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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Nov. 12, 2019
Document and Entity Information
Entity Registrant Name	LEAP THERAPEUTICS, INC.
Entity Central Index Key	0001509745
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		24,194,877
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 10,058	$ 16,284
Research and development incentive receivable	752	836
Prepaid expenses and other current assets	210	202
Total current assets	11,020	17,322
Property and equipment, net	149	86
Right of use asset, net	1,214
Research and development incentive receivable, net of current portion	177
Deferred tax assets	120	124
Other assets	1,461	1,542
Total assets	14,141	19,074
Current liabilities:
Accounts payable	4,889	3,579
Accrued expenses	2,317	2,872
Restricted stock liability	159
Lease liability - current portion	566
Total current liabilities	7,931	6,451
Non current liabilities:
Warrant liability		3,448
Lease liability, net of current portion	648
Total liabilities	8,579	9,899
Commitments and contingencies (Note 9)
Stockholders' equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 24,194,877 and 14,703,159 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	24	15
Additional paid-in capital	192,383	162,393
Accumulated other comprehensive income	327	302
Accumulated deficit	(187,172)	(153,535)
Total stockholders' equity	5,562	9,175
Total liabilities and stockholders' equity	$ 14,141	$ 19,074

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	24,194,877	14,703,159
Common stock, outstanding shares	24,194,877	14,703,159

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating expenses:
Research and development	$ 5,772	$ 6,457	$ 18,698	$ 14,922
General and administrative	2,151	2,142	6,481	6,858
Total operating expenses	7,923	8,599	25,179	21,780
Loss from operations	(7,923)	(8,599)	(25,179)	(21,780)
Interest income	80	128	281	327
Interest expense	(5)	(4)	(21)	(18)
Australian research and development incentives	(7)	299	129	1,188
Foreign currency loss	(80)	(249)	(114)	(615)
Change in fair value of warrant liability		1,793		(3,720)
Net loss	(7,935)	(6,632)	(24,904)	(24,618)
Dividend attributable to down round feature of warrants			(359)
Net loss attributable to common stockholders for basic loss per share	$ (7,935)	$ (6,632)	$ (25,263)	$ (24,618)
Net loss per share
Basic (in dollars per share)	$ (0.33)	$ (0.45)	$ (1.15)	$ (1.76)
Diluted (in dollars per share)	$ (0.33)	$ (0.55)	$ (1.15)	$ (1.76)
Weighted average common shares outstanding
Basic (in shares)	23,923,196	14,701,785	22,039,386	13,955,949
Diluted (in shares)	23,923,196	15,211,716	22,039,386	13,955,949

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (7,935)	$ (6,632)	$ (24,904)	$ (24,618)
Other comprehensive income:
Foreign currency translation adjustment	5	179	25	428
Comprehensive loss	$ (7,930)	$ (6,453)	$ (24,879)	$ (24,190)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock Public Offering	Common Stock Offering under the Lincoln Park Capital Commitment Purchase Agreement	Common Stock Offering under the Lincoln Park Capital Registered Offering Purchase Agreement	Common Stock	Additional Paid-in Capital Public Offering	Additional Paid-in Capital Offering under the Lincoln Park Capital Registered Offering Purchase Agreement	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Public Offering	Offering under the Lincoln Park Capital Registered Offering Purchase Agreement	Total
Balance at the beginning of the period (in shares) at Dec. 31, 2017				12,354,014
Balance at the beginning of the period at Dec. 31, 2017				$ 12			$ 141,770	$ (268)	$ (130,397)			$ 11,117
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)				2,146,667
Issuance of common stock, net of issuance costs				$ 3			14,793					14,796
Issuance of common stock upon exercise of warrants (in shares)				200,000
Issuance of common stock upon exercise of warrants							2,347					2,347
Issuance of common stock upon exercise of stock options (in shares)				2,478
Issuance of common stock upon exercise of stock options							14					14
Foreign currency translation adjustment								428				428
Stock-based compensation							2,544					2,544
Net loss									(24,618)			(24,618)
Balance at the end of the period (in shares) at Sep. 30, 2018				14,703,159
Balance at the end of the period at Sep. 30, 2018				$ 15			161,468	160	(155,015)			6,628
Balance at the beginning of the period (in shares) at Jun. 30, 2018				14,700,681
Balance at the beginning of the period at Jun. 30, 2018				$ 15			160,522	(19)	(148,383)			12,135
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)				2,478
Issuance of common stock upon exercise of stock options							14					14
Foreign currency translation adjustment								179				179
Stock-based compensation							932					932
Net loss									(6,632)			(6,632)
Balance at the end of the period (in shares) at Sep. 30, 2018				14,703,159
Balance at the end of the period at Sep. 30, 2018				$ 15			161,468	160	(155,015)			6,628
Balance at the beginning of the period (in shares) at Dec. 31, 2018				14,703,159
Balance at the beginning of the period at Dec. 31, 2018				$ 15			162,393	302	(153,535)			9,175
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)	7,557,142	330,000	571,429
Issuance of common stock, net of issuance costs	$ 7		$ 1		$ 12,115	$ 989				$ 12,122	$ 990
Issuance of common stock through ATM sales (in shares)				1,033,147
Issuance of common stock through ATM sales				$ 1			1,922					1,923
To record ATM issuance costs in Additional Paid-in Capital							(13)					(13)
Foreign currency translation adjustment								25				25
Stock-based compensation							2,796					2,796
Reclassification of 2017 Warrants from liability to equity upon adoption of ASU 2017-11							11,822		(8,374)			3,448
Dividend							359		(359)			359
Net loss									(24,904)			(24,904)
Balance at the end of the period (in shares) at Sep. 30, 2019				24,194,877
Balance at the end of the period at Sep. 30, 2019				$ 24			192,383	327	(187,172)			5,562
Balance at the beginning of the period (in shares) at Jun. 30, 2019				22,949,064
Balance at the beginning of the period at Jun. 30, 2019				$ 23			189,831	322	(179,237)			10,939
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		330,000	571,429
Issuance of common stock, net of issuance costs			$ 1			$ 989					$ 990
Issuance of common stock through ATM sales (in shares)				344,384
Issuance of common stock through ATM sales							617					617
To record ATM issuance costs in Additional Paid-in Capital							(4)					(4)
Foreign currency translation adjustment								5				5
Stock-based compensation							950					950
Net loss									(7,935)			(7,935)
Balance at the end of the period (in shares) at Sep. 30, 2019				24,194,877
Balance at the end of the period at Sep. 30, 2019				$ 24			$ 192,383	$ 327	$ (187,172)			$ 5,562

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Public Offering
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
Issuance of common stock, issuance costs		$ 1,102	$ 1,304
Offering under the Lincoln Park Capital Registered Offering Purchase Agreement
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
Issuance of common stock, issuance costs	$ 10	$ 10

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (24,904)	$ (24,618)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	37	37
Non-cash lease expense	541
Stock-based compensation expense	2,796	2,544
Change in fair value of restricted stock liability	159
Change in fair value of warrant liability		3,720
Changes in operating assets and liabilities:
Prepaid expenses and other assets	280	(115)
Research and development incentive receivable	(128)	(480)
Accounts payable and accrued expenses	717	(71)
Lease Liability	(506)
Net cash used in operating activities	(21,008)	(18,983)
Cash flows from investing activities:
Purchases of property and equipment	(100)
Net cash used in investing activities	(100)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net of underwriter commissions and discounts	12,331	15,034
Proceeds from issuance of common stock from ATM sales	1,923
Proceeds from issuance of common stock in connection with July 2019 Lincoln Park Capital Registered Offering Purchase Agreement, net of issuance costs	999
Proceeds from the exercise of common stock warrants		1,217
Proceeds from exercise of common stock options		14
Payment of deferred offering costs	(417)	(319)
Net cash provided by financing activities	14,836	15,946
Effect of exchange rate changes on cash and cash equivalents	46	549
Net decrease in cash and cash equivalents	(6,226)	(2,488)
Cash and cash equivalents at beginning of period	16,284	25,737
Cash and cash equivalents at end of period	10,058	23,249
Supplemental disclosure of non-cash financing activities:
Reduction in fair value of warrant liability as a result of exercise of common stock warrants		1,130
Reclassification of 2017 Warrants from liability to equity	3,448
Dividend attributable to down round feature of warrants	359
Offering costs included in accounts payable and accrued expenses	20	$ 81
Right-of-use asset recorded upon adoption of ASU 2016-02	1,755
Lease liability recorded upon adoption of ASU 2016-02	1,720
Accrued rent reclassified upon adoption of ASU 216-02	$ 35

Nature of Business, Basis of Presentation and Liquidity	9 Months Ended
Nature of Business, Basis of Presentation and Liquidity	Sep. 30, 2019
Nature of Business, Basis of Presentation and Liquidity
Nature of Business, Basis of Presentation and Liquidity	1. Nature of Business, Basis of Presentation and Liquidity Nature of Business Leap Therapeutics, Inc. was incorporated in the state of Delaware on January 3, 2011 and changed its name to Leap Therapeutics, Inc. effective November 16, 2015 (the “Company”). During 2015, HealthCare Pharmaceuticals Pty Ltd. (“HCP Australia”) was formed and is a wholly owned subsidiary of the Company. The Company is a biopharmaceutical company acquiring and developing novel therapeutics at the leading edge of cancer biology. The Company’s approach is designed to target compelling tumor-promoting and immuno-oncology pathways to generate durable clinical benefit and enhanced outcomes for patients. The Company’s programs are monoclonal antibodies that target key cellular pathways that enable cancer to grow and spread and specific mechanisms that activate the body’s immune system to identify and attack cancer. Basis of Presentation The accompanying condensed consolidated financial statements as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2019. The condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments which are necessary for the fair presentation of the Company’s financial position as of September 30, 2019, statements of operations and statements of comprehensive loss for the three and nine months ended September 30, 2019 and 2018 and statements of cash flows for the nine months ended September 30, 2019 and 2018. Such adjustments are of a normal and recurring nature. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2019. Liquidity Since inception, the Company has been engaged in organizational activities, including raising capital, and research and development activities. The Company does not yet have a product that has been approved by the Food and Drug Administration (the “FDA”), has not generated any revenues and has not yet achieved profitable operations, nor has it ever generated positive cash flows from operations. There is no assurance that profitable operations, if achieved, could be sustained on a continuing basis. Further, the Company’s future operations are dependent on the success of the Company’s efforts to raise additional capital, its research and commercialization efforts, regulatory approval, and, ultimately, the market acceptance of the Company’s products. In accordance with Accounting Standards Codification (“ASC”) 205-40, Going Concern, the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued. As of September 30, 2019, the Company had cash and cash equivalents of $10,058 and expects to receive $752 of research and development tax incentive payments in 2019 from the Commonwealth of Australia as a result of the 2018 research and development activities of the Company’s Australian subsidiary, HCP Australia. Additionally, the Company had an accumulated deficit of $187,172 at September 30, 2019, and during the nine months ended September 30, 2019, the Company incurred a net loss of $24,904. The Company expects to continue to generate operating losses in the foreseeable future. Due to the Company’s need for additional capital and the uncertainties surrounding the Company’s ability to raise such funding, substantial doubt exists as to the Company’s ability to continue as a going concern for a period through one year after the financial statements have been issued. On July 10, 2019, the Company entered into a purchase agreement (the “Commitment Purchase Agreement”) and a Registration Rights Agreement (the “Registration Rights Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which the Company has the right to sell to Lincoln Park up to $20,000 in shares of its common stock, $0.001 par value per share (“Common Stock”), subject to certain limitations and conditions set forth in the Commitment Purchase Agreement. On July 11, 2019, the Company entered into a purchase agreement (the “Registered Offering Purchase Agreement” and together with the Commitment Purchase Agreement, the “Purchase Agreements”), under which the Company sold to Lincoln Park 571,429 shares of its Common Stock, at a price of $1.75 per share for an aggregate purchase price of $1,000, pursuant to the Company’s shelf registration statement on Form S-3 filed with the SEC, including the prospectus supplement thereto dated July 11, 2019. The Company has suspended enrollment of a TRX518 clinical trial until additional funding is available. In addition, the Company will seek additional funding through public or private equity financings or government programs and will seek funding or development program cost-sharing through collaboration agreements or licenses with larger pharmaceutical or biotechnology companies. If the Company does not obtain additional funding or development program cost-sharing, the Company would be forced to delay, reduce or eliminate certain clinical trials or research and development programs, reduce or eliminate discretionary operating expenses, and delay company and pipeline expansion, which would adversely affect its business prospects. The inability to obtain funding, as and when needed, would have a negative impact on the Company’s financial condition and ability to pursue its business strategies.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated upon consolidation.

Use of Estimates

The presentation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Research and development incentive income and receivable

The Company recognizes other income from Australian research and development incentives when there is reasonable assurance that the income will be received, the relevant expenditure has been incurred, and the consideration can be reliably measured. The research and development incentive is one of the key elements of the Australian Government’s support for Australia’s innovation system and is supported by legislative law primarily in the form of the Australian Income Tax Assessment Act 1997, as long as eligibility criteria are met.

Management has assessed the Company’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the research and development incentive regime described above. At each period end, management estimates the refundable tax offset available to the Company based on available information at the time. This estimate is also reviewed by external tax advisors on an annual basis.

Under the program, a percentage of eligible research and development expenses incurred by the Company through its subsidiary in Australia are reimbursed. The percentage was 43.5% for the year ended December 31, 2018 and for the three and nine months ended September 30, 2019.

The research and development incentive receivable represents an amount due in connection with the above program. The Company has recorded a research and development incentive receivable of $929 and $836 as of September 30, 2019 and December 31, 2018, respectively, in the condensed consolidated balance sheets and other income from Australian research and development incentives of $299 for the three months ended September 30, 2018. During the three months ended September 30, 2019, the Australian research and development incentives recognized were offset by an adjustment to the prior year estimated Australian research and development incentives, resulting in a net expense for the period. During the nine months ended September 30, 2019 and 2018, the Company recorded $129 and $1,188, respectively, of other income from Australian research and development incentives.

The following table shows the change in the research and development incentive receivable from December 31, 2017 to September 30, 2019 (in thousands):


Balance at December 31, 2017	$	1,744
Australian research and development incentive income		756
Cash received for 2016 eligible overseas research and development expenses		(740)
Cash received for 2017 eligible expenses		(793)
Foreign currency translation		(131)
Balance at December 31, 2018		836
Australian research and development incentive income		182
Adjustment to prior year estimated incentives		(53)
Foreign currency translation		(36)
Balance at September 30, 2019	$	929

Foreign Currency Translation

The financial statements of the Company’s Australian subsidiary are measured using the local currency as the functional currency. Assets and liabilities of this subsidiary are translated into U.S. dollars at an exchange rate as of the consolidated balance sheet date. Equity is translated at historical exchange rates. Revenues and expenses are translated into U.S. dollars at average rates of exchange in effect during the year. The resulting cumulative translation adjustments have been recorded as a separate component of stockholders’ equity. Realized foreign currency transaction gains and losses are included in the results of operations.

Other Assets

Other assets as of September 30, 2019 and December 31, 2018 included $1,074 and $1,380, respectively, of deposits made by the Company with certain service providers that are to be applied to future payments due under the service agreements or returned to the Company if not utilized. In addition, as of September 30, 2019 and December 31, 2018 other assets included $387 and $162 of deferred issuance costs, respectively.

Warrants

On January 1, 2019, the Company adopted ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815) (“ASU 2017-11”), which changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down round feature when triggered with the effect treated as a dividend and as a reduction of income available to common shareholders in basic EPS.

The Company concluded that the common stock warrants (the “2017 Warrants”) issued in connection with the private placement of common stock completed in November 2017 (the “Private Placement”), qualify for equity classification. The adoption guidance of ASU 2017-11 provides for a modified retrospective adoption. The Company applied the guidance retrospectively to the 2017 Warrants by means of a cumulative-effect adjustment to its statement of financial position as of the beginning of the interim and annual period beginning January 1, 2019. The Company performed a final remeasurement of the warrant liability as of January 1, 2019 and reclassified $3,448 to equity.

The Company will recognize on a prospective basis the value of the effect of the down round feature in the 2017 Warrants when it is triggered (i.e., when the exercise price is adjusted downward). This value is measured as the difference between (1) the financial instrument’s fair value (without the down round feature) using the pre-trigger exercise price and (2) the financial instrument’s fair value (with the down round feature) using the reduced exercise price. The value of the effect of the down round feature will be treated as a dividend and a reduction to income available to common shareholders in the basic EPS calculation. In connection with the public offering, completed in February 2019 (the “2019 Public Offering”), when the 2017 Warrants were repriced from $6.085 to $1.75 as a result of a down round, the Company recorded a dividend of $359 during the nine months ended September 30, 2019.

Fair Value of Financial Instruments

Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value using Level 3 inputs. There were no transfers within the hierarchy during the three and nine months ended September 30, 2019 and the year ended December 31, 2018.

A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands):


	Total		Level 1		Level 2		Level 3
September 30, 2019
Assets:
Cash & cash equivalents	$	10,058	$	10,058	$	—	$	—
Total assets	$	10,058	$	10,058	$	—	$	—

December 31, 2018
Assets:
Cash & cash equivalents	$	16,284	$	16,284	$	—	$	—
Total assets	$	16,284	$	16,284	$	—	$	—

Liabilities:
Warrant liability	$	3,448	$	—	$	—	$	3,448
Total liabilities	$	3,448	$	—	$	—	$	3,448

Cash equivalents of $10,058 and $16,284 as of September 30, 2019 and December 31, 2018, respectively, consisted of overnight investments and money market funds and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

The carrying value of the research and development incentive receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these assets and liabilities.

A roll-forward of the recurring fair value measurements of the warrant liability categorized with Level 3 inputs is as follows (in thousands):


	Warrant
	Liability
Balance—December 31, 2017	$	11,862
Change in fair value		4,851
Balance—March 31, 2018		16,713
Exercise of warrants		(1,130)
Change in Fair value		662
Balance—June 30, 2018		16,245
Change in Fair value		(1,793)
Balance—September 30, 2018		14,452
Change in Fair value		(11,004)
Balance—December 31, 2018		3,448
Final remeasurement and reclassification of 2017 Warrants to equity in connection with the adoption of ASU 2017-11		(3,448)
Balance—January 1, 2019	$	—

The warrant liability in the table above is composed of the fair value of the 2017 Warrants that the Company issued in connection with the Private Placement. The fair value of the warrant liability was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company utilized a Monte Carlo simulation, which is a statistical method used to generate a defined number of share price paths to develop a reasonable estimate of the range of the future expected share prices, to value the warrant liability. The Monte Carlo simulation incorporated assumptions and estimates to value the warrant liability. Estimates and assumptions impacting the fair value measurement included the estimated probability of adjusting the exercise price of the warrants, the number of shares for which the warrants will be exercisable, the remaining contractual term of the warrants, the risk-free interest rate, the expected dividend yield, and the expected volatility of the price of the underlying common shares.

The Company historically had been a private company and lacks company-specific historical and implied volatility information of its shares. Therefore, it estimated its expected share volatility based on the historical volatility of publicly traded peer companies for a term equal to the remaining contractual term of the warrants. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the warrants. The Company estimated a 0% expected dividend yield based on the fact that the Company has never paid or declared dividends and does not intend to do so in the foreseeable future.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases, or ASU 2016-02, to enhance the transparency and comparability of financial reporting related to leasing arrangements. The Company adopted ASU 2016-02 on January 1, 2019, or the effective date, and used the effective date as its date of initial application.

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. The Company has determined that the rate implicit in the lease is not determinable and the Company does not have borrowings with similar terms and collateral. Therefore, the Company considered a variety of factors, including observable debt yields from comparable companies and the volatility in the debt market for securities with similar terms, in determining that 8% was reasonable to use as the incremental borrowing rate for purposes of the calculation of lease liabilities.

In accordance with the guidance in ASU 2016-02, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on fair values to the lease components and non-lease components.

Although separation of lease and non-lease components is required, certain practical expedients are available. Entities may elect the practical expedient to not separate lease and non-lease components. Rather, they would account for each lease component and the related non-lease component together as a single component. The Company has elected to account for the lease and non-lease components of each of its operating leases as a single lease component and allocate all of the contract consideration to the lease component only. The lease component results in an operating right-of-use asset being recorded on the consolidated balance sheets and amortized such that lease expense is recorded on a straight line basis over the term of the lease.

Net Loss per Share

Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including the assumed exercise of stock options and warrants.

Warrant Liability

In connection with entering into the Private Placement, the Company issued the 2017 Warrants with each share of common stock sold in the Private Placement. The Company classified the 2017 Warrants as a liability on its consolidated balance sheet prior to January 1, 2019, because each warrant represented a freestanding financial instrument that is not indexed to the Company’s own shares. The warrant liability was initially recorded at fair value upon entering into the Private Placement agreement and was subsequently remeasured to fair value at each reporting date. Changes in the fair value of the warrant liability were recognized as gains (losses) in the condensed consolidated statement of operations through the year ended December 31, 2018.

Subsequent Events

The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, and are early adopted by the Company or adopted as of the specified effective date.

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which is intended to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. The Company adopted this standard effective January 1, 2019, which had no impact on the Company’s condensed consolidated financial statements.

Accrued Expenses

9 Months Ended

Sep. 30, 2019

Accrued Expenses

Accrued Expenses

3. Accrued Expenses

Accrued expenses consist of the following:


	September 30,		December 31,
	2019		2018

Clinical trials	$	1,621	$	1,745
Professional fees		218		219
Payroll and related expenses		478		908
Accrued expenses	$	2,317	$	2,872

Leases

9 Months Ended

Sep. 30, 2019

Leases

Leases

4. Leases

In February 2016, the FASB issued ASU 2016-02, Leases, or ASU 2016-02. ASU 2016-02 requires a lessee to recognize on its balance sheet (for both finance and operating leases) a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company adopted ASU 2016-02 on January 1, 2019, on the effective date, and used the effective date as its date of initial application. As such, the Company did not adjust prior period amounts. The Company also elected to adopt the practical expedients upon transition, which permit companies to not reassess lease identification, classification, and initial direct costs under ASU 2016-02 for leases that commenced prior to the effective date.

The Company has operating leases for real estate in the United States and does not have any finance leases. The Company’s leases may contain options to renew and extend lease terms and options to terminate leases early. Reflected in the right-of-use asset and lease liability on the Company’s consolidated balance sheets are the periods provided by renewal and extension options that the Company is reasonably certain to exercise, as well as the periods provided by termination options that the Company is reasonably certain to not exercise.

The Company has existing leases that include variable lease and non-lease components that are not included in the right-of-use asset and lease liability and are reflected as an expense in the period incurred. Such payments primarily include common area maintenance charges and increases in rent payments that are driven by factors such as future changes in an index (e.g., the Consumer Price Index).

In calculating the present value of future lease payments, the Company utilized its incremental borrowing rate based on the remaining lease term at the date of adoption. The Company has elected to account for each lease component and its associated non-lease components as a single lease component and has allocated all of the contract consideration across lease components only. This will potentially result in the initial and subsequent measurement of the balances of the right-of-use asset and lease liability for leases being greater than if the policy election was not applied. The Company has existing net leases in which the non-lease components (e.g. common area maintenance, maintenance, consumables, etc.) are paid separately from rent based on actual costs incurred and therefore are not included in the right-of-use asset and lease liability and are reflected as an expense in the period incurred. On January 1, 2019, the Company recorded a right-of-use asset of $1,755 and a lease liability of $1,720 on its consolidated balance sheets and reclassified a rent liability against the right-of-use asset of $35. As of September 30, 2019, a right-of-use asset of $1,214 and lease liability of $1,214 are reflected on the consolidated balance sheets. The Company recorded rent expense of $211 and $175, respectively, during the three months ended September 30, 2019 and 2018 and $629 and $467, respectively, for the nine months ended September 30, 2019 and 2018.

Future lease payments under non-cancelable operating leases as of September 30, 2019 are detailed as follows:


Future Operating Lease Payments
2019	$	210
2020		532
2021		434
2022		146
Total Lease Payments		1,322
Less: imputed interest		(108)
Total operating lease liabilities	$	1,214

Warrants

9 Months Ended

Sep. 30, 2019

Warrants

Warrants

5. Warrants

As of September 30, 2019, outstanding warrants to purchase common stock consisted of the following:


September 30, 2019
	Number of Shares
	Issuable	Exercise Price		Exercisable for	Classification

Penny Warrants	54,516	$	0.01	Common Stock	Equity
2017 Warrants	2,758,094	$	1.75	Common Stock	Equity
2019 Warrants	7,557,142	$	1.95	Common Stock	Equity
	10,369,752

2017 Warrants

The 2017 Warrants contain full ratchet anti-dilution protection provisions. Prior to January 1, 2019, the Company classified the 2017 Warrants as a liability on its consolidated balance sheet because each warrant represented a freestanding financial instrument that, due to the potential variable nature of the exercise price, is not considered to be indexed to the Company’s own shares. The warrant liability was initially recorded at fair value upon entering into the Private Placement and has been subsequently remeasured to fair value at each reporting date. Changes in the fair value of the warrant liability were recognized as gains (losses) in the Company’s consolidated statement of operations.

On January 1, 2019, the Company adopted ASU 2017-11 and concluded that the 2017 Warrants now qualify for equity classification. The Company applied the guidance retrospectively to the 2017 Warrants by means of a cumulative-effect adjustment to its statement of financial position as of the beginning of the interim and annual period beginning January 1, 2019. The Company performed a final remeasurement of the warrant liability as of January 1, 2019 and reclassified $3,448 to additional paid in capital.

The Company will recognize on a prospective basis the value of the effect of the down round feature in the warrant when it is triggered (i.e., when the exercise price is adjusted downward). This value is measured as the difference between (1) the financial instrument’s fair value (without the down round feature) using the pre-trigger exercise price and (2) the financial instrument’s fair value (with the down round feature) using the reduced exercise price. The value of the effect of the down round feature will be treated as a dividend and a reduction to income available to common shareholders in the basic EPS calculation. In connection with the 2019 Public Offering, when the 2017 Warrants were repriced from $6.085 to $1.75, the Company recorded a dividend of $359 during the nine months ended September 30, 2019.

2019 Warrants

On February 5, 2019, in connection with the 2019 Public Offering, the Company issued immediately exercisable warrants (the “2019 Warrants”) to purchase 7,557,142 shares of common stock to investors. The 2019 Warrants have an exercise price of $1.95 per share and expire on February 5, 2026. The 2019 Warrants qualify for equity classification.

Common Stock	9 Months Ended
Common Stock	Sep. 30, 2019
Common Stock
Common Stock	6. Common Stock Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any, subject to the preferential dividend rights of the preferred stockholders. Through September 30, 2019, no dividends have been declared. Public Offering of Common Stock — March 2018 On March 27, 2018, the Company completed a public offering whereby the Company issued 2,146,667 shares of its common stock at a price of $7.50 per share, which included 280,000 shares issued pursuant to the underwriters’ exercise of their option to purchase additional shares of common stock. The aggregate net proceeds received by the Company from the offering were approximately $14,796, net of underwriting discounts and commissions and estimated offering expenses payable by the Company. Public Offering of Common Stock — February 2019 On February 5, 2019, the Company completed the 2019 Public Offering whereby the Company issued 7,557,142 shares of its common stock at a price of $1.75 per share, which included 985,714 shares issued pursuant to the underwriters’ exercise of their option to purchase additional shares of common stock, each share issued with a warrant to purchase one share of common stock. Each warrant has an exercise price of $1.95 per share with an exercise period expiring seven years from the date of issuance. The aggregate net proceeds received by the Company from the 2019 Public Offering were approximately $12,122, net of underwriting discounts and commissions and estimated offering expenses payable by the Company. Issuance of Common Stock under Distribution Agreement – April through September 2019 On September 7, 2018, the Company filed a Prospectus Supplement to register the offer and sale of shares of common stock having an aggregate offering price of up to $30,000 pursuant to the terms of a distribution agreement, or the Distribution Agreement, with Raymond James & Associates, Inc. During the nine months ended September 30, 2019, the Company issued 1,033,147 shares under the Distribution Agreement, for net proceeds of $1,923. Lincoln Park Purchase Agreements On July 10, 2019, the Company entered into a Commitment Purchase Agreement and a Registration Rights Agreement with Lincoln Park, pursuant to which the Company has the right to sell to Lincoln Park up to $20,000 in shares of its Common Stock, $0.001 par value per share, subject to certain limitations and conditions set forth in the Commitment Purchase Agreement. As consideration for Lincoln Park’s commitment to purchase shares of Common Stock pursuant to the Commitment Purchase Agreement, the Company issued to Lincoln Park 330,000 shares of Common Stock. The Company did not receive any cash proceeds from the issuance of such shares. On July 11, 2019, the Company entered into a Registered Offering Purchase Agreement and together with the Commitment Purchase Agreement, under which the Company agreed to sell to Lincoln Park, and Lincoln Park agreed to purchase 571,429 shares of its Common Stock, at a price of $1.75 per share for an aggregate purchase price of $1,000, pursuant to the Company’s effective shelf registration statement on Form S-3 (Registration No. 333-223419), including the prospectus supplement thereto dated July 11, 2019.

Equity Incentive Plans

9 Months Ended

Sep. 30, 2019

Equity Incentive Plans

Equity Incentive Plans

7. Equity Incentive Plans

Equity Incentive Plans

In September 2012, the Company adopted the 2012 Equity Incentive Plan, as amended (the “Plan”), which provides designated employees of the Company and its affiliates, certain consultants and advisors who perform services for the Company and its affiliates, and nonemployee members of the Board of Directors of the Company and its affiliates with the opportunity to receive grants of incentive stock options, nonqualified stock options and stock awards. As of September 30, 2019, there were 1,361,952 outstanding options issued under the 2012 Plan.

On January 20, 2017, the Company’s stockholders approved the 2016 Equity Incentive Plan (the “2016 Plan”). Beginning on January 1, 2018, the number of shares of common stock authorized for issuance pursuant to the 2016 Plan was increased each January 1 by an amount equal to four percent (4%) of the Company’s outstanding common stock as of the end of the immediately preceding calendar year or such other amount as determined by the compensation committee of the Company’s Board of Directors. During the nine months ended September 30, 2019, the compensation committee of the board of directors authorized an additional 3,000,000 shares of Common Stock to be added to the shares authorized for issuance under the 2016 Plan. As of September 30, 2019, there were 2,441,910 outstanding options issued under the 2016 Plan.

As of September 30, 2019, there were 2,464,373 shares available for grant under the Company’s Equity Incentive Plans.

A summary of stock option activity under the Equity Plans is as follows:


		Weighted
		Average		Weighted	Aggregate
		Exercise Price		Average Remaining	Intrinsic
	Options	Per Share		Life in Years	Value
Outstanding at December 31, 2018	2,761,912	$	11.30	8.01	$	—
Granted	1,476,975	$	1.48
Forfeited	(219,321)	$	15.14
Outstanding at September 30, 2019	4,019,566	$	7.48	8.22	$	—

Options exercisable at September 30, 2019	2,119,678	$	11.17	7.35	$	—
Options vested and expected to vest at September 30, 2019	4,019,566	$	7.48	8.22	$	—

The grant date fair value of the options granted during the year ended December 31, 2018 and the nine months ended September 30, 2019, was estimated at the date of grant using the Black-Scholes option valuation model. The expected life was estimated using the “simplified” method as defined by the Securities and Exchange Commission’s Staff Accounting Bulletin 107, Share-Based Payment. The expected volatility was based on the historical volatility of comparable public companies from a representative peer group selected based on industry and market capitalization data. The risk-free interest rate was based on the continuous rates provided by the U.S. Treasury with a term approximating the expected life of the option. The expected dividend yield was 0% because the Company does not expect to pay any dividends for the foreseeable future. The Company elected the straight-line attribution method in recognizing the grant date fair value of options issued over the requisite service periods of the awards, which are generally the vesting periods.

The assumptions that the Company used to determine the grant-date fair value of stock options granted to employees and directors during the year ended December 31, 2018 and the nine months ended September 30, 2019 were as follows, presented on a weighted average basis:


	Nine Months Ended		Year Ended
	September 30,		December 31,
	2019		2018

Expected volatility	66.94	%	66.94	%
Weighted average risk-free interest rate	2.07	%	2.80	%
Expected dividend yield	0.00	%	0.00	%
Expected term (in years)	6.79		6.95

Stock options generally vest over a three or four year period, as determined by the Compensation Committee of the Board of Directors at the time of grant. The options expire ten years from the grant date. As of September 30, 2019, there was approximately $4,004 of unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a remaining weighted-average period of approximately 2.11 years.

The Company recognized stock-based compensation expense related to the issuance of stock option awards to employees and non-employees in the condensed consolidated statements of operations and comprehensive loss as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Research and development	$	181	$	180	$	536	$	460
General and administrative		769		752		2,260		2,084
Total	$	950	$	932	$	2,796	$	2,544

Restricted Stock Units

During the three months ended September 30, 2019, the Company issued 181,000 restricted stock units (“RSUs”) to employees under the 2016 Plan. Upon vesting of the RSUs, the Company has the option to settle the award by either issuing shares of the Company’s common stock or an amount of cash equal to the fair value of the Company’s common stock on the vesting date. As of September 30, 2019, the Company recorded a restricted stock liability on its condensed consolidated balance sheets of $0.2 million.

The following table presents a summary of outstanding RSU’s under the 2016 Plan as of September 30, 2019:


		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value

Outstanding at December 31, 2018	—	$	—
Awarded	181,000	$	1.74
Outstanding at September 30, 2019	181,000	$	1.74

As of September 30, 2019, there were 181,000 shares outstanding covered by RSUs that are expected to vest. The weighted average grant date fair value of these shares of restricted stock was $1.74 per share and the aggregate grant date fair value of these shares of restricted stock was approximately $0.3 million. As of September 30, 2019, there were approximately $0.1 million of unrecognized compensation costs, net of estimated forfeitures, related to RSU’s granted to employees, which are expected to be recognized as expense over a remaining weighted average period of 0.25 years.

Net Loss Per Share

9 Months Ended

Sep. 30, 2019

Net Loss Per Share

Net Loss Per Share

8. Net Loss Per Share

Basic and diluted net loss per share for the three and nine months ended September 30, 2019 and 2018 was calculated as follows (in thousands except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Numerator:
Net loss	$	(7,935)	$	(6,632)	$	(24,904)	$	(24,618)
Dividend attributable to down round feature of warrants		—		—		(359)		—
Net loss attributable to common stockholders for basic loss per share	$	(7,935)	$	(6,632)	$	(25,263)	$	(24,618)
Less change in fair value of warrant liability		—		1,793		—		—
Net loss attributable to common stockholders for diluted loss per share	$	(7,935)	$	(8,425)	$	(25,263)	$	(24,618)

Denominator:
Weighted average number of common shares outstanding - basic		23,923,196		14,701,785		22,039,386		13,955,949
Assumed conversion of dilutive securities:
Private Placement Warrants		—		509,931		—		—
Denominator for diluted loss per share -- adjusted weighted average shares		23,923,196		15,211,716		22,039,386		13,955,949
Net loss per share attributable to common stockholders - basic	$	(0.33)	$	(0.45)	$	(1.15)	$	(1.76)
Net loss per share attributable to common stockholders - diluted	$	(0.33)	$	(0.55)	$	(1.15)	$	(1.76)

The Company’s potentially dilutive securities include stock options and warrants. These securities were excluded from the computations of diluted net loss per share for the three and nine months ended September 30, 2019 and 2018, as the effect would be to reduce the net loss per share. The following table includes the potential shares of common stock, presented based on amounts outstanding at each period end, that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Options to purchase common stock	4,019,566	2,631,446	4,019,566	2,631,446
Warrants to purchase common stock	10,369,752	54,516	10,369,752	2,812,610
	14,389,318	2,685,962	14,389,318	5,444,056

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies Manufacturing Agreements—The Company is party to manufacturing agreements with vendors to manufacture TRX518 and DKN-01, its lead product candidates, for use in clinical trials. As of September 30, 2019, noncancelable commitments under these agreements totaled $532. License and Service Agreement—On January 3, 2011, the Company entered into a license agreement with Eli Lilly and Company (“Lilly”) to grant a license to the Company for certain intellectual property rights relating to pharmaceutically active compounds that may be useful in the treatment of bone healing, cancer and, potentially, other medical conditions. The Company previously issued 9,000,000 shares of Series A Stock to Lilly in consideration for the grant of the license. As defined in the license agreement, the Company would be required to pay royalties to Lilly based upon a percentage in the low single digits of net sales of developed products, if and when achieved. However, there can be no assurance that clinical or commercialization success of developed products will occur, and no royalties have been paid or accrued through September 30, 2019. License Agreement—On May 28, 2015, the Company entered into a license agreement with Lonza Sales AG (“Lonza”), pursuant to which Lonza granted the Company a world-wide, non-exclusive license for certain intellectual property relating to a gene expression system for manufacturing DKN‑01. As defined in the license agreement, the Company would be required to pay royalties to Lonza based on a percentage in the low single digits of net sales of DKN‑01, if and when achieved. However, there can be no assurance that clinical or commercialization success will occur, and no royalties have been paid or accrued through September 30, 2019. Legal Proceedings—At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. A patent covering the TRX518 antibody and its uses in methods of inducing or enhancing an immune response in a subject was granted in 2013 to the Company by the European Patent Office (EPO). Three notices of opposition to this patent were filed: two by major pharmaceutical companies and a third by an individual, possibly on behalf of a major pharmaceutical company. At the conclusion of the opposition proceedings before the Opposition Division of the EPO, the Opposition Division issued a decision indicating that the Company’s patent was maintained with modified claims that differ from the claims as originally granted. These narrowed claims cover the TRX518 antibody and uses of the TRX518 antibody in methods of inducing or enhancing an immune response in a subject. The Company has filed an appeal of the decision of the Opposition Division seeking to obtain broader claims that more closely reflect the claims as granted in the patent. The EPO Board of Appeal has not yet scheduled a date for the appeal hearing. In 2016, a patent covering the use of the TRX518 antibody in combination with a chemotherapeutic agent for treating cancer was granted to the Company by the EPO. In March 2017, notices of opposition to this patent were filed at the EPO by ten different entities, including several major pharmaceutical companies. Oral proceedings at the EPO took place on December 4 and 5, 2018. At the conclusion of the oral proceedings, the Opposition Division decided that the patent should be revoked in its entirety on the ground that the claims as granted contained added matter. Subsequently, the Opposition Division issued an interlocutory decision restating its conclusion that the claims as granted contained added matter and revoking the patent. The Company has filed an appeal of the decision of the Opposition Division seeking to obtain a reversal of the Opposition Division’s decision on added matter. The EPO Board of Appeal has not yet scheduled a date for the appeal hearing. Indemnification Agreements—In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of September 30, 2019 or December 31, 2018.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2019
Related Party Transactions
Related Party Transactions	10. Related Party Transactions The Company has a license agreement with a stockholder (See Note 9). On February 5, 2019, the Company completed the 2019 Public Offering pursuant to which the Company issued 7,557,142 shares of its common stock at a price of $1.75 per share, which included 985,714 shares issued pursuant to the underwriters’ exercise of their option to purchase additional shares of common stock, each share issued with a warrant to purchase one share of common stock. Each warrant has an exercise price of $1.95 per share with an exercise period expiring seven years from the date of issuance. The aggregate net proceeds received by the Company from the offering were approximately $12,122, net of underwriting discounts and commissions and estimated offering expenses payable by the Company. HealthCare Ventures IX, L.P. purchased common stock and warrants in the 2019 Public Offering on the same terms and conditions as the other Purchasers. Three of the Company’s directors and executive officers are affiliated with HealthCare Ventures IX, L.P. and its affiliates.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Summary of Significant Accounting Policies

Principles of Consolidation

Use of Estimates

Research and development incentive income and receivable

The following table shows the change in the research and development incentive receivable from December 31, 2017 to September 30, 2019 (in thousands):


Balance at December 31, 2017	$	1,744
Australian research and development incentive income		756
Cash received for 2016 eligible overseas research and development expenses		(740)
Cash received for 2017 eligible expenses		(793)
Foreign currency translation		(131)
Balance at December 31, 2018		836
Australian research and development incentive income		182
Adjustment to prior year estimated incentives		(53)
Foreign currency translation		(36)
Balance at September 30, 2019	$	929

Foreign Currency Translation

Other Assets

Warrants

Fair Value of Financial Instruments

Level 1—Quoted prices in active markets for identical assets or liabilities.

A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands):


	Total		Level 1		Level 2		Level 3
September 30, 2019
Assets:
Cash & cash equivalents	$	10,058	$	10,058	$	—	$	—
Total assets	$	10,058	$	10,058	$	—	$	—

December 31, 2018
Assets:
Cash & cash equivalents	$	16,284	$	16,284	$	—	$	—
Total assets	$	16,284	$	16,284	$	—	$	—

Liabilities:
Warrant liability	$	3,448	$	—	$	—	$	3,448
Total liabilities	$	3,448	$	—	$	—	$	3,448

A roll-forward of the recurring fair value measurements of the warrant liability categorized with Level 3 inputs is as follows (in thousands):


	Warrant
	Liability
Balance—December 31, 2017	$	11,862
Change in fair value		4,851
Balance—March 31, 2018		16,713
Exercise of warrants		(1,130)
Change in Fair value		662
Balance—June 30, 2018		16,245
Change in Fair value		(1,793)
Balance—September 30, 2018		14,452
Change in Fair value		(11,004)
Balance—December 31, 2018		3,448
Final remeasurement and reclassification of 2017 Warrants to equity in connection with the adoption of ASU 2017-11		(3,448)
Balance—January 1, 2019	$	—

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, and are early adopted by the Company or adopted as of the specified effective date.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Significant Accounting Policies

Schedule of change in the research and development incentive receivable

The following table shows the change in the research and development incentive receivable from December 31, 2017 to September 30, 2019 (in thousands):


Balance at December 31, 2017	$	1,744
Australian research and development incentive income		756
Cash received for 2016 eligible overseas research and development expenses		(740)
Cash received for 2017 eligible expenses		(793)
Foreign currency translation		(131)
Balance at December 31, 2018		836
Australian research and development incentive income		182
Adjustment to prior year estimated incentives		(53)
Foreign currency translation		(36)
Balance at September 30, 2019	$	929

Summary of assets and liabilities carried at fair value in accordance with the hierarchy

A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands):


	Total		Level 1		Level 2		Level 3
September 30, 2019
Assets:
Cash & cash equivalents	$	10,058	$	10,058	$	—	$	—
Total assets	$	10,058	$	10,058	$	—	$	—

December 31, 2018
Assets:
Cash & cash equivalents	$	16,284	$	16,284	$	—	$	—
Total assets	$	16,284	$	16,284	$	—	$	—

Liabilities:
Warrant liability	$	3,448	$	—	$	—	$	3,448
Total liabilities	$	3,448	$	—	$	—	$	3,448

Schedule of the recurring fair value measurements of the warrant derivative liability categorized with Level 3 inputs

A roll-forward of the recurring fair value measurements of the warrant liability categorized with Level 3 inputs is as follows (in thousands):


	Warrant
	Liability
Balance—December 31, 2017	$	11,862
Change in fair value		4,851
Balance—March 31, 2018		16,713
Exercise of warrants		(1,130)
Change in Fair value		662
Balance—June 30, 2018		16,245
Change in Fair value		(1,793)
Balance—September 30, 2018		14,452
Change in Fair value		(11,004)
Balance—December 31, 2018		3,448
Final remeasurement and reclassification of 2017 Warrants to equity in connection with the adoption of ASU 2017-11		(3,448)
Balance—January 1, 2019	$	—

Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2019

Accrued Expenses

Schedule of accrued expenses


	September 30,		December 31,
	2019		2018

Clinical trials	$	1,621	$	1,745
Professional fees		218		219
Payroll and related expenses		478		908
Accrued expenses	$	2,317	$	2,872

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases

Schedule of future minimum lease payments


Future Operating Lease Payments
2019	$	210
2020		532
2021		434
2022		146
Total Lease Payments		1,322
Less: imputed interest		(108)
Total operating lease liabilities	$	1,214

Warrants (Tables)

9 Months Ended

Sep. 30, 2019

Warrants

Schedule of warrants


September 30, 2019
	Number of Shares
	Issuable	Exercise Price		Exercisable for	Classification

Penny Warrants	54,516	$	0.01	Common Stock	Equity
2017 Warrants	2,758,094	$	1.75	Common Stock	Equity
2019 Warrants	7,557,142	$	1.95	Common Stock	Equity
	10,369,752

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Equity Incentive Plans (Tables)

9 Months Ended

Sep. 30, 2019

Equity Incentive Plans

Summary of stock option activity under the Company's Equity Incentive Plans


		Weighted
		Average		Weighted	Aggregate
		Exercise Price		Average Remaining	Intrinsic
	Options	Per Share		Life in Years	Value
Outstanding at December 31, 2018	2,761,912	$	11.30	8.01	$	—
Granted	1,476,975	$	1.48
Forfeited	(219,321)	$	15.14
Outstanding at September 30, 2019	4,019,566	$	7.48	8.22	$	—

Options exercisable at September 30, 2019	2,119,678	$	11.17	7.35	$	—
Options vested and expected to vest at September 30, 2019	4,019,566	$	7.48	8.22	$	—

Schedule of assumptions used to determine grant-date fair value of stock options


	Nine Months Ended		Year Ended
	September 30,		December 31,
	2019		2018

Expected volatility	66.94	%	66.94	%
Weighted average risk-free interest rate	2.07	%	2.80	%
Expected dividend yield	0.00	%	0.00	%
Expected term (in years)	6.79		6.95

Schedule of stock-based compensation expense classified in the consolidated statements of operations and comprehensive loss


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Research and development	$	181	$	180	$	536	$	460
General and administrative		769		752		2,260		2,084
Total	$	950	$	932	$	2,796	$	2,544

Summary of outstanding RSU's under the 2016 Plan


		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value

Outstanding at December 31, 2018	—	$	—
Awarded	181,000	$	1.74
Outstanding at September 30, 2019	181,000	$	1.74

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Net Loss Per Share

Schedule of basic and diluted net loss per share

Basic and diluted net loss per share for the three and nine months ended September 30, 2019 and 2018 was calculated as follows (in thousands except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Numerator:
Net loss	$	(7,935)	$	(6,632)	$	(24,904)	$	(24,618)
Dividend attributable to down round feature of warrants		—		—		(359)		—
Net loss attributable to common stockholders for basic loss per share	$	(7,935)	$	(6,632)	$	(25,263)	$	(24,618)
Less change in fair value of warrant liability		—		1,793		—		—
Net loss attributable to common stockholders for diluted loss per share	$	(7,935)	$	(8,425)	$	(25,263)	$	(24,618)

Denominator:
Weighted average number of common shares outstanding - basic		23,923,196		14,701,785		22,039,386		13,955,949
Assumed conversion of dilutive securities:
Private Placement Warrants		—		509,931		—		—
Denominator for diluted loss per share -- adjusted weighted average shares		23,923,196		15,211,716		22,039,386		13,955,949
Net loss per share attributable to common stockholders - basic	$	(0.33)	$	(0.45)	$	(1.15)	$	(1.76)
Net loss per share attributable to common stockholders - diluted	$	(0.33)	$	(0.55)	$	(1.15)	$	(1.76)

Schedule of potentially anti-dilutive securities excluded from calculation of diluted net loss per share


	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Options to purchase common stock	4,019,566	2,631,446	4,019,566	2,631,446
Warrants to purchase common stock	10,369,752	54,516	10,369,752	2,812,610
	14,389,318	2,685,962	14,389,318	5,444,056

Nature of Business, Basis of Presentation and Liquidity - Liquidity (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended
	Jul. 11, 2019	Feb. 05, 2019	Mar. 27, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jul. 10, 2019	Dec. 31, 2018
Cash and cash equivalents				$ 10,058		$ 10,058			$ 16,284
Research and development incentive receivable				752		752			836
Accumulated deficit				187,172		187,172			$ 153,535
Net loss				$ 7,935	$ 6,632	$ 24,904	$ 24,618
Common stock, par value (in dollars per share)				$ 0.001		$ 0.001			$ 0.001
Proceeds from issuance of stock		$ 12,122	$ 14,796
Lincoln Park Purchase Agreements
Common stock value maximum right to sell								$ 20,000
Common stock, par value (in dollars per share)								$ 0.001
Sale of stock, shares	571,429
Price per share	$ 1.75
Proceeds from issuance of stock	$ 1,000

Summary of Significant Accounting Policies - Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Summary of Significant Accounting Policies
R&D reimbursement to subsidiary (as a percent)	43.50%		43.50%		43.50%
Research and development incentive income and receivable
Balance at the beginning of the period			$ 836	$ 1,744	$ 1,744
Other income from Australian research and development incentives	$ (7)	$ 299	129	$ 1,188
Australian research and development incentive income			182		756
Cash received for 2016 eligible overseas research and development expenses					(740)
Cash received for 2017 eligible expenses					(793)
Adjustment to prior year estimated incentives			(53)
Foreign currency translation			(36)		(131)
Balance at the end of the period	929		929		836
Other Assets
Deposits for future service	1,074		1,074		1,380
Deferred issuance costs	$ 387		$ 387		$ 162

Summary of Significant Accounting Policies - Warrants and Fair Value of Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				9 Months Ended	12 Months Ended
	Jan. 01, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Dec. 31, 2018	Feb. 05, 2019	Nov. 14, 2017
Warrants
Warrant liability transferred to equity	$ 3,448					$ 3,448
Dividend						359
Assets:
Cash & cash equivalents		$ 16,284				10,058	$ 16,284
Total assets		16,284				10,058	16,284
Liabilities:
Warrant liability		3,448					3,448
Total liabilities		3,448					$ 3,448
Fair value measurements of the warrant liability
Warrant liability transferred to equity	3,448					$ 3,448
Expected dividend yield (as a percentage)						0.00%	0.00%
Leases
Leases, discount rate						8.00%
Level 1
Assets:
Cash & cash equivalents		16,284				$ 10,058	$ 16,284
Total assets		16,284				$ 10,058	16,284
Level 3
Liabilities:
Warrant liability		3,448					3,448
Total liabilities		3,448					3,448
2017 Warrants
Warrants
Exercise price (per warrant)						$ 1.75		$ 1.75	$ 6.085
Recurring \| Level 3
Warrants
Warrant liability transferred to equity	(3,448)
Fair value measurements of the warrant liability
Beginning Balance	3,448	14,452	$ 16,245	$ 16,713	$ 11,862	$ 3,448	11,862
Exercise of warrants				(1,130)
Change in fair value		(11,004)	(1,793)	662	4,851
Warrant liability transferred to equity	$ (3,448)
Ending Balance		$ 3,448	$ 14,452	$ 16,245	$ 16,713		$ 3,448

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accrued Expenses
Clinical trials	$ 1,621	$ 1,745
Professional fees	218	219
Payroll and related expenses	478	908
Accrued expenses	$ 2,317	$ 2,872

Leases - (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
Leases - (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Leases
Right of use asset, net	$ 1,755	$ 1,214		$ 1,214
Lease liability	1,720	1,214		1,214
Rent expense		$ 211	$ 175	$ 629	$ 467
Reclassified rent liability against the right-of-use asset	$ 35

Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Leases
2019	$ 210
2020	532
2021	434
2022	146
Total Lease Payments	1,322
Less: imputed interest	(108)
Total operating lease liabilities	$ 1,214	$ 1,720

Warrants - (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended
	Jan. 01, 2019	Sep. 30, 2019	Feb. 05, 2019	Nov. 14, 2017
Warrants
Warrants outstanding (in warrants)		10,369,752
Warrant liability transferred to equity	$ 3,448	$ 3,448
Recorded a dividend for warrants		$ 359
Penny Warrants
Warrants
Warrants outstanding (in warrants)		54,516
Exercise price (per warrant)		$ 0.01
2017 Warrants
Warrants
Warrants outstanding (in warrants)		2,758,094
Exercise price (per warrant)		$ 1.75	$ 1.75	$ 6.085
2019 Warrants
Warrants
Warrants outstanding (in warrants)		7,557,142
Exercise price (per warrant)		$ 1.95	$ 1.95
Warrants (issued)			7,557,142

Common Stock (Details) $ in Thousands	9 Months Ended
Common Stock (Details) $ in Thousands	Sep. 30, 2019 USD ($) Vote
Common Stock
Votes (per share) \| Vote	1
Dividend declared \| $	$ 0

Common Stock - Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands					9 Months Ended
	Jul. 11, 2019	Jul. 10, 2019	Feb. 05, 2019	Mar. 27, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Sep. 07, 2018
Common stock, par value (in dollars per share)					$ 0.001		$ 0.001
Issuance of common stock (in shares)			7,557,142	2,146,667
Price per share			$ 1.75	$ 7.50
Proceeds from issuance, net			$ 12,122	$ 14,796
Purchase price						$ 14,796
Distribution Agreement
Common stock value maximum right to sell								$ 30,000
Issuance of common stock (in shares)					1,033,147
Proceeds from issuance, net					$ 1,923
Lincoln Park Purchase Agreements
Common stock value maximum right to sell		$ 20,000
Common stock, par value (in dollars per share)		$ 0.001
Issuance of common stock (in shares)	571,429	330,000
Price per share	$ 1.75
Proceeds from issuance, net	$ 1,000
2019 Warrants
Exercise price (per warrant)			$ 1.95		$ 1.95
Warrant term (in years)			7 years
Over-Allotment Option
Issuance of common stock (in shares)			985,714	280,000

Equity Incentive Plan - Equity Incentive Plans (Details) - shares		9 Months Ended
	Jan. 20, 2017	Sep. 30, 2019	Dec. 31, 2018
Stock-Based Compensation
Options outstanding (in shares)		4,019,566	2,761,912
Shares granted under equity incentive plan		1,476,975
Available for grant (in shares)		2,464,373
2012 Plan
Stock-Based Compensation
Options outstanding (in shares)		1,361,952
2016 Plan
Stock-Based Compensation
Options outstanding (in shares)		2,441,910
Annual increase in authorized shares (as a percent)	4.00%
Additional shares authorized		3,000,000

Equity Incentive Plan - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Options
Outstanding balance at the beginning of the period (in shares)			2,761,912
Granted (in shares)			1,476,975
Forfeited (in shares)			(219,321)
Outstanding balance at the end of the period (in shares)	4,019,566		4,019,566		2,761,912
Options exercisable at the end of the period (in shares)	2,119,678		2,119,678
Options vested and expected to vest at end of period (in shares)	4,019,566		4,019,566
Weighted Average Exercise Price Per Share
Outstanding balance at the beginning of the period (in dollars per share)			$ 11.30
Granted (in dollars per share)			1.48
Forfeited (in dollars per share)			15.14
Outstanding balance at the end of the period (in dollars per share)	$ 7.48		7.48		$ 11.30
Exercisable at the end of the period (in dollars per share)	11.17		11.17
Options vested and expected to vest at end of the period (in dollars per share)	$ 7.48		$ 7.48
Weighted Average Remaining Life in Years
Outstanding balance			8 years 2 months 19 days		8 years 4 days
Options exercisable at end of period			7 years 4 months 6 days
Options vested and expected to vest at end of the period			8 years 2 months 19 days
Aggregate Intrinsic Value
Stock-based compensation expense	$ 950	$ 932	$ 2,796	$ 2,544
Assumptions used to determine grant-date fair value
Expected Volatility			66.94%		66.94%
Weighted average risk-free interest rate			2.07%		2.80%
Expected dividend yield (as a percentage)			0.00%		0.00%
Expected term (in years)			6 years 9 months 15 days		6 years 11 months 12 days
Expiration period			10 years
Compensation cost related to the non-vested awards not yet recognized	4,004		$ 4,004
Weighted average period for recognition of compensation cost			2 years 1 month 10 days
Research and development
Aggregate Intrinsic Value
Stock-based compensation expense	181	180	$ 536	460
General and administrative
Aggregate Intrinsic Value
Stock-based compensation expense	$ 769	$ 752	$ 2,260	$ 2,084
Maximum
Assumptions used to determine grant-date fair value
Vesting period			4 years
Minimum
Assumptions used to determine grant-date fair value
Vesting period			3 years

Equity Incentive Plan - Restricted Stock Units (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock liability	$ 159
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Weighted- average period over which unrecognized stock-based compensation cost will be expensed	2 years 1 month 10 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Awarded \| shares	181,000
Outstanding balance at the end of the period \| shares	181,000
Weighted average grant date fair value \| $ / shares	$ 1.74
Aggregate grant date fair value	$ 300
Unrecognized compensation costs, net of estimated forfeitures	$ 100
Weighted- average period over which unrecognized stock-based compensation cost will be expensed	3 months
2016 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued \| shares	181,000
Restricted stock liability	$ 200

Net Loss Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net loss	$ (7,935)	$ (6,632)	$ (24,904)	$ (24,618)
Dividend attributable to down round feature of warrants			(359)
Net loss attributable to common stockholders for basic loss per share	(7,935)	(6,632)	(25,263)	(24,618)
Change in fair value of warrant liability		1,793		(3,720)
Net loss attributable to common stockholders for diluted loss per share	$ (7,935)	$ (8,425)	$ (25,263)	$ (24,618)
Denominator:
Weighted average number of common shares outstanding - basic (in shares)	23,923,196	14,701,785	22,039,386	13,955,949
Assumed conversion of dilutive securities:
Private Placement Warrants (in shares)		509,931
Denominator for diluted loss per share - adjusted weighted (in shares)	23,923,196	15,211,716	22,039,386	13,955,949
Net loss per share attributable to common stockholders - basic (in dollars per share)	$ (0.33)	$ (0.45)	$ (1.15)	$ (1.76)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (0.33)	$ (0.55)	$ (1.15)	$ (1.76)

Net Loss Per Share - Antidilutive (Details) - shares	3 Months Ended		9 Months Ended
Net Loss Per Share - Antidilutive (Details) - shares	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share	14,389,318	2,685,962	14,389,318	5,444,056
Options to purchase common stock
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share	4,019,566	2,631,446	4,019,566	2,631,446
Warrants to purchase common stock
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share	10,369,752	54,516	10,369,752	2,812,610

Commitments and Contingencies - Manufacturing, License and Other Agreements (Details) - USD ($) $ in Thousands	Jan. 03, 2011	Sep. 30, 2019
Commitments and Contingencies
Noncancelable commitments		$ 532
License and Service Agreement
Commitments and Contingencies
Paid or accrued royalties		0
Related party License Agreement
Commitments and Contingencies
Paid or accrued royalties		$ 0
Preferred Class A
Commitments and Contingencies
Issuance of stock in consideration for license (in shares)	9,000,000

Commitments and Contingencies - Legal Proceedings (Details)	1 Months Ended	9 Months Ended
	Mar. 31, 2017 item	Sep. 30, 2019 company individual item
TRX518
Loss Contingencies
Number of notices of opposition filed		3
Number of major companies that filed notices of opposition \| company		2
Number of individuals that filed notices of opposition \| individual		1
TRX518 and Chemotherapeutic
Loss Contingencies
Number of notices of opposition filed	10

Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 05, 2019	Mar. 27, 2018	Sep. 30, 2019
Related Party Transactions
Issuance of common stock (in shares)	7,557,142	2,146,667
Price per share	$ 1.75	$ 7.50
Number of warrants issued per common stock	1
Proceeds from issuance, net	$ 12,122	$ 14,796
Over-Allotment Option
Related Party Transactions
Issuance of common stock (in shares)	985,714	280,000
2019 Warrants
Related Party Transactions
Exercise price (per warrant)	$ 1.95		$ 1.95
Warrant expiring period	7 years