Eton Pharmaceuticals (ETON) 10-Q 14 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Document And Entity Information
Entity Registrant Name	Eton Pharmaceuticals, Inc.
Entity Central Index Key	0001710340
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,917,028
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020		Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 12,335		$ 12,066
Accounts receivable, net	205		473
Inventory	1,726		380
Prepaid expenses and other current assets	1,075		2,090
Total current assets	15,341		15,009
Property and equipment, net	1,025		1,117
Intangible assets, net	688		725
Operating lease right-of-use assets, net	129		160
Other long-term assets, net	58		61
Total assets	17,241		17,072
Current liabilities:
Accounts payable	1,183		575
Accrued liabilities	868		1,388
Total current liabilities	2,051		1,963
Long-term debt, net of discount and including accrued fees	4,570	[1]	4,540
Operating lease liabilities, net of current portion			19
Total liabilities	6,621		6,522
Commitments and contingencies (Note 11)
Stockholders' equity
Common stock, $0.001 par value; 50,000,000 shares authorized as of March 31, 2020 and December 31, 2019; 20,761,960 and 17,877,486 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	21		18
Additional paid-in capital	83,836		74,720
Accumulated deficit	(73,237)		(64,188)
Total stockholders' equity	10,620		10,550
Total liabilities and stockholders' equity	$ 17,241		$ 17,072
[1]	Long-term debt in the Company's balance sheet includes $3 of accrued interest and fees.

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	20,761,960	17,877,486
Common stock, shares outstanding	20,761,960	17,877,486

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues
Total revenues	$ 99	$ 500
Cost of product sales	102
Gross (loss) profit	(3)	500
Operating expenses:
Research and development	6,268	6,465
General and administrative	2,610	1,589
Total operating expenses	8,878	8,054
Loss from operations	(8,881)	(7,554)
Other (expense) income:
Interest and other (expense) income, net	(168)	144
Loss before income tax expense	(9,049)	(7,410)
Income tax expense
Net loss	$ (9,049)	$ (7,410)
Net loss per share, basic and diluted	$ (0.5)	$ (0.42)
Weighted average number of common shares outstanding, basic and diluted	18,143,000	17,502,000
Product Sales [Member]
Revenues
Total revenues	$ 99
Licensing Revenue [Member]
Revenues
Total revenues		$ 500

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2018	$ 18	$ 72,153	$ (45,868)	$ 26,303
Balance, shares at Dec. 31, 2018	17,607,928
Stock-based compensation		345		345
Stock-based compensation, shares
Stock option exercises		4		4
Stock option exercises, shares	20,000
Net loss			(7,410)	(7,410)
Balance at Mar. 31, 2019	$ 18	72,502	(53,278)	19,242
Balance, shares at Mar. 31, 2019	17,627,928
Balance at Dec. 31, 2019	$ 18	74,720	(64,188)	10,550
Balance, shares at Dec. 31, 2019	17,877,486
Stock-based compensation		365		365
Stock-based compensation, shares
Stock option exercises		31		31
Stock option exercises, shares	5,000
Proceeds from sales of common stock, net of offering costs	$ 3	7,456		7,459
Proceeds from sales of common stock, net of offering costs, shares	2,500,000
Issuance of common stock for product candidate licensing rights		1,264		1,264
Issuance of common stock for product candidate licensing rights, shares	379,474
Net loss			(9,049)	(9,049)
Balance at Mar. 31, 2020	$ 21	$ 83,836	$ (73,237)	$ 10,620
Balance, shares at Mar. 31, 2020	20,761,960

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net loss	$ (9,049)	$ (7,410)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	365	345
Common stock issued for product candidate licensing rights	1,264
Depreciation and amortization	162	55
Debt discount amortization	27
Changes in operating assets and liabilities:
Accounts receivable	268
Inventory	(1,346)
Prepaid expenses and other assets	1,020	(1,187)
Accounts payable	608	1,736
Accrued liabilities	(536)	(306)
Net cash used in operating activities	(7,217)	(6,767)
Cash used in investing activities
Purchases of property and equipment	(4)	(388)
Cash flows from financing activities
Proceeds from sales of common stock, net of offering costs	7,459
Proceeds from employee stock option exercises	31	4
Net cash provided by financing activities	7,490	4
Change in cash and cash equivalents	269	(7,151)
Cash and cash equivalents at beginning of period	12,066	26,735
Cash and cash equivalents at end of period	12,335	19,584
Supplemental disclosures of cash flow information
Cash paid for interest	189
Cash paid for income taxes
Supplemental disclosures of non-cash investing and financing activities:
Purchases of equipment included in accounts payable		$ 51

Company Overview

Company Overview	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Company Overview	Note 1 — Company Overview Eton Pharmaceuticals, Inc. (“Eton” or the “Company”) was incorporated as a Delaware corporation on April 27, 2017 and was initially set up as a wholly owned subsidiary of Harrow Health, Inc. or “Harrow” (fka Imprimis Pharmaceuticals, Inc.). In June 2017, the Company raised $20,055 in start-up capital through a private sale of preferred stock and a separate management team was then established for Eton with its corporate offices located in Deer Park, Illinois. In November 2018, the Company completed an initial public offering (the “IPO”) and received net proceeds of $21,960, after deducting underwriting discounts and commissions and offering-related expenses. In November 2019, the Company entered into a credit agreement and received net proceeds of $4,750 (see Note 5), and in March 2020, Eton received net proceeds of $7,459 from the sale of shares of its common stock (see Note 6). Eton is a specialty pharmaceutical company focused on developing and commercializing prescription drug products utilizing the U.S. Food and Drug Administration’s (the “FDA”) 505(b)(2) regulatory pathway. The Company’s business model is to develop proprietary innovative product candidates that offer improvements or advantages to currently available alternatives.

Liquidity Considerations

Liquidity Considerations	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity Considerations	Note 2 — Liquidity Considerations As of March 31, 2020, the Company had an accumulated deficit of $73,237 and for the three months ended March 31, 2020, the Company had net cash used in operating activities of $7,217. To date, the Company has generated limited revenues and has incurred negative cash flows from operating activities since its inception in 2017. The Company received its first product approval from the U.S. Food and Drug Administration (“FDA”), Biorphen®, in October 2019 and currently believes its future revenues and its existing cash and cash equivalents of $12,335 will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next twelve months from the date of issuance of these financial statements. This estimate is based on the Company’s current assumptions, including expected sales for Biorphen and its ability to manage its spending. The Company could use its available capital resources sooner than currently expected. Accordingly, the Company could seek to obtain additional capital through equity financings, make additional drawings under its current credit agreement (see Note 5), the sale of additional debt or other arrangements. However, there can be no assurance that the Company will be able to raise additional capital if needed or under acceptable terms, if at all. The sale of additional equity may dilute existing stockholders and newly issued shares may contain senior rights and preferences compared to currently outstanding common shares. Issued debt securities may contain covenants and limit the Company’s ability to pay dividends or make other distributions to stockholders. If the Company is not able to achieve significant revenues from product sales and licensing, encounters delays in completing its product development and obtaining regulatory approval for its product candidates, and is unable to obtain such additional financing, its operations would need to be scaled back or discontinued.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3 — Summary of Significant Accounting Policies Basis of Presentation The Company has prepared the accompanying financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Unaudited Interim Financial Information The accompanying interim condensed financial statements are unaudited and have been prepared on the same basis as the audited financial statements and, in the opinion of management, reflect all adjustments necessary for the fair presentation of the Company’s financial position as of March 31, 2020 and the results of its operations and its cash flows for the periods ended March 31, 2020 and 2019. The financial data and other information disclosed in these notes related to the three-month periods ended March 31, 2020 and 2019 are also unaudited. The results for the three-month period ended March 31, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods or any future year or period. Use of Estimates 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, the disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, provisions for uncollectible receivables and sales returns, valuation of inventories, useful lives of assets and the impairment of property and equipment, the accrual of research and development expenses and the valuation of common stock, stock options and warrants. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions. Intangible Assets The Company capitalizes payments it makes for licensed products when the payment is based on FDA approval for the product and the cost is recoverable based on expected future cash flows from the product. The cost is amortized on a straight-line basis over the estimated useful life of the product commencing on the approval date in accordance with ASC 350-30. To date, a $750 payment related to the approval of its Biorphen product has been capitalized and that cost is being amortized over five years. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the Company’s statements of operations for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment has been recognized since the Company’s inception in 2017. Revenue Recognition for Contracts with Customers The Company intends to generate its future revenues from direct sales of its approved Biorphen product and other of its products which are in development. In addition, the Company anticipates it will receive revenues from product licensing agreements for which it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party. The Company accounts for contracts with its customers in accordance with Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers. ASC 606 applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses whether these options provide a material right to the customer and, if so, they are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. Any amounts received prior to revenue recognition will be recorded as deferred revenue. Amounts expected to be recognized as revenue within the twelve months following the balance sheet date will be classified as current portion of deferred revenue in the Company’s balance sheets. Amounts not expected to be recognized as revenue within the twelve months following the balance sheet date are classified as long-term deferred revenue, net of current portion. Milestone Payments Royalties – Significant Financing Component – The Company sells Biorphen in the U.S. to wholesale pharmaceutical distributors, who then sell the product to hospitals and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual shipments of Biorphen represent performance obligations under each purchase order. The Company uses a third-party logistics (“3PL”) vendor to process and fulfill orders and has concluded it is the principal in the sales to wholesalers because it controls access to the 3PL vendor services rendered and directs the 3PL vendor activities. The Company has no significant obligations to wholesalers to generate pull-through sales. Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when the wholesalers sell Biorphen at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”) and government programs. In addition, the Company pays fees to wholesalers for their distribution services, inventory reporting and chargeback processing. The Company pays GPOs fees for administrative services and for access to GPO members and concluded the benefits received in exchange for these fees are not distinct from its sales of Biorphen, and accordingly it applies these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of Biorphen and the Company’s lengthy return period, there may be a significant period of time between when the product is shipped and when it issues credits on returned product. The Company estimates the transaction price when it receives each purchase order, taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. The Company has developed estimates for future returns and chargebacks of Biorphen and the impact of the other discounts and fees it pays. When estimating these adjustments to the transaction price, the Company reduces it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known. The Company recognizes revenue from Biorphen product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay the Company. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, the Company does not believe they have a significant incentive to return the product. Upon recognition of revenue from product sales of Biorphen, the estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, and GPO fees are included in sales reserves, accrued liabilities and net of accounts receivable. The Company monitors actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts end up differing from its estimates, it will make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment. In addition, the Company anticipates it will receive revenues from product licensing agreements where it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party. Cost of Product Sales Cost of product sales consists of the profit-sharing fees with the Company’s product licensing and development partners, the purchase costs for finished products from third-party manufacturers and freight and handling/storage costs from the Company’s 3PL logistics service provider. The cost of sales for profit-sharing fees and costs for purchased finished products and the associated inbound freight expense is recorded when the associated product sale revenue is recognized in accordance with the terms of shipment to customers while outbound freight and handling/storage fees charged by the 3PL service provider are expensed as they are incurred. Research and Development Expenses Research and development (“R&D”) expenses include both internal R&D activities and external contracted services. Internal R&D activity expenses include salaries, benefits and stock-based compensation and other costs to support the Company’s R&D operations. External contracted services include product development efforts including certain product licensor milestone payments, clinical trial activities, manufacturing and control-related activities and regulatory costs. R&D expenses are charged to operations as incurred. The Company reviews and accrues R&D expenses based on services performed and relies upon estimates of those costs applicable to the stage of completion of each project. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Upfront payments and milestone payments made for the licensing of technology on products which are not yet approved by the FDA are expensed as R&D in the period in which they are incurred. Milestone payments for FDA-approved products are capitalized and amortized over the expected economic life of the product. Nonrefundable advance payments for goods or services to be received in the future for use in R&D activities are recorded as prepaid expenses and are expensed as the related goods are delivered or the services are performed. Earnings (Loss) Per Share Basic net loss per common share is computed by dividing net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of common and common equivalent shares, such as unvested restricted stock, stock options and warrants, outstanding during the period. Common stock equivalents (using the treasury stock and “if converted” method) from stock options, unvested RSAs and RSUs, and warrants at March 31, 2020 and 2019 were 3,588,523 and 3,310,631, respectively, and are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. Included in the basic and diluted net loss per share calculation are RSUs awarded to directors that have vested, but the issuance and delivery of the common shares are deferred until the director retires from service as a director. Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC 718 Compensation — Stock Compensation. The guidance under ASC 718 requires companies to estimate the fair value of the stock-based compensation awards on the date of grant and record expense over the related service periods, which are generally the vesting period of the equity awards. The Company estimates the fair value of stock-based option awards using the Black-Scholes-Merton option-pricing model (“BSM”). The BSM requires the input of subjective assumptions, including the expected stock price volatility, the calculation of expected term, forfeitures and the fair value of the underlying common stock on the date of grant, among other inputs. The risk-free interest rate was determined from the implied yields for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options or warrants. Dividends on common stock are assumed to be zero for the BSM valuation of the stock options. The expected term of stock options granted is based on vesting periods and the contractual life of the options. Expected volatilities are based on comparable companies’ historical volatility along with a limited weighting included for the Company’s own volatility subsequent to its IPO, which management believes represents the most accurate basis for estimating expected future volatility under the current conditions. The Company accounts for forfeitures as they occur. Since the IPO in November 2018, the Company has used the closing common stock price on the date of grant for the fair value of the common stock. Fair Value Measurements We measure certain of our assets and liabilities at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value accounting requires characterization of the inputs used to measure fair value into a three-level fair value hierarchy as follows: Level 1 Level 2 Level 3 Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below take into account the market for the Company’s financials, assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt obligation. The carrying amounts of these financial instruments, except for the long-term debt obligation, approximate fair value due to the short-term maturities of these instruments. Based on borrowing rates currently available to the Company, the carrying value of the long-term debt obligation approximates its fair value. Impact of New Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The new guidance removes, modifies, and adds to certain disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The Company adopted the new guidance on January 1, 2020 which did not have a material impact on its financial position or results of operations. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The new guidance removes certain exceptions to the general principles of ASC 740 in order to simplify the complexities of its application. These changes include eliminations to the exceptions for intraperiod tax allocation, recognizing deferred tax liabilities related to outside basis differences, and year-to-date losses in interim periods, among others. The Company adopted the new guidance on January 1, 2020 which did not have a material impact on its financial position or results of operations.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 4 – Property and Equipment Property and equipment consist of the following: March 31, December 31, Computer hardware and software $ 174 $ 174 Furniture and fixtures 133 133 Equipment 994 994 Leasehold improvements 152 152 Construction in progress 4 9 1,457 1,462 Less: accumulated depreciation (432 ) (345 ) Property and equipment, net $ 1,025 $ 1,117 Depreciation expense for the three-month periods ended March 31, 2020 and 2019 was $87 and $22, respectively.

Long Term Debt

Long Term Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Long Term Debt	Note 5 — Long Term Debt On November 13, 2019, the Company entered into a credit agreement (the “SWK Credit Agreement”) with SWK Holdings Corporation (“SWK”) which provides for up to $10,000 in financing. The Company received proceeds of $5,000 at closing and was able to borrow an additional $5,000 upon the FDA approval of a second product developed by the Company, excluding EM-100. In March 2020, in conjunction with the Company’s Alkindi Sprinkle product licensing agreement (see Note 11) and the Company’s March 2020 sale of additional shares of its common stock (see Note 6), the Company and SWK amended the SWK Credit Agreement. The amendment provides the Company with the option to draw $2,000 as of now and can borrow an additional $3,000 upon the FDA approval of both its EM-100 product candidate and another one of its other product candidates. The term of the SWK Credit Agreement is for five years and borrowings bear interest at a rate of LIBOR 3-month plus 10.0%, subject to a stated LIBOR floor rate of 2.0%. A 2.0% unused credit limit fee is assessed during the first twelve months after the date of the SWK Credit Agreement and loan fees include a 5.0% exit fee based on the principal amounts drawn which is payable at the end of the term of the SWK Credit Agreement. The Company is required to maintain a minimum cash balance of $3,000, will only pay interest on the debt until May 2021 and then will pay 4.0% of the loan principal balance commencing on May 15, 2021 and then every three months thereafter until November 13, 2024 at which time the remaining principal balance is due. Borrowings under the SWK Credit Agreement are secured by the Company’s assets. The SWK Credit Agreement contains customary default provisions and covenants which include limits on additional indebtedness. In March 2020, SWK provided a waiver for the Company to obtain loans with the Small Business Association, if available. The Company will negotiate covenant targets for EBITDA and revenue within 180 days of the date of the SWK Credit Agreement. In connection with the SWK Credit Agreement, the Company issued warrants to SWK to purchase 51,239 shares of the Company’s common stock (the “SWK Warrants”) with an exercise price of $5.86 per share. The SWK Warrants are exercisable immediately and have a term of seven years. The SWK Warrants are subject to a cashless exercise feature, with the exercise price and number of shares issuable upon exercise subject to change in connection with stock splits, dividends, reclassifications and other conditions. Interest expenses of $195 was recorded during the three months ended March 31, 2020, which included $27 of debt discount amortization. As of March 31, 2020, $58 of accrued interest is included in accrued liabilities and $3 is included as a component of long-term debt. The table below reflects the future payments for the SWK loan principal and interest as of March 31, 2020. Amount 2020 $ 528 2021 1,165 2022 1,173 2023 996 2024 3,805 Total payments 7,667 Less: amount representing interest (2,667 ) Loan payable, gross 5,000 Less: unamortized discount (433 ) Long-term debt, net of unamortized discount (1) $ 4,567 (1) Long-term debt in the Company’s balance sheet includes $3 of accrued interest and fees.

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Common Stock	Note 6 — Common Stock The Company has 50,000,000 authorized shares of $0.001 par value common stock under its Amended and Restated Certificate of Incorporation. In March 2020, the Company entered into securities purchase agreements with various investors and sold 2,500,000 shares of its common stock at a price of $3.00 per share and received $7,459 in net proceeds after deducting issuance costs associated with the sale. In March 2020, the Company issued 379,474 shares of its common stock to Diurnal Limited (“Diurnal”) as a milestone fee for acquiring the U.S. marketing rights to Alkindi Sprinkle®, an orphan drug product currently under review with the FDA (see Note 11). The shares were valued at $1,264 based on the Company’s closing stock price on the date of issuance and this amount was recorded as a component of the Company’s research and development expense and an addition to its paid-in-capital. During the three months ended March 31, 2020, the Company issued 5,000 shares of its common stock resulting from stock option exercises under its 2018 Equity Incentive Plan (see Note 8). On April 2, 2020, the Company issued 100,000 shares of its common stock to an investor and received $300 in net proceeds (see Note 12 – Subsequent Events).

Common Stock Warrants

Common Stock Warrants	3 Months Ended
	Mar. 31, 2020
Warrants and Rights Note Disclosure [Abstract]
Common Stock Warrants	Note 7 — Common Stock Warrants The Company’s outstanding warrants to purchase shares of its common stock at March 31, 2020 are summarized in the table below. Description of Warrants No. of Shares Exercise Price Business Advisory Warrants 600,000 $ 0.01 Placement Agent Warrants – 2017 Preferred Stock Offering 607,096 $ 3.00 Placement Agent Warrants - IPO 414,000 $ 7.50 SWK Warrants - Debt 51,239 $ 5.86 Total 1,672,335 $ 3.13 (Avg) The holders of these warrants or their permitted transferees, are entitled to rights with respect to the registration under the Securities Act of 1933, as amended (the “Securities Act”) for their shares that are converted to common stock, including demand registration rights and piggyback registration rights. These rights are provided under the terms of a registration rights agreement between the Company and the investors.

Share-Based Payment Awards

Share-Based Payment Awards	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Share-Based Payment Awards	Note 8 — Share-Based Payment Awards The Company’s board of directors and stockholders approved the Eton Pharmaceuticals, Inc. 2017 Equity Incentive Plan in May 2017 (the “2017 Plan”), which authorized the issuance of up to 5,000,000 shares of the Company’s common stock. In conjunction with the Company’s IPO in November 2018, the Company’s stockholders and board of directors approved the 2018 Equity Incentive Plan (the “2018 Plan”) which succeeded the 2017 Plan. The Company has granted restricted stock awards (“RSAs”), stock options and restricted stock units (“RSUs”) for its common stock under the 2017 Plan and 2018 Plan as detailed in the tables below. There were 638,436 shares available for future issuance under the 2018 Plan as of March 31, 2020. Shares that are expired, terminated, surrendered or canceled without having been fully exercised will be available for future awards under the 2018 Plan. In addition, the 2018 Plan provides that commencing January 1, 2019 and through January 1, 2028, the share reserve will be increased annually by 4% of the total number of shares of common stock outstanding as of the preceding December 31, subject to a reduction at the discretion of the Company’s board of directors. The exercise price for stock options granted is not less than the fair value of common stock as determined by the board of directors as of the date of grant. The Company uses the closing stock price on the date of grant as the exercise price. During the third quarter of 2017, the Company issued 25,000 RSU’s to each of its four outside directors (100,000 total share units). The RSU’s issued to the outside directors were 100% vested at June 30, 2018. The associated 100,000 shares of the Company’s common stock will not be issued until the individual director retires from service from the Company’s board of directors. The Company has not issued any additional RSU’s. To date, all stock options issued have been non-qualified stock options, and the exercise prices were set at the fair value for the shares at the dates of grant. Options typically have a ten-year life, except for options to purchase 50,000 shares of the Company’s common stock granted to product consultants that expire within five years if the Company is not able to file certain product submissions to the FDA prior to the five-year expiration date. Furthermore, these option awards to the Company’s product consultants do not vest unless certain product submissions are made to the FDA, and accordingly, the Company has not recorded any expense for these contingently vesting option awards to its product consultants. For the three months ended March 31, 2020 and 2019, the Company’s total stock-based compensation expense was $365 and $345, respectively. Of these amounts, $325 and $269 was recorded in general and administrative expenses, respectively, and $40 and $76 was recorded in research and development expenses, respectively. A summary of stock option activity is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value Options outstanding as of December 31, 2019 1,829,878 $ 4.01 8.1 $ 6,014 Issued 1,172,000 $ 3.58 Exercised (5,000 ) $ 6.20 Forfeited/Cancelled (207,500 ) $ 5.84 Options outstanding as of March 31, 2020 2,789,378 $ 3.69 8.5 $ 3,178 Options exercisable at March 31, 2020 817,743 $ 3.36 6.8 $ 1,505 Options vested and expected to vest at March 31, 2020 2,739,378 $ 3.73 8.5 $ 3,042 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had strike prices lower than the fair value of the Company’s common stock. The assumptions used to calculate the fair value of options granted during the three months ended March 31, 2020 under the BSM were as follows: Expected dividends — % Expected volatility 95 % Risk-free interest rate 0.7 % Expected term 5.3 – 6.1 years Weighted average fair value $ 2.70 Expected Term — The Company has opted to use the “simplified method” for estimating the expected term of options granted to employees and directors, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option (generally ten years). The expected term of options granted to non-employees equals the contractual life of the options. Expected Volatility — Due to the Company’s limited operating history and a lack of Company-specific historical and implied volatility data, the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. The Company has continued this methodology plus given some limited weighting to its own volatility in the periods subsequent to its November 2018 IPO. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the stock-based awards. Risk-Free Interest Rate — The risk-free rate assumption is based on the U.S. Treasury instruments with maturities similar to the expected term of the Company’s stock options. Expected Dividend — The Company has not issued any dividends in its history and does not expect to issue dividends over the life of the options and therefore has estimated the dividend yield to be zero. Fair Value of Common Stock —The Company uses the closing stock price on the date of grant for the fair value of the common stock. As of March 31, 2020, there was a total of $5,371 of unrecognized compensation costs related to non-vested stock option awards. In the three-month period ended March 31, 2020, stock option exercises totaled 5,000 shares at an exercise price of $6.20 per share with an intrinsic value of $3. There was one stock option exercise for 20,000 shares during the three months ended March 31, 2019 at an exercise price of $0.21 per share with an intrinsic value of $120. In December 2018, the Company’s board of directors adopted an initial offering of the Company’s common stock under the Company’s 2018 Employee Stock Purchase Plan (the “ESPP”). The Company’s ESPP provides for an initial reserve of 150,000 shares and this reserve is automatically increased on January 1 of each year by the lesser of 1% of the outstanding common shares at December 31 of the preceding year or 150,000 shares, subject to reduction at the discretion of the Company’s board of directors. As of March 31, 2020, there were 405,115 shares available for issuance under the ESPP. The initial offering of the ESPP began on December 17, 2018 and ended on December 10, 2019. The annual offerings consist of two stock purchase periods, with the first purchase period ending in June and the second purchase period ending in December. The terms of the ESPP permit employees of the Company to use payroll deductions to purchase stock at a price per share that is at least the lesser of (1) 85% of the fair market value of a share of common stock on the first date of an offering or (2) 85% of the fair market value of a share of common stock on the date of purchase. After the initial offering period ended, subsequent twelve-month offering periods automatically commence over the term of the ESPP on the day that immediately follows the conclusion of the preceding offering, each consisting of two purchase periods approximately six months in duration. In accordance with the June and December stock purchase periods for the ESPP, there were no share issuances in the first three months of 2020 or 2019. The weighted average grant date fair value of share awards in 2020 and 2019 was $2.64 and $2.59, respectively. Employees contributed $50 and $88 via payroll deductions during the three months ended March 31, 2020 and 2019, respectively. The Company recorded an expense of $21 and $42 related to the ESPP in the three-month periods ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and December 31, 2019, the accompanying condensed balance sheets include $58 and $16, respectively, in accrued liabilities for remaining employee ESPP contributions.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Note 9 — Related Party Transactions Harrow Harrow was issued 3,500,000 shares of the Company’s common stock at the formation of the Company at the $0.001 par value per share price as the paid-in-capital contribution from Harrow. The Company and Harrow signed licensing agreements for two products developed by Harrow whereby Harrow assigned the product rights to the Company. In July 2018, the Company determined that one of the products was not viable for its portfolio of product opportunities and cancelled the licensing agreement whereby Harrow retains the product rights. On May 6, 2019, the Company entered into an Asset Purchase Agreement (the “CT-100 Asset Purchase Agreement”) with Harrow. Pursuant to the CT-100 Asset Purchase Agreement, the Company sold all of its right, title and interest in CT-100 to Harrow, including any such product that incorporates or utilizes its intellectual property rights (a “Product” or, collectively, “Products”). Pursuant to the CT-100 Asset Purchase Agreement, Harrow will make certain payments to the Company upon the achievement of certain development and commercial milestones. In addition, Harrow is required to pay the Company a royalty in the low-single digit percentage range worldwide on a country-by-country basis on net sales for a period of the longer of 15 years from the date of the first commercial sale of a product in a particular country or the time that a valid intellectual property claim on such Product remains in force in the applicable country. The CT-100 Asset Purchase Agreement also contains customary representations, warranties, covenants and indemnities by the parties. As part of the early start-up for the Company’s pharmaceutical business in 2017, key executives at Harrow received a total of 1,500,000 shares of restricted common stock in the Company for consulting services, and certain Harrow managers also received stock options to purchase a total of 130,000 shares of common stock from the Company (20,000 of these options were forfeited in 2018). The restricted stock and stock options vested in full on April 30, 2018. Additionally, the Chief Executive Officer of Harrow is a member of the Company’s board of directors. Chief Executive Officer The Company’s CEO has a partial interest in several companies that the Company is working with for product development and potential marketing if the products are approved by the FDA as detailed below. The Company acquired the exclusive rights to sell the EM-100 product in the United States pursuant to a sales and marketing agreement (the “Eyemax Agreement”) dated August 11, 2017 between the Company and Eyemax LLC (“Eyemax”), an entity affiliated with the Company’s CEO. The Company also held a right of first refusal to obtain the exclusive license rights for geographic areas outside of the United States. Pursuant to the Eyemax Agreement, the Company is responsible for all costs of testing and FDA approval of the product, other than the FDA filing fee which will be paid by Eyemax. The Company was also responsible for commercializing the product in the United States at its expense. The Company paid Eyemax $250 upon execution of the Eyemax Agreement, which was recorded as a component of R&D expense. Under the terms of the original agreement, the Company would pay Eyemax $250 upon FDA approval and $500 upon the first commercial sale of the product and pay Eyemax a royalty of 10% on the net sales of all products. The Eyemax Agreement was for an initial term of 10 years from the date of the Eyemax Agreement, subject to successive two-year renewals unless the Company elected to terminate the Eyemax Agreement. There were no amounts due under the terms of the Eyemax Agreement as of March 31, 2020 or December 31, 2019. On February 18, 2019, The Company entered into an Amended and Restated Agreement with Eyemax amending the Sales Agreement (the “Amended Agreement”). Pursuant to the Amended Agreement, Eyemax sold the Company all of its right, title and interest in EM-100, including any such product that incorporates or utilizes Eyemax’s intellectual property rights. Under the Amended Agreement, the Company assumed certain liabilities of Eyemax under its Exclusive Development & Supply Agreement with Excelvision SAS dated as of July 11, 2013, as amended (the “Excelvision Agreement”), with respect to certain territories and arising during certain time periods. Pursuant to the Amended Agreement, the Company remains obligated to pay Eyemax two milestones payments: (i) one milestone payment for $250 upon regulatory approval in the territory by the FDA of the first single agent product and (ii) one milestone payment for $500 following the first commercial sale of the first single agent product in the territory. Following payment of the milestones, the Company is entitled to retain all of the non-royalty transaction revenues and royalties up to $2,000 (the “Recovery Amount”). After the Company has retained the full Recovery Amount, it is entitled to retain half of all royalty and non-royalty transaction revenue. The Amended Agreement also contains customary representations, warranties, covenants and indemnities by the parties. The EM-100 asset and its associated product rights were sold to Bausch on February 18, 2019 and future potential royalties of twelve percent of net sales of Bausch sales of EM-100, pending an FDA approval for EM-100, will be split between Eyemax and the Company. The royalty from Bausch is subject to reduction if a competitive product with the same active pharmaceutical ingredient is launched in the U.S. or if the EM-100 U.S market share falls below a specified target percentage. There were no amounts due under the terms of the Amended Agreement as of March 31, 2020 or December 31, 2019. The Company had acquired the exclusive rights to sell the DS-100 product in the United States pursuant to an exclusive development and supply agreement (the “Andersen Agreement”) dated July 9, 2017 between the Company and Andersen Pharma, LLC (“Andersen”), an entity affiliated with the Company’s CEO. The Company also held an option to purchase the DS-100 product and all related intellectual property and government approvals at a price of one dollar. Pursuant to the Andersen Agreement, Andersen was responsible for obtaining FDA approval at its expense and manufacturing the product for sale to the Company at its cost. The Company was responsible for commercializing the product in the United States at its expense. The Company paid Andersen $750 upon execution of the Andersen Agreement, which was recorded as a component of R&D expense and was to pay Andersen $750 upon successful completion of three registration batches of product, $750 upon submission of a New Drug Application (“NDA”) and $750 upon FDA approval. The Company was also required to pay Andersen 50% of the net profit from the sale of the product. The Andersen Agreement was for an initial term of five years from the first commercial sale of the product, subject to successive two-year renewals unless either party elected to terminate the Andersen Agreement. There were no amounts due under the terms of the Andersen Agreement as of March 31, 2020 or December 31, 2019. The aforementioned option to purchase the product and all related intellectual property and government approvals was considered to represent variable interest in the affiliated entity. The affiliated entity was not considered to be a variable interest entity. In April 2020, the Company terminated the Andersen Agreement with no payments due to Andersen. The Company acquired the DS-200 product and all related intellectual property and government approvals pursuant to an asset purchase agreement (the “Selenix Agreement”) dated June 23, 2017 between the Company and Selenix LLC (“Selenix”), an entity affiliated with the Company’s CEO. Pursuant to the Selenix Agreement, the Company paid Selenix $1,500 at signing, which was recorded as a component of R&D expense and paid $1,500 in April 2019 upon submission of an NDA on March 13, 2019 which was reflected as a component of R&D expense in 2019. The Company will pay $1,000 upon FDA approval of the DS-200 product. The Company has also agreed to pay Selenix 50% of the net profit from the sale of the product for the first 10 years following the date of the Selenix Agreement. There were no amounts due under the terms of the Selenix Agreement as of March 31, 2020 or December 31, 2019.

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Note 10 — Leases The Company recognizes a right-of-use (“ROU”) asset and a lease liability on the balance sheet for substantially all leases, including operating leases. The Company separates lease components from non-lease components related to its office space lease. The Company does not have any lease contracts that contain: (1) an option to extend that the Company is reasonably certain to exercise, (2) an option to terminate that the Company is reasonably certain not to exercise, or (3) an option to extend (or not to terminate) in which exercise of the option is controlled by the lessor. Additionally, the Company does not have any leases with residual value guarantees or material restrictive covenants. Lease liabilities and their corresponding right-of-use assets have been recorded based on the present value of the future lease payments over the expected lease term. One of the Company’s lease agreements contains provisions for escalating rent payments over the term of the lease. The Company’s leases do not contain readily determinable implicit discount rates, and therefore, the Company was required to use its incremental borrowing rate of 7.8% to discount the future lease payments based on information available at lease commencement. The incremental borrowing rate was estimated by determining the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s operating lease cost as presented in the “Research and Development” and “General and Administrative” captions in the condensed statements of operations was $14 and $21, respectively, for the three months ended March 31, 2020 and $14 and $23, respectively, for the three months ended March 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities was $32 for the three months ended March 31, 2020. The ROU asset amortization for the three-month periods ended March 31, 2020 and 2019 was $31 and $30, respectively, and is reflected within depreciation and amortization on the Company’s condensed statements of cash flows. As of March 31, 2020, the weighted-average remaining lease term was 1.0 years, and the weighted-average incremental borrowing rate was 7.8%. The table below presents the lease-related assets and liabilities recorded on the balance sheet as of March 31, 2020 (in thousands). Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets, net $ 129 Total leased assets $ 129 Liabilities Operating lease liabilities, current Accrued liabilities $ 120 Total operating lease liabilities $ 120 The Company’s future lease commitments for its administrative offices in Deer Park, Illinois and its laboratory facility in Lake Zurich, Illinois as of March 31, 2020 are as indicated below: Total 2020 2021 2022 Thereafter Undiscounted lease payments $ 124 105 19 — — Less: Imputed interest (4 ) Total lease liabilities $ 120

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11 — Commitments and Contingencies Legal The Company is subject to legal proceedings and claims that may arise in the ordinary course of business. The Company is not aware of any pending or threatened litigation matters at this time that may have a material impact on the operations of the Company. On May 7, 2020, the Company announced that it has been confirmed as the first filer of a patent challenge against Exela Pharma Science’s Elcys product (cysteine hydrochloride injection). License and product development agreements The Company has entered into various agreements in addition to those discussed above which are described below. The Company acquired the exclusive rights to sell the DS-300 product in the United States pursuant to a sales and marketing agreement dated November 17, 2017 with an unaffiliated third party (the “Sales Agreement”). Pursuant to the Sales Agreement, the licensor is responsible for obtaining FDA approval, at its expense, and the Company is responsible for commercializing the product in the United States at its expense. The Company will pay the third party 50% of the net profit from the sale of the product. The initial term is for the first 10 years following the first commercial sale of the product. The Company acquired the exclusive license to develop, manufacture and sell ET-103 in the United States pursuant to an Exclusive License and Supply Agreement dated August 3, 2018 between the Company and Liqmeds Worldwide Limited (“LMW”), an unaffiliated entity. Pursuant to the agreement, the Company will be responsible for, and will own, all regulatory filings and approvals at its expense, provided that it shall have the right to recoup 35% of any regulatory filing fees from the initial profits from the sale of ET-103 and, provided further, the licensor shall be responsible for any bioequivalence study and shall be responsible for 60% of the costs of such study. An affiliate of the licensor shall manufacture the ET-103 and sell it to the Company at its cost. The Company paid the licensor $350 upon execution of the agreement and will pay the licensor $1,500 upon the FDA’s acceptance of an NDA for review, $1,000 upon FDA approval, $1,500 upon issuance of patent covering ET-103 listed in the FDA’s Orange Book and $500 in the event of product sales in excess of $10,000 in any calendar year. In addition, the Company is required to pay the licensor 35% of the net profit from product sales. The license agreement is for an initial term of 10 years from the date of the first commercial sale of the product, subject to two-year renewals unless either party elects to terminate no less than 12 months prior to the then current term. The agreement also contains customary representations, warranties, covenants and indemnities by the parties. On January 23, 2019, the Company entered into a Licensing and Supply Agreement (the “Agreement”) with LMW for ET-104 oral liquid, a development stage product candidate (“ET-104”). Pursuant to the terms of the Agreement, the Company will be responsible for regulatory and marketing activities. LMW will be responsible for development and manufacturing of ET-104. The Company paid the licensor $350 upon execution of the Agreement and an additional $350 after receiving successful bioequivalence study results, and will pay $325 upon the FDA’s acceptance of an NDA for review, $325 upon FDA approval of the NDA, $650 upon issuance of patent covering ET-104 listed in the FDA’s Orange Book and $500 in the event that product sales in excess of $10,000 are achieved within a calendar year. In addition, the Company is required to pay the licensor 35% of the net profit from product sales. The Agreement is for an initial term of 10 years from the date of the first commercial sale of the product. The Company will retain sole ownership of the NDA after expiration of the Agreement. On February 8, 2019, the Company entered into an Exclusive Licensing and Supply Agreement (the “ET-202 License Agreement”) with Sintetica SA (“Sintetica”) for marketing rights in the United States to Biorphen® which is used for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia. The product was submitted to the FDA for review and received FDA approval on October 21, 2019. Pursuant to the terms of the ET-202 License Agreement, the Company is responsible for marketing activities and Sintetica is responsible for development, manufacturing, and regulatory activities for the product. In 2019, the Company paid Sintetica a licensing payment of $2,000 upon execution of the ET-202 License Agreement and paid $750 upon the commencement of commercial product shipments. Sintetica supplies Biorphen to the Company at its direct costs and the Company retains 5% of net sales as a marketing fee. Sintetica is entitled to receive the first $500 of product profits. All additional profit will be split 50% to the Company and 50% to Sintetica. The ET-202 License Agreement has a ten-year term commencing on November 26, 2019. On February 8, 2019, the Company also entered into an Exclusive Licensing and Supply Agreement (the “ET-203 License Agreement”) with Sintetica for marketing rights in the United States to ET-203, an injectable product candidate for use in the hospital setting. Pursuant to the terms of the ET-203 License Agreement, the Company will be responsible for marketing activities and Sintetica will be responsible for development, manufacturing, and regulatory activities related to obtaining regulatory approval. The Company paid Sintetica a licensing payment of $1,000 upon execution of the ET-203 License Agreement and will pay $750 upon FDA approval and the commercial sale of the product candidate. Upon approval, Sintetica will supply ET-203 to the Company at its direct costs. The Company will retain 5% of net sales as a marketing fee. Sintetica will be entitled to receive the first $500 of product profits. All additional profit will be split 50% to the Company and 50% to Sintetica. The ET-203 License Agreement has a ten-year term from first commercial sale of product. On June 12, 2019, the Company entered into an Exclusive Licensing and Supply Agreement (the “ET-105 License Agreement”) with Aucta Pharmaceuticals, Inc. (“Aucta”) for marketing rights in the United States to ET-105, a product candidate for use as an adjunct therapy for partial seizures, primary generalized tonic-clonic seizures, and generalized seizures of Lennox-Gastaut syndrome in patients two years of age and older. Pursuant to the terms of the ET-105 License Agreement, the Company will be responsible for marketing activities and Aucta will be responsible for development, manufacturing, and regulatory activities related to obtaining regulatory approval. The Company paid Aucta a licensing payment of $2,000 in August 2019 upon receiving an acceptance for review letter from the FDA and will pay $2,000 upon FDA approval and commercial sales of the product candidate and another $1,000 upon issuance of an Orange-book listed patent. Aucta will receive a fifteen percent royalty on net sales and will be entitled to receive milestone payments of up to $18,000 based on commercial success of the product, including: ● $1,000 when net sales exceed $10 million in a calendar year ● $2,000 when net sales exceed $20 million in a calendar year ● $5,000 when net sales exceed $50 million in a calendar year ● $10,000 when net sales exceed $100 million in a calendar year On March 27, 2020, the Company entered into an Exclusive Licensing and Supply Agreement (the “Alkindi License Agreement”) with Diurnal for marketing Alkindi Sprinkle in the United States. Alkindi Sprinkle’s New Drug Application (NDA) is currently under review with the U.S Food and Drug Administration (FDA) for approval as a replacement therapy for pediatric adrenal insufficiency (AI), including congenital adrenal hyperplasia (CAH) in patients from birth to less than 17 years of age. The application has been assigned a Prescription Drug User Fee Act (PDUFA) date of September 29, 2020. For the initial licensing milestone fee, the Company paid Diurnal $3,500 in cash and issued 379,474 shares of its common stock to Diurnal which was valued at $1,264 based on the Company’s closing stock price of $3.33 on March 26, 2020 (see Note 6). The total amount of $4,764 was recorded as a component of research and development expense in the Company’s condensed statement of operations for the period ended March 31, 2020. Indemnifications As permitted under Delaware law and in accordance with the Company’s Amended and Restated Bylaws, the Company is required to indemnify its officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its directors and officers. The Company believes the fair value of the indemnification rights and agreements is minimal. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of March 31, 2020 or December 31, 2019.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 12 — Subsequent Events On April 2, 2020, the Company sold 100,000 shares of its common stock to an investment fund at a price of $3.00 per share and received net proceeds of $300. On May 4, 2020, the Company entered into a promissory note agreement with Bank of America, NA (the “Loan”) under the Paycheck Protection Program (“the PPP”) which is administered by the U.S. Small Business Administration. The Company received $361 in proceeds from the Loan which has a two-year term and accrues interest at the rate of 1.0% per annum and is obligated to make equal monthly payments of principal and interest, beginning seven months from the date of the loan until the maturity date. Under the PPP, the Company may apply for and be granted forgiveness for all or part of the PPP Loan.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company has prepared the accompanying financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying interim condensed financial statements are unaudited and have been prepared on the same basis as the audited financial statements and, in the opinion of management, reflect all adjustments necessary for the fair presentation of the Company’s financial position as of March 31, 2020 and the results of its operations and its cash flows for the periods ended March 31, 2020 and 2019. The financial data and other information disclosed in these notes related to the three-month periods ended March 31, 2020 and 2019 are also unaudited. The results for the three-month period ended March 31, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods or any future year or period.
Use of Estimates	Use of Estimates 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, the disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, provisions for uncollectible receivables and sales returns, valuation of inventories, useful lives of assets and the impairment of property and equipment, the accrual of research and development expenses and the valuation of common stock, stock options and warrants. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions.
Intangible Assets	Intangible Assets The Company capitalizes payments it makes for licensed products when the payment is based on FDA approval for the product and the cost is recoverable based on expected future cash flows from the product. The cost is amortized on a straight-line basis over the estimated useful life of the product commencing on the approval date in accordance with ASC 350-30. To date, a $750 payment related to the approval of its Biorphen product has been capitalized and that cost is being amortized over five years.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the Company’s statements of operations for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment has been recognized since the Company’s inception in 2017.
Revenue Recognition for Contracts with Customers	Revenue Recognition for Contracts with Customers The Company intends to generate its future revenues from direct sales of its approved Biorphen product and other of its products which are in development. In addition, the Company anticipates it will receive revenues from product licensing agreements for which it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party. The Company accounts for contracts with its customers in accordance with Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers. ASC 606 applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses whether these options provide a material right to the customer and, if so, they are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. Any amounts received prior to revenue recognition will be recorded as deferred revenue. Amounts expected to be recognized as revenue within the twelve months following the balance sheet date will be classified as current portion of deferred revenue in the Company’s balance sheets. Amounts not expected to be recognized as revenue within the twelve months following the balance sheet date are classified as long-term deferred revenue, net of current portion. Milestone Payments Royalties – Significant Financing Component – The Company sells Biorphen in the U.S. to wholesale pharmaceutical distributors, who then sell the product to hospitals and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual shipments of Biorphen represent performance obligations under each purchase order. The Company uses a third-party logistics (“3PL”) vendor to process and fulfill orders and has concluded it is the principal in the sales to wholesalers because it controls access to the 3PL vendor services rendered and directs the 3PL vendor activities. The Company has no significant obligations to wholesalers to generate pull-through sales. Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when the wholesalers sell Biorphen at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”) and government programs. In addition, the Company pays fees to wholesalers for their distribution services, inventory reporting and chargeback processing. The Company pays GPOs fees for administrative services and for access to GPO members and concluded the benefits received in exchange for these fees are not distinct from its sales of Biorphen, and accordingly it applies these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of Biorphen and the Company’s lengthy return period, there may be a significant period of time between when the product is shipped and when it issues credits on returned product. The Company estimates the transaction price when it receives each purchase order, taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. The Company has developed estimates for future returns and chargebacks of Biorphen and the impact of the other discounts and fees it pays. When estimating these adjustments to the transaction price, the Company reduces it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known. The Company recognizes revenue from Biorphen product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay the Company. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, the Company does not believe they have a significant incentive to return the product. Upon recognition of revenue from product sales of Biorphen, the estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, and GPO fees are included in sales reserves, accrued liabilities and net of accounts receivable. The Company monitors actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts end up differing from its estimates, it will make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment. In addition, the Company anticipates it will receive revenues from product licensing agreements where it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party.
Cost of Product Sales	Cost of Product Sales Cost of product sales consists of the profit-sharing fees with the Company’s product licensing and development partners, the purchase costs for finished products from third-party manufacturers and freight and handling/storage costs from the Company’s 3PL logistics service provider. The cost of sales for profit-sharing fees and costs for purchased finished products and the associated inbound freight expense is recorded when the associated product sale revenue is recognized in accordance with the terms of shipment to customers while outbound freight and handling/storage fees charged by the 3PL service provider are expensed as they are incurred.
Research and Development Expenses	Research and Development Expenses Research and development (“R&D”) expenses include both internal R&D activities and external contracted services. Internal R&D activity expenses include salaries, benefits and stock-based compensation and other costs to support the Company’s R&D operations. External contracted services include product development efforts including certain product licensor milestone payments, clinical trial activities, manufacturing and control-related activities and regulatory costs. R&D expenses are charged to operations as incurred. The Company reviews and accrues R&D expenses based on services performed and relies upon estimates of those costs applicable to the stage of completion of each project. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Upfront payments and milestone payments made for the licensing of technology on products which are not yet approved by the FDA are expensed as R&D in the period in which they are incurred. Milestone payments for FDA-approved products are capitalized and amortized over the expected economic life of the product. Nonrefundable advance payments for goods or services to be received in the future for use in R&D activities are recorded as prepaid expenses and are expensed as the related goods are delivered or the services are performed.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic net loss per common share is computed by dividing net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of common and common equivalent shares, such as unvested restricted stock, stock options and warrants, outstanding during the period. Common stock equivalents (using the treasury stock and “if converted” method) from stock options, unvested RSAs and RSUs, and warrants at March 31, 2020 and 2019 were 3,588,523 and 3,310,631, respectively, and are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. Included in the basic and diluted net loss per share calculation are RSUs awarded to directors that have vested, but the issuance and delivery of the common shares are deferred until the director retires from service as a director.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC 718 Compensation — Stock Compensation. The guidance under ASC 718 requires companies to estimate the fair value of the stock-based compensation awards on the date of grant and record expense over the related service periods, which are generally the vesting period of the equity awards. The Company estimates the fair value of stock-based option awards using the Black-Scholes-Merton option-pricing model (“BSM”). The BSM requires the input of subjective assumptions, including the expected stock price volatility, the calculation of expected term, forfeitures and the fair value of the underlying common stock on the date of grant, among other inputs. The risk-free interest rate was determined from the implied yields for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options or warrants. Dividends on common stock are assumed to be zero for the BSM valuation of the stock options. The expected term of stock options granted is based on vesting periods and the contractual life of the options. Expected volatilities are based on comparable companies’ historical volatility along with a limited weighting included for the Company’s own volatility subsequent to its IPO, which management believes represents the most accurate basis for estimating expected future volatility under the current conditions. The Company accounts for forfeitures as they occur. Since the IPO in November 2018, the Company has used the closing common stock price on the date of grant for the fair value of the common stock.
Fair Value Measurements	Fair Value Measurements We measure certain of our assets and liabilities at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value accounting requires characterization of the inputs used to measure fair value into a three-level fair value hierarchy as follows: Level 1 Level 2 Level 3 Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below take into account the market for the Company’s financials, assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt obligation. The carrying amounts of these financial instruments, except for the long-term debt obligation, approximate fair value due to the short-term maturities of these instruments. Based on borrowing rates currently available to the Company, the carrying value of the long-term debt obligation approximates its fair value.
Impact of New Accounting Pronouncements	Impact of New Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The new guidance removes, modifies, and adds to certain disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The Company adopted the new guidance on January 1, 2020 which did not have a material impact on its financial position or results of operations. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The new guidance removes certain exceptions to the general principles of ASC 740 in order to simplify the complexities of its application. These changes include eliminations to the exceptions for intraperiod tax allocation, recognizing deferred tax liabilities related to outside basis differences, and year-to-date losses in interim periods, among others. The Company adopted the new guidance on January 1, 2020 which did not have a material impact on its financial position or results of operations.

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consist of the following: March 31, December 31, Computer hardware and software $ 174 $ 174 Furniture and fixtures 133 133 Equipment 994 994 Leasehold improvements 152 152 Construction in progress 4 9 1,457 1,462 Less: accumulated depreciation (432 ) (345 ) Property and equipment, net $ 1,025 $ 1,117

Long Term Debt (Tables)

Long Term Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of Future Payments of Long Term Debt	The table below reflects the future payments for the SWK loan principal and interest as of March 31, 2020. Amount 2020 $ 528 2021 1,165 2022 1,173 2023 996 2024 3,805 Total payments 7,667 Less: amount representing interest (2,667 ) Loan payable, gross 5,000 Less: unamortized discount (433 ) Long-term debt, net of unamortized discount (1) $ 4,567 (1) Long-term debt in the Company’s balance sheet includes $3 of accrued interest and fees.

Common Stock Warrants (Tables)

Common Stock Warrants (Tables)	3 Months Ended
	Mar. 31, 2020
Warrants and Rights Note Disclosure [Abstract]
Summary of Warrants Outstanding	The Company’s outstanding warrants to purchase shares of its common stock at March 31, 2020 are summarized in the table below. Description of Warrants No. of Shares Exercise Price Business Advisory Warrants 600,000 $ 0.01 Placement Agent Warrants – 2017 Preferred Stock Offering 607,096 $ 3.00 Placement Agent Warrants - IPO 414,000 $ 7.50 SWK Warrants - Debt 51,239 $ 5.86 Total 1,672,335 $ 3.13 (Avg)

Share-Based Payment Awards (Tab

Share-Based Payment Awards (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Summary of Stock Option Activity	A summary of stock option activity is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value Options outstanding as of December 31, 2019 1,829,878 $ 4.01 8.1 $ 6,014 Issued 1,172,000 $ 3.58 Exercised (5,000 ) $ 6.20 Forfeited/Cancelled (207,500 ) $ 5.84 Options outstanding as of March 31, 2020 2,789,378 $ 3.69 8.5 $ 3,178 Options exercisable at March 31, 2020 817,743 $ 3.36 6.8 $ 1,505 Options vested and expected to vest at March 31, 2020 2,739,378 $ 3.73 8.5 $ 3,042
Schedule of Assumptions Used to Calculate Fair Value of Options Granted	The assumptions used to calculate the fair value of options granted during the three months ended March 31, 2020 under the BSM were as follows: Expected dividends — % Expected volatility 95 % Risk-free interest rate 0.7 % Expected term 5.3 – 6.1 years Weighted average fair value $ 2.70

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of Lease-related Assets and Liabilities	The table below presents the lease-related assets and liabilities recorded on the balance sheet as of March 31, 2020 (in thousands). Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets, net $ 129 Total leased assets $ 129 Liabilities Operating lease liabilities, current Accrued liabilities $ 120 Total operating lease liabilities $ 120
Schedule of Lease Commitments	The Company’s future lease commitments for its administrative offices in Deer Park, Illinois and its laboratory facility in Lake Zurich, Illinois as of March 31, 2020 are as indicated below: Total 2020 2021 2022 Thereafter Undiscounted lease payments $ 124 105 19 — — Less: Imputed interest (4 ) Total lease liabilities $ 120

Company Overview (Details Narra

Company Overview (Details Narrative) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Jun. 30, 2017	Mar. 31, 2020	Mar. 31, 2019
Start-up capital			$ 20,055
Proceeds from loan offering	$ 4,750
Proceeds from sale of shares of common stock				$ 7,459
Initial Public Offering [Member]
Net cash proceeds from initial public offering		$ 21,960

Liquidity Considerations (Detai

Liquidity Considerations (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ (73,237)		$ (64,188)
Net cash used in operating activities	(7,217)	$ (6,767)
Cash and cash equivalents	$ 12,335		$ 12,066

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accounting Policies [Abstract]
Payment of product licensing rights	$ 750
Product licensing rights amortized, description	Cost is being amortized over five years.
Impairment of long-lived assets
Antidilutive securities excluded from computation of earnings per share	3,588,523	3,310,631

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 87	$ 22

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Computer hardware and software	$ 174	$ 174
Furniture and fixtures	133	133
Equipment	994	994
Leasehold improvements	152	152
Construction in progress	4	9
Property and equipment, gross	1,457	1,462
Less: accumulated depreciation	(432)	(345)
Property and equipment, net	$ 1,025	$ 1,117

Long Term Debt (Details Narrati

Long Term Debt (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Nov. 13, 2019	Mar. 31, 2020	Mar. 31, 2019
Borrowing amount	$ 2,000
Warrants issued to purchase common stock		1,672,335
Warrants exercise price		$ 3.13
Interest expenses		$ 195
Debt discount amortization		27
Accrued interest		58
Component of long term		$ 3
Warrant [Member]
Warrants issued to purchase common stock		51,239
Warrants exercise price		$ 5.86
Warrants expiration term		7 years
SWK Credit Agreement [Member]
Borrowing amount	5,000
Minimum cash balance to be maintain in each quarter end	$ 3,000
Description of borrowing	On November 13, 2019, the Company entered into a credit agreement (the "SWK Credit Agreement") with SWK Holdings Corporation ("SWK") which provides for up to $10,000 in financing. The Company received proceeds of $5,000 at closing and was able to borrow an additional $5,000 upon the FDA approval of a second product developed by the Company, excluding EM-100. In March 2020, in conjunction with the Company's Alkindi Sprinkle product licensing agreement (see Note 11) and the Company's March 2020 sale of additional shares of its common stock (see Note 6), the Company and SWK amended the SWK Credit Agreement. The amendment provides the Company with the option to draw $2,000 as of now and can borrow an additional $3,000 upon the FDA approval of both its EM-100 product candidate and another one of its other product candidates. The term of the SWK Credit Agreement is for five years and borrowings bear interest at a rate of LIBOR 3-month plus 10.0%, subject to a stated LIBOR floor rate of 2.0%. A 2.0% unused credit limit fee is assessed during the first twelve months after the date of the SWK Credit Agreement and loan fees include a 5.0% exit fee based on the principal amounts drawn which is payable at the end of the term of the SWK Credit Agreement. The Company is required to maintain a minimum cash balance of $3,000, will only pay interest on the debt until May 2021 and then will pay 4.0% of the loan principal balance commencing on May 15, 2021 and then every three months thereafter until November 13, 2024 at which time the remaining principal balance is due. Borrowings under the SWK Credit Agreement are secured by the Company's assets. The SWK Credit Agreement contains customary default provisions and covenants which include limits on additional indebtedness. In March 2020, SWK provided a waiver for the Company to obtain loans with the Small Business Association, if available. The Company will negotiate covenant targets for EBITDA and revenue within 180 days of the date of the SWK Credit Agreement.
SWK Credit Agreement [Member] | Unused lines of Credit [Member]
Borrowings bear interest	2.00%
SWK Credit Agreement [Member] | (LIBOR) Swap Rate [Member]
Borrowings bear interest	10.00%
SWK Credit Agreement [Member] | Stated LIBOR Floor Rate [Member]
Borrowings bear interest	2.00%
SWK Credit Agreement [Member] | Food and Drug Administration's [Member]
Borrowing amount	$ 5,000
SWK Credit Agreement [Member] | Maximum [Member]
Borrowing amount	$ 10,000

Long Term Debt - Schedule of Fu

Long Term Debt - Schedule of Future Payments of Long Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2020		Dec. 31, 2019
Debt Disclosure [Abstract]
2020	$ 528
2021	1,165
2022	1,173
2023	996
2024	3,805
Total payments	7,667
Less: amount representing interest	(2,667)
Loan payable, gross	5,000
Less: unamortized discount	(433)
Long-term debt, net of unamortized discount	$ 4,570	[1]	$ 4,540
[1]	Long-term debt in the Company's balance sheet includes $3 of accrued interest and fees.

Long Term Debt - Schedule of _2

Long Term Debt - Schedule of Future Payments of Long Term Debt (Details) (Parenthetical) $ in Thousands	Mar. 31, 2020USD ($)
Debt Disclosure [Abstract]
Accrued interest and fees	$ 3

Common Stock (Details Narrative

Common Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Apr. 02, 2020	Mar. 31, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Common stock, shares authorized		50,000,000	50,000,000		50,000,000
Common stock, par value		$ 0.001	$ 0.001		$ 0.001
Value of common stock shares issued			$ 7,459
Proceeds from issuance of common stock			$ 7,459
Subsequent Event [Member] | Investors [Member]
Number of common stock shares issued	100,000
Proceeds from issuance of common stock	$ 300
2018 Equity Incentive Plan [Member]
Number of stock issued for exercise of stock options			5,000
Diurnal Limited [Member]
Number of common stock shares issued		379,474
Value of common stock shares issued		$ 1,264
Securities Purchase Agreements [Member]
Sale of stock, number of shares issued in transaction		2,500,000
Sale of stock, price per share		$ 3	$ 3
Proceeds from sale of stock, consideration received on transaction		$ 7,459

Common Stock Warrants - Summary

Common Stock Warrants - Summary of Warrants Outstanding (Details)	Mar. 31, 2020$ / sharesshares
No. of Shares, Total | shares	1,672,335
Exercise Price | $ / shares	$ 3.13
Business Advisory Warrants [Member]
No. of Shares, Total | shares	600,000
Exercise Price | $ / shares	$ 0.01
Placement Agent Warrants - 2017 Preferred Stock Offering [Member]
No. of Shares, Total | shares	607,096
Exercise Price | $ / shares	$ 3
Placement Agent Warrants - IPO [Member]
No. of Shares, Total | shares	414,000
Exercise Price | $ / shares	$ 7.50
SWK Warrants - Debt [Member]
No. of Shares, Total | shares	51,239
Exercise Price | $ / shares	$ 5.86

Share-Based Payment Awards (Det

Share-Based Payment Awards (Details Narrative) $ / shares in Units, $ in Thousands	Jun. 30, 2018	Mar. 31, 2020USD ($)$ / sharesshares	Mar. 31, 2019USD ($)$ / sharesshares	Sep. 30, 2017Directorshares	Dec. 31, 2019USD ($)	Dec. 31, 2018shares	May 31, 2017shares
Stock options expiration period		10 years
Stock-based compensation expense | $		$ 365	$ 345
Expected dividend yield		0.00%	0.00%
General and Administrative Expense [Member]
Stock-based compensation expense | $		$ 325	$ 269
Research and Development Expense [Member]
Stock-based compensation expense | $		$ 40	$ 76
Common Stock [Member]
Stock option exercises, shares		5,000	20,000
Stock Options [Member]
Stock option exercises, shares		5,000	20,000
Exercise price of stock option | $ / shares		$ 6.20	$ 0.21
Stock option intrinsic value | $		$ 3	$ 120
Product Consultant [Member]
Number of stock options issued to purchase common stock		50,000
Product Consultant [Member] | Common Stock [Member]
Stock options expiration period		5 years
Restricted Stock [Member]
Shares issued as compensation				100,000
Restricted Stock [Member] | Outside Directors One [Member]
Shares issued as compensation				25,000
Restricted Stock [Member] | Four Outside Directors [Member]
Number of outside directors | Director				4
Restricted shares to outside directors vesting percentage	100.00%
Restricted Stock [Member] | Outside Directors Two [Member]
Shares issued as compensation				25,000
Restricted Stock [Member] | Outside Directors Three [Member]
Shares issued as compensation				25,000
Restricted Stock [Member] | Outside Directors Four [Member]
Shares issued as compensation				25,000
Stock Option [Member]
Stock options expiration period		10 years
Non-Vested Stock Option Awards [Member]
Unrecognized compensation costs | $		$ 5,371
2017 Equity Incentive Plan [Member]
Share-based compensation arrangement by share-based payment award, number of shares authorized							5,000,000
2018 Equity Incentive Plan [Member]
Share-based compensation arrangement, shares available for future issuance		638,436
Stock option exercises, shares		5,000
2018 Equity Incentive Plan [Member] | January 1, 2019 and Through January 1, 2028
Percentage for total number of shares outstanding					4.00%
2018 Employee Stock Purchase Plan [Member]
Share-based compensation arrangement, shares available for future issuance		405,115				150,000
Stock-based compensation expense | $		$ 21	$ 42
Share based compensation for initial shares reserve, description		The Company's ESPP provides for an initial reserve of 150,000 shares and this reserve is automatically increased on January 1 of each year by the lesser of 1% of the outstanding common shares at December 31 of the preceding year or 150,000 shares, subject to reduction at the discretion of the Company's board of directors.
Percentage for purchase stock and fair value of common stock		85.00%
Description for deductions to purchase stock at price per share		The initial offering of the ESPP began on December 17, 2018 and ended on December 10, 2019. The annual offerings consist of two stock purchase periods, with the first purchase period ending in June and the second purchase period ending in December. The terms of the ESPP permit employees of the Company to use payroll deductions to purchase stock at a price per share that is at least the lesser of (1) 85% of the fair market value of a share of common stock on the first date of an offering or (2) 85% of the fair market value of a share of common stock on the date of purchase. After the initial offering period ended, subsequent twelve-month offering periods automatically commence over the term of the ESPP on the day that immediately follows the conclusion of the preceding offering, each consisting of two purchase periods approximately six months in duration.
Weighted average grant date fair value issued | $ / shares		$ 2.64	$ 2.59
Employees contribution amount | $		$ 50	$ 88
Accrued liabilities for remaining employee contributions | $		$ 58			$ 16

Share-Based Payment Awards - Su

Share-Based Payment Awards - Summary of Stock Option Activity (Details) - Stock Option [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Shares, Options Outstanding, Beginning Balance | shares	1,829,878
Shares, Issued | shares	1,172,000
Shares, Exercised | shares	(5,000)
Shares, Forfeited/Cancelled | shares	(207,500)
Shares, Options Outstanding, Ending Balance | shares	2,789,378
Shares, Options Exercisable, Ending Balance | shares	817,743
Shares, Options Vested and Expected to Vest, Ending Balance | shares	2,739,378
Weighted Average Exercise Price, Options Outstanding, Beginning Balance | $ / shares	$ 4.01
Weighted Average Exercise Price, Issued | $ / shares	3.58
Weighted Average Exercise Price, Exercised | $ / shares	6.20
Weighted Average Exercise Price, Forfeited/Cancelled | $ / shares	5.84
Weighted Average Exercise Price, Options Outstanding, Ending Balance | $ / shares	3.69
Weighted Average Exercise Price, Options Exercisable, Ending Balance | $ / shares	3.36
Weighted Average Exercise Price, Options Vested and Expected to Vest, Ending Balance | $ / shares	$ 3.73
Weighted Average Remaining Contractual Term, Options Outstanding, Beginning Balance	8 years 1 month 6 days
Weighted Average Remaining Contractual Term, Options Outstanding, Ending Balance	8 years 6 months
Weighted Average Remaining Contractual Term, Options Exercisable, Ending Balance	6 years 9 months 18 days
Weighted Average Remaining Contractual Term, Options Vested and Expected to Vest, Ending Balance	8 years 6 months
Aggregate Intrinsic Value, Options Outstanding, Beginning Balance | $	$ 6,014
Aggregate Intrinsic Value, Options Outstanding, Ending Balance | $	3,178
Aggregate Intrinsic Value, Options Exercisable, Ending Balance | $	1,505
Aggregate Intrinsic Value, Options Vested and Expected to Vest, Ending Balance | $	$ 3,042

Share-Based Payment Awards - Sc

Share-Based Payment Awards - Schedule of Assumptions Used to Calculate Fair Value of Options Granted (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Expected dividends	0.00%	0.00%
Expected volatility	95.00%
Risk-free interest rate	0.70%
Weighted average fair value	$ 2.70
Minimum [Member]
Expected term	5 years 3 months 19 days
Maximum [Member]
Expected term	6 years 1 month 6 days

Related Party Transactions (Det

Related Party Transactions (Details Narrative) $ / shares in Units, $ in Thousands	Feb. 18, 2019USD ($)	Nov. 17, 2017	Aug. 11, 2017USD ($)	Jul. 09, 2017USD ($)	Jun. 23, 2017USD ($)	Apr. 30, 2019USD ($)	Mar. 31, 2020USD ($)Products$ / sharesshares	Mar. 31, 2019USD ($)	Dec. 31, 2018shares	Dec. 31, 2019$ / sharesshares
Common stock issued | shares							20,761,960			17,877,486
Common stock par value per share | $ / shares							$ 0.001			$ 0.001
Payment of research and development expense							$ 6,268	$ 6,465
Credit agreement term		10 years
Amended and Restated Agreement [Member] | Maximum [Member]
Royalties	$ 2,000
Amended and Restated Agreement [Member] | Eyemax, LLC [Member] | One Milestone [Member]
Related party transaction	250
Amended and Restated Agreement [Member] | Eyemax, LLC [Member] | Two Milestone [Member]
Related party transaction	$ 500
Harrow Health Inc [Member]
Common stock issued | shares							3,500,000
Common stock par value per share | $ / shares							$ 0.001
Number of products | Products							2
Harrow Health Inc [Member] | Common Stock [Member]
Restricted stock award forfeited | shares									20,000
Harrow Health Inc [Member] | Restricted Stock [Member]
Number of restricted common stock issued for services | shares							1,500,000
Number of stock options issued to purchase common stock | shares							130,000
Eyemax, LLC [Member]
Payment of research and development expense			$ 250
Sale of product expense			$ 500
Percentage of royalty fee			10.00%
Related party transaction			$ 250
Credit agreement term			10 years
Related party transaction, description			The Eyemax Agreement was for an initial term of 10 years from the date of the Eyemax Agreement, subject to successive two-year renewals unless the Company elected to terminate the Eyemax Agreement. There were no amounts due under the terms of the Eyemax Agreement as of March 31, 2020 or December 31, 2019.
Andersen Pharma LLC [Member]
Payment of research and development expense				$ 750
Sale of product expense				$ 750
Percentage of royalty fee				50.00%
Related party transaction				$ 750
Credit agreement term				5 years
Related party transaction, description				The Andersen Agreement was for an initial term of five years from the first commercial sale of the product, subject to successive two-year renewals unless either party elected to terminate the Andersen Agreement. There were no amounts due under the terms of the Andersen Agreement as of March 31, 2020 or December 31, 2019. The aforementioned option to purchase the product and all related intellectual property and government approvals was considered to represent variable interest in the affiliated entity. The affiliated entity was not considered to be a variable interest entity. In April 2020, the Company terminated the Andersen Agreement with no payments due to Andersen.
Selenix LLC [Member]
Payment of research and development expense					$ 1,500
Sale of product expense					$ 1,000
Percentage of royalty fee					50.00%
Related party transaction						$ 1,500
Credit agreement term					10 years

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Incremental borrowing rate	7.80%
Operating lease payment	$ 32
Amortization rights to use of assets	$ 31	$ 30
Weighted-average remaining lease term	1 year
Weighted-average incremental borrowing rate	7.80%
Research and Development Expense [Member]
Operating lease cost	$ 14	14
General and Administrative Expense [Member]
Operating lease cost	$ 21	$ 23

Leases - Schedule of Lease-rela

Leases - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total leased assets	$ 129	$ 160
Operating Lease Right-of-use Assets [Member]
Total leased assets	129
Accrued Liabilities [Member]
Total operating lease liabilities	120
Operating Lease Liability [Member]
Total operating lease liabilities	$ 120

Leases - Schedule of Lease Comm

Leases - Schedule of Lease Commitments (Details) - Operating Lease Liability [Member] $ in Thousands	Mar. 31, 2020USD ($)
2020	$ 105
2021	19
2022
Thereafter
Undiscounted lease payments	124
Less: Imputed interest	(4)
Total lease liabilities	$ 120

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Mar. 26, 2020	Jun. 12, 2019	Feb. 08, 2019	Jan. 23, 2019	Nov. 17, 2017	Mar. 31, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Percentage of net profits payments to third party from sale of product					50.00%
Credit agreement term					10 years
Percentage of right to recoup						35.00%	35.00%
Payments for development							$ 6,268	$ 6,465
Value of common stock shares issued							$ 7,459
Diurnal Limited [Member]
Number of common stock shares issued						379,474
Value of common stock shares issued						$ 1,264
Exclusive License and Supply Agreement [Member] | Diurnal Limited [Member]
Cash paid for licensing milestone fee	$ 3,500
Number of common stock shares issued	379,474
Value of common stock shares issued	$ 1,264
Shares issued price per share	$ 3.33
Aggregate value of licensing milestone amount included in research and development expense	$ 4,764
Exclusive License and Supply Agreement [Member] | Licensor [Member]
Percentage of net profits payments to third party from sale of product						35.00%	35.00%
Credit agreement term							10 years
Percentage of right to recoup						60.00%	60.00%
Payments for development							$ 350
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Upon FDA Acceptance [Member]
Payments for development							1,500
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Upon FDA Approval [Member]
Payments for development							1,000
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Upon Issuance of Patent Covering [Member]
Payments for development							1,500
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Product Sales [Member]
Payments for development							500
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Calendar Year [Member]
Payments for development							$ 10,000
Licensing and Supply Agreement [Member] | Licensor [Member]
Percentage of net profits payments to third party from sale of product				35.00%
Credit agreement term				10 years
Payments for development				$ 350
Licensing and Supply Agreement [Member] | Licensor [Member] | Upon FDA Acceptance [Member]
Payments for development				325
Licensing and Supply Agreement [Member] | Licensor [Member] | Upon FDA Approval [Member]
Payments for development				325
Licensing and Supply Agreement [Member] | Licensor [Member] | Upon Issuance of Patent Covering [Member]
Payments for development				650
Licensing and Supply Agreement [Member] | Licensor [Member] | Product Sales [Member]
Payments for development				500
Licensing and Supply Agreement [Member] | Licensor [Member] | Calendar Year [Member]
Payments for development				10,000
Licensing and Supply Agreement [Member] | Licensor [Member] | Upon Successful Bioequivalence Study [Member]
Payments for development				$ 350
Exclusive License and Supply Agreement (ET-202 ) [Member]
Percentage for additional profit									50.00%
Exclusive License and Supply Agreement (ET-202 ) [Member] | Sintetica [Member]
Payment of licensing									$ 2,000
Percentage of net sales as marketing fees									5.00%
Proceeds from licensing									$ 500
Percentage for additional profit									50.00%
Exclusive License and Supply Agreement (ET-202 ) [Member] | Upon FDA Approval [Member]
Payment of licensing									$ 750
Exclusive License and Supply Agreement (ET-203 ) [Member]
Percentage for additional profit			50.00%
Exclusive License and Supply Agreement (ET-203 ) [Member] | Sintetica [Member]
Payment of licensing			$ 1,000
Percentage of net sales as marketing fees			5.00%
Proceeds from licensing			$ 500
Percentage for additional profit			50.00%
Exclusive License and Supply Agreement (ET-203 ) [Member] | Upon FDA Approval [Member]
Payment of licensing			$ 750
Exclusive License and Supply Agreement (ET-105 ) [Member] | Aucta Pharmaceuticals, Inc [Member]
Payment of licensing		$ 2,000
Milestone payment description		$1,000 when net sales exceed $10 million in a calendar year, $2,000 when net sales exceed $20 million in a calendar year, $5,000 when net sales exceed $50 million in a calendar year, $10,000 when net sales exceed $100 million in a calendar year
Exclusive License and Supply Agreement (ET-105 ) [Member] | Aucta Pharmaceuticals, Inc [Member] | Maximum [Member]
Milestone payment amount		$ 18,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Upon FDA Approval [Member] | Aucta Pharmaceuticals, Inc [Member]
Payment of licensing		2,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Upon Issuance of Orange-book Listed Patent [Member] | Aucta Pharmaceuticals, Inc [Member]
Payment of licensing		1,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario One [Member] | Aucta Pharmaceuticals, Inc [Member]
Milestone payment amount		1,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario One [Member] | Aucta Pharmaceuticals, Inc [Member] | Minimum [Member]
Net sales		10,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Two [Member] | Aucta Pharmaceuticals, Inc [Member]
Milestone payment amount		2,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Two [Member] | Aucta Pharmaceuticals, Inc [Member] | Minimum [Member]
Net sales		20,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Three [Member] | Aucta Pharmaceuticals, Inc [Member]
Milestone payment amount		5,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Three [Member] | Aucta Pharmaceuticals, Inc [Member] | Minimum [Member]
Net sales		50,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Four [Member] | Aucta Pharmaceuticals, Inc [Member]
Milestone payment amount		10,000
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Four [Member] | Aucta Pharmaceuticals, Inc [Member] | Minimum [Member]
Net sales		$ 100,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	May 04, 2020	Apr. 02, 2020	Mar. 31, 2020	Mar. 31, 2019
Proceeds from issuance of common stock			$ 7,459
Subsequent Event [Member] | Promissory Note Agreement [Member]
Proceeds from loan	$ 361
Debt instrument term	2 years
Debt interest rate	1.00%
Subsequent Event [Member] | Investors [Member]
Number of common stock shares issued		100,000
Share issued price per shares		$ 3
Proceeds from issuance of common stock		$ 300