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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2018	May 07, 2018
Document Information [Line Items]
Entity Registrant Name	ACELRX PHARMACEUTICALS INC
Entity Central Index Key	0001427925
Trading Symbol	acrx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		51,320,598
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands

Mar. 31, 2018

Dec. 31, 2017

^[1]

Assets

Cash and cash equivalents

$ 43,603

$ 52,902

Short-term investments

7,573

7,567

Accounts receivable, net

772

1,533

Inventories

666

956

Prepaid expenses and other current assets

1,044

455

Total current assets

53,658

63,413

Property and equipment, net

11,067

11,051

Restricted cash

178

Long-term tax receivable

703

Other assets

207

Total Assets

65,813

75,552

Liabilities and Stockholders’ Deficit

Accounts payable

2,300

1,424

Accrued liabilities

2,213

3,543

Long-term debt, current portion

7,920

7,727

Deferred revenue, current portion

350

362

470

604

Total current liabilities

13,253

13,660

Deferred rent, net of current portion

494

378

Long-term debt, net of current portion

9,494

11,369

Deferred revenue, net of current portion

3,384

3,463

85,882

82,984

Contingent put option liability

186

207

Total liabilities

112,693

112,061

Commitments and Contingencies

Common stock, $0.001 par value—100,000,000 shares authorized as of March 31, 2018 and December 31, 2017; 50,991,444 and 50,899,154 shares issued and outstanding as of March 31, 2018 and December 31, 2017

Additional paid-in capital

262,531

261,310

Accumulated deficit

(309,462)

(297,870)

Total stockholders’ deficit

(46,880)

(36,509)

Total Liabilities and Stockholders’ Deficit

$ 65,813

$ 75,552

[1]	The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares

Mar. 31, 2018

Dec. 31, 2017

^[1]

Common stock, par value (in dollars per share)

$ 0.001

Common stock, authorized (in shares)

100,000,000

Common stock, issued (in shares)

50,991,444

50,899,154

Common stock, outstanding (in shares)

50,991,444

50,899,154

[1]	The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Revenue	$ 343	$ 3,109
Operating costs and expenses:
Cost of goods sold	1,114	4,125
Research and development	3,513	6,919
General and administrative	3,985	4,138
Total operating costs and expenses	8,612	15,182
Loss from operations	(8,269)	(12,073)
Other (expense) income:
Interest expense	(643)	(774)
Interest income and other income (expense), net	136	(146)
Non-cash interest expense on liability related to sale of future royalties	(2,816)	(2,558)
Total other expense	(3,323)	(3,478)
Net loss	(11,592)	(15,551)
Other comprehensive (loss) income:
Unrealized (losses) gains on available-for-sale securities		(5)
Comprehensive loss	$ (11,592)	$ (15,556)
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (0.23)	$ (0.34)
Shares used in computing net loss per share of common stock, basic and diluted (in shares)	50,930,943	45,348,255
Collaboration Agreement Revenue [Member]
Revenue:
Revenue	$ 274	$ 3,027
Contract and Other [Member]
Revenue:
Revenue	$ 69	$ 82

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (11,592)	$ (15,551)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash royalty revenue related to royalty monetization	(91)	(21)
Non-cash interest expense on liability related to royalty monetization	2,816	2,558
Depreciation and amortization	149	480
Non-cash interest expense related to debt financing	181	91
Stock-based compensation	1,080	1,144
Revaluation of put option and PIPE warrant liabilities	(21)	197
Other	(11)	(5)
Changes in operating assets and liabilities:
Accounts receivable	761	3,125
Inventories	290	302
Prepaid expenses and other assets	(550)	(323)
Accounts payable	786	652
Accrued liabilities	(1,265)	(51)
Deferred revenue	(91)	(90)
Deferred rent	184	(43)
Net cash used in operating activities	(7,374)	(7,535)
Cash flows from investing activities:
Purchase of property and equipment	(208)	(536)
Purchase of investments	(995)
Proceeds from maturities of investments	1,000
Net cash used in investing activities	(203)	(536)
Cash flows from financing activities:
Payment of long-term debt	(1,863)
Net proceeds from issuance of common stock through equity plans	141	93
Net cash (used in) provided by financing activities	(1,722)	93
Net decrease in cash, cash equivalents and restricted cash	(9,299)	(7,978)
Cash, cash equivalents and restricted cash—Beginning of period	53,080	80,488
Cash, cash equivalents and restricted cash—End of period	$ 43,781	$ 72,510

Reconciliation of Cash, Cash Equivalents, and Restricted Cash

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows (in thousands):

	March 31,		March 31,
	2018		2017
Cash and cash equivalents		43,603		72,332
Restricted cash		178		178
Cash, cash equivalents and restricted cash shown in the statement of cash flows		43,781		72,510

Amounts included in restricted cash represent letters of credit required to be maintained under the Company’s facility lease and corporate credit card agreements as security for performance under these agreements. The letters of credit are secured by certificates of deposit in amounts equal to the letters of credit.

See notes to condensed consolidated financial statements.

Note 1 - Organization and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Basis of Presentation and Significant Accounting Policies [Text Block]

Organization and Summary of Significant Accounting Policies

AcelRx Pharmaceuticals, Inc., or the Company or AcelRx, was incorporated in Delaware on

July 13, 2005

as SuRx, Inc., and in

January 2006,

the Company changed its name to AcelRx Pharmaceuticals, Inc. The Company’s operations are based in Redwood City, California.

AcelRx is a specialty pharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of acute pain. AcelRx’s lead product candidate, DSUVIA

™

(known as DZUVEO

™

, and formerly ARX-

04,

outside of the United States), and its follow-on product candidate, Zalviso

, each utilize sublingual sufentanil, delivered via a non-invasive route of sublingual administration. DSUVIA, is a

mcg sufentanil sublingual tablet in a single-dose applicator intended for the treatment of moderate-to-severe acute pain administered by a healthcare professional. Zalviso delivers

mcg sufentanil sublingually through a non-invasive delivery route via a pre-programmed, patient-controlled analgesia, or PCA, system. Subject to obtaining regulatory approvals, AcelRx anticipates developing a distribution capability and commercial organization in the United States to market and sell DSUVIA in the United States by itself, and potentially, in certain European Economic Area (which includes the

European Union, or EU, member states as well as Norway, Iceland and Liechtenstein), or EEA, countries with strategic partners. In geographies where AcelRx decides

not

to commercialize products by itself, the Company

may

seek to out-license commercialization rights. AcelRx intends to seek regulatory approval for Zalviso in the United States and, if successful, potentially promote Zalviso either by itself or with strategic partners. Zalviso is approved in the EEA and is currently being commercialized by Grünenthal GmbH, or Grünenthal.

DSUVIA

DSUVIA, is a

mcg sufentanil sublingual tablet in a single-dose applicator intended for the treatment of moderate-to-severe acute pain administered by a healthcare professional. DSUVIA is known as DZUVEO outside the United States. DSUVIA was initially developed at the request of the U.S. Department of Defense as a replacement for injections of morphine on the battlefield. In addition to the military application, AcelRx is developing DSUVIA for the treatment of patients suffering from moderate-to-severe acute pain in multiple settings, such as emergency room patients; patients who are recovering from short-stay or ambulatory surgery and do

not

require more long-term analgesia; post-operative patients who are transitioning from the operating room to the recovery floor; certain types of office-based or hospital-based procedures; patients being treated and transported by paramedics. The Company completed the Phase

clinical program for DSUVIA and in

February 2017

a New Drug Application, or NDA, was accepted for filing by the U.S. Food and Drug Administration, or FDA, for DSUVIA for the treatment of moderate-to-severe acute pain to be administered by a healthcare professional in medically supervised settings. In

October 2017,

the Company received a Complete Response Letter, or CRL, from the FDA regarding its NDA for DSUVIA which states the FDA determined it cannot approve the NDA in its present form and provides recommendations for resubmission. The CRL contained

two

primary recommendations. First, while the safety database was suitable in number of patients, the collection of additional data was requested on at least

patients to assess the safety of DSUVIA dosed at the maximum amount described in the proposed labelling. Second, to ensure proper administration of the tablet with the single-dose applicator, the FDA recommended certain changes to the Directions for Use, or DFU, to address use-related errors, including dropped tablets, which changes would need to be validated through a Human Factors, or HF, study. The Company had a Type A post-action meeting with the FDA in

January 2018

to discuss the topics covered in the CRL and to clarify the path to move towards resubmission of the DSUVIA NDA. In the Type A meeting, a proposal was discussed to address the safety of DSUVIA dosed at the maximum amount by reducing the maximum dose in the proposed label. In

April 2018,

the Company successfully completed the HF study to validate the revised DFU with

dropped tablets during the study and in

May 2018,

the Company announced the resubmission of the NDA for DSUVIA to the FDA. The Company anticipates a

six

-month review by the FDA with a projected Prescription Drug User Fee Act, or PDUFA, date in the

fourth

quarter of

2018.

The Company filed a Marketing Authorisation Application, or MAA, for DZUVEO (sufentanil sublingual tablet,

mcg) for the treatment of patients with moderate-to-severe acute pain in a medically supervised setting with the European Medicines Agency, or EMA. In

April 2018,

the Company announced that the Committee for Medicinal Products for Human Use, or CHMP, had adopted a positive opinion on DZUVEO. The positive opinion of the EMA's CHMP will be reviewed by the European Commission, and a final decision on DZUVEO is anticipated in the

third

quarter of

2018.

Zalviso

Zalviso delivers

mcg sufentanil sublingually through a non-invasive delivery route via a pre-programmed, patient-controlled analgesia, or PCA, system. Zalviso is approved in the EEA, Norway, Iceland and Liechtenstein and is in late-stage development in the U.S. The Company had initially submitted to the FDA an NDA seeking approval for Zalviso in

September 2013

but received a CRL on

July 25, 2014.

Subsequently, the FDA requested an additional clinical study,

IAP312,

designed to evaluate the effectiveness of changes made to the functionality and usability of the Zalviso device and to take into account comments from the FDA on the study protocol. In the

IAP312

study, for which top-line results were announced in

August 2017,

Zalviso met safety, satisfaction and device usability expectations. These results will supplement the

three

Phase

trials already completed in the Zalviso NDA resubmission. The Company plans to resubmit the NDA for Zalviso in the

second

half of

2018.

December 16, 2013,

AcelRx and Grünenthal entered into a Collaboration and License Agreement, or the License Agreement, which was amended effective

July 17, 2015

and

September 20, 2016,

or the Amended License Agreement, which grants Grünenthal rights to commercialize Zalviso PCA system, or the Product, in the countries of the EU, Switzerland, Liechtenstein, Iceland, Norway and Australia (collectively, the Territory) for human use in pain treatment within, or dispensed by, hospitals, hospices, nursing homes and other medically supervised settings, or the Field. In

September 2015,

the European Commission, or EC, approved the Marketing Authorisation Application, or MAA, previously submitted to the European Medicines Agency, or EMA, for Zalviso for the management of acute moderate-to-severe post-operative pain in adult patients. The approval allows Grünenthal to market Zalviso in the EEA. Also on

December 16, 2013,

AcelRx and Grünenthal, entered into a related Manufacture and Supply Agreement, or the MSA, and together with the License Agreement, the Agreements. Under the MSA, the Company will exclusively manufacture and supply the Product to Grünenthal for the Field in the Territory. On

July 22, 2015,

the Company entered into an amendment to the MSA, or the MSA Amendment, and together with the MSA, the Amended MSA, between the Company and Grünenthal, effective as of

July 17, 2015,

and together with the Amended License Agreement, the Amended Agreements.

The Company has incurred recurring operating losses and negative cash flows from operating activities since inception. Although Zalviso has been approved for sale in Europe, on

September 18, 2015,

the Company sold the majority of the royalty rights and certain commercial sales milestones it is entitled to receive under the Amended License Agreement with Grünenthal to PDL BioPharma, Inc., or PDL, in a transaction referred to as the Royalty Monetization. As a result, the Company expects to continue to incur operating losses and negative cash flows.

Except as the context otherwise requires, when we refer to "we," "our," "us," the "Company" or "AcelRx" in this document, we mean AcelRx Pharmaceuticals, Inc., and its consolidated subsidiary. “DSUVIA” is a trademark, and “ACELRX” and “Zalviso” are registered trademarks, all owned by AcelRx Pharmaceuticals, Inc. This report also contains trademarks and trade names that are the property of their respective owners.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, ARPI LLC, which was formed in

September 2015

for the sole purpose of facilitating the monetization transaction with PDL of the expected royalty stream and milestone payments due from the sales of Zalviso in Europe by the Company’s commercial partner, Grünenthal, pursuant to the Amended License Agreement, or the Royalty Monetization. All intercompany accounts and transactions have been eliminated in consolidation. Refer to Note

“Liability Related to Sale of Future Royalties” for additional information.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do

not

include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.

Operating results for the

three

months ended

March 31, 2018,

are

not

necessarily indicative of the results that

may

be expected for the year ending

December

31,

2018.

The condensed consolidated balance sheet as of

December 31, 2017,

was derived from the Company’s audited financial statements as of

December 31, 2017,

included in the Company’s Annual Report on Form

-K filed with the SEC. These financial statements should be read in conjunction with the Company’s Annual Report on Form

-K for the year ended

December 31, 2017,

which includes a broader discussion of the Company’s business and the risks inherent therein.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management evaluates its estimates on an ongoing basis including critical accounting policies. Estimates are based on historical experience and on various other market-specific and other relevant assumptions that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are

not

readily apparent from other sources. Actual results could differ from those estimates.

Revenue Recognition

Beginning

January

2018,

the Company has followed the provisions of ASC Topic

606,

Revenue from Contracts with Customers

. The guidance provides a unified model to determine how revenue is recognized.

The Company generates revenue from collaboration agreements. These agreements typically include payments for upfront signing or license fees, cost reimbursements for development and manufacturing services, milestone payments, product sales, and royalties on licensee’s future product sales.

The Company has entered into award contracts with U.S. Department of Defense, or the DoD, to support the development of DSUVIA. These contracts provide for the reimbursement of qualified expenses for research and development activities. Revenue under these arrangements is recognized when the related qualified research expenses are incurred. The Company is entitled to reimbursement of overhead costs associated with the study costs under the DoD arrangements. The Company estimates this overhead rate by utilizing forecasted expenditures. Final reimbursable overhead expenses are dependent on direct labor and direct reimbursable expenses throughout the life of each contract, which

may

increase or decrease based on actual expenses incurred.

In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic

606.

The Company’s performance obligations include commercialization license rights, development services, services associated with the regulatory approval process, joint steering committee services, demo devices, manufacturing services, material rights for discounts on manufacturing services, and product supply.

The Company has optional additional items in contracts, which are considered marketing offers and are accounted for as separate contracts when the customer elects such options. Arrangements that include a promise for future commercial product supply and optional research and development services at the customer’s or the Company’s discretion are generally considered as options. The Company assesses if these options provide a material right to the licensee and if so, such material rights are accounted for as separate performance obligations. If the Company is entitled to additional payments when the customer exercises these options, any additional payments are recorded in revenue when the customer obtains control of the goods or services.

Transaction Price

The Company has both fixed and variable consideration. Non-refundable upfront fees and product supply selling prices are considered fixed, while milestone payments are identified as variable consideration when determining the transaction price. Funding of research and development activities is considered variable until such costs are reimbursed at which point they are considered fixed. The Company allocates the total transaction price to each performance obligation based on the relative estimated standalone selling prices of the promised goods or services for each performance obligation.

At the inception of each arrangement that includes milestone payments, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would

not

occur, the value of the associated milestone (such as a regulatory submission by the Company) is included in the transaction price. Milestone payments that are

not

within the control of the Company, such as approvals from regulators, are

not

considered probable of being achieved until those approvals are received.

For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (a) when the related sales occur, or (b) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).

Allocation of Consideration

As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. Estimated selling prices for license rights and material rights for discounts on manufacturing services are calculated using an income approach model and can include the following key assumptions: the development timeline, sales forecasts, costs of product sales, commercialization expenses, discount rate, the time which the manufacturing services are expected to be performed, and probabilities of technical and regulatory success. For all other performance obligations, the Company uses a cost-plus margin approach.

Timing of Recognition

Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. The Company estimates the performance period or measure of progress at the inception of the arrangement and re-evaluates it each reporting period. This re-evaluation

may

shorten or lengthen the period over which revenue is recognized. Changes to these estimates are recorded on a cumulative catch up basis. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. Revenue is recognized for products at a point in time and for licenses of functional intellectual property at the point in time the customer can use and benefit from the license. For performance obligations that are services, revenue is recognized over time proportionate to the costs that the Company has incurred to perform the services using the cost-to-cost input method.

Significant Accounting Policies

The Company’s significant accounting policies are detailed in its Annual Report on Form

-K for the year ended

December 31, 2017.

Aside from the adoption of ASC Topic

606

described below under “Recently Adopted Accounting Standards” and explained more fully above in “Revenue Recognition,”

and in Note

“Adoption of ASC Topic

606,

Revenue from Contracts with Customers

” below, there have been

significant changes to the Company’s significant accounting policies during the

three

months ended

March 31, 2018,

from those previously disclosed in its

2017

Annual Report on Form

-K.

Recently Adopted Accounting Standards

May 2014,

the FASB issued ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

, to provide guidance on revenue recognition. In

August 2015

and

March,

April,

May

and

December 2016,

the FASB issued additional amendments to the new revenue guidance relating to reporting revenue on a gross versus net basis, identifying performance obligations, licensing arrangements, collectability, noncash consideration, presentation of sales tax, transition, and clarifying examples. Collectively these are referred to as ASC Topic

606,

which replaces all legacy GAAP guidance on revenue recognition and eliminates all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine how revenue is recognized. The core principal of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In applying ASC Topic

606,

companies need to use more judgment and make more estimates than under legacy guidance. This includes identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each distinct performance obligation. ASC Topic

606

is effective for interim and annual reporting periods beginning after

December 15, 2017,

with early adoption permitted

one

year earlier.

The Company adopted the new standard effective

January 1, 2018

under the modified retrospective transition method, applying the new guidance to the most current period presented. Upon adoption, there was

change to the units of accounting previously identified under legacy GAAP, which are now considered performance obligations under the new guidance, and there was

change to the revenue recognition pattern for each performance obligation. Therefore, the adoption of the new standard resulted in

cumulative effect to the opening accumulated deficit balance.

May 2017,

the FASB issued ASU

2017

09,

Compensation - Stock Compensation (Topic

718

Scope of Modification Accounting

, to clarify which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under ASC

718.

Under the new guidance, an entity will

not

apply modification accounting to a share-based payment award if all of the following remain unchanged immediately before and after the change of terms and conditions:

●

The award’s fair value (or calculated value or intrinsic value, if those measurement methods are used),

●

The award’s vesting conditions, and

●

The award’s classification as an equity or liability instrument.

ASU

2017

is effective for annual periods, and interim periods within those annual periods, beginning after

December 15, 2017

for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have

not

yet been issued or made available for issuance. The ASU will be applied prospectively to awards modified on or after the adoption date. The adoption of ASU

2017

effective

January 1, 2018

did

not

have a material effect on the Company’s results of operations, financial condition or cash flows.

November 2016,

the FASB issued ASU

No.

2016

18,

Statement of Cash Flows (Topic

230

): Restricted Cash

. ASU

No.

2016

is intended to reduce diversity in practice in the classification and presentation of changes in restricted cash on the condensed consolidated statement of cash flows. The ASU requires that the condensed consolidated statement of cash flows explain the change in total cash and equivalents and amounts generally described as restricted cash or restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. The ASU also requires a reconciliation between the total of cash and equivalents and restricted cash presented on the condensed consolidated statement of cash flows and the cash and equivalents balance presented on the condensed consolidated balance sheet. The Company adopted ASU

No.

2016

18,

and the guidance has been retrospectively applied to all periods presented. The adoption of the guidance did

not

have an impact on the Company’s condensed consolidated balance sheet or statement of operations.

August 2016,

the FASB issued ASU

No.

2016

15,

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments,

addressing

eight

specific cash flow issues in an effort to reduce diversity in practice. The amended guidance is effective for fiscal years beginning after

December 15, 2017,

and for interim periods within those years. The adoption of ASU

2016

effective

January 1, 2018,

did

not

have a material impact on the Company’s condensed consolidated statements of cash flows.

Recently Issued Accounting Standards

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

)

, which establishes a new lease accounting model for lessees. The updated guidance requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after

December 15, 2018,

with early adoption permitted. The Company has

not

yet selected a transition date, and is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements.

Note 2 - Investments and Fair Value Measurement

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Investments and Fair Value Measurement Disclosure [Text Block]

Investments and Fair Value Measurement

Investments

The Company classifies its marketable securities as available-for-sale and records its investments at fair value. Available-for-sale securities are carried at estimated fair value based on quoted market prices or observable market inputs of almost identical assets, with the unrealized holding gains and losses included in accumulated other comprehensive income. Marketable securities which have maturities beyond

one

year as of the end of the reporting period are classified as non-current.

The table below summarizes the Company’s cash, cash equivalents and investments (in thousands):

	As of March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash and cash equivalents:
Cash	$	20,392	$	—	$	—	$	20,392
U.S. government agency securities		23,211		—		—		23,211
Total cash and cash equivalents	$	43,603	$	—	$	—	$	43,603

Marketable securities:
U.S. government agency securities	$	7,573	$	—	$	—	$	7,573
Total marketable securities	$	7,573	$	—	$	—	$	7,573

Total cash, cash equivalents and investments	$	51,176	$	—	$	—	$	51,176

	As of December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash and cash equivalents:
Cash	$	29,765	$	—	$	—	$	29,765
U.S. government agency securities		23,137		—		—		23,137
Total cash and cash equivalents	$	52,902	$	—	$	—	$	52,902

Marketable securities:
U.S. government agency securities	$	7,567	$	—	$	—	$	7,567
Total marketable securities	$	7,567	$	—	$	—	$	7,567

Total cash, cash equivalents and investments	$	60,469	$	—	$	—	$	60,469

As of

March 31, 2018

and

December

31,

2017,

none

of the available-for-sale securities held by the Company had material unrealized losses. There were

other-than-temporary impairments for these securities at

March 31, 2018

December

31,

2017.

gross realized gains or losses were recognized on the available-for-sale securities and, accordingly, there were

amounts reclassified out of accumulated other comprehensive income to earnings during the

three

months ended

March 31, 2018

and

March 31, 2017.

As of

March 31, 2018

and

December

31,

2017,

the contractual maturity of all investments held was less than

one

year.

Fair Value Measurement

The Company’s financial instruments consist of Level II assets and Level III liabilities. For Level II instruments, the Company estimates fair value by utilizing

third

party pricing services in developing fair value measurements where fair value is based on valuation methodologies such as models using observable market inputs, including benchmark yields, reported trades, broker/dealer quotes, bids, offers and other reference data. Such Level II instruments typically include U.S. treasury and U.S. government agency obligations. On

March 2, 2017,

the Company entered into an amended and restated loan agreement, or the Amended Loan Agreement with Hercules Capital Funding Trust

2014

and Hercules Technology II, L.P., together, Hercules, which contains a contingent put option liability. The Company’s estimate of fair value of the contingent put option liability was determined by using a risk-neutral valuation model, wherein the fair value of the underlying debt facility is estimated both with and without the presence of the default provisions, holding all other assumptions constant. The resulting difference between the

two

estimated fair values is the estimated fair value of the default provisions, or the contingent put option. Changes to the estimated fair value of these liabilities are recorded in interest income and other income (expense), net in the condensed consolidated statements of comprehensive loss. The fair value of the underlying debt facility is estimated by calculating the expected cash flows in consideration of an estimated probability of default and expected recovery rate in default and discounting such cash flows back to the reporting date using a risk-free rate.

The following table sets forth the fair value of the Company’s financial assets and liabilities by level within the fair value hierarchy (in thousands):

	As of March 31, 2018
	Fair Value		Level I		Level II		Level III
Assets
U.S. government agency obligations	$	30,784	$	—	$	30,784	$	—
Total assets measured at fair value	$	30,784	$	—	$	30,784	$	—

Liabilities
Contingent put option liability	$	186	$	—	$	—	$	186
Total liabilities measured at fair value	$	186	$	—	$	—	$	186

	As of December 31, 2017
	Fair Value		Level I		Level II		Level III
Assets
U.S. government agency obligations	$	30,704	$	—	$	30,704	$	—
Total assets measured at fair value	$	30,704	$	—	$	30,704	$	—

Liabilities
Contingent put option liability	$	207	$	—		—	$	207
Total liabilities measured at fair value	$	207	$	—	$	—	$	207

As of

March 31, 2017,

the Company also held a Level III liability associated with warrants, or PIPE warrants, issued in connection with the Company’s private placement equity offering, completed in

June 2012.

The PIPE warrants were considered a liability and were valued using the Black-Scholes option-pricing model, the inputs for which included exercise price of the PIPE warrants, market price of the underlying common shares, expected term, volatility based on a group of the Company’s peers and the risk-free rate corresponding to the expected term of the PIPE warrants. Changes to any of these inputs could have a significant impact to the estimated fair value of the PIPE warrants. The PIPE warrants expired in

November 2017.

The following tables set forth a summary of the changes in the fair value of the Company’s Level III financial liabilities for the

three

months ended

March 31, 2018

and

March 31, 2017 (

in thousands):

	Three Months Ended March 31, 2018
Fair value—beginning of period	$	207
Change in fair value of contingent put option associated with Amended Loan Agreement		(21	)
Fair value—end of period	$	186

	Three Months Ended March 31, 2017
Fair value—beginning of period	$	412
Change in fair value of PIPE warrants		7
Change in fair value of contingent put option associated with Amended Loan Agreement		190
Fair value—end of period	$	609

Note 3 - Inventories

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

Inventories

Inventories consist of finished goods, raw materials and work in process and are stated at the lower of cost or market and consist of the following (in thousands):

	Balance as of
	March 31, 2018		December 31, 2017
Raw materials	$	666	$	702
Work-in-process		—		254
Total	$	666	$	956

Note 4 - Adoption of ASC Topic 606, Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Adoption of ASC Topic

606,

Revenue from Contracts with Customers

January 1, 2018,

the Company adopted Topic

606

using the modified retrospective method applied to those contracts which were

not

completed as of

January 1, 2018.

Results for reporting periods beginning after

January 1, 2018,

are presented under Topic

606,

while prior period amounts are

not

adjusted and continue to be reported in accordance with the Company’s historical accounting under Topic

605.

The adoption of the new revenue recognition guidance resulted in

changes to deferred revenue or the accumulated deficit as of

January

2018.

Revenue Recognition

As described in Note

“Organization and Summary of Significant Accounting Policies,” the Company has entered into the Amended Agreements with Grünenthal related to Zalviso. At

March 31, 2018,

approximately

$3.7

million of the transaction price under the Amended Agreements is allocated to the discount on future manufacturing services, which the Company expects to be recognized through

2029.

For additional detail on the Company’s accounting policy regarding revenue recognition, refer to Note

“Organization and Summary of Significant Accounting Policies - Revenue Recognition.”

The following table presents changes in the Company’s contract liabilities for the

three

months ended

March 31, 2018:

	Balance at Beginning of the Period		Additions		Deductions			Balance at the end of the Period
	(in thousands)
Contract Liabilities: Deferred Revenue	$	3,825	$	-	$	(91	)	$	3,734

During the

three

months ended

March 31, 2018,

the Company recognized the following revenue (in thousands):

Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period:
Performance obligations satisfied – Amended Agreements	$	91
New activities in the period from performance obligations satisfied:
Performance obligations satisfied – Amended Agreements		153
Total revenue from performance obligations satisfied	$	244
Royalty revenue		30
Contract and other		69
Total revenue	$	343

Note 5 - U.S. Department of Defense	3 Months Ended
Note 5 - U.S. Department of Defense	Mar. 31, 2018
Notes to Financial Statements
Long-term Contracts or Programs Disclosure [Text Block]	5 . U.S. Department of Defense On May 11, 2015, the Company entered into an award contract (referred to as the DoD Contract) supported by the Clinical and Rehabilitative Medicine Research Program, or CRMRP, of the United States Army Medical Research and Materiel Command, or the USAMRMC, within the DoD, in which the DoD agreed to provide up to $17.0 million to the Company in order to support the development of DSUVIA (sufentanil sublingual tablet, 30 mcg), a proprietary, non-invasive, single-use tablet in a disposable, pre-filled single-dose applicator, or SDA, for the treatment of moderate-to-severe acute pain. Under the terms of the DoD Contract, the DoD has and continues to reimburse the Company for costs incurred for development, manufacturing, regulatory and clinical costs outlined in the DoD Contract, including reimbursement for certain personnel and overhead expenses. The period of performance under the DoD Contract began on May 11, 2015. The DoD Contract gives the DoD the option to extend the term of the DoD Contract and provide additional funding for the research. On March 2, 2016, the DoD Contract was amended to approve enrollment of additional patients in the SAP302 study, approve the addition of the SAP303 study, and extend the DoD Contract period of performance by four months from November 10, 2016 to March 9, 2017, to accommodate the increased SAP302 patient enrollment and the SAP303 study. The costs for these changes were absorbed within the current DoD Contract value. On March 9, 2017, the DoD Contract was amended to incorporate additional activities including the development and testing of packaging changes; additional stability testing; and preparation for any FDA advisory committee meeting for DSUVIA. The amendment also extends the DoD Contract period of performance by 11 months through February 28, 2018 to accommodate these additional activities. At December 31, 2017, the additional activities as outlined under the DoD Contract through February 28, 2018 were substantially complete. On February 28, 2018, the DoD contract was amended to incorporate additional services in the amount of $0.5 million and to extend the contract period by twelve months through February 28, 2019. If DSUVIA is approved by the FDA, the DoD has the option to purchase a certain number of units of commercial product pursuant to the terms of the DoD Contract. Revenue is recognized based on expenses incurred by the Company in conducting research and development activities, including overhead, as set forth in the agreement. Revenue attributable to the research and development performed under the DoD Contract, recorded as contract and other revenue in the condensed consolidated statements of comprehensive loss, was $0.1 million for each of the three months ended March 31, 2018 and 2017.

Note 6 - Collaboration Agreement	3 Months Ended
Note 6 - Collaboration Agreement	Mar. 31, 2018
Notes to Financial Statements
Collaborative Arrangement Disclosure [Text Block]	6 . Collaboration Agreement As described in Note 1 “Organization and Summary of Significant Accounting Policies,” the Company has entered into the Amended Agreements with Grünenthal related to Zalviso. Amended License Agreement Under the Amended License Agreement, the Company is eligible to receive approximately $194.5 million in additional milestone payments, based upon successful regulatory and product development efforts ( $28.5 million) and net sales target achievements ( $166.0 million). Grünenthal will also make tiered royalty and supply and trademark fee payments in the mid-teens up to the mid-twenties percent range, depending on the level of sales achieved, on net sales of Zalviso. A portion of the tiered royalty payment, exclusive of the supply and trademark fee payments, will be paid to PDL in connection with the Royalty Monetization. For additional information on the Royalty Monetization with PDL, see Note 8 “Liability Related to Sale of Future Royalties”. Unless earlier terminated, the Amended License Agreement continues in effect until the expiration of the obligation of Grünenthal to make royalty and supply and trademark fee payments, which supply and trademark fee continues for so long as the Company continues to supply the Product to Grünenthal. The Amended License Agreement is subject to earlier termination in the event the parties mutually agree, by a party in the event of an uncured material breach by the other party, upon the bankruptcy or insolvency of either party, or by Grünenthal for convenience. Amended MSA Under the terms of the Amended MSA, the Company will manufacture and supply the Product for use in the Field for the Territory exclusively for Grünenthal. The Product will be supplied at prices approximating the Company’s manufacturing cost, subject to certain caps, as defined in the MSA Amendment. The MSA Amendment requires the Company to use commercially reasonable efforts to enter stand-by contracts with third parties providing significant supply and manufacturing services and, under certain specified conditions, permits Grünenthal to use a third -party back-up manufacturer to manufacture the Product for Grünenthal’s commercial sale in the Territory. Unless earlier terminated, the Amended MSA continues in effect until the later of the expiration of the obligation of Grünenthal to make royalty and supply and trademark fee payments or the end of any transition period for manufacturing obligations due to the expiration or termination of the Amended License Agreement. The Amended MSA is subject to earlier termination in connection with certain termination events in the Amended License Agreement, in the event the parties mutually agree, by a party in the event of an uncured material breach by the other party or upon the bankruptcy or insolvency of either party. In the three months ended March 31, 2018, the Company recognized $0.3 million in revenue under the Amended Agreements, $0.1 million of which was non-cash royalty revenue, with the remainder consisting primarily of product sales revenue. In the three months ended March 31, 2017, the Company recognized $3.0 million in revenue under the Amended Agreements, primarily product sales revenue. As of March 31, 2018, the Company had current and noncurrent portions of the deferred revenue balance under the Amended Agreements of $0.4 million and $3.4 million, respectively. The deferred revenue balance consists primarily of the significant and incremental discount on manufacturing services, which is being recognized on a straight-line basis over the period such discount is made available to Grünenthal, which began in February 2016 and is estimated to continue through 2029.

Note 7 - Long-term Debt	3 Months Ended
Note 7 - Long-term Debt	Mar. 31, 2018
Notes to Financial Statements
Long-term Debt [Text Block]	7 . Long-Term Debt Amended Loan Agreement The Company has long-term debt with Hercules under the Amended Loan Agreement that requires equal monthly payments of principal and interest through the scheduled maturity date of March 1, 2020. A final payment equal to 6.5% of the aggregate principal amount of $20.5 million in loans funded under the Amended Loan Agreement, or the End of Term Fee, will be due on the earliest of (i) the maturity date, (ii) prepayment in full of the loans (other than by a refinancing with Hercules) or (iii) the date on which the loans under the Amended Loan Agreement become due and payable. The accrued balance due under the Amended Loan Agreement was $17.4 million at March 31, 2018 and $19.1 million at December 31, 2017. Interest expense related to the Amended Loan Agreement was $0.6 million, $0.2 million of which represented amortization of the debt discount, for the three months ended March 31, 2018. Interest expense related to the Amended Loan Agreement was $0.8 million, $0.3 million of which represented amortization of the debt discount, for the three months ended March 31, 2017.

Note 8 - Liability Related to Sale of Future Royalties

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

. Liability Related to Sale of Future Royalties

September 18, 2015,

the Company entered into the Royalty Monetization with PDL for which it received gross proceeds of

$65.0

million. Under the Royalty Monetization, PDL will receive

75%

of the European royalties under the Amended License Agreement with Grünenthal, as well as

80%

of the

first

four

commercial milestones worth

$35.6

million (or

80%

$44.5

million), up to a capped amount of

$195.0

million over the life of the arrangement.

The following table shows the activity within the liability account during the

three

months ended

March 31, 2018 (

in thousands):

	Three months ended March 31, 2018			Period from inception to March 31, 2018
Liability related to sale of future royalties — beginning balance	$	83,588		$	—
Proceeds from sale of future royalties		—			61,184
Non-cash royalty revenue		(52	)		(179	)
Non-cash interest expense recognized		2,816			25,347
Liability related to sale of future royalties as of March 31, 2018		86,352			86,352
Less: current portion		(470	)		(470	)
Liability related to sale of future royalties — net of current portion	$	85,882		$	85,882

As royalties are remitted to PDL from the Company’s subsidiary, ARPI LLC, as described in Note

“Organization and Summary of Significant Accounting Policies,” the balance of the liability will be effectively repaid over the life of the agreement. The Company will record non-cash royalty revenues and non-cash interest expense within its condensed consolidated statements of comprehensive loss over the term of the Royalty Monetization.

Note 9 - Warrants	3 Months Ended
Note 9 - Warrants	Mar. 31, 2018
Notes to Financial Statements
Warrants Disclosure [Text Block]	9 . Warrants Amended Loan Agreement Warrants In connection with the Company’s Amended Loan Agreement, warrants to purchase 176,730 shares of common stock at $3.07 per share were issued to Hercules. As of March 31, 2018, these warrants had not been exercised and were still outstanding. These warrants expire in December 2018.

Note 10 - Stock-based Compensation

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

. Stock-Based Compensation

The Company recorded total stock-based compensation expense for stock options, stock awards and the

2011

Employee Stock Purchase Plan, or ESPP, as follows (in thousands):

	Three Months Ended
	March 31,
	2018		2017
Cost of goods sold	$	87	$	84
Research and development		432		537
General and administrative		561		523
Total	$	1,080	$	1,144

As of

March 31, 2018,

there were

2,484,688

shares available for grant,

10,375,368

options outstanding and

restricted stock units outstanding under the Company’s

2011

Equity Incentive Plan and

948,959

shares available for grant under the ESPP.

Note 11 - Net Loss Per Share of Common Stock

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

. Net Loss per Share of Common Stock

The Company’s basic net loss per share of common stock is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by giving effect to all potential common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, options to purchase common stock and warrants to purchase common stock were considered to be common stock equivalents. In periods with a reported net loss, common stock equivalents are excluded from the calculation of diluted net loss per share of common stock if their effect is antidilutive.

The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been antidilutive:

	March 31 ,
	201 8		201 7
ESPP and stock options to purchase common stock		10,582,177		8,689,375
Common stock warrants		176,730		689,186

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, ARPI LLC, which was formed in

September 2015

“Liability Related to Sale of Future Royalties” for additional information.

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

not

Operating results for the

three

months ended

March 31, 2018,

are

not

necessarily indicative of the results that

may

be expected for the year ending

December

31,

2018.

The condensed consolidated balance sheet as of

December 31, 2017,

was derived from the Company’s audited financial statements as of

December 31, 2017,

included in the Company’s Annual Report on Form

-K filed with the SEC. These financial statements should be read in conjunction with the Company’s Annual Report on Form

-K for the year ended

December 31, 2017,

which includes a broader discussion of the Company’s business and the risks inherent therein.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

not

readily apparent from other sources. Actual results could differ from those estimates.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Beginning

January

2018,

the Company has followed the provisions of ASC Topic

606,

Revenue from Contracts with Customers

. The guidance provides a unified model to determine how revenue is recognized.

may

increase or decrease based on actual expenses incurred.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic

606.

Transaction Price

not

occur, the value of the associated milestone (such as a regulatory submission by the Company) is included in the transaction price. Milestone payments that are

not

within the control of the Company, such as approvals from regulators, are

not

considered probable of being achieved until those approvals are received.

Allocation of Consideration

Timing of Recognition

may

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Standards

May 2014,

the FASB issued ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

, to provide guidance on revenue recognition. In

August 2015

and

March,

April,

May

and

December 2016,

606,

606

is effective for interim and annual reporting periods beginning after

December 15, 2017,

with early adoption permitted

one

year earlier.

The Company adopted the new standard effective

January 1, 2018

under the modified retrospective transition method, applying the new guidance to the most current period presented. Upon adoption, there was

change to the units of accounting previously identified under legacy GAAP, which are now considered performance obligations under the new guidance, and there was

change to the revenue recognition pattern for each performance obligation. Therefore, the adoption of the new standard resulted in

cumulative effect to the opening accumulated deficit balance.

May 2017,

the FASB issued ASU

2017

09,

Compensation - Stock Compensation (Topic

718

Scope of Modification Accounting

, to clarify which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under ASC

718.

Under the new guidance, an entity will

not

apply modification accounting to a share-based payment award if all of the following remain unchanged immediately before and after the change of terms and conditions:

●

The award’s fair value (or calculated value or intrinsic value, if those measurement methods are used),

●

The award’s vesting conditions, and

●

The award’s classification as an equity or liability instrument.

ASU

2017

is effective for annual periods, and interim periods within those annual periods, beginning after

December 15, 2017

for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have

not

yet been issued or made available for issuance. The ASU will be applied prospectively to awards modified on or after the adoption date. The adoption of ASU

2017

effective

January 1, 2018

did

not

have a material effect on the Company’s results of operations, financial condition or cash flows.

November 2016,

the FASB issued ASU

No.

2016

18,

Statement of Cash Flows (Topic

230

): Restricted Cash

. ASU

No.

2016

No.

2016

18,

and the guidance has been retrospectively applied to all periods presented. The adoption of the guidance did

not

have an impact on the Company’s condensed consolidated balance sheet or statement of operations.

August 2016,

the FASB issued ASU

No.

2016

15,

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments,

addressing

eight

specific cash flow issues in an effort to reduce diversity in practice. The amended guidance is effective for fiscal years beginning after

December 15, 2017,

and for interim periods within those years. The adoption of ASU

2016

effective

January 1, 2018,

did

not

have a material impact on the Company’s condensed consolidated statements of cash flows.

Recently Issued Accounting Standards

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

)

December 15, 2018,

with early adoption permitted. The Company has

not

yet selected a transition date, and is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statements.

Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Schedule of Cash and Cash Equivalents [Table Text Block]

	March 31,		March 31,
	2018		2017
Cash and cash equivalents		43,603		72,332
Restricted cash		178		178
Cash, cash equivalents and restricted cash shown in the statement of cash flows		43,781		72,510

Note 2 - Investments and Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Cash, Cash Equivalents and Investments [Table Text Block]

	As of March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash and cash equivalents:
Cash	$	20,392	$	—	$	—	$	20,392
U.S. government agency securities		23,211		—		—		23,211
Total cash and cash equivalents	$	43,603	$	—	$	—	$	43,603

Marketable securities:
U.S. government agency securities	$	7,573	$	—	$	—	$	7,573
Total marketable securities	$	7,573	$	—	$	—	$	7,573

Total cash, cash equivalents and investments	$	51,176	$	—	$	—	$	51,176

	As of December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash and cash equivalents:
Cash	$	29,765	$	—	$	—	$	29,765
U.S. government agency securities		23,137		—		—		23,137
Total cash and cash equivalents	$	52,902	$	—	$	—	$	52,902

Marketable securities:
U.S. government agency securities	$	7,567	$	—	$	—	$	7,567
Total marketable securities	$	7,567	$	—	$	—	$	7,567

Total cash, cash equivalents and investments	$	60,469	$	—	$	—	$	60,469

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	As of March 31, 2018
	Fair Value		Level I		Level II		Level III
Assets
U.S. government agency obligations	$	30,784	$	—	$	30,784	$	—
Total assets measured at fair value	$	30,784	$	—	$	30,784	$	—

Liabilities
Contingent put option liability	$	186	$	—	$	—	$	186
Total liabilities measured at fair value	$	186	$	—	$	—	$	186

	As of December 31, 2017
	Fair Value		Level I		Level II		Level III
Assets
U.S. government agency obligations	$	30,704	$	—	$	30,704	$	—
Total assets measured at fair value	$	30,704	$	—	$	30,704	$	—

Liabilities
Contingent put option liability	$	207	$	—		—	$	207
Total liabilities measured at fair value	$	207	$	—	$	—	$	207

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Three Months Ended March 31, 2018
Fair value—beginning of period	$	207
Change in fair value of contingent put option associated with Amended Loan Agreement		(21	)
Fair value—end of period	$	186

	Three Months Ended March 31, 2017
Fair value—beginning of period	$	412
Change in fair value of PIPE warrants		7
Change in fair value of contingent put option associated with Amended Loan Agreement		190
Fair value—end of period	$	609

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Note 3 - Inventories (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	Balance as of
	March 31, 2018		December 31, 2017
Raw materials	$	666	$	702
Work-in-process		—		254
Total	$	666	$	956

Note 4 - Adoption of ASC Topic 606, Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Contract with Customer, Asset and Liability [Table Text Block]

	Balance at Beginning of the Period		Additions		Deductions			Balance at the end of the Period
	(in thousands)
Contract Liabilities: Deferred Revenue	$	3,825	$	-	$	(91	)	$	3,734

Disaggregation of Revenue [Table Text Block]

Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period:
Performance obligations satisfied – Amended Agreements	$	91
New activities in the period from performance obligations satisfied:
Performance obligations satisfied – Amended Agreements		153
Total revenue from performance obligations satisfied	$	244
Royalty revenue		30
Contract and other		69
Total revenue	$	343

Note 8 - Liability Related to Sale of Future Royalties (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Other Liabilities [Table Text Block]

	Three months ended March 31, 2018			Period from inception to March 31, 2018
Liability related to sale of future royalties — beginning balance	$	83,588		$	—
Proceeds from sale of future royalties		—			61,184
Non-cash royalty revenue		(52	)		(179	)
Non-cash interest expense recognized		2,816			25,347
Liability related to sale of future royalties as of March 31, 2018		86,352			86,352
Less: current portion		(470	)		(470	)
Liability related to sale of future royalties — net of current portion	$	85,882		$	85,882

Note 10 - Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three Months Ended
	March 31,
	2018		2017
Cost of goods sold	$	87	$	84
Research and development		432		537
General and administrative		561		523
Total	$	1,080	$	1,144

Note 11 - Net Loss Per Share of Common Stock (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	March 31 ,
	201 8		201 7
ESPP and stock options to purchase common stock		10,582,177		8,689,375
Common stock warrants		176,730		689,186

Reconciliation of Cash, Cash Equivalents, and Restricted Cash - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($)
$ in Thousands

Mar. 31, 2018

Dec. 31, 2017

Mar. 31, 2017

Dec. 31, 2016

Cash and cash equivalents

$ 43,603

$ 52,902

^[1]

$ 72,332

Restricted cash

178

Cash, cash equivalents and restricted cash shown in the statement of cash flows

$ 43,781

$ 53,080

$ 72,510

$ 80,488

[1]	The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Note 2 - Investments and Fair Value Measurement (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total	$ 0		$ 0
Available-for-sale Securities, Gross Realized Gain (Loss), Total	0	$ 0
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, Net of Tax	$ 0	$ 0

Note 2 - Investments and Fair Value Measurement - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Amortized Cost	$ 51,176	$ 60,469
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	51,176	60,469
Cash and cash equivalents:
Amortized Cost	51,176	60,469
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	51,176	60,469
Cash and Cash Equivalents [Member]
Amortized Cost	43,603	52,902
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	43,603	52,902
Cash and cash equivalents:
Amortized Cost	43,603	52,902
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	43,603	52,902
Cash and Cash Equivalents [Member] \| Cash [Member]
Amortized Cost	20,392	29,765
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	20,392	29,765
Cash and cash equivalents:
Amortized Cost	20,392	29,765
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	20,392	29,765
Cash and Cash Equivalents [Member] \| U.S. Government Agency Securities [Member]
Amortized Cost	23,211	23,137
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	23,211	23,137
Cash and cash equivalents:
Amortized Cost	23,211	23,137
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	23,211	23,137
Marketable Securities [Member]
Amortized Cost	7,573	7,567
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	7,573	7,567
Cash and cash equivalents:
Amortized Cost	7,573	7,567
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	7,573	7,567
Marketable Securities [Member] \| U.S. Government Agency Securities [Member]
Amortized Cost	7,573	7,567
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	7,573	7,567
Cash and cash equivalents:
Amortized Cost	7,573	7,567
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	$ 7,573	$ 7,567

Note 2 - Investments and Fair Value Measurement - Fair Value of Financial Assets and Liabilities by Level Within Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets, fair value	$ 30,784	$ 30,704
Liabilities, fair value	186	207
Contingent Put Option Liability [Member]
Liabilities, fair value	186	207
Fair Value, Inputs, Level 1 [Member]
Assets, fair value
Liabilities, fair value
Fair Value, Inputs, Level 1 [Member] \| Contingent Put Option Liability [Member]
Liabilities, fair value
Fair Value, Inputs, Level 2 [Member]
Assets, fair value	30,784	30,704
Liabilities, fair value
Fair Value, Inputs, Level 2 [Member] \| Contingent Put Option Liability [Member]
Liabilities, fair value
Fair Value, Inputs, Level 3 [Member]
Assets, fair value
Liabilities, fair value	186	207
Fair Value, Inputs, Level 3 [Member] \| Contingent Put Option Liability [Member]
Liabilities, fair value	186	207
U.S. Government Agency Obligations [Member]
Assets, fair value	30,784	30,704
U.S. Government Agency Obligations [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, fair value
U.S. Government Agency Obligations [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, fair value	30,784	30,704
U.S. Government Agency Obligations [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, fair value

Note 2 - Investments and Fair Value Measurement - Summary of Changes in Fair Value of Level III Financial Liabilities (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair value, Balance	$ 207	$ 412
Fair value, Balance	186	609
Change in fair value of PIPE warrants		7
Hercules 2011 Loan and Security Agreement [Member]
Change in fair value of contingent put option associated with Amended Loan Agreement	$ (21)	$ 190

Note 3 - Inventories - Inventory Components (Details) - USD ($)
$ in Thousands

Mar. 31, 2018

Dec. 31, 2017

Raw materials

$ 666

$ 702

Work-in-process

254

Total

$ 666

$ 956

^[1]

[1]	The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Note 4 - Adoption of ASC Topic 606, Revenue from Contracts with Customers (Details Textual) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Discount on Manufacturing Services	$ 3.7

Note 4 - Adoption of ASC Topic 606, Revenue from Contracts with Customers - Changes in Contract Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Contract Liabilities: Deferred Revenue	$ 3,825
Contract Liabilities: Deferred Revenue, Deductions	(91)
Contract Liabilities: Deferred Revenue	$ 3,734

Note 4 - Adoption of ASC Topic 606, Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied – Amended Agreements	$ 91
New activities in the period from performance obligations satisfied: Performance obligations satisfied – Amended Agreements	153
Total revenue from performance obligations satisfied	244
Revenue	343	$ 3,109
Royalty Revenue [Member]
Revenue	30
Contract and Other [Member]
Revenue	$ 69	$ 82

Note 5 - U.S. Department of Defense (Details Textual) - USD ($) $ in Thousands			3 Months Ended
	Mar. 09, 2017	Mar. 02, 2016	Mar. 31, 2018	Mar. 31, 2017	Feb. 28, 2018	May 11, 2015
Government Contract Receivable						$ 17,000
Revenue from Contract with Customer, Including Assessed Tax			$ 244
Amendment to DoD Contract Incorporate Additional Services [Member]
Government Contract Receivable					$ 500
Government [Member]
Award Contract Renewal Term	330 days	120 days
Government [Member] \| Contract and Other Revenue [Member]
Revenue from Contract with Customer, Including Assessed Tax			$ 100	$ 100

Note 6 - Collaboration Agreement (Details Textual) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2018

Mar. 31, 2017

Dec. 31, 2017

^[1]

Jul. 17, 2015

Revenue Recognition Milestone Method Agreed, Additional Amount, Based On Efforts And Targets

$ 194,500

Revenue Recognition, Milestone Method, Revenue Recognized

$ 300

$ 3,000

Deferred Revenue, Current

350

$ 362

Deferred Revenue, Noncurrent

3,384

$ 3,463

Non-cash Royalty [Member]

Revenue Recognition, Milestone Method, Revenue Recognized

$ 100

Based upon Successful Regulatory and Product Development Efforts [Member]

Revenue Recognition Milestone Method Agreed, Additional Amount, Based On Efforts And Targets

28,500

Based upon Net Sales Target Achievements [Member]

Revenue Recognition Milestone Method Agreed, Additional Amount, Based On Efforts And Targets

$ 166,000

[1]	The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Note 7 - Long-term Debt (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Interest Expense, Total	$ 643	$ 774
Amortization of Debt Discount (Premium)	$ 181	91
Amended and Restated Loan and Security Agreement [Member]
Debt Instrument, Final Payment, Percentage of Aggregate Principal Amount	6.50%
Hercules Loan and Security Agreement [Member]
Long-term Line of Credit, Total	$ 17,400		$ 19,100
Interest Expense, Total	600	800
Amortization of Debt Discount (Premium)	200	$ 300
Hercules Loan and Security Agreement [Member] \| First Tranche [Member]
Debt Instrument, Face Amount	$ 20,500

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Note 8 - Liability Related to Sale of Future Royalties (Details Textual) $ in Millions	Sep. 18, 2015 USD ($)
Proceeds From Sale of Royalty and Milestone Rights	$ 65.0
Royalty Arrangment Maximum Payments	$ 195.0
PDL [Member]
Percentage of Royalties and Rights Under Agreement	75.00%
PDL [Member] \| First Four Commercial Milestones [Member]
Percentage of Royalties and Rights Under Agreement	80.00%
Commercial Milestones Value Maximum Amount Available	$ 35.6
AcelRX [Member] \| First Four Commercial Milestones [Member]
Commercial Milestones Value Maximum Amount Available	$ 44.5

Note 8 - Liability Related to Sale of Future Royalties - Activity of Liability Related to Sale of Future Royalties (Details) - USD ($)
$ in Thousands

3 Months Ended

30 Months Ended

Mar. 31, 2018

Mar. 31, 2017

Mar. 31, 2018

Dec. 31, 2017

^[1]

$ 83,588

Proceeds from sale of future royalties

61,184

Non-cash royalty revenue

(52)

(179)

Non-cash interest expense recognized

2,816

$ 2,558

25,347

86,352

Less: current portion

(470)

$ (604)

$ 85,882

$ 82,984

[1]	The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Note 9 - Warrants (Details Textual) - Hercules Warrants [Member] - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 02, 2018
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		176,730
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 3.07
Common Stock Warrants Exercised	0

Note 10 - Stock-based Compensation (Details Textual)	Mar. 31, 2018 shares
2011 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,484,688
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	10,375,368
2011 Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance	0
Employee Stock Purchase Plan (ESPP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	948,959

Note 10 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock-based compensation expense	$ 1,080	$ 1,144
Cost of Sales [Member]
Stock-based compensation expense	87	84
Research and Development Expense [Member]
Stock-based compensation expense	432	537
General and Administrative Expense [Member]
Stock-based compensation expense	$ 561	$ 523

Note 11 - Net Loss Per Share of Common Stock - Common Stock Excluded from Computation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
ESPP and Employee Stock Options [Member]
Antidilutive securities (in shares)	10,582,177	8,689,375
Warrant [Member]
Antidilutive securities (in shares)	176,730	689,186