| Warrants
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Description | June 30, 2017 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 17,131 | $ | 17,131 | $ | — | $ | — | |||||||
Restricted cash equivalents | 13,212 | 13,212 | — | — | |||||||||||
Total assets measured and recorded at fair value | $ | 30,343 | $ | 30,343 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 8,510 | $ | — | $ | 8,510 | $ | — | |||||||
Contingent purchase price consideration | 1,227 | — | — | 1,227 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 9,737 | $ | — | $ | 8,510 | $ | 1,227 |
Description | December 31, 2016 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 16,192 | $ | 16,192 | $ | — | $ | — | |||||||
Restricted cash equivalents | 17,622 | 17,622 | — | — | |||||||||||
Total assets measured and recorded at fair value | $ | 33,814 | $ | 33,814 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 1,860 | $ | — | $ | 1,860 | $ | — | |||||||
Contingent purchase price consideration | 1,095 | — | — | 1,095 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 2,955 | $ | — | $ | 1,860 | $ | 1,095 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2017 | $ | 1,095 | |
Change in the estimated fair value of the contingent purchase price consideration | 132 | ||
Balance at June 30, 2017 | $ | 1,227 |
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June 30, 2017 | December 31, 2016 | ||||||
Clinical trial costs | $ | 899 | $ | 3,088 | |||
Professional fees | 660 | 229 | |||||
Compensation and related benefits | 976 | 975 | |||||
Interest expense | 99 | — | |||||
Accrued expenses and other current liabilities | $ | 2,634 | $ | 4,292 |
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• | With respect to interest accruing on the outstanding principal amount under the Debenture for the period prior to November 10, 2016, the Company was permitted to satisfy such interest payments in kind by adding such amount to the outstanding principal. |
• | The Purchaser can from time to time during the term of the Debenture require the Company to prepay in cash all or a portion of the outstanding principal plus accrued and unpaid interest (the “Outstanding Amount”) on written notice to the Company, provided, that such prepayment amount shall not exceed the lesser of $18,500,000 and the Outstanding Amount. If the holder elects such prepayment of the Debenture, then the number of shares subject to the warrants issued to the holder will be reduced in proportion to the percentage of principal and accrued interest required to be prepaid by the Company. In addition, the Company shall have the right to prepay in cash all (but not less than all) of the Outstanding Amount (1) at any time after November 10, 2017, or (2) upon a “change of control” (as such term is used un the Debenture), in each case with a 10% premium on the Outstanding Amount. |
• | The Purchaser shall continue to have the right, which commenced on November 10, 2016, to require the Company to redeem the Outstanding Amount, except that the maximum monthly amount of such redemptions was increased from $1,100,000 to $1,500,000; provided, that if the trading price of Common Stock is at least $8.00 per share (as may be further adjusted appropriately for stock splits, combinations or similar events) during such calendar month, then such monthly maximum redemption amount may be increased to $2,200,000 at the Purchaser’s election and if the Company has already elected to satisfy such redemptions in shares of Common Stock. In addition, notwithstanding the foregoing limitations on the monthly redemption amount, the Purchaser may elect up to three times in any 12-month period to increase the monthly maximum to $2,500,000. |
• | Among the various conditions that must be satisfied (or waived) in order for the Company to be able to elect to satisfy the monthly redemption amounts in shares of Common Stock, the Original Minimum Price Condition of $15.00 was decreased to a volume-weighted average price of $4.00 per share (the “Amended Minimum Price Condition”). |
• | Following November 10, 2016, the Purchaser may elect to convert any portion of the Outstanding Amount into shares of Common Stock at a fixed price of $12.00 per share (as adjusted appropriately for stock splits, combinations or similar events). |
• | Under the Initial Debenture, the Company was required to maintain a minimum of $24,000,000 of unencumbered cash in a restricted account as security for its obligations under the Initial Debenture. Such minimum amount has been reduced to the lesser of $18,500,000 or the Outstanding Amount. |
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As of June 30, 2017 | ||
Warrants outstanding | 19,557 | |
Stock options outstanding | 505 | |
Options reserved for future issuance under the Company’s 2016 Incentive Plan | 466 | |
Shares reserved for future issuance under the Employee Stock Purchase Plan | 17 | |
Total reserved for future issuance | 20,545 |
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Warrant Issuance | Outstanding, December 31, 2016 | Granted | Exercised | Expired | Outstanding, June 30 2017 | Expiration | ||||||||||
February 2017 | — | 17,000 | — | — | 17,000 | February 2022 | ||||||||||
July 2016 | 700 | — | — | — | 700 | January 2022 | ||||||||||
January 2016 | 682 | — | — | — | 682 | January 2021 | ||||||||||
March 2015 | 700 | — | — | — | 700 | March 2020 | ||||||||||
September 2013 | 199 | — | — | — | 199 | September 2018 | ||||||||||
December 2012 | 152 | — | — | — | 152 | December 2017 | ||||||||||
April 2011 | 13 | — | — | (13 | ) | — | April 2017 | |||||||||
Other | 124 | — | — | — | 124 | November 2021 | ||||||||||
2,570 | 17,000 | — | (13 | ) | 19,557 |
As of June 30, 2017 | ||||||||||||||
Warrant Issuance | Outstanding (in thousands) | Strike price (per share) | Expected term (years) | Volatility % | Risk-free rate % | |||||||||
February 2017 | 17,000 | $ | 1.10 | 4.62 | 136.07 | % | 1.83 | % | ||||||
July 2016 | 700 | $ | 13.00 | 4.04 | 144.12 | % | 1.73 | % | ||||||
January 2016 | 682 | $ | 28.40 | 3.53 | 150.15 | % | 1.64 | % | ||||||
March 2015 | 700 | $ | 41.60 | 2.72 | 168.20 | % | 1.50 | % | ||||||
September 2013 | 199 | $ | 50.00 | 1.22 | 100.31 | % | 1.27 | % | ||||||
December 2012 | 152 | $ | 10.32 | 0.48 | 49.17 | % | 1.13 | % | ||||||
As of December 31, 2016 | ||||||||||||||
Warrant Issuance | Outstanding (in thousands) | Strike price (per share) | Expected term (years) | Volatility % | Risk-free rate % | |||||||||
July 2016 | 700 | $ | 13.00 | 4.54 | 117.82 | % | 1.82 | % | ||||||
January 2016 | 682 | $ | 28.40 | 4.03 | 120.38 | % | 1.71 | % | ||||||
March 2015 | 700 | $ | 41.60 | 3.22 | 131.46 | % | 1.52 | % | ||||||
September 2013 | 199 | $ | 50.00 | 1.72 | 164.01 | % | 1.10 | % | ||||||
December 2012 | 152 | $ | 31.60 | 0.98 | 204.55 | % | 0.84 | % | ||||||
April 2011 | 13 | $ | 13.00 | 0.31 | 103.79 | % | 0.53 | % |
Warrant Issuance | Warrant liability, December 31, 2016 | Fair value of warrants granted | Fair value of warrants exercised | Change in fair value of warrants | Warrant liability, June 30, 2017 | ||||||||||||||
February 2017 | $ | — | $ | 10,357 | $ | — | $ | (2,345 | ) | $ | 8,012 | ||||||||
July 2016 | 753 | — | — | (540 | ) | 213 | |||||||||||||
January 2016 | 529 | — | — | (375 | ) | 154 | |||||||||||||
March 2015 | 432 | — | — | (301 | ) | 131 | |||||||||||||
September 2013 | 81 | — | — | (81 | ) | — | |||||||||||||
December 2012 | 65 | — | — | (65 | ) | — | |||||||||||||
April 2011 | — | — | — | — | — | ||||||||||||||
$ | 1,860 | $ | 10,357 | $ | — | $ | (3,707 | ) | $ | 8,510 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Research and development | $ | 35 | $ | 108 | $ | 73 | $ | 235 | |||||||
General and administrative | 162 | 514 | 352 | 1,043 | |||||||||||
Total stock-based compensation from continuing operations | $ | 197 | $ | 622 | $ | 425 | $ | 1,278 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2017 | 2015* | 2017 | 2016 | ||||||||
Risk free interest rate | 1.58 | % | 1.41 | % | 1.87 | % | 1.41 | % | |||
Volatility | 132.13 | % | 76.30 | % | 116.41 | % | 75.63 | % | |||
Expected lives (years) | 5.50 | 6.25 | 5.92 | 6.25 | |||||||
Expected dividend yield | — | % | — | % | — | % | — | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | Aggregate Intrinsic Value (In Thousands) | ||||||||
Outstanding at January 1, 2017 | 561 | $ | 41.50 | |||||||
Granted | 105 | 1.30 | ||||||||
Exercised | — | — | $ | — | ||||||
Canceled | (161 | ) | 34.21 | $ | — | |||||
Outstanding at June 30, 2017 | 505 | $ | 35.49 | $ | — | |||||
Options exercisable at June 30, 2017 | 300 | $ | 54.15 | $ | — |
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June 30, 2017 | December 31, 2016 | ||||||
Carrying amounts of current assets of discontinued operations: | |||||||
Accounts receivable | $ | 189 | $ | 813 | |||
Total current assets of discontinued operations | 189 | 813 | |||||
Carrying amounts of current liabilities of discontinued operations: | |||||||
Accounts payable | $ | 122 | $ | 3,115 | |||
Accrued expenses and other current liabilities | 8,248 | 2,944 | |||||
Total current liabilities of discontinued operations | $ | 8,370 | $ | 6,059 |
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Additional channel obligations | (105 | ) | (656 | ) | $ | (428 | ) | $ | (1,666 | ) | |||||
Selling, general, and administrative | (897 | ) | (2,233 | ) | (2,510 | ) | (4,614 | ) | |||||||
Settlements associated with USAO NJ and DOJ and the qui tam action (Note 5) | (300 | ) | — | (7,800 | ) | — | |||||||||
Loss from discontinued operations | $ | (1,302 | ) | $ | (2,889 | ) | $ | (10,738 | ) | $ | (6,280 | ) |
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Description | June 30, 2017 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 17,131 | $ | 17,131 | $ | — | $ | — | |||||||
Restricted cash equivalents | 13,212 | 13,212 | — | — | |||||||||||
Total assets measured and recorded at fair value | $ | 30,343 | $ | 30,343 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 8,510 | $ | — | $ | 8,510 | $ | — | |||||||
Contingent purchase price consideration | 1,227 | — | — | 1,227 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 9,737 | $ | — | $ | 8,510 | $ | 1,227 |
Description | December 31, 2016 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 16,192 | $ | 16,192 | $ | — | $ | — | |||||||
Restricted cash equivalents | 17,622 | 17,622 | — | — | |||||||||||
Total assets measured and recorded at fair value | $ | 33,814 | $ | 33,814 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 1,860 | $ | — | $ | 1,860 | $ | — | |||||||
Contingent purchase price consideration | 1,095 | — | — | 1,095 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 2,955 | $ | — | $ | 1,860 | $ | 1,095 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2017 | $ | 1,095 | |
Change in the estimated fair value of the contingent purchase price consideration | 132 | ||
Balance at June 30, 2017 | $ | 1,227 |
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June 30, 2017 | December 31, 2016 | ||||||
Clinical trial costs | $ | 899 | $ | 3,088 | |||
Professional fees | 660 | 229 | |||||
Compensation and related benefits | 976 | 975 | |||||
Interest expense | 99 | — | |||||
Accrued expenses and other current liabilities | $ | 2,634 | $ | 4,292 |
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As of June 30, 2017 | ||
Warrants outstanding | 19,557 | |
Stock options outstanding | 505 | |
Options reserved for future issuance under the Company’s 2016 Incentive Plan | 466 | |
Shares reserved for future issuance under the Employee Stock Purchase Plan | 17 | |
Total reserved for future issuance | 20,545 |
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Warrant Issuance | Outstanding, December 31, 2016 | Granted | Exercised | Expired | Outstanding, June 30 2017 | Expiration | ||||||||||
February 2017 | — | 17,000 | — | — | 17,000 | February 2022 | ||||||||||
July 2016 | 700 | — | — | — | 700 | January 2022 | ||||||||||
January 2016 | 682 | — | — | — | 682 | January 2021 | ||||||||||
March 2015 | 700 | — | — | — | 700 | March 2020 | ||||||||||
September 2013 | 199 | — | — | — | 199 | September 2018 | ||||||||||
December 2012 | 152 | — | — | — | 152 | December 2017 | ||||||||||
April 2011 | 13 | — | — | (13 | ) | — | April 2017 | |||||||||
Other | 124 | — | — | — | 124 | November 2021 | ||||||||||
2,570 | 17,000 | — | (13 | ) | 19,557 |
As of June 30, 2017 | ||||||||||||||
Warrant Issuance | Outstanding (in thousands) | Strike price (per share) | Expected term (years) | Volatility % | Risk-free rate % | |||||||||
February 2017 | 17,000 | $ | 1.10 | 4.62 | 136.07 | % | 1.83 | % | ||||||
July 2016 | 700 | $ | 13.00 | 4.04 | 144.12 | % | 1.73 | % | ||||||
January 2016 | 682 | $ | 28.40 | 3.53 | 150.15 | % | 1.64 | % | ||||||
March 2015 | 700 | $ | 41.60 | 2.72 | 168.20 | % | 1.50 | % | ||||||
September 2013 | 199 | $ | 50.00 | 1.22 | 100.31 | % | 1.27 | % | ||||||
December 2012 | 152 | $ | 10.32 | 0.48 | 49.17 | % | 1.13 | % | ||||||
As of December 31, 2016 | ||||||||||||||
Warrant Issuance | Outstanding (in thousands) | Strike price (per share) | Expected term (years) | Volatility % | Risk-free rate % | |||||||||
July 2016 | 700 | $ | 13.00 | 4.54 | 117.82 | % | 1.82 | % | ||||||
January 2016 | 682 | $ | 28.40 | 4.03 | 120.38 | % | 1.71 | % | ||||||
March 2015 | 700 | $ | 41.60 | 3.22 | 131.46 | % | 1.52 | % | ||||||
September 2013 | 199 | $ | 50.00 | 1.72 | 164.01 | % | 1.10 | % | ||||||
December 2012 | 152 | $ | 31.60 | 0.98 | 204.55 | % | 0.84 | % | ||||||
April 2011 | 13 | $ | 13.00 | 0.31 | 103.79 | % | 0.53 | % |
Warrant Issuance | Warrant liability, December 31, 2016 | Fair value of warrants granted | Fair value of warrants exercised | Change in fair value of warrants | Warrant liability, June 30, 2017 | ||||||||||||||
February 2017 | $ | — | $ | 10,357 | $ | — | $ | (2,345 | ) | $ | 8,012 | ||||||||
July 2016 | 753 | — | — | (540 | ) | 213 | |||||||||||||
January 2016 | 529 | — | — | (375 | ) | 154 | |||||||||||||
March 2015 | 432 | — | — | (301 | ) | 131 | |||||||||||||
September 2013 | 81 | — | — | (81 | ) | — | |||||||||||||
December 2012 | 65 | — | — | (65 | ) | — | |||||||||||||
April 2011 | — | — | — | — | — | ||||||||||||||
$ | 1,860 | $ | 10,357 | $ | — | $ | (3,707 | ) | $ | 8,510 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Research and development | $ | 35 | $ | 108 | $ | 73 | $ | 235 | |||||||
General and administrative | 162 | 514 | 352 | 1,043 | |||||||||||
Total stock-based compensation from continuing operations | $ | 197 | $ | 622 | $ | 425 | $ | 1,278 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2017 | 2015* | 2017 | 2016 | ||||||||
Risk free interest rate | 1.58 | % | 1.41 | % | 1.87 | % | 1.41 | % | |||
Volatility | 132.13 | % | 76.30 | % | 116.41 | % | 75.63 | % | |||
Expected lives (years) | 5.50 | 6.25 | 5.92 | 6.25 | |||||||
Expected dividend yield | — | % | — | % | — | % | — | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | Aggregate Intrinsic Value (In Thousands) | ||||||||
Outstanding at January 1, 2017 | 561 | $ | 41.50 | |||||||
Granted | 105 | 1.30 | ||||||||
Exercised | — | — | $ | — | ||||||
Canceled | (161 | ) | 34.21 | $ | — | |||||
Outstanding at June 30, 2017 | 505 | $ | 35.49 | $ | — | |||||
Options exercisable at June 30, 2017 | 300 | $ | 54.15 | $ | — |
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June 30, 2017 | December 31, 2016 | ||||||
Carrying amounts of current assets of discontinued operations: | |||||||
Accounts receivable | $ | 189 | $ | 813 | |||
Total current assets of discontinued operations | 189 | 813 | |||||
Carrying amounts of current liabilities of discontinued operations: | |||||||
Accounts payable | $ | 122 | $ | 3,115 | |||
Accrued expenses and other current liabilities | 8,248 | 2,944 | |||||
Total current liabilities of discontinued operations | $ | 8,370 | $ | 6,059 |
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Additional channel obligations | (105 | ) | (656 | ) | $ | (428 | ) | $ | (1,666 | ) | |||||
Selling, general, and administrative | (897 | ) | (2,233 | ) | (2,510 | ) | (4,614 | ) | |||||||
Settlements associated with USAO NJ and DOJ and the qui tam action (Note 5) | (300 | ) | — | (7,800 | ) | — | |||||||||
Loss from discontinued operations | $ | (1,302 | ) | $ | (2,889 | ) | $ | (10,738 | ) | $ | (6,280 | ) |
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