Aptevo Therapeutics (APVO) 10-Q 13 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 13, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	APVO
Entity Registrant Name	APTEVO THERAPEUTICS INC.
Entity Central Index Key	0001671584
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Extended Transition Period	true
Entity Shell Company	false
Document Transition Report	false
Document Quarterly Report	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		3,232,811
Title of 12(b) Security	Common Stock, $0.001 par value per share
Security Exchange Name	NASDAQ
Entity Address, Address Line One	2401 4th Avenue
Entity Address, Address Line Two	Suite 1050
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98121
City Area Code	206
Local Phone Number	838-0500
Entity Incorporation, State or Country Code	DE
Entity Current Reporting Status	Yes
Entity Tax Identification Number	81-1567056
Entity File Number	001-37746

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 12,258	$ 12,448
Prepaid expenses	1,343	1,078
Held for sale assets - current		16,309
Other current assets	1,224	160
Total current assets	14,825	29,995
Restricted cash	2,529	7,498
Property and equipment, net	3,629	3,946
Operating lease right-of-use asset	3,504	3,747
Held for sale assets - non-current		7,465
Other assets	757	757
Total assets	25,244	53,408
Current liabilities:
Accounts payable and other accrued liabilities	5,001	6,427
Accrued compensation	1,085	2,870
Current portion of long-term debt		19,863
Held for sale liabilities - current		8,135
Other current liabilities	907	944
Total current liabilities	6,993	38,239
Operating lease liability	3,099	3,327
Total liabilities	10,092	41,566
Stockholders' equity:
Preferred stock: $0.001 par value; 15,000,000 shares authorized, zero shares issued or outstanding
Common stock: $0.001 par value; 500,000,000 shares authorized; 3,232,811 and 3,234,232 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	45	45
Additional paid-in capital	180,066	179,653
Accumulated deficit	(164,959)	(167,856)
Total stockholders' equity	15,152	11,842
Total liabilities and stockholders' equity	$ 25,244	$ 53,408

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	3,232,811	3,234,232
Common stock, shares outstanding	3,232,811	3,234,232

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating expenses:
Research and development	$ 4,006	$ 6,634
General and administrative	3,616	4,528
Total operating expenses:	7,622	11,162
Other expense:
Other expense, net	275	579
Loss on extinguishment of debt	2,104
Net loss from continuing operations	(10,001)	(11,741)
Discontinued operations (Note 2):
Income (loss) from discontinued operations	12,898	(277)
Net income (loss)	$ 2,897	$ (12,018)
Net loss from continuing operations	$ (3.06)	$ (7.46)
Net income (loss) from discontinued operations	3.94	(0.18)
Basic and diluted net income (loss) per basic share	$ 0.89	$ (7.64)
Weighted-average shares used to compute per share calculations	3,270,089	1,573,233

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating Activities
Net income (loss)	$ 2,897	$ (12,018)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	413	594
Depreciation and amortization	455	583
Gain on sale of Aptevo BioTherapeutics	(14,338)
Loss on extinguishment of debt	2,104
Non-cash interest expense and other	137	198
Changes in operating assets and liabilities:
Accounts receivable		(581)
Inventories		(2,561)
Prepaid expenses and other current assets	(1,329)	121
Operating lease right of use asset	243	211
Accounts payable, accrued compensation and other liabilities	(3,248)	368
Long-term operating lease liability	(228)	(371)
Changes in assets and liabilities held for sale	1,719
Sales and rebates discounts		(388)
Net cash used in operating activities	(11,175)	(13,844)
Investing Activities
Cash received from sale of Aptevo BioTherapeutics	28,120
Purchases of property and equipment		(153)
Net cash (used in) provided by investing activities	28,120	(153)
Financing Activities
Payments of long-term debt, including exit and other fees	(22,104)
Proceeds of issuance of common stock, warrants, and pre-funded warrants, net		20,410
Proceeds from issuance of prefunded warrants		21
Value of equity awards withheld for tax liability		(58)
Net cash provided by (used in) financing activities	(22,104)	20,373
Increase (decrease) in cash, cash equivalents, and restricted cash	(5,159)	6,376
Cash, cash equivalents, and restricted cash at beginning of period	19,946	38,083
Cash, cash equivalents, and restricted cash at end of period	$ 14,787	$ 44,459

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance at Dec. 31, 2018	$ 30,406	$ 23	$ 157,791	$ (127,408)
Balance (in shares) at Dec. 31, 2018		1,629,173
Issuance of common stock, pre-funded warrants and warrants, net	20,206	$ 22	20,184
Issuance of common stock, pre-funded warrants and warrants, net (in shares)		1,571,429
Issuance of commitment shares of common stock, non-cash transaction (in shares)		13,991
Common stock issued upon vesting of restricted stock units	(58)		(58)
Common stock issued upon vesting of restricted stock units (in shares)		6,138
Stock-based compensation	594		594
Net loss for the period	(12,018)			(12,018)
Balance at Mar. 31, 2019	39,130	$ 45	178,511	(139,426)
Balance (in shares) at Mar. 31, 2019		3,220,730
Balance at Dec. 31, 2019	11,842	$ 45	179,653	(167,856)
Balance (in shares) at Dec. 31, 2019		3,234,232
Cancellation of fractional shares arising from reverse stock split		(1,421)
Stock-based compensation	413		413
Net loss for the period	2,897			2,897
Balance at Mar. 31, 2020	$ 15,152	$ 45	$ 180,066	$ (164,959)
Balance (in shares) at Mar. 31, 2020		3,232,811

Nature of Business and Signific

Nature of Business and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Nature of Business and Significant Accounting Policies	Note 1. Nature of Business and Significant Accounting Policies Organization and Liquidity Aptevo Therapeutics Inc. (Aptevo, we, us, or the Company) is a clinical-stage biotechnology company focused on developing novel immunotherapies for the treatment of cancer. Our lead clinical candidate, APVO436, and preclinical candidates, ALG.APV-527 and APVO603 were developed based on the Company’s versatile and robust ADAPTIR™ modular protein technology platform. The ADAPTIR platform is capable of generating highly differentiated bispecific antibodies with unique mechanisms of action for the treatment of different types of cancer. Before February 28, 2020, we had one revenue-generating product in the area of hematology, IXINITY ® We are currently trading on the Nasdaq Capital Market under the symbol “APVO.” On February 28, 2020, we entered into an LLC Purchase Agreement with Medexus Pharma Inc. (“Medexus”), pursuant to which we sold all of the issued and outstanding limited liability company interests of Aptevo BioTherapeutics LLC (“Aptevo BioTherapeutics”) , a wholly owned subsidiary of Aptevo. As a result of the transaction, Medexus obtained all rights, title and interest to the IXINITY product, and the related Hemophilia B business and intellectual property. In addition, Aptevo BioTherapeutics personnel responsible for the sale and marketing of IXINITY also transitioned to Medexus as part of the transaction. Aptevo BioTherapeutics met all the conditions to be classified as a discontinued operation since the sale of Aptevo BioTherapeutics represented a strategic shift that will have a major effect on the Company’s operations and financial results. Aptevo will not have further significant involvement in the operations of the discontinued Aptevo BioTherapeutics business. The operating results of Aptevo BioTherapeutics are reported as income (loss) from discontinued operations, in the condensed consolidated statements of operations for all periods presented. The gain recognized on the sale of Aptevo BioTherapeutics is presented in income (loss) from discontinued operations in the condensed consolidated statement of operations. In addition, on the consolidated balance sheet as of December 31, 2019, the assets and liabilities held for sale have been presented separately. See Note 2 - Sale of Aptevo BioTherapeutics for additional information. The accompanying financial statements have been prepared on a basis that assumes we will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. For the three months ended March 31, 2020 and 2019, we had a net income $2.9 million and net loss $12.0 million, respectively. We had an accumulated deficit of $165.0 million as of March 31, 2020. For the three months ended March 31, 2020, net cash used in our operating activities was $11.2 million. We have suffered recurring losses from operations and negative cash flows from operating activities. When considered in aggregate, these factors raise substantial doubt about our ability to continue as a going concern for the one-year period from the date of issuance of these financial statements. We will need to raise additional funds to support our operating and capital needs in 2020. We continue to face significant challenges and uncertainties and, as a result, our available capital resources may be consumed more rapidly than currently expected due to: (a) changes we may make to the business that affect ongoing operating expenses; (b) changes we may make in our business strategy; (c) changes we may make in our research and development spending plans; (d) potential decreases in our expected milestone and deferred payments from Medexus with respect to IXINITY; and (e) other items affecting our forecasted level of expenditures and use of cash resources. We may attempt to obtain additional funding through our existing equity sales agreement with Lincoln Park Financial LLC or our Equity Distribution Agreement with Piper Sandler, or other public or private financing, collaborative arrangements with strategic partners, or through credit lines or other debt financing sources to increase the funds available to fund operations. However, we may not be able to secure such funding in a timely manner or on favorable terms, if at all. Furthermore, if we issue equity or debt securities to raise additional funds, our existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of our existing stockholders. If we raise additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to our potential products or proprietary technologies, or grant licenses on terms that are not favorable to us. Without additional funds, we may be forced to delay, scale back or eliminate some of our research and development activities or other operations and potentially delay product development in an effort to provide sufficient funds to continue our operations. If any of these events occurs, our ability to achieve our development and commercialization goals may be adversely affected. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, we may experience delays or difficulties to the financing environment and raising capital due to economic uncertainty. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). These condensed consolidated financial statements include all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial position. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The condensed consolidated financial statements include the accounts of the company and its wholly owned subsidiaries: Aptevo Research and Development LLC and Aptevo BioTherapeutics LLC (for all periods prior to the sale to Medexus). All intercompany balances and transactions have been eliminated. In March 2020, we effected a reverse stock split (the “Reverse Split”) of our common stock pursuant to which every 14 shares of our common stock issued and outstanding as of March 26, 2020 were automatically combined into one issued and outstanding share of common stock. No fractional shares were issued as a result of the reverse stock split. Stockholders of record who would otherwise have been entitled to receive a fractional share received a cash payment in lieu thereof. All share and per share information with respect to our common stock have been restated to reflect the effect of the Reverse Split for all periods presented. Refer to Note 8 for additional information. Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, useful lives of equipment, commitments and contingencies, stock-based compensation forfeiture rates, and collectability of receivables. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates are becoming more challenging, and actual results could differ materially from those estimates. Other Significant Accounting Policies Our significant accounting policies were reported in our Annual Report on Form 10-K for the year ended December 31, 2019 that was filed with the SEC on March 25, 2020. Our significant accounting policies have not changed materially from the policies previously reported. Recently Adopted Standards On December 18, 2019 we adopted ASU No. 2019-12, Income Taxes (Topic 740), which amended the existing standards for income tax accounting, eliminating the legacy exception on how to allocate income tax expense or benefit for the year to continuing operations, discontinued operations, other comprehensive income, and other charges or credits recorded directly to shareholder’s equity. We did not adjust comparative periods in our financial statements prior to that period. Adoption of the new standard resulted in determining the tax effect of income or loss from continuing operations using a computation that does not consider the tax effects of items that are not included in continuing operations. As such, we did not record a tax expense or benefit in the first quarter of 2020. Refer to Note 2 for additional information.

Sale of Aptevo BioTherapeutics

Sale of Aptevo BioTherapeutics	3 Months Ended
	Mar. 31, 2020
Discontinued Operations And Disposal Groups [Abstract]
Sale of Aptevo BioTherapeutics	Note 2. Sale of Aptevo BioTherapeutics On February 28, 2020, we entered into an LLC Purchase Agreement with Medexus, pursuant to which Aptevo sold all of the issued and outstanding limited liability company interests of Aptevo BioTherapeutics, a wholly owned subsidiary of Aptevo. As a result of the transaction, Medexus obtained all rights, title and interest to the IXINITY product and the related Hemophilia B business and intellectual property. From the $30 million payment at closing, Medexus withheld $0.9 million which was deposited with an escrow agent (i) to fund potential payment obligations of Aptevo with respect to the final post-closing adjustment and (ii) to fund potential post-closing indemnification obligations of Aptevo. In addition to the payment received at closing, Aptevo may also earn milestone and deferred payments from Medexus in the future. We used $22.1 million of the $30 million in proceeds to repay in full our term debt facility with MidCap Financial Trust, including $20 million of principal and $2.1 million in an end of facility fee, accrued interest, legal fees and prepayment fees. We recorded a $2.1 million loss on extinguishment of debt in the first quarter of 2020. The net gain on sale of Aptevo BioTherapeutics, totaling $14.3 million, was calculated as the difference between the fair value of the consideration received for Aptevo BioTherapeutics, less the net carrying value of the assets transferred to Medexus, less the transaction costs incurred and a working capital adjustment The following table summarizes the gain on sale (in thousands): Cash payment received $ 29,250 Escrow receivable 750 Total consideration 30,000 Less: Net carrying value of assets transferred to Medexus 13,376 Transaction costs 1,880 Minimum Transition Services Agreement ("TSA") fund 406 Net gain on sale of business $ 14,338 The purchase agreement included a target net working capital of $9.5 million compared to preliminary net working capital sold of $9.1 million. The difference between the target net working capital and the preliminary working capital is due to Medexus. The parties agreed to defer payment of this amount for a period of six months, during which time, the amount will be reduced by the cost of certain transition services performed by Aptevo during the transition service period, as agreed to by both parties (the “Minimum TSA Fund”). At March 31, 2020, the amount due to Medexus in the Minimum TSA Fund was $0.3 million, which we have included in other accrued liabilities in the accompanying balance sheet. The following table presents a reconciliation of the carrying amounts of assets and liabilities of Aptevo BioTherapeutics held for sale, net in the unaudited condensed consolidated balance sheet (in thousands): ASSETS December 31, 2019 Accounts receivable, net $ 7,022 Inventories 6,140 Prepaid expenses 3,147 Total current assets, held for sale 16,309 Intangible assets, net 4,420 VAT receivable and deposit 3,045 Total assets held for sale $ 23,774 LIABILITIES Accounts payable and other accrued liabilities $ 5,043 Royalties payable 2,018 Accrued payroll 654 Other current liabilities 420 Total current liabilities $ 8,135 The following table represents the components attributable to Aptevo BioTherapeutics presented as income (loss) from discontinued operations in the unaudited condensed consolidated statements of operations (in thousands): For the Three Months Ended March 31, 2020 2019 Loss from operations (1,580 ) (1) (277 ) Gain on sale of Aptevo BioTherapeutics 14,338 — Estimated deferred payment from Medexus 140 — Income (loss) from discontinued operations $ 12,898 $ (277 ) (1) We note that these amounts include operations of Aptevo BioTherapeutics through February 28, 2020. The LLC Purchase Agreement with Medexus entitles us to future deferred payments and royalties. We recorded an estimated deferred payment due from Medexus of $0.1 million due to activity in the first quarter of 2020. Amortization for Aptevo BioTherapeutics was $0.1 million and $0.2 million in March 31, 2020 and March 31, 2019, respectively. There was no depreciation, capital expenditures or other significant operating or investing non-cash items for the three months ended March 31, 2020 and 2019.

Collaboration Agreements

Collaboration Agreements	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Collaboration Agreements	Note 3. Collaboration Agreements Alligator On July 20, 2017, our wholly owned subsidiary Aptevo Research and Development LLC (Aptevo R&D), entered into a collaboration and option agreement (Collaboration Agreement) with Alligator Bioscience AB (Alligator), pursuant to which Aptevo and Alligator will collaboratively develop ALG.APV-527, a lead bispecific antibody candidate simultaneously targeting 4-1BB (CD137), a member of the TNFR superfamily of a costimulatory receptor found on activated T-cells, and 5T4, a tumor antigen widely overexpressed in a number of different types of cancer. Alligator and Aptevo have made a joint decision to focus efforts on partnering ALG.APV-527 prior to phase 1 clinical development. The adjustment to the development plan for ALG.APV -527 will allow both Aptevo and Alligator to align their resources with their respective ongoing clinical programs. The companies are initiating discussions with potential partners for the upcoming clinical development of ALG.APV-527. We assessed the arrangement in accordance with ASC 606 and concluded that the contract counterparty, Alligator, is not a customer. As such the arrangement is not in the scope of ASC 606 and is instead treated as a collaborative agreement under ASC 808. ASU 2018-18, under ASC 808, clarifies the interactions between Topic 808 and 606. ASU 2018-18 is a targeted amendment to ASC 808 that requires that if the counterparty in a collaborative arrangement is a customer for goods and services that is a distinct unit, the transaction should be considered as revenues from customers. We concluded that because the Collaboration Agreement with Alligator is a cost sharing agreement, there is no revenue and therefore ASU 2018-18 is not applicable to the Collaboration Agreement with Alligator. For the three months ended March 31, 2020, we recorded an immaterial increase in research and development expense for the three months ended March 31, 2019, we recorded an increase in our research and development expense of less than $0.4 million related to the Collaboration Agreement.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4. Fair Value Measurements The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, it gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows: Level 1— Quoted prices in active markets for identical assets and liabilities; Level 2— Inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. At March 31, 2020 and December 31, 2019, we had $9.5 million and $12.5 million in Level 1 money market funds, respectively. The carrying amounts of our money market funds approximate their fair value. At March 31, 2020 and December 31, 2019, we did not have any level two or level three assets.

Cash, Cash Equivalents, and Res

Cash, Cash Equivalents, and Restricted Cash	3 Months Ended
	Mar. 31, 2020
Cash And Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Restricted Cash	Note 5. Cash, Cash Equivalents, and Restricted Cash The Company’s cash equivalents are highly liquid investments with a maturity of 90 days or less at the date of purchase and include time deposits and investments in money market funds. Restricted cash, long-term includes $2.5 million securing letters of credit. As of March 31, 2020, we are no longer required to maintain a restricted cash balance of $5.0 million related to the minimum cash covenant included in the Credit and Security Agreement with MidCap Financial Trust, as the debt was repaid on February 28, 2020. The following table shows our cash, cash equivalents and long-term restricted cash as of March 31, 2020 and December 31, 2019: March 31, December 31, (in thousands) 2020 2019 Cash $ 2,717 $ 4,954 Cash equivalents 9,541 7,494 Restricted cash 2,529 7,498 Total cash, cash equivalents, and restricted cash $ 14,787 $ 19,946

Debt

Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Debt	Note 6. Debt On February 28, 2020, we repaid the entire amount outstanding under the Credit and Security Agreement with MidCap Financial Trust

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Note 7. Leases Office Space Lease - Operating We have an operating lease related to our office and laboratory space in Seattle, Washington. This lease was amended and extended in March 2019. The term of the amended lease is through April 2030 and we have two options to extend the lease term, each by five years, as well as a one-time option to terminate the lease in April 2023. The lease was further amended effective August 2019 to reduce the square footage of our rented area. We recorded a right-of-use asset for this lease on January 1, 2019, of $1.2 million which reflects the amount of the remaining lease liability, less the balance of accrued and deferred rent, and net of the unamortized balance of tenant incentives. We also recorded a lease liability of $1.9 million which reflects the present value of the remaining lease payments, discounted using our incremental borrowing rate of 16.95% for the remaining term of the lease. In March 2019, we recorded an increase to our right-of-use asset for this lease amendment of $3.2 million which reflects the amount of the remaining lease liability through April 30, 2023, less the balance of accrued and deferred rent, and net of the unamortized balance of tenant incentives. In March 2019, we also recorded an increase to our lease liability for this lease amendment of $3.2 million which reflects the present value of the remaining lease payments through April 30, 2023, discounted using our incremental borrowing rate of 14.45% for the remaining term of the lease on the date of amendment. For the three months ended March 31, 2020, we recorded $0.1 million related to variable expenses. Equipment Leases - Operating As of March 31, 2020, we have operating leases for one piece of lab equipment and four copiers in our Seattle, Washington headquarters. The future expense for these leases will be straight-line and will include any variable expenses that arise. Equipment Lease – Financing As of March 31, 2020, we had one equipment lease classified as a financing lease as the lease transfers ownership of the underlying asset to us at the end of the lease term. The remaining term of this lease is five months and has a remaining expense obligation of less than $0.1 million. There were no financing lease payments in the three months ended March 31, 2020. Components of lease expense: For the Three Months Ended March 31, For the Three Months Ended March 31, (in thousands) 2020 2019 Operating lease cost $ 395 $ 335 Finance lease cost: Amortization of right-of-use assets 2 1 Interest on lease liabilities — 1 Total lease cost $ 397 $ 337 Supplemental cash flows information related to leases is as follows: Right of use assets acquired under operating leases: As of March 31, As of December 31, (in thousands) 2020 2019 Operating leases, excluding Seattle office lease $ 404 $ 241 Seattle office lease, including amendment 3,291 3,506 Total operating leases $ 3,695 $ 3,747 The long-term portion of the lease liabilities included in the amounts above is $3.1 million and the remainder of our lease liabilities are included in other current liabilities on our condensed consolidated balance sheets. Lease payments: For the Three Months Ended March 31, For the Three Months Ended March 31, (in thousands) 2020 2019 For operating leases $ 418 $ 434 As of March 31, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 3.02 years and 14.55%.

Reverse Stock Split

Reverse Stock Split	3 Months Ended
	Mar. 31, 2020
Stockholders Equity [Abstract]
Reverse Stock Split	Note 8. Reverse Stock Split On March 11, 2020, we held a Special Meeting of Stockholders at which our stockholders approved a series of alternate amendments to the Amended and Restated Certificate of Incorporation to effect, at the option of our Board of Directors, a reverse split of the Aptevo’s common stock at a ratio ranging from 1-for-2 to 1-for-20, inclusive, with the effectiveness of one of such amendments and the abandonment of the other amendments, or the abandonment of all amendments, to be determined by the Board in its sole discretion following the Special Meeting. The specific 1-for-14 reverse split ratio was subsequently approved by the Board on March 23, 2020. On March 26, 2020, the Company filed a Certificate of Amendment of Amended and Restated Certificate of Incorporation (the “Amendment”) with the Secretary of State of the State of Delaware to effect a 1-for-14 reverse stock split of the Company’s outstanding common stock. No We have adjusted all common stock and stock equivalent figures retroactively in this Form 10-Q for all periods presented to reflect the reverse stock split.

Net Income (Loss) per Share

Net Income (Loss) per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Note 9. Net Income (Loss) per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common share equivalents outstanding for the period using the as-if converted method. For the purpose of this calculation, warrants, stock options and restricted stock units (RSUs) are only included in the calculation of diluted net income per share when their effect is dilutive. We utilize the control number concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is loss from continuing operations or income from discontinued operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Therefore, no dilutive effect has been recognized in the calculation of income from discontinued operations per share. Common stock equivalents include warrants, stock options and unvested RSUs. The following table presents the computation of basic and diluted net loss per share (in thousands, except share and per share amounts): For the Three Months Ended March 31, 2020 2019 Net loss from continuing operations $ (10,001 ) $ (11,741 ) Income (loss) from discontinued operations 12,898 (277 ) Net income (loss) $ 2,897 $ (12,018 ) Basic and diluted net income (loss) per share: Net loss from continuing operations $ (3.06 ) $ (7.46 ) Net income (loss) from discontinued operations $ 3.94 $ (0.18 ) Net income (loss) per basic share $ 0.89 $ (7.64 ) Weighted-average shares used to compute per share calculations 3,270,089 1,573,233 The following table represents all potentially dilutive shares, which were all anti-dilutive and therefore excluded from the calculation of diluted net loss per share: For the Three Months Ended March 31, (in thousands) 2020 2019 Warrants 1,571 1,571 Outstanding options to purchase common stock 389 293 Unvested RSUs 12 —

Equity

Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Equity	Note 10. Equity C ommon Stock On March 11, 2019, we completed a public offering of common stock and warrants, as follows: • for a combined public offering price of $14.00 per share of common stock and related warrants, 1,417,857 shares of common stock and related warrants with a 5-year life to purchase up to 1,417,857 shares of common stock at an exercise price of $18.20 per share, • for a combined public offering price of $13.86 per pre-funded warrant and related warrant, pre-funded warrants with a 10-year life to purchase up to 153,571 shares of common stock at an exercise price of $0.14 per share and related warrants with a 5-year life to purchase up to 153,571 shares of common stock at an exercise price of $18.20 per share. These pre-funded warrants were exercised on March 21, 2019. We received net proceeds of $20.2 million, net of transaction costs, as a result of this offering. For the three months ended March 31, 2019, we issued 6,138 shares of common stock due to the vesting of RSUs. In addition, pursuant to our purchase agreement with Lincoln Park, we issued 13,991 of commitment shares in a non-cash transaction during the three months ended March 31, 2019. Equity Distribution Agreement On November 9, 2017, we entered into an Equity Distribution Agreement (the Equity Distribution Agreement) with Piper Sandler & Co. (Piper Sandler). The Equity Distribution Agreement provides that, upon the terms and subject to the conditions set forth therein, we may issue and sell through Piper Sandler, acting as sales agent, shares of our common stock, $0.001 par value per share having an aggregate offering price of up to $17.5 million. We have no obligation to sell any such shares under the Equity Distribution Agreement. The sale of such shares of common stock by Piper Sandler will be effected pursuant to a Registration Statement on Form S-3 which we filed on November 9, 2017. We issued no shares under the Equity Distribution Agreement in the first quarter of 2020. C onverted Equity Awards Incentive Plan In connection with the spin-off from Emergent BioSolutions, Inc. (Emergent) in August 2016, we adopted the Converted Equity Awards Incentive Plan (Converted Plan) and outstanding equity awards of Emergent held by Aptevo employees were converted into or replaced with equity awards of Aptevo (Conversion Awards) under the Converted Plan and were adjusted to maintain the economic value before and after the distribution date using the relative fair market value of the Emergent and Aptevo common stock based on the closing prices as of August 1, 2016. A total of 0.1 million shares of Aptevo common stock have been authorized for issuance under the Converted Plan. Options issued as Conversion Awards were priced according to the Converted Plan. RSUs issued as part of the Converted Plan provide for the issuance of a share of Aptevo’s stock at no cost to the holder. 2016 Stock Incentive Plan On August 1, 2016, the Company adopted the 2016 Stock Incentive Plan (2016 SIP). A total of 0.2 million shares of Aptevo common stock have been authorized for issuance under the 2016 SIP in the form of equity stock options. Stock options under the 2016 SIP generally vest pro rata over a three-year period and terminate ten years from the grant date, though the specific terms of each grant are determined individually. The Company’s executive officers and certain other employees may be awarded options with different vesting criteria, and options granted to non-employee directors also vest over a three-year period. Option exercise prices for new options granted by the Company equal the closing price of the Company’s common stock on the Nasdaq Capital Market on the date of grant. RSUs issued under the 2016 SIP provide for the issuance of a share of the Company’s common stock at no cost to the holder. RSUs granted to employees under the 2016 SIP generally provide for time-based vesting over a twelve-month to three-year period, although certain employees may be awarded RSUs with different time-based vesting criteria. Prior to vesting, RSUs granted under the 2016 SIP do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued or outstanding. The equity compensation awards granted by the Company generally vest only if the employee is employed by the Company (or in the case of directors, the director continues to serve on the Board) on the vesting date. On May 31, 2017, at the 2017 Annual Meeting of Stockholders (Annual Meeting), the Company’s stockholders approved the amendment and restatement of the Company’s 2016 SIP (Restated 2016 Plan) to, among other things, increase the number of authorized shares issuable by 0.1 million shares of Aptevo common stock. The Restated 2016 Plan was previously approved, subject to stockholder approval, by the Board of Directors of the Company. 2018 Stock Incentive Plan On June 1, 2018, at the 2018 Annual Meeting, the Company’s stockholders approved a new 2018 Stock Incentive Plan (2018 SIP), which replaced the Restated 2016 Plan on a go-forward basis. All stock options, RSUs or other equity awards granted subsequent to June 1, 2018 will be issued out of the 2018 SIP, which has 0.3 million shares of Aptevo common stock authorized for issuance. The 2018 Plan became effective immediately upon stockholder approval at the Annual Meeting. Any shares subject to outstanding stock awards granted under the 2016 SIP that (a) expire or terminate for any reason prior to exercise or settlement; (b) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company; or (c) otherwise would have returned to the 2016 SIP for future grant pursuant to the terms of the 2016 Plan (such shares, the “Returning Shares”) will immediately be added to the share reserve under the 2018 SIP as and when such shares become Returning Shares, up to a maximum of 0.3 million shares. The 2018 SIP was previously approved, subject to stockholder approval, by the Board of Directors of the Company. As of March 31, 2020, there are 0.1 million shares available to be granted under the 2018 SIP. Stock options under the 2018 SIP generally vest pro rata over a three-year period and terminate ten years from the grant date, though the specific terms of each grant are determined individually. The Company’s executive officers and certain other employees may be awarded options with different vesting criteria, and options granted to non-employee directors also vest over a three-year period. Option exercise prices for new options granted by the Company equal the closing price of the Company’s common stock on the Nasdaq Capital Market on the date of grant. Stock-Based Compensation Expense Stock-based compensation expense includes amortization of stock options and RSUs granted to employees and non-employees and has been reported in our Condensed Consolidated Statements of Operations as follows: For the Three Months Ended March 31, (in thousands) 2020 2019 Research and development $ 170 $ 251 General and administrative 243 343 Total stock-based compensation expense $ 413 $ 594 The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted based on the fair value of the award as of the grant date. The Company recognizes the compensation expense over the vesting period. Stock Options Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted: For the Three Months Ended March 31, 2020 2019 Expected dividend yield 0.00% 0.00% Expected volatility 83.64% 75.00% Risk-free interest rate 1.42% 2.52% Expected average life of options 5 years 7 years Management has applied an estimated forfeiture rate of 8% for the three months ended March 31, 2020 and 10% for the three months ended March 31, 2019. The following is a summary of option activity for the three months ended March 31, 2020: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Term Aggregate Intrinsic Value Balance at December 31, 2019 334,938 $ 29.89 7.28 $ — Granted 94,538 6.97 — — Forfeited (40,849 ) 21.24 — — Outstanding at March 31, 2020 388,627 $ 25.77 7.32 $ — Exercisable at March 31, 2020 191,446 $ 36.05 5.27 $ — As of March 31, 2020, we had $1.6 million of unrecognized compensation expense related to options expected to vest over a weighted average period of 1.6 years. The weighted average remaining contractual life of outstanding and exercisable options is 5.3 years. The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing stock price of Aptevo’s common stock on the last trading day of March 2020 and the exercise price, multiplied by the number of in the money options) that would have been received by the option holders had all the option holders exercised their options on the last trading day of the quarter. As the exercise price for all outstanding options as of March 31, 2020 exceeded the closing stock price of Aptevo’s common stock on that date, the aggregate intrinsic value is zero. Restricted Stock Units The following is a summary of RSU activity for the three months ended March 31, 2020: Number of Units Weighted Average Fair Value per Unit Aggregate Fair Value Balance at December 31, 2019 17,458 $ 8.06 $ — Forfeited (5,103 ) 8.06 — Outstanding at March 31, 2020 12,355 $ 8.06 $ 61,655 Expected to Vest 12,355 $ 8.06 $ 61,655 As of March 31, 2020, there was $0.06 million unrecognized stock-based compensation expense related to unvested RSUs. The fair value of each RSU has been determined to be the closing trading price of the Company’s common stock on the date of grant as quoted on the Nasdaq Capital Market. Warrants In March 2019, as part of a public offering, we issued warrants to purchase up to 1,725,000 shares of our common stock, 1,571,429 of which have an exercise price of $18.20 per share and have a five-year life, and 153,571 of pre-funded warrants with an exercise price of $0.14 per share. The pre-funded warrants have a ten-year life and would have expired on March 11, 2029; however, the pre-funded warrants were exercised in March 2019. We determined the warrants do not meet liability classification pursuant to ASC 480 – Distinguishing Liabilities from Equity. These are therefore included within equity on our consolidated balance sheet. As of March 31, 2020, there were warrants to purchase 1,571,429 shares of common stock outstanding.

Nature of Business and Signif_2

Nature of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, useful lives of equipment, commitments and contingencies, stock-based compensation forfeiture rates, and collectability of receivables. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates are becoming more challenging, and actual results could differ materially from those estimates.
Other Significant Accounting Policies	Other Significant Accounting Policies Our significant accounting policies were reported in our Annual Report on Form 10-K for the year ended December 31, 2019 that was filed with the SEC on March 25, 2020. Our significant accounting policies have not changed materially from the policies previously reported.
Recently Adopted Standards	Recently Adopted Standards On December 18, 2019 we adopted ASU No. 2019-12, Income Taxes (Topic 740), which amended the existing standards for income tax accounting, eliminating the legacy exception on how to allocate income tax expense or benefit for the year to continuing operations, discontinued operations, other comprehensive income, and other charges or credits recorded directly to shareholder’s equity. We did not adjust comparative periods in our financial statements prior to that period. Adoption of the new standard resulted in determining the tax effect of income or loss from continuing operations using a computation that does not consider the tax effects of items that are not included in continuing operations. As such, we did not record a tax expense or benefit in the first quarter of 2020. Refer to Note 2 for additional information.

Sale of Aptevo BioTherapeutics

Sale of Aptevo BioTherapeutics (Tables)	3 Months Ended
	Mar. 31, 2020
Discontinued Operations And Disposal Groups [Abstract]
Gain of Sale of Business	The following table summarizes the gain on sale (in thousands): Cash payment received $ 29,250 Escrow receivable 750 Total consideration 30,000 Less: Net carrying value of assets transferred to Medexus 13,376 Transaction costs 1,880 Minimum Transition Services Agreement ("TSA") fund 406 Net gain on sale of business $ 14,338
Summary of Reconciliation of Carrying Amounts of Assets and Liabilities and Income (Loss) from Discontinued Operation	The following table presents a reconciliation of the carrying amounts of assets and liabilities of Aptevo BioTherapeutics held for sale, net in the unaudited condensed consolidated balance sheet (in thousands): ASSETS December 31, 2019 Accounts receivable, net $ 7,022 Inventories 6,140 Prepaid expenses 3,147 Total current assets, held for sale 16,309 Intangible assets, net 4,420 VAT receivable and deposit 3,045 Total assets held for sale $ 23,774 LIABILITIES Accounts payable and other accrued liabilities $ 5,043 Royalties payable 2,018 Accrued payroll 654 Other current liabilities 420 Total current liabilities $ 8,135 The following table represents the components attributable to Aptevo BioTherapeutics presented as income (loss) from discontinued operations in the unaudited condensed consolidated statements of operations (in thousands): For the Three Months Ended March 31, 2020 2019 Loss from operations (1,580 ) (1) (277 ) Gain on sale of Aptevo BioTherapeutics 14,338 — Estimated deferred payment from Medexus 140 — Income (loss) from discontinued operations $ 12,898 $ (277 )

Cash, Cash Equivalents, and R_2

Cash, Cash Equivalents, and Restricted Cash (Tables)	3 Months Ended
	Mar. 31, 2020
Cash And Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents and Long-term Restricted Cash	The following table shows our cash, cash equivalents and long-term restricted cash as of March 31, 2020 and December 31, 2019: March 31, December 31, (in thousands) 2020 2019 Cash $ 2,717 $ 4,954 Cash equivalents 9,541 7,494 Restricted cash 2,529 7,498 Total cash, cash equivalents, and restricted cash $ 14,787 $ 19,946

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Components of Lease Expense	Components of lease expense: For the Three Months Ended March 31, For the Three Months Ended March 31, (in thousands) 2020 2019 Operating lease cost $ 395 $ 335 Finance lease cost: Amortization of right-of-use assets 2 1 Interest on lease liabilities — 1 Total lease cost $ 397 $ 337
Summary of Right of Use Assets Acquired Under Operating Leases	Right of use assets acquired under operating leases: As of March 31, As of December 31, (in thousands) 2020 2019 Operating leases, excluding Seattle office lease $ 404 $ 241 Seattle office lease, including amendment 3,291 3,506 Total operating leases $ 3,695 $ 3,747 Lease payments: For the Three Months Ended March 31, For the Three Months Ended March 31, (in thousands) 2020 2019 For operating leases $ 418 $ 434

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss per Share	The following table presents the computation of basic and diluted net loss per share (in thousands, except share and per share amounts): For the Three Months Ended March 31, 2020 2019 Net loss from continuing operations $ (10,001 ) $ (11,741 ) Income (loss) from discontinued operations 12,898 (277 ) Net income (loss) $ 2,897 $ (12,018 ) Basic and diluted net income (loss) per share: Net loss from continuing operations $ (3.06 ) $ (7.46 ) Net income (loss) from discontinued operations $ 3.94 $ (0.18 ) Net income (loss) per basic share $ 0.89 $ (7.64 ) Weighted-average shares used to compute per share calculations 3,270,089 1,573,233
Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share	The following table represents all potentially dilutive shares, which were all anti-dilutive and therefore excluded from the calculation of diluted net loss per share: For the Three Months Ended March 31, (in thousands) 2020 2019 Warrants 1,571 1,571 Outstanding options to purchase common stock 389 293 Unvested RSUs 12 —

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted	Stock-based compensation expense includes amortization of stock options and RSUs granted to employees and non-employees and has been reported in our Condensed Consolidated Statements of Operations as follows: For the Three Months Ended March 31, (in thousands) 2020 2019 Research and development $ 170 $ 251 General and administrative 243 343 Total stock-based compensation expense $ 413 $ 594
Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model	Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted: For the Three Months Ended March 31, 2020 2019 Expected dividend yield 0.00% 0.00% Expected volatility 83.64% 75.00% Risk-free interest rate 1.42% 2.52% Expected average life of options 5 years 7 years
Summary of Stock Option Activity	The following is a summary of option activity for the three months ended March 31, 2020: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Term Aggregate Intrinsic Value Balance at December 31, 2019 334,938 $ 29.89 7.28 $ — Granted 94,538 6.97 — — Forfeited (40,849 ) 21.24 — — Outstanding at March 31, 2020 388,627 $ 25.77 7.32 $ — Exercisable at March 31, 2020 191,446 $ 36.05 5.27 $ —
Summary of RSU Activity	The following is a summary of RSU activity for the three months ended March 31, 2020: Number of Units Weighted Average Fair Value per Unit Aggregate Fair Value Balance at December 31, 2019 17,458 $ 8.06 $ — Forfeited (5,103 ) 8.06 — Outstanding at March 31, 2020 12,355 $ 8.06 $ 61,655 Expected to Vest 12,355 $ 8.06 $ 61,655

Nature of Business and Signif_3

Nature of Business and Significant Accounting Policies - Additional Information (Details) $ in Thousands	Mar. 26, 2020	Mar. 31, 2020USD ($)	Mar. 31, 2020USD ($)Productshares	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Accounting Policies [Abstract]
Number of revenue-generating product | Product			1
Net loss for the period			$ 2,897	$ (12,018)
Accumulated deficit		$ (164,959)	(164,959)		$ (167,856)
Net cash used in operating activities			$ 11,175	$ 13,844
Reverse stock split description		we effected a 1-for-14 reverse stock split (the “Reverse Split”) of our common stock pursuant to which every 14 shares of our common stock issued and outstanding as of March 26, 2020 were automatically combined into one issued and outstanding share of common stock. No fractional shares were issued as a result of the reverse stock split.	a reverse split of the Aptevo’s common stock at a ratio ranging from 1-for-2 to 1-for-20, inclusive, with the effectiveness of one of such amendments and the abandonment of the other amendments, or the abandonment of all amendments, to be determined by the Board in its sole discretion following the Special Meeting. The specific 1-for-14 reverse split ratio was subsequently approved by the Board on March 23, 2020. On March 26, 2020, the Company filed a Certificate of Amendment of Amended and Restated Certificate of Incorporation (the “Amendment”) with the Secretary of State of the State of Delaware to effect a 1-for-14 reverse stock split of the Company’s outstanding common stock.
Stock split, conversion ratio	0.071
Fractional shares reverse stock split | shares			0

Sale of Aptevo BioTherapeutic_2

Sale of Aptevo BioTherapeutics - Additional Information (Details) - USD ($) $ in Thousands	Feb. 28, 2020	Mar. 31, 2020	Mar. 31, 2019
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Cash received from sale of Aptevo BioTherapeutics	$ 30,000	$ 28,120
Escrow receivable	750
Loss on extinguishment of debt		2,104
Net gain on sale of business	14,338	14,338
Purchase of working capital		9,500
Net working capital sold		9,100
Amortization		100	$ 200
Depreciation		0	0
Capital expenditure		0	0
Other operating and investing non cash item		0	$ 0
Medexus Pharmaceuticals
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Working capital is due		300
Estimated Deferred Payment From Medexus		100
MidCap Financial
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Principal payment of full term debt facility	20,000
Facility Fee	2,100
Loss on extinguishment of debt		$ 2,100
IXINITY | Medexus Pharmaceuticals
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Cash received from sale of Aptevo BioTherapeutics	30,000
Escrow receivable	900
Repayment of full term debt facility	$ 22,100

Sale of Aptevo BioTherapeutic_3

Sale of Aptevo BioTherapeutics - Gain of Sale of Business (Details) - USD ($) $ in Thousands	Feb. 28, 2020	Mar. 31, 2020
Discontinued Operations And Disposal Groups [Abstract]
Cash payment received	$ 29,250
Escrow receivable	750
Cash received from sale of Aptevo BioTherapeutics	30,000	$ 28,120
Net carrying value of assets transferred to Medexus	13,376
Transaction costs	1,880
Minimum Transition Services Agreement ("TSA") fund	406
Net gain on sale of business	$ 14,338	$ 14,338

Sale of Aptevo BioTherapeutic_4

Sale of Aptevo BioTherapeutics - Summary of Reconciliation of Carrying Amounts of Assets and Liabilities and Income (Loss) from Discontinued Operation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Discontinued Operations And Disposal Groups [Abstract]
Accounts receivable, net			$ 7,022
Inventories			6,140
Prepaid expenses			3,147
Total current assets, held for sale			16,309
Intangible assets, net			4,420
VAT receivable and deposit			3,045
Total assets held for sale			23,774
Accounts payable and other accrued liabilities			5,043
Royalties payable			2,018
Accrued payroll			654
Other current liabilities			420
Total current liabilities			$ 8,135
Loss from operations	$ (1,580)	$ (277)
Gain on sale of Aptevo BioTherapeutics	14,338
Estimated deferred payment from Medexus	140
Income (loss) from discontinued operations	$ 12,898	$ (277)

Collaboration Agreements - Addi

Collaboration Agreements - Additional Information (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Reduction in research and development expense	$ 400,000

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	$ 9,500,000	$ 12,500,000
Level Two
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value assets	0	0
Level Three
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value assets	$ 0	$ 0

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Restricted Cash And Cash Equivalents Items [Line Items]
Long-term restricted cash	$ 2,529	$ 7,498
Maximum
Restricted Cash And Cash Equivalents Items [Line Items]
Cash equivalents, maturity period	90 days
Letter of Credit
Restricted Cash And Cash Equivalents Items [Line Items]
Long-term restricted cash	$ 2,500
Covenant of MidCap Loan Agreement
Restricted Cash And Cash Equivalents Items [Line Items]
Long-term restricted cash	$ 5,000

Cash, Cash Equivalents and Re_2

Cash, Cash Equivalents and Restricted Cash - Schedule of Cash, Cash Equivalents and Long-term Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Cash And Cash Equivalents [Abstract]
Cash	$ 2,717	$ 4,954
Cash equivalents	9,541	7,494
Restricted cash	2,529	7,498
Total cash, cash equivalents, and restricted cash	$ 14,787	$ 19,946

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Millions	Feb. 28, 2020	Mar. 31, 2020
Line Of Credit Facility [Line Items]
Unamortized loan initiation fees		$ 0.1
Loss on debt extinguishment		$ 2.1
MidCap Financial
Line Of Credit Facility [Line Items]
Principal payment of full term debt facility	$ 20
Facility Fee	$ 2.1

Leases - Additional Information

Leases - Additional Information (Details)	Mar. 19, 2019USD ($)RenewalOption	Mar. 31, 2020USD ($)PieceCopierEquipment	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)	Jan. 01, 2019USD ($)
Lessee Lease Description [Line Items]
Operating lease right-of-use asset		$ 3,504,000		$ 3,747,000
Operating lease number of piece for lab equipment | Piece		1
Operating lease number of copiers | Copier		4
Financing lease number of equipment | Equipment		1
Financing lease remaining term		5 months
Financing lease remaining expense obligation			$ 1,000
Financing lease payments		$ 0
Long term portion of operating lease liabilities		$ 3,099,000		$ 3,327,000
Weighted average remaining lease term for operating leases		3 years 7 days
Weighted discount rate for operating leases		14.55%
Minimum [Member]
Lessee Lease Description [Line Items]
Financing lease remaining expense obligation		$ 100,000
Office Space Lease
Lessee Lease Description [Line Items]
Initial operating lease term date	2030-04
Operating lease renewal option description	The term of the amended lease is through April 2030 and we have two options to extend the lease term, each by five years, as well as a one-time option to terminate the lease in April 2023.
Operating lease renewal option term	5 years
Number of operating lease renewal option | RenewalOption	2
Operating lease option to extend	true
Operating lease right-of-use asset					$ 1,200,000
Operating lease liability					$ 1,900,000
Operating lease, discounted incremental borrowing rate	14.45%				16.95%
Variable expense		$ 100,000
Office Space Lease | Maximum
Lessee Lease Description [Line Items]
Operating lease right-of-use asset	$ 3,200,000
Operating lease liability	$ 3,200,000

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease cost	$ 395	$ 335
Finance lease cost:
Amortization of right-of-use assets	2	1
Interest on lease liabilities		1
Total lease cost	$ 397	$ 337

Leases - Summary of Right of Us

Leases - Summary of Right of Use Assets Acquired Under Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Lessee Lease Description [Line Items]
Total operating leases	$ 3,695		$ 3,747
For operating leases	418	$ 434
Operating Leases, Excluding Seattle Office Lease
Lessee Lease Description [Line Items]
Total operating leases	404		241
Seattle Office Lease, Including Amendment
Lessee Lease Description [Line Items]
Total operating leases	$ 3,291		$ 3,506

Reverse Stock Split - Additiona

Reverse Stock Split - Additional Information (Details)	Mar. 26, 2020	Mar. 11, 2020	Mar. 31, 2020	Mar. 31, 2020shares
Class Of Stock [Line Items]
Reverse stock split description			we effected a 1-for-14 reverse stock split (the “Reverse Split”) of our common stock pursuant to which every 14 shares of our common stock issued and outstanding as of March 26, 2020 were automatically combined into one issued and outstanding share of common stock. No fractional shares were issued as a result of the reverse stock split.	a reverse split of the Aptevo’s common stock at a ratio ranging from 1-for-2 to 1-for-20, inclusive, with the effectiveness of one of such amendments and the abandonment of the other amendments, or the abandonment of all amendments, to be determined by the Board in its sole discretion following the Special Meeting. The specific 1-for-14 reverse split ratio was subsequently approved by the Board on March 23, 2020. On March 26, 2020, the Company filed a Certificate of Amendment of Amended and Restated Certificate of Incorporation (the “Amendment”) with the Secretary of State of the State of Delaware to effect a 1-for-14 reverse stock split of the Company’s outstanding common stock.
Stock split, conversion ratio	0.071
Fractional shares reverse stock split				0
Minimum [Member]
Class Of Stock [Line Items]
Stock split range		1-for-2
Maximum
Class Of Stock [Line Items]
Stock split range		1-for-20

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Computation of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net loss from continuing operations	$ (10,001)	$ (11,741)
Income (loss) from discontinued operations	12,898	(277)
Net income (loss)	$ 2,897	$ (12,018)
Basic and diluted net income (loss) per share:
Net loss from continuing operations	$ (3.06)	$ (7.46)
Net income (loss) from discontinued operations	3.94	(0.18)
Net income (loss) per basic share	$ 0.89	$ (7.64)
Weighted-average shares used to compute per share calculations	3,270,089	1,573,233

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Warrants
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	1,571	1,571
Outstanding Options to Purchase Common Stock
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	389	293
Unvested RSUs
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	12

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	Mar. 11, 2019	Jun. 01, 2018	Nov. 09, 2017	Aug. 01, 2016	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	May 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Pre funded warrants outstanding, term					10 years
Common stock, par value						$ 0.001		$ 0.001
Pre funded warrants expire date					Mar. 31, 2029
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Estimated forfeiture rate						8.00%	10.00%
Unrecognized compensation expense						$ 1,600,000
Options expected to vest, weighted average period						1 year 7 months 6 days
Options outstanding and exercisable weighted average remaining contractual life						5 years 3 months 18 days
2016 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan				200,000
Stock plan vesting period				3 years
Stock plan termination period				10 years
2016 Stock Incentive Plan | Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase of authorized shares issuable									100,000
2016 Stock Incentive Plan | Non-employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period				3 years
2018 Stock Incentive Plan | Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan		300,000
Stock plan vesting period		3 years
Stock plan termination period		10 years
Maximum number of returning shares from old plan to be add to shares reserve		0.3
Number of shares available for grant						100,000
2018 Stock Incentive Plan | Non-employee Directors | Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period		3 years
Equity Distribution Agreement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, par value			$ 0.001
Issuance of common stock shares						0
Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock to be issued exercise of prefunded warrants					153,571
Pre funded warrants exercise price, per share					$ 0.14
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued price per share	$ 14
Number of warrants issued	1,417,857
Warrants outstanding, term	5 years
Warrants exercise price, per share	$ 18.20
Pre funded warrant issued price, per share	$ 13.86
Pre funded warrants outstanding, term	10 years
Pre funded warrants exercise price, per share	$ 0.14
Proceeds from issuance of warrants							$ 20,200,000
Common stock issued upon vesting of restricted stock units (in shares)							6,138
Issuance of commitment shares of common stock, non-cash transaction (in shares)							13,991
Common Stock | Converted Equity Awards Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan				100,000
Common Stock | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants outstanding, term	5 years
Warrants exercise price, per share	$ 18.20
Warrants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants outstanding, term					5 years		5 years
Warrants outstanding						1,571,429
Warrants | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of warrants issued					1,571,429
Warrants exercise price, per share					$ 18.20		$ 18.20
Minimum | 2016 Stock Incentive Plan | Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period				12 months
Maximum | Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense						$ 60,000
Maximum | 2016 Stock Incentive Plan | Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period				3 years
Maximum | Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock to be issued up conversion of warrants	1,417,857
Number of common stock to be issued exercise of prefunded warrants	153,571
Maximum | Common Stock | Equity Distribution Agreement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate offering price			$ 17,500,000
Maximum | Common Stock | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock to be issued up conversion of warrants	153,571
Maximum | Warrants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock to be issued up conversion of warrants					1,725,000		1,725,000

Equity - Summary of Stock-based

Equity - Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 413	$ 594
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	170	251
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 243	$ 343

Equity - Assumptions used in Va

Equity - Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model (Details) - Stock Option	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected volatility	83.64%	75.00%
Risk-free interest rate	1.42%	2.52%
Expected average life of options	5 years	7 years

Equity - Summary of Stock Optio

Equity - Summary of Stock Option Activity (Details) - Stock Option - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Outstanding, Beginning balance	334,938
Number of Shares, Granted	94,538
Number of Shares, Forfeited	(40,849)
Number of Shares, Outstanding, Ending balance	388,627	334,938
Number of Shares, Exercisable	191,446
Weighted-Average Exercise Price, Outstanding, Beginning balance	$ 29.89
Weighted-Average Exercise Price, Granted	6.97
Weighted-Average Exercise Price, Forfeited	21.24
Weighted-Average Exercise Price, Outstanding, Ending balance	25.77	$ 29.89
Weighted-Average Exercise Price, Exercisable	$ 36.05
Weighted-Average Remaining Term, Outstanding	7 years 3 months 25 days	7 years 3 months 10 days
Weighted-Average Remaining Term, Exercisable	5 years 3 months 7 days

Equity - Summary of Restricted

Equity - Summary of Restricted Stock Activity (Details) - Unvested RSUs	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Units, Outstanding, Beginning balance | shares	17,458
Number of Units, Forfeited | shares	(5,103)
Number of Units, Outstanding, Ending balance | shares	12,355
Number of Units, Expected to Vest | shares	12,355
Weighted Average Fair Value per Unit, Outstanding Beginning Balance | $ / shares	$ 8.06
Weighted Average Fair Value per Unit, Forfeited | $ / shares	8.06
Weighted Average Fair Value per Unit, Outstanding Ending Balance | $ / shares	8.06
Weighted Average Fair Value per Unit, Expected to Vest | $ / shares	$ 8.06
Aggregate Fair Value, Outstanding, Ending balance | $	$ 61,655
Aggregate Fair Value, Expected to Vest | $	$ 61,655