Abeona Therapeutics (ABEO) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 09, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Registrant Name	ABEONA THERAPEUTICS INC.
Entity Central Index Key	318,306
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	ABEO
Entity Common Stock, Shares Outstanding		47,944,486
Entity Emerging Growth Company	false
Entity Small Business	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 33,599,000	$ 137,750,000
Marketable securities	78,625,000	0
Receivables	352,000	107,000
Prepaid expenses and other current assets	1,975,000	2,735,000
Total current assets	114,551,000	140,592,000
Property and equipment, net	9,245,000	1,374,000
Licensed technology, net	3,717,000	3,977,000
Goodwill	32,466,000	32,466,000
Other assets and restricted cash	597,000	357,000
Total assets	160,576,000	178,766,000
Current liabilities
Accounts payable	10,331,000	2,393,000
Current portion of deferred revenue	0	3,214,000
Total current liabilities	10,331,000	5,607,000
Deferred revenue, net of current portion	0	3,061,000
Total liabilities	10,331,000	8,668,000
Commitments and contingencies
Stockholders' equity
Common stock - $.01 par value; authorized 200,000,000 shares; issued, 47,944,486 at September 30, 2018 and 46,888,108 at December 31, 2017	480,000	469,000
Additional paid-in capital	542,476,000	529,421,000
Accumulated deficit	(392,711,000)	(359,792,000)
Total stockholders' equity	150,245,000	170,098,000
Total liabilities and stockholders' equity	$ 160,576,000	$ 178,766,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	47,944,486	46,888,108

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Total revenues	$ 1,709,000	$ 219,000	$ 5,126,000	$ 622,000
Expenses
Research and development	13,150,000	3,277,000	29,228,000	11,283,000
General and administrative	4,970,000	2,166,000	12,475,000	7,830,000
Depreciation and amortization	505,000	138,000	969,000	595,000
Total expenses	18,625,000	5,581,000	42,672,000	19,708,000
Loss from operations	(16,916,000)	(5,362,000)	(37,546,000)	(19,086,000)
Interest and miscellaneous income	500,000	21,000	973,000	224,000
Interest and other expense	(3,000)	(2,000)	(9,000)	(7,000)
Total non operating income (expense)	497,000	19,000	964,000	217,000
Net loss	$ (16,419,000)	$ (5,343,000)	$ (36,582,000)	$ (18,869,000)
Basic and diluted loss per common share (in dollars per share)	$ (0.34)	$ (0.13)	$ (0.77)	$ (0.47)
Weighted average number of common shares outstanding (in shares)	47,794,394	40,377,890	47,388,833	40,301,601
Foundation grants [Member]
Revenues
Total revenues	$ 1,687,000	$ 0	$ 5,037,000	$ 0
Royalties [Member]
Revenues
Total revenues	22,000	68,000	89,000	170,000
License revenues [Member]
Revenues
Total revenues	$ 0	$ 151,000	$ 0	$ 452,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated deficit [Member]
Balance at Dec. 31, 2017	$ 170,098,000	$ 469,000	$ 529,421,000	$ (359,792,000)
Balance (in shares) at Dec. 31, 2017		46,888,108
Cumulative effect adjustment of ASC 606 on January 1, 2018	3,663,000	$ 0	0	3,663,000
Stock based compensation expense	1,900,000	0	1,900,000	0
Vesting of restricted common stock issued to employees	172,000	0	172,000	0
Common stock issued for -cash exercise of options	1,685,000	$ 3,000	1,682,000	0
Common stock issued for -cash exercise of options(in shares)		267,196
Common stock issued for -exercise of $5.00 warrants	144,000	$ 0	144,000	0
Common stock issued for -exercise of $5.00 warrants (in shares)		28,874
Common stock issued for -cashless warrant exercises	0	$ 0	0	0
Common stock issued for -cashless warrant exercises (in shares)		48,762
Net loss	(8,463,000)	$ 0	0	(8,463,000)
Balance at Mar. 31, 2018	169,199,000	$ 472,000	533,319,000	(364,592,000)
Balance (in shares) at Mar. 31, 2018		47,232,940
Balance at Dec. 31, 2017	170,098,000	$ 469,000	529,421,000	(359,792,000)
Balance (in shares) at Dec. 31, 2017		46,888,108
Net loss	(36,582,000)
Balance at Sep. 30, 2018	150,245,000	$ 480,000	542,476,000	(392,711,000)
Balance (in shares) at Sep. 30, 2018		47,944,486
Balance at Mar. 31, 2018	169,199,000	$ 472,000	533,319,000	(364,592,000)
Balance (in shares) at Mar. 31, 2018		47,232,940
Stock based compensation expense	2,673,000	$ 0	2,673,000	0
Vesting of restricted common stock issued to employees	172,000	0	172,000	0
Common stock issued for -cash exercise of options	481,000	$ 1,000	480,000	0
Common stock issued for -cash exercise of options(in shares)		76,956
Common stock issued for -exercise of $5.00 warrants	89,000	$ 0	89,000	0
Common stock issued for -exercise of $5.00 warrants (in shares)		17,889
Net loss	(11,700,000)	$ 0	0	(11,700,000)
Balance at Jun. 30, 2018	160,914,000	$ 473,000	536,733,000	(376,292,000)
Balance (in shares) at Jun. 30, 2018		47,327,785
Stock based compensation expense	2,499,000	$ 0	2,499,000	0
Vesting of restricted common stock issued to employees	172,000	0	172,000	0
Common stock issued for -cash exercise of options	79,000	$ 1,000	78,000	0
Common stock issued for -cash exercise of options(in shares)		16,701
Common stock issued for -exercise of $5.00 warrants	3,000,000	$ 6,000	2,994,000	0
Common stock issued for -exercise of $5.00 warrants (in shares)		600,000
Net loss	(16,419,000)	$ 0	0	(16,419,000)
Balance at Sep. 30, 2018	$ 150,245,000	$ 480,000	$ 542,476,000	$ (392,711,000)
Balance (in shares) at Sep. 30, 2018		47,944,486

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Dollar Five Warrant [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5	$ 5	$ 5

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (36,582,000)	$ (18,869,000)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	969,000	595,000
Stock option compensation expense	7,072,000	3,527,000
Restricted common stock expense issued to directors and employees	516,000	979,000
Net gain on write off of licensed technology	0	(127,000)
Change in operating assets and liabilities:
Receivables	(245,000)	13,000
Prepaid expenses and other current assets	760,000	(1,607,000)
Other assets	40,000	(11,000)
Accounts payable	7,938,000	(1,657,000)
Deferred revenue	(2,612,000)	(452,000)
Net cash used in operating activities	(22,144,000)	(17,609,000)
Cash flows from investing activities:
Capital expenditures	(8,580,000)	(156,000)
Purchases of marketable securities	(94,991,000)	0
Purchases from maturities of marketable securities	16,366,000	0
Net cash used in investing activities	(87,205,000)	(156,000)
Cash flows from financing activities:
Proceeds from exercise of stock options	2,245,000	93,000
Net cash provided by financing activities	5,478,000	5,145,000
Net decrease in cash, cash equivalents and restricted cash	(103,871,000)	(12,620,000)
Cash, cash equivalents and restricted cash at beginning of period	138,030,000	69,142,000
Cash, cash equivalents and restricted cash at end of period	34,159,000	56,522,000
Supplemental disclosures:
Cash and cash equivalents	33,599,000	56,522,000
Restricted cash	560,000	0
Total cash, cash equivalents and restricted cash	34,159,000	56,522,000
Write off of licensed asset and corresponding liability	0	4,000,000
Cash paid for interest	9,000	7,000
Dollar Five Warrant [Member]
Cash flows from financing activities:
Proceeds from exercise of warrants	3,233,000	52,000
Dollar Eight Warrant [Member]
Cash flows from financing activities:
Proceeds from exercise of warrants	$ 0	$ 5,000,000

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Parenthetical)	Sep. 30, 2018$ / shares
Dollar Five Warrant [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5
Dollar Eight Warrant [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 8

Interim Financial Statements

Interim Financial Statements	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interim Financial Statements	(1) Interim Financial Statements The condensed consolidated balance sheet as of September 30, 2018, the condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017, the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2018, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017, were prepared by management without audit. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, except as otherwise disclosed, necessary for the fair presentation of the financial position, results of operations, and changes in financial position for such periods, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. It is suggested that these interim financial statements be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for the period ended September 30, 2018 are not necessarily indicative of the operating results that may be expected for a full year. The condensed consolidated balance sheet as of December 31, 2017 contains financial information taken from the audited Abeona consolidated financial statements as of that date. As of September 30, 2018, we had 5,999,544 options and 2,220,687 warrants that were not included in the EPS calculation as their effect would be antidilutive.

New Accounting Standards Implem

New Accounting Standards Implemented	9 Months Ended
	Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards Implemented	(2) New Accounting Standards Implemented Revenue Recognition Effective January 1, 2018, we adopted ASC 606 using the modified retrospective transition method. The cumulative effect of applying the standard was an increase of $3.7 million to stockholders’ equity as of January 1, 2018. Our statement of operations for the quarterly period ended September 30, 2018 and our balance sheet as of September 30, 2018 are presented under ASC 606, while our statement of operations for the third quarter and nine months ended September 30, 2017 and our balance sheet as of December 31, 2017 are presented under ASC 605. See below for disclosure of the impact of the adoption of ASC 606 on our statement of operations and balance sheet for the quarterly period ended September 30, 2018, and the effect of changes made to our consolidated balance sheet as of January 1, 2018. The table below presents the cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet due to the adoption of ASC 606. Balance Sheet (in thousands) December 31, 2017, As Reported Under ASC 605 Adjustments Due to ASC 606 January 1, 2018 As Adjusted Under ASC 606 Liabilities Current liabilities Current portion of deferred revenue $ 3,214 $ (602 ) $ 2,612 Total current liabilities 3,214 (602 ) 2,612 Deferred revenue, net of current portion 3,061 (3,061 ) - Total liabilities 8,668 (3,663 ) 5,005 Stockholders’ Equity Accumulated deficit (359,792 ) 3,663 (356,129 ) Total equity $ 170,098 $ 3,663 $ 173,761 The table below presents the impact of the adoption of ASC 606 on our statement of operations. Third Quarter Ended September 30, 2018 STATEMENT OF OPERATIONS (in thousands except per share amounts) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenues License revenues $ 151 $ (151 ) $ - Total revenues 1,860 (151 ) 1,709 Loss from operations $ (16,765 ) $ (151 ) $ (16,916 ) Net loss $ (16,268 ) $ (151 ) $ (16,419 ) Basic and diluted loss per common share $ (0.34 ) $ 0.00 $ (0.34 ) Nine Months Ended September 30, 2018 STATEMENT OF OPERATIONS (in thousands except per share amounts) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenues License revenues $ 452 $ (452 ) $ - Total revenues 5,578 (452 ) 5,126 Loss from operations $ (37,094 ) $ (452 ) $ (37,546 ) Net loss $ (36,130 ) $ (452 ) $ (36,582 ) Basic and diluted loss per common share $ (0.77 ) $ (0.01 ) $ (0.77 ) The table below presents the impact of the adoption of ASC 606 on our balance sheet. September 30, 2018 Balance Sheet (in thousands) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Liabilities and Stockholders’ Equity Current liabilities Current portion of deferred revenue $ 602 $ (602 ) $ - Total current liabilities 10,933 (602 ) 10,331 Deferred revenue, net of current portion 2,609 (2,609 ) - Total liabilities 13,542 (3,211 ) 10,331 Stockholders’ Equity Accumulated deficit (395,922 ) 3,211 (392,711 ) Total stockholders’ equity $ 147,034 $ 3,211 $ 150,245 We received upfront cash payments for licenses of our technology in years 2008-2014. The revenue was recognized straight-line over the life of the patent. Our obligation was performed at the time the license was granted. Following the revenue recognition policies in accordance with ASC 606, we decreased the accumulated deficit by $3,663,000 as of January 1, 2018 and decreased deferred revenue by the same amount. Royalty revenues will continue to be recognized in the period of sales. Royalty revenues recognized in the third quarter of 2018 were $22,000 and for the first nine months of 2018 were $89,000. On October 16, 2017, we announced a collaborative agreement between nine Sanfilippo foundations to provide up to approximately $13.85 million of grants to Abeona in installments for the advancement of the Company’s clinical stage gene therapies for MPS IIIA and MPS IIIB, subject to the achievement of certain milestones. As of September 30, 2018, we received $5.0 million of these grants ($2.6 million in the fourth quarter 2017 and $2.4 million in the nine months of 2018) and recorded them first as deferred revenue. We recorded $2.6 million of the $3.4 million in grants as revenue in the quarter ended March 31, 2018, we recorded $0.8 million in grants as revenue in the quarter ending June 30, 2018 and we recorded $1.6 million in grants revenue in the quarter ending September 30, 2018. We recorded revenue for Foundation Grants of $1,687,000 in the third quarter of 2018 and no revenues for the same period of 2017, an increase of $1,687,000. We recorded revenue for Foundation Grants of $5,037,000 in the first nine months of 2018 and no revenues for the same period of 2017, an increase of $5,037,000. We record revenue to match expenses for the advancement of the Company’s clinical stage gene therapies for MPS IIIA and MPS IIIB. Restricted cash disclosure In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , requiring restricted cash and restricted cash equivalents to be included with cash and cash equivalents on the statement of cash flows when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. We adopted this standard during the first quarter of 2018. Restricted cash is now included as a component of cash, cash equivalents, and restricted cash on our unaudited condensed consolidated statements of cash flows. Restricted cash is recorded within other non-current assets in the accompanying unaudited condensed consolidated balance sheets. The inclusion of restricted cash increased beginning balances of the unaudited condensed consolidated statements of cash flows by $560,000 and $0, respectively, and the ending balances by $560,000 and $0, respectively, for the nine months ended September 30, 2018 and 2017.

Short Term Investments

Short Term Investments	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Short Term Investment	(3) Short Term Investments The following table summarizes the available-for-sale investments held as of September 30, 2018. There were no available-for-sale investments in prior periods. Description Fair Value September 30, 2018 U.S. government agency securities and treasuries $ 78,625,000 The amortized cost of the available-for-sale investments is adjusted for amortization of premiums and accretion of discounts to maturity. There were no material realized gains or losses recognized on the sale or maturity of available-for-sale investments during the three or nine months ended September 30, 2018.

Licensed Technology

Licensed Technology	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Licensed Technology	(4) Licensed Technology On May 15, 2015, we acquired Abeona Therapeutics LLC. which had an exclusive license through Nationwide Children’s Hospital to the AB-101 and AB-102 patent portfolios for developing treatments for patients with Sanfilippo Syndrome Type A and Type B. The license is amortized over the life of the license of 20 years. On August 3, 2016, we announced we entered into the EB Agreement with EBRP and EBMRF to collaborate on gene therapy treatments for EB. We also entered into a license with Stanford for the AAV-based gene therapy EB-201 (AAV DJ COL7A1) technology, and we intend to perform preclinical development and perform clinical trials of a gene therapy treatment for EB based upon such in-licensed technology. EB-201 (AAV DJ COL7A1) is a pre-clinical candidate targeting a novel, AAV-mediated gene editing and delivery approach (known as homologous recombination) to correct gene mutations in skin cells (keratinocytes) for patients with RDEB. The licenses are amortized over the life of the license of 20 years. Licensed technology consists of the following (in thousands): September 30, 2018 December 31, 2017 Gross carrying value Accumulated amortization Gross carrying value Accumulated Amortization Amortizable intangible assets Licensed technology $ 4,608 $ 891 $ 4,608 $ 631 Amortization expense related to intangible assets totaled $87,000 and $260,000 for the three and nine months ended September 30, 2018, respectively, and totaled $87,000 and $448,000 for the three and nine months ended September 30, 2017, respectively. The aggregate estimated amortization expense for intangible assets remaining as of September 30, 2018 is as follows (in thousands): 2018 $ 86 2019 346 2020 346 2021 346 2022 346 over 5 years 2,247 Total $ 3,717

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	(5) Fair Value Measurements We calculate the fair value of our assets and liabilities that qualify as financial instruments and include additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of receivables, prepaids and other and accounts payable approximate their carrying amounts due to the relatively short maturity of these instruments. U.S. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. This guidance establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are:  Level 1 – Quoted prices in active markets for identical assets or liabilities.  Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.  Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar valuation techniques that use significant unobservable inputs. The guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We have segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. Financial assets and liabilities measured at fair value on a non-recurring and recurring basis as of September 30, 2018 and December 31, 2017 are summarized below: (in thousands) Description As of September 30, 2018 Level 1 Level 2 Level 3 Total Gains (Losses) Non-recurring Assets: Licensed technology (net) $ 3,717 $ - $ - $ 3,717 $ 260 Goodwill 32,466 - - 32,466 - Recurring - Marketable securities - - 49,530 - (in thousands) Description As of December 31, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Non-recurring Assets: Licensed technology (net) $ 3,977 $ - $ - $ 3,977 $ 127 Goodwill 32,466 - - 32,466 - Recurring Liabilities: Contingent consideration $ - $ - $ - $ - $ 1,391

Stock Based Option Compensation

Stock Based Option Compensation and Restricted Stock Compensation	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Option Compensation and Restricted Stock Compensation	(6) Stock Based Option Compensation and Restricted Stock Compensation For the three and nine months ended September 30, 2018, we recognized stock-based option compensation expense of $2,499,000 and $7,072,000, respectively. For the three and nine months ended September 30, 2017, we recognized stock-based option compensation expense of $792,000 and $3,527,000, respectively. The following table summarizes stock-based option compensation for the three and nine months ended September 30, 2018 and 2017: Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Research and development $ 1,012,000 $ 394,000 $ 2,756,000 $ 1,118,000 General and administrative 1,487,000 398,000 4,316,000 2,409,000 Stock-based option compensation expense included in operating expense $ 2,499,000 $ 792,000 $ 7,072,000 $ 3,527,000 For the three and nine months ended September 30, 2018, we granted 157,000 and 1,026,800 stock options, respectively, and for the three and nine months ended September 30, 2017, we granted 0 and 185,000 stock options, respectively. For the three months ended September 30, 2018, the fair value of options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 0%; volatility of 109%; risk-free interest rate of 2.78%; and expected lives of 5.0 years. The weighted average fair value of options granted was $11.44 per share. The weighted average grant date fair value is $11.44 and the weighted average exercise price is $14.45. For the nine months ended September 30, 2018, the fair value of options was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: dividend yield of 0%; volatility of 109%; risk-free interest rate of 2.54%; and expected lives of 5.0 years. The weighted average fair value of options granted was $11.36 per share. The weighted average grant date fair value is $11.36 and the weighted average exercise price is $14.38. For the three and nine months ended September 30, 2018, we recognized restricted common stock compensation expense of $172,000 and $516,000, respectively. For the three and nine months ended September 30, 2017, we recognized restricted stock compensation expense of $293,000 and $979,000, respectively. The following table summarizes restricted common stock compensation expense for the three and nine months ended September 30, 2018 and 2017: Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 General and administrative $ 172,000 $ 293,000 $ 516,000 $ 979,000 Restricted stock compensation expense included in operating expense $ 172,000 $ 293,000 $ 516,000 $ 979,000 We did not grant any common stock to directors or employees during the three and nine months ended September 30, 2018 and September 30, 2017.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(7) Commitments and Contingencies We are not currently subject to any material pending legal proceedings.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events [Text Block]	(8) Subsequent Event On November 5, 2018 we announced a license agreement with REGENXBIO Inc. Under the terms of the agreement, REGENXBIO has granted Abeona an exclusive worldwide license (subject to certain non-exclusive rights previously granted for MPS IIIA), with rights to sublicense, to REGENXBIO’s NAV AAV9 vector for the development and commercialization of gene therapies for the treatment of MPS IIIA, MPS IIIB, CLN1 Disease and CLN3 Disease. In return for these rights, REGENXBIO will receive a guaranteed $20 million upfront payment, $10 million of which will be paid upon signing and $10 million of which will be paid within 12 months of the effective date. In addition, REGENXBIO will receive a total of $100 million in annual fees, payable upon the second through sixth anniversaries of the agreement, $20 million of which is guaranteed. REGENXBIO is also eligible to receive potential commercial milestone payments of up to $60 million. REGENXBIO will also receive low double-digit royalties on net sales of products incorporating the licensed intellectual property.

New Accounting Standards Impl_2

New Accounting Standards Implemented (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Balance Sheet Due to the Adoption of ASC 606	The table below presents the cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet due to the adoption of ASC 606. Balance Sheet (in thousands) December 31, 2017, As Reported Under ASC 605 Adjustments Due to ASC 606 January 1, 2018 As Adjusted Under ASC 606 Liabilities Current liabilities Current portion of deferred revenue $ 3,214 $ (602 ) $ 2,612 Total current liabilities 3,214 (602 ) 2,612 Deferred revenue, net of current portion 3,061 (3,061 ) - Total liabilities 8,668 (3,663 ) 5,005 Stockholders’ Equity Accumulated deficit (359,792 ) 3,663 (356,129 ) Total equity $ 170,098 $ 3,663 $ 173,761 The table below presents the impact of the adoption of ASC 606 on our balance sheet. September 30, 2018 Balance Sheet (in thousands) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Liabilities and Stockholders’ Equity Current liabilities Current portion of deferred revenue $ 602 $ (602 ) $ - Total current liabilities 10,933 (602 ) 10,331 Deferred revenue, net of current portion 2,609 (2,609 ) - Total liabilities 13,542 (3,211 ) 10,331 Stockholders’ Equity Accumulated deficit (395,922 ) 3,211 (392,711 ) Total stockholders’ equity $ 147,034 $ 3,211 $ 150,245
Adoption of ASC 606 on Our Statement of Operations	The table below presents the impact of the adoption of ASC 606 on our statement of operations. Third Quarter Ended September 30, 2018 STATEMENT OF OPERATIONS (in thousands except per share amounts) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenues License revenues $ 151 $ (151 ) $ - Total revenues 1,860 (151 ) 1,709 Loss from operations $ (16,765 ) $ (151 ) $ (16,916 ) Net loss $ (16,268 ) $ (151 ) $ (16,419 ) Basic and diluted loss per common share $ (0.34 ) $ 0.00 $ (0.34 ) Nine Months Ended September 30, 2018 STATEMENT OF OPERATIONS (in thousands except per share amounts) Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Revenues License revenues $ 452 $ (452 ) $ - Total revenues 5,578 (452 ) 5,126 Loss from operations $ (37,094 ) $ (452 ) $ (37,546 ) Net loss $ (36,130 ) $ (452 ) $ (36,582 ) Basic and diluted loss per common share $ (0.77 ) $ (0.01 ) $ (0.77 )

Short Term Investments (Tables)

Short Term Investments (Tables)	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale	The following table summarizes the available-for-sale investments held as of September 30, 2018. There were no available-for-sale investments in prior periods. Description Fair Value September 30, 2018 U.S. government agency securities and treasuries $ 78,625,000

Licensed Technology (Tables)

Licensed Technology (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Licensed technology consists of the following (in thousands): September 30, 2018 December 31, 2017 Gross carrying value Accumulated amortization Gross carrying value Accumulated Amortization Amortizable intangible assets Licensed technology $ 4,608 $ 891 $ 4,608 $ 631
Schedule of Finite-lived Intangible Assets Amortization Expense	Amortization expense related to intangible assets totaled $87,000 and $260,000 for the three and nine months ended September 30, 2018, respectively, and totaled $87,000 and $448,000 for the three and nine months ended September 30, 2017, respectively. The aggregate estimated amortization expense for intangible assets remaining as of September 30, 2018 is as follows (in thousands): 2018 $ 86 2019 346 2020 346 2021 346 2022 346 over 5 years 2,247 Total $ 3,717

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Financial assets and liabilities measured at fair value on recurring basis	Financial assets and liabilities measured at fair value on a non-recurring and recurring basis as of September 30, 2018 and December 31, 2017 are summarized below: (in thousands) Description As of September 30, 2018 Level 1 Level 2 Level 3 Total Gains (Losses) Non-recurring Assets: Licensed technology (net) $ 3,717 $ - $ - $ 3,717 $ 260 Goodwill 32,466 - - 32,466 - Recurring - Marketable securities - - 49,530 - (in thousands) Description As of December 31, 2017 Level 1 Level 2 Level 3 Total Gains (Losses) Non-recurring Assets: Licensed technology (net) $ 3,977 $ - $ - $ 3,977 $ 127 Goodwill 32,466 - - 32,466 - Recurring Liabilities: Contingent consideration $ - $ - $ - $ - $ 1,391

Stock Based Option Compensati_2

Stock Based Option Compensation and Restricted Stock Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Summarization of stock-based compensation	The following table summarizes stock-based option compensation for the three and nine months ended September 30, 2018 and 2017: Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Research and development $ 1,012,000 $ 394,000 $ 2,756,000 $ 1,118,000 General and administrative 1,487,000 398,000 4,316,000 2,409,000 Stock-based option compensation expense included in operating expense $ 2,499,000 $ 792,000 $ 7,072,000 $ 3,527,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Summarization of stock-based compensation	The following table summarizes restricted common stock compensation expense for the three and nine months ended September 30, 2018 and 2017: Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 General and administrative $ 172,000 $ 293,000 $ 516,000 $ 979,000 Restricted stock compensation expense included in operating expense $ 172,000 $ 293,000 $ 516,000 $ 979,000

Interim Financial Statements (D

Interim Financial Statements (Details Textual)	9 Months Ended
	Sep. 30, 2018shares
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,999,544
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,220,687

New Accounting Standards Impl_3

New Accounting Standards Implemented (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jan. 02, 2018	Dec. 31, 2017
Liabilities
Current portion of deferred revenue	$ 0	$ 800,000	$ 1,600,000	$ 2,612,000	$ 3,214,000
Total current liabilities	10,331,000			2,612,000	5,607,000
Deferred revenue, net of current portion	0			0	3,061,000
Total liabilities	10,331,000			5,005,000	8,668,000
Stockholders' Equity
Accumulated deficit	(392,711,000)			(356,129,000)	(359,792,000)
Total equity	150,245,000	$ 160,914,000	$ 169,199,000	$ 173,761,000	170,098,000
Scenario Previously Reported
Liabilities
Current portion of deferred revenue	602,000				3,214,000
Total current liabilities	10,933,000				3,214,000
Deferred revenue, net of current portion	2,609,000				3,061,000
Total liabilities	13,542,000				8,668,000
Stockholders' Equity
Accumulated deficit	(395,922,000)				(359,792,000)
Total equity	147,034,000				170,098,000
Scenario Adjustment
Liabilities
Current portion of deferred revenue	(602,000)				(602,000)
Total current liabilities	(602,000)				(602,000)
Deferred revenue, net of current portion	(2,609,000)				(3,061,000)
Total liabilities	(3,211,000)				(3,663,000)
Stockholders' Equity
Accumulated deficit	3,211,000				3,663,000
Total equity	$ 3,211,000				$ 3,663,000

New Accounting Standards Impl_4

New Accounting Standards Implemented (Details 1) - USD ($)	3 Months Ended				9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Revenues	$ 1,709,000			$ 219,000	$ 5,126,000	$ 622,000
Total revenues BS	1,709,000				5,126,000
Expenses
Loss from operations	(16,916,000)			(5,362,000)	(37,546,000)	(19,086,000)
Net loss	$ 16,419,000	$ 11,700,000	$ 8,463,000	$ 5,343,000	$ 36,582,000	$ 18,869,000
Basic and diluted loss per common share	$ (0.34)			$ (0.13)	$ (0.77)	$ (0.47)
License [Member]
Revenues
Revenues	$ 0			$ 151,000	$ 0	$ 452,000
As Reported Under ASC 605
Revenues
Total revenues BS	1,860,000				5,578,000
Expenses
Loss from operations	(16,765,000)				(37,094,000)
Net loss	$ (16,268,000)				$ (36,130,000)
Basic and diluted loss per common share	$ (0.34)				$ (0.77)
As Reported Under ASC 605 | License [Member]
Revenues
Revenues	$ 151,000				$ 452,000
Adjustments Due to ASC 606
Revenues
Total revenues BS	(151,000)				(452,000)
Expenses
Loss from operations	(151,000)				(452,000)
Net loss	$ (151,000)				$ (452,000)
Basic and diluted loss per common share	$ 0				$ (0.01)
Adjustments Due to ASC 606 | License [Member]
Revenues
Revenues	$ (151,000)				$ (452,000)

New Accounting Standards Impl_5

New Accounting Standards Implemented (Details Textual) - USD ($)	Jan. 02, 2018	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Jun. 30, 2018
Revenues		$ 1,709,000			$ 219,000	$ 5,126,000	$ 622,000
Cumulative Effect on Retained Earnings, Net of Tax			$ 3,663,000
Restricted Cash and Cash Equivalents		560,000		$ 0	0	560,000	0	$ 0
Grants Receivable		13,850,000				13,850,000
Deferred Revenue, Current	$ 2,612,000	0	1,600,000	3,214,000		0		3,214,000	$ 800,000
Proceeds From Grant Received		5,000,000		$ 2,600,000				$ 2.4
Retained Earnings [Member]
Cumulative Effect on Retained Earnings, Net of Tax	3,663,000		$ 3,663,000
Royalty [Member]
Revenues		22,000			68,000	89,000	170,000
Grant [Member]
Revenues		$ 1,687,000			$ 0	$ 5,037,000	$ 0
Accounting Standards Update 2014-09 [Member]
Stockholders' Equity, Period Increase (Decrease)	$ 3,700,000

Short Term Investments (Details

Short Term Investments (Details)	Sep. 30, 2018USD ($)
Debt Securities, Available-for-sale, Fair Value	$ 78,625,000

Licensed Technology (Details)

Licensed Technology (Details) - Licensed Technology [Member] - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amortizable intangible assets [Abstract]
Gross carrying value	$ 4,608	$ 4,608
Accumulated amortization	$ 891	$ 631

Licensed Technology (Details 1)

Licensed Technology (Details 1) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
2,018	$ 86,000
2,019	346,000
2,020	346,000
2,021	346,000
2,022	346,000
over 5 years	2,247,000
Total	$ 3,717,000	$ 3,977,000

Licensed Technology (Details Te

Licensed Technology (Details Textual) - USD ($)	May 15, 2015	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Amortization of Intangible Assets		$ 87,000	$ 87,000	$ 260,000	$ 448,000
License Agreement Terms [Member]
Finite-Lived Intangible Asset, Useful Life	20 years

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Assets
Marketable securities	$ 78,625,000	$ 0
Nonrecurring [Member]
Assets
Licensed technology (net)	3,717,000	3,977,000
Goodwill	32,466,000	32,466,000
Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets
Licensed technology (net)	0	0
Goodwill	0	0
Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets
Licensed technology (net)	0	0
Goodwill	0	0
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets
Licensed technology (net)	3,717,000	3,977,000
Goodwill	32,466,000	32,466,000
Nonrecurring [Member] | Licensed technology [Member]
Liabilites
Total gains (losses)	260,000	127,000
Nonrecurring [Member] | Goodwill [Member]
Liabilites
Total gains (losses)	0	0
Recurring [Member]
Assets
Marketable securities	0
Liabilites
Contingent consideration		0
Marketable securities Total Gains (Losses)	0
Recurring [Member] | Contingent Consideration [Member]
Liabilites
Total gains (losses)		1,391,000
Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets
Marketable securities	0
Liabilites
Contingent consideration		0
Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets
Marketable securities	49,530,000
Liabilites
Contingent consideration		0
Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets
Marketable securities
Liabilites
Contingent consideration		$ 0

Stock Based Option Compensati_3

Stock Based Option Compensation and Restricted Stock Compensation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock-based compensation expense included in operating expense			$ 7,072,000	$ 3,527,000
Stock Options [Member]
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock-based compensation expense included in operating expense	$ 2,499,000	$ 792,000	7,072,000	3,527,000
Stock Options [Member] | Research and Development Expense [Member]
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock-based compensation expense included in operating expense	1,012,000	394,000	2,756,000	1,118,000
Stock Options [Member] | General and Administrative [Member]
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock-based compensation expense included in operating expense	1,487,000	398,000	4,316,000	2,409,000
Restricted Stock [Member]
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock-based compensation expense included in operating expense	172,000	293,000	516,000	979,000
Restricted Stock [Member] | General and Administrative [Member]
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock-based compensation expense included in operating expense	$ 172,000	$ 293,000	$ 516,000	$ 979,000

Stock Based Option Compensati_4

Stock Based Option Compensation and Restricted Stock Compensation (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock-based compensation expense included in operating expense			$ 7,072,000	$ 3,527,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%		0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	109.00%		109.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.78%		2.54%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years		5 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 11.44		$ 11.36
Share-based Compensation Arrangement by Share-based Payment Award, Option Grants in Period Weighted Average Grant Date Fair Value	$ 11.44		$ 11.36
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Weighted Average Exercise Price	$ 14.45		$ 14.38
Stock Options [Member]
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock options granted (in shares)	157,000	0	1,026,800	185,000
Stock-based compensation expense included in operating expense	$ 2,499,000	$ 792,000	$ 7,072,000	$ 3,527,000
Restricted Stock [Member]
Share-based and Restricted Stock Compensation Expense [Abstract]
Stock-based compensation expense included in operating expense	$ 172,000	$ 293,000	$ 516,000	$ 979,000

Subsequent Event (Details Textu

Subsequent Event (Details Textual) - Subsequent Event [Member] - REGENXBIO [Member] $ in Millions	1 Months Ended
	Nov. 05, 2018USD ($)
Guranteed Upfront Payment	$ 20
Payment on Execution of Contracts	10
Future Payments On Contracts	10
Annual Fees	100
Milestone Payment	$ 60