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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Jul. 31, 2019
Document And Entity Information
Entity Registrant Name	Eton Pharmaceuticals, Inc.
Entity Central Index Key	0001710340
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,763,045
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 14,947	$ 26,735
Prepaid expenses & other current assets	1,808	767
Total current assets	16,755	27,502
Property and equipment, net	1,223	773
Operating lease right-of-use assets, net	222
Other long-term assets, net	44	52
Total assets	18,244	28,327
Current liabilities:
Accounts payable	883	1,421
Accrued liabilities	576	603
Total current liabilities	1,459	2,024
Operating lease liabilities, net of current portion	86
Total liabilities	1,545	2,024
Commitments and contingencies (Note 13)
Stockholders' equity
Common stock, $0.001 par value; 50,000,000 shares authorized as of June 30, 2019 and December 31, 2018; 17,763,045 and 17,607,928 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively	18	18
Additional paid-in capital	73,208	72,153
Accumulated deficit	(56,527)	(45,868)
Total stockholders' equity	16,699	26,303
Total liabilities and stockholders' equity	$ 18,244	$ 28,327

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	17,763,045	17,607,928
Common stock, shares outstanding	17,763,045	17,607,928

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenue			$ 500
Operating expenses:
Research and development	1,439	1,707	7,904	2,981
General and administrative	1,910	990	3,499	2,680
Total operating expenses	3,349	2,697	11,403	5,661
Loss from operations	(3,349)	(2,697)	(10,903)	(5,661)
Other income (expense):
Interest and other income, net	100	28	244	57
Change in fair value of warrant liability		(413)		(496)
Loss before income tax expense	(3,249)	(3,082)	(10,659)	(6,100)
Income tax expense
Net loss	(3,249)	(3,082)	(10,659)	(6,100)
Accrued dividends on redeemable convertible preferred stock		(304)		(600)
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs		(418)		(828)
Net loss attributable to common stockholders	$ (3,249)	$ (3,804)	$ (10,659)	$ (7,528)
Net loss per share attributable to common stockholders, basic and diluted	$ (0.18)	$ (0.79)	$ (0.61)	$ (1.80)
Weighted average number of common shares outstanding, basic and diluted	17,733,000	4,786,000	17,618,000	4,172,000

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Redeemable Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017		$ 6	$ 1,759	$ (8,639)	$ (6,874)
Balance, shares at Dec. 31, 2017		6,000,000
Temporary equity balance at Dec. 31, 2017	$ 19,004
Temporary equity balance, shares at Dec. 31, 2017	6,685,082
Stock-based compensation			1,466		1,466
Stock-based compensation, shares		218,980
Accrued dividends on redeemable convertible preferred stock	$ 600			(600)	(600)
Accrued dividends on redeemable convertible preferred stock, shares
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs	$ 828			(828)	(828)
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs, shares
Net loss				(6,100)	(6,100)
Balance at Jun. 30, 2018		$ 6	3,225	(16,167)	(12,936)
Balance, shares at Jun. 30, 2018		6,218,980
Temporary equity balance at Jun. 30, 2018	$ 20,432
Temporary equity balance, shares at Jun. 30, 2018	6,685,082
Balance at Mar. 31, 2018		$ 6	2,809	(12,363)	(9,548)
Balance, shares at Mar. 31, 2018		6,218,980
Temporary equity balance at Mar. 31, 2018	$ 19,710
Temporary equity balance, shares at Mar. 31, 2018	6,685,082
Stock-based compensation			416		416
Stock-based compensation, shares
Accrued dividends on redeemable convertible preferred stock	$ 304			(304)	(304)
Accrued dividends on redeemable convertible preferred stock, shares
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs	$ 418			(418)	(418)
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs, shares
Net loss				(3,082)	(3,082)
Balance at Jun. 30, 2018		$ 6	3,225	(16,167)	(12,936)
Balance, shares at Jun. 30, 2018		6,218,980
Temporary equity balance at Jun. 30, 2018	$ 20,432
Temporary equity balance, shares at Jun. 30, 2018	6,685,082
Balance at Dec. 31, 2018		$ 18	72,153	(45,868)	26,303
Balance, shares at Dec. 31, 2018		17,607,928
Temporary equity balance at Dec. 31, 2018
Temporary equity balance, shares at Dec. 31, 2018
Stock-based compensation			850		850
Stock-based compensation, shares
Stock option exercises			77		77
Stock option exercises, shares		90,000
Employee stock purchase plan			128		128
Employee stock purchase plan, shares		23,083
Stock warrant exercises
Stock warrant exercises, shares		42,034
Accrued dividends on redeemable convertible preferred stock
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs
Net loss				(10,659)	(10,659)
Balance at Jun. 30, 2019		$ 18	73,208	(56,527)	16,699
Balance, shares at Jun. 30, 2019		17,763,045
Temporary equity balance at Jun. 30, 2019
Temporary equity balance, shares at Jun. 30, 2019
Balance at Mar. 31, 2019		$ 18	72,502	(53,278)	19,242
Balance, shares at Mar. 31, 2019		17,627,928
Temporary equity balance at Mar. 31, 2019
Temporary equity balance, shares at Mar. 31, 2019
Stock-based compensation			505		505
Stock-based compensation, shares
Stock option exercises			73		73
Stock option exercises, shares		70,000
Employee stock purchase plan			128		128
Employee stock purchase plan, shares		23,083
Stock warrant exercises
Stock warrant exercises, shares		42,034
Accrued dividends on redeemable convertible preferred stock
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs
Net loss				(3,249)	(3,249)
Balance at Jun. 30, 2019		$ 18	$ 73,208	$ (56,527)	$ 16,699
Balance, shares at Jun. 30, 2019		17,763,045
Temporary equity balance at Jun. 30, 2019
Temporary equity balance, shares at Jun. 30, 2019

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net loss	$ (10,659)	$ (6,100)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	850	1,466
Depreciation and amortization	178	23
Change in fair value of warrant liability		496
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(1,052)	(304)
Accounts payable	(69)	329
Accrued liabilities	(211)	12
Net cash used in operating activities	(10,963)	(4,078)
Cash used in investing activities
Purchases of property and equipment	(1,030)	(132)
Cash flows from financing activities
Proceeds from employee stock purchase plan and stock option exercises	205
Net cash provided by financing activities	205
Change in cash and cash equivalents	(11,788)	(4,210)
Cash and cash equivalents at beginning of period	26,735	13,156
Cash and cash equivalents at end of period	14,947	8,946
Supplemental disclosures of cash flow information
Cash paid for interest
Cash paid for income taxes
Supplemental disclosures of non-cash investing and financing activities:
Accrued dividends on redeemable convertible preferred stock		600
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs		$ 828

Company Overview

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Company Overview

Note 1 — Company Overview

Eton Pharmaceuticals, Inc. (“Eton” or the “Company”) was incorporated as a Delaware corporation on April 27, 2017 and was initially set up as a wholly owned subsidiary of Harrow Health, Inc. or “Harrow” (fka Imprimis Pharmaceuticals, Inc.)

Eton raised $20,055 in start-up capital through the sale of its Series A redeemable convertible preferred stock (“Series A Preferred”) in June 2017, and a separate management team was then established for Eton with its corporate offices located in Deer Park, Illinois. Eton is a specialty pharmaceutical company focused on developing and commercializing prescription drug products utilizing the U.S. Food and Drug Administration’s (the “FDA”) 505(b)(2) regulatory pathway. The Company’s business model is to develop proprietary innovative product candidates that offer commercial and/or functional advantages to currently available alternatives.

In November 2018, the Company completed an initial public offering (the “IPO”), selling 4,140,000 shares of its common stock at an offering price of $6.00 per share, including the underwriter’s exercise in full of its option to purchase additional shares. The Company received net proceeds of $21,960, after deducting underwriting discounts and commissions and offering-related expenses.

Liquidity Considerations

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity Considerations

Note 2 — Liquidity Considerations

As of June 30, 2019, the Company had an accumulated deficit of $56,527 and for the six months ended June 30, 2019, the Company had net cash used in operating activities of $10,963.

To date, the Company has generated limited revenues and does not anticipate generating significant revenues unless and until it successfully completes development and obtains regulatory approval for one or more of its product candidates. The Company has incurred negative cash flows from operating activities since its inception in 2017. The Company currently believes its existing cash and cash equivalents of $14,947 will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next twelve months from the date of issuance of these financial statements. This estimate is based on the Company’s current assumptions, including assumptions relating to its ability to manage its spending. The Company could use its available capital resources sooner than currently expected. Accordingly, the Company could seek to obtain additional capital through equity financings, the sale of debt or other arrangements. However, there can be no assurance that the Company will be able to raise additional capital if needed or under acceptable terms, if at all. The sale of additional equity may dilute existing stockholders and newly issued shares may contain senior rights and preferences compared to currently outstanding common shares. Issued debt securities may contain covenants and limit the Company’s ability to pay dividends or make other distributions to stockholders. If the Company is delayed in completing its product development and obtaining regulatory approval for its product candidates and is unable to obtain such additional financing, operations would need to be scaled back or discontinued.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3 — Summary of Significant Accounting Policies

Basis of Presentation

The Company has prepared the accompanying financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Unaudited Interim Financial Information

The accompanying interim condensed financial statements are unaudited and have been prepared on the same basis as the audited financial statements and, in the opinion of management, reflect all adjustments necessary for the fair presentation of the Company’s financial position as of June 30, 2019 and the results of its operations and its cash flows for the periods ended June 30, 2019 and 2018. The financial data and other information disclosed in these notes related to the three and six-month periods ended June 30, 2019 and 2018 are also unaudited. The results for the six-month period ended June 30, 2019 are not necessarily indicative of results to be expected for the year ending December 31, 2019, any other interim periods or any future year or period.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, the accrual of research and development expenses and the valuation of common stock, stock options, warrants and derivative instruments. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions.

Segment Information

The Company operates the business on the basis of a single reportable segment, which is the business of developing and commercializing prescription drug products. The Company’s chief operating decision-maker is the Chief Executive Officer (“CEO”), who evaluates the Company as a single operating segment.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. All cash and cash equivalents are held in U.S. financial institutions. Cash equivalents consist of an interest-bearing checking account. From time to time, amounts deposited exceed federally insured limits. The Company believes the associated credit risk to be minimal.

Property and Equipment

Property and equipment are stated at cost. Depreciation of property and equipment is computed utilizing the straight-line method based on the following estimated useful lives. Computer software and hardware is depreciated over three years. Equipment, furniture and fixtures is depreciated over five years. Leasehold improvements are amortized over their estimated useful lives or the remaining lease term, whichever is shorter. Construction in progress is capitalized but not depreciated until it is placed into service.

Maintenance and repairs are charged to expense as incurred, while renewals and improvements are capitalized.

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the Company’s statements of operations for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment has been recognized since the Company’s inception in 2017.

Classification and Accretion of Redeemable Convertible Preferred Stock

Prior to the Company’s IPO in November 2018, the Company had classified the Series A Preferred outside of stockholders’ equity (deficit) because the shares contained certain redemption features that were not solely within the control of the Company. The carrying value of the Series A Preferred was accreted to its redemption value from the date of issuance through November 15, 2018, the date of the IPO. In conjunction with the IPO, the Series A Preferred, including accrued and unpaid dividends, automatically converted to shares of the Company’s common stock (see Note 6).

Revenue Recognition for Contracts with Customers

The Company intends to generate its future revenues from direct sales of its products in development which typically require advance review and approval by the FDA. Additionally, the Company anticipates it will receive revenues from product licensing agreements where it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party.

The Company accounts for contracts with its customers in accordance with Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers. ASC 606 applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses whether these options provide a material right to the customer and, if so, they are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes.

The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. Any amounts received prior to revenue recognition will recorded as deferred revenue. Amounts expected to be recognized as revenue within the twelve months following the balance sheet date will be classified as current portion of deferred revenue in the Company’s balance sheets. Amounts not expected to be recognized as revenue within the twelve months following the balance sheet date are classified as long-term deferred revenue, net of current portion.

Milestone Payments – If a commercial contract arrangement includes development and regulatory milestone payments, the Company will evaluate whether the milestone conditions have been achieved and if it is probable that a significant revenue reversal would not occur before recognizing the associated revenue. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are generally not considered probable of being achieved until those approvals are received.

Royalties – For arrangements that include sales-based royalties, including milestone payments based on a level of sales, which are the result of a customer-vendor relationship and for which the license is deemed to be the predominant item to which the royalties relate, the Company will recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied or partially satisfied. To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements.

Significant Financing Component – In determining the transaction price, the Company will adjust consideration for the effects of the time value of money if the expected period between payment by the licensees and the transfer of the promised goods or services to the licensees will be more than one year.

Research and Development Expenses

Research and development (“R&D”) expenses include both internal R&D activities and external contracted services. Internal R&D activity expenses include salaries, benefits and stock-based compensation and other costs to support the Company’s R&D operations. External contracted services include product development efforts including certain product licensor milestone payments, clinical trial activities, manufacturing and control-related activities and regulatory costs. R&D expenses are charged to operations as incurred. The Company reviews and accrues R&D expenses based on services performed and relies upon estimates of those costs applicable to the stage of completion of each project. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates.

Upfront payments and milestone payments made for the licensing of technology are expensed as R&D in the period in which they are incurred. Nonrefundable advance payments for goods or services to be received in the future for use in R&D activities are recorded as prepaid expenses and are expensed as the related goods are delivered or the services are performed.

Earnings (Loss) Per Share

Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common and common equivalent shares, such as Series A Preferred, unvested restricted stock, stock options and warrants, outstanding during the period. Common stock equivalents are excluded from the computation where their inclusion would be anti-dilutive. No such adjustments were made for the three-month or six-month periods ended June 30, 2019 or 2018 as the Company reported a net loss for these periods and including the effects of common stock equivalents in the diluted EPS calculation would have been antidilutive (see Note 10).

Stock-Based Compensation

The Company accounts for stock-based compensation under the provisions of ASC 718 Compensation — Stock Compensation. The guidance under ASC 718 requires companies to estimate the fair value of the stock-based compensation awards on the date of grant and record expense over the related service periods, which are generally the vesting period of the equity awards. The Company estimates the fair value of stock-based option awards using the Black-Scholes-Merton option-pricing model (“BSM”). The BSM requires the input of subjective assumptions, including the expected stock price volatility, the calculation of expected term, forfeitures and the fair value of the underlying common stock on the date of grant, among other inputs. The risk-free interest rate was determined from the implied yields for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options or warrants. Dividends on common stock are assumed to be zero for the BSM valuation of the stock options. The expected term of stock options granted is based on vesting periods and the contractual life of the options. Expected volatilities are based on comparable companies’ historical volatility along with a limited weighting included for the Company’s own volatility subsequent to its IPO, which management believes represents the most accurate basis for estimating expected future volatility under the current conditions. The Company accounts for forfeitures as they occur.

Prior to the IPO, the fair value of the shares of the Company’s common stock underlying its stock-based awards was determined by its board of directors, with input from management. Because there had been no public market for the Company’s common stock prior to the IPO, the board of directors had determined the fair value of the common stock on the grant-date of the stock-based award by considering a number of objective and subjective factors, including enterprise valuations of its common stock performed by an unrelated third-party specialist, valuations of comparable companies, sales of its convertible preferred stock to unrelated third parties, operating and financial performance, the lack of liquidity of the capital stock, and general and industry-specific economic outlook. Since the IPO in November 2018, the Company has used the closing stock price on the date of grant for the fair value of the common stock.

Fair Value Measurements

We measure certain of our assets and liabilities at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value accounting requires characterization of the inputs used to measure fair value into a three-level fair value hierarchy as follows:

Level 1 — Inputs based on quoted prices in active markets for identical assets or liabilities. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 — Observable inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent from the entity.

Level 3 — Unobservable inputs that reflect the entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available.

Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below takes into account the market for the Company’s financials, assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

The carrying amounts of cash and cash equivalents, accounts payable and accrued liabilities approximate their fair values due to the short-term maturities of these instruments.

The fair values of the Company’s warrant liability at inception and for subsequent mark-to-market fair value measurements were based on management’s valuation model and expectations with respect to the method and timing of settlement. The Company had determined that the warrant liability fair values were classified as Level 3 measurements within the fair value hierarchy. At the date of the Company’s IPO in November 2018, the fair value was reclassified to additional paid-in-capital as the final number of shares for the warrants previously reflected as a liability became fixed.

Impact of New Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02 (Topic 842) – Leases (“ASC 842”), which requires the lease rights and obligations arising from lease contracts, including existing and new arrangements for substantially all leases with terms more than twelve months to be recognized as assets and liabilities on the balance sheet. Recognition, measurement and presentation of expenses depends upon classification as a finance or operating lease. The Company adopted ASC 842 effective January 1, 2019 utilizing the modified retrospective approach such that prior year financial statements were not recast under the new standard. The adoption of ASU 2016-02 did not have a material effect on the Company’s financial condition from the recognition of the lease rights and obligations as assets and liabilities or its results of operations and cash flows. See Note 12 for additional information regarding the new standard and its impact on the Company’s financial statements.

Revenues

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenues

Note 4 — Revenues

Prior to 2019, the Company did not have any revenues. The Company’s revenues of $500 for the six months ended June 30, 2019 resulted from the sale of its EM-100 product rights to Bausch Health Ireland Limited (“Bausch”) per an Asset Purchase Agreement dated February 18, 2019 (the “Asset Purchase Agreement”). Pursuant to the Asset Purchase Agreement, Bausch paid the Company an upfront payment of $500 and Bausch is required to pay the Company commercial milestone payments of up to $2,500 upon the first commercial sale of the EM-100 product. In addition, Bausch is required to pay the Company a royalty on net sales for a period of 10 years from the date of the first commercial sale of the EM-100 product in the United States.

Property and Equipment

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 5 – Property and Equipment

Property and equipment consist of the following:

	June 30, 2019			December 31, 2018
Computer hardware and software	$	170		$	93
Furniture and fixtures		115			98
Equipment		964			99
Leasehold improvements		147			53
Construction in progress		—			492
		1,396			835
Less: accumulated depreciation		(173	)		(62	)
Property and equipment, net	$	1,223		$	773

Depreciation expense for the six-month periods ended June 30, 2019 and 2018 was $111 and $18, respectively.

Redeemable Convertible Preferred Stock - Series A

6 Months Ended

Jun. 30, 2019

Temporary Equity Disclosure [Abstract]

Redeemable Convertible Preferred Stock - Series A

Note 6 — Redeemable Convertible Preferred Stock — Series A

The Company has 10,000,000 authorized shares of $0.001 par value preferred stock as per its Amended and Restated Certificate of Incorporation. In June 2017, the Company issued 6,685,082 shares of Series A Preferred at a price of $3.00 per share, and all shares remained outstanding until the Company’s IPO in November 2018. The gross proceeds were $20,055 from the Series A Preferred stock offering. The Series A Preferred shares, including accrued and unpaid dividends, automatically converted to the Company’s common shares at the date of the IPO.

As a result of the Series A Preferred having a possible cash redemption feature in the event that an IPO or alternate financing was not completed by December 31, 2018, the Series A Preferred was classified as temporary equity and not included as part of Company’s stockholders’ equity (deficit) prior to the November 2018 IPO. In accordance with that classification, $2,534 of issuance costs associated with the Series A Preferred offering were being ratably accreted as a deemed dividend using the effective interest method through the expected redemption date.

The Series A Preferred automatically converted to common stock upon completion of the IPO in November 2018. The conversion share calculation was based on the $3.00 initial issue price for the Series A Preferred plus accrued and unpaid dividends, and automatically converted into shares of the Company’s common stock using a stated divisor conversion price equal to 50% of the IPO price to the public which was $6.00 per share. In accordance with relevant accounting literature, since the terms of the conversion option did not permit the Company to compute the additional number of shares that it would need to issue upon conversion of the Series A Preferred when the contingent event occurred, the Company recorded the beneficial conversion amount of $21,747 as a deemed dividend at the date of the IPO in November 2018.

Common Stock

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Common Stock

Note 7 — Common Stock

The Company has 50,000,000 authorized shares of $0.001 par value common stock as per its Amended and Restated Certificate of Incorporation. During the six months ended June 30, 2019, the Company issued 90,000 shares of its common stock for stock option exercises, 23,083 shares for awards under its Employee Stock Purchase Plan (see Note 9) and 42,034 shares for the exercise of stock warrants.

Common Stock Warrants

6 Months Ended

Jun. 30, 2019

Warrants and Rights Note Disclosure [Abstract]

Common Stock Warrants

Note 8 — Common Stock Warrants

In May 2017, the Company issued a warrant to purchase 600,000 shares of its common stock to consultants for business strategy and intellectual property advisory services. The warrant vested at issuance in May 2017 and has a $0.01 exercise price per warrant share and expires five years from the date of issuance.

In conjunction with the closing of the Series A Preferred offering in June 2017 (see Note 6), the Company issued a warrant to purchase 649,409 shares of its common stock to the placement agent at an exercise price of $3.00 per share, provided, however, upon the conversion of the Series A Preferred to common stock, the warrant adjusted to entitle the holder to purchase shares of common stock equal to 10.0% of the shares of common stock issuable upon conversion of the Series A Preferred (excluding 191,000 shares of Series A Preferred that were purchased by insiders) and the exercise price would adjust to the conversion price of the Series A Preferred. This warrant vested at issuance in June 2017. The Company used the BSM to value the warrant and the fair value at the date of issuance was $479. The fair value assumptions included an expected term of five years, expected volatility of 85%, a risk-free interest rate of 2.9% and estimate of the conversion rate.

These warrants were classified as warrant liability on the Company’s balance sheets prior to the IPO in November 2018 as the number of shares of common stock issuable upon the exercise of this warrant was not fixed as it could vary by a factor of 1.000 to 1.333 shares of common stock per warrant share in accordance with the IPO price, and the Company had considered the warrant to be a derivative instrument. The $479 amount was recorded as a component of the issuance costs for the Series A Preferred in June 2017, and subsequent changes in the fair value of this warrant were recorded as a component of other income and expense. As of June 30, 2018, the fair value of the warrant was $1,016 and the $496 increase in fair value during the six months ended June 30, 2018 was recorded as a component of other income and expense. For the three months ended June 30, 2018, the $413 increase in fair value for the warrants was recorded as a component of other income and expense.

In connection with the IPO, the number of shares issuable upon the exercise of these warrants became fixed at 704,184 shares which eliminated the fair value adjustment after that date. At the IPO date, the warrant liability was reclassified to additional paid-in-capital. In June 2019, 67,734 of these warrant shares were exercised on a cashless basis which resulted in the Company issuing 42,034 shares of its common stock.

During November 2018, in connection with the IPO, the Company issued warrants for 414,000 shares of its common stock to the placement agent at an exercise price of $7.50 per share.

The outstanding warrants are summarized in the table below.

Description of Warrants	No. of Shares		Exercise Price
Business Advisory Warrants		600,000	$	0.01
Placement Agent Warrants - Series A Preferred		636,450	$	3.00
Placement Agent Warrants - IPO		414,000	$	7.50
Total		1,650,450	$	3.04 (Avg)

The holders of these warrants or their permitted transferees, are entitled to rights with respect to the registration under the Securities Act of 1933, as amended (the “Securities Act”) their shares that are converted to common stock, including demand registration rights and piggyback registration rights. These rights are provided under the terms of a registration rights agreement between the Company and the investors.

Share-Based Payment Awards

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Payment Awards

Note 9 — Share-Based Payment Awards

The Company’s board of directors and stockholders approved the Eton Pharmaceuticals, Inc. 2017 Equity Incentive Plan in May 2017 (the “2017 Plan”), which authorized the issuance of up to 5,000,000 shares of the Company’s common stock. In conjunction with the Company’s IPO in November 2018, the Company’s stockholders and board of directors approved the 2018 Equity Incentive Plan (the “2018 Plan”) which succeeded the 2017 Plan. The Company has granted restricted stock awards (“RSAs”), stock options and restricted stock units (“RSUs”) for its common stock under the 2017 Plan and 2018 Plan as detailed in the tables below. There were 872,837 shares available for future issuance under the 2018 Plan as of June 30, 2019.

Shares that are expired, terminated, surrendered or canceled without having been fully exercised will be available for future awards under the 2018 Plan. In addition, the 2018 Plan provides that commencing January 1, 2019 and through January 1, 2028, the share reserve will be increased by 4% of the total number of shares outstanding as of the preceding December 31, subject to a reduction at the discretion of the Company’s board of directors. On January 1, 2019, the share reserve was increased by 704,317 shares based on the 17,607,928 shares of common stock outstanding at December 31, 2018. The exercise price for stock options granted is not less than the fair value of common stock as determined by the board of directors as of the date of grant. Prior to the IPO, the Company’s board of directors valued the Company’s common stock, taking into consideration its most recently available valuation of common stock performed by third parties as well as additional factors which might have changed since the date of the most recent contemporaneous valuation through the date of grant. Following the IPO, the Company uses the closing stock price on the date of grant as the exercise price.

On January 1, 2018, the Company issued 54,745 restricted shares of its common stock to each of its four outside directors (218,980 total shares). The restricted shares issued to the outside directors vested 25% at each quarter-end in 2018 and were 100% vested at December 31, 2018.

During the third quarter of 2017, the Company issued 25,000 RSU’s to each of its four outside directors (100,000 total share units). The RSU’s issued to the outside directors vested 25% at each subsequent quarter-end in 2017 and 2018 and were 100% vested at June 30, 2018. The associated 100,000 shares of the Company’s common stock will not be issued until the individual director retires from service from the Company’s board of directors. The Company has not issued any additional RSU’s.

To date, all stock options issued have been non-qualified stock options, and the exercise prices were set at the fair value for the shares at the dates of grant. Options typically have a ten-year life, except for options to purchase 50,000 shares of the Company’s common stock granted to product consultants that expire within five years if the Company is not able to file certain product submissions to the FDA prior to the five-year expiration date. Furthermore, these option awards to the Company’s product consultants do not vest unless certain product submissions are made to the FDA, and accordingly, the Company has not recorded any expense for these contingently vesting option awards to its product consultants.

For the three months ended June 30, 2019 and 2018, the Company’s total stock-based compensation expense was $505 and $416, respectively. Of these amounts, $421 and $400 was recorded in general and administrative expenses, respectively, and $84 and $16 was recorded in research and development expenses, respectively.

For the six months ended June 30, 2019 and 2018, the Company’s total stock-based compensation expense was $850 and $1,466, respectively. Of these amounts, $690 and $1,434 was recorded in general and administrative expenses, respectively, and $160 and $32 was recorded in research and development expenses, respectively.

A summary of stock option activity is as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Options outstanding as of December 31, 2018		1,295,000		$	1.78		8.3	$	5,627
Issued		717,500			7.44
Exercised		(90,000	)		0.86
Forfeited/Cancelled		—			—
Options outstanding as of June 30, 2019		1,922,500		$	3.94		8.6	$	7,646
Options exercisable at June 30, 2019		505,417		$	1.82		7.5	$	3,075
Options vested and expected to vest at June 30, 2019		1,872,500		$	4.00		8.7	$	7,320

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had strike prices lower than the fair value of the Company’s common stock.

The assumptions used to calculate the fair value of options granted during the six months ended June 30, 2019 under the BSM were as follows:

	June 30, 2019
Expected dividends		—	%
Expected volatility		90	%
Risk-free interest rate		1.9-2.5	%
Expected term		5.6 – 6.3 years
Weighted average fair value	$	5.54

Expected Term — The Company has opted to use the “simplified method” for estimating the expected term of options granted to employees and directors, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option (generally 10 years). The expected term of options granted to non-employees equals the contractual life of the options.

Expected Volatility — Due to the Company’s limited operating history and a lack of Company-specific historical and implied volatility data, the Company had based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. During 2019, the Company has continued this methodology plus given some limited weighting to its own volatility in the periods subsequent to its November 2018 IPO. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the stock-based awards.

Risk-Free Interest Rate — The risk-free rate assumption is based on the U.S. Treasury instruments with maturities similar to the expected term of the Company’s stock options.

Expected Dividend — The Company has not issued any dividends in its history and does not expect to issue dividends over the life of the options and therefore has estimated the dividend yield to be zero.

Fair Value of Common Stock — Prior to the Company’s IPO in November 2018, the fair value of the shares of common stock underlying the stock-based awards was determined by the board of directors, with input from management. Because there was no public market for the Company’s common stock, the board of directors determined the fair value of the common stock on the grant-date of the stock-based award by considering a number of objective and subjective factors, including enterprise valuations of the Company’s common stock performed by an unrelated third-party specialist, valuations of comparable companies, sales of the Company’s Series A Preferred to unrelated third parties, operating and financial performance, the lack of liquidity of the Company’s capital stock, and general and industry-specific economic outlook. The board of directors intended all options granted to be exercisable at a price per share not less than the estimated per share fair value of common stock underlying those options on the date of grant. Following the IPO, the Company uses the closing stock price on the date of grant for the fair value of the common stock.

A summary of activity for the RSAs is as follows:

Restricted Stock Awards	Number of shares
Unvested as of December 31, 2018		312,500
Issued		—
Vested		(312,500	)
Forfeited/Cancelled		—
Unvested as of June 30, 2019		—

There were no RSAs issued during the six months ended June 30, 2019. The fair value of the RSAs vested during the six months ended June 30, 2019 was $66.

As of June 30, 2019, there was a total of $4,536, $0 and $0 of unrecognized compensation costs related to non-vested stock option awards, RSAs and RSUs, respectively. In the six-month period ended June 30, 2019, there were four stock option exercises for a total of 90,000 shares at an average exercise price of $0.86 per share with an intrinsic value of $599. There were no exercises of stock options during the six months ended June 30, 2018.

In December 2018, the Company’s board of directors adopted an initial offering of the Company’s common stock under the Company’s 2018 Employee Stock Purchase Plan (the “ESPP”). The Company’s ESPP provides for an initial reserve of 150,000 shares and this reserve is automatically increased on January 1 of each year by the lesser of 1% of the outstanding common shares at December 31 of the preceding year or 150,000 shares, subject to reduction at the discretion of the Company’s board of directors.

The initial offering of the ESPP began on December 17, 2018 and will end on December 10, 2019, unless terminated earlier pursuant to the ESPP. The initial offering consists of two purchase periods, with the first purchase period ending on June 10, 2019 and the second purchase period ending on December 10, 2019. The terms of the ESPP permit employees of the Company to use payroll deductions to purchase stock at a price per share that is at least the lesser of (1) 85% of the fair market value of a share of common stock on the first date of an offering or (2) 85% of the fair market value of a share of common stock on the date of purchase. After the initial offering ends, subsequent twelve-month offering periods will automatically commence over the term of the ESPP on the day that immediately follows the conclusion of the preceding offering, each consisting of two purchase periods approximately six months in duration ending on or around June 10 and December 10 each year.

The weighted average grant date fair value of share awards under the ESPP in the first six months of 2019 was $2.57 per share. Employees contributed $141 via payroll deductions during the six months ended June 30, 2019 and the Company recorded an expense of $75 in the six-month period ended June 30, 2019 related to the ESPP offering period that commenced on December 17, 2018. In June 2019, 23,083 shares of the Company’s common stock were issued under the ESPP at $5.53 per share (85% of the Company’s $6.50 per share closing price of its common stock on December 17, 2018). The Company collected $128 in proceeds from the issuance of these shares. As of June 30, 2019, the accompanying condensed balance sheet includes $21 in accrued liabilities for remaining employee contributions.

Basic and Diluted Net Loss Per Common Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Basic and Diluted Net Loss Per Common Share

Note 10 — Basic and Diluted Net Loss per Common Share

Basic and diluted net loss per share is computed using the weighted average number of shares of common stock outstanding during the period. Common stock equivalents (using the treasury stock and “if converted” method) from stock options, unvested RSAs and RSUs, warrants and convertible preferred stock at June 30, 2019 and 2018 were 3,460,950 and 9,164,685, respectively, and are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. The decline in common stock equivalents was primarily due to the automatic conversion of the Company’s Series A Preferred at the IPO in November 2018. Included in the basic and diluted net loss per share calculation are RSUs awarded to directors that have vested, but the issuance and delivery of the common shares are deferred until the director retires from service as a director.

The following table shows the computation of basic and diluted net loss per common share:

	Three months ended June 30, 2019 (unaudited)			Three months ended June 30, 2018 (unaudited)
Net loss	$	(3,249	)	$	(3,082	)
Series A Preferred – dividends (accrued and deemed)		—			(722	)
Net loss attributable to common stockholders	$	(3,249	)	$	(3,804	)
Weighted average common shares outstanding basic and diluted)		17,733,324			4,785,841
Net loss per common share (basic and diluted)	$	(0.18	)	$	(0.79	)

	Six months ended June 30, 2019 (unaudited)			Six months ended June 30, 2018 (unaudited)
Net loss	$	(10,659	)	$	(6,100	)
Series A Preferred – dividends (accrued and deemed)		—			(1,428	)
Net loss attributable to common stockholders	$	(10,659	)	$	(7,528	)
Weighted average common shares outstanding basic and diluted)		17,618,293			4,171,775
Net loss per common share (basic and diluted)	$	(0.61	)	$	(1.80	)

Related Party Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions

Note 11 — Related Party Transactions

Harrow

Harrow was issued 3,500,000 shares of the Company’s common stock at the formation of the Company at the $0.001 par value per share price as the paid-in-capital contribution from Harrow. The Company and Harrow signed licensing agreements for two products developed by Harrow whereby Harrow assigned the product rights to the Company. The Company would pay Harrow a $50 milestone payment upon patent approval for each product and a royalty fee at a rate of six percent on the net sales of those two products. On December 26, 2017, one of the products had its patent approved and a $50 milestone fee was recognized as R&D expense by the Company in 2017 and paid to Harrow in January 2018. In July 2018, the Company determined the patent-approved product was not viable for its portfolio of product opportunities and Harrow paid the Company $50 to cancel the licensing agreement for the one product and retain the product rights at Harrow.

On May 6, 2019, the Company entered into an Asset Purchase Agreement (the “CT-100 Asset Purchase Agreement”) with Harrow. Pursuant to the CT-100 Asset Purchase Agreement, the Company sold all of its right, title and interest in CT-100 to Harrow, including any such product that incorporates or utilizes its intellectual property rights (a “Product” or, collectively, “Products”). Pursuant to the CT-100 Asset Purchase Agreement, Harrow will make certain payments to the Company upon the achievement of certain development and commercial milestones. In addition, Harrow is required to pay the Company a royalty in the low-single digit percentage range worldwide on a country-by-country basis on net sales for a period of the longer of 15 years from the date of the first commercial sale of a product in a particular country or the time that a valid intellectual property claim on such Product remains in force in the applicable country. The CT-100 Asset Purchase Agreement also contains customary representations, warranties, covenants and indemnities by the parties.

As part of the early start-up for the Company’s pharmaceutical business, key executives at Harrow received 1,500,000 shares of restricted common stock in the Company for consulting services and certain Harrow managers also received options to purchase 130,000 shares of common stock from the Company (20,000 of these options were forfeited in 2018). The restricted stock and stock options vested 100% after one year on April 30, 2018. The Company recorded stock-based compensation expense of $0 and $970 for the Harrow restricted common stock and $0 and $80 for Harrow stock options, respectively, for the periods ended June 30, 2019 and 2018 as a component of its general and administrative expenses.

Additionally, the Chief Executive Officer of Harrow is a member of the Company’s board of directors.

Chief Executive Officer

The Company’s CEO has a partial interest in several companies that the Company is working with for product development and potential marketing if the products are approved by the FDA as detailed below.

The Company acquired the exclusive rights to sell the EM-100 product in the United States pursuant to a sales and marketing agreement (the “Eyemax Agreement”) dated August 11, 2017 between the Company and Eyemax LLC (“Eyemax”), an entity affiliated with the Company’s CEO. The Company also held a right of first refusal to obtain the exclusive license rights for geographic areas outside of the United States. Pursuant to the Eyemax Agreement, the Company is responsible for all costs of testing and FDA approval of the product, other than the FDA filing fee which will be paid by Eyemax. The Company was also responsible for commercializing the product in the United States at its expense. The Company paid Eyemax $250 upon execution of the Eyemax Agreement, which was recorded as a component of R&D expense. Under the terms of the original agreement, the Company would pay Eyemax $250 upon FDA approval and $500 upon the first commercial sale of the product and pay Eyemax a royalty of 10% on the net sales of all products. The Eyemax Agreement was for an initial term of 10 years from the date of the Eyemax Agreement, subject to successive two-year renewals unless the Company elected to terminate the Eyemax Agreement. There were no amounts due under the terms of the Eyemax Agreement as of June 30, 2019 or December 31, 2018.

On February 18, 2019, The Company entered into an Amended and Restated Agreement with Eyemax amending the Sales Agreement (the “Amended Agreement”). Pursuant to the Amended Agreement, Eyemax sold the Company all of its right, title and interest in EM-100, including any such product that incorporates or utilizes Eyemax’s intellectual property rights. Under the Amended Agreement, the Company assumed certain liabilities of Eyemax under its Exclusive Development & Supply Agreement with Excelvision SAS dated as of July 11, 2013, as amended (the “Excelvision Agreement”), with respect to certain territories and arising during certain time periods. Pursuant to the Amended Agreement, the Company remains obligated to pay Eyemax two milestones: (i) one milestone payment for $250 upon regulatory approval in the territory by the FDA of the first single agent product and (ii) one milestone payment for $500 following the first commercial sale of the first single agent product in the territory. Following payment of the milestones, the Company is entitled to retain all of the non-royalty transaction revenues and royalties up to $2,000 (the “Recovery Amount”). After the Company has retained the full Recovery Amount, it is entitled to retain half of all royalty and non-royalty transaction revenue. The Amended Agreement also contains customary representations, warranties, covenants and indemnities by the parties. The EM-100 asset and its associated product rights were sold to Bausch on February 18, 2019 and future potential royalties on Bausch sales of EM-100, pending an FDA approval for EM-100, will be split between Eyemax and the Company. There were no amounts due under the terms of the Amended Agreement as of June 30, 2019 or December 31, 2018.

The Company acquired the exclusive rights to sell the DS-100 product in the United States pursuant to an exclusive development and supply agreement (the “Andersen Agreement”) dated July 9, 2017 between the Company and Andersen Pharma, LLC (“Andersen”), an entity affiliated with the Company’s CEO. The Company also holds an option to purchase the DS-100 product and all related intellectual property and government approvals at a price of one dollar. Pursuant to the Andersen Agreement, Andersen is responsible for obtaining FDA approval at its expense and manufacturing the product for sale to the Company at its cost. The Company is responsible for commercializing the product in the United States at its expense. The Company paid Andersen $750 upon execution of the Andersen Agreement, which was recorded as a component of R&D expense and will pay Andersen $750 upon successful completion of three registration batches of product, $750 upon submission of a New Drug Application (“NDA”) and $750 upon FDA approval. The Company will also pay Andersen 50% of the net profit from the sale of the product. The Andersen Agreement is for an initial term of five years from the first commercial sale of the product, subject to successive two-year renewals unless either party elects to terminate the Andersen Agreement. There were no amounts due under the terms of the Andersen Agreement as of June 30, 2019 or December 31, 2018. The aforementioned option to purchase the product and all related intellectual property and government approvals was considered to represent variable interest in the affiliated entity. The affiliated entity was not considered to be a variable interest entity.

The Company acquired the DS-200 product and all related intellectual property and government approvals pursuant to an asset purchase agreement (the “Selenix Agreement”) dated June 23, 2017 between the Company and Selenix LLC (“Selenix”), an entity affiliated with the Company’s CEO. Pursuant to the Selenix Agreement, the Company paid Selenix $1,500 at signing, which was recorded as a component of R&D expense and paid $1,500 in April 2019 upon submission of an NDA on March 13, 2019 which was reflected as a component of R&D expense for the six-month period ended June 30, 2019. The Company will pay $1,000 upon FDA approval of the DS-200 product. The Company has also agreed to pay Selenix 50% of the net profit from the sale of the product for the first 10 years following the date of the Selenix Agreement. There were no amounts due under the terms of the Selenix Agreement as of June 30, 2019 or December 31, 2018.

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Note 12 — Leases

Effective January 1, 2019, the Company adopted ASC 842, which requires an entity to recognize a right-of-use (“ROU”) asset and a lease liability on the balance sheet for substantially all leases, including operating leases, using the modified retrospective approach. The Company elected to use the package of practicable expedients which allows companies to not reassess the following: (1) the lease classification for any expired or existing leases, (2) the treatment of initial direct costs as they related to existing leases, and (3) whether expired or existing contracts are or contain leases. The Company did not elect the use of the hindsight practical expedient, but did elect to separate lease components from non-lease components related to its office space lease.

Upon adoption of ASC 842, the Company had non-cancellable operating leases for its office and laboratory space subject to recognition as ROU assets. Accordingly, on January 1, 2019 the Company recorded $281 in ROU assets and $272 in operating lease liabilities (the difference of $9 related to existing prepaid rent as of December 31, 2018). The Company has not entered into any other lease arrangements through June 30, 2019.

The Company does not have any lease contracts that contain: (1) an option to extend that the Company is reasonably certain to exercise, (2) an option to terminate that the Company is reasonably certain not to exercise, or (3) an option to extend (or not to terminate) in which exercise of the option is controlled by the lessor. Additionally, the Company does not have any leases with residual value guarantees or material restrictive covenants. For leases already commenced, the lease term was determined to be the remaining months in the lease term as of January 1, 2019, the date of adoption. Lease liabilities and their corresponding right-of-use assets have been recorded based on the present value of the future lease payments over the expected lease term. One of the Company’s lease agreements contains provisions for escalating rent payments over the term of the lease.

The Company’s leases do not contain readily determinable implicit discount rates, and therefore, the Company was required to use its incremental borrowing rate of 7.8% to discount the future lease payments based on information available at lease commencement. The incremental borrowing rate was estimated by determining the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The Company’s operating lease cost as presented in the “Research and Development” and “General and Administrative” captions in the condensed statements of operations was $14 and $20, respectively, for the three months ended June 30, 2019 and $28 and $43, respectively, for six months ended June 30, 2019. Cash paid for amounts included in the measurement of operating lease liabilities was $59 for the six months ended June 30, 2019. The ROU asset amortization for the three month and six month periods ended June 30, 2019 was $30 and $59, respectively, and is reflected within depreciation and amortization on the Company’s condensed statements of cash flows. As of June 30, 2019, the weighted-average remaining lease term was 1.7 years, and the weighted-average incremental borrowing rate was 7.8%.

The table below presents the lease-related assets and liabilities recorded on the balance sheet as of June 30, 2019 (in thousands).

Assets	Classification
Operating lease right-of-use assets	Operating lease right-of-use assets, net	$	222
Total leased assets		$	222
Liabilities
Operating lease liabilities, current	Accrued liabilities	$	127
Operating lease liabilities, noncurrent	Operating lease liabilities, net of current portion		86
Total operating lease liabilities		$	213

The Company’s lease commitments for its administrative offices in Deer Park, Illinois and its laboratory facility in Lake Zurich, Illinois for 2019 and beyond are as indicated below:

	Total			2019		2020		2021		Thereafter
Undiscounted lease payments	$	228			69		140		19		—
Less: Imputed interest		(15	)
Total lease liabilities	$	213

Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13 — Commitments and Contingencies

Legal

The Company is subject to legal proceedings and claims that may arise in the ordinary course of business. The Company is not aware of any pending or threatened litigation matters at this time that may have a material impact on the operations of the Company.

License and product development agreements

The Company has entered into various agreements in addition to those discussed above which are described below.

The Company acquired the exclusive rights to sell the DS-300 product in the United States pursuant to a sales and marketing agreement dated November 17, 2017 with an unaffiliated third party (the “Sales Agreement”). Pursuant to the Sales Agreement, the licensor is responsible for obtaining FDA approval, at its expense, and the Company is responsible for commercializing the product in the United States at its expense. The Company will pay the third party 50% of the net profit from the sale of the product. The initial term is for the first 10 years following the first commercial sale of the product.

The Company acquired the exclusive license to develop, manufacture and sell ET-103 in the United States pursuant to an Exclusive License and Supply Agreement dated August 3, 2018 between the Company and Liqmeds Worldwide Limited, an unaffiliated entity. Pursuant to the agreement, the Company will be responsible for, and shall own, all regulatory filings and approvals at its expense, provided that it shall have the right to recoup 35% of any regulatory filing fees from the initial profits from the sale of ET-103 and, provided further, the licensor shall be responsible for any bioequivalence study and shall be responsible for 60% of the costs of such study. An affiliate of the licensor shall manufacture the ET-103 and sell it to the Company at its cost. The Company paid the licensor $350 upon execution of the agreement and will pay the licensor $1,500 upon the FDA’s acceptance of an NDA for review, $1,000 upon FDA approval, $1,500 upon issuance of patent covering ET-103 listed in the FDA’s Orange Book and $500 in the event of product sales in excess of $10,000 in any calendar year. In addition, the Company is required to pay the licensor 35% of the net profit from product sales. The license agreement is for an initial term of 10 years from the date of the first commercial sale of the product, subject to two-year renewals unless either party elects to terminate no less than 12 months prior to the then current term. The agreement also contains customary representations, warranties, covenants and indemnities by the parties.

On January 23, 2019 the Company entered into a Licensing and Supply Agreement (the “Agreement”) with Liqmeds Worldwide Limited (“LMW”) for ET-104 oral liquid, a development stage product candidate (“ET-104”). Pursuant to the terms of the Agreement, the Company will be responsible for regulatory and marketing activities. LMW will be responsible for development and manufacturing of ET-104. The Company paid the licensor $350 upon execution of the Agreement and will pay the licensor $350 upon successful bioequivalence study results, $325 upon the FDA’s acceptance of an NDA for review, $325 upon FDA approval of the NDA, $650 upon issuance of patent covering ET-104 listed in the FDA’s Orange Book and $500 in the event that product sales in excess of $10,000 are achieved within a calendar year. In addition, the Company is required to pay the licensor 35% of the net profit from product sales. The Agreement is for an initial term of 10 years from the date of the first commercial sale of the product. The Company will retain sole ownership of the NDA after expiration of the Agreement

On February 8, 2019, The Company entered into an Exclusive Licensing and Supply Agreement (the “ET-202 License Agreement”) with Sintetica SA (“Sintetica”) for marketing rights in the United States to ET-202, an injectable product candidate for use in the hospital setting that has been submitted to the FDA for review. Pursuant to the terms of the ET-202 License Agreement, the Company will be responsible for marketing activities and Sintetica will be responsible for development, manufacturing, and regulatory activities related to obtaining regulatory approval. The Company paid Sintetica a licensing payment of $2,000 upon execution of the ET-202 License Agreement and will pay $750 upon FDA approval of the product candidate. Upon approval, Sintetica will supply ET-202 to the Company at its direct costs. The Company will retain 5% of net sales as a marketing fee. Sintetica will be entitled to receive the first $500 of product profits. All additional profit will be split 50% to the Company and 50% to Sintetica. The ET-202 License Agreement has a ten-year term from first commercial sale of product.

On February 8, 2019, The Company also entered into an Exclusive Licensing and Supply Agreement (the “ET-203 License Agreement”) with Sintetica for marketing rights in the United States to ET-203, an injectable product candidate for use in the hospital setting. Pursuant to the terms of the ET-203 License Agreement, the Company will be responsible for marketing activities and Sintetica will be responsible for development, manufacturing, and regulatory activities related to obtaining regulatory approval. The Company paid Sintetica a licensing payment of $1,000 upon execution of the ET-203 License Agreement and will pay $750 upon FDA approval of the product candidate. Upon approval, Sintetica will supply ET-202 to the Company at its direct costs. The Company will retain 5% of net sales as a marketing fee. Sintetica will be entitled to receive the first $500 of product profits. All additional profit will be split 50% to the Company and 50% to Sintetica. The ET-203 License Agreement has a ten-year term from first commercial sale of product.

On June 12, 2019, The Company entered into an Exclusive Licensing and Supply Agreement (the “ET-105 License Agreement”) with Aucta Pharmaceuticals, Inc. (“Aucta”) for marketing rights in the United States to ET-105, a product candidate for use as an adjunct therapy for partial seizures, primary generalized tonic-clonic seizures, and generalized seizures of Lennox-Gastaut syndrome in patients two years of age and older. Lamotrigine is currently only approved in tablet formulations. Pursuant to the terms of the ET-105 License Agreement, the Company will be responsible for marketing activities and Aucta will be responsible for development, manufacturing, and regulatory activities related to obtaining regulatory approval. The Company paid Aucta a licensing payment of $2,000 in August 2019 upon receiving an acceptance for review letter from the FDA and will pay $2,000 upon FDA approval of the product candidate and another $1,000 upon issuance of an Orange-book listed patent. Aucta will receive a low double-digit royalty on net sales and will be entitled to receive milestone payments of up to $18,000 based on commercial success of the product, including:

	●	$1,000 when net sales exceed $10 million in a calendar year
	●	$2,000 when net sales exceed $20 million in a calendar year
	●	$5,000 when net sales exceed $50 million in a calendar year
	●	$10,000 when net sales exceed $100 million in a calendar year

Indemnifications

As permitted under Delaware law and in accordance with the Company’s Amended and Restated Bylaws, the Company is required to indemnify its officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its directors and officers. The Company believes the fair value of the indemnification rights and agreements is minimal. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of June 30, 2019 or December 31, 2018.

Subsequent Events

6 Months Ended

Jun. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 14 — Subsequent Events

The Company has performed an evaluation of events occurring subsequent to June 30, 2019 through the filing date of this Quarterly Report. Based on its evaluation, nothing additional is required to be disclosed.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company has prepared the accompanying financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying interim condensed financial statements are unaudited and have been prepared on the same basis as the audited financial statements and, in the opinion of management, reflect all adjustments necessary for the fair presentation of the Company’s financial position as of June 30, 2019 and the results of its operations and its cash flows for the periods ended June 30, 2019 and 2018. The financial data and other information disclosed in these notes related to the three and six-month periods ended June 30, 2019 and 2018 are also unaudited. The results for the six-month period ended June 30, 2019 are not necessarily indicative of results to be expected for the year ending December 31, 2019, any other interim periods or any future year or period.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, the accrual of research and development expenses and the valuation of common stock, stock options, warrants and derivative instruments. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions.
Segment Information	Segment Information The Company operates the business on the basis of a single reportable segment, which is the business of developing and commercializing prescription drug products. The Company’s chief operating decision-maker is the Chief Executive Officer (“CEO”), who evaluates the Company as a single operating segment.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. All cash and cash equivalents are held in U.S. financial institutions. Cash equivalents consist of an interest-bearing checking account. From time to time, amounts deposited exceed federally insured limits. The Company believes the associated credit risk to be minimal.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is computed utilizing the straight-line method based on the following estimated useful lives. Computer software and hardware is depreciated over three years. Equipment, furniture and fixtures is depreciated over five years. Leasehold improvements are amortized over their estimated useful lives or the remaining lease term, whichever is shorter. Construction in progress is capitalized but not depreciated until it is placed into service. Maintenance and repairs are charged to expense as incurred, while renewals and improvements are capitalized.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the Company’s statements of operations for the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment has been recognized since the Company’s inception in 2017.
Classification and Accretion of Redeemable Convertible Preferred Stock	Classification and Accretion of Redeemable Convertible Preferred Stock Prior to the Company’s IPO in November 2018, the Company had classified the Series A Preferred outside of stockholders’ equity (deficit) because the shares contained certain redemption features that were not solely within the control of the Company. The carrying value of the Series A Preferred was accreted to its redemption value from the date of issuance through November 15, 2018, the date of the IPO. In conjunction with the IPO, the Series A Preferred, including accrued and unpaid dividends, automatically converted to shares of the Company’s common stock (see Note 6).
Revenue Recognition for Contracts with Customers	Revenue Recognition for Contracts with Customers The Company intends to generate its future revenues from direct sales of its products in development which typically require advance review and approval by the FDA. Additionally, the Company anticipates it will receive revenues from product licensing agreements where it has contracted for milestone payments and royalties from products it has developed or for which it has acquired the rights to a product developed by a third party. The Company accounts for contracts with its customers in accordance with Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers. ASC 606 applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses whether these options provide a material right to the customer and, if so, they are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. Any amounts received prior to revenue recognition will recorded as deferred revenue. Amounts expected to be recognized as revenue within the twelve months following the balance sheet date will be classified as current portion of deferred revenue in the Company’s balance sheets. Amounts not expected to be recognized as revenue within the twelve months following the balance sheet date are classified as long-term deferred revenue, net of current portion. Milestone Payments – If a commercial contract arrangement includes development and regulatory milestone payments, the Company will evaluate whether the milestone conditions have been achieved and if it is probable that a significant revenue reversal would not occur before recognizing the associated revenue. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are generally not considered probable of being achieved until those approvals are received. Royalties – For arrangements that include sales-based royalties, including milestone payments based on a level of sales, which are the result of a customer-vendor relationship and for which the license is deemed to be the predominant item to which the royalties relate, the Company will recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied or partially satisfied. To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements. Significant Financing Component – In determining the transaction price, the Company will adjust consideration for the effects of the time value of money if the expected period between payment by the licensees and the transfer of the promised goods or services to the licensees will be more than one year.
Research and Development Expenses	Research and Development Expenses Research and development (“R&D”) expenses include both internal R&D activities and external contracted services. Internal R&D activity expenses include salaries, benefits and stock-based compensation and other costs to support the Company’s R&D operations. External contracted services include product development efforts including certain product licensor milestone payments, clinical trial activities, manufacturing and control-related activities and regulatory costs. R&D expenses are charged to operations as incurred. The Company reviews and accrues R&D expenses based on services performed and relies upon estimates of those costs applicable to the stage of completion of each project. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Upfront payments and milestone payments made for the licensing of technology are expensed as R&D in the period in which they are incurred. Nonrefundable advance payments for goods or services to be received in the future for use in R&D activities are recorded as prepaid expenses and are expensed as the related goods are delivered or the services are performed.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common and common equivalent shares, such as Series A Preferred, unvested restricted stock, stock options and warrants, outstanding during the period. Common stock equivalents are excluded from the computation where their inclusion would be anti-dilutive. No such adjustments were made for the three-month or six-month periods ended June 30, 2019 or 2018 as the Company reported a net loss for these periods and including the effects of common stock equivalents in the diluted EPS calculation would have been antidilutive (see Note 10).
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC 718 Compensation — Stock Compensation. The guidance under ASC 718 requires companies to estimate the fair value of the stock-based compensation awards on the date of grant and record expense over the related service periods, which are generally the vesting period of the equity awards. The Company estimates the fair value of stock-based option awards using the Black-Scholes-Merton option-pricing model (“BSM”). The BSM requires the input of subjective assumptions, including the expected stock price volatility, the calculation of expected term, forfeitures and the fair value of the underlying common stock on the date of grant, among other inputs. The risk-free interest rate was determined from the implied yields for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options or warrants. Dividends on common stock are assumed to be zero for the BSM valuation of the stock options. The expected term of stock options granted is based on vesting periods and the contractual life of the options. Expected volatilities are based on comparable companies’ historical volatility along with a limited weighting included for the Company’s own volatility subsequent to its IPO, which management believes represents the most accurate basis for estimating expected future volatility under the current conditions. The Company accounts for forfeitures as they occur. Prior to the IPO, the fair value of the shares of the Company’s common stock underlying its stock-based awards was determined by its board of directors, with input from management. Because there had been no public market for the Company’s common stock prior to the IPO, the board of directors had determined the fair value of the common stock on the grant-date of the stock-based award by considering a number of objective and subjective factors, including enterprise valuations of its common stock performed by an unrelated third-party specialist, valuations of comparable companies, sales of its convertible preferred stock to unrelated third parties, operating and financial performance, the lack of liquidity of the capital stock, and general and industry-specific economic outlook. Since the IPO in November 2018, the Company has used the closing stock price on the date of grant for the fair value of the common stock.
Fair Value Measurements	Fair Value Measurements We measure certain of our assets and liabilities at fair value. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value accounting requires characterization of the inputs used to measure fair value into a three-level fair value hierarchy as follows: *Level 1* — Inputs based on quoted prices in active markets for identical assets or liabilities. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. *Level 2* — Observable inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent from the entity. *Level 3* — Unobservable inputs that reflect the entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available. Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below takes into account the market for the Company’s financials, assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The carrying amounts of cash and cash equivalents, accounts payable and accrued liabilities approximate their fair values due to the short-term maturities of these instruments. The fair values of the Company’s warrant liability at inception and for subsequent mark-to-market fair value measurements were based on management’s valuation model and expectations with respect to the method and timing of settlement. The Company had determined that the warrant liability fair values were classified as Level 3 measurements within the fair value hierarchy. At the date of the Company’s IPO in November 2018, the fair value was reclassified to additional paid-in-capital as the final number of shares for the warrants previously reflected as a liability became fixed.
Impact of New Accounting Pronouncements	Impact of New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 (Topic 842) – Leases (“ASC 842”), which requires the lease rights and obligations arising from lease contracts, including existing and new arrangements for substantially all leases with terms more than twelve months to be recognized as assets and liabilities on the balance sheet. Recognition, measurement and presentation of expenses depends upon classification as a finance or operating lease. The Company adopted ASC 842 effective January 1, 2019 utilizing the modified retrospective approach such that prior year financial statements were not recast under the new standard. The adoption of ASU 2016-02 did not have a material effect on the Company’s financial condition from the recognition of the lease rights and obligations as assets and liabilities or its results of operations and cash flows. See Note 12 for additional information regarding the new standard and its impact on the Company’s financial statements.

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consist of the following:

	June 30, 2019			December 31, 2018
Computer hardware and software	$	170		$	93
Furniture and fixtures		115			98
Equipment		964			99
Leasehold improvements		147			53
Construction in progress		—			492
		1,396			835
Less: accumulated depreciation		(173	)		(62	)
Property and equipment, net	$	1,223		$	773

Common Stock Warrants (Tables)

6 Months Ended

Jun. 30, 2019

Warrants and Rights Note Disclosure [Abstract]

Summary of Warrants Outstanding

The outstanding warrants are summarized in the table below.

Description of Warrants	No. of Shares		Exercise Price
Business Advisory Warrants		600,000	$	0.01
Placement Agent Warrants - Series A Preferred		636,450	$	3.00
Placement Agent Warrants - IPO		414,000	$	7.50
Total		1,650,450	$	3.04 (Avg)

Share-Based Payment Awards (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Summary of Stock Option Activity

A summary of stock option activity is as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Options outstanding as of December 31, 2018		1,295,000		$	1.78		8.3	$	5,627
Issued		717,500			7.44
Exercised		(90,000	)		0.86
Forfeited/Cancelled		—			—
Options outstanding as of June 30, 2019		1,922,500		$	3.94		8.6	$	7,646
Options exercisable at June 30, 2019		505,417		$	1.82		7.5	$	3,075
Options vested and expected to vest at June 30, 2019		1,872,500		$	4.00		8.7	$	7,320

Schedule of Assumptions Used to Calculate Fair Value of Options Granted

The assumptions used to calculate the fair value of options granted during the six months ended June 30, 2019 under the BSM were as follows:

	June 30, 2019
Expected dividends		—	%
Expected volatility		90	%
Risk-free interest rate		1.9-2.5	%
Expected term		5.6 – 6.3 years
Weighted average fair value	$	5.54

Summary of Activity for Restricted Stock Awards

A summary of activity for the RSAs is as follows:

Restricted Stock Awards	Number of shares
Unvested as of December 31, 2018		312,500
Issued		—
Vested		(312,500	)
Forfeited/Cancelled		—
Unvested as of June 30, 2019		—

Basic and Diluted Net Loss Per Common Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Common Share

The following table shows the computation of basic and diluted net loss per common share:

	Three months ended June 30, 2019 (unaudited)			Three months ended June 30, 2018 (unaudited)
Net loss	$	(3,249	)	$	(3,082	)
Series A Preferred – dividends (accrued and deemed)		—			(722	)
Net loss attributable to common stockholders	$	(3,249	)	$	(3,804	)
Weighted average common shares outstanding basic and diluted)		17,733,324			4,785,841
Net loss per common share (basic and diluted)	$	(0.18	)	$	(0.79	)

	Six months ended June 30, 2019 (unaudited)			Six months ended June 30, 2018 (unaudited)
Net loss	$	(10,659	)	$	(6,100	)
Series A Preferred – dividends (accrued and deemed)		—			(1,428	)
Net loss attributable to common stockholders	$	(10,659	)	$	(7,528	)
Weighted average common shares outstanding basic and diluted)		17,618,293			4,171,775
Net loss per common share (basic and diluted)	$	(0.61	)	$	(1.80	)

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Schedule of Lease-related Assets and Liabilities

The table below presents the lease-related assets and liabilities recorded on the balance sheet as of June 30, 2019 (in thousands).

Assets	Classification
Operating lease right-of-use assets	Operating lease right-of-use assets, net	$	222
Total leased assets		$	222
Liabilities
Operating lease liabilities, current	Accrued liabilities	$	127
Operating lease liabilities, noncurrent	Operating lease liabilities, net of current portion		86
Total operating lease liabilities		$	213

Schedule of Lease Commitments

The Company’s lease commitments for its administrative offices in Deer Park, Illinois and its laboratory facility in Lake Zurich, Illinois for 2019 and beyond are as indicated below:

	Total			2019		2020		2021		Thereafter
Undiscounted lease payments	$	228			69		140		19		—
Less: Imputed interest		(15	)
Total lease liabilities	$	213

Company Overview (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Nov. 30, 2018	Jun. 30, 2017
Initial Public Offering [Member]
Stock issued during period	4,140,000
Common stock share price per share	$ 6.00
Net cash proceeds from initial public offering	$ 21,960
Series A Redeemable Convertible Preferred Stock [Member]
Start-up capital		$ 20,055

Liquidity Considerations (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 56,527		$ 45,868
Net cash used in operating activities	10,963	$ 4,078
Cash and cash equivalents	$ 14,947		$ 26,735

Summary of Significant Accounting Policies (Details Narrative)	6 Months Ended	26 Months Ended
	Jun. 30, 2019 Segment	Jun. 30, 2019 USD ($)
Number of reportable segments \| Segment	1
Impairment of long-lived assets \| $
Computer Software and Hardware [Member]
Estimated useful lives for property and equipment	3 years
Equipment, Furniture and Fixtures [Member]
Estimated useful lives for property and equipment	5 years
Leasehold Improvements [Member]
Estimated useful lives for property and equipment, description	Estimated useful lives or the remaining lease term

Revenues (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenues (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues			$ 500
Bausch Health Ireland Limited [Member] \| Asset Purchase Agreement [Member]
Revenues			500
Upfront payment received			500
Maximum commercial milestone payments receivable			$ 2,500

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 111	$ 18

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Computer hardware and software	$ 170	$ 93
Furniture and fixtures	115	98
Equipment	964	99
Leasehold improvements	147	53
Construction in progress		492
Property and equipment, gross	1,396	835
Less: accumulated depreciation	(173)	(62)
Property and equipment, net	$ 1,223	$ 773

Redeemable Convertible Preferred Stock - Series A (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Nov. 30, 2018	Jun. 30, 2019	Jun. 30, 2017
Initial Public Offering [Member]
Share issue price per share	$ 6.00
Initial Public Offering [Member] \| Common Stock [Member]
Share issue price per share	3.00
Redeemable Convertible Preferred Stock - Series A [Member]
Preferred stock, shares authorized		10,000,000
Preferred stock, par value		$ 0.001
Preferred stock, shares issued			6,685,082
Share issue price per share			$ 3.00
Gross proceeds from Series A Preferred offering		$ 20,055
Redeemable Convertible Preferred Stock - Series A [Member] \| Initial Public Offering [Member]
Share issue price per share	$ 6.00
Accretion of dividends as deemed	$ 2,534
Percentage of common stock issue price for conversion	50.00%
Beneficial conversion amount	$ 21,747

Common Stock (Details Narrative) - $ / shares	3 Months Ended	6 Months Ended
Common Stock (Details Narrative) - $ / shares	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Common stock, shares authorized	50,000,000	50,000,000	50,000,000
Common stock, par value	$ 0.001	$ 0.001	$ 0.001
Common Stock [Member]
Number of stock issued for exercise of stock options	70,000	90,000
Number of stock issued under employee stock purchase plan	23,083	23,083
Number of stock issued for exercise of stock warrants		42,034

Common Stock Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Nov. 30, 2018	May 31, 2017
Warrants issued to purchase common stock		1,650,450		1,650,450
Warrants exercise price		$ 3.04		$ 3.04
Warrants, fair value			$ 413		$ 496
Volatility rate				90.00%
Redeemable Convertible Preferred Stock - Series A [Member]
Warrants, fair value	$ 479				1,016
Expected term	5 years
Volatility rate	85.00%
Risk-free interest rate	2.90%
Common stock issued upon warrants conversion basis	1.333
Common stock issued upon warrants conversion basis, description	Prior to the IPO in November 2018 as the number of shares of common stock issuable upon the exercise of this warrant was not fixed as it could vary by a factor of 1.000 to 1.333 shares of common stock per warrant share in accordance with the IPO price, and the Company had considered the warrant to be a derivative instrument.
Stock issuance costs	$ 479
Increase in fair value of warrant			$ 413		$ 496
Placement Agent [Member] \| Redeemable Convertible Preferred Stock - Series A [Member]
Common stock issuable upon conversion of preferred stock	191,000
Warrant [Member]
Warrants issued to purchase common stock						414,000
Warrants exercise price						$ 7.50
Number of warrants exercised				67,734
Warrant [Member] \| Placement Agent [Member]
Warrants issued to purchase common stock	649,409
Warrants exercise price	$ 3.00
Warrants conversion, description	The warrant adjusted to entitle the holder to purchase shares of common stock equal to 10.0% of the shares of common stock issuable upon conversion of the Series A Preferred (excluding 191,000 shares of Series A Preferred that were purchased by insiders) and the exercise price would adjust to the conversion price of the Series A Preferred. This warrant vested at issuance in June 2017.
Warrant [Member] \| Initial Public Offering [Member]
Number of shares issuable upon exercise warrants				704,184
Common Stock [Member]
Number of stock issued for exercise of stock warrants				42,034
Business Strategy and Intellectual Property Advisory Services [Member]
Warrants issued to purchase common stock							600,000
Warrants exercise price							$ 0.01
Warrants expiration term							5 years

Common Stock Warrants - Summary of Warrants Outstanding (Details)	Jun. 30, 2019 $ / shares shares
No. of Shares, Total \| shares	1,650,450
Exercise Price \| $ / shares	$ 3.04
Business Advisory Warrants [Member]
No. of Shares, Total \| shares	600,000
Exercise Price \| $ / shares	$ 0.01
Placement Agent Warrants - Series A Preferred [Member]
No. of Shares, Total \| shares	636,450
Exercise Price \| $ / shares	$ 3.00
Placement Agent Warrants - IPO [Member]
No. of Shares, Total \| shares	414,000
Exercise Price \| $ / shares	$ 7.50

Share-Based Payment Awards (Details Narrative) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended									6 Months Ended		12 Months Ended
	Jan. 02, 2018 Director shares	Jun. 30, 2018	Jun. 30, 2019 USD ($) $ / shares shares	Dec. 31, 2018 shares	Sep. 30, 2018	Jun. 30, 2018 USD ($)	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017 shares	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2018 USD ($)	Dec. 31, 2018 shares	Jan. 02, 2019 shares	May 31, 2017 shares
Common stock, shares outstanding			17,763,045	17,607,928								17,763,045		17,607,928
Stock-based compensation expense \| $			$ 505			$ 416						$ 850	$ 1,466
Number of stock issued under employee stock purchase plan, value \| $			128									128
General and Administrative Expense [Member]
Stock-based compensation expense \| $			421			400						690	1,434
Research and Development Expense [Member]
Stock-based compensation expense \| $			$ 84			$ 16						$ 160	$ 32
Common Stock [Member]
Stock option exercises, shares			70,000									90,000
Number of stock issued under employee stock purchase plan			23,083									23,083
Number of stock issued under employee stock purchase plan, value \| $
Four Stock Option [Member]
Stock option exercises, shares												90,000
Stock option exercise price \| $ / shares												$ 0.86
Stock option intrinsic value \| $												$ 599
Individual Director Retires From Service [Member]
Share-based compensation arrangement, shares available for future issuance									100,000
Product Consultant [Member]
Number of stock options issued to purchase common stock												50,000
Product Consultant [Member] \| Common Stock [Member]
Stock options expiration period												5 years
Restricted Stock [Member] \| Outside Directors One [Member]
Shares issued as compensation	54,745
Restricted Stock [Member] \| Outside Directors Two [Member]
Shares issued as compensation	54,745
Restricted Stock [Member] \| Outside Directors Three [Member]
Shares issued as compensation	54,745
Restricted Stock [Member] \| Outside Directors Four [Member]
Shares issued as compensation	54,745
Restricted Stock [Member] \| Four Outside Directors [Member]
Shares issued as compensation	218,980
Number of outside directors \| Director	4
Restricted Stock [Member] \| Outside Directors [Member]
Restricted shares to outside directors vesting percentage				25.00%	25.00%	25.00%	25.00%							100.00%
Restricted Stock Units (RSUs) [Member]
Unrecognized compensation costs \| $			0									$ 0
Restricted Stock Units (RSUs) [Member] \| Outside Directors One [Member]
Shares issued as compensation									25,000
Restricted Stock Units (RSUs) [Member] \| Outside Directors Two [Member]
Shares issued as compensation									25,000
Restricted Stock Units (RSUs) [Member] \| Outside Directors Three [Member]
Shares issued as compensation									25,000
Restricted Stock Units (RSUs) [Member] \| Outside Directors Four [Member]
Shares issued as compensation									25,000
Restricted Stock Units (RSUs) [Member] \| Outside Directors [Member]
Shares issued as compensation									100,000
Restricted shares to outside directors vesting percentage		100.00%		25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%
Stock Option [Member]
Stock options expiration period												10 years
Restricted Stock Awards (RSU's) [Member]
Fair value of vested \| $												$ 66
Non-Vested Stock Option Awards [Member]
Unrecognized compensation costs \| $			4,536									$ 4,536
Restricted Stock Awards (RSAs) [Member]
Number of stock options issued to purchase common stock
Unrecognized compensation costs \| $			$ 0									$ 0
2017 Equity Incentive Plan [Member]
Share-based compensation arrangement by share-based payment award, number of shares authorized																5,000,000
2018 Equity Incentive Plan [Member]
Share-based compensation arrangement, shares available for future issuance			872,837									872,837
Share reserve increased															704,317
2018 Equity Incentive Plan [Member] \| January 1, 2019 and Through January 1, 2028
Percentage for total number of shares outstanding												4.00%
2018 Employee Stock Purchase Plan [Member]
Share-based compensation arrangement, shares available for future issuance				150,000										150,000
Stock-based compensation expense \| $												$ 75
Share based compensation for initial shares reserve, description												The Company's ESPP provides for an initial reserve of 150,000 shares and this reserve is automatically increased on January 1 of each year by the lesser of 1% of the outstanding common shares at December 31 of the preceding year or 150,000 shares, subject to reduction at the discretion of the Company's board of directors.
Percentage for purchase stock and fair value of common stock												85.00%
Description for deductions to purchase stock at price per share												The terms of the ESPP permit employees of the Company to use payroll deductions to purchase stock at a price per share that is at least the lesser of (1) 85% of the fair market value of a share of common stock on the first date of an offering or (2) 85% of the fair market value of a share of common stock on the date of purchase.
Weighted average grant date fair value issued \| $ / shares												$ 2.57
Employees contribution amount \| $												$ 141
Number of stock issued under employee stock purchase plan												23,083
Shares issued price per share \| $ / shares			$ 5.53									$ 5.53
Shares issued price per share, description												In June 2019, 23,083 shares of the Company's common stock were issued under the ESPP at $5.53 per share (85% of the Company's $6.50 per share closing price of its common stock on December 17, 2018).
Number of stock issued under employee stock purchase plan, value \| $												$ 128
Accrued liabilities for remaining employee contributions \| $			$ 21									$ 21

Share-Based Payment Awards - Summary of Stock Option Activity (Details) - Stock Option [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares
Options Outstanding, Shares Beginning Balance \| shares	1,295,000
Issued, Shares \| shares	717,500
Exercised, Shares \| shares	(90,000)
Forfeited/cancelled, Shares \| shares
Options Outstanding, Shares Ending Balance \| shares	1,922,500
Options Exercisable, Ending Balance \| shares	505,417
Options Vested and Expected to Vest, Ending Balance \| shares	1,872,500
Options Outstanding, Weighted Average Exercise Price Beginning Balance \| $ / shares	$ 1.78
Issued, Weighted Average Exercise Price \| $ / shares	7.44
Exercised, Weighted Average Exercise Price \| $ / shares	0.86
Forfeited/cancelled, Weighted Average Exercise Price \| $ / shares
Options Outstanding, Weighted Average Exercise Price Ending Balance \| $ / shares	3.94
Options Exercisable, Weighted Average Exercise Price Ending Balance \| $ / shares	1.82
Options Vested and Expected to Vest Weighted Average Exercise Price Ending Balance \| $ / shares	$ 4.00
Options Outstanding, Weighted Average Remaining Contractual Term, Beginning	8 years 3 months 19 days
Options Outstanding, Weighted Average Remaining Contractual Term, Ending	8 years 7 months 6 days
Options Exercisable Weighted Average Remaining Contractual Term, Ending	7 years 6 months
Options Vested and Expected to Vest Weighted Average Remaining Contractual Term, Ending	8 years 8 months 12 days
Options Outstanding, Aggregate Intrinsic Value, Beginning \| $	$ 5,627
Options Outstanding, Aggregate Intrinsic Value, Ending \| $	7,646
Options Exercisable Aggregate Intrinsic Value, Ending \| $	3,075
Options Vested and Expected to Vest, Aggregate Intrinsic Value Ending \| $	$ 7,320

Share-Based Payment Awards - Schedule of Assumptions Used to Calculate Fair Value of Options Granted (Details)	6 Months Ended
	Jun. 30, 2019 $ / shares
Expected dividends	0.00%
Expected volatility	90.00%
Risk-free interest rate, minimum	1.90%
Risk-free interest rate, maximum	2.50%
Weighted average fair value	$ 5.54
Minimum [Member]
Expected term	5 years 7 months 6 days
Maximum [Member]
Expected term	6 years 3 months 19 days

Share-Based Payment Awards - Summary of Activity for Restricted Stock Awards (Details) - Restricted Stock Awards (RSAs) [Member]	6 Months Ended
	Jun. 30, 2019 shares
Unvested, Outstanding, Beginning Balance	312,500
Issued
Vested	(312,500)
Forfeited/Cancelled
Unvested, Outstanding, Ending Balance

Basic and Diluted Net Loss Per Common Share (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from calculation of diluted net loss per share	3,460,950	9,164,685

Basic and Diluted Net Loss Per Common Share - Computation of Basic and Diluted Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net loss	$ (3,249)	$ (3,082)	$ (10,659)	$ (6,100)
Series A Preferred - dividends (accrued and deemed)		(722)		(1,428)
Net loss attributable to common stockholders	$ (3,249)	$ (3,804)	$ (10,659)	$ (7,528)
Weighted average common shares outstanding, basic and diluted	17,733,000	4,786,000	17,618,000	4,172,000
Net loss per common share (basic and diluted)	$ (0.18)	$ (0.79)	$ (0.61)	$ (1.80)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

Related Party Transactions (Details Narrative) $ / shares in Units, $ in Thousands							1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 18, 2019 USD ($)	Dec. 26, 2017 USD ($)	Nov. 17, 2017	Aug. 11, 2017 USD ($)	Jul. 09, 2017 USD ($)	Jun. 23, 2017 USD ($)	Apr. 30, 2019 USD ($)	Jul. 31, 2018 USD ($)	Apr. 30, 2018	Jun. 30, 2019 USD ($) Products $ / shares shares	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) Products $ / shares shares	Jun. 30, 2018 USD ($)	Dec. 31, 2018 $ / shares shares
Common stock issued \| shares										17,763,045		17,763,045		17,607,928
Common stock par value per share \| $ / shares										$ 0.001		$ 0.001		$ 0.001
Stock-based compensation expense										$ 505	$ 416	$ 850	$ 1,466
Payment of research and development expense										1,439	1,707	7,904	2,981
Credit agreement term			10 years
Amended and Restated Agreement [Member] \| Maximum [Member]
Royalties	$ 2,000
Amended and Restated Agreement [Member] \| Eyemax, LLC [Member] \| One Milestone [Member]
Related party transaction	250
Amended and Restated Agreement [Member] \| Eyemax, LLC [Member] \| Two Milestone [Member]
Related party transaction	$ 500
Research and Development Expense [Member]
Stock-based compensation expense										$ 84	$ 16	$ 160	32
Harrow Health Inc [Member]
Common stock issued \| shares										3,500,000		3,500,000
Common stock par value per share \| $ / shares										$ 0.001		$ 0.001
Number of products \| Products										2		2
Harrow Health Inc [Member] \| Stock Option [Member]
Stock-based compensation expense												$ 0	80
Harrow Health Inc [Member] \| Common Stock [Member]
Restricted stock award forfeited \| shares														20,000
Percentage of restricted stock and option vested									100.00%
Harrow Health Inc [Member] \| Restricted Stock [Member]
Number of restricted common stock issued for services \| shares												1,500,000
Number of stock options issued to purchase common stock \| shares												130,000
Stock-based compensation expense												$ 0	$ 970
Harrow Health Inc [Member] \| Licensing Agreement [Member]
Related party transaction								$ 50
Harrow Health Inc [Member] \| Research and Development Expense [Member]
Related party transaction		$ 50
Harrow Health Inc [Member] \| Patents [Member]
Related party transaction												$ 50
Royalty fee percentage												6.00%
Eyemax, LLC [Member]
Related party transaction				$ 250
Payment of research and development expense				250
Sale of product expense				$ 500
Percentage of royalty fee				10.00%
Credit agreement term				10 years
Related party transaction, description				The Eyemax Agreement was for an initial term of 10 years from the date of the Eyemax Agreement, subject to successive two-year renewals unless the Company elected to terminate the Eyemax Agreement. There were no amounts due under the terms of the Eyemax Agreement as of June 30, 2019 or December 31, 2018.
Andersen Pharma LLC [Member]
Related party transaction					$ 750
Payment of research and development expense					750
Sale of product expense					$ 750
Percentage of royalty fee					50.00%
Credit agreement term					5 years
Related party transaction, description					The Andersen Agreement is for an initial term of five years from the first commercial sale of the product, subject to successive two-year renewals unless either party elects to terminate the Andersen Agreement. There were no amounts due under the terms of the Andersen Agreement as of June 30, 2019 or December 31, 2018.
Selenix LLC [Member]
Related party transaction							$ 1,500
Payment of research and development expense						$ 1,500
Sale of product expense						$ 1,000
Percentage of royalty fee						50.00%
Credit agreement term						10 years

Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Leases (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2019	Jan. 02, 2019	Dec. 31, 2018
Rights to use of assets	$ 222	$ 222	$ 281
Operating lease liabilities	$ 213	$ 213	$ 272
Prepaid rent				$ 9
Incremental borrowing rate	7.80%	7.80%
Operating lease payment		$ 59
Amortization rights to use of assets	$ 30	$ 59
Weighted-average remaining lease term	1 year 8 months 12 days	1 year 8 months 12 days
Weighted-average incremental borrowing rate	7.80%	7.80%
Research and Development Expense [Member]
Operating lease cost	$ 14	$ 28
General and Administrative Expense [Member]
Operating lease cost	$ 20	$ 43

Leases - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 02, 2019
Total leased assets	$ 222	$ 281
Operating lease liabilities, noncurrent	86
Total operating lease liabilities	213	$ 272
Operating Lease Right-of-use Assets [Member]
Total leased assets	222
Accrued Liabilities [Member]
Operating lease liabilities, current	127
Operating Lease Liabilities Net of Current [Member]
Operating lease liabilities, noncurrent	$ 86

Leases - Schedule of Lease Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 02, 2019
Leases [Abstract]
2019	$ 69
2020	140
2021	19
Thereafter
Undiscounted lease payments	228
Less: Imputed interest	(15)
Total operating lease liabilities	$ 213	$ 272

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands					3 Months Ended		6 Months Ended
	Jun. 12, 2019	Feb. 08, 2019	Jan. 23, 2019	Nov. 17, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Percentage of net profits payments to third party from sale of product				50.00%
Credit agreement term				10 years
Percentage of right to recoup					35.00%		35.00%
Payments for development					$ 1,439	$ 1,707	$ 7,904	$ 2,981
Exclusive License and Supply Agreement [Member] \| Licensor [Member]
Percentage of net profits payments to third party from sale of product					35.00%		35.00%
Credit agreement term							10 years
Percentage of right to recoup					60.00%		60.00%
Payments for development							$ 350
Exclusive License and Supply Agreement [Member] \| Licensor [Member] \| Upon FDA Acceptance [Member]
Payments for development							1,500
Exclusive License and Supply Agreement [Member] \| Licensor [Member] \| Upon FDA Approval [Member]
Payments for development							1,000
Exclusive License and Supply Agreement [Member] \| Licensor [Member] \| Upon Issuance of Patent Covering [Member]
Payments for development							1,500
Exclusive License and Supply Agreement [Member] \| Licensor [Member] \| Product Sales [Member]
Payments for development							500
Exclusive License and Supply Agreement [Member] \| Licensor [Member] \| Calendar Year [Member]
Payments for development							$ 10,000
Licensing and Supply Agreement [Member] \| Licensor [Member]
Percentage of net profits payments to third party from sale of product			35.00%
Credit agreement term			10 years
Payments for development			$ 350
Licensing and Supply Agreement [Member] \| Licensor [Member] \| Upon FDA Acceptance [Member]
Payments for development			325
Licensing and Supply Agreement [Member] \| Licensor [Member] \| Upon FDA Approval [Member]
Payments for development			325
Licensing and Supply Agreement [Member] \| Licensor [Member] \| Upon Issuance of Patent Covering [Member]
Payments for development			650
Licensing and Supply Agreement [Member] \| Licensor [Member] \| Product Sales [Member]
Payments for development			500
Licensing and Supply Agreement [Member] \| Licensor [Member] \| Calendar Year [Member]
Payments for development			10,000
Licensing and Supply Agreement [Member] \| Licensor [Member] \| Upon Successful Bioequivalence Study [Member]
Payments for development			$ 350
Exclusive License and Supply Agreement (ET-202 ) [Member]
Percentage for additional profit		50.00%
Exclusive License and Supply Agreement (ET-202 ) [Member] \| Sintetica [Member]
Payment of licensing		$ 2,000
Percentage of net sales as marketing fees		5.00%
Proceeds from licensing		$ 500
Percentage for additional profit		50.00%
Exclusive License and Supply Agreement (ET-202 ) [Member] \| Upon FDA Approval [Member]
Payment of licensing		$ 750
Exclusive License and Supply Agreement (ET-203 ) [Member]
Percentage for additional profit		50.00%
Exclusive License and Supply Agreement (ET-203 ) [Member] \| Sintetica [Member]
Payment of licensing		$ 1,000
Percentage of net sales as marketing fees		5.00%
Proceeds from licensing		$ 500
Percentage for additional profit		50.00%
Exclusive License and Supply Agreement (ET-203 ) [Member] \| Upon FDA Approval [Member]
Payment of licensing		$ 750
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Aucta Pharmaceuticals, Inc [Member]
Payment of licensing	$ 2,000
Milestone payment description	$1,000 when net sales exceed $10 million in a calendar year, $2,000 when net sales exceed $20 million in a calendar year, $5,000 when net sales exceed $50 million in a calendar year, $10,000 when net sales exceed $100 million in a calendar year
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Aucta Pharmaceuticals, Inc [Member] \| Maximum [Member]
Milestone payment amount	$ 18,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Upon FDA Approval [Member] \| Aucta Pharmaceuticals, Inc [Member]
Payment of licensing	2,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Upon Issuance of Orange-book Listed Patent [Member] \| Aucta Pharmaceuticals, Inc [Member]
Payment of licensing	1,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Scenario One [Member] \| Aucta Pharmaceuticals, Inc [Member]
Milestone payment amount	1,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Scenario One [Member] \| Aucta Pharmaceuticals, Inc [Member] \| Minimum [Member]
Net sales	10,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Scenario Two [Member] \| Aucta Pharmaceuticals, Inc [Member]
Milestone payment amount	2,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Scenario Two [Member] \| Aucta Pharmaceuticals, Inc [Member] \| Minimum [Member]
Net sales	20,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Scenario Three [Member] \| Aucta Pharmaceuticals, Inc [Member]
Milestone payment amount	5,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Scenario Three [Member] \| Aucta Pharmaceuticals, Inc [Member] \| Minimum [Member]
Net sales	50,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Scenario Four [Member] \| Aucta Pharmaceuticals, Inc [Member]
Milestone payment amount	10,000
Exclusive License and Supply Agreement (ET-105 ) [Member] \| Scenario Four [Member] \| Aucta Pharmaceuticals, Inc [Member] \| Minimum [Member]
Net sales	$ 100,000