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Company Overview (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		8 Months Ended	12 Months Ended
	Nov. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Start-up capital			$ 18,000
Net cash proceeds from initial public offering					$ 22,803
Initial Public Offering [Member]
Stock issued during period	4,140,000
Common stock share price per share	$ 6.00			$ 3.00
Net cash proceeds from initial public offering	$ 21,960
Series A Redeemable Convertible Preferred Stock [Member]
Start-up capital		$ 20,055

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 12,066	$ 26,735
Accounts receivable, net	473
Inventory	380
Prepaid expenses and other current assets	2,090	767
Total current assets	15,009	27,502
Property and equipment, net	1,117	773
Intangible assets, net	725
Operating lease right-of-use assets, net	160
Other long-term assets, net	61	52
Total assets	17,072	28,327
Current liabilities:
Accounts payable	575	1,421
Accrued liabilities	1,388	603
Total current liabilities	1,963	2,024
Long-term debt, net of discount and including accrued fees	4,540
Operating lease liabilities, net of current portion	19
Total liabilities	6,522	2,024
Commitments and contingencies (Note 16)
Stockholders' equity
Common stock, $0.001 par value; 50,000,000 shares authorized as of December 31, 2019 and 2018; 17,877,486 and 17,607,928 shares issued and outstanding at December 31, 2019 and 2018, respectively	18	18
Additional paid-in capital	74,720	72,153
Accumulated deficit	(64,188)	(45,868)
Total stockholders' equity	10,550	26,303
Total liabilities and stockholders' equity	$ 17,072	$ 28,327

Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Redeemable Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Apr. 26, 2017
Balance, shares at Apr. 26, 2017
Common stock issued to founder		$ 4			4
Common stock issued to founder, shares		3,500,000
Stock-based compensation		$ 2	1,759		1,761
Stock-based compensation, shares		2,500,000
Issuance of Series A redeemable convertible preferred stock, net of issuance costs	$ 17,521
Issuance of Series A redeemable convertible preferred stock, net of issuance costs, shares	6,685,082
Accrued dividends on redeemable convertible preferred stock	$ 643			(643)	(643)
Accrued dividends on redeemable convertible preferred stock, shares
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs	$ 840			(840)	(840)
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs, shares
Net loss				(7,156)	(7,156)
Balance at Dec. 31, 2017	$ 19,004	$ 6	1,759	(8,639)	(6,874)
Balance, shares at Dec. 31, 2017	6,685,082	6,000,000
Stock-based compensation			1,850		1,850
Stock-based compensation, shares		218,980
Accrued dividends on redeemable convertible preferred stock	$ 1,048			(1,048)	(1,048)
Accrued dividends on redeemable convertible preferred stock, shares
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs	$ 1,694			(1,694)	(1,694)
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs, shares
Issuance of common stock in connection with initial public offering, including underwriter's over-allotment, net of offering costs and underwriter's discount		$ 4	21,956		21,960
Issuance of common stock in connection with initial public offering, including underwriter's over-allotment, net of offering costs and underwriter's discount, shares		4,140,000
Conversion of redeemable convertible preferred stock (including accrued dividends) to common stock in connection with initial public offering	$ (21,746)	$ 8	21,738		21,746
Conversion of redeemable convertible preferred stock (including accrued dividends) to common stock in connection with initial public offering, shares	(6,685,082)	7,248,948
Reclassification of common stock warrants from liability to additional paid-in-capital			3,103		3,103
Beneficial conversion feature on redeemable convertible preferred stock			21,747	(21,747)
Net loss				(12,740)	(12,740)
Balance at Dec. 31, 2018		$ 18	72,153	(45,868)	26,303
Balance, shares at Dec. 31, 2018		17,607,928
Stock-based compensation			1,888		1,888
Stock-based compensation, shares
Accrued dividends on redeemable convertible preferred stock
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs
Stock option exercises			214		214
Stock option exercises, shares		167,622
Common stock issued under employee stock purchase plan			239		239
Common stock issued under employee stock purchase plan, shares		44,885
Stock warrant exercises
Stock warrant exercises, shares		57,051
Relative fair value of warrants to purchase common stock issued in connection with debt			226		226
Net loss				(18,320)	(18,320)
Balance at Dec. 31, 2019		$ 18	$ 74,720	$ (64,188)	$ 10,550
Balance, shares at Dec. 31, 2019		17,877,486

Share-Based Payment Awards - Schedule of Assumptions Used to Calculate Fair Value of Options Granted (Details) - $ / shares	8 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Expected dividends	0.00%	0.00%	0.00%
Expected volatility	85.00%	90.00%	85.00%
Risk-free interest rate, minimum	1.70%	1.90%	2.80%
Risk-free interest rate, maximum	2.50%	2.50%	2.90%
Expected term		5 years 10 months 25 days	6 years 3 months 19 days
Weighted average fair value	$ 0.91	$ 5.54	$ 3.39
Minimum [Member]
Expected term	5 years 9 months 18 days
Maximum [Member]
Expected term	10 years

Liquidity Considerations

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity Considerations

Note 2 — Liquidity Considerations

As of December 31, 2019, the Company had an accumulated deficit of $64,188 and for the year ended December 31, 2019 the Company used net cash in operating activities of $18,026.

To date, the Company has realized limited revenues from two products, but expects further growth in 2020 and beyond and currently believes its existing cash and cash equivalents 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 estimated sales and 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 issuance 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. The Company’s existing long-term debt obligation contains covenants and limits the Company’s ability to pay dividends or make other distributions to stockholders. If the Company experiences delays in product sales growth and completing its product development and obtaining regulatory approval for its other product candidates and is unable to obtain such additional financing, operations would need to be scaled back or discontinued.

Summary of Unaudited Quarterly Financial Information - Summary of Unaudited Quarterly Financial Information (Details) (Parenthetical) $ in Thousands	3 Months Ended
	Dec. 31, 2018 USD ($)
Quarterly Financial Information Disclosure [Abstract]
Deemed dividends for the beneficial conversion feature	$ 21,747

Common Stock Warrants - Summary of Rollforward of the Warrants Outstanding (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) shares
Warrants and Rights Note Disclosure [Abstract]
Balance as of the beginning of the year \| shares	1,718,184
Issuance of SWK Warrants with long-term debt \| $	$ 51,239
Placement Agent Warrants exercised - Series A Preferred \| $	$ (97,088)
Balance as of the end of the year \| shares	1,672,335

Common Stock Warrants

12 Months Ended

Dec. 31, 2019

Warrants and Rights Note Disclosure [Abstract]

Common Stock Warrants

Note 9 — 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. The Company used the BSM to value the warrant and the fair value at the date of issuance was $121 based on an expected term of five years, volatility of 85%, a risk-free interest rate of 1.8% and a 0% rate on expected dividends. The $121 amount for the consulting warrants was expensed as a component of the Company’s general and administrative expenses in May 2017.

In conjunction with the closing of the Series A Preferred offering in June 2017 (see Note 7), 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, 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. Prior to the Company’s IPO in November 2018, the number of common shares issuable upon the exercise of this warrant was not fixed as it could vary by a factor of 1.000 to 1.333 common shares per warrant share in accordance with the IPO price, and the Company 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. As of December 31, 2017, the fair value of the warrant was $520 and the $41 increase in fair value during 2017 was recorded as a component of other income and expense.

In connection with the SWK Credit Agreement, the Company issued warrants to SWK to purchase 51,239 shares of the Company’s common stock (the “SWK Warrants”) with an exercise price of $5.86 per share. The SWK Warrants are exercisable immediately and have a term of seven years ending November 13, 2026. The SWK Warrants are subject to a cashless exercise feature, with the exercise price and number of shares issuable upon exercise subject to change in connection with stock splits, dividends, reclassifications and other conditions. The relative fair value of the SWK Warrants was $226 and was estimated using the Black-Scholes-Merton option pricing model with the following assumptions: fair value of the Company’s common stock at issuance of $5.75 per share; seven-year contractual term; 95% volatility; 0% dividend rate; and a risk-free interest rate of 1.8%. The $226 relative fair value for these warrants was reflected as a component of paid-in-capital in the Company’s balance sheet.

As of November 15, 2018, the fair value of the warrants was $3,103 and the $2,583 increase in fair value during 2018 was recorded as a component of other income and expense. 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. In connection with the Company’s 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.

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 weighted average exercise price of the outstanding warrants for the consultant, placement agent and debt holder as of December 31, 2019 and 2018 was $3.13 and $3.04 per share, respectively.

Listed below is a summary of warrants outstanding as of December 31, 2019:

Description of Warrants	No. of Shares		Exercise Price
Business Advisory Warrants		600,000	$	0.01
Placement Agent Warrants - Series A Preferred		704,184	$	3.00
Placement Agent Warrants - IPO		414,000	$	7.50
SWK Warrants - Debt		51,239	$	5.86
Total		1,672,335	$	3.13 (Avg)

The holders of these warrants or their permitted transferees, are entitled to rights with respect to the registration under the Securities Act of 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.

A rollforward of the warrants outstanding is listed in the table below:

	No. of Shares
Balance as of the beginning of the year		1,718,184
Issuance of SWK Warrants with long-term debt		51,239
Placement Agent Warrants exercised – Series A Preferred		(97,088	)
Balance as of the end of the year		1,672,335

During 2019, 97,088 warrants were exercised (all on a cashless basis) resulting in 57,051 shares of common stock being issued by the Company. The intrinsic value of the warrants exercised was $401.

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands					8 Months Ended	12 Months Ended
	Jun. 12, 2019	Feb. 08, 2019	Jan. 23, 2019	Nov. 17, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Percentage of net profits payments to third party from sale of product				50.00%
Credit agreement term				10 years
Litigation related product profit, percentage				62.50%
Percentage of right to recoup						35.00%
Payments for development					$ 3,930	$ 11,555	$ 5,627
Exclusive License 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
Percentage of right to recoup						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%
Milestone payment amount		$ 1,000
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

Share-Based Payment Awards - Summary of Activity for Restricted Stock Awards (Details) - Restricted Stock Awards (RSAs) [Member]	12 Months Ended
	Dec. 31, 2019 shares
Number of Shares, Unvested, Outstanding, Beginning Balance	312,500
Number of Shares, Issued
Number of Shares, Vested	(312,500)
Number of Shares, Forfeited/Cancelled
Number of Shares, Unvested, Outstanding, Ending Balance

Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 18 — Subsequent Events

The Company has performed an evaluation of events occurring subsequent to December 31, 2019 through the filing date of this Annual Report and determined that no subsequent events have occurred that would require recognition in the financial statements or disclosures in the notes thereto.

Redeemable Convertible Preferred Stock - Series A (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	8 Months Ended	12 Months Ended
	Nov. 15, 2018	Nov. 30, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2017
Gross proceeds from series a preferred offering			$ 18,000
Initial Public Offering [Member]
Share issue price per share		$ 6.00		$ 3.00
Beneficial conversion amount		$ 21,747
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		$ 6.00
Gross proceeds from series a preferred offering	$ 20,055
Series a preferred shares, liquidation value	21,746
Accrued dividends	$ 1,691
Percentage of common stock issue price for conversion		50.00%		50.00%
Beneficial conversion amount		$ 21,747
Accretion of dividends as deemed		$ 2,534

Summary of Unaudited Quarterly Financial Information - Summary of Unaudited Quarterly Financial Information (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

8 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Dec. 31, 2019

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Revenues

$ 459

$ 500

$ 959

Operating expenses

2,662

5,042

3,349

8,054

2,286

2,374

2,697

2,964

7,150

19,107

10,321

Net loss

(2,696)

(4,965)

(3,249)

(7,410)

(3,730)

(2,910)

(3,082)

(3,018)

(7,156)

(18,320)

(12,740)

Net loss attributable to common stockholders

$ (2,696)

$ (4,965)

$ (3,249)

$ (7,410)

$ (26,062)

^[1]

$ (3,639)

^[1]

$ (3,804)

^[1]

$ (3,724)

^[1]

$ (8,639)

$ (18,320)

$ (37,229)

^[1]

Net loss per share attributable to common stockholders- basic and diluted

$ (0.15)

$ (0.28)

$ (0.18)

$ (0.42)

$ (2.24)

$ (0.65)

$ (0.79)

$ (1.05)

$ (2.50)

$ (1.03)

$ (5.80)

Weighted average shares outstanding, basic and diluted

17,924,000

17,878,000

17,733,000

17,502,000

11,640,000

5,615,000

4,786,000

3,551,000

3,453,000

17,761,000

6,418,000

[1]	Net loss attributable to common stockholders for the quarter ended December 31, 2018 included $21,747 related to deemed dividends for the beneficial conversion feature of the Company's redeemable convertible preferred stock.

- Definition

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

+ References + Details

Summary of Unaudited Quarterly Financial Information

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Summary of Unaudited Quarterly Financial Information

Note 17 — Summary of Unaudited Quarterly Financial Information

The following is a summary of our unaudited quarterly results for the years ended December 31, 2019 and 2018 (in thousands):

	For the Quarter Ended
	March 31,			June 30,			September 30,			December 31,			Total Year
	2019			2019			2019			2019			2019
	(in thousands except per share amounts)
Revenues	$	500		$	—		$	—		$	459		$	959
Operating expenses	$	8,054		$	3,349		$	5,042		$	2,662		$	19,107
Net loss	$	(7,410	)	$	(3,249	)	$	(4,965	)	$	(2,696	)	$	(18,320	)
Net loss attributable to common stockholders	$	(7,410	)	$	(3,249	)	$	(4,965	)	$	(2,696	)	$	(18,320	)
Net loss per share attributable to common stockholders- basic and diluted	$	(0.42	)	$	(0.18	)	$	(0.28	)	$	(0.15	)	$	(1.03	)
Weighted average shares outstanding, basic and diluted		17,502			17,733			17,878			17,924			17,761

	For the Quarter Ended
	March 31,			June 30,			September 30,			December 31,			Total Year
	2018			2018			2018			2018			2018
	(in thousands except per share amounts)
Revenues	$	—		$	—		$	—		$	—		$	—
Operating expenses	$	2,964		$	2,697		$	2,374		$	2,286		$	10,321
Net loss	$	(3,018	)	$	(3,082	)	$	(2,910	)	$	(3,730	)	$	(12,740	)
Net loss attributable to common stockholders (1)	$	(3,724	)	$	(3,804	)	$	(3,639	)	$	(26,062	)	$	(37,229	)
Net loss per share attributable to common stockholders- basic and diluted	$	(1.05	)	$	(0.79	)	$	(0.65	)	$	(2.24	)	$	(5.80	)
Weighted average shares outstanding, basic and diluted		3,551			4,786			5,615			11,640			6,418

(1)

Net loss attributable to common stockholders for the quarter ended December 31, 2018 included $21,747 related to deemed dividends for the beneficial conversion feature of the Company’s redeemable convertible preferred stock.

Share-Based Payment Awards (Details Narrative) $ / shares in Units, $ in Thousands		3 Months Ended				8 Months Ended	12 Months Ended
	Jan. 02, 2018 Director shares	Dec. 31, 2018 USD ($) shares	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)	Jan. 02, 2019 shares	May 31, 2017 shares
Common stock, shares outstanding \| shares		17,607,928					17,877,486	17,607,928
Stock options expiration period							10 years
Stock-based compensation expense \| $						$ 1,761	$ 1,888	$ 1,850
Employees contribution amount \| $							113	62	$ 0
General and Administrative Expense [Member]
Stock-based compensation expense \| $						1,735	1,574	1,770
Research and Development Expense [Member]
Stock-based compensation expense \| $						26	$ 314	$ 80
Common Stock [Member]
Stock option exercises, shares \| shares							167,622
Stock Options [Member]
Stock option intrinsic value \| $							$ 932
Stock option exercises, shares \| shares							167,622
Proceeds from stock option exercised \| $							$ 214
Product Consultant [Member]
Number of stock options issued to purchase common stock \| shares							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 \| shares	54,745
Restricted Stock [Member] \| Outside Directors Two [Member]
Shares issued as compensation \| shares	54,745
Restricted Stock [Member] \| Outside Directors Three [Member]
Shares issued as compensation \| shares	54,745
Restricted Stock [Member] \| Outside Directors Four [Member]
Shares issued as compensation \| shares	54,745
Restricted Stock [Member] \| Four Outside Directors [Member]
Shares issued as compensation \| shares	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%
Stock Option [Member]
Stock options expiration period							10 years
Restricted Stock Awards (RSU's) [Member]
Weighted average grant date fair value, restricted stock \| $ / shares								$ 1.37
Fair value of restricted stock, vested \| $						0	$ 66	$ 2,784
Restricted Stock Units (RSUs) [Member]
Weighted average grant date fair value, restricted stock \| $ / shares
Fair value of restricted stock, vested \| $						$ 69	$ 0	$ 69
Unrecognized compensation costs \| $							0
Non-Vested Stock Option Awards [Member]
Unrecognized compensation costs \| $							3,463
Restricted Stock Awards (RSAs) [Member]
Unrecognized compensation costs \| $							$ 0
2017 Equity Incentive Plan [Member]
Share-based compensation arrangement by share-based payment award, number of shares authorized \| shares											5,000,000
2018 Equity Incentive Plan [Member]
Share-based compensation arrangement, shares available for future issuance \| shares		887,837						887,837
Share reserve increased \| shares										704,317
Stock option exercises, shares \| shares							167,622
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 \| shares		150,000						150,000
Stock-based compensation expense \| $							$ 112	$ 5
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 initial offering began on December 17, 2018 and ended on December 10, 2019. The initial offering consisted 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 period, subsequent twelve-month offering periods 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.
Weighted average grant date fair value issued \| $ / shares							$ 2.56	$ 2.59
Employees contribution amount \| $							$ 247	$ 8
Accrued liabilities for remaining employee contributions \| $		$ 8					$ 16	$ 8

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

8 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Dec. 31, 2019

Dec. 31, 2018

Earnings Per Share [Abstract]

Net loss

$ (2,696)

$ (4,965)

$ (3,249)

$ (7,410)

$ (3,730)

$ (2,910)

$ (3,082)

$ (3,018)

$ (7,156)

$ (18,320)

$ (12,740)

Series A Preferred - dividends (accrued and deemed)

(1,483)

(24,489)

Net loss attributable to common stockholders

$ (2,696)

$ (4,965)

$ (3,249)

$ (7,410)

$ (26,062)

^[1]

$ (3,639)

^[1]

$ (3,804)

^[1]

$ (3,724)

^[1]

$ (8,639)

$ (18,320)

$ (37,229)

^[1]

Weighted average common shares outstanding (basic and diluted)

17,924,000

17,878,000

17,733,000

17,502,000

11,640,000

5,615,000

4,786,000

3,551,000

3,453,000

17,761,000

6,418,000

Net loss per common share (basic and diluted)

$ (0.15)

$ (0.28)

$ (0.18)

$ (0.42)

$ (2.24)

$ (0.65)

$ (0.79)

$ (1.05)

$ (2.50)

$ (1.03)

$ (5.80)

[1]	Net loss attributable to common stockholders for the quarter ended December 31, 2018 included $21,747 related to deemed dividends for the beneficial conversion feature of the Company's redeemable convertible preferred stock.

- Definition

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

+ References + Details

Related Party Transactions (Details Narrative) $ / shares in Units, $ in Thousands							1 Months Ended			8 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 ($)	Apr. 30, 2018	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) Products $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)
Common stock issued \| shares											17,877,486	17,607,928
Common stock par value per share \| $ / shares											$ 0.001	$ 0.001
Stock-based compensation expense										$ 1,761	$ 1,888	$ 1,850
Payment of research and development expense										3,930	11,555	5,627
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										$ 26	$ 314	80
Harrow Health Inc [Member]
Common stock issued \| shares											3,500,000
Common stock par value per share \| $ / shares											$ 0.001
Number of products \| Products											2
Harrow Health Inc [Member] \| Stock Option [Member]
Stock-based compensation expense											$ 0	$ 51	$ 112
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	$ 1,370
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 December 31, 2019 or 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 December 31, 2019 or 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.
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

Common Stock Warrants (Details Narrative) $ / shares in Units, $ in Thousands			1 Months Ended	8 Months Ended	12 Months Ended
	Nov. 15, 2018 USD ($) Segment shares	Jun. 30, 2017 USD ($) $ / shares shares	May 31, 2017 USD ($) Segment $ / shares shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2019 USD ($) Segment $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Nov. 30, 2018 $ / shares shares
Warrant issued to purchase common stock \| shares					1,672,335	1,718,184
Warrant exercise price \| $ / shares					$ 3.13
Warrant, fair value				$ 41		$ 2,583
Stock price \| $ / shares				$ 0.91	$ 5.54	$ 3.39
Relative fair value of warrants to purchase common stock issued in connection with debt					$ 226
Consultant, Placement Agent and Debt Holder [Member]
Weighted average exercise price, outstanding warrants \| $ / shares					$ 3.13	$ 3.04
Series A Preferred Stock [Member]
Warrant, fair value		$ 479		$ 520
Common stock issued upon warrants conversion basis, description		Prior to the Company's IPO in November 2018, the number of common shares issuable upon the exercise of this warrant was not fixed as it could vary by a factor of 1.000 to 1.333 common shares per warrant share in accordance with the IPO price, and the Company considered the warrant to be a derivative instrument.
Preferred stock issuance costs		$ 479
Increase in fair value of warrant				$ 41
Placement Agent [Member] \| Series A Preferred Stock [Member]
Common stock issuable upon conversion of preferred stock \| shares		191,000
Warrant [Member]
Warrant issued to purchase common stock \| shares					51,239
Warrant exercise price \| $ / shares					$ 5.86
Warrant expiration term					7 years
Warrant, fair value	$ 3,103				$ 226
Increase in fair value of warrant	$ 2,583
Number of stock issued for exercise of stock warrants \| shares					97,088
Warrant [Member] \| Placement Agent [Member]
Warrant issued to purchase common stock \| shares		649,409
Warrant exercise price \| $ / shares		$ 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]
Warrant issued to purchase common stock \| shares							414,000
Warrant exercise price \| $ / shares							$ 7.50
Number of shares issuable upon exercise warrants \| shares	704,184
SWK Warrants [Member] \| SWK Credit Agreement [Member]
Warrant issued to purchase common stock \| shares					51,239
Warrant exercise price \| $ / shares					$ 5.86
Warrant expiration term					7 years
Warrant, fair value					$ 226
Warrants exercisable date					Nov. 13, 2026
Relative fair value of warrants to purchase common stock issued in connection with debt					$ 226
Common Stock [Member]
Relative fair value of warrants to purchase common stock issued in connection with debt
Number of warrants exercised \| shares					97,088
Number of stock issued for exercise of stock warrants \| shares					57,051
Intrinsic value of the warrants exercised					$ 401
Expected Term [Member] \| Warrant [Member]
Warrant expiration term	5 years				7 years
Expected Term [Member] \| SWK Warrants [Member] \| SWK Credit Agreement [Member]
Warrant expiration term					7 years
Volatility [Member] \| Warrant [Member]
Warrant and rights outstanding, measurement input \| Segment	85
Volatility [Member] \| SWK Warrants [Member] \| SWK Credit Agreement [Member]
Warrant and rights outstanding, measurement input \| Segment					95
Risk-free Interest Rate [Member] \| Warrant [Member]
Warrant and rights outstanding, measurement input	2.9				1.8
Risk-free Interest Rate [Member] \| SWK Warrants [Member] \| SWK Credit Agreement [Member]
Warrant and rights outstanding, measurement input \| Segment					1.8
Dividend Rate [Member] \| Warrant [Member]
Warrant and rights outstanding, measurement input					0
Dividend Rate [Member] \| SWK Warrants [Member] \| SWK Credit Agreement [Member]
Warrant and rights outstanding, measurement input \| Segment					0
Share Price [Member] \| SWK Warrants [Member] \| SWK Credit Agreement [Member]
Stock price \| $ / shares					$ 5.75
Business Strategy and Intellectual Property Advisory Services [Member]
Warrant issued to purchase common stock \| shares			600,000
Warrant exercise price \| $ / shares			$ 0.01
Warrant expiration term			5 years
Warrant, fair value			$ 121
Consulting warrants			$ 121
Business Strategy and Intellectual Property Advisory Services [Member] \| Expected Term [Member]
Warrant expiration term			5 years
Business Strategy and Intellectual Property Advisory Services [Member] \| Volatility [Member]
Warrant and rights outstanding, measurement input \| Segment			85
Business Strategy and Intellectual Property Advisory Services [Member] \| Risk-free Interest Rate [Member]
Warrant and rights outstanding, measurement input \| Segment			1.8
Business Strategy and Intellectual Property Advisory Services [Member] \| Dividend Rate [Member]
Warrant and rights outstanding, measurement input \| Segment			0

Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Net operating losses	$ 8,879	$ 3,968
Stock-based expenses	662	233
Accruals and other	190	154
Total deferred tax assets	9,731	4,355
Valuation allowance	(9,731)	(4,355)
Net deferred tax assets

Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions

Note 12 — 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 will 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, $970 and $1,370 for the Harrow restricted common stock and $0, $51 and $112 for Harrow stock options, respectively, for the periods ended December 31, 2019, 2018 and 2017 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 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 December 31, 2019 or 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 payments: (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 December 31, 2019 or 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, an entity affiliated with the CEO (“Andersen”). 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 December 31, 2019 or 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 nine-month period ended September 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 December 31, 2019 or 2018.

Common Stock Warrants - Summary of Warrants Outstanding (Details) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
No. of Shares, Total	1,672,335	1,718,184
Exercise Price	$ 3.13
Business Advisory Warrants [Member]
No. of Shares, Total	600,000
Exercise Price	$ 0.01
Placement Agent Warrants - Series A Preferred [Member]
No. of Shares, Total	704,184
Exercise Price	$ 3.00
Placement Agent Warrants - IPO [Member]
No. of Shares, Total	414,000
Exercise Price	$ 7.50
SWK Warrants - Debt [Member]
No. of Shares, Total	51,239
Exercise Price	$ 5.86

Redeemable Convertible Preferred Stock - Series A

12 Months Ended

Dec. 31, 2019

Temporary Equity Disclosure [Abstract]

Redeemable Convertible Preferred Stock - Series A

Note 7 — 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 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 (See Note 8).

As of the date of the IPO on November 15, 2018, the liquidation value of the Series A Preferred was $21,746, which consisted of the issuance amount of $20,055 plus accrued dividends of $1,691.

The Series A Preferred automatically converted to common shares 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.

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, the $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.

Employee Savings Plan

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Savings Plan

Note 15 - Employee Savings Plan

The Company established an employee savings plan pursuant to Section 401(k) of the Internal Revenue Code, effective January 1, 2018. The plan allows participating employees to deposit into tax deferred investment accounts up to 100% of their salary, subject to annual limits. The Company makes certain matching contributions to the plan in amounts up to 4% of the participants’ annual cash compensation, subject to annual limits. For the periods ended December 31, 2019, 2018 and 2017, the Company made $113, $62 and $0 in matching contributions, respectively.

Common Stock

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Common Stock

Note 8 — 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. In May 2017, the Company issued 3,500,000 shares of its common stock to Harrow, 1,500,000 shares of restricted stock to certain executives and staff of Harrow and 1,000,000 shares of restricted stock to the CEO of the Company. 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) as part of their compensation for board service to the Company in 2018. The restricted shares issued to the Harrow executives and staff vested over a 12-month period, the restricted shares issued to the CEO vest over a 24-month period and the restricted shares issued to the outside directors vested 25% at each quarter-end in 2018 and were fully vested as of December 31, 2018. The Company accounted for the restricted stock awards (“RSAs”) in accordance with ASC 718 or ASC 505-50. For the periods ended December 31, 2019, 2018 and 2017, the Company recorded $59, $1,388 and $1,403, respectively, in stock-based compensation expense for these RSAs (see Note 10).

In conjunction with the Company’s IPO in November 2018, the Series A Preferred shares, including accrued dividends, converted into 7,248,948 shares of the Company’s common stock, and the Company issued 4,140,000 additional shares of its common stock to investors in its IPO (See Notes 1 and 7).

During 2019, there were 97,088 warrant shares exercised (all on a cashless basis) resulting in 57,051 shares of common stock being issued by the Company. In addition, 167,622 stock option shares were exercised and issued under the Company’s 2018 Equity Incentive Plan and 44,885 shares were issued under the Company’s Employee Stock Purchase Program.

Basic and Diluted Net Loss Per Common Share (Details Narrative) - shares	8 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from calculation of diluted net loss per share	6,977,547	3,590,465	8,262,381

Fair Value of Financial Assets and Liabilities - Schedule of Aggregate Fair Values of Warrant Liability, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Balance as of the beginning of the period		$ 520
Initial fair value of warrant liability	479
Change in fair value	41	2,583
Warrant liability reclassified to additional paid-in-capital		(3,103)
Balance as of the end of the period	$ 520

Summary of Unaudited Quarterly Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Summary of Unaudited Quarterly Financial Information

The following is a summary of our unaudited quarterly results for the years ended December 31, 2019 and 2018 (in thousands):

	For the Quarter Ended
	March 31,			June 30,			September 30,			December 31,			Total Year
	2019			2019			2019			2019			2019
	(in thousands except per share amounts)
Revenues	$	500		$	—		$	—		$	459		$	959
Operating expenses	$	8,054		$	3,349		$	5,042		$	2,662		$	19,107
Net loss	$	(7,410	)	$	(3,249	)	$	(4,965	)	$	(2,696	)	$	(18,320	)
Net loss attributable to common stockholders	$	(7,410	)	$	(3,249	)	$	(4,965	)	$	(2,696	)	$	(18,320	)
Net loss per share attributable to common stockholders- basic and diluted	$	(0.42	)	$	(0.18	)	$	(0.28	)	$	(0.15	)	$	(1.03	)
Weighted average shares outstanding, basic and diluted		17,502			17,733			17,878			17,924			17,761

	For the Quarter Ended
	March 31,			June 30,			September 30,			December 31,			Total Year
	2018			2018			2018			2018			2018
	(in thousands except per share amounts)
Revenues	$	—		$	—		$	—		$	—		$	—
Operating expenses	$	2,964		$	2,697		$	2,374		$	2,286		$	10,321
Net loss	$	(3,018	)	$	(3,082	)	$	(2,910	)	$	(3,730	)	$	(12,740	)
Net loss attributable to common stockholders (1)	$	(3,724	)	$	(3,804	)	$	(3,639	)	$	(26,062	)	$	(37,229	)
Net loss per share attributable to common stockholders- basic and diluted	$	(1.05	)	$	(0.79	)	$	(0.65	)	$	(2.24	)	$	(5.80	)
Weighted average shares outstanding, basic and diluted		3,551			4,786			5,615			11,640			6,418

(1)

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Computer hardware and software	$ 174	$ 93
Furniture and fixtures	133	98
Equipment	994	99
Leasehold improvements	152	53
Construction in progress	9	492
Property and equipment, gross	1,462	835
Less: accumulated depreciation and amortization	(345)	(62)
Property and equipment, net	$ 1,117	$ 773

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Dec. 31, 2019	Feb. 28, 2020	Jun. 30, 2019
Document And Entity Information
Entity Registrant Name	Eton Pharmaceuticals, Inc.
Entity Central Index Key	0001710340
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Public Float			$ 96,600
Entity Common Stock, Shares Outstanding		17,882,486
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

Basic and Diluted Net Loss Per Common Share (Tables)

12 Months Ended

Dec. 31, 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:

	Year ended December 31, 2019			Year ended December 31, 2018			Period from April 27, 2017 (inception) through December 31, 2017

Net loss	$	(18,320	)	$	(12,740	)	$	(7,156	)
Series A Preferred – dividends (accrued and deemed)		—			(24,489	)		(1,483	)
Net loss attributable to common stockholders		(18,320	)		(37,229	)	$	(8,639	)
Weighted average common shares outstanding (basic and diluted)		17,760,761			6,417,840			3,453,213
Net loss per common share (basic and diluted)	$	(1.03	)	$	(5.80	)	$	(2.50	)

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 14 – Income Taxes

The provision for income taxes for the Company consists of the following for the periods ended December 31, 2019, 2018 and 2017:

	Year ended			Year ended			Year ended
	December 31,			December 31,			December 31,
	2019			2018			2017
Current:
Federal	$	—		$	—		$	—
State		—			—			—
Total current expense		—			—			—

Deferred:
Federal		3,961			1,900			1,308
State		1,415			679			468
Change in valuation allowance		(5,376	)		(2,579	)		(1,776	)
Total deferred expense		—			—			—
Total provision	$	—		$	—		$	—

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The significant components of the Company’s deferred tax assets as of December 31, 2019 and 2018 are as follows:

	December 31,			December 31,
	2019			2018
Net operating losses	$	8,879		$	3,968
Stock-based expenses		662			233
Accruals and other		190			154
Total deferred tax assets		9,731			4,355
Valuation allowance		(9,731	)		(4,355	)
Net deferred tax assets	$	—		$	—

Based on the uncertainty of future taxable income at this time management believes a 100% valuation reserve for the $9,731 and $4,355 deferred tax asset at December 31, 2019 and 2018, respectively, is appropriate.

A reconciliation of the statutory federal tax rate to effective tax rate is shown below:

	Year ended December 31			Year ended December 31,			Period from April 27, 2017 (inception) through December 31,
	2019			2018			2017
Benefit at statutory rate		(21.0	)%		(21.0	)%		(34.0	)%
Permanent items (primarily warrants and stock compensation)		(0.6	)		6.0			4.4
State tax benefit		(7.7	)		(5.3	)		(5.5	)
Federal rate change		—			—			10.2
Other items		—			—			—
Establishment of valuation allowance		29.3			20.3			24.9
Income tax expense		—	%		—	%		—	%

The Tax Act significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate from 34% to 21% and implementing a modified territorial tax system. Implementation of the Tax Act resulted in a $733 charge for the revaluation of the Company’s net deferred tax assets offset by a corresponding $733 reduction in the valuation reserve for income taxes during the period ended December 31, 2017.

The Company has a federal and state NOL carryforward of $31,151 as of December 31, 2019, of which $5,652 will begin to expire in 2037 and 2039, respectively. Under the Tax Act, federal NOLs incurred in taxable years ending after December 31, 2017, may be carried forward indefinitely, but the deductibility of federal NOLs generated in tax years beginning before December 31, 2017, is limited. It is uncertain if and to what extent various states will conform to the Tax Act.

In addition, under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and corresponding provisions of state law, if a corporation undergoes an “ownership change,” which is generally defined as a greater than 50% change (by value) in its equity ownership over a three-year period, the corporation’s ability to use its pre-change NOL carryforwards and other pre-change tax attributes (such as research tax credits) to offset its post-change income may be limited. The Company is currently performing a study to determine if it has triggered an “ownership change” limitation and tax attributions will be adjusted when the study is complete, if required.

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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	17,877,486	17,607,928
Common stock, shares outstanding	17,877,486	17,607,928

Company Overview

12 Months Ended

Dec. 31, 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 “C” corporation on April 27, 2017 and was initially set up as a wholly-owned subsidiary of Harrow Health, Inc. (“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 (“IPO”), selling 4,140,000 shares of 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 (see Note 8).

The Company’s Biorphen® product was approved by the FDA in October 2019 and sales commenced for this product at the end of 2019.

Fair Value of Financial Assets and Liabilities (Details Narrative)	8 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Expected dividend Yield rate	0.00%	0.00%	0.00%

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 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”).
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 financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the useful lives of long-lived assets, 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.
Accounts Receivable	*Accounts Receivable* Accounts receivable is recorded at the invoiced amount and is non-interest bearing. Accounts receivable is recorded net of allowances for doubtful accounts, cash discounts for prompt payment, distribution fees, chargebacks and returns and allowances.
Inventory	*Inventory* The Company values its inventory at the lower of cost or net realizable value using the first-in, first-out method of valuation. The Company reviews its inventory for potential excess or obsolete issues and will record a write-down if an impairment is identified. Inventory at December 31, 2019 consists solely of purchased finished goods.
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 hardware and software 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.
Intangible Assets	*Intangible Assets* The Company capitalizes payments it makes for licensed products when the payment is based on FDA approval for the product and the cost is recoverable based on expected future cash flows from the product. The cost is amortized on a straight-line basis over the estimated useful life of the product commencing on the approval date in accordance with ASC 350-30. To date, a $750 payment related to the approval of its Biorphen product has been capitalized and that cost is being amortized over five years.
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 was recognized during the periods ended December 31, 2019, 2018 and 2017.
Debt Issuance Costs and Debt Discount and Detachable Debt-Related Warrants	*Debt Issuance Costs and Debt Discount and Detachable Debt-Related Warrants* Costs incurred to issue debt are deferred and recorded as a reduction to the debt balance in the accompanying balance sheets. The Company amortizes debt issuance costs over the expected term of the related debt using the effective interest method. Debt discounts relate to the relative fair value of warrants issued in conjunction with the debt and are also recorded as a reduction to the debt balance and accreted over the expected term of the debt to interest expense using the effective interest method.
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 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 Company’s 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 7).
Beneficial Conversion Feature	*Beneficial Conversion Feature* Prior to the IPO in November 2018, the Company classified its Series A Preferred as temporary equity due to a possible cash redemption feature in the event that an IPO or alternate financing was not completed by December 31, 2018. At the IPO date, the Series A Preferred, and related accrued and unpaid dividends, automatically converted into shares of the Company’s common stock. The conversion share calculation was based on the $3.00 initial issuance price for the Series A Preferred plus any accrued but unpaid dividends and converted to 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 stated 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.
Leases	*Leases* The Company adopted ASC Topic 842- “Leases”, effective January 1, 2019, using the modified retrospective method. The reported results for fiscal year 2019 reflect the application of ASC Topic 842, while the reported results for prior fiscal years are not adjusted and continue to be reported under the prior ASC Topic 840 guidance for leases. Refer to Impact of New Accounting Pronouncements regarding the adoption impact of ASC Topic 842 in the year ended December 31, 2019. The Company reviews all relevant facts and circumstances of a contract to determine if it is a lease whereby the terms of the agreement convey the right to control the direct use and receive substantially all of the economic benefits of an identified asset for a period of time in exchange for consideration. The associated right-of-use assets and lease liabilities are recognized at lease commencement. The Company measures lease liabilities based on the present value of the lease payments over the lease term discounted using the rate it would pay on a loan with the equivalent payments and term for the lease. The Company does not include the impact for lease term options that would extend or terminate the lease unless it is reasonably certain that it will exercise any such options. The Company accounts for the lease components separately from non-lease components for its operating leases. The Company measures right-of-use assets based on the corresponding lease liabilities adjusted for (i) any prepayments made to the lessor at or before the commencement date, (ii) initial direct costs it incurs, and (iii) any incentives under the lease. In addition, the Company evaluates the recoverability of its right-of-use assets for possible impairment in accordance with its long-lived assets policy. Operating leases are reflected on the balance sheets as operating lease right-of-use assets, current accrued liabilities and long-term operating lease liabilities. The Company does not have any finance leases as of December 31, 2019 and 2018. The Company commences recognizing operating lease expense when the lessor makes the underlying asset available for use by the Company and the operating lease expense is recognized on a straight-line basis. Variable lease payments are expensed as incurred. The Company does not recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less; such lease costs are recorded in the statements of operations on a straight-line basis over the lease term.
Patent Costs	*Patent Costs* All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditure. Amounts incurred are classified as general and administrative expenses.
Concentrations of Credit Risk, Sources of Supply and Significant Customers	*Concentrations of Credit Risk, Sources of Supply and Significant Customers* The Company is subject to credit risk for its cash and cash equivalents invested in money market funds. The Company maintains its cash and cash equivalent balances with one major commercial bank and the deposits held with the financial institution exceed the amount of insurance provided on such deposits and is exposed to credit risk in the event of a default by the financial institutions holding its cash and cash equivalents to the extent recorded on the balance sheets. The Company is dependent on third-party vendors for its product candidates. In particular, the Company relies, and expects to continue to rely, on a small number of vendors to manufacture key chemicals and process its product candidates for its development programs. These programs could be adversely affected by a significant interruption in the manufacturing process. The Company is also subject to credit risk from its accounts receivable related to product sales as it extends credit based on an evaluation of the customer’s financial condition, and collateral is not required. Management monitors its exposure to accounts receivable by periodically evaluating the collectability of the account receivable based on a variety of factors including the length of time the receivables are past due, the financial health of the customer and historical experience. Based upon the review of these factors, the Company recorded no allowance for doubtful accounts at December 31, 2019. The accounts receivable balance at December 31, 2019 and product sales revenue recognized during the year ended December 31, 2019 consist of sales to and amounts due from AmerisourceBergen Corporation, Cardinal Health Services and McKesson Corporation for sales of its Biorphen product.
Revenue Recognition for Contracts with Customers	*Revenue Recognition for Contracts with Customers* 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 be 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. The Company sells Biorphen in the U.S. to wholesale pharmaceutical distributors, who then sell the product to hospitals and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual shipments of Biorphen represent performance obligations under each purchase order. The Company uses a third-party logistics (“3PL”) vendor to process and fulfill orders and has concluded it is the principal in the sales to wholesalers because it controls access to the 3PL vendor services rendered and directs the 3PL vendor activities. The Company has no significant obligations to wholesalers to generate pull-through sales. Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when the wholesalers sell Biorphen at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”) and government programs. In addition, the Company pays fees to wholesalers for their distribution services, inventory reporting and chargeback processing. The Company pays GPOs fees for administrative services and for access to GPO members and concluded the benefits received in exchange for these fees are not distinct from its sales of Biorphen, and accordingly it applies these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of Biorphen and the Company’s lengthy return period, there may be a significant period of time between when the product is shipped and when it issues credits on returned product. The Company estimates the transaction price when it receives each purchase order taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. The Company has developed estimates for future returns and chargebacks of Biorphen and the impact of the other discounts and fees it pays. When estimating these adjustments to the transaction price, the Company reduces it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known. The Company recognizes revenue from Biorphen product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay the Company. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, the Company does not believe they have a significant incentive to return the product. Upon recognition of revenue from product sales of Biorphen, the estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, and GPO fees are included in sales reserves, accrued liabilities and net of accounts receivable. The Company monitors actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts end up differing from its estimates, it will make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment. In addition, 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.
Cost of Product Sales	*Cost of Product Sales* Cost of product sales consists of the profit-sharing fees with the Company’s product licensing and development partners, the purchase costs for finished products from third-party manufacturers and freight and handling/storage costs from the Company’s 3PL logistics service provider. The cost of sales for profit-sharing fees and costs for purchased finished products and the associated inbound freight expense is recorded when the associated product sale revenue is recognized in accordance with the terms of shipment to customers while outbound freight and handling/storage fees charged by the 3PL service provider are expensed as they are incurred.
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 such as 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 for products that are not yet approved by the FDA 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 that are outstanding during the period. Common stock equivalents are excluded from the computation when their inclusion would be anti-dilutive. No such adjustments were made for 2019, 2018 or 2017 as the Company reported a net loss for the periods ended December 31, 2019, 2018 and 2017 and including the effects of common stock equivalents in the diluted earnings per share calculation would have been antidilutive (See Note 11).
Warrant Liability	*Warrant Liability* The Company estimated the fair value of certain warrants at each reporting period using Level 3 inputs. The estimates in valuation models were based, in part, on subjective assumptions, including but not limited to stock price volatility, the expected life of the warrants, the risk-free interest rate and the exercise price of the warrants, and could differ materially in the future. Changes in the fair value of the warrant liability during the period were recorded as a component of other income (expense) at the end of each reporting period for changes in fair value until the Company’s IPO in November 2018, which established a fixed number of shares for these warrants. At the date of the IPO, the warrant liability amount was reclassified as a component of additional paid-in-capital.
Stock-Based Compensation	*Stock-Based Compensation* The Company accounts for stock-based compensation under the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“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 for employees and directors and record expense over the related service periods, which are generally the vesting period of the equity awards. Awards for consultants are accounted for under ASC 505-50 — Equity Based Payments to Non-Employees. Compensation expense is recognized over the period during which services are rendered by such consultants and non-employees until completed. At the end of each financial reporting period prior to completion of the service, the fair value of these awards is remeasured using the then-current fair value of the Company’s common stock and updated assumption inputs in the Black-Scholes-Merton option-pricing model (“BSM”). The Company estimates the fair value of stock-based option awards to its employees and directors using the BSM. The BSM requires the input of subjective assumptions, including the expected stock price volatility, the calculation of expected term 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, 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 Company’s 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. Following the IPO in November 2018, the Company uses the closing stock price on the date of grant for the fair value of the common stock.
Income Taxes	*Income Taxes* As part of the process of preparing the Company’s financial statements, the Company must estimate the actual current tax liabilities and assess temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the balance sheets. The Company must assess the likelihood that the deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, a valuation allowance must be established. To the extent the Company establishes a valuation allowance or increase or decrease to this allowance in a period, the impact will be included in income tax expense in the statements of operations. As of December 31, 2019 and 2018, the Company has established a 100% valuation reserve against its deferred tax assets. The Company accounts for income taxes under the provisions of FASB ASC 740 - Income Taxes. As of December 31, 2019 and 2018, there were no unrecognized tax benefits included in the balance sheets that would, if recognized, affect the effective tax rate. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties in its balance sheets at December 31, 2019 or 2018, and has not recognized interest and penalties in the statements of operations for the periods ended December 31, 2019, 2018 and 2017. As of December 31, 2019, the Company is subject to taxation in the United States and Illinois. The Company’s tax losses from 2019, 2018 and 2017 are subject to examination by the federal and state tax authorities due to the carryforward of unutilized net operating losses (“NOLs”). The Tax Cuts and Jobs Act of 2017 (the “Tax Act”) significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate to 21% and implementing a modified territorial tax system. In response to the Tax Act, the SEC issued Staff Accounting Bulletin (“SAB”) 118 which allows issuers to recognize provisional estimates of the impact of the Tax Act in their financial statements and adjust in the period in which the estimates become finalized, or in circumstances where estimates cannot be made, to disclose and recognize within a one-year measurement period. Implementation of the Tax Act resulted in a $733 charge for the revaluation of the Company’s net deferred tax assets offset by a corresponding $733 reduction in the valuation reserve for income taxes during the period ended December 31, 2017. Current accounting standards include guidance on the accounting for uncertainty in income taxes recognized in the financial statements. Such standards also prescribe a recognition threshold and measurement model for the financial statement recognition of a tax position taken, or expected to be taken, and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company believes that the ultimate deductibility of all tax positions is highly certain, although there is uncertainty about the timing of such deductibility. As a result, no liability for uncertain tax positions was recorded as of December 31, 2019 or 2018.
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 Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt obligation. The carrying amounts of these financial instruments, except for the long-term debt obligation, approximate fair value due to the short-term maturities of these instruments. Based on borrowing rates currently available to the Company, the carrying value of the long-term debt obligation approximates its fair value. 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 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 (see Notes 4 and 9).
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 13 for additional information regarding the new standard and its impact on the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction in carrying value of the asset. Entities will no longer be permitted to consider the length of time that fair value has been less than amortized cost when evaluating when credit losses should be recognized. The Company plans to adopt the new guidance on January 1, 2020 and does not anticipate the adoption will have a material impact on its financial position or results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The new guidance removes, modifies and adds to certain disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The Company plans to adopt the new guidance on January 1, 2020 and does not anticipate the adoption will have a material impact on its financial position or results of operations. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The new guidance removes certain exceptions to the general principles of ASC 740 in order to simplify the complexities of its application. These changes include eliminations to the exceptions for intraperiod tax allocation, recognizing deferred tax liabilities related to outside basis differences, and year-to-date losses in interim periods among others. The Company will adopt ASU 2019-12 in January 2020 and does not anticipate it will have a material impact on its financial position or results of operations.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes for the Company consists of the following for the periods ended December 31, 2019, 2018 and 2017:

	Year ended			Year ended			Year ended
	December 31,			December 31,			December 31,
	2019			2018			2017
Current:
Federal	$	—		$	—		$	—
State		—			—			—
Total current expense		—			—			—

Deferred:
Federal		3,961			1,900			1,308
State		1,415			679			468
Change in valuation allowance		(5,376	)		(2,579	)		(1,776	)
Total deferred expense		—			—			—
Total provision	$	—		$	—		$	—

Schedule of Deferred Tax Assets

The significant components of the Company’s deferred tax assets as of December 31, 2019 and 2018 are as follows:

	December 31,			December 31,
	2019			2018
Net operating losses	$	8,879		$	3,968
Stock-based expenses		662			233
Accruals and other		190			154
Total deferred tax assets		9,731			4,355
Valuation allowance		(9,731	)		(4,355	)
Net deferred tax assets	$	—		$	—

Schedule of Reconciliation of Statutory Federal Tax Rate

A reconciliation of the statutory federal tax rate to effective tax rate is shown below:

	Year ended December 31			Year ended December 31,			Period from April 27, 2017 (inception) through December 31,
	2019			2018			2017
Benefit at statutory rate		(21.0	)%		(21.0	)%		(34.0	)%
Permanent items (primarily warrants and stock compensation)		(0.6	)		6.0			4.4
State tax benefit		(7.7	)		(5.3	)		(5.5	)
Federal rate change		—			—			10.2
Other items		—			—			—
Establishment of valuation allowance		29.3			20.3			24.9
Income tax expense		—	%		—	%		—	%

Basic and Diluted Net Loss Per Common Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Basic and Diluted Net Loss Per Common Share

Note 11 — 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 December 31, 2019, 2018 and 2017 were 3,590,465, 8,262,381 and 6,977,547, respectively, and are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. Included in the basic and diluted net loss per share calculation were RSUs awarded to directors that had vested, but the issuance and delivery of the 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:

	Year ended December 31, 2019			Year ended December 31, 2018			Period from April 27, 2017 (inception) through December 31, 2017

Net loss	$	(18,320	)	$	(12,740	)	$	(7,156	)
Series A Preferred – dividends (accrued and deemed)		—			(24,489	)		(1,483	)
Net loss attributable to common stockholders		(18,320	)		(37,229	)	$	(8,639	)
Weighted average common shares outstanding (basic and diluted)		17,760,761			6,417,840			3,453,213
Net loss per common share (basic and diluted)	$	(1.03	)	$	(5.80	)	$	(2.50	)

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Aggregate Fair Values of Warrant Liability, Unobservable Input Reconciliation

The following table provides a roll forward of the aggregate fair values of the Company’s warrant liability, for which fair value was determined using Level 3 inputs:

	Year ended December 31, 2018			Period from April 27, 2017 (inception) to December 31, 2017
Balance as of the beginning of the period	$	520		$	—
Initial fair value of warrant liability		—			479
Change in fair value		2,583			41
Warrant liability reclassified to additional paid-in-capital		(3,103	)		—
Balance as of the end of the period	$	—		$	520

Share-Based Payment Awards

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Payment Awards

Note 10 — 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 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 887,837 shares available for future issuance under the 2018 Plan as of December 31, 2018.

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 has used 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 became fully vested at December 31, 2018.

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 generally 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 successfully 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 periods ended December 31, 2019, 2018 and 2017, the Company’s total stock-based compensation expense was $1,888, $1,850 and $1,761, respectively. Of these amounts, $1,574, $1,770 and $1,735 was recorded in general and administrative expenses, respectively, and $314, $80 and $26 was recorded in R&D 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 January 1, 2019		1,295,000		$	1.78		8.3	$	5,627
Issued		717,500			7.44
Exercised		(167,622	)		1.28
Forfeited/Cancelled		(15,000	)		6.20
Options outstanding as of December 31, 2019		1,829,878		$	4.01		8.1	$	6,014
Options exercisable at December 31, 2019		730,193		$	3.09		7.5	$	3,038
Options vested and expected to vest at December 31, 2019		1,779,878		$	4.08		8.1	$	5,723

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 at December 31. The intrinsic value of the options exercised was $932.

There were 167,622 shares issued for exercises of stock options during the year ended December 31, 2019 for proceeds of $214.

The assumptions used to calculate the fair value of options granted during the periods ended December 31, 2019, 2018 and 2017 under the BSM were as follows:

	December 31, 2019			December 31, 2018			December 31, 2017
Expected dividends		—	%		—	%		—	%
Expected volatility		90	%		85	%		85	%
Risk-free interest rate		1.9-2.5	%		2.8-2.9	%		1.7-2.3	%
Expected term		5.9 years			6.3 years			5.8-10 years
Weighted average fair value	$	5.54		$	3.39		$	0.91

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 has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. 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 convertible preferred stock 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 RSAs and RSUs is as follows:

Restricted Stock Awards	Number of shares
Unvested as of January 1, 2019		312,500
Issued		—
Vested		(312,500	)
Forfeited/Cancelled		—
Unvested as of December 31, 2019		—

No RSA’s were issued in 2019 and the weighted average grant date fair value of the RSAs issued during the year ended December 31, 2018 was $1.37. The fair value of the RSAs vested during the periods ended December 31, 2019, 2018 and 2017 was $66, $2,784 and $0, respectively.

Restricted Stock Units

No RSUs were issued in 2019 or 2018 and no RSU’s were unvested at December 31, 2019 or 2018. The fair value of the RSUs vesting during the periods ended December 31, 2019, 2018 and 2017 was $0, $69 and $69, respectively.

As of December 31, 2019, there was a total of $3,463, $0 and $0 of unrecognized compensation costs related to non-vested stock option awards, RSAs and RSUs, respectively.

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 began on December 17, 2018 and ended on December 10, 2019. The initial offering consisted 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 period, subsequent twelve-month offering periods 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 Company recorded an expense of $112 and $5 in 2019 and 2018, respectively, related to the ESPP. The weighted average grant date fair value of share awards in 2019 and 2018 was $2.56 and $2.59 per share, respectively. Employees contributed $247 and $8 to the ESPP during 2019 and 2018, respectively. Of these amounts, $16 and $8 at December 31, 2019 and 2018, respectively, is included in accrued liabilities in the accompanying balance sheets.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 16 — 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 was to pay the third party 50% of the net profit from the sale of the product, however, in February 2020, it executed an amendment to the Sales and Marketing Agreement. Under the revised terms, the Company will be responsible for paragraph IV related litigation and will be entitled to 62.5% of product profit. 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 (“LMW”), an unaffiliated entity. Pursuant to the agreement, the Company will be responsible for, and will 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 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 an additional $350 after receiving successful bioequivalence study results, and will pay $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 Biorphen® which is used for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia. The product was submitted to the FDA for review and subsequently received FDA approval on October 21, 2019. Pursuant to the terms of the ET-202 License Agreement, the Company will be responsible for marketing activities and Sintetica is 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 $750 upon the commencement of commercial product shipments. Sintetica will supply Biorphen to the Company at its direct costs and the Company will retain 5% of net sales as a marketing fee. Sintetica is 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 the first commercial sale of Biorphen which occurred in November 2019.

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 which was refunded to Eton in early 2020 due to the FDA not accepting the ET-203 file submission by Sintetica. The refund was reflected as a component of prepaid and other current assets on the Company’s balance sheet at December 31, 2019. The Company expects the submission will be successfully resubmitted in the near future and will pay the $1,000 milestone at that time. The Company will pay $750 upon FDA approval and the commercial sale of the product candidate. Upon approval, Sintetica will supply ET-203 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. 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 and commercial sales 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

Indemnification

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 December 31, 2019 or 2018.

Statements of Operations - USD ($)
$ in Thousands

8 Months Ended

12 Months Ended

Dec. 31, 2017

Dec. 31, 2019

Dec. 31, 2018

Revenues:

Total revenues

$ 959

Cost of product sales

453

Gross profit

506

Operating expenses:

Research and development

3,930

11,555

5,627

General and administrative

3,220

7,552

4,694

Total operating expenses

7,150

19,107

10,321

Loss from operations

(7,150)

(18,601)

(10,321)

Other income (expense):

Interest and other income, net

281

164

Change in fair value of warrant liability

(41)

(2,583)

Loss before income tax expense

(7,156)

(18,320)

(12,740)

Income tax expense

Net loss

(7,156)

(18,320)

(12,740)

Accrued dividends on redeemable convertible preferred stock

(643)

(1,048)

Deemed dividends for accretion of redeemable convertible preferred stock issuance costs

(840)

(1,694)

Deemed dividends for beneficial conversion feature of redeemable convertible preferred stock

(21,747)

Net loss attributable to common stockholders

$ (8,639)

$ (18,320)

$ (37,229)

^[1]

Net loss per share attributable to common stockholders, basic and diluted

$ (2.50)

$ (1.03)

$ (5.80)

Weighted average number of common shares outstanding, basic and diluted

3,453,000

17,761,000

6,418,000

Product Sales [Member]

Revenues:

Total revenues

$ 459

Licensing Revenue [Member]

Revenues:

Total revenues

$ 500

[1]	Net loss attributable to common stockholders for the quarter ended December 31, 2018 included $21,747 related to deemed dividends for the beneficial conversion feature of the Company's redeemable convertible preferred stock.

Leases - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 02, 2019
Total leased assets	$ 160	$ 281
Operating lease liabilities, noncurrent	19
Operating Lease Right-of-use Assets [Member]
Total leased assets	160
Accrued Liabilities [Member]
Operating lease liabilities, current	133
Operating Lease Liabilities Net of Current [Member]
Operating lease liabilities, noncurrent	19
Operating Lease Liability [Member]
Total operating lease liabilities	$ 152	$ 272

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Note 13 — 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 December 31, 2019.

On January 12, 2018, the Company signed an amended lease agreement to lease additional office space adjacent to its current corporate office space in Deer Park, Illinois. The amended lease runs through the end of March 2021. On March 7, 2018, the Company entered into a lease for laboratory space at a complex in Lake Zurich, Illinois. The lease commenced on March 7, 2018 and runs through the end of February 2021.

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.

For the periods ended December 31, 2019, 2018 and 2017, the Company recorded $140, $115 and $14, respectively, in rent expense

The Company’s operating lease cost as presented in the “Research and Development” and “General and Administrative” captions in the statements of operations was $55 and $85 for the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities was $120 for year ended December 31, 2019. The ROU asset amortization for year ended December 31, 2019 was $121 and is reflected in depreciation and amortization in the Company’s statements of cash flows. As of December 31, 2019, the weighted-average remaining lease term was 1.2 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 December 31, 2019:

Assets	Classification
Operating lease right-of-use assets	Operating lease right-of-use assets, net	$	160
Total leased assets		$	160
Liabilities
Operating lease liabilities, current	Accrued liabilities	$	133
Operating lease liabilities, noncurrent	Operating lease liabilities, net of current portion		19
Total operating lease liabilities		$	152

The Company’s future lease commitments as of December 31, 2019 are as indicated below:

	Total			2020		2021
Undiscounted lease payments	$	159		$	140	$	19
Less: Imputed interest		(7	)
Total lease liabilities	$	152

The Company’s future operating lease payments as of December 31, 2018 were as follows:

Total				2019				2020				2021
$	308			$	137			$	140			$	31

Income Taxes (Details Narrative) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Percentage for valuation reserve against deferred tax assets		100.00%
Deferred tax asset		$ 9,731	$ 4,355
Income tax, description		The Tax Act significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate from 34% to 21% and implementing a modified territorial tax system.
Corporate income tax rate	34.00%	21.00%	21.00%
Charge for revaluation net deferred tax assets	$ 733	$ 733
Valuation reserve for income taxes	$ 733
NOL carryforward		$ 31,151
Net operating loss carryforward expiration		Expire in 2037 and 2039
Minimum [Member]
Equity ownership percentage		50.00%
Expire In 2037 and 2039 [Member]
NOL carryforward		$ 5,652

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Future Payments of Long-Term Debt

The table below reflects the future payments for the SWK loan principal and interest as of December 31, 2019.

	Amount
2020	$	717
2021		1,165
2022		1,173
2023		996
2024		3,805
Total payments		7,856
Less: amount representing interest		(2,856	)
Loan payable, gross		5,000
Less: unamortized discount		(460	)
Long-term debt, net of unamortized discount	$	4,540

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 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”).

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 financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the useful lives of long-lived assets, 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.

Accounts Receivable

Accounts receivable is recorded at the invoiced amount and is non-interest bearing. Accounts receivable is recorded net of allowances for doubtful accounts, cash discounts for prompt payment, distribution fees, chargebacks and returns and allowances.

Inventory

The Company values its inventory at the lower of cost or net realizable value using the first-in, first-out method of valuation. The Company reviews its inventory for potential excess or obsolete issues and will record a write-down if an impairment is identified. Inventory at December 31, 2019 consists solely of purchased finished goods.

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 hardware and software 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.

Intangible Assets

The Company capitalizes payments it makes for licensed products when the payment is based on FDA approval for the product and the cost is recoverable based on expected future cash flows from the product. The cost is amortized on a straight-line basis over the estimated useful life of the product commencing on the approval date in accordance with ASC 350-30. To date, a $750 payment related to the approval of its Biorphen product has been capitalized and that cost is being amortized over five years.

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 was recognized during the periods ended December 31, 2019, 2018 and 2017.

Debt Issuance Costs and Debt Discount and Detachable Debt-Related Warrants

Costs incurred to issue debt are deferred and recorded as a reduction to the debt balance in the accompanying balance sheets. The Company amortizes debt issuance costs over the expected term of the related debt using the effective interest method. Debt discounts relate to the relative fair value of warrants issued in conjunction with the debt and are also recorded as a reduction to the debt balance and accreted over the expected term of the debt to interest expense using the effective interest method.

Classification and Accretion of Redeemable Convertible Preferred Stock

Prior to the Company’s IPO in November 2018, the Company 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 Company’s 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 7).

Beneficial Conversion Feature

Prior to the IPO in November 2018, the Company classified its Series A Preferred as temporary equity due to a possible cash redemption feature in the event that an IPO or alternate financing was not completed by December 31, 2018. At the IPO date, the Series A Preferred, and related accrued and unpaid dividends, automatically converted into shares of the Company’s common stock. The conversion share calculation was based on the $3.00 initial issuance price for the Series A Preferred plus any accrued but unpaid dividends and converted to 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 stated 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.

Leases

The Company adopted ASC Topic 842- “Leases”, effective January 1, 2019, using the modified retrospective method. The reported results for fiscal year 2019 reflect the application of ASC Topic 842, while the reported results for prior fiscal years are not adjusted and continue to be reported under the prior ASC Topic 840 guidance for leases. Refer to Impact of New Accounting Pronouncements regarding the adoption impact of ASC Topic 842 in the year ended December 31, 2019.

The Company reviews all relevant facts and circumstances of a contract to determine if it is a lease whereby the terms of the agreement convey the right to control the direct use and receive substantially all of the economic benefits of an identified asset for a period of time in exchange for consideration. The associated right-of-use assets and lease liabilities are recognized at lease commencement. The Company measures lease liabilities based on the present value of the lease payments over the lease term discounted using the rate it would pay on a loan with the equivalent payments and term for the lease. The Company does not include the impact for lease term options that would extend or terminate the lease unless it is reasonably certain that it will exercise any such options. The Company accounts for the lease components separately from non-lease components for its operating leases.

The Company measures right-of-use assets based on the corresponding lease liabilities adjusted for (i) any prepayments made to the lessor at or before the commencement date, (ii) initial direct costs it incurs, and (iii) any incentives under the lease. In addition, the Company evaluates the recoverability of its right-of-use assets for possible impairment in accordance with its long-lived assets policy.

Operating leases are reflected on the balance sheets as operating lease right-of-use assets, current accrued liabilities and long-term operating lease liabilities. The Company does not have any finance leases as of December 31, 2019 and 2018.

The Company commences recognizing operating lease expense when the lessor makes the underlying asset available for use by the Company and the operating lease expense is recognized on a straight-line basis. Variable lease payments are expensed as incurred.

The Company does not recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less; such lease costs are recorded in the statements of operations on a straight-line basis over the lease term.

Patent Costs

All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditure. Amounts incurred are classified as general and administrative expenses.

Concentrations of Credit Risk, Sources of Supply and Significant Customers

The Company is subject to credit risk for its cash and cash equivalents invested in money market funds. The Company maintains its cash and cash equivalent balances with one major commercial bank and the deposits held with the financial institution exceed the amount of insurance provided on such deposits and is exposed to credit risk in the event of a default by the financial institutions holding its cash and cash equivalents to the extent recorded on the balance sheets.

The Company is dependent on third-party vendors for its product candidates. In particular, the Company relies, and expects to continue to rely, on a small number of vendors to manufacture key chemicals and process its product candidates for its development programs. These programs could be adversely affected by a significant interruption in the manufacturing process.

The Company is also subject to credit risk from its accounts receivable related to product sales as it extends credit based on an evaluation of the customer’s financial condition, and collateral is not required. Management monitors its exposure to accounts receivable by periodically evaluating the collectability of the account receivable based on a variety of factors including the length of time the receivables are past due, the financial health of the customer and historical experience. Based upon the review of these factors, the Company recorded no allowance for doubtful accounts at December 31, 2019. The accounts receivable balance at December 31, 2019 and product sales revenue recognized during the year ended December 31, 2019 consist of sales to and amounts due from AmerisourceBergen Corporation, Cardinal Health Services and McKesson Corporation for sales of its Biorphen product.

Revenue Recognition for Contracts with Customers

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 be 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.

The Company sells Biorphen in the U.S. to wholesale pharmaceutical distributors, who then sell the product to hospitals and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual shipments of Biorphen represent performance obligations under each purchase order. The Company uses a third-party logistics (“3PL”) vendor to process and fulfill orders and has concluded it is the principal in the sales to wholesalers because it controls access to the 3PL vendor services rendered and directs the 3PL vendor activities. The Company has no significant obligations to wholesalers to generate pull-through sales.

Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when the wholesalers sell Biorphen at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”) and government programs. In addition, the Company pays fees to wholesalers for their distribution services, inventory reporting and chargeback processing. The Company pays GPOs fees for administrative services and for access to GPO members and concluded the benefits received in exchange for these fees are not distinct from its sales of Biorphen, and accordingly it applies these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of Biorphen and the Company’s lengthy return period, there may be a significant period of time between when the product is shipped and when it issues credits on returned product.

The Company estimates the transaction price when it receives each purchase order taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. The Company has developed estimates for future returns and chargebacks of Biorphen and the impact of the other discounts and fees it pays. When estimating these adjustments to the transaction price, the Company reduces it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known.

The Company recognizes revenue from Biorphen product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay the Company. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, the Company does not believe they have a significant incentive to return the product.

Upon recognition of revenue from product sales of Biorphen, the estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, and GPO fees are included in sales reserves, accrued liabilities and net of accounts receivable. The Company monitors actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts end up differing from its estimates, it will make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment.

In addition, 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.

Cost of Product Sales

Cost of product sales consists of the profit-sharing fees with the Company’s product licensing and development partners, the purchase costs for finished products from third-party manufacturers and freight and handling/storage costs from the Company’s 3PL logistics service provider. The cost of sales for profit-sharing fees and costs for purchased finished products and the associated inbound freight expense is recorded when the associated product sale revenue is recognized in accordance with the terms of shipment to customers while outbound freight and handling/storage fees charged by the 3PL service provider are expensed as they are incurred.

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 such as 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 for products that are not yet approved by the FDA 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 that are outstanding during the period. Common stock equivalents are excluded from the computation when their inclusion would be anti-dilutive. No such adjustments were made for 2019, 2018 or 2017 as the Company reported a net loss for the periods ended December 31, 2019, 2018 and 2017 and including the effects of common stock equivalents in the diluted earnings per share calculation would have been antidilutive (See Note 11).

Warrant Liability

The Company estimated the fair value of certain warrants at each reporting period using Level 3 inputs. The estimates in valuation models were based, in part, on subjective assumptions, including but not limited to stock price volatility, the expected life of the warrants, the risk-free interest rate and the exercise price of the warrants, and could differ materially in the future. Changes in the fair value of the warrant liability during the period were recorded as a component of other income (expense) at the end of each reporting period for changes in fair value until the Company’s IPO in November 2018, which established a fixed number of shares for these warrants. At the date of the IPO, the warrant liability amount was reclassified as a component of additional paid-in-capital.

Stock-Based Compensation

The Company accounts for stock-based compensation under the provisions of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“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 for employees and directors and record expense over the related service periods, which are generally the vesting period of the equity awards. Awards for consultants are accounted for under ASC 505-50 — Equity Based Payments to Non-Employees. Compensation expense is recognized over the period during which services are rendered by such consultants and non-employees until completed. At the end of each financial reporting period prior to completion of the service, the fair value of these awards is remeasured using the then-current fair value of the Company’s common stock and updated assumption inputs in the Black-Scholes-Merton option-pricing model (“BSM”).

The Company estimates the fair value of stock-based option awards to its employees and directors using the BSM. The BSM requires the input of subjective assumptions, including the expected stock price volatility, the calculation of expected term 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, 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 Company’s 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. Following the IPO in November 2018, the Company uses the closing stock price on the date of grant for the fair value of the common stock.

Income Taxes

As part of the process of preparing the Company’s financial statements, the Company must estimate the actual current tax liabilities and assess temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the balance sheets. The Company must assess the likelihood that the deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, a valuation allowance must be established. To the extent the Company establishes a valuation allowance or increase or decrease to this allowance in a period, the impact will be included in income tax expense in the statements of operations. As of December 31, 2019 and 2018, the Company has established a 100% valuation reserve against its deferred tax assets.

The Company accounts for income taxes under the provisions of FASB ASC 740 - Income Taxes. As of December 31, 2019 and 2018, there were no unrecognized tax benefits included in the balance sheets that would, if recognized, affect the effective tax rate. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties in its balance sheets at December 31, 2019 or 2018, and has not recognized interest and penalties in the statements of operations for the periods ended December 31, 2019, 2018 and 2017. As of December 31, 2019, the Company is subject to taxation in the United States and Illinois. The Company’s tax losses from 2019, 2018 and 2017 are subject to examination by the federal and state tax authorities due to the carryforward of unutilized net operating losses (“NOLs”).

The Tax Cuts and Jobs Act of 2017 (the “Tax Act”) significantly revised U.S. corporate income tax law by, among other things, reducing the corporate income tax rate to 21% and implementing a modified territorial tax system. In response to the Tax Act, the SEC issued Staff Accounting Bulletin (“SAB”) 118 which allows issuers to recognize provisional estimates of the impact of the Tax Act in their financial statements and adjust in the period in which the estimates become finalized, or in circumstances where estimates cannot be made, to disclose and recognize within a one-year measurement period.

Implementation of the Tax Act resulted in a $733 charge for the revaluation of the Company’s net deferred tax assets offset by a corresponding $733 reduction in the valuation reserve for income taxes during the period ended December 31, 2017.

Current accounting standards include guidance on the accounting for uncertainty in income taxes recognized in the financial statements. Such standards also prescribe a recognition threshold and measurement model for the financial statement recognition of a tax position taken, or expected to be taken, and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company believes that the ultimate deductibility of all tax positions is highly certain, although there is uncertainty about the timing of such deductibility. As a result, no liability for uncertain tax positions was recorded as of December 31, 2019 or 2018.

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 Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt obligation. The carrying amounts of these financial instruments, except for the long-term debt obligation, approximate fair value due to the short-term maturities of these instruments. Based on borrowing rates currently available to the Company, the carrying value of the long-term debt obligation approximates its fair value.

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 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 (see Notes 4 and 9).

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 13 for additional information regarding the new standard and its impact on the Company’s financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction in carrying value of the asset. Entities will no longer be permitted to consider the length of time that fair value has been less than amortized cost when evaluating when credit losses should be recognized. The Company plans to adopt the new guidance on January 1, 2020 and does not anticipate the adoption will have a material impact on its financial position or results of operations.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The new guidance removes, modifies and adds to certain disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The Company plans to adopt the new guidance on January 1, 2020 and does not anticipate the adoption will have a material impact on its financial position or results of operations.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The new guidance removes certain exceptions to the general principles of ASC 740 in order to simplify the complexities of its application. These changes include eliminations to the exceptions for intraperiod tax allocation, recognizing deferred tax liabilities related to outside basis differences, and year-to-date losses in interim periods among others. The Company will adopt ASU 2019-12 in January 2020 and does not anticipate it will have a material impact on its financial position or results of operations.

Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 5 – Property and Equipment

Property and equipment consist of the following:

	December 31, 2019			December 31, 2018
Computer hardware and software	$	174		$	93
Furniture and fixtures		133			98
Equipment		994			99
Leasehold improvements		152			53
Construction in progress		9			492
		1,462			835
Less: accumulated depreciation and amortization		(345	)		(62	)
Property and equipment, net	$	1,117		$	773

Depreciation and amortization expense for the periods ended December 31, 2019, 2018 and 2017 was $283, $51 and $11, respectively.

Leases - Schedule of Lease Commitments (Details) - Operating Lease Liability [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 02, 2019	Dec. 31, 2018
2020	$ 140
2021	19
Undiscounted lease payments	159		$ 308
Less: Imputed interest	(7)
Total operating lease liabilities	152	$ 272
2019			137
2020			140
2021			31
Total operating lease liabilities	$ 159		$ 308

Common Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		8 Months Ended	12 Months Ended
	Jan. 02, 2018	Nov. 30, 2018	May 31, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Common stock, shares authorized					50,000,000	50,000,000
Common stock, par value					$ 0.001	$ 0.001
Stock-based compensation expense				$ 1,761	$ 1,888	$ 1,850
2018 Equity Incentive Plan [Member]
Number of stock issued for exercise of stock options					167,622
Number of stock issued under employee stock purchase plan					44,885
Initial Public Offering [Member]
Number of common stock shares issued		4,140,000
Restricted Stock Awards (RSAs) [Member]
Stock-based compensation expense				$ 1,403	$ 59	$ 1,388
Common Stock [Member]
Number of common stock shares issued				3,500,000
Shares of restricted stock	218,980
Restricted shares vested description					The restricted shares issued to the Harrow executives and staff vested over a 12-month period, the restricted shares issued to the CEO vest over a 24-month period and the restricted shares issued to the outside directors vested 25% at each quarter-end in 2018 and were fully vested as of December 31, 2018.
Shares converted						7,248,948
Number of stock issued for exercise of stock warrants					57,051
Number of stock issued for exercise of stock options					167,622
Number of stock issued under employee stock purchase plan					44,885
Common Stock [Member] \| Initial Public Offering [Member]
Shares converted		7,248,948
Warrant [Member]
Number of stock issued for exercise of stock warrants					97,088
Harrow [Member]
Number of common stock shares issued			3,500,000
Harrow Executives and Staff [Member]
Shares of restricted stock			1,500,000
CEO [Member]
Shares of restricted stock			1,000,000
Four Outside Directors [Member] \| Common Stock [Member]
Shares of restricted stock	54,745
Investors [Member] \| Common Stock [Member] \| Initial Public Offering [Member]
Number of common stock shares issued		4,140,000

Common Stock Warrants (Tables)

12 Months Ended

Dec. 31, 2019

Warrants and Rights Note Disclosure [Abstract]

Summary of Warrants Outstanding

Listed below is a summary of warrants outstanding as of December 31, 2019:

Description of Warrants	No. of Shares		Exercise Price
Business Advisory Warrants		600,000	$	0.01
Placement Agent Warrants - Series A Preferred		704,184	$	3.00
Placement Agent Warrants - IPO		414,000	$	7.50
SWK Warrants - Debt		51,239	$	5.86
Total		1,672,335	$	3.13 (Avg)

Summary of Rollforward of the Warrants Outstanding

A rollforward of the warrants outstanding is listed in the table below:

	No. of Shares
Balance as of the beginning of the year		1,718,184
Issuance of SWK Warrants with long-term debt		51,239
Placement Agent Warrants exercised – Series A Preferred		(97,088	)
Balance as of the end of the year		1,672,335

Leases (Details Narrative) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
Leases (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Jan. 02, 2019
Rights to use of assets		$ 160		$ 281
Prepaid rent			9
Incremental borrowing rate		7.80%
Lease rent expense	$ 14	$ 140	$ 115
Operating lease payment		120
Amortization rights to use of assets		$ 121
Weighted-average remaining lease term		1 year 2 months 12 days
Weighted-average incremental borrowing rate		7.80%
Research and Development Expense [Member]
Operating lease cost		$ 55
General and Administrative Expense [Member]
Operating lease cost		85
Operating Lease Liability [Member]
Operating lease liabilities		$ 152		$ 272

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consist of the following:

	December 31, 2019			December 31, 2018
Computer hardware and software	$	174		$	93
Furniture and fixtures		133			98
Equipment		994			99
Leasehold improvements		152			53
Construction in progress		9			492
		1,462			835
Less: accumulated depreciation and amortization		(345	)		(62	)
Property and equipment, net	$	1,117		$	773

Statements of Cash Flows - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net loss	$ (7,156)	$ (18,320)	$ (12,740)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	1,761	1,888	1,850
Depreciation and amortization	13	447	63
Debt discount amortization		16
Change in fair value of warrant liability	41		2,583
Changes in operating assets and liabilities:
Accounts receivable		(473)
Inventory		(380)
Prepaid expenses and other assets	(170)	(1,361)	(663)
Accounts payable	539	(377)	413
Accrued liabilities	254	534	349
Net cash used in operating activities	(4,718)	(18,026)	(8,145)
Cash used in investing activities
Purchases of property and equipment	(130)	(1,096)	(236)
Purchase of product licensing rights		(750)
Net cash used in investing activities	(130)	(1,846)	(236)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of issuance costs		4,750
Proceeds from initial public offering, net of underwriting discounts and commissions			22,803
Payments of initial public offering costs			(843)
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs	18,000
Proceeds from issuance of common stock	4
Proceeds from employee stock purchase plan and stock option exercises		453
Net Cash provided by financing activities	18,004	5,203	21,960
Change in cash and cash equivalents	13,156	(14,669)	13,579
Cash and cash equivalents at beginning of period		26,735	13,156
Cash and cash equivalents at end of period	13,156	12,066	26,735
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	643		1,048
Deemed dividends for accretion of redeemable convertible preferred stock issuance costs	840		1,694
Common stock warrant liability issued with redeemable convertible preferred stock financing	479
Relative fair value of common stock warrants issued in connection with debt		226
Purchase of equipment included in accounts payable			469
Beneficial conversion feature on redeemable convertible preferred stock			21,747
Reclassification of common stock warrants from liability to additional paid-in-capital			$ 3,103

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 13	$ 447	$ 63

Leases (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2019:

Assets	Classification
Operating lease right-of-use assets	Operating lease right-of-use assets, net	$	160
Total leased assets		$	160
Liabilities
Operating lease liabilities, current	Accrued liabilities	$	133
Operating lease liabilities, noncurrent	Operating lease liabilities, net of current portion		19
Total operating lease liabilities		$	152

Schedule of Lease Commitments

The Company’s future lease commitments as of December 31, 2019 are as indicated below:

	Total			2020		2021
Undiscounted lease payments	$	159		$	140	$	19
Less: Imputed interest		(7	)
Total lease liabilities	$	152

The Company’s future operating lease payments as of December 31, 2018 were as follows:

Total				2019				2020				2021
$	308			$	137			$	140			$	31

Long-Term Debt (Details Narrative) $ / shares in Units, $ in Thousands			8 Months Ended	12 Months Ended
	Nov. 13, 2019 USD ($)	Nov. 15, 2018 USD ($) Segment	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) shares
Borrowing amount	$ 2,000
Warrants issued to purchase common stock \| shares				1,672,335	1,718,184
Warrants exercise price \| $ / shares				$ 3.13
Warrants, fair value			$ 41		$ 2,583
Debt discount amortization				16
Accrued interest				$ 82
Warrant [Member]
Warrants issued to purchase common stock \| shares				51,239
Warrants exercise price \| $ / shares				$ 5.86
Warrants expiration term				7 years
Warrants, fair value		$ 3,103		$ 226
Warrant [Member] \| Exercise Price [Member]
Warrants exercise price \| $ / shares				$ 5.75
Warrant [Member] \| Contractual Term [Member]
Warrants expiration term		5 years		7 years
Warrant [Member] \| Volatility [Member]
Warrant measurement input				95
Warrant [Member] \| Dividend Rate [Member]
Warrant measurement input				0
Warrant [Member] \| Risk Free Interest Rate [Member]
Warrant measurement input		2.9		1.8
SWK Credit Agreement [Member]
Borrowing amount	5,000
Minimum cash balance to be maintain in each quarter end	$ 3,000
Description of borrowing	On November 13, 2019, the Company entered into a credit agreement (the "SWK Credit Agreement") with SWK Holdings Corporation ("SWK") which provides for up to $10,000 in financing. The Company received proceeds of $5,000 at closing and may borrow an additional $5,000 upon the FDA approval of a second product developed by the Company, excluding EM-100. Alternatively, the Company can borrow $2,000 upon FDA approval of the EM-100 product candidate and then an additional $3,000 upon FDA approval of another one of its product candidates. The term of the SWK Credit Agreement is five years and borrowings bear interest at a rate of LIBOR 3-month plus 10.0%, subject to a stated LIBOR floor rate of 2.0%. In connection with the SWK Credit Agreement, the Company paid $250 in cash for issuance costs and issued warrants to SWK to purchase common stock of the Company in an amount equal to 6.0% of the principal amounts drawn under the SWK Credit Agreement, utilizing the prior ten-day average closing price of the Company's common stock as a divisor to calculate the number shares issuable under the warrant. A 2.0% unused credit limit fee is assessed during the first twelve months after the date of the SWK Credit Agreement and loan fees include a 5.0% exit fee based on the principal amounts drawn which is payable at the end of the term of the SWK Credit Agreement. The Company is required to maintain a minimum cash balance of $3,000, will only pay interest on the debt until May 2021 and then will pay 4.0% of the loan principal balance commencing on May 15, 2021 and then every three months thereafter until November 13, 2024 at which time the remaining principal balance is due. Borrowings under the SWK Credit Agreement are secured by the Company's assets. The SWK Credit Agreement contains customary default provisions and covenants which include limits on additional indebtedness. SWK and the Company will negotiate covenant targets for EBITDA and revenue within 180 days of the date of the SWK Credit Agreement.
SWK Credit Agreement [Member] \| Unused lines of Credit [Member]
Borrowings bear interest	2.00%
SWK Credit Agreement [Member] \| (LIBOR) Swap Rate [Member]
Borrowings bear interest	10.00%
SWK Credit Agreement [Member] \| Stated LIBOR Floor Rate [Member]
Borrowings bear interest	2.00%
SWK Credit Agreement [Member] \| Food and Drug Administration's [Member]
Borrowing amount	$ 5,000
SWK Credit Agreement [Member] \| SWK Holdings Corporation [Member]
Borrowings bear interest	6.00%
SWK Credit Agreement [Member] \| Maximum [Member]
Borrowing amount	$ 10,000

Employee Savings Plan (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Percentage for tax deferred investment	100.00%
Percentage for matching contribution	4.00%
Employee saving plan for matching contribution	$ 113	$ 62	$ 0

Liquidity Considerations (Details Narrative) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit		$ 64,188	$ 45,868
Net cash used in operating activities	$ 4,718	$ 18,026	$ 8,145

Share-Based Payment Awards - Summary of Stock Option Activity (Details) - Stock Option [Member] $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Shares, Options Outstanding, Beginning Balance \| shares	1,295,000
Shares, Issued \| shares	717,500
Shares, Exercised \| shares	(167,622)
Shares, Forfeited/Cancelled \| shares	(15,000)
Shares, Options Outstanding, Ending Balance \| shares	1,829,878
Shares, Options Exercisable, Ending Balance \| shares	730,193
Shares, Options Vested and Expected to Vest, Ending Balance \| shares	1,779,878
Weighted Average Exercise Price, Options Outstanding, Beginning Balance \| $ / shares	$ 1.78
Weighted Average Exercise Price, Issued \| $ / shares	7.44
Weighted Average Exercise Price, Exercised \| $ / shares	1.28
Weighted Average Exercise Price, Forfeited/Cancelled \| $ / shares	6.20
Weighted Average Exercise Price, Options Outstanding, Ending Balance \| $ / shares	4.01
Weighted Average Exercise Price, Options Exercisable, Ending Balance \| $ / shares	3.09
Weighted Average Exercise Price, Options Vested and Expected to Vest, Ending Balance \| $ / shares	$ 4.08
Weighted Average Remaining Contractual Term, Options Outstanding, Beginning Balance	8 years 3 months 19 days
Weighted Average Remaining Contractual Term, Options Outstanding, Ending Balance	8 years 1 month 6 days
Weighted Average Remaining Contractual Term, Options Exercisable, Ending Balance	7 years 6 months
Weighted Average Remaining Contractual Term, Options Vested and Expected to Vest, Ending Balance	8 years 1 month 6 days
Aggregate Intrinsic Value, Options Outstanding, Beginning Balance \| $	$ 5,627
Aggregate Intrinsic Value, Options Outstanding, Ending Balance \| $	6,014
Aggregate Intrinsic Value, Options Exercisable, Ending Balance \| $	3,038
Aggregate Intrinsic Value, Options Vested and Expected to Vest, Ending Balance \| $	$ 5,723

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Current: Federal
Current: State
Current: Income tax expense
Deferred: Federal	1,308	3,961	1,900
Deferred: State	468	1,415	679
Change in valuation allowance	(1,776)	(5,376)	(2,579)
Deferred: Income tax expense
Total provision

Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

Note 4 — Fair Value of Financial Assets and Liabilities

Valuation of Warrant Liability

The Company previously accounted for a warrant to purchase shares of its common stock that was issued to the Company’s placement agent in connection with the Series A Preferred offering (see Note 9) as a liability. The fair value of the warrant liability was determined based on significant inputs not observable in the market, which represented a Level 3 measurement within the fair value hierarchy. The Company used the BSM, which incorporates assumptions and estimates, to value the warrant. Estimates and assumptions impacting the fair value measurement included the fair value per share of the underlying shares of common stock, the remaining contractual term of the warrant, risk-free interest rate, expected dividend yield and expected volatility of the price of the underlying common stock. The Company determined the fair value per share of the underlying common stock by taking into consideration the most recent sales of its preferred stock, results obtained from third-party valuations and additional factors that were deemed relevant. The Company historically had been a private company and lacked company-specific historical and implied volatility information of its common stock. Therefore, the Company estimated its expected stock volatility based on the historical volatility of publicly traded peer companies for a term equal to the remaining contractual term of the warrant. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the warrant. The Company estimated a 0% expected dividend yield based on the fact that the Company had never paid or declared dividends and did not intend to do so in the foreseeable future.

In November 2018, in connection with the Company’s IPO, the number of shares issuable upon the exercise of the warrant became fixed (see Note 9). The Company remeasured the estimated fair value on the date of the IPO and reclassified this amount to additional paid-in-capital.

The following table provides a roll forward of the aggregate fair values of the Company’s warrant liability, for which fair value was determined using Level 3 inputs:

	Year ended December 31, 2018			Period from April 27, 2017 (inception) to December 31, 2017
Balance as of the beginning of the period	$	520		$	—
Initial fair value of warrant liability		—			479
Change in fair value		2,583			41
Warrant liability reclassified to additional paid-in-capital		(3,103	)		—
Balance as of the end of the period	$	—		$	520

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Summary of Significant Accounting Policies (Details Narrative) $ / shares in Units, $ in Thousands	1 Months Ended	8 Months Ended	12 Months Ended
	Nov. 30, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) Segment $ / shares	Dec. 31, 2018 USD ($)	Jun. 30, 2017 $ / shares
Number of reportable segments \| Segment			1
Payment of product licensing rights			$ 750
Product licensing rights amortized, description			cost is being amortized over five years.
Impairment of long-lived assets
Percentage for valuation reserve against deferred tax assets			100.00%
Corporate income tax rate		34.00%	21.00%	21.00%
Charge for revaluation net deferred tax assets		$ 733	$ 733
Valuation reserve for income taxes		$ 733
Redeemable Convertible Preferred Stock - Series A [Member]
Share issue initial price per share \| $ / shares					$ 3.00
Initial Public Offering [Member]
Share issue initial price per share \| $ / shares	$ 6.00		$ 3.00
Beneficial conversion amount	$ 21,747
Initial Public Offering [Member] \| Redeemable Convertible Preferred Stock - Series A [Member]
Share issue initial price per share \| $ / shares	$ 6.00		$ 6.00
Percentage of common stock issue price for conversion	50.00%		50.00%
Beneficial conversion amount	$ 21,747
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

Income Taxes - Schedule of Reconciliation of Statutory Federal Tax Rate (Details)	8 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Benefit at statutory rate	(34.00%)	(21.00%)	(21.00%)
Permanent items (primarily warrants and stock compensation)	4.40%	(0.60%)	6.00%
State tax benefit	(5.50%)	(7.70%)	(5.30%)
Federal rate change	10.20%	0.00%	0.00%
Other items		0.00%	0.00%
Establishment of valuation allowance	24.90%	29.30%	20.30%
Income tax expense	0.00%	0.00%	0.00%

Share-Based Payment Awards (Tables)

12 Months Ended

Dec. 31, 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 January 1, 2019		1,295,000		$	1.78		8.3	$	5,627
Issued		717,500			7.44
Exercised		(167,622	)		1.28
Forfeited/Cancelled		(15,000	)		6.20
Options outstanding as of December 31, 2019		1,829,878		$	4.01		8.1	$	6,014
Options exercisable at December 31, 2019		730,193		$	3.09		7.5	$	3,038
Options vested and expected to vest at December 31, 2019		1,779,878		$	4.08		8.1	$	5,723

Schedule of Assumptions Used to Calculate Fair Value of Options Granted

The assumptions used to calculate the fair value of options granted during the periods ended December 31, 2019, 2018 and 2017 under the BSM were as follows:

	December 31, 2019			December 31, 2018			December 31, 2017
Expected dividends		—	%		—	%		—	%
Expected volatility		90	%		85	%		85	%
Risk-free interest rate		1.9-2.5	%		2.8-2.9	%		1.7-2.3	%
Expected term		5.9 years			6.3 years			5.8-10 years
Weighted average fair value	$	5.54		$	3.39		$	0.91

Summary of Activity for Restricted Stock Awards

A summary of activity for RSAs and RSUs is as follows:

Restricted Stock Awards	Number of shares
Unvested as of January 1, 2019		312,500
Issued		—
Vested		(312,500	)
Forfeited/Cancelled		—
Unvested as of December 31, 2019		—

Long-Term Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt

Note 6 – Long-term Debt

On November 13, 2019, the Company entered into a credit agreement (the “SWK Credit Agreement”) with SWK Holdings Corporation (“SWK”) which provides for up to $10,000 in financing. The Company received proceeds of $5,000 at closing and may borrow an additional $5,000 upon the FDA approval of a second product developed by the Company, excluding EM-100. Alternatively, the Company can borrow $2,000 upon FDA approval of the EM-100 product candidate and then an additional $3,000 upon FDA approval of another one of its product candidates. The term of the SWK Credit Agreement is five years and borrowings bear interest at a rate of LIBOR 3-month plus 10.0%, subject to a stated LIBOR floor rate of 2.0%. In connection with the SWK Credit Agreement, the Company paid $250 in cash for issuance costs and issued warrants to SWK to purchase common stock of the Company in an amount equal to 6.0% of the principal amounts drawn under the SWK Credit Agreement, utilizing the prior ten-day average closing price of the Company’s common stock as a divisor to calculate the number shares issuable under the warrant. A 2.0% unused credit limit fee is assessed during the first twelve months after the date of the SWK Credit Agreement and loan fees include a 5.0% exit fee based on the principal amounts drawn which is payable at the end of the term of the SWK Credit Agreement. The Company is required to maintain a minimum cash balance of $3,000, will only pay interest on the debt until May 2021 and then will pay 4.0% of the loan principal balance commencing on May 15, 2021 and then every three months thereafter until November 13, 2024 at which time the remaining principal balance is due. Borrowings under the SWK Credit Agreement are secured by the Company’s assets. The SWK Credit Agreement contains customary default provisions and covenants which include limits on additional indebtedness. SWK and the Company will negotiate covenant targets for EBITDA and revenue within 180 days of the date of the SWK Credit Agreement.

In connection with the SWK Credit Agreement, the Company issued warrants to SWK to purchase 51,239 shares of the Company’s common stock (the “SWK Warrants”) with an exercise price of $5.86 per share. The SWK Warrants are exercisable immediately and have a term of seven years. The SWK Warrants are subject to a cashless exercise feature, with the exercise price and number of shares issuable upon exercise subject to change in connection with stock splits, dividends, reclassifications and other conditions. The relative fair value of the SWK Warrants was $226 and was estimated using the Black-Scholes-Merton option pricing model with the following assumptions: fair value of the Company’s common stock at issuance of $5.75 per share; seven-year contractual term; 95% volatility; 0% dividend rate; and a risk-free interest rate of 1.8%.

The debt discount amortization recorded in 2019 was $16 and $82 was recorded for accrued interest and included in accrued liabilities.

The table below reflects the future payments for the SWK loan principal and interest as of December 31, 2019.

	Amount
2020	$	717
2021		1,165
2022		1,173
2023		996
2024		3,805
Total payments		7,856
Less: amount representing interest		(2,856	)
Loan payable, gross		5,000
Less: unamortized discount		(460	)
Long-term debt, net of unamortized discount	$	4,540

Long-Term Debt - Schedule of Future Payments of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
2020	$ 717
2021	1,165
2022	1,173
2023	996
2024	3,805
Total payments	7,856
Less: amount representing interest	(2,856)
Loan payable, gross	5,000
Less: unamortized discount	(460)
Long-term debt, net of unamortized discount	$ 4,540