Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Entity Registrant Name | ACURA PHARMACEUTICALS, INC | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-10113 | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-0853640 | |
Entity Address, Address Line One | 616 N. North Court, SuiteĀ 120, | |
Entity Address, City or Town | Palatine | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60067 | |
City Area Code | 847 | |
Local Phone Number | 705-7709 | |
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 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | ACUR | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 65,089,043 | |
Entity Central Index Key | 0000786947 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash | $ 167 | $ 413 |
Royalty receivable | 0 | 30 |
Collaboration revenue receivable from related party | 114 | 197 |
License fee revenue receivable from related party | 1,000 | 400 |
Prepaid expenses and other current assets | 28 | 139 |
Total current assets | 1,309 | 1,179 |
Finance lease right of use | 66 | 0 |
Property, plant and equipment, net (Note 5) | 461 | 484 |
Intangible asset, net (Note 2) | 60 | 73 |
Total assets | 1,896 | 1,736 |
Liabilities: | ||
Accounts payable | 205 | 31 |
Accrued expenses (Note 6) | 673 | 631 |
Finance lease liability - current | 33 | 0 |
Loans under CARES Act | 164 | 164 |
Other current liabilities (Note 10) | 35 | 18 |
Accrued interest to related party (Note 7) | 0 | 678 |
Convertible debt to related party, net of discounts (Note 7) | 0 | 6,000 |
Total current liabilities | 1,110 | 7,522 |
Finance lease liability - noncurrent | 33 | 0 |
Loans under CARES Act - noncurrent | 371 | 105 |
Total liabilities | 1,514 | 7,627 |
Commitments and contingencies | ||
Stockholders' equity (deficit): | ||
Common stock - $0.01 par value per share; 100,000 shares authorized, 65,089 and 21,650 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 651 | 216 |
Additional paid-in capital | 389,581 | 383,097 |
Accumulated deficit | (389,850) | (389,204) |
Total stockholders' equity (deficit) | 382 | (5,891) |
Total liabilities and stockholders' equity (deficit) | $ 1,896 | $ 1,736 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 65,089 | 21,650 |
Common stock, shares outstanding | 65,089 | 21,650 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Royalties | $ 3 | $ 34 | $ 35 | $ 67 |
Collaboration - related party | 10 | 44 | 22 | 52 |
License fees - related party | 600 | 1,050 | 1,200 | 2,100 |
Product sales, net of allowance (Note 3) | 0 | 223 | 0 | 223 |
Total revenues | 613 | 1,351 | 1,257 | 2,442 |
Expenses: | ||||
Research and development | 390 | 445 | 795 | 832 |
General and administrative | 523 | 485 | 908 | 1,672 |
Total expenses | 913 | 930 | 1,703 | 2,504 |
Operating income (loss) | (300) | 421 | (446) | (62) |
Interest expense - related party (Note 9) | (87) | (113) | (200) | (225) |
Income (loss) before provision for income taxes | (387) | 308 | (646) | (287) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | $ (387) | $ 308 | $ (646) | $ (287) |
Net income (loss) per share: | ||||
Basic | $ (0.01) | $ 0.01 | $ (0.02) | $ (0.01) |
Diluted | $ (0.01) | $ 0.01 | $ (0.02) | $ (0.01) |
Weighted average number of shares outstanding: | ||||
Basic | 42,889 | 32,304 | 37,707 | 32,287 |
Diluted | 42,889 | 32,482 | 37,707 | 32,287 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN ACCUMULATED STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 213 | $ 383,042 | $ (387,996) | $ (4,741) |
Balance (in shares) at Dec. 31, 2019 | 21,300 | |||
Net (loss) income | (595) | (595) | ||
Non-cash share-based compensation | 9 | 9 | ||
Net distribution of common stock pursuant to restricted stock unit award plan | $ 3 | 19 | 22 | |
Net distribution of common stock pursuant to restricted stock unit award plan (in shares) | 350 | |||
Balance at Mar. 31, 2020 | $ 216 | 383,070 | (388,591) | (5,305) |
Balance (in shares) at Mar. 31, 2020 | 21,650 | |||
Balance at Dec. 31, 2019 | $ 213 | 383,042 | (387,996) | (4,741) |
Balance (in shares) at Dec. 31, 2019 | 21,300 | |||
Net (loss) income | (287) | |||
Balance at Jun. 30, 2020 | $ 216 | 383,079 | (388,283) | (4,988) |
Balance (in shares) at Jun. 30, 2020 | 21,650 | |||
Balance at Mar. 31, 2020 | $ 216 | 383,070 | (388,591) | (5,305) |
Balance (in shares) at Mar. 31, 2020 | 21,650 | |||
Net (loss) income | 308 | 308 | ||
Non-cash share-based compensation | 9 | 9 | ||
Balance at Jun. 30, 2020 | $ 216 | 383,079 | (388,283) | (4,988) |
Balance (in shares) at Jun. 30, 2020 | 21,650 | |||
Balance at Dec. 31, 2020 | $ 216 | 383,097 | (389,204) | (5,891) |
Balance (in shares) at Dec. 31, 2020 | 21,650 | |||
Net (loss) income | (259) | (259) | ||
Net distribution of common stock pursuant to restricted stock unit award plan | $ 4 | 9 | 13 | |
Net distribution of common stock pursuant to restricted stock unit award plan (in shares) | 405 | |||
Exercise of stock options | $ 1 | (1) | ||
Exercise of stock options (in shares) | 50 | |||
Balance at Mar. 31, 2021 | $ 221 | 383,105 | (389,463) | (6,137) |
Balance (in shares) at Mar. 31, 2021 | 22,105 | |||
Balance at Dec. 31, 2020 | $ 216 | 383,097 | (389,204) | (5,891) |
Balance (in shares) at Dec. 31, 2020 | 21,650 | |||
Net (loss) income | (646) | |||
Balance at Jun. 30, 2021 | $ 651 | 389,581 | (389,850) | 382 |
Balance (in shares) at Jun. 30, 2021 | 65,089 | |||
Balance at Mar. 31, 2021 | $ 221 | 383,105 | (389,463) | (6,137) |
Balance (in shares) at Mar. 31, 2021 | 22,105 | |||
Net (loss) income | (387) | (387) | ||
Non-cash share-based compensation | 29 | 29 | ||
Conversion of debt principal | $ 375 | 5,625 | 6,000 | |
Conversion of debt principal(In shares) | 37,500 | |||
Conversion of debt interest | $ 55 | 822 | 877 | |
Conversion of debt interest(in shares) | 5,484 | |||
Balance at Jun. 30, 2021 | $ 651 | $ 389,581 | $ (389,850) | $ 382 |
Balance (in shares) at Jun. 30, 2021 | 65,089 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (646) | $ (287) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation | 23 | 29 |
Non-cash stock-based compensation | 29 | 18 |
Amortization of intangible asset | 13 | 57 |
Impairment charge on intangible asset | 0 | 668 |
Changes in assets and liabilities: | ||
Royalty receivable | 30 | 52 |
Collaboration revenue receivable from related party | 83 | 29 |
License fee receivable from related party | (600) | (700) |
Prepaid expenses and other current assets | 111 | 67 |
Accounts payable | 174 | (96) |
Accrued expenses | 42 | 60 |
Sales returns liability | 0 | (223) |
Accrued interest on related party loans | 199 | 225 |
Other current liabilities | 35 | 7 |
Net cash used in operating activities | (507) | (94) |
Cash Flows from Financing Activities: | ||
Proceeds from distribution of restricted stock units | 3 | 3 |
Statutory minimum payroll withholding taxes paid on the distribution of shares pursuant to RSU award plan | (8) | (2) |
Proceeds from loan under CARES Act | 266 | 269 |
Net cash provided by financing activities | 261 | 270 |
Net (decrease) increase in cash | (246) | 176 |
Cash at beginning of period | 413 | 862 |
Cash at end of end of period | 167 | 1,038 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | $ 0 | $ 0 |
OPERATIONS AND SUMMARY OF SIGNI
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 ā OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principal Operations Acura Pharmaceuticals, Inc., a New York corporation, and its subsidiary (the āCompanyā, āAcuraā, āWeā, āUsā or āOurā) We are an innovative drug delivery company engaged in the research, development and commercialization of technologies and products intended to address safe use of medications. We have discovered and developed three proprietary platform technologies which can be used to develop multiple products. Our Limitxā¢ Technology is being developed to minimize the risk of overdose, our AversionĀ® Technology is intended to address methods of abuse associated with opioid analgesics while our ImpedeĀ® Technology is directed at minimizing the extraction and conversion of pseudoephedrine , or PSE, into methamphetamine. Oxaydo Tablets (oxycodone HCl, CII), which utilizes the Aversion Technology, is the first approved immediate-release oxycodone product in the United States with abuse deterrent labeling. Nexafed brand products utilize our Impede Technology. ā Limitx, a development stage technology, is designed to retard the release of active drug ingredients when too many tablets are accidentally or purposefully ingested by neutralizing stomach acid with buffer ingredients but deliver efficacious amounts of drug when taken as a single tablet with a nominal buffer dose. The exclusive commercialization rights in the United States to LTX-03 as well as to LTX-02 (oxycodone/acetaminophen) and LTX-09 (alprazolam) are licensed to Abuse Deterrent Pharma, LLC (āAD Pharmaā) (See Note 2). ā Our Aversion Technology has been licensed to Assertio Holdings Inc. for use in OxaydoĀ® Tablets (oxycodone HCl, CII), and is the first approved immediate-release oxycodone product in the United States with abuse deterrent labeling. Oxaydo is currently approved by the FDA for marketing in the United States in 5mg and 7.5mg strengths (See Note 2). ā Our Impede Technology is used in NexafedĀ® Tablets (30mg pseudoephedrine HCl) and NexafedĀ® Sinus Pressure + Pain Tablets (30/325mg pseudoephedrine HCl and acetaminophen). We have licensed to MainPointe Pharmaceuticals, LLC (MainPointe), our Impede Technology in the United States and Canada to commercialize these Nexafed products (See Note 2). Basis of Presentation, Liquidity and Substantial Doubt in Going Concern The accompanying consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern and in accordance with generally accepted accounting principles in the United States of America. The going concern basis of presentation assumes that we will continue in operation one year after the date these financial statements are issued and we will be able to realize our assets and discharge our liabilities and commitments in the normal course of business. As of June 30, 2021, we had cash of $167 thousand, working capital of $0.2 million and an accumulated deficit of $390 million. We had a loss from operations of $446 thousand and a net loss of $646 thousand for the six months ended June 30, 2021, and had a loss from operations of $758 thousand and a net loss of $1.2 million for the year ended December 31, 2020. We have suffered recurring losses from operations and have not generated positive cash flows from operations. We anticipate operating losses to continue for the foreseeable future. On June 28, 2019 we announced a License, Development and Commercialization Agreement, as amended in October 2020 and in July 2021 (the āAD Pharma Amended Agreementā), with Abuse Deterrent Pharma, LLC (āAD Pharmaā). The AD Pharma Amended Agreement required AD Pharma to pay us a monthly license payment of $350 thousand for a period from inception up to April 2020 at which time the payment became $200 thousand per month and continued through July 31, 2021, and to reimburse us all our outside development costs for LTX-03. On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021 , March 2021, and April 2021 license fees, respectively. AD Pharma is delinquent in remitting monthly license payments for May, 2021 thru July, 2021 which aggregates to $0.6 million, and approximately $97 thousand of reimbursable LTX-03 development expenses. Failure to make these payments is an event of default under the AD Pharma Amended Agreement. The AD Pharma Amended Agreement, requires the NDA for LTX-03 be accepted by the FDA by February 28, 2022 or AD Pharma has the option to terminate the AD Pharma Amended Agreement and take ownership of the LIMITx intellectual property. The AD Pharma Amended Agreement allows AD Pharma to terminate the AD Pharma Amended Agreement āfor convenienceā.Whether or not AD Pharma exercises their right to terminate the AD Pharma Amended Agreement, we need to raise additional financing or enter into license or collaboration agreements with third parties relating to our technologies. No assurance can be given that we will be successful in obtaining any such financing or in securing license or collaboration agreements with third parties on acceptable terms, if at all, or if secured, that such financing or license or collaboration agreements will provide payments to the Company sufficient to fund continued operations. In the absence of such financing or third-party license or collaboration agreements, the Company will be required to scale back or terminate operations and/or seek protection under applicable bankruptcy laws. An extended delay or cessation of the Companyās continuing product development efforts will have a material adverse effect on the Companyās financial condition and results of operations. In view of the matters described above, management has concluded that substantial doubt exists with respect to the Companyās ability to continue as a going concern within one year after the date the financial statements are issued. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the Companyās accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Companyās ability to meet its financing requirements on a continuous basis, to maintain existing financing and to succeed in its future operations. The Companyās financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. Our future sources of revenue, if any, will be derived from licensing fees, milestone payments and royalties under the AD Pharma Amended Agreement, the Assertio Agreement, the MainPointe Agreement and similar agreements which we may enter into for our LIMITx products in development with other pharmaceutical company partners, for which there can be no assurance. The amount and timing of our future cash requirements will depend on regulatory and market acceptance of our product candidates and the resources we devote to the development and commercialization of our product candidates. COVID-19 On January 30, 2020, the World Health Organization (āWHOā) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the āCOVID-19 outbreakā) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic (ācoronavirus pandemicā), based on the rapid increase in exposure globally. The coronavirus pandemic continues to affect the United States and global economies. If the outbreak continues, it may affect the Companyās operations and those of third parties on which the Company relies, including causing disruptions in the supply of the Companyās product candidates and the conduct of current and planned preclinical and clinical studies and contract manufacturing operations. We may need to limit operations or implement limitations, and may experience limitations in employee resources. The extent to which the coronavirus impacts our results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions by government authorities to contain the outbreak or treat its impact, the emergence of new COVID-19 variants, and the related potential for new surges in infections, and the distribution, public acceptance and efficacy of COVID-19 vaccines including for emerging variants. Additionally, while the potential economic impact brought by, and the duration of, the coronavirus pandemic is difficult to assess or predict, the impact of the coronavirus on the global financial markets may reduce the Companyās ability to access capital, which could negatively impact the Companyās short-term and long-term liquidity and the Companyās ability to complete its preclinical studies on a timely basis, or at all. The ultimate impact of coronavirus is highly uncertain and subject to change. The Company does not yet know the full extent of potential delays or impacts on its business, financing, preclinical and clinical trial activities, contract manufacturing operations or the global economy as a whole. However, these effects could have a material, adverse impact on the Companyās liquidity, capital resources, operations and business and those of the third parties on which we rely. |
LICENSE AND COLLABORATION AGREE
LICENSE AND COLLABORATION AGREEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
LICENSE AND COLLABORATION AGREEMENTS | |
LICENSE AND COLLABORATION AGREEMENTS | NOTE 2 ā LICENSE AND COLLABORATION AGREEMENTS The Companyās revenues are comprised of amounts earned under its license and collaboration agreements and royalties. Revenue recognition occurs when a customer obtains control of promised services in an amount that reflects the consideration the Company expects to receive in exchange for those services based on a short-term credit arrangement. AD Pharma Agreement covering LTX-03 On June 28, 2019 we announced a License, Development and Commercialization Agreement, as amended in October 2020 and in July 2021 (the āAD Pharma Amended Agreementā), with Abuse Deterrent Pharma, LLC (āAD Pharmaā), The AD Pharma Amended Agreement required AD Pharma to pay us a monthly license payment of $350 thousand for a period from inception up to April 2020 at which time the payment became $200 thousand per month and ended on July 31, 2021, and to reimburse us all our outside development costs for LTX-03. On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021 The AD Pharma Amended Agreement, requires the NDA for LTX-03 be accepted by the FDA by February 28, 2022 or AD Pharma has the option to terminate the AD Pharma Amended Agreement and take ownership of the LIMITx intellectual property. Should AD Pharma choose not to exercise this option to terminate and the NDA for LTX-03 is subsequently accepted by the FDA, such option expires. AD Pharma does have the right to terminate the AD Pharma Amended Agreement anytime for āconvenience on 30 days prior written noticeā. AD Pharma retains commercialization rights from which Acura will receive stepped royalties on sales and potential sales related milestones. AD Pharma also has a license to the Limitx patents for LTX-02 (oxycodone/acetaminophen) and LTX-09 (alprazolam) which are not subject to any development agreement or responsibilities by Acura. We had also previously granted authority to MainPointe Pharmaceuticals, LLC (MainPointe) to assign to AD Pharma the option and the right to add, as an Option Product to the NexafedĀ® Agreement, a NexafedĀ® 12-hour dosage (an extended-release pseudoephedrine hydrochloride product utilizing the IMPEDEĀ® Technology in 120mg dosage strength, and the Option Product exercise price of $500 thousand was waived if the exercise of the option occurred by June 28, 2024 (five years from the effective date). Effective with the October 2020 amendment, this option and right was rescinded. On June 28, 2019 Mr. John Schutte assigned and transferred to AD Pharma his $6.0 million convertible debt, the common stock purchase warrant for 10.0 million common shares, and the security agreement granting a security interest in all of the Companyās assets. Mr. Schutte is a shareholder and directly owns approximately 13.7% of our common stock at June 30, 2021. Mr. Schutte controls MainPointe and is the principal investor in AD Pharma. On June 9, 2021 we received notice of conversion from AD Pharma for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest. The principal and interest were converted into 42,984,375 shares of the Companyās common stock. Effective with this conversion, the Promissory Note is retired and the Company is working with AD Pharma to release their security interest in all the Companyās assets. AD Pharma directly owns approximately 66% of our common stock at June 30, 2021. Assertio Agreement covering Oxaydo In April 2014, we terminated an agreement with Pfizer which resulted in the return to us of Aversion Oxycodone (formerly known as OxectaĀ®) and all Aversion product rights in exchange for a one-time termination payment of $2.0 million. Our termination payment of $2.0 million has been recorded in our financial statements as an intangible asset and is being amortized over the remaining useful life of the patent covering Aversion Oxycodone, which was 9.7 years as of the date the Pfizer agreement was terminated. As of June 30, 2021, the remaining useful life is 30 months or 2.50 years. The recoverability of the Aversion intangible asset is contingent upon future Assertio royalty revenues to us under a license agreement with them. During the first quarter 2020 a triggering event occurred with the decline in royalty cash flows from Assertio, and we performed an impairment test which indicated that the carrying value of the intangible asset was greater than the fair value. The impairment test resulted in a $668 thousand impairment charge against the intangible asset, which was determined using our estimate of discounted royalty cash flows remaining under our license agreement with Assertio, and recorded a like amount to general and administrative expense. For the second quarter 2021, we did not earn a royalty on Oxaydo. We have recorded amortization expense of $13 thousand and $57 thousand in each of the six month periods ending June 30, 2021 and 2020, respectively. Amortization of the patent for its remaining useful life is expected to approximate $6 thousand per quarter. The Aversion intangible asset is summarized as follows (in thousands): ā ā ā ā ā ā ā ā ā June 30, December 31, ā ā 2021 ā 2020 Intangible asset ā Aversion ā 2,000 ā 2,000 Less: accumulated amortization ā (1,272) ā (1,259) Less: reserve for impairment ā (668) ā (668) Net ā $ 60 ā $ 73 ā In January 2015, we and Egalet US, Inc. and Egalet Ltd., each a subsidiary of Egalet Corporation (now known as Assertio Holdings Inc. and formerly known as Zyla Life Sciences), or collectively Assertio, entered into a Collaboration and License Agreement (the āAssertio Agreementā) to commercialize Aversion Oxycodone under our tradename Oxaydo. Oxaydo is approved by the FDA for marketing in the United States in 5 mg and 7.5 mg strengths. Under the terms of the Assertio Agreement, we transferred the approved New Drug Application, or NDA, for Oxaydo to Assertio and Assertio is granted an exclusive license under our intellectual property rights for development and commercialization of Oxaydo worldwide (the āTerritoryā) in all strengths, subject to our right to co-promote Oxaydo in the United States. Eaglet launched Oxaydo in the United States late in the third quarter of 2015. Assertio paid us a $5.0 million license fee upon signing of the Assertio Agreement and on October 9, 2015, paid us a $2.5 million milestone in connection with the first commercial sale of Oxaydo. We are entitled to receive from Assertio a stepped royalty at percentage rates ranging from mid-single digits to double-digits based on Oxaydo net sales during each calendar year (excluding net sales resulting from our co-promotion efforts). Assertioās royalty payment obligations commenced on the first commercial sale of Oxaydo and expire, on a country-by-country basis, upon the expiration of the last to expire valid patent claim covering Oxaydo in such country (or if there are no patent claims in such country, then upon the expiration of the last valid claim in the United States or the date when no valid and enforceable listable patent in the FDAās Orange Book remains with respect to Oxaydo). Royalties will be reduced upon the entry of generic equivalents, as well as for payments required to be made by Assertio to acquire intellectual property rights to commercialize Oxaydo, with an aggregate minimum floor. As part of a 2020 restructuring by Assertio, it is our understanding that they have decided to reduce selling efforts pertaining to Oxaydo and as such, we expect royalties to decline over the remainder of the Agreement. The Assertio Agreement expires upon the expiration of Assertioās royalty payment obligations in all countries. MainPointe Agreement covering Nexafed Products In March 2017, we and MainPointe entered into the MainPointe Agreement, pursuant to which we granted MainPointe an exclusive license to our Impede Technology to commercialize both of our Nexafed and Nexafed Sinus Pressure + Pain product (āNexafed productsā) in the U.S. and Canada. We also conveyed to MainPointe our existing inventory and equipment relating to our Nexafed products. MainPointe is responsible for all development, manufacturing and commercialization activities with respect to products covered by the Agreement. On signing the MainPointe Agreement, MainPointe paid us an upfront licensing fee of $2.5 million. The MainPointe Agreement also provides for our receipt of a 7.5% royalty on net sales of the licensed products. The royalty payment for each product will expire on a country-by-country basis when the ImpedeĀ® patent rights for such country have expired or are no longer valid; provided that if no Impede patent right exists in a country, then the royalty term for that country will be the same as the royalty term for the United States. After the expiration of a royalty term for a country, MainPointe retains a royalty free license to our ImpedeĀ® Technology for products covered by the Agreement in such country. MainPointe has the option to expand the licensed territory beyond the United States and Canada to the European Union (and the United Kingdom), Japan and South Korea for payments of $1.0 million, $500 thousand and $250 thousand, respectively. In addition, MainPointe has the option to add to the MainPointe Agreement certain additional products, or Option Products, containing PSE and utilizing the Impede Technology for a fee of $500 thousand per product (for all product strengths). Such Option Products include the product candidate Loratadine with pseudoephedrine. If the territory has been expanded prior to the exercise of a product option, the option fee will be increased to $750 thousand per product. If the territory is expanded after the payment of the $500 thousand product option fee, a one-time $250 thousand fee will be due for each product. If a third party is interested in developing or licensing rights to an Option Product, MainPointe must exercise its option for that product or its option rights for such product will terminate. On June 28, 2019, we granted authority to MainPointe to assign to AD Pharma the option and the right to add, as an Option Product to the NexafedĀ® Agreement, a NexafedĀ® 12-hour dosage (an extended-release pseudoephedrine hydrochloride product utilizing the IMPEDEĀ® Technology in 120mg dosage strength and the Option Product exercise price of $500 thousand was waived if the exercise of the option occurred by June 28, 2024 (five years from the effective date of the AD Pharma Agreement). Effective with the October 2020 amendment, this option and right was rescinded. The MainPointe Agreement may be terminated by either party for a material breach of the other party, or by Acura if MainPointe challenges certain of its patents. Upon early termination of the MainPointe Agreement, MainPointeās licenses to the Impede Technology and all products will terminate. Upon termination, at Acuraās request the parties will use commercially reasonable efforts to transition the NexafedĀ® and NexafedĀ® Sinus Pressure + Pain products back to Acura. On January 1, 2020, MainPointe assigned to AD Pharma, with Acuraās consent, all of its right, title and interest in the MainPointe Agreement between MainPointe and Acura; which was rescinded by AD Pharma in October 2020. KemPharm Agreement Covering Certain Opioid Prodrugs In October 2016, we and KemPharm Inc. (āKemPharmā) entered into a worldwide License Agreement (the āKemPharm Agreementā) pursuant to which we licensed our AversionĀ® Technology to KemPharm for its use in the development and commercialization of three products using 2 of KemPharmās prodrug candidates. KemPharm has also been granted an option to extend the KemPharm Agreement to cover two additional prodrug candidates. KemPharm is responsible for all development, manufacturing and commercialization activities. Upon execution of the KemPharm Agreement, KemPharm paid us an upfront payment of $3.5 million. If KemPharm exercises its option to use our Aversion Technology with more than the two licensed prodrugs, then KemPharm will pay us up to $1.0 million for each additional prodrug license. In addition, we will receive from KemPharm a low single digit royalty on commercial sales by KemPharm of products developed using our Aversion Technology under the KemPharm Agreement. KemPharmās royalty payment obligations commence on the first commercial sale of a product using our Aversion Technology and expire, on a country-by-country basis, upon the expiration of the last to expire patent claim of the Aversion Technology covering a product in such country, at which time the license for the particular product and country becomes fully paid and royalty free. The KemPharm Agreement expires upon the expiration of KemPharmās royalty payment obligations in all countries. Either party may terminate the KemPharm Agreement in its entirety if the other party materially breaches the KemPharm Agreement, subject to applicable cure periods. Acura or KemPharm may terminate the KemPharm Agreement with respect to the U.S. and other countries if the other party challenges the patents covering the licensed products. KemPharm may terminate the KemPharm Agreement for convenience on ninety (90) days prior written notice. Termination does not affect a partyās rights accrued prior thereto, but there are no stated payments in connection with termination other than payments of obligations previously accrued. For all terminations (but not expiration), the KemPharm Agreement provides for termination of our license grant to KemPharm. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 3 ā REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue is recognized when, or as, performance obligations under terms of a contract are satisfied, which occurs when control of the promised service is transferred to a customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring services to a customer (ātransaction priceā). The Company will then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when, or as, the performance obligation is satisfied. When determining the transaction price of the contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. None of the Companyās licenses and collaboration agreements contained a significant financing component at either June 30, 2021 or December 31, 2020. The Companyās existing license and collaboration agreements may contain a single performance obligation or may contain multiple performance obligations. Those which contain multiple performance obligations will require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. The Companyās existing license and collaboration agreements contain customer options for the license of additional products and territories. We determined the optionās standalone selling prices based on the option productās potential market size in the option territory as compared to the currently licensed product and U.S. territory. Some of our existing license and collaboration agreements contain a license to the technology as well as licenses to tradenames or trademarks. The Company determined that the licenses to the tradenames or trademarks were immaterial in context of the contract. Price adjustments are accounted for as variable consideration. Provisions for variable consideration are based on current assumptions, executed contracts, and historical data and are provided for in the period the related revenues are recorded. Sales-based Milestones and Royalty Revenues The commercial sales-based milestones and sales royalties earned under the license and collaboration for Oxaydo and sales royalties earned under the license for the Nexafed products, are recorded in the period of the related sales by Assertio and MainPointe. Payments of sales-based milestones are generally due within 30 days after the end of a calendar year. Payments of royalties are generally due within 45 days after the end of a calendar quarter. License and Collaboration Agreement Revenues The achievement of milestones under the Companyās license and collaboration agreements will be recorded as revenue during the period the milestoneās achievement becomes probable, which may result in earlier recognition as compared to the previous accounting standards. The license fee of an option product or option territory under the Companyās license and collaboration agreements will be recorded as revenue when the option is exercised and any obligations on behalf of the Company, such as to transfer know-how, has been fulfilled. The monthly license fee under the Companyās LTX-03 license and collaboration agreement will be recorded as revenue upon the fulfillment of the monthly development activities. The out-of-pocket development expenses under the license and collaboration agreements will be recorded as revenue upon the performance of the service or delivery of the material during the month. On June 28, 2019 we announced a License, Development and Commercialization Agreement, as amended in October 2020 and in July 2021 (the āAD Pharma Amended Agreementā), with Abuse Deterrent Pharma, LLC (āAD Pharmaā), The AD Pharma Amended Agreement required AD Pharma to pay us a monthly license payment of $350 thousand for a period from inception up to April 2020 at which time the payment became $200 thousand per month and ended on July 31, 2021, and to reimburse us all our outside development costs for LTX-03. On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021 The AD Pharma Amended Agreement, requires the NDA for LTX-03 be accepted by the FDA by February 28, 2022 or AD Pharma has the option to terminate the AD Pharma Amended Agreement and take ownership of the LIMITx intellectual property. The AD Pharma Amended Agreement allows AD Pharma to terminate the AD Pharma Amended Agreement āfor convenienceā. Product Sales, net of allowance Nexafed was launched in mid-December 2012 and Nexafed Sinus Pressure + Pain was launched in February 2015. Prior to entering into the MainPointe Agreement in March 2017, we sold our Nexafed products in the United States to wholesale pharmaceutical distributors as well as directly to chain drug stores. Our Nexafed products were sold Disaggregation of Total Revenues The Company has two license agreements for currently marketed products containing its technologies; the Oxaydo product containing the Aversion Technology has been licensed to Assertio and the Nexafed products containing the Impede Technology which have been licensed to MainPointe. The Company has a third license agreement having a product under development, LTX-03, containing its LIMITxā¢ technology to AD Pharma. We have recorded $0.6 million and $1.05 million of license fees for LTX-03 during the three months ended June 30, 2021 and 2020, respectively. We have recorded $1.2 million and $2.1 million of license fees for LTX-03 during the six months ended June 30, 2021 and 2020, respectively. On January 1, 2020, MainPointe assigned to AD Pharma, with Acuraās consent, all of its right, title and interest in the MainPointe Agreement between MainPointe and Acura; which was rescinded by AD Pharma in October 2020. All of the Companyās royalty revenues are earned from these two license agreements by the licenseeās sale of products in the United States. Royalty revenues by licensee are summarized below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months Ended ā Six months Ended ā ā June 30, ā June 30, ā 2021 2020 2021 2020 Assertio (Oxaydo) ā $ 3 ā $ 31 ā $ 33 ā $ 61 MainPointe - related party (Nexafed) ā ā ā 3 ā ā 2 ā ā 6 Royalty revenues ā $ 3 ā $ 34 ā $ 35 ā $ 67 ā Contract Balance and Performance Obligations The Company had no contract assets and contract liability balances under the license and collaboration agreements at either June 30, 2021 or 2020. Contract assets may be reported in future periods under prepaid expenses or other current assets on the consolidated balance sheet. Contract liabilities may be reported in future periods consisting of deferred revenue as presented on the consolidated balance sheet. |
RESEARCH AND DEVELOPMENT
RESEARCH AND DEVELOPMENT | 6 Months Ended |
Jun. 30, 2021 | |
RESEARCH AND DEVELOPMENT | |
RESEARCH AND DEVELOPMENT | NOTE 4 ā RESEARCH AND DEVELOPMENT Research and Development (āR&Dā) costs include internal R&D activities, external Contract Research Organization (āCROā) services and their clinical research and investigative sites, and other activities. Internal R&D activity costs can include facility overhead, equipment and facility maintenance and repairs, laboratory supplies, pre-clinical laboratory experiments, formulation work, depreciation, salaries, benefits, insurance and stock-based compensation expenses. CRO activity costs can include preclinical laboratory experiments and clinical trial studies. Other activity costs can include regulatory consulting, regulatory legal counsel, cost of acquiring, developing and manufacturing pre-clinical trial materials, costs of manufacturing scale-up, and cost sharing expenses under license agreements. Internal R&D costs and other activity costs are charged to expense as incurred. We make payments to the CROās based on agreed upon terms and may include payments in advance of a study starting date. Payments in advance will be reflected in the consolidated financial statements as prepaid expenses. We review and charge to expense accrued CRO costs and clinical trial study costs based on services performed and rely on estimates of those costs applicable to the stage of completion of a study as provided by the CRO. Our accrued CRO costs are subject to revisions as such studies progress towards completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. We did not have prepaid CRO costs or prepaid clinical trial study expenses at June 30, 2021 or 2020. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 5 ā PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is summarized as follows (in thousands): ā ā ā ā ā ā ā ā ā ā June 30, ā December 31, ā 2021 2020 ā ā (in thousands) Building and improvements ā $ 1,273 ā $ 1,273 Scientific equipment ā 597 ā 597 Computer hardware and software ā 105 ā 106 Machinery and equipment ā 274 ā 274 Land and improvements ā 162 ā 162 Other personal property ā 70 ā 70 Office equipment ā 27 ā 27 Total ā 2,508 ā 2,509 Less: accumulated depreciation ā (2,047) ā (2,025) Net property, plant and equipment ā $ 461 ā $ 484 ā We do not have leasehold improvements. Costs of betterments are capitalized while maintenance costs and repair costs are charged to operations as incurred. When a depreciable asset is retired from service, the cost and accumulated depreciation will be removed from the respective accounts. Depreciation expense was $11 thousand and $14 thousand for each of the three month periods ended June 30, 2021 and 2020, respectively. Depreciation expense was $23 thousand and $29 thousand for each of the six month periods ended June 30, 2021 and 2020, respectively. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 6 Months Ended |
Jun. 30, 2021 | |
ACCRUED EXPENSES | |
ACCRUED EXPENSES | NOTE 6 ā ACCRUED EXPENSES Accrued expenses are summarized as follows (in thousands): ā ā ā ā ā ā ā ā ā ā June 30, ā December 31, ā 2021 2020 ā ā (in thousands) Cost sharing expenses under license agreements ā $ 428 ā $ 428 Other fees and services ā 22 ā 24 Payroll, payroll taxes and benefits ā 48 ā 8 Professional services ā 141 ā 117 Financed premiums on insurance policies ā ā ā 28 Property taxes ā 4 ā 9 Franchise taxes ā 30 ā 17 Total ā $ 673 ā $ 631 ā |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
DEBT | |
DEBT | NOTE 7 ā DEBT Related Party Convertible Loan At December 31, 2018, we had borrowed an aggregate of $4.35 million from Mr. Schutte, a related-party. From January 1, 2019 and through June 27, 2019, we borrowed additional amounts from Mr. Schutte for $650 thousand and issued various promissory notes to him with the same terms and conditions from the previous loans (the Schutte Notes).On June 28, 2019 we restructured the $5.0 million loan to borrow an additional $725 thousand from Mr. Schutte bringing the aggregate principal of the loans and accrued interest to $6.0 million, and consolidated the loans into a single promissory note with a fixed interest rate of 7.5%, maturity date of July 1, 2023, granted principal and interest conversion rights into shares of our common stock at a price of $0.16 per share, issued a warrant for 10.0 million common shares having an exercise price of $0.01 per share, and granted a security interest in all of the Companyās assets, which includes our intellectual property. The principal amount of the loan is convertible into 37.5 million shares of our common stock. The $6.0 million convertible debt, the common stock purchase warrant and the security agreement were all assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019. Interest expense was $87 thousand and $113 thousand for each of the three month periods ended June 30, 2021 and 2020, respectively,and was $200 thousand and $225 thousand for each of the six month periods ended June 30, 2021 and 2020, respectively. On June 9, 2021, we received notice of conversion from AD Pharma for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest. The principal and interest were converted into 42,984,375 shares of the Companyās common stock. Effective with this conversion, the Promissory Note is retired and the Company is working with AD Pharma to release their security interest in all the Companyās assets. AD Pharma directly owns approximately 66% of our common stock at June 30, 2021. Paycheck Protection Program 1 st PPP Loan On April 13, 2020, the Company received a loan (the ā1 st st st 2 nd PPP Loan On March 16, 2021, the Company received a loan (the ā2 nd nd nd nd nd |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 8 ā RELATED PARTY TRANSACTIONS In July 2017, we completed a $4.0 million private placement with Mr. Schutte, consisting of 8,912,655 units (āUnitsā) of the Company, at a price of $0.4488 per Unit (the āTransactionā). Each Unit consists of one share of common stock and a warrant to purchase one fifth (0.2) of a share of common stock. The issue price of the Units was equal to 85% of the average last sale price of our common stock for the five trading days prior to completion of the Transaction. The warrants are immediately exercisable for 1,782,532 common shares at a price of $0.528 per share (which equals the average last sale price of the Companyās common stock for the five trading days prior to completion of the Transaction) and expire five years after issuance (subject to earlier expiration in event of certain acquisitions). We have assigned a relative fair value of $495 thousand to the warrants out of the total $4.0 million proceeds from the private placement transaction and have accounted these warrants as equity. As part of the closing of the Transaction, the Company and Essex Woodlands Health Ventures V, L.P. (āEssexā) and Galen Partners III, L.P. (āGalenā) amended and restated the existing Voting Agreement including such parties to provide for Mr. Schutte to join as a party (as so amended, the āSecond Amended and Restated Voting Agreementā). The Second Amended and Restated Voting Agreement provides that our Board of Directors shall remain comprised of no more than seven members (subject to certain exceptions), (i) one of whom is the Companyās Chief Executive Officer, (ii) three of whom are independent under Nasdaq standards, and (iii) one of whom shall be designated by each of Essex, Galen and Mr. Schutte, and the parties to such agreement would vote for such persons. The right of each of Essex, Galen and Mr. Schutte to designate one director to our Board will continue as long as he or it and their affiliates collectively hold at least 600,000 shares of our common stock (including warrants exercisable for such shares). Immanuel Thangaraj is the designee of Essex. Mr. Schutte has not designated a director as of the date of filing of this Report on Form 10-Q. Galen had not designated a director and lost that right in December 2017 when it disposed of its shares of common stock in the Company. Once such shareholder no longer holds such securities, the additional forfeited seat would become a seat for an independent director to thereafter be nominated to the Board of Directors from time to time by the then current directors and as applicable, to be elected by the directors to fill the vacancy created by the forfeited seat or submitted to the vote of shareholders at the Companyās next annual meeting. An independent director has not been named to fill the seat forfeited by Galen. MainPointe Pharmaceuticals LLC Mr. Schutte is the principal owner of MainPointe Pharmaceuticals LLC, a Kentucky limited liability company (āMainPointeā). In March 2017, we granted MainPointe an exclusive license to our Impede Technology to commercialize our NexafedĀ® and NexafedĀ® Sinus Pressure + Pain Products in the United States and Canada for an upfront licensing fee of $2.5 million. The Company is receiving a 7.5% royalty on sales of licensed products. MainPointe also has options to expand the territory and products covered for additional sums. Included in the reported royalty revenue for the three months ended June 30, 2021 and 2020 is $0 thousand and $3 thousand, respectively of royalty revenue from MainPointe. Included in the reported royalty revenue for the six months ended June 30, 2021 and 2020 is $2 thousand and $6 thousand, respectively of royalty revenue from MainPointe. (See Note 2). On January 1, 2020, MainPointe assigned to AD Pharma, with Acuraās consent, all of its right, title and interest in the MainPointe Agreement between MainPointe and Acura; which was rescinded by AD Pharma in October 2020. Loans with Mr. John Schutte At December 31, 2018, we had borrowed an aggregate of $4.35 million from Mr. Schutte, a related-party. During the period January 1, 2019 through June 27, 2019 we borrowed an aggregate of $650 thousand from Mr. Schutte. On June 28, 2019 we borrowed an additional $725 thousand from Mr. Schutte, bringing the aggregate principal of the loans and accrued interest to $6.0 million, and consolidated the loans into a single promissory note with a fixed interest rate of 7.5%, maturity date of July 1, 2023, granted conversion rights of principal and interest into shares of our common stock at a price of $0.16 per share, issued a warrant for 10.0 million common shares having an exercise price of $0.01 per share, and granted a security interest in all of the Companyās assets, which includes our intellectual property. The principal amount of the note is convertible into 37.5 million shares of our common stock. The $6.0 million convertible debt, the common stock purchase warrant and the security agreement were all assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019. On June 9, 2021, we received notice of conversion from AD Pharma for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest. The principal and interest were converted into 42,984,375 shares of the Companyās common stock. Effective with this conversion, the Promissory Note is retired and the Company is working with AD Pharma, LLC to release their security interest in all the Companyās assets. AD Pharma directly owns approximately 66% of our common stock at June 30, 2021. AD Pharma Agreement covering LTX-03 On June 28, 2019 we entered into a License, Development and Commercialization Agreement, as amended in October 2020 and in July 2021 (the āAD Pharma Amended Agreementā), with Abuse Deterrent Pharma, LLC (āAD Pharmaā), a special purpose company representing a consortium of investors for the completion of development of LTX-03 (hydrocodone bitartrate with acetaminophen) immediate-release tablets utilizing Acuraās patented LIMITxā¢ technology which addresses the consequences of excess oral administration of opioid tablets, the most prevalent route of opioid overdose and abuse. The AD Pharma Amended Agreement grants AD Pharma exclusive commercialization rights in the United States to LTX-03 as well as LTX-02 (oxycodone/acetaminophen) and LTX-09 (alprazolam). The AD Pharma Amended Agreement required AD Pharma to pay us a monthly license payment of $350 thousand for a period from inception up to April 2020 at which time the payment became $200 thousand per month and ended on July 31, 2021, and to reimburse us all our outside development costs for LTX-03. On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021 The AD Pharma Amended Agreement, requires the NDA for LTX-03 be accepted by the FDA by February 28, 2022 or AD Pharma has the option to terminate the AD Pharma Amended Agreement and take ownership of the LIMITx intellectual property. Should AD Pharma choose not to exercise this option to terminate and the NDA for LTX-03 is subsequently accepted by the FDA, such option expires. AD Pharma does have the right to terminate the AD Pharma Amended Agreement anytime for āconvenience on 30 days prior written noticeā. AD Pharma retains commercialization rights from which Acura will receive stepped royalties on sales and potential sales related milestones. AD Pharma also has a license to the Limitx patents for LTX-02 (oxycodone/acetaminophen) and LTX-09 (alprazolam) which are not subject to any development agreement or responsibilities by Acura. Upon commercialization of the licensed products, Acura receives stepped royalties on sales and is eligible for certain sales related milestones. We also granted authority to MainPointe Pharmaceuticals, LLC (MainPointe) to assign to AD Pharma the option and the right to add, as an Option Product to the NexafedĀ® Agreement, a NexafedĀ® 12-hour dosage (an extended-release pseudoephedrine hydrochloride product utilizing the IMPEDEĀ® Technology in 120mg dosage strength), and the Option Product exercise price of $500 thousand was waived if the exercise of the option occurred by June 28, 2024 (five years from the effective date of the AD Pharma Agreement), however effective with the October 2020 amendment to the AD Pharma Agreement, this option and right was rescinded. In March 2017, we granted MainPointe an exclusive license to our IMPEDE Ā® Technology to commercialize our NexafedĀ® and NexafedĀ® Sinus Pressure + Pain Products in the United States and Canada. On January 1, 2020, MainPointe assigned to AD Pharma, with Acuraās consent, all of its right, title and interest in the MainPointe Agreement between MainPointe and Acura; which was rescinded by AD Pharma in October 2020. |
COMMON STOCK PURCHASE WARRANTS
COMMON STOCK PURCHASE WARRANTS | 6 Months Ended |
Jun. 30, 2021 | |
COMMON STOCK PURCHASE WARRANTS. | |
COMMON STOCK PURCHASE WARRANTS | NOTE 9 ā COMMON STOCK PURCHASE WARRANTS Our warrant activity during the six month periods ended June 30, 2021 and 2020 is shown below (in thousands except price data): ā ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, ā ā 2021 ā 2020 ā ā WAvg ā WAvg ā ā ā ā Exercise ā ā ā Exercise ā ā Number ā Price ā Number ā Price Outstanding, Jan. 1 11,782 ā $ 0.09 11,842 ā $ 0.10 Issued ā ā ā ā ā ā Exercised ā ā ā ā ā ā Expired ā ā ā ā ā ā Modification ā ā ā ā ā ā Outstanding, Jun. 30 11,782 ā $ 0.09 11,842 ā $ 0.10 ā As part of our July 2017 private placement transaction with Mr. Schutte, we issued warrants to purchase 1,782,531 shares of our common stock. The warrants are immediately exercisable at a price of $0.528 per share and expire five years after issuance in July 2022. (See Note 8). We have assigned a relative fair value of $495 thousand to the warrants out of the total $4.0 million proceeds from the private placement transaction and have accounted for these warrants as equity. In June 2019 as part of the changes made to the loan agreements we had with Mr. Schutte, each having an original due date of January 2, 2020, we issued to him a warrant to purchase 10.0 million shares of our common stock exercisable at a price of $0.01 per share and expire five years after issuance in June 2024. We obtained a valuation of fair value on the warrant and $1.145 million was allocated to the warrant and accounted for as equity. (See Note 7 and Note 8). The warrant for 10.0 million shares was assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019. During December 2020, warrants expired that were exercisable for 60 thousand shares of our common stock and had an exercise price of $2.52 per share. |
SHARE-BASED COMPENSATION EXPENS
SHARE-BASED COMPENSATION EXPENSE | 6 Months Ended |
Jun. 30, 2021 | |
SHARE-BASED COMPENSATION EXPENSE | |
SHARE-BASED COMPENSATION EXPENSE | NOTE 10 ā STOCK-BASED COMPENSATION EXPENSE We have several stock-based compensation plans covering stock options and RSUs for our employees and directors. We measure our compensation cost related to stock-based payment transactions based on fair value of the equity or liability classified instrument. For purposes of estimating the fair value of each stock option unit on the date of grant, we utilize the Black-Scholes option-pricing model. Option valuation models require the input of highly subjective assumptions including the expected volatility factor of the market price of our common stock (as determined by reviewing our historical public market closing prices). Our accounting for stock-based compensation for RSUs is based on the closing market price of our common stock on the date of grant. Our total stock-based compensation expense recognized in the Companyās results of operations from non-cash and cash-portioned instruments issued to our employees and directors comprised the following (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months Ended ā Six months Ended ā ā June 30, ā June 30, ā 2021 2020 2021 ā 2020 ā (in thousands) Research and development costs: ā ā ā ā Stock options ā $ ā ā $ ā ā $ ā ā $ ā Restricted stock units ā ā ā ā ā ā ā ā Subtotal ā $ ā ā $ ā ā $ ā ā $ ā ā ā ā ā ā General and administrative costs: ā ā ā ā ā ā ā ā ā ā ā ā Stock options ā $ ā ā $ ā ā $ ā ā $ ā Restricted stock units ā 63 ā 18 ā 63 ā 33 Subtotal ā ā 63 ā ā 18 ā ā 63 ā ā 33 ā ā ā ā ā ā ā ā ā ā ā ā ā Total ā $ 63 ā $ 18 ā $ 63 ā $ 33 ā Stock Option Plans We maintain various stock option plans. A summary of our stock option plans as of June 30, 2021 and 2020 and for the three months then ended consisted of the following (in thousands except exercise price): ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months ended June 30, ā ā 2021 ā 2020 ā ā Weighted ā Weighted ā ā Number ā Average ā ā ā Average ā ā of ā Exercise ā Number of ā Exercise ā ā Options ā Price ā Options ā Price Outstanding, Jan. 1 1,254 ā $ 3.46 1,356 ā $ 4.45 Granted ā ā ā ā ā ā Exercised (80) ā 0.15 ā ā ā Forfeited ā ā ā ā ā ā Expired ā (12) ā ā 17.30 ā (12) ā ā 27.35 Outstanding, Jun. 30 1,162 ā $ 3.55 1,344 ā $ 4.24 Exercisable, Jun. 30 1,162 ā $ 3.55 1,344 ā $ 4.24 ā We estimate the optionās fair value on the date of grant using the Black-Scholes option-pricing model. Black-Scholes utilizes assumptions related to expected term, forfeitures, volatility, the risk-free interest rate, the dividend yield (which is assumed to be zero, as we have not paid any cash dividends) and employee exercise behavior. Expected volatilities utilized in the Black-Scholes model are based on the historical volatility of our common stock price. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected life of the grants is derived from historical exercise activity. Historically, the majority of our stock options have been held until their expiration date. The intrinsic value contained in the stock option awards which are vested and outstanding at June 30, 2021 is approximately $110 thousand. Restricted Stock Unit Award Plans We have two Restricted Stock Unit Award Plans for our employees and non-employee directors, a 2021 Restricted Stock Unit Award Plan (the ā2021 RSU Plan) and a 2017 Restricted Stock Unit Award Plan (the ā2017 RSU Plan). Vesting of an RSU entitles the holder to receive a share of our common stock on a distribution date. Our non-employee director awards allow for non-employee directors to receive payment in cash, instead of stock, for up to 40% of each RSU award. The portion of the RSU awards subject to cash settlement are recorded as a liability in the Companyās consolidated balance sheet as they vest and being marked-to-market each reporting period until they are distributed. The liability was $35 thousand at June 30, 2021. The compensation cost to be incurred on a granted RSU without a cash settlement option is the RSUās fair value, which is the market price of our common stock on the date of grant, less its exercise cost. The compensation cost is amortized to expense and recorded to additional paid-in capital over the vesting period of the RSU award. A summary of the grants under the RSU Plans as of June 30, 2021 and 2020, and for the six months then ended consisted of the following (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, ā ā 2021 ā 2020 ā ā Number of ā Number of ā ā Number ā Vested ā Number of ā Vested ā ā of RSUs ā RSUs ā RSUs ā RSUs Outstanding, Jan. 1 839 839 ā 1,017 1,017 Granted 267 ā ā 219 ā Distributed (447) (447) ā (397) (397) Vested ā 133 ā ā 110 Forfeited ā ā ā ā ā Outstanding, Jun. 30 659 525 ā 839 730 ā 2021 Restricted Stock Unit Award Plan Our 2021 RSU Plan was approved by shareholders in May 2021 and permits the grant of up to 2.50 million shares of our common stock pursuant to awards under the 2021 RSU Plan. As of June 30, 2021, there are 2.23 million shares which remain available for award under the 2021 RSU Plan. Information about the award activity under the 2021 RSU Plan is as follows: ā In May 2021, we awarded approximately 66 thousand RSUs to each of our four non-employee directors which also allow for them to receive payment in cash, instead of stock, for up to 40% of each RSU award. The awards vest 50% at the end of calendar quarter June 30, 2021 and 25% at each end of calendar quarter in 2021 thereafter. Settlement of this RSU will occur on January 4, 2022 the first business day of the year after vesting. The portion of the RSU awards which is subject to cash settlement will also be subject to marked-to market accounting having a liability recorded on the Companyās consolidated balance sheet with quarterly adjustments recorded to stock compensation expense in the general and administration operating category of our income statement. 2017 Restricted Stock Unit Award Plan Our 2017 RSU Plan was approved by shareholders in November 2017 and permits the grant of up to 1.5 million shares of our common stock pursuant to awards under the 2017 RSU Plan. As of June 30, 2021, there are no shares which remain available for award under the 2017 RSU Plan. Information about the award activity under the 2017 RSU Plan is as follows: ā In December 2017, we awarded 200 thousand RSUs to our employees. Such RSU awards vested 100% after one full year of service. Distributions of the vested RSU awards to the employees are being made in three equal installments on the first business day of each of January 2020, 2021, and 2022 or earlier upon a qualifying change of control. ā In December 2018, we awarded 488 thousand RSUs to our employees. Such RSU awards vested 100% after one full year of service. Distributions of the vested RSU awards to the employees are being made in three equal installments on the first business day of each of January 2021, 2022, and 2023 or earlier upon a qualifying change of control. ā In January 2019, we awarded approximately 83 thousand RSUs to each of our four non-employee directors which also allow for them to receive payment in cash, instead of stock, for up to 40% of each RSU award. The awards vest 25% at the end of each calendar quarter in 2019. Settlement of this RSU award occurred on January 2, 2020, the first business day of the year after vesting. The portion of the RSU awards which were subject to cash settlement was also subject to marked-to market accounting having a liability recorded on the Companyās consolidated balance sheet with quarterly adjustments which were recorded to stock compensation expense in the general and administration operating category of our income statement. ā In January 2020, we awarded approximately 55 thousand RSUs to each of our four non-employee directors which also allow for them to receive payment in cash, instead of stock, for up to 40% of each RSU award. The awards vest 25% at the end of each calendar quarter in 2020. Settlement of this RSU award did occur on January 4, 2021, the first business day of the year after vesting. The portion of the RSU awards which are subject to cash settlement will also be subject to marked-to market accounting having a liability recorded on the Companyās consolidated balance sheet with quarterly adjustments recorded to stock compensation expense in the general and administration operating category of our income statement. Information about the distribution of share activity under the 2017 RSU Plan is as follows: ā In January 2019, 267 thousand RSUs were distributed to our non-employee directors from their January 2018 award and settled in common stock. ā In January 2020, 333 thousand RSUs were distributed to our non-employee directors from their January 2019 award with 296 thousand RSUs settled in common stock, 4 thousand RSUs used to settle the purchase price and 33 thousand RSUs settled in cash. ā In January 2020, 64 thousand RSUs were distributed to our current and former employees representing one third of their 2017 award with 54 thousand RSUs settled in common stock and 10 thousand RSUs used to settle the purchase price and employee withholding taxes. ā In January 2021, 219 thousand RSUs were distributed to our non-employee directors from their January 2020 award and settled in common stock. ā In January 2021, 228 thousand RSUs were distributed to our current and former employees representing one third of their December 2017 award and one third of their December 2018 award, with 185 thousand RSUs settled in common stock and 43 thousand RSUs used to settle the purchase price and employee withholding taxes. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
LEASES | NOTE 11 ā LEASES In June 2021, the Company entered into a finance lease for a scientific piece of equipment for a term of 24 months with equal monthly payment of $3 thousand. The following table reflects supplemental balance sheet information related to the lease as of June 30, 2021 and December 31, 2020 (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, ā December 31, ā Financial Statement Classification 2021 2020 ā ā ā ā (in thousands) Assets ā ā Finance lease right of use Other long-term assets ā $ 66 ā $ ā ā ā ā ā ā ā ā ā ā Liabilities ā ā Finance lease liability - current Other current liabilities ā $ 33 ā $ ā Finance lease liability - noncurrent Other long-term liabilities ā 33 ā ā Total lease liability ā ā ā 66 ā $ ā ā |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | NOTE 12 ā INCOME TAXES We account for income taxes under the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and income tax basis of assets and liabilities and are accounted for using the enacted income tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets reflect the tax effects of net operating losses (āNOLsā), tax credit carryovers, and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The most significant item of our deferred tax assets is derived from our Federal NOLs. We have approximately $138 million gross Federal NOLs at June 30, 2021. On June 9, 2021 we believe the conversion for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest into 42,984,375 shares of the Companyās common stock created another qualifying event under IRC 382 which will most likely continue to further limit our utilization of our NOLs. We believe the gross Federal NOL benefit we generated prior to January 1, 2018 available to offset taxable income and prior to the June 9, 2021 conversion, was less than $150 thousand annually. As prescribed under Internal Revenue Code, any unused Federal NOL benefit from the annual limitation can be accumulated and carried forward to the subsequent year and will expire if not used in accordance with the NOL carried forward term of 20 years or 2037, if generated before 2018 while our Federal NOLs generated after 2017 can be carried forward indefinitely. Future common stock transactions, such as the exercise of common stock purchase warrants, may cause another qualifying event under IRC 382 which will most likely continue to further limit our utilization of our NOLs. The realization of deferred income tax assets is dependent upon future earnings, if any, and the timing and amount of which may be uncertain. A valuation allowance is required against deferred income tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred income tax assets may not be realized. At June 30, 2021 and December 31, 2020, all our remaining net deferred income tax assets were offset by a valuation allowance due to uncertainties with respect to future utilization of NOL carryforwards. If in the future it is determined that additional amounts of our deferred income tax assets would likely be realized, the valuation allowance would be reduced in the period in which such determination is made and an additional benefit from income taxes in such period would be recognized. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
NET INCOME (LOSS) PER SHARE | |
NET INCOME (LOSS) PER SHARE | NOTE 13 āNET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income or loss by the weighted average common shares outstanding during a period, including shares weighted related to both vested Restricted Stock Units (āRSUsā) which settle in shares (See Note 10) and a stock warrant exercisable for 10.0 million shares having an exercise price of $0.01 per share (See Note 7). Diluted EPS is based on the treasury stock method and computed based on the same number of shares used in the basic share calculation and includes the effect from potential issuance of common stock, such as shares issuable pursuant to the exercise of stock options and stock warrants, assuming the exercise of all in-the-money stock options and warrants. Common stock equivalents are excluded from the computation where their inclusion would be anti-dilutive. As the Company reported a net loss for the six month periods ending June 30, 2021 and 2020, the effects of common stock equivalents were excluded as the diluted net loss per share calculation would have been antidilutive. The weighted-average common share outstanding diluted computation is not impacted during any period where the exercise price of a stock option, common stock warrant or convertible loan is greater than the average market price of our common stock. A reconciliation of the numerators and denominators of basic and diluted net income (loss) per share (āEPSā) consisted of the following (in thousands except per share data): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months Ended ā Six months Ended ā ā June 30, ā June 30, ā 2021 2020 2021 2020 Basic net income (loss) per share ā ā ā ā Numerator: net income (loss) ā $ (387) ā $ 308 ā $ (646) ā $ (287) Denominator (weighted average): ā ā ā ā ā ā ā ā Common shares ā 32,496 ā 21,650 ā 27,314 ā 21,650 RSUs ā vested ā 393 ā 654 ā 393 ā 637 Common stock purchase warrants ā ā 10,000 ā ā 10,000 ā ā 10,000 ā ā 10,000 Basic weighted average shares outstanding ā 42,889 ā 32,304 ā 37,707 ā 32,287 Basic net income (loss) per share ā $ (0.01) ā $ 0.01 ā $ (0.02) ā $ (0.01) ā ā ā ā ā ā ā ā ā ā ā ā ā Diluted net income (loss) per share ā ā ā ā Numerator: net income (loss) ā $ (387) ā $ 308 ā $ (646) ā $ (287) Denominator (weighted average): ā ā ā ā ā ā ā ā Common shares ā 32,496 ā 21,650 ā 27,314 ā 21,650 RSUs ā 393 ā 717 ā 393 ā 637 Stock options ā ā ā ā ā 115 ā ā ā ā ā ā Common stock purchase warrants ā ā 10,000 ā ā 10,000 ā ā 10,000 ā ā 10,000 Diluted weighted average shares outstanding ā 42,889 ā 32,482 ā 37,707 ā 32,287 Diluted net income (loss) per share ā $ (0.01) ā $ 0.01 ā $ (0.02) ā $ (0.01) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Excluded securities (non-weighted): ā ā ā ā ā ā ā ā Common shares issuable: ā ā ā ā ā ā ā ā RSUs ā 80 ā 153 ā 80 ā 153 Stock options ā 1,162 ā 1,121 ā 1,162 ā 1,344 Common stock purchase warrants ā 1,782 ā 1,842 ā 1,782 ā 1,842 Convertible loan ā ā ā ā ā 37,500 ā ā ā ā ā 37,500 Total excluded potentially dilutive shares ā 3,024 ā 40,616 ā 3,024 ā 40,839 ā |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 14 ā SUBSEQUENT EVENTS On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021 On July 21, 2021 we were notified by JP Morgan Chase Bank that the 1 st On July 26, 2021 we received an amendment to its License, Development and Commercialization Agreement regarding Acuraās LIMITxā¢ LTX-03 product candidate with Abuse Deterrent Pharma, LLC to extend the NDA Acceptance Date for LTX-03 to February 28, 2022. |
LICENSE AND COLLABORATION AGR_2
LICENSE AND COLLABORATION AGREEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LICENSE AND COLLABORATION AGREEMENTS | |
Summary of Aversion intangible asset | The Aversion intangible asset is summarized as follows (in thousands): ā ā ā ā ā ā ā ā ā June 30, December 31, ā ā 2021 ā 2020 Intangible asset ā Aversion ā 2,000 ā 2,000 Less: accumulated amortization ā (1,272) ā (1,259) Less: reserve for impairment ā (668) ā (668) Net ā $ 60 ā $ 73 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of disaggregation of revenue | Royalty revenues by licensee are summarized below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months Ended ā Six months Ended ā ā June 30, ā June 30, ā 2021 2020 2021 2020 Assertio (Oxaydo) ā $ 3 ā $ 31 ā $ 33 ā $ 61 MainPointe - related party (Nexafed) ā ā ā 3 ā ā 2 ā ā 6 Royalty revenues ā $ 3 ā $ 34 ā $ 35 ā $ 67 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of Property, Plant and equipment | Property, plant and equipment is summarized as follows (in thousands): ā ā ā ā ā ā ā ā ā ā June 30, ā December 31, ā 2021 2020 ā ā (in thousands) Building and improvements ā $ 1,273 ā $ 1,273 Scientific equipment ā 597 ā 597 Computer hardware and software ā 105 ā 106 Machinery and equipment ā 274 ā 274 Land and improvements ā 162 ā 162 Other personal property ā 70 ā 70 Office equipment ā 27 ā 27 Total ā 2,508 ā 2,509 Less: accumulated depreciation ā (2,047) ā (2,025) Net property, plant and equipment ā $ 461 ā $ 484 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ACCRUED EXPENSES | |
Schedule of Accrued expenses | Accrued expenses are summarized as follows (in thousands): ā ā ā ā ā ā ā ā ā ā June 30, ā December 31, ā 2021 2020 ā ā (in thousands) Cost sharing expenses under license agreements ā $ 428 ā $ 428 Other fees and services ā 22 ā 24 Payroll, payroll taxes and benefits ā 48 ā 8 Professional services ā 141 ā 117 Financed premiums on insurance policies ā ā ā 28 Property taxes ā 4 ā 9 Franchise taxes ā 30 ā 17 Total ā $ 673 ā $ 631 |
COMMON STOCK PURCHASE WARRANTS
COMMON STOCK PURCHASE WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
COMMON STOCK PURCHASE WARRANTS. | |
Schedule Of Common Stock Warrant Activity | Our warrant activity during the six month periods ended June 30, 2021 and 2020 is shown below (in thousands except price data): ā ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, ā ā 2021 ā 2020 ā ā WAvg ā WAvg ā ā ā ā Exercise ā ā ā Exercise ā ā Number ā Price ā Number ā Price Outstanding, Jan. 1 11,782 ā $ 0.09 11,842 ā $ 0.10 Issued ā ā ā ā ā ā Exercised ā ā ā ā ā ā Expired ā ā ā ā ā ā Modification ā ā ā ā ā ā Outstanding, Jun. 30 11,782 ā $ 0.09 11,842 ā $ 0.10 |
SHARE-BASED COMPENSATION EXPE_2
SHARE-BASED COMPENSATION EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SHARE-BASED COMPENSATION EXPENSE | |
Schedule of employee service share-based compensation, allocation of recognized period costs | Our total stock-based compensation expense recognized in the Companyās results of operations from non-cash and cash-portioned instruments issued to our employees and directors comprised the following (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months Ended ā Six months Ended ā ā June 30, ā June 30, ā 2021 2020 2021 ā 2020 ā (in thousands) Research and development costs: ā ā ā ā Stock options ā $ ā ā $ ā ā $ ā ā $ ā Restricted stock units ā ā ā ā ā ā ā ā Subtotal ā $ ā ā $ ā ā $ ā ā $ ā ā ā ā ā ā General and administrative costs: ā ā ā ā ā ā ā ā ā ā ā ā Stock options ā $ ā ā $ ā ā $ ā ā $ ā Restricted stock units ā 63 ā 18 ā 63 ā 33 Subtotal ā ā 63 ā ā 18 ā ā 63 ā ā 33 ā ā ā ā ā ā ā ā ā ā ā ā ā Total ā $ 63 ā $ 18 ā $ 63 ā $ 33 |
Schedule of share-based compensation, stock option plan activity | A summary of our stock option plans as of June 30, 2021 and 2020 and for the three months then ended consisted of the following (in thousands except exercise price): ā ā ā ā ā ā ā ā ā ā ā ā ā ā Six Months ended June 30, ā ā 2021 ā 2020 ā ā Weighted ā Weighted ā ā Number ā Average ā ā ā Average ā ā of ā Exercise ā Number of ā Exercise ā ā Options ā Price ā Options ā Price Outstanding, Jan. 1 1,254 ā $ 3.46 1,356 ā $ 4.45 Granted ā ā ā ā ā ā Exercised (80) ā 0.15 ā ā ā Forfeited ā ā ā ā ā ā Expired ā (12) ā ā 17.30 ā (12) ā ā 27.35 Outstanding, Jun. 30 1,162 ā $ 3.55 1,344 ā $ 4.24 Exercisable, Jun. 30 1,162 ā $ 3.55 1,344 ā $ 4.24 |
Schedule of grants under the RSU Plans | A summary of the grants under the RSU Plans as of June 30, 2021 and 2020, and for the six months then ended consisted of the following (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā Six Months Ended June 30, ā ā 2021 ā 2020 ā ā Number of ā Number of ā ā Number ā Vested ā Number of ā Vested ā ā of RSUs ā RSUs ā RSUs ā RSUs Outstanding, Jan. 1 839 839 ā 1,017 1,017 Granted 267 ā ā 219 ā Distributed (447) (447) ā (397) (397) Vested ā 133 ā ā 110 Forfeited ā ā ā ā ā Outstanding, Jun. 30 659 525 ā 839 730 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
Schedule of supplemental balance sheet information related to the lease | The following table reflects supplemental balance sheet information related to the lease as of June 30, 2021 and December 31, 2020 (in thousands): ā ā ā ā ā ā ā ā ā ā ā ā ā June 30, ā December 31, ā Financial Statement Classification 2021 2020 ā ā ā ā (in thousands) Assets ā ā Finance lease right of use Other long-term assets ā $ 66 ā $ ā ā ā ā ā ā ā ā ā ā Liabilities ā ā Finance lease liability - current Other current liabilities ā $ 33 ā $ ā Finance lease liability - noncurrent Other long-term liabilities ā 33 ā ā Total lease liability ā ā ā 66 ā $ ā |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
NET INCOME (LOSS) PER SHARE | |
Schedule of reconciliation of basic and diluted | A reconciliation of the numerators and denominators of basic and diluted net income (loss) per share (āEPSā) consisted of the following (in thousands except per share data): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months Ended ā Six months Ended ā ā June 30, ā June 30, ā 2021 2020 2021 2020 Basic net income (loss) per share ā ā ā ā Numerator: net income (loss) ā $ (387) ā $ 308 ā $ (646) ā $ (287) Denominator (weighted average): ā ā ā ā ā ā ā ā Common shares ā 32,496 ā 21,650 ā 27,314 ā 21,650 RSUs ā vested ā 393 ā 654 ā 393 ā 637 Common stock purchase warrants ā ā 10,000 ā ā 10,000 ā ā 10,000 ā ā 10,000 Basic weighted average shares outstanding ā 42,889 ā 32,304 ā 37,707 ā 32,287 Basic net income (loss) per share ā $ (0.01) ā $ 0.01 ā $ (0.02) ā $ (0.01) ā ā ā ā ā ā ā ā ā ā ā ā ā Diluted net income (loss) per share ā ā ā ā Numerator: net income (loss) ā $ (387) ā $ 308 ā $ (646) ā $ (287) Denominator (weighted average): ā ā ā ā ā ā ā ā Common shares ā 32,496 ā 21,650 ā 27,314 ā 21,650 RSUs ā 393 ā 717 ā 393 ā 637 Stock options ā ā ā ā ā 115 ā ā ā ā ā ā Common stock purchase warrants ā ā 10,000 ā ā 10,000 ā ā 10,000 ā ā 10,000 Diluted weighted average shares outstanding ā 42,889 ā 32,482 ā 37,707 ā 32,287 Diluted net income (loss) per share ā $ (0.01) ā $ 0.01 ā $ (0.02) ā $ (0.01) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Excluded securities (non-weighted): ā ā ā ā ā ā ā ā Common shares issuable: ā ā ā ā ā ā ā ā RSUs ā 80 ā 153 ā 80 ā 153 Stock options ā 1,162 ā 1,121 ā 1,162 ā 1,344 Common stock purchase warrants ā 1,782 ā 1,842 ā 1,782 ā 1,842 Convertible loan ā ā ā ā ā 37,500 ā ā ā ā ā 37,500 Total excluded potentially dilutive shares ā 3,024 ā 40,616 ā 3,024 ā 40,839 |
OPERATIONS AND SUMMARY OF SIG_2
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Aug. 04, 2021 | Jul. 08, 2021 | Jul. 01, 2021 | Jun. 28, 2019 | Oct. 09, 2015 | Jul. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | Apr. 29, 2020 | Dec. 31, 2020 | Jul. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash | $ 167 | $ 413 | $ 1,038 | $ 862 | |||||||||
Working Capital Deficit | 200 | ||||||||||||
Retained Earnings (Accumulated Deficit), Total | (389,850) | (389,204) | |||||||||||
Income (loss) from operation | 446 | 758 | |||||||||||
Net loss | $ (646) | $ (1,200) | |||||||||||
Monthly license payment receivable | $ 5,000 | ||||||||||||
AD Pharma Amended Agreement | |||||||||||||
Monthly license payments | $ 350 | ||||||||||||
Monthly license payment receivable | $ 350 | $ 350 | $ 200 | ||||||||||
AD Pharma Amended Agreement | Abuse Deterrent Pharma, LLC | |||||||||||||
Monthly license payments | $ 600 | ||||||||||||
Reimbursable development expense | 97 | ||||||||||||
Monthly license payment receivable | $ 600 | $ 600 | |||||||||||
Subsequent event | AD Pharma Amended Agreement | |||||||||||||
Monthly license payment receivable | $ 200 | $ 200 | $ 200 | ||||||||||
Subsequent event | AD Pharma Amended Agreement | Abuse Deterrent Pharma, LLC | |||||||||||||
Monthly license payment receivable | $ 200 | $ 200 | $ 200 | $ 200 |
LICENSE AND COLLABORATION AGR_3
LICENSE AND COLLABORATION AGREEMENTS - Intangible asset (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
LICENSE AND COLLABORATION AGREEMENTS | ||
Intangible asset - Aversion | $ 2,000 | $ 2,000 |
Less: accumulated amortization | (1,272) | (1,259) |
Less: reserve for impairment | (668) | (668) |
Net | $ 60 | $ 73 |
LICENSE AND COLLABORATION AGR_4
LICENSE AND COLLABORATION AGREEMENTS (Details) - USD ($) $ in Thousands | Aug. 04, 2021 | Jul. 08, 2021 | Jul. 01, 2021 | Jun. 09, 2021 | Jun. 28, 2019 | Mar. 31, 2017 | Oct. 09, 2015 | Mar. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2014 | Jul. 31, 2021 | Mar. 31, 2020 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 29, 2020 | Jul. 31, 2021 |
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Payment for Termination | $ 2,000 | ||||||||||||||||
Proceeds from Milestone Payment On Agreement | $ 2,500 | ||||||||||||||||
Monthly license payment receivable | $ 5,000 | ||||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 9 years 8 months 12 days | 2 years 6 months | |||||||||||||||
Amortization of intangible asset | $ 13 | $ 57 | |||||||||||||||
Impairment charge against the intangible asset | $ 668 | 0 | $ 668 | ||||||||||||||
Expected amortization expense for patents per quarter. | $ 6 | ||||||||||||||||
Patents | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Payment for Termination | $ 2,000 | ||||||||||||||||
AD Pharma Amended Agreement | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 350 | $ 350 | $ 200 | ||||||||||||||
Schutte | AD Pharma Amended Agreement | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Percentage of common stock held | 13.70% | ||||||||||||||||
Acura Pharmaceuticals Inc [Member] | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Ownership percentage | 66.00% | ||||||||||||||||
Abuse Deterrent Pharma, LLC | AD Pharma Amended Agreement | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 600 | $ 600 | |||||||||||||||
Conversion received | $ 6,000 | ||||||||||||||||
Unpaid interest | $ 877 | ||||||||||||||||
Principal and interest converted shares | 42,984,375 | ||||||||||||||||
Reimbursable Research And Development Expense | $ 97 | ||||||||||||||||
MainPointe Pharmaceuticals, LLC | AD Pharma Amended Agreement | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Waiver of exercise price if exercise of option occurs by certain date | $ 500 | ||||||||||||||||
Period from effective date for exercise of option | 5 years | ||||||||||||||||
Schutte | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Principal and interest converted shares | 37,500,000 | ||||||||||||||||
Aggregate principal of promissory notes and accrued interest | $ 6,000 | ||||||||||||||||
Issued warrant | 10,000,000 | ||||||||||||||||
Schutte | AD Pharma Amended Agreement | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Aggregate principal of promissory notes and accrued interest | $ 6,000 | ||||||||||||||||
Issued warrant | 10,000,000 | ||||||||||||||||
Subsequent event | AD Pharma Amended Agreement | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 200 | $ 200 | $ 200 | ||||||||||||||
Subsequent event | Abuse Deterrent Pharma, LLC | AD Pharma Amended Agreement | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 200 | $ 200 | $ 200 | $ 200 | |||||||||||||
MainPointe - related party (Nexafed) | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 2,500 | ||||||||||||||||
Licensing Agreement, Royalty Percentage | 7.50% | ||||||||||||||||
License Agreement Option Products Description | In addition, MainPointe has the option to add to the MainPointe Agreement certain additional products, or Option Products, containing PSE and utilizing the Impede Technology for a fee of $500 thousand per product (for all product strengths). Such Option Products include the product candidate Loratadine with pseudoephedrine. If the territory has been expanded prior to the exercise of a product option, the option fee will be increased to $750 thousand per product. If the territory is expanded after the payment of the $500 thousand product option fee, a one-time $250 thousand fee will be due for each product. If a third party is interested in developing or licensing rights to an Option Product, MainPointe must exercise its option for that product or its option rights for such product will terminate. | ||||||||||||||||
MainPointe - related party (Nexafed) | UNITED KINGDOM | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 1,000 | ||||||||||||||||
MainPointe - related party (Nexafed) | JAPAN | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 500 | ||||||||||||||||
MainPointe - related party (Nexafed) | South Korea | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 250 | ||||||||||||||||
Kempharm Agreement [Member] | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Monthly license payment receivable | $ 3,500 | ||||||||||||||||
Kempharm Agreement [Member] | Minimum | |||||||||||||||||
License Development and Commercialization Agreement [Line Items] | |||||||||||||||||
Additional Upfront Payment Receivable | $ 1,000 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Royalty revenues | $ 3 | $ 34 | $ 35 | $ 67 |
Assertio (Oxaydo) | ||||
Royalty revenues | 3 | 31 | 33 | 61 |
MainPointe - related party (Nexafed) | ||||
Royalty revenues | $ 0 | $ 3 | $ 2 | $ 6 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) - USD ($) $ in Thousands | Aug. 04, 2021 | Jul. 08, 2021 | Jul. 01, 2021 | Jun. 28, 2019 | Oct. 09, 2015 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 29, 2020 | Jul. 31, 2021 |
Contract Balance And Performance Obligations description | The Company had no contract assets and contract liability balances under the license and collaboration agreements at either June 30, 2021 or 2020. | ||||||||||||
Monthly license payment receivable | $ 5,000 | ||||||||||||
Product sales return allowance liability | $ 0 | $ 223 | $ 0 | $ 223 | |||||||||
Sales return allowance liability | 0 | 0 | |||||||||||
License fees received | $ 600 | $ 1,050 | $ 1,200 | $ 2,100 | |||||||||
AD Pharma Amended Agreement | |||||||||||||
Monthly license payment receivable | $ 350 | $ 350 | $ 200 | ||||||||||
AD Pharma Amended Agreement | Subsequent event | |||||||||||||
Monthly license payment receivable | $ 200 | $ 200 | $ 200 | ||||||||||
Abuse Deterrent Pharma, LLC | AD Pharma Amended Agreement | |||||||||||||
Monthly license payment receivable | $ 600 | $ 600 | |||||||||||
Reimbursable development expense | $ 97 | ||||||||||||
Abuse Deterrent Pharma, LLC | AD Pharma Amended Agreement | Subsequent event | |||||||||||||
Monthly license payment receivable | $ 200 | $ 200 | $ 200 | $ 200 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,508 | $ 2,509 |
Less: accumulated depreciation | (2,047) | (2,025) |
Net property, plant and equipment | 461 | 484 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,273 | 1,273 |
Scientific equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 597 | 597 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Total | 105 | 106 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 274 | 274 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 162 | 162 |
Other personal property | ||
Property, Plant and Equipment [Line Items] | ||
Total | 70 | 70 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 27 | $ 27 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | ||||
Depreciation | $ 11 | $ 14 | $ 23 | $ 29 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ACCRUED EXPENSES | ||
Cost sharing expenses under license agreement | $ 428 | $ 428 |
Other fees and services | 22 | 24 |
Payroll, payroll taxes and benefits | 48 | 8 |
Professional services | 141 | 117 |
Financed premiums on insurance policies | 0 | 28 |
Property taxes | 4 | 9 |
Franchise taxes | 30 | 17 |
Total | $ 673 | $ 631 |
DEBT - Additional Information (
DEBT - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 09, 2021 | Mar. 16, 2021 | Jun. 28, 2019 | Jun. 27, 2019 | Dec. 31, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 27, 2019 | Dec. 31, 2018 | Jul. 21, 2021 | Dec. 31, 2020 | Apr. 13, 2020 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||||||||||||||
Common shares exercise price | $ 2.52 | $ 0.01 | |||||||||||||
Schutte | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount borrowed from related party | $ 650 | $ 4,350 | |||||||||||||
Debt instrument principal amount | $ 5,000 | ||||||||||||||
Proceeds from Issuance of Long-term Debt | 725 | $ 650 | $ 4,350 | ||||||||||||
Aggregate principal of promissory notes and accrued interest | $ 6,000 | ||||||||||||||
Debt instrument, interest rate, stated percentage | 7.50% | ||||||||||||||
Common shares exercise price | $ 0.01 | ||||||||||||||
Principal and interest converted shares | 37,500,000 | ||||||||||||||
Issued warrant | 10,000,000 | ||||||||||||||
Share Price | $ 0.16 | ||||||||||||||
Schutte Note | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from Issuance of Long-term Debt | $ 725 | ||||||||||||||
Aggregate principal of promissory notes and accrued interest | $ 6,000 | ||||||||||||||
Debt instrument, interest rate, stated percentage | 7.50% | ||||||||||||||
Common stock warrant exercisable outstanding, shares | 6,000,000 | ||||||||||||||
Common shares exercise price | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Principal and interest converted shares | 37,500,000 | ||||||||||||||
Issued warrant | 10,000,000 | 10,000,000 | |||||||||||||
Share Price | $ 0.16 | ||||||||||||||
Interest expense | $ 87 | $ 113 | $ 200 | $ 225 | |||||||||||
1st PPP Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument principal amount | $ 269 | ||||||||||||||
2nd PPP Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument principal amount | $ 266 | ||||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||||||
Loan term | 5 years | ||||||||||||||
Subsequent event | 1st PPP Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loan | $ 269 | ||||||||||||||
AD Pharma Amended Agreement | Schutte | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal of promissory notes and accrued interest | $ 6,000 | ||||||||||||||
Issued warrant | 10,000,000 | ||||||||||||||
AD Pharma Amended Agreement | Abuse Deterrent Pharma, LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal and interest converted shares | 42,984,375 | ||||||||||||||
Conversion received | $ 6,000 | ||||||||||||||
Unpaid interest | $ 877 | ||||||||||||||
Acura Pharmaceuticals Inc [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ownership percentage | 66.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Aug. 04, 2021 | Jul. 08, 2021 | Jul. 01, 2021 | Jun. 09, 2021 | Jun. 28, 2019 | Jun. 27, 2019 | Dec. 31, 2018 | Oct. 09, 2015 | Jul. 31, 2017 | Mar. 31, 2017 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 29, 2020 | Jul. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2019 |
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number Of Common Stock Need To Hold To Designate As Director | 600,000 | |||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.52 | $ 0.01 | ||||||||||||||||||
Warrant to purchase shares of common stock | 60,000 | 10,000,000 | ||||||||||||||||||
Class Of Warrants Or Rights, Expiry Period | 5 years | |||||||||||||||||||
Proceeds from License Fees Received | $ 5,000,000 | |||||||||||||||||||
Acura Pharmaceuticals Inc [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 66.00% | |||||||||||||||||||
AD Pharma Amended Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Proceeds from License Fees Received | $ 350,000 | $ 350,000 | $ 200,000 | |||||||||||||||||
Subsequent event | AD Pharma Amended Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Proceeds from License Fees Received | $ 200,000 | $ 200,000 | $ 200,000 | |||||||||||||||||
MainPointe - related party (Nexafed) | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Licensing Agreement, Royalty Percentage | 7.50% | |||||||||||||||||||
Proceeds from License Fees Received | $ 2,500,000 | |||||||||||||||||||
MainPointe - related party (Nexafed) | Royalty | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Royalty revenues | $ 0 | $ 3,000 | $ 2,000 | $ 6,000 | ||||||||||||||||
Investor | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Warrant to purchase shares of common stock | 1,782,531 | |||||||||||||||||||
Investor | Private Placement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Sale of Stock, Consideration Received on Transaction | $ 4,000,000 | |||||||||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | 8,912,655 | |||||||||||||||||||
Sale of Stock, Price Per Share | $ 0.4488 | |||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.528 | |||||||||||||||||||
Sale Of Stock, Issue Price Description | 85% | |||||||||||||||||||
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 495,000 | 495,000 | ||||||||||||||||||
Proceeds from Issuance of Warrants | $ 4,000,000 | |||||||||||||||||||
Warrant to purchase shares of common stock | 1,782,532 | |||||||||||||||||||
Schutte | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Aggregate principal of promissory notes and accrued interest | $ 6,000,000 | |||||||||||||||||||
Fixed interest rate | 7.50% | |||||||||||||||||||
Share Price | $ 0.16 | |||||||||||||||||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 10,000,000 | |||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | |||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 37,500,000 | |||||||||||||||||||
Proceeds from Issuance of Long-term Debt | $ 725,000 | $ 650,000 | $ 4,350,000 | |||||||||||||||||
Schutte | AD Pharma Amended Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Aggregate principal of promissory notes and accrued interest | $ 6,000,000 | |||||||||||||||||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 10,000,000 | |||||||||||||||||||
Abuse Deterrent Pharma, LLC | AD Pharma Amended Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 42,984,375 | |||||||||||||||||||
Proceeds from License Fees Received | $ 600,000 | $ 600,000 | ||||||||||||||||||
Reimbursable Research And Development Expense | $ 97,000 | |||||||||||||||||||
Debt Conversion, Original Debt, Amount | $ 6,000,000 | |||||||||||||||||||
Unpaid interest | $ 877,000 | |||||||||||||||||||
Abuse Deterrent Pharma, LLC | Subsequent event | AD Pharma Amended Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Proceeds from License Fees Received | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | ||||||||||||||||
Abuse Deterrent Pharma, LLC | MainPointe - related party (Nexafed) | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Option product exercise price waived if the exercise of the option occurred by five years | $ 500,000 | |||||||||||||||||||
Period to waive option product exercise price | 5 years |
COMMON STOCK PURCHASE WARRANT_2
COMMON STOCK PURCHASE WARRANTS - Warrant Activity (Details) - Common stock purchase warrants - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Options | ||
Number of Options Outstanding, beginning | 11,782 | 11,842 |
Number of Options, Issued | 0 | 0 |
Number of Options, Exercised | 0 | 0 |
Number of Options, Expired | 0 | 0 |
Number of Options, Modification | 0 | 0 |
Number of Options Outstanding, ending | 11,782 | 11,842 |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, beginning | $ 0.09 | $ 0.10 |
Weighted Average Exercise Price, Issued | 0 | 0 |
Weighted Average Exercise Price, Exercised | 0 | 0 |
Weighted Average Exercise Price, Expired | 0 | 0 |
Weighted Average Exercise Price, Modification | 0 | 0 |
Weighted Average Exercise Price, ending | $ 0.09 | $ 0.10 |
COMMON STOCK PURCHASE WARRANT_3
COMMON STOCK PURCHASE WARRANTS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |||
Jun. 30, 2019 | Jul. 31, 2017 | Dec. 31, 2020 | Jun. 28, 2019 | |
Class of Warrant or Right [Line Items] | ||||
Warrant to purchase shares of common stock | 10,000,000 | 60,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | $ 2.52 | ||
Warrants expiration term | 5 years | |||
Class Of Warrant Or Right Term | 5 years | |||
Stock Issued During Period, Value, New Issues | $ 4,000 | |||
Private Placement | ||||
Class of Warrant or Right [Line Items] | ||||
Stock Issued During Period, Value, New Issues | $ 495 | |||
Investor | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant to purchase shares of common stock | 1,782,531 | |||
Investor | Private Placement | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant to purchase shares of common stock | 1,782,532 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.528 | |||
Schutte | ||||
Class of Warrant or Right [Line Items] | ||||
Shares of warrant assigned and transferred | 10,000,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | |||
Amount allocated to warrant | $ 1,145 |
SHARE-BASED COMPENSATION EXPE_3
SHARE-BASED COMPENSATION EXPENSE - Non-Cash Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total Stock Compensation | ||||
Allocated Share-based Compensation Expense | $ 63 | $ 18 | $ 63 | $ 33 |
Research and development expense: | ||||
Total Stock Compensation | ||||
Allocated Share-based Compensation Expense | 0 | 0 | ||
Research and development expense: | Stock option awards | ||||
Total Stock Compensation | ||||
Allocated Share-based Compensation Expense | 0 | 0 | ||
Research and development expense: | RSU | ||||
Total Stock Compensation | ||||
Allocated Share-based Compensation Expense | 0 | 0 | ||
General and administrative expense: | ||||
Total Stock Compensation | ||||
Allocated Share-based Compensation Expense | 63 | 18 | 63 | 33 |
General and administrative expense: | Stock option awards | ||||
Total Stock Compensation | ||||
Allocated Share-based Compensation Expense | 0 | 0 | ||
General and administrative expense: | RSU | ||||
Total Stock Compensation | ||||
Allocated Share-based Compensation Expense | $ 63 | $ 18 | $ 63 | $ 33 |
SHARE-BASED COMPENSATION EXPE_4
SHARE-BASED COMPENSATION EXPENSE - Stock Option plan activity (Details) - Stock Option Plan - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding, beginning | 1,254 | 1,356 |
Number of Options, Granted | 0 | 0 |
Number of Options, Exercised | (80) | 0 |
Number of Options, Forfeited | 0 | 0 |
Number of Options, Expired | (12) | (12) |
Number of Options Outstanding, ending | 1,162 | 1,344 |
Number of Options exercisable | 1,162 | 1,344 |
Weighted Average Exercise Price, beginning | $ 3.46 | $ 4.45 |
Weighted Average Exercise Price, Granted | 0 | 0 |
Weighted Average Exercise Price, Exercised | 0.15 | 0 |
Weighted Average Exercise Price, Forfeited | 0 | 0 |
Weighted Average Exercise Price, Expired | 17.30 | 27.35 |
Weighted Average Exercise Price, ending | 3.55 | 4.24 |
Weighted Average Exercise Price, Options exercisable | $ 3.55 | $ 4.24 |
SHARE-BASED COMPENSATION EXPE_5
SHARE-BASED COMPENSATION EXPENSE - Summary of RSU Plan (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock Units | ||
Share based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning | 839 | 1,017 |
Granted | 267 | 219 |
Distributed | (447) | (397) |
Vested | 0 | 0 |
Forfeited | 0 | 0 |
Outstanding, ending | 659 | 839 |
Vested Restricted Stock Units (RSUs) | ||
Share based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning | 839 | 1,017 |
Granted | 0 | 0 |
Distributed | (447) | (397) |
Vested | 133 | 110 |
Forfeited | 0 | 0 |
Outstanding, ending | 525 | 730 |
SHARE-BASED COMPENSATION EXPE_6
SHARE-BASED COMPENSATION EXPENSE- Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||||||
May 31, 2021 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2021 | Nov. 30, 2017 | |
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Aggregate intrinsic value of the option awards vested | $ 110,000 | |||||||
RSU | Director | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 35,000 | |||||||
RSU | Restricted Stock Unit Award Plan, 2021 [Member] | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,230,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,500,000 | |||||||
RSU | Restricted Stock Unit Award Plan, 2021 [Member] | Four Non Employee Directors | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share Based Compensation, Non Employee Services Transaction, Cash Settlement, Percentage | 40.00% | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 66,000 | |||||||
RSU | Restricted Stock Unit Award Plan, 2021 [Member] | Four Non Employee Directors | Vesting at the end of calendar quarter June 30, 2021 | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||
RSU | Restricted Stock Unit Award Plan, 2021 [Member] | Four Non Employee Directors | Vesting at each end of calendar quarter in 2021 thereafter. | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||
2017 Restricted Stock Unit Award Plan | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | stock, for up to 40% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 488,000 | 200,000 | ||||||
2017 Restricted Stock Unit Award Plan | Employees | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 228,000 | 64,000 | ||||||
2017 Restricted Stock Unit Award Plan | Employees | Distributed And Settled In Common Stock | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 185,000 | 54,000 | ||||||
2017 Restricted Stock Unit Award Plan | Employees | Settlement For Purchase Price | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 43,000 | 10,000 | ||||||
2017 Restricted Stock Unit Award Plan | Four Non Employee Directors | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | stock, for up to 40% | stock, for up to 40% | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 55,000 | 83,000 | ||||||
Non-employee director | 2017 Restricted Stock Unit Award Plan | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 333,000 | |||||||
Non-employee director | 2017 Restricted Stock Unit Award Plan | Settled In Cash | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 33,000 | |||||||
Non-employee director | 2017 Restricted Stock Unit Award Plan | Distributed And Settled In Common Stock | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 219,000 | 296,000 | 267,000 | |||||
Non-employee director | 2017 Restricted Stock Unit Award Plan | Settlement For Purchase Price | ||||||||
Employee Benefit Plans Disclosure [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 4,000 |
LEASES - Additional Information
LEASES - Additional Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Lessee, Finance Lease, Description [Abstract] | |
Lease term | 24 months |
Finance lease equal monthly payment | $ 3 |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Finance lease right of use | $ 66 | $ 0 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Finance lease right of use | Finance lease right of use |
Liabilities | ||
Finance lease liability - current | $ 33 | $ 0 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Finance lease liability - current | Finance lease liability - current |
Finance lease liability - noncurrent | $ 33 | $ 0 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Finance lease liability - noncurrent | Finance lease liability - noncurrent |
Finance Lease, Liability | $ 66 | $ 0 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | Jun. 09, 2021 | Jun. 30, 2021 |
Income Tax Disclosure [Line Items] | ||
Federal NOLs | $ 138,000 | |
Operating Loss Carryforwards, Expiration Term | 20 years | |
Operating Loss Carry Forwards Expiration Year | 2037 | |
Tax Credit Carryforward, Amount | $ 150 | |
AD Pharma Amended Agreement | Abuse Deterrent Pharma, LLC | ||
Income Tax Disclosure [Line Items] | ||
Debt Conversion, Original Debt, Amount | $ 6,000 | |
Unpaid interest | $ 877 | |
Principal and interest converted shares | 42,984,375 |
NET INCOME (LOSS) PER SHARE - A
NET INCOME (LOSS) PER SHARE - Additional Information (Details) - $ / shares shares in Millions | Jun. 28, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.52 | $ 0.01 | ||
Schutte Note | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 10 | 10 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | $ 0.01 |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net loss per share - basic | ||||
Numerator: net income (loss) | $ (387) | $ 308 | $ (646) | $ (287) |
Denominator (weighted average): | ||||
Common shares | 32,496 | 21,650 | 27,314 | 21,650 |
RSUs - vested | 393 | 654 | 393 | 637 |
Common stock purchase warrants | 10,000 | 10,000 | 10,000 | 10,000 |
Basic weighted average shares outstanding | 42,889 | 32,304 | 37,707 | 32,287 |
Basic net income (loss) per share | $ (0.01) | $ 0.01 | $ (0.02) | $ (0.01) |
Net loss per share - assuming dilution | ||||
Numerator: net income (loss) | $ (387) | $ 308 | $ (646) | $ (287) |
Denominator (weighted average): | ||||
Common shares | 32,496 | 21,650 | 27,314 | 21,650 |
RSUs | 393 | 717 | 393 | 637 |
Stock options | 0 | 115 | ||
Common stock purchase warrants | 10,000 | 10,000 | 10,000 | 10,000 |
Diluted weighted average shares outstanding | 42,889 | 32,482 | 37,707 | 32,287 |
Diluted net income (loss) per share | $ (0.01) | $ 0.01 | $ (0.02) | $ (0.01) |
Excluded securities (non-weighted): | ||||
Total excluded potentially dilutive shares | 3,024 | 40,616 | 3,024 | 40,839 |
RSU | ||||
Excluded securities (non-weighted): | ||||
Total excluded potentially dilutive shares | 80 | 153 | 80 | 153 |
Stock option awards | ||||
Excluded securities (non-weighted): | ||||
Total excluded potentially dilutive shares | 1,162 | 1,121 | 1,162 | 1,344 |
Common stock purchase warrants | ||||
Excluded securities (non-weighted): | ||||
Total excluded potentially dilutive shares | 1,782 | 1,842 | 1,782 | 1,842 |
Convertible loan | ||||
Excluded securities (non-weighted): | ||||
Total excluded potentially dilutive shares | 0 | 37,500 | 37,500 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Details) - USD ($) $ in Thousands | Aug. 04, 2021 | Jul. 08, 2021 | Jul. 01, 2021 | Jun. 28, 2019 | Oct. 09, 2015 | Apr. 29, 2020 | Jul. 31, 2021 | Jul. 21, 2021 |
SUBSEQUENT EVENT | ||||||||
Monthly license payment receivable | $ 5,000 | |||||||
AD Pharma Amended Agreement | ||||||||
SUBSEQUENT EVENT | ||||||||
Monthly license payment receivable | $ 350 | $ 350 | $ 200 | |||||
Subsequent event | AD Pharma Amended Agreement | ||||||||
SUBSEQUENT EVENT | ||||||||
Monthly license payment receivable | $ 200 | $ 200 | $ 200 | |||||
Subsequent event | 1st PPP Loan | ||||||||
SUBSEQUENT EVENT | ||||||||
Debt Instrument, Loan Forgiven, Amount | $ 269 |