Enzon Pharmaceuticals (ENZN) 10-Q 26 Apr 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 15, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	Enzon Pharmaceuticals, Inc.
Entity Central Index Key	0000727510
Current Fiscal Year End Date	--12-31
Entity File Number	001-36435
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-2372868
Entity Address, Address Line One	20 Commerce Drive (Suite 135)
Entity Address, City or Town	Cranford
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07016
City Area Code	732
Local Phone Number	980-4500
Title of 12(b) Security	None
No Trading Symbol Flag	true
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		74,214,603

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 47,429	$ 47,641
Royalty and milestone receivable		28
Other current assets	41	85
Total current assets	47,470	47,754
Total assets	47,470	47,754
Current liabilities:
Accounts payable	331	331
Accrued expenses and other current liabilities	79	72
Total current liabilities	410	403
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.01 par value, authorized 2,960,000 shares; no shares issued and outstanding at March 31, 2022 and December 31, 2021	0	0
Common stock - $0.01 par value, authorized 170,000,000 shares; issued and outstanding 74,214,603 shares at March 31, 2022 and December 31, 2021	742	742
Additional paid-in capital	75,452	75,983
Accumulated deficit	(72,148)	(71,857)
Total stockholders' equity	4,046	4,868
Total liabilities, mezzanine equity and stockholders' equity	47,470	47,754
Series C Preferred Stock
Mezzanine equity:
Series C preferred stock - $0.01 par value, 40,000 shares authorized, issued and outstanding (liquidation value $1,075 and $1,062 per share) at March 31, 2022 and December 31, 2021	$ 43,014	$ 42,483

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
MEZZANINE EQUITY
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,960,000	2,960,000
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	74,214,603	74,214,603
Common stock, shares outstanding	74,214,603	74,214,603
Series C Preferred Stock
MEZZANINE EQUITY
Preferred Shares, par value	$ 0.01	$ 0.01
Preferred Shares, shares authorized	40,000	40,000
Preferred Shares, shares issued	40,000	40,000
Preferred Shares, shares outstanding	40,000	40,000
Preferred Shares, liquidation value	$ 1,075	$ 1,062
Common stock, shares outstanding	74,214,603

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Royalties and milestones, net	$ 0	$ 381
Total revenues	0	381
Operating expenses:
General and administrative	297	370
Total operating expenses	297	370
Operating (loss) income	(297)	11
Other income	2	2
(Loss) income before income tax benefit (expense)	(295)	13
Income tax benefit (expense)	4	(2)
Net (loss) income	(291)	11
Dividends on Series C preferred stock	(531)	(506)
Net loss available to common shareholders	$ (822)	$ (495)
Loss per common share
Basic loss per share	$ (0.01)	$ (0.01)
Diluted loss per share	$ (0.01)	$ (0.01)
Weighted average number of common shares - basic	74,215	74,215
Weighted average number of common shares - diluted	74,215	74,215

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Series C Preferred StockPreferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2020	$ 40,460	$ 742	$ 78,006	$ (71,388)	$ 7,360
Balance (in shares) at Dec. 31, 2020	40	74,215
Net income (loss)	$ 0	$ 0	0	11	11
Preferred stock dividend accumulation	506		(506)		(506)
Balance at Mar. 31, 2021	$ 40,966	$ 742	77,500	(71,377)	6,865
Balance (in shares) at Mar. 31, 2021	40	74,215
Balance at Dec. 31, 2021	$ 42,483	$ 742	75,983	(71,857)	4,868
Balance (in shares) at Dec. 31, 2021	40	74,215
Net income (loss)	$ 0	$ 0	0	(291)	(291)
Preferred stock dividend accumulation	531		(531)		(531)
Balance at Mar. 31, 2022	$ 43,014	$ 742	$ 75,452	$ (72,148)	$ 4,046
Balance (in shares) at Mar. 31, 2022	40	74,215

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2020
Cash flows from operating activities:
Net (loss) income	$ (291)	$ 11
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Changes in operating assets and liabilities	79	34
Net cash (used in) provided by operating activities	(212)	45
Net (decrease) increase in cash	(212)	45
Cash beginning of period	47,641	48,142
Cash end of period	$ 47,429	$ 48,187

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2022
Description of Business
Description of Business	(1) Enzon Pharmaceuticals, Inc. (together with its subsidiaries, the “Company,” “Enzon,” “we” or “us”) is positioned as a public company acquisition vehicle, where it can become an acquisition platform and more fully utilize its net operating loss carryforwards (“NOLs”) and enhance stockholder value. In September 2020, the Company initiated a rights offering for its common and preferred stock (see below and Note 12 to our Condensed Consolidated Financial Statements), which closed in October 2020, and it realized $43.6 million in gross proceeds. This has enabled the Company to embark on its plan to realize the value of its more than $100 million NOLs by acquiring potentially profitable businesses or assets. To protect the NOLs, in August 2020, the Company’s Board of Directors adopted a Section 382 rights plan (see Note 11 to our Condensed Consolidated Financial Statements). The Company's Board of Directors (the "Board") and its management are actively involved in pursuing, sourcing, reviewing and evaluating various potential acquisition transactions consistent with its long-term strategy. The Company's management and Board have made a number of contacts and engaged in discussions with principals of individual companies and financial advisors on behalf of various individual companies, while continuing to evaluate potential transactions. To date, no actionable transactions have been initiated. Historically, the Company had received royalty revenues from licensing arrangements with other companies primarily related to sales of certain drug products that utilized Enzon’s proprietary technology. In recent years, the Company has had no clinical operations and limited corporate operations. Enzon has a marketing agreement relating to the drug Vicineum, which, if approved, will, potentially, generate milestone and royalty payments to it in the future. Enzon cannot assure you that it will earn material future royalties or milestones. The Company has a marketing agreement with Micromet AG, now part of Amgen, Inc. (the “Micromet Agreement”), pursuant to which the Company may be entitled to a share of certain milestone and royalty payments if Vicineum, a drug being developed by Sesen Bio, Inc. (“Sesen”), is approved for the treatment of non-muscle invasive bladder cancer. In a press release dated February 16, 2021, Sesen announced that the U.S. Food and Drug Administration (the “FDA”) has accepted for filing Sesen’s Biologic License Application (“BLA”) for Vicineum. The FDA further granted Priority Review, with a target Prescription Drug User Fee Act (“PDUFA”) date for a decision on the BLA of August 18, 2021. Accordingly, the Company earned a milestone of $409,430 in the first quarter of 2021. The amount of $344,638 was received during that quarter and the balance of $64,792 was recorded as a receivable as of March 31, 2021. However, on August 13, 2021, Sesen announced that it had received a Complete Response Letter (“CRL”) from the FDA and that the FDA had determined that it cannot approve the BLA for Vicineum in its present form and had provided recommendations specific to additional clinical/statistical data and analyses in addition to Chemistry, Manufacturing and Controls (“CMA”) issues pertaining to a recent preapproval inspection and product quality. In a press release that Sesen issued on December 9, 2021, it noted that on December 8, 2021 it had a Clinical Type A meeting with the FDA and received greater clarity regarding the requirements for resubmission of the BLA and trial design, which may include a randomized clinical trial assessing the safety and efficacy of Vicineum compared to investigators’ choice of intravesical chemotherapy. In a filing with the U. S. Securities and Exchange Commission (“SEC”), Sesen noted that on March 28, 2022, Sesen participated in a Type C Meeting with the FDA. During the meeting, the FDA agreed to a majority of the Sesen’s proposed protocol and statistical analysis plan design elements for an additional Phase 3 clinical trial that Sesen’s plans to conduct for potential resubmission of a BLA for Vicineum. Sesen noted that it plans to further engage the FDA in the coming months to align on the remaining outstanding items related to the additional Phase 3 clinical trial. In a filing with the SEC in March 2021, Sesen noted that it had received notice from the European Medicines Agency (“EMA”) that its Marketing Authorization Application (“MMA”) for Vicineum was found to be valid and the review procedure had officially started. Accordingly, the Company earned and received an additional milestone of $292,284 in the second quarter of 2021. Subsequently, on August 25, 2021, Sesen announced that it had withdrawn its application to market Vicineum in Europe. Due to the challenges associated with developing and obtaining approval for drug products, and the lack of involvement by the Company in the development and approval process, there is substantial uncertainty as to whether the Company will receive additional milestone or any royalty payments under the Micromet Agreement. The Company will not recognize revenue until all revenue recognition requirements are met. (1) Description of Business (continued) In September 2020, the Board approved a Rights Offering (the "Rights Offering"), by which the Company distributed, at no charge to all holders of its common stock on September 23, 2020 (the "Record Date"), transferable subscription rights to purchase units ("Units") at a subscription price per Unit of $1,090. In the Rights Offering, each stockholder on the Record Date received one subscription right for every share of common stock owned on the Record Date. For every 1,105 subscription rights held, a stockholder was entitled to purchase one Unit at the subscription price. Each Unit consisted of one share of newly designated Series C Preferred Stock, par value $0.01 per share, and 750 shares of the Company's common stock. The subscription period for the Rights Offering ended on October 9, 2020. As a result of the sale of all 40,000 Units available for purchase in the Rights Offering, the Company received approximately $43.6 million of gross proceeds and had 40,000 shares of Series C Preferred Stock outstanding and an aggregate of 74,214,603 shares of common stock outstanding following the Rights Offering. (See Note 13 to the Consolidated Financial Statements.) On an annual basis, the Board may, at its sole discretion, cause a dividend with respect to the Series C Preferred Stock to be paid in cash to the holders in an amount equal to 3% of the liquidation preference as in effect at such time (initially $1,000 per share). If the dividend is not so paid in cash, the liquidation preference is adjusted and increased annually by an amount equal to 5% of the liquidation preference per share as in effect at such time, that is not paid in cash to the holders on such date. The Board did not declare a dividend as of December 31, 2021 or 2020 and, at March 31, 2022 and December 31, 2021, the liquidation value of the Series C Preferred Stock was $1,075 and $1,062 per share, respectively. (See Note 14 to the Condensed Consolidated Financial Statements.) The Company maintains its principal executive offices at 20 Commerce Drive, Suite 135, Cranford, New Jersey 07016 through a service agreement with Regus Management Group, LLC.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Basis of Presentation
Basis of Presentation	(2) 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 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, 2021. 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 accounting principles generally accepted in the United States of America 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. (2) Revenue Recognition 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. Contingent payments due under the asset purchase agreement for the sale of the Company’s former specialty pharmaceutical business are recognized as revenue 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. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized. The effect of a change in tax rates or laws on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date of the rate change. A valuation allowance is established to reduce the deferred tax assets to the amounts that are more likely than not to be realized from operations. 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2022
Recent Accounting Pronouncements
Recent Accounting Pronouncements	(3) Recent Accounting Pronouncements Recent Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB") and guidance issued by the SEC did not, or are not believed by management to, have a material effect on the Company’s present or future Condensed Consolidated Financial Statements.

Financial Instruments and Fair

Financial Instruments and Fair Value	3 Months Ended
	Mar. 31, 2022
Financial Instruments and Fair Value
Financial Instruments and Fair Value	(4) The carrying values of cash and cash equivalents, royalty receivable, other current assets, accounts payable, accrued expenses and other current liabilities in the Company’s consolidated balance sheets approximated their fair values at March 31, 2022 and December 31, 2021 due to their short-term nature. As of each of March 31, 2022 and December 31, 2021, the Company held cash equivalents aggregating approximately $43.6 million.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2022
Supplemental Cash Flow Information
Supplemental Cash Flow Information	(5) The Company made no income tax payments during each of the three -month periods ended March 31, 2022 and 2021. There were no interest payments made during either of the three -month periods ended March 31, 2022 or 2021.

Income (Loss) Per Common Share

Income (Loss) Per Common Share	3 Months Ended
	Mar. 31, 2022
Income (Loss) Per Common Share
Income (Loss) Per Common Share	(6) Basic income (loss) per common share is computed by dividing the net income (loss), less any dividends, accretion or reduction or redemption on our Series C Preferred Stock, 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. For purposes of calculating diluted earnings per common share, the denominator normally 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. Because a loss was incurred in each of the quarters ended March 31, 2022 and 2021, common stock equivalents would be anti-dilutive and, accordingly, were excluded from the calculation of diluted loss per share in each of the periods. 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. During each of the three-month periods ended March 31, 2022 and 2021, there were no common stock equivalents. Loss per common share information is as follows (in thousands, except per share amounts) for the three months ended March 31, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ 2022 2021 Income (Loss) Per Common Share – Basic and Diluted: ​ ​ ​ ​ ​ ​ Net (loss) income ​ $ (291) ​ $ 11 Dividends on Series C preferred stock ​ ​ (531) ​ ​ (506) Net loss available to common shareholders ​ $ (822) ​ $ (495) ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding ​ 74,215 ​ 74,215 ​ ​ ​ ​ ​ ​ ​ Basic and diluted loss per share ​ $ (0.01) ​ $ (0.01) ​ At March 31, 2021 options to purchase 25,000 shares of common stock were outstanding that have been excluded from the calculation of diluted weighted-average number of shares outstanding, as they would be anti-dilutive, since the respective options’ strike price was greater than the market price of the respective shares. There were no outstanding options at March 31, 2022.

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2022
Stock Based Compensation
Stock Based Compensation	(7) Stock Options and Restricted Stock Units (RSUs or Nonvested Shares) During each of the quarters ended March 31, 2022 and 2021, no options or RSUs were granted and the Company incurred no stock-based compensation expense. Activity related to stock options and nonvested shares during the three months ended March 31, 2022 and related balances outstanding as of that date are reflected below : ​ ​ ​ ​ ​ ​ Stock Options Outstanding at January 1, 2022 25,000 Granted — Exercised and vested — Expired and forfeited (25,000) Outstanding at March 31, 2022 — ​ ​ ​ Options vested and expected to vest at March 31, 2022 — ​ ​ ​ Options exercisable at March 31, 2022 — ​

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Taxes
Income Taxes	(8) During the three-month periods ended March 31, 2022 and 2021, the Company recorded approximately ($4,500) ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. For the period ended December 31, 2021, the Company believed that it was more likely than not that future taxable income would not exist to utilize some or all of its deferred tax assets. However, although there can be no certainty of such, if the Company’s acquisition strategy is successful and future taxable income is projected, among other things, the valuation allowance will be reevaluated. Accordingly, it recorded a valuation allowance in the amount of its total deferred tax assets for the period ended December 31, 2021. In 2022, the Company projects a taxable loss before utilization of NOLs. Due to the valuation allowance placed on its deferred tax assets, the deferred tax expense resulting from the usage and/or expiration of deferred tax assets was offset by a corresponding deferred tax benefit from a reduction in valuation allowance, and the Company recorded no deferred tax expense as of March 31, 2022. The Company intends to acquire profitable businesses, entities or revenue streams that will generate sufficient income so that it can utilize its approximately $104 million NOLs. To date, no actionable acquisition candidates have been identified and, while the Company expects that, ultimately, it will be successful in realizing the value of its NOLs, the Company cannot provide assurance that it will be able to do so. Management of the Company will continue to assess the need for this valuation allowance and will make adjustments when or if appropriate. At March 31, 2022, the Company had federal NOLs of approximately $104 million, of which approximately $100.6 million will expire in the years 2025 through 2036, and New Jersey state NOLs of approximately $26.5 million that expire in the years 2031 through 2041. Under the Tax Cuts and Jobs Act, net operating losses generated in tax years beginning after December 31, 2017 have an unlimited carryforward period, and the amount of net operating loss allowed to be utilized each year is limited to 80% of taxable income. At March 31, 2022, the Company has federal research and development ("R&D") credit carryforwards of approximately $12.8 million that expire in the years 2023 through 2029. These deferred tax assets were subject to a valuation allowance such that the deferred tax expense incurred as a result of the expiration of the R&D credit carryforwards was offset by a corresponding deferred tax benefit for the related reduction in valuation allowance. The Company's ability to use the NOLs and R&D tax credit carryforwards may be limited, as they are subject to certain limitations due to ownership changes as defined by rules pursuant to Section 382 of the Internal Revenue Code of 1986, as amended. However, management of the Company believes that the Company's NOLs will not be limited by any changes in the Company's ownership as a result of the successful completion of the Rights Offering. (See Note 13 to the Consolidated Financial Statements.) Additionally, in an effort to protect stockholder value by attempting to protect against a possible limitation on the Company's ability to use its NOLs, the Board adopted a Section 382 rights plan. (See Note 11 to the Consolidated Financial Statements.) The Company has not recorded a liability for unrecognized income tax benefits.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	3 Months Ended
	Mar. 31, 2022
Commitments and Contingent Liabilities
Commitments and Contingent Liabilities	(9) In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) was reported in Wuhan, China. Despite recent progress in the administration of vaccines, both the outbreak of recent variants, including Delta and Omicron, and the related containment measures that have been put in place across the globe, have had and are likely to continue to have a serious adverse impact on the global economy and may adversely affect the Company's business operations. The ongoing global health crisis (including resurgences) resulting from the pandemic have disrupted, and continue to disrupt, the normal operations of many businesses, including restrictions such as the temporary closure or scale-back of business operations and/or the imposition of either quarantine or remote work requirements for employees, either by government order or on a voluntary basis. It is impossible to predict the effect and ultimate impact of the COVID-19 pandemic, as the situation is continually evolving. The COVID-19 pandemic may continue to disrupt the global supply chain and may cause disruptions to the Company's operations, financial condition and prospects. At the present time, the Company’s business activities have been largely unaffected by COVID-19 restrictions as the Company’s workforce is comprised solely of independent contractors who are able to perform their duties remotely. However, these restrictions may impact the third parties who are responsible for obtaining final approval of and manufacturing product candidates for which the Company shares the right to receive licensing fees, milestone payments and royalty revenues. If those third parties are required to curtail their business activities for a significant time, or if global supply chain disruptions impact their ability to procure needed resources, raw materials or components, the Company’s right to receive licensing fees, milestone payments or royalties could be materially and adversely affected. Additionally, the development timeline for product candidates being developed by third parties that are pending before the FDA or other regulatory approval could be delayed if the agency is required to shift resources to the review and approval of candidates for treatment of COVID-19. In addition, the effects of the COVID-19 pandemic may negatively impact the Company’s search for a target company, as well as the business and/or results of operations of any target business that the Company acquires or in which the Company invests. 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.

Accounts Payable

Accounts Payable	3 Months Ended
	Mar. 31, 2022
Accounts Payable
Accounts Payable	(10) Prior to 2017, the Company’s primary source of royalty revenues was derived from sales of PegIntron, which is marketed by Merck & Co., Inc. (“Merck”). At December 31, 2021, we recorded a liability to Merck of approximately $331,000, based primarily on Merck’s assertions regarding recoupments related to prior returns and rebates. Merck has not yet reported royalty revenues earned by us for product sales and/or recoupments for returns and rebates for the quarter ended March 31, 2022. Accordingly, at March 31, 2022, the Company recorded a net payable to Merck of approximately $331,000 due to such royalty overpayment claims by Merck. The Company believes that it will receive no additional royalties from Merck.

Section 382 Rights Plan

Section 382 Rights Plan	3 Months Ended
	Mar. 31, 2022
Section 382 Rights Plan.
Section 382 Rights Plan	(11) On August 14, 2020, in an effort to protect stockholder value by attempting to protect against a possible limitation on the Company’s ability to use its NOLs, the Company’s Board of Directors adopted a Section 382 rights plan and declared a dividend distribution of one right for each outstanding share of the Company’s common stock to stockholders of record at the close of business on August 24, 2020. Accordingly, holders of the Company’s common stock own one preferred stock purchase right for each share of common stock owned by such holder. The rights are not immediately exercisable and will become exercisable only upon the occurrence of certain events as set forth in the Section 382 rights plan. If the rights become exercisable, each right would initially represent the right to purchase from the Company one one-thousandth of a share of the Company’s Series A-1 Junior Participating Preferred Stock, par value $0.01 per share, for a purchase price of $1.20 per right. If issued, each fractional share of Series A-1 Junior Participating Preferred Stock would give the stockholder approximately the same dividend, voting and liquidation rights as does one share of the Company’s common stock. However, prior to exercise, a right does not give its holder any rights as a stockholder of the Company, including any dividend, voting or liquidation rights. The rights will expire on the earliest of (i) the close of business on June 2, 2024 (unless that date is advanced or extended by the Board), (ii) the time at which the rights are redeemed or exchanged under the Section 382 rights plan, (iii) the close of business on the day of repeal of Section 382 of the Internal Revenue Code or any successor statute or (iv) the close of business on the first day of a taxable year of the Company to which the Company’s Board of Directors determines that no NOLs may be carried forward. The Company received stockholder ratification of the Section 382 rights plan at the Company’s 2021 annual meeting on June 2, 2021.

Rights Offering

Rights Offering	3 Months Ended
	Mar. 31, 2022
Rights Offering.
Rights Offering	(12) In September 2020, the Company’s Board of Directors approved the Rights Offering , by which the Company distributed, at no charge to all holders of its common stock on the Record Date, transferable subscription rights to purchase Units at a subscription price per Unit of $1,090. In the Rights Offering, each stockholder on the Record Date received one subscription right for every share of common stock owned on the Record Date. For every 1,105 subscription rights held, a stockholder was entitled to purchase one Unit at the subscription price. Each Unit consisted of one share of newly designated Series C Preferred Stock, par value $0.01 per share, and 750 shares of the Company’s common stock. The subscription period for the Rights Offering ended on October 9, 2020. As a result of the sale of all 40,000 Units available for purchase in the Rights Offering, the Company received approximately $43.6 million of gross proceeds and had 40,000 shares of Series C Preferred Stock outstanding and an aggregate of 74,214,603 shares of common stock outstanding following the Rights Offering. Pursuant to the Rights Offering, Icahn Capital LP, together with its affiliates, subscribed for 5,971 Units (its pro-rata share of the Rights Offering) representing the purchase of 4,478,250 shares of the Company’s common stock and 5,971 shares of Series C Preferred Stock. Icahn Capital LP also purchased all Units that remained unsubscribed for at the expiration of the Rights Offering to the extent that other holders elected not to exercise all of their respective subscription rights, which totaled 33,306 Units representing the purchase of 24,979,500 shares of common stock and 33,306 shares of Series C Preferred Stock. Following the completion of the Rights Offering, Icahn Capital LP, together with its affiliates, owned approximately 48% of the Company’s outstanding common stock and approximately 98% of the Company’s outstanding Series C Preferred Stock.

Series C Preferred Stock

Series C Preferred Stock	3 Months Ended
	Mar. 31, 2022
Series C Preferred Stock.
Series C Preferred Stock	(13) Series C Preferred Stock In October 2020, the Company issued 40,000 shares of Series C Preferred Stock for an aggregate purchase price of $40.0 million. On December 31 st As of March 31, 2021, pursuant to the terms of the Series C Preferred Stock, the Company’s Board of Directors had not declared a cash dividend on the Series C Preferred Stock as dividends on such stock are only declared and paid once a year on or about December 31 st The Company may not repurchase or redeem the Series C Preferred Stock prior to November 1, 2022. Since the redemption of the Series C Preferred Stock is contingently or optionally redeemable, the Series C Preferred Stock has been classified in mezzanine equity on the Consolidated Balance Sheets.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events
Subsequent Events	(14) Subsequent Event On April 25, 2022, the Company entered into an Indemnification Agreement with each of Richard L. Feinstein, its Chief Executive/Chief Financial Officer and Randolph Read, a director, (collectively, the "Indemnitees"). The Indemnification Agreements clarify and supplement indemnification provisions already contained in the Company's Bylaws and generally provide that the Company shall indemnify the Indemnitees to the fullest extent permitted by applicable law, subject to certain limitations and exceptions, against expenses, judgments, fines and other amounts actually and reasonably incurred in connection with their service as a director or officer and also provide for rights to advancement of expenses and contribution.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2022
Basis of Presentation
Interim Financial Statements	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 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, 2021.
Principles of Consolidation	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	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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	Revenue Recognition 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. Contingent payments due under the asset purchase agreement for the sale of the Company’s former specialty pharmaceutical business are recognized as revenue 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.
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized. The effect of a change in tax rates or laws on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date of the rate change. A valuation allowance is established to reduce the deferred tax assets to the amounts that are more likely than not to be realized from operations. 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.

Income (Loss) Per Common Share

Income (Loss) Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2022
Income (Loss) Per Common Share
Schedule of Income (Loss) per common share information, basic and diluted	Loss per common share information is as follows (in thousands, except per share amounts) for the three months ended March 31, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ 2022 2021 Income (Loss) Per Common Share – Basic and Diluted: ​ ​ ​ ​ ​ ​ Net (loss) income ​ $ (291) ​ $ 11 Dividends on Series C preferred stock ​ ​ (531) ​ ​ (506) Net loss available to common shareholders ​ $ (822) ​ $ (495) ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding ​ 74,215 ​ 74,215 ​ ​ ​ ​ ​ ​ ​ Basic and diluted loss per share ​ $ (0.01) ​ $ (0.01) ​

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Stock Based Compensation
Schedule of share-based compensation stock options activity	Activity related to stock options and nonvested shares during the three months ended March 31, 2022 and related balances outstanding as of that date are reflected below : ​ ​ ​ ​ ​ ​ Stock Options Outstanding at January 1, 2022 25,000 Granted — Exercised and vested — Expired and forfeited (25,000) Outstanding at March 31, 2022 — ​ ​ ​ Options vested and expected to vest at March 31, 2022 — ​ ​ ​ Options exercisable at March 31, 2022 —

Description of Business (Detail

Description of Business (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)item$ / sharesshares	Mar. 31, 2021USD ($)	Dec. 31, 2021$ / sharesshares	Dec. 31, 2020$ / shares	Oct. 31, 2020USD ($)	Sep. 30, 2020$ / sharesshares
Description of Business [Line Items]
Amount of operating loss carry forward	$ 104,000,000				$ 100,000,000
Milestone Revenue		$ 409,430
Milestones receivable	$ 292,284
Amount received		344,638
Amount receivable		$ 64,792
Preferred stock par value for unit | $ / shares	$ 0.01		$ 0.01
Common stock, shares outstanding | shares	74,214,603		74,214,603
Rights Offering
Description of Business [Line Items]
Rights Offering and realized in gross proceeds	$ 43,600,000
Subscription price per Unit | $ / shares	$ 1,090
Number of rights per share of stock | shares	1					1
Number of subscription rights to be held | item	1,105
Number of units available for purchase | item	40,000
Gross Proceeds	$ 43,600,000
Rights Offering | Common Stock
Description of Business [Line Items]
Number of Shares Per Unit | item	750
Series C Preferred Stock
Description of Business [Line Items]
Common stock, shares outstanding | shares	74,214,603
Percentage of Dividend on Liquidation Preference	3.00%
Percentage of Annual increase in liquidation preference	5.00%
Liquidation preference per share of preferred stock | $ / shares	$ 13		$ 1,062	$ 1,075
Initial dividend per share | $ / shares	1,000
Series C Preferred Stock | Rights Offering
Description of Business [Line Items]
Preferred stock par value for unit | $ / shares	$ 0.01					$ 0.01
Common stock, shares outstanding | shares	40,000
Percentage of Dividend on Liquidation Preference			3.00%
Liquidation preference per share of preferred stock | $ / shares	$ 1,075		$ 1,000

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Basis of Presentation
Provision for uncollectible accounts	$ 0
Liability for uncertain tax positions	$ 0

Financial Instruments and Fai_2

Financial Instruments and Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financial Instruments and Fair Value
Cash Equivalents, at Carrying Value	$ 43.6	$ 43.6

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplemental Cash Flow Information
Income Taxes Paid	$ 0	$ 0
Interest Paid, Net	$ 0	$ 0

Income (Loss) Per Common Shar_2

Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Income (Loss) Per Common Share - Basic and Diluted:
Net (loss) income	$ (291)	$ 11
Dividends on Series C preferred stock	(531)	(506)
Net loss available to common shareholders	$ (822)	$ (495)
Weighted-average number of common shares outstanding - Basic	74,215	74,215
Weighted-average number of common shares outstanding - Diluted	74,215	74,215
Basic loss per share	$ (0.01)	$ (0.01)
Diluted loss per share	$ (0.01)	$ (0.01)
Antidilutive securities	25,000
Option outstanding	0		25,000

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock Based Compensation
Nonvested shares granted	0	0
Stock-based compensation expense	$ 0	$ 0
Outstanding at January 1, 2022	25,000
Granted	0
Exercised and vested	0
Expired and forfeited	(25,000)
Outstanding at March 31, 2022	0
Options vested and expected to vest at March 31, 2022	0
Options exercisable at March 31, 2022	0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Oct. 31, 2020
Income Taxes [Line Items]
Income Tax Expense (Benefit)	$ (4)	$ 2
Operating Loss Carryforwards	104,000		$ 100,000
Net Operating Loss Carry-Forwards Limitation On Annual Utilization	$ 104,000
Tax Credit Carryforward, Limitations on Use	net operating losses generated in tax years beginning after December 31, 2017 have an unlimited carryforward period, and the amount of net operating loss allowed to be utilized each year is limited to 80% of taxable income.
Federal research and development credit carry forwards	$ 12,800
New jersey State [Member]
Income Taxes [Line Items]
Income Tax Expense (Benefit)	(4,500)	$ 2,000
NJ State [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards	26,500
Domestic Tax Authority [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards	$ 100,600

Accounts Payable (Details)

Accounts Payable (Details) - Merck [Member]	Mar. 31, 2022USD ($)
Accounts Payable [Line Items]
Accrued royalties	$ 331,000
Due to related parties, total	$ 331,000

Section 382 Rights Plan (Detail

Section 382 Rights Plan (Details)	Aug. 14, 2020Vote$ / sharesshares	Mar. 31, 2022$ / shares	Dec. 31, 2021$ / shares
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01
Section 382 Rights Plan
Rights per share distributed as dividend | shares	1
Number of preferred stock purchase right for each common stockholder | shares	1
Section 382 Rights Plan | Series A-1 Junior Participating Preferred Stock
Number of preferred stock eligible for each warrant become exercisable | shares	1
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.01
Purchase price per right | $ / shares	$ 1.20
Number of votes for fractional share | Vote	1

Rights Offering (Details)

Rights Offering (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 09, 2020	Sep. 30, 2020	Mar. 31, 2022	Dec. 31, 2021
Class of Warrant or Right [Line Items]
Preferred stock, par value (in dollars per share)			$ 0.01	$ 0.01
Number of preferred shares outstanding			0	0
Common stock, shares outstanding			74,214,603	74,214,603
Series C Preferred Stock
Class of Warrant or Right [Line Items]
Common stock, shares outstanding			74,214,603
Rights Offering
Class of Warrant or Right [Line Items]
Subscription price per unit of a right		$ 1,090
Number of preferred stock eligible for each warrant become exercisable		1	1
Number of subscription rights to be held for purchase of a unit		1,105
Number of units entitled for 1,105 subscription rights held		1
Rights Offering | Series C Preferred Stock
Class of Warrant or Right [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.01	$ 0.01
Number of common shares for unit		750
Common stock, shares outstanding			40,000
Rights Offering | Icahn Capital LP
Class of Warrant or Right [Line Items]
Subscription price per unit of a right			$ 5,971
Rights Offering | Icahn Capital LP | Series C Preferred Stock
Class of Warrant or Right [Line Items]
Number of common shares for unit			33,306
Number of units sold that remains unsubscribed			24,979,500
Number of units sold			33,306
Number of preferred shares outstanding			4,478,250
Common stock, shares outstanding			5,971
Affiliates own			48.00%
Maximum percentage of common outstanding			98.00%
Rights Offering | Investment Agreement | Icahn Capital LP | Series C Preferred Stock
Class of Warrant or Right [Line Items]
Number of units sold	40,000
Number of preferred shares outstanding	40,000
Common stock, shares outstanding	74,214,603
Issued and gross proceeds	$ 43.6

Series C Preferred Stock - Addi

Series C Preferred Stock - Additional Information (Details) - Series C Preferred Stock - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 31, 2020	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock Issued During Period, Shares, New Issues	40,000
Stock Issued During Period, Value, New Issues	$ 40,000,000
Preferred Stock, Liquidation Preference Percent		5.00%	5.00%
Preferred Stock, Liquidation Preference, Value		$ 531,000
Preferred Stock Cumulative Liquidation Value		$ 43,014,000	$ 42,483,000
Percentage of Dividend on Liquidation Preference		3.00%
Preferred Stock, Liquidation Preference Per Share		$ 13	$ 1,062	$ 1,075
Rights Offering
Preferred Stock, Liquidation Preference, Value			$ 2,023,000	$ 2,023,000
Percentage of Dividend on Liquidation Preference			3.00%
Preferred Stock, Liquidation Preference Per Share		1,075	$ 1,000
Annual increase in percentage of the liquidation preference per share, if dividend not paid in cash			5.00%
Preferred stock initial liquidation value		$ 1,000
Preferred stock dividends on liquidation value		$ 0