Abeona Therapeutics (ABEO) 10-Q 9 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 05, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	ABEONA THERAPEUTICS INC.
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Trading Symbol	ABEO
Entity Common Stock, Shares Outstanding		49,315,751
Entity Central Index Key	0000318306
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 42,609,000	$ 18,750,000
Short-term investments	19,903,000	66,218,000
Receivables	40,000	81,000
Prepaid expenses and other current assets	2,343,000	3,802,000
Total current assets	64,895,000	88,851,000
Property and equipment, net	13,616,000	9,443,000
Right-of-use lease assets	8,520,000	0
Licensed technology, net	38,765,000	43,042,000
Goodwill	32,466,000	32,466,000
Other assets and restricted cash	1,148,000	597,000
Total assets	159,410,000	174,399,000
Current liabilities:
Accounts payable	7,156,000	6,122,000
Accrued expenses	6,397,000	3,936,000
Current portion of lease liability	1,693,000	0
Current portion of payable to licensor	10,000,000	10,000,000
Deferred revenue	296,000	296,000
Total current liabilities	25,542,000	20,354,000
Long-term lease liabilities	6,708,000	0
Payable to licensor, net of current portion	20,000,000	20,000,000
Total liabilities	52,250,000	40,354,000
Commitments and contingencies
Stockholders' equity:
Common stock - $0.01 par value; authorized 200,000,000 shares; issued and outstanding 49,249,497 at June 30, 2019; issued and outstanding 47,944,486 at December 31, 2018	492,000	479,000
Additional paid-in capital	559,335,000	543,754,000
Accumulated deficit	(452,667,000)	(410,188,000)
Total stockholders' equity	107,160,000	134,045,000
Total liabilities and stockholders' equity	$ 159,410,000	$ 174,399,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets
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	49,249,497	47,944,486
Common Stock, Shares, Outstanding	49,249,497	47,944,486

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Total revenues	$ 0	$ 276,000	$ 0	$ 807,000
Expenses:
Research and development	16,307,000	7,916,000	28,044,000	16,078,000
General and administrative	5,612,000	4,627,000	11,271,000	7,505,000
Depreciation and amortization	2,057,000	290,000	3,715,000	464,000
Total expenses	23,976,000	12,833,000	43,030,000	24,047,000
Loss from operations	(23,976,000)	(12,557,000)	(43,030,000)	(23,240,000)
Interest and miscellaneous income	52,000	317,000	551,000	473,000
Interest and other expense	0	(3,000)	0	(6,000)
Net loss	$ (23,924,000)	$ (12,243,000)	$ (42,479,000)	$ (22,773,000)
Basic and diluted loss per common share (in dollars per share)	$ (0.49)	$ (0.26)	$ (0.88)	$ (0.48)
Weighted average number of common shares outstanding - basic and diluted	48,961,988	47,303,518	48,458,004	47,182,691
Foundation revenues
Revenues:
Total revenues	$ 0	$ 259,000	$ 0	$ 740,000
Royalties
Revenues:
Total revenues	$ 0	$ 17,000	$ 0	$ 67,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated deficit	Total
Balance at Dec. 31, 2017	$ 469,000	$ 529,421,000	$ (359,792,000)	$ 170,098,000
Balance (in shares) at Dec. 31, 2017	46,888,108
Cumulative effect adjustment of ASC 606 on January 1, 2018	$ 0	0	6,275,000	6,275,000
Stock-based compensation expense	0	1,900,000	0	1,900,000
Restricted stock-based compensation expense	0	172,000	0	172,000
Common stock issued for cash exercise of options	$ 3,000	1,682,000	0	1,685,000
Common stock issued for cash exercise of options (in shares)	267,196
Common stock issued for exercise of $5.00 warrants	$ 0	144,000	0	144,000
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	$ 0	0	(10,530,000)	(10,530,000)
Balance at Mar. 31, 2018	$ 472,000	533,319,000	(364,047,000)	169,744,000
Balance (in shares) at Mar. 31, 2018	47,232,940
Balance at Dec. 31, 2017	$ 469,000	529,421,000	(359,792,000)	170,098,000
Balance (in shares) at Dec. 31, 2017	46,888,108
Common stock issued for cash exercise of options	$ 0	0	0	0
Common stock issued for cash exercise of options (in shares)	0
Net loss				(22,773,000)
Balance at Jun. 30, 2018	$ 473,000	536,733,000	(376,290,000)	160,916,000
Balance (in shares) at Jun. 30, 2018	47,327,785
Balance at Mar. 31, 2018	$ 472,000	533,319,000	(364,047,000)	169,744,000
Balance (in shares) at Mar. 31, 2018	47,232,940
Stock-based compensation expense	$ 0	2,673,000	0	2,673,000
Restricted stock-based compensation expense	0	172,000	0	172,000
Common stock issued for cash exercise of options	$ 1,000	480,000	0	481,000
Common stock issued for cash exercise of options (in shares)	76,956
Common stock issued for exercise of $5.00 warrants	$ 0	89,000	0	89,000
Common stock issued for exercise of $5.00 warrants (in shares)	17,889
Net loss	$ 0	0	(12,243,000)	(12,243,000)
Balance at Jun. 30, 2018	$ 473,000	536,733,000	(376,290,000)	160,916,000
Balance (in shares) at Jun. 30, 2018	47,327,785
Balance at Dec. 31, 2018	$ 479,000	543,754,000	(410,188,000)	134,045,000
Balance (in shares) at Dec. 31, 2018	47,944,486
Stock-based compensation expense	$ 0	2,103,000	0	2,103,000
Restricted stock-based compensation expense	0	172,000	0	172,000
Common stock issued for cash exercise of options	$ 0	28,000	0	28,000
Common stock issued for cash exercise of options (in shares)	5,208
Net loss	$ 0	0	(18,555,000)	(18,555,000)
Balance at Mar. 31, 2019	$ 479,000	546,057,000	(428,743,000)	117,793,000
Balance (in shares) at Mar. 31, 2019	47,949,694
Balance at Dec. 31, 2018	$ 479,000	543,754,000	(410,188,000)	134,045,000
Balance (in shares) at Dec. 31, 2018	47,944,486
Net loss				(42,479,000)
Balance at Jun. 30, 2019	$ 492,000	559,335,000	(452,667,000)	107,160,000
Balance (in shares) at Jun. 30, 2019	49,249,497
Balance at Mar. 31, 2019	$ 479,000	546,057,000	(428,743,000)	117,793,000
Balance (in shares) at Mar. 31, 2019	47,949,694
Stock-based compensation expense	$ 0	1,678,000	0	1,678,000
Restricted stock-based compensation expense	0	78,000	0	78,000
Common stock issued for cash exercise of options	$ 1,000	384,000	0	385,000
Common stock issued for cash exercise of options (in shares)	91,126
Common stock issued for cash under open market sale agreement	$ (17,000)	(12,605,000)	0	(12,622,000)
Common stock issued for cash under open market sale agreement (in shares)	1,658,677
Shares returned in connection with arbitration ruling on licensing agreement	$ 5,000	1,467,000	0	1,472,000
Shares returned in connection with arbitration ruling on licensing agreement (in shares)	(450,000)
Net loss	$ 0	0	(23,924,000)	(23,924,000)
Balance at Jun. 30, 2019	$ 492,000	$ 559,335,000	$ (452,667,000)	$ 107,160,000
Balance (in shares) at Jun. 30, 2019	49,249,497

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018
Dollar Five Warrant
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 ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (23,924,000)	$ (12,243,000)	$ (42,479,000)	$ (22,773,000)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	2,057,000	290,000	3,715,000	464,000
Stock-based compensation expense			3,781,000	4,573,000
Restricted stock-based compensation expense			250,000	344,000
Non-cash earnings on investments			(829,000)	0
Non-cash loss on arbitration ruling on licensing agreement			367,000	0
Change in operating assets and liabilities:
Receivables			41,000	60,000
Prepaid expenses and other current assets			1,459,000	798,000
Right-of-use lease assets and other assets			381,000	42,000
Accounts payable, accrued expenses and lease liabilities			2,994,000	3,388,000
Net cash used in operating activities			(30,320,000)	(13,104,000)
Cash flows from investing activities:
Capital expenditures			(5,250,000)	(6,923,000)
Acquisition of licensed technology			(200,000)	0
Proceeds from maturities of short-term investments			47,144,000	(69,852,000)
Net cash provided by (used in) investing activities			41,694,000	(76,775,000)
Cash flows from financing activities:
Proceeds from open market sales of common stock			12,622,000	0
Proceeds from exercise of stock options			413,000	2,166,000
Net cash provided by financing activities			13,035,000	2,399,000
Net increase (decrease) in cash, cash equivalents and restricted cash			24,409,000	(87,480,000)
Cash, cash equivalents and restricted cash at beginning of period			19,310,000	138,030,000
Cash, cash equivalents and restricted cash at end of period	43,719,000	50,550,000	43,719,000	50,550,000
Supplemental cash flow information:
Cash and cash equivalents	42,609,000	49,990,000	42,609,000	49,990,000
Restricted cash	1,110,000	560,000	1,110,000	560,000
Total cash, cash equivalents and restricted cash	$ 43,719,000	$ 50,550,000	43,719,000	50,550,000
Shares returned in connection with arbitration ruling on licensing agreement			1,472,000	0
Cash paid for interest			0	6,000
Dollar Five Warrant
Cash flows from financing activities:
Proceeds from exercise of $5.00 warrants			$ 0	$ 233,000

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Parenthetical) - $ / shares	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018
Dollar Five Warrant
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5	$ 5	$ 5

NATURE OF OPERATIONS AND SIGNIF

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2019
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Background Abeona Therapeutics Inc., a Delaware corporation (together with our subsidiaries, “we,” “our,” “Abeona” or the “Company”), is a clinical-stage biopharmaceutical company developing gene and cell therapies for life-threatening rare genetic diseases. Our lead programs include EB‑101, an autologous, gene-corrected cell therapy for recessive dystrophic epidermolysis bullosa (“RDEB”), ABO‑102, an adeno-associated virus (“AAV”)-based gene therapy for Sanfilippo syndrome type A (“MPS IIIA”), and ABO‑101 an AAV-based gene therapy for Sanfilippo syndrome type B (“MPS IIIB”). We also are developing ABO‑202 and ABO‑201, which are AAV-based gene therapies for the CLN1 and CLN3 forms of Batten Disease, respectively, ABO‑401 for the treatment of cystic fibrosis, and ABO‑5OX for the treatment of retinal diseases. In addition, we are developing next generation AAV-based gene therapy though our novel AIM™ vector platform programs. Our efforts since inception have been principally devoted to research and development, resulting in significant losses. Basis of Presentation The condensed consolidated balance sheets as of June 30, 2019, the condensed consolidated statements of operations and stockholders’ equity for the three and six months ended June 30, 2019 and 2018 and the condensed consolidated statements of cash flows for the six months ended June 30, 2019 and 2018, 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. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2018. The results of operations for the periods ended June 30, 2019 are not necessarily indicative of the operating results that may be expected for a full year. The condensed consolidated balance sheets as of December 31, 2018 contain financial information taken from the audited Abeona consolidated financial statements as of that date. As of June 30, 2019, we had 6,926,781 options and 1,820,686 warrants that were not included in the EPS calculation as their effect would be antidilutive. As of June 30, 2018, we had 5,895,135 options and 2,820,687 warrants that were not included in the EPS calculation as their effect would be antidilutive. Effective January 1, 2018, we adopted Accounting Standards Update (“ASU”) 2014‑09, Revenue from Contracts with Customers , as amended (ASC 606). At year-end 2018, we determined that we should adjust the amounts originally reported for the quarters ended March 31, 2018 and June 30, 2018 to correct for an error in the determination of the cumulative effect related to the adoption of ASC 606 as of January 1, 2018. The adjusted amounts for March 31, 2018 reflect a $2,067,000 reduction in foundation revenues and corresponding increases in the loss from operations and net loss of $2,067,000 and an increase in the diluted loss per share of $0.04, as compared to the originally reported amounts. The adjusted amounts for June 30, 2018 reflect a $543,000 reduction in foundation revenues and corresponding increases in the loss from operations and net loss of $543,000 and an increase in the diluted loss per share of $0.01, as compared to the originally reported amounts. Uses and Sources of Liquidity The financial statements have been prepared on a going concern basis, which assumes the Company will have sufficient cash to pay its operating expenses, as and when they become payable, for a period of at least 12 months from the date the financial report was issued. As of June 30, 2019, we had cash, cash equivalents and short-term investments of $62.5 million and net assets of $107.2 million. For the six months ended June 30, 2019, we had cash outflows from operations of $30.3 million. We believe we have sufficient resources to fund our business operations for the next 12 months. However, we have implemented a multi-faceted program to seek sufficient liquidity through at least the end of 2020. This program considers the possibility of accessing additional equity funding from current or new stockholders, out-licensing technology and/or other assets, deferring and/or eliminating planned expenditures, restructuring operations and/or reducing headcount and sales of assets. We believe that we will be able to complete our liquidity program and will have sufficient funding to support planned expenditure commitments and our planned level of growth, and therefore we believe it is appropriate to prepare the financial statements on a going concern basis.

NEW ACCOUNTING STANDARD IMPLEME

NEW ACCOUNTING STANDARD IMPLEMENTED	6 Months Ended
	Jun. 30, 2019
NEW ACCOUNTING STANDARD IMPLEMENTED
NEW ACCOUNTING STANDARD IMPLEMENTED	NOTE 2 – NEW ACCOUNTING STANDARD IMPLEMENTED In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016‑02, Leases , as amended (“ASC 842”), which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. We adopted the provisions of ASC 842 effective January 1, 2019 using the cumulative-effect adjustment transition method, which applies the provisions of the standard as of the effective date without adjusting the comparative periods presented. As a result of the adoption, we recorded operating lease right-of-use assets of $8.9 million and operating lease liabilities of $8.9 million. The adoption had an immaterial impact on our net assets as of January 1, 2019. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward the historical lease classification. Additional information and disclosures required by this new standard are contained in Note 8.

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS	6 Months Ended
	Jun. 30, 2019
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS	NOTE 3 – SHORT-TERM INVESTMENTS The following table summarizes the available-for-sale investments held: June 30, December 31, Description 2019 2018 U.S. government and agency securities and treasuries $ 19,903,000 $ 66,218,000 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 and six months ended June 30, 2019 and 2018.

LICENSED TECHNOLOGY

LICENSED TECHNOLOGY	6 Months Ended
	Jun. 30, 2019
LICENSED TECHNOLOGY
LICENSED TECHNOLOGY	NOTE 4 – LICENSED TECHNOLOGY On November 4, 2018, we entered into a license agreement with REGENXBIO to obtain rights to 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 was paid on signing of the agreement on November 4, 2018 and $10 million of which will be paid by November 4, 2019. 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 as well as royalties payable in the low double digits to low-teens on net sales of products incorporating the licensed intellectual property. The license is amortized over the life of the patent of eight years. On August 3, 2016, we announced that we entered into an agreement (the “EB Agreement”) with EB Research Partnership (“EBRP”) and Epidermolysis Bullosa Medical Research Foundation (“EBMRF”) to collaborate on gene therapy treatments for EB. The EB Agreement became effective August 3, 2016 on the execution of two licensing agreements with The Board of Trustees of Leland Stanford Junior University (“Stanford”). On August 3, 2016, we recorded the issuance of 375,000 of our common shares to each of EBRP and EBMRF and recorded licensed technology of $2.45 million, which was being amortized over 20 years. In connection with an arbitration proceeding relating to the EB Agreement, on May 15, 2019, the arbitrator issued a decision in favor of the Company requiring the Company to cancel any and all shares of its common stock issued to EBRP and EBMRF that were still in their possession. As a result, we have recorded the return of 450,000 shares of our common stock and the reversal of the licensed technology from our financial statements. The net of these transactions resulted in a non-cash charge to expense of $367,000. 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. Licensed technology consists of the following: June 30, December 31, 2019 2018 Licensed technology $ 42,606,000 $ 44,859,000 Less accumulated amortization 3,841,000 1,817,000 Licensed technology, net $ 38,765,000 $ 43,042,000 The aggregate estimated amortization expense for intangible assets remaining as of June 30, 2019 is as follows: 2019, remainder $ 2,587,000 2020 5,167,000 2021 5,167,000 2022 5,167,000 2023 5,167,000 There after 15,510,000 Total $ 38,765,000 Amortization on licensed technology was $1,293,000 and $2,638,000 for the three and six months ended June 30, 2019, respectively, and $87,000 and $174,000 for the three and six months ended June 30, 2018, respectively.

RESTRICTED CASH

RESTRICTED CASH	6 Months Ended
	Jun. 30, 2019
RESTRICTED CASH
RESTRICTED CASH	NOTE 5 – RESTRICTED CASH Restricted cash, which is reported within other assets and restricted cash on the condensed consolidated balance sheet, consists of cash and cash equivalents held as collateral for a corporate credit card and office space in New York. As such, the cash and cash equivalents are restricted in use.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2019
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 6 – 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, prepaid expenses, other assets, accounts payable, accrued expenses, payable to licensor and deferred revenue 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 as follows: · 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 recurring and non-recurring basis as of June 30, 2019 and December 31, 2018 are summarized below: June 30, Total Description 2019 Level 1 Level 2 Level 3 Gains/(Losses) Recurring Assets: Short-term investments $ 19,903,000 $ — $ 19,903,000 $ — $ — Non-recurring Assets: Licensed technology, net $ 38,765,000 $ — $ — $ 38,765,000 $ (367,000) Goodwill 32,466,000 — — 32,466,000 — December 31, Total Description 2018 Level 1 Level 2 Level 3 Gains/(Losses) Recurring Assets: Short-term investments $ 66,218,000 $ — $ 66,218,000 $ — $ — Non-recurring Assets: Licensed technology, net $ 43,042,000 $ — $ — $ 43,042,000 $ — Goodwill 32,466,000 — — 32,466,000 —

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2019
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 7 – STOCK-BASED COMPENSATION The following table summarizes stock-based option compensation for the three and six months ended June 30, 2019 and 2018: For the three months ended June 30, For the six months ended June 30, 2019 2018 2019 2018 Research and development $ 1,009,000 $ 900,000 $ 2,041,000 $ 1,744,000 General and administrative 669,000 1,773,000 1,740,000 2,829,000 Stock-based compensation expense included in operating expense 1,678,000 2,673,000 3,781,000 4,573,000 Total stock-based compensation expense 1,678,000 2,673,000 3,781,000 4,573,000 Tax benefit — — — — Stock-based compensation expense, net of tax $ 1,678,000 $ 2,673,000 $ 3,781,000 $ 4,573,000 We estimate the fair value of each option award on the date of grant using the Black-Scholes option valuation model. We then recognize the grant date fair value of each option as compensation expense ratably using the straight-line attribution method over the service period (generally the vesting period). The Black-Scholes model incorporates the following assumptions: · Expected volatility – we estimate the volatility of our share price at the date of grant using a “look-back” period which coincided with the expected term, defined below. We believe using a “look-back” period which coincides with the expected term is the most appropriate measure for determining expected volatility. · Expected term – we estimate the expected term using the “simplified” method, as outlined in Staff Accounting Bulletin No. 107, “Share-Based Payment.” · Risk-free interest rate – we estimate the risk-free interest rate using the U.S. Treasury yield curve for periods equal to the expected term of the options in effect at the time of grant. · Dividends – we use an expected dividend yield of zero because we have not declared or paid a cash dividend, nor do we have any plans to declare a dividend. We used the following weighted-average assumptions to estimate the fair value of the options granted for the periods indicated: For the three months ended June 30, For the six months ended June 30, 2019 2018 2019 2018 Expected volatility 108 % 109 % 108 % 109 % Expected term 5 years 5 years 5 years 5 years Risk-free interest rate 2.21 % 2.65 % 2.24 % 2.44 % Expected dividend yield — % — % — % — % The following table summarizes the options granted for the periods indicated: For the three months ended For the six months ended June 30, June 30, 2019 2018 2019 2018 Options granted 1,183,890 224,800 1,384,890 869,800 Weighted-average: Exercise price $ 6.86 $ 16.27 $ 6.84 $ 14.38 Grant date fair value $ 5.39 $ 12.87 $ 5.37 $ 11.36 The following table summarizes restricted common stock compensation expense for the three and six months ended June 30, 2019 and 2018: For the three months ended June 30, For the six months ended June 30, 2019 2018 2019 2018 Research and development $ — $ — $ — $ — General and administrative 78,000 172,000 250,000 344,000 Stock-based compensation expense included in operating expense 78,000 172,000 250,000 344,000 Total stock-based compensation expense 78,000 172,000 250,000 344,000 Tax benefit — — — — Stock-based compensation expense, net of tax $ 78,000 $ 172,000 $ 250,000 $ 344,000 We did not grant any common stock to directors or employees during the three and six months ended June 30, 2019 or 2018.

OPERATING LEASES

OPERATING LEASES	6 Months Ended
	Jun. 30, 2019
OPERATING LEASES
OPERATING LEASES	NOTE 8 – OPERATING LEASES We lease space under non-cancelable operating leases for manufacturing and laboratory facilities and administrative offices in Cleveland as well as administrative offices in New York. The leases do not have significant rent escalation, holidays, concessions, material residual value guarantees, material restrictive covenants or contingent rent provisions. Our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. We also lease office space in Dallas and Madrid, Spain as well as certain office equipment under operating leases, which have a non-cancelable lease term of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our right-of-use assets and lease liabilities. Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. Components of lease cost are as follows: Three months ended Six months ended June 30, 2019 June 30, 2019 Operating lease cost $ 434,000 $ 723,000 Variable lease cost $ 86,000 $ 159,000 Short-term lease cost $ 34,000 $ 81,000 The following table presents information about the amount and timing of cash flows arising from operating leases as of June 30, 2019: Maturity of lease liabilities: 2019, remainder $ 845,000 2020 1,699,000 2021 1,713,000 2022 1,727,000 2023 1,741,000 Thereafter 3,667,000 Total undiscounted operating lease payments 11,392,000 Less: imputed interest 2,991,000 Present value of operating lease liabilities $ 8,401,000 Balance sheet classification: Current portion of lease liability $ 1,693,000 Long-term lease liability 6,708,000 Total operating lease liabilities $ 8,401,000 Other information: Weighted-average remaining lease term for operating leases 79 months Weighted-average discount rate for operating leases %

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 9 – COMMITMENTS AND CONTINGENCIES On January 18, 2018, William Mahon, a Company stockholder, served a demand upon the Company’s board of directors (the “Board”) pursuant to Section 220 of the Delaware General Corporation Law (the “Demand”) seeking to inspect certain of the Company’s books and records. Generally, the Demand’s stated purpose was to investigate allegedly excessive compensation awarded to non-employee Board members for the fiscal years 2015–2017. The Board denied the allegations in the Demand, and agreed to provide limited books and records to Mahon. On September 17, 2018, another Company stockholder, Francisco Dos Ramos, filed a stockholder derivative complaint in the Delaware Chancery Court (the “Dos Ramos Action”) against Steven Rouhandeh, Frank Carsten Thiel, Mark Alvino, Stefano Buono, Stephen Howell, Richard Van Duyne, and Todd Wider as defendants, and the Company as nominal defendant (the “Dos Ramos Defendants”). Dos Ramos generally alleges that the Board breached its fiduciary duties, were unjustly enriched, and committed corporate waste by approving allegedly excessive compensation to non-employee Board members for the fiscal years 2015–2017. Dos Ramos generally seeks disgorgement of the allegedly improper payments to the Board, money damages, an order requiring corporate governance reforms, costs and attorneys’ fees. On November 28, 2018, Mahon filed a stockholder derivative complaint (the “Mahon Action”) in the United States District Court for the District of Delaware (the “District Court”) against Mark Ahn, Mark Alvino, Jeffrey Davis, Stephen Howell, Todd Wider, and Steven Rouhandeh, as defendants, and the Company as a nominal defendant (“Mahon Defendants”). The allegations in the Mahon Action are substantially similar to those set forth in his Demand, as well as those in the Dos Ramos Action. Mahon generally seeks the disgorgement of the allegedly improper payments to the Board, a constructive trust, money damages, costs and attorneys’ fees. On December 6, 2018, Mahon and the Mahon Defendants filed a joint motion for preliminary approval of settlement, along with a stipulation of settlement (the “Stipulation”) intending to settle all claims asserted in the Mahon Action. On January 8, 2019, the District Court approved the parties’ notice of settlement, enjoining all Company stockholders from commencing or further prosecuting any claims asserted in the Mahon Action, and scheduled a settlement approval hearing for May 1, 2019. On January 25, 2019, the Chancery Court entered an order staying the Dos Ramos Action until May 8, 2019—one week after the May 1, 2019 settlement hearing in the Mahon Action. On May 2, 2019 the District Court entered an Order and Final Judgment approving the Stipulation. On August 6, 2019, the plaintiff in the Dos Ramos Action filed a voluntary notice of dismissal. On August 7, 2019, the chancery court entered an order of dismissal. On October 22, 2018, EB Research Partnership, Inc. (“EBRP”) served upon the Company a Request for Arbitration (the “Request”), alleging that the Company was in breach of an Agreement executed in July 2016 (the “Agreement”) between and among the Company, EBRP, and Epidermolysis Bullosa Medical Research Foundation (“EBMRF” and together with EBRP, “Claimants”). EBRP alleged that Abeona had refused to lift trading restrictions on certain shares of Abeona common stock issued to EBRP, purportedly in breach of the Agreement. On November 21, 2018, the Company filed an action in the United States District Court for the Southern District of New York seeking a declaration that it was not required to arbitrate its dispute with EBRP on the basis that the Agreement was void for lack of consideration. On February 4, 2019, the court granted Claimants’ motion to compel arbitration. EBMRF was subsequently joined as a party to the arbitration. The parties submitted briefs to the arbitrator on March 18 and April 18, 2019. On May 15, 2019, the arbitrator issued a decision in favor of the Company (the “Final Award”). Specifically, the Final Award provides that the Agreement is void for lack of consideration; that Claimants fraudulently induced Abeona to enter into the Agreement; that Claimants cannot enforce the Agreement; that Claimants are not entitled to any relief under the Agreement; that, in view of their status as charitable organizations, Claimants would not be required to repay to Abeona the value of Abeona common stock they already sold; that the Company shall cancel any and all shares of Abeona common stock issued to Claimants that were still in Claimants’ possession; and that, as the losing parties, Claimants must bear the costs and expenses of the arbitration and Abeona’s costs and expenses.

NATURE OF OPERATIONS AND SIGN_2

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2019
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
Background	Background Abeona Therapeutics Inc., a Delaware corporation (together with our subsidiaries, “we,” “our,” “Abeona” or the “Company”), is a clinical-stage biopharmaceutical company developing gene and cell therapies for life-threatening rare genetic diseases. Our lead programs include EB‑101, an autologous, gene-corrected cell therapy for recessive dystrophic epidermolysis bullosa (“RDEB”), ABO‑102, an adeno-associated virus (“AAV”)-based gene therapy for Sanfilippo syndrome type A (“MPS IIIA”), and ABO‑101 an AAV-based gene therapy for Sanfilippo syndrome type B (“MPS IIIB”). We also are developing ABO‑202 and ABO‑201, which are AAV-based gene therapies for the CLN1 and CLN3 forms of Batten Disease, respectively, ABO‑401 for the treatment of cystic fibrosis, and ABO‑5OX for the treatment of retinal diseases. In addition, we are developing next generation AAV-based gene therapy though our novel AIM™ vector platform programs. Our efforts since inception have been principally devoted to research and development, resulting in significant losses.
Basis of Presentation	Basis of Presentation The condensed consolidated balance sheets as of June 30, 2019, the condensed consolidated statements of operations and stockholders’ equity for the three and six months ended June 30, 2019 and 2018 and the condensed consolidated statements of cash flows for the six months ended June 30, 2019 and 2018, 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. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2018. The results of operations for the periods ended June 30, 2019 are not necessarily indicative of the operating results that may be expected for a full year. The condensed consolidated balance sheets as of December 31, 2018 contain financial information taken from the audited Abeona consolidated financial statements as of that date. As of June 30, 2019, we had 6,926,781 options and 1,820,686 warrants that were not included in the EPS calculation as their effect would be antidilutive. As of June 30, 2018, we had 5,895,135 options and 2,820,687 warrants that were not included in the EPS calculation as their effect would be antidilutive. Effective January 1, 2018, we adopted Accounting Standards Update (“ASU”) 2014‑09, Revenue from Contracts with Customers , as amended (ASC 606). At year-end 2018, we determined that we should adjust the amounts originally reported for the quarters ended March 31, 2018 and June 30, 2018 to correct for an error in the determination of the cumulative effect related to the adoption of ASC 606 as of January 1, 2018. The adjusted amounts for March 31, 2018 reflect a $2,067,000 reduction in foundation revenues and corresponding increases in the loss from operations and net loss of $2,067,000 and an increase in the diluted loss per share of $0.04, as compared to the originally reported amounts. The adjusted amounts for June 30, 2018 reflect a $543,000 reduction in foundation revenues and corresponding increases in the loss from operations and net loss of $543,000 and an increase in the diluted loss per share of $0.01, as compared to the originally reported amounts.
Uses and Sources of Liquidity	Uses and Sources of Liquidity The financial statements have been prepared on a going concern basis, which assumes the Company will have sufficient cash to pay its operating expenses, as and when they become payable, for a period of at least 12 months from the date the financial report was issued. As of June 30, 2019, we had cash, cash equivalents and short-term investments of $62.5 million and net assets of $107.2 million. For the six months ended June 30, 2019, we had cash outflows from operations of $30.3 million. We believe we have sufficient resources to fund our business operations for the next 12 months. However, we have implemented a multi-faceted program to seek sufficient liquidity through at least the end of 2020. This program considers the possibility of accessing additional equity funding from current or new stockholders, out-licensing technology and/or other assets, deferring and/or eliminating planned expenditures, restructuring operations and/or reducing headcount and sales of assets. We believe that we will be able to complete our liquidity program and will have sufficient funding to support planned expenditure commitments and our planned level of growth, and therefore we believe it is appropriate to prepare the financial statements on a going concern basis.

SHORT-TERM INVESTMENTS (Tables)

SHORT-TERM INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
SHORT-TERM INVESTMENTS
Schedule of available-for-sale investments held	The following table summarizes the available-for-sale investments held: June 30, December 31, Description 2019 2018 U.S. government and agency securities and treasuries $ 19,903,000 $ 66,218,000

LICENSED TECHNOLOGY (Tables)

LICENSED TECHNOLOGY (Tables)	6 Months Ended
	Jun. 30, 2019
LICENSED TECHNOLOGY
Schedule of licensed technology	Licensed technology consists of the following: June 30, December 31, 2019 2018 Licensed technology $ 42,606,000 $ 44,859,000 Less accumulated amortization 3,841,000 1,817,000 Licensed technology, net $ 38,765,000 $ 43,042,000
Amortization expense for intangible assets	The aggregate estimated amortization expense for intangible assets remaining as of June 30, 2019 is as follows: 2019, remainder $ 2,587,000 2020 5,167,000 2021 5,167,000 2022 5,167,000 2023 5,167,000 There after 15,510,000 Total $ 38,765,000

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
FAIR VALUE MEASUREMENTS
Financial assets and liabilities measured at fair value on recurring basis	Financial assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2019 and December 31, 2018 are summarized below: June 30, Total Description 2019 Level 1 Level 2 Level 3 Gains/(Losses) Recurring Assets: Short-term investments $ 19,903,000 $ — $ 19,903,000 $ — $ — Non-recurring Assets: Licensed technology, net $ 38,765,000 $ — $ — $ 38,765,000 $ (367,000) Goodwill 32,466,000 — — 32,466,000 — December 31, Total Description 2018 Level 1 Level 2 Level 3 Gains/(Losses) Recurring Assets: Short-term investments $ 66,218,000 $ — $ 66,218,000 $ — $ — Non-recurring Assets: Licensed technology, net $ 43,042,000 $ — $ — $ 43,042,000 $ — Goodwill 32,466,000 — — 32,466,000 —

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of weighted-average assumptions to estimate the fair value of the options granted	We used the following weighted-average assumptions to estimate the fair value of the options granted for the periods indicated: For the three months ended June 30, For the six months ended June 30, 2019 2018 2019 2018 Expected volatility 108 % 109 % 108 % 109 % Expected term 5 years 5 years 5 years 5 years Risk-free interest rate 2.21 % 2.65 % 2.24 % 2.44 % Expected dividend yield — % — % — % — %
Summarization of the options granted	The following table summarizes the options granted for the periods indicated: For the three months ended For the six months ended June 30, June 30, 2019 2018 2019 2018 Options granted 1,183,890 224,800 1,384,890 869,800 Weighted-average: Exercise price $ 6.86 $ 16.27 $ 6.84 $ 14.38 Grant date fair value $ 5.39 $ 12.87 $ 5.37 $ 11.36
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summarization of stock-based compensation	The following table summarizes stock-based option compensation for the three and six months ended June 30, 2019 and 2018: For the three months ended June 30, For the six months ended June 30, 2019 2018 2019 2018 Research and development $ 1,009,000 $ 900,000 $ 2,041,000 $ 1,744,000 General and administrative 669,000 1,773,000 1,740,000 2,829,000 Stock-based compensation expense included in operating expense 1,678,000 2,673,000 3,781,000 4,573,000 Total stock-based compensation expense 1,678,000 2,673,000 3,781,000 4,573,000 Tax benefit — — — — Stock-based compensation expense, net of tax $ 1,678,000 $ 2,673,000 $ 3,781,000 $ 4,573,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summarization of stock-based compensation	The following table summarizes restricted common stock compensation expense for the three and six months ended June 30, 2019 and 2018: For the three months ended June 30, For the six months ended June 30, 2019 2018 2019 2018 Research and development $ — $ — $ — $ — General and administrative 78,000 172,000 250,000 344,000 Stock-based compensation expense included in operating expense 78,000 172,000 250,000 344,000 Total stock-based compensation expense 78,000 172,000 250,000 344,000 Tax benefit — — — — Stock-based compensation expense, net of tax $ 78,000 $ 172,000 $ 250,000 $ 344,000

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
OPERATING LEASES
Components of lease cost	Components of lease cost are as follows: Three months ended Six months ended June 30, 2019 June 30, 2019 Operating lease cost $ 434,000 $ 723,000 Variable lease cost $ 86,000 $ 159,000 Short-term lease cost $ 34,000 $ 81,000
Schedule Of Supplemental Cash Flow Information Related To Leases	The following table presents information about the amount and timing of cash flows arising from operating leases as of June 30, 2019: Maturity of lease liabilities: 2019, remainder $ 845,000 2020 1,699,000 2021 1,713,000 2022 1,727,000 2023 1,741,000 Thereafter 3,667,000 Total undiscounted operating lease payments 11,392,000 Less: imputed interest 2,991,000 Present value of operating lease liabilities $ 8,401,000 Balance sheet classification: Current portion of lease liability $ 1,693,000 Long-term lease liability 6,708,000 Total operating lease liabilities $ 8,401,000 Other information: Weighted-average remaining lease term for operating leases 79 months Weighted-average discount rate for operating leases %

NATURE OF OPERATIONS AND SIGN_3

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash, cash equivalents and short-term investments			$ 62,500,000
Stockholders' equity attributable to parent	$ 160,916,000	$ 169,744,000	107,160,000	$ 160,916,000	$ 117,793,000	$ 134,045,000	$ 170,098,000
Net cash used in operating activities			$ (30,320,000)	$ (13,104,000)
New accounting pronouncement or change in accounting principle, effect of change on operating results	543,000	2,067,000
New accounting pronouncement or change in accounting principle, effect of adoption, quantification	$ 543,000	$ 2,067,000
New accounting pronouncement or change in accounting principle, effect of change on diluted earnings per share	$ 0.01	$ 0.04
Stock Options
Antidilutive securities excluded from computation of earnings per share, amount			6,926,781	5,895,135
Warrant
Antidilutive securities excluded from computation of earnings per share, amount			1,820,686	2,820,687

NEW ACCOUNTING STANDARD IMPLE_2

NEW ACCOUNTING STANDARD IMPLEMENTED (Details) - USD ($)	Jun. 30, 2019	Jan. 01, 2019
NEW ACCOUNTING STANDARD IMPLEMENTED
Operating lease, liability	$ 8,401,000	$ 8,900,000
Operating lease, right-of-use asset		$ 8,900,000

SHORT-TERM INVESTMENTS (Details

SHORT-TERM INVESTMENTS (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
SHORT-TERM INVESTMENTS
Debt securities, available-for-sale	$ 19,903,000	$ 66,218,000

LICENSED TECHNOLOGY - Licensed

LICENSED TECHNOLOGY - Licensed technology (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
LICENSED TECHNOLOGY
Licensed technology	$ 42,606,000	$ 44,859,000
Less accumulated amortization	3,841,000	1,817,000
Licensed technology, net	$ 38,765,000	$ 43,042,000

LICENSED TECHNOLOGY - Estimated

LICENSED TECHNOLOGY - Estimated Amortization Expense (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
LICENSED TECHNOLOGY
2019, remainder	$ 2,587,000
2020	5,167,000
2021	5,167,000
2022	5,167,000
2023	5,167,000
There after	15,510,000
Total	$ 38,765,000	$ 43,042,000

LICENSED TECHNOLOGY - Additiona

LICENSED TECHNOLOGY - Additional Information (Details)	May 15, 2019USD ($)shares	Aug. 03, 2016USD ($)shares	Nov. 04, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Paid due licensor current				$ 10,000,000		$ 10,000,000		$ 10,000,000
Finite-Lived Intangible Assets, Gross				42,606,000		42,606,000		44,859,000
Payable due licensor non current				20,000,000		20,000,000		$ 20,000,000
Amortization of intangible assets				$ 1,293,000	$ 87,000	2,638,000	$ 174,000
Shares returned in connection with arbitration ruling on licensing agreement (in shares) | shares	450,000
Non-cash loss on arbitration ruling on licensing agreement	$ 367,000					$ 367,000	$ 0
Abeona Therapeutics LLC
Finite-lived intangible asset, useful life						20 years
EB Agreement
Number of license agreements research and development arrangements		2
Issuance of common shares | shares		375,000
Finite-Lived Intangible Assets, Gross		$ 2,450,000
EB Agreement | Abeona Therapeutics LLC
Finite-lived intangible asset, useful life		20 years
REGENXBIO
Finite-lived intangible asset, useful life			8 years
REGENXBIO | Licensing Agreements
Guaranteed upfront payment			$ 20,000,000
Paid due licensor current			10,000,000
Annual fees			100,000,000
Milestone payment			60,000,000
Payable due licensor non current			20,000,000
Payment on Execution of Contracts			$ 10,000,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Assets
Short-term investments	$ 19,903,000	$ 66,218,000
Recurring
Assets
Short-term investments	19,903,000	66,218,000
Recurring | Available-for-sale Securities | Level 1
Assets
Short-term investments	0	0
Recurring | Available-for-sale Securities | Level 2
Assets
Short-term investments	19,903,000	66,218,000
Recurring | Available-for-sale Securities | Level 3
Assets
Short-term investments	0	0
Nonrecurring
Assets
Licensed technology, net	38,765,000	43,042,000
Goodwill	32,466,000	32,466,000
Nonrecurring | Licensed technology
Assets
Licensed technology, net	(367,000)	0
Nonrecurring | Licensed technology | Level 1
Assets
Licensed technology, net	0	0
Nonrecurring | Licensed technology | Level 2
Assets
Licensed technology, net	0	0
Nonrecurring | Licensed technology | Level 3
Assets
Licensed technology, net	38,765,000	43,042,000
Nonrecurring | Goodwill
Assets
Goodwill	0	0
Nonrecurring | Goodwill | Level 1
Assets
Goodwill	0	0
Nonrecurring | Goodwill | Level 2
Assets
Goodwill	0	0
Nonrecurring | Goodwill | Level 3
Assets
Goodwill	$ 32,466,000	$ 32,466,000

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock-Based Option Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Stock-based compensation expense included in operating expense
Stock-based compensation expense included in operating expense			$ 3,781,000	$ 4,573,000
Total stock-based compensation expense			3,781,000	4,573,000
Stock Options
Stock-based compensation expense included in operating expense
Stock-based compensation expense included in operating expense	$ 1,678,000	$ 2,673,000	3,781,000	4,573,000
Total stock-based compensation expense	1,678,000	2,673,000	3,781,000	4,573,000
Tax benefit	0	0	0	0
Stock-based compensation expense, net of tax	1,678,000	2,673,000	3,781,000	4,573,000
Stock Options | Research and Development
Stock-based compensation expense included in operating expense
Stock-based compensation expense included in operating expense	1,009,000	900,000	2,041,000	1,744,000
Total stock-based compensation expense	1,009,000	900,000	2,041,000	1,744,000
Stock Options | General and Administrative
Stock-based compensation expense included in operating expense
Stock-based compensation expense included in operating expense	669,000	1,773,000	1,740,000	2,829,000
Total stock-based compensation expense	669,000	1,773,000	1,740,000	2,829,000
Restricted Stock
Stock-based compensation expense included in operating expense
Stock-based compensation expense included in operating expense	78,000	172,000	250,000	344,000
Total stock-based compensation expense	78,000	172,000	250,000	344,000
Tax benefit	0	0	0	0
Stock-based compensation expense, net of tax	78,000	172,000	250,000	344,000
Restricted Stock | Research and Development
Stock-based compensation expense included in operating expense
Stock-based compensation expense included in operating expense	0	0	0	0
Total stock-based compensation expense	0	0	0	0
Restricted Stock | General and Administrative
Stock-based compensation expense included in operating expense
Stock-based compensation expense included in operating expense	78,000	172,000	250,000	344,000
Total stock-based compensation expense	$ 78,000	$ 172,000	$ 250,000	$ 344,000

STOCK-BASED COMPENSATION - weig

STOCK-BASED COMPENSATION - weighted-average assumptions (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
STOCK-BASED COMPENSATION
Expected volatility	108.00%	109.00%	108.00%	109.00%
Expected term	5 years	5 years	5 years	5 years
Risk-free interest rate	2.21%	2.65%	2.24%	2.44%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Weighted-average Exercise price	$ 6.86	$ 16.27	$ 6.84	$ 14.38
Weighted-average Grant date fair value	$ 5.39	$ 12.87	$ 5.37	$ 11.36
Stock Options
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Options granted	1,183,890	224,800	1,384,890	869,800

OPERATING LEASES - Components O

OPERATING LEASES - Components Of Lease Cost (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
OPERATING LEASES
Operating lease cost	$ 434,000	$ 723,000
Variable lease cost	86,000	159,000
Short-term lease cost	$ 34,000	$ 81,000

OPERATING LEASES - Timing Of Ca

OPERATING LEASES - Timing Of Cash Flows Arising From Operating Leases (Details) - USD ($)	Jun. 30, 2019	Jan. 01, 2019
Maturity of lease liabilities:
2019, remainder	$ 845,000
2020	1,699,000
2021	1,713,000
2022	1,727,000
2023	1,741,000
Thereafter	3,667,000
Total undiscounted operating lease payments	11,392,000
Less: imputed interest	2,991,000
Total operating lease liabilities	8,401,000	$ 8,900,000
Balance sheet classification:
Current portion of lease liability	1,693,000
Long-term lease liability	6,708,000
Total operating lease liabilities	$ 8,401,000	$ 8,900,000
Other information:
Weighted-average remaining lease term for operating leases	79 months
Weighted-average discount rate for operating leases	9.60%