Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Eton Pharmaceuticals, Inc. | |
Entity Central Index Key | 0001710340 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,956,033 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 10,270 | $ 12,066 |
Accounts receivable, net | 473 | |
Inventory | 1,709 | 380 |
Prepaid expenses and other current assets | 844 | 2,090 |
Total current assets | 12,823 | 15,009 |
Property and equipment, net | 938 | 1,117 |
Intangible assets, net | 650 | 725 |
Operating lease right-of-use assets, net | 96 | 160 |
Other long-term assets, net | 52 | 61 |
Total assets | 14,559 | 17,072 |
Current liabilities: | ||
Accounts payable | 1,953 | 575 |
PPP loan, current portion | 159 | |
Accrued liabilities | 627 | 1,388 |
Total current liabilities | 2,739 | 1,963 |
Long-term debt, net of discount and including accrued fees | 4,587 | 4,540 |
Long-term portion of PPP loan | 202 | |
Operating lease liabilities, net of current portion | 19 | |
Total liabilities | 7,528 | 6,522 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity | ||
Common stock, $0.001 par value; 50,000,000 shares authorized as of June 30, 2020 and December 31, 2019; 20,956,033 and 17,877,486 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 21 | 18 |
Additional paid-in capital | 84,977 | 74,720 |
Accumulated deficit | (77,967) | (64,188) |
Total stockholders' equity | 7,031 | 10,550 |
Total liabilities and stockholders' equity | $ 14,559 | $ 17,072 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 20,956,033 | 17,877,486 |
Common stock, shares outstanding | 20,956,033 | 17,877,486 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Total revenues | $ 20 | $ 119 | $ 500 | |
Cost of product sales | 28 | 130 | ||
Gross (loss) profit | (8) | (11) | 500 | |
Operating expenses: | ||||
Research and development | 1,609 | 1,439 | 7,877 | 7,904 |
General and administrative | 2,921 | 1,910 | 5,531 | 3,499 |
Total operating expenses | 4,530 | 3,349 | 13,408 | 11,403 |
Loss from operations | (4,538) | (3,349) | (13,419) | (10,903) |
Other (expense) income: | ||||
Interest and other (expense) income, net | (192) | 100 | (360) | 244 |
Loss before income tax expense | (4,730) | (3,249) | (13,779) | (10,659) |
Income tax expense | ||||
Net Loss | $ (4,730) | $ (3,249) | $ (13,779) | $ (10,659) |
Net loss per share, basic and diluted | $ (0.23) | $ (0.18) | $ (0.70) | $ (0.61) |
Weighted average number of common shares outstanding, basic and diluted | 21,005 | 17,733 | 19,574 | 17,618 |
Product Sales [Member] | ||||
Revenues: | ||||
Total revenues | $ 20 | $ 119 | ||
Licensing Revenue [Member] | ||||
Revenues: | ||||
Total revenues | $ 500 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2018 | $ 18 | $ 72,153 | $ (45,868) | $ 26,303 |
Balance, shares at Dec. 31, 2018 | 17,607,928 | |||
Stock-based compensation | 850 | 850 | ||
Stock-based compensation, shares | ||||
Stock option exercises | 77 | 77 | ||
Stock option exercises, shares | 90,000 | |||
Employee stock purchase plan | 128 | 128 | ||
Employee stock purchase plan, shares | 23,083 | |||
Stock warrant exercises | ||||
Stock warrant exercises, shares | 42,034 | |||
Net loss | (10,659) | (10,659) | ||
Balance at Jun. 30, 2019 | $ 18 | 73,208 | (56,527) | 16,699 |
Balance, shares at Jun. 30, 2019 | 17,763,045 | |||
Balance at Mar. 31, 2019 | $ 18 | 72,502 | (53,278) | 19,242 |
Balance, shares at Mar. 31, 2019 | 17,627,928 | |||
Stock-based compensation | 505 | 505 | ||
Stock-based compensation, shares | ||||
Stock option exercises | 73 | 73 | ||
Stock option exercises, shares | 70,000 | |||
Employee stock purchase plan | 128 | 128 | ||
Employee stock purchase plan, shares | 23,083 | |||
Stock warrant exercises | ||||
Stock warrant exercises, shares | 42,034 | |||
Net loss | (3,249) | (3,249) | ||
Balance at Jun. 30, 2019 | $ 18 | 73,208 | (56,527) | 16,699 |
Balance, shares at Jun. 30, 2019 | 17,763,045 | |||
Balance at Dec. 31, 2019 | $ 18 | 74,720 | (64,188) | 10,550 |
Balance, shares at Dec. 31, 2019 | 17,877,486 | |||
Stock-based compensation | 1,079 | 1,079 | ||
Stock-based compensation, shares | 15,190 | |||
Stock option exercises | 97 | 97 | ||
Stock option exercises, shares | 69,878 | |||
Employee stock purchase plan | 64 | 64 | ||
Employee stock purchase plan, shares | 14,005 | |||
Proceeds from sales of common stock, net of offering costs | $ 3 | 7,753 | 7,756 | |
Proceeds from sales of common stock, net of offering costs, shares | 2,600,000 | |||
Issuance of common stock for product candidate licensing rights | 1,264 | 1,264 | ||
Issuance of common stock for product candidate licensing rights, shares | 379,474 | |||
Net loss | (13,779) | (13,779) | ||
Balance at Jun. 30, 2020 | $ 21 | 84,977 | (77,967) | 7,031 |
Balance, shares at Jun. 30, 2020 | 20,956,033 | |||
Balance at Mar. 31, 2020 | $ 21 | 83,836 | (73,237) | 10,620 |
Balance, shares at Mar. 31, 2020 | 20,761,960 | |||
Stock-based compensation | 714 | 714 | ||
Stock-based compensation, shares | 15,190 | |||
Stock option exercises | 66 | 66 | ||
Stock option exercises, shares | 64,878 | |||
Employee stock purchase plan | 64 | 64 | ||
Employee stock purchase plan, shares | 14,005 | |||
Proceeds from sales of common stock, net of offering costs | 297 | 297 | ||
Proceeds from sales of common stock, net of offering costs, shares | 100,000 | |||
Net loss | (4,730) | (4,730) | ||
Balance at Jun. 30, 2020 | $ 21 | $ 84,977 | $ (77,967) | $ 7,031 |
Balance, shares at Jun. 30, 2020 | 20,956,033 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (13,779) | $ (10,659) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 1,079 | 850 |
Common stock issued for product candidate licensing rights | 1,264 | |
Depreciation and amortization | 326 | 178 |
Debt discount amortization | 50 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 473 | |
Inventory | (1,329) | |
Prepaid expenses and other assets | 1,251 | (1,052) |
Accounts payable | 1,378 | (69) |
Accrued liabilities | (783) | (211) |
Net cash used in operating activities | (10,070) | (10,963) |
Cash used in investing activities | ||
Purchases of property and equipment | (4) | (1,030) |
Cash flows from financing activities | ||
Proceeds from sales of common stock, net of offering costs | 7,756 | |
Proceeds from PPP loan | 361 | |
Proceeds from employee stock purchase plan and stock option exercises | 161 | 205 |
Net cash provided by financing activities | 8,278 | 205 |
Change in cash and cash equivalents | (1,796) | (11,788) |
Cash and cash equivalents at beginning of period | 12,066 | 26,735 |
Cash and cash equivalents at end of period | 10,270 | 14,947 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 358 | |
Cash paid for income taxes |
Company Overview
Company Overview | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview | Note 1 — Company Overview Eton Pharmaceuticals, Inc. (“Eton” or the “Company”) was incorporated as a Delaware corporation on April 27, 2017 and was initially set up as a wholly owned subsidiary of Harrow Health, Inc. or “Harrow” (fka Imprimis Pharmaceuticals, Inc.). In June 2017, the Company raised $20,055 in start-up capital through a private sale of preferred stock and a separate management team was then established for Eton with its corporate offices located in Deer Park, Illinois. In November 2018, the Company completed an initial public offering (the “IPO”) and received net proceeds of $21,960, after deducting underwriting discounts and commissions and offering-related expenses. In November 2019, the Company entered into a credit agreement and received net proceeds of $4,750 (see Note 5), and in March and April 2020, Eton received net proceeds of $7,756 from the sale of shares of its common stock (see Note 6). Eton is a specialty pharmaceutical company focused on developing, acquiring, and commercializing innovative products. Eton is primarily focused on hospital injectable and pediatric rare disease products. |
Liquidity Considerations
Liquidity Considerations | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity Considerations | Note 2 — Liquidity Considerations As of June 30, 2020, the Company had an accumulated deficit of $77,967 and for the six months ended June 30, 2020, the Company had net cash used in operating activities of $10,070. To date, the Company has generated limited revenues and has incurred negative cash flows from operating activities since its inception in 2017. The Company received its first product approval from the U.S. Food and Drug Administration (“FDA”), Biorphen®, in October 2019 and currently believes its future revenues and its existing cash and cash equivalents of $10,270 will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next twelve months from the date of issuance of these financial statements. This estimate is based on the Company’s current assumptions, including expected sales for Biorphen and its ability to manage its spending. The Company could use its available capital resources sooner than currently expected, and accordingly, could seek to obtain additional capital through equity financings, make additional drawings under its current credit agreement (see Note 5), the sale of additional debt, or other arrangements. However, there can be no assurance that the Company will be able to raise additional capital if needed or under acceptable terms, if at all. The sale of additional equity may dilute existing stockholders and newly issued shares may contain senior rights and preferences compared to currently outstanding common shares. Issued debt securities may contain covenants and limit the Company’s ability to pay dividends or make other distributions to stockholders. If the Company is not able to achieve significant revenues from product sales and licensing, encounters delays in completing its product development and obtaining regulatory approval for its product candidates, and is unable to obtain such additional financing, its operations would need to be scaled back or discontinued. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3 — Summary of Significant Accounting Policies Basis of Presentation The Company has prepared the accompanying financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Unaudited Interim Financial Information The accompanying interim condensed financial statements are unaudited and have been prepared on the same basis as the audited financial statements and, in the opinion of management, reflect all adjustments necessary for the fair presentation of the Company’s financial position as of June 30, 2020 and the results of its operations and its cash flows for the periods ended June 30, 2020 and 2019. The financial data and other information disclosed in these notes related to the three and six-month periods ended June 30, 2020 and 2019 are also unaudited. The results for the six-month period ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods or any future year or period. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, provisions for uncollectible receivables and sales returns, valuation of inventories, useful lives of assets and the impairment of property and equipment, the accrual of research and development expenses and the valuation of common stock, stock options and warrants. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions. Intangible Assets The Company capitalizes payments it makes for licensed products when the payment is based on FDA approval for the product and the cost is recoverable based on expected future cash flows from the product. The cost is amortized on a straight-line basis over the estimated useful life of the product commencing on the approval date in accordance with Accounting Standards Codification (“ASC”) 350 — Intangibles - Goodwill and Other. To date, a $750 payment related to the approval of the Company’s Biorphen product has been capitalized and that cost is being amortized over five years. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the Company’s statements of operations for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment has been recognized since the Company’s inception in 2017. Revenue Recognition for Contracts with Customers The Company intends to generate its future revenues from direct sales of its approved Biorphen product and other of its products which are in development. In addition, the Company anticipates it will receive revenues from product licensing agreements for which it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party. The Company accounts for contracts with its customers in accordance with ASC 606 — Revenue from Contracts with Customers. ASC 606 applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses whether these options provide a material right to the customer and, if so, they are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. Any amounts received prior to revenue recognition will be recorded as deferred revenue. Amounts expected to be recognized as revenue within the twelve months following the balance sheet date will be classified as current portion of deferred revenue in the Company’s balance sheets. Amounts not expected to be recognized as revenue within the twelve months following the balance sheet date are classified as long-term deferred revenue, net of current portion. Milestone Payments Royalties – Significant Financing Component – The Company sells Biorphen in the U.S. to wholesale pharmaceutical distributors, which then sell the product to hospitals and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual shipments of Biorphen represent performance obligations under each purchase order. The Company uses a third-party logistics (“3PL”) vendor to process and fulfill orders and has concluded it is the principal in the sales to wholesalers because it controls access to the 3PL vendor services rendered and directs the 3PL vendor activities. The Company has no significant obligations to wholesalers to generate pull-through sales. Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when the wholesalers sell Biorphen at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”) and government programs. In addition, the Company pays fees to wholesalers for their distribution services, inventory reporting and chargeback processing. The Company pays GPO fees for administrative services and for access to GPO members and concluded the benefits received in exchange for these fees are not distinct from its sales of Biorphen, and accordingly it applies these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of Biorphen and the Company’s lengthy return period, there may be a significant period of time between when the product is shipped and when the Company issues credits on returned product. The Company estimates the transaction price when it receives each purchase order, taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. The Company has developed estimates for future returns and chargebacks of Biorphen and the impact of the other discounts and fees it pays. When estimating these adjustments to the transaction price, the Company reduces it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known. The Company recognizes revenue from Biorphen product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss, and have an enforceable obligation to pay the Company. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, the Company does not believe they have a significant incentive to return the product. Upon recognition of revenue from product sales of Biorphen, the estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, and GPO fees are included in sales reserves, accrued liabilities and net of accounts receivable. The Company monitors actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts end up differing from the Company’s estimates, it will make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment. In addition, the Company anticipates it will receive revenues from product licensing agreements where it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party. Cost of Product Sales Cost of product sales consists of the profit-sharing fees with the Company’s product licensing and development partners, the purchase costs for finished products from third-party manufacturers and freight and handling/storage costs from the Company’s 3PL logistics service provider. The cost of sales for profit-sharing fees and costs for purchased finished products and the associated inbound freight expense is recorded when the associated product sale revenue is recognized in accordance with the terms of shipment to customers while outbound freight and handling/storage fees charged by the 3PL service provider are expensed as they are incurred. Research and Development Expenses Research and development (“R&D”) expenses include both internal R&D activities and external contracted services. Internal R&D activity expenses include salaries, benefits and stock-based compensation and other costs to support the Company’s R&D operations. External contracted services include product development efforts including certain product licensor milestone payments, clinical trial activities, manufacturing and control-related activities and regulatory costs. R&D expenses are charged to operations as incurred. The Company reviews and accrues R&D expenses based on services performed and relies upon estimates of those costs applicable to the stage of completion of each project. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Upfront payments and milestone payments made for the licensing of technology on products which are not yet approved by the FDA are expensed as R&D in the period in which they are incurred. Milestone payments for FDA-approved products are capitalized and amortized over the expected economic life of the product. Nonrefundable advance payments for goods or services to be received in the future for use in R&D activities are recorded as prepaid expenses and are expensed as the related goods are delivered or the services are performed. Earnings (Loss) Per Share Basic net loss per common share is computed by dividing net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of common and common equivalent shares, such as unvested restricted stock awards (“RSA”), restricted stock units (“RSU’”), stock options and warrants, outstanding during the period. Common stock equivalents (using the treasury stock and “if converted” method) from stock options, unvested RSAs and RSUs, and warrants at June 30, 2020 and 2019 were 3,307,335 and 3,460,950, respectively, and are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. Included in the basic and diluted net loss per share calculation are RSUs awarded to directors that have vested, but the issuance and delivery of the common shares are deferred until the director retires from service as a director. Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC 718 Compensation — Stock Compensation. The guidance under ASC 718 requires companies to estimate the fair value of the stock-based compensation awards on the date of grant and record expense over the related service periods, which are generally the vesting period of the equity awards. The Company estimates the fair value of stock-based option awards using the Black-Scholes-Merton option-pricing model (“BSM”). The BSM requires the input of subjective assumptions, including the expected stock price volatility, the calculation of expected term, forfeitures and the fair value of the underlying common stock on the date of grant, among other inputs. The risk-free interest rate was determined from the implied yields for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options or warrants. Dividends on common stock are assumed to be zero for the BSM valuation of the stock options. The expected term of stock options granted is based on vesting periods and the contractual life of the options. Expected volatilities are based on comparable companies’ historical volatility along with a limited weighting included for the Company’s own volatility subsequent to its IPO, which management believes represents the most accurate basis for estimating expected future volatility under the current conditions. The Company accounts for forfeitures as they occur. Since the IPO in November 2018, the Company has used the closing common stock price on the date of grant for the fair value of the common stock. Fair Value Measurements We measure certain of our assets and liabilities at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value accounting requires characterization of the inputs used to measure fair value into a three-level fair value hierarchy as follows: Level 1 Level 2 Level 3 Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below take into account the market for the Company’s financials, assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, PPP loan and long-term debt obligation. The carrying amounts of these financial instruments, except for the PPP loan and long-term debt obligation, approximate their fair values due to the short-term maturities of these instruments. Based on borrowing rates currently available to the Company, the carrying value of the PPP loan and long-term debt obligation approximate their fair values. Impact of New Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The new guidance removes, modifies, and adds to certain disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The Company adopted the new guidance on January 1, 2020 which did not have a material impact on its financial position or results of operations. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The new guidance removes certain exceptions to the general principles of ASC 740 in order to simplify the complexities of its application. These changes include eliminations to the exceptions for intraperiod tax allocation, recognizing deferred tax liabilities related to outside basis differences, and year-to-date losses in interim periods, among others. The Company adopted the new guidance on January 1, 2020 which did not have a material impact on its financial position or results of operations. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4 – Property and Equipment Property and equipment consist of the following: June 30, December 31, Computer hardware and software $ 174 $ 174 Furniture and fixtures 134 133 Equipment 994 994 Leasehold improvements 155 152 Construction in progress — 9 1,457 1,462 Less: accumulated depreciation (519 ) (345 ) Property and equipment, net $ 938 $ 1,117 Depreciation expense for the three-month periods ended June 30, 2020 and 2019 was $87 and $89, respectively. Depreciation expense for the six-month periods ended June 30, 2020 and 2019 was $174 and $111, respectively. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5 — Long-Term Debt On November 13, 2019, the Company entered into a credit agreement (the “SWK Credit Agreement”) with SWK Holdings Corporation (“SWK”) which provides for up to $10,000 in financing. The Company received proceeds of $5,000 at closing and was able to borrow an additional $5,000 upon the FDA approval of a second product developed by the Company, excluding EM-100. In March 2020, in conjunction with the Company’s Alkindi Sprinkle product licensing agreement (see Note 11) and the Company’s March 2020 sale of additional shares of its common stock (see Note 6), the Company and SWK amended the SWK Credit Agreement. The amendment provides the Company with the option to immediately draw $2,000 and can borrow an additional $3,000 upon the FDA approval of both its EM-100 product candidate and another one of its other product candidates. The term of the SWK Credit Agreement is for five years and borrowings bear interest at a rate of LIBOR 3-month plus 10.0%, subject to a stated LIBOR floor rate of 2.0%. A 2.0% unused credit limit fee is assessed during the first twelve months after the date of the SWK Credit Agreement and loan fees include a 5.0% exit fee based on the principal amounts drawn which is payable at the end of the term of the SWK Credit Agreement. The Company is required to maintain a minimum cash balance of $3,000, will only pay interest on the debt until May 2022 and then will pay 5.5% of the loan principal balance commencing on May 15, 2022 and then every three months thereafter until November 13, 2024 at which time the remaining principal balance is due. Borrowings under the SWK Credit Agreement are secured by the Company’s assets. The SWK Credit Agreement contains customary default provisions and covenants which include limits on additional indebtedness. In March 2020, SWK provided a waiver for the Company to obtain loans with the Small Business Association. The Company is currently in the process of negotiating covenant targets for EBITDA and revenue for the SWK Credit Agreement. In connection with the SWK Credit Agreement, the Company issued warrants to SWK to purchase 51,239 shares of the Company’s common stock (the “SWK Warrants”) with an exercise price of $5.86 per share. The SWK Warrants are exercisable immediately and have a term of seven years. The SWK Warrants are subject to a cashless exercise feature, with the exercise price and number of shares issuable upon exercise subject to change in connection with stock splits, dividends, reclassifications and other conditions. SWK Loan Interest expense of $386 was recorded during the six months ended June 30, 2020 which included $50 of debt discount amortization. As of June 30, 2020, $63 of accrued interest is included in accrued liabilities. The table below reflects the future payments for the SWK loan principal and interest as of June 30, 2020. Amount 2020 $ 359 2021 607 2022 1,364 2023 1,327 2024 3,991 Total payments 7,648 Less: amount representing interest (2,648 ) Loan payable, gross 5,000 Less: unamortized discount (413 ) Long-term debt, net of unamortized discount $ 4,587 PPP loan On May 4, 2020, the Company received $361 in loan proceeds under the Paycheck Protection Program (“PPP”) from the Small Business Administration (“SBA”) through its banking relationship with Bank of America. The loan bears a 1.0% annual interest rate and is payable in monthly installments commencing on November 4, 2020 until paid in full on May 4, 2022. The Company recorded $1 in interest expense for the three-month period ended June 30, 2020. The Company intends to pursue full or partial forgiveness of the loan as permitted under the applicable SBA guidelines for PPP loans. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Common Stock | Note 6 — Common Stock The Company has 50,000,000 authorized shares of $0.001 par value common stock under its Amended and Restated Certificate of Incorporation. In March and April 2020, the Company entered into securities purchase agreements with various investors and sold an aggregate of 2,600,000 shares of its common stock at a price of $3.00 per share and received $7,756 in net proceeds after deducting issuance costs associated with the sale. In March 2020, the Company issued 379,474 shares of its common stock to Diurnal Limited (“Diurnal”) as a milestone fee for acquiring the U.S. marketing rights to Alkindi Sprinkle®, an orphan drug product currently under review with the FDA (see Note 11). The shares were valued at $1,264 based on the Company’s closing stock price on the date of issuance and this amount was recorded as a component of the Company’s research and development expense and an addition to its paid-in-capital. During the six months ended June 30, 2020, the Company issued 69,878 shares of its common stock resulting from stock option exercises under its 2018 Equity Incentive Plan (see Note 8). In April 2020, the Company issued 15,190 shares of its common stock as an RSA to a new employee. This RSA vests 25% every three months and will be 100% vested in April 2021. In June 2020, the Company issued 14,005 shares of its common stock to employees in accordance with its Employee Stock Purchase Plan (“ESPP”). |
Common Stock Warrants
Common Stock Warrants | 6 Months Ended |
Jun. 30, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | |
Common Stock Warrants | Note 7 — Common Stock Warrants The Company’s outstanding warrants to purchase shares of its common stock at June 30, 2020 are summarized in the table below. Description of Warrants No. of Shares Exercise Price Business Advisory Warrants 600,000 $ 0.01 Placement Agent Warrants – 2017 Preferred Stock Offering 607,096 $ 3.00 Placement Agent Warrants - IPO 414,000 $ 7.50 SWK Warrants - Debt 51,239 $ 5.86 Total 1,672,335 $ 3.13 (Avg ) The holders of these warrants or their permitted transferees, are entitled to rights with respect to the registration under the Securities Act of 1933, as amended (the “Securities Act”) for their shares that are converted to common stock, including demand registration rights and piggyback registration rights. These rights are provided under the terms of a registration rights agreement between the Company and the investors. |
Share-Based Payment Awards
Share-Based Payment Awards | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payment Awards | Note 8 — Share-Based Payment Awards The Company’s board of directors and stockholders approved the Eton Pharmaceuticals, Inc. 2017 Equity Incentive Plan in May 2017 (the “2017 Plan”), which authorized the issuance of up to 5,000,000 shares of the Company’s common stock. In conjunction with the Company’s IPO in November 2018, the Company’s stockholders and board of directors approved the 2018 Equity Incentive Plan (the “2018 Plan”) which succeeded the 2017 Plan. The Company has granted RSAs, stock options and RSUs for its common stock under the 2018 Plan as detailed below. There were 510,746 shares available for future issuance under the 2018 Plan as of June 30, 2020. Shares that are expired, terminated, surrendered or canceled without having been fully exercised will be available for future awards under the 2018 Plan. In addition, the 2018 Plan provides that commencing January 1, 2019 and through January 1, 2028, the share reserve will be increased annually by 4% of the total number of shares of common stock outstanding as of the preceding December 31, subject to a reduction at the discretion of the Company’s board of directors. The exercise price for stock options granted is not less than the fair value of common stock as determined by the board of directors as of the date of grant. The Company uses the closing stock price on the date of grant as the exercise price. During the third quarter of 2017, the Company issued 25,000 RSU’s to each of its four outside directors (100,000 total share units). The RSU’s issued to the outside directors were 100% vested at June 30, 2018. The associated 100,000 shares of the Company’s common stock will not be issued until the individual director retires from service from the Company’s board of directors. The Company has not issued any additional RSU’s. To date, all stock options issued have been non-qualified stock options, and the exercise prices were set at the fair value for the shares at the dates of grant. Options typically have a ten-year life, except for options to purchase 50,000 shares of the Company’s common stock granted to product consultants that expire within five years if the Company is not able to file certain product submissions to the FDA prior to the five-year expiration date. Furthermore, these option awards to the Company’s product consultants do not vest unless certain product submissions are made to the FDA, and accordingly, the Company has not recorded any expense for these contingently vesting option awards to its product consultants. For the three months ended June 30, 2020 and 2019, the Company’s total stock-based compensation expense was $714 and $505, respectively. Of these amounts, $651 and $421 was recorded in general and administrative expenses, respectively, and $63 and $84 was recorded in research and development expenses, respectively. For the six months ended June 30, 2020 and 2019, the Company’s total stock-based compensation expense was $1,079 and $850, respectively. Of these amounts, $976 and $690 was recorded in general and administrative expenses, respectively, and $103 and $160 was recorded in research and development expenses, respectively. A summary of stock option activity is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value Options outstanding as of December 31, 2019 1,829,878 $ 4.01 8.1 $ 6,014 Issued 1,302,000 $ 3.65 Exercised (69,878 ) $ 1.39 Forfeited/Cancelled (225,000 ) $ 5.86 Options outstanding as of June 30, 2020 2,837,000 $ 3.76 8.6 $ 5,949 Options exercisable at June 30, 2020 895,521 $ 3.65 7.7 $ 2,177 Options vested and expected to vest at June 30, 2020 2,787,000 $ 3.81 8.6 $ 5,746 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had strike prices lower than the fair value of the Company’s common stock. The assumptions used to calculate the fair value of options granted during the six months ended June 30, 2020 under the BSM were as follows: Expected dividends — % Expected volatility 95 % Risk-free interest rate 0.4 - 0.7 % Expected term 5.3 – 6.3 years Weighted average fair value $ 2.76 Expected Term — The Company has opted to use the “simplified method” for estimating the expected term of options granted to employees and directors, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option (generally ten years). The expected term of options granted to non-employees equals the contractual life of the options. Expected Volatility — Due to the Company’s limited operating history and a lack of Company-specific historical and implied volatility data, the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. The Company has continued this methodology plus given some limited weighting to its own volatility in the periods subsequent to its November 2018 IPO. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the stock-based awards. Risk-Free Interest Rate — The risk-free rate assumption is based on the U.S. Treasury instruments with maturities similar to the expected term of the Company’s stock options. Expected Dividend — The Company has not issued any dividends in its history and does not expect to issue dividends over the life of the options and therefore has estimated the dividend yield to be zero. Fair Value of Common Stock —The Company uses the closing stock price on the date of grant for the fair value of the common stock. As of June 30, 2020, there was a total of $5,160 of unrecognized compensation costs related to non-vested stock option and restricted awards. In the six-month period ended June 30, 2020, there were four stock option exercises which totaled 69,878 shares at an average exercise price of $1.39 per share with an intrinsic value of $139. There were four stock option exercises for 90,000 shares during the six months ended June 30, 2019 at an average exercise price of $0.86 per share with an intrinsic value of $599. In December 2018, the Company’s board of directors approved and adopted an initial offering of the Company’s common stock under the Company’s 2018 ESPP. The Company’s ESPP provides for an initial reserve of 150,000 shares and this reserve is automatically increased on January 1 of each year by the lesser of 1% of the outstanding common shares at December 31 of the preceding year or 150,000 shares, subject to reduction at the discretion of the Company’s board of directors. As of June 30, 2020, there were 391,110 shares available for issuance under the ESPP. The annual offerings consist of two stock purchase periods, with the first purchase period ending in June and the second purchase period ending in December. The terms of the ESPP permit employees of the Company to use payroll deductions to purchase stock at a price per share that is at least the lesser of (1) 85% of the fair market value of a share of common stock on the first date of an offering or (2) 85% of the fair market value of a share of common stock on the date of purchase. After the initial offering period ended, subsequent twelve-month offering periods automatically commence over the term of the ESPP on the day that immediately follows the conclusion of the preceding offering, each consisting of two purchase periods approximately six months in duration. For the first six months of 2020 and 2019 there were 14,005 and 23,083 share issuances under the ESPP. The weighted average grant date fair value of share awards in the first six months of 2020 and 2019 was $2.43 and $2.57, respectively. Employees contributed $66 and $141 via payroll deductions during the six months ended June 30, 2020 and 2019, respectively. The Company recorded an expense of $33 and $75 related to the ESPP in the six-month periods ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, the accompanying condensed balance sheets include $9 and $16, respectively, in accrued liabilities for remaining employee ESPP contributions. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 — Related Party Transactions Harrow Harrow was issued 3,500,000 shares of the Company’s common stock at the formation of the Company at the $0.001 par value per share price as the paid-in-capital contribution from Harrow. The Company and Harrow signed licensing agreements for two products developed by Harrow whereby Harrow assigned the product rights to the Company. In July 2018, the Company determined that one of the products was not viable for its portfolio of product opportunities and cancelled the licensing agreement and the product rights were returned to Harrow. As part of the early start-up for the Company’s pharmaceutical business in 2017, key executives at Harrow received a total of 1,500,000 shares of restricted common stock in the Company for consulting services, and certain Harrow managers also received stock options to purchase a total of 130,000 shares of common stock from the Company (20,000 of these options were forfeited in 2018). The restricted stock and stock options vested in full on April 30, 2018. Additionally, the Chief Executive Officer of Harrow is a member of the Company’s board of directors. Chief Executive Officer The Company’s CEO has a partial interest in several companies that the Company is working with for product development and potential marketing if the products are approved by the FDA as detailed below. The Company acquired the exclusive rights to sell the EM-100 product in the United States pursuant to a sales and marketing agreement (the “Eyemax Agreement”) dated August 11, 2017 between the Company and Eyemax LLC (“Eyemax”), an entity affiliated with the Company’s CEO. The Company also held a right of first refusal to obtain the exclusive license rights for geographic areas outside of the United States. Pursuant to the Eyemax Agreement, the Company is responsible for all costs of testing and FDA approval of the product, other than the FDA filing fee which will be paid by Eyemax. The Company was also responsible for commercializing the product in the United States at its expense. The Company paid Eyemax $250 upon execution of the Eyemax Agreement, which was recorded as a component of R&D expense. Under the terms of the original agreement, the Company would pay Eyemax $250 upon FDA approval and $500 upon the first commercial sale of the product and pay Eyemax a royalty of 10% on the net sales of all products. The Eyemax Agreement was for an initial term of 10 years from the date of the Eyemax Agreement, subject to successive two-year renewals unless the Company elected to terminate the Eyemax Agreement. There were no amounts due under the terms of the Eyemax Agreement as of June 30, 2020 or December 31, 2019. On February 18, 2019, The Company entered into an Amended and Restated Agreement with Eyemax amending the Sales Agreement (the “Amended Agreement”). Pursuant to the Amended Agreement, Eyemax sold the Company all of its right, title and interest in EM-100, including any such product that incorporates or utilizes Eyemax’s intellectual property rights. Under the Amended Agreement, the Company assumed certain liabilities of Eyemax under its Exclusive Development & Supply Agreement with Excelvision SAS dated as of July 11, 2013, as amended (the “Excelvision Agreement”), with respect to certain territories and arising during certain time periods. Pursuant to the Amended Agreement, the Company remains obligated to pay Eyemax two milestones payments: (i) one milestone payment for $250 upon regulatory approval in the territory by the FDA of the first single agent product and (ii) one milestone payment for $500 following the first commercial sale of the first single agent product in the territory. Following payment of the milestones, the Company is entitled to retain all of the non-royalty transaction revenues and royalties up to $2,000 (the “Recovery Amount”). After the Company has retained the full Recovery Amount, it is entitled to retain half of all royalty and non-royalty transaction revenue. The Amended Agreement also contains customary representations, warranties, covenants and indemnities by the parties. The EM-100 asset and its associated product rights were sold to Bausch on February 18, 2019 and future potential royalties of twelve percent of net sales of Bausch sales of EM-100, pending an FDA approval for EM-100, will be split between Eyemax and the Company. The royalty from Bausch is subject to reduction if a competitive product with the same active pharmaceutical ingredient is launched in the U.S. or if the EM-100 U.S market share falls below a specified target percentage. There were no amounts due under the terms of the Amended Agreement as of June 30, 2020 or December 31, 2019. The FDA revised the target action date for EM-100 from August 10, 2020 to September 15, 2020. The Company acquired the DS-200 product and all related intellectual property and government approvals pursuant to an asset purchase agreement (the “Selenix Agreement”) dated June 23, 2017 between the Company and Selenix LLC (“Selenix”), an entity affiliated with the Company’s CEO. Pursuant to the Selenix Agreement, the Company paid Selenix $1,500 at signing, which was recorded as a component of R&D expense and paid $1,500 in April 2019 upon submission of an NDA on March 13, 2019 which was reflected as a component of R&D expense in 2019. The Company will pay $1,000 upon FDA approval of the DS-200 product. The Company has also agreed to pay Selenix 50% of the net profit from the sale of the product for the first 10 years following the date of the Selenix Agreement. There were no amounts due under the terms of the Selenix Agreement as of June 30, 2020 or December 31, 2019. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 10 — Leases The Company recognizes a right-of-use (“ROU”) asset and a lease liability on the balance sheet for substantially all leases, including operating leases. The Company separates lease components from non-lease components related to its office space lease. The Company does not have any lease contracts that contain: (1) an option to extend that the Company is reasonably certain to exercise, (2) an option to terminate that the Company is reasonably certain not to exercise, or (3) an option to extend (or not to terminate) in which exercise of the option is controlled by the lessor. Additionally, the Company does not have any leases with residual value guarantees or material restrictive covenants. Lease liabilities and their corresponding right-of-use assets have been recorded based on the present value of the future lease payments over the expected lease term. One of the Company’s lease agreements contains provisions for escalating rent payments over the term of the lease. The Company’s leases do not contain readily determinable implicit discount rates, and therefore, the Company was required to use its incremental borrowing rate of 7.8% to discount the future lease payments based on information available at lease commencement. The incremental borrowing rate was estimated by determining the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s operating lease cost as presented in the “Research and Development” and “General and Administrative” captions in the condensed statements of operations was $14 and $20, respectively, for the three months ended June 30, 2020 and $14 and $20, respectively, for the three months ended June 30, 2019. The Company’s operating lease cost as presented in the “Research and Development” and “General and Administrative” captions in the condensed statements of operations was $28 and $41, respectively, for the six months ended June 30, 2020 and $28 and $43, respectively, for the six months ended June 30, 2019. Cash paid for amounts included in the measurement of operating lease liabilities was $65 for the six months ended June 30, 2020. The ROU asset amortization for the three and six-month periods ended June 30, 2020 was $33 and $64, respectively, and is reflected within depreciation and amortization on the Company’s condensed statements of cash flows. The ROU asset amortization for the three and six-month periods ended June 30, 2019 was $30 and $59, respectively, and is reflected within depreciation and amortization on the Company’s condensed statements of cash flows. As of June 30, 2020, the weighted-average remaining lease term was 0.7 years, and the weighted-average incremental borrowing rate was 7.8%. The table below presents the lease-related assets and liabilities recorded on the balance sheet as of June 30, 2020 (in thousands). Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets, net $ 96 Total leased assets $ 96 Liabilities Operating lease liabilities, current Accrued liabilities $ 87 Total operating lease liabilities $ 87 The Company’s future lease commitments for its administrative offices in Deer Park, Illinois and its laboratory facility in Lake Zurich, Illinois as of June 30, 2020 are as indicated below: Total 2020 2021 2022 Thereafter Undiscounted lease payments $ 89 70 19 — — Less: Imputed interest (2 ) Total lease liabilities $ 87 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — Commitments and Contingencies Legal The Company is subject to legal proceedings and claims that may arise in the ordinary course of business. The Company is not aware of any pending or threatened litigation matters at this time that may have a material impact on the operations of the Company. On May 7, 2020, the Company announced that it has been confirmed as the first filer of a patent challenge against Exela Pharma Science’s Elcys product (cysteine hydrochloride injection). License and product development agreements The Company has entered into various agreements in addition to those discussed above which are described below. The Company acquired the exclusive rights to sell the DS-300 product in the United States pursuant to a sales and marketing agreement dated November 17, 2017 with an unaffiliated third party (the “Sales Agreement”). Pursuant to the Sales Agreement, the licensor is responsible for obtaining FDA approval, at its expense, and the Company is responsible for commercializing the product in the United States at its expense. The Company will be responsible for Paragraph IV litigation management and expense for the product and will be entitled to 62.5% of the net profit from the sale of the product. The initial term is for the first 10 years following the first commercial sale of the product. The Company acquired the exclusive license to develop, manufacture and sell ET-103 in the United States pursuant to an Exclusive License and Supply Agreement dated August 3, 2018 between the Company and Liqmeds Worldwide Limited (“LMW”), an unaffiliated entity. Pursuant to the agreement, the Company will be responsible for, and will own, all regulatory filings and approvals at its expense, provided that it shall have the right to recoup 35% of any regulatory filing fees from the initial profits from the sale of ET-103 and, provided further, the licensor shall be responsible for any bioequivalence study and shall be responsible for 60% of the costs of such study. An affiliate of the licensor shall manufacture the ET-103 and sell it to the Company at its cost. The Company paid the licensor $350 upon execution of the agreement and will pay the licensor $1,500 upon the FDA’s acceptance of an NDA for review, $1,000 upon FDA approval, $1,500 upon issuance of patent covering ET-103 listed in the FDA’s Orange Book and $500 in the event of product sales in excess of $10,000 in any calendar year. In addition, the Company is required to pay the licensor 35% of the net profit from product sales. The license agreement is for an initial term of 10 years from the date of the first commercial sale of the product, subject to two-year renewals unless either party elects to terminate no less than 12 months prior to the then current term. The agreement also contains customary representations, warranties, covenants and indemnities by the parties. On January 23, 2019, the Company entered into a Licensing and Supply Agreement (the “Agreement”) with LMW for ET-104 oral liquid, a development stage product candidate (“ET-104”). Pursuant to the terms of the Agreement, the Company will be responsible for regulatory and marketing activities. LMW will be responsible for development and manufacturing of ET-104. The Company paid the licensor $350 upon execution of the Agreement and an additional $350 after receiving successful bioequivalence study results, and will pay $325 upon the FDA’s acceptance of an NDA for review, $325 upon FDA approval of the NDA, $650 upon issuance of patent covering ET-104 listed in the FDA’s Orange Book and $500 in the event that product sales in excess of $10,000 are achieved within a calendar year. In addition, the Company is required to pay the licensor 35% of the net profit from product sales. The Agreement is for an initial term of 10 years from the date of the first commercial sale of the product. The Company will retain sole ownership of the NDA after expiration of the Agreement. On February 8, 2019, the Company entered into an Exclusive Licensing and Supply Agreement (the “ET-202 License Agreement”) with Sintetica SA (“Sintetica”) for marketing rights in the United States to Biorphen® which is used for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia. The product was submitted to the FDA for review and received FDA approval on October 21, 2019. Pursuant to the terms of the ET-202 License Agreement, the Company is responsible for marketing activities and Sintetica is responsible for development, manufacturing, and regulatory activities for the product. In 2019, the Company paid Sintetica a licensing payment of $2,000 upon execution of the ET-202 License Agreement and paid $750 upon the commencement of commercial product shipments. Sintetica supplies Biorphen to the Company at its direct costs and the Company retains 5% of net sales as a marketing fee. Sintetica is entitled to receive the first $500 of product profits. All additional profit will be split 50% to the Company and 50% to Sintetica. The ET-202 License Agreement has a ten-year term commencing on November 26, 2019. On February 8, 2019, the Company also entered into an Exclusive Licensing and Supply Agreement (the “ET-203 License Agreement”) with Sintetica for marketing rights in the United States to ET-203, an injectable product candidate for use in the hospital setting. Pursuant to the terms of the ET-203 License Agreement, the Company will be responsible for marketing activities and Sintetica will be responsible for development, manufacturing, and regulatory activities related to obtaining regulatory approval. The Company paid Sintetica a licensing payment of $1,000 upon execution of the ET-203 License Agreement and will pay $750 upon FDA approval and the commercial sale of the product candidate. Upon approval, Sintetica will supply ET-203 to the Company at its direct costs. The Company will retain 5% of net sales as a marketing fee. Sintetica will be entitled to receive the first $500 of product profits. All additional profit will be split 50% to the Company and 50% to Sintetica. The ET-203 License Agreement has a ten-year term from first commercial sale of product. On June 12, 2019, the Company entered into an Exclusive Licensing and Supply Agreement (the “ET-105 License Agreement”) with Aucta Pharmaceuticals, Inc. (“Aucta”) for marketing rights in the United States to ET-105, a product candidate for use as an adjunct therapy for partial seizures, primary generalized tonic-clonic seizures, and generalized seizures of Lennox-Gastaut syndrome in patients two years of age and older. Pursuant to the terms of the ET-105 License Agreement, the Company will be responsible for marketing activities and Aucta will be responsible for development, manufacturing, and regulatory activities related to obtaining regulatory approval. The Company paid Aucta a licensing payment of $2,000 in August 2019 upon receiving an acceptance for review letter from the FDA and will pay $2,000 upon FDA approval and commercial sales of the product candidate and another $1,000 upon issuance of an Orange-book listed patent. Aucta will receive a 15% royalty on net sales and will be entitled to receive milestone payments of up to $18,000 based on commercial success of the product, including: ● $1,000 when net sales exceed $10 million in a calendar year ● $2,000 when net sales exceed $20 million in a calendar year ● $5,000 when net sales exceed $50 million in a calendar year ● $10,000 when net sales exceed $100 million in a calendar year On March 27, 2020, the Company entered into an Exclusive Licensing and Supply Agreement (the “Alkindi License Agreement”) with Diurnal for marketing Alkindi Sprinkle in the United States. Alkindi Sprinkle’s New Drug Application (NDA) is currently under review with the FDA for approval as a replacement therapy for pediatric adrenal insufficiency (AI), including congenital adrenal hyperplasia (CAH) in patients from birth to less than 17 years of age. The application has been assigned a Prescription Drug User Fee Act (PDUFA) date of September 29, 2020. For the initial licensing milestone fee, the Company paid Diurnal $3,500 in cash and issued 379,474 shares of its common stock to Diurnal which was valued at $1,264 based on the Company’s closing stock price of $3.33 on March 26, 2020 (see Note 6). The total amount of $4,764 was recorded as a component of research and development expense in the Company’s condensed statement of operations for the six-month period ended June 30, 2020. Indemnifications As permitted under Delaware law and in accordance with the Company’s Amended and Restated Bylaws, the Company is required to indemnify its officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its directors and officers. The Company believes the fair value of the indemnification rights and agreements is minimal. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of June 30, 2020 or December 31, 2019. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 — Subsequent Events On August 11, 2020, the Company’s existing credit facility with SWK Holdings was amended and will provide for an increase of the credit facility from $10,000 up to $15,000 upon the FDA approval of Alkindi Sprinkle. At execution of the amendment, Eton agreed to draw $2,000. In addition, the facility’s interest rate will be reduced in the future when certain performance metrics are achieved. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared the accompanying financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying interim condensed financial statements are unaudited and have been prepared on the same basis as the audited financial statements and, in the opinion of management, reflect all adjustments necessary for the fair presentation of the Company’s financial position as of June 30, 2020 and the results of its operations and its cash flows for the periods ended June 30, 2020 and 2019. The financial data and other information disclosed in these notes related to the three and six-month periods ended June 30, 2020 and 2019 are also unaudited. The results for the six-month period ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods or any future year or period. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, provisions for uncollectible receivables and sales returns, valuation of inventories, useful lives of assets and the impairment of property and equipment, the accrual of research and development expenses and the valuation of common stock, stock options and warrants. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions. |
Intangible Assets | Intangible Assets The Company capitalizes payments it makes for licensed products when the payment is based on FDA approval for the product and the cost is recoverable based on expected future cash flows from the product. The cost is amortized on a straight-line basis over the estimated useful life of the product commencing on the approval date in accordance with Accounting Standards Codification (“ASC”) 350 — Intangibles - Goodwill and Other. To date, a $750 payment related to the approval of the Company’s Biorphen product has been capitalized and that cost is being amortized over five years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the Company’s statements of operations for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment has been recognized since the Company’s inception in 2017. |
Revenue Recognition for Contracts with Customers | Revenue Recognition for Contracts with Customers The Company intends to generate its future revenues from direct sales of its approved Biorphen product and other of its products which are in development. In addition, the Company anticipates it will receive revenues from product licensing agreements for which it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party. The Company accounts for contracts with its customers in accordance with ASC 606 — Revenue from Contracts with Customers. ASC 606 applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses whether these options provide a material right to the customer and, if so, they are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. Any amounts received prior to revenue recognition will be recorded as deferred revenue. Amounts expected to be recognized as revenue within the twelve months following the balance sheet date will be classified as current portion of deferred revenue in the Company’s balance sheets. Amounts not expected to be recognized as revenue within the twelve months following the balance sheet date are classified as long-term deferred revenue, net of current portion. Milestone Payments Royalties – Significant Financing Component – The Company sells Biorphen in the U.S. to wholesale pharmaceutical distributors, which then sell the product to hospitals and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual shipments of Biorphen represent performance obligations under each purchase order. The Company uses a third-party logistics (“3PL”) vendor to process and fulfill orders and has concluded it is the principal in the sales to wholesalers because it controls access to the 3PL vendor services rendered and directs the 3PL vendor activities. The Company has no significant obligations to wholesalers to generate pull-through sales. Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when the wholesalers sell Biorphen at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”) and government programs. In addition, the Company pays fees to wholesalers for their distribution services, inventory reporting and chargeback processing. The Company pays GPO fees for administrative services and for access to GPO members and concluded the benefits received in exchange for these fees are not distinct from its sales of Biorphen, and accordingly it applies these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of Biorphen and the Company’s lengthy return period, there may be a significant period of time between when the product is shipped and when the Company issues credits on returned product. The Company estimates the transaction price when it receives each purchase order, taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. The Company has developed estimates for future returns and chargebacks of Biorphen and the impact of the other discounts and fees it pays. When estimating these adjustments to the transaction price, the Company reduces it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known. The Company recognizes revenue from Biorphen product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss, and have an enforceable obligation to pay the Company. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, the Company does not believe they have a significant incentive to return the product. Upon recognition of revenue from product sales of Biorphen, the estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, and GPO fees are included in sales reserves, accrued liabilities and net of accounts receivable. The Company monitors actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts end up differing from the Company’s estimates, it will make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment. In addition, the Company anticipates it will receive revenues from product licensing agreements where it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party. |
Cost of Product Sales | Cost of Product Sales Cost of product sales consists of the profit-sharing fees with the Company’s product licensing and development partners, the purchase costs for finished products from third-party manufacturers and freight and handling/storage costs from the Company’s 3PL logistics service provider. The cost of sales for profit-sharing fees and costs for purchased finished products and the associated inbound freight expense is recorded when the associated product sale revenue is recognized in accordance with the terms of shipment to customers while outbound freight and handling/storage fees charged by the 3PL service provider are expensed as they are incurred. |
Research and Development Expenses | Research and Development Expenses Research and development (“R&D”) expenses include both internal R&D activities and external contracted services. Internal R&D activity expenses include salaries, benefits and stock-based compensation and other costs to support the Company’s R&D operations. External contracted services include product development efforts including certain product licensor milestone payments, clinical trial activities, manufacturing and control-related activities and regulatory costs. R&D expenses are charged to operations as incurred. The Company reviews and accrues R&D expenses based on services performed and relies upon estimates of those costs applicable to the stage of completion of each project. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Upfront payments and milestone payments made for the licensing of technology on products which are not yet approved by the FDA are expensed as R&D in the period in which they are incurred. Milestone payments for FDA-approved products are capitalized and amortized over the expected economic life of the product. Nonrefundable advance payments for goods or services to be received in the future for use in R&D activities are recorded as prepaid expenses and are expensed as the related goods are delivered or the services are performed. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic net loss per common share is computed by dividing net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of common and common equivalent shares, such as unvested restricted stock awards (“RSA”), restricted stock units (“RSU’”), stock options and warrants, outstanding during the period. Common stock equivalents (using the treasury stock and “if converted” method) from stock options, unvested RSAs and RSUs, and warrants at June 30, 2020 and 2019 were 3,307,335 and 3,460,950, respectively, and are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. Included in the basic and diluted net loss per share calculation are RSUs awarded to directors that have vested, but the issuance and delivery of the common shares are deferred until the director retires from service as a director. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC 718 Compensation — Stock Compensation. The guidance under ASC 718 requires companies to estimate the fair value of the stock-based compensation awards on the date of grant and record expense over the related service periods, which are generally the vesting period of the equity awards. The Company estimates the fair value of stock-based option awards using the Black-Scholes-Merton option-pricing model (“BSM”). The BSM requires the input of subjective assumptions, including the expected stock price volatility, the calculation of expected term, forfeitures and the fair value of the underlying common stock on the date of grant, among other inputs. The risk-free interest rate was determined from the implied yields for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options or warrants. Dividends on common stock are assumed to be zero for the BSM valuation of the stock options. The expected term of stock options granted is based on vesting periods and the contractual life of the options. Expected volatilities are based on comparable companies’ historical volatility along with a limited weighting included for the Company’s own volatility subsequent to its IPO, which management believes represents the most accurate basis for estimating expected future volatility under the current conditions. The Company accounts for forfeitures as they occur. Since the IPO in November 2018, the Company has used the closing common stock price on the date of grant for the fair value of the common stock. |
Fair Value Measurements | Fair Value Measurements We measure certain of our assets and liabilities at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value accounting requires characterization of the inputs used to measure fair value into a three-level fair value hierarchy as follows: Level 1 Level 2 Level 3 Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below take into account the market for the Company’s financials, assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, PPP loan and long-term debt obligation. The carrying amounts of these financial instruments, except for the PPP loan and long-term debt obligation, approximate their fair values due to the short-term maturities of these instruments. Based on borrowing rates currently available to the Company, the carrying value of the PPP loan and long-term debt obligation approximate their fair values. |
Impact of New Accounting Pronouncements | Impact of New Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The new guidance removes, modifies, and adds to certain disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The Company adopted the new guidance on January 1, 2020 which did not have a material impact on its financial position or results of operations. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The new guidance removes certain exceptions to the general principles of ASC 740 in order to simplify the complexities of its application. These changes include eliminations to the exceptions for intraperiod tax allocation, recognizing deferred tax liabilities related to outside basis differences, and year-to-date losses in interim periods, among others. The Company adopted the new guidance on January 1, 2020 which did not have a material impact on its financial position or results of operations. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: June 30, December 31, Computer hardware and software $ 174 $ 174 Furniture and fixtures 134 133 Equipment 994 994 Leasehold improvements 155 152 Construction in progress — 9 1,457 1,462 Less: accumulated depreciation (519 ) (345 ) Property and equipment, net $ 938 $ 1,117 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Future Payments of Long Term Debt | The table below reflects the future payments for the SWK loan principal and interest as of June 30, 2020. Amount 2020 $ 359 2021 607 2022 1,364 2023 1,327 2024 3,991 Total payments 7,648 Less: amount representing interest (2,648 ) Loan payable, gross 5,000 Less: unamortized discount (413 ) Long-term debt, net of unamortized discount $ 4,587 |
Common Stock Warrants (Tables)
Common Stock Warrants (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Warrants Outstanding | The Company’s outstanding warrants to purchase shares of its common stock at June 30, 2020 are summarized in the table below. Description of Warrants No. of Shares Exercise Price Business Advisory Warrants 600,000 $ 0.01 Placement Agent Warrants – 2017 Preferred Stock Offering 607,096 $ 3.00 Placement Agent Warrants - IPO 414,000 $ 7.50 SWK Warrants - Debt 51,239 $ 5.86 Total 1,672,335 $ 3.13 (Avg ) |
Share-Based Payment Awards (Tab
Share-Based Payment Awards (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value Options outstanding as of December 31, 2019 1,829,878 $ 4.01 8.1 $ 6,014 Issued 1,302,000 $ 3.65 Exercised (69,878 ) $ 1.39 Forfeited/Cancelled (225,000 ) $ 5.86 Options outstanding as of June 30, 2020 2,837,000 $ 3.76 8.6 $ 5,949 Options exercisable at June 30, 2020 895,521 $ 3.65 7.7 $ 2,177 Options vested and expected to vest at June 30, 2020 2,787,000 $ 3.81 8.6 $ 5,746 |
Schedule of Assumptions Used to Calculate Fair Value of Options Granted | The assumptions used to calculate the fair value of options granted during the six months ended June 30, 2020 under the BSM were as follows: Expected dividends — % Expected volatility 95 % Risk-free interest rate 0.4 - 0.7 % Expected term 5.3 – 6.3 years Weighted average fair value $ 2.76 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease-related Assets and Liabilities | The table below presents the lease-related assets and liabilities recorded on the balance sheet as of June 30, 2020 (in thousands). Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets, net $ 96 Total leased assets $ 96 Liabilities Operating lease liabilities, current Accrued liabilities $ 87 Total operating lease liabilities $ 87 |
Schedule of Lease Commitments | The Company’s future lease commitments for its administrative offices in Deer Park, Illinois and its laboratory facility in Lake Zurich, Illinois as of June 30, 2020 are as indicated below: Total 2020 2021 2022 Thereafter Undiscounted lease payments $ 89 70 19 — — Less: Imputed interest (2 ) Total lease liabilities $ 87 |
Company Overview (Details Narra
Company Overview (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | |
Start-up capital | $ 20,055 | ||||
Proceeds from loan offering | $ 4,750 | ||||
Proceeds from sale of shares of common stock | $ 7,756 | ||||
Initial Public Offering [Member] | |||||
Net cash proceeds from initial public offering | $ 21,960 |
Liquidity Considerations (Detai
Liquidity Considerations (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ (77,967) | $ (64,188) | |
Net cash used in operating activities | (10,070) | $ (10,963) | |
Cash and cash equivalents | $ 10,270 | $ 12,066 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | ||
Payment of product licensing rights | $ 750 | |
Product licensing rights amortized, description | Cost is being amortized over five years. | |
Impairment of long-lived assets | ||
Antidilutive securities excluded from computation of earnings per share | 3,307,335 | 3,460,950 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 87 | $ 89 | $ 174 | $ 111 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Computer hardware and software | $ 174 | $ 174 |
Furniture and fixtures | 134 | 133 |
Equipment | 994 | 994 |
Leasehold improvements | 155 | 152 |
Construction in progress | 9 | |
Property and equipment, gross | 1,457 | 1,462 |
Less: accumulated depreciation | (519) | (345) |
Property and equipment, net | $ 938 | $ 1,117 |
Long-Term Debt (Details Narrati
Long-Term Debt (Details Narrative) $ / shares in Units, $ in Thousands | May 04, 2020USD ($) | Nov. 13, 2019USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) |
Borrowing amount | $ 2,000 | |||
Description of borrowing | The loan bears a 1.0% annual interest rate and is payable in monthly installments commencing on November 4, 2020 until paid in full on May 4, 2022. | |||
Warrants issued to purchase common stock | shares | 1,672,335 | |||
Warrants exercise price | $ / shares | $ 3.13 | |||
Interest expenses | $ 1 | $ 386 | ||
Debt discount amortization | 50 | |||
Accrued interest | $ 63 | |||
Loans proceeds under paycheck protection program | $ 361 | |||
Interest rate | 0.01 | |||
Warrant [Member] | ||||
Warrants issued to purchase common stock | shares | 51,239 | |||
Warrants exercise price | $ / shares | $ 5.86 | |||
Warrants expiration term | 7 years | |||
SWK Credit Agreement [Member] | ||||
Borrowing amount | 5,000 | |||
Minimum cash balance to be maintain in each quarter end | $ 3,000 | |||
Description of borrowing | On November 13, 2019, the Company entered into a credit agreement (the "SWK Credit Agreement") with SWK Holdings Corporation ("SWK") which provides for up to $10,000 in financing. The Company received proceeds of $5,000 at closing and was able to borrow an additional $5,000 upon the FDA approval of a second product developed by the Company, excluding EM-100. In March 2020, in conjunction with the Company's Alkindi Sprinkle product licensing agreement (see Note 11) and the Company's March 2020 sale of additional shares of its common stock (see Note 6), the Company and SWK amended the SWK Credit Agreement. The amendment provides the Company with the option to immediately draw $2,000 and can borrow an additional $3,000 upon the FDA approval of both its EM-100 product candidate and another one of its other product candidates. The term of the SWK Credit Agreement is for five years and borrowings bear interest at a rate of LIBOR 3-month plus 10.0%, subject to a stated LIBOR floor rate of 2.0%. A 2.0% unused credit limit fee is assessed during the first twelve months after the date of the SWK Credit Agreement and loan fees include a 5.0% exit fee based on the principal amounts drawn which is payable at the end of the term of the SWK Credit Agreement. The Company is required to maintain a minimum cash balance of $3,000, will only pay interest on the debt until May 2022 and then will pay 5.5% of the loan principal balance commencing on May 15, 2022 and then every three months thereafter until November 13, 2024 at which time the remaining principal balance is due. Borrowings under the SWK Credit Agreement are secured by the Company's assets. The SWK Credit Agreement contains customary default provisions and covenants which include limits on additional indebtedness. In March 2020, SWK provided a waiver for the Company to obtain loans with the Small Business Association. The Company is currently in the process of negotiating covenant targets for EBITDA and revenue for the SWK Credit Agreement. | |||
SWK Credit Agreement [Member] | Unused lines of Credit [Member] | ||||
Borrowings bear interest | 2.00% | |||
SWK Credit Agreement [Member] | (LIBOR) Swap Rate [Member] | ||||
Borrowings bear interest | 10.00% | |||
SWK Credit Agreement [Member] | Stated LIBOR Floor Rate [Member] | ||||
Borrowings bear interest | 2.00% | |||
SWK Credit Agreement [Member] | Food and Drug Administration's [Member] | ||||
Borrowing amount | $ 5,000 | |||
SWK Credit Agreement [Member] | Maximum [Member] | ||||
Borrowing amount | $ 10,000 |
Long-Term Debt - Schedule of Fu
Long-Term Debt - Schedule of Future Payments of Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2020 | $ 359 | |
2021 | 607 | |
2022 | 1,364 | |
2023 | 1,327 | |
2024 | 3,991 | |
Total payments | 7,648 | |
Less: amount representing interest | (2,648) | |
Loan payable, gross | 5,000 | |
Less: unamortized discount | (413) | |
Long-term debt, net of unamortized discount | $ 4,587 | $ 4,540 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Apr. 30, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Value of common stock shares issued | $ 297 | $ 7,756 | |||||
Vested in April 2021 [Member] | |||||||
Restricted stock vested percentage | 100.00% | ||||||
RSA To New Employee [Member] | |||||||
Stock-based compensation, shares | 15,190 | ||||||
Restricted stock vested percentage | 25.00% | ||||||
Employee Stock Purchase Plan [Member] | |||||||
Number of stock issued for exercise of stock options | 14,005 | ||||||
2018 Equity Incentive Plan [Member] | |||||||
Number of stock issued for exercise of stock options | 69,878 | ||||||
Diurnal Limited [Member] | |||||||
Number of common stock shares issued | 379,474 | ||||||
Value of common stock shares issued | $ 1,264 | ||||||
Securities Purchase Agreements [Member] | |||||||
Sale of stock, number of shares issued in transaction | 2,600,000 | 2,600,000 | |||||
Sale of stock, price per share | $ 3 | $ 3 | $ 3 | ||||
Proceeds from sale of stock, consideration received on transaction | $ 7,756 | $ 7,756 |
Common Stock Warrants - Summary
Common Stock Warrants - Summary of Warrants Outstanding (Details) | Jun. 30, 2020$ / sharesshares |
No. of Shares, Total | shares | 1,672,335 |
Exercise Price | $ / shares | $ 3.13 |
Business Advisory Warrants [Member] | |
No. of Shares, Total | shares | 600,000 |
Exercise Price | $ / shares | $ 0.01 |
Placement Agent Warrants - 2017 Preferred Stock Offering [Member] | |
No. of Shares, Total | shares | 607,096 |
Exercise Price | $ / shares | $ 3 |
Placement Agent Warrants - IPO [Member] | |
No. of Shares, Total | shares | 414,000 |
Exercise Price | $ / shares | $ 7.50 |
SWK Warrants - Debt [Member] | |
No. of Shares, Total | shares | 51,239 |
Exercise Price | $ / shares | $ 5.86 |
Share-Based Payment Awards (Det
Share-Based Payment Awards (Details Narrative) $ / shares in Units, $ in Thousands | Jun. 30, 2018 | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($)shares | Sep. 30, 2017Directorshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018shares | May 31, 2017shares |
Stock options expiration period | 10 years | ||||||||
Stock-based compensation expense | $ | $ 714 | $ 505 | $ 1,079 | $ 850 | |||||
Expected dividend yield | 0.00% | 0.00% | |||||||
General and Administrative Expense [Member] | |||||||||
Stock-based compensation expense | $ | 651 | 421 | $ 976 | $ 690 | |||||
Research and Development Expense [Member] | |||||||||
Stock-based compensation expense | $ | $ 63 | $ 84 | $ 103 | $ 160 | |||||
Common Stock [Member] | |||||||||
Stock option exercises, shares | 64,878 | 70,000 | 69,878 | 90,000 | |||||
Employee stock purchase plan, shares | 14,005 | 23,083 | 14,005 | 23,083 | |||||
Four Stock Options [Member] | |||||||||
Stock option exercises, shares | 69,878 | 90,000 | |||||||
Exercise price of stock option | $ / shares | $ 1.39 | $ 0.86 | |||||||
Stock option intrinsic value | $ | $ 139 | $ 599 | |||||||
Product Consultant [Member] | |||||||||
Number of stock options issued to purchase common stock | 50,000 | ||||||||
Product Consultant [Member] | Common Stock [Member] | |||||||||
Stock options expiration period | 5 years | ||||||||
Restricted Stock [Member] | |||||||||
Shares issued as compensation | 100,000 | ||||||||
Restricted Stock [Member] | Outside Directors One [Member] | |||||||||
Shares issued as compensation | 25,000 | ||||||||
Restricted Stock [Member] | Outside Directors Two [Member] | |||||||||
Shares issued as compensation | 25,000 | ||||||||
Restricted Stock [Member] | Outside Directors Three [Member] | |||||||||
Shares issued as compensation | 25,000 | ||||||||
Restricted Stock [Member] | Outside Directors Four [Member] | |||||||||
Shares issued as compensation | 25,000 | ||||||||
Restricted Stock [Member] | Four Outside Directors [Member] | |||||||||
Number of outside directors | Director | 4 | ||||||||
Restricted shares to outside directors vesting percentage | 100.00% | ||||||||
Stock Option [Member] | |||||||||
Stock options expiration period | 10 years | ||||||||
Non-Vested Stock Option Awards and Restricted Awards [Member] | |||||||||
Unrecognized compensation costs | $ | $ 5,160 | $ 5,160 | |||||||
2017 Equity Incentive Plan [Member] | |||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 5,000,000 | ||||||||
2018 Equity Incentive Plan [Member] | |||||||||
Share-based compensation arrangement, shares available for future issuance | 510,746 | 510,746 | |||||||
Stock option exercises, shares | 69,878 | ||||||||
2018 Equity Incentive Plan [Member] | January 1, 2019 and Through January 1, 2028 | |||||||||
Percentage for total number of shares outstanding | 4.00% | ||||||||
2018 Employee Stock Purchase Plan [Member] | |||||||||
Share-based compensation arrangement, shares available for future issuance | 391,110 | 391,110 | 150,000 | ||||||
Stock-based compensation expense | $ | $ 33 | $ 75 | |||||||
Share based compensation for initial shares reserve, description | The Company's ESPP provides for an initial reserve of 150,000 shares and this reserve is automatically increased on January 1 of each year by the lesser of 1% of the outstanding common shares at December 31 of the preceding year or 150,000 shares, subject to reduction at the discretion of the Company's board of directors. | ||||||||
Percentage for purchase stock and fair value of common stock | 85.00% | ||||||||
Description for deductions to purchase stock at price per share | After the initial offering period ended, subsequent twelve-month offering periods automatically commence over the term of the ESPP on the day that immediately follows the conclusion of the preceding offering, each consisting of two purchase periods approximately six months in duration. | ||||||||
Employee stock purchase plan, shares | 14,005 | 23,083 | |||||||
Weighted average grant date fair value issued | $ / shares | $ 2.43 | $ 2.57 | |||||||
Employees contribution amount | $ | $ 66 | $ 141 | |||||||
Accrued liabilities for remaining employee contributions | $ | $ 9 | $ 9 | $ 16 |
Share-Based Payment Awards - Su
Share-Based Payment Awards - Summary of Stock Option Activity (Details) - Stock Option [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Shares, Options Outstanding, Beginning Balance | shares | 1,829,878 |
Shares, Issued | shares | 1,302,000 |
Shares, Exercised | shares | (69,878) |
Shares, Forfeited/Cancelled | shares | (225,000) |
Shares, Options Outstanding, Ending Balance | shares | 2,837,000 |
Shares, Options Exercisable, Ending Balance | shares | 895,521 |
Shares, Options Vested and Expected to Vest, Ending Balance | shares | 2,787,000 |
Weighted Average Exercise Price, Options Outstanding, Beginning Balance | $ / shares | $ 4.01 |
Weighted Average Exercise Price, Issued | $ / shares | 3.65 |
Weighted Average Exercise Price, Exercised | $ / shares | 1.39 |
Weighted Average Exercise Price, Forfeited/Cancelled | $ / shares | 5.86 |
Weighted Average Exercise Price, Options Outstanding, Ending Balance | $ / shares | 3.76 |
Weighted Average Exercise Price, Options Exercisable, Ending Balance | $ / shares | 3.65 |
Weighted Average Exercise Price, Options Vested and Expected to Vest, Ending Balance | $ / shares | $ 3.81 |
Weighted Average Remaining Contractual Term, Options Outstanding, Beginning Balance | 8 years 1 month 6 days |
Weighted Average Remaining Contractual Term, Options Outstanding, Ending Balance | 8 years 7 months 6 days |
Weighted Average Remaining Contractual Term, Options Exercisable, Ending Balance | 7 years 8 months 12 days |
Weighted Average Remaining Contractual Term, Options Vested and Expected to Vest, Ending Balance | 8 years 7 months 6 days |
Aggregate Intrinsic Value, Options Outstanding, Beginning Balance | $ | $ 6,014 |
Aggregate Intrinsic Value, Options Outstanding, Ending Balance | $ | 5,949 |
Aggregate Intrinsic Value, Options Exercisable, Ending Balance | $ | 2,177 |
Aggregate Intrinsic Value, Options Vested and Expected to Vest, Ending Balance | $ | $ 5,746 |
Share-Based Payment Awards - Sc
Share-Based Payment Awards - Schedule of Assumptions Used to Calculate Fair Value of Options Granted (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Expected dividends | 0.00% | 0.00% |
Expected volatility | 95.00% | |
Weighted average fair value | $ 2.76 | |
Minimum [Member] | ||
Risk-free interest rate | 0.40% | |
Expected term | 5 years 3 months 19 days | |
Maximum [Member] | ||
Risk-free interest rate | 0.70% | |
Expected term | 6 years 3 months 19 days |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) $ / shares in Units, $ in Thousands | Feb. 18, 2019USD ($) | Nov. 17, 2017 | Aug. 11, 2017USD ($) | Jun. 23, 2017USD ($) | Apr. 30, 2019USD ($) | Jun. 30, 2020USD ($)Products$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Products$ / sharesshares | Jun. 30, 2019USD ($) | Dec. 31, 2018shares | Dec. 31, 2019$ / sharesshares |
Common stock issued | shares | 20,956,033 | 20,956,033 | 17,877,486 | ||||||||
Common stock par value per share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Payment of research and development expense | $ 1,609 | $ 1,439 | $ 7,877 | $ 7,904 | |||||||
Credit agreement term | 10 years | ||||||||||
Amended and Restated Agreement [Member] | Maximum [Member] | |||||||||||
Royalties | $ 2,000 | ||||||||||
Amended and Restated Agreement [Member] | Eyemax, LLC [Member] | One Milestone [Member] | |||||||||||
Related party transaction | 250 | ||||||||||
Amended and Restated Agreement [Member] | Eyemax, LLC [Member] | Two Milestone [Member] | |||||||||||
Related party transaction | $ 500 | ||||||||||
Harrow Health Inc [Member] | |||||||||||
Common stock issued | shares | 3,500,000 | 3,500,000 | |||||||||
Common stock par value per share | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Number of products | Products | 2 | 2 | |||||||||
Harrow Health Inc [Member] | Common Stock [Member] | |||||||||||
Restricted stock award forfeited | shares | 20,000 | ||||||||||
Harrow Health Inc [Member] | Restricted Stock [Member] | |||||||||||
Number of restricted common stock issued for services | shares | 1,500,000 | ||||||||||
Number of stock options issued to purchase common stock | shares | 130,000 | ||||||||||
Eyemax, LLC [Member] | |||||||||||
Payment of research and development expense | $ 250 | ||||||||||
Sale of product expense | $ 500 | ||||||||||
Percentage of royalty fee | 10.00% | ||||||||||
Related party transaction | $ 250 | ||||||||||
Credit agreement term | 10 years | ||||||||||
Related party transaction, description | The Eyemax Agreement was for an initial term of 10 years from the date of the Eyemax Agreement, subject to successive two-year renewals unless the Company elected to terminate the Eyemax Agreement. There were no amounts due under the terms of the Eyemax Agreement as of June 30, 2020 or December 31, 2019. | ||||||||||
Selenix LLC [Member] | |||||||||||
Payment of research and development expense | $ 1,500 | ||||||||||
Sale of product expense | $ 1,000 | ||||||||||
Percentage of royalty fee | 50.00% | ||||||||||
Related party transaction | $ 1,500 | ||||||||||
Credit agreement term | 10 years |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Incremental borrowing rate | 7.80% | 7.80% | ||
Operating lease payment | $ 65 | |||
Amortization rights to use of assets | $ 33 | $ 64 | ||
ROU asset amortization | $ 59 | 30 | ||
Weighted-average remaining lease term | 8 months 12 days | 8 months 12 days | ||
Weighted-average incremental borrowing rate | 7.80% | 7.80% | ||
Research and Development Expense [Member] | ||||
Operating lease cost | $ 14 | 14 | $ 28 | 28 |
General and Administrative Expense [Member] | ||||
Operating lease cost | $ 20 | $ 20 | $ 41 | $ 43 |
Leases - Schedule of Lease-rela
Leases - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Total leased assets | $ 96 | $ 160 |
Operating Lease Right-of-use Assets [Member] | ||
Total leased assets | 96 | |
Accrued Liabilities [Member] | ||
Total operating lease liabilities | 87 | |
Operating Lease Liability [Member] | ||
Total operating lease liabilities | $ 87 |
Leases - Schedule of Lease Comm
Leases - Schedule of Lease Commitments (Details) $ in Thousands | Jun. 30, 2020USD ($) |
2021 | $ 607 |
Operating Lease Liability [Member] | |
2020 | 70 |
2021 | 19 |
2022 | |
Thereafter | |
Undiscounted lease payments | 89 |
Less: Imputed interest | (2) |
Total lease liabilities | $ 87 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Mar. 26, 2020 | Jun. 12, 2019 | Feb. 08, 2019 | Jan. 23, 2019 | Nov. 17, 2017 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Litigation and management expense | 62.50% | |||||||||||
Credit agreement term | 10 years | |||||||||||
Percentage of right to recoup | 35.00% | 35.00% | ||||||||||
Payments for development | $ 1,609 | $ 1,439 | $ 7,877 | $ 7,904 | ||||||||
Value of common stock shares issued | $ 297 | 7,756 | ||||||||||
Diurnal Limited [Member] | ||||||||||||
Number of common stock shares issued | 379,474 | |||||||||||
Value of common stock shares issued | $ 1,264 | |||||||||||
Exclusive License and Supply Agreement [Member] | Diurnal Limited [Member] | ||||||||||||
Cash paid for licensing milestone fee | $ 3,500 | |||||||||||
Number of common stock shares issued | 379,474 | |||||||||||
Value of common stock shares issued | $ 1,264 | |||||||||||
Shares issued price per share | $ 3.33 | |||||||||||
Aggregate value of licensing milestone amount included in research and development expense | $ 4,764 | |||||||||||
Exclusive License and Supply Agreement [Member] | Licensor [Member] | ||||||||||||
Credit agreement term | 10 years | |||||||||||
Percentage of right to recoup | 60.00% | 60.00% | ||||||||||
Percentage of net profits payments to third party from sale of product | 35.00% | 35.00% | ||||||||||
Payments for development | $ 350 | |||||||||||
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Upon FDA Acceptance [Member] | ||||||||||||
Payments for development | 1,500 | |||||||||||
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Upon FDA Approval [Member] | ||||||||||||
Payments for development | 1,000 | |||||||||||
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Upon Issuance of Patent Covering [Member] | ||||||||||||
Payments for development | 1,500 | |||||||||||
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Product Sales [Member] | ||||||||||||
Payments for development | 500 | |||||||||||
Exclusive License and Supply Agreement [Member] | Licensor [Member] | Calendar Year [Member] | ||||||||||||
Payments for development | $ 10,000 | |||||||||||
Licensing and Supply Agreement [Member] | Licensor [Member] | ||||||||||||
Credit agreement term | 10 years | |||||||||||
Percentage of net profits payments to third party from sale of product | 35.00% | |||||||||||
Payments for development | $ 350 | |||||||||||
Licensing and Supply Agreement [Member] | Licensor [Member] | Upon FDA Acceptance [Member] | ||||||||||||
Payments for development | 325 | |||||||||||
Licensing and Supply Agreement [Member] | Licensor [Member] | Upon FDA Approval [Member] | ||||||||||||
Payments for development | 325 | |||||||||||
Licensing and Supply Agreement [Member] | Licensor [Member] | Upon Issuance of Patent Covering [Member] | ||||||||||||
Payments for development | 650 | |||||||||||
Licensing and Supply Agreement [Member] | Licensor [Member] | Product Sales [Member] | ||||||||||||
Payments for development | 500 | |||||||||||
Licensing and Supply Agreement [Member] | Licensor [Member] | Calendar Year [Member] | ||||||||||||
Payments for development | 10,000 | |||||||||||
Licensing and Supply Agreement [Member] | Licensor [Member] | Upon Successful Bioequivalence Study [Member] | ||||||||||||
Payments for development | $ 350 | |||||||||||
Exclusive License and Supply Agreement (ET-202 ) [Member] | ||||||||||||
Percentage for additional profit | 50.00% | |||||||||||
Exclusive License and Supply Agreement (ET-202 ) [Member] | Sintetica [Member] | ||||||||||||
Payment of licensing | $ 2,000 | |||||||||||
Percentage of net sales as marketing fees | 5.00% | |||||||||||
Proceeds from licensing | $ 500 | |||||||||||
Percentage for additional profit | 50.00% | |||||||||||
Exclusive License and Supply Agreement (ET-202 ) [Member] | Upon FDA Approval [Member] | ||||||||||||
Payment of licensing | $ 750 | |||||||||||
Exclusive License and Supply Agreement (ET-203 ) [Member] | ||||||||||||
Percentage for additional profit | 50.00% | |||||||||||
Exclusive License and Supply Agreement (ET-203 ) [Member] | Sintetica [Member] | ||||||||||||
Payment of licensing | $ 1,000 | |||||||||||
Percentage of net sales as marketing fees | 5.00% | |||||||||||
Proceeds from licensing | $ 500 | |||||||||||
Percentage for additional profit | 50.00% | |||||||||||
Exclusive License and Supply Agreement (ET-203 ) [Member] | Upon FDA Approval [Member] | ||||||||||||
Payment of licensing | $ 750 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Aucta Pharmaceuticals, Inc [Member] | ||||||||||||
Payment of licensing | $ 2,000 | |||||||||||
Milestone payment description | $1,000 when net sales exceed $10 million in a calendar year, $2,000 when net sales exceed $20 million in a calendar year, $5,000 when net sales exceed $50 million in a calendar year, $10,000 when net sales exceed $100 million in a calendar year | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Aucta Pharmaceuticals, Inc [Member] | Maximum [Member] | ||||||||||||
Milestone payment amount | $ 18,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Upon FDA Approval [Member] | Aucta Pharmaceuticals, Inc [Member] | ||||||||||||
Payment of licensing | 2,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Upon Issuance of Orange-book Listed Patent [Member] | Aucta Pharmaceuticals, Inc [Member] | ||||||||||||
Payment of licensing | 1,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario One [Member] | Aucta Pharmaceuticals, Inc [Member] | ||||||||||||
Milestone payment amount | 1,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario One [Member] | Aucta Pharmaceuticals, Inc [Member] | Minimum [Member] | ||||||||||||
Net sales | 10,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Two [Member] | Aucta Pharmaceuticals, Inc [Member] | ||||||||||||
Milestone payment amount | 2,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Two [Member] | Aucta Pharmaceuticals, Inc [Member] | Minimum [Member] | ||||||||||||
Net sales | 20,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Three [Member] | Aucta Pharmaceuticals, Inc [Member] | ||||||||||||
Milestone payment amount | 5,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Three [Member] | Aucta Pharmaceuticals, Inc [Member] | Minimum [Member] | ||||||||||||
Net sales | 50,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Four [Member] | Aucta Pharmaceuticals, Inc [Member] | ||||||||||||
Milestone payment amount | 10,000 | |||||||||||
Exclusive License and Supply Agreement (ET-105 ) [Member] | Scenario Four [Member] | Aucta Pharmaceuticals, Inc [Member] | Minimum [Member] | ||||||||||||
Net sales | $ 100,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - SWK Holdings [Member] $ in Thousands | Aug. 11, 2020USD ($) |
Line of credit | $ 2,000 |
Minimum [Member] | |
Line of credit facility, maximum borrowing capacity | 10,000 |
Maximum [Member] | |
Line of credit facility, maximum borrowing capacity | $ 15,000 |