Phaserx (PZRX) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	PHASERX, INC.
Entity Central Index Key	1,429,386
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	PZRX
Entity Common Stock, Shares Outstanding		11,690,329

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 6,688	$ 9,983
Marketable securities	5,166	5,496
Prepaids and other current assets	791	698
Total current assets	12,645	16,177
Property and equipment, net	250	271
Total assets	12,895	16,448
Current liabilities
Accounts payable	981	515
Accrued liabilities	554	884
Accrued interest	50	49
Current portion of term loan payable	1,149	576
Total current liabilities	2,734	2,024
Term loan payable, net of debt discount and current portion	4,646	5,127
Total liabilities	7,380	7,151
Stockholders’ equity
Preferred stock, $0.0001 par value, 5,000,000 shares authorized at March 31, 2017 and December 31, 2016; no shares issued and outstanding at March 31, 2017 and December 31, 2016	0	0
Common stock; $0.0001 par value; 50,000,000 shares authorized at March 31, 2017 and December 31, 2016; 11,690,329 shares issued and outstanding at March 31, 2017 and December 31, 2016	1	1
Additional paid-in capital	79,218	78,773
Accumulated other comprehensive income	4	3
Accumulated deficit	(73,708)	(69,480)
Total stockholders' equity	5,515	9,297
Total liabilities and stockholders' equity	$ 12,895	$ 16,448

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	11,690,329	11,690,329
Common Stock, Shares, Outstanding	11,690,329	11,690,329

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating expenses:
Research and development	$ 2,326	$ 1,434
General and administrative	1,589	680
Total operating expenses	3,915	2,114
Loss from operations	(3,915)	(2,114)
Interest income	25	0
Interest expense	(235)	(201)
Other income, net	0	81
Total other income (expense)	(210)	(120)
Net loss attributable to common stockholders	$ (4,125)	$ (2,234)
Net loss per share attributable to common stockholders, basic and diluted	$ (0.35)	$ (4.19)
Shares used in computation of basic and diluted net loss per share attributable to common stockholders	11,690	533

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net loss attributable to common stockholders	$ (4,125)	$ (2,234)
Other comprehensive income:
Unrealized gain on marketable securities	1	0
Comprehensive loss	$ (4,124)	$ (2,234)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net loss	$ (4,125)	$ (2,234)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	92	151
Depreciation and amortization	21	61
Stock-based compensation	342	19
Noncash interest expense	0	50
Preferred stock warrant liability	0	(81)
Changes in operating assets and liabilities
Prepaids and other current assets	(93)	(2)
Accounts payable	466	282
Accrued liabilities	(329)	(29)
Deferred rent	0	(14)
Net cash used in operating activities	(3,626)	(1,797)
Investing activities
Purchases of marketable securities	(4,169)	0
Maturities of marketable securities	4,500	0
Purchases of property and equipment	0	(142)
Net cash provided by (used in) investing activities	331	(142)
Financing activities
Deferred offering costs	0	(446)
Net cash used in financing activities	0	(446)
Net decrease in cash and cash equivalents	(3,295)	(2,385)
Cash and cash equivalents
Beginning of period	9,983	3,290
End of period	6,688	905
Noncash investing and financing activities:
Accretion of Series A preferred stock	0	2
Cash paid during the period for interest	$ 142	$ 0

Business and Basis of Presentat

Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Business and Basis of Presentation PhaseRx, Inc. (referred to as “PhaseRx”, the “Company,” “we,” “us,” or “our”) was incorporated in the State of Delaware on March 9, 2006 and is located in Seattle, Washington. We are a biopharmaceutical company developing a portfolio of products for the treatment of inherited enzyme deficiencies in the liver using intracellular enzyme replacement therapy, or i-ERT. Our i-ERT approach is enabled by our proprietary Hybrid messenger RNA, or mRNA, Technology platform, which allows synthesis of the missing enzyme inside the cell. Our initial product portfolio targets the three urea cycle disorders ornithine transcarbamylase deficiency, or OTCD, argininosuccinate lyase deficiency, or ASL deficiency, and argininosuccinate synthetase deficiency, or ASS1 deficiency. Liquidity We have financed our operations since inception primarily through the sale of preferred and common stock and the issuance of convertible notes and term loans. We anticipate that we will continue to incur losses, and that such losses will increase over the next several years due to development costs associated with our drug candidate PRX-OTC. We expect that our research and development and general and administrative expenses will continue to increase and, as a result, we will need additional capital to fund our operations, which we may raise through a combination of equity offerings, debt financings, other third-party funding and other collaborations and strategic alliances. The Company’s ability to continue as a going concern is dependent upon its ability to obtain additional equity or debt financing and, ultimately, to generate revenue. Those factors raise substantial doubt about the Company’s ability to continue as a going concern. We believe our cash, cash equivalents and marketable securities balance of $ 11.9 Basis of Presentation The accompanying interim consolidated financial statements are unaudited. The accompanying unaudited consolidated financial statements reflect, in the opinion of our management, all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of financial position, results of operations, comprehensive loss and cash flows for each period presented in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from the accompanying consolidated statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in our 2016 annual report on the Form 10-K. The accompanying consolidated financial information as of December 31, 2016 has been derived from the audited 2016 consolidated financial statements included in our 2016 annual report on the Form 10-K filed with the Securities and Exchange Commission on March 27, 2017. Operating results for the three months ended March 31, 2017 are not necessarily indicative of results that may be expected for the year ending December 31, 2017, or any other future period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	2. Summary of Significant Accounting Policies The consolidated financial statements include the accounts of PhaseRx and its wholly owned subsidiary, PhaseRx Ireland Limited. All material intercompany transactions and balances have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. In preparing these consolidated financial statements, management has made its best estimates and judgments of certain amounts included in the consolidated financial statements, giving due consideration to materiality. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, fair value measurements, financing activities, accruals and other contingencies. We invest our excess cash in investment grade short- to intermediate-term fixed income securities. Such investments are included in cash and cash equivalents or marketable securities, on the balance sheets, classified as available-for-sale and reported at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss). Realized gains and losses on the sale of these securities are recognized in net income or loss. We consider all highly liquid investments with original maturities at purchase of 90 days or less to be cash equivalents, an investment with a maturity greater than twelve months from the balance sheet date as long-term marketable securities and a maturity less than twelve months as short-term at the balance sheet date. Our cash equivalents and marketable securities consist principally of commercial paper and money market securities. Interest earned on securities is included in interest income. Gains are recognized when realized in our statements of operations. Losses are recognized when realized or when we have determined that an other-than-temporary decline in fair value has occurred. The cost of securities sold is based on the specific identification method. We periodically evaluate whether declines in fair values of our investments below their cost are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as our ability and intent to hold the investment until a forecasted recovery occurs. Factors considered include quoted market prices, recent financial results and operating trends, credit quality of debt instrument issuers, other publicly available information that may affect the value of our investments, duration and severity of the decline in value, and our strategy and intentions for holding the investment. Additionally, we assess whether it is more likely than not we will be required to sell any investment before recovery of its amortized cost basis. We establish the fair value of our assets and liabilities using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We established a fair value hierarchy based on the inputs used to measure fair value. The three levels of the fair value hierarchy are as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which little or no market data exists, therefore determined using estimates and assumptions developed by us, which reflect those that a market participant would use. We measure and report at fair value our cash equivalents and marketable securities. The carrying value of accounts payable and accrued liabilities approximate their respective fair values due to their relative short maturities. The carrying value of our Hercules term loan approximates fair value because the interest rate is reflective of the rate we could obtain on debt with similar terms and conditions. We may apply the fair value option to any eligible financial assets or liabilities, which permits an instrument by instrument irrevocable election to account for selected financial assets and liabilities at fair value. To date, we have not applied this election. Research and development costs are expensed as incurred. Research and development costs include salaries and personnel-related costs, consulting fees, fees paid for contract research services, the costs of laboratory supplies, equipment and facilities, license fees and other external costs. Non-refundable advance payments for goods or services to be received in the future for use in research and development activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are performed. We expense the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of such instruments. We use the Black-Scholes option pricing model to calculate the fair value of any equity instruments on the grant date. We recognize stock-based compensation on the graded-vesting method as expense over the requisite service period. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to volatility, expected option term and, prior to the initial public offering (“IPO”), the fair value of our common stock. Measurement of stock-based compensation for options granted to nonemployees is subject to periodic adjustment as the underlying equity instruments vest. We have granted stock options with performance conditions to certain executive officers, directors and nonemployee consultants. At each reporting date, we evaluate whether the achievement of the performance conditions is probable. Compensation expense is recorded over the appropriate service period based upon our assessment of achievement of each performance condition or the occurrence of the event which will trigger the options to vest. Comprehensive loss is comprised of net loss and other comprehensive income or loss. Other comprehensive income or loss consists of unrealized gains and losses on marketable securities. The computation of basic and diluted net loss per share attributable to common stockholders is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period and excludes all outstanding stock options, warrants, preferred stock, as well as shares issuable upon conversion of all outstanding convertible notes and term loans from the calculation of diluted net loss per common share, as all such securities are anti-dilutive to the computation for all the periods presented. For the three months ended March 31, 2017 and 2016, the computation of diluted net loss per share excluded 2,040,606 6,809,460 Three Months Ended March 31, 2017 2016 Net loss attributable to common stockholders $ (4,125) $ (2,234) Weighted average shares used in computation of basic and diluted net loss per share attributable to common stockholders 11,690 533 Basic and diluted net loss per share attributable to common stockholders $ (0.35) $ (4.19) We maintain our cash, cash equivalents and investments with high quality, accredited financial institutions. These amounts at times may exceed federally insured limits. We have not experienced any credit losses in such accounts and do not believe we are exposed to significant risk on these funds. Our cash and cash equivalents balances of $ 6.4 9.8 In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). In June 2016, the FASB issued ASU 2016-13, Financial Instruments: Credit Losses In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments Recently Adopted Accounting Policies In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation — Stock Compensation 103,000

Cash Equivalents and Marketable

Cash Equivalents and Marketable Securities	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Marketable Securities [Text Block]	3. Cash Equivalents and Marketable Securities March 31, 2017 Cost or Amortized Fair Cost Value (In thousands) Due in one year or less $ 5,162 $ 5,166 Due after one year through two years - - $ 5,162 $ 5,166 December 31, 2016 Cost or Amortized Fair Cost Value (In thousands) Due in one year or less $ 5,493 $ 5,496 Due after one year through two years - - $ 5,493 $ 5,496 We did not incur any realized gains and losses on sales of available-for-sale securities for the three months ended March 31, 2017 and 2016. None of the securities have been in a continuous unrealized loss position for more than 12 months as of March 31, 2017. March 31, 2017 Cost or Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Commercial paper $ 5,162 $ 4 $ - $ 5,166 $ 5,162 $ 4 $ - $ 5,166 December 31, 2016 Cost or Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Commercial paper $ 5,493 $ 3 $ - $ 5,496 $ 5,493 $ 3 $ - $ 5,496 Fair values were determined for each individual security in the investment portfolio. We utilize third-party pricing services for all security valuations. We review the pricing methodology, including the collection of market information, used by the third-party pricing services. On a periodic basis, we also review and validate the pricing information received from the third-party providers.

Term Loan

Term Loan	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	4. Term Loan On June 7, 2016, we entered into a Loan and Security Agreement (the “Loan Agreement”) by and among us, the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (the “Lenders”) and Hercules Capital, Inc. (“Hercules”), in its capacity as administrative agent for itself and the Lenders, pursuant to which the Lenders funded $ 6 The Term Loan bears interest at a floating annual rate equal to the greater of (i) 9.25% and (ii) the sum of (a) 9.25%, plus (b) the prime rate as reported by The Wall Street Journal minus 3.50% 5.85 At our option, we may prepay all or any portion of the outstanding principal balance and all accrued and unpaid interest with respect to the principal balance being prepaid of the Term Loan, subject to a prepayment fee of 3 2 1 In connection with the Loan Agreement, we also issued to Hercules Technology III, L.P., as the sole Lender on June 7, 2016, a warrant to purchase up to 63,000 5.00 The total debt discount, inclusive of the end of term charge and other fees, amounted to $ 659,000

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	5. Fair Value Measurements The following table sets forth the fair value of our assets measured at fair value at March 31, 2017 and December 31, 2016: March 31, 2017 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description Balance (Level 1) (Level 2) (Level 3) (In thousands) Money market $ 4,712 $ 4,712 $ - $ - Commercial paper 6,416 - 6,416 - Total financial assets $ 11,128 $ 4,712 $ 6,416 $ - Add Cash: 726 Total cash, cash equivalents and marketable securities $ 11,854 December 31, 2016 Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description Balance (Level 1) (Level 2) (Level 3) (In thousands) Money market $ 7,731 $ 7,731 $ - $ - Commercial paper 7,544 - 7,544 - Total financial assets $ 15,275 $ 7,731 $ 7,544 $ - Add Cash: $ 204 Total cash, cash equivalents and marketable securities $ 15,479

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	6. Stock-Based Compensation We granted incentive stock options to employees and members of the board of directors for their services on the board of directors and nonqualified stock options to nonemployee consultants for their consulting services. Options, in general, either vest in 48 25 th Weighted Average Average Weighted Remaining Intrinsic Number of Average Contractual Value Stock Options Exercise Price Life (in thousands) Outstanding as of December 31, 2016 1,751,473 $ 2.5434 Options granted 212,000 1.5419 Outstanding at March 31, 2017 1,963,473 $ 2.4352 8.55 $ 413,535 Exercisable at March 31, 2017 570,896 $ 1.9998 6.76 $ 260,483 At March 31, 2017, we had unrecognized compensation cost of $ 1.3 2.2 Three months ended March 31, 2017 2016 Research and development $ 126 $ 10 General and administrative 216 9 $ 342 $ 19 Three Months Ended March 31, 2017 2016 Weighted average estimated fair value per share $ 1.0419 $ 1.2474 Weighted average assumptions: Dividend yields - - Expected term (years) 6.1 6.0 Risk free interest rate 2.1 % 1.3 % Volatility 80.3 % 80.3 % The risk-free interest rates used in the Black-Scholes option pricing model are based on the implied yield currently available in United States Treasury securities at maturity with an equivalent term. We have limited stock option exercise information. Accordingly, the expected term of stock options granted was calculated using the simplified method, which represents the average of the contractual term of the stock option and the weighted-average vesting period of the stock option. We have not declared or paid any dividends and do not currently expect to do so in the foreseeable future. The value of our underlying common stock was determined by the board of directors, which relied in part upon the report of third party valuation specialists and input from our management prior to the IPO. Expected volatility is based on an average volatility of stock prices for a group of similar publicly traded companies. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model.

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The consolidated financial statements include the accounts of PhaseRx and its wholly owned subsidiary, PhaseRx Ireland Limited. All material intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. In preparing these consolidated financial statements, management has made its best estimates and judgments of certain amounts included in the consolidated financial statements, giving due consideration to materiality. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, fair value measurements, financing activities, accruals and other contingencies.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash Equivalents and Marketable Securities We invest our excess cash in investment grade short- to intermediate-term fixed income securities. Such investments are included in cash and cash equivalents or marketable securities, on the balance sheets, classified as available-for-sale and reported at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss). Realized gains and losses on the sale of these securities are recognized in net income or loss. We consider all highly liquid investments with original maturities at purchase of 90 days or less to be cash equivalents, an investment with a maturity greater than twelve months from the balance sheet date as long-term marketable securities and a maturity less than twelve months as short-term at the balance sheet date. Our cash equivalents and marketable securities consist principally of commercial paper and money market securities. Interest earned on securities is included in interest income. Gains are recognized when realized in our statements of operations. Losses are recognized when realized or when we have determined that an other-than-temporary decline in fair value has occurred. The cost of securities sold is based on the specific identification method. We periodically evaluate whether declines in fair values of our investments below their cost are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as our ability and intent to hold the investment until a forecasted recovery occurs. Factors considered include quoted market prices, recent financial results and operating trends, credit quality of debt instrument issuers, other publicly available information that may affect the value of our investments, duration and severity of the decline in value, and our strategy and intentions for holding the investment. Additionally, we assess whether it is more likely than not we will be required to sell any investment before recovery of its amortized cost basis.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments We establish the fair value of our assets and liabilities using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We established a fair value hierarchy based on the inputs used to measure fair value. The three levels of the fair value hierarchy are as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which little or no market data exists, therefore determined using estimates and assumptions developed by us, which reflect those that a market participant would use. We measure and report at fair value our cash equivalents and marketable securities. The carrying value of accounts payable and accrued liabilities approximate their respective fair values due to their relative short maturities. The carrying value of our Hercules term loan approximates fair value because the interest rate is reflective of the rate we could obtain on debt with similar terms and conditions. We may apply the fair value option to any eligible financial assets or liabilities, which permits an instrument by instrument irrevocable election to account for selected financial assets and liabilities at fair value. To date, we have not applied this election.
Research and Development Expense, Policy [Policy Text Block]	Research and Development Costs Research and development costs are expensed as incurred. Research and development costs include salaries and personnel-related costs, consulting fees, fees paid for contract research services, the costs of laboratory supplies, equipment and facilities, license fees and other external costs. Non-refundable advance payments for goods or services to be received in the future for use in research and development activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are performed.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-Based Compensation We expense the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of such instruments. We use the Black-Scholes option pricing model to calculate the fair value of any equity instruments on the grant date. We recognize stock-based compensation on the graded-vesting method as expense over the requisite service period. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to volatility, expected option term and, prior to the initial public offering (“IPO”), the fair value of our common stock. Measurement of stock-based compensation for options granted to nonemployees is subject to periodic adjustment as the underlying equity instruments vest. We have granted stock options with performance conditions to certain executive officers, directors and nonemployee consultants. At each reporting date, we evaluate whether the achievement of the performance conditions is probable. Compensation expense is recorded over the appropriate service period based upon our assessment of achievement of each performance condition or the occurrence of the event which will trigger the options to vest.
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive income or loss. Other comprehensive income or loss consists of unrealized gains and losses on marketable securities.
Earnings Per Share, Policy [Policy Text Block]	Net Loss Per Share The computation of basic and diluted net loss per share attributable to common stockholders is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period and excludes all outstanding stock options, warrants, preferred stock, as well as shares issuable upon conversion of all outstanding convertible notes and term loans from the calculation of diluted net loss per common share, as all such securities are anti-dilutive to the computation for all the periods presented. For the three months ended March 31, 2017 and 2016, the computation of diluted net loss per share excluded 2,040,606 6,809,460 Three Months Ended March 31, 2017 2016 Net loss attributable to common stockholders $ (4,125) $ (2,234) Weighted average shares used in computation of basic and diluted net loss per share attributable to common stockholders 11,690 533 Basic and diluted net loss per share attributable to common stockholders $ (0.35) $ (4.19)
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Risk We maintain our cash, cash equivalents and investments with high quality, accredited financial institutions. These amounts at times may exceed federally insured limits. We have not experienced any credit losses in such accounts and do not believe we are exposed to significant risk on these funds. Our cash and cash equivalents balances of $ 6.4 9.8
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). In June 2016, the FASB issued ASU 2016-13, Financial Instruments: Credit Losses In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments Recently Adopted Accounting Policies In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation — Stock Compensation 103,000

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Net loss attributable to common stockholders $ (4,125) $ (2,234) Weighted average shares used in computation of basic and diluted net loss per share attributable to common stockholders 11,690 533 Basic and diluted net loss per share attributable to common stockholders $ (0.35) $ (4.19)

Cash Equivalents and Marketab15

Cash Equivalents and Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Investments Classified by Contractual Maturity Date [Table Text Block]	The following tables summarize securities available-for-sale at cost and fair market value by contractual maturity: March 31, 2017 Cost or Amortized Fair Cost Value (In thousands) Due in one year or less $ 5,162 $ 5,166 Due after one year through two years - - $ 5,162 $ 5,166 December 31, 2016 Cost or Amortized Fair Cost Value (In thousands) Due in one year or less $ 5,493 $ 5,496 Due after one year through two years - - $ 5,493 $ 5,496
Available-for-sale Securities [Table Text Block]	The following tables summarize fair value of marketable securities available-for-sale and the gross unrealized gains and losses: March 31, 2017 Cost or Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Commercial paper $ 5,162 $ 4 $ - $ 5,166 $ 5,162 $ 4 $ - $ 5,166 December 31, 2016 Cost or Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Commercial paper $ 5,493 $ 3 $ - $ 5,496 $ 5,493 $ 3 $ - $ 5,496

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	The following table sets forth the fair value of our assets measured at fair value at March 31, 2017 and December 31, 2016: March 31, 2017 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description Balance (Level 1) (Level 2) (Level 3) (In thousands) Money market $ 4,712 $ 4,712 $ - $ - Commercial paper 6,416 - 6,416 - Total financial assets $ 11,128 $ 4,712 $ 6,416 $ - Add Cash: 726 Total cash, cash equivalents and marketable securities $ 11,854 December 31, 2016 Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Description Balance (Level 1) (Level 2) (Level 3) (In thousands) Money market $ 7,731 $ 7,731 $ - $ - Commercial paper 7,544 - 7,544 - Total financial assets $ 15,275 $ 7,731 $ 7,544 $ - Add Cash: $ 204 Total cash, cash equivalents and marketable securities $ 15,479

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Options Roll Forward [Table Text Block]	Weighted Average Average Weighted Remaining Intrinsic Number of Average Contractual Value Stock Options Exercise Price Life (in thousands) Outstanding as of December 31, 2016 1,751,473 $ 2.5434 Options granted 212,000 1.5419 Outstanding at March 31, 2017 1,963,473 $ 2.4352 8.55 $ 413,535 Exercisable at March 31, 2017 570,896 $ 1.9998 6.76 $ 260,483
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	Stock-based compensation expense has been included in the Statement of Operations as follows (in thousands): Three months ended March 31, 2017 2016 Research and development $ 126 $ 10 General and administrative 216 9 $ 342 $ 19
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	The fair value of the stock options was estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions during the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Weighted average estimated fair value per share $ 1.0419 $ 1.2474 Weighted average assumptions: Dividend yields - - Expected term (years) 6.1 6.0 Risk free interest rate 2.1 % 1.3 % Volatility 80.3 % 80.3 %

Business and Basis of Present18

Business and Basis of Presentation (Details Textual) $ in Millions	Mar. 31, 2017USD ($)
Cash, Cash Equivalents, and Short-term Investments	$ 11.9

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Net loss attributable to common stockholders	$ (4,125)	$ (2,234)
Weighted average shares used in computation of basic and diluted net loss per share attributable to common stockholders	11,690	533
Basic and diluted net loss per share attributable to common stockholders	$ (0.35)	$ (4.19)

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,040,606	6,809,460
Cash and Cash Equivalents, at Carrying Value	$ 6,688	$ 905	$ 9,983	$ 3,290
Accounting Standards Update 2016-09 [Member]
Cumulative Effect on Retained Earnings, Net of Tax	$ 103,000

Cash Equivalents and Marketab21

Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Cost or Amortized Cost, Due in one year or less	$ 5,162	$ 5,493
Cost or Amortized Cost, Due after one year through two years	0	0
Cost or Amortized Cost	5,162	5,493
Fair Value, Due in one year or less	5,166	5,496
Fair Value, Due after one year through two years	0	0
Fair Value	$ 5,166	$ 5,496

Cash Equivalents and Marketab22

Cash Equivalents and Marketable Securities (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Cost or Amortized Cost	$ 5,162	$ 5,493
Gross Unrealized Gains	4	3
Gross Unrealized Losses	0	0
Fair Value	5,166	5,496
Commercial Paper [Member]
Cost or Amortized Cost	5,162	5,493
Gross Unrealized Gains	4	3
Gross Unrealized Losses	0	0
Fair Value	$ 5,166	$ 5,496

Term Loan (Details Textual)

Term Loan (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Jun. 07, 2016
Debt Instrument, Interest Rate, Stated Percentage	9.75%
Hercules Term Loan [Member]
Debt instrument End of Term Loan Fee Percentage	5.85%
Debt Instrument Prepayment Fee Percentage, If Paid within Twelve Months	3.00%
Debt Instrument Prepayment Fee Percentage, If Paid within Two Years	2.00%
Debt Instrument Prepayment Fee Percentage, If Paid After Two Years	1.00%
Debt Instrument, Interest Rate Terms	greater of (i) 9.25% and (ii) the sum of (a) 9.25%, plus (b) the prime rate as reported by The Wall Street Journal minus 3.50%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		63,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 5
Debt Instrument, Face Amount		$ 6,000,000
Debt Instrument, Unamortized Discount	$ 659,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial Assets:
Total financial assets	$ 11,128	$ 15,275
Add Cash:	726	204
Total cash, cash equivalents and marketable securities	11,854	15,479
Money Market Funds [Member]
Financial Assets:
Total financial assets	4,712	7,731
Commercial Paper [Member]
Financial Assets:
Total financial assets	6,416	7,544
Fair Value, Inputs, Level 1 [Member]
Financial Assets:
Total financial assets	4,712	7,731
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Financial Assets:
Total financial assets	4,712	7,731
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member]
Financial Assets:
Total financial assets	0	0
Fair Value, Inputs, Level 2 [Member]
Financial Assets:
Total financial assets	6,416	7,544
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Financial Assets:
Total financial assets	0	0
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member]
Financial Assets:
Total financial assets	6,416	7,544
Fair Value, Inputs, Level 3 [Member]
Financial Assets:
Total financial assets	0	0
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Financial Assets:
Total financial assets	0	0
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member]
Financial Assets:
Total financial assets	$ 0	$ 0

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Stock Options, Balance beginning of period | shares	1,751,473
Number of Stock Options, Options granted | shares	212,000
Number of Stock Options, Balance end of period | shares	1,963,473
Number of Stock Options, Exercisable - end of period | shares	570,896
Weighted Average Exercise Price, Outstanding | $ / shares	$ 2.5434
Weighted- Average Exercise Price, Options granted | $ / shares	1.5419
Weighted-Average Exercise Price, Outstanding | $ / shares	2.4352
Weighted-Average Exercise Price, Exercisable - end of period | $ / shares	$ 1.9998
Weighted Average Remaining Contractual Life, Outstanding	8 years 6 months 18 days
Weighted Average Remaining Contractual Life, Exercisable	6 years 9 months 4 days
Average Intrinsic Value, Outstanding | $	$ 413,535
Average Intrinsic Value, Exercisable | $	$ 260,483

Stock-Based Compensation (Det26

Stock-Based Compensation (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 342	$ 19
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	126	10
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 216	$ 9

Stock-Based Compensation (Det27

Stock-Based Compensation (Details 2) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average estimated fair value per share	$ 1.0419		$ 1.2474
Weighted average assumptions:
Dividend yields	0.00%	0.00%
Expected term (years)	6 years 1 month 6 days	6 years
Risk free interest rate	2.10%	1.30%
Volatility	80.30%	80.30%

Stock-Based Compensation (Det28

Stock-Based Compensation (Details Textual) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 1.3
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 2 months 12 days
Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	48 months
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%