0001437749-24-016694 | 10-Q | XBRL Viewer

Investments and Fair Value Measurement Disclosure [Text Block]

2. 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 (loss).

As of March 31, 2024, and December 31, 2023, the contractual maturity of all investments held was less than one year.

The tables below summarize the Company’s cash, cash equivalents and short-term investments (in thousands):

	As of March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash, cash equivalents and restricted cash:
Cash	$	585	$	—	$	—	$	585
Money market funds		1,283		—		—		1,283
U.S. government agency securities		5,478		—		—		5,478
Commercial paper		4,776		—		—		4,776
Total cash and cash equivalents		12,122		—		—		12,122

Short-term investments:
U.S. government agency securities		4,779		—		—		4,779
Commercial paper		1,683		—		—		1,683
Total short-term investments		6,462		—		—		6,462
Total cash, cash equivalents, and short-term investments	$	18,584	$	—	$	—	$	18,584

	As of December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash and cash equivalents:
Cash	$	1,342	$	—	$	—	$	1,342
Money market funds		90		—		—		90
U.S. government agency securities		1,896		—		—		1,896
Commercial paper		2,393		—		—		2,393
Total cash and cash equivalents		5,721		—		—		5,721

Short-term investments:
U.S. government agency securities		3,362		—		—		3,362
Commercial paper		298		—		—		298
Total short-term investments		3,660		—		—		3,660
Total cash, cash equivalents, and short-term investments	$	9,381	$	—	$	—	$	9,381

At each reporting date, the Company performs an evaluation of impairment to determine if any unrealized losses are the result of credit losses. Impairment is assessed at the individual security level. Factors considered in determining whether a loss resulted from a credit loss or other factors include the Company’s intent and ability to hold the investment until the recovery of its amortized cost basis, the extent to which the fair value is less than the amortized cost basis, the length of time and extent to which fair value has been less than the cost basis, the financial condition of the issuer, any historical failure of the issuer to make scheduled interest or principal payments, any changes to the rating of the security by a rating agency, any adverse legal or regulatory events affecting the issuer or issuer’s industry, any significant deterioration in economic conditions. There were no material realized or unrealized gains or losses on marketable securities for the three months ended March 31, 2024 or the twelve months ended December 31, 2023. As such, the Company did not record a credit allowance for the three months ended March 31, 2024.

Fair Value Measurement

The Company’s financial instruments consist of Level I and II assets. Money market funds are highly liquid investments and are actively traded. The pricing information on these investment instruments is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. 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, U.S. government agency securities and commercial paper. As of March 31, 2024 and December 31, 2023, the Company held, in addition to Level II assets, a warrant liability related to the December 2022 Common Stock Warrants. The fair value of the warrant liability was estimated using the Black Scholes Model which uses as inputs the following weighted average assumptions: dividend yield, expected term in years; equity volatility; and risk-free interest rate. The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period. The estimated fair value of the warrant liability represents a Level III measurement. Changes to the estimated fair value of these liabilities are recorded in change in fair value of warrant liability in the condensed consolidated statements of operations.

The following tables set forth the fair value of the Company’s financial assets by level within the fair value hierarchy (in thousands):

	As of March 31, 2024
	Fair Value		Level I		Level II		Level III
Assets
Money market funds	$	1,283	$	1,283	$	—	$	—
U.S. government agency securities		10,257		—		10,257		—
Commercial paper		6,459		—		6,459		—
Total assets measured at fair value	$	17,999	$	1,283	$	16,716	$	—
Liabilities
Warrant liability	$	2,780	$	—	$	—	$	2,780
Total liabilities measured at fair value	$	2,780	$	—	$	—	$	2,780

	As of December 31, 2023
	Fair Value		Level I		Level II		Level III
Assets
Money market funds	$	90	$	90	$	—	$	—
U.S. government agency securities		5,258		—		5,258		—
Commercial paper		2,691		—		2,691		—
Total assets measured at fair value	$	8,039	$	90	$	7,949	$	—
Liabilities
Warrant liability	$	1,778	$	—	$	—	$	1,778
Total liabilities measured at fair value	$	1,778	$	—	$	—	$	1,778

The following tables set forth a summary of the changes in the fair value of the Company’s Level III warrant liability for the three months ended March 31, 2024 (in thousands):

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Fair value—beginning of period	$	1,778	$	7,098
Change in fair value of December 2022 Common Stock Warrants liability		1,002		(5,311	)
Fair value—end of period	$	2,780	$	1,787

The common warrants issued in December 2022 to purchase an aggregate of 4,227,052 shares of common stock, or the December 2022 Common Stock Warrants, were accounted for by the Company as a liability. At March 31, 2024, the December 2022 Common Stock Warrants were valued at approximately $2.8 million, using the Black-Scholes option pricing model as follows: exercise price of $2.07 per share, stock price of $1.03 per share, expected life of 4.75 years, volatility of 97.89%, a risk-free rate of 4.21% and 0% expected dividend yield.

There were no transfers between Level I, Level II or Level III of the fair value hierarchy during the three months ended March 31, 2024 and the year ended December 31, 2023.

Note 9 - Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Restricted stock units outstanding (in shares) \| shares	86,232
Restricted stock units weighted average outstanding (in dollars per share) \| $ / shares	$ 7.57
Granted (in shares) \| shares	131,724
Weighted average grant date fair value, granted (in dollars per share) \| $ / shares	$ 1.03
Vested (in shares) \| shares	(39,293)
Weighted average grant date fair value, vested (in dollars per share) \| $ / shares	$ 12.06
Forfeited (in shares) \| shares	0
Weighted average grant date fair value, forfeited (in dollars per share) \| $ / shares	$ 0
Restricted stock units outstanding (in shares) \| shares	178,663
Restricted stock units weighted average outstanding (in dollars per share) \| $ / shares	$ 1.76

Note 3 - Discontinued Operations

3 Months Ended

Mar. 31, 2024

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. Discontinued Operations

On March 12, 2023, the Company entered into the Asset Purchase Agreement with Alora for Alora’s acquisition of all assets related to DSUVIA, including inventories, equipment and intellectual property in exchange for consideration at closing of $1.1 million, a 15% payment on commercial sales of DSUVIA, 75% payment on sales of DSUVIA to the Department of Defense and up to $116.5 million in sales-based milestones. The transaction closed on April 3, 2023 (see Note 3, “Discontinued Operations” to the consolidated financial statements in the Company’s 2023 Annual Report on Form 10-K for additional information).

The following table presents the results of the discontinued operations for the three-month period ended March 31, 2024 and March 31, 2023 (in thousands):

	Three months ended
	March 31,
	2024		2023
Total revenues	$	—	$	501
Cost of goods sold		—		711
Selling, general and administrative expense		—		683
Impairment of net assets held for sale		—		7,007
Impairment of fixed assets		—		1,065
Gain on termination of lease liabilities		—		(1,098	)
Research and development expenses		—		349
Loss from operations		—		8,216
Net (income) loss from discontinued operations	$	—	$	8,216

The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented (in thousands).

	March 31, 2024			December 31, 2023
Accounts payable	$	10		$	10
Accrued liabilities		720			721
Total current liabilities of discontinued operations		730			731
Net assets (liabilities) of discontinued operations	$	(730	)	$	(731	)

The following table presents the significant non-cash items and purchases of property, plant and equipment for the discontinued operations that are included in the accompanying unaudited condensed consolidated statements of cash flows (in thousands):

	Three months ended
	March 31,
	2024		2023
Cash flows from operating activities:
Depreciation and amortization	$	—	$	215
Stock-based compensation		—		19
Impairment of net assets held for sale		—		7,007
Impairment of fixed assets		—		1,065
Gain on termination of lease liabilities		—		(1,098	)
Gain on extinguishment of debt		—		(400	)
Purchases of property and equipment		—		(100	)

Note 2 - Investments and Fair Value Measurement (Details Textual)
$ / shares in Units, $ in Thousands

Mar. 31, 2024

USD ($)

$ / shares

Dec. 31, 2023

USD ($)

^[1]

Dec. 29, 2022

Warrants and Rights Outstanding

$ 2,780

$ 1,778

Common Warrants [Member]

Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares

4,227,052

Warrants and Rights Outstanding

$ 2,800

Common Warrants [Member] | Measurement Input, Exercise Price [Member]

Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares

$ 2.07

Common Warrants [Member] | Measurement Input, Share Price [Member]

Common Warrants [Member] | Measurement Input, Expected Term [Member]

1.03

Common Warrants [Member] | Measurement Input, Price Volatility [Member]

4.75

Common Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]

0.9789

Common Warrants [Member] | Measurement Input, Expected Dividend Rate [Member]

4.21

[1]	The condensed consolidated balance sheet as of December 31, 2023 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, 2023.

Note 7 - Stockholders' Equity

3 Months Ended

Mar. 31, 2024

Equity [Text Block]

7. Stockholders’ Equity

Common Stock

January 2024 Private Placement

On January 17, 2024, the Company entered into a private placement with certain institutional investors for aggregate gross proceeds of $6.0 million upfront, an additional $10.0 million committed upon the announcement of positive clinical trial results for the Company’s NEPHRO CRRT study of Niyad, and an additional $2.0 million if Talphera stock trades above a specified price following the NEPHRO CRRT registration trial announcement, before deducting offering expenses payable by the Company.

The terms of the Private Placement include:

(i)

the first tranche of the Private Placement, which closed on January 22, 2024, resulted in the aggregate gross proceeds to the Company of approximately $6.0 million for Pre-Funded Warrants to purchase up to 7,792,208 to purchase shares of the Company’s common stock, par value $0.001 per share, or the Common Stock, excluding the proceeds, if any, from the exercise of the Pre-Funded Warrants issued in such tranche (see Note 8, “Warrants” for additional information).

(ii)

the second tranche of the Private Placement, which is a conditional purchase by the Purchasers subject to either (a) the satisfaction or waiver of achieving, by September 30, 2024, the NEPHRO CRRT primary and one of the secondary clinical trial endpoints, resulting in the Company issuing pre-funded warrants to purchase up to 12,987,013 shares of Common Stock, and receiving additional aggregate gross proceeds of approximately $10.0 million, and/or (b) the satisfaction or waiver of the volume-weighted average price of the Common Stock for each of the immediately subsequent five (5) trading days following the Company’s announcement of its NEPHRO CRRT trial data being at least $0.92 per share, resulting in the Company issuing pre-funded warrants to purchase up to 2,597,402 shares of Common Stock and receiving additional aggregate gross proceeds of approximately $2.0 million.

Any of the conditions in the second tranche can be waived by each Purchaser. The Company determined that the conditional tranche right is equity classified as it is indexed to the Company's own shares and meets all other conditions for equity classification and that the fair value of the right was immaterial at issuance.

The Securities Purchase Agreements contain customary representations, warranties and agreements by the Company and the Purchasers, indemnification rights and other obligations of the parties.

- Definition

The entire disclosure for equity.

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+ Details

Note 9 - Stock-based Compensation - Assumptions to Calculate Fair Value of Each Employee Stock Option (Details) - Weighted Average [Member] - Time-based Stock Option [Member]	3 Months Ended
	Mar. 31, 2024
Expected term (Year)	6 years 6 months
Risk-free interest rate	4.26%
Expected volatility	98.00%
Expected dividend rate	0.00%

Note 10 - 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, 2024	Mar. 31, 2023
RSU's, ESPP, and Employee Stock Options [Member]
Antidilutive securities (in shares)	1,850,012	989,011
Warrant [Member]
Antidilutive securities (in shares)	20,265,576	5,192,035

Note 4 - Sale of Future Payments (Details Textual) - USD ($)			1 Months Ended	3 Months Ended
	Jan. 13, 2024	Jan. 12, 2024	Jan. 31, 2024	Mar. 31, 2024
Noncash Interest Expense Recognized				$ 181,000
XOMA [Member]
Proceeds From Sale of Receivables		$ 8,000,000
License Agreement, Percentage of Royalty Payments Based on Net Sales and Milestone Payments		100.00%
License Agreement, Milestone Payments to be Paid, Maximum		$ 116,500,000
License Agreement, Threshold Payments Relating to Product		20
Transaction Costs From Sale of Receivables				500,000
Other Income		$ 1,200,000	$ 1,200,000
Proceeds from Debt, Net of Issuance Costs				$ 6,600,000
Debt Instrument, Interest Rate, Effective Percentage				13.30%
Noncash Interest Expense Recognized				$ 200,000
XOMA [Member] \| Agreement After Stepdown Date [Member]
Proceeds From Sale of Receivables	$ 1,400,000
License Agreement, Percentage of Royalty Payments Based on Net Sales and Milestone Payments		50.00%
License Agreement, Percentage of Royalty Payments Excluding Department of Defense Sales and Milestone Payments		100.00%
Transaction Costs From Sale of Receivables	$ 200,000

Note 8 - Warrants

3 Months Ended

Mar. 31, 2024

Warrants Disclosure [Text Block]

8. Warrants

The activity related to warrants during the three months ended March 31, 2024, is summarized as follows:

	Common Stock from Warrants		Weighted-average Exercise Price (per share)
Outstanding at December 31, 2023		21,682,049	$	1.40
Granted		7,792,208	$	0.001
Outstanding at March 31, 2024		29,474,257	$	0.96
Exercisable at March 31, 2024		29,474,257	$	0.96

January 2024 Pre-Funded Warrants and Amendment of Prior Warrants

On January 17, 2024, the Company entered into Securities Purchase Agreements (see Note 7, “Stockholders’ Equity” for additional information), relating to the issuance and sale of up to 7,792,208 pre-funded warrants to the Purchasers in a two-tranche private placement, or the Private Placement, to purchase shares of the Company’s Common Stock, at a purchase price of $0.769 per share and an exercise price of $0.001 per share, or the January 2024 Pre-Funded Warrants. The January 2024 Pre-Funded Warrants are exercisable immediately, subject to certain ownership restrictions, following each closing date of the Private Placement and have an unlimited term.

The January 2024 Pre-Funded warrants were classified as a component of permanent equity in the Company's condensed consolidated balance sheet as they are freestanding financial instruments that are immediately exercisable, do not embody an obligation for the Company to repurchase its own shares and permit the holders to receive a fixed number of shares of common stock upon exercise. All of the shares underlying the January 2024 Pre-Funded warrants have been included in the weighted-average number of shares of common stock used to calculate net loss per share attributable to common stockholders because the shares may be issued for little or no consideration and are fully vested and are exercisable after their original issuance date. The January 2024 Pre-Funded warrants may participate with common shareholders in dividends or other distributions.

In July 2023, in connection with a prior private placement, the Company issued to certain of the Purchasers (i) Series A common stock purchase warrants to purchase up to 3,676,473 shares of Common Stock and (ii) Series B common stock purchase warrants to purchase up to 3,676,473 shares of Common Stock (the “Prior Warrants”). In connection with the January 2024 Private Placement, the Company and the Purchasers agreed to amend and restate, 2,941,178 of each the Series A common stock purchase warrants and Series B common stock purchase warrants outstanding, by reducing their exercise price from $1.11 to $0.77 per share. Pursuant to ASU 2021-04, the Company remeasured the fair value of the amended and restated Prior Warrants as of the modification date based on the modified terms and recorded the increase in fair value of $0.3 million as equity issuance costs, all of which was allocated to additional paid in capital. The fair value assumptions related to the modification of these 5,882,356 amended and restated Prior Warrants as of January 17, 2024 were as follows: exercise price of $0.77 per share, stock price of $0.769 per share, expected life of 4.5 years, volatility of 96.91%, a risk-free rate of 4.02% and 0% expected dividend yield.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (3,954)	$ (8,152)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash interest expense on liability related to sale of future payments	181	(0)
Depreciation and amortization	0	262
Non-cash interest expense related to debt financing	0	38
Stock-based compensation	302	569
Revaluation of warrant liability	1,002	(5,311)
Impairment of net assets held for sale	0	7,007
Impairment of fixed assets	0	1,065
Gain on termination of lease liabilities	0	(1,098)
Gain on extinguishment of debt liability	0	(400)
Other	(72)	(15)
Changes in operating assets and liabilities:
Inventories	0	61
Prepaid expenses and other assets	826	1,583
Accounts payable	(62)	100
Accrued liabilities	(1,106)	(960)
Operating lease liabilities	0	30
Deferred revenue	0	(29)
Net cash used in operating activities	(2,883)	(5,250)
Cash flows from investing activities:
Purchase of property and equipment	0	(100)
Purchase of investments	(4,230)	0
Proceeds from maturities of investments	1,500	500
Net cash provided by investing activities	(2,730)	400
Cash flows from financing activities:
Payment of long-term debt	0	(2,083)
Gross proceeds from sale of future payments	6,654	0
Issuance costs related to sale of future payments	(521)	0
Net proceeds from issuance of prefunded warrants	5,884	2
Net proceeds from issuance of common stock through equity plans	(3)	9
Net provided by (cash used in) financing activities	12,014	(2,072)
Net change in cash, cash equivalents and restricted cash	6,401	(6,922)
Cash, cash equivalents and restricted cash—Beginning of period	5,721	20,275
Cash, cash equivalents and restricted cash—End of period	12,122	13,353
us-gaap_CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract
Equity issuance costs from modification of July 2023 Financing Warrants	$ 251	$ 0

Note 9 - Stock-based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Text Block]

9. Stock-Based Compensation

The Company recorded total stock-based compensation expense for stock options, restricted stock units, or RSUs, and the Amended and Restated 2011 Employee Stock Purchase Plan, or the Amended ESPP, as follows (in thousands):

	March 31, 2024		March 31, 2023
Research and development	$	107	$	93
Selling, general and administrative		195		457
Discontinued operations		—		19
Total	$	302	$	569

The following table summarizes restricted stock unit activity under the Company’s equity incentive plans:

				Weighted
	Number of			Average
	Restricted			Grant Date
	Stock Units			Fair Value
Restricted stock units outstanding, January 1, 2024		86,232		$	7.57
Granted		131,724			1.03
Vested		(39,293	)		12.06
Forfeited		—			—
Restricted stock units outstanding, March 31, 2024		178,663		$	1.76

Upon vesting, certain of the Company’s RSUs may be settled on a net-exercise basis to cover any required withholding tax with the remaining amount converted into an equivalent number of shares of common stock. There were 15,090 shares of common stock underlying vested RSUs that were withheld during the quarter ended March 31, 2024, based on the value of the RSUs as determined by the Company’s closing stock price on the applicable vesting date.

The following table summarizes stock option activity under the Company’s equity incentive plans:

	Number of Stock Options Outstanding			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
								(in thousands)
January 1, 2024		893,321		$	33.41
Granted		790,348			1.03
Forfeited		—			—
Expired		(12,320	)		206.80
Exercised		—			—
March 31, 2024		1,671,349		$	16.82		7.9	$	—
Vested and exercisable options— March 31, 2024		563,257		$	42.63		4.9	$	—
Vested and expected to vest— March 31, 2024		1,671,349		$	16.82		7.9	$	—

The per-share weighted average grant date fair value of the options granted during the quarter ended March 31, 2024 was estimated at $0.84 per share on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	Three months ended March 31, 2024
Expected term (in years)		6.5
Risk-free interest rate		4.26	%
Expected volatility		98	%
Expected dividend rate		0	%

As of March 31, 2024, total stock-based compensation expense related to unvested options to be recognized in future periods was $1.4 million which is expected to be recognized over a weighted-average period of 2.9 years. As of March 31, 2024, there were 721,567 shares available for grant under the Company’s equity incentive plans and 99,157 shares available for grant under the Amended ESPP.

Note 6 - Commitments and Contingencies (Details Textual)	Jun. 08, 2021
Purported Shareholder v. Company - Violation of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 [Member]
Loss Contingency, Number of Defendants	2

Note 4 - Sale of Future Payments

3 Months Ended

Mar. 31, 2024

Sale of Future Payments [Text Block]

4. Sale of Future Payments

In January 2024, the Company and XOMA entered into the Purchase Agreement for the sale by the Company to XOMA, in exchange for $8.0 million, of the Company’s right, title and interest in and to certain amounts payable to the Company, or collectively, the Purchased Receivables, pursuant to the DSUVIA Agreement in respect of net sales of the Product, excluding sales of the Product by Aguettant.

The Purchased Receivables include:

(i) 100% of certain payments based on net sales of the Product and potential sales-based milestone payments of up to $116.5 million in respect of net sales of the Product, in each case made on and after January 1, 2024 and excluding sales of the Product by Aguettant, and of certain associated license and acquisition payments relating to the Product, until XOMA has received $20.0 million of payments in respect of the foregoing, or the XOMA Threshold, or the Stepdown Date; and

(ii) following the Stepdown Date, (A) 100% of payments based on net sales of the Product other than net sales to the United States Department of Defense, or DoD and (B) 50% of each of the following: (a) payments based on net sales of the Product to the DoD, (b) potential sales-based milestone payments in respect of net sales of the Product, and (c) certain associated license and acquisition payments relating to the Product.

The Company has retained its right, title and interest in and to, following the Stepdown Date, 50% of each of the following: (a) payments based on net sales of the Product to the DoD, (b) potential sales-based milestone payments in respect of net sales of the Product, and (c) of certain associated license and acquisition payments relating to the Product.

The Purchase Agreement contains customary representations, warranties and agreements by the Company and XOMA, indemnification obligations of the parties and other obligations of the parties.

The allocation of the consideration for the Purchase Agreement resulted in proceeds of $1.4 million reduced by $0.2 million of transaction costs being allocated to the sale of all future interest in payments related to commercial sales of DSUVIA representing its fair value. As a result of the Company’s loss of control, no further continuing involvement in, or rights to future payments related to commercial sales of DSUVIA, the Company recognized other income of $1.2 million in January 2024.

The Company evaluated the terms of the Purchase Agreement and concluded that the features of the Purchased Receivables are similar to those of a debt instrument. Accordingly, the Company recorded the allocated proceeds of approximately $6.6 million reduced by approximately $0.5 million of transaction costs, as a liability. The Company accounts for the value of the debt at amortized cost. The amounts received by the Company will be accreted to the total estimated amount of the payments necessary to extinguish the Company’s obligation under the Purchase Agreement, which will be recognized as interest expense. The carrying value of the debt will decrease for payments made to XOMA.

The Company periodically assesses the expected payments for services performed to support sales of DSUVIA to the DoD by Alora under the Marketing Agreement and milestone payments under the DSUVIA Agreement using a combination of historical results, internal projections, and forecasts from external sources. To the extent such payments are greater or less than the Company’s initial estimates or the timing of such payments is materially different than its original estimates, the Company will prospectively adjust the amortization of the liability and the effective interest rate. Due to the significant judgments and factors related to the estimates of future payments under the Purchase Agreement, there are significant uncertainties surrounding the amount and timing of future payments.

As the payments are remitted to XOMA, the liability will be effectively repaid over the life of the agreement. In order to determine the amortization of the liability related to the sale of future payments, the Company is required to estimate the total amount of future payments to XOMA over the life of the Purchase Agreement. At execution and as of the three months ended March 31, 2024, the estimated effective interest rate under the agreement was 13.3%.

The Company did not recognize any non-cash payment interest revenue and recognized non-cash interest expense of approximately $0.2 million during the three months ended March 31, 2024. The interest and amortization of issuance costs are reflected as non-cash interest expense for the sale of future payments in the condensed consolidated statements of operations.

The following table shows the activity within the liability account during the three months ended March 31, 2024 (in thousands):

	Three months ended March 31, 2024
Liability related to sale of future payments — beginning balance	$	—
Proceeds from sale of future payments, net of issuance costs		6,133
Payments to XOMA		—
Non-cash interest expense recognized		181
Liability related to sale of future payments as of March 31, 2024	$	6,314

Note 9 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-based compensation expense	$ 302	$ 569
Research and Development Expense [Member]
Stock-based compensation expense	107	93
Selling, General and Administrative Expenses [Member]
Stock-based compensation expense	195	457
Discontinued Operation [Member]
Stock-based compensation expense	$ 0	$ 19

Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) - USD ($)
$ in Thousands

1 Months Ended

3 Months Ended

Jan. 12, 2024

Jan. 31, 2024

Mar. 31, 2024

Mar. 31, 2023

Dec. 31, 2023

^[1]

$ 6,314

$ 0

Issuance Costs, Sale Of Future Payments

$ (521)

$ 0

XOMA [Member]

Proceeds From Sale of Receivables

$ 8,000

6,100

Issuance Costs, Sale Of Future Payments

500

Other Income

1,200

$ 1,200

Other Expenses

$ 200

[1]	The condensed consolidated balance sheet as of December 31, 2023 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, 2023.

Note 8 - Warrants (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	Common Stock from Warrants		Weighted-average Exercise Price (per share)
Outstanding at December 31, 2023		21,682,049	$	1.40
Granted		7,792,208	$	0.001
Outstanding at March 31, 2024		29,474,257	$	0.96
Exercisable at March 31, 2024		29,474,257	$	0.96

Note 5 - Long-term Debt (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Apr. 03, 2023	Mar. 31, 2024	Mar. 31, 2023	May 30, 2019
Amortization of Debt Discount (Premium)		$ 0	$ 38
Loan Agreement with Oxford Finance LLC [Member]
Debt Instrument, Face Amount				$ 25,000
Repayments of Debt	$ 3,400
Interest Expense, Debt			100
Amortization of Debt Discount (Premium)			$ 39,000,000

Note 6 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Text Block]

6. Commitments and Contingencies

Litigation

On June 8, 2021, a securities class action complaint was filed in the U.S. District Court for the Northern District of California against the Company and two of its officers. The plaintiff is a purported stockholder of the Company. The complaint alleged that defendants violated Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 by making false and misleading statements and omissions of material fact about the Company’s disclosure controls and procedures with respect to its marketing of DSUVIA. The complaint sought unspecified damages, interest, attorneys’ fees, and other costs. On December 16, 2021, the Court appointed co-lead plaintiffs. Plaintiffs’ amended complaint was filed on March 7, 2022. The amended complaint named the Company and three of its officers and continued to allege that defendants violated Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 by making false and misleading statements and omissions of material fact about the Company’s disclosure controls and procedures with respect to its marketing of DSUVIA. The amended complaint also asserted a violation of Section 20A of the Exchange Act against the individual defendants for alleged insider trading. The amended complaint sought unspecified damages, interest, attorneys’ fees, and other costs. On September 1, 2022, the Court held oral hearings on the Company’s motion to dismiss the amended complaint with prejudice that was filed on July 21, 2022. On September 28, 2022, the Court issued a formal written opinion, or the First Opinion, dismissing all of the plaintiff’s claims against the Company and the named defendants with leave for plaintiffs to amend their complaint. On November 28, 2022, the plaintiffs filed their second amended complaint. On July 7, 2023, the Court issued a formal written opinion, or the Second Opinion, dismissing all of the plaintiff’s claims against the Company and the named defendants with leave for plaintiffs to amend their complaint in part and without leave to amend in part. On September 5, 2023, the plaintiffs filed a third amended complaint. On May 7, 2024, the Court granted defendants’ motion to dismiss the third amended complaint, with prejudice, and entered judgment for defendants on plaintiffs’ claims.

On July 6, 2021, a purported shareholder derivative complaint was filed in the U.S. District Court for the Northern District of California. The complaint names ten of the Company’s officers and directors and asserts state and federal claims based on the same alleged misstatements as the securities class action complaint. On September 30, 2021, October 26, 2021, and November 17, 2021, three additional purported shareholder derivative complaints were filed in the U.S. District Court for the Northern District of California. The complaints name nine of the Company’s officers and directors and also assert state and federal claims based on the same alleged misstatements as the securities class action complaint. All four complaints seek unspecified damages, attorneys’ fees, and other costs. On December 6, 2021, the Court entered an order consolidating all four actions and staying the consolidated action pending the outcome of any motion to dismiss the securities class action.

On February 16, 2024, another purported shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, asserting the same claims as those in the previously filed derivative actions. The case has been stayed pending the outcome of any motion to dismiss the securities class action.

Please see “Part II., Item 1A. Risk Factors—Risks of a General Nature—Litigation may substantially increase our costs and harm our business.”

The Company believes that these lawsuits are without merit and intends to vigorously defend against them. Given the uncertainty of litigation, the preliminary stage of the cases, and the legal standards that must be met for, among other things, class certification and success on the merits, the Company cannot estimate the reasonably possible loss or range of loss that may result from these actions. It is reasonably possible that this estimate may change in the near term. An adverse outcome regarding these matters could materially adversely affect the Company’s financial condition, results of operations, and cash flows.

Note 10 - Net Loss Per Share of Common Stock (Details Textual) - $ / shares	Jan. 17, 2024	Jul. 31, 2023	Dec. 29, 2022
Prefunded 2024 Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.001
The 2023 Prefunded Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 0.001
The 2022 Prefunded Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 0.0001

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating Costs and Expenses [Abstract]
Research and development	$ 1,433	$ 1,047
Selling, general and administrative	2,804	4,281
Total operating costs and expenses	4,237	5,328
Nonoperating Income (Expense) [Abstract]
Interest expense	0	(119)
Interest income and other income, net	220	200
Gain on sale of future payments	1,246	0
Change in fair value of warrant liability	(1,002)	5,311
Non-cash interest expense on liability related to sale of future payments	(181)	0
Total other income (expense), net	283	5,392
Net (loss) income from continuing operations	(3,954)	64
Net loss from discontinued operations– See Note 3	0	(8,216)
Net loss	$ (3,954)	$ (8,152)
Basic and diluted, continuing operations (in dollars per share)	$ (0.16)	$ 0
Basic and diluted, discontinued operations (in dollars per share)	0	(0.75)
Basic and diluted loss per share (in dollars per share)	$ (0.16)	$ (0.75)
Shares used in computing net loss per share of common stock, basic and diluted – See Note 10 (in shares)	24,721,964	10,893,954
Product [Member]
Operating Costs and Expenses [Abstract]
Loss from operations	$ (4,237)	$ (5,328)

Note 10 - Net Loss Per Share of Common Stock (Tables)

3 Months Ended

Mar. 31, 2024

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

	Three Months Ended March 31,
	2024		2023
RSUs, stock options and ESPP to purchase common stock		1,850,012		989,011
Common stock warrants		20,265,576		5,192,035

Note 4 - Sale of Future Payments (Tables)

3 Months Ended

Mar. 31, 2024

Sale of Future Payments, Liabilities [Table Text Block]

	Three months ended March 31, 2024
Liability related to sale of future payments — beginning balance	$	—
Proceeds from sale of future payments, net of issuance costs		6,133
Payments to XOMA		—
Non-cash interest expense recognized		181
Liability related to sale of future payments as of March 31, 2024	$	6,314

Note 9 - Stock-based Compensation - Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Stock options outstanding (in shares) \| shares	893,321
Stock options outstanding (in dollars per share) \| $ / shares	$ 33.41
Granted (in shares) \| shares	790,348
Granted, weighted-average exercise price (in dollars per share) \| $ / shares	$ 1.03
Forfeited (in shares) \| shares	0
Forfeited, weighted-average exercise price (in dollars per share) \| $ / shares	$ 0
Expired (in shares) \| shares	(12,320)
Expired, weighted-average exercise price (in dollars per share) \| $ / shares	$ 206.8
Exercised (in shares) \| shares	0
Exercised (in dollars per share) \| $ / shares	$ 0
Stock options outstanding (in shares) \| shares	1,671,349
Stock options outstanding (in dollars per share) \| $ / shares	$ 16.82
Stock options outstanding (Year)	7 years 10 months 24 days
Stock options outstanding \| $	$ 0
Vested and exercisable options (in shares) \| shares	563,257
Vested and exercisable options, weighted-average exercise price (in dollars per share) \| $ / shares	$ 42.63
Vested and exercisable options, weighted-average remaining contractual life (Year)	4 years 10 months 24 days
Vested and exercisable options, aggregate intrinsic value \| $	$ 0
Vested and expected to vest (in shares) \| shares	1,671,349
Vested and expected to vest, weighted-average exercise price (in dollars per share) \| $ / shares	$ 16.82
Vested and expected to vest, weighted-average remaining contractual life (Year)	7 years 10 months 24 days
Vested and expected to vest, aggregate intrinsic value \| $	$ 0

Note 8 - Warrants (Details Textual) $ / shares in Units, $ in Thousands		3 Months Ended
	Jan. 17, 2024 USD ($) $ / shares shares	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 shares	Jul. 31, 2023 shares
Class of Warrant or Right, Outstanding (in shares)		29,474,257		21,682,049
Equity Issuance Costs, Modification of Warrants \| $		$ 251	$ 0
The January 2024 Private Placement [Member]
Shares Issued, Price Per Share (in dollars per share) \| $ / shares	$ 0.769
Prefunded 2024 Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) \| $ / shares	0.001
Prefunded 2024 Warrants [Member] \| Maximum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) \| $ / shares	1.11
Prefunded 2024 Warrants [Member] \| Minimum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) \| $ / shares	$ 0.77
Prefunded 2024 Warrants [Member] \| Common Class A [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)					3,676,473
Prefunded 2024 Warrants [Member] \| Common Class B [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)					3,676,473
Prefunded 2024 Warrants [Member] \| The January 2024 Private Placement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	7,792,208
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) \| $ / shares	$ 0.001
Modified January 2024 Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	5,882,356
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) \| $ / shares	$ 0.77
Equity Issuance Costs, Modification of Warrants \| $	$ 300
Warrants and Rights Outstanding, Measurement Input	0.769
Modified January 2024 Warrants [Member] \| Measurement Input, Expected Term [Member]
Warrants and Rights Outstanding, Measurement Input	4.5
Modified January 2024 Warrants [Member] \| Measurement Input, Price Volatility [Member]
Warrants and Rights Outstanding, Measurement Input	0.9691
Modified January 2024 Warrants [Member] \| Measurement Input, Risk Free Interest Rate [Member]
Warrants and Rights Outstanding, Measurement Input	0.0402
Modified January 2024 Warrants [Member] \| Measurement Input, Expected Dividend Rate [Member]
Warrants and Rights Outstanding, Measurement Input	0
Modified January 2024 Warrants [Member] \| Common Class A [Member]
Class of Warrant or Right, Outstanding (in shares)	2,941,178
Modified January 2024 Warrants [Member] \| Common Class B [Member]
Class of Warrant or Right, Outstanding (in shares)	2,941,178

Note 5 - Long-term Debt

3 Months Ended

Mar. 31, 2024

Long-Term Debt [Text Block]

5. Long-Term Debt

Loan Agreement with Oxford

On May 30, 2019, the Company entered into the Loan Agreement with Oxford Finance LLC, or Oxford, as the Lender. Under the Loan Agreement, the Lender made a term loan to the Company in an aggregate principal amount of $25.0 million, or the Loan, which was funded on May 30, 2019.

In connection with the closing of the divestment of DSUVIA to Alora, on April 3, 2023, the Company paid Oxford the remaining amount due of approximately $3.4 million including accrued interest and fees under the Loan, and the Loan Agreement was terminated with no further obligations by either party. Interest expense related to the Loan Agreement was $0.1 million, $39,000 of which represented amortization of the debt discount, for the three months ended March 31, 2023.

Note 3 - Discontinued Operations (Details Textual) - Discontinued Operations [Member] - DSUVIA [Member] $ in Millions	Mar. 12, 2023 USD ($)
Disposal Group, Including Discontinued Operation, Consideration	$ 1.1
Disposal Group, Including Discontinued Operation, Percentage of Royalty on Commercial Sales	15.00%
Disposal Group, Including Discontinued Operation, Maximum Amount in Sales-based Milestone	$ 116.5
Department of Defense [Member]
Disposal Group, Including Discontinued Operation, Percentage of Royalty on Commercial Sales	75.00%

Note 2 - Investments and Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2024

Cash, Cash Equivalents and Investments [Table Text Block]

	As of March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash, cash equivalents and restricted cash:
Cash	$	585	$	—	$	—	$	585
Money market funds		1,283		—		—		1,283
U.S. government agency securities		5,478		—		—		5,478
Commercial paper		4,776		—		—		4,776
Total cash and cash equivalents		12,122		—		—		12,122

Short-term investments:
U.S. government agency securities		4,779		—		—		4,779
Commercial paper		1,683		—		—		1,683
Total short-term investments		6,462		—		—		6,462
Total cash, cash equivalents, and short-term investments	$	18,584	$	—	$	—	$	18,584

	As of December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash and cash equivalents:
Cash	$	1,342	$	—	$	—	$	1,342
Money market funds		90		—		—		90
U.S. government agency securities		1,896		—		—		1,896
Commercial paper		2,393		—		—		2,393
Total cash and cash equivalents		5,721		—		—		5,721

Short-term investments:
U.S. government agency securities		3,362		—		—		3,362
Commercial paper		298		—		—		298
Total short-term investments		3,660		—		—		3,660
Total cash, cash equivalents, and short-term investments	$	9,381	$	—	$	—	$	9,381

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

	As of March 31, 2024
	Fair Value		Level I		Level II		Level III
Assets
Money market funds	$	1,283	$	1,283	$	—	$	—
U.S. government agency securities		10,257		—		10,257		—
Commercial paper		6,459		—		6,459		—
Total assets measured at fair value	$	17,999	$	1,283	$	16,716	$	—
Liabilities
Warrant liability	$	2,780	$	—	$	—	$	2,780
Total liabilities measured at fair value	$	2,780	$	—	$	—	$	2,780

	As of December 31, 2023
	Fair Value		Level I		Level II		Level III
Assets
Money market funds	$	90	$	90	$	—	$	—
U.S. government agency securities		5,258		—		5,258		—
Commercial paper		2,691		—		2,691		—
Total assets measured at fair value	$	8,039	$	90	$	7,949	$	—
Liabilities
Warrant liability	$	1,778	$	—	$	—	$	1,778
Total liabilities measured at fair value	$	1,778	$	—	$	—	$	1,778

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

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Fair value—beginning of period	$	1,778	$	7,098
Change in fair value of December 2022 Common Stock Warrants liability		1,002		(5,311	)
Fair value—end of period	$	2,780	$	1,787

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

Mar. 31, 2024

Dec. 31, 2023

^[1]

Assets, Current [Abstract]

Cash and cash equivalents

$ 12,122

$ 5,721

Short-term investments

6,462

3,660

Prepaid expenses and other current assets

1,369

2,195

Total current assets

19,953

11,576

In-process research and development asset

8,819

Total Assets

28,772

20,395

Current Liabilities:

Accounts payable

1,274

1,336

Accrued and other liabilities

1,340

2,445

Liabilities of discontinued operations, current portion

730

731

Total current liabilities

3,344

4,512

Warrant liability

2,780

1,778

6,314

Total Liabilities

12,438

6,290

Commitments and Contingencies

Common stock, $0.001 par value—200,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 16,992,726 and 16,952,219 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively

Additional paid-in capital

464,497

458,314

Accumulated deficit

(448,180)

(444,226)

Total Stockholders’ Equity

16,334

14,105

Total Liabilities and Stockholders’ Equity

$ 28,772

$ 20,395

[1]	The condensed consolidated balance sheet as of December 31, 2023 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, 2023.

Note 3 - Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2024

Disposal Groups, Including Discontinued Operations [Table Text Block]

	Three months ended
	March 31,
	2024		2023
Total revenues	$	—	$	501
Cost of goods sold		—		711
Selling, general and administrative expense		—		683
Impairment of net assets held for sale		—		7,007
Impairment of fixed assets		—		1,065
Gain on termination of lease liabilities		—		(1,098	)
Research and development expenses		—		349
Loss from operations		—		8,216
Net (income) loss from discontinued operations	$	—	$	8,216

	March 31, 2024			December 31, 2023
Accounts payable	$	10		$	10
Accrued liabilities		720			721
Total current liabilities of discontinued operations		730			731
Net assets (liabilities) of discontinued operations	$	(730	)	$	(731	)

	Three months ended
	March 31,
	2024		2023
Cash flows from operating activities:
Depreciation and amortization	$	—	$	215
Stock-based compensation		—		19
Impairment of net assets held for sale		—		7,007
Impairment of fixed assets		—		1,065
Gain on termination of lease liabilities		—		(1,098	)
Gain on extinguishment of debt		—		(400	)
Purchases of property and equipment		—		(100	)

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-SubTopic 10
-Topic 360
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482099/360-10-50-3

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 45
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483475/205-20-45-11

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3A
-Publisher FASB
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+ Details

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)
$ in Thousands

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Total

Balance (in shares) at Dec. 31, 2022

8,243,680

Balance at Dec. 31, 2022

$ 8

$ 447,635

$ (425,829)

$ 21,814

Stock-based compensation

$ 0

569

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes (in shares)

(21,700)

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes

$ 0

(22)

Issuance of common stock upon ESPP purchase (in shares)

26,016

Issuance of common stock upon ESPP purchase

$ 1

Net loss

$ 0

(8,152)

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes (in shares)

21,700

Exercise of prefunded warrants (in shares)

2,632,898

Exercise of prefunded warrants

$ 2

Balance (in shares) at Mar. 31, 2023

10,924,294

Balance at Mar. 31, 2023

$ 11

448,212

(433,981)

14,242

Balance (in shares) at Dec. 31, 2023

16,952,519

Balance at Dec. 31, 2023

$ 17

458,314

(444,226)

14,105

^[1]

Stock-based compensation

$ 0

302

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes (in shares)

23,952

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes

$ 0

(17)

Net proceeds from issuance of pre-funded warrants in connection with equity financing

5,884

Issuance of common stock upon ESPP purchase (in shares)

16,255

Issuance of common stock upon ESPP purchase

$ 0

Net loss

$ 0

(3,954)

Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes (in shares)

(23,952)

Balance (in shares) at Mar. 31, 2024

16,992,726

Balance at Mar. 31, 2024

$ 17

$ 464,497

$ (448,180)

$ 16,334

[1]	The condensed consolidated balance sheet as of December 31, 2023 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, 2023.

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2024	May 07, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-35068
Entity Registrant Name	TALPHERA, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-2193603
Entity Address, Address Line One	1850 Gateway Drive, Suite 175
Entity Address, City or Town	San Mateo
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94404
City Area Code	650
Local Phone Number	216-3500
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	TLPH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		16,992,977
Entity Central Index Key	0001427925
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

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, 2024	Dec. 31, 2023
Assets, fair value	$ 17,999	$ 8,039
Liabilities, fair value	2,780	1,778
Fair Value, Inputs, Level 1 [Member]
Assets, fair value	1,283	90
Liabilities, fair value	0	0
Fair Value, Inputs, Level 2 [Member]
Assets, fair value	16,716	7,949
Liabilities, fair value	0	0
Fair Value, Inputs, Level 3 [Member]
Assets, fair value	0	0
Liabilities, fair value	2,780	1,778
Money Market Funds [Member]
Assets, fair value	1,283	90
Money Market Funds [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, fair value	1,283	90
Money Market Funds [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, fair value	0	0
Money Market Funds [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, fair value	0	0
US Government Agencies Debt Securities [Member]
Assets, fair value	10,257	5,258
US Government Agencies Debt Securities [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, fair value	0	0
US Government Agencies Debt Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, fair value	10,257	5,258
US Government Agencies Debt Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, fair value	0	0
Commercial Paper [Member]
Assets, fair value	6,459	2,691
Commercial Paper [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, fair value	0	0
Commercial Paper [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, fair value	6,459	2,691
Commercial Paper [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, fair value	0	0
Warrant Liability [Member]
Liabilities, fair value	2,780	1,778
Warrant Liability [Member] \| Fair Value, Inputs, Level 1 [Member]
Liabilities, fair value	0	0
Warrant Liability [Member] \| Fair Value, Inputs, Level 2 [Member]
Liabilities, fair value	0	0
Warrant Liability [Member] \| Fair Value, Inputs, Level 3 [Member]
Liabilities, fair value	$ 2,780	$ 1,778

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	*Basis of Presentation* The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.
Reclassification, Comparability Adjustment [Policy Text Block]	*Reclassifications* Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform to the current year's presentation. In particular, other assets has been reclassified as prepaid expenses and other current assets in the condensed consolidated balance sheets, the portion of interest income and other income, net related to the revaluation of liability-classified warrants has been reclassified to change in fair value of warrants in the condensed consolidated statements of operations, and accounts receivable has been reclassified as prepaid expenses and other current assets and payment of employee tax obligations related to vesting of restricted stock units has been reclassified to net proceeds from issuance of common stock through equity plans in the condensed consolidated statement of cash flows.
Consolidation, Policy [Policy Text Block]	*Principles of Consolidation* The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	*Use of Estimates* The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management believes its most significant accounting estimates relate to fair value of warrants, impairment of long-lived assets, management’s assessment of going concern, revenue recognition, liability related to the sale of future payments and accrued clinical trial liabilities. 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 [Policy Text Block]	*Sale of Future Payments* On January 12, 2024, the Company entered into the Purchase Agreement with XOMA to monetize a portion of its future payments for commercial sales of DSUVIA and services performed by the Company to support sales of DSUVIA to the Department of Defense, or DoD, by Alora under the Marketing Agreement, and sales milestones under the DSUVIA Agreement. Refer to Note 4, “Sale of Future Payments” for further details on the Purchase Agreement. The Company recorded approximately $6.1 million, net of $0.5 million in issuance costs, of the $8.0 million proceeds as a liability, as this portion of the proceeds represents a sale of future revenues under ASC 470 for which the Company has continuing involvement in the generation of cash flows. The Company recorded approximately $1.2 million, net of $0.2 million in issuance costs, of the $8.0 million proceeds as other income, as this portion of proceeds represents the sale of all of the Company’s interest in future payments related to commercial sales of DSUVIA for which the Company is no longer entitled to receive such payments and has no further continuing involvement. The Company utilized internal estimates to develop a cash flow model based on business assumptions to determine the allocation of the proceeds. The liability related to the sale of future payments is recorded as debt and will be amortized under the effective interest rate method over the estimated life of the Purchase Agreement. The Company estimates the effective interest rate based on its estimate of total payments to be received by XOMA under the Purchase Agreement. The Company reassesses these estimates at each reporting date and adjusts the effective interest rate and amortization of the liability on a prospective basis, as necessary. The Company records the payments to XOMA as a reduction of the liability when paid. As such payments are made to XOMA, the balance of the liability will be effectively repaid over the life of the Purchase Agreement.
New Accounting Pronouncements, Policy [Policy Text Block]	*Recently Issued Accounting Pronouncements* In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, or ASU 2023-07, which requires all public entities, including public entities with a single reportable segment, to provide in interim and annual periods one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the standard requires disclosures of significant segment expenses and other segment items as well as incremental qualitative disclosures. The guidance in this update is effective for fiscal years beginning after December 15, 2023, and interim periods after December 15, 2024. The Company is evaluating the disclosure impact of ASU 2023-07; however, the adoption of ASU 2023-07 will not have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is evaluating the disclosure impact of ASU 2023-09; however, the adoption of ASU 2023-09 will not have a material impact on the Company’s consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the condensed consolidated financial statements.

Note 9 - Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	March 31, 2024		March 31, 2023
Research and development	$	107	$	93
Selling, general and administrative		195		457
Discontinued operations		—		19
Total	$	302	$	569

Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

				Weighted
	Number of			Average
	Restricted			Grant Date
	Stock Units			Fair Value
Restricted stock units outstanding, January 1, 2024		86,232		$	7.57
Granted		131,724			1.03
Vested		(39,293	)		12.06
Forfeited		—			—
Restricted stock units outstanding, March 31, 2024		178,663		$	1.76

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Stock Options Outstanding			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
								(in thousands)
January 1, 2024		893,321		$	33.41
Granted		790,348			1.03
Forfeited		—			—
Expired		(12,320	)		206.80
Exercised		—			—
March 31, 2024		1,671,349		$	16.82		7.9	$	—
Vested and exercisable options— March 31, 2024		563,257		$	42.63		4.9	$	—
Vested and expected to vest— March 31, 2024		1,671,349		$	16.82		7.9	$	—

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Three months ended March 31, 2024
Expected term (in years)		6.5
Risk-free interest rate		4.26	%
Expected volatility		98	%
Expected dividend rate		0	%

Note 4 - Sale of Future Payments - Schedule of Future Payment Liabilities (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2024

USD ($)

Balance

$ 0

^[1]

Proceeds from sale of future payments, net of issuance costs

6,133

Non-cash interest expense recognized

181

Balance

6,314

XOMA [Member]

Payments to XOMA

Non-cash interest expense recognized

$ 200

[1]	The condensed consolidated balance sheet as of December 31, 2023 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, 2023.

Note 2 - Investments and Fair Value Measurement - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Cash and cash equivalent, fair value		$ 5,721
Total cash and cash equivalents	$ 12,122	5,721	$ 13,353	$ 20,275
Total cash, cash equivalents, and short-term investments	18,584	9,381
Total cash, cash equivalents, and short-term investments	18,584	9,381
Marketable Securities [Member]
Short-term investment, amortized Cost	6,462	3,660
Short-term investment, fair value	6,462
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Commercial Paper [Member] \| Marketable Securities [Member]
Short-term investment, amortized Cost	1,683	298
Short-term investment, fair value	1,683	298
Gross Unrealized Gains		0
Gross Unrealized Losses		0
U.S. Government Agency Securities [Member] \| Marketable Securities [Member]
Short-term investment, amortized Cost	4,779	3,362
Short-term investment, fair value	4,779	3,362
Cash and Cash Equivalents [Member]
Total cash and cash equivalents	12,122
Cash and Cash Equivalents [Member] \| Cash [Member]
Cash, amortized cost	585	1,342
Cash and cash equivalent, fair value	585	1,342
Cash and Cash Equivalents [Member] \| Money Market Funds [Member]
Cash and cash equivalent, fair value	1,283	90
Money market funds, amortized cost	1,283	90
Cash and Cash Equivalents [Member] \| US Government Agencies Debt Securities [Member]
Cash and cash equivalent, fair value	5,478	1,896
U.S government agency securities, amortized cost	5,478	1,896
Cash and Cash Equivalents [Member] \| Commercial Paper [Member]
Cash and cash equivalent, fair value		2,393
Short-term investment, amortized Cost	4,776
Commercial paper		$ 2,393
Short-term investment, fair value	$ 4,776

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	Item 5. Other Information *2024 Annual Meeting of Stockholders* Our Board of Directors has established June 24, 2024 as the date of our 2024 Annual Meeting of Stockholders, or the 2024 Annual Meeting, as previously announced on the Current Report on Form 8-K filed with the SEC on April 19, 2024. The time and location of the 2024 Annual Meeting are as set forth in our definitive proxy statement for the 2024 Annual Meeting filed with the SEC on April 29, 2024. Stockholders who intended to present proposals for inclusion in the proxy materials for the 2024 Annual Meeting pursuant to Rule 14a-8 promulgated under the Exchange Act, must ensure that such proposals were received by us, in writing, at 1850 Gateway Drive, Suite 175, San Mateo, California 94404, and were directed to the attention of the Corporate Secretary, no later than April 23, 2024, which we determined to be a reasonable time before we expect to begin to deliver and make available our proxy materials, and must have furthermore complied with all applicable requirements of Rule 14a-8. Pursuant to our Amended and Restated Bylaws, to be considered timely, stockholders who intended to present proposals for director nominations or any other proposal at the 2024 Annual Meeting must have provided notice in writing to us at 1850 Gateway Drive, Suite 175, San Mateo, California 94404, and have directed such notice to the attention of the Corporate Secretary, no later than the close of business on April 29, 2024, the tenth calendar day following the date of Current Report on Form 8-K filed with the SEC on April 19, 2024, publicly announcing the date of the 2024 Annual Meeting.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Note 7 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Jan. 22, 2024	Jan. 17, 2024	Mar. 31, 2024	Dec. 31, 2023
Common Stock, Par or Stated Value Per Share (in dollars per share)			$ 0.001	$ 0.001
The January 2024 Private Placement [Member]
Proceeds from Issuance of Common Stock		$ 6
The January 2024 Private Placement [Member] \| Prefunded 2024 Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		7,792,208
The January 2024 Private Placement [Member] \| Pivotal Trail Milestone [Member]
Proceeds from Issuance of Common Stock		$ 10
The January 2024 Private Placement [Member] \| Pivotal Trail Milestone [Member] \| Prefunded 2024 Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		12,987,013
The January 2024 Private Placement [Member] \| Pivotal Share Price Milestone [Member]
Proceeds from Issuance of Common Stock		$ 2
Sale of Equity, Share Price Milestone (in dollars per share)		$ 0.92
The January 2024 Private Placement [Member] \| Pivotal Share Price Milestone [Member] \| Prefunded 2024 Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)		2,597,402
The January 2024 Private Placement [Member] \| Share-Based Payment Arrangement, Tranche One [Member]
Proceeds from Issuance of Common Stock	$ 6
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001
The January 2024 Private Placement [Member] \| Share-Based Payment Arrangement, Tranche One [Member] \| Prefunded 2024 Warrants [Member]
Stock Issued During Period, Shares, New Issues	7,792,208

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized (in shares)	200,000,000	200,000,000
Common Stock, Shares, Outstanding (in shares)	16,992,726	16,952,219
Common Stock, Shares, Issued (in shares)	16,992,726	16,952,219

Note 1 - Organization and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Basis of Presentation and Significant Accounting Policies [Text Block]

1. Organization and Summary of Significant Accounting Policies

The Company

Talphera, Inc., or the Company, or Talphera, was incorporated in Delaware on July 13, 2005 as SuRx, Inc. The Company subsequently changed its name to AcelRx Pharmaceuticals, Inc. and, on January 9, 2024 to Talphera, Inc. The Company’s operations are based in San Mateo, California.

Talphera is a specialty pharmaceutical company focused on the development and commercialization of innovative therapies for use in medically supervised settings. The Company’s product development portfolio features Niyad™ (a regional anticoagulant for the dialysis circuit), two ready-to-use pre-filled syringe, or PFS, product candidates (Fedsyra and phenylephrine), and LTX-608 (a nafamostat formulation for direct IV infusion) that the Company intends to develop for one or more of the following indications: disseminated intravascular coagulation, or DIC, acute respiratory distress syndrome, or ARDS, acute pancreatitis, or as an anti-viral treatment.

On January 12, 2024, the Company and XOMA (US) LLC, or XOMA, entered into a Payment Interest Purchase Agreement, or the Purchase Agreement, for the sale by the Company to XOMA, in exchange for $8.0 million, of the Company’s right, title and interest in and to certain amounts payable to the Company, or collectively the Purchased Receivables, pursuant to the DSUVIA Agreement (as defined below) in respect of net sales of the Product (as defined below), excluding sales of DZUVEO by Laboratoire Aguettant, or Aguettant. See Note 4, “Sale of Future Payments” below for additional information.

On March 12, 2023, the Company entered into an Asset Purchase Agreement, or the DSUVIA Agreement, with Vertical Pharmaceuticals, LLC, a wholly owned subsidiary of Alora Pharmaceuticals, LLC, or Alora, pursuant to which Alora agreed to acquire certain assets and assume certain liabilities of the Company relating to its sufentanil sublingual tablet product referred to as DSUVIA or DZUVEO, or any other single-dose pharmaceutical product for use in medically supervised settings containing a sublingual tablet that includes sufentanil as the sole active ingredient, as a 30 mcg tablet or other dosage form or strength as reasonably necessary for lifecycle management, or the Product. The closing of the DSUVIA Agreement occurred on April 3, 2023 (see Note 3, “Discontinued Operations” below).

On January 7, 2022, the Company acquired Lowell Therapeutics, Inc., or Lowell, a privately held company (see Note 4, “Asset Acquisition” to the consolidated financial statements in the Company’s 2023 Annual Report on Form 10-K for additional information) and, as a result acquired the Niyad™developmental product, a regional anticoagulant for the dialysis circuit during continuous renal replacement therapy for acute kidney injury patients in the hospital, that the Company plans to study under an investigational device exemption, or IDE, and which has received Breakthrough Device Designation status from the FDA. While not approved for commercial use in the United States, the active drug component of Niyad, nafamostat, has been approved in Japan and South Korea as a regional anticoagulant for the dialysis circuit, disseminated intravascular coagulation, and acute pancreatitis. Niyad is a lyophilized formulation of nafamostat, a broad-spectrum, synthetic serine protease inhibitor, with anticoagulant, anti-inflammatory, and potential anti-viral activities. The second intended indication for Niyad is as a regional anticoagulant for the dialysis circuit for chronic kidney disease patients undergoing intermittent hemodialysis in dialysis centers. In addition, the Company acquired LTX-608, a nafamostat formulation for direct IV infusion, that it intends to develop for the treatment of one or more of the following indications: ARDS, DIC, acute pancreatitis or as an anti-viral agent.

On July 14, 2021, the Company entered into a License and Commercialization Agreement, or the PFS Agreement, with Aguettant, pursuant to which the Company obtained the exclusive right to develop and, subject to FDA approval, commercialize in the United States an ephedrine pre-filled syringe for injection, and (ii) a phenylephrine PFS for injection. Aguettant will supply the Company with the products for use in commercialization, if they are approved in the U.S. See Note 5, “In-License Agreement” to the consolidated financial statements in the Company’s 2023 Annual Report on Form 10-K for additional information.

Liquidity and Going Concern

The condensed consolidated financial statements for the three months ended March 31, 2024 were prepared on the basis of a going concern, which contemplates that the Company will be able to realize assets and discharge liabilities in the normal course of business. The Company has incurred recurring operating losses and negative cash flows from operating activities since inception and expects to continue to incur operating losses and negative cash flows in the future. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Considering the Company’s current cash resources and its current and expected levels of operating expenses for the next twelve months, management expects to need additional capital to fund its planned operations prior to the 12-month anniversary of the date this Quarterly Report on Form 10-Q is filed with the United States Securities and Exchange Commission, or the SEC.

Management may seek to raise such additional capital through public or private equity offerings, including under the Controlled Equity Offering^SM Sales Agreement, or the ATM Agreement, with Cantor Fitzgerald & Co., or Cantor, debt securities, a new debt facility, monetizing or securitizing certain assets, entering into product development, license or distribution agreements with third parties, or divesting any of the Company’s remaining product candidates. While management believes its plans to raise additional funds will alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, these plans are not entirely within the Company’s control and cannot be assessed as being probable of occurring.

Additional funds may not be available when the Company needs them on terms that are acceptable to the Company, or at all. If adequate funds are not available, the Company may be required to further reduce its workforce or delay the development of its regulatory filing plans for its product candidates in advance of the date on which the Company’s cash resources are exhausted to ensure that the Company has sufficient capital to meet its obligations and continue on a path designed to preserve stockholder value. In addition, if additional funds are raised through collaborations, strategic alliances or licensing arrangements with third parties, the Company may have to relinquish rights to its technologies, future revenue streams or product candidates, or to grant licenses on terms that may not be favorable to the Company.

Basis of Presentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.

Reclassifications

Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform to the current year's presentation. In particular, other assets has been reclassified as prepaid expenses and other current assets in the condensed consolidated balance sheets, the portion of interest income and other income, net related to the revaluation of liability-classified warrants has been reclassified to change in fair value of warrants in the condensed consolidated statements of operations, and accounts receivable has been reclassified as prepaid expenses and other current assets and payment of employee tax obligations related to vesting of restricted stock units has been reclassified to net proceeds from issuance of common stock through equity plans in the condensed consolidated statement of cash flows.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management believes its most significant accounting estimates relate to fair value of warrants, impairment of long-lived assets, management’s assessment of going concern, revenue recognition, liability related to the sale of future payments and accrued clinical trial liabilities. 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.

Significant Accounting Policies

The Company’s significant accounting policies are detailed in its Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes to the Company’s significant accounting policies during the three months ended March 31, 2024, from those previously disclosed in its 2023 Annual Report on Form 10-K, except as follows:

Sale of Future Payments

On January 12, 2024, the Company entered into the Purchase Agreement with XOMA to monetize a portion of its future payments for commercial sales of DSUVIA and services performed by the Company to support sales of DSUVIA to the Department of Defense, or DoD, by Alora under the Marketing Agreement, and sales milestones under the DSUVIA Agreement. Refer to Note 4, “Sale of Future Payments” for further details on the Purchase Agreement.

The Company recorded approximately $6.1 million, net of $0.5 million in issuance costs, of the $8.0 million proceeds as a liability, as this portion of the proceeds represents a sale of future revenues under ASC 470 for which the Company has continuing involvement in the generation of cash flows. The Company recorded approximately $1.2 million, net of $0.2 million in issuance costs, of the $8.0 million proceeds as other income, as this portion of proceeds represents the sale of all of the Company’s interest in future payments related to commercial sales of DSUVIA for which the Company is no longer entitled to receive such payments and has no further continuing involvement. The Company utilized internal estimates to develop a cash flow model based on business assumptions to determine the allocation of the proceeds.

The liability related to the sale of future payments is recorded as debt and will be amortized under the effective interest rate method over the estimated life of the Purchase Agreement. The Company estimates the effective interest rate based on its estimate of total payments to be received by XOMA under the Purchase Agreement. The Company reassesses these estimates at each reporting date and adjusts the effective interest rate and amortization of the liability on a prospective basis, as necessary. The Company records the payments to XOMA as a reduction of the liability when paid. As such payments are made to XOMA, the balance of the liability will be effectively repaid over the life of the Purchase Agreement.

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, or ASU 2023-07, which requires all public entities, including public entities with a single reportable segment, to provide in interim and annual periods one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the standard requires disclosures of significant segment expenses and other segment items as well as incremental qualitative disclosures. The guidance in this update is effective for fiscal years beginning after December 15, 2023, and interim periods after December 15, 2024. The Company is evaluating the disclosure impact of ASU 2023-07; however, the adoption of ASU 2023-07 will not have a material impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is evaluating the disclosure impact of ASU 2023-09; however, the adoption of ASU 2023-09 will not have a material impact on the Company’s consolidated financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the condensed consolidated financial statements.

Note 10 - Net Loss Per Share of Common Stock

3 Months Ended

Mar. 31, 2024