Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 11, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | Titan Pharmaceuticals, Inc. | |
Entity File Number | 001-13341 | |
Entity Incorporation, State or Country Code | CA | |
Entity Address, Address Line One | 400 Oyster Point Blvd., Suite 505 | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | DE | |
Entity Tax Identification Number | 94-3171940 | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 244-4990 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Trading Symbol | TTNP | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 9,864,068 | |
Entity Central Index Key | 0000910267 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 9,680 | $ 5,413 |
Receivables | 103 | 884 |
Inventory | 129 | 328 |
Prepaid expenses and other current assets | 648 | 522 |
Discontinued operations - current assets | 70 | 181 |
Total current assets | 10,630 | 7,328 |
Property and equipment, net | 524 | 618 |
Operating lease right-of-use asset | 353 | 141 |
Total assets | 11,507 | 8,087 |
Current liabilities: | ||
Accounts payable | 439 | 1,253 |
Accrued clinical trials expenses | 38 | 214 |
Other accrued liabilities | 304 | 319 |
Operating lease liability, current | 108 | 150 |
Current portion of long-term debt | 0 | 327 |
Discontinued operations - current liabilities | 1,627 | 1,960 |
Total current liabilities | 2,516 | 4,223 |
Operating lease liability, noncurrent | 244 | 0 |
Long-term debt | 0 | 332 |
Total liabilities | 2,760 | 4,555 |
Stockholders' equity: | ||
Common stock, at amounts paid-in | 10 | 7 |
Additional paid-in capital | 380,337 | 370,804 |
Accumulated deficit | (371,600) | (367,279) |
Total stockholders' equity | 8,747 | 3,532 |
Total liabilities and stockholders' equity | $ 11,507 | $ 8,087 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Total revenues | $ 445 | $ 1,249 | $ 1,127 | $ 2,375 |
Operating expenses: | ||||
Cost of goods sold | 89 | 0 | 199 | 0 |
Research and development | 1,646 | 1,644 | 3,523 | 3,456 |
Selling, general and administrative | 1,035 | 1,223 | 2,362 | 2,511 |
Total operating expenses | 2,770 | 2,867 | 6,084 | 5,967 |
Loss from operations | (2,325) | (1,618) | (4,957) | (3,592) |
Other income (expense): | ||||
Interest expense, net | 0 | (250) | (2) | (472) |
Non-cash loss on changes in the fair value of warrants | 0 | 0 | 0 | (923) |
Gain on debt extinguishment | 661 | 0 | 661 | 0 |
Other expense, net | (16) | (7) | (23) | (220) |
Other income (expense), net | 645 | (257) | 636 | (1,615) |
Loss from continuing operations | (1,680) | (1,875) | (4,321) | (5,207) |
Loss from discontinued operations | 0 | (2,766) | 0 | (5,018) |
Net loss and comprehensive loss | $ (1,680) | $ (4,641) | $ (4,321) | $ (10,225) |
Basic and diluted net loss per common share from continuing operations | $ (0.17) | $ (0.59) | $ (0.45) | $ (1.76) |
Basic and diluted net loss per common share from discontinued operations | $ 0 | $ (0.87) | $ 0 | $ (1.70) |
Weighted average shares used in computing basic and diluted net loss per common share | 9,864 | 3,165 | 9,578 | 2,960 |
License revenue | ||||
Revenues: | ||||
Total revenues | $ 3 | $ 6 | $ 5 | $ 6 |
Product revenue | ||||
Revenues: | ||||
Total revenues | 89 | 39 | 200 | 39 |
Grant revenue | ||||
Revenues: | ||||
Total revenues | $ 353 | $ 1,204 | $ 922 | $ 2,330 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 2 | $ 350,468 | $ (349,037) | $ 1,433 |
Balance (in shares) at Dec. 31, 2019 | 1,913 | |||
Net loss | $ 0 | 0 | (5,584) | (5,584) |
Issuance of common stock, net | $ 0 | 452 | 0 | 452 |
Issuance of common stock, net (in shares) | 290 | |||
Issuance of common stock upon exercises of warrants, net | $ 1 | 6,161 | 0 | 6,162 |
Issuance of common stock upon exercises of warrants, net (in shares) | 913 | |||
Reclassification of warrants from liability | $ 0 | 2,897 | 0 | 2,897 |
Stock-based compensation | 0 | (84) | 0 | (84) |
Balance at Mar. 31, 2020 | $ 3 | 359,894 | (354,621) | 5,276 |
Balance (in shares) at Mar. 31, 2020 | 3,116 | |||
Balance at Dec. 31, 2019 | $ 2 | 350,468 | (349,037) | 1,433 |
Balance (in shares) at Dec. 31, 2019 | 1,913 | |||
Net loss | (10,225) | |||
Balance at Jun. 30, 2020 | $ 3 | 360,819 | (359,262) | 1,560 |
Balance (in shares) at Jun. 30, 2020 | 3,241 | |||
Balance at Mar. 31, 2020 | $ 3 | 359,894 | (354,621) | 5,276 |
Balance (in shares) at Mar. 31, 2020 | 3,116 | |||
Net loss | $ 0 | 0 | (4,641) | (4,641) |
Issuance of common stock upon exercises of warrants, net | $ 0 | 846 | 0 | 846 |
Issuance of common stock upon exercises of warrants, net (in shares) | 125 | |||
Stock-based compensation | $ 0 | 79 | 0 | 79 |
Balance at Jun. 30, 2020 | $ 3 | 360,819 | (359,262) | 1,560 |
Balance (in shares) at Jun. 30, 2020 | 3,241 | |||
Balance at Dec. 31, 2020 | $ 7 | 370,804 | (367,279) | 3,532 |
Balance (in shares) at Dec. 31, 2020 | 7,139 | |||
Net loss | $ 0 | 0 | (2,641) | (2,641) |
Issuance of common stock, net | $ 3 | 8,838 | 0 | 8,841 |
Issuance of common stock, net (in shares) | 2,725 | |||
Stock-based compensation | $ 0 | 248 | 0 | 248 |
Balance at Mar. 31, 2021 | $ 10 | 379,890 | (369,920) | 9,980 |
Balance (in shares) at Mar. 31, 2021 | 9,864 | |||
Balance at Dec. 31, 2020 | $ 7 | 370,804 | (367,279) | 3,532 |
Balance (in shares) at Dec. 31, 2020 | 7,139 | |||
Net loss | (4,321) | |||
Balance at Jun. 30, 2021 | $ 10 | 380,337 | (371,600) | 8,747 |
Balance (in shares) at Jun. 30, 2021 | 9,864 | |||
Balance at Mar. 31, 2021 | $ 10 | 379,890 | (369,920) | 9,980 |
Balance (in shares) at Mar. 31, 2021 | 9,864 | |||
Net loss | $ 0 | 0 | (1,680) | (1,680) |
Stock-based compensation | 0 | 447 | 0 | 447 |
Balance at Jun. 30, 2021 | $ 10 | $ 380,337 | $ (371,600) | $ 8,747 |
Balance (in shares) at Jun. 30, 2021 | 9,864 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (4,321) | $ (10,225) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 112 | 128 |
Non-cash interest expense | 2 | 296 |
Non-cash loss on changes in fair value of warrants | 0 | 923 |
Non-cash gain on debt extinguishment | (661) | 0 |
Stock-based compensation | 695 | (5) |
Finance costs attributable to issuance of warrants | 0 | 211 |
Other | (10) | (6) |
Changes in operating assets and liabilities: | ||
Receivables | 781 | (68) |
Inventory | 199 | 29 |
Prepaid expenses and other assets | (15) | (68) |
Accounts payable | (1,079) | 127 |
Accrued sales allowances | (60) | (745) |
Other accrued liabilities | (199) | 208 |
Net cash used in operating activities | (4,556) | (9,195) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (18) | (87) |
Net cash used in investing activities | (18) | (87) |
Cash flows from financing activities: | ||
Net proceeds from equity offering | 8,841 | 1,895 |
Net proceeds from the exercises of common stock warrants | 0 | 7,008 |
Net loan proceeds | 0 | 654 |
Net cash provided by financing activities | 8,841 | 9,557 |
Net increase in cash and cash equivalents | 4,267 | 275 |
Cash and cash equivalents at beginning of period | 5,413 | 5,223 |
Cash and cash equivalents at end of period | 9,680 | 5,498 |
Supplemental disclosure of cash flow information: | ||
Interest paid | $ 0 | $ 198 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Organization and Summary of Significant Accounting Policies | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies The Company We are a pharmaceutical company developing therapeutics utilizing our proprietary long-term drug delivery platform, ProNeura™, for the treatment of select chronic diseases for which steady state delivery of a drug has the potential to provide an efficacy and/or safety benefit. ProNeura consists of a small, solid implant made from a mixture of ethylene-vinyl acetate, or EVA, and a drug substance. The resulting product is a solid matrix that is designed to be administered subdermally, in a brief, outpatient procedure and is removed in a similar manner at the end of the treatment period. These procedures may be performed by trained health care providers, or HCPs, including licensed and surgically qualified physicians, nurse practitioners, and physician’s assistants in a HCP’s office or other clinical setting. Our first product based on our ProNeura technology was the Probuphine ® We continue to monitor the impact of the COVID-19 pandemic on all aspects of our business, including how it has and will continue to impact our operations and the operations of our vendors and contractors, and may take further precautionary and preemptive action as may be required by federal, state or local authorities. The full extent and duration of the impact of COVID-19 on our operations and financial performance is currently unknown and depends on future developments that are uncertain and unpredictable. All share and per share amounts contained in this report on Form 10-Q give retroactive effect to the reverse split effected by the board of directors, or Board, in November 2020 at a ratio of one share for every thirty shares then outstanding. The accompanying condensed financial statements have been prepared assuming we will continue as a going concern. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statement presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or any future interim periods. The balance sheet as of December 31, 2020 is derived from the audited financial statements at that date but does not include all the information and footnotes required by GAAP for complete financial statements. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and footnotes thereto included in the Titan Pharmaceuticals, Inc. 2020 10-K. The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. Actual results could differ from those estimates. As of June 30, 2021, we had cash and cash equivalents of approximately $9.7 million, which we believe is sufficient to fund our planned operations into the first quarter of 2022. We will require additional funds to finance our operations. We are exploring several financing alternatives; however, there can be no assurance that our efforts to obtain the funding required to continue our operations will be successful and there is substantial doubt about our ability to continue as a going concern. Discontinued Operations In October 2020, we announced our decision to discontinue selling Probuphine in the U.S. and wind down our commercialization activities, and to pursue a plan that will enable us to focus on our current, early-stage ProNeura-based product development programs. The accompanying condensed financial statements have been recast for all periods presented to reflect the assets, liabilities, revenue and expenses related to our U.S. commercialization activities as discontinued operations (see Note 9). The accompanying condensed financial statements are generally presented in conformity with our historical format. We believe this format provides comparability with the previously filed financial statements. Going Concern Assessment We assess going concern uncertainty in our condensed financial statements to determine if we have sufficient cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one year from the date the condensed financial statements are issued, which is referred to as the “look-forward period” as defined by Accounting Standard Update (“ASU”) No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to us, we will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary, among other factors. Based on this assessment, as necessary or applicable, we make certain assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent we deem probable that those implementations can be achieved, and we have the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15. Based upon the above assessment, we concluded that, at the date of filing the condensed financial statements in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021, we did not have sufficient cash to fund our operations for the next 12 months without securing additional funds and, therefore, there is substantial doubt about our ability to continue as a going concern within 12 months after the date the condensed financial statements were issued. Additionally, we have suffered recurring losses from operations and have an accumulated deficit that raises substantial doubt about our ability to continue as a going concern. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Inventories Inventories are recorded at the lower of cost or net realizable value. Cost is based on the first in, first out method. We regularly review inventory quantities on hand and write down to its net realizable value any inventory that we believe to be impaired. The determination of net realizable value requires judgment including consideration of many factors, such as estimates of future product demand, product net selling prices, current and future market conditions and potential product obsolescence, among others. The components of inventories are as follows: As of (in thousands) June 30, 2021 December 31, 2020 Raw materials and supplies $ 60 $ 170 Finished goods 69 158 $ 129 $ 328 The approximately $69,000 of finished goods inventory at June 30, 2021 included materials held for potential sale to Molteni and Knight. Revenue Recognition We generate revenue principally from collaborative research and development arrangements, sales or licenses of technology, government grants, sales of Probuphine materials to Molteni and Knight, and prior to the discontinued operations, the sale of Probuphine in the U.S. Consideration received for revenue arrangements with multiple components is allocated among the separate performance obligations based upon their relative estimated standalone selling price. In determining the appropriate amount of revenue to be recognized as we fulfill our obligations under our agreements, we perform the following steps for our revenue recognition: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) we satisfy each performance obligation. Grant Revenue We have contracts with National Institute on Drug Abuse or NIDA, within the U.S. Department of Health and Human Services, or HHS, and other government-sponsored organizations for research and development related activities that provide for payments for reimbursed costs, which may include overhead and general and administrative costs. We recognize revenue from these contracts as we perform services under these arrangements when the funding is committed. Associated expenses are recognized when incurred as research and development expense. Revenues and related expenses are presented gross in the condensed statements of operations and comprehensive loss. Net Product Revenue Prior to the discontinuation of our commercialization activities relating to Probuphine in the U.S., we recognized revenue from product sales when control of the product transfers, generally upon shipment or delivery to our customers, which include distributors. As customary in the pharmaceutical industry, our gross product revenue was subject to a variety of deductions in the forms of variable consideration, such as rebates, chargebacks, returns and discounts, in order to arrive at reported net product revenue. This variable consideration was estimated using the most-likely amount method, which is the single most-likely outcome under a contract and was typically at stated contractual rates. The actual outcome of this variable consideration could materially differ from our estimates. From time to time, we would adjust our estimates of this variable consideration when trends or significant events indicated that a change in estimate is appropriate to reflect the actual experience. Additionally, we continued to assess the estimates of our variable consideration as we continued to accumulate additional historical data. Returns – Consistent with the provisions of ASC 606, we estimated returns at the inception of each transaction, based on multiple considerations, including historical sales, historical experience of actual customer returns, levels of inventory in our distribution channel, expiration dates of purchased products and significant market changes which could impact future expected returns to the extent that we would not reverse any receivables, revenues, or contract assets already recognized under the agreement. During the year ended December 31, 2019, we entered into agreements with large national specialty pharmacies with a distribution channel different from that of our existing customers and, therefore, the related reserves had unique considerations. We continued to evaluate the activities with these specialty pharmacies and updated the related reserves accordingly. Rebates – Our provision for rebates was estimated based on our customers’ contracted rebate programs and our historical experience of rebates paid. Discounts – The provision was estimated based upon invoice billings, utilizing historical customer payment experience. Performance Obligations A performance obligation is a promise in a contract to transfer distinct goods or services to the customer. Our performance obligations include commercialization license rights, development services and services associated with the regulatory approval process. We have optional additional items in contracts, which are accounted for as separate contracts when the customer elects such options. Arrangements that include a promise for future commercial product supply and optional research and development services at the customer’s discretion are generally considered options. We assess if these options provide a material right to the customer and, if so, such material rights are accounted for as separate performance obligations. If we are entitled to additional payments when the customer exercises these options, any additional payments are recorded in revenue when the customer obtains control of the goods or services. Transaction Price We have both fixed and variable considerations. Non-refundable upfront payments are considered fixed, while milestone payments are identified as variable consideration when determining the transaction price. Funding of research and development activities is considered variable until such costs are reimbursed at which point, they are considered fixed. We allocate the total transaction price to each performance obligation based on the relative estimated standalone selling prices of the promised goods or services for each performance obligation. At the inception of each arrangement that includes milestone payments, we evaluate whether the milestones are considered probable of being achieved and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the value of the associated milestone is included in the transaction price. Milestone payments that are not within our control, such as approvals from regulators, are not considered probable of being achieved until those approvals are received. For arrangements that include sales-based royalties or earn-out payments, including milestone payments based on the level of sales, and the license or purchase agreement is deemed to be the predominant item to which the royalties or earn-out payments relate, we recognize revenue at the later of (a) when the related sales occur, or (b) when the performance obligation to which some or all of the royalty or earn-out payment has been allocated has been satisfied (or partially satisfied). Allocation of Consideration As part of the accounting for these arrangements, we must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. Estimated selling prices for license rights are calculated using the residual approach. For all other performance obligations, we use a cost-plus margin approach. Timing of Recognition Significant management judgment is required to determine the level of effort required under an arrangement and the period over which we expect to complete our performance obligations under an arrangement. We estimate the performance period or measure of progress at the inception of the arrangement and re-evaluate it each reporting period. This re-evaluation may shorten or lengthen the period over which revenue is recognized. Changes to these estimates are recorded on a cumulative catch-up basis. If we cannot reasonably estimate when our performance obligations either are completed or become inconsequential, then revenue recognition is deferred until we can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. Revenue is recognized for licenses or sales of functional intellectual property at the point in time the customer can use and benefit from the license. For performance obligations that are services, revenue is recognized over time proportionate to the costs that we have incurred to perform the services using the cost-to-cost input method. Contract Assets and liabilities There were no contract assets or liabilities in our condensed financial statements at June 30, 2021. The following table presents the activity related to our accounts receivable for the six-month period ended June 30, 2021. June 30, 2021 (In thousands) Balance at January 1, 2021 $ 884 Additions 445 Deductions (1,226) Balance at June 30, 2021 $ 103 Research and Development Costs and Related Accrual Research and development expenses include internal and external costs. Internal costs include salaries and employment related expenses, facility costs, administrative expenses and allocations of corporate costs. External expenses consist of costs associated with outsourced contract research organization (“CRO”) activities, sponsored research studies, product registration, patent application and prosecution, and investigator sponsored trials. When we are conducting clinical trials, we record accruals for estimated ongoing clinical trial costs. Clinical trial costs represent costs incurred by CROs and clinical sites. These costs are recorded as a component of research and development expenses. Under the agreements, progress payments are typically made to investigators, clinical sites and CROs. The progress of the clinical trials, including levels of patient enrollment, invoices received and contracted costs, is analyzed when evaluating the adequacy of accrued liabilities. Significant judgments and estimates must be made and used in determining the accrued balance in any accounting period. Actual results could differ from those estimates under different assumptions. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. Leases In compliance with Accounting Standard Update, or ASU, No. 2016-02, Leases (Topic 842), we determine whether the arrangement is or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in lease contracts is typically not readily determinable, and therefore, we utilize our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. Lease expense is recognized over the expected term on a straight-line basis. Operating leases are recognized on our condensed balance sheets as right-of-use assets, operating lease liabilities current and operating lease liabilities non-current. We no longer recognize deferred rent on our condensed balance sheets. The following table presents the minimum lease payments of our operating lease: 2021 $ 62 2022 127 2023 130 2024 66 Total minimum lease payments (base rent) 385 Less: imputed interest (33) Total operating lease liabilities $ 352 Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“Topic 740”): our condensed financial statements. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses, which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective beginning on January 1, 2023. We are currently assessing the impact of the adoption of Topic 326 on our financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform, which provides companies with optional guidance, including expedients and exceptions for applying GAAP to contracts and other transactions affected by reference rate reform, such as the London Interbank Offered Rate (LIBOR). This new standard was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. We are evaluating the effects that the adoption of this guidance will have on our financial statements and disclosures. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments. ASU 2020-06 eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. The guidance also requires entities to use the if converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance is effective beginning after December 15, 2023 and must be applied using either a modified or full retrospective approach. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our financial statements and related disclosures. Subsequent Events We have evaluated events that have occurred after June 30, 2021 and through the date that our condensed financial statements are issued. Fair Value Measurements Financial instruments, including receivables, accounts payable and accrued liabilities are carried at cost, and approximate their fair values due to the short-term nature of these instruments. Our investments in money market funds are classified within Level 1 of the fair value hierarchy. Our derivative liability was classified within level 3 of the fair value hierarchy because the fair value is calculated using significant judgment based on our own assumptions in the valuation of this liability. At June 30, 2021 and December 31, 2020, the fair value of our investments in money market funds were approximately $9.5 million and $5.1 million, respectively, which are included within our cash and cash equivalents in our condensed balance sheets. There were no warrant liabilities at June 30, 2021. The following table presents a roll forward of the fair value of our warrant liability, the fair value of which is determined by Level 3 inputs for the six-month period ended June 30, 2020 (in thousands): June 30, 2020 Fair value, beginning of period $ 320 Issuance of warrants 1,654 Change in fair value (1) 923 Reclassification of warrants to additional paid-in capital (2,897) Fair value, end of period $ — (1) Recognized as non-cash loss on changes in fair value of warrants in the condensed statements of operations and comprehensive loss. |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2021 | |
Stock Plans | |
Stock Plans | 2. Stock Plans The following table summarizes option activity: Weighted Weighted Average Average Remaining Aggregate Exercise Option Intrinsic Options (in Price per Term Value thousands) share (in years) (in thousands) Outstanding at December 31, 2020 28 $ 242.70 6.35 $ — Granted 670 4.02 Forfeited or expired (6) 137.74 Outstanding at June 30, 2021 692 $ 12.46 9.49 $ — Exercisable at June 30, 2021 22 $ 272.90 5.50 $ — No options to purchase common shares were granted during the three-month period ended June 30, 2021. The following table summarizes the stock-based compensation expense recorded for awards under our stock option plans (in thousands): Three Months Ended Six Months Ended (in thousands) June 30, June 30, 2021 2020 2021 2020 Research and development $ 214 $ — $ 334 $ — Selling, general and administrative 233 79 361 (5) Total stock-based compensation $ 447 $ 79 $ 695 $ (5) We use the Black-Scholes-Merton option-pricing model with the following assumptions to estimate the fair value of our stock options: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted-average risk-free interest rate — % 0.4 % 0.5 % 0.4 % Expected dividend payments — — — — Expected holding period (years) 1 — 5.8 5.5 5.8 Weighted-average volatility factor 2 — 1.04 1.14 1.04 Estimated forfeiture rates for options granted 3 — % 28 % 30 % 28 % (1) Expected holding period is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and the expectations of future employee behavior. (2) Weighted average volatility is based on the historical volatility of our common stock. (3) Estimated forfeiture rates are based on historical data. As of June 30, 2021, there was approximately $0.9 million of total unrecognized compensation expense related to non-vested stock options. This expense is expected to be recognized over a weighted-average period of approximately 1.4 years. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Net Loss Per Share | |
Net Loss Per Share | 3. Net Loss Per Share The table below presents common shares underlying stock options, warrants and convertible loans that are excluded from the calculation of the weighted average number of common shares outstanding used for the calculation of diluted net loss per common share. These are excluded from the calculation due to their anti-dilutive effect: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2021 2020 2021 2020 Weighted-average anti-dilutive common shares resulting from options 693 30 547 32 Weighted-average anti-dilutive common shares resulting from warrants 2,083 279 1,175 279 Convertible debt — 108 — 108 2,776 417 1,722 419 |
Molteni Purchase Agreement
Molteni Purchase Agreement | 6 Months Ended |
Jun. 30, 2021 | |
Molteni Purchase Agreement | |
Molteni Purchase Agreement | 4. Molteni Purchase Agreement On March 21, 2018, we entered into a purchase agreement (“Molteni Purchase Agreement”) with L. Molteni & C. Dei Frattelli Alitti Società Di Esercizio S.P.A. (“Molteni”) pursuant to which Molteni acquired the European intellectual property related to Probuphine and gained the exclusive right to commercialize the Probuphine product supplied by us, to be marketed under the tradename Sixmo, in the EU, as well as certain countries of the Commonwealth of Independent States, the Middle East and North Africa. Following certain amendments to the Molteni Purchase Agreement in August 2018 and September 2019, in October 2020, we entered into a Debt Settlement and Release Agreement (“DSRA Agreement”) with Molteni and Horizon Technology Finance Corporation (“Horizon”), the holders of our outstanding secured debt, to settle such obligations for $1.6 million in cash, the transfer of certain Probuphine assets to Molteni, including all of our manufacturing equipment, and the termination of our rights to future payments under the Molteni Purchase Agreement. The DSRA Agreement, provided for the release to us of the remaining collateral. |
JT Pharmaceuticals Asset Purcha
JT Pharmaceuticals Asset Purchase Agreement | 6 Months Ended |
Jun. 30, 2021 | |
JT Pharmaceuticals Asset Purchase Agreement | |
JT Pharmaceuticals Asset Purchase Agreement | 5. JT Pharmaceuticals Asset Purchase Agreement In October 2020, in connection with our decision to discontinue our commercial operations, we entered into an Asset Purchase Agreement (the “JT Agreement”) with JT Pharmaceuticals, Inc. (“JT Pharma”) to acquire JT Pharma’s kappa opioid agonist peptide, TP-2021 (formerly JT-09) for use in combination with our ProNeura long-term, continuous drug delivery technology, for the treatment of chronic pruritus and other medical conditions. Under the terms of the JT Agreement, JT Pharma received a $15,000 closing payment and is entitled to receive future milestone payments, payable in cash or in stock, based on the achievement of regulatory milestones, and single-digit percentage earn-out payments on net sales of the product if successfully developed and approved for commercialization. To date, none of these events have occurred and no contingent consideration, milestone or earn-out payments have been recognized. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 6. Commitments and Contingencies Minimum payments Our manufacturing agreement, as amended, with DPT Laboratories, Ltd. (“DPT”), our contract manufacturer for our Probuphine product, provided for a minimum annual manufacturing fee of $1.0 million. In the event we did not have DPT manufacture sufficient quantities of product to exceed the minimum annual manufacturing fee, DPT may invoice us for the amount of the shortfall. Legal Proceedings A legal proceeding has been initiated by a former employee alleging wrongful termination, retaliation, infliction of emotional distress, negligent supervision, hiring and retention and slander. An independent investigation into this individual’s allegations of whistleblower retaliation, while still an employee, was conducted utilizing an outside investigator and concluded that such allegations were not substantiated. We intend to vigorously defend the lawsuit (which we have compelled into arbitration); however, in light of our cash position, there can be no assurance that the defense and/or settlement of this matter will not have a material adverse impact on our business. |
Debt Agreements
Debt Agreements | 6 Months Ended |
Jun. 30, 2021 | |
Debt Agreements | |
Debt Agreements | 7. Debt Agreements Horizon and Molteni Loans In March 2018, we entered into an Amended and Restated Venture Loan and Security Agreement (the "Loan Agreement") with Horizon and Molteni pursuant to which Horizon assigned approximately $2.4 million of the $4.0 million outstanding principal balance of its loan to us to Molteni and Molteni was appointed as the collateral agent and assumed majority and administrative control of the loan. Under the Loan Agreement, Molteni had the right to convert its portion of the debt into shares of our common stock at a conversion price of $216.00 per share and was required to effect this conversion of debt to equity upon completion of an equity financing meeting specified criteria. In connection with the Loan Agreement, we issued warrants to purchase an aggregate of 223 shares of our common stock with an exercise price per share of $216.00 to Horizon. In September 2019, we entered into an amendment to the Loan Agreement pursuant to which the interest-only payment and forbearance periods were extended by one year to December 31, 2020 and the maturity date was extended by one year to June 1, 2022. In connection with the amendment to the Loan Agreement, the final payments to the lenders were increased by an aggregate of approximately $0.3 million (exclusive of a restructuring fee payable to Horizon) and the conversion provisions related to Molteni's portion of the loan amount were revised to eliminate the mandatory conversion feature, to reduce the conversion price to $6.75 and to cap the number of shares issuable upon conversion to 114,093. In October 2020, we entered into the DSRA Agreement with Molteni and Horizon to settle our obligations for $1.6 million in cash, the transfer of certain Probuphine assets to Molteni, including all of our manufacturing equipment located at DPT, and the termination of our rights to future payments under the Purchase Agreement with Molteni. Paycheck Protection Program Loan On April 20, 2020, we received an approximately $654,000 loan (“PPP Loan”) pursuant to the Paycheck Protection Program of the CARES Act that bore interest at the annual rate of 1.0% and matured in April 2022. The proceeds of the PPP Loan were to be used to retain workers and maintain payroll and make mortgage interest, lease and utility payments and were subject to forgiveness in accordance with requirements of the Small Business Administration. The PPP Loan originally had a six-month deferral of payments period which was extended to sixteen months during the third quarter of 2020. In May 2021, the entire balance of the PPP loan along with accrued interest was forgiven and the approximately $0.7 million gain on extinguishment of the debt was included in other income (expense) in our condensed statements of operations and comprehensive loss. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity | |
Stockholders' Equity | 8. Stockholders’ Equity Our common stock outstanding as of June 30, 2021 and December 31, 2020 was 9,864,068 shares and 7,139,068 shares, respectively. Annual Meeting of Stockholders In January 2021, our stockholders approved an amendment to the 2015 Omnibus Equity Incentive plan to increase the number of authorized shares to 1,000,000 shares. January 2021 Offering In January 2021, we completed an offering with several accredited institutional investors pursuant to which we January 2020 Offering In January 2020, we completed a financing with several institutional investors pursuant to which we issued 290,000 shares of our common stock in a registered direct offering and warrants to purchase 290,000 shares of our common stock with an exercise price of $7.50 per share in a concurrent private placement (the “January 2020 Warrants") pursuant to which we received net cash proceeds of approximately $1.9 million, after deduction of underwriting fees and other offering expenses. The January 2020 Warrants became exercisable in September 2020 following receipt of stockholder approval of an increase in our authorized shares of common stock and they expire in July 2025. Financing costs of approximately $0.2 million allocated to the January 2020 warrant liability were expensed and included in other income (expense) in the condensed statements of operations and comprehensive loss. The January 2020 warrants were originally recorded as liabilities. In March 2020, we amended the January 2020 Warrants and warrants we issued in connection with a financing in August 2019 to modify certain provisions that had required them to be previously classified as liabilities and to enable them to be classified as equity under the relevant accounting standards. As a result, we reclassified the fair value of the warrants on the date of the amendment from warrant liabilities to additional paid-in capital in the balance sheet and recognized an approximately $0.9 million non-cash loss on changes in the fair value of warrants in the condensed statements of operations and comprehensive loss. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations | |
Discontinued Operations | 9. Discontinued Operations The components of loss from discontinued operations as reported in our condensed statements of operations and comprehensive loss were as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 (In thousands, except per share data) Revenue: Product revenue $ 76 $ 286 Costs and expenses: Cost of goods sold 228 399 Research and development 363 828 Selling, general and administrative 2,251 4,077 Total costs and expenses 2,842 5,304 Loss from discontinued operations (2,766) (5,018) Other expense, net — — Net loss from discontinued operations $ (2,766) $ (5,018) Basic and diluted net loss per common share from discontinued operations $ (0.87) $ (1.70) Weighted average shares used in computing basic and diluted net loss per common share 3,165 2,960 The following table presents information related to assets and liabilities reported as discontinued operations in our condensed balance sheets: June 30, December 31, 2021 2020 (In thousands) Prepaid expenses and other current assets $ 70 $ 181 Discontinued operations – current assets $ 70 $ 181 Accounts payable $ 1,249 $ 1,515 Accrued clinical trials expenses 25 80 Accrued sales allowances — 61 Other accrued liabilities 353 304 Discontinued operations – current liabilities $ 1,627 $ 1,960 During the three and six months ended June 30, 2020 we recognized non-cash stock-based compensation expenses of approximately $77,000 and $101,000, respectively, which is included in discontinued operations. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization and Summary of Significant Accounting Policies | |
The Company | The Company We are a pharmaceutical company developing therapeutics utilizing our proprietary long-term drug delivery platform, ProNeura™, for the treatment of select chronic diseases for which steady state delivery of a drug has the potential to provide an efficacy and/or safety benefit. ProNeura consists of a small, solid implant made from a mixture of ethylene-vinyl acetate, or EVA, and a drug substance. The resulting product is a solid matrix that is designed to be administered subdermally, in a brief, outpatient procedure and is removed in a similar manner at the end of the treatment period. These procedures may be performed by trained health care providers, or HCPs, including licensed and surgically qualified physicians, nurse practitioners, and physician’s assistants in a HCP’s office or other clinical setting. Our first product based on our ProNeura technology was the Probuphine ® We continue to monitor the impact of the COVID-19 pandemic on all aspects of our business, including how it has and will continue to impact our operations and the operations of our vendors and contractors, and may take further precautionary and preemptive action as may be required by federal, state or local authorities. The full extent and duration of the impact of COVID-19 on our operations and financial performance is currently unknown and depends on future developments that are uncertain and unpredictable. All share and per share amounts contained in this report on Form 10-Q give retroactive effect to the reverse split effected by the board of directors, or Board, in November 2020 at a ratio of one share for every thirty shares then outstanding. The accompanying condensed financial statements have been prepared assuming we will continue as a going concern. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statement presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or any future interim periods. The balance sheet as of December 31, 2020 is derived from the audited financial statements at that date but does not include all the information and footnotes required by GAAP for complete financial statements. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and footnotes thereto included in the Titan Pharmaceuticals, Inc. 2020 10-K. The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. Actual results could differ from those estimates. As of June 30, 2021, we had cash and cash equivalents of approximately $9.7 million, which we believe is sufficient to fund our planned operations into the first quarter of 2022. We will require additional funds to finance our operations. We are exploring several financing alternatives; however, there can be no assurance that our efforts to obtain the funding required to continue our operations will be successful and there is substantial doubt about our ability to continue as a going concern. |
Discontinued Operations | Discontinued Operations In October 2020, we announced our decision to discontinue selling Probuphine in the U.S. and wind down our commercialization activities, and to pursue a plan that will enable us to focus on our current, early-stage ProNeura-based product development programs. The accompanying condensed financial statements have been recast for all periods presented to reflect the assets, liabilities, revenue and expenses related to our U.S. commercialization activities as discontinued operations (see Note 9). The accompanying condensed financial statements are generally presented in conformity with our historical format. We believe this format provides comparability with the previously filed financial statements. |
Going concern assessment | Going Concern Assessment We assess going concern uncertainty in our condensed financial statements to determine if we have sufficient cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one year from the date the condensed financial statements are issued, which is referred to as the “look-forward period” as defined by Accounting Standard Update (“ASU”) No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to us, we will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary, among other factors. Based on this assessment, as necessary or applicable, we make certain assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent we deem probable that those implementations can be achieved, and we have the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15. Based upon the above assessment, we concluded that, at the date of filing the condensed financial statements in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021, we did not have sufficient cash to fund our operations for the next 12 months without securing additional funds and, therefore, there is substantial doubt about our ability to continue as a going concern within 12 months after the date the condensed financial statements were issued. Additionally, we have suffered recurring losses from operations and have an accumulated deficit that raises substantial doubt about our ability to continue as a going concern. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Inventories | Inventories Inventories are recorded at the lower of cost or net realizable value. Cost is based on the first in, first out method. We regularly review inventory quantities on hand and write down to its net realizable value any inventory that we believe to be impaired. The determination of net realizable value requires judgment including consideration of many factors, such as estimates of future product demand, product net selling prices, current and future market conditions and potential product obsolescence, among others. The components of inventories are as follows: As of (in thousands) June 30, 2021 December 31, 2020 Raw materials and supplies $ 60 $ 170 Finished goods 69 158 $ 129 $ 328 The approximately $69,000 of finished goods inventory at June 30, 2021 included materials held for potential sale to Molteni and Knight. |
Revenue Recognition | Revenue Recognition We generate revenue principally from collaborative research and development arrangements, sales or licenses of technology, government grants, sales of Probuphine materials to Molteni and Knight, and prior to the discontinued operations, the sale of Probuphine in the U.S. Consideration received for revenue arrangements with multiple components is allocated among the separate performance obligations based upon their relative estimated standalone selling price. In determining the appropriate amount of revenue to be recognized as we fulfill our obligations under our agreements, we perform the following steps for our revenue recognition: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) we satisfy each performance obligation. Grant Revenue We have contracts with National Institute on Drug Abuse or NIDA, within the U.S. Department of Health and Human Services, or HHS, and other government-sponsored organizations for research and development related activities that provide for payments for reimbursed costs, which may include overhead and general and administrative costs. We recognize revenue from these contracts as we perform services under these arrangements when the funding is committed. Associated expenses are recognized when incurred as research and development expense. Revenues and related expenses are presented gross in the condensed statements of operations and comprehensive loss. Net Product Revenue Prior to the discontinuation of our commercialization activities relating to Probuphine in the U.S., we recognized revenue from product sales when control of the product transfers, generally upon shipment or delivery to our customers, which include distributors. As customary in the pharmaceutical industry, our gross product revenue was subject to a variety of deductions in the forms of variable consideration, such as rebates, chargebacks, returns and discounts, in order to arrive at reported net product revenue. This variable consideration was estimated using the most-likely amount method, which is the single most-likely outcome under a contract and was typically at stated contractual rates. The actual outcome of this variable consideration could materially differ from our estimates. From time to time, we would adjust our estimates of this variable consideration when trends or significant events indicated that a change in estimate is appropriate to reflect the actual experience. Additionally, we continued to assess the estimates of our variable consideration as we continued to accumulate additional historical data. Returns – Consistent with the provisions of ASC 606, we estimated returns at the inception of each transaction, based on multiple considerations, including historical sales, historical experience of actual customer returns, levels of inventory in our distribution channel, expiration dates of purchased products and significant market changes which could impact future expected returns to the extent that we would not reverse any receivables, revenues, or contract assets already recognized under the agreement. During the year ended December 31, 2019, we entered into agreements with large national specialty pharmacies with a distribution channel different from that of our existing customers and, therefore, the related reserves had unique considerations. We continued to evaluate the activities with these specialty pharmacies and updated the related reserves accordingly. Rebates – Our provision for rebates was estimated based on our customers’ contracted rebate programs and our historical experience of rebates paid. Discounts – The provision was estimated based upon invoice billings, utilizing historical customer payment experience. Performance Obligations A performance obligation is a promise in a contract to transfer distinct goods or services to the customer. Our performance obligations include commercialization license rights, development services and services associated with the regulatory approval process. We have optional additional items in contracts, which are accounted for as separate contracts when the customer elects such options. Arrangements that include a promise for future commercial product supply and optional research and development services at the customer’s discretion are generally considered options. We assess if these options provide a material right to the customer and, if so, such material rights are accounted for as separate performance obligations. If we are entitled to additional payments when the customer exercises these options, any additional payments are recorded in revenue when the customer obtains control of the goods or services. Transaction Price We have both fixed and variable considerations. Non-refundable upfront payments are considered fixed, while milestone payments are identified as variable consideration when determining the transaction price. Funding of research and development activities is considered variable until such costs are reimbursed at which point, they are considered fixed. We allocate the total transaction price to each performance obligation based on the relative estimated standalone selling prices of the promised goods or services for each performance obligation. At the inception of each arrangement that includes milestone payments, we evaluate whether the milestones are considered probable of being achieved and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the value of the associated milestone is included in the transaction price. Milestone payments that are not within our control, such as approvals from regulators, are not considered probable of being achieved until those approvals are received. For arrangements that include sales-based royalties or earn-out payments, including milestone payments based on the level of sales, and the license or purchase agreement is deemed to be the predominant item to which the royalties or earn-out payments relate, we recognize revenue at the later of (a) when the related sales occur, or (b) when the performance obligation to which some or all of the royalty or earn-out payment has been allocated has been satisfied (or partially satisfied). Allocation of Consideration As part of the accounting for these arrangements, we must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. Estimated selling prices for license rights are calculated using the residual approach. For all other performance obligations, we use a cost-plus margin approach. Timing of Recognition Significant management judgment is required to determine the level of effort required under an arrangement and the period over which we expect to complete our performance obligations under an arrangement. We estimate the performance period or measure of progress at the inception of the arrangement and re-evaluate it each reporting period. This re-evaluation may shorten or lengthen the period over which revenue is recognized. Changes to these estimates are recorded on a cumulative catch-up basis. If we cannot reasonably estimate when our performance obligations either are completed or become inconsequential, then revenue recognition is deferred until we can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. Revenue is recognized for licenses or sales of functional intellectual property at the point in time the customer can use and benefit from the license. For performance obligations that are services, revenue is recognized over time proportionate to the costs that we have incurred to perform the services using the cost-to-cost input method. Contract Assets and liabilities There were no contract assets or liabilities in our condensed financial statements at June 30, 2021. The following table presents the activity related to our accounts receivable for the six-month period ended June 30, 2021. June 30, 2021 (In thousands) Balance at January 1, 2021 $ 884 Additions 445 Deductions (1,226) Balance at June 30, 2021 $ 103 |
Research and Development Costs and Related Accrual | Research and Development Costs and Related Accrual Research and development expenses include internal and external costs. Internal costs include salaries and employment related expenses, facility costs, administrative expenses and allocations of corporate costs. External expenses consist of costs associated with outsourced contract research organization (“CRO”) activities, sponsored research studies, product registration, patent application and prosecution, and investigator sponsored trials. When we are conducting clinical trials, we record accruals for estimated ongoing clinical trial costs. Clinical trial costs represent costs incurred by CROs and clinical sites. These costs are recorded as a component of research and development expenses. Under the agreements, progress payments are typically made to investigators, clinical sites and CROs. The progress of the clinical trials, including levels of patient enrollment, invoices received and contracted costs, is analyzed when evaluating the adequacy of accrued liabilities. Significant judgments and estimates must be made and used in determining the accrued balance in any accounting period. Actual results could differ from those estimates under different assumptions. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. |
Leases | Leases In compliance with Accounting Standard Update, or ASU, No. 2016-02, Leases (Topic 842), we determine whether the arrangement is or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in lease contracts is typically not readily determinable, and therefore, we utilize our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. Lease expense is recognized over the expected term on a straight-line basis. Operating leases are recognized on our condensed balance sheets as right-of-use assets, operating lease liabilities current and operating lease liabilities non-current. We no longer recognize deferred rent on our condensed balance sheets. The following table presents the minimum lease payments of our operating lease: 2021 $ 62 2022 127 2023 130 2024 66 Total minimum lease payments (base rent) 385 Less: imputed interest (33) Total operating lease liabilities $ 352 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“Topic 740”): our condensed financial statements. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses, which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective beginning on January 1, 2023. We are currently assessing the impact of the adoption of Topic 326 on our financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform, which provides companies with optional guidance, including expedients and exceptions for applying GAAP to contracts and other transactions affected by reference rate reform, such as the London Interbank Offered Rate (LIBOR). This new standard was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. We are evaluating the effects that the adoption of this guidance will have on our financial statements and disclosures. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments. ASU 2020-06 eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. The guidance also requires entities to use the if converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance is effective beginning after December 15, 2023 and must be applied using either a modified or full retrospective approach. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our financial statements and related disclosures. |
Subsequent Events | Subsequent Events We have evaluated events that have occurred after June 30, 2021 and through the date that our condensed financial statements are issued. |
Fair Value Measurements | Fair Value Measurements Financial instruments, including receivables, accounts payable and accrued liabilities are carried at cost, and approximate their fair values due to the short-term nature of these instruments. Our investments in money market funds are classified within Level 1 of the fair value hierarchy. Our derivative liability was classified within level 3 of the fair value hierarchy because the fair value is calculated using significant judgment based on our own assumptions in the valuation of this liability. At June 30, 2021 and December 31, 2020, the fair value of our investments in money market funds were approximately $9.5 million and $5.1 million, respectively, which are included within our cash and cash equivalents in our condensed balance sheets. There were no warrant liabilities at June 30, 2021. The following table presents a roll forward of the fair value of our warrant liability, the fair value of which is determined by Level 3 inputs for the six-month period ended June 30, 2020 (in thousands): June 30, 2020 Fair value, beginning of period $ 320 Issuance of warrants 1,654 Change in fair value (1) 923 Reclassification of warrants to additional paid-in capital (2,897) Fair value, end of period $ — (1) Recognized as non-cash loss on changes in fair value of warrants in the condensed statements of operations and comprehensive loss. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization and Summary of Significant Accounting Policies | |
Schedule of components of inventories | As of (in thousands) June 30, 2021 December 31, 2020 Raw materials and supplies $ 60 $ 170 Finished goods 69 158 $ 129 $ 328 The approximately $69,000 of finished goods inventory at June 30, 2021 included materials held for potential sale to Molteni and Knight. |
Schedule of activity related to our accounts receivable | The following table presents the activity related to our accounts receivable for the six-month period ended June 30, 2021. June 30, 2021 (In thousands) Balance at January 1, 2021 $ 884 Additions 445 Deductions (1,226) Balance at June 30, 2021 $ 103 |
Schedule of minimum operating lease payments | The following table presents the minimum lease payments of our operating lease: 2021 $ 62 2022 127 2023 130 2024 66 Total minimum lease payments (base rent) 385 Less: imputed interest (33) Total operating lease liabilities $ 352 |
Schedule of fair value of warrant liability | There were no warrant liabilities at June 30, 2021. The following table presents a roll forward of the fair value of our warrant liability, the fair value of which is determined by Level 3 inputs for the six-month period ended June 30, 2020 (in thousands): June 30, 2020 Fair value, beginning of period $ 320 Issuance of warrants 1,654 Change in fair value (1) 923 Reclassification of warrants to additional paid-in capital (2,897) Fair value, end of period $ — (1) Recognized as non-cash loss on changes in fair value of warrants in the condensed statements of operations and comprehensive loss. |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stock Plans | |
Schedule of option activity | The following table summarizes option activity: Weighted Weighted Average Average Remaining Aggregate Exercise Option Intrinsic Options (in Price per Term Value thousands) share (in years) (in thousands) Outstanding at December 31, 2020 28 $ 242.70 6.35 $ — Granted 670 4.02 Forfeited or expired (6) 137.74 Outstanding at June 30, 2021 692 $ 12.46 9.49 $ — Exercisable at June 30, 2021 22 $ 272.90 5.50 $ — |
Schedule of the stock-based compensation expense | The following table summarizes the stock-based compensation expense recorded for awards under our stock option plans (in thousands): Three Months Ended Six Months Ended (in thousands) June 30, June 30, 2021 2020 2021 2020 Research and development $ 214 $ — $ 334 $ — Selling, general and administrative 233 79 361 (5) Total stock-based compensation $ 447 $ 79 $ 695 $ (5) |
Schedule of assumptions to estimate the fair value of options | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted-average risk-free interest rate — % 0.4 % 0.5 % 0.4 % Expected dividend payments — — — — Expected holding period (years) 1 — 5.8 5.5 5.8 Weighted-average volatility factor 2 — 1.04 1.14 1.04 Estimated forfeiture rates for options granted 3 — % 28 % 30 % 28 % (1) Expected holding period is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and the expectations of future employee behavior. (2) Weighted average volatility is based on the historical volatility of our common stock. (3) Estimated forfeiture rates are based on historical data. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Net Loss Per Share | |
Schedule of antidilutive securities excluded from computation of net loss per common share | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2021 2020 2021 2020 Weighted-average anti-dilutive common shares resulting from options 693 30 547 32 Weighted-average anti-dilutive common shares resulting from warrants 2,083 279 1,175 279 Convertible debt — 108 — 108 2,776 417 1,722 419 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations | |
Schedule of components of loss from discontinued operations as reported in our statements of operations and comprehensive loss and assets and liabilities reported as discontinued operations in our condensed balance sheets | Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 (In thousands, except per share data) Revenue: Product revenue $ 76 $ 286 Costs and expenses: Cost of goods sold 228 399 Research and development 363 828 Selling, general and administrative 2,251 4,077 Total costs and expenses 2,842 5,304 Loss from discontinued operations (2,766) (5,018) Other expense, net — — Net loss from discontinued operations $ (2,766) $ (5,018) Basic and diluted net loss per common share from discontinued operations $ (0.87) $ (1.70) Weighted average shares used in computing basic and diluted net loss per common share 3,165 2,960 June 30, December 31, 2021 2020 (In thousands) Prepaid expenses and other current assets $ 70 $ 181 Discontinued operations – current assets $ 70 $ 181 Accounts payable $ 1,249 $ 1,515 Accrued clinical trials expenses 25 80 Accrued sales allowances — 61 Other accrued liabilities 353 304 Discontinued operations – current liabilities $ 1,627 $ 1,960 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Components of Inventories (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Organization and Summary of Significant Accounting Policies | ||
Raw materials and supplies | $ 60,000 | $ 170,000 |
Finished goods | 69,000 | 158,000 |
Total inventories | $ 129,000 | $ 328,000 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Maturities of operating lease liabilities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Organization and Summary of Significant Accounting Policies | |
2021 | $ 62 |
2022 | 127 |
2023 | 130 |
2024 | 66 |
Total minimum lease payments (base rent) | 385 |
Less: imputed interest | (33) |
Total operating lease liabilities | $ 352 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Activity related to our accounts receivable (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Organization and Summary of Significant Accounting Policies | |
Balance at January 1, 2021 | $ 884 |
Additions | 445 |
Deductions | (1,226) |
Balance at June 30, 2021 | $ 103 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Fair Value of Warrant and Derivative Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Jun. 30, 2020 | |
Schedule of Organization and Summary of Significant Accounting Policies [Line Items] | ||
Reclassification of warrants to additional paid-in capital | $ (2,897) | |
Warrant Liability | ||
Schedule of Organization and Summary of Significant Accounting Policies [Line Items] | ||
Fair value, beginning of period | $ 320 | $ 320 |
Issuance of warrants | 1,654 | |
Change in fair value | 923 | |
Reclassification of warrants to additional paid-in capital | $ (2,897) |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 6 Months Ended | |
Nov. 30, 2020 | Jun. 30, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Schedule of Organization and Summary of Significant Accounting Policies | |||
Number of Operating Segments | segment | 1 | ||
Reverse Split Ratio | 1 | ||
Cash and cash equivalents | $ 9,680,000 | $ 5,413,000 | |
Warrant liabilities | 0 | ||
Fair Value, Recurring | Money Market Funds | |||
Schedule of Organization and Summary of Significant Accounting Policies | |||
Cash and cash equivalents | 9,500,000 | $ 5,100,000 | |
October 2020 Offering | |||
Schedule of Organization and Summary of Significant Accounting Policies | |||
Cash and cash equivalents | $ 9,700,000 |
Stock Plans - Option activity (
Stock Plans - Option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Stock Plans | |||
Number of options Outstanding at December 31, 2020 | 28,000 | ||
Shares, Granted | 0 | 670,000 | |
Shares, Forfeited or expired | (6,000) | ||
Number of Options Outstanding at June 30, 2021 | 692,000 | 692,000 | 28,000 |
Shares, Exercisable at June 30, 2021 | 22,000 | 22,000 | |
Weighted Average Exercise Price, Outstanding at December 31, 2020 | $ 242.70 | ||
Weighted Average Exercise Price, Granted | 4.02 | ||
Weighted Average Exercise Price, Forfeited or expired | 137.74 | ||
Weighted Average Exercise Price, Outstanding at June 30, 2021 | $ 12.46 | 12.46 | $ 242.70 |
Weighted Average Exercisable at June 30, 2021 | $ 272.90 | $ 272.90 | |
Weighted Average Remaining Contractual Term, Outstanding (Years) | 9 years 5 months 26 days | 6 years 4 months 6 days | |
Weighted Average Remaining Contractual Term, Exercisable at end of year | 5 years 6 months | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2020 | $ 0 | ||
Aggregate Intrinsic Value, Outstanding at June 30, 2021 | $ 0 | 0 | $ 0 |
Aggregate Intrinsic Value, Exercisable at June 30, 2021 | $ 0 | $ 0 |
Stock Plans - Stock-based compe
Stock Plans - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Total stock-based compensation expense | $ 447 | $ 79 | $ 695 | $ (5) |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Total stock-based compensation expense | 214 | 0 | 334 | 0 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | ||||
Total stock-based compensation expense | $ 233 | $ 79 | $ 361 | $ (5) |
Stock Plans - Fair value of sto
Stock Plans - Fair value of stock options (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Plans | ||||
Weighted-average risk-free interest rate | 0.00% | 0.40% | 0.50% | 0.40% |
Expected dividend payments | $ 0 | $ 0 | $ 0 | $ 0 |
Expected holding period (years) | 0 years | 5 years 9 months 18 days | 5 years 6 months | 5 years 9 months 18 days |
Weighted-average volatility factor | 0.00% | 1.04% | 1.14% | 1.04% |
Estimated forfeiture rates for options granted | 0.00% | 28.00% | 30.00% | 28.00% |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($)shares | Jun. 30, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares, Granted | shares | 0 | 670,000 |
Weighted-average period for recognizing non-vested stock option | 1 year 4 months 24 days | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Total unrecognized compensation expense related to non-vested stock option | $ | $ 0.9 | $ 0.9 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Amount of weighted-average anti-dilutive common shares | 2,776 | 417 | 1,722 | 419 |
Convertible debt | ||||
Amount of weighted-average anti-dilutive common shares | 0 | 108 | 108 | |
Warrant | ||||
Amount of weighted-average anti-dilutive common shares | 2,083 | 279 | 1,175 | 279 |
Employee Stock Option | ||||
Amount of weighted-average anti-dilutive common shares | 693 | 30 | 547 | 32 |
Molteni Purchase Agreement (Det
Molteni Purchase Agreement (Details) $ in Millions | Oct. 31, 2020USD ($) |
Molteni Purchase Agreement | |
Debt obligations in cash | $ 1.6 |
JT Pharmaceuticals Asset Purc_2
JT Pharmaceuticals Asset Purchase Agreement (Details) $ in Thousands | 1 Months Ended |
Oct. 31, 2020USD ($) | |
JT Pharmaceuticals | |
Asset Purchase Agreement [Line Items] | |
Closing payment | $ 15,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2021USD ($) |
Commitments and Contingencies. | |
Minimum annual manufacturing fee | $ 1 |
Debt Agreements (Details)
Debt Agreements (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 20, 2020 | May 31, 2021 | Sep. 30, 2019 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Oct. 31, 2020 | Mar. 31, 2018 |
Loan proceeds | $ 0 | $ 654 | ||||||||
Gain on debt extinguishment | $ 661 | $ 0 | $ 661 | $ 0 | ||||||
Molteni Loan | ||||||||||
Conversion Price, (in dollars per share) | $ 6.75 | |||||||||
Increase in repayment of long term debt | $ 300 | |||||||||
Debt Conversion, Converted Instrument, Shares Issued | 114,093 | |||||||||
Long-term Debt | $ 4,000 | |||||||||
Horizon Loan | ||||||||||
Conversion Price, (in dollars per share) | $ 216 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 223 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 216 | |||||||||
Long-term Debt | $ 2,400 | |||||||||
Horizon and Molteni Loans | ||||||||||
Long-term Debt | $ 1,600 | |||||||||
PPP loans | ||||||||||
Loan proceeds | $ 654,000,000 | |||||||||
Loan annual interest rate | 1.00% | |||||||||
Debt Instrument, Term | 6 months | |||||||||
Gain on debt extinguishment | $ 700 | |||||||||
Maximum | PPP loans | ||||||||||
Debt Instrument, Term | 16 months |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2021 | Jan. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Equity Offering | |||||||
Common Stock shares, Outstanding | 9,864,068 | 9,864,068 | 7,139,068 | ||||
Finance costs attributable to issuance of warrants | $ 0 | $ 211 | |||||
Non-cash loss on changes in fair value of warrants | $ 0 | $ 0 | 0 | $ 923 | |||
2015 Plan | |||||||
Equity Offering | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,000,000 | ||||||
January 2020 Offering | |||||||
Equity Offering | |||||||
Issuance of common stock, net (in shares) | 290,000 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 290,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 7.50 | ||||||
Proceeds from sale of common stock | $ 1,900 | ||||||
Finance costs attributable to issuance of warrants | $ 200 | ||||||
Non-cash loss on changes in fair value of warrants | $ 900 | ||||||
January 2021 Offering | |||||||
Equity Offering | |||||||
Issuance of common stock, net (in shares) | 2,725,000 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,725,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.55 | ||||||
Proceeds from sale of common stock | $ 8,800 |
Discontinued Operations - Compo
Discontinued Operations - Components of loss as reported in statements of operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Costs and expenses: | ||||
Net loss from discontinued operations | $ 0 | $ (2,766) | $ 0 | $ (5,018) |
Basic and diluted net loss per common share from discontinued operations | $ 0 | $ (0.87) | $ 0 | $ (1.70) |
Weighted average shares used in computing basic and diluted net loss per common share | 9,864,000 | 3,165,000 | 9,578,000 | 2,960,000 |
U.S. commercialization activities | Discontinued operations | ||||
Revenue: | ||||
Product revenue | $ 76 | $ 286 | ||
Costs and expenses: | ||||
Cost of goods sold | 228 | 399 | ||
Research and development | 363 | 828 | ||
Selling, general and administrative | 2,251 | 4,077 | ||
Total costs and expenses | 2,842 | 5,304 | ||
Loss from discontinued operations | (2,766) | (5,018) | ||
Other expense, net | 0 | 0 | ||
Net loss from discontinued operations | $ (2,766) | $ (5,018) | ||
Basic and diluted net loss per common share from discontinued operations | $ (0.87) | $ (1.70) | ||
Weighted average shares used in computing basic and diluted net loss per common share | 3,165 | 2,960 |
Discontinued Operations - Asset
Discontinued Operations - Assets and liabilities reported as discontinued operations in balance sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued operations - current assets | $ 70 | $ 181 | ||
Discontinued operations - current liabilities | 1,627 | 1,960 | ||
U.S. commercialization activities | Discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Prepaid expenses and other current assets | 70 | 181 | ||
Discontinued operations - current assets | 70 | 181 | ||
Accounts payable | 1,249 | 1,515 | ||
Accrued clinical trials expenses | 25 | 80 | ||
Accrued sales allowances | 61 | |||
Other accrued liabilities | 353 | 304 | ||
Discontinued operations - current liabilities | $ 1,627 | $ 1,960 | ||
Non-cash stock-based compensation expenses | $ 77,000 | $ 101,000 |