Zevra Therapeutics (ZVRA) 10-Q 10 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 09, 2018
Document Information [Line Items]
Entity Registrant Name	KEMPHARM, INC
Entity Central Index Key	1,434,647
Trading Symbol	kmph
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		16,042,018
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Balance Sheets (Curre

Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 16,497	$ 10,871
Restricted cash	1,100	1,100
Marketable securities	11,702	31,358
Trade date receivables		2,005
Prepaid expenses and other current assets	1,610	1,662
Total current assets	30,909	46,996
Property and equipment, net	1,841	2,004
Long-term investments		3,250
Other long-term assets	1,250	206
Total assets	34,000	52,456
Liabilities and stockholders' deficit
Accounts payable and accrued expenses	13,967	7,875
Current portion of convertible notes	3,333	3,333
Current portion of capital lease obligation	190	189
Other current liabilities	113	112
Total current liabilities	17,603	11,509
Convertible notes, less current portion, net	86,845	89,398
Derivative and warrant liability	11,888	7,709
Capital lease obligation, less current portion	466	562
Other long-term liabilities	743	794
Total liabilities	117,545	109,972
Commitments and contingencies (Note D)
Stockholders’ deficit:
Common stock, $0.0001 par value, 250,000,000 shares authorized, 15,905,146 shares issued and outstanding as of June 30, 2018 (unaudited); 14,657,430 shares issued and outstanding as of December 31, 2017	2	1
Additional paid-in capital	117,391	107,209
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of June 30, 2018 (unaudited) or December 31, 2017	0	0
Accumulated deficit	(200,938)	(164,726)
Total stockholders' deficit	(83,545)	(57,516)
Total liabilities and stockholders' deficit	$ 34,000	$ 52,456

Condensed Balance Sheets (Curr3

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	15,905,146	14,657,430
Common stock, shares outstanding (in shares)	15,905,146	14,657,430
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Unaudited Condensed Statements

Unaudited Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue
Operating expenses:
Research and development	10,488	4,650	22,125	8,764
General and administrative	3,420	3,574	6,552	6,840
Total operating expenses	13,908	8,224	28,677	15,604
Loss from operations	(13,908)	(8,224)	(28,677)	(15,604)
Other (expense) income:
Interest expense related to amortization of debt issuance costs and discount	(390)	(390)	(780)	(780)
Interest expense on principal	(1,419)	(1,443)	(2,861)	(2,884)
Fair value adjustment related to derivative and warrant liability	5,562	3,523	(4,179)	(3,693)
Interest and other income, net	123	13	238	114
Total other (expense) income	3,876	1,703	(7,582)	(7,243)
Loss before income taxes	(10,032)	(6,521)	(36,259)	(22,847)
Income tax benefit	39	4	47	8
Net loss	$ (9,993)	$ (6,517)	$ (36,212)	$ (22,839)
Net loss per share:
Basic (in dollars per share)	$ (0.65)	$ (0.44)	$ (2.41)	$ (1.56)
Diluted (in dollars per share)	$ (0.91)	$ (0.44)	$ (2.41)	$ (1.56)
Weighted average number of shares of common stock outstanding:
Basic (in shares)	15,317,536	14,649,586	15,056,161	14,648,291
Diluted (in shares)	16,548,751	14,649,586	15,056,161	14,648,291

Unaudited Condensed Statements5

Unaudited Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (36,212)	$ (22,839)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	2,659	2,254
Non-cash interest expense	2,195	2,220
Amortization of debt issuance costs and debt discount	780	780
Depreciation and amortization expense	166	164
Fair value adjustment related to derivative and warrant liability	4,179	3,693
Loss on sublease		102
Change in assets and liabilities:
Prepaid expenses and other assets	(1,030)	(151)
Accounts payable and accrued expenses	4,063	(2,318)
Other liabilities	(51)	101
Net cash used in operating activities	(23,251)	(15,994)
Cash flows from investing activities:
Purchases of property and equipment		(143)
Purchases of marketable securities and long-term investments		(20,922)
Maturities and sales of marketable securities	24,911	32,806
Net cash provided by investing activities	24,911	11,741
Cash flows from financing activities:
Proceeds from at-the-market offering, net of commissions	3,992
Repayment of obligations under capital lease	(94)	(77)
Payment of deferred offering costs		(50)
Proceeds from exercise of common stock options	68	4
Net cash provided by (used in) financing activities	3,966	(123)
Net increase (decrease) in cash, cash equivalents and restricted cash	5,626	(4,376)
Cash, cash equivalents and restricted cash, beginning of period	11,971	17,862
Cash, cash equivalents and restricted cash, end of period	17,597	13,486
Supplemental cash flow information:
Cash paid for interest	2,863	2,857
Conversion of Deerfield Convertible Note principal and interest	3,502
Fixed assets financed under a lease agreement		284
Deferred offering costs included in accounts payable and accrued expenses		60
Fixed assets included in accounts payable and accrued expenses	$ 3	$ 7

Note A - Description of Busines

Note A - Description of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	A. Description of Business and Basis of Presentation Organization KemPharm, Inc. (the “Company”) is a specialty pharmaceutical company focused on the discovery and development of proprietary prodrugs to treat serious medical conditions through its Ligand Activated Therapy ("LAT™") platform technology. The Company utilizes its proprietary LAT platform technology to generate improved prodrug versions of U.S. Food and Drug Administration (the "FDA") approved drugs in the high need areas of attention deficit hyperactivity disorder ("ADHD"), pain and other central nervous system ("CNS") disorders. The Company was formed and incorporated in Iowa on October 30, 2006 May 30, 2014. The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for inter im financial information and with the instructions to Form 10 8 03 X. not three six June 30, 2018 not may December 31, 2018. This interim information should be read in conjunction with the audited financial statements included in the Company ’s Annual Report on Form 10 December 31, 2017, March 30, 2018. Going Concern The unaudited condensed financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has experienced recurring losses from operations and negative operating cash flows due to its ongoing research and development of its product and product candidates. The Company also has an accumulated deficit as of June 30, 2018. Management believes these conditions raise substantial doubt about the Company’s ability to continue as a going concern within the twelve Management intends to finance operating costs over the next twelve 3 $150.0 3 $20,000,000 Entry into ATM Agreement On October 3, 2016, may $50,000,000 3 October 17, 2016. 3 $20,000,000 Cowen may 415 1933, ASDAQ may three 3.0% The Company is not June 30, 2018, $0.2 As of June 30, 2018, 625,466 $4.1

Note B - Summary of Significant

Note B - Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Significant Accounting Policies [Text Block]	B. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to the useful lives of property and equipment, and assumptions used for purposes of determining stock-based compensation, income taxes, and the fair value of the derivative and warrant liability, among others. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Application of New or Revised Accounting Standards—Adopted From time to time, the Financial Accounting Standards Board (the “FASB”) or other standard-setting bodies issue accounting standards that are adopted by the Company as of the specified effective date. On April 5, 2012, could have not In May 2014, 606, Revenue Recognition—Revenue from Contracts with Customers 606" 605, Revenue Recognition January 1, 2018. not not In January 2016, 2016 01, Financial Instruments Overall – Recognition and Measurement of Financial Assets and Liabilities (Topic 825 - 10 ) 2016 01” 825 10. December 15, 2017, 2016 01 not In August 2016, 2016 15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230 ) 2016 15” eight 230. December 15, 2017, 2016 15 not In May 2017, 2017 09, Compensation – Stock Compensation (Topic 718 ) – Scope of Modification Accounting 2017 09" 718. December 15, 2017, 2017 09 not Application of New or Revised Accounting Standards —Not In February 2016, 2016 02, Leases (Topic 842 ) 2016 02” twelve 2016 02 December 15, 2018, 2016 02 In July 2017, 2017 11, Earnings Per Share (Topic 260 ), Distinguishing Liabilities from Equity (Topic 480 ), Derivatives and Hedging (Topic 815 ) – I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception 2017 11" 480 260. December 15, 2018, 2017 11

Note C - Debt Obligations

Note C - Debt Obligations	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	C. Debt Obligations Deerfield Facility Agreement On June 2, 2014, $60 first $15 $10 June 30, 2016, no 9.75% may $5.85 The Company also issued to Deerfield a warrant to purchase 14,423,076 $0.78 June 2, 2024 1,923,077 $5.85 260, Earnings per Share, may one third 12 1934, In addition, the Company issued to Deerfield 1,923,077 256,410 $1.5 Pursuant to the Deerfield Facility Agreement, the Company may not $750,000 The Company must repay one third fourth fifth February 14, 2020. February 2016. The outstanding principal amount due on the fourth anniversary of the Deerfield Facility Agreement and the related accrued but unpaid interest as of such date was converted in common stock of the Company in accordance with the provisions of the Deerfield Convertible Note. Refer to the section entitled Facility Agreement Waiver and Fifth Amendment to Senior Secured Convertible Note below. Interest accrued on outstanding debt under the Deerfield Facility Agreement is due quarterly in arrears. Upon notice to Deerfield, the Company had the option to have one first eight July 1, 2016. eight June 30, 2016. July 1, 2016. In connection with the IPO, on March 6, 2015, Second Amendment to Senior Secured Convertible Note and Warrant On January 6, 2016, Issuance of 5.50% Senior Convertible Notes and Third Amendment to Facility Agreement, Senior Secured Convertible Note and Warrant On February 9, 2016, $86.3 5.50% 2021 “2021 2021 144A The net proceeds from the Note Offering were approximately $82.8 $18.6 The 2021 February 9, 2016 2021 February 1 August 1 August 1, 2016, 5.50% 2021 February 1, 2021 2021 not no 2021 The 2021 58.4454 $1,000 2021 $17.11 2021 not 2021 If the Company undergoes a “fundamental change” (as defined in the Indenture), holders may 2021 100% 2021 2021 one 2021 may The Indenture includes customary terms and covenants, including certain events of default after which the 2021 may In connection with the Note Offering, on February 3, 2016, 2021 Fourth Amendment to Senior Secured Convertible Note and Warrant In connection with entering into the ATM Agreement, on October 3, 2016, 415 Facility Agreement Waiver and Fifth Amendment to Senior Secured Convertible Note On June 11, 2018, $3,333,333 $168,288 598,568 June 2, 2018; ( Except as modified by the First Amendment, Second Amendment, Third Amendment, Fourth Amendment and Fifth Amendment, all terms and conditions of the Deerfield Facility Agreement, Deerfield Warrant and Deerfield Convertible Note remained in full force and effect. Line of Credit During the second 2016, $1.1 30, 2018 $0.4 January 31, 2018. January 31, 2018, two January 31, 2020. June 30, 2018 no no 1 2.00% 3.98 June 30, 2018.

Note D - Commitments and Contin

Note D - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	D. Commitments and Contingencies From time to time, the Company is involved in various legal proceedings arising in the normal course of business. For some matters, a liability is not not June 30, 2018 December 31, 2017, no In December 2016, On June 27, 2018,

Note E - Preferred Stock and Wa

Note E - Preferred Stock and Warrants	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Preferred Stock [Text Block]	E. Preferred Stock and Warrants Authorized, Issued, and Outstanding Preferred Stock As of June 30 , 2018 and 2017, 10,000,000 not Warrants During 2013, $3.8 “2013 1,079,453 2013 2013 1,079,453 2013 143,466 $5.85 2013 June 2, 2019, On June 2, 2014, 14,423,076 June 2, 2024, 1,923,077 $5.85 The Company determined that the 2013 2013 2013

Note F - Common Stock and Warra

Note F - Common Stock and Warrants	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	F. Common Stock and Warrants Authorized, Issued, and Outstanding Common Shares In April 2015, 250,000,000 15,905,146 14,657,430 June 30, 2018 December 31, 2017, As of June 30, 2018 December 31, 2017, June 30, 2018 December 31, 2017 Conversion of Deerfield Convertible Note 1,148,124 1,751,410 Conversion of 2021 Notes 5,040,914 5,040,914 Outstanding awards under equity incentive plans 3,682,996 2,853,924 Outstanding common stock warrants 2,027,763 2,027,763 Possible future issuances under equity incentive plans 675,897 944,700 Total common shares reserved for future issuance 12,575,694 12,618,711 Common Stock Activity The following table summarizes common stock activity for the six June 30, 2018: Shares of Common Stock Balance as of December 31, 2017 14,657,430 Common stock sold under the ATM Agreement 625,466 Common stock issued as a result of Deerfield Convertible Note principal and interest conversion 598,568 Common stock options exercised 23,682 Balance as of June 30, 2018 15,905,146 As of June 30, 2018, 625,466 $4.1

Note G - Stock-based Compensati

Note G - Stock-based Compensation	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	G. Stock-Based Compensation The Company maintains a stock-based compensation plan (the “ Incentive Stock Plan”) that governs stock awards made to employees and directors prior to completion of the IPO. In November 2014, April 2015, 2014 “2014 April 2015. 2014 may 2014 4,018,480 June 30, 2018. 2014 January 1 January 1, 2016, January 1, 2024, 4% December 31 2014 January 1, 2018, 2014 586,297 During the three six 30, 2018 22,375 23,682 three six 30, 2017, 9,750 Stock-based compensation expense recorded under the Incentive Stock Plan and the 2014 Three months ended June 30, Six months ended June 30 , 2018 2017 2018 2017 Research and development $ 412 $ 340 $ 787 $ 631 General and administrative 968 825 1,872 1,623 Total stock-based compensation expense 1,380 1,165 2,659 $ 2,254 There was no three six June 30, 2018 2017 .

Note H - Fair Value of Financia

Note H - Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Fair Value Disclosures [Text Block]	H. Fair Value of Financial Instruments The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as 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, based on the Company’s principal or, in absence of a principal, most advantageous market for the specific asset or liability. The Company uses a three three ● Level 1 —Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; ● Level 2 —Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and ● Level 3 —Unobservable inputs that are supported by little or no The carrying amounts of certain financial instruments, including cash and cash equivalents, restricted cash and accounts payable, approximate their respective fair values due to the short-term nature of such instruments. The fair value of the Deerfield Convertible Note was $8.6 $11.0 June 30, 2018 December 31, 2017. 2021 $60.5 $51.9 June 30, 2018 December 31, 2017. 2021 3 2021 June 30, 2018 December 31, 2017. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. This determination requires significant judgments to be made. The following table summarizes the conclusions reached regarding fair value measurements as of June 30, 2018 December 31, 2017 ( Balance as of June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Deerfield Warrant liability $ 8,461 $ — $ — $ 8,461 Embedded Warrant Put Option 577 — — 577 Fundamental change and make-whole interest provisions embedded in 2021 Notes 26 — — 26 Embedded Deerfield Note Put Option 2,824 — — 2,824 Total liabilities $ 11,888 $ — $ — $ 11,888 Trading securities: Certificates of deposit $ 1,217 $ 1,217 $ — $ — U.S. Treasury securities 10,485 10,485 — — Total assets $ 11,702 $ 11,702 $ — $ — Balance as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Deerfield Warrant liability $ 5,115 $ — $ — $ 5,115 Embedded Warrant Put Option 365 — — 365 Fundamental change and make-whole interest provisions embedded in 2021 Notes 14 — — 14 Embedded Deerfield Note Put Option 2,215 — — 2,215 Total liabilities $ 7,709 $ — $ — $ 7,709 Trading securities: Certificates of deposit $ 5,616 $ 5,616 $ — $ — U.S. Treasury securities 25,988 25,988 — — U.S. government-sponsored agency securities 3,004 — 3,004 — Total assets $ 34,608 $ 31,604 $ 3,004 $ — The Company’s Deerfield Warrant liability, embedded Warrant Put Option, the fundamental change and the make-whole interest provisions embedded in the 2021 June 30, 2018 and December 31, 2017, 2021 2021 June 30, 2018 and December 31, 2017. 2021 three six June 30, 2018 and 2017 A reconciliation of the beginning and ending balances for the derivative and warrant liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3 Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance as of beginning of period $ 17,450 $ 11,834 $ 7,709 $ 4,618 Adjustment to fair value (5,562 ) (3,523 ) 4,179 3,693 Balance as of end of period $ 11,888 $ 8,311 $ 11,888 $ 8,311

Note I - Net Earnings Per Share

Note I - Net Earnings Per Share	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Earnings Per Share [Text Block]	I. Net Earnings Per Share Under the two No no two two Diluted net loss per share was the same as basic net loss per share for the six June 30, 2018 three six June 30, 2017, Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Warrants to purchase common stock 104,686 2,027,763 2,027,763 2,027,763 Awards under equity incentive plans 3,682,996 2,873,344 3,682,996 2,873,344 Deerfield Convertible Note — 1,750,954 1,148,124 1,750,954 2021 Notes 5,040,914 5,040,914 5,040,914 5,040,914 Total securities excluded from the calculation of weighted average number of shares of common stock outstanding 8,828,596 11,692,975 11,899,797 11,692,975 The following table reconciles basic net loss per share of common stock to diluted net loss per share of common stock for the three June 30, 2018 ( Three months ended June 30, 2018 Basic net loss per share of common stock: Net loss $ (9,993 ) Less: Net loss allocable to participating securities — Net loss allocable to shares of common stock (9,993 ) Less: Dividends declared or accumulated — Undistributed net loss allocable to shares of common stock, basic $ (9,993 ) Weighted average number of shares of common stock outstanding 15,318 Basic net loss per share of common stock $ (0.65 ) Diluted net loss per share of common stock: Net loss $ (9,993 ) Less: Fair value adjustment income related to Deerfield Warrant liability (2,615 ) Add back: Total interest expense related to Deerfield Convertible Note 409 Less: Fair value adjustment income related to embedded Deerfield Note Put Option (2,923 ) Net loss allocable to shares of common stock, diluted $ (15,122 ) Weighted average number of shares of common stock outstanding 15,318 Dilutive effect of Deerfield Warrant 79 Dilutive effect of Deerfield Convertible Note 1,152 Weighted average number of shares of common stock outstanding, diluted 16,549 Diluted net loss per share of common stock $ (0.91 )

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to the useful lives of property and equipment, and assumptions used for purposes of determining stock-based compensation, income taxes, and the fair value of the derivative and warrant liability, among others. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities.
New Accounting Pronouncements, Policy [Policy Text Block]	Application of New or Revised Accounting Standards—Adopted From time to time, the Financial Accounting Standards Board (the “FASB”) or other standard-setting bodies issue accounting standards that are adopted by the Company as of the specified effective date. On April 5, 2012, could have not In May 2014, 606, Revenue Recognition—Revenue from Contracts with Customers 606" 605, Revenue Recognition January 1, 2018. not not In January 2016, 2016 01, Financial Instruments Overall – Recognition and Measurement of Financial Assets and Liabilities (Topic 825 - 10 ) 2016 01” 825 10. December 15, 2017, 2016 01 not In August 2016, 2016 15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments (Topic 230 ) 2016 15” eight 230. December 15, 2017, 2016 15 not In May 2017, 2017 09, Compensation – Stock Compensation (Topic 718 ) – Scope of Modification Accounting 2017 09" 718. December 15, 2017, 2017 09 not
New Accounting Pronouncements, Not Yet Adopted, Policy [Policy Text Block]	Application of New or Revised Accounting Standards —Not In February 2016, 2016 02, Leases (Topic 842 ) 2016 02” twelve 2016 02 December 15, 2018, 2016 02 In July 2017, 2017 11, Earnings Per Share (Topic 260 ), Distinguishing Liabilities from Equity (Topic 480 ), Derivatives and Hedging (Topic 815 ) – I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception 2017 11" 480 260. December 15, 2018, 2017 11

Note F - Common Stock and War16

Note F - Common Stock and Warrants (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Tables
Schedule of Authorized Shares of Common Stock Reserved for Future Issuance [Table Text Block]	June 30, 2018 December 31, 2017 Conversion of Deerfield Convertible Note 1,148,124 1,751,410 Conversion of 2021 Notes 5,040,914 5,040,914 Outstanding awards under equity incentive plans 3,682,996 2,853,924 Outstanding common stock warrants 2,027,763 2,027,763 Possible future issuances under equity incentive plans 675,897 944,700 Total common shares reserved for future issuance 12,575,694 12,618,711
Schedule of Common Stock Outstanding Roll Forward [Table Text Block]	Shares of Common Stock Balance as of December 31, 2017 14,657,430 Common stock sold under the ATM Agreement 625,466 Common stock issued as a result of Deerfield Convertible Note principal and interest conversion 598,568 Common stock options exercised 23,682 Balance as of June 30, 2018 15,905,146

Note G - Stock-based Compensa17

Note G - Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Tables
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three months ended June 30, Six months ended June 30 , 2018 2017 2018 2017 Research and development $ 412 $ 340 $ 787 $ 631 General and administrative 968 825 1,872 1,623 Total stock-based compensation expense 1,380 1,165 2,659 $ 2,254

Note H - Fair Value of Financ18

Note H - Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Balance as of June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Deerfield Warrant liability $ 8,461 $ — $ — $ 8,461 Embedded Warrant Put Option 577 — — 577 Fundamental change and make-whole interest provisions embedded in 2021 Notes 26 — — 26 Embedded Deerfield Note Put Option 2,824 — — 2,824 Total liabilities $ 11,888 $ — $ — $ 11,888 Trading securities: Certificates of deposit $ 1,217 $ 1,217 $ — $ — U.S. Treasury securities 10,485 10,485 — — Total assets $ 11,702 $ 11,702 $ — $ — Balance as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Deerfield Warrant liability $ 5,115 $ — $ — $ 5,115 Embedded Warrant Put Option 365 — — 365 Fundamental change and make-whole interest provisions embedded in 2021 Notes 14 — — 14 Embedded Deerfield Note Put Option 2,215 — — 2,215 Total liabilities $ 7,709 $ — $ — $ 7,709 Trading securities: Certificates of deposit $ 5,616 $ 5,616 $ — $ — U.S. Treasury securities 25,988 25,988 — — U.S. government-sponsored agency securities 3,004 — 3,004 — Total assets $ 34,608 $ 31,604 $ 3,004 $ —
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance as of beginning of period $ 17,450 $ 11,834 $ 7,709 $ 4,618 Adjustment to fair value (5,562 ) (3,523 ) 4,179 3,693 Balance as of end of period $ 11,888 $ 8,311 $ 11,888 $ 8,311

Note I - Net Earnings Per Sha19

Note I - Net Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Warrants to purchase common stock 104,686 2,027,763 2,027,763 2,027,763 Awards under equity incentive plans 3,682,996 2,873,344 3,682,996 2,873,344 Deerfield Convertible Note — 1,750,954 1,148,124 1,750,954 2021 Notes 5,040,914 5,040,914 5,040,914 5,040,914 Total securities excluded from the calculation of weighted average number of shares of common stock outstanding 8,828,596 11,692,975 11,899,797 11,692,975
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended June 30, 2018 Basic net loss per share of common stock: Net loss $ (9,993 ) Less: Net loss allocable to participating securities — Net loss allocable to shares of common stock (9,993 ) Less: Dividends declared or accumulated — Undistributed net loss allocable to shares of common stock, basic $ (9,993 ) Weighted average number of shares of common stock outstanding 15,318 Basic net loss per share of common stock $ (0.65 ) Diluted net loss per share of common stock: Net loss $ (9,993 ) Less: Fair value adjustment income related to Deerfield Warrant liability (2,615 ) Add back: Total interest expense related to Deerfield Convertible Note 409 Less: Fair value adjustment income related to embedded Deerfield Note Put Option (2,923 ) Net loss allocable to shares of common stock, diluted $ (15,122 ) Weighted average number of shares of common stock outstanding 15,318 Dilutive effect of Deerfield Warrant 79 Dilutive effect of Deerfield Convertible Note 1,152 Weighted average number of shares of common stock outstanding, diluted 16,549 Diluted net loss per share of common stock $ (0.91 )

Note A - Description of Busin20

Note A - Description of Business and Basis of Presentation (Details Textual) - USD ($)	6 Months Ended	21 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Oct. 17, 2016	Oct. 03, 2016
Sale of Securities, Value, Available to Issue	$ 150,000,000	$ 150,000,000
Sale of Stock, Value, Available to Issue	$ 20,000,000	20,000,000
Stock Issued During Period, Shares, New Issues	625,466
Other Noncurrent Assets [Member]
Deferred Offering Costs	$ 200,000	$ 200,000
Cowen and Company, LLC [Member]
Sale of Stock, Authorized Offering Price			$ 20,000,000
Sale of Stock, Commission Fee			3.00%
Stock Issued During Period, Shares, New Issues	625,466	625,466
Proceeds from Issuance of Common Stock	$ 4,100,000	$ 4,100,000
Cowen and Company, LLC [Member] | Maximum [Member]
Sale of Stock, Authorized Offering Price				$ 50,000,000

Note C - Debt Obligations (Deta

Note C - Debt Obligations (Details Textual) - USD ($)	Jun. 11, 2018	Jan. 31, 2018	Feb. 09, 2016	Jun. 02, 2014	Jun. 30, 2018	Jun. 30, 2016	Dec. 31, 2013
Conversion from Deerfield Convertible Note to Common Stock [Member]
Debt Conversion, Converted Instrument, Shares Issued	598,568
Debt Conversion, Original Debt, Amount	$ 3,333,333
Debt Conversion, Accrued Interest	$ 168,288
Series D Redeemable Convertible Preferred Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							1,079,453
2021 Notes [Member]
Debt Instrument, Convertible, Conversion Price			$ 17.11
Debt Instrument, Face Amount			$ 86,300,000
Debt Instrument, Interest Rate, Stated Percentage			5.50%
Proceeds from Debt, Net of Issuance Costs			$ 82,800,000
Repayments of Long-term Debt, Total			18,600,000
Debt Instrument, Sinking Fund Payment			$ 0
Debt Conversion, Converted Instrument, Shares Issued			58.4454
Debt Conversion, Original Debt, Amount			$ 1,000
Debt Instrument Repurchase Price Equal to Percentage of Principal Amount			100.00%
Deerfield Facility Agreement [Member]
Line of Credit Facility, Maximum Borrowing Capacity				$ 60,000,000
Line of Credit Facility, Interest Rate at Period End				9.75%
Debt Covenant, Debt Financing Restriction				$ 750,000
Deerfield Facility Agreement [Member] | IPO [Member]
Reclassification of Common Stock Shares				256,410
Deerfield Facility Agreement [Member] | Deerfield Warrant [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 0.78
Deerfield Facility Agreement [Member] | Deerfield Warrant [Member] | IPO [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				1,923,077
Deerfield Facility Agreement [Member] | Series D Redeemable Convertible Preferred Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				14,423,076
Own-share Lending Arrangement, Shares, Issued				1,923,077
Mandatorily Redeemable Preferred Stock, Fair Value Disclosure				$ 1,500,000
Deerfield Facility Agreement [Member] | Term Notes [Member]
Proceeds from Secured Notes Payable				15,000,000
Deerfield Facility Agreement [Member] | Deerfield Convertible Notes [Member]
Proceeds from Secured Notes Payable				$ 10,000,000
Debt Instrument, Convertible, Conversion Price				$ 5.85
Third Line of Credit Agreement [Member] | City National Bank of Florida [Member]
Line of Credit Facility, Maximum Borrowing Capacity						$ 1,100,000
Line of Credit Facility, Remaining Borrowing Capacity					$ 400,000
Long-term Line of Credit, Total					$ 0
Line of Credit Facility, Expiration Period		2 years
Third Line of Credit Agreement [Member] | City National Bank of Florida [Member] | Prime Rate [Member]
Debt Instrument, Interest Rate, Stated Percentage					3.98%
Debt Instrument, Basis Spread on Variable Rate					2.00%

Note D - Commitments and Cont22

Note D - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loss Contingency Accrual, Ending Balance	$ 0	$ 0

Note E - Preferred Stock and 23

Note E - Preferred Stock and Warrants (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Jun. 02, 2014	Dec. 31, 2013	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Preferred Stock, Shares Authorized			10,000,000	10,000,000	10,000,000
Preferred Stock, Shares Outstanding, Ending Balance			0	0	0
Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		143,466
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 5.85
Series D Redeemable Convertible Preferred Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		1,079,453
2013 Warrants [Member]
Class of Warrant or Right Issued		1,079,453
Deerfield Warrant [Member]
Class of Warrant or Right Issued	14,423,076
Deerfield Warrant [Member] | Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1,923,077
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5.85
Convertible Notes Payable [Member]
Debt Instrument, Face Amount		$ 3.8

Note F - Common Stock and War24

Note F - Common Stock and Warrants (Details Textual) - USD ($)	6 Months Ended	21 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Apr. 30, 2015
Common Stock, Shares Authorized	250,000,000	250,000,000	250,000,000	250,000,000
Common Stock, Shares, Issued, Total	15,905,146	15,905,146	14,657,430
Stock Issued During Period, Shares, New Issues	625,466
Cowen and Company, LLC [Member]
Stock Issued During Period, Shares, New Issues	625,466	625,466
Proceeds from Issuance of Common Stock	$ 4,100,000	$ 4,100,000

Note F - Common Stock and War25

Note F - Common Stock and Warrants - Reserved Authorized Shares of Common Stock for Future Issuance (Details) - shares	Jun. 30, 2018	Dec. 31, 2017
Common shares reserved for future issuance (in shares)	12,575,694	12,618,711
Warrant [Member]
Common shares reserved for future issuance (in shares)	2,027,763	2,027,763
Stock Compensation Plan [Member]
Common shares reserved for future issuance (in shares)	3,682,996	2,853,924
Possible Future Issuances Under Equity Incentive Plans [Member]
Common shares reserved for future issuance (in shares)	675,897	944,700
2021 Notes [Member]
Common shares reserved for future issuance (in shares)	5,040,914	5,040,914
Convertible Notes Payable [Member]
Common shares reserved for future issuance (in shares)	1,148,124	1,751,410

Note F - Common Stock and War26

Note F - Common Stock and Warrants - Common Stock Activity (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Balance (in shares)			14,657,430
Common stock sold under the ATM Agreement (in shares)			625,466
Common stock issued as a result of Deerfield Convertible Note principal and interest conversion (in shares)			598,568
Common stock options exercised (in shares)	22,375	9,750	23,682	9,750
Balance (in shares)	15,905,146		15,905,146

Note G - Stock-based Compensa27

Note G - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	22,375	9,750	23,682	9,750
Allocated Share-based Compensation Expense, Total	$ 1,380	$ 1,165	$ 2,659	$ 2,254
Research and Development Expense [Member]
Allocated Share-based Compensation Expense, Total	412	340	787	631
Performance Shares [Member] | Research and Development Expense [Member]
Allocated Share-based Compensation Expense, Total	$ 0	$ 0	$ 0	$ 0
2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	4,018,480		4,018,480
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Reserved for Issuance, Incremental Percentage of Capital Stock Outstanding			4.00%
Increase in Common Stock Reserved for Issuance			586,297

Note G - Stock-based Compensa28

Note G - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock based compensation expense	$ 1,380	$ 1,165	$ 2,659	$ 2,254
Research and Development Expense [Member]
Stock based compensation expense	412	340	787	631
General and Administrative Expense [Member]
Stock based compensation expense	$ 968	$ 825	$ 1,872	$ 1,623

Note H - Fair Value of Financ29

Note H - Fair Value of Financial Instruments (Details Textual) - Fair Value, Inputs, Level 3 [Member] - Deerfield Facility Agreement [Member] - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Deerfield Convertible Notes [Member]
Long-term Debt, Fair Value	$ 8.6	$ 11
Term Notes [Member]
Long-term Debt, Fair Value	$ 60.5	$ 51.9

Note H - Fair Value of Financ30

Note H - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial liabilities measured at fair value on recurring basis	$ 11,888	$ 7,709
Financial assets measured at fair value on recurring basis	11,702	34,608
Certificates of Deposit [Member]
Financial assets measured at fair value on recurring basis	1,217	5,616
US Treasury Securities [Member]
Financial assets measured at fair value on recurring basis	10,485	25,988
US Government Corporations and Agencies Securities [Member]
Financial assets measured at fair value on recurring basis		3,004
Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Financial assets measured at fair value on recurring basis	11,702	31,604
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]
Financial assets measured at fair value on recurring basis	1,217	5,616
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]
Financial assets measured at fair value on recurring basis	10,485	25,988
Fair Value, Inputs, Level 1 [Member] | US Government Corporations and Agencies Securities [Member]
Financial assets measured at fair value on recurring basis
Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis
Financial assets measured at fair value on recurring basis		3,004
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member]
Financial assets measured at fair value on recurring basis
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member]
Financial assets measured at fair value on recurring basis
Fair Value, Inputs, Level 2 [Member] | US Government Corporations and Agencies Securities [Member]
Financial assets measured at fair value on recurring basis		3,004
Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis	11,888	7,709
Financial assets measured at fair value on recurring basis
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member]
Financial assets measured at fair value on recurring basis
Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member]
Financial assets measured at fair value on recurring basis
Fair Value, Inputs, Level 3 [Member] | US Government Corporations and Agencies Securities [Member]
Financial assets measured at fair value on recurring basis
Deerfield Warrant Liability [Member]
Financial liabilities measured at fair value on recurring basis	8,461	5,115
Deerfield Warrant Liability [Member] | Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Deerfield Warrant Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis
Deerfield Warrant Liability [Member] | Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis	8,461	5,115
Embedded Put Option [Member]
Financial liabilities measured at fair value on recurring basis	577	365
Embedded Put Option [Member] | Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Put Option [Member] | Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Put Option [Member] | Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis	577	365
Fundamental Change and Make-Whole Interest Provisions Embedded in 2021 Notes [Member]
Financial liabilities measured at fair value on recurring basis	26	14
Fundamental Change and Make-Whole Interest Provisions Embedded in 2021 Notes [Member] | Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Fundamental Change and Make-Whole Interest Provisions Embedded in 2021 Notes [Member] | Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis
Fundamental Change and Make-Whole Interest Provisions Embedded in 2021 Notes [Member] | Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis	26	14
Embedded Deerfield Note Put Option [Member]
Financial liabilities measured at fair value on recurring basis	2,824	2,215
Embedded Deerfield Note Put Option [Member] | Fair Value, Inputs, Level 1 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Deerfield Note Put Option [Member] | Fair Value, Inputs, Level 2 [Member]
Financial liabilities measured at fair value on recurring basis
Embedded Deerfield Note Put Option [Member] | Fair Value, Inputs, Level 3 [Member]
Financial liabilities measured at fair value on recurring basis	$ 2,824	$ 2,215

Note H - Fair Value of Financ31

Note H - Fair Value of Financial Instruments - Reconciliation of Beginning and Ending Balances for Derivative and Warrant Liability Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Balance as of beginning of period	$ 17,450	$ 11,834	$ 7,709	$ 4,618
Adjustment to fair value	(5,562)	(3,523)	4,179	3,693
Balance as of end of period	$ 11,888	$ 8,311	$ 11,888	$ 8,311

Note I - Net Earnings Per Sha32

Note I - Net Earnings Per Share - Anti-dilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive securities (in shares)	8,828,596	11,692,975	11,899,797	11,692,975
Warrants to Purchase Common Stock [Member]
Antidilutive securities (in shares)	104,686	2,027,763	2,027,763	2,027,763
Stock Compensation Plan [Member]
Antidilutive securities (in shares)	3,682,996	2,873,344	3,682,996	2,873,344
Convertible Debt Securities [Member]
Antidilutive securities (in shares)		1,750,954	1,148,124	1,750,954
2021 Notes [Member]
Antidilutive securities (in shares)	5,040,914	5,040,914	5,040,914	5,040,914

Note I - Net Earnings Per Sha33

Note I - Net Earnings Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net loss	$ (9,993)	$ (6,517)	$ (36,212)	$ (22,839)
Less: Net loss allocable to participating securities
Net loss allocable to shares of common stock	(9,993)
Less: Dividends declared or accumulated
Undistributed net loss allocable to shares of common stock, basic	$ (9,993)
Basic (in shares)	15,317,536	14,649,586	15,056,161	14,648,291
Basic (in dollars per share)	$ (0.65)	$ (0.44)	$ (2.41)	$ (1.56)
Net loss	$ (9,993)	$ (6,517)	$ (36,212)	$ (22,839)
Less: Fair value adjustment income related to Deerfield Warrant liability	(2,615)
Add back: Total interest expense related to Deerfield Convertible Note	409
Less: Fair value adjustment income related to embedded Deerfield Note Put Option	(2,923)
Net loss allocable to shares of common stock, diluted	$ (15,122)
Weighted average number of shares of common stock outstanding (in shares)	15,317,536	14,649,586	15,056,161	14,648,291
Dilutive effect of Deerfield Warrant (in shares)	79,000
Dilutive effect of Deerfield Convertible Note (in shares)	1,152,000
Weighted average number of shares of common stock outstanding, diluted (in shares)	16,548,751	14,649,586	15,056,161	14,648,291
Diluted (in dollars per share)	$ (0.91)	$ (0.44)	$ (2.41)	$ (1.56)