| Warrants
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• | Significant changes in the manner of its use of acquired assets or the strategy for its overall business; |
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December 31, 2016 | Level 1 | Level 2 | 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 |
December 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 29,171 | $ | 29,171 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 29,171 | $ | 29,171 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 14,518 | $ | — | $ | 14,518 | $ | — | |||||||
Contingent purchase price consideration | 6,142 | — | — | 6,142 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 20,660 | $ | — | $ | 14,518 | $ | 6,142 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2015 | $ | 6,651 | |
Change in the estimated fair value of the contingent purchase price consideration | (509 | ) | |
Balance, December 31, 2015 | 6,142 | ||
Change in the estimated fair value of the contingent purchase price consideration | (5,047 | ) | |
Balance at December 31, 2016 | $ | 1,095 |
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December 31, | |||||||
2016 | 2015 | ||||||
Clinical development expense | $ | 3,088 | $ | 3,294 | |||
Professional fees | 229 | 435 | |||||
Compensation and related benefits | 975 | 1,535 | |||||
Interest expense | — | 28 | |||||
Accrued expenses and other current liabilities | $ | 4,292 | $ | 5,292 |
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Amount | |||
Class action settlement in 2015 | $ | 20,000 | |
Derivative settlement in 2015 | 5,000 | ||
Shareholders securities litigation settlements in 2016 | 1,800 | ||
SEC settlement in 2016 | 950 | ||
Total settlements | $ | 27,750 | |
Payable by the Company in cash as of December 31, 2016 | $ | 950 | |
Paid by the insurance carriers in 2016 | 21,700 | ||
Paid by the Company in cash in 2016 | 2,450 | ||
Paid by the Company in common stock in 2016 | 2,650 | ||
Total settlements | $ | 27,750 |
Operating Leases(1) | Non-Cancelable Employment Agreements(2) | Subtotal | Cancelable License Agreements(3) | Total | |||||||||||||||
2017 | $ | 241 | $ | 1,601 | $ | 1,842 | $ | 1,391 | $ | 3,233 | |||||||||
2018 | 246 | — | 246 | 350 | 596 | ||||||||||||||
2019 | 251 | — | 251 | 350 | 601 | ||||||||||||||
2020 | 236 | — | 236 | 7,350 | 7,586 | ||||||||||||||
2021 and thereafter | — | — | — | 8,815 | 8,815 | ||||||||||||||
Total | $ | 974 | $ | 1,601 | $ | 2,575 | $ | 18,256 | $ | 20,831 |
(1) | Operating leases are primarily facility and equipment related obligations with third party vendors. Operating lease expenses during the years ended December 31, 2016, 2015, and 2014 were approximately $291,000, $116,000 and $72,000, respectively. |
(2) | Employment agreement obligations include management contracts, as well as scientific advisory board member compensation agreements. Certain agreements, which have been revised from time to time, provide for minimum salary levels, adjusted annually at the discretion of the Compensation Committee, as well as for minimum bonuses that are payable. |
(3) | License agreements generally relate to the company’s obligations with The Board of Regents, University of Texas M.D. Anderson Cancer Center and the Henry M. Jackson Foundation for our oncology therapies and the obligations with Biovascular Inc. and Mills Pharma for our GALE-401 asset. The company continually assesses the progress of its licensed technology and the progress of its research and development efforts as it relates to its licensed technology and may terminate with notice to the licensor at any time. In the event these licenses are terminated, no amounts will be due. |
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2016 | 2015 | 2014 | |||||||||
Research and development | $ | 298 | $ | 350 | $ | 484 | |||||
General and administrative | 1,966 | 1,591 | 4,903 | ||||||||
Total stock-based compensation | $ | 2,264 | $ | 1,941 | $ | 5,387 |
2016 | 2015 | 2014 | ||||||
Risk free interest rate | 1.47 | % | 1.67 | % | 2.01 | % | ||
Volatility | 102.62 | % | 73.97 | % | 79.37 | % | ||
Expected lives (years) | 5.93 | 6.16 | 6.16 | |||||
Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2015 | 663 | $ | 51.60 | |||
Granted | 146 | 9.40 | ||||
Exercised | (8 | ) | 31.44 | |||
Cancelled | (240 | ) | 50.28 | |||
Outstanding at December 31, 2016 | 561 | $ | 41.50 | |||
Options exercisable at December 31, 2016 | 329 | $ | 56.06 |
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Warrant Issuance | Outstanding, December 31, 2015 | Granted | Exercised | Expired | Outstanding, December 31, 2016 | Expiration | ||||||||||
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 | 31 | — | (18 | ) | — | 13 | April 2017 | |||||||||
March 2011 | 9 | — | (1 | ) | (8 | ) | — | March 2016 | ||||||||
March 2010 | 1 | — | — | (1 | ) | — | March 2016 | |||||||||
Other | 24 | 100 | — | — | 124 | November 2021 | ||||||||||
1,116 | 1,482 | (19 | ) | (9 | ) | 2,570 |
Warrant Issuance | Outstanding, January 1, 2015 | Granted | Exercised | Expired | Outstanding, December 31, 2015 | Expiration | ||||||||||
March 2015 | — | 700 | — | — | 700 | March 2020 | ||||||||||
September 2013 | 199 | — | — | — | 199 | September 2018 | ||||||||||
December 2012 | 152 | — | — | — | 152 | December 2017 | ||||||||||
April 2011 | 31 | — | — | — | 31 | April 2017 | ||||||||||
March 2011 | 9 | — | — | — | 9 | March 2016 | ||||||||||
March 2010 | 1 | — | — | — | 1 | March 2016 | ||||||||||
Other | 36 | — | — | (12 | ) | 24 | November 2021 | |||||||||
428 | 700 | — | (12 | ) | 1,116 |
As of December 31, 2016 | ||||||||||||||
Warrant Issuance | Outstanding | Strike price | Expected term | 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 | % | ||||||
As of December 31, 2015 | ||||||||||||||
Warrant Issuance | Outstanding | Strike price | Expected term | Volatility % | Risk-free rate % | |||||||||
March 2015 | 700 | $ | 41.60 | 4.22 | 75.85 | % | 1.58 | % | ||||||
September 2013 | 199 | $ | 50.00 | 2.72 | 74.70 | % | 1.24 | % | ||||||
December 2012 | 152 | $ | 31.60 | 1.98 | 76.37 | % | 1.05 | % | ||||||
April 2011 | 31 | $ | 13.00 | 1.31 | 65.60 | % | 0.77 | % | ||||||
March 2011 | 9 | $ | 13.00 | 0.18 | 47.98 | % | — | % | ||||||
March 2010 | 1 | $ | 40.04 | 0.24 | 71.41 | % | — | % |
Warrant Issuance | Warrant liability, December 31, 2015 | Fair value of warrants granted | Fair value of warrants exercised | Change in fair value of warrants | Warrant liability, December 31, 2016 | ||||||||||||||
July 2016 | $ | — | $ | 4,296 | $ | — | $ | (3,543 | ) | $ | 753 | ||||||||
January 2016 | — | 5,590 | — | (5,061 | ) | 529 | |||||||||||||
March 2015 | 10,337 | — | — | (9,905 | ) | 432 | |||||||||||||
September 2013 | 1,933 | — | — | (1,852 | ) | 81 | |||||||||||||
December 2012 | 1,565 | — | — | (1,500 | ) | 65 | |||||||||||||
April 2011 | 537 | — | (278 | ) | (259 | ) | — | ||||||||||||
March 2011 | 144 | — | (46 | ) | (98 | ) | — | ||||||||||||
March 2010 | 2 | — | — | (2 | ) | — | |||||||||||||
$ | 14,518 | $ | 9,886 | $ | (324 | ) | $ | (22,220 | ) | $ | 1,860 |
Warrant Issuance | Warrant liability, January 1, 2015 | Fair value of warrants granted | Fair value of warrants exercised | Change in fair value of warrants | Warrant liability, December 31, 2015 | |||||||||
March 2015 | — | 10,296 | — | 41 | 10,337 | |||||||||
September 2013 | 2,560 | — | — | (627 | ) | 1,933 | ||||||||
December 2012 | 2,027 | — | — | (462 | ) | 1,565 | ||||||||
April 2011 | 625 | — | — | (88 | ) | 537 | ||||||||
March 2011 | 144 | — | — | — | 144 | |||||||||
March 2010 | 2 | — | — | — | 2 | |||||||||
5,358 | 10,296 | — | (1,136 | ) | 14,518 |
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As of December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Current | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | — | — | — | |||||||||
Total current | — | — | — | |||||||||
Deferred expense | ||||||||||||
Federal | 210 | 332 | — | |||||||||
State | 33 | 33 | — | |||||||||
Total deferred | 243 | 365 | — | |||||||||
Total income tax expense | $ | 243 | $ | 365 | $ | — |
As of December 31, | ||||||||
2016 | 2015 | |||||||
Net operating loss carryforwards | $ | 97,168 | $ | 75,221 | ||||
Tax credit carryforwards | 4,083 | 3,866 | ||||||
Stock based compensation | 5,757 | 5,050 | ||||||
Other | 58 | 1,430 | ||||||
Licensing deduction deferral | 10,263 | 9,910 | ||||||
Gross deferred tax assets | 117,329 | 95,477 | ||||||
Valuation allowance | (117,329 | ) | (95,477 | ) | ||||
Net deferred tax asset | $ | — | $ | — |
As of December 31, | ||||||||
2016 | 2015 | |||||||
In-process research and development not subject to future amortization for tax purposes | $ | 5,661 | $ | 5,418 | ||||
Gross deferred tax liability | $ | 5,661 | $ | 5,418 |
As of December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Expected federal income tax benefit | $ | (7,977 | ) | $ | (21,603 | ) | $ | (12,447 | ) | |||
State income taxes after credits | (1,575 | ) | (2,375 | ) | (1,283 | ) | ||||||
Unrealized gain on marketable securities | — | — | — | |||||||||
Changes in warrant value | (8,728 | ) | (456 | ) | (6,503 | ) | ||||||
Stock compensation | (1,782 | ) | 508 | 3,996 | ||||||||
Effect of change in valuation allowance | 21,852 | 24,029 | 17,275 | |||||||||
Income tax credits | (217 | ) | (276 | ) | (42 | ) | ||||||
Other | (1,330 | ) | 538 | (996 | ) | |||||||
$ | 243 | $ | 365 | $ | — |
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Year ended December 31, | ||||||
2014 | 2013 | |||||
Customer A | 43 | % | 25 | % | ||
Customer B | 18 | % | 6 | % | ||
Customer C | 14 | % | 26 | % | ||
Customer D | 11 | % | 34 | % |
December 31, | ||||||
2014 | 2013 | |||||
Customer A | 24 | % | 25 | % | ||
Customer B | 31 | % | 1 | % | ||
Customer C | 16 | % | 11 | % | ||
Customer D | 21 | % | 54 | % |
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1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
2016 | ||||||||||||||||
Net income (loss) | $ | (16,493 | ) | $ | 5,389 | $ | (6,929 | ) | $ | (5,516 | ) | |||||
Net income (loss) per share, basic and diluted | $ | (1.84 | ) | $ | 0.59 | $ | (0.66 | ) | $ | (0.51 | ) | |||||
2015 | ||||||||||||||||
Net revenue | $ | 2,750 | $ | 3,382 | $ | 2,166 | $ | 1,436 | ||||||||
Gross profit on net revenue | $ | 2,357 | $ | 2,914 | $ | 1,454 | $ | 1,229 | ||||||||
Net loss | $ | (10,537 | ) | $ | (15,660 | ) | $ | (18,026 | ) | $ | (19,678 | ) | ||||
Net loss per share, basic and diluted | $ | (1.55 | ) | $ | (1.94 | ) | $ | (2.23 | ) | $ | (2.51 | ) |
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Sale of Abstral and related assets on November 19, 2015 | Sale of Zuplenz and related assets on December 24, 2015 | ||||||
Net proceeds from sales | |||||||
Total consideration | $ | 8,348 | $ | 3,750 | |||
Less selling costs* | (815 | ) | (1,050 | ) | |||
Proceeds from sale, net of selling costs | $ | 7,533 | $ | 2,700 |
2016 | 2015 | ||||||
Carrying amounts of assets included as part of discontinued operations: | |||||||
Accounts receivable | $ | 813 | $ | 392 | |||
Total current assets of discontinued operations | $ | 813 | $ | 392 | |||
Carrying amounts of liabilities included as part of discontinued operations: | |||||||
Accounts payable | $ | 3,115 | $ | 1,491 | |||
Accrued expenses and other current liabilities | 2,944 | 4,434 | |||||
Total current liabilities of discontinued operations | $ | 6,059 | $ | 5,925 |
2016 | 2015 | 2014 | |||||||||
Net revenue | $ | — | $ | 9,734 | $ | 9,319 | |||||
Cost of revenue | — | (1,780 | ) | (1,403 | ) | ||||||
Additional channel obligations | (2,886 | ) | — | — | |||||||
Amortization of certain acquired intangible assets | — | (921 | ) | (440 | ) | ||||||
Research and development | — | (355 | ) | (680 | ) | ||||||
Selling, general, and administrative | (9,562 | ) | (17,655 | ) | (15,118 | ) | |||||
Impairment charge form classification as held for sale | — | (8,071 | ) | — | |||||||
Loss on sale of commercial business assets | — | (4,549 | ) | — | |||||||
Severance and exit costs | — | (1,349 | ) | — | |||||||
Loss from discontinued operations | $ | (12,448 | ) | $ | (24,946 | ) | $ | (8,322 | ) |
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• | Significant changes in the manner of its use of acquired assets or the strategy for its overall business; |
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December 31, 2016 | Level 1 | Level 2 | 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 |
December 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 29,171 | $ | 29,171 | $ | — | $ | — | |||||||
Total assets measured and recorded at fair value | $ | 29,171 | $ | 29,171 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Warrants potentially settleable in cash | $ | 14,518 | $ | — | $ | 14,518 | $ | — | |||||||
Contingent purchase price consideration | 6,142 | — | — | 6,142 | |||||||||||
Total liabilities measured and recorded at fair value | $ | 20,660 | $ | — | $ | 14,518 | $ | 6,142 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
Balance, January 1, 2015 | $ | 6,651 | |
Change in the estimated fair value of the contingent purchase price consideration | (509 | ) | |
Balance, December 31, 2015 | 6,142 | ||
Change in the estimated fair value of the contingent purchase price consideration | (5,047 | ) | |
Balance at December 31, 2016 | $ | 1,095 |
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December 31, | |||||||
2016 | 2015 | ||||||
Clinical development expense | $ | 3,088 | $ | 3,294 | |||
Professional fees | 229 | 435 | |||||
Compensation and related benefits | 975 | 1,535 | |||||
Interest expense | — | 28 | |||||
Accrued expenses and other current liabilities | $ | 4,292 | $ | 5,292 |
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Amount | |||
Class action settlement in 2015 | $ | 20,000 | |
Derivative settlement in 2015 | 5,000 | ||
Shareholders securities litigation settlements in 2016 | 1,800 | ||
SEC settlement in 2016 | 950 | ||
Total settlements | $ | 27,750 | |
Payable by the Company in cash as of December 31, 2016 | $ | 950 | |
Paid by the insurance carriers in 2016 | 21,700 | ||
Paid by the Company in cash in 2016 | 2,450 | ||
Paid by the Company in common stock in 2016 | 2,650 | ||
Total settlements | $ | 27,750 |
Operating Leases(1) | Non-Cancelable Employment Agreements(2) | Subtotal | Cancelable License Agreements(3) | Total | |||||||||||||||
2017 | $ | 241 | $ | 1,601 | $ | 1,842 | $ | 1,391 | $ | 3,233 | |||||||||
2018 | 246 | — | 246 | 350 | 596 | ||||||||||||||
2019 | 251 | — | 251 | 350 | 601 | ||||||||||||||
2020 | 236 | — | 236 | 7,350 | 7,586 | ||||||||||||||
2021 and thereafter | — | — | — | 8,815 | 8,815 | ||||||||||||||
Total | $ | 974 | $ | 1,601 | $ | 2,575 | $ | 18,256 | $ | 20,831 |
(1) | Operating leases are primarily facility and equipment related obligations with third party vendors. Operating lease expenses during the years ended December 31, 2016, 2015, and 2014 were approximately $291,000, $116,000 and $72,000, respectively. |
(2) | Employment agreement obligations include management contracts, as well as scientific advisory board member compensation agreements. Certain agreements, which have been revised from time to time, provide for minimum salary levels, adjusted annually at the discretion of the Compensation Committee, as well as for minimum bonuses that are payable. |
(3) | License agreements generally relate to the company’s obligations with The Board of Regents, University of Texas M.D. Anderson Cancer Center and the Henry M. Jackson Foundation for our oncology therapies and the obligations with Biovascular Inc. and Mills Pharma for our GALE-401 asset. The company continually assesses the progress of its licensed technology and the progress of its research and development efforts as it relates to its licensed technology and may terminate with notice to the licensor at any time. In the event these licenses are terminated, no amounts will be due. |
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2016 | 2015 | 2014 | |||||||||
Research and development | $ | 298 | $ | 350 | $ | 484 | |||||
General and administrative | 1,966 | 1,591 | 4,903 | ||||||||
Total stock-based compensation | $ | 2,264 | $ | 1,941 | $ | 5,387 |
2016 | 2015 | 2014 | ||||||
Risk free interest rate | 1.47 | % | 1.67 | % | 2.01 | % | ||
Volatility | 102.62 | % | 73.97 | % | 79.37 | % | ||
Expected lives (years) | 5.93 | 6.16 | 6.16 | |||||
Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % |
Total Number of Shares (In Thousands) | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2015 | 663 | $ | 51.60 | |||
Granted | 146 | 9.40 | ||||
Exercised | (8 | ) | 31.44 | |||
Cancelled | (240 | ) | 50.28 | |||
Outstanding at December 31, 2016 | 561 | $ | 41.50 | |||
Options exercisable at December 31, 2016 | 329 | $ | 56.06 |
|
Warrant Issuance | Outstanding, December 31, 2015 | Granted | Exercised | Expired | Outstanding, December 31, 2016 | Expiration | ||||||||||
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 | 31 | — | (18 | ) | — | 13 | April 2017 | |||||||||
March 2011 | 9 | — | (1 | ) | (8 | ) | — | March 2016 | ||||||||
March 2010 | 1 | — | — | (1 | ) | — | March 2016 | |||||||||
Other | 24 | 100 | — | — | 124 | November 2021 | ||||||||||
1,116 | 1,482 | (19 | ) | (9 | ) | 2,570 |
Warrant Issuance | Outstanding, January 1, 2015 | Granted | Exercised | Expired | Outstanding, December 31, 2015 | Expiration | ||||||||||
March 2015 | — | 700 | — | — | 700 | March 2020 | ||||||||||
September 2013 | 199 | — | — | — | 199 | September 2018 | ||||||||||
December 2012 | 152 | — | — | — | 152 | December 2017 | ||||||||||
April 2011 | 31 | — | — | — | 31 | April 2017 | ||||||||||
March 2011 | 9 | — | — | — | 9 | March 2016 | ||||||||||
March 2010 | 1 | — | — | — | 1 | March 2016 | ||||||||||
Other | 36 | — | — | (12 | ) | 24 | November 2021 | |||||||||
428 | 700 | — | (12 | ) | 1,116 |
As of December 31, 2016 | ||||||||||||||
Warrant Issuance | Outstanding | Strike price | Expected term | 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 | % | ||||||
As of December 31, 2015 | ||||||||||||||
Warrant Issuance | Outstanding | Strike price | Expected term | Volatility % | Risk-free rate % | |||||||||
March 2015 | 700 | $ | 41.60 | 4.22 | 75.85 | % | 1.58 | % | ||||||
September 2013 | 199 | $ | 50.00 | 2.72 | 74.70 | % | 1.24 | % | ||||||
December 2012 | 152 | $ | 31.60 | 1.98 | 76.37 | % | 1.05 | % | ||||||
April 2011 | 31 | $ | 13.00 | 1.31 | 65.60 | % | 0.77 | % | ||||||
March 2011 | 9 | $ | 13.00 | 0.18 | 47.98 | % | — | % | ||||||
March 2010 | 1 | $ | 40.04 | 0.24 | 71.41 | % | — | % |
Warrant Issuance | Warrant liability, December 31, 2015 | Fair value of warrants granted | Fair value of warrants exercised | Change in fair value of warrants | Warrant liability, December 31, 2016 | ||||||||||||||
July 2016 | $ | — | $ | 4,296 | $ | — | $ | (3,543 | ) | $ | 753 | ||||||||
January 2016 | — | 5,590 | — | (5,061 | ) | 529 | |||||||||||||
March 2015 | 10,337 | — | — | (9,905 | ) | 432 | |||||||||||||
September 2013 | 1,933 | — | — | (1,852 | ) | 81 | |||||||||||||
December 2012 | 1,565 | — | — | (1,500 | ) | 65 | |||||||||||||
April 2011 | 537 | — | (278 | ) | (259 | ) | — | ||||||||||||
March 2011 | 144 | — | (46 | ) | (98 | ) | — | ||||||||||||
March 2010 | 2 | — | — | (2 | ) | — | |||||||||||||
$ | 14,518 | $ | 9,886 | $ | (324 | ) | $ | (22,220 | ) | $ | 1,860 |
Warrant Issuance | Warrant liability, January 1, 2015 | Fair value of warrants granted | Fair value of warrants exercised | Change in fair value of warrants | Warrant liability, December 31, 2015 | |||||||||
March 2015 | — | 10,296 | — | 41 | 10,337 | |||||||||
September 2013 | 2,560 | — | — | (627 | ) | 1,933 | ||||||||
December 2012 | 2,027 | — | — | (462 | ) | 1,565 | ||||||||
April 2011 | 625 | — | — | (88 | ) | 537 | ||||||||
March 2011 | 144 | — | — | — | 144 | |||||||||
March 2010 | 2 | — | — | — | 2 | |||||||||
5,358 | 10,296 | — | (1,136 | ) | 14,518 |
|
As of December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Current | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | — | — | — | |||||||||
Total current | — | — | — | |||||||||
Deferred expense | ||||||||||||
Federal | 210 | 332 | — | |||||||||
State | 33 | 33 | — | |||||||||
Total deferred | 243 | 365 | — | |||||||||
Total income tax expense | $ | 243 | $ | 365 | $ | — |
As of December 31, | ||||||||
2016 | 2015 | |||||||
Net operating loss carryforwards | $ | 97,168 | $ | 75,221 | ||||
Tax credit carryforwards | 4,083 | 3,866 | ||||||
Stock based compensation | 5,757 | 5,050 | ||||||
Other | 58 | 1,430 | ||||||
Licensing deduction deferral | 10,263 | 9,910 | ||||||
Gross deferred tax assets | 117,329 | 95,477 | ||||||
Valuation allowance | (117,329 | ) | (95,477 | ) | ||||
Net deferred tax asset | $ | — | $ | — |
As of December 31, | ||||||||
2016 | 2015 | |||||||
In-process research and development not subject to future amortization for tax purposes | $ | 5,661 | $ | 5,418 | ||||
Gross deferred tax liability | $ | 5,661 | $ | 5,418 |
As of December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Expected federal income tax benefit | $ | (7,977 | ) | $ | (21,603 | ) | $ | (12,447 | ) | |||
State income taxes after credits | (1,575 | ) | (2,375 | ) | (1,283 | ) | ||||||
Unrealized gain on marketable securities | — | — | — | |||||||||
Changes in warrant value | (8,728 | ) | (456 | ) | (6,503 | ) | ||||||
Stock compensation | (1,782 | ) | 508 | 3,996 | ||||||||
Effect of change in valuation allowance | 21,852 | 24,029 | 17,275 | |||||||||
Income tax credits | (217 | ) | (276 | ) | (42 | ) | ||||||
Other | (1,330 | ) | 538 | (996 | ) | |||||||
$ | 243 | $ | 365 | $ | — |
|
Year ended December 31, | ||||||
2014 | 2013 | |||||
Customer A | 43 | % | 25 | % | ||
Customer B | 18 | % | 6 | % | ||
Customer C | 14 | % | 26 | % | ||
Customer D | 11 | % | 34 | % |
December 31, | ||||||
2014 | 2013 | |||||
Customer A | 24 | % | 25 | % | ||
Customer B | 31 | % | 1 | % | ||
Customer C | 16 | % | 11 | % | ||
Customer D | 21 | % | 54 | % |
|
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
2016 | ||||||||||||||||
Net income (loss) | $ | (16,493 | ) | $ | 5,389 | $ | (6,929 | ) | $ | (5,516 | ) | |||||
Net income (loss) per share, basic and diluted | $ | (1.84 | ) | $ | 0.59 | $ | (0.66 | ) | $ | (0.51 | ) | |||||
2015 | ||||||||||||||||
Net revenue | $ | 2,750 | $ | 3,382 | $ | 2,166 | $ | 1,436 | ||||||||
Gross profit on net revenue | $ | 2,357 | $ | 2,914 | $ | 1,454 | $ | 1,229 | ||||||||
Net loss | $ | (10,537 | ) | $ | (15,660 | ) | $ | (18,026 | ) | $ | (19,678 | ) | ||||
Net loss per share, basic and diluted | $ | (1.55 | ) | $ | (1.94 | ) | $ | (2.23 | ) | $ | (2.51 | ) |
|
Sale of Abstral and related assets on November 19, 2015 | Sale of Zuplenz and related assets on December 24, 2015 | ||||||
Net proceeds from sales | |||||||
Total consideration | $ | 8,348 | $ | 3,750 | |||
Less selling costs* | (815 | ) | (1,050 | ) | |||
Proceeds from sale, net of selling costs | $ | 7,533 | $ | 2,700 |
2016 | 2015 | ||||||
Carrying amounts of assets included as part of discontinued operations: | |||||||
Accounts receivable | $ | 813 | $ | 392 | |||
Total current assets of discontinued operations | $ | 813 | $ | 392 | |||
Carrying amounts of liabilities included as part of discontinued operations: | |||||||
Accounts payable | $ | 3,115 | $ | 1,491 | |||
Accrued expenses and other current liabilities | 2,944 | 4,434 | |||||
Total current liabilities of discontinued operations | $ | 6,059 | $ | 5,925 |
2016 | 2015 | 2014 | |||||||||
Net revenue | $ | — | $ | 9,734 | $ | 9,319 | |||||
Cost of revenue | — | (1,780 | ) | (1,403 | ) | ||||||
Additional channel obligations | (2,886 | ) | — | — | |||||||
Amortization of certain acquired intangible assets | — | (921 | ) | (440 | ) | ||||||
Research and development | — | (355 | ) | (680 | ) | ||||||
Selling, general, and administrative | (9,562 | ) | (17,655 | ) | (15,118 | ) | |||||
Impairment charge form classification as held for sale | — | (8,071 | ) | — | |||||||
Loss on sale of commercial business assets | — | (4,549 | ) | — | |||||||
Severance and exit costs | — | (1,349 | ) | — | |||||||
Loss from discontinued operations | $ | (12,448 | ) | $ | (24,946 | ) | $ | (8,322 | ) |
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