Enzon Pharmaceuticals (ENZN) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 02, 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	ENZON PHARMACEUTICALS, INC.
Entity Central Index Key	727,510
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	ENZN
Entity Common Stock, Shares Outstanding		44,214,603
Entity Emerging Growth Company	false
Entity Small Business	true

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 6,726	$ 7,478
Other current assets	68	94
Total current assets	6,794	7,572
Refundable tax credits receivable	1,940	1,940
Total assets	8,734	9,512
Current liabilities:
Accounts payable	533	225
Accrued expenses and other current liabilities	90	143
Total current liabilities	623	368
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.01 par value, authorized 3,000,000 shares; no shares issued and outstanding at September 30, 2018 and December 31, 2017	0	0
Common stock - $0.01 par value, authorized 170,000,000 shares; issued and outstanding 44,214,603 shares at September 30, 2018 and December 31, 2017	442	442
Additional paid-in capital	83,649	83,649
Accumulated deficit	(75,980)	(74,947)
Total stockholders' equity	8,111	9,144
Total liabilities and stockholders' equity	$ 8,734	$ 9,512

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	170,000,000	170,000,000
Common stock, shares issued	44,214,603	44,214,603
Common stock, shares outstanding	44,214,603	44,214,603

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Revenues	$ (280)	$ 151	$ (205)	$ 8,366
Operating expenses:
General and administrative	239	335	826	1,021
Total operating expenses	239	335	826	1,021
Operating (loss) income and (loss) income before income tax expense (benefit)	(519)	(184)	(1,031)	7,345
Income tax expense (benefit)	1	(337)	2	2,362
Net (loss) income	$ (520)	$ 153	$ (1,033)	$ 4,983
(Loss) Earnings per common share
Basic and diluted	$ (0.01)	$ 0	$ (0.02)	$ 0.11
Weighted-average shares – basic	44,215	44,215	44,215	44,215
Weighted-average shares – diluted	44,215	44,215	44,215	44,215
Royalties, net
Revenues:
Revenues	$ (280)	$ 151	$ (205)	$ 8,366

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net (loss) income	$ (1,033)	$ 4,983
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Deferred tax provision	0	2,213
Changes in operating assets and liabilities	281	(3,883)
Net cash (used in) provided by operating activities	(752)	3,313
Cash flows from financing activities:
Common stock dividend	0	(6,632)
Net cash used in financing activities	0	(6,632)
Net decrease in cash	(752)	(3,319)
Cash at beginning of period	7,478	7,639
Cash at end of period	$ 6,726	$ 4,320

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations [Text Block]	(1) Description of Business Enzon Pharmaceuticals, Inc. (together with its subsidiaries, “Enzon” or the “Company,” “we” or “us”), manages its sources of royalty revenues from existing licensing arrangements with other companies primarily related to sales of certain drug products that utilize Enzon’s proprietary technology. In 2017, the primary source of the Company’s royalty revenues was the revenue received from Nektar Therapeutics, Inc. (“Nektar”) pursuant to the execution of a Second Amendment (“Nektar Second Amendment”) to the Company’s Cross-License and Option Agreement (the “Nektar License Agreement”) with Nektar, which generated non-recurring royalty revenues of $7 million (see below). The receipt of this $7 million satisfied all future obligations of royalty payments pursuant to the Nektar License Agreement. Prior to 2017, the primary source of the Company’s royalty revenues was derived from sales of PegIntron, which is marketed by Merck & Co., Inc. (“Merck”). Prior to 2013, the Company was dedicated to the research and development of innovative therapeutics for patients with high unmet medical needs. The Company currently has no clinical operations and limited corporate operations. The Company has no intention of resuming any clinical development activities or acquiring new sources of royalty revenues. Royalty revenues from sales of PegIntron accounted for 100% 80% (exclusive of downward revenue adjustment of $280,000 in the third quarter of 2018) and 13% (before adjustment for Merck’s recoupment of previously overpaid royalties of approximately $ 564,000 In March 2018, Merck notified the Company that a downward adjustment of approximately $ 313,000 in royalties was necessary, resulting primarily from product returns. Accordingly, at December 31, 2017, the Company accrued a liability to Merck of approximately $ 313,000 and partially offset that amount by the $ 88,000 that was due to the Company from Merck. Thus, the Company recorded a net payable to Merck of approximately $ 225,000 at December 31, 2017. In January 2018, Merck paid the $ 88,000 to the Company, which increased the liability to $ 313,000 . During the second quarter of 2018, Enzon earned approximately $ 60 ,000 of royalties, which reduced the royalty payable to Merck to $ 253,000 . In the third quarter of 2018, Merck notified the Company of an additional downward adjustment of approximately $ 280,000 , the net effect of royalty income of $ 54,000 and chargebacks of $ 334,000 . Such chargebacks resulted, primarily, from product rebates and returns. Accordingly, the liability to Merck was $ 533,000 at September 30, 2018, as discussed in Note 11 to the Condensed Consolidated Financial Statements. In April 2013, the Company announced that it intended to distribute excess cash, expected to arise from ongoing royalty revenues, in the form of periodic dividends to stockholders. On February 4, 2016, the Company’s Board adopted a Plan of Liquidation and Dissolution (the “Plan of Liquidation and Dissolution”), the implementation of which has been postponed. (See Note 10 to the Condensed Consolidated Financial Statements.) The Company may be entitled to certain potential future milestone payments contingent upon the achievement of certain regulatory approval-related milestones with respect to Oncaspar. The milestone payment obligations were assumed by Shire plc (“Shire”), when it acquired the Oncaspar product portfolio previously owned by Sigma-Tau Finanziaria S.p.A. in July 2015. In February 2018, Shire indicated that it was in the registration stage and awaiting further regulatory action. If Food and Drug Administration (“FDA”) approval is obtained for SC Oncaspar, the Company would be entitled to a milestone payment of $7.0 million from Servier S.A.S. (Servier), which entered into an agreement to purchase the oncology business from Shire in 2018. According to Shire, the Prescription Drug User Fee Act (“PDUFA”) date for approval of the Biologics License Application (“BLA”) is December 22, 2018. There can be no assurance that the FDA will approve the BLA. Accordingly, there can be no assurance that the Company will receive any of the milestone payments related to SC Oncaspar or any other such milestone payments resulting from its agreements with any of the Company’s other third party licensees. The Company will not recognize revenue from Servier or any of the Company’s other third party licensees until all current revenue recognition requirements are met. Under the Company’s existing agreements with certain third party licensees, the Company may be entitled to (i) potential future milestone payments contingent upon the achievement of certain milestones with respect to other drug products in various stages of clinical and preclinical development and (ii) potential future royalty payments related to any future sales of these drug products. Due to the challenges associated with developing and obtaining approval for drug products, there is substantial uncertainty whether any of these milestones will be achieved. The Company also has no control over the time, resources and effort that these third party licensees may devote to their programs, whether such third party licensees will contest their obligations to make milestone or royalty payments and limited access to information regarding or resulting from such programs. Accordingly, there can be no assurance that the Company will receive any of the milestone or royalty payments under these agreements. Except for these potential milestone payments, the Company anticipates little or no future revenue. On June 26, 2017, the Company entered into the Nektar Second Amendment, wherein Nektar agreed to buy-out all remaining payment obligations to the Company under the Nektar License Agreement. In consideration for fully paid-up licenses under the Nektar License Agreement and for the dismissal with prejudice of all claims and counterclaims asserted in the litigation with Nektar, Nektar agreed to pay the Company the sum of $7.0 million, which satisfies all future obligations of royalty payments pursuant to the Nektar License Agreement, the first $3.5 million of which was paid within one business day of the effective date of the Nektar Second Amendment and the remaining $3.5 million was to be paid on January 6, 2018. Accordingly, the Company recorded revenue of $7.0 million and a receivable of $3.5 million in the second quarter of 2017. The $3.5 million receivable was paid in full in December 2017.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting [Text Block]	(2) Basis of Presentation Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared from the books and records of the Company in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and Rule 10-01 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (SEC). Accordingly, these financial statements do not include all of the information and footnotes required for complete annual financial statements. Interim results are not necessarily indicative of the results that may be expected for the full year. Interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated as part of the consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates include legal and contractual contingencies and income taxes. Although management bases its estimates on historical experience, relevant current information and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ from these estimates. Revenues In accordance with Financial Accounting Standards Board (“ FASB”) Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606), royalty revenues from the Company’s agreements with third parties are recognized when the Company can reasonably determine the amounts earned. In most cases, this will be upon notification from the third-party licensee, which is typically during the quarter following the quarter in which the sales occurred. The Company does not participate in the selling or marketing of products for which it receives royalties. No provision for uncollectible accounts is established upon recognition of revenues. (See Note 3.) Contingent payments due under the asset purchase agreement for the sale of the Company’s former specialty pharmaceutical business are recognized as income when the milestone has been achieved and collection is assured. Such payments are non-refundable and no further effort is required on the part of the Company or the other party to complete the earning process.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	(3) New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09 (Topic 606), “Revenue from Contracts with Customers,” relating to revenue recognition. This new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This ASU, as amended, was effective January 1, 2018. The adoption of this update did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), “Leases,” which is intended to improve financial reporting around leasing transactions. This ASU affects all companies and other organizations that engage in leasing transactions (both lessee and lessor) that lease assets such as real estate and manufacturing equipment. This ASU will require organizations that lease assets – referred to as “leases” – to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for fiscal years and interim periods within those years beginning January 1, 2019. On January 5, 2018, the FASB issued an exposure draft amending certain aspects of the new leasing standard. The proposed amendments include a provision to allow entities to elect not to restate comparable periods in the period of adoption when transitioning to the new standard and instead permit a modified retrospective approach. The standard will not have a material effect on its consolidated financial statements. In August 2018, the SEC issued the final rule on Disclosures About Changes in Stockholders’ Equity For filings on Form 10-Q, which extends to interim periods the annual requirement in SEC Regulation S-X, Rule 3-04,2 to disclose (1) changes in stockholders’ equity and (2) the amount of dividends per share for each class of shares (as opposed to common stock only, as previously required). Pursuant to the final rule, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for “the current and comparative year-to-date [interim] periods, with subtotals for each interim period,” i.e., a reconciliation covering each period for which an income statement is presented. Rule 3-04 permits the disclosure of changes in stockholders’ equity (including dividend-per-share amounts) to be made either in a separate financial statement or in the notes to the financial statements. Th e final rule is effective for all filings made on or after November 5, 2018. The staff of the SEC has indicated it would not object if the filer’s first presentation of the changes in shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. Therefore, the Company expects to conform to this rule in its Form 10-Q for the quarter ending Marc h 31, 2019. Inasmuch as the Company has paid no dividends nor had any stock-related transactions during the nine months ended September 30, 2018 and its only change in stockholders’ equity during that period was its net income (loss), the Company believes that the final rule will not have a material effect on its consolidated financial statements and disclosures. Other recent ASU's issued by the FASB and guidance issued by the Securities and Exchange Commission did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements.

Financial Instruments and Fair

Financial Instruments and Fair Value	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	(4) Financial Instruments and Fair Value The carrying values of cash, other current assets, accounts payable, accrued expenses and other current liabilities in the Company’s condensed consolidated balance sheets approximated their fair values at September 30, 2018 and December 31, 2017 due to their short-term nature.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Elements [Abstract]
Cash Flow, Supplemental Disclosures [Text Block]	(5) Supplemental Cash Flow Information There were no income tax or interest payments made during the nine months ended September 30, 2018 or 2017.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	(6) Earnings Per Common Share Basic earnings per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding during the period. Restricted stock awards and restricted stock units (collectively, nonvested shares) are not considered to be outstanding shares until the service or performance vesting period has been completed. The diluted earnings per share calculation would normally involve adjusting both the denominator and numerator as described here if the effect is dilutive. The denominator would include both the weighted average number of shares of common stock outstanding and common stock equivalents. Dilutive common stock equivalents potentially include stock options and nonvested shares using the treasury stock method and shares issuable under the employee stock purchase plan. For purposes of calculating diluted earnings per common share, the denominator includes both the weighted-average number of shares of common stock outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include stock options and nonvested shares using the treasury stock method and shares issuable under the employee stock purchase plan (ESPP). Earnings per common share information is as follows (in thousands, except per share amounts) for the three months and nine months ended September 30, 2018 and 2017: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (Loss) Earnings Per Common Share – Basic and Diluted: Net (loss) income $ (520 ) $ 153 $ (1,033 ) $ 4,983 Weighted-average common shares outstanding 44,215 44,215 44,215 44,215 Basic and diluted (loss) earnings per share $ (0.01 ) $ 0.00 $ (0.02 ) $ 0.11 As of September 30, 2018 and 2017, options for 41,787 and 41,787 shares, respectively, were outstanding that have been excluded from the calculation of diluted weighted average shares outstanding, as they would be anti-dilutive since the respective options’ strike price was greater than the current market price of the shares. Additionally, as of September 30, 2018 and 2017, there were no dilutive common stock equivalents that would have affected diluted (loss) earnings per share.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	(7) Stock-Based Compensation Stock Options and Restricted Stock Units (RSUs or Nonvested Shares) During the nine months ended September 30, 2018, no options were granted and the Company incurred no stock-based compensation expense. No RSUs were outstanding as of September 30, 2018. There were no options granted during the nine months ended September 30, 2017 and no nonvested shares granted or outstanding during the nine months ended September 30, 2017. The Company uses historical data to estimate forfeiture rates. Activity related to stock options and nonvested shares during the nine months ended September 30, 2018 and related balances outstanding as of that date are reflected below: Stock Options Outstanding at January 1, 2018 41,787 Granted - Exercised and vested - Expired and forfeited - Outstanding at September 30, 2018 41,787 Options vested at September 30, 2018 41,787 Options exercisable at September 30, 2018 41,787

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	(8) Income Taxes During the nine months ended September 30, 2018, the Company recorded approximately $2,000 of income tax expense for New Jersey state income tax of which $1,000 was recorded in the three-month period ended September 30, 2018. The Company incurred tax expense of approximately $2.4 million for the nine months ended September 30, 2017 of which approximately $0.3 million in income tax benefit was incurred during the third quarter of 2017. The effective tax rate for the three-month period ended September 30, 2018 was 0.1% as compared to 183% for the three-month period ended September 30, 2017. The change in rate is attributable to changes in estimates of projected income in future years. The Company continues to provide a valuation allowance against all of its deferred tax assets, as the Company believes it is more likely than not that its deferred tax assets will not be realized. Management of the Company will continue to assess the need for this valuation allowance and will make adjustments when appropriate. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain tax positions. Interest and penalties, if any, related to unrecognized tax benefits, would be recognized as income tax expense. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. Among its numerous changes to the Internal Revenue Code, the Act reduced the U.S. federal corporate tax rate from 35% to 21% for years beginning after December 31, 2017. In addition, the Act repealed the corporate alternative minimum tax (“AMT”) for years beginning after December 31, 2017 and allows companies with existing alternative minimum tax credits (“MTC”) carryforwards as of December 31, 2017 to receive refunds of the credits in tax years after 2017 and before 2022 in an amount equal to 50% (100% in 2021) of the excess MTC over the amount of the credit allowable for the year against regular tax liability. The Act also provides for an indefinite carryforward period for net operating losses generated after 2017 and limits annual utilization to 80% of taxable income. Net operating losses generated prior to 2018 continue to be carried forward for 20 years and have no 80% limitation on utilization. Our accounting is complete as of December 31, 2017 as related to the remeasurement of deferred taxes to the new tax rate of 21%, repeal of the AMT, receipt of MTC refunds and limitation of net operating losses generated after 2017 to 80% of taxable income. No provisional amounts were recorded as a result. As a result of the Act’s provision allowing for the refund of MTC beginning with tax year 2018, the Company has recorded MTC as a long-term receivable of approximately $1.9 million.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	(9) Commitments and Contingent Liabilities Commencing on March 1, 2016, the Company changed the location of its principal executive offices to 20 Commerce Drive, Suite 135, Cranford, New Jersey, 07016. The Company entered into an office service agreement with Regus Management Group, LLC (“Regus”) for use of office space at this location effective March 1, 2016. Under the agreement, in exchange for the Company’s right to use the office space at this location, the Company was required to pay Regus an initial service retainer of $2,418 and thereafter pay Regus a monthly fee of $1,209 until February 28, 2017. This agreement was renewed for two one-year extensions, until February 28, 2019, for a monthly fee of $1,259. In June 2018, the Company and Regus agreed to end the lease on August 31, 2018, and replace it with an updated office service agreement. The Company entered into an office service agreement with Regus for mailbox plus, telephone answering, and virtual office services effective September 1, 2018. Under the agreement, in exchange for the services provided by Regus, the Company was required to pay Regus an initial service retainer of $259 and thereafter pay Regus a monthly fee of $259 until August 31, 2019. Effective July 1, 2018, the Company entered into an office rental agreement with Equinox Junior, LLC (“Equinox”) for use of office space at 3556 Main Street, Manchester, VT, 05225. Under this agreement, in exchange for the Company’s right to use the office space at this location, the Company is required to pay Equinox a security deposit of $708 and thereafter pay Equinox a monthly fee of $708 until June 30, 2019. The Company has been involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material effect on the Company’s consolidated financial position, results of operations, or liquidity.

Plan of Liquidation and Dissolu

Plan of Liquidation and Dissolution	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidation Basis of Accounting [Text Block]	(10) Plan of Liquidation and Dissolution On February 4, 2016, the Company’s Board of Directors adopted a Plan of Liquidation and Dissolution (the “Plan of Liquidation and Dissolution”), pursuant to which the Company would, subject to obtaining requisite stockholder approval, be liquidated and dissolved in accordance with Sections 280 and 281(a) of the General Corporation Law of the State of Delaware. In approving the Plan of Liquidation and Dissolution, the Company’s Board of Directors had considered, among other factors, the ability of the Company to obtain no-action relief from the SEC to suspend certain of the Company’s reporting obligations under the Securities Exchange Act of 1934, as amended, and the anticipated cost savings if such relief were granted by the SEC. After further consideration, the Company’s Board of Directors determined that it would be fair, advisable and in the best interests of the Company and its stockholders to postpone seeking stockholder approval of the Plan of Liquidation and Dissolution until a later time to be determined by the Company’s Board of Directors. If dissolution and liquidation of the Company pursuant to the Plan of Liquidation and Dissolution are approved by the Company’s stockholders and implemented by management, it is expected that the Company’s corporate existence will continue for the purpose of winding up its business and affairs, at least, through the year 2021, consistent with the expiration of the Company’s existing license arrangements that generate its royalty revenues. The Company has forecasted little or no royalty revenues for the years 2018 through 2021. This forecast is based upon a variety of estimates and numerous assumptions made by the Company’s management with respect to, among other matters, forecasted sales of the drug products for which the Company has the right to receive royalties, potential returns and rebates and other matters, many of which are difficult to predict, are subject to significant uncertainties, and are beyond the Company’s control. As a result, there can be no assurance that the estimates and assumptions upon which this forecast is based will prove accurate, that the projected results will be realized or that actual results will not be substantially higher or lower than forecasted.

Royalty Revenues and Accounts P

Royalty Revenues and Accounts Payable	9 Months Ended
	Sep. 30, 2018
Royalty Revenues and Accounts Payable [Abstract]
Royalty Revenues and Accounts Payable [Text Block]	(11) Royalty Revenues and Accounts Payable During the fourth quarter of 2017, Merck corrected an error in their previous adjustment of royalties, noting that they owed the Company an additional net amount of approximately $88,000 and the Company recorded a receivable of that amount. In March 2018, Merck notified the Company that a downward adjustment of approximately $313,000 in royalties was necessary, primarily due to returns from sales in China in the fourth quarter of 2017. Accordingly, in December 2017, the Company accrued a liability to Merck of approximately $313,000 and partially offset that amount by the $88,000 that was due to the Company from Merck. Thus, the Company recorded a net payable to Merck of approximately $225,000 December 31, 2017. In January 2018, Merck paid the net $88,000 that was due to the Company from the royalties adjustment it had made. Because this amount was included in March 2018 when Merck calculated and notified the Company of the $313,000 returns adjustment, the $88,000 received in January was recorded as an additional liability due back to Merck. Therefore, at March 31, 2018 the aggregate amount due to Merck was approximately $313,000. During the three-month period ended June 30, 2018, Merck calculated and notified the Company that Enzon earned $61,000 of royalties, which reduced the aggregate amount due to Merck to approximately $253,000. During the three-month period ended September 30, 2018, Merck calculated and notified the Company that Merck had an additional downward adjustment of approximately $280,000, the net effect of royalty income of $54,000 and chargebacks of $334,000. Such chargebacks, of which returns from Iraq represented approximately $254,000, resulted, primarily, from product rebates and returns. After accounting for this downward adjustment, the liability to Merck was increased to $533,000 at September 30, 2018. While it is likely there will be future downward adjustments from Merck based on product returns and rebates, the Company is unable to predict the timing and amounts of any such adjustments.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Interim Financial Statements [Policy Text Block]	Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared from the books and records of the Company in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and Rule 10-01 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (SEC). Accordingly, these financial statements do not include all of the information and footnotes required for complete annual financial statements. Interim results are not necessarily indicative of the results that may be expected for the full year. Interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated as part of the consolidation.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates include legal and contractual contingencies and income taxes. Although management bases its estimates on historical experience, relevant current information and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ from these estimates.
Revenue Recognition, Policy [Policy Text Block]	Revenues In accordance with Financial Accounting Standards Board (“ FASB”) Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606), royalty revenues from the Company’s agreements with third parties are recognized when the Company can reasonably determine the amounts earned. In most cases, this will be upon notification from the third-party licensee, which is typically during the quarter following the quarter in which the sales occurred. The Company does not participate in the selling or marketing of products for which it receives royalties. No provision for uncollectible accounts is established upon recognition of revenues. (See Note 3.) Contingent payments due under the asset purchase agreement for the sale of the Company’s former specialty pharmaceutical business are recognized as income when the milestone has been achieved and collection is assured. Such payments are non-refundable and no further effort is required on the part of the Company or the other party to complete the earning process.

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Earnings per common share information is as follows (in thousands, except per share amounts) for the three months and nine months ended September 30, 2018 and 2017: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (Loss) Earnings Per Common Share – Basic and Diluted: Net (loss) income $ (520 ) $ 153 $ (1,033 ) $ 4,983 Weighted-average common shares outstanding 44,215 44,215 44,215 44,215 Basic and diluted (loss) earnings per share $ (0.01 ) $ 0.00 $ (0.02 ) $ 0.11

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation, Activity [Table Text Block]	Activity related to stock options and nonvested shares during the nine months ended September 30, 2018 and related balances outstanding as of that date are reflected below: Stock Options Outstanding at January 1, 2018 41,787 Granted - Exercised and vested - Expired and forfeited - Outstanding at September 30, 2018 41,787 Options vested at September 30, 2018 41,787 Options exercisable at September 30, 2018 41,787

Description of Business (Detail

Description of Business (Details Textual) - USD ($)	1 Months Ended		3 Months Ended				9 Months Ended		12 Months Ended
	Jan. 31, 2018	Jun. 26, 2017	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Description of Business [Line Items]
Royalty Revenues From Sales Percentage			100.00%				80.00%	13.00%
Revenues			$ (280,000)		$ 151,000		$ (205,000)	$ 8,366,000
Proceeds from Royalties Received						$ 3,500,000
Payment Of Milestone Payments							7,000,000
Adjustments To Royalties Revenue									$ 313,000
Royalty Income, Nonoperating			54,000
Accounts Payable, Current			533,000				533,000		225,000
Over Paid Royalties							564,000	564,000
Royalty [Member]
Description of Business [Line Items]
Revenues			(280,000)		151,000		(205,000)	$ 8,366,000
Nektar Therapeutics, Inc [Member]
Description of Business [Line Items]
Revenues		$ 7,000,000			$ 7,000,000	$ 7,000,000	7,000,000
Proceeds from Royalties Received		3,500,000
Other Receivables, Net, Current		$ 3,500,000							3,500,000
Merck [Member]
Description of Business [Line Items]
Proceeds from Royalties Received	$ 88,000
Adjustments To Royalties Revenue			280,000				313,000		88,000
Accrued Royalties, Current After Offsetting									225,000
Accrued Royalties, Current	$ 313,000			$ 253,000					$ 313,000
Decreases Of Royalty Revenues			280,000
Royalty Income, Nonoperating			54,000
Royalty Expense			334,000
Accounts Payable, Current			$ 533,000				$ 533,000
Merck [Member] | Royalty [Member]
Description of Business [Line Items]
Revenues				$ 60,000

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Details Textual)	9 Months Ended
	Sep. 30, 2018USD ($)
Dividends Payable [Line Items]
Interest Paid, Net	$ 0

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share, Basic and Diluted [Abstract]
Net (loss) income	$ (520)	$ 153	$ (1,033)	$ 4,983
Weighted-average common shares outstanding	44,215	44,215	44,215	44,215
Basic and diluted (loss) earnings per share	$ (0.01)	$ 0	$ (0.02)	$ 0.11

Earnings Per Common Share (De_2

Earnings Per Common Share (Details Textual) - shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Employee Stock Option [Member]
Earnings Per Common Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	41,787	41,787

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	9 Months Ended
	Sep. 30, 2018shares
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Outstanding at January 1, 2018, Stock Options	41,787
Granted, Stock Options	0
Exercised and vested, Stock Options	0
Expired and forfeited, Stock Options	0
Outstanding at September 30, 2018, Stock Options	41,787
Options vested at September 30, 2018, Stock Options	41,787
Options exercisable at September 30, 2018, Stock Options	41,787

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate						35.00%
Income Tax Expense (Benefit)	$ 1	$ (337)	$ 2	$ 2,362
Refund Of Tax Credit Description			In addition, the Act repealed the corporate alternative minimum tax (“AMT”) for years beginning after December 31, 2017 and allows companies with existing alternative minimum tax credits (“MTC”) carryforwards as of December 31, 2017 to receive refunds of the credits in tax years after 2017 and before 2022 in an amount equal to 50% (100% in 2021) of the excess MTC over the amount of the credit allowable for the year against regular tax liability.
Tax Credit Carryforward, Limitations on Use			The Act also provides for an indefinite carryforward period for net operating losses generated after 2017 and limits annual utilization to 80% of taxable income. Net operating losses generated prior to 2018 continue to be carried forward for 20 years and have no 80% limitation on utilization.
Income Taxes Receivable, Noncurrent	$ 1,940		$ 1,940			$ 1,940
Effective Income Tax Rate Reconciliation, Percent	0.10%	183.00%
Nj state [Member]
Income Taxes [Line Items]
Income Tax Expense (Benefit)	$ 1,000		$ 2,000
Scenario, Plan [Member]
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate					21.00%

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Thousands	Jul. 02, 2018	Mar. 01, 2016	Aug. 31, 2019	Jun. 30, 2018
Loss Contingencies [Line Items]
Security Deposit	$ 708
Operating Leases, Rent Expense	$ 708
Scenario, Forecast [Member]
Loss Contingencies [Line Items]
Security Deposit			$ 259
Operating Leases, Rent Expense			$ 259
Regus Management Group, LLC [Member]
Loss Contingencies [Line Items]
Security Deposit		$ 2,418
Operating Leases, Rent Expense		$ 1,209		$ 1,259

Royalty Revenues and Accounts_2

Royalty Revenues and Accounts Payable (Details Textual) - USD ($)	1 Months Ended	3 Months Ended				9 Months Ended		12 Months Ended
	Jan. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Proceeds from Royalties Received					$ 3,500,000
Adjustments To Royalties Revenue								$ 313,000
Revenues		$ (280,000)		$ 151,000		$ (205,000)	$ 8,366,000
Royalty Income, Nonoperating		54,000
Accounts Payable, Current		533,000				533,000		225,000
Royalty [Member]
Revenues		(280,000)		$ 151,000		(205,000)	$ 8,366,000
Merck [Member]
Proceeds from Royalties Received	$ 88,000
Accrued Royalties, Current	$ 313,000		$ 253,000					313,000
Offsetting Of Royalty Income								88,000
Accrued Royalties, Current After Offsetting								225,000
Adjustments To Royalties Revenue		280,000				313,000		$ 88,000
Decreases Of Royalty Revenues		280,000
Royalty Income, Nonoperating		54,000
Royalty Expense		334,000
Accounts Payable, Current		533,000				$ 533,000
Merck [Member] | IRAQ
Royalty Expense		$ 254,000
Merck [Member] | Royalty [Member]
Revenues			$ 60,000