.00%
Hercules Loan and Security Agreement [Member] | Hercules Warrants [Member]
Warrant Exercisable Term													7 years
Hercules Loan and Security Agreement [Member] | First Tranche [Member]
Debt Instrument, Face Amount																					$ 10,000,000
Hercules Loan and Security Agreement [Member] | Second Tranche [Member]
Debt Instrument, Face Amount													$ 10,000,000
Amended and Restated Loan and Security Agreement [Member]
Number of Tranches for Loan and Security Agreement	2		3
Line of Credit Facility, Maximum Borrowing Capacity	$ 30,500,000		$ 40,000,000
Debt Instrument, Fair Value Disclosure																		$ 24,900,000
Debt Instrument, Variable Rate Threshold	9.55%
Debt Instrument, Percentage Used To Calculate Variable Rate	3.50%
Debt Instrument, Minimum Trigger Amount to Extend Period of Interest Only Payments	$ 40,000,000
Long-term Debt Maturities Balloon Payments	$ 1,700,000
Debt Instrument, Final Payment, Percentage of Aggregate Principal Amount	6.50%
Amended and Restated Loan and Security Agreement [Member] | First Tranche [Member]
Debt Instrument, Face Amount	$ 20,500,000		15,000,000
Repayments of Long-term Debt			$ 8,600,000
Amended and Restated Loan and Security Agreement [Member] | Second Tranche [Member]
Debt Instrument, Face Amount																				$ 10,000,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
Amended and Restated Loan and Security Agreement [Member] | Third Tranche [Member]
Line of Credit Facility, Maximum Borrowing Capacity																			$ 15,000,000
[1]	The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Note 7 - Liability Related to33

Note 7 - Liability Related to Sale of Future Royalties (Details Textual) - USD ($) $ in Millions	Sep. 18, 2015	Sep. 30, 2015
Proceeds From Sale Of Royalty And Milestone Rights	$ 65
Royalty Arrangment Maximum Payments	$ 195
Revenue Recognition Milestone Method Agreed, Additional Amount		$ 15
Effective Annual Interest Rate	14.00%
First Four Commercial Milestones [Member]
Percentage Of Royalties And Rights Under Agreement	20.00%
Royalties [Member]
Percentage Of Royalties And Rights Under Agreement	25.00%
Remaining Commercial and All Development Milestone[Member]
Percentage Of Royalties And Rights Under Agreement	100.00%
Commercial Milestones Value	$ 43.5
MAA Aproval [Member]
Revenue Recognition Milestone Method Agreed, Additional Amount	15
PDL [Member]
Proceeds From Sale Of Royalty And Milestone Rights	$ 61.2
Percentage Of Royalties And Rights Under Agreement	75.00%
PDL [Member] | First Four Commercial Milestones [Member]
Percentage Of Royalties And Rights Under Agreement	80.00%
Commercial Milestones Value Maximum Amount Available	$ 35.6
AcelRX [Member] | First Four Commercial Milestones [Member]
Commercial Milestones Value Maximum Amount Available	$ 44.5

Note 7 - Liability Related to34

Note 7 - Liability Related to Sale of Future Royalties - Activity of Liability Related to Sale of Future Royalties (Details) - USD ($) $ in Thousands	3 Months Ended		18 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Balance, liability related to sale of future royalties	$ 72,987
Proceeds from sale of future royalties			61,184
Non-cash royalty revenue	(21)		(28)
Non-cash interest expense recognized	2,558	$ 2,196	14,368
Liability related to sale of future royalties as of March 31, 2017	$ 72,987			$ 75,524	$ 72,987
Less: current portion				(1,104)	(764)	[1]
Liability related to sale of future royalties — net of current portion				$ 74,420	$ 72,223	[1]
[1]	The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Note 8 - Warrants (Details Text

Note 8 - Warrants (Details Textual) - USD ($) $ / shares in Units, $ in Thousands

Sep. 18, 2015

Dec. 16, 2013

Sep. 30, 2016

Dec. 31, 2013

Jun. 30, 2012

Jun. 30, 2011

Mar. 31, 2017

Mar. 31, 2016

Jun. 30, 2016

Jun. 30, 2015

Mar. 15, 2017

Sep. 30, 2015

Sep. 17, 2015

Hercules Warrants [Member]

Class of Warrant or Right, Outstanding

176,730

Common Stock Warrants Exercised

176,730

176,730

176,730

176,730

Investment Warrants, Exercise Price

$ 3.07

$ 6.79

$ 3.06

$ 3.88

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 3.88

$ 6.79

$ 6.79

Warrant Exercisable Term

5 years

Fair Value Of Warrant On Date Of Issuance

$ 1,100

PIPE Warrants [Member]

Class of Warrant or Right, Outstanding

2,630,103

512,456

Investment Warrants, Exercise Price

$ 3.40

Warrant Exercisable Term

5 years

Warrants Vesting Condition Description

50%

Series Warrants [Member]

Class of Warrant or Right, Outstanding

3,425

2012 Private Placement [Member]

Fair Value of Warrant Upon Execution of Securities Purchase Agreement

$ 5,800

Estimated Fair Value of Warrant

$ 300

Other Expenses

$ 10

Other Income

$ 300

Note 9 - Stock-based Compensa36

Note 9 - Stock-based Compensation (Details Textual)	Mar. 31, 2017shares
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	0
2011 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,333,995
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	8,559,217
Employee Stock Purchase Plan (ESPP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,101,331

Note 9 - Stock-based Compensa37

Note 9 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock-based compensation expense	$ 1,144	$ 1,185
Cost of Sales [Member]
Stock-based compensation expense	84	71
Research and Development Expense [Member]
Stock-based compensation expense	537	600
General and Administrative Expense [Member]
Stock-based compensation expense	$ 523	$ 514

Note 10 - Net Loss Per Share 38

Note 10 - Net Loss Per Share of Common Stock - Computation of Basic and Diluted Net Loss Per Share of Common (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic	$ (15,551)	$ (10,981)
Adjustments for change in fair value of warrant liability		(331)
Diluted	$ (15,551)	$ (11,312)
Shares used in computing net loss per share of common stock, basic (in shares)	45,348,255	45,286,877
Dilutive effect of warrants (in shares)		10,077
Diluted (in shares)	45,348,255	45,296,954
Net loss per share of common stock, basic (in dollars per share)	$ (0.34)	$ (0.24)
Net loss per share of common stock, diluted (in dollars per share)	$ (0.34)	$ (0.25)

Note 10 - Net Loss Per Share 39

Note 10 - Net Loss Per Share of Common Stock - Outstanding Shares of Common Stock Equivalents Excluded From Computation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Stock Option [Member]
Shares of common stock equivalents excluded from the computation of diluted net loss per share of common stock (in shares)	8,689,375	6,538,471
Convertible Debt Securities [Member]
Shares of common stock equivalents excluded from the computation of diluted net loss per share of common stock (in shares)		553,763
Warrant [Member]
Shares of common stock equivalents excluded from the computation of diluted net loss per share of common stock (in shares)	689,186	180,155