Corium International 10-Q 12 Feb 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Feb. 08, 2018
Document and Entity Information
Entity Registrant Name	Corium International, Inc.
Entity Central Index Key	1,594,337
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Trading Symbol	cori
Entity Common Stock, Shares Outstanding		36,123,945
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 45,230	$ 57,466
Accounts receivable	4,856	4,641
Unbilled accounts receivable	407	169
Inventories	2,526	2,300
Prepaid expenses and other current assets	1,263	982
Total current assets	54,282	65,558
Property and equipment, net	12,922	12,176
Intangible assets, net	7,149	7,117
TOTAL ASSETS	74,353	84,851
Current liabilities:
Accounts payable	7,712	3,978
Accrued expenses and other current liabilities	4,132	6,411
Long-term debt, current portion	26,298	13,172
Recall liability, current portion	221	114
Deferred contract revenues, current portion	390	626
Total current liabilities	38,753	24,301
Long-term debt, net of current portion	25,994	39,027
Recall liability, net of current portion	1,698	1,811
Deferred contract revenues, net of current portion	3,500	3,500
Total liabilities	69,945	68,639
Commitments and contingencies
Stockholders’ equity:
Common stock, par value of $0.001 per share, 150,000,000 shares authorized; 36,117,913 and 36,004,602 shares issued and outstanding as of December 31, 2017 and September 30, 2017	36	36
Additional paid-in capital	232,945	231,457
Accumulated deficit	(228,573)	(215,281)
Total stockholders’ equity	4,408	16,212
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 74,353	$ 84,851

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Sep. 30, 2017
CONDENSED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	36,117,913	36,004,602
Common stock, shares outstanding	36,117,913	36,004,602

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Product revenues	$ 5,921	$ 5,738
Contract research and development revenues	3,154	963
Other revenues	240	267
Total revenues	9,315	6,968
Costs and operating expenses:
Cost of product revenues	3,284	4,081
Cost of contract research and development revenues	3,605	2,120
Research and development expenses	10,238	5,998
General and administrative expenses	3,300	3,005
Amortization of intangible assets	177	177
Total costs and operating expenses	20,604	15,381
Loss from operations	(11,289)	(8,413)
Interest income	122	28
Interest expense	(2,123)	(2,042)
Loss before income taxes	(13,290)	(10,427)
Income tax expense	2	2
Net loss and comprehensive loss	$ (13,292)	$ (10,429)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.37)	$ (0.46)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	36,073,008	22,453,172

CONDENSED STATEMENT OF STOCKHOL

CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Dec. 31, 2017 - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2017	$ 36	$ 231,457	$ (215,281)	$ 16,212
Balance (in shares) at Sep. 30, 2017	36,004,602
Increase (Decrease) in Stockholders' Equity (Deficit)
Issuance of common stock under Employee Stock Purchase Plan		213		213
Issuance of common stock under Employee Stock Purchase Plan (in shares)	64,547
Issuance of common stock upon exercise of stock options		140		140
Issuance of common stock upon exercise of stock options (in shares)	48,764
Stock-based compensation expense		1,135		1,135
Net loss and comprehensive loss			(13,292)	(13,292)
Balance at Dec. 31, 2017	$ 36	$ 232,945	$ (228,573)	$ 4,408
Balance (in shares) at Dec. 31, 2017	36,117,913

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss and comprehensive loss	$ (13,292)	$ (10,429)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization of property and equipment	225	318
Amortization of intangible assets	177	177
Noncash amortized debt issue costs on long-term debt and capital leases	100	68
Noncash amortized discount on long-term debt and capital leases	4	4
Stock-based compensation expense	1,135	870
Issuance of payment-in-kind notes in lieu of cash interest payments		458
Changes in operating assets and liabilities:
Accounts receivable	(215)	2,172
Unbilled accounts receivable	(238)	(211)
Inventories	(226)	492
Prepaid expenses and other current assets	(281)	(94)
Accounts payable	3,415	1,053
Accrued expenses and other current liabilities	(2,279)	(742)
Deferred contract revenues	(236)	(67)
Recall liability	(6)	(144)
Net cash used by operating activities	(11,717)	(6,075)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(652)	(827)
Payments for patents and licensing rights	(209)	(212)
Net cash used by investing activities	(861)	(1,039)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt	(11)	(19)
Principal payments on capital lease obligations		(73)
Proceeds from exercise of stock options	140	222
Proceeds from issuance of common stock under Employee Stock Purchase Plan	213	226
Net cash provided by financing activities	342	356
NET DECREASE IN CASH AND CASH EQUIVALENTS	(12,236)	(6,758)
CASH AND CASH EQUIVALENTS - Beginning of period	57,466	39,833
CASH AND CASH EQUIVALENTS - End of period	45,230	33,075
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	2,020	1,512
Cash paid for income taxes		1
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment purchases included in accounts payable	$ 349	219
Unpaid transaction costs associated with issuance of long-term debt		$ 544

Organization, Description of Bu

Organization, Description of Business, and Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2017
Organization, Description of Business, and Summary of Significant Accounting Policies
Organization, Description of Business, and Summary of Significant Accounting Policies	CORIUM INTERNATIONAL, INC. Notes to the Condensed Financial Statements 1. Organization, Description of Business and Summary of Significant Accounting Policies Organization Corium International, Inc., a Delaware corporation (the “Company”), is a commercial-stage biopharmaceutical company focused on the development, manufacture and commercialization of specialty pharmaceutical products that leverage the Company’s broad experience with advanced transdermal and transmucosal delivery systems. The Company refers to its Transdermal Delivery Systems as “TDS.” In the normal course of business, the Company enters into collaborative agreements with partners to develop and manufacture products based on the Company’s drug delivery technologies and product development expertise. Revenues consist of net sales of products manufactured, royalties and profit-sharing payments based on sales of such products by partners, and product development fees for research and development activities under collaboration agreements with partners. The Company is also engaged in the research and development of its own proprietary transdermal drug delivery products. The Company’s fiscal year ends on September 30. References to “fiscal” refer to the years ended September 30. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and follow the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The interim balance sheet as of December 31, 2017, statements of operations and comprehensive loss for the three months ended December 31, 2017 and 2016, statement of stockholders’ equity for the three months ended December 31, 2017, and statements of cash flows for the three months ended December 31, 2017 and 2016 are all unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s financial position as of December 31, 2017, its results of operations for the three months ended December 31, 2017 and 2016, and its cash flows for the three months ended December 31, 2017 and 2016. The financial data and the other financial information contained in these notes to the financial statements related to the three-month periods are also unaudited. The results of operations for the three months ended December 31, 2017 are not necessarily indicative of the results to be expected for the year ending September 30, 2018 or for any future annual or interim period. The balance sheet as of September 30, 2017 has been derived from the audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended September 30, 2017 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 29, 2017. There have been no material changes to the significant accounting policies or recent accounting pronouncements previously disclosed in the Company’s audited financial statements for the year ended September 30, 2017. Liquidity With the exception of fiscal 2013, the Company has incurred losses from operations since fiscal 2006 and has an accumulated deficit of $228.6 million as of December 31, 2017. The Company has financed its operations primarily through the proceeds from the sale of equity securities, and various debt and capital lease financings. The Company believes that its existing cash and cash equivalents will not be sufficient to fund operations in compliance with its debt covenants as currently planned through the next 12 months, which raises substantial doubt about the Company’s ability to continue as a going concern. The Company has based this belief on assumptions and estimates that may prove to be wrong, and the Company could spend its available financial resources less or more rapidly than currently expected. The Company will continue to require additional sources of cash to develop product candidates and to fund development and commercialization operations. Management intends to seek additional capital through collaborative or other funding arrangements with partners, equity and/or debt financings, or through other sources of financing. The Company is also pursuing alternatives to its current debt covenants, including refinancing the existing debt. In the event that additional financing is required from outside sources, the Company may not be able to raise such financing on terms acceptable to the Company or at all. If the Company is unable to raise additional capital when required or on acceptable terms, the Company may be required to significantly delay, scale back or discontinue one or more of the product development programs or commercialization efforts or other aspects of the Company’s business plans, and its business, operating results and financial condition would be adversely affected . The Company is currently in compliance with the covenants under the Company’s term loan agreement with CRG, a structured debt and equity investment management firm. However, the Company anticipates that, based on its current operating plan for products and services currently under contract, and without securing additional sources of external funding, its current cash and cash equivalent balances will not be sufficient to maintain compliance with the minimum liquidity financial covenant through the next 12 months. Additionally, the Company anticipates that these revenues will not be sufficient to maintain compliance with the minimum annual revenue covenant of $50.0 million for the 12 months ending June 30, 2018. Failure to meet either covenant would be considered an event of default on the Company’s debt obligation, and could result in the acceleration of the Company’s existing indebtedness, causing the outstanding principal of approximately $52.5 million, plus an early prepayment premium and an additional fee, to be immediately due and payable to CRG. As of December 31, 2017, the prepayment premium was 7.5% and the additional fee was 1.0%. Effective January 1, 2018, the prepayment premium was 3.25%. The Company may not have sufficient cash and cash equivalents to repay all of the outstanding debt in full if repayment of such debt were accelerated. Due to these uncertainties, there is substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed financial statements as of December 31, 2017 have been prepared under the assumption that the Company will continue as a going concern for the next 12 months. The Company’s ability to continue as a going concern is dependent upon its uncertain ability to secure new sources of revenue, obtain additional equity and/or debt financing or refinancing, generate operating efficiencies, reduce expenditures and amend or obtain a waiver on the financial covenants of the existing term loan agreement with CRG. The unaudited condensed financial statements as of December 31, 2017 do not include any adjustments that might result from the outcome of this uncertainty. Use of Estimates Estimates and assumptions are required to be used by management in the preparation of financial statements in conformity with U.S. GAAP that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of operating revenues and operating expenses during the reporting period. Those estimates and assumptions affect revenue recognition, deferred revenues, impairment of long-lived assets, determination of fair value of stock-based awards and other debt- and equity-related instruments, accounting for clinical trial expenses and accounting for income taxes. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with a single domestic financial institution that is well capitalized. The Company provides credit, in the normal course of business, to its partners and performs credit evaluations of such partners. For the three months ended December 31, 2017, three partners accounted for 98% of the Company’s revenues and three partners accounted for 97% of accounts receivable as of December 31, 2017. For the three months ended December 31, 2016, three partners accounted for 93% of the Company’s revenues. As of September 30, 2017, three partners accounted for 88% of accounts receivable. Comprehensive Income (Loss) For the three months ended December 31, 2017 and 2016, the Company did not recognize any other comprehensive income (loss) and, therefore, the net loss and comprehensive loss was the same for all periods presented. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers, (Topic 606)” (“ASU 2014-09”). This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2017 for public companies and permits the use of either the retrospective or modified retrospective method, with early adoption permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” which further clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” which addresses narrow-scope improvements to the guidance on collectibility, noncash consideration, and completed contracts at transition and provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” which clarifies areas for correction or improvement in the Codification. The Company anticipates adopting the new revenue recognition standard on the effective date of October 1, 2018, utilizing the modified retrospective method. The Company is in the process of evaluating the impact the adoption of this standard will have on its financial statements and has performed an initial review of its major contracts with partners. Based on the initial reviews, the Company believes the adoption of the new standard will not have a significant quantitative impact on product revenues, as the timing of revenue recognition for product sales, profit sharing and royalties is not expected to significantly change. For the Company’s collaboration and partner arrangements, the consideration the Company is eligible to receive under these arrangements typically consists of nonrefundable upfront payments, reimbursement of research and development costs and milestone payments. The Company believes the adoption of the new standard will not have a significant quantitative impact on the revenue recognition of the reimbursement of research and development costs as the timing of the revenue recognition is not expected to significantly change. The Company continues to review the impact that this new standard will have on the timing of recognition for nonrefundable upfront payments and milestone payments as well as on its financial statement disclosures and has not made a determination on the impact to its financial statements. The Company is evaluating changes to its accounting processes, internal controls and disclosures to support the new standard. In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This ASU applies to inventory that is measured using first-in, first-out or average cost. Inventory within the scope of this update is required to be recorded at the lower of cost or net realizable value, which is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This ASU is effective prospectively for annual reporting periods beginning after December 15, 2016, and interim periods thereafter; early adoption is permitted. The Company adopted the provision of this ASU effective October 1, 2017 and the adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU 2016-02 are effective for annual reporting periods beginning after December 15, 2018; early adoption is permitted. The provisions of this ASU are to be applied using a modified retrospective approach. The Company is evaluating the effect that this ASU will have on the Company’s future financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 modifies U.S. GAAP by requiring, among other things, the following: (1) all excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit on the income statement (excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period); (2) excess tax benefits are to be classified along with other income tax cash flows as an operating activity in the statement of cash flows; (3) an entity can still follow the current U.S. GAAP practice of making an entity-wide accounting policy election to estimate the number of awards that are expected to vest or may instead account for forfeitures when they occur; and (4) classification of cash paid by an employer to the taxing authorities when directly withholding shares for tax withholding purposes as a financing activity in the statement of cash flows. The Company adopted the provisions of this ASU effective October 1, 2017. The Company has elected to continue to estimate expected forfeitures and the adoption of the remaining provisions in the ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718) – Scope of Modification Accounting”. This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification, and provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all three of the following conditions are met: (1) The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. (2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. (3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This ASU is effective for annual periods beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s future financial position, results of operations or cash flows.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2017
Fair Value Measurements
Fair Value Measurements	2. Fair Value Measurements Financial assets and liabilities are recorded at fair value. Except as noted below, the carrying values of the Company’s financial instruments, including cash equivalents, accounts receivable, and accounts payable, approximated their fair values due to the short period of time to maturity or repayment. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset, or an exit price that would be paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level I —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level II —Inputs that are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted 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 related assets or liabilities; and Level III —Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. The Company did not have any transfers between Levels I, II and III of the fair value hierarchy during the three months ended December 31, 2017. The Company’s policy is to determine the need for transfers between levels at the end of the reporting period when circumstances in the underlying valuation criteria are evaluated for changes requiring transfer between levels. The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows (in thousands): As of December 31, 2017 Level I Level II Level III Total Financial Assets: Money market funds $ 45,424 $ — $ — $ 45,424 As of September 30, 2017 Level I Level II Level III Total Financial Assets: Money market funds $ 57,928 $ — $ — $ 57,928 The Company did not have Level III liabilities as of December 31, 2017 and September 30, 2017. The carrying values of the Company’s long-term debt reflects the principal amount, adjusted for any unamortized debt issuance costs and discount. The following financial liabilities have carrying values which differ from their fair value as estimated by the Company based on market quotes for instruments with similar terms and remaining maturities (in thousands): As of December 31, 2017 Carrying Fair Value Value Difference Long-term debt $ 52,292 $ 55,350 $ 3,058 As of September 30, 2017 Carrying Fair Value Value Difference Long-term debt $ 52,199 $ 55,888 $ 3,689

Inventories

Inventories	3 Months Ended
	Dec. 31, 2017
Inventories
Inventories	3. Inventories Inventories consist of the following (in thousands): As of December 31, As of September 30, 2017 2017 Raw materials $ 1,760 $ 1,683 Work in process 479 264 Finished goods 287 353 Total inventories $ 2,526 $ 2,300

Long-Term Debt

Long-Term Debt	3 Months Ended
	Dec. 31, 2017
Long-Term Debt.
Long-Term Debt	4. Long-Term Debt Outstanding long-term debt consists of the following (dollars in thousands): As of December 31, As of September 30, 2017 2017 Term loan agreement expiring June 30, 2019, less unamortized issuance costs of $597 and $697 and unamortized discount of $23 and $27 as of December 31, 2017 and September 30, 2017. See terms of the agreement below. $ 51,883 $ 51,779 Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $6 at an interest rate of 7% and is due November 2024 409 420 Total 52,292 52,199 Less current portion 26,298 13,172 Long-term portion $ 25,994 $ 39,027 On July 13, 2012, the Company completed a $35.0 million term loan agreement with CRG, a structured debt and equity investment management firm. In August 2012 and December 2012, the Company drew down $29.0 million and $6.0 million under this agreement. On November 14, 2014, the agreement was amended to, among other things, increase the principal amount available under the term loan by $10.0 million, extend the interest-only period to June 30, 2018, and extend the maturity from June 30, 2017 to June 30, 2019. The amended agreement provides for a maximum borrowing of $45.0 million, excluding PIK notes, as defined below. The amended agreement requires interest to be paid quarterly at a simple annual rate of 15%, and all outstanding principal be repaid in four equal quarterly payments beginning on June 30, 2018, with interest continuing to accrue on the unpaid principal at a simple annual rate of 15%. In addition, the amended agreement contains a provision whereby the Company can, at each quarterly payment due date prior to June 30, 2018, choose to convert that portion of each quarterly interest obligation equal to 3.5% of the then-outstanding principal into additional notes (payment-in-kind (“PIK”) notes). Amounts outstanding under the term loan agreement are collateralized by all of the Company’s assets. The amended agreement also provides for a prepayment premium, the amount of which varies with the date on which prepayment is made, if the Company chooses to repay principal prior to June 30, 2018, or upon other specified events, including a change of control. On December 4, 2014, the Company borrowed the remaining $10.0 million of principal provided for in the amended agreement. As of December 31, 2017 and September 30, 2017, the Company had converted $7.5 million of interest into PIK notes, each of which added to the then-outstanding principal, and is included in the principal balances shown as of those dates. As of December 31, 2017, the principal amount outstanding under the term loan agreement, including all PIK notes, was $52.5 million. From January 1, 2018 through December 31, 2018, the prepayment premium will be equal to 3.25% of the aggregate value of the principal and PIK notes outstanding at the time of prepayment. For prepayments on or after January 1, 2019, there is no prepayment premium. The term loan agreement was amended in December 2016 to modify the financial covenants for minimum annual revenues (beginning with the 12 months ended June 30, 2017) in exchange for a fee equal to 1.0% of the aggregate principal amount of all loans and PIKs advanced by CRG to the Company under the term loan agreement. This fee will be due upon the loan maturity date of June 30, 2019 or upon the earlier acceleration of the loan pursuant to its terms. Based on the current loan balance and projected PIK borrowings, this fee is expected to be approximately $0.5 million. The Company has been in continuous compliance with the financial covenants since the inception of the loan.

Collaboration and Partner Arran

Collaboration and Partner Arrangements	3 Months Ended
	Dec. 31, 2017
Collaboration and Partner Arrangements.
Collaboration and Partner Arrangements	5. Collaboration and Partner Arrangements The Company has recognized the following revenues from its collaboration and partner agreements (in thousands): Three Months Ended December 31, 2017 2016 Mayne $ 2,032 $ 1,407 Par — 363 P&G 4,815 4,021 Agile 2,323 1,078 Other 145 99 Total revenues $ 9,315 $ 6,968 Included in total revenues above is profit sharing, which totaled $0.3 million for the three months ended December 31, 2017, compared to $0.4 million for the corresponding period in fiscal 2017.

Warrants

Warrants	3 Months Ended
	Dec. 31, 2017
Warrants
Warrants	6. Warrants The Company issued warrants to purchase shares of the Company's capital stock as part of several transactions occurring from fiscal 2008 through fiscal 2013. The warrants were recorded as equity instruments at the date of their issuances based on the terms of the warrants. As of December 31, 2017 and September 30, 2017, warrants to purchase 51,386 shares of common stock were outstanding, with a weighted average exercise price of $9.26 per share. All of the common stock warrants are exercisable at any time up to ten years from issuance. These warrants expire at various dates between December 2020 and November 2021. The fair value of these warrants was recorded in stockholders’ equity upon issuance.

Convertible Preferred Stock, Co

Convertible Preferred Stock, Common Stock and Stockholders' Equity	3 Months Ended
	Dec. 31, 2017
Convertible Preferred Stock, Common Stock and Stockholders' Equity - Convertible Preferred Stock
Convertible Preferred Stock, Common Stock and Stockholders' Equity	7. Convertible Preferred Stock, Common Stock and Stockholders' Equity Convertible Preferred Stock The Company was authorized to issue up to 5.0 million shares of preferred stock as of December 31, 2017 and September 30, 2017 with a par value of $0.001 per share. No preferred stock was outstanding as of those dates. Common Stock The Company was authorized to issue up to 150.0 million shares of common stock as of December 31, 2017 and September 30, 2017 with a par value of $0.001 per share. As of December 31, 2017, there were 36,117,913 shares of common stock outstanding and as of September 30, 2017, there were 36,004,602 shares of common stock outstanding. Controlled Equity Offering In December 2015, the Company entered into a Controlled Equity Offering SM Sales Agreement with Cantor Fitzgerald & Co., as agent (“Cantor Fitzgerald”), pursuant to which the Company may offer and sell, from time to time through Cantor Fitzgerald, shares of its common stock, par value $0.001 per share, with aggregate proceeds of up to $20.0 million. The offer and sale of these shares will be made pursuant to a shelf registration statement on Form S-3 and the related prospectus (File No. 333-204025) filed by the Company with the SEC on May 8, 2015 and declared effective by the SEC on May 21, 2015, as supplemented by a prospectus supplement dated and filed with the SEC on December 30, 2015. The Company will pay Cantor Fitzgerald a commission of 3.0% of the aggregate gross proceeds from any shares of common stock sold by Cantor Fitzgerald. The Company has not sold any shares of common stock under this sales agreement.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2017
Stock-Based Compensation
Stock-Based Compensation	8. Stock-Based Compensation Equity Incentive Plans As of December 31, 2017 and September 30, 2017, the Company had three equity incentive plans, all of which are sponsored by the Company. On March 19, 2014, the Company’s board of directors approved the adoption of the 2014 Equity Incentive Plan (the "2014 Plan"), which is the only plan under which the Company can grant new awards. Under the 2014 Plan, the Company had initially reserved a total of 1.0 million shares of common stock plus the remaining unissued shares under the Company's 2012 Equity Incentive Plan (the "2012 Plan"), which was adopted in November 2012 and was replaced by the 2014 Plan. The 2014 Plan provides for the grant of incentive stock options (ISOs), nonstatutory stock options (NSOs), stock appreciation rights, restricted stock awards, restricted stock unit awards, stock bonus awards, performance-based stock awards, and other forms of equity compensation, all of which may be granted to employees (including officers), non-employee directors and consultants of the Company. The Company also sponsored the 2002 Stock Option Plan that expired in 2012. The term “Corium Plans” refers to the 2014 Plan, the 2012 Plan and the 2002 Stock Option Plan. On January 1 of each year during the ten-year term of the 2014 Plan, the number of shares of common stock issuable under the 2014 Plan will be automatically increased by 4% of the number of shares of common stock outstanding as of the preceding December 31, unless a lesser number of shares is agreed to by the Company’s board of directors. On January 10, 2017 and January 11, 2016, the Company’s board of directors authorized an increase of 902,298 and 888,776 shares to be added to the total number of shares of common stock issuable under the 2014 Plan. As of December 31, 2017 and September 30, 2017, the Company had reserved 5,012,065 and 5,060,829 shares of common stock for issuance pursuant to the 2014 Plan. As of December 31, 2017 and September 30, 2017, the Company had 258,964 and 1,129,232 shares of common stock available for issuance pursuant to the 2014 Plan. Stock Options The exercise price of each stock option granted under the Corium Plans is required to be no less than the fair market value of the Company’s common stock on the date of the grant. The maximum term of stock options granted under the Corium Plans is ten years and the vesting period is typically four years. A summary of stock option activity under the Corium Plans during the three months ended December 31, 2017 is as follows: Weighted Weighted Stock Average Remaining Aggregate Options Exercise Contractual Intrinsic Value Outstanding Price Life (Years) (In thousands) Balance - September 30, 2017 3,787,222 $ 4.85 6.84 $ 23,819 Options granted 803,650 $ 11.59 Options exercised (48,764) $ 2.87 Options forfeited / cancelled (2,937) $ 5.02 Options expired (445) $ 2.22 Balance - December 31, 2017 4,538,726 $ 6.06 7.23 $ 18,060 Options exercisable - December 31, 2017 2,739,351 $ 4.54 6.04 $ 14,137 Options vested and expected to vest - December 31, 2017 4,362,537 $ 5.96 7.15 $ 17,690 All outstanding stock options under the Corium Plans as of December 31, 2017 have an exercise price between $2.12 and $14.12 per share. The weighted-average fair value of the stock options granted for the three months ended December 31, 2017 were estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended December 31, 2017 Expected term (in years) - Risk-free interest rate % - % Expected volatility % - % Expected dividend rate % Expected Term — The expected term represents the period that the stock-based awards are expected to be outstanding before exercise or cancellation. As the Company's historical share exercise experience has not yet provided a reasonable basis upon which to estimate expected term because of a lack of sufficient data points, the Company estimated the expected term by using the midpoint between the vesting commencement date and the contractual expiration period of the stock-based awards. Risk-Free Interest Rate — The risk-free interest rate is based on the constant maturity yields of U.S. Treasury notes with remaining maturities similar to the expected term. Expected Volatility — Because the Company has insufficient information on the volatility of its common stock due to limited historical data regarding the volatility of its common stock, the expected volatility used is based on the volatility of a group of comparable publicly-traded companies. In evaluating comparability, the Company considered factors such as industry, stage of life cycle and size. The Company will continue to analyze the historical stock price volatility and term assumptions as more historical data for the Company's common stock becomes available. Expected Dividend Rate — The Company has never paid any dividends, does not plan to pay dividends in the foreseeable future, and, therefore, uses an expected dividend rate of zero in the valuation model. Restricted Stock Unit Awards The fair value of restricted stock unit awards is determined on the grant date based on the fair market value of the Company’s common stock on the date of the grant. The restricted stock unit awards granted under the 2014 Plan have a maximum term of ten years and typically vest over a four-year period. A summary of restricted stock unit award activity under the Corium Plans during the three months ended December 31, 2017 is as follows: Weighted Average Number of Grant Date Shares Fair Value Nonvested - September 30, 2017 144,375 $ 6.44 Granted 70,000 $ 11.59 Vested and released — $ — Forfeited — $ — Nonvested - December 31, 2017 214,375 $ 8.12 2014 Employee Stock Purchase Plan On March 19, 2014, the Company's board of directors approved the adoption of the 2014 Employee Stock Purchase Plan (the "2014 ESPP"), with 310,000 shares initially reserved for issuance. The 2014 ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Internal Revenue Code of 1986 with the purpose of providing employees with an opportunity to purchase the Company's common stock through accumulated payroll deductions. On January 1 of each year during the ten-year term of the plan, the number of shares issuable under the 2014 ESPP will be automatically increased by 1% of the number of shares of common stock and common stock equivalents outstanding as of the preceding December 31, unless a lesser number of shares is agreed to by the Company’s board of directors. On January 10, 2017 and January 11, 2016, the Company’s board of directors reserved an additional 267,565 and 257,631 shares of common stock for issuance pursuant to the 2014 ESPP. No more than 4.0 million shares may be issued over the ten-year term of the 2014 ESPP without the consent of the Company's stockholders. Shares subject to purchase rights granted under the Company’s 2014 ESPP that terminate without having been exercised in full will not reduce the number of shares available for issuance under the Company’s 2014 ESPP. As of December 31, 2017 and September 30, 2017, there were 571,852 and 636,399 shares of common stock available for issuance pursuant to the 2014 ESPP. For the three months ended December 31, 2017, the Company recorded stock-based compensation expense related to the 2014 ESPP of $46,000, compared to $94,000 for the corresponding period in fiscal 2017. For the three months ended December 31, 2017 and 2016, the Company issued 64,547 and 69,886 shares of common stock to employees pursuant to the 2014 ESPP. The fair value of the purchase rights granted under the 2014 ESPP for the offering periods beginning May 20, 2016, November 20, 2016, May 20, 2017 and November 20, 2017 were estimated by applying the Black-Scholes option-pricing model to each of the four purchase periods in the offering period using the following assumptions : As of December 31, 2017 Fair value of common stock $ – $ Grant price $ – $ Expected term (in years) – Expected volatility % – % Risk-free interest rate % – % Expected dividend rate % Fair Value of Common Stock — The fair market value of the Company’s common stock on the first day of each offering period, or $3.79, $4.82, $6.54, and $10.95 for the offering periods commencing May 20, 2016, November 20, 2016, May 20, 2017 and November 20, 2017. Grant Price — 85% of the fair market value of the Company’s common stock on the first day of the offering period, or $3.22, $4.10, $5.56, and $9.31 for the offering periods commencing May 20, 2016, November 20, 2016, May 20, 2017 and November 20, 2017. Expected Term — The expected term is based on the end dates of the four purchase periods of each two year offering period, which are six, twelve, eighteen or twenty-four months from the commencement of each new offering period. Expected Volatility — The expected volatility is based on the historical volatility of the Company’s common stock over each of the expected terms. Risk-Free Interest Rate — The risk-free interest rate is based on the constant maturity yields of U.S. Treasury notes with remaining maturities similar to each expected term. Expected Dividend Rate — The Company has never paid any dividends, does not plan to pay dividends in the foreseeable future, and, therefore, uses an expected dividend rate of zero in the valuation model. Stock-Based Compensation Expense Employee stock-based compensation expense for the three months ended December 31, 2017 and 2016 is classified in the condensed statements of operations and comprehensive loss as follows (in thousands): Three Months Ended December 31, 2017 2016 Cost of product revenues $ 109 $ 102 Cost of contract research and development revenues 81 51 Research and development 220 151 General and administrative 725 566 Total stock-based compensation $ 1,135 $ 870 As of December 31, 2017, there was a total of $9.8 million of unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to unvested stock-based awards under the Corium Plans, which is expected to be recognized on a straight-line basis over a weighted-average period of approximately 2.9 years.

Product Recall Liability

Product Recall Liability	3 Months Ended
	Dec. 31, 2017
Product Recall Liability
Product Recall Liability	9. Product Recall Liability In fiscal 2008 and fiscal 2010, Actavis, Inc. (“Actavis”) issued two voluntary recalls of certain lots and strengths of Fentanyl TDS manufactured by the Company and sold and distributed at that time by Actavis in the United States. The Company and Actavis negotiated financial settlements for these two recalls, and the Company accrued amounts related to these settlements in fiscal 2009 and 2011. These recall liabilities were subsequently reduced through various mechanisms per the terms of the settlement agreements. In October 2012, the Company reached a revised settlement related to the two recalls, which provided for a total and combined remaining liability of $5.0 million as of the settlement date. The revised liability will be repaid through quarterly payments in arrears based on a percentage of the average of the total net revenues recorded by the Company in those prior periods related to Fentanyl TDS, and may be pre-paid by the Company in its discretion. These quarterly payments have been paid to Actavis since July 1, 2013. In April 2017, the Company and Actavis mutually agreed to extend the provision for quarterly payments through April 1, 2019, and agreed that, to the extent that the revised settlement liability has not been fully repaid as of April 30, 2019, the remaining liability, if any, will be converted into the most recent form of capital stock issued by the Company in connection with a financing, at the price per share of that financing. The revised liability does not accrue interest. During the three months ended December 31, 2017, the Company made an immaterial amount of settlement payments to Actavis compared to $0.1 million for the corresponding period in fiscal 2017. The outstanding balance of the recall liability was $1.9 million as of December 31, 2017 and September 30, 2017.

Net Loss and Net Loss per Share

Net Loss and Net Loss per Share Attributable to Common Stockholders	3 Months Ended
	Dec. 31, 2017
Net Loss and Net Loss per Share Attributable to Common Stockholders
Net Loss and Net Loss per Share Attributable to Common Stockholders	10. Net Loss and Net Loss per Share Attributable to Common Stockholders The following table sets forth the computation of the Company's basic and diluted net loss per share attributable to common stockholders during the three months ended December 31, 2017 and 2016 (in thousands, except share and per share data): Three Months Ended December 31, 2017 2016 Basic and diluted net loss per share Net loss attributable to common stockholders, basic and diluted $ (13,292) $ (10,429) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 36,073,008 22,453,172 Net loss per share attributable to common stockholders, basic and diluted $ (0.37) $ (0.46) The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Three Months Ended December 31, 2017 2016 Stock options to purchase common stock 4,538,726 4,037,737 Unvested restricted stock unit awards 214,375 110,000 Shares authorized under the 2014 ESPP 571,852 433,803 Common stock warrants 51,386 51,386

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2017
Income Taxes
Income Taxes	11. Income Taxes The Company did not record a provision for Federal income taxes for the three months ended December 31, 2017 because it expects to generate a net operating loss for the year ending September 30, 2018. The income tax expense of $2,000 for both the three months ended December 31, 2017 and 2016 represents minimum statutory payments due in the states in which the Company is subject to taxation. The Company’s deferred tax assets continue to be fully offset by a valuation allowance. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code and will affect the Company’s fiscal year ending September 31, 2018, including, but not limited to reducing the U.S. federal corporate tax rate from 35 percent to 21 percent and limitations on net operating losses (“NOLs”) generated after December 31, 2017. Section 15 of the Internal Revenue Code stipulates that the Company’s fiscal year ending September 31, 2018 will have a blended corporate tax rate of 24.53 percent, which is based on the applicable tax rates before and after the Tax Act and the number of days in the year. The SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The Company’s analysis of the impact of the Tax Act is incomplete, and the Company was not able to make reasonable estimates of the effects as of December 31, 2017. Therefore, the Company has not recorded any provisional adjustments. The Company expects the Tax Act will result in a decline in deferred tax assets as a result of the lower U.S. corporate tax rate, however, due to the existence of a full valuation allowance the impact on income tax expense will likely be immaterial.

Segment and Enterprise-Wide Inf

Segment and Enterprise-Wide Information	3 Months Ended
	Dec. 31, 2017
Segment and Enterprise-Wide Information
Segment and Enterprise-Wide Information	12. Segment and Enterprise-Wide Information The Company’s chief operating decision maker is its President and Chief Executive Officer. The President and Chief Executive Officer reviews the Company’s operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations or operating results for levels or components. Accordingly, the Company has a single reporting segment and operating unit structure. All of the Company’s revenues are derived from partners conducting their business involving the Company’s products and services primarily in North America and all long-lived assets are located in the United States.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2017
Subsequent Events
Subsequent Events	13. Subsequent Events On January 16, 2018, pursuant to the provisions of the 2014 Plan and the ESPP Plan, the board of directors authorized and approved the registration of 1,444,716 additional shares of the Company’s common stock subject to issuance by the Company under the 2014 Plan and 409,224 additional shares of the Company’s common stock subject to issuance by the Company under the 2014 ESPP.

Organization, Description of 20

Organization, Description of Business, and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2017
Organization, Description of Business, and Summary of Significant Accounting Policies
Organization	Organization Corium International, Inc., a Delaware corporation (the “Company”), is a commercial-stage biopharmaceutical company focused on the development, manufacture and commercialization of specialty pharmaceutical products that leverage the Company’s broad experience with advanced transdermal and transmucosal delivery systems. The Company refers to its Transdermal Delivery Systems as “TDS.” In the normal course of business, the Company enters into collaborative agreements with partners to develop and manufacture products based on the Company’s drug delivery technologies and product development expertise. Revenues consist of net sales of products manufactured, royalties and profit-sharing payments based on sales of such products by partners, and product development fees for research and development activities under collaboration agreements with partners. The Company is also engaged in the research and development of its own proprietary transdermal drug delivery products. The Company’s fiscal year ends on September 30. References to “fiscal” refer to the years ended September 30.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and follow the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The interim balance sheet as of December 31, 2017, statements of operations and comprehensive loss for the three months ended December 31, 2017 and 2016, statement of stockholders’ equity for the three months ended December 31, 2017, and statements of cash flows for the three months ended December 31, 2017 and 2016 are all unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s financial position as of December 31, 2017, its results of operations for the three months ended December 31, 2017 and 2016, and its cash flows for the three months ended December 31, 2017 and 2016. The financial data and the other financial information contained in these notes to the financial statements related to the three-month periods are also unaudited. The results of operations for the three months ended December 31, 2017 are not necessarily indicative of the results to be expected for the year ending September 30, 2018 or for any future annual or interim period. The balance sheet as of September 30, 2017 has been derived from the audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended September 30, 2017 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 29, 2017. There have been no material changes to the significant accounting policies or recent accounting pronouncements previously disclosed in the Company’s audited financial statements for the year ended September 30, 2017.
Liquidity	Liquidity With the exception of fiscal 2013, the Company has incurred losses from operations since fiscal 2006 and has an accumulated deficit of $228.6 million as of December 31, 2017. The Company has financed its operations primarily through the proceeds from the sale of equity securities, and various debt and capital lease financings. The Company believes that its existing cash and cash equivalents will not be sufficient to fund operations in compliance with its debt covenants as currently planned through the next 12 months, which raises substantial doubt about the Company’s ability to continue as a going concern. The Company has based this belief on assumptions and estimates that may prove to be wrong, and the Company could spend its available financial resources less or more rapidly than currently expected. The Company will continue to require additional sources of cash to develop product candidates and to fund development and commercialization operations. Management intends to seek additional capital through collaborative or other funding arrangements with partners, equity and/or debt financings, or through other sources of financing. The Company is also pursuing alternatives to its current debt covenants, including refinancing the existing debt. In the event that additional financing is required from outside sources, the Company may not be able to raise such financing on terms acceptable to the Company or at all. If the Company is unable to raise additional capital when required or on acceptable terms, the Company may be required to significantly delay, scale back or discontinue one or more of the product development programs or commercialization efforts or other aspects of the Company’s business plans, and its business, operating results and financial condition would be adversely affected . The Company is currently in compliance with the covenants under the Company’s term loan agreement with CRG, a structured debt and equity investment management firm. However, the Company anticipates that, based on its current operating plan for products and services currently under contract, and without securing additional sources of external funding, its current cash and cash equivalent balances will not be sufficient to maintain compliance with the minimum liquidity financial covenant through the next 12 months. Additionally, the Company anticipates that these revenues will not be sufficient to maintain compliance with the minimum annual revenue covenant of $50.0 million for the 12 months ending June 30, 2018. Failure to meet either covenant would be considered an event of default on the Company’s debt obligation, and could result in the acceleration of the Company’s existing indebtedness, causing the outstanding principal of approximately $52.5 million, plus an early prepayment premium and an additional fee, to be immediately due and payable to CRG. As of December 31, 2017, the prepayment premium was 7.5% and the additional fee was 1.0%. Effective January 1, 2018, the prepayment premium was 3.25%. The Company may not have sufficient cash and cash equivalents to repay all of the outstanding debt in full if repayment of such debt were accelerated. Due to these uncertainties, there is substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed financial statements as of December 31, 2017 have been prepared under the assumption that the Company will continue as a going concern for the next 12 months. The Company’s ability to continue as a going concern is dependent upon its uncertain ability to secure new sources of revenue, obtain additional equity and/or debt financing or refinancing, generate operating efficiencies, reduce expenditures and amend or obtain a waiver on the financial covenants of the existing term loan agreement with CRG. The unaudited condensed financial statements as of December 31, 2017 do not include any adjustments that might result from the outcome of this uncertainty.
Use of Estimates	Use of Estimates Estimates and assumptions are required to be used by management in the preparation of financial statements in conformity with U.S. GAAP that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of operating revenues and operating expenses during the reporting period. Those estimates and assumptions affect revenue recognition, deferred revenues, impairment of long-lived assets, determination of fair value of stock-based awards and other debt- and equity-related instruments, accounting for clinical trial expenses and accounting for income taxes. As future events and their effects cannot be determined with precision, actual results could differ from those estimates.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with a single domestic financial institution that is well capitalized. The Company provides credit, in the normal course of business, to its partners and performs credit evaluations of such partners. For the three months ended December 31, 2017, three partners accounted for 98% of the Company’s revenues and three partners accounted for 97% of accounts receivable as of December 31, 2017. For the three months ended December 31, 2016, three partners accounted for 93% of the Company’s revenues. As of September 30, 2017, three partners accounted for 88% of accounts receivable.
Comprehensive Income (Loss)	Comprehensive Income (Loss) For the three months ended December 31, 2017 and 2016, the Company did not recognize any other comprehensive income (loss) and, therefore, the net loss and comprehensive loss was the same for all periods presented.
Recent Account Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers, (Topic 606)” (“ASU 2014-09”). This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2017 for public companies and permits the use of either the retrospective or modified retrospective method, with early adoption permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” which further clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” which addresses narrow-scope improvements to the guidance on collectibility, noncash consideration, and completed contracts at transition and provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” which clarifies areas for correction or improvement in the Codification. The Company anticipates adopting the new revenue recognition standard on the effective date of October 1, 2018, utilizing the modified retrospective method. The Company is in the process of evaluating the impact the adoption of this standard will have on its financial statements and has performed an initial review of its major contracts with partners. Based on the initial reviews, the Company believes the adoption of the new standard will not have a significant quantitative impact on product revenues, as the timing of revenue recognition for product sales, profit sharing and royalties is not expected to significantly change. For the Company’s collaboration and partner arrangements, the consideration the Company is eligible to receive under these arrangements typically consists of nonrefundable upfront payments, reimbursement of research and development costs and milestone payments. The Company believes the adoption of the new standard will not have a significant quantitative impact on the revenue recognition of the reimbursement of research and development costs as the timing of the revenue recognition is not expected to significantly change. The Company continues to review the impact that this new standard will have on the timing of recognition for nonrefundable upfront payments and milestone payments as well as on its financial statement disclosures and has not made a determination on the impact to its financial statements. The Company is evaluating changes to its accounting processes, internal controls and disclosures to support the new standard. In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This ASU applies to inventory that is measured using first-in, first-out or average cost. Inventory within the scope of this update is required to be recorded at the lower of cost or net realizable value, which is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This ASU is effective prospectively for annual reporting periods beginning after December 15, 2016, and interim periods thereafter; early adoption is permitted. The Company adopted the provision of this ASU effective October 1, 2017 and the adoption of this ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU 2016-02 are effective for annual reporting periods beginning after December 15, 2018; early adoption is permitted. The provisions of this ASU are to be applied using a modified retrospective approach. The Company is evaluating the effect that this ASU will have on the Company’s future financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 modifies U.S. GAAP by requiring, among other things, the following: (1) all excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit on the income statement (excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period); (2) excess tax benefits are to be classified along with other income tax cash flows as an operating activity in the statement of cash flows; (3) an entity can still follow the current U.S. GAAP practice of making an entity-wide accounting policy election to estimate the number of awards that are expected to vest or may instead account for forfeitures when they occur; and (4) classification of cash paid by an employer to the taxing authorities when directly withholding shares for tax withholding purposes as a financing activity in the statement of cash flows. The Company adopted the provisions of this ASU effective October 1, 2017. The Company has elected to continue to estimate expected forfeitures and the adoption of the remaining provisions in the ASU did not have a material impact on the Company’s financial position, results of operations or cash flows. In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718) – Scope of Modification Accounting”. This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification, and provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all three of the following conditions are met: (1) The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. (2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. (3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This ASU is effective for annual periods beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s future financial position, results of operations or cash flows.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2017
Fair Value Measurements
Schedule of the Company's financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy	The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows (in thousands): As of December 31, 2017 Level I Level II Level III Total Financial Assets: Money market funds $ 45,424 $ — $ — $ 45,424 As of September 30, 2017 Level I Level II Level III Total Financial Assets: Money market funds $ 57,928 $ — $ — $ 57,928
Schedule of differences between carrying values and estimated fair value of financial instruments	The following financial liabilities have carrying values which differ from their fair value as estimated by the Company based on market quotes for instruments with similar terms and remaining maturities (in thousands): As of December 31, 2017 Carrying Fair Value Value Difference Long-term debt $ 52,292 $ 55,350 $ 3,058 As of September 30, 2017 Carrying Fair Value Value Difference Long-term debt $ 52,199 $ 55,888 $ 3,689

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2017
Inventories
Schedule of Inventories	Inventories consist of the following (in thousands): As of December 31, As of September 30, 2017 2017 Raw materials $ 1,760 $ 1,683 Work in process 479 264 Finished goods 287 353 Total inventories $ 2,526 $ 2,300

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Dec. 31, 2017
Long-Term Debt.
Schedule of the entity's outstanding debt	Outstanding long-term debt consists of the following (dollars in thousands): As of December 31, As of September 30, 2017 2017 Term loan agreement expiring June 30, 2019, less unamortized issuance costs of $597 and $697 and unamortized discount of $23 and $27 as of December 31, 2017 and September 30, 2017. See terms of the agreement below. $ 51,883 $ 51,779 Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $6 at an interest rate of 7% and is due November 2024 409 420 Total 52,292 52,199 Less current portion 26,298 13,172 Long-term portion $ 25,994 $ 39,027

Collaboration and Partner Arr24

Collaboration and Partner Arrangements (Tables)	3 Months Ended
	Dec. 31, 2017
Collaboration and Partner Arrangements.
Schedule of revenues from the entity's collaboration and partner agreements	The Company has recognized the following revenues from its collaboration and partner agreements (in thousands): Three Months Ended December 31, 2017 2016 Mayne $ 2,032 $ 1,407 Par — 363 P&G 4,815 4,021 Agile 2,323 1,078 Other 145 99 Total revenues $ 9,315 $ 6,968

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2017
Stock-Based Compensation
Summary of stock option activity	Weighted Weighted Stock Average Remaining Aggregate Options Exercise Contractual Intrinsic Value Outstanding Price Life (Years) (In thousands) Balance - September 30, 2017 3,787,222 $ 4.85 6.84 $ 23,819 Options granted 803,650 $ 11.59 Options exercised (48,764) $ 2.87 Options forfeited / cancelled (2,937) $ 5.02 Options expired (445) $ 2.22 Balance - December 31, 2017 4,538,726 $ 6.06 7.23 $ 18,060 Options exercisable - December 31, 2017 2,739,351 $ 4.54 6.04 $ 14,137 Options vested and expected to vest - December 31, 2017 4,362,537 $ 5.96 7.15 $ 17,690
Schedule of valuation assumptions used for stock options	Three Months Ended December 31, 2017 Expected term (in years) - Risk-free interest rate % - % Expected volatility % - % Expected dividend rate %
Schedule of restricted stock unit activity	Weighted Average Number of Grant Date Shares Fair Value Nonvested - September 30, 2017 144,375 $ 6.44 Granted 70,000 $ 11.59 Vested and released — $ — Forfeited — $ — Nonvested - December 31, 2017 214,375 $ 8.12
Schedule of valuation assumptions used for ESPP	As of December 31, 2017 Fair value of common stock $ – $ Grant price $ – $ Expected term (in years) – Expected volatility % – % Risk-free interest rate % – % Expected dividend rate %
Schedule of employee stock-based compensation expense classified in the statements of operations and comprehensive loss	Employee stock-based compensation expense for the three months ended December 31, 2017 and 2016 is classified in the condensed statements of operations and comprehensive loss as follows (in thousands): Three Months Ended December 31, 2017 2016 Cost of product revenues $ 109 $ 102 Cost of contract research and development revenues 81 51 Research and development 220 151 General and administrative 725 566 Total stock-based compensation $ 1,135 $ 870

Net Loss and Net Loss per Sha26

Net Loss and Net Loss per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Dec. 31, 2017
Net Loss and Net Loss per Share Attributable to Common Stockholders
Schedule of computation of the Company's basic and diluted net loss per share attributable to common stockholders	The following table sets forth the computation of the Company's basic and diluted net loss per share attributable to common stockholders during the three months ended December 31, 2017 and 2016 (in thousands, except share and per share data): Three Months Ended December 31, 2017 2016 Basic and diluted net loss per share Net loss attributable to common stockholders, basic and diluted $ (13,292) $ (10,429) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 36,073,008 22,453,172 Net loss per share attributable to common stockholders, basic and diluted $ (0.37) $ (0.46)
Schedule of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	Three Months Ended December 31, 2017 2016 Stock options to purchase common stock 4,538,726 4,037,737 Unvested restricted stock unit awards 214,375 110,000 Shares authorized under the 2014 ESPP 571,852 433,803 Common stock warrants 51,386 51,386

Organization, Description of 27

Organization, Description of Business and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)item	Jun. 30, 2018USD ($)	Sep. 30, 2017USD ($)item	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2018
Liquidity
Accumulated deficit	$ (228,573)			$ (215,281)
Prepayment premium on long term debt (as a percent)	7.50%						3.25%
Percentage fee (as a percent)	1.00%
Revenue Recognition
Royalties and profit sharing	$ 300	$ 400
Forecast
Liquidity
Minimum annual revenue covenant amount			$ 50,000
Prepayment premium on long term debt (as a percent)					0.00%
Term loan agreement expiring on June 30, 2019
Liquidity
Prepayment premium on long term debt (as a percent)							3.25%
Percentage fee (as a percent)		1.00%
Principal amount outstanding	$ 52,500
Term loan agreement expiring on June 30, 2019 | Forecast
Liquidity
Prepayment premium on long term debt (as a percent)						3.25%
Revenues. | Customer concentration | Three partners
Concentration of credit risk
Number of partners | item	3	3
Concentration risk percentage	98.00%	93.00%
Accounts receivable | Credit concentration | Three partners
Concentration of credit risk
Number of partners | item	3			3
Concentration risk percentage	97.00%			88.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - Money market funds - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Financial Assets
Total financial assets	$ 45,424	$ 57,928
Level I
Financial Assets
Total financial assets	$ 45,424	$ 57,928

Fair Value Measurements (Level

Fair Value Measurements (Level III Valuation) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Carrying Value
Fair value measurements
Long-term debt	$ 52,292	$ 52,199
Fair Value
Fair value measurements
Long-term debt	55,350	55,888
Difference
Fair value measurements
Long-term debt	$ 3,058	$ 3,689

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Inventories
Raw materials	$ 1,760	$ 1,683
Work in process	479	264
Finished goods	287	353
Total inventories	$ 2,526	$ 2,300

Long-Term Debt - Outstanding (D

Long-Term Debt - Outstanding (Details) $ in Thousands	Dec. 04, 2014USD ($)	Nov. 14, 2014USD ($)	Dec. 31, 2012USD ($)	Aug. 31, 2012USD ($)	Dec. 31, 2017USD ($)installment	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)installment	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2016	Jul. 13, 2012USD ($)
Long-term Debt
Carrying value of long-term debt					$ 52,292	$ 52,199	$ 52,199	$ 52,292
Less current portion					26,298	13,172	13,172	26,298
Long-term debt, net of current portion					$ 25,994	39,027	39,027	$ 25,994
Prepayment premium (as a percent)					7.50%			7.50%			3.25%
Percentage fee (as a percent)					1.00%			1.00%
Forecast
Long-term Debt
Prepayment premium (as a percent)									0.00%
Term loan agreement expiring on June 30, 2019
Long-term Debt
Carrying value of long-term debt					$ 51,883	51,779	51,779	$ 51,883
Unamortized issuance costs					597	697	697	597
Unamortized discount					$ 23	27	27	$ 23
Interest rate (as a percent)					15.00%			15.00%
Face amount		$ 45,000											$ 35,000
Increase in principal amount		$ 10,000
Amount drawn			$ 6,000	$ 29,000
Proceeds from issuance of long-term debt	$ 10,000
Number of quarterly installments for repayment of outstanding principal | installment					4			4
Percentage of cash payment the entity can defer by converting interest due into additional notes		3.50%
Principal amount outstanding					$ 52,500			$ 52,500
Prepayment premium (as a percent)											3.25%
Percentage fee (as a percent)												1.00%
Anticipated loan fee					500			500
Term loan agreement expiring on June 30, 2019 | Forecast
Long-term Debt
Prepayment premium (as a percent)										3.25%
Notes payable due in November 2024
Long-term Debt
Carrying value of long-term debt					409	420	$ 420	$ 409
Monthly payments of principal and interest					$ 6	$ 6
Interest rate (as a percent)					7.00%	7.00%	7.00%	7.00%
Pik notes
Long-term Debt
Portion of interest due converted into additional notes							$ 7,500	$ 7,500

Collaboration and Partner Arr32

Collaboration and Partner Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Collaboration and partner arrangements
Total revenues	$ 9,315	$ 6,968
Royalties and profit sharing	300	400
Mayne
Collaboration and partner arrangements
Total revenues	2,032	1,407
Par
Collaboration and partner arrangements
Total revenues		363
P&G
Collaboration and partner arrangements
Total revenues	4,815	4,021
Agile
Collaboration and partner arrangements
Total revenues	2,323	1,078
Other
Collaboration and partner arrangements
Total revenues	$ 145	$ 99

Warrants (Details)

Warrants (Details) - Common stock warrants - $ / shares	3 Months Ended
	Dec. 31, 2017	Sep. 30, 2017
Warrants
Warrants outstanding (in shares)	51,386	51,386
Weighted-average exercise price (in dollars per share)	$ 9.26	$ 9.26
Maximum
Warrants
Warrant term	10 years

Convertible Preferred Stock, 34

Convertible Preferred Stock, Common Stock and Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Dec. 31, 2015	Dec. 31, 2017	Sep. 30, 2017
Preferred Stock
Authorized preferred stock (in shares)		5,000,000	5,000,000
Preferred stock, par value (in dollars per share)		$ 0.001	$ 0.001
Preferred stock outstanding (in shares)		0	0
Common Stock
Common shares par value (in dollars per share)		$ 0.001	$ 0.001
Common stock, shares outstanding		36,117,913	36,004,602
Shares sold		36,117,913	36,004,602
Cantor Fitzgerald
Common Stock
Common shares par value (in dollars per share)	$ 0.001
Aggregate proceeds amount authorized from Controlled Equity Offering Sales Agreement	$ 20
Shares sold, commission percentage	3.00%
Shares sold		0

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options (Details) $ / shares in Units, $ in Thousands	Jan. 10, 2017shares	Jan. 11, 2016shares	Mar. 19, 2014shares	Dec. 31, 2017USD ($)plan$ / sharesshares	Dec. 31, 2016USD ($)	Sep. 30, 2017USD ($)plan$ / sharesshares
Stock-Based Compensation
Number of plans | plan				3		3
Allocated Share-based Compensation Expense | $				$ 1,135	$ 870
Stock options
Assumptions used in estimating weighted average fair value of the options granted
Risk-free interest rate, minimum				2.08%
Risk-free interest rate, maximum				2.24%
Expected volatility, minimum				68.00%
Expected volatility, maximum				73.00%
Expected dividend rate (as a percent)				0.00%
Stock options | Minimum
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)				5 years 3 months 7 days
Stock options | Maximum
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)				6 years 6 months 26 days
2014 Plan
Stock-Based Compensation
Term of the plan			10 years
Number of shares of common stock reserved under plan for issuance to employees			1,000,000
Maximum annual increase in number of shares issuable by the plan, as a percentage of shares outstanding as of the preceding December 31			4.00%
Additional shares authorized	902,298	888,776
Corium Plans
Stock-Based Compensation
Number of shares of common stock reserved under plan for issuance to employees				5,012,065		5,060,829
Shares of common stock available for grant				258,964		1,129,232
Corium Plans | Stock options
Stock-Based Compensation
Vesting period				4 years
Stock Options Outstanding
Balance at the beginning of the period (in shares)				3,787,222
Granted (in shares)				803,650
Options exercised (in shares)				(48,764)
Options forfeited / cancelled (in shares)				(2,937)
Options expired				(445)
Balance at the end of the period (in shares)				4,538,726		3,787,222
Options exercisable at the end of the period (in shares)				2,739,351
Options vested and expected to vest at the end of the period (in shares)				4,362,537
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares				$ 4.85
Options granted (in dollars per share) | $ / shares				11.59
Options exercised (in dollars per share) | $ / shares				2.87
Options forfeited / cancelled (in dollars per share) | $ / shares				5.02
Options expired | $ / shares				2.22
Balance at the end of the period (in dollars per share) | $ / shares				6.06		$ 4.85
Options exercisable at the end of the period (in dollars per share) | $ / shares				4.54
Options vested and expected to vest at the end of the period (in dollars per share) | $ / shares				$ 5.96
Weighted Average Remaining Contractual Life
Balance - Weighted Average Remaining Contractual Life				7 years 2 months 23 days		6 years 10 months 2 days
Options exercisable at the end of the period				6 years 15 days
Options vested and expected to vest at the end of the period				7 years 1 month 24 days
Aggregate Intrinsic Value
Balance - Aggregate Intrinsic Value | $				$ 18,060		$ 23,819
Options exercisable at the end of the period | $				14,137
Options vested and expected to vest at the end of the period | $				$ 17,690
Additional disclosures
Exercise price, minimum(in dollars per share) | $ / shares				$ 2.12
Exercise price, maximum(in dollars per share) | $ / shares				$ 14.12
Corium Plans | Stock options | Maximum
Stock-Based Compensation
Term of the plan				10 years

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit Awards (Details) - Restricted stock unit awards	3 Months Ended
	Dec. 31, 2017$ / sharesshares
Stock-Based Compensation
Vesting period	4 years
Maximum
Stock-Based Compensation
Term of the plan	10 years
Corium Plans
Number of Shares
Balance at the beginning of the period (in shares) | shares	144,375
Granted (in shares) | shares	70,000
Balance at the end of the period (in shares) | shares	214,375
Weighted Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 6.44
Granted (in dollars per share) | $ / shares	11.59
Balance at the end of the period (in dollars per share) | $ / shares	$ 8.12

Stock-Based Compensation - 2014

Stock-Based Compensation - 2014 Employee Stock Purchase Plan (Details)	Nov. 20, 2017$ / shares	May 20, 2017$ / shares	Jan. 10, 2017shares	Nov. 20, 2016$ / shares	May 20, 2016$ / shares	Jan. 11, 2016shares	Mar. 19, 2014shares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)shares	Nov. 20, 2017item$ / shares	Sep. 30, 2017shares
2014 Employee Stock Purchase Plan
Stock-based compensation | $								$ 1,135,000	$ 870,000
2014 Employee Stock Purchase Plan
2014 Employee Stock Purchase Plan
Term of the plan							10 years
Maximum annual increase in number of shares issuable by the plan, as a percentage of shares outstanding as of the preceding December 31							1.00%
Maximum number of shares to be issued over the term of the plan | shares							4,000,000
Number of shares of common stock reserved under plan for issuance to employees | shares							310,000	571,852			636,399
Stock-based compensation | $								$ 46,000	$ 94,000
Additional shares authorized | shares			267,565			257,631
Offering period								2 years
Number of purchase windows during each offering period | item										4
Purchase price of common stock of the lower of the fair market value of the Company's common stock (as a percent)								85.00%
Assumptions used in estimating weighted average fair value of the shares expected to be purchased
Fair value of common stock	$ 10.95	$ 6.54		$ 4.82	$ 3.79					$ 10.95
Grant Price	$ 9.31	$ 5.56		$ 4.10	$ 3.22
Expected volatility, minimum								56.00%
Expected volatility, maximum								87.00%
Risk-free interest rate, minimum								0.89%
Risk-free interest rate, maximum								1.77%
Expected dividend rate (as a percent)								0.00%
Expected term, window one (in months)								6 months
Expected term, window two (in months)								12 months
Expected term, window three (in months)								18 months
Expected term, window four (in months)								24 months
Shares issued during the period | shares								64,547	69,886
2014 Employee Stock Purchase Plan | Minimum
Assumptions used in estimating weighted average fair value of the shares expected to be purchased
Fair value of common stock								$ 3.79
Grant Price								$ 3.22
Expected term (in years)								6 months
2014 Employee Stock Purchase Plan | Maximum
Assumptions used in estimating weighted average fair value of the shares expected to be purchased
Fair value of common stock								$ 10.95
Grant Price								$ 9.31
Expected term (in years)								2 years

Stock-Based Compensation - St38

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Employee stock-based compensation expense
Stock-based compensation	$ 1,135	$ 870
Additional Disclosure
Unrecognized employee compensation cost, net of estimated forfeitures	$ 9,800
Weighted-average period over which unrecognized compensation cost is expected to be recognized	2 years 10 months 24 days
Cost of product revenues
Employee stock-based compensation expense
Stock-based compensation	$ 109	102
Cost of contract research and development revenues
Employee stock-based compensation expense
Stock-based compensation	81	51
Research and development
Employee stock-based compensation expense
Stock-based compensation	220	151
General and administrative
Employee stock-based compensation expense
Stock-based compensation	$ 725	$ 566

Product Recall Liability (Detai

Product Recall Liability (Details) $ in Millions	3 Months Ended	36 Months Ended
	Dec. 31, 2016USD ($)	Sep. 30, 2011item	Sep. 30, 2010item	Dec. 31, 2017USD ($)	Oct. 31, 2012USD ($)
Product recall liability
Recall liability | $				$ 1.9	$ 5
Actavis
Product recall liability
Payment of settlement liability | $	$ 0.1
Actavis
Product recall liability
Number of voluntary recalls of certain lots and strengths of Fentanyl TDS | item			2
Number of product recalls for which the company negotiated financial settlements | item		2

Net Loss and Net Loss per Sha40

Net Loss and Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Net loss attributable to common stockholders, basic and diluted	$ (13,292)	$ (10,429)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	36,073,008	22,453,172
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.37)	$ (0.46)
Stock options
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	4,538,726	4,037,737
Unvested restricted stock unit awards
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	214,375	110,000
Shares authorized under the 2014 ESPP
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	571,852	433,803
Common stock warrants
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	51,386	51,386

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2018
Income tax expense			$ 2	$ 2
Statutory federal rate (as a percent)	21.00%	35.00%
Forecast
Statutory federal rate (as a percent)					24.53%

Segment and Enterprise-Wide I42

Segment and Enterprise-Wide Information (Details)	3 Months Ended
	Dec. 31, 2017item
Segment and Enterprise-Wide Information
Number of business activities	1
Number of segment managers held accountable for operations or operating results for levels or components	0

Subsequent Events (Details)

Subsequent Events (Details) - shares	Jan. 16, 2018	Jan. 10, 2017	Jan. 11, 2016
2014 Plan
Subsequent events
Additional shares authorized		902,298	888,776
2014 Employee Stock Purchase Plan
Subsequent events
Additional shares authorized		267,565	257,631
Subsequent events | 2014 Plan
Subsequent events
Additional shares authorized	1,444,716
Subsequent events | 2014 Employee Stock Purchase Plan
Subsequent events
Additional shares authorized	409,224