Neos Therapeutics (NEOS) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 02, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Entity File Number	001-37508
Entity Registrant Name	Neos Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0395455
Entity Address, Address Line One	2940
Entity Address, Address Line Two	N. Hwy 360
Entity Address, City or Town	Grand Prairie
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75050
City Area Code	972
Local Phone Number	408-1300
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	NEOS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		49,756,656
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001467652
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 12,744	$ 16,830
Short-term investments		8,064
Accounts receivable, net of allowances for chargebacks and cash discounts of $1,899 and $4,848 at September 30, 2020 and December 31, 2019, respectively	20,386	26,563
Inventories, net	8,436	11,010
Prepaid expenses and other current assets	2,443	4,092
Total current assets	44,009	66,559
Property and equipment, net	5,824	7,345
Operating lease right-of-use assets	2,655	3,044
Intangible assets, net	11,074	12,543
Other assets	1,022	1,382
Total assets	64,584	90,873
Current Liabilities:
Accounts payable	8,443	6,650
Accrued expenses	31,233	40,188
Current portion of operating lease liabilities	693	681
Short-term line of credit	7,320
Current portion of long-term debt	19,472	15,836
Total current liabilities	67,161	63,355
Long-Term Liabilities:
Long-term debt	13,720	29,099
Operating lease liabilities	2,741	3,254
Derivative liability	1,456	1,135
Other long-term liabilities	58	160
Total long-term liabilities	17,975	33,648
Stockholders' Deficit:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding at September 30, 2020 and December 31, 2019
Common stock, $0.001 par value, 100,000,000 shares authorized at September 30, 2020 and December 31, 2019; 49,788,895 and 49,755,094 shares issued and outstanding, respectively, at June 30, 2020; 49,766,472 and 49,732,671 shares issued and outstanding, respectively, at December 31, 2019	50	50
Treasury stock, at cost, 33,801 shares at September 30, 2020 and December 31, 2019	(352)	(352)
Additional paid-in capital	332,004	328,056
Accumulated deficit	(352,254)	(333,885)
Accumulated other comprehensive income		1
Total stockholders' deficit	(20,552)	(6,130)
Total liabilities and stockholders' deficit	$ 64,584	$ 90,873

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Receivables allowances for chargebacks and cash discounts (in dollars)	$ 1,899	$ 4,848
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	49,788,895	49,766,472
Common stock, outstanding shares	49,755,094	49,732,671
Treasury stock, shares	33,801	33,801

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Net product sales	$ 12,535	$ 17,540	$ 40,161	$ 47,817
Net product sales	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Cost of goods sold	$ 5,120	$ 6,447	$ 17,387	$ 17,942
Cost of goods sold	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Gross profit	$ 7,415	$ 11,093	$ 22,774	$ 29,875
Research and development expenses	1,310	1,551	4,668	6,757
Selling and marketing expenses	4,844	7,125	17,650	21,463
General and administrative expenses	4,177	2,850	12,135	10,355
Loss from operations	(2,916)	(433)	(11,679)	(8,700)
Interest expense	(2,005)	(1,869)	(6,131)	(5,971)
Other income (expense), net	12	251	(557)	1,257
Loss before income taxes	(4,909)	(2,051)	(18,367)	(13,414)
Income tax expense	2		2
Net loss	$ (4,911)	$ (2,051)	$ (18,369)	$ (13,414)
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	49,755,094	49,730,755	49,747,076	49,720,780
Net loss per share of common stock, basic and diluted	$ (0.10)	$ (0.04)	$ (0.37)	$ (0.27)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Comprehensive loss
Net loss	$ (4,911)	$ (2,051)	$ (18,369)	$ (13,414)
Other comprehensive loss:
Net unrealized loss on short-term investments		(1)	(1)
Total other comprehensive loss		(1)	(1)
Comprehensive loss	$ (4,911)	$ (2,052)	$ (18,370)	$ (13,414)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net	Total
Balance, beginning at Dec. 31, 2018	$ 50	$ (352)	$ 325,130	$ (316,983)
Balance, beginning (in shares) at Dec. 31, 2018	49,710,104	(33,801)
Increase (Decrease) in Stockholders Equity
Issuance of common stock upon RSU conversion	18,765
Shares issued for exercise of stock options			11
Shares issued for exercise of stock options (in shares)	36,040
Payroll tax withheld for RSU releases			(2)
Share-based compensation expense			2,532
Net loss				(13,414)		$ (13,414)
Balance, ending at Sep. 30, 2019	$ 50	$ (352)	327,671	(330,397)		(3,028)
Balance, ending (in shares) at Sep. 30, 2019	49,764,909	(33,801)
Balance, beginning at Dec. 31, 2018	$ 50	$ (352)	325,130	(316,983)
Balance, beginning (in shares) at Dec. 31, 2018	49,710,104	(33,801)
Increase (Decrease) in Stockholders Equity
Issuance of common stock upon RSU conversion	20,328
Shares issued for exercise of stock options (in shares)	36,040
Net loss						(16,900)
Balance, ending at Dec. 31, 2019	$ 50	$ (352)	328,056	(333,885)	$ 1	$ (6,130)
Balance, ending (in shares) at Dec. 31, 2019	49,766,472	(33,801)				49,766,472
Balance, beginning at Jun. 30, 2019	$ 50	$ (352)	327,035	(328,346)	1
Balance, beginning (in shares) at Jun. 30, 2019	49,764,076	(33,801)
Increase (Decrease) in Stockholders Equity
Shares issued for exercise of stock options (in shares)	833
Share-based compensation expense			636
Net unrealized gain (loss) on investments					(1)	$ (1)
Net loss				(2,051)		(2,051)
Balance, ending at Sep. 30, 2019	$ 50	$ (352)	327,671	(330,397)		(3,028)
Balance, ending (in shares) at Sep. 30, 2019	49,764,909	(33,801)
Balance, beginning at Dec. 31, 2019	$ 50	$ (352)	328,056	(333,885)	1	$ (6,130)
Balance, beginning (in shares) at Dec. 31, 2019	49,766,472	(33,801)				49,766,472
Increase (Decrease) in Stockholders Equity
Issuance of common stock upon RSU conversion	17,841
Shares issued for exercise of stock options			2
Shares issued for exercise of stock options (in shares)	4,582
Payroll tax withheld for RSU releases			(2)
Recognition of fair value conversion feature on convertible notes			1,703
Share-based compensation expense			2,245
Net unrealized gain (loss) on investments					$ (1)	$ (1)
Net loss				(18,369)		(18,369)
Balance, ending at Sep. 30, 2020	$ 50	$ (352)	332,004	(352,254)		$ (20,552)
Balance, ending (in shares) at Sep. 30, 2020	49,788,895	(33,801)				49,788,895
Balance, beginning at Jun. 30, 2020	$ 50	$ (352)	331,472	(347,343)
Balance, beginning (in shares) at Jun. 30, 2020	49,788,895	(33,801)
Increase (Decrease) in Stockholders Equity
Share-based compensation expense			532
Net loss				(4,911)		$ (4,911)
Balance, ending at Sep. 30, 2020	$ 50	$ (352)	$ 332,004	$ (352,254)		$ (20,552)
Balance, ending (in shares) at Sep. 30, 2020	49,788,895	(33,801)				49,788,895

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows From Operating Activities:
Net loss	$ (18,369)	$ (13,414)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	2,245	2,532
Depreciation and amortization of property and equipment	1,439	1,551
Amortization of patents and other intangiable assets	1,503	1,486
Changes in fair value of earnout, derivative and warrant liabilities	321	(778)
Amortization of senior debt issuance costs and discounts	1,794	1,017
Amortization of short-term investment purchase discounts	(32)	(68)
Loss (gain) on sale of equipment	323	(6)
Other adjustments	(102)
Changes in operating assets and liabilities:
Accounts receivable	6,177	(1,076)
Inventories	2,574	(1,309)
Other assets	1,648	2,276
Accounts payable	1,900	(6,182)
Accrued expenses	(8,953)	2,030
Operating lease liabilities	(112)	(78)
Net cash used in operating activities	(7,644)	(12,019)
Cash Flows From Investing Activities:
Purchases of short-term investments	(2,992)	(9,182)
Sales and maturities of short-term investments	11,087	7,258
Proceeds from sale of equipment		2
Capital expenditures	(241)	(748)
Intangible asset expenditures	(34)	(57)
Net cash provided by (used in) investing activities	7,820	(2,727)
Cash Flows From Financing Activities:
Proceeds from the issuance of common stock, net of issuance costs	2	11
Payments made on borrowings	(11,437)	(8,301)
Proceeds from short-term line of credit	87,190
Payments made on short-term line of credit	(79,870)
Proceeds from paycheck protection program loan	3,583
Payment of paycheck protection program loan	3,583
Payments of deferred financing costs	(145)	(156)
Payment of payroll taxes withheld for releases of restricted stock units	(2)	(2)
Net cash used in financing activities	(4,262)	(8,448)
Decrease in cash and cash equivalents	(4,086)	(23,194)
Cash and Cash Equivalents:
Beginning	16,830	46,478
Ending	12,744	23,284
Supplemental Disclosure of Noncash Transactions:
Incremental fair value of conversion feature recorded to debt discount	1,703
Additional exit fee recorded to debt discount	250
Deferred debt financing costs included in accounts payable and accrued expenses	10
Acquired equipment under finance lease		406
Finance lease liability from purchase of equipment		406
Supplemental Cash Flow Information:
Interest paid	$ 4,097	$ 5,051

Organization and nature of oper

Organization and nature of operations	9 Months Ended
	Sep. 30, 2020
Organization and nature of operations
Organization and nature of operations	Note 1. Organization and nature of operations ​ Neos Therapeutics, Inc., a Delaware corporation, and its subsidiaries (the “Company”) is a fully integrated pharmaceutical company. The Company has developed a broad, proprietary modified-release drug delivery technology that enables the manufacture of single and multiple ingredient extended-release (“XR”) pharmaceuticals in patient- and caregiver-friendly orally disintegrating tablet (“ODT”) and oral suspension dosage forms. The Company has a pipeline of extended-release pharmaceuticals including three products approved by the U.S. Food and Drug Administration (the “FDA”) for the treatment of attention deficit hyperactivity disorder (“ADHD”). Adzenys XR-ODT was approved by the FDA in January 2016 and launched commercially in May 2016. The Company received approval from the FDA for Cotempla XR-ODT, its methylphenidate XR-ODT for the treatment of ADHD in patients 6 to 17 years old, in June 2017, and commercially launched in September 2017. Also, the Company received approval from the FDA for Adzenys ER oral suspension (“Adzenys ER”) in September 2017 and commercially launched this product in February 2018. In addition, the Company manufactures and markets a generic Tussionex (hydrocodone and chlorpheniramine) (“generic Tussionex”), extended-release oral suspension for the treatment of cough and upper respiratory symptoms of a cold. In addition to its marketed products, the Company is developing NT0502, its product candidate for the treatment of sialorrhea. ​ The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company incurred a net loss of approximately $18.4 million during the nine months ended September 30, 2020 and $16.9 million and $51.7 million during the years ended December 31, 2019 and 2018, respectively. The Company had an accumulated deficit of approximately $352.3 million as of September 30, 2020. Cash used in operating activities was approximately $7.6 million and $12.0 million for the nine months ended September 30, 2020 and 2019, respectively. The ability of the Company to continue as a going concern is dependent upon achieving a profitable level of operations and the ability of the Company to obtain necessary financing to fund ongoing operations and service its debt obligations, or otherwise to reduce its expenses or to renegotiate its debt facilities. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the issuance of these financial statements. ​ Management plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern are primarily focused on raising additional capital in order to meet its obligations and execute its business plan or otherwise reduce its expenses or renegotiate its debt facilities. Management believes that the Company has access to capital resources through possible public or private equity offerings, debt financings, or other means; however, the Company cannot provide any assurance that it will be able to raise additional capital or obtain new financing on commercially acceptable terms. If the Company is unable to secure additional capital, it may be required to curtail its operations or delay the execution of its business plan. Alternatively, any efforts by the Company to reduce its expenses may adversely impact its ability to sustain revenue-generating activities or otherwise operate its business, and there can be no assurance that the Company will be able to renegotiate its debt facilities on commercially reasonable terms or at all. As a result, there can be no assurance the Company will be successful in implementing its plans to alleviate this substantial doubt about its ability to continue as a going concern. ​ The ongoing global COVID-19 pandemic has resulted in significant governmental measures being implemented to control the spread of the virus and, while the Company cannot predict their scope and severity, these developments and measures have adversely affected its business, results of operations and financial condition and will likely continue to do so. The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business and is taking steps to minimize its impact on its business. However, the full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including sales, expenses, manufacturing, clinical trials, research and development costs and employee-related amounts, will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the duration of the outbreak, new information that may emerge concerning the severity of COVID-19 pandemic or the effectiveness of actions taken to contain the pandemic or treat its impact, among others. Furthermore, if the Company or any of the third parties with whom it engages, were to experience additional or prolonged shutdowns or other business disruptions, the Company’s ability to conduct its business in the manner and on the timelines presently planned could be materially or negatively affected, which could have a material adverse impact on its business, results of operation and financial condition.

Summary of significant accounti

Summary of significant accounting policies	9 Months Ended
	Sep. 30, 2020
Summary of significant accounting policies
Summary of significant accounting policies	Note 2. Summary of significant accounting policies ​ Basis of presentation: The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), for interim information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations, and cash flows. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of results of operations for and financial condition as of the end of the interim period have been included. Results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results for the year ending December 31, 2020 or any period thereafter. The audited consolidated financial statements as of and for the year ended December 31, 2019 included information and footnotes necessary for such presentation and were included in the Neos Therapeutics, Inc. Annual Report on Form 10-K filed with the SEC on March 13, 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2019. ​ Principles of consolidation: ​ Use of estimates : The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. ​ Liquidity: During 2019 and the three and nine months ended September 30, 2020, the Company incurred operating losses and used cash to fund operations. Management intends to achieve profitability through revenue growth from its currently marketed pharmaceutical products. The Company does not anticipate it will be profitable until such time as revenues from Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER increase substantially over current levels. On October 2, 2019, the Company entered into a senior secured credit agreement with Encina Business Credit, LLC (“Encina”) as agent for the lenders (the “Loan Agreement”), in which Encina will extend up to $25.0 million in secured Revolving Loans to the Company, of which up to $2.5 million may be available for short-term swingline loans, against 85% of eligible accounts receivables. Accordingly, management has performed the review required for going concern accounting and does not believe the Company presently has sufficient liquidity to continue to operate for the next twelve months after the filing of this Quarterly Report on Form 10-Q. ​ Cash equivalents: ​ Short-term investments: Short-term investments, if any, consist of debt securities that have original maturities greater than three months but less than or equal to one year and are classified as available-for-sale securities. Such securities are carried at estimated fair value, with any unrealized holding gains or losses reported, net of material tax effects, as accumulated other comprehensive income or loss, which is a separate component of stockholders in the consolidated results of operations. A decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in fair value charged to earnings in that period, and a new cost basis for the security is established. Dividend and interest income are recognized in other income when earned. The cost of securities sold is calculated using the specific identification method. The Company places all investments with government agencies or corporate institutions whose debt is rated as investment grade. The Company classifies all available-for-sale marketable securities with maturities greater than one year from the balance sheet date, if any, as non-current assets. ​ Inventories ​ Until objective and persuasive evidence exists that regulatory approval has been received and future economic benefit is probable, pre-launch inventories are expensed into research and development. Manufacturing costs for the production of Adzenys XR-ODT incurred after the January 27, 2016 FDA approval date, for the production of Cotempla XR-ODT incurred after June 30, 2017, following the FDA approval date of June 19, 2017, and for the production of Adzenys ER incurred after September 30, 2017, following the FDA approval date of September 15, 2017, are being capitalized into inventory. ​ Leases: ​ Fixed lease payments are recognized over the expected term of the lease using the effective interest method. Variable lease expenses that are not considered fixed, or in substance fixed, are expensed as incurred. Fixed and variable lease expense on operating leases are recognized within cost of goods sold and operating expenses in the Company’s consolidated statements of operations. ROU asset amortization and interest costs on financing leases are recorded within cost of goods sold and interest expense, respectively, in the Company’s consolidated statements of operations. The Company has elected the short-term lease exemption and recognizes a short-term lease expense over lease terms of 12 months or less. ​ Operating leases are included in operating lease ROU assets, current portion of operating lease liabilities and operating lease liabilities in the Company’s consolidated balance sheets. Financing leases are included in property and equipment, net, current portion of long-term debt and long-term debt, net of current portion in the Company’s condensed consolidated balance sheets. ​ Debt issuance costs and discounts ​ Derivative liabilities: ​ When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. The company records the corresponding credit to additional paid in capital in the consolidated statements of stockholders’ (deficit) equity. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption and are classified in interest expense in the consolidated results of operations. ​ Intangible assets : Intangible assets subject to amortization, which principally include proprietary modified-release drug delivery technology, the costs to acquire the rights to Tussionex Abbreviated New Drug Application and patents, are recorded at cost and amortized over the estimated lives of the assets, which primarily range from ​ Revenue recognition : Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company makes estimates of the net sales price, including estimates of variable consideration (e.g., savings offers, prompt payment discounts, product returns, wholesaler fees, wholesaler chargebacks and estimated rebates) to be incurred on the selling price of the respective product sales, and recognizes the estimated amount as revenue when it transfers control of the product to its customers (e.g., upon delivery). Variable consideration is determined using either an expected value or a most likely amount method. The estimate of variable consideration is also subject to a constraint such that some or all of the estimated amount of variable consideration will only be included in the transaction price to the extent that it is probable that a significant reversal of revenue (in the context of the contract) will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimating variable consideration and the related constraint requires the use of significant management judgment and other market data. The Company provides for prompt payment discounts, wholesaler fees and wholesaler chargebacks based on customer contractual stipulations. The Company analyzes recent product return history and other market data obtained from its third party logistics providers (“3PLs”) to determine a reliable return rate. Additionally, management analyzes historical savings offers and rebate payments based on patient prescriptions dispensed for Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER and information obtained from third party providers to determine these respective variable considerations. ​ The Company sells its generic Tussionex, Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER to a limited number of pharmaceutical wholesalers, all subject to rights of return. Pharmaceutical wholesalers buy drug products directly from manufacturers. Title to the product passes upon delivery to the wholesalers, when the risks and rewards of ownership are assumed by the wholesaler (freight on board destination). These wholesalers then resell the product to retail customers such as food, drug and mass merchandisers. ​ The Company views its operations and manages its business in one operating segment, which is the development, manufacturing and commercialization of pharmaceuticals. ​ Contract Balances ​ Contract assets primarily relate to our right to consideration in exchange for products transferred to a customer in which our right to consideration is dependent upon the customer selling these products. As of September 30, 2020 and December 31, 2019, contract assets of $10,000 and $27,000, respectively, were included in other current assets in the consolidated balance sheets. As of September 30, 2020, contract liabilities of $49,000 was included in accrued expenses in the consolidated balance sheets. As of December 31, 2019, the Company had no contract liability. ​ Disaggregation of revenue ​ The following table disaggregates the Company’s net product sales by product: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine months ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 ​ 2020 2019 ​ ​ (in thousands) ​ Adzenys XR-ODT ​ $ 6,177 ​ $ 8,794 ​ $ 16,547 ​ $ 22,692 ​ Cotempla XR-ODT ​ 5,596 ​ 7,227 ​ 19,134 ​ 19,513 ​ Adzenys ER ​ 102 ​ 232 ​ 337 ​ 563 ​ Generic Tussionex ​ 660 ​ 1,287 ​ 4,143 ​ 5,049 ​ ​ ​ $ 12,535 ​ $ 17,540 ​ $ 40,161 ​ $ 47,817 ​ ​ ​ Net product sales ​ Net product sales represent total gross product sales less gross to net sales adjustments. Gross to net sales adjustments for branded Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER include savings offers, prompt payment discounts, wholesaler fees, estimated wholesaler chargebacks and estimated rebates to be incurred on the selling price of the respective product sales and estimated allowances for product returns. ​ Gross to net sales adjustments for generic Tussionex include prompt payment discounts, estimated allowances for product returns, wholesaler fees, estimated government rebates and estimated chargebacks to be incurred on the selling price of generic Tussionex related to the respective product sales. ​ The Company recognizes total gross product sales less gross to net sales adjustments as revenue based on shipments from 3PLs to the Company’s wholesaler customers. ​ Due to estimates and assumptions inherent in determining the amount of returns, rebates and chargebacks, the actual amount of returns, claims for rebates and chargebacks may be different from the estimates, at which time reserves would be adjusted accordingly. ​ Savings offers for branded products ​ The Company offers savings programs for Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER to patients covered under commercial payor plans in which the cost of a prescription to such patients is discounted. The amount of redeemed savings offers is recorded based on information from third-party providers against the estimated discount recorded as accrued expenses. The estimated discount is recorded as a gross to net sales adjustments at the time revenue is recognized. ​ Prompt payment discounts ​ Prompt payment discounts are based on standard programs with wholesalers and are recorded as a discount allowance against accounts receivable and as a gross to net sales adjustments at the time revenue is recognized. ​ Wholesale distribution fees ​ Wholesale distribution fees are based on definitive contractual agreements for the management of the Company’s products by wholesalers and are recorded as accrued expenses and as a gross to net sales adjustment at the time revenue is recognized. ​ Rebates ​ The Company’s branded Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER are subject to commercial managed care and government managed Medicare and Medicaid programs whereby discounts and rebates are provided to participating managed care organizations and federal and/or state governments. Calculations related to rebate accruals of branded products are estimated based on information from third-party providers. ​ The Company’s generic Tussionex product is subject to state government-managed Medicaid programs whereby discounts and rebates are provided to participating state governments. Generic Tussionex government rebates are estimated based upon rebate payment data available from sales of the Company’s generic Tussionex product over the past three years. ​ Estimated rebates are recorded as accrued expenses and as a gross to net sales adjustment at the time revenue is recognized. Historical trends of estimated rebates will be regularly monitored, which may result in adjustments to such estimates in the future. ​ Product returns ​ Wholesalers’ contractual return rights are limited to defective product, product that was shipped in error, product ordered by customer in error, product returned due to overstock, product returned due to dating or product returned due to recall or other changes in regulatory guidelines. The return policy for expired product allows the wholesaler to return such product starting six months prior to expiry date to twelve months post expiry date. Estimated returns are recorded as accrued expenses and as a gross to net sales adjustments at the time revenue is recognized. ​ The Company analyzed recent branded product return data to determine a reliable return rate for branded Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER. Generic Tussionex product returns were estimated based upon return data available from sales of the Company’s generic Tussionex product over the past three years. ​ Wholesaler chargebacks ​ The Company’s products are subject to certain programs with wholesalers whereby pricing on products is discounted below wholesaler list price to participating entities. These entities purchase products through wholesalers at the discounted price, and the wholesalers charge the difference between their acquisition cost and the discounted price back to the Company. Estimated chargebacks are recorded as a discount allowance against accounts receivable and as a gross to net sales adjustments at the time revenue is recognized based on information provided by third parties. ​ Research and development costs: ​ Share-based compensation: operations based on their fair values. Compensation expense related to stock-based awards is recognized on a straight-line basis, based on the grant date fair value, over the requisite service period of the award, which is generally the vesting term. The fair value of the Company’s stock-based awards to employees and directors is estimated using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including (1) the expected stock price volatility, (2) the expected term of the award, (3) the risk-free interest rate and (4) expected dividends. ​ For performance-based stock awards, compensation expense is recognized on a straight-line basis, based on the grant date fair value, over the performance period or through the vesting date, whichever is longer. Management monitors the probability of achievement of the performance conditions and adjusts stock-based compensation expense, if necessary. ​ Since the Company’s initial public offering (“IPO”) in July 2015, the Company’s board of directors has determined the fair value of each share of underlying common stock based on the closing price of the Company’s common stock as reported by the NASDAQ Global Market on the date of grant. ​ Under ASU No. 2017-09 guidance for accounting for share-based payments, the Company has elected to continue estimating forfeitures at the time of grant and, if necessary, revise the estimate in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the actual expense recognized over the vesting period will only be for those options that vest. ​ Paragraph IV litigation costs ​ Income taxes : Income taxes are accounted for using the liability method, under which deferred taxes are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. ​ Management evaluates the Company’s tax positions in accordance with guidance on accounting for uncertainty in income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not that the position will be sustained upon examination. As of September 30, 2020 and December 31, 2019, the Company has unrecognized tax benefits associated with uncertain tax positions in the consolidated financial statements. These uncertain tax positions were netted against net operating losses (NOLs) with no separate reserve for uncertain tax positions required. ​ Deferred tax assets should be reduced by a valuation allowance if current evidence indicates that it is considered more likely than not that these benefits will not be realized. In evaluating the objective evidence that historical results provide, the Company considered that three years of cumulative operating losses was significant negative evidence outweighing projections for future taxable income. Therefore, at September 30, 2020 and December 31, 2019, the Company determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company has recorded a valuation allowance to reduce deferred tax assets to zero. The Company may not ever be able to realize the benefit of some or all of the federal and state loss carryforwards, either due to ongoing operating losses or due to ownership changes, which limit the usefulness of the loss carryforwards. ​ Recent accounting pronouncements Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)— Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ​ In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ​ In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ​ In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ From time to time, additional new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Net loss per share

Net loss per share	9 Months Ended
	Sep. 30, 2020
Net loss per share
Net loss per share	Note 3. Net loss per share ​ Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. Potentially dilutive securities, which include warrants, outstanding stock options under the stock option plans and shares issuable in future periods, such as RSU awards, have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. Restricted stock is considered legally issued and outstanding on the grant date, while RSUs are not considered legally issued and outstanding until the RSUs vest. Once the RSUs vest, equivalent common shares will be issued or issuable to the grantee and therefore the RSUs are not considered for inclusion in total common shares issued and outstanding until vested. Pursuant to the terms of the agreement, the warrants to purchase common stock, originally issued as Series C Redeemable Convertible Preferred Stock Warrants, expired on July 22, 2020 and are no longer a potentially dilutive security. ​ The following potentially dilutive securities outstanding as of September 30, 2020 and 2019 were excluded from consideration in the computation of diluted net loss per share of common stock for the three and nine months ended September 30, 2020 and 2019, respectively, because including them would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 2020 ​ 2019 Series C Redeemable Convertible Preferred Stock Warrants (as converted) — 70,833 Stock options outstanding 5,501,539 4,547,797 RSUs outstanding ​ 1,066,547 ​ 55,626 ​

Fair value of financial instrum

Fair value of financial instruments	9 Months Ended
	Sep. 30, 2020
Fair value of financial instruments
Fair value of financial instruments	Note 4. Fair value of financial instruments ​ The Company records financial assets and liabilities at fair value. The carrying amounts of certain financial assets and liabilities including cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued liabilities, approximated their fair value due to their short-term maturities. The remaining financial instruments were reported on the Company’s condensed consolidated balance sheets at amounts that approximate current fair values based on market based assumptions and inputs. ​ As a basis for categorizing inputs, the Company uses a three tier fair value hierarchy, which prioritizes the inputs used to measure fair value from market based assumptions to entity specific assumptions as follows: ​ Level 1: ​ Level 2: ​ Level 3: ​ The following table presents the hierarchy for the Company’s financial instruments measured at fair value on a recurring basis for the indicated dates: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value as of September 30, 2020 ​ Level 1 Level 2 Level 3 Total ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 12,744 ​ $ — ​ $ — ​ $ 12,744 Total financial assets ​ $ 12,744 ​ $ — ​ $ — ​ $ 12,744 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnout liability ​ $ — ​ $ — ​ $ 30 ​ $ 30 Derivative liability (see Note 7) ​ ​ — ​ ​ — ​ ​ 1,456 ​ ​ 1,456 Total financial liabilities ​ $ — ​ $ — ​ $ 1,486 ​ $ 1,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value as of December 31, 2019 ​ Level 1 Level 2 Level 3 Total ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 12,338 ​ $ 4,492 ​ $ — ​ $ 16,830 Short-term investments ​ ​ 1,261 ​ ​ 6,803 ​ ​ — ​ ​ 8,064 Total financial assets ​ $ 13,599 ​ $ 11,295 ​ $ — ​ $ 24,894 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnout liability ​ $ — ​ $ — ​ $ 30 ​ $ 30 Derivative liability (see Note 7) ​ ​ — ​ ​ — ​ ​ 1,135 ​ ​ 1,135 Total financial liabilities ​ $ — ​ $ — ​ $ 1,165 ​ $ 1,165 ​ The Company’s Level 1 assets included bank deposits, certificates of deposit and actively traded money market funds with an original maturity of 90 days or less at September 30, 2020 and December 31, 2019. Asset values were considered to approximate fair value due to their short-term nature. ​ The Company’s Level 2 assets included commercial paper and corporate bonds with maturities of less than one year that are not actively traded which were classified as available-for-sale securities. The level 2 cash equivalents consist of U.S. agency bonds and corporate commercial paper that mature in less than 90 days which are valued using quoted prices and other data values. The estimated fair values of these securities were determined by third parties using valuation techniques that incorporate standard observable inputs and assumptions such as quoted prices for similar assets, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids/offers and other pertinent reference data. ​ The Company’s cash and cash equivalents and short-term investments had quoted prices at September 30, 2020 and December 31, 2019 as shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ ​ Amortized ​ Unrealized ​ Market ​ Cost Gain / (Loss) Value ​ ​ ​ (in thousands) Bank deposits and money market funds ​ $ 12,744 ​ $ — ​ $ 12,744 ​ ​ $ 12,744 ​ $ — ​ $ 12,744 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ ​ Amortized ​ Unrealized ​ Market ​ Cost Gain / (Loss) Value ​ ​ (in thousands) Bank deposits and money market funds ​ $ 13,599 ​ $ — ​ $ 13,599 Financial and corporate debt securities ​ ​ 11,294 ​ ​ 1 ​ ​ 11,295 ​ ​ $ 24,893 ​ $ 1 ​ $ 24,894 ​ The Company’s Level 3 liability included the fair value of the earnout liability and the fair values of the Encina and Deerfield derivative liabilities at September 30, 2020 and December 31, 2019. ​ The fair value of the Encina derivative liability was determined after taking into consideration valuations using the Probability Weighted Discounted Cash Flow method based on assumptions at September 30, 2020 and December 31, 2019. The fair value of the Deerfield derivative liability was determined after taking into consideration valuations using the Monte Carlo method based on assumptions at September 30, 2020 and December 31, 2019. The methodologies and significant inputs used in the determination of the fair value of the debt derivative liability were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Encina Derivative Liability ​ Deerfield Derivative Liability Date of Valuation ​ 9/30/2020 ​ 12/31/2019 ​ 9/30/2020 ​ 12/31/2019 Valuation Method ​ Discounted Cash Flow ​ Discounted Cash Flow ​ ​ Monte Carlo ​ Monte Carlo ​ Volatility (annual) ​ N/A ​ ​ N/A ​ ​ N/A ​ ​ N/A ​ Time period from valuation until maturity of debt (yrs.) ​ 1.6 2.4 ​ ​ 1.6 2.4 ​ Cumulative probability of a change in control prepayment implied by model ​ 18.3 % ​ 23.9 % ​ 15 % ​ 23 % Cumulative probability of other accelerated prepayments implied by model ​ N/A % N/A % ​ 21 % 10 % Discount rate ​ 6.0 % ​ 6.0 % ​ 35.55 % ​ 25.34 % Fair value of liability at valuation date (thousands) ​ $ 36 ​ $ 66 ​ ​ $ 1,420 ​ $ 1,069 ​ ​ Significant changes to these assumptions would result in increases or decreases to the fair value of the debt derivative liabilities. ​ Changes in Level 3 liabilities measured at fair value for the periods indicated were as follows: ​ ​ ​ ​ ​ ​ ​ Level 3 ​ Liabilities ​ ​ (in thousands) Balance at December 31, 2019 ​ $ 1,165 Change in fair value ​ 321 Balance at September 30, 2020 ​ $ 1,486 ​

Inventories

Inventories	9 Months Ended
	Sep. 30, 2020
Inventories
Inventories	Note 5. Inventories ​ Inventories at the indicated dates consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2020 2019 ​ ​ (in thousands) ​ Raw materials ​ $ 2,790 ​ $ 3,679 ​ Work in process ​ 1,943 ​ 935 ​ Finished goods ​ 4,650 ​ 7,082 ​ Inventory at cost ​ 9,383 ​ 11,696 ​ Inventory reserve ​ (947) ​ (686) ​ ​ ​ $ 8,436 ​ $ 11,010 ​ ​

Accrued expenses

Accrued expenses	9 Months Ended
	Sep. 30, 2020
Accrued expenses
Accrued expenses	Note 6. Accrued expenses ​ Accrued expenses as of September 30, 2020 and December 31, 2019 consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 ​ ​ (in thousands) Accrued savings offers ​ $ 12,608 ​ $ 16,790 Accrued rebates ​ 6,002 ​ 6,109 Accrued customer returns ​ 3,787 ​ 5,122 Accrued wholesaler fees ​ 2,513 ​ 5,014 Accrued payroll and benefits ​ 4,184 ​ 4,485 Other accrued expenses ​ 2,139 ​ 2,668 Total accrued expenses ​ $ 31,233 ​ $ 40,188 ​

Debt

Debt	9 Months Ended
	Sep. 30, 2020
Debt
Debt	Note 7. Debt ​ Short-term line of credit ​ On October 2, 2019, the Company entered into the Loan Agreement with Encina. Under the Loan Agreement, Encina will extend up to $25.0 million in secured revolving loans to the Company (the “Revolving Loans”), of which up to $2.5 million may be available for short-term swingline loans, against 85% of eligible accounts receivable. The Revolving Loans bear variable interest through maturity at the one-month London Interbank Offered Rate (“LIBOR”), plus an applicable margin of 4.50%. In addition, the Company is required to pay an unused line fee of 0.50% of the average unused portion of the maximum revolving facility amount during the immediately preceding month. Interest is payable monthly in arrears, upon a prepayment of a loan and on the maturity date. The maturity date under the Loan Agreement is May 11, 2022. ​ In the event that, for any reason, all or any portion of the lenders' commitment to make revolving loans is terminated prior to the scheduled maturity date, in addition to the payment of the principal amount and all unpaid accrued interest and other amounts due thereon, the Company is required to pay to the lender a prepayment fee equal to (i) 2.0% of the revolving loan commitment if such event occurs on or before October 2, 2020, (ii) 1.0% of the revolving loan commitment if such event occurs after October 2, 2020 but on or before October 2, 2021, and (iii) 0.5% of the revolving loan commitment if such event occurs after October 2, 2021 but before May 11, 2022. ​ The Company may permanently terminate the revolving loan facility by prepaying all outstanding principal amounts and all unpaid accrued interest and other amounts due thereon, subject to at least five ​ The Loan Agreement contains customary affirmative covenants, negative covenants and events of default, as defined in the Loan Agreement, including covenants and restrictions that, among other things, require the Company to satisfy certain capital expenditure and other financial covenants, and restrict the Company’s ability to incur liens, incur additional indebtedness, engage in mergers and acquisitions or make asset sales without the prior written consent of the Lenders. A failure to comply with these covenants could permit the Lenders to declare the Company’s obligations under the Loan Agreement, together with accrued interest and fees, to be immediately due and payable, plus any applicable additional amounts relating to a prepayment or termination, as described above. As of September 30, 2020, the Company was in compliance with the covenants under the Loan Agreement. ​ In connection with the Loan Agreement, the Company evaluated to determine if the embedded components in the agreement qualified as derivatives requiring separate recognition. This evaluation identified a derivative liability of $0.1 million for the fair value of the additional interest contingent upon a change in control. As of September 30, 2020, the fair value of the derivative was $36,000 (see Note 4). ​ Total interest expense on the short-term line of credit, including deferred financing costs amortization, was $0.2 million and $0.7 million for the three and nine months ended September 30, 2020, respectively. The Company incurred $1.3 million in financing costs, which are recorded as deferred financing costs and amortized over the term of the revolving loan as additional interest expense using an effective interest rate of 6.56%. For the three and nine months ended September 30, 2020, deferred financing cost amortization of $0.2 million and $0.4 million, respectively, was charged to interest expense. The unamortized cost of $0.9 million as of September 30, 2020 was included in other assets in the condensed consolidated balance Sheets. ​ As of September 30, 2020, the Company had $7.3 million borrowing outstanding under the Revolving Loan and had $5.5 million available for borrowing. ​ Long-term debt ​ Long-term debt at the indicated dates consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 ​ ​ ​ (in thousands) ​ Deerfield senior secured credit facility, net of discount of $2,538 and $1,982, respectively ​ $ 32,837 ​ $ 43,768 ​ Financing leases, maturing through May 2024 ​ 355 ​ 1,167 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 33,192 ​ 44,935 ​ Less current portion ​ (19,472) ​ (15,836) ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ $ 13,720 ​ $ 29,099 ​ ​ Senior secured credit facility : 66 2/3% 33 1/3% ​ Principal on the Facility was due in three equal annual installments beginning in May 2019 and continuing through May 2021, with a final payment of principal, interest and all other obligations under the Facility due May 11, 2022. Interest is due quarterly beginning in June 2016, at a rate of 12.95% per year. The Company had an option, which it exercised, to defer payment of each of the first four interest payments, adding such amounts to the outstanding loan principal. The aggregate $6.6 million in deferred interest payments (the “Accrued Interest”) was due and payable on June 1, 2017. Borrowings under the Facility are collateralized by substantially all of the Company’s assets, except the assets under finance lease. The terms of the Facility require the Company to maintain cash on deposit of not less than $5.0 million. ​ On June 1, 2017 (the “Amendment Date”), the Company and Deerfield entered into a First Amendment (the “Amendment”) to the Facility which extended the date to repay the Accrued Interest under the Facility to June 1, 2018 (the “PIK Maturity Date”), which could have been extended to June 1, 2019 at the election of the Company if certain conditions had been met as specified in the Amendment. The right to payment of the Accrued Interest was memorialized in the form of senior secured convertible notes (the “Convertible Notes”) issued to Deerfield on the Amendment Date. The $6.6 million of Convertible Notes was convertible into shares of the Company’s common stock at the noteholder’s option. ​ On October 26, 2017, Deerfield provided a conversion notice electing to convert the entire $6.6 million of Convertible Notes into shares of the Company’s common stock at a conversion price of $7.08 per share. The conversion price was based on 95% of the average of the volume weighted average prices per share of the Company’s common stock on the NASDAQ Global Market for the three ​ The Company has accounted for the Amendment as a debt modification as the instruments were not substantially different; therefore, the remaining debt discount on the original Facility is being amortized using the effective interest method over the remaining term of the modified debt. The Company evaluated the Amendment together with the Convertible Notes to determine if those contracts or embedded components of those contracts qualified as derivatives requiring separate recognition. This evaluation identified a derivative liability of $2.1 million for the fair value of the change in control and other accelerated payment features as the prepayment fees resulted in premiums that were greater than 10%. As of September 30, 2020, the fair value of the derivative was $1.4 million (see Note 4). As the change in control and other accelerated payments terms, including the prepayment fees, were applied to the entire debt per the terms of the amended Facility, the corresponding debt discount will be amortized using the effective interest method over the remaining term of the Facility. The fees paid to or on behalf of the creditor for the debt modification totaled $40,000 and were recorded as additional debt discount on the amended Facility to be amortized to interest expense using the effective interest method over the term of the Facility. The Company’s evaluation also determined that the embedded conversion options should not be bifurcated as derivatives from the Convertible Notes host instruments. Therefore, the Company recorded a $0.6 million discount to the convertible notes for the intrinsic value of the embedded conversion option based upon the difference between the fair value of the underlying common stock on June 1, 2017 and the effective conversion price embedded in the Convertible Notes, which was amortized using the effective interest method to interest expense over the one-year term of the Convertible Notes. The Company recorded a $0.6 million corresponding credit to a beneficial conversion feature classified as additional paid in capital on June 1, 2017 in stockholders’ (deficit) equity in the Company’s financial statements. ​ In connection with the Facility, the Company paid a $1.4 million yield enhancement fee to Deerfield, approximately $0.2 million of legal costs to the Company’s attorneys and $0.1 million of legal costs on behalf of Deerfield’s attorneys, all of which were recorded as debt discount and amortized over the six-year term of the Facility, using the effective interest method. ​ On November 5, 2018, the Company and Deerfield entered into an amendment (the “Second Amendment”) to the Facility pursuant to which the Company agreed to pay $7.5 million of principal under the Facility otherwise due in May 2019 upon completion of an underwritten public offering of the Company’s shares of its common stock for gross proceeds of at least $30.0 million, plus additional shares of the Company’s shares of its common stock for additional gross proceeds of at least $4.5 million (the “November Offering”). The remaining $52.5 million of principal under the Facility was and is due as follows: $7.5 million on May 11, 2019, $15.0 million on May 11, 2020 (the “2020 Principal Payment”), $15.0 million on May 11, 2021 and $15.0 million on May 11, 2022; provided, that the 2020 Principal Payment due date was to be extended to May 11, 2021 or May 11, 2022 subject to certain achievement of net sales during periods ending 2019 and 2020, respectively. The net sales milestone was not met for the period ending December 31, 2019. If all or any of the principal are prepaid or required to be prepaid under the Second Agreement prior to December 31, 2021, then the Company shall pay, in addition to such prepayment and accrued interest thereon, a prepayment premium equal to 6.25% of the amount of principal prepaid. Additionally, the Company shall pay all interest which, absent such prepayment, would have accrued on the principal prepaid through May 11, 2020 in connection with a prepayment due to a Change of Control of the Company or through December 31, 2020 in connection with any other prepayment, whether voluntary or in an Event of Default. If such prepayment occurs after December 31, 2021 then no prepayment premium is due. In addition, upon the payment in full of the Obligations (whether voluntarily, in the connection with a Change of Control or an Event of Default and whether before, at the time of or after the Maturity Date), the Company shall pay to Deerfield a non-refundable exit fee in the amount of $750,239, which shall be due and payable in cash. Pursuant to the terms of the Facility, as amended, a $7.5 million principal payment was paid in cash in May 2019. ​ Pursuant to the Second Amendment, upon the effectiveness thereof, the Company amended and restated its outstanding notes under the Second Agreement in the form of senior secured convertible notes (the “A&R Notes”). Under the terms of the Second Amendment and the A&R Notes, beginning on or about May 11, 2019, the Company will have the right to pay principal and future interest in shares of Common Stock not to exceed 2,135,625 shares in the aggregate. The payment share price will be 93% of the lesser of (A) the Last Bid Price prior to the payment date and (B) the arithmetic average of the volume weighted average price on each of the ten consecutive trading days immediately preceding the payment date. Principal may not be satisfied at a price less than $3.00 per share, and the Company may not issue to Deerfield a number of shares upon any such payment to the extent that, upon such issuance, the number of shares beneficially owned by Deerfield and its affiliates would exceed 4.985% of the total number of shares of the Company’s common stock then issued and outstanding (the “4.985% Cap”). Additionally, Deerfield has the right to convert the remaining principal into shares of Common Stock not to exceed 3,796,668 shares in the aggregate (collectively, the “Conversion Shares”); provided, that the Lenders could have only converted up to 50% of the remaining principal on or before November 5, 2019. Deerfield’s per share conversion price will be 95% reducing to a maximum 83% by one full percentage point for each full or partial calendar month between the date of the applicable conversion and the date on which such principal payment would otherwise be due, of the greater of (A) the average of the volume weighted average prices per share of the Common Stock on the NASDAQ Global Market for the three trading day period immediately preceding such conversion, and (B) $10.00 (subject to adjustment for Stock Events e.g. stock dividend, stock split etc.) (the “Variable Price Conversion”). Deerfield may not acquire a number of shares upon any such conversion to the extent that, upon such conversion, the number of shares beneficially owned by Deerfield and its affiliates would exceed the 4.985% Cap. ​ In conjunction with the Second Amendment to the Facility and the related issuance of the A&R Notes, the Company entered into a Registration Rights Agreement (the “Second Registration Agreement”) pursuant to which the Company was required to file a registration statement with the SEC to register the Conversion Shares within 30 days from November 5, 2018, which was to become effective per the SEC no later than 75 days thereafter. The filing deadline was subsequently extended to December 21, 2018. The Company filed a registration statement on Form S-3 to comply with the Second Registration Agreement on December 11, 2018, which became effective on December 20, 2018. This filing covered 3,796,668 shares, which is the maximum number of shares that may be converted. The Company is also required to, among other things, maintain the effectiveness of such registration statement, continue to file the required SEC filings on a timely basis, use its best efforts to ensure that the registered securities are listed on each securities exchange on which securities of the same class or series as issued by the Company are then listed and comply with any Financial Industry Regulatory Agency (“FINRA”) requests. The Company’s obligations with respect to each registration end at the date which is the earlier of (a) when all of the Registrable Securities covered by such registration have been sold or (b) when Deerfield or any of its transferees or assignees under the Second Registration Agreement cease to hold any Registrable Securities. For each registration, the Company shall bear all reasonable expenses, other than underwriting discounts and commissions, and shall reimburse Deerfield or any assignee or transferee for up to $25,000 in legal fees. The Company expects to satisfy all of its obligations under the Second Registration Agreement and does not expect to pay any damages pursuant to this agreement; therefore, no liability had been recorded (see Note 12). ​ On October 2, 2019, in connection with the Loan Agreement with Encina, the Company entered into a fourth amendment to the Facility (the “Fourth Amendment”) with Deerfield. Under the Fourth Amendment, the Company restated its representations and warranties made under the Facility and made additional representations and warranties consistent with those in the Loan Agreement. In addition, the affirmative covenants, negative covenants and events of default contained in the Facility were expanded to conform to applicable provisions in the Loan Agreement. The Fourth Amendment was neither a modification nor an extinguishment and had no change in cash flows, and as such, it did not have a material effect on the Company’s financial statements. ​ On May 6, 2020, the Company and Deerfield entered into an amendment (the “Fifth Amendment”) to the Facility pursuant to which the Company deferred $5.0 million of principal (“Deferred Principal”) otherwise due on May 11, 2020. The Company is required to pay the Deferred Principal in eight is reduced by principal converted during the previous calendar month. A $250,000 incremental exit fee (the “Additional Exit Payment”) will be due in cash when the Facility is paid in full. Pursuant to the terms of the Facility, as amended, a $10.0 million principal payment was paid in cash on May 11, 2020. The remaining $35.0 million of principal under the Facility is due as follows: $5.0 million in equal monthly installments of $625,000 which began in September 2020 and end in April 2021, $15.0 million on May 11, 2021 (the “2021 Principal Payment”) and $15.0 million on May 11, 2022 (the “2022 Principal Payment”). In addition, upon the payment in full of the Obligations (whether voluntarily, in the connection with a Change of Control or an Event of Default and whether before, at the time of or after the Maturity Date), the Company shall pay to Deerfield an additional non-refundable exit fee in the amount of $1,000,239 inclusive of the Additional Exit Payment, which shall be due and payable in cash. ​ Pursuant to the Fifth Amendment, upon the effectiveness thereof, the Company amended and restated the Senior Secured Convertible Notes (as amended and restated, the “Convertible Notes”) to provide for the conversion of up to $10.0 million of the remaining principal due under the facility into the Company’s common stock at a conversion price of $1.50 per share (the “Fixed Price Conversion”). The ability to issue shares upon a Fixed Price Conversion is also subject to customary beneficial ownership caps as described in the Convertible Notes. The Convertible Notes retained the Variable Price Conversion for any additional conversions, which remain subject to customary beneficial ownership caps and exchange caps as described therein. The shares of common stock issuable upon the Fixed Price Conversion and the Variable Price Conversion are referred to herein as the “Conversion Shares”. ​ The Company has accounted for the Fifth Amendment to the Facility Agreement and related Convertible Notes as a debt modification as the instruments were not substantially different; therefore, the remaining debt discount on the original Facility is being amortized using the effective interest method over the remaining term of the modified debt. The Company’s evaluation of the Fifth Amendment identified no new derivative liability for the fair value of the change in control and other accelerated payment features. However, the Company’s evaluation identified new embedded conversion options that should not be bifurcated as derivatives from the Convertible Notes host instruments. Therefore, the Company recorded a $1.7 million discount to the convertible notes for the incremental intrinsic value of the new embedded conversion option based upon the difference between the fair value of the underlying common stock on May 6, 2020 and the effective conversion price embedded in the Convertible Notes, which will be amortized using the effective interest method to interest expense over the remining term of the Convertible Notes. The Company recorded a $1.7 million corresponding credit to a fair value conversion feature on convertible notes classified as additional paid in capital on May 6, 2020 in stockholders’ (deficit) equity in the Company’s financial statements. The fees paid to or on behalf of the creditor for the debt modification totaled $36,000 and, together with the Additional Exit Payment of $250,000, were recorded as additional debt discount on the amended Facility to be amortized to interest expense using the effective interest method over the remaining term of the Facility. ​ Pursuant to the A&R Notes, if the Company fails to provide the number of Conversion Shares, then the Company would have to pay damages to Deerfield or subsequent holder or any designee for each day after the third business day after receipt of notice of conversion that such conversion is not timely effected. The Facility also contains certain customary nonfinancial covenants, including limitations on the Company’s ability to transfer assets, engage in a change of control, merge or acquire with or into another entity, incur additional indebtedness and distribute assets to shareholders. Upon an event of default, the lenders may declare all outstanding obligations accrued under the Facility to be immediately due and payable, and exercise its security interests and other rights. As of September 30, 2020, the Company was in compliance with the covenants under the Facility. ​ Total interest expense on the Facility, including debt discount amortization, was $1.7 million and $5.3 million for the three and nine months ended September 30, 2020, respectively, and $1.8 million and $5.8 million for the three and nine months ended September 30, 2019, respectively. Debt discount amortization for the Facility, including the Amendment after June 1, 2017, was calculated using the effective interest rates of 15.03% on the original facility debt and after the Fifth Amendment on May 6, 2020, using the effective interest rate of 21.3%, charged to interest expense and totaled $0.6 million and $1.4 million for the three and nine months ended September 30, 2020, respectively, and $0.3 million and $1.0 million for the three and nine months ended September 30, 2019, respectively. ​ Financing lease obligations: Financing lease obligations consist of sale-leaseback and equipment leases, both of which included options to purchase at the end of the lease term. During the year ended December 31, 2017, the Company entered into an agreement with Essex Capital Corporation (“Essex”) for the sale-leaseback of newly acquired assets with a total capitalized cost of . ​ Future principal payments of long-term debt including financing leases are as follows: ​ ​ ​ ​ ​ Period ending: September 30, ​ ​ (in thousands) ​ ​ ​ ​ 2021 ​ $ 19,472 2022 ​ ​ 16,104 2023 ​ ​ 92 2024 ​ ​ 62 ​ ​ ​ ​ Future principal payments ​ $ 35,730 ​ ​ ​ ​ Less unamortized debt discount related to long-term debt ​ (2,538) Less current portion of long-term debt ​ (19,472) ​ ​ ​ ​ Total long-term debt, net of current portion ​ $ 13,720 ​

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases
Leases	Note 8. Leases ​ The Company leases real estate, warehouses and certain equipment. The Company determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the condensed consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. ​ Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company's operating leases do not provide an implicit rate of return, the Company considered its other similar term collateralized financing arrangements, including the Essex sale-leaseback and equipment leases, certain vendor-direct equipment financing and the Deerfield debt facility, as amended, to determine its incremental borrowing rate. Operating lease ROU assets are comprised of the lease liability plus prepaid rents and are reduced by lease incentives and deferred rents. The Company has lease agreements with non-lease components which are not bifurcated. ​ Most leases include one one ​ The components of lease expense are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ ​ September 30, ​ ​ September 30, ​ ​ ​ ​ 2020 ​ 2019 ​ ​ 2020 ​ 2019 ​ Statement of Operations Classification ​ ​ (in thousands) ​ ​ (in thousands) ​ ​ Lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ $ 268 ​ $ 269 ​ $ 806 ​ $ 802 Cost of goods sold and operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term lease cost ​ 6 ​ 6 ​ 21 ​ 30 Cost of goods sold and operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variable lease cost ​ 98 ​ 53 ​ 204 ​ 165 Cost of goods sold and operating expenses Finance lease cost: ​ ​ ​ ​ ​ ​ ​ ​ Amortization of leased assets ​ 18 ​ 134 ​ 269 ​ 386 Cost of goods sold Interest on lease liabilities ​ 6 ​ 51 ​ 51 ​ 173 Interest expense Total net lease cost ​ $ 396 ​ $ 513 ​ $ 1,351 ​ $ 1,556 ​ Supplemental condensed consolidated balance sheet information related to leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 December 31, 2019 Balance Sheet Classification ​ ​ (in thousands) ​ ​ Leases: ​ ​ ​ ​ ​ ​ ​ ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ Operating lease assets ​ $ 2,655 ​ $ 3,044 Operating lease right-of-use assets Finance lease assets ​ 384 ​ 2,580 Property, plant and equipment, net Total leased assets ​ $ 3,039 ​ $ 5,624 ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ Current: ​ ​ Operating leases ​ $ 693 ​ $ 681 Current portion of operating lease liabilities Finance leases ​ 97 ​ 836 Current portion of long-term debt Noncurrent: ​ ​ ​ ​ Operating leases ​ 2,741 ​ 3,254 Operating lease liabilities Finance leases ​ 258 ​ 331 Long-term debt, net of current portion Total lease liabilities ​ $ 3,789 ​ $ 5,102 ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 December 31, 2019 Weighted-Average Remaining Lease Term (years) ​ ​ ​ ​ ​ ​ Operating lease assets 4.1 ​ 4.7 ​ Finance lease assets 3.4 ​ 1.8 ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average Discount Rate ​ ​ ​ ​ Operating lease assets 15.0 % 15.0 % Finance lease assets 6.4 % 11.8 % ​ Supplemental consolidated cash flow information related to leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ ​ 2020 ​ 2019 ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 919 ​ $ 879 Operating cash flows from finance leases ​ 52 ​ 173 Financing cash flows from finance leases ​ 812 ​ 801 ​ ​ ​ ​ ​ ​ ​ ROU assets obtained in exchange for new finance lease liabilities ​ — ​ 406 ROU assets obtained in exchange for new operating lease liabilities ​ $ — ​ $ 135 ​ Maturities of lease liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ Operating Leases Finance Leases ​ ​ (in thousands) 2020 - remaining ​ $ 307 ​ $ 30 2021 ​ 1,118 ​ 117 2022 ​ 1,060 ​ 115 2023 ​ 1,055 ​ 95 2024 ​ 1,106 ​ 40 Total lease payments ​ $ 4,646 ​ $ 397 Less amount representing interest ​ (1,212) ​ (42) Total lease obligations ​ $ 3,434 ​ $ 355 ​

Common stock

Common stock	9 Months Ended
	Sep. 30, 2020
Common Stock.
Common stock	Note 9. Common stock ​ On August 1, 2016, the Company filed a shelf registration statement on Form S-3, which was declared effective by the SEC on August 12, 2016. This shelf registration statement covered the offering, issuance and sale by the Company of up to an aggregate of $125.0 million of its common stock, preferred stock, debt securities, warrants and/or units (the “2016 Shelf”). The Company simultaneously entered into a sales agreement with Cowen and Company, LLC, as sales agent, to provide for the offering, issuance and sale by the Company of up to $40.0 million of its common stock from time to time in “at-the-market” offerings under the 2016 Shelf (the “Cowen Sales Agreement”). ​ In February 2017, the Company closed an underwritten public offering of 5,750,000 shares of its common stock under the 2016 Shelf at a public offering price of $5.00 per share, which included 750,000 shares of its common stock resulting from the underwriters’ exercise of their over-allotment option. Deerfield participated in the purchase of the Company’s common shares as part of this public offering, and as a result, was classified as a related party at the time of the corresponding transactions. The net proceeds to the Company from this offering, after deducting underwriting discounts and commissions and other offering expenses payable by the Company, were approximately $26.7 million. ​ On June 30, 2017, the Company closed an underwritten public offering of 4,800,000 shares of its common stock under the 2016 Shelf at a public offering price of $6.25 per share for total proceeds of $30.0 million before estimated offering costs of $0.2 million. The Company also granted the underwriter a 30-day option to purchase up to an additional 720,000 shares of its common stock which was exercised in full on July 26, 2017. The net proceeds to the Company through July 26, 2017 from this offering, after deducting offering expenses payable by the Company, were approximately $34.3 million. ​ During the year ended December 31, 2017, the Company sold an aggregate 749,639 shares of common stock under the Cowen Sales Agreement, at an average sale price of approximately $5.01 per share for gross proceeds of $3.7 million and net proceeds of $3.6 million and paying total compensation to the sales agent of approximately $0.1 million. ​ On October 26, 2017, Deerfield provided a conversion notice electing to convert the entire $6.6 million of Convertible Notes into shares of the Company’s common stock at a conversion price of $7.08 per share. The conversion price was based on 95% of the average of the volume weighted average prices per share of the Company’s common stock on the NASDAQ Global Market for the three- trading day period immediately preceding such conversion. This resulted in issuing 929,967 shares of the Company’s common stock to Deerfield on this date and the Convertible Notes were cancelled. ​ During the year ended December 31, 2018, the Company sold an aggregate 651,525 shares of common stock under the Cowen Sales Agreement, at an average sale price of approximately $6.25 per share for gross proceeds of $4.1 million and net proceeds of $3.9 million and paying total compensation to the sales agent and other costs of approximately $0.2 million. ​ On November 5, 2018, the Company filed Supplement No. 1 to the prospectus dated August 12, 2016, which reduced the size of the continuous offering by the Company under such prospectus relating to the offering of Common Stock pursuant to the Sales Agreement. Following the reduction, the Company was authorized to issue up to $7,825,113 of its common stock pursuant to the Sales Agreement (inclusive of amounts previously sold thereunder prior to the date hereof), equal to aggregate gross proceeds of sales of the Company’s common stock under the Sales Agreement as of that date, and sales of common stock under the Sales Agreement were suspended. The Cowen Sales Agreement terminated with the expiration of the 2016 Shelf on August 12, 2019. ​ On November 8, 2018, the Company closed an underwritten public offering of 19,999,999 shares of its common stock at a public offering price of $2.30 per share, which includes 2,608,695 shares of its common stock resulting from the underwriters’ exercise of their over-allotment option at the public offering price. The net proceeds to the Company from this offering, after deducting underwriting discounts and commissions and other offering expenses payable by the Company were approximately $43.4 million. This offering met the criteria for the November Offering. ​ During the nine months ended September 30, 2020, the Company issued 17,841 shares of common stock pursuant to the conversion of vested RSUs and 4,582 shares of common stock pursuant to the exercise of vested stock options. During the year ended December 31, 2019, the Company issued 20,328 shares of common stock pursuant to the conversion of vested RSUs and 36,040 shares of common stock pursuant to the exercise of vested stock options. ​ On March 18, 2019, the Company filed a shelf registration statement covering the offering, issuance and sale by the Company of up to an aggregate of $100.0 million of its common stock, preferred stock, debt securities, warrants and/or units (the “2019 Shelf”), which was declared effective by the SEC on May 1, 2019. Effective as of August 12, 2019, the 2016 Shelf is no longer available for further primary offerings or sales of the Company’s securities. The Company simultaneously entered into a sales agreement with Cantor Fitzgerald & Co., as sales agent, to provide for the offering, issuance and sale by the Company of up to $30.0 million of its common stock from time to time in “at-the-market” offerings under the 2019 Shelf (the “Cantor Sales Agreement”). No sales have been made under the Cantor Sales Agreement during the nine months ended September 30, 2020. As of September 30, 2020, $100.0 million of the Company’s common stock, preferred stock, debt securities, warrants and/or units remained available to be sold pursuant to the 2019 Shelf, including $30.0 million of the Company’s common stock which remained available to be sold under the Cantor Sales Agreement, subject to certain conditions specified therein.

Share-based Compensation

Share-based Compensation	9 Months Ended
	Sep. 30, 2020
Share-based Compensation
Share-based Compensation	Note 10. Share-based Compensation ​ Share-based Compensation Plans ​ In July 2015, the Company adopted the Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan (“2015 Plan”) which became effective immediately prior to the closing of the IPO and initially had 767,330 shares of common stock reserved for issuance. On January 1, 2016 and each January 1 thereafter, the number of shares of common stock reserved and available for issuance under the 2015 Plan shall be cumulatively increased by five percent of the number of shares of common stock issued and outstanding on the immediately preceding December 31 or such lesser number of shares determined by the administrator of the 2015 Plan. Accordingly, on January 1, 2020 and 2019, the Company added 2,486,633 shares and 2,483,815 shares, respectively, to the option pool. The 2015 Plan superseded the Neos Therapeutics, Inc. 2009 Equity Plan (“2009 Plan”), originally adopted in November 2009 and which had 1,375,037 shares reserved and available for issuance. Effective upon closing of the IPO, the Company’s Board of Directors determined not to grant any further awards under the 2009 Plan. ​ The shares of common stock underlying any awards that are forfeited, canceled, reacquired by the Company prior to vesting, satisfied without the issuance of stock or otherwise terminated (other than by exercise) under the 2009 Plan will be added to the shares of common stock available under the 2015 Plan. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. The 2015 Plan is administered by the Company’s Compensation Committee, which has full power to select, from among the individuals eligible for awards, the individuals to whom awards will be granted, to make any combination of awards to participants and to determine the specific terms and conditions of each award, subject to the provisions of the 2015 Plan. The Company’s Compensation Committee may delegate authority to grant certain awards to the Company’s chief executive officer. Through September 30, 2020, the Company has granted options, restricted stock and RSUs under the 2015 Plan, or previously, the 2009 Plan. The exercise price per share for the stock covered by a stock award granted shall be determined by the administrator at the time of grant but shall not be less than 100 percent of the fair market value on the date of grant. Unexercised stock awards under the 2015 Plan expire after the earlier of 10 years or termination of employment, except in the case of any unexercised vested options, which generally expire 90 days after termination of employment. ​ The 2009 Plan allowed the Company to grant options to purchase shares of the Company’s common stock and to grant restricted stock awards to members of its management and selected members of the Company’s board of directors. Restricted stock awards are recorded as deferred compensation and amortized into compensation expense, on a straight-line basis over a defined vesting period ranging from 1 two ​ In June 2018, the Company adopted the Neos Therapeutics, Inc. 2018 Inducement Plan (the “Inducement Plan”) which had 800,000 shares of common stock reserved and available for issuance. The Inducement Plan allows the Company to grant equity awards to induce highly-qualified prospective officers and employees who are not currently employed by the Company to accept employment and provide them with a proprietary interest in the Company. The Inducement Plan is administered by the Company’s compensation committee. The exercise price per share for the stock covered by a stock award granted pursuant to the Inducement Plan shall be determined by the administrator at the time of grant but shall not be less than 100 percent of the fair market value on the date of grant. Unexercised stock awards under the Inducement Plan expire after 10 years following the grant date. Under the Company’s employment agreement dated June 27, 2018 with Gerald McLaughlin, the Company’s Chief Executive Officer, the Company granted Mr. McLaughlin, under the Inducement Plan, an option to purchase 600,000 shares of the Company’s common stock, which vests in equal annual installments over four years from Mr. McLaughlin’s start date. In addition, on July 30, 2018, the Company granted Mr. ​ Share-based Compensation Expense ​ The Company has reported share-based compensation expense for the three and nine months ended September 30, 2020 and 2019, respectively, in its condensed consolidated statements of operations as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ ​ (in thousands) ​ Cost of goods sold ​ $ 50 ​ $ 139 ​ $ 201 ​ $ 426 ​ Research and development ​ ​ 31 ​ ​ 94 ​ ​ 191 ​ ​ 299 ​ Selling and marketing ​ ​ 47 ​ ​ 61 ​ ​ 200 ​ ​ 272 ​ General and administrative ​ ​ 404 ​ ​ 342 ​ ​ 1,653 ​ ​ 1,535 ​ ​ ​ $ 532 ​ $ 636 ​ $ 2,245 ​ $ 2,532 ​ ​ The total share-based compensation expense included in the table above is attributable to stock options and RSUs of $0.3 million and $0.2 million, respectively, for the three months ended September 30, 2020 and $1.8 million and $0.4 million, respectively, for the nine months ended September 30, 2020. The total share based compensation expense included in the table above is attributable to stock options and RSUs of $0.6 million and $35,000, respectively, for the three months ended September 30, 2019 and $2.4 million and $0.1 million, respectively, for the nine months ended September 30, 2019. ​ As of September 30, 2020, there was $3.5 million compensation costs, adjusted for any estimated forfeitures, related to non-vested stock options and RSUs granted under the Company’s equity incentive plans not yet recognized in the Company’s financial statements. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.3 years for stock options and 1.3 years for RSUs. There is no unrecognized compensation cost associated with grants of restricted stock. ​ Stock Options ​ During the nine months ended September 30, 2020, the Company granted 1,966,250 options under the 2015 Plan. During the year ended December 31, 2019, the Company granted 2,119,708 options under the 2015 Plan. ​ The Company estimates the fair value of all stock options on the grant date by applying the Black-Scholes option pricing valuation model. The application of this valuation model involves assumptions that are highly subjective, judgmental and sensitive in the determination of compensation cost. Prior to the IPO, given the absence of an active market for the Company’s common stock prior to its IPO, the Company’s board of directors was required to estimate the fair value of its common stock at the time of each option grant primarily based upon valuations performed by a third-party valuation firm. ​ The weighted-average key assumptions used in determining the fair value of options granted during the period indicated are as follows: ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, 2020 Estimated dividend yield ​ 0.00 % Expected stock price volatility ​ 73.71 % Weighted-average risk-free interest rate ​ 0.98 % Expected life of option in years ​ 6.25 ​ Weighted-average option fair value at grant ​ $ 0.73 ​ ​ A summary of outstanding and exercisable options as of September 30, 2020 and December 31, 2019 and the activity from December 31, 2019 through September 30, 2020, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ Number of ​ Average ​ Intrinsic ​ Options Exercise Price Value ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2019 4,430,966 ​ $ 5.551 ​ $ 53 Exercisable at December 31, 2019 1,518,972 ​ $ 8.735 ​ $ 31 Granted 1,966,250 ​ ​ 1.130 ​ ​ ​ Exercised ​ (4,582) ​ ​ 0.320 ​ ​ ​ Expired, forfeited or cancelled (891,095) ​ ​ 3.370 ​ ​ ​ Outstanding at September 30, 2020 5,501,539 ​ $ 4.330 ​ $ 1 Exercisable at September 30, 2020 2,369,564 ​ $ 6.840 ​ $ 1 ​ The weighted-average remaining contractual life of options outstanding and exercisable on September 30, 2020 was 8.0 and 7.0 years, respectively. The option exercise price for all options granted January 1, 2020 through September 30, 2020 ranged from $0.67 per share to $1.62 per share. The weighted-average remaining contractual life of options outstanding and exercisable on December 31, 2019 was 8.2 and 6.9 years, respectively. The option exercise price for all options granted in the year ended December 31, 2019 ranged from $1.36 to $3.14 per share. ​ Restricted Stock Units ​ On March 2, 2020, the Company granted 741,750 RSUs to members of its management that vest in two equal annual installments, beginning March 2, 2021. On June 10, 2020, the Company granted 164,171 RSUs to its non-employee directors that will vest on the one-year anniversary of the grant date and 136,250 RSUs to employees that will vest in two equal annual installments beginning on June 10, 2021. ​ The Company satisfies its RSUs by issuing shares of the Company’s common stock when RSUs vest and are issued. In addition, when RSUs vest and are issued, RSU recipients may elect to have the Company withhold units as consideration for the tax withholding obligation for their vested RSUs. During the nine months ended September 30, 2020, 19,687 vested RSUs were converted into an equivalent 17,841 shares of common stock. The Company withheld 1,846 shares of its common stock to partially satisfy tax withholding obligations upon vesting of the RSUs for the nine months ended September 30, 2020. During the year ended December 31, 2019, 21,251 vested RSUs were converted into an equivalent 20,328 shares of common stock. The Company withheld 923 shares of its common stock to partially satisfy tax withholding obligations upon vesting of the RSUs for the year ended December 31, 2019. ​ A summary of outstanding RSUs as of September 30, 2020 and December 31, 2019 and the activity from December 31, 2019 through September 30, 2020, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Number of ​ Average ​ ​ RSUs ​ Fair Value ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2019 54,063 ​ $ 7.96 Granted 1,042,171 ​ ​ 1.31 Vested (19,687) ​ 7.76 Expired, forfeited or cancelled (10,000) ​ 1.49 Outstanding at September 30, 2020 1,066,547 ​ $ 1.53 ​ Restricted stock ​ The Company did not issue any shares of restricted stock for the nine months ended September 30, 2020, or for the year ended December 31, 2019. No vested restricted stock awards were settled during the nine months ended September 30, 2020. ​ The Company had no unvested restricted stock as of September 30, 2020 and December 31, 2019. For the nine months ended September 30, 2020, there were no shares of restricted stock granted or forfeited .

Treasury stock

Treasury stock	9 Months Ended
	Sep. 30, 2020
Treasury stock.
Treasury stock	Note 11. Treasury stock ​ The Company has the authority to repurchase common stock from former employees, officers, directors or other persons who performed services for the Company at the lower of the original purchase price or the then-current fair market value. On October 16, 2017, October 17, 2016 and October 16, 2015, 14,895 shares, 9,709 shares and 9,197 shares, respectively, of restricted stock were surrendered by the holder to the Company to cover taxes associated with vesting of restricted stock and such shares were added back into the treasury stock of the Company, increasing total treasury stock to 33,801 shares as of September 30, 2020 and December 31, 2019.

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and contingencies
Commitments and contingencies	Note 12. Commitments and contingencies ​ Registration Payment Arrangement : On November 5, 2018, in conjunction with the Second Amendment to the Facility and the related issuance of the Convertible Notes, the Company entered into the Registration Agreement which required the Company to file a registration statement with the SEC to register the Registrable Securities (see Note 7) within 30 days from November 5, 2018, which was to become effective per the SEC no later than 75 days thereafter. The filing deadline was subsequently extended to December 21, 2018. The Company filed a registration statement on Form S-3 to comply with the Registration Agreement on December 11, 2018, which became effective on December 20, 2018. This filing covered ​ Patent Infringement Litigation: ​ On July 25, 2016, the Company received a paragraph IV certification from Actavis Laboratories FL, Inc. (“Actavis”) advising the Company that Actavis had filed an ANDA with the FDA for a generic version of Adzenys XR-ODT. On September 1, 2016, the Company filed a patent infringement lawsuit in federal district court against Actavis alleging that Actavis infringed the Company’s Adzenys XR-ODT patents. On October 17, 2017, the Company entered into a Settlement Agreement (the “Actavis Settlement Agreement”) and a Licensing Agreement (the “Actavis Licensing Agreement” and collectively with the Actavis Settlement Agreement, the “Actavis Agreement”) with Actavis that resolved all ongoing litigation involving the Company’s Adzenys XR-ODT patents and Actavis’s ANDA. Under the Actavis Agreement, the Company granted Actavis the right to manufacture and market its generic version of Adzenys XR-ODT under the ANDA beginning on September 1, 2025, or earlier under certain circumstances. A stipulation and order of dismissal was entered by the U.S. District Court for the District of Delaware. The Actavis Agreement has been submitted to the applicable governmental agencies. ​ Other Litigation: ​ While the Company believes that these lawsuits are without merit and intends to vigorously defend against them, the Company is not able to predict at this time whether these proceedings will have a material impact on its results of operations. ​ Operating lease: ​ Cash incentive bonus plan:

License agreements

License agreements	9 Months Ended
	Sep. 30, 2020
License agreements
License agreements	Note 13. License agreements ​ On October 23, 2018, the Company entered into an Exclusive License Agreement (“NeuRx License”) with NeuRx Pharmaceuticals LLC (“NeuRx”), pursuant to which NeuRx granted the Company an exclusive, worldwide, royalty-bearing license to research, develop, manufacture, and commercialize certain pharmaceutical products containing NeuRx’s proprietary compound designated as NRX-101, referred to by the Company as NT0502. NT0502 is a new chemical entity that is being developed by the Company for the treatment of sialorrhea, which is excessive salivation or drooling. Under the NeuRx License, the Company made an upfront payment of $0.2 million to NeuRx upon the execution of the agreement. During the nine months ended September 30, 2020, the Company made a payment of $0.2 million following receipt of notice of allowance of the first Licensed Patent by the United States Patent and Trademark Office (“USPTO”), as defined in the NeuRx License. Such Licensed Patent subsequently was issued by the USPTO. Also, during the nine months ended September 30, 2020, the Company met the completion of the first Pilot PK Study milestone, as defined in the NeuRx License, triggering a payment of $0.3 million that was made in April 2020. The Company may in the future be required to make certain development and milestone payments and royalties based on annual net sales, as defined in the NeuRx License. Royalties are to be paid on a country-by-country and licensed product-by-licensed product basis, during the period of time beginning on the first commercial sale of such licensed product in such country and continuing until the later of: (i) the expiration of the last-to-expire valid claim in any licensed patent in such country that covers such licensed product in such country; and/or (ii) expiration of regulatory exclusivity of such licensed product in such country. ​ Under the Teva Licensing Agreement, the Company granted Teva a non-exclusive license to certain patents owned by the Company by which Teva has the right to manufacture and market its generic version of Cotempla XR-ODT under its ANDA beginning on July 1, 2026, or earlier under certain circumstances. The Teva Licensing Agreement has been submitted to the applicable governmental agencies (see Note 12). ​ Under the Actavis Licensing Agreement, the Company granted Actavis a non-exclusive license to certain patents owned by the Company by which Actavis has the right to manufacture and market its generic version of Adzenys XR-ODT under its ANDA beginning on September 1, 2025, or earlier under certain circumstances. The Actavis Licensing Agreement has been submitted to the applicable governmental agencies (see Note 12). ​ On July 23, 2014, the Company entered into a Settlement Agreement and an associated License Agreement (the “2014 License Agreement”) with Shire LLC (“Shire”) for a non-exclusive license to certain patents for certain activities with respect to the Company’s New Drug Application (the “NDA”) No. 204326 for an extended-release orally disintegrating amphetamine polistirex tablet. In accordance with the terms of the 2014 License Agreement, following the receipt of the approval from the FDA for Adzenys XR-ODT, the Company paid a lump sum, non-refundable license fee of an amount less than $1.0 million in February 2016. The Company is paying a single digit royalty on net sales of Adzenys XR-ODT during the life of the patents. ​ On March 6, 2017, the Company entered into a License Agreement (the “2017 License Agreement”) with Shire, pursuant to which Shire granted the Company a non-exclusive license to certain patents owned by Shire for certain activities with respect to the Company’s NDA No. 204325 for an extended-release amphetamine oral suspension. In accordance with the terms of the 2017 License Agreement, following the receipt of the approval from the FDA for Adzenys ER, the Company paid a lump sum, non-refundable license fee of an amount less than $1.0 million in October 2017. The Company is paying a single digit royalty on net sales of Adzenys ER during the life of the patents. ​ Such license fees are capitalized as an intangible asset and are amortized into cost of goods sold over the life of the longest associated patent. The royalties are recorded as cost of goods sold in the same period as the net sales upon which they are calculated. ​ Additionally, each of the 2014 and 2017 License Agreements contains a covenant from Shire not to file a patent infringement suit against the Company alleging that Adzenys XR-ODT or Adzenys ER, respectively, infringes the Shire patents.

Related party transactions

Related party transactions	9 Months Ended
	Sep. 30, 2020
Related party transactions
Related party transactions	Note 14. Related party transactions ​ In February 2017, the Company closed an underwritten public offering of 5,750,000 shares of its common stock at a public offering price of $5.00 per share, which includes 750,000 shares of the Company’s common stock resulting from the underwriters’ exercise of their over-allotment option at the public offering price on February 17, 2017. On June 30, 2017, the Company closed an underwritten public offering of 4,800,000 shares of its common stock at a public offering price of $6.25 per share for total proceeds of $30.0 million before estimated offering costs of $0.2 million. The Company also granted the underwriter a 30 -day option to purchase up to an additional 720,000 shares of its common stock. Deerfield, the Company’s senior lender, participated in the purchase of the Company’s common shares as part of both public offerings, and as a result, is classified as a related party. The Company is obligated under a $60.0 million senior secured credit Facility that was issued by the Company to Deerfield. On June 1, 2017, the Company and Deerfield entered into an Amendment to the Company’s existing Facility with Deerfield which extended the date to repay the Accrued Interest under the Facility to June 1, 2018, which may have been extended to June 1, 2019 at the election of the Company if certain conditions have been met as specified in the Amendment. The right to payment of the Accrued Interest was memorialized in the form of Convertible Notes issued to Deerfield on the Amendment Date. On October 26, 2017, Deerfield provided a conversion notice electing to convert the entire $6.6 million of Convertible Notes into shares of the Company’s common stock at a conversion price of $7.08 per share. The conversion price was based on 95% of the average of the volume weighted average prices per share of the Company’s common stock on the NASDAQ Global Market for the three trading day period immediately preceding such conversion. This resulted in issuing 929,967 shares of the Company’s common stock to Deerfield on this date and the Convertible Notes were cancelled (see Note 7). ​ On November 5, 2018, the Company and Deerfield entered into the Second Amendment to the Facility pursuant to which the Company agreed to pay $7.5 million of principal under the Facility otherwise due in May 2019 upon completion of the November Offering. The Second Amendment provides an option for the $15.0 million principal on the Facility due in May 2020 to be paid in either May 2021 or May 2022 upon the achievement of certain revenue milestones as described in the Second Amendment. The revenue milestone was not met for the period ending December 31, 2019. Also, pursuant to the Second Amendment, the Company amended and restated its outstanding notes under the Facility in the form of senior secured convertible notes. The Company has the right to pay principal and future interest in shares of Common Stock not to exceed 2,135,625 shares in the aggregate. Additionally, subject to the terms of the amended and restated convertible notes, Deerfield has the right to convert the remaining principal under the Facility into shares of Common Stock not to exceed 3,796,668 shares in the aggregate at a conversion price ranging from 95% to 83% of the greater of the average of the volume weighted average price per share of the Common Stock for the three ​ On May 6, 2020, the Company and Deerfield entered into the Fifth Amendment pursuant to which the Company deferred $5.0 million of principal otherwise due on May 11, 2020. The Company is required to pay the Deferred Principal in eight

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	9 Months Ended
	Sep. 30, 2020
Summary of significant accounting policies
Basis of presentation	Basis of presentation: The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), for interim information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations, and cash flows. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of results of operations for and financial condition as of the end of the interim period have been included. Results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results for the year ending December 31, 2020 or any period thereafter. The audited consolidated financial statements as of and for the year ended December 31, 2019 included information and footnotes necessary for such presentation and were included in the Neos Therapeutics, Inc. Annual Report on Form 10-K filed with the SEC on March 13, 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2019. ​
Principles of consolidation	Principles of consolidation: ​
Use of estimates	Use of estimates : The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. ​
Liquidity	Liquidity: During 2019 and the three and nine months ended September 30, 2020, the Company incurred operating losses and used cash to fund operations. Management intends to achieve profitability through revenue growth from its currently marketed pharmaceutical products. The Company does not anticipate it will be profitable until such time as revenues from Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER increase substantially over current levels. On October 2, 2019, the Company entered into a senior secured credit agreement with Encina Business Credit, LLC (“Encina”) as agent for the lenders (the “Loan Agreement”), in which Encina will extend up to $25.0 million in secured Revolving Loans to the Company, of which up to $2.5 million may be available for short-term swingline loans, against 85% of eligible accounts receivables. Accordingly, management has performed the review required for going concern accounting and does not believe the Company presently has sufficient liquidity to continue to operate for the next twelve months after the filing of this Quarterly Report on Form 10-Q. ​
Cash equivalents	Cash equivalents: ​
Short-term investments	Short-term investments: Short-term investments, if any, consist of debt securities that have original maturities greater than three months but less than or equal to one year and are classified as available-for-sale securities. Such securities are carried at estimated fair value, with any unrealized holding gains or losses reported, net of material tax effects, as accumulated other comprehensive income or loss, which is a separate component of stockholders in the consolidated results of operations. A decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in fair value charged to earnings in that period, and a new cost basis for the security is established. Dividend and interest income are recognized in other income when earned. The cost of securities sold is calculated using the specific identification method. The Company places all investments with government agencies or corporate institutions whose debt is rated as investment grade. The Company classifies all available-for-sale marketable securities with maturities greater than one year from the balance sheet date, if any, as non-current assets. ​
Inventories	Inventories ​ Until objective and persuasive evidence exists that regulatory approval has been received and future economic benefit is probable, pre-launch inventories are expensed into research and development. Manufacturing costs for the production of Adzenys XR-ODT incurred after the January 27, 2016 FDA approval date, for the production of Cotempla XR-ODT incurred after June 30, 2017, following the FDA approval date of June 19, 2017, and for the production of Adzenys ER incurred after September 30, 2017, following the FDA approval date of September 15, 2017, are being capitalized into inventory.
Leases	Leases: ​ Fixed lease payments are recognized over the expected term of the lease using the effective interest method. Variable lease expenses that are not considered fixed, or in substance fixed, are expensed as incurred. Fixed and variable lease expense on operating leases are recognized within cost of goods sold and operating expenses in the Company’s consolidated statements of operations. ROU asset amortization and interest costs on financing leases are recorded within cost of goods sold and interest expense, respectively, in the Company’s consolidated statements of operations. The Company has elected the short-term lease exemption and recognizes a short-term lease expense over lease terms of 12 months or less. ​ Operating leases are included in operating lease ROU assets, current portion of operating lease liabilities and operating lease liabilities in the Company’s consolidated balance sheets. Financing leases are included in property and equipment, net, current portion of long-term debt and long-term debt, net of current portion in the Company’s condensed consolidated balance sheets.
Debt issuance costs and discounts	Debt issuance costs and discounts
Derivative liabilities	Derivative liabilities: ​ When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. The company records the corresponding credit to additional paid in capital in the consolidated statements of stockholders’ (deficit) equity. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption and are classified in interest expense in the consolidated results of operations. ​
Intangible assets	Intangible assets : Intangible assets subject to amortization, which principally include proprietary modified-release drug delivery technology, the costs to acquire the rights to Tussionex Abbreviated New Drug Application and patents, are recorded at cost and amortized over the estimated lives of the assets, which primarily range from ​
Revenue recognition	Revenue recognition : Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company makes estimates of the net sales price, including estimates of variable consideration (e.g., savings offers, prompt payment discounts, product returns, wholesaler fees, wholesaler chargebacks and estimated rebates) to be incurred on the selling price of the respective product sales, and recognizes the estimated amount as revenue when it transfers control of the product to its customers (e.g., upon delivery). Variable consideration is determined using either an expected value or a most likely amount method. The estimate of variable consideration is also subject to a constraint such that some or all of the estimated amount of variable consideration will only be included in the transaction price to the extent that it is probable that a significant reversal of revenue (in the context of the contract) will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimating variable consideration and the related constraint requires the use of significant management judgment and other market data. The Company provides for prompt payment discounts, wholesaler fees and wholesaler chargebacks based on customer contractual stipulations. The Company analyzes recent product return history and other market data obtained from its third party logistics providers (“3PLs”) to determine a reliable return rate. Additionally, management analyzes historical savings offers and rebate payments based on patient prescriptions dispensed for Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER and information obtained from third party providers to determine these respective variable considerations. ​ The Company sells its generic Tussionex, Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER to a limited number of pharmaceutical wholesalers, all subject to rights of return. Pharmaceutical wholesalers buy drug products directly from manufacturers. Title to the product passes upon delivery to the wholesalers, when the risks and rewards of ownership are assumed by the wholesaler (freight on board destination). These wholesalers then resell the product to retail customers such as food, drug and mass merchandisers. ​ The Company views its operations and manages its business in one operating segment, which is the development, manufacturing and commercialization of pharmaceuticals. ​ Contract Balances ​ Contract assets primarily relate to our right to consideration in exchange for products transferred to a customer in which our right to consideration is dependent upon the customer selling these products. As of September 30, 2020 and December 31, 2019, contract assets of $10,000 and $27,000, respectively, were included in other current assets in the consolidated balance sheets. As of September 30, 2020, contract liabilities of $49,000 was included in accrued expenses in the consolidated balance sheets. As of December 31, 2019, the Company had no contract liability. ​ Disaggregation of revenue ​ The following table disaggregates the Company’s net product sales by product: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine months ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 ​ 2020 2019 ​ ​ (in thousands) ​ Adzenys XR-ODT ​ $ 6,177 ​ $ 8,794 ​ $ 16,547 ​ $ 22,692 ​ Cotempla XR-ODT ​ 5,596 ​ 7,227 ​ 19,134 ​ 19,513 ​ Adzenys ER ​ 102 ​ 232 ​ 337 ​ 563 ​ Generic Tussionex ​ 660 ​ 1,287 ​ 4,143 ​ 5,049 ​ ​ ​ $ 12,535 ​ $ 17,540 ​ $ 40,161 ​ $ 47,817 ​ ​ ​ Net product sales ​ Net product sales represent total gross product sales less gross to net sales adjustments. Gross to net sales adjustments for branded Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER include savings offers, prompt payment discounts, wholesaler fees, estimated wholesaler chargebacks and estimated rebates to be incurred on the selling price of the respective product sales and estimated allowances for product returns. ​ Gross to net sales adjustments for generic Tussionex include prompt payment discounts, estimated allowances for product returns, wholesaler fees, estimated government rebates and estimated chargebacks to be incurred on the selling price of generic Tussionex related to the respective product sales. ​ The Company recognizes total gross product sales less gross to net sales adjustments as revenue based on shipments from 3PLs to the Company’s wholesaler customers. ​ Due to estimates and assumptions inherent in determining the amount of returns, rebates and chargebacks, the actual amount of returns, claims for rebates and chargebacks may be different from the estimates, at which time reserves would be adjusted accordingly. ​ Savings offers for branded products ​ The Company offers savings programs for Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER to patients covered under commercial payor plans in which the cost of a prescription to such patients is discounted. The amount of redeemed savings offers is recorded based on information from third-party providers against the estimated discount recorded as accrued expenses. The estimated discount is recorded as a gross to net sales adjustments at the time revenue is recognized. ​ Prompt payment discounts ​ Prompt payment discounts are based on standard programs with wholesalers and are recorded as a discount allowance against accounts receivable and as a gross to net sales adjustments at the time revenue is recognized. ​ Wholesale distribution fees ​ Wholesale distribution fees are based on definitive contractual agreements for the management of the Company’s products by wholesalers and are recorded as accrued expenses and as a gross to net sales adjustment at the time revenue is recognized. ​ Rebates ​ The Company’s branded Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER are subject to commercial managed care and government managed Medicare and Medicaid programs whereby discounts and rebates are provided to participating managed care organizations and federal and/or state governments. Calculations related to rebate accruals of branded products are estimated based on information from third-party providers. ​ The Company’s generic Tussionex product is subject to state government-managed Medicaid programs whereby discounts and rebates are provided to participating state governments. Generic Tussionex government rebates are estimated based upon rebate payment data available from sales of the Company’s generic Tussionex product over the past three years. ​ Estimated rebates are recorded as accrued expenses and as a gross to net sales adjustment at the time revenue is recognized. Historical trends of estimated rebates will be regularly monitored, which may result in adjustments to such estimates in the future. ​ Product returns ​ Wholesalers’ contractual return rights are limited to defective product, product that was shipped in error, product ordered by customer in error, product returned due to overstock, product returned due to dating or product returned due to recall or other changes in regulatory guidelines. The return policy for expired product allows the wholesaler to return such product starting six months prior to expiry date to twelve months post expiry date. Estimated returns are recorded as accrued expenses and as a gross to net sales adjustments at the time revenue is recognized. ​ The Company analyzed recent branded product return data to determine a reliable return rate for branded Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER. Generic Tussionex product returns were estimated based upon return data available from sales of the Company’s generic Tussionex product over the past three years. ​ Wholesaler chargebacks ​ The Company’s products are subject to certain programs with wholesalers whereby pricing on products is discounted below wholesaler list price to participating entities. These entities purchase products through wholesalers at the discounted price, and the wholesalers charge the difference between their acquisition cost and the discounted price back to the Company. Estimated chargebacks are recorded as a discount allowance against accounts receivable and as a gross to net sales adjustments at the time revenue is recognized based on information provided by third parties. ​
Research and development costs	Research and development costs: ​
Share-based compensation	Share-based compensation: operations based on their fair values. Compensation expense related to stock-based awards is recognized on a straight-line basis, based on the grant date fair value, over the requisite service period of the award, which is generally the vesting term. The fair value of the Company’s stock-based awards to employees and directors is estimated using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including (1) the expected stock price volatility, (2) the expected term of the award, (3) the risk-free interest rate and (4) expected dividends. ​ For performance-based stock awards, compensation expense is recognized on a straight-line basis, based on the grant date fair value, over the performance period or through the vesting date, whichever is longer. Management monitors the probability of achievement of the performance conditions and adjusts stock-based compensation expense, if necessary. ​ Since the Company’s initial public offering (“IPO”) in July 2015, the Company’s board of directors has determined the fair value of each share of underlying common stock based on the closing price of the Company’s common stock as reported by the NASDAQ Global Market on the date of grant. ​ Under ASU No. 2017-09 guidance for accounting for share-based payments, the Company has elected to continue estimating forfeitures at the time of grant and, if necessary, revise the estimate in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the actual expense recognized over the vesting period will only be for those options that vest. ​
Paragraph IV litigation costs	Paragraph IV litigation costs ​
Income taxes	Income taxes : Income taxes are accounted for using the liability method, under which deferred taxes are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. ​ Management evaluates the Company’s tax positions in accordance with guidance on accounting for uncertainty in income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not that the position will be sustained upon examination. As of September 30, 2020 and December 31, 2019, the Company has unrecognized tax benefits associated with uncertain tax positions in the consolidated financial statements. These uncertain tax positions were netted against net operating losses (NOLs) with no separate reserve for uncertain tax positions required. ​ Deferred tax assets should be reduced by a valuation allowance if current evidence indicates that it is considered more likely than not that these benefits will not be realized. In evaluating the objective evidence that historical results provide, the Company considered that three years of cumulative operating losses was significant negative evidence outweighing projections for future taxable income. Therefore, at September 30, 2020 and December 31, 2019, the Company determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company has recorded a valuation allowance to reduce deferred tax assets to zero. The Company may not ever be able to realize the benefit of some or all of the federal and state loss carryforwards, either due to ongoing operating losses or due to ownership changes, which limit the usefulness of the loss carryforwards.
Recent accounting pronouncements	Recent accounting pronouncements Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)— Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ​ In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ​ In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ​ In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ From time to time, additional new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	9 Months Ended
	Sep. 30, 2020
Summary of significant accounting policies
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine months ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 ​ 2020 2019 ​ ​ (in thousands) ​ Adzenys XR-ODT ​ $ 6,177 ​ $ 8,794 ​ $ 16,547 ​ $ 22,692 ​ Cotempla XR-ODT ​ 5,596 ​ 7,227 ​ 19,134 ​ 19,513 ​ Adzenys ER ​ 102 ​ 232 ​ 337 ​ 563 ​ Generic Tussionex ​ 660 ​ 1,287 ​ 4,143 ​ 5,049 ​ ​ ​ $ 12,535 ​ $ 17,540 ​ $ 40,161 ​ $ 47,817 ​

Net loss per share (Tables)

Net loss per share (Tables)	9 Months Ended
	Sep. 30, 2020
Net loss per share
Schedule of potentially dilutive securities excluded in the computation of diluted net loss per share	​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 2020 ​ 2019 Series C Redeemable Convertible Preferred Stock Warrants (as converted) — 70,833 Stock options outstanding 5,501,539 4,547,797 RSUs outstanding ​ 1,066,547 ​ 55,626

Fair value of financial instr_2

Fair value of financial instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Fair value of financial instruments
Schedule of hierarchy for financial instruments measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value as of September 30, 2020 ​ Level 1 Level 2 Level 3 Total ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 12,744 ​ $ — ​ $ — ​ $ 12,744 Total financial assets ​ $ 12,744 ​ $ — ​ $ — ​ $ 12,744 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnout liability ​ $ — ​ $ — ​ $ 30 ​ $ 30 Derivative liability (see Note 7) ​ ​ — ​ ​ — ​ ​ 1,456 ​ ​ 1,456 Total financial liabilities ​ $ — ​ $ — ​ $ 1,486 ​ $ 1,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value as of December 31, 2019 ​ Level 1 Level 2 Level 3 Total ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 12,338 ​ $ 4,492 ​ $ — ​ $ 16,830 Short-term investments ​ ​ 1,261 ​ ​ 6,803 ​ ​ — ​ ​ 8,064 Total financial assets ​ $ 13,599 ​ $ 11,295 ​ $ — ​ $ 24,894 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnout liability ​ $ — ​ $ — ​ $ 30 ​ $ 30 Derivative liability (see Note 7) ​ ​ — ​ ​ — ​ ​ 1,135 ​ ​ 1,135 Total financial liabilities ​ $ — ​ $ — ​ $ 1,165 ​ $ 1,165 ​
Schedule of cash and cash equivalents and short-term investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ ​ Amortized ​ Unrealized ​ Market ​ Cost Gain / (Loss) Value ​ ​ ​ (in thousands) Bank deposits and money market funds ​ $ 12,744 ​ $ — ​ $ 12,744 ​ ​ $ 12,744 ​ $ — ​ $ 12,744 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ ​ Amortized ​ Unrealized ​ Market ​ Cost Gain / (Loss) Value ​ ​ (in thousands) Bank deposits and money market funds ​ $ 13,599 ​ $ — ​ $ 13,599 Financial and corporate debt securities ​ ​ 11,294 ​ ​ 1 ​ ​ 11,295 ​ ​ $ 24,893 ​ $ 1 ​ $ 24,894 ​
Schedule of changes in Level 3 liabilities measured at fair value	​ ​ ​ ​ ​ ​ ​ Level 3 ​ Liabilities ​ ​ (in thousands) Balance at December 31, 2019 ​ $ 1,165 Change in fair value ​ 321 Balance at September 30, 2020 ​ $ 1,486
Derivative liability
Fair value of financial instruments
Methodologies and significant inputs used in determination of fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Encina Derivative Liability ​ Deerfield Derivative Liability Date of Valuation ​ 9/30/2020 ​ 12/31/2019 ​ 9/30/2020 ​ 12/31/2019 Valuation Method ​ Discounted Cash Flow ​ Discounted Cash Flow ​ ​ Monte Carlo ​ Monte Carlo ​ Volatility (annual) ​ N/A ​ ​ N/A ​ ​ N/A ​ ​ N/A ​ Time period from valuation until maturity of debt (yrs.) ​ 1.6 2.4 ​ ​ 1.6 2.4 ​ Cumulative probability of a change in control prepayment implied by model ​ 18.3 % ​ 23.9 % ​ 15 % ​ 23 % Cumulative probability of other accelerated prepayments implied by model ​ N/A % N/A % ​ 21 % 10 % Discount rate ​ 6.0 % ​ 6.0 % ​ 35.55 % ​ 25.34 % Fair value of liability at valuation date (thousands) ​ $ 36 ​ $ 66 ​ ​ $ 1,420 ​ $ 1,069 ​ ​

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2020
Inventories
Schedule of inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2020 2019 ​ ​ (in thousands) ​ Raw materials ​ $ 2,790 ​ $ 3,679 ​ Work in process ​ 1,943 ​ 935 ​ Finished goods ​ 4,650 ​ 7,082 ​ Inventory at cost ​ 9,383 ​ 11,696 ​ Inventory reserve ​ (947) ​ (686) ​ ​ ​ $ 8,436 ​ $ 11,010 ​

Accrued expenses (Tables)

Accrued expenses (Tables)	9 Months Ended
	Sep. 30, 2020
Accrued expenses
Schedule of accrued expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2020 2019 ​ ​ (in thousands) Accrued savings offers ​ $ 12,608 ​ $ 16,790 Accrued rebates ​ 6,002 ​ 6,109 Accrued customer returns ​ 3,787 ​ 5,122 Accrued wholesaler fees ​ 2,513 ​ 5,014 Accrued payroll and benefits ​ 4,184 ​ 4,485 Other accrued expenses ​ 2,139 ​ 2,668 Total accrued expenses ​ $ 31,233 ​ $ 40,188

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2020
Debt
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2020 ​ 2019 ​ ​ ​ (in thousands) ​ Deerfield senior secured credit facility, net of discount of $2,538 and $1,982, respectively ​ $ 32,837 ​ $ 43,768 ​ Financing leases, maturing through May 2024 ​ 355 ​ 1,167 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 33,192 ​ 44,935 ​ Less current portion ​ (19,472) ​ (15,836) ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ $ 13,720 ​ $ 29,099 ​ ​
Schedule of future principal payments of long-term debt including financing leases	​ ​ ​ ​ ​ Period ending: September 30, ​ ​ (in thousands) ​ ​ ​ ​ 2021 ​ $ 19,472 2022 ​ ​ 16,104 2023 ​ ​ 92 2024 ​ ​ 62 ​ ​ ​ ​ Future principal payments ​ $ 35,730 ​ ​ ​ ​ Less unamortized debt discount related to long-term debt ​ (2,538) Less current portion of long-term debt ​ (19,472) ​ ​ ​ ​ Total long-term debt, net of current portion ​ $ 13,720

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases
Schedule of lease expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ ​ September 30, ​ ​ September 30, ​ ​ ​ ​ 2020 ​ 2019 ​ ​ 2020 ​ 2019 ​ Statement of Operations Classification ​ ​ (in thousands) ​ ​ (in thousands) ​ ​ Lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ $ 268 ​ $ 269 ​ $ 806 ​ $ 802 Cost of goods sold and operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term lease cost ​ 6 ​ 6 ​ 21 ​ 30 Cost of goods sold and operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variable lease cost ​ 98 ​ 53 ​ 204 ​ 165 Cost of goods sold and operating expenses Finance lease cost: ​ ​ ​ ​ ​ ​ ​ ​ Amortization of leased assets ​ 18 ​ 134 ​ 269 ​ 386 Cost of goods sold Interest on lease liabilities ​ 6 ​ 51 ​ 51 ​ 173 Interest expense Total net lease cost ​ $ 396 ​ $ 513 ​ $ 1,351 ​ $ 1,556
Schedule of balance sheet information related to leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 December 31, 2019 Balance Sheet Classification ​ ​ (in thousands) ​ ​ Leases: ​ ​ ​ ​ ​ ​ ​ ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ Operating lease assets ​ $ 2,655 ​ $ 3,044 Operating lease right-of-use assets Finance lease assets ​ 384 ​ 2,580 Property, plant and equipment, net Total leased assets ​ $ 3,039 ​ $ 5,624 ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ Current: ​ ​ Operating leases ​ $ 693 ​ $ 681 Current portion of operating lease liabilities Finance leases ​ 97 ​ 836 Current portion of long-term debt Noncurrent: ​ ​ ​ ​ Operating leases ​ 2,741 ​ 3,254 Operating lease liabilities Finance leases ​ 258 ​ 331 Long-term debt, net of current portion Total lease liabilities ​ $ 3,789 ​ $ 5,102
Schedule of weighted average lease term and discount rates	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 December 31, 2019 Weighted-Average Remaining Lease Term (years) ​ ​ ​ ​ ​ ​ Operating lease assets 4.1 ​ 4.7 ​ Finance lease assets 3.4 ​ 1.8 ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average Discount Rate ​ ​ ​ ​ Operating lease assets 15.0 % 15.0 % Finance lease assets 6.4 % 11.8 %
Schedule of supplemental cash flow information related to leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ ​ 2020 ​ 2019 ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 919 ​ $ 879 Operating cash flows from finance leases ​ 52 ​ 173 Financing cash flows from finance leases ​ 812 ​ 801 ​ ​ ​ ​ ​ ​ ​ ROU assets obtained in exchange for new finance lease liabilities ​ — ​ 406 ROU assets obtained in exchange for new operating lease liabilities ​ $ — ​ $ 135
Schedule of lease liability maturity	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ Operating Leases Finance Leases ​ ​ (in thousands) 2020 - remaining ​ $ 307 ​ $ 30 2021 ​ 1,118 ​ 117 2022 ​ 1,060 ​ 115 2023 ​ 1,055 ​ 95 2024 ​ 1,106 ​ 40 Total lease payments ​ $ 4,646 ​ $ 397 Less amount representing interest ​ (1,212) ​ (42) Total lease obligations ​ $ 3,434 ​ $ 355

Share-based Compensation (Table

Share-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Compensation
Schedule of share-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2020 2019 2020 2019 ​ ​ (in thousands) ​ Cost of goods sold ​ $ 50 ​ $ 139 ​ $ 201 ​ $ 426 ​ Research and development ​ ​ 31 ​ ​ 94 ​ ​ 191 ​ ​ 299 ​ Selling and marketing ​ ​ 47 ​ ​ 61 ​ ​ 200 ​ ​ 272 ​ General and administrative ​ ​ 404 ​ ​ 342 ​ ​ 1,653 ​ ​ 1,535 ​ ​ ​ $ 532 ​ $ 636 ​ $ 2,245 ​ $ 2,532 ​ ​
Schedule of weighted-average key assumptions used in determining fair value of options granted	​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, 2020 Estimated dividend yield ​ 0.00 % Expected stock price volatility ​ 73.71 % Weighted-average risk-free interest rate ​ 0.98 % Expected life of option in years ​ 6.25 ​ Weighted-average option fair value at grant ​ $ 0.73 ​ ​
Summary of outstanding and exercisable options	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ Number of ​ Average ​ Intrinsic ​ Options Exercise Price Value ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2019 4,430,966 ​ $ 5.551 ​ $ 53 Exercisable at December 31, 2019 1,518,972 ​ $ 8.735 ​ $ 31 Granted 1,966,250 ​ ​ 1.130 ​ ​ ​ Exercised ​ (4,582) ​ ​ 0.320 ​ ​ ​ Expired, forfeited or cancelled (891,095) ​ ​ 3.370 ​ ​ ​ Outstanding at September 30, 2020 5,501,539 ​ $ 4.330 ​ $ 1 Exercisable at September 30, 2020 2,369,564 ​ $ 6.840 ​ $ 1 ​
Summary of outstanding RSUs	​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Number of ​ Average ​ ​ RSUs ​ Fair Value ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2019 54,063 ​ $ 7.96 Granted 1,042,171 ​ ​ 1.31 Vested (19,687) ​ 7.76 Expired, forfeited or cancelled (10,000) ​ 1.49 Outstanding at September 30, 2020 1,066,547 ​ $ 1.53 ​

Organization and nature of op_2

Organization and nature of operations (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)product	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Organization and nature of operations
Number of approved product | product			3
Net loss	$ (4,911)	$ (2,051)	$ (18,369)	$ (13,414)	$ (16,900)	$ (51,700)
Accumulated deficit	$ (352,254)		(352,254)		$ (333,885)
Cash used in operating activities			$ (7,644)	$ (12,019)
Substantial doubt about the Company's ability to continue as a going concern within one year after the issuance of these financial statements			true

Summary of significant accoun_4

Summary of significant accounting policies (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)subsidiary	Sep. 30, 2019USD ($)subsidiary	Sep. 30, 2020USD ($)subsidiarysegment	Sep. 30, 2019USD ($)subsidiary	Dec. 31, 2019USD ($)
Summary of significant accounting policies
Number of operating segments | segment			1
Disaggregation of revenue
Revenues	$ 12,535,000	$ 17,540,000	$ 40,161,000	$ 47,817,000
Product returns
Return time period for expired product prior to expiry date			6 months
Return time period for expired product after expiry date			12 months
Income taxes
Deferred tax assets, net of valuation allowance	0		$ 0		$ 0
Other Current Assets
Disaggregation of revenue
Contract assets	10,000		10,000		27,000
Accrued Liabilities
Disaggregation of revenue
Contract liability	49,000		49,000		$ 0
Adzenys XR-ODT
Disaggregation of revenue
Revenues	6,177,000	8,794,000	16,547,000	22,692,000
Cotempla XR-ODT
Disaggregation of revenue
Revenues	5,596,000	7,227,000	19,134,000	19,513,000
Adzenys ER
Disaggregation of revenue
Revenues	102,000	232,000	337,000	563,000
Generic Tussionex
Disaggregation of revenue
Revenues	$ 660,000	$ 1,287,000	$ 4,143,000	$ 5,049,000
Minimum
Intangible assets
Intangible assets - Useful life			10 years
Maximum
Intangible assets
Intangible assets - Useful life			20 years
Wholly-owned subsidiaries
Summary of significant accounting policies
Number of wholly-owned subsidiaries | subsidiary	4	4	4	4

Summary of significant accoun_5

Summary of significant accounting policies - Liquidity (Details) $ in Millions	Oct. 02, 2019USD ($)
Revolving Credit Facility
Short-term Debt [Line Items]
Borrowing availability against eligible accounts receivable (as a percent)	85.00%
Revolving Credit Facility | Loan Agreement
Short-term Debt [Line Items]
Maximum borrowing capacity as per agreement	$ 25
Short Term Swingline Loan | Loan Agreement
Short-term Debt [Line Items]
Maximum borrowing capacity as per agreement	$ 2.5

Net loss per share (Details)

Net loss per share (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Warrants | Series C Redeemable Convertible Preferred Stock Warrants (as converted)
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share		70,833
Stock options outstanding
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share	5,501,539	4,547,797
RSUs
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share	1,066,547	55,626

Fair value of financial instr_3

Fair value of financial instruments - Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Hierarchy for financial instruments measured at fair value on a recurring basis
Short-term investments		$ 8,064
Derivative liability (see Note 7)	$ 1,456	1,135
Recurring basis | Fair Value
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	12,744	16,830
Short-term investments		8,064
Total financial assets	12,744	24,894
Earnout liability	30	30
Derivative liability (see Note 7)	1,456	1,135
Total financial liabilities	1,486	1,165
Recurring basis | Fair Value | Level 1
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	12,744	12,338
Short-term investments		1,261
Total financial assets	12,744	13,599
Recurring basis | Fair Value | Level 2
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents		4,492
Short-term investments		6,803
Total financial assets		11,295
Recurring basis | Fair Value | Level 3
Hierarchy for financial instruments measured at fair value on a recurring basis
Earnout liability	30	30
Derivative liability (see Note 7)	1,456	1,135
Total financial liabilities	$ 1,486	$ 1,165

Fair value of financial instr_4

Fair value of financial instruments - Cash and cash equivalents and short-term investments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Cash and cash equivalents and short-term investments
Amortized Cost	$ 12,744	$ 24,893
Unrealized Gain/(Loss)		1
Market Value	12,744	24,894
Bank deposits and money market funds
Cash and cash equivalents and short-term investments
Amortized Cost	12,744	13,599
Market Value	$ 12,744	13,599
Financial and corporate debt securities
Cash and cash equivalents and short-term investments
Amortized Cost		11,294
Unrealized Gain/(Loss)		1
Market Value		$ 11,295

Fair value of financial instr_5

Fair value of financial instruments - Derivative liability (Details) - Recurring basis - Level 3 $ in Thousands	Sep. 30, 2020USD ($)itemY	Dec. 31, 2019USD ($)Yitem
Encina
Methodologies and significant inputs used in the determination of the fair value
Valuation Method	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Fair value of liability at valuation date | $	$ 36	$ 66
Encina | Time period from valuation until end of earnout (in years)
Methodologies and significant inputs used in the determination of the fair value
Derivative Liability | Y	1.6	2.4
Encina | Cumulative probability of a change in control prepayment implied by model (in percent)
Methodologies and significant inputs used in the determination of the fair value
Derivative Liability	18.3	23.9
Encina | Discount rate (in percent)
Methodologies and significant inputs used in the determination of the fair value
Derivative Liability	6	6
Deerfield
Methodologies and significant inputs used in the determination of the fair value
Valuation Method	us-gaap:ValuationTechniqueOptionPricingModelMember	us-gaap:ValuationTechniqueOptionPricingModelMember
Fair value of liability at valuation date | $	$ 1,420	$ 1,069
Deerfield | Time period from valuation until end of earnout (in years)
Methodologies and significant inputs used in the determination of the fair value
Derivative Liability | Y	1.6	2.4
Deerfield | Cumulative probability of a change in control prepayment implied by model (in percent)
Methodologies and significant inputs used in the determination of the fair value
Derivative Liability	15	23
Deerfield | Cumulative probability of other accelerated prepayments implied by model (in percent)
Methodologies and significant inputs used in the determination of the fair value
Derivative Liability	21	10
Deerfield | Discount rate (in percent)
Methodologies and significant inputs used in the determination of the fair value
Derivative Liability	35.55	25.34

Fair value of financial instr_6

Fair value of financial instruments - Changes in Level 3 (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Changes in Level 3 liabilities measured at fair value
Balance at beginning of period	$ 1,165
Change in fair value	321
Balance at end of period	$ 1,486

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories
Raw materials	$ 2,790	$ 3,679
Work in process	1,943	935
Finished goods	4,650	7,082
Inventory at cost	9,383	11,696
Inventory reserve	(947)	(686)
Inventories net	$ 8,436	$ 11,010

Accrued expenses (Details)

Accrued expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued expenses
Accrued savings offers	$ 12,608	$ 16,790
Accrued rebates	6,002	6,109
Accrued customer returns	3,787	5,122
Accrued wholesaler fees	2,513	5,014
Accrued payroll and benefits	4,184	4,485
Other accrued expenses	2,139	2,668
Total accrued expenses	$ 31,233	$ 40,188

Debt - Short-term line of credi

Debt - Short-term line of credit (Details) - USD ($)	Oct. 02, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Long-term debt
Derivative liability		$ 1,456,000		$ 1,456,000		$ 1,135,000
Interest expense		2,005,000	$ 1,869,000	6,131,000	$ 5,971,000
Senior Secured Credit Facility
Long-term debt
Interest expense		1,700,000	$ 1,800,000	$ 5,300,000	$ 5,800,000
Revolving Credit Facility
Long-term debt
Borrowing availability against eligible accounts receivable (as a percent)	85.00%
Debt notice period	5 days
Covenant compliance				September 30, 2020, the Company was in compliance with the covenants under the Loan Agreement.
Loan Agreement | Senior Secured Credit Facility
Long-term debt
Derivative liability	$ 100,000	36,000		$ 36,000
Loan Agreement | Revolving Credit Facility
Long-term debt
Maximum borrowing capacity as per agreement	$ 25,000,000
Unused line fee (as a percent)	0.50%
Line of credit, maturity date	May 11, 2022
Interest expense		200,000		700,000
Financing costs	$ 1,300,000
Debt instrument interest percentage	6.56%
Deferred financing cost amortization		200,000		400,000
Short-term line of credit outstanding		7,300,000		7,300,000
Line of Credit Facility Remaining Borrowing Capacity		5,500,000		5,500,000
Loan Agreement | Revolving Credit Facility | Other Assets
Long-term debt
Unamortized costs		$ 900,000		$ 900,000
Loan Agreement | Short Term Swingline Loan
Long-term debt
Maximum borrowing capacity as per agreement	$ 2,500,000
Prepayment occurs on or before October 2, 2020 | Revolving Credit Facility
Long-term debt
Prepayment fee	2.00%
Prepayment occurs after October 2, 2020 but before October 2, 2021 | Revolving Credit Facility
Long-term debt
Prepayment fee	1.00%
Prepayment occurs after October 2, 2021 but before May 11, 2022 | Revolving Credit Facility
Long-term debt
Prepayment fee	0.50%
One Month Libor Rate | Revolving Credit Facility
Long-term debt
Interest rate	4.50%

Debt - Summary (Details)

Debt - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Long-term debt
Long-term debt	$ 33,192	$ 44,935
Less current portion	(19,472)	(15,836)
Long-term debt	13,720	29,099
Debt instrument, unamortized discount
Unamortized discount on debt	2,538
Debt issued to entities affiliated with Deerfield | Senior Secured Credit Facility
Long-term debt
Long-term debt	32,837	43,768
Debt instrument, unamortized discount
Unamortized discount on debt	2,538	1,982
Financial lease obligations, maturing through May 2024 | Senior Secured Credit Facility
Long-term debt
Long-term debt	$ 355	$ 1,167

Debt - Senior Secured Credit fa

Debt - Senior Secured Credit facility (Details)

May 11, 2020USD ($)

May 06, 2020USD ($)$ / shares

Nov. 08, 2018$ / sharesshares

Nov. 05, 2018USD ($)EquityInstruments$ / shares

Oct. 26, 2017USD ($)$ / sharesshares

Jun. 30, 2017USD ($)$ / sharesshares

Jun. 01, 2017USD ($)

May 11, 2016USD ($)installmentitem

May 31, 2019USD ($)

Feb. 28, 2017$ / sharesshares

Sep. 30, 2020USD ($)

Sep. 30, 2019USD ($)

Sep. 30, 2020USD ($)

Sep. 30, 2019USD ($)

Dec. 31, 2019USD ($)

Long-term debt

Derivative liability

$ 1,456,000

$ 1,456,000

$ 1,135,000

Unamortized discount on debt

2,538,000

2,538,000

Incremental fair value of conversion feature recorded to debt discount

1,703,000

Additional exit fee recorded to debt discount

250,000

Interest Expense

2,005,000

$ 1,869,000

$ 6,131,000

$ 5,971,000

Debt issued to entities affiliated with Deerfield

Long-term debt

Debt instrument covenant compliance

As of September 30, 2020, the Company was in compliance with the covenants under the Facility.

Senior Secured Convertible Note

Long-term debt

Term of debt (in years)

1 year

Amount of debt converted into stock

$ 6,600,000

Beneficial conversion feature recorded to debt discount

600,000

Recognition of fair value conversion feature on convertible notes

600,000

Underwritten Public Offering | Common Stock

Long-term debt

Issuance of common stock, net of issuance costs (in shares) | shares

19,999,999

4,800,000

5,750,000

Public offering price (in dollars per share) | $ / shares

$ 2.30

$ 6.25

$ 5

Gross proceeds from issuance of stock

$ 30,000,000

Minimum | Common Stock

Long-term debt

Gross proceeds from issuance of stock

$ 4,500,000

Minimum | Underwritten Public Offering | Common Stock

Long-term debt

Gross proceeds from issuance of stock

30,000,000

Senior Secured Credit Facility

Long-term debt

Interest Expense

1,700,000

1,800,000

$ 5,300,000

5,800,000

Senior Secured Credit Facility | Registration Agreement

Long-term debt

Maximum reimbursable legal fees

25,000

Liability recorded for expected unmet agreement obligations

$ 0

Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield

Long-term debt

Face amount of debt issued

$ 60,000,000

Number of equal annual installments | installment

3

Interest rate (as a percent)

12.95%

Deferred interest payments

$ 6,600,000

Number of first interest payments for which the reporting entity has the option to defer | item

4

Debt yield enhancement fee

$ 1,400,000

Term of debt (in years)

6 years

Minimum cash on deposit to maintain under debt arrangement

$ 5,000,000

Effective interest rate during debt term (as a percent)

21.30%

15.03%

Debt discount amortization

600,000

$ 300,000

1,400,000

$ 1,000,000

Unamortized discount on debt

2,538,000

2,538,000

$ 1,982,000

Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield | Company's Attorneys

Long-term debt

Debt legal costs

200,000

Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield | On Behalf Of Deerfield's Attorneys

Long-term debt

Debt legal costs

$ 100,000

Senior Secured Credit Facility | Deerfield Private Design Fund III, LP

Long-term debt

Debt borrowing structure (as a percent)

66.67%

Senior Secured Credit Facility | Deerfield Special Situations Fund, LP

Long-term debt

Debt borrowing structure (as a percent)

33.33%

Senior Secured Credit Facility | Senior Secured Convertible Note

Long-term debt

Derivative liability

$ 2,100,000

$ 1,400,000

$ 1,400,000

Minimum premiums as percent required to treat as derivative

10.00%

Payment of debt modification fee

$ 40,000

Maximum time period to register shares per agreement

30 days

Maximum time period for registration to become effective per agreement

75 days

Second Amendment Facility Due in May 2019 | Debt issued to entities affiliated with Deerfield

Long-term debt

Remaining principal

$ 52,500,000

Prepayment of premium amount (as a percent)

6.25%

Non-refundable exit fee

$ 750,239

Principal repayment of senior debt

$ 7,500,000

Second Amendment Facility Due in May 2019 | Common Stock | Debt issued to entities affiliated with Deerfield

Long-term debt

Share price, percentage of Last Bid Price

93.00%

Principal payment (in dollars per shares) | $ / shares

$ 3

Ownership Cap percentage

4.985%

Number of trading days used to determine conversion stock price

10 days

Second Amendment Facility Due in May 2019 | 2019 | Debt issued to entities affiliated with Deerfield

Long-term debt

Remaining principal

$ 7,500,000

Second Amendment Facility Due in May 2019 | 2020 | Debt issued to entities affiliated with Deerfield

Long-term debt

Remaining principal

15,000,000

Second Amendment Facility Due in May 2019 | 2021 | Debt issued to entities affiliated with Deerfield

Long-term debt

Remaining principal

15,000,000

Second Amendment Facility Due in May 2019 | 2022 | Debt issued to entities affiliated with Deerfield

Long-term debt

Remaining principal

15,000,000

Second Amendment Facility Due in May 2019 | Underwritten Public Offering | Debt issued to entities affiliated with Deerfield

Long-term debt

Remaining principal

$ 7,500,000

Second Amendment Facility Due in May 2019 | Maximum | Common Stock | Debt issued to entities affiliated with Deerfield

Long-term debt

Number of shares which may be issued for conversion of convertible notes | EquityInstruments

2,135,625

Second Amendment Facility Due in May 2020 | Debt issued to entities affiliated with Deerfield

Long-term debt

Remaining principal

$ 15,000,000

Second Amendment Facility Due in May 2020 | Common Stock | Debt issued to entities affiliated with Deerfield

Long-term debt

Ownership Cap percentage

4.985%

Conversion price | $ / shares

$ 10

Conversion price, expressed as a percentage of stock price

95.00%

Number of trading days used to determine conversion stock price

3 days

Second Amendment Facility Due in May 2020 | Minimum | Common Stock | Debt issued to entities affiliated with Deerfield

Long-term debt

Conversion price, expressed as a percentage of stock price

83.00%

Second Amendment Facility Due in May 2020 | Maximum | Common Stock | Debt issued to entities affiliated with Deerfield

Long-term debt

Percentage of principal amount available for conversion

50.00%

Conversion price, expressed as a percentage of stock price

95.00%

Number of shares which may be issued for conversion of convertible notes | EquityInstruments

3,796,668

Fifth Amendment To Credit Facility | Debt issued to entities affiliated with Deerfield

Long-term debt

Remaining principal

$ 35,000,000

Non-refundable exit fee

250,000

Cumulative non-refundable exit fee

1,000,239

Deferred Principal

5,000,000

Amount of debt converted into stock

$ 10,000,000

Conversion price | $ / shares

$ 1.50

Monthly installment

$ 625,000

Number of trading days used to determine conversion stock price

10 days

Number of monthly installments

8 months

Fifth Amendment To Credit Facility | Debt issued to entities affiliated with Deerfield | Debt Instrument Due By April 2021

Long-term debt

Remaining principal

$ 5,000,000

Fifth Amendment To Credit Facility | Debt issued to entities affiliated with Deerfield | Debt Instrument Due By May 11, 2021

Long-term debt

Remaining principal

15,000,000

Fifth Amendment To Credit Facility | Debt issued to entities affiliated with Deerfield | Debt Instrument Due By May 11, 2022

Long-term debt

Remaining principal

15,000,000

Fifth Amendment To Credit Facility | Senior Secured Convertible Note

Long-term debt

Amount of debt converted into stock

$ 10,000,000

Conversion price | $ / shares

$ 1.50

Derivative liability

$ 0

Payment of debt modification fee

36,000

Incremental fair value of conversion feature recorded to debt discount

1,700,000

Recognition of fair value conversion feature on convertible notes

1,700,000

Additional exit fee recorded to debt discount

$ 250,000

Fifth Amendment To Credit Facility | 2020 | Debt issued to entities affiliated with Deerfield

Long-term debt

Principal repayment of senior debt

$ 10,000,000

Fifth Amendment To Credit Facility | Minimum | Debt issued to entities affiliated with Deerfield

Long-term debt

Share Price | $ / shares

$ 1.50

Conversion Of Convertible Notes | Senior Secured Credit Facility

Long-term debt

Amount of debt converted into stock

$ 6,600,000

Number of shares issued upon conversion of debt | shares

929,967

Conversion price | $ / shares

$ 7.08

Conversion price, expressed as a percentage of stock price

95.00%

Number of trading days used to determine conversion stock price

3 days

Debt - Financing and Capital Le

Debt - Financing and Capital Lease Obligations (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2017
Long-term debt
Interest on lease liabilities	$ 6,000	$ 51,000	$ 51,000	$ 173,000
Essex sale-leaseback transactions | Transaction One
Long-term debt
Interest rate on finance lease						14.90%
Financial lease obligations, maturing through May 2024
Long-term debt
Interest on lease liabilities	$ 6,000	$ 100,000	$ 100,000	$ 200,000
Financial lease obligations, maturing through May 2024 | Equipment lease
Long-term debt
Newly acquired asset under equipment lease					$ 400,000
Interest rate on finance lease					6.50%
Financial lease obligations, maturing through May 2024 | Essex sale-leaseback transactions | Transaction Two
Long-term debt
Newly acquired assets under sale-leaseback transaction						$ 3,200,000

Debt - Future Principal Payment

Debt - Future Principal Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Maturities Of Longterm Debt And Finance Lease Obligations Abstract
2021	$ 19,472
2022	16,104
2023	92
2024	62
Long-term debt and capital lease obligations, including current maturities	35,730
Less unamortized debt discount	(2,538)
Less current portion	(19,472)	$ (15,836)
Long-term debt	$ 13,720	$ 29,099

Leases (Details)

Leases (Details)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2015
Leases
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Term of operating lease		60 months
Minimum
Leases
Term of operating lease	1 year
Maximum
Leases
Term of operating lease	10 years

Leases - Lease expense (Details

Leases - Lease expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Lease cost:
Operating lease cost	$ 268	$ 269	$ 806	$ 802
Short-term lease cost	6	6	21	30
Variable lease cost	98	53	204	165
Finance lease cost:
Amortization of leased assets	18	134	269	386
Interest on lease liabilities	6	51	51	173
Total net lease cost	$ 396	$ 513	$ 1,351	$ 1,556

Leases - Consolidated balance s

Leases - Consolidated balance sheet information (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance sheet information related to leases
Operating lease assets	$ 2,655	$ 3,044
Operating lease right-of-use assets (Classification)	Us-gaap:OperatingLeaseRightOfUseAsset	Us-gaap:OperatingLeaseRightOfUseAsset
Finance lease assets	$ 384	$ 2,580
Finance Lease, Assets (Balance Sheet Location)	us-gaap:PropertyPlantAndEquipmentNet	us-gaap:PropertyPlantAndEquipmentNet
Total leased assets	$ 3,039	$ 5,624
Operating Lease, Current Liabilities	$ 693	$ 681
Operating Lease, Current Liabilities (Balance Sheet Location)	Us-gaap:OperatingLeaseLiabilityCurrent	Us-gaap:OperatingLeaseLiabilityCurrent
Finance Lease, Current Liabilities	$ 97	$ 836
Finance Lease, Current Liabilities (Balance Sheet Location)	us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent	us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent
Operating Lease, Non-current Liabilities	$ 2,741	$ 3,254
Operating Lease, Non-current Liabilities (Balance Sheet Location)	Us-gaap:OperatingLeaseLiabilityNoncurrent	Us-gaap:OperatingLeaseLiabilityNoncurrent
Finance Lease, Non-current Liabilities	$ 258	$ 331
Finance Lease, Non-current Liabilities (Balance Sheet Location)	us-gaap:LongTermDebtAndCapitalLeaseObligations	us-gaap:LongTermDebtAndCapitalLeaseObligations
Total lease liabilities	$ 3,789	$ 5,102

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate Information (Details)	Sep. 30, 2020	Dec. 31, 2019
Leases
Operating Lease, Weighted average remaining lease term (in years)	4 years 1 month 6 days	4 years 8 months 12 days
Finance Lease, Weighted average remaining lease term (in years)	3 years 4 months 24 days	1 year 9 months 18 days
Operating Lease, Weighted average discount rate (as a percent)	15.00%	15.00%
Finance Lease, Weighted average discount rate (as a percent)	6.40%	11.80%

Leases - Supplemental cash flow

Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Leases
Operating cash flows from operating leases	$ 919	$ 879
Operating cash flows from finance leases	52	173
Financing cash flows from finance leases	$ 812	801
ROU assets obtained in exchange for new finance lease liabilities		406
ROU assets obtained in exchange for new operating lease liabilities		$ 135

Leases - Future minimum rental

Leases - Future minimum rental payments (Details) $ in Thousands	Sep. 30, 2020USD ($)
Operating Leases
2020 - remaining	$ 307
2021	1,118
2022	1,060
2023	1,055
2024	1,106
Total lease payments	4,646
Less amount representing interest	(1,212)
Total lease obligations	3,434
Finance Leases
2020 - remaining	30
2021	117
2022	115
2023	95
2024	40
Total lease payments	397
Less amount representing interest	(42)
Total lease obligations	$ 355

Common stock - Shelf Registrati

Common stock - Shelf Registration Statement and Public Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 08, 2018	Jul. 26, 2017	Jun. 30, 2017	Feb. 28, 2017	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017	Aug. 01, 2016
Public offerings and related transactions
Net proceeds from issuance of stock					$ 2	$ 11
Common Stock | Underwritten Public Offering
Public offerings and related transactions
Issuance of common stock, net of issuance costs (in shares)	19,999,999		4,800,000	5,750,000
Public offering price (in dollars per share)	$ 2.30		$ 6.25	$ 5
Gross proceeds from issuance of stock			$ 30,000
Payments of stock issuance costs			$ 200
Term of option to purchase share			30 days
Net proceeds from issuance of stock	$ 43,400	$ 34,300		$ 26,700
Shares offered to underwriters under option granted (in shares)			720,000
Common Stock | Over-allotment option
Public offerings and related transactions
Issuance of common stock, net of issuance costs (in shares)	2,608,695			750,000
Common Stock | Sales Agreement
Public offerings and related transactions
Issuance of common stock, net of issuance costs (in shares)							651,525	749,639
Public offering price (in dollars per share)							$ 6.25	$ 5.01
Payments of stock issuance costs							$ 200	$ 100
Net proceeds from issuance of stock							$ 3,900	$ 3,600
Maximum
Public offerings and related transactions
Authorized amount to raise capital as per shelf registration statement									$ 125,000
Cowen and Company LLC | Maximum
Public offerings and related transactions
Authorized amount for issuance of common stock as per shelf registration statement									$ 40,000

Common stock - Offer under sale

Common stock - Offer under sales agreement (Details) - USD ($)	Nov. 08, 2018	Oct. 26, 2017	Jul. 26, 2017	Jun. 30, 2017	Feb. 28, 2017	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Mar. 18, 2019	Nov. 05, 2018
Shelf registration statement
Net proceeds from issuance of stock							$ 2,000	$ 11,000
Stock Issued During Period Shares Conversion of Stock Options							4,582
Cantor Sales Agreement
Shelf registration statement
Net proceeds from issuance of stock							$ 0
Cantor Sales Agreement | Maximum | Cantor Fitzgerald & Co
Shelf registration statement
Authorized amount for issuance of common stock as per second shelf registration statement												$ 30,000,000
Value of common stock which remains available to be sold under the sales agreement							$ 30,000,000
Common Stock
Shelf registration statement
Issuance of common stock upon RSU conversion							17,841	18,765	20,328
Shares issued upon the exercise of outstanding stock options						833	4,582	36,040	36,040
Common Stock | Sales Agreement
Shelf registration statement
Maximum authorized amount in continuous offering													$ 7,825,113
Sales Agreement | Common Stock
Shelf registration statement
Issuance of common stock, net of issuance costs (in shares)										651,525	749,639
Sales agreement offering price (in dollars per share)										$ 6.25	$ 5.01
Gross proceeds from issuance of stock										$ 4,100,000	$ 3,700,000
Net proceeds from issuance of stock										3,900,000	3,600,000
Payments of stock issuance costs										$ 200,000	$ 100,000
Underwritten Public Offering | Common Stock
Shelf registration statement
Issuance of common stock, net of issuance costs (in shares)	19,999,999			4,800,000	5,750,000
Sales agreement offering price (in dollars per share)	$ 2.30			$ 6.25	$ 5
Net proceeds from issuance of stock	$ 43,400,000		$ 34,300,000		$ 26,700,000
Payments of stock issuance costs				$ 200,000
Over-allotment option | Common Stock
Shelf registration statement
Issuance of common stock, net of issuance costs (in shares)	2,608,695				750,000
2019 Shelf
Shelf registration statement
Value of securities which remain available to be sold pursuant to the shelf							$ 100,000,000
2019 Shelf | Maximum
Shelf registration statement
Authorized amount to raise capital as per second shelf registration statement												$ 100,000,000
Conversion Of Convertible Notes | Senior Secured Convertible Notes
Shelf registration statement
Amount of debt converted into stock		$ 6,600,000
Conversion price		$ 7.08
Conversion price, expressed as a percentage of stock price		95.00%
Number of trading days used to determine conversion stock price		3 days
Number of shares of stock into which debt was converted		929,967

Share-based Compensation - Plan

Share-based Compensation - Plan Information (Details) - shares	Jan. 01, 2020	Jan. 01, 2019	Jul. 30, 2018	Jun. 27, 2018	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2020	Jan. 01, 2016	Jul. 31, 2015	Nov. 30, 2009
Stock options outstanding | Performance based
Stock options, restricted stock and performance stock options
Vesting period					3 years
Stock options
Stock options, restricted stock and performance stock options
Options granted (in shares)					1,966,250	2,119,708
Expired, forfeited or cancelled (in shares)					(891,095)
Stock options | Minimum
Stock options, restricted stock and performance stock options
Vesting period					2 years
Stock options | Maximum
Stock options, restricted stock and performance stock options
Vesting period					4 years
Neos Therapeutics, Inc. 2009 Equity Plan
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan										1,375,037
Neos Therapeutics, Inc. 2009 Equity Plan | Maximum
Stock options, restricted stock and performance stock options
Vesting period					48 months
Neos Therapeutics, Inc. 2009 Equity Plan | Stock options
Stock options, restricted stock and performance stock options
Expiration period					10 years
Expiration period of unexercised vested award after termination of employment					90 days
Neos Therapeutics, Inc. 2009 Equity Plan | Restricted stock | Minimum
Stock options, restricted stock and performance stock options
Vesting period					1 month
Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan									767,330
Increase to the number of shares reserved and available for issuance as a percentage of outstanding common stock (as a percent)								5.00%
Increase in number of shares reserved and available for issuance	2,486,633	2,483,815
Stock option exercise price, minimum expressed as percentage of fair market value on grant date					100.00%
Shares related to forfeited prior plan options transferred into shares available under current plan					24,578		458,442
Shares reserved and available for issuance					3,536,906		3,536,906
Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan | Stock options
Stock options, restricted stock and performance stock options
Expiration period					10 years
Expiration period of unexercised vested award after termination of employment					90 days
Options granted (in shares)					1,966,250
Neos Therapeutics, Inc 2018 Inducement Plan
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan					800,000		800,000
Stock option exercise price, minimum expressed as percentage of fair market value on grant date					100.00%
Shares reserved and available for issuance					100,000		100,000
Neos Therapeutics, Inc 2018 Inducement Plan | Stock options
Stock options, restricted stock and performance stock options
Expiration period					10 years
Expired, forfeited or cancelled (in shares)					(100,000)
Neos Therapeutics, Inc 2018 Inducement Plan | Stock options | Chief Executive Officer
Stock options, restricted stock and performance stock options
Vesting period				4 years
Vested shares of the common stock subject to the option vests in equal installments over four years (in shares)				600,000
Options granted (in shares)			200,000

Share-based Compensation - Expe

Share-based Compensation - Expense Allocation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Expense
Total compensation cost	$ 532	$ 636	$ 2,245	$ 2,532
Stock options
Share-based Compensation Expense
Total compensation cost	300	600	1,800	2,400
RSUs
Share-based Compensation Expense
Total compensation cost	200	35	400	100
Cost of goods sold.
Share-based Compensation Expense
Total compensation cost	50	139	201	426
Research and development
Share-based Compensation Expense
Total compensation cost	31	94	191	299
Selling and marketing
Share-based Compensation Expense
Total compensation cost	47	61	200	272
General and administrative
Share-based Compensation Expense
Total compensation cost	$ 404	$ 342	$ 1,653	$ 1,535

Share-based Compensation - Ex_2

Share-based Compensation - Expense Other (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Expense
Total compensation cost	$ 532	$ 636	$ 2,245	$ 2,532
Unrecognized compensation cost	3,500		3,500
Stock options
Share-based Compensation Expense
Total compensation cost	300	600	$ 1,800	2,400
Compensation cost not yet recognized, period for recognition			2 years 3 months 18 days
RSUs
Share-based Compensation Expense
Total compensation cost	200	$ 35	$ 400	$ 100
Compensation cost not yet recognized, period for recognition			1 year 3 months 18 days
Restricted stock
Share-based Compensation Expense
Unrecognized compensation cost	$ 0		$ 0

Share-based Compensation - Assu

Share-based Compensation - Assumptions Used in Determining Fair Value of Options (Details) - Stock options - $ / shares	Jul. 30, 2018	Sep. 30, 2020	Dec. 31, 2019
Stock options, restricted stock and performance stock options
Options granted (in shares)		1,966,250	2,119,708
Granted (in dollars per share)		$ 1.130
Weighted average key assumptions used in determining the fair value of options granted
Estimated dividend yield (as a percent)		0.00%
Expected stock price volatility (as a percent)		73.71%
Weighted-average risk-free interest rate (as a percent)		0.98%
Expected life of option in years		6 years 3 months
Weighted-average option fair value at grant (in dollars per share)		$ 0.73
Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan
Stock options, restricted stock and performance stock options
Options granted (in shares)		1,966,250
Neos Therapeutics, Inc 2018 Inducement Plan | Chief Executive Officer
Stock options, restricted stock and performance stock options
Options granted (in shares)	200,000

Share-based Compensation - Opti

Share-based Compensation - Options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Summary of number of outstanding and exercisable options and the activity
Outstanding at beginning of year (in shares)	4,430,966
Exercisable at beginning of year (in shares)	1,518,972
Granted (in shares)	1,966,250	2,119,708
Exercised (in shares)	(4,582)
Expired, forfeited or cancelled (in shares)	(891,095)
Outstanding at end of period (in shares)	5,501,539	4,430,966
Exercisable at end of period (in shares)	2,369,564	1,518,972
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Outstanding at beginning of year (in dollars per share)	$ 5.551
Exercisable at beginning of year (in dollars per share)	8.735
Granted (in dollars per share)	1.130
Exercised (in dollars per share)	0.320
Expired, forfeited or cancelled (in dollars per share)	3.370
Outstanding at end of period (in dollars per share)	4.330	$ 5.551
Exercisable at end of period (in dollars per share)	$ 6.840	$ 8.735
Summary of intrinsic value of outstanding and exercisable options and other information
Intrinsic value, outstanding options	$ 1	$ 53
Intrinsic value, exercisable options	$ 1	$ 31
Weighted average remaining contractual life of options outstanding	8 years	8 years 2 months 12 days
Weighted-average remaining contractual life of options exercisable	7 years	6 years 10 months 24 days
Minimum
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Granted (in dollars per share)	$ 0.67	$ 1.36
Maximum
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Granted (in dollars per share)	$ 1.62	$ 3.14
Neos Therapeutics, Inc 2018 Inducement Plan
Summary of number of outstanding and exercisable options and the activity
Expired, forfeited or cancelled (in shares)	(100,000)

Share-based Compensation - Rest

Share-based Compensation - Restricted Stock Units (Details) - shares	Jun. 10, 2020	Mar. 02, 2020	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vested			19,687
Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	164,171
Vesting period	1 year
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	136,250	741,750		1,042,171
Vesting period	2 years	2 years
Shares vested				19,687	21,251
Shares converted				17,841	20,328
Shares withheld for tax obligation				1,846	923

Share-based Compensation - Summ

Share-based Compensation - Summary of Outstanding RSUs (Details) - $ / shares	Jun. 10, 2020	Mar. 02, 2020	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Summary of outstanding equity instruments and activity
Vested (in equity instruments)			(19,687)
RSUs
Summary of outstanding equity instruments and activity
Outstanding at beginning of year (in equity instruments)				54,063
Granted (in equity instruments)	136,250	741,750		1,042,171
Vested (in equity instruments)				(19,687)	(21,251)
Expired, forfeited or cancelled (in equity instruments)				(10,000)
Outstanding at end of period (in equity instruments)			1,066,547	1,066,547	54,063
Summary of weighted-average fair value
Outstanding at beginning of year (in dollars per equity instrument)				$ 7.96
Granted (in dollars per equity instrument)				1.31
Vested (in dollars per equity instrument)				7.76
Expired, forfeited or cancelled (in dollars per equity instrument)				1.49
Outstanding at end of period (in dollars per equity instrument)			$ 1.53	$ 1.53	$ 7.96

Share-based Compensation - Re_2

Share-based Compensation - Restricted Stock (Details) - Restricted stock - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Stock options, restricted stock and performance stock options
Shares issued	0	0
Vested restricted stock awards settled (in shares)	0
Unvested restricted stock outstanding (in shares)	0	0
Shares granted	0
Shares forfeited	0

Treasury stock (Details)

Treasury stock (Details) - shares	Oct. 16, 2017	Oct. 17, 2016	Oct. 16, 2015	Sep. 30, 2020	Dec. 31, 2019
Treasury stock
Shares of treasury stock held				33,801	33,801
Restricted stock
Treasury stock
Shares surrendered by holder to cover taxes associated with vesting	14,895	9,709	9,197

Commitments and contingencies -

Commitments and contingencies - Registration Payment Arrangement (Details)	Nov. 05, 2018USD ($)EquityInstruments
Second Amendment Facility Due in May 2020 | Debt issued to entities affiliated with Deerfield | Common Stock | Maximum
Registration Payment Arrangement
Number of shares which may be issued for conversion of convertible notes | EquityInstruments	3,796,668
Registration Agreement | Senior Secured Convertible Notes
Registration Payment Arrangement
Time period after date of any Registration Failure during which additional damages are required to be paid	30 days
Additional damages payable upon any Registration Failure, as percent of original principal amount of debt	2.00%
Maximum reimbursable legal fees | $	$ 25,000

Commitments and contingencies_2

Commitments and contingencies - Operating Lease, Cash Incentive Bonus Plan, Inducement Option Grant (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2015
Commitments
Term of operating lease					60 months
Rent expense, share of operating expenses	$ 98	$ 53	$ 204	$ 165
Rent expense, excluding share of operating expenses	300	300	800	800
Bonus Expenses	$ 300	$ 400	$ 1,200	$ 1,400

License agreements (Details)

License agreements (Details) - USD ($) $ in Thousands	Oct. 23, 2018	Oct. 31, 2017	Apr. 30, 2020	Feb. 29, 2016	Sep. 30, 2020
Shire LLC | NDA 204326 | Maximum
License agreements
Payment of non-refundable license fee				$ 1,000
Shire LLC | NDA 204325 | Maximum
License agreements
Payment of non-refundable license fee		$ 1,000
NeuRx License
License agreements
Upfront payment to be paid	$ 200
Licensed Patent Milestone
License agreements
Milestone payment					$ 200
Pilot Pk Study Milestone
License agreements
Milestone payment			$ 300

Related party transactions (Det

Related party transactions (Details) $ / shares in Units, $ in Thousands	Nov. 08, 2018USD ($)$ / sharesshares	Nov. 05, 2018USD ($)EquityInstruments$ / shares	Oct. 26, 2017USD ($)$ / sharesshares	Jul. 26, 2017USD ($)	Jun. 30, 2017USD ($)$ / sharesshares	Jun. 01, 2017USD ($)	Feb. 28, 2017USD ($)$ / sharesshares	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
Stock transaction disclosures
Net proceeds from issuance of stock								$ 2	$ 11
Common Stock | Minimum
Stock transaction disclosures
Proceeds from issuance of common stock		$ 4,500
Underwritten Public Offering | Common Stock
Stock transaction disclosures
Issuance of common stock, net of issuance costs (in shares) | shares	19,999,999				4,800,000		5,750,000
Public offering price (in dollars per share) | $ / shares	$ 2.30				$ 6.25		$ 5
Proceeds from issuance of common stock					$ 30,000
Payments of stock issuance costs					$ 200
Term of option to purchase share					30 days
Shares offered to underwriters under option granted (in shares) | shares					720,000
Net proceeds from issuance of stock	$ 43,400			$ 34,300			$ 26,700
Underwritten Public Offering | Common Stock | Minimum
Stock transaction disclosures
Proceeds from issuance of common stock		$ 30,000
Over-allotment option | Common Stock
Stock transaction disclosures
Issuance of common stock, net of issuance costs (in shares) | shares	2,608,695						750,000
Senior Secured Credit Facility | Conversion Of Convertible Notes
Stock transaction disclosures
Number of shares issued upon conversion of debt | shares			929,967
Amount of debt converted into stock			$ 6,600
Conversion price | $ / shares			$ 7.08
Conversion price, expressed as a percentage of stock price			95.00%
Number of trading days used to determine conversion stock price			3 days
Debt issued to entities affiliated with Deerfield | Second Amendment Facility Due in May 2019 | Common Stock
Stock transaction disclosures
Number of trading days used to determine conversion stock price		10 days
Debt issued to entities affiliated with Deerfield | Second Amendment Facility Due in May 2019 | Common Stock | Maximum
Stock transaction disclosures
Number of shares which may be issued for conversion of convertible notes | EquityInstruments		2,135,625
Debt issued to entities affiliated with Deerfield | Second Amendment Facility Due in May 2020 | Common Stock
Stock transaction disclosures
Conversion price | $ / shares		$ 10
Conversion price, expressed as a percentage of stock price		95.00%
Number of trading days used to determine conversion stock price		3 days
Debt issued to entities affiliated with Deerfield | Second Amendment Facility Due in May 2020 | Common Stock | Maximum
Stock transaction disclosures
Number of shares which may be issued for conversion of convertible notes | EquityInstruments		3,796,668
Conversion price, expressed as a percentage of stock price		95.00%
Debt issued to entities affiliated with Deerfield | Second Amendment Facility Due in May 2020 | Common Stock | Minimum
Stock transaction disclosures
Conversion price, expressed as a percentage of stock price		83.00%
Senior Secured Convertible Note
Stock transaction disclosures
Amount of debt converted into stock						$ 6,600
Investor | Debt issued to entities affiliated with Deerfield | Senior Secured Credit Facility
Related party transactions
Face amount of debt at time of related party stock purchase							$ 60,000