Balance Sheet Account Detail | BALANCE SHEET ACCOUNT DETAIL The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below: (a) Cash and Cash Equivalents and Marketable Securities As of September 30, 2017 and December 31, 2016 , our holdings included in “cash and cash equivalents” and “marketable securities” were at major financial institutions. Our investment policy requires that investments in marketable securities be in only highly-rated instruments, which are primarily U.S. treasury bills or U.S. treasury-backed securities, and limited investments in securities of any single issuer. We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation ("FDIC") and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks in our portfolio by investing in highly liquid, highly rated instruments, and limit investing in long-term maturity instruments. The carrying amount of our equity securities, money market funds, Bank CDs, and mutual funds approximates their fair value (utilizing Level 1 or Level 2 inputs – see Note 2(xiii) ) because of our ability to immediately convert these instruments into cash with minimal expected change in value. The following is a summary of our presented “cash and cash equivalents” and “marketable securities”: Marketable Securities Cost Gross Gross Estimated Cash and Cash Current Long September 30, 2017 Bank deposits $ 21,574 $ — $ — $ 21,574 $ 21,574 $ — $ — Money market funds 225,894 — — 225,894 225,894 — — Bank certificates of deposits 248 — — 248 — 248 — Total cash and cash equivalents and marketable securities $ 247,716 $ — $ — $ 247,716 $ 247,468 $ 248 $ — December 31, 2016 Bank deposits $ 23,915 $ — $ — $ 23,915 $ 23,915 $ — $ — Money market funds 128,563 — — 128,563 128,563 — — Bank certificates of deposits 5,991 — — 5,991 5,744 247 — Total cash and cash equivalents and marketable securities $ 158,469 $ — $ — $ 158,469 $ 158,222 $ 247 $ — As of September 30, 2017 , none of these securities had been in a continuous unrealized loss position longer than one year. (b) Property and Equipment, Net of Accumulated Depreciation “Property and equipment, net of accumulated depreciation” consist of the following: September 30, 2017 December 31, 2016 Computer hardware and software $ 2,933 $ 2,550 Laboratory equipment 622 622 Office furniture 218 211 Leasehold improvements 2,938 2,912 Property and equipment, at cost 6,711 6,295 (Less): Accumulated depreciation (6,096 ) (5,846 ) Property and equipment, net of accumulated depreciation $ 615 $ 449 Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the nine months ended September 30, 2017 and 2016 , was $0.2 million and $0.4 million , respectively. New Lease Accounting Standard In February 2016, the FASB issued ASU 2016-02 , which creates Topic 842 , Leases under the FASB Accounting Standards Codification, and which will supersede Topic 840 , Leases. ASU 2016-02 is effective for us beginning January 1, 2019, and mandates a "modified retrospective" transition method. This new standard requires lease assets and lease liabilities (including for operating leases) to be presented on the balance sheet at their "gross amount" and requires additional disclosures regarding lease arrangements. We are currently assessing the impact this guidance will have on our consolidated financial statements, though we currently do not expect it to be significant. We presently do not have any capital lease arrangements, but have several operating lease agreements. These lease agreements primarily relate to our principal executive office in Henderson, Nevada and our administrative and research and development facility in Irvine, California. (c) Inventories “Inventories” consist of the following: September 30, 2017 December 31, 2016 Raw materials $ 1,683 $ 2,991 Work-in-process 7,457 7,838 Finished goods 3,439 2,305 (Less:) Non-current portion of inventories included within "other assets" * (3,596 ) (4,419 ) Inventories $ 8,983 $ 8,715 * The "non-current" portion of inventories is presented within "other assets" in the accompanying Condensed Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 , respectively. This value of $3.6 million at September 30, 2017 represents product that we expect to sell beyond September 30, 2018 . (d) Prepaid Expenses and Other Assets “Prepaid expenses and other assets” consist of the following: September 30, 2017 December 31, 2016 Prepaid insurance $ 185 $ 721 Inventory other 712 1,458 Other miscellaneous prepaid operating expenses 2,060 1,751 Prepaid expenses and other assets $ 2,957 $ 3,930 (e) Other Receivables “Other receivables” consist of the following: September 30, 2017 December 31, 2016 FOLOTYN milestone for first sale in Japan (Note 16(b)(vii) ) 2,000 — CASI note - short term* 1,515 — Other miscellaneous receivables** 1,033 239 Employee receivables*** 857 — Reimbursements due from development partners for incurred research and development expenses 418 1,796 Insurance receivable 53 500 Receivable for contracted sales and marketing services ( Note 13 ) — 1,831 Income tax receivable — 1,388 Other receivables $ 5,876 $ 5,754 * This full balance was prospectively reclassified beginning March 31, 2017 to "other receivables" (presented within current assets on the accompanying Condensed Consolidated Balance Sheets) from "other assets" (presented within non-current assets) due to this note's maturity date - see Note 10 . ** As of September 30, 2017, this balance is inclusive of $0.6 million of Medicaid rebate credits to be applied against future invoices for each respective state program. *** This balance represents amounts due to us for exercises of stock options by employees. These exercises were executed by September 30, 2017, but the cash receipts did not post to our bank account until October 2017. (f) Intangible Assets and Goodwill “Intangible assets, net of accumulated amortization and impairment charges” consist of the following: September 30, 2017 Historical Accumulated Foreign Impairment Net Amount Full Remaining MARQIBO IPR&D (NHL and other novel indications) $ 17,600 $ — $ — $ — $ 17,600 n/a n/a EVOMELA distribution rights (1) 7,700 (888 ) — — 6,812 156 138 BELEODAQ distribution rights 25,000 (6,094 ) — — 18,906 160 121 MARQIBO distribution rights 26,900 (16,102 ) — — 10,798 81 30 FOLOTYN distribution rights (2) 118,400 (50,843 ) — — 67,557 152 62 ZEVALIN distribution rights – U.S. 41,900 (36,688 ) — — 5,212 123 18 ZEVALIN distribution rights – Ex-U.S. 23,490 (16,579 ) (2,763 ) — 4,148 96 30 FUSILEV distribution rights (3) 16,778 (9,618 ) — (7,160 ) — 56 0 FOLOTYN out-license (4) 27,900 (13,874 ) — (1,023 ) 13,003 110 58 Total intangible assets $ 305,668 $ (150,686 ) $ (2,763 ) $ (8,183 ) $ 144,036 (1) The FDA approval of EVOMELA in March 2016 triggered a $6 million payment due to CyDex Pharmaceuticals, Inc. (a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated ("Ligand")). This event also resulted in a reclassification of our $7.7 million "EVOMELA IPR&D" to "EVOMELA distribution rights" due to our ability to begin its commercialization with this FDA approval. Amortization commenced on April 1, 2016, in accordance with our capitalization policy for intangible assets. (2) Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g) ). (3) On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz Inc. began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the then remaining net book value of FUSILEV distribution rights. (4) On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma International Corporation Limited ("Mundipharma"). As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013. December 31, 2016 Historical Accumulated Foreign Impairment Net Amount MARQIBO IPR&D (NHL and other novel indications) $ 17,600 $ — $ — $ — $ 17,600 EVOMELA distribution rights 7,700 (444 ) — — 7,256 BELEODAQ distribution rights 25,000 (4,688 ) — — 20,312 MARQIBO distribution rights 26,900 (12,863 ) — — 14,037 FOLOTYN distribution rights 118,400 (41,036 ) — — 77,364 ZEVALIN distribution rights – U.S. 41,900 (34,083 ) — — 7,817 ZEVALIN distribution rights – Ex-U.S. 23,490 (13,649 ) (5,038 ) — 4,803 FUSILEV distribution rights 16,778 (9,618 ) — (7,160 ) — FOLOTYN out-license 27,900 (11,832 ) — (1,023 ) 15,045 Total intangible assets $ 305,668 $ (128,213 ) $ (5,038 ) $ (8,183 ) $ 164,234 Intangible asset amortization and impairment expense recognized during the nine months ended September 30, 2017 and 2016 was $20.7 million and $19.1 million , respectively. Estimated intangible asset amortization expense for the remainder of 2017 and the five succeeding fiscal years and thereafter is as follows: Years Ending December 31, Remainder of 2017 $ 6,930 2018 27,719 2019 25,114 2020 19,761 2021 18,266 2022 15,882 2023 and thereafter 12,764 $ 126,436 “Goodwill” is comprised of the following: September 30, 2017 December 31, 2016 Acquisition of Talon (MARQIBO rights) $ 10,526 $ 10,526 Acquisition of ZEVALIN Ex-U.S. distribution rights 2,525 2,525 Acquisition of Allos (FOLOTYN rights) 5,346 5,346 Foreign currency exchange translation effects (266 ) (511 ) Goodwill $ 18,131 $ 17,886 (g) Other Assets “Other assets” are comprised of the following: September 30, 2017 December 31, 2016 Equity securities (see Note 10 )* $ 17,751 $ 11,533 Promissory note receivable - long term (see Note 10 )** — 1,510 Research & development supplies and other 267 224 Executive officer life insurance – cash surrender value 14,122 11,863 Inventories - non-current portion 3,596 4,419 Other assets $ 35,736 $ 29,549 * These equity securities in CASI were excluded from “marketable securities” (see Note 3(a) ) due to our intent to hold them for at least one year beyond September 30, 2017 . The unrealized gain on these "available-for-sale" equity securities are recognized as an increase to "other assets" and "accumulated deficit" (as a component of "other comprehensive income") within the accompanying Condensed Consolidated Balance Sheets and totaled $3.9 million , net of income tax, for the nine months ended September 30, 2017 . Effective January 1, 2018, under the new requirements of ASU 2016-01 , Recognition and Measurement of Financial Assets and Liabilities , we will recognize our unrealized holding gains and losses on our "available-for-sale" equity securities within "other (expense) income" on the Consolidated Statement of Operations (rather than through "other comprehensive income" on the Consolidated Statements of Comprehensive Loss). ** This note was reclassified to "other receivables" from "other assets" beginning March 31, 2017 due to its March 2018 maturity date. (h) Accounts Payable and Other Accrued Liabilities “Accounts payable and other accrued liabilities” are comprised of the following : September 30, 2017 December 31, 2016 Trade accounts payable and other accrued liabilities $ 25,464 $ 30,488 Accrued rebates 8,120 8,350 Accrued product royalty 4,610 4,723 Allowance for returns 3,458 2,309 Accrued data and distribution fees 4,344 4,222 Accrued GPO administrative fees 449 384 Accrued inventory management fee 1,347 540 Allowance for chargebacks 1,843 1,467 Accounts payable and other accrued liabilities $ 49,635 $ 52,483 Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets for GTN estimates (see Note 2(i) ) were as follows: Rebates and Data and Returns Balance as of December 31, 2015 $ 20,167 $ 3,386 $ 1,394 Add: provisions 98,317 14,979 2,123 (Less): credits or actual allowances (108,667 ) (13,219 ) (1,208 ) Balance as of December 31, 2016 9,817 5,146 2,309 Add: provisions 85,602 15,495 2,164 (Less): credits or actual allowances (85,456 ) (14,501 ) (1,015 ) Balance as of September 30, 2017 $ 9,963 $ 6,140 $ 3,458 (i) Deferred Revenue Deferred revenue (current and non-current) is comprised of the following: September 30, 2017 December 31, 2016 ZEVALIN out-license deferred revenue in Asia/other territories (see Note 11 ) $ — $ 1,255 EVOMELA deferred revenue* 2,731 1,887 ZEVALIN out-license in India territory (see Note 16(b)(iii) ) 376 369 Deferred revenue $ 3,107 $ 3,511 * We commercialized EVOMELA beginning in April 2016, and have deferred revenue recognition (see Note 2(i)(a) ) for any product shipped to our distributors, but not ordered and received by end-users as of September 30, 2017 and December 31, 2016 . This deferral is a result of our present inability to estimate future customer returns and rebate levels for this recently launched product. (j) Other Long-Term Liabilities "Other long-term liabilities" are comprised of the following: September 30, 2017 December 31, 2016 Accrued executive deferred compensation $ 10,250 $ 8,352 Deferred rent (non-current portion) 83 167 Clinical study holdbacks, non-current 56 47 Other tax liabilities 738 738 Royalty liability — 300 Other long-term liabilities $ 11,127 $ 9,604 |