Timber Pharmaceuticals (TMBR) 10-Q 12 Dec 17 2018 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Oct. 31, 2017	Nov. 30, 2017
DOCUMENT AND ENTITY INFORMATION
Entity Registrant Name	BioPharmX Corp
Entity Central Index Key	1,504,167
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2017
Current Fiscal Year End Date	--01-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		127,508,938
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018
Trading Symbol	BPMX

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2017	Jan. 31, 2017
Current assets:
Cash and cash equivalents	$ 1,576	$ 6,501
Accounts receivable, net	8	4
Inventories	15	38
Prepaid expenses and other current assets	573	284
Total current assets	2,172	6,827
Property and equipment, net	123	120
Other assets	154	154
Total assets	2,449	7,101
Current liabilities:
Accounts payable	2,006	2,551
Accrued expenses and other current liabilities	1,704	1,176
Total current liabilities	3,710	3,727
Long-term liabilities:
Warrant liability	73	403
Total liabilities	3,783	4,130
Commitments and contingencies (Note 5)
Stockholders’ equity (deficit):
Series A convertible preferred stock, $0.001 par value; 10,000,000 shares authorized; 1,515 issued and outstanding as of October 31, 2017 and January 31, 2017	1,515	1,515
Common stock, $0.001 par value; 450,000,000 shares authorized; 82,233,938 and 67,719,577 shares issued and outstanding as of October 31, 2017 and January 31, 2017, respectively	82	68
Additional paid-in capital	54,559	46,026
Accumulated deficit	(57,490)	(44,638)
Total stockholders' equity (deficit)	(1,334)	2,971
Total liabilities and stockholders' equity (deficit)	$ 2,449	$ 7,101

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Oct. 31, 2017	Jan. 31, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS
Series A convertible preferred stock, par value	$ 0.001	$ 0.001
Series A convertible preferred stock, shares authorized	10,000,000	10,000,000
Series A convertible preferred stock, shares issued	1,515	1,515
Series A convertible preferred stock, shares outstanding	1,515	1,515
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	82,233,938	67,719,577
Common stock, shares outstanding	82,233,938	67,719,577

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Revenues, net	$ 18	$ 33	$ 54	$ 85
Cost of goods sold	8	28	28	65
Gross margin	10	5	26	20
Operating expenses:
Research and development	2,111	2,487	7,465	7,633
Sales and marketing	546	529	1,929	2,531
General and administrative	1,088	1,154	3,671	3,516
Total operating expenses	3,745	4,170	13,065	13,680
Loss from operations	(3,735)	(4,165)	(13,039)	(13,660)
Change in fair value of warrant liability	169	334	330	334
Other expense, net	(148)	(47)	(142)	(45)
Loss before income taxes	(3,714)	(3,878)	(12,851)	(13,371)
Provision for income taxes			1	2
Net loss and comprehensive loss	$ (3,714)	$ (3,878)	$ (12,852)	$ (13,373)
Basic and diluted net loss per share	$ (0.05)	$ (0.12)	$ (0.17)	$ (0.47)
Shares used in computing basic and diluted net loss per share	79,659,000	31,253,000	73,977,000	28,737,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Cash flows from operating activities:
Net loss	$ (12,852,000)	$ (13,373,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	1,416,000	1,044,000
Expense related to modification of warrants	151,000
Depreciation expense	38,000	51,000
Amortization expense		22,000
Non-cash interest expense		16,000
Change in fair value of warrant liability	(330,000)	(334,000)
Changes in assets and liabilities:
Accounts receivable	(4,000)
Inventories	23,000	23,000
Prepaid expenses and other assets	(289,000)	(150,000)
Accounts payable	(545,000)	1,058,000
Accrued expenses and other liabilities	528,000	892,000
Net cash used in operating activities	(11,864,000)	(10,751,000)
Cash flows from investing activities:
Purchases of property and equipment	(41,000)	(20,000)
Net cash used in investing activities	(41,000)	(20,000)
Cash flows from financing activities:
Proceeds from the issuance of common stock and warrants, net of issuance costs	6,355,000	5,675,000
Proceeds from exercises of common stock warrants	615,000
Proceeds from exercises of stock options	10,000	41,000
Proceeds from issuance of convertible notes, net		1,484,000
Net cash provided by financing activities	6,980,000	7,200,000
Net decrease in cash and cash equivalents	(4,925,000)	(3,571,000)
Cash and cash equivalents at beginning of period	6,501,000	4,039,000
Cash and cash equivalents at end of period	$ 1,576,000	$ 468,000

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Oct. 31, 2017
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business BioPharmX Corporation (the “Company”) is incorporated under the laws of the state of Delaware and originally incorporated on August 30, 2010 in Nevada under the name Thompson Designs, Inc. The Company has one wholly-owned subsidiary, BioPharmX, Inc., a Nevada corporation. The Company is a specialty pharmaceutical company focused on utilizing its proprietary drug delivery technologies to develop and commercialize novel prescription and over-the-counter (“OTC”), products that address large markets in dermatology and women’s health. The Company’s objective is to develop products that treat health or age-related conditions that (1) are not presently being addressed or treated at all or (2) are currently treated with drug therapies or drug delivery approaches that are suboptimal. The Company’s strategy is designed to bring new products to market by identifying optimal delivery mechanisms and/or alternative applications for FDA-approved active pharmaceutical ingredients (“APIs”), and biological materials, while, in appropriate circumstances, reducing the time, cost and risk typically associated with new product development by repurposing drugs with demonstrated safety profiles and, when applicable, taking advantage of the regulatory approval pathway under Section 505(b)(2) of the Federal Food, Drug and Cosmetic Act. The Company believes these approaches may reduce drug development risk and could reduce the time and resources it spends during development. Its current platform technologies include innovative delivery mechanisms for antibiotics, biologic materials and molecular iodine (I 2 ). Since the Company’s inception, substantially all of the Company’s efforts have been devoted to developing its product candidates, including conducting preclinical and clinical trials, and providing general and administrative support for its operations. The Company commercially launched its breast health supplement at the end of 2014, although to-date the Company has not generated significant revenue from product sales. The Company is not dependent on sales to any one customer. The Company has financed its operations primarily through the sale of equity and convertible debt securities. In April and July 2017, the Company raised net proceeds of $4.4 million and $1.9 million, respectively, in registered direct offerings. In November 2017, the Company raised net proceeds of $9.7 million in a public offering. Basis of Presentation and Principles of Consolidation These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and include the accounts of the Company and its subsidiary. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended January 31, 2017, filed on April 21, 2017. The condensed consolidated balance sheet as of January 31, 2017, included herein, was derived from the audited consolidated financial statements as of that date. The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary and have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s statement of financial position as of October 31, 2017 and January 31, 2017, and the Company’s results of operations and its cash flows for the three and nine months ended October 31, 2017 and 2016. The results for the three and nine months ended October 31, 2017 are not necessarily indicative of the results to be expected for the year ending January 31, 2018 or any future period. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard cost method which approximates actual cost on a first-in, first-out basis. Market value is determined as the lower of replacement cost or net realizable value. The Company regularly reviews inventory quantities in consideration of actual loss experiences, projected future demand and remaining shelf life to record a provision for inventory, which may have become obsolete or are in excess of anticipated demand or net realizable value. If future demand or market conditions for the products are less favorable than forecasted, the Company may be required to record additional write-downs, which would negatively affect its results of operations in the period when the write-downs were recorded. The Company must order components for its products and build inventory in advance of product shipments. The Company has a purchase commitment relating to the manufacturing of VI 2 OLET finished product (iodine supplement tablets), which is non-cancelable as detailed in Note 5. The Company assesses its purchase commitment based on demand forecasts and establishes a liability for quantities deemed in excess of these forecasts. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. When such an event occurs, management determines whether there has been an impairment by comparing the anticipated undiscounted future net cash flows to the related asset’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. The Company did not identify any impairment losses for the three and nine months ended October 31, 2017. Advertising Expenses The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses were approximately $4,000 and $32,000 for the three months ended October 31, 2017 and 2016, respectively. Advertising expenses were approximately $23,000 and $310,000 for the nine months ended October 31, 2017 and 2016, respectively. Net Loss per Share Basic net loss per share attributable to common stockholders is calculated based on the weighted-average number of shares of the Company’s common stock outstanding during the period. The weighted-average shares outstanding for the three and nine months ended October 31, 2017 and 2016 excludes 193,333 shares of unvested common stock. Diluted net loss per share attributable to common stockholders is calculated based on the weighted-average number of shares of the Company’s common stock outstanding and other dilutive securities outstanding during the period. The potential dilutive shares of common stock resulting from the assumed exercise of outstanding stock options, warrants, the assumed conversion of preferred stock and release of restrictions on common stock are determined under the treasury stock method. As of October 31, 2017 and 2016, approximately 58,382,000 and 12,860,000 potentially dilutive securities, respectively, were excluded from the computation of diluted net loss per share because their effect on net loss per share would be anti-dilutive. Warrant Liability The Company accounts for certain of its warrants as derivative liabilities based on provisions relating to cash settlement options. The Company recorded a liability for the fair value of the warrants at the time of issuance, and at each reporting date the warrants are revalued to the instrument’s fair value. The fair value of the warrants are estimated using the Black-Scholes pricing model. This liability is subject to fair value re-measurement until the warrants are exercised or expired, and any change in fair value is recognized as other income or expense in the condensed consolidated statements of operations and comprehensive loss. Summary of Significant Accounting Policies These unaudited interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended January 31, 2017. There have been no significant changes in the Company’s significant accounting policies for the three and nine months ended October 31, 2017, as compared to the significant accounting policies described in the Annual Report on Form 10-K for the fiscal year ended January 31, 2017. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases , which requires entities to recognize assets and liabilities for leases with lease terms greater than twelve months. The new guidance also requires quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. The standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. The Company is in the process of evaluating the impact of adoption of this standard on its condensed consolidated financial statements. In May 2014, as part of its ongoing efforts to assist in the convergence of GAAP and International Financial Reporting Standards, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2017. The FASB has issued several updates to the standard which i) defer the original effective date, while allowing for early adoption (ASU 2015-14); ii) clarify the application of the principal versus agent guidance (ASU 2016-08); iii) clarify the guidance on inconsequential and perfunctory promises and licensing (ASU 2016-10); and clarify the guidance on certain sections of the guidance providing technical corrections and improvements (ASU 2016-10). In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients , to address certain narrow aspects of the guidance including collectibility criterion, collection of sales taxes from customers, noncash consideration, contract modifications and completed contracts. This issuance does not change the core principle of the guidance in the initial topic issued in May 2014. The Company is currently evaluating the impact of this standard and based on a preliminary analysis, does not believe adoption of this standard will have a material impact on its condensed consolidated financial statements. The Company is expected to use the modified retrospective method upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This amendment gives guidance and reduces diversity in practice with respect to certain types of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements. The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business, or no material effect is expected on the consolidated financial statements as a result of future adoption.

GOING CONCERN

GOING CONCERN	9 Months Ended
	Oct. 31, 2017
GOING CONCERN
GOING CONCERN	2. GOING CONCERN The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern and will continue to conduct operations for the foreseeable future and realize assets and discharge liabilities in the ordinary course of operations. As of October 31, 2017, the Company had cash and cash equivalents of $1.6 million and working capital deficit of $1.5 million. In November 2017, the Company raised net proceeds of $9.7 million in a public offering. The Company has incurred recurring losses and negative cash flows from operations since inception and has funded its operating losses through the sale of common stock, preferred stock, warrants to purchase common stock and the issuance of convertible notes. The Company incurred a net loss of $3.7 million and $3.9 million for the three months ended October 31, 2017 and 2016, respectively, and had an accumulated deficit of $57.5 million as of October 31, 2017. Net loss for the nine months ended October 31, 2017 and 2016 was $12.9 million and $13.4 million, respectively. The Company has a limited operating history and its prospects are subject to risks, expenses and uncertainties frequently encountered by companies in its industry. The Company continues its research and development efforts for its product candidates, which will require significant funding. If the Company is unable to obtain additional financing in the future or research and development efforts require higher than anticipated capital, there may be a negative impact on the financial viability of the Company. The Company plans to increase working capital by managing its cash flows and expenses and raising additional capital through either private or public equity or debt financing. There can be no assurance that such financing will be available or on terms which are favorable to the Company. While management of the Company believes that it has a plan to fund ongoing operations, there is no assurance that its plan will be successfully implemented. Failure to generate sufficient cash flows from operations, raise additional capital through one or more financings, or reduce certain discretionary spending could have a material adverse effect on the Company’s ability to achieve its intended business objectives. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements do not contain any adjustments that might result from the resolution of any of the above uncertainties.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Oct. 31, 2017
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	3. FAIR VALUE MEASUREMENTS The Company recognizes and discloses the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). Each level of input has different levels of subjectivity and difficulty involved in determining fair value. · Level 1—Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. · Level 2— Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. · Level 3— Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. As of October 31, 2017 and January 31, 2017, the Company held $0.9 million and $5.5 million, respectively, in money market funds, which are classified as Level 1 within the fair value hierarchy. No unrealized gains or losses are recorded in connection with these amounts. The fair value of the warrant liability was classified as a Level 3 liability, as the Company uses unobservable inputs to value it. The table below presents the activity within Level 3 of the fair value hierarchy (in thousands): Warrant Liability Balance as of January 31, 2017 $ 403 Change in fair value of warrants 364 Balance as of April 30, 2017 767 Change in fair value of warrants (525) Balance as of July 31, 2017 242 Change in fair value of warrants (169) Balance as of October 31, 2017 $ 73

BALANCE SHEET DETAILS

BALANCE SHEET DETAILS	9 Months Ended
	Oct. 31, 2017
BALANCE SHEET DETAILS
BALANCE SHEET DETAILS	4. BALANCE SHEET DETAILS October 31, January 31, 2017 2017 (in thousands) Inventories: Work in process $ $ 23 Finished goods 8 Channel inventory 7 $ $

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Oct. 31, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	5. COMMITMENTS AND CONTINGENCIES Commitments The following table summarizes the Company’s commitments as of October 31, 2017 (in thousands): Fiscal years ending January 31, Total 2018 2019 2020 2021 Operating lease $ 693 $ $ 534 $ — $ — Purchase commitment 1,070 Total $ 1,763 $ 422 $ $ $ On December 14, 2016, the Company signed a lease for 12,066 square feet of office and laboratory space in Menlo Park, California. In September 2017, the lease term was extended to December 2018 and the square footage increased to 12,203 square feet. Rent expense for the three months ended October 31, 2017 and 2016 was approximately $154,000 and $86,000, respectively. Rent expense for the nine months ended October 31, 2017 and 2016 was approximately $453,000 and $259,000, respectively. The purchase commitment relates to the manufacturing of VI 2 OLET finished product (iodine supplement tablets) and is non-cancelable. The Company assesses its purchase commitments based on demand forecasts and establishes a liability for quantities deemed in excess of these forecasts. During the year ended January 31, 2017, the Company recorded a charge of approximately $343,000 as its demand forecast indicated such inventory was deemed excess. The Company continues to pursue additional channel distribution expansion for VI 2 OLET by way of partnerships and/or sublicense with women’s health and/or consumer companies. The expected increase in demand generated from these partnerships is included in the Company’s demand forecast. If the Company is unsuccessful in securing such partnerships or sublicensee, it is possible that a loss contingency related to the excess purchase commitments will be required to record additional write-downs, which would negatively affect its results of operations in the period when the write-downs were recorded. Legal Proceedings On September 26, 2017, two purported shareholders filed a lawsuit in the Superior Court for the State of California, San Mateo County, against the Company and James Pekarsky, the Company’s former Chief Executive Officer. The lawsuit alleges that certain investments were not exempt from registration under the federal securities laws, alleges a violation of California’s Corporations Code and asserts a claim for breach of fiduciary duty. The complaint seeks unspecified rescissionary damages, interest thereon, punitive damages, and other relief. The complaint has not yet been served. The Company believes these claims lack merit and intends to defend this matter vigorously. The Company has not recorded any amount related to this litigation. Subject to the above-mentioned lawsuit, the Company is not a party to any material legal proceeding that the Company believes is likely to have a material adverse effect on its consolidated financial position or results of operations. From time to time the Company may be subject to legal proceedings and claims in the ordinary course of business. These claims, even if not meritorious, could result in the expenditure of significant financial resources and diversion of management efforts. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. License Agreement In March 2013, the Company entered into an amended and restated collaboration and license agreement with Iogen LLC, which provides the Company with a license to certain rights to label, market, and resell the finished inventory and ongoing manufacturing of the Iogen molecular iodine technology for future product formulation development and commercialization. New formulation patents developed by the Company will be solely owned by the Company. The agreement gives the Company a perpetual, fully paid-up, exclusive license to make, have made, use, sell and offer for sale and import products. Pursuant to the terms of the license, the Company must pay: · a fee for the exclusive license to the IP. · 30% of net profit associated with direct commercialization of an OTC product or 30% of net royalties received from any sub-licensee. · a royalty of 3% of net sales for the first 24 months of commercialization and 2% of net sales thereafter for a prescription iodine tablet developed and commercialized under the license. · a royalty of 3% of net sales for the first 12 months of commercialization for other products developed and commercialized under the license and 2% of net sales thereafter until expiration of applicable patents covering such products and 1% thereafter. · a fixed royalty fee for the protection and indemnification of licensed intellectual property right (“IP rights”) for the prescription product developed, marketed and sold from newly developed formulations as long as the patents are valid and cover the prescription product. · a fixed royalty fee for the protection and indemnification of licensed IP rights for the other products utilizing the molecular iodine technology developed, marketed and sold from newly developed formulations as long as the patents are valid and cover the prescription product. No royalties have been paid as of October 31, 2017.

CONVERTIBLE REDEEMABLE PREFERRE

CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	9 Months Ended
	Oct. 31, 2017
CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY	6. CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY Common Stock Pursuant to a subscription agreement dated October 24, 2014, Korea Investment Partners Overseas Expansion Platform Fund (“KIP”), an existing stockholder, agreed to purchase 1,081,081 shares of common stock from the Company at a price of $1.85 per share in a private placement (the “KIP private placement”) upon the earlier to occur of (i) the Company receiving revenues from VI 2 OLET of $2,000,000 or (ii) receipt by the Company of approval to list on any tier of the NYSE or Nasdaq stock market at a market price of at least $3.70 per share. In addition, KIP has previously informed the Company of its intention to complete the KIP private placement even if the Company’s stock price was not at least $3.70 per share. As of the date of this report, this private placement has not closed, and the Company does not expect the private placement to close. As consideration for Ping Wang’s service as a director of the Company (Mr. Wang is no longer a director of the Company), 290,000 shares of the Company’s common stock were issued, of which 96,667 shares vested immediately and 193,333 shares will vest immediately upon completion of the $2.0 million investment. The Company does not expect these shares to vest. In December 2015, the Company sold 4,100,000 shares of common stock at a price per share of $1.43 resulting in net proceeds of $5.5 million in a private placement to investment funds managed by Franklin Advisers. For a period of five years, Franklin Advisers has the right to purchase up to an aggregate of 20% of the securities offered by the Company in any subsequent private placement. In April 2016, the Company issued 3,600,000 shares of common stock in a public offering at a price per share of $1.195 resulting in net proceeds of $3.6 million and warrants to purchase 1,952,000 shares of common stock at an exercise price of $1.20 per share. In August 2016, the Company issued 2,423,077 shares of common stock at a price per share of $0.65 resulting in net proceeds of $1.3 million in a private offering. On August 17, 2016, the Company issued a secured convertible promissory note (“Secured Note”) in the principal amount of $1.0 million. The Secured Note included a term to maturity of 36 months and an interest rate of 10% per annum. On August 17, 2016, the Company issued an unsecured convertible promissory note (“Unsecured Note”) in the principal amount of $0.5 million. The Unsecured Note included a term to maturity of 6 months and an interest rate of 10% per annum. Both the Secured Note and Unsecured Note (together, “Notes”) were convertible into the Company’s common stock at a conversion price of $0.80 per share. Upon issuance of the Notes, debt discounts of approximately $88,000 resulting from a beneficial conversion feature and debt issuance costs of approximately $16,000 were recorded and expensed to interest expense when converted to common stock. Pursuant to the conversion features included in the Notes, the Notes’ principal amount and unpaid accrued interest automatically converted into 1,926,711 shares of common stock immediately prior to the completion of the Company’s public offering on November 28, 2016. In September 2016, the Company issued 1,550,000 shares of common stock in a registered direct offering at a price per share of $0.60 resulting in net proceeds of $0.8 million and warrants to purchase 1,286,501 shares of common stock at an exercise price of $0.75 per share. For a period of eighteen months, investors in this offering have the right to purchase up to 50% of the securities offered by the Company in any subsequent financing. In November 2016, the Company issued 31,489,429 shares of common stock at a price per share of $0.35, 1,515 shares of Series A convertible preferred stock at a price per share of $1,000 and warrants to purchase 31,499,725 shares of common stock in a public offering resulting in net proceeds of $10.6 million. In December 2016, the underwriters exercised their option to purchase an additional 1,390,676 shares of common stock to cover over-allotments resulting in net proceeds of $0.4 million. In April 2017, the Company issued 6,410,258 shares of common stock at a price per share of $0.78 resulting in net proceeds of $4.4 million and warrants to purchase 3,365,385 shares of common stock at an exercise price of $0.90 in a registered direct offering. In July 2017, the Company issued 5,500,000 shares of common stock at a price per share of $0.36 resulting in net proceeds of $1.9 million in a registered direct offering. Series A Convertible Redeemable Preferred Stock Pursuant to the Certificate of Elimination filed with the Secretary of State of the State of Delaware on March 17, 2016, all shares of Series A preferred stock previously designated were returned to the status of authorized but unissued shares of preferred stock, without designation as to series or rights, preferences, privileges or limitations. Series A Convertible Preferred Stock Pursuant to the Certificate of Designation filed with the Secretary of State of the State of Delaware on November 22, 2016, 10,000 shares of Series A convertible preferred stock were designated. In November 2016, the Company issued 1,515 shares of Series A convertible preferred stock (“Preferred Stock”), which included warrants to purchase 3,246,429 shares of common stock. The Preferred Stock had a purchase price of $1,000 per share and are convertible into common stock at a conversion rate of $0.35 per share. For the first 18 months after issuance, the Preferred Stock are immediately convertible at the option of the holder up to the holder’s pro rata share of 19.99% of the Company’s common stock outstanding at the time of conversion. After the first 18 months after issuance, the ownership limitation expires and, at the option of the holder, the Preferred Stock can be converted into common stock. The Preferred Stock contained a beneficial conversion feature valued at $0.1 million, which was recorded as a deemed dividend at the time of issuance, which was considered to be the earliest time of conversion. As of October 31, 2017, all the Preferred Stock and related warrants remain outstanding. Warrants The following is a summary of outstanding warrants as of October 31, 2017: Total Price per Share Expiration Date Warrants related to January 2014 agreement 289,505 $ 1.85 May 2019 Warrants related to May 2014 agreement 316,395 $2.035 May 2019 Warrants related to April to November 2014 financing 1,661,055 $ 3.70 April 2019 - November 2019 Warrants related to June 2015 financing 109,091 $ 2.75 June 2020 Warrants related to April 2016 financing 1,952,000 $ 1.20 April 2021 Warrants related to September 2016 financing (1) 1,286,501 $ 0.75 September 2021 to March 2022 Warrants related to November 2016 financing 30,406,061 $ 0.35 November 2022 to November 2024 Warrants related to November 2016 financing 895,450 $ 0.44 November 2021 Warrants related to November 2016 financing 198,214 $ 0.33 November 2022 Warrants related to April 2017 financing 801,282 $ 0.90 October 2022 Warrants related to October 2017 financing (2) 3,846,152 $ 0.30 October 2022 (1) In connection with the sale of common stock in September 2016, warrants to purchase 1,286,501 shares of common stock were issued at an exercise price of $0.75 per share. These warrants included a cash settlement option requiring the Company to record a liability for the fair value of the warrants at the time of issuance and at each reporting period with any change in the fair value reported as other income or expense. At the time of issuance, approximately $566,000 was recorded as a warrant liability. To value the warrant liability, the Company used the Black-Scholes pricing model with the following assumptions: risk-free interest rate of 1.1%, contractual term of 5 years, expected volatility of 95.8% and a dividend rate of 0%. As of October 31, 2017, the fair value of the warrant liability was approximately $73,000 and was included as a long-term liability. (2) On October 23, 2017, the Company entered into agreements with certain of these warrant holders to permit their immediate exercise of 2,564,103 shares of common stock underlying the warrants at an exercise price per share of $0.24. The Company recorded a charge for the incremental fair value of approximately $151,000 in the other expense line item in the condensed consolidated statement of operations and comprehensive loss. The fair value of the warrants exercised was computed as of the date of exercise using the following assumptions: risk-free interest rate of 2.03%, contractual term of 5 years, expected volatility of 83.9% and a dividend rate of 0%. In addition, these warrant holders were issued new warrants to purchase up to an aggregate of 3,846,152 shares of common stock at an exercise price per share of $0.30. Equity Incentive Plan On July 5, 2016, the Company adopted the 2016 Equity Incentive Plan (“2016 Plan”), which permits the Company to grant equity awards to directors, officers, employees and consultants. In connection with the adoption of the 2016 Plan, the Company ceased to grant equity awards under its 2014 Equity Incentive Plan (“2014 Plan”), which was adopted on January 23, 2014. All grants and awards under the 2014 Plan, including stock options previously issued under BioPharmX, Inc.’s 2011 Equity Incentive Plan that were substituted with stock options issued under the 2014 Plan, remain in effect in accordance with their terms. Stock options generally vest in one to four years and expire ten years from the date of grant. In March 2017, the 2016 Plan was amended and the shares reserved for issuance was increased by 20,000,000 shares to a total of 24,000,000 shares. The 2014 Plan and 2016 Plan are referred to collectively as the “Plans.” The following table summarizes the Company’s stock option activities under the Plans: Weighted Average Remaining Aggregate Available for Exercise Contractual Intrinsic Grant Shares Prices Life Value (in thousands) Balance as of February 1, 2017 252,379 6,465,829 $ 0.77 8.77 $ 238 Shares authorized for issuance 20,000,000 — Granted (5,095,000) 5,095,000 $ 0.73 Balance as of April 30, 2017 $ 0.75 9.16 $ 2,062 Granted (50,000) $ 0.46 Exercised — $ 0.25 Cancelled and expired under the 2014 Plan — $ 1.62 Cancelled under the 2016 Plan 28,000 (28,000) $ 0.62 Balance as of July 31, 2017 $ 0.75 8.93 $ 22 Cancelled and expired under the 2014 Plan — $ 0.25 Cancelled under the 2016 Plan $ 0.65 Balance as of October 31, 2017 $ 0.75 8.68 $ — Vested and exercisable $ 0.88 7.55 $ — Vested and expected to vest $ 0.76 8.63 $ — Inducement Grants The Company has also awarded inducement option grants to purchase common stock to new employees outside of the 2016 Plan as permitted under Section 711(a) of the NYSE American Company Guide. Such options vest at the rate of 25% of the shares on the first anniversary of the commencement of such employee’s employment with the Company, and then one forty-eighth (1/48) of the shares monthly thereafter subject to such employee’s continued service. The following table summarizes the Company’s inducement grant stock options: Weighted Average Remaining Exercise Contractual Aggregate Shares Prices Life Intrinsic Value (in thousands) Balance as of October 31, 2017 660,000 $ $ — Vested and exercisable 327,291 $ $ — Vested and expected to vest 627,620 $ $ — There was no activity related to these inducement grant stock options during the nine months ended October 31, 2017. The following table summarizes significant ranges of outstanding and exercisable options as of October 31, 2017: Options Outstanding Options Vested and Exercisable Weighted Average Weighted Weighted Remaining Average Number Average Number Contractual Exercise Vested and Exercise Range of Exercise Prices Outstanding Life (in Years) Prices Exercisable Prices $0.20 - $0.35 $ $ $0.36 - $0.65 $ $ $0.66 - $1.09 $ $ $1.10 - $1.85 $ $ $1.86 - $3.00 $ 100,000 $ 3.00 $ $ The total intrinsic value of stock options exercised during the nine months ended October 31, 2017 was approximately $4,000. There were no stock options exercised during the three months ended October 31, 2017. The total intrinsic value of stock options exercised during the three and nine months ended October 31, 2016 was approximately $26,000 and $65,000, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Oct. 31, 2017
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	7. STOCK-BASED COMPENSATION The following table summarizes the stock-based compensation expenses included in the condensed consolidated statement of operations and comprehensive loss (in thousands): For the three months ended For the nine months ended October 31, October 31, 2017 2016 2017 2016 Research and development $ 131 $ 87 $ 397 $ 292 Sales and marketing 98 65 289 247 General and administrative 236 195 730 505 Total $ 465 $ 347 $ 1,416 $ 1,044 The Company estimates the fair value of stock options granted using the Black-Scholes pricing model. This model also requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. For employee grants, the fair value is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. As of October 31, 2017, total compensation costs related to unvested, but not yet recognized, stock-based awards was $3.7 million, net of estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted average remaining period of 2.83 years and will be adjusted for subsequent changes in estimated forfeitures. Valuation Assumptions During the nine months ended October 31, 2017, the grant date fair value of stock options granted was $0.56 per share. There were no stock options granted during the three months ended October 31, 2017. The following assumptions were used to calculate the estimated fair value of awards granted to employees and non-employees for the periods ended: For the three months ended For the nine months ended October 31, October 31, 2016 2017 2016 Expected volatility 95.5% - 96.8% 96.8% - 98.6% Expected term in years 5.0 - 6.0 6.0 - 9.6 5.0 - 6.5 Risk-free interest rate 1.12% - 1.32% 1.80% - 2.35% 1.12% - 1.32% Expected dividend yield — — — Expected Term The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. For awards granted subject only to service vesting requirements, the Company utilizes the simplified method for estimating the expected term of the stock-based award, instead of historical exercise data. Expected Volatility The Company uses the historical volatility of the price of shares of common stock of selected public companies, including the Company’s stock price, in the biotechnology sector due to its limited trading history. Risk-Free Interest Rate The Company bases the risk-free interest rate used in the Black-Scholes pricing model upon the implied yield curve currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model. Expected Dividend The Company has never paid dividends on its shares of common stock and currently does not intend to do so and, accordingly, the dividend yield percentage is zero for all periods.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Oct. 31, 2017
INCOME TAXES
INCOME TAXES	8. INCOME TAXES The Company evaluates its ability to recover deferred tax assets, in full or in part, by considering all available positive and negative evidence, including past operating results and its forecast of future taxable income on a jurisdictional basis. The Company bases its estimate of current and deferred taxes on the tax laws and rates that are currently in effect in the appropriate jurisdiction. Changes in laws or rates may affect the tax provision as well as the amount of deferred tax assets or liabilities. Current tax laws impose substantial restrictions on the utilization of net operating loss and credit carry-forwards in the event of an “ownership change,” as defined by the Internal Revenue Code. If there should be an ownership change, the Company’s ability to utilize its carry-forwards could be limited. As of October 31, 2017 and January 31, 2017, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions. The 2010 to 2017 tax years remain open for examination by the federal and state authorities.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Oct. 31, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	9. SUBSEQUENT EVENTS In November 2017, the Company issued 45,275,000 shares of common stock, pre-funded warrants to purchase 28,225,000 shares of common stock, and accompanying Series A common warrants to purchase 73,500,000 shares of common stock (“Series A Warrants”), and accompanying Series B common warrants to purchase 73,500,000 shares of common stock (“Series B Warrants”), resulting in net proceeds of $9.7 million. Each share of common stock and pre-funded warrant was sold together with a Series A Warrant to purchase one share of common stock and a Series B Warrant to purchase one share of common stock. The public offering price was $0.15 per share of common stock and accompanying Series A Warrant and Series B Warrant and $0.1490 per pre-funded warrant and accompanying Series A Warrant and Series B Warrant. The pre-funded warrants were issued and sold to purchasers in lieu of shares of common stock that would otherwise result in the purchaser's beneficial ownership exceeding 4.99% (or at the election of the purchaser, 9.99%) of the Company’s outstanding Common Stock immediately following the closing of the offering. The pre-funded warrants have a nominal exercise price of $0.001 per share, are immediately exercisable and may be exercised at any time until the pre-funded warrants are exercised in full. The Series A Warrants have an exercise price of $0.20 per share, are exercisable immediately and expire five years from the date of issuance. The Series B Warrants have an exercise price of $0.25 per share, are exercisable immediately and expire on the earlier of (1) the twenty-first trading day after the Company issues a press release announcing it has entered into a strategic licensing, collaboration, partnership or similar agreement for the commitment to fund its Phase 3 trials for BPX01, and (2) the eighteen month anniversary of issuance. .

DESCRIPTION OF BUSINESS AND S15

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Oct. 31, 2017
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and include the accounts of the Company and its subsidiary. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended January 31, 2017, filed on April 21, 2017. The condensed consolidated balance sheet as of January 31, 2017, included herein, was derived from the audited consolidated financial statements as of that date. The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary and have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s statement of financial position as of October 31, 2017 and January 31, 2017, and the Company’s results of operations and its cash flows for the three and nine months ended October 31, 2017 and 2016. The results for the three and nine months ended October 31, 2017 are not necessarily indicative of the results to be expected for the year ending January 31, 2018 or any future period.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard cost method which approximates actual cost on a first-in, first-out basis. Market value is determined as the lower of replacement cost or net realizable value. The Company regularly reviews inventory quantities in consideration of actual loss experiences, projected future demand and remaining shelf life to record a provision for inventory, which may have become obsolete or are in excess of anticipated demand or net realizable value. If future demand or market conditions for the products are less favorable than forecasted, the Company may be required to record additional write-downs, which would negatively affect its results of operations in the period when the write-downs were recorded. The Company must order components for its products and build inventory in advance of product shipments. The Company has a purchase commitment relating to the manufacturing of VI 2 OLET finished product (iodine supplement tablets), which is non-cancelable as detailed in Note 5. The Company assesses its purchase commitment based on demand forecasts and establishes a liability for quantities deemed in excess of these forecasts.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. When such an event occurs, management determines whether there has been an impairment by comparing the anticipated undiscounted future net cash flows to the related asset’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. The Company did not identify any impairment losses for the three and nine months ended October 31, 2017.
Advertising Expenses	Advertising Expenses The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses were approximately $4,000 and $32,000 for the three months ended October 31, 2017 and 2016, respectively. Advertising expenses were approximately $23,000 and $310,000 for the nine months ended October 31, 2017 and 2016, respectively.
Net Loss per Share	Net Loss per Share Basic net loss per share attributable to common stockholders is calculated based on the weighted-average number of shares of the Company’s common stock outstanding during the period. The weighted-average shares outstanding for the three and nine months ended October 31, 2017 and 2016 excludes 193,333 shares of unvested common stock. Diluted net loss per share attributable to common stockholders is calculated based on the weighted-average number of shares of the Company’s common stock outstanding and other dilutive securities outstanding during the period. The potential dilutive shares of common stock resulting from the assumed exercise of outstanding stock options, warrants, the assumed conversion of preferred stock and release of restrictions on common stock are determined under the treasury stock method. As of October 31, 2017 and 2016, approximately 58,382,000 and 12,860,000 potentially dilutive securities, respectively, were excluded from the computation of diluted net loss per share because their effect on net loss per share would be anti-dilutive.
Warrant Liability	Warrant Liability The Company accounts for certain of its warrants as derivative liabilities based on provisions relating to cash settlement options. The Company recorded a liability for the fair value of the warrants at the time of issuance, and at each reporting date the warrants are revalued to the instrument’s fair value. The fair value of the warrants are estimated using the Black-Scholes pricing model. This liability is subject to fair value re-measurement until the warrants are exercised or expired, and any change in fair value is recognized as other income or expense in the condensed consolidated statements of operations and comprehensive loss.
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies These unaudited interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended January 31, 2017. There have been no significant changes in the Company’s significant accounting policies for the three and nine months ended October 31, 2017, as compared to the significant accounting policies described in the Annual Report on Form 10-K for the fiscal year ended January 31, 2017.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases , which requires entities to recognize assets and liabilities for leases with lease terms greater than twelve months. The new guidance also requires quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. The standard is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. The Company is in the process of evaluating the impact of adoption of this standard on its condensed consolidated financial statements. In May 2014, as part of its ongoing efforts to assist in the convergence of GAAP and International Financial Reporting Standards, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2017. The FASB has issued several updates to the standard which i) defer the original effective date, while allowing for early adoption (ASU 2015-14); ii) clarify the application of the principal versus agent guidance (ASU 2016-08); iii) clarify the guidance on inconsequential and perfunctory promises and licensing (ASU 2016-10); and clarify the guidance on certain sections of the guidance providing technical corrections and improvements (ASU 2016-10). In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients , to address certain narrow aspects of the guidance including collectibility criterion, collection of sales taxes from customers, noncash consideration, contract modifications and completed contracts. This issuance does not change the core principle of the guidance in the initial topic issued in May 2014. The Company is currently evaluating the impact of this standard and based on a preliminary analysis, does not believe adoption of this standard will have a material impact on its condensed consolidated financial statements. The Company is expected to use the modified retrospective method upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This amendment gives guidance and reduces diversity in practice with respect to certain types of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements. The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business, or no material effect is expected on the consolidated financial statements as a result of future adoption.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Oct. 31, 2017
FAIR VALUE MEASUREMENTS
Schedule of Fair Value of Warrant Liability Classified as Level 3 Liabilities	The table below presents the activity within Level 3 of the fair value hierarchy (in thousands): Warrant Liability Balance as of January 31, 2017 $ 403 Change in fair value of warrants 364 Balance as of April 30, 2017 767 Change in fair value of warrants (525) Balance as of July 31, 2017 242 Change in fair value of warrants (169) Balance as of October 31, 2017 $ 73

BALANCE SHEET DETAILS (Tables)

BALANCE SHEET DETAILS (Tables)	9 Months Ended
	Oct. 31, 2017
BALANCE SHEET DETAILS
Schedule of Inventories	October 31, January 31, 2017 2017 (in thousands) Inventories: Work in process $ $ 23 Finished goods 8 Channel inventory 7 $ $

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Oct. 31, 2017
COMMITMENTS AND CONTINGENCIES
Future minimum commitments	The following table summarizes the Company’s commitments as of October 31, 2017 (in thousands): Fiscal years ending January 31, Total 2018 2019 2020 2021 Operating lease $ 693 $ $ 534 $ — $ — Purchase commitment 1,070 Total $ 1,763 $ 422 $ $ $

CONVERTIBLE REDEEMABLE PREFER19

CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (Tables)	9 Months Ended
	Oct. 31, 2017
Schedule of outstanding warrants	The following is a summary of outstanding warrants as of October 31, 2017: Total Price per Share Expiration Date Warrants related to January 2014 agreement 289,505 $ 1.85 May 2019 Warrants related to May 2014 agreement 316,395 $2.035 May 2019 Warrants related to April to November 2014 financing 1,661,055 $ 3.70 April 2019 - November 2019 Warrants related to June 2015 financing 109,091 $ 2.75 June 2020 Warrants related to April 2016 financing 1,952,000 $ 1.20 April 2021 Warrants related to September 2016 financing (1) 1,286,501 $ 0.75 September 2021 to March 2022 Warrants related to November 2016 financing 30,406,061 $ 0.35 November 2022 to November 2024 Warrants related to November 2016 financing 895,450 $ 0.44 November 2021 Warrants related to November 2016 financing 198,214 $ 0.33 November 2022 Warrants related to April 2017 financing 801,282 $ 0.90 October 2022 Warrants related to October 2017 financing (2) 3,846,152 $ 0.30 October 2022 (1) In connection with the sale of common stock in September 2016, warrants to purchase 1,286,501 shares of common stock were issued at an exercise price of $0.75 per share. These warrants included a cash settlement option requiring the Company to record a liability for the fair value of the warrants at the time of issuance and at each reporting period with any change in the fair value reported as other income or expense. At the time of issuance, approximately $566,000 was recorded as a warrant liability. To value the warrant liability, the Company used the Black-Scholes pricing model with the following assumptions: risk-free interest rate of 1.1%, contractual term of 5 years, expected volatility of 95.8% and a dividend rate of 0%. As of October 31, 2017, the fair value of the warrant liability was approximately $73,000 and was included as a long-term liability. (2) On October 23, 2017, the Company entered into agreements with certain of these warrant holders to permit their immediate exercise of 2,564,103 shares of common stock underlying the warrants at an exercise price per share of $0.24. The Company recorded a charge for the incremental fair value of approximately $151,000 in the other expense line item in the condensed consolidated statement of operations and comprehensive loss. The fair value of the warrants exercised was computed as of the date of exercise using the following assumptions: risk-free interest rate of 2.03%, contractual term of 5 years, expected volatility of 83.9% and a dividend rate of 0%. In addition, these warrant holders were issued new warrants to purchase up to an aggregate of 3,846,152 shares of common stock at an exercise price per share of $0.30.
Schedule of significant ranges of outstanding and exercisable options	Options Outstanding Options Vested and Exercisable Weighted Average Weighted Weighted Remaining Average Number Average Number Contractual Exercise Vested and Exercise Range of Exercise Prices Outstanding Life (in Years) Prices Exercisable Prices $0.20 - $0.35 $ $ $0.36 - $0.65 $ $ $0.66 - $1.09 $ $ $1.10 - $1.85 $ $ $1.86 - $3.00 $ 100,000 $ 3.00 $ $
2014 Equity Incentive Plan
Stock option plan activity	Weighted Average Remaining Aggregate Available for Exercise Contractual Intrinsic Grant Shares Prices Life Value (in thousands) Balance as of February 1, 2017 252,379 6,465,829 $ 0.77 8.77 $ 238 Shares authorized for issuance 20,000,000 — Granted (5,095,000) 5,095,000 $ 0.73 Balance as of April 30, 2017 $ 0.75 9.16 $ 2,062 Granted (50,000) $ 0.46 Exercised — $ 0.25 Cancelled and expired under the 2014 Plan — $ 1.62 Cancelled under the 2016 Plan 28,000 (28,000) $ 0.62 Balance as of July 31, 2017 $ 0.75 8.93 $ 22 Cancelled and expired under the 2014 Plan — $ 0.25 Cancelled under the 2016 Plan $ 0.65 Balance as of October 31, 2017 $ 0.75 8.68 $ — Vested and exercisable $ 0.88 7.55 $ — Vested and expected to vest $ 0.76 8.63 $ —
Outside of the 2016 Equity Incentive Plan
Stock option plan activity	Weighted Average Remaining Exercise Contractual Aggregate Shares Prices Life Intrinsic Value (in thousands) Balance as of October 31, 2017 660,000 $ $ — Vested and exercisable 327,291 $ $ — Vested and expected to vest 627,620 $ $ —

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Oct. 31, 2017
STOCK-BASED COMPENSATION
Summary of stock based compensation expense	The following table summarizes the stock-based compensation expenses included in the condensed consolidated statement of operations and comprehensive loss (in thousands): For the three months ended For the nine months ended October 31, October 31, 2017 2016 2017 2016 Research and development $ 131 $ 87 $ 397 $ 292 Sales and marketing 98 65 289 247 General and administrative 236 195 730 505 Total $ 465 $ 347 $ 1,416 $ 1,044
Black-Scholes option pricing model fair value assumptions	For the three months ended For the nine months ended October 31, October 31, 2016 2017 2016 Expected volatility 95.5% - 96.8% 96.8% - 98.6% Expected term in years 5.0 - 6.0 6.0 - 9.6 5.0 - 6.5 Risk-free interest rate 1.12% - 1.32% 1.80% - 2.35% 1.12% - 1.32% Expected dividend yield — — —

DESCRIPTION OF BUSINESS AND S21

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Offerings (Details) - USD ($) $ in Millions	1 Months Ended
	Nov. 30, 2017	Jul. 31, 2017	Apr. 30, 2017	Sep. 30, 2016	Aug. 31, 2016
Private Placement
Other Disclosures
Net proceeds from the sale of common stock		$ 1.9	$ 4.4	$ 0.8	$ 1.3
Subsequent event | Public Offering
Other Disclosures
Net proceeds from the sale of common stock	$ 9.7

DESCRIPTION OF BUSINESS AND S22

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets and Advertising Expenses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Advertising Expenses
Advertising expenses	$ 4,000	$ 32,000	$ 23,000	$ 310,000

DESCRIPTION OF BUSINESS AND S23

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Loss Per Share (Details) - shares	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Net Loss Per Share
Common stock shares expected to vest			193,333	193,333	193,333	193,333
Potentially dilutive securities excluded from computation of diluted loss per share	58,382,000	12,860,000

GOING CONCERN (Details)

GOING CONCERN (Details) - USD ($) $ in Thousands	1 Months Ended					3 Months Ended		9 Months Ended
	Nov. 30, 2017	Jul. 31, 2017	Apr. 30, 2017	Sep. 30, 2016	Aug. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Cash and cash equivalents						$ 1,576	$ 468	$ 1,576	$ 468	$ 6,501	$ 4,039
Working capital (deficit)						(1,500)		(1,500)
Net loss						3,714	$ 3,878	12,852	$ 13,373
Accumulated deficit						$ 57,490		$ 57,490		$ 44,638
Private Placement
Net proceeds from the sale of common stock		$ 1,900	$ 4,400	$ 800	$ 1,300
Public Offering | Subsequent event
Net proceeds from the sale of common stock	$ 9,700

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Money Market Funds - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Oct. 31, 2017	Jan. 31, 2017
Fair Value Measurements
Unrealized gains (losses)	$ 0	$ 0
Level 1
Fair Value Measurements
Available-for-sale securities	$ 0.9	$ 5.5

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value of Warrant Liability Classified as Level 3 Liabilities (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017
Fair Value of Warrant Liability Classified as Level 3 Liabilities
Beginning balance	$ 242	$ 767	$ 403
Change in fair value of warrants	(169)	(525)	364
Ending balance	$ 73	$ 242	$ 767

BALANCE SHEET DETAILS (Details)

BALANCE SHEET DETAILS (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Jan. 31, 2017
Inventories:
Work in process	$ 7	$ 23
Finished goods	4	8
Channel inventory	4	7
Total	$ 15	$ 38

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Commitments (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2017USD ($)	Oct. 31, 2016USD ($)	Oct. 31, 2017USD ($)	Oct. 31, 2016USD ($)	Jan. 31, 2017USD ($)	Sep. 30, 2017ft²	Dec. 14, 2016ft²
Operating lease commitments
2,018	$ 159,000		$ 159,000
2,019	534,000		534,000
Total	693,000		693,000
Purchase commitments
2,018	263,000		263,000
2,019	269,000		269,000
2,020	269,000		269,000
2,021	269,000		269,000
Total	1,070,000		1,070,000
Contractual obligation commitments
2,018	422,000		422,000
2,019	803,000		803,000
2,020	269,000		269,000
2,021	269,000		269,000
Total	1,763,000		1,763,000
Rent expense
Leased office and laboratory area | ft²						12,203	12,066
Rent expense	$ 154,000	$ 86,000	$ 453,000	$ 259,000
Excess inventory charge					$ 343,000

COMMITMENTS AND CONTINGENCIES29

COMMITMENTS AND CONTINGENCIES - Legal Proceedings and License Agreement (Details)	Sep. 26, 2017shareholder	Oct. 31, 2017USD ($)
License Agreement
Lawsuit filed by number of shareholders | shareholder	2
Royalties paid | $		$ 0
License Agreement | Iogen, LLC.
License Agreement
Non Royalty license fee equal to a certain percentage of net profit associated with OTC product		30.00%
Non Royalty license fee equal to a certain percentage of net royalties received from any sub-licensee		30.00%
License Agreement | Prescription Iodine Tablet | Iogen, LLC.
License Agreement
Royalty fee percentage based on net sales over a specific time period of commercialization		3.00%
Royalty fee percentage based on net sales after a specific period of time		2.00%
Time period for determining initial royalty fee as a percent of net sales		24 months
License Agreement | Other Products | Iogen, LLC.
License Agreement
Royalty fee percentage based on net sales over a specific time period of commercialization		3.00%
Royalty fee percentage based on net sales from initial period until expiration of applicable patents		2.00%
Royalty fee percentage based on net sales after a specific period of time		1.00%
Time period for determining initial royalty fee as a percent of net sales		12 months

CONVERTIBLE REDEEMABLE PREFER30

CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - Common Stock (Details) - USD ($)	Nov. 28, 2016	Aug. 17, 2016	Oct. 24, 2014	Jul. 31, 2017	Apr. 30, 2017	Dec. 31, 2016	Nov. 30, 2016	Sep. 30, 2016	Aug. 31, 2016	Apr. 30, 2016	Dec. 31, 2015	Oct. 31, 2017	Oct. 31, 2016	Jan. 31, 2017
Conversion of convertible notes payable to common stock (in shares)	1,926,711
Shares issued												82,233,938		67,719,577
Net proceeds from issuance of common stock, preferred stock and warrants												$ 6,355,000	$ 5,675,000
Conversion price (in dollars per share)		$ 0.80
Beneficial conversion feature														$ 88,000
Debt issuance costs		$ 16,000
Secured Convertible Notes Payable
Convertible notes payable, net		$ 1,000,000
Maturity term (in months)		36 months
Interest rate (as a percentage)		10.00%
Unsecured Convertible Notes Payable
Convertible notes payable, net		$ 500,000
Maturity term (in months)		6 months
Interest rate (as a percentage)		10.00%
Public Offering
Issuance of stock (in shares)										3,600,000
Share price (in dollars per share)										$ 1.195
Net proceeds from issuance of common stock and warrants										$ 3,600,000
Net proceeds from issuance of common stock, preferred stock and warrants							$ 10,600,000
Number of shares of common stock subject to warrant (in shares)							31,499,725			1,952,000
Warrants exercise price (in dollars per share)										$ 1.20
Public Offering | Common Stock
Issuance of stock (in shares)							31,489,429
Share price (in dollars per share)							$ 0.35
Public Offering | Preferred Stock
Issuance of stock (in shares)							1,515
Public Offering | Warrant
Number of shares of common stock subject to warrant (in shares)							3,246,429
Warrants exercise price (in dollars per share)							$ 0.35
Public Offering | Series A Convertible Preferred Stock
Share price (in dollars per share)							$ 1,000
Private Placement
Issuance of stock (in shares)				5,500,000	6,410,258			1,550,000	2,423,077
Net proceeds from the sale of common stock				$ 1,900,000	$ 4,400,000			$ 800,000	$ 1,300,000
Share price (in dollars per share)				$ 0.36	$ 0.78			$ 0.60	$ 0.65
Percentage of securities offered								50.00%
Number of shares of common stock subject to warrant (in shares)					3,365,385			1,286,501
Warrants exercise price (in dollars per share)					$ 0.90			$ 0.75
Warrants, exercise term								18 months
Over-Allotment Option
Net proceeds from the sale of common stock						$ 400,000
Shares issued						1,390,676
Korea Investment Partners
Shares issued			290,000
Stock vested			96,667
Stock not expected to vest			193,333
Korea Investment Partners | Subscription Agreement | Common Stock
Shares issued			1,081,081
Share price (in dollars per share)			$ 1.85
Revenue from Violet			$ 2,000,000
Subscription agreement receivable			$ 2,000,000
Korea Investment Partners | Subscription Agreement | Common Stock | Minimum
Share price (in dollars per share)			$ 3.70
Franklin Advisers | Private Placement
Issuance of stock (in shares)											4,100,000
Net proceeds from the sale of common stock											$ 5,500,000
Share price (in dollars per share)											$ 1.43
Period within which securities can be purchased											5 years
Franklin Advisers | Private Placement | Maximum
Percentage of securities offered											20.00%

CONVERTIBLE REDEEMABLE PREFER31

CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - Preferred Stock & Warrants (Details) - USD ($)	Oct. 23, 2017	Nov. 28, 2016	Jul. 31, 2017	Apr. 30, 2017	Sep. 30, 2016	Aug. 31, 2016	Apr. 30, 2016	Oct. 31, 2017	Jan. 31, 2017	Nov. 30, 2016
Equity
Conversion of convertible notes payable to common stock (in shares)		1,926,711
Series A convertible preferred stock, shares authorized								10,000,000	10,000,000
Series A convertible preferred stock, shares issued								1,515	1,515
Proceeds from warrant exercises								$ 615,000
Public Offering
Equity
Share price (in dollars per share)							$ 1.195
Number of shares of common stock subject to warrant (in shares)							1,952,000			31,499,725
Warrants exercise price (in dollars per share)							$ 1.20
Issuance of common stock (in shares)							3,600,000
Private Placement
Equity
Share price (in dollars per share)			$ 0.36	$ 0.78	$ 0.60	$ 0.65
Number of shares of common stock subject to warrant (in shares)				3,365,385	1,286,501
Warrants exercise price (in dollars per share)				$ 0.90	$ 0.75
Issuance of common stock (in shares)			5,500,000	6,410,258	1,550,000	2,423,077
Warrant | Public Offering
Equity
Number of shares of common stock subject to warrant (in shares)										3,246,429
Warrants exercise price (in dollars per share)										$ 0.35
Warrants related to January 2014 agreement | Warrant
Equity
Warrants outstanding								289,505
Warrants exercise price (in dollars per share)								$ 1.85
Warrants related to May 2014 agreement | Warrant
Equity
Warrants outstanding								316,395
Warrants exercise price (in dollars per share)								$ 2.035
Warrants related to April to November 2014 financing | Warrant
Equity
Warrants outstanding								1,661,055
Warrants exercise price (in dollars per share)								$ 3.70
Warrants related to June 2015 financing | Warrant
Equity
Warrants outstanding								109,091
Warrants exercise price (in dollars per share)								$ 2.75
Warrants related to April 2016 financing | Warrant
Equity
Warrants outstanding								1,952,000
Warrants exercise price (in dollars per share)								$ 1.20
Warrants related to September 2016 financing | Warrant
Equity
Number of shares of common stock subject to warrant (in shares)					1,286,501
Warrants outstanding								1,286,501
Warrants exercise price (in dollars per share)					$ 0.75			$ 0.75
Dividend rate					0.00%
Risk-free rate					1.10%
Contractual term					5 years
Expected volatility					95.80%
Warrant liability					$ 566,000			$ 73,000
Warrants related to November 2016 financing | Warrant
Equity
Warrants outstanding								30,406,061
Warrants exercise price (in dollars per share)								$ 0.35
Warrants related to November 2016 financing, tranche two | Warrant
Equity
Warrants outstanding								895,450
Warrants exercise price (in dollars per share)								$ 0.44
Warrants related to November 2016 financing, tranche three | Warrant
Equity
Warrants outstanding								198,214
Warrants exercise price (in dollars per share)								$ 0.33
Warrants related to April 2017 financing | Warrant
Equity
Warrants outstanding								801,282
Warrants exercise price (in dollars per share)								$ 0.90
Warrants related to October 2017 financing | Warrant
Equity
Number of shares of common stock subject to warrant (in shares)	2,564,103
Warrants outstanding								3,846,152
Warrants exercise price (in dollars per share)	$ 0.24							$ 0.30
Incremental fair value of warrants	$ 151,000
Dividend rate	0.00%
Risk-free rate	2.03%
Contractual term	5 years
Expected volatility	83.90%
Common Stock | Warrants related to October 2017 financing | Warrant
Equity
Warrants outstanding	3,846,152
Warrants exercise price (in dollars per share)	$ 0.30
Series A Convertible Preferred Stock
Equity
Series A convertible preferred stock, shares authorized										10,000
Series A convertible preferred stock, shares issued										1,515
Conversion of preferred stock percentage										19.99%
Deemed dividend related to the beneficial conversion feature								$ 100,000
Series A Convertible Preferred Stock | Public Offering
Equity
Share price (in dollars per share)										$ 1,000

CONVERTIBLE REDEEMABLE PREFER32

CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - Equity Incentive Plan (Details) - 2016 Equity Incentive Plan - shares	9 Months Ended
	Oct. 31, 2017	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares reserved for issuance		24,000,000
Options
Share-based Compensation Arrangement by Share-based Payment Award
Expiration period	10 years
Minimum | Options
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	1 year
Maximum | Options
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period	4 years

CONVERTIBLE REDEEMABLE PREFER33

CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - Stock Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended	12 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Oct. 31, 2017	Jan. 31, 2017
Weighted Average Exercise Prices
Weighted-average grant date fair value (in dollars per share)				$ 0.56
Plans
Available for Grant
Available for grant, beginning	15,135,379	15,157,379	252,379	252,379
Shares authorized for issuance			20,000,000
Granted		(50,000)	(5,095,000)
Available for grant, ending	15,171,629	15,135,379	15,157,379	15,171,629	252,379
Shares
Outstanding, Beginning	11,480,829	11,560,829	6,465,829	6,465,829
Granted		50,000	5,095,000
Exercised		(40,000)
Outstanding, Ending	11,437,912	11,480,829	11,560,829	11,437,912	6,465,829
Vested and exercisable	3,686,313			3,686,313
Vested and expected to vest	10,449,205			10,449,205
Weighted Average Exercise Prices
Outstanding, Beginning	$ 0.75	$ 0.75	$ 0.77	$ 0.77
Granted		0.46	0.73
Exercised		0.25
Outstanding, Ending	0.75	$ 0.75	$ 0.75	0.75	$ 0.77
Granted		50,000	5,095,000
Vested and exercisable	0.88			0.88
Vested and expected to vest	$ 0.76			$ 0.76
Remaining Contractual Life
Outstanding	8 years 8 months 5 days	8 years 11 months 5 days	9 years 1 month 28 days		8 years 9 months 7 days
Vested and exercisable				7 years 6 months 18 days
Vested and expected to vest				8 years 7 months 17 days
Aggregate Intrinsic Value
Outstanding		$ 22	$ 2,062		$ 238
2014 Equity Incentive Plan
Available for Grant
Cancelled	6,667	62,000
Shares
Cancelled	(6,667)	(62,000)
Weighted Average Exercise Prices
Cancelled	$ 0.25	$ 1.62
2016 Equity Incentive Plan
Available for Grant
Cancelled	36,250	28,000
Shares
Cancelled	(36,250)	(28,000)
Weighted Average Exercise Prices
Cancelled	$ 0.65	$ 0.62
Outside of the 2016 Equity Incentive Plan
Shares
Outstanding, Ending	660,000			660,000
Vested and exercisable	327,291			327,291
Vested and expected to vest	627,620			627,620
Weighted Average Exercise Prices
Outstanding, Ending	$ 1.44			$ 1.44
Vested and exercisable	1.44			1.44
Vested and expected to vest	$ 1.44			$ 1.44
Remaining Contractual Life
Outstanding				7 years 11 months 19 days
Vested and exercisable				7 years 11 months 12 days
Vested and expected to vest				7 years 11 months 19 days
Outside of the 2016 Equity Incentive Plan | First anniversary
Available for Grant
Vesting percentage				25.00%
Outside of the 2016 Equity Incentive Plan | Subsequent to first anniversary
Available for Grant
Vesting percentage				2.083%

CONVERTIBLE REDEEMABLE PREFER34

CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - Range of Exercise Price (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Options Outstanding
Number Outstanding (in shares)	12,097,912		12,097,912
Weighted Average Remaining Contractual Life			8 years 7 months 21 days
Weighted Average Exercise Prices (in dollars per share)	$ 0.79		$ 0.79
Options Exercisable
Number Vested and Exercisable (in shares)	4,013,604		4,013,604
Weighted Average Exercise Prices (in dollars per share)	$ 0.93		$ 0.93
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures
Total intrinsic value of options exercised	$ 0	$ 26,000	$ 4,000	$ 65,000
$0.20 - $0.35
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Exercise prices, low end of range (in dollars per share)			$ 0.20
Exercise prices, high end of range (in dollars per share)			$ 0.35
Options Outstanding
Number Outstanding (in shares)	611,441		611,441
Weighted Average Remaining Contractual Life			5 years 11 months 12 days
Weighted Average Exercise Prices (in dollars per share)	$ 0.31		$ 0.31
Options Exercisable
Number Vested and Exercisable (in shares)	573,941		573,941
Weighted Average Exercise Prices (in dollars per share)	$ 0.32		$ 0.32
$0.36 - $0.65
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Exercise prices, low end of range (in dollars per share)			0.36
Exercise prices, high end of range (in dollars per share)			$ 0.65
Options Outstanding
Number Outstanding (in shares)	4,273,667		4,273,667
Weighted Average Remaining Contractual Life			8 years 10 months 13 days
Weighted Average Exercise Prices (in dollars per share)	$ 0.53		$ 0.53
Options Exercisable
Number Vested and Exercisable (in shares)	1,498,948		1,498,948
Weighted Average Exercise Prices (in dollars per share)	$ 0.58		$ 0.58
$0.66 - $1.09
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Exercise prices, low end of range (in dollars per share)			0.66
Exercise prices, high end of range (in dollars per share)			$ 1.09
Options Outstanding
Number Outstanding (in shares)	5,622,804		5,622,804
Weighted Average Remaining Contractual Life			9 years 1 month 13 days
Weighted Average Exercise Prices (in dollars per share)	$ 0.76		$ 0.76
Options Exercisable
Number Vested and Exercisable (in shares)	855,095		855,095
Weighted Average Exercise Prices (in dollars per share)	$ 0.84		$ 0.84
$1.10 - $1.85
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Exercise prices, low end of range (in dollars per share)			1.10
Exercise prices, high end of range (in dollars per share)			$ 1.85
Options Outstanding
Number Outstanding (in shares)	1,490,000		1,490,000
Weighted Average Remaining Contractual Life			7 years 4 months 10 days
Weighted Average Exercise Prices (in dollars per share)	$ 1.67		$ 1.67
Options Exercisable
Number Vested and Exercisable (in shares)	985,620		985,620
Weighted Average Exercise Prices (in dollars per share)	$ 1.69		$ 1.69
$1.86 - $3.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Exercise prices, low end of range (in dollars per share)			1.86
Exercise prices, high end of range (in dollars per share)			$ 3
Options Outstanding
Number Outstanding (in shares)	100,000		100,000
Weighted Average Remaining Contractual Life			7 years 6 months
Weighted Average Exercise Prices (in dollars per share)	$ 3		$ 3
Options Exercisable
Number Vested and Exercisable (in shares)	100,000		100,000
Weighted Average Exercise Prices (in dollars per share)	$ 3		$ 3

STOCK-BASED COMPENSATION - Expe

STOCK-BASED COMPENSATION - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Share-based Compensation
Stock-based compensation expense	$ 465	$ 347	$ 1,416	$ 1,044
Total compensation costs not yet recognized	3,700		$ 3,700
Average remaining amortization period for recognition of expense			2 years 9 months 29 days
Research and development
Share-based Compensation
Stock-based compensation expense	131	87	$ 397	292
Sales and marketing
Share-based Compensation
Stock-based compensation expense	98	65	289	247
General and administrative.
Share-based Compensation
Stock-based compensation expense	$ 236	$ 195	$ 730	$ 505

STOCK-BASED COMPENSATION - Assu

STOCK-BASED COMPENSATION - Assumptions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Grant date fair value of stock options granted			$ 0.56
Stock options exercised	$ 0	$ 26,000	$ 4,000	$ 65,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Expected volatility		96.80%	95.50%	96.80%
Expected term in years	5 years		6 years	5 years
Risk-free interest rate		1.12%	1.80%	1.12%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Expected volatility			96.80%	98.60%
Expected term in years	6 years		9 years 7 months 6 days	6 years 6 months
Risk-free interest rate		1.32%	2.35%	1.32%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	Oct. 31, 2017	Jan. 31, 2017
INCOME TAXES
Liability for unrecognized tax benefits	$ 0	$ 0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	Nov. 30, 2017	Oct. 31, 2017	Oct. 31, 2016
SUBSEQUENT EVENTS
Net proceeds from issuance of common stock, preferred stock and warrants		$ 6,355	$ 5,675
Subsequent event
SUBSEQUENT EVENTS
Beneficial ownership interest at election of purchaser (as a percentage)	9.99%
Subsequent event | Minimum
SUBSEQUENT EVENTS
Beneficial ownership interest if common stock issued (as a percentage)	4.99%
Subsequent event | Prefunded warrants
SUBSEQUENT EVENTS
Warrants exercise price (in dollars per share)	$ 0.001
Subsequent event | Common Stock
SUBSEQUENT EVENTS
Issuance of stock (in shares)	45,275,000
Subsequent event | Common Stock | Prefunded warrants and series A
SUBSEQUENT EVENTS
Number of common shares called by each warrant (in shares)	1
Subsequent event | Common Stock | Prefunded warrants and series B
SUBSEQUENT EVENTS
Number of common shares called by each warrant (in shares)	1
Subsequent event | Common Stock | Series A and series B
SUBSEQUENT EVENTS
Warrants exercise price (in dollars per share)	$ 0.15
Subsequent event | Warrant
SUBSEQUENT EVENTS
Net proceeds from issuance of common stock, preferred stock and warrants	$ 9,700
Subsequent event | Warrant | Series A Warrants
SUBSEQUENT EVENTS
Number of shares of common stock subject to warrant (in shares)	73,500,000
Warrants exercise price (in dollars per share)	$ 0.20
Warrants, expiration term	5 years
Subsequent event | Warrant | Series B Warrants
SUBSEQUENT EVENTS
Number of shares of common stock subject to warrant (in shares)	73,500,000
Warrants exercise price (in dollars per share)	$ 0.25
Warrants exercisable after number of trading days from a press release	21 days
Warrants exercisable after number of months from issuance	18 months
Subsequent event | Warrant | Prefunded warrants
SUBSEQUENT EVENTS
Number of shares of common stock subject to warrant (in shares)	28,225,000
Subsequent event | Warrant | Prefunded warrants, series A and series B
SUBSEQUENT EVENTS
Warrants exercise price (in dollars per share)	$ 0.1490