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Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note

–

The Company and Description of Business

Windtree Therapeutics

, Inc. (referred to as “we,” “us,” or the “Company”) is a biotechnology company focused on developing novel KL

surfactant therapies for respiratory diseases and other potential applications. Surfactants are produced naturally in the lung and are essential for normal respiratory function and survival. Our proprietary technology platform includes a synthetic, peptide-containing surfactant (KL

surfactant) that is structurally similar to endogenous pulmonary surfactant, and novel drug delivery technologies that are designed to deliver aerosolized KL

surfactant without invasive procedures. We believe that our proprietary technology platform

may

make it possible to develop a pipeline of surfactant products to address a variety of respiratory diseases for which there are few or no approved therapies.

Our

lead development program is AEROSURF

(lucinactant for inhalation), which is an investigational combination drug/device product that combines our KL

surfactant with our novel drug delivery technologies. We are developing AEROSURF to improve the management of respiratory distress syndrome (RDS) in premature infants born prior to

weeks gestational age who

may

not have fully developed natural lung surfactant and

may

require surfactant therapy to sustain life. Unfortunately, current FDA-approved surfactants must be administered using invasive endotracheal intubation and mechanical ventilation, each of which

may

result in serious respiratory conditions and other complications. To avoid the risks associated with surfactant administration, many premature infants are initially treated with noninvasive respiratory support, such as nasal continuous positive airway pressure (nCPAP), and then, if they do poorly, receive delayed surfactant therapy.

By enabling delivery of our aerosolized

surfactant using noninvasive methods, we believe that AEROSURF, if approved, will allow for earlier treatment of premature infants who currently receive delayed surfactant therapy, decrease the morbidities and complications currently associated with surfactant administration, and reduce the number of premature infants who are subjected to invasive intubation and delayed surfactant therapy as a result of nCPAP failure. By enabling administration of aerosolized KL

surfactant to premature infants receiving nCPAP without invasive intubation and mechanical ventilation, we believe that AEROSURF has the potential to address a serious unmet medical need and potentially provide transformative clinical and pharmacoeconomic benefits.

The drug product component of the AEROSURF product candidate is a lyophilized (freeze-dried) dosage form of our

surfactant drug product that was approved by the U.S. Food and Drug Administration (FDA) in

2012

under the name SURFAXIN

(lucinactant) Intratracheal Suspension for the prevention of RDS in premature infants at high risk for RDS. We ceased commercial and manufacturing activities for SURFAXIN in the

first

quarter of

2015

in order to focus our limited resources on advancing the AEROSURF clinical development program and our other aerosolized KL

surfactant product candidates. In addition, we own worldwide exclusive rights to our aerosol delivery system (ADS), the medical device component of our AEROSURF product candidate. The ADS is designed to generate an aerosolized KL

surfactant at consistent and reproducible volumes suitable to deliver therapeutic dosages in a reasonable period of time. We are currently developing a new version (NextGen) of ADS potentially for use in our remaining AEROSURF development activities and, if approved, initial commercial activities.

While we are focused primarily on AEROSURF, we

believe that our aerosolized KL

surfactant

may

be developed to address a broad range of serious respiratory conditions in children and adults.

We have supported and plan in the future to support potential opportunities and

third

party preclinical studies to explore the utility of our KL

surfactant to address such respiratory conditions as acute lung injury (ALI), including acute radiation exposure to the lung (acute pneumonitis and delayed lung injury), chemical-induced ALI, and influenza-induced ALI; as well as chronic rhinosinusitis, complications of certain major surgeries, mechanical ventilator-induced lung injury (often referred to as VILI), pneumonia, diseases involving mucociliary clearance disorders, such chronic obstructive pulmonary disease (COPD) and cystic fibrosis (CF). There can be no assurance however, that we will secure any additional capital needed to undertake such explorations, that we will undertake such explorations or that, even if we do, that we will be successful.

The reader is referred to, and encouraged to read in its entirety “Item

– Business – Company Overview” and “– Business Strategy,” in this Annual Report on Form

-K, which contains a discussion of our Business and Business Strategy, as well as information concerning our proprietary technologies and our current and planned KL

pipeline programs.

Note 2 - Basis of Presentation

12 Months Ended

Dec. 31, 2016

Basis of Accounting [Text Block]

Note

–

Basis of Presentation

The accompanying consolidate

d financial statements reflect a

-for-

reverse split of our common stock and a change in the number of shares of common stock authorized for issuance under our Amended and Restated Certificate of Incorporation, as amended, that was approved by our Board of Directors and stockholders and made effective on

January

22,

2016.

All share and per share information date herein that relates to our common stock prior to the effective date has been retroactively restated to reflect the reverse stock split and reduction in authorized shares.

Note 3 - Liquidity Risks and Management's Plans

12 Months Ended

Dec. 31, 2016

Liquidity Disclosures [Text Block]

Note

–

Liquidity Risks and Management

’s Plans

As of

December

31,

2016,

we had cash and cash equivalents of

$5.6

million, current liabilities

$13.4

million and

$25

million of long-term debt under a secured loan (Deerfield Loan) with affiliates of Deerfield Management, L.P. (Deerfield). The principal portion of the debt is payable in

two

equal installments in

February

2018

(subject to a potential

one

-year deferral if we have achieved a market capitalization of

$250

million) and

February

2019.

February

2017,

we completed a private placement offering for which we received net proceeds of approximately

$10.5

million, including

$1.6

million of non-cash consideration (

See,

" – Note

– Subsequent Events"). In addition, from

January

2017

through

March

23,

2017,

we completed registered offerings under our at-the-market equity sales program (ATM Program) with Stifel, Nicolaus & Company, Incorporated (Stifel) resulting in net proceeds to us of

$0.9

million (s

ee,

"Note

– Stockholders' Equity – At-the-Market Program"). Before any additional financings, including under our ATM Program or in connection with potential strategic transactions, we believe that we have sufficient cash resources available to support our development activities, business operations and debt service obligations through the planned completion of the AEROSURF phase

clinical trial and announcement of results in mid-year

2017.

We expect to continue to incur significant losses and require significant additional capital to advance our AEROSURF clinical development program, support our operations and meet our debt service obligations beyond mid-year

2017,

and we do not have sufficient existing cash and cash equivalents for at least the next year following the date that the financial statements are issued. These conditions raise substantial doubt about our ability to continue as a going concern within

one

year after the date that the financial statements are issued.

To alleviate the conditions that raise substantial doubt about our ability to continue as a going concern, management plans to raise additional capital through the following: (i) all or a combination of strategic transactions, including potential alliances and collaborations focused on markets outside the U.S., as well as potential combinations (including by merger or acquisition) or other corporate transactions; and (ii) through public or private equity offerings (including pursuant to the ATM Program with Stifel). If none of these alternatives is available, or if available, we are unable to raise sufficient capital through such transactions,

we will not have sufficient cash resources and liquidity to fund our business operations for at least the next year following the date that the financial statements are issued. Accordingly, management has concluded that substantial doubt exists with respect to our ability to continue as a going concern

through

one

year after the issuance of the accompanying financial statements

he accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business, and do not include any adjustments relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Our ability to secure the needed capital through equity financings and other similar transactio

ns is subject to regulatory and other restrictions (discussed below) and we cannot be certain that we will be able to raise a sufficient amount when needed, if at all, on favorable terms or otherwise. In the event that we cannot raise sufficient capital, we

may

be forced to limit or cease our development activities and consider other means of creating value for our stockholders, such as licensing development and/or commercialization of products that we otherwise might plan to develop ourselves. If we are unable to raise the required capital, we

may

be forced to curtail all of our activities and, ultimately, cease operations. Even if we are able to raise sufficient capital, such financings

may

only be available on unattractive terms, or result in significant dilution of stockholders’ interests and, in such event, the market price of our common stock

may

decline.

We believe that our ability to fund our activities in the near term will be highly dependent upon whether our phase

clinical trial is deemed a success and we achieve results that are sufficiently positive to support a strategic transaction and/or equity financing. Our clinical trials are subject to significant risks and uncertainties, such that there can be no assurance that we will be successful in completing the trial in mid-year

2017

as planned, or at all. If our clinical trial should be further delayed for any reason, we likely would be compelled to end the phase

clinical trial earlier than planned, which

may

potentially have a negative impact on the results of the trial.

Even if we are able to complete the phase

trial as planned, if the results of our clinical trial are inconclusive, or present an unacceptable benefit / risk profile due to suboptimal efficacy and / or safety profile, we

may

be unable to secure the additional capital that we will require to continue our development activities and operations, which could have a material adverse effect on our business.

Moreover, our ability to secure additional capital at a time when we would like or require

may

be affected by the following factors: (i)

our

2014

Universal Shelf on Form S-

will expire

June

12,

2017

and our ability to file a replacement shelf registration statement

may

depend in large part on whether our common stock continues to be listed on The NASDAQ Stock Market (“Nasdaq”), (ii) since the market value of our common stock held by non-affiliated persons (public float) is less than

$75

million, Form S-

includes a “limited offering” rule that limits the size of primary securities offerings that we

may

conduct in any

-month period to no more than

one

third

of our public float calculated based on a closing price of our common stock within

days of a transaction. Transactions under our ATM Program are subject to this limitation, (iii) in

May

2016,

we received a deficiency notice from Nasdaq that we are no longer in compliance with the minimum stockholders’ equity listing requirement. In

January

2017,

a Nasdaq Hearings Panel granted us a further extension through

May

15,

2017,

subject to certain conditions, to regain compliance with the Nasdaq listing requirements (

see,

“Nasdaq Deficiency Notice,” below). If we fail to regain compliance during this extension period, our common stock

may

be delisted from Nasdaq and the value and liquidity of our common stock

may

be adversely affected, (iv) our stockholders

may

not approve, as required under Nasdaq listing rules, a strategic transaction recommended by our Board that is valued at a discount to the then-current market value of our common stock and involves the issuance of greater than

20%

of our outstanding common stock, (v) our stockholders

may

not approve a potential stockholder proposal to increase the number of shares of common stock authorized under our Amended and Restated Certificate of Incorporation, as amended, which could impair our ability in the future to conduct equity financings or enter into certain strategic transactions; (vi)

our capital structure, which currently consists of common stock, convertible preferred stock, pre-funded warrants

and

warrants to purchase common stock, and

$25

million of debt,

may

make it difficult to conduct equity-based financings, and (vii)

negative conditions in the broader financial and geopolitical markets. In light of the foregoing restrictions on our ability to conduct primary offerings on Form S-

to be in a position to raise more than

one

third

the value of our public float, we will be required to seek other methods of completing primary offerings, including, for example, under a registration statement on Form S-

the preparation and maintenance of which would be more time-consuming and costly, and private placements, potentially with registration rights or priced at a discount to the market value of our stock, or other transactions, any of which could result in substantial equity dilution of stockholders’ interests.

In addition, we have from time to time collaborated with research organizations and universities to assess the potential utility of our

surfactant in studies funded in part through non-dilutive grants issued by U.S. Government-sponsored drug development programs, including grants in support of initiatives related to our AEROSURF clinical development program. We recently announced that we have been awarded a Phase II Small Business Innovation Research Grant (SBIR) grant valued at up to

$2.6

million from the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health (NIH) to support the AEROSURF

phase

clinical trial in premature infants

week gestational age. In

2016,

we received and expended

$0.9

million of this award. We also have received grants that have supported medical and biodefense-related initiatives under programs that encourage private sector development of medical countermeasures against chemical, biological, radiological and nuclear terrorism threat agents, and pandemic influenza, and provide a mechanism for federal acquisition of such countermeasures. In

June

2016,

we announced the results of a study funded by the NIH that KL

surfactant could potentially be an effective medical countermeasure to mitigate acute and chronic/late-phase radiation-induced lung injury (pneumonopathy) due to exposure from a nuclear accident or act of terrorism. In addition, in

February

2017

we announced the results of a study funded by the NIH that KL

surfactant could be a potential medical intervention to reduce morbidity and mortality associated with both seasonal and pandemic influenza pneumonia. Although there can be no assurance, we expect to pursue potential additional funding opportunities as they arise and expect that we

may

qualify for similar programs in the future.

If we fail in the future to make any required payment under the

Deerfield Loan or if we fail to comply with any commitments contained in the loan documents, Deerfield would be able to declare a default under the loan agreement, which could result in the acceleration of the payment obligations under all or a portion of our indebtedness. Since we have pledged substantially all of our assets to secure our obligations under the Deerfield Loan, a debt default would enable the lenders to foreclose on our assets securing the debt and could significantly diminish the market value and marketability of our common stock.

As of

December

31,

2016,

we had outstanding

2.9

million pre-funded warrants issued in a

July

2015

public offering, of which the entire exercise price was prepaid upon issuance. Upon exercise of the pre-funded warrants, we would issue shares to the holders and receive no additional proceeds. In addition, as of

December

31,

2016,

there were

million shares of common stock and

million shares of preferred stock authorized under our Amended and Restated Certificate of Incorporation, as amended, and approximately

40.7

million shares of common stock and

million shares of preferred stock available for issuance and not otherwise reserved.

There can be no assurance that our phase

clinical trial or other development program will be successful, that any products we develop will obtain necessary regulatory approval, that any approved product will be commercially viable, that our ATM Program will be available for future financings, or that we will be able to secure strategic alliances or obtain additional capital when needed on acceptable terms, if at all. Even if we succeed in securing strategic alliances, raising additional capital and developing and subsequently commercializing product candidates, we

may

never achieve sufficient sales revenue to achieve or maintain profitability.

Nasdaq Deficiency Notice

May

19,

2016,

we received a notification letter from the Staff of the Listings Qualifications Department of Nasdaq (Staff) notifying us that we are no longer in compliance with the minimum stockholders

’ equity requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule

5550(b)(1)

requires listed companies to maintain stockholders’ equity of at least

$2.5

million. In our Quarterly Report on Form

-Q for the quarter ended

March

31,

2016,

we reported stockholders’ deficit of

$5.0

million. The Staff noted that, as of

May

19,

2016,

we also did not meet either of the alternative compliance standards under Nasdaq Listing Rule

5550(b)

of (i) a market value of listed securities of at least

$35

million, or (ii) net income of

$500,000

from continuing operations. Nasdaq granted us an extension to regain compliance until

November

15,

2016.

We did not regain compliance by that date, and the Staff issued a written delisting notification that our common stock would be delisted. At that time, we filed an appeal and received a hearing with the Nasdaq Hearings Panel on

January

12,

2017.

The Nasdaq Hearings Panel determined to allow us continued listing on Nasdaq until

May

15,

2017,

while we work to regain compliance with all applicable criteria for continued listing on Nasdaq. During the extension, we are required to provide the Panel interim reports of our progress toward regaining compliance. If we fail to demonstrate a reasonable likelihood of regaining compliance on or before

May

15,

2017,

the Panel will issue a final delist determination and our stock will be delisted from trading on Nasdaq. We submitted our

first

status report on

February

17,

2017.

Any further appeal at that time would not stay the delisting of our stock from Nasdaq.

As of

December

31,

2016,

we had stockholders

’ deficit of

$28.8

million and a market value of listed securities of

$10.9

million, and as of

March

23,

2017,

we remained out of compliance with the Nasdaq Listing Rules. There can be no assurance that we will be able to regain compliance with either the minimum stockholders’ equity rule or the minimum value of listed securities rule within the extension period, or at all.

Note 4 - Accounting Policies and Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2016

Significant Accounting Policies [Text Block]

Note

–

Accounting Policies and Recent Accounting Pronouncements

The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles

generally accepted in the U. S.

Consolidation

The consolidated financial statements include all of the accounts of

Windtree Therapeutics, Inc. and its inactive subsidiary, Discovery Laboratories, Inc. (formerly known as Acute Therapeutics, Inc.). All intercompany transactions and balances have been eliminated in consolidation.

Use of estimates

The preparation of financial statements, in conformity with accounting principles generally accepted in the

U. S., requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

Cash and cash equivalents are held in U.S. banks and consist of liquid investments and money market funds with a maturity from date of purchase of

days or less that are readily convertible into cash

Fair value of financial instruments

Our financial instruments consist principally of cash and cash equivalents and restricted cash. The fair values of our cash equivalents are based on quoted market prices. The carrying amount of cash equivalents is equal to their respective fair values at

December

31,

2016

and

2015,

respectively. Warrants classified as liabilities are recorded at their fair market value. Other financial instruments, including accounts payable and accrued expenses, are carried at cost, which we believe approximates fair value.

Property and equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets (generally

three

ten

years). Leasehold improvements are amortized over the shorter of the estimated useful lives or the remaining term of the lease. Repairs and maintenance costs are charged to expense as incurred.

Restricted cash

Restricted cash consists of a certificate of deposit held by our bank as collateral for a letter of credit in the same notional amount held by our landlord

(as amended

April

29,

2016)

to secure our obligations under our Lease Agreement dated

May

26,

2004

for our headquarters location in Warrington, Pennsylvania (

See,

" – Note

– Commitments," for further discussion on our leases).

Long-lived assets

Our long-lived assets, primarily consisting of equipment, are reviewed for impairment when events or changes in circumstances indicate the carrying amount of an asset

may

not be recoverable, or its estimated useful life has changed significantly. When the undiscounted cash flows of an asset are less than its carrying value, an impairment is recorded and the asset is written down to estimated value. No impairment was recorded during the years ended

December

31,

201

and

2015

as management believes there are no circumstances that indicate the carrying amount of the assets will not be recoverable. In the

second

quarter of

2015,

we closed the Totowa Facility and sold manufacturing equipment for total cash proceeds of

$0.3

million, resulting in a

$0.1

million loss from the sale and disposal of these assets.

Grant

evenue

We recognize grant revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collecta

bility is reasonably assured.

Research and development

account for research and development expense by the following categories: (a) product development and manufacturing, (b) medical and regulatory operations, and (c) direct preclinical and clinical development programs. Research and development expense includes personnel, facilities, manufacturing and quality operations, pharmaceutical and device development, research, clinical, regulatory, other preclinical and clinical activities and medical affairs. Research and development costs are charged to operations as incurred

in accordance with Accounting Standards Codification (ASC) Topic

730,

Research and Development

Stock-based compensation

Stock-based compensation is accounted for under the fair value recognition provisions of ASC Topic

718

Stock Compensation

(ASC Topic

718).

See

, “ – Note

– Stock Options and Stock-based Employee Compensation," for a detailed description of our recognition of stock-based compensation expense. The fair value of stock option grants is recognized evenly over the vesting period of the options or over the period between the grant date and the time the option becomes non-forfeitable by the employee, whichever is shorter.

Warrant accounting

We account for common stock warrants in accordance with applicable accounting guidance provided in ASC Topic

815

Derivatives and Hedging – Contracts in

Entity’s Own Equity

(ASC Topic

815),

as either derivative liabilities or as equity instruments depending on the specific terms of the warrant agreement. We classify derivative warrant liabilities on the consolidated balance sheet as current liabilities, which are revalued at each balance sheet date subsequent to the initial issuance. Depending on the terms of a warrant agreement, we use applicable valuation pricing models to value the related derivative warrant liabilities. Changes in the fair value of the warrants are reflected in the consolidated statement of operations as “Change in fair value of common stock warrant liability.”

See,

“ – Note

– Common Stock Warrant Liability,” for a detailed description of our accounting for derivative warrant liabilities.

Collaborative arrangements

We account for

collaborative arrangements in accordance with applicable accounting guidance provided in ASC Topic

808,

Collaborative Arrangements

See,

“ – Note

–

llaboration, Licensing and Research Funding Agreements – Battelle Memorial Institute,” for a description of our accounting for the Battelle collaboration Agreement.

Income taxes

We account for income taxes in accordance with ASC Topic

740,

Accounting for Income Taxes

, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities.

We use a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

Because we have never realized a profit, management has fully reserved the net deferred tax asset since realization is not assured.

Net loss per common share

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period.

Diluted net loss per common share is computed by giving effect to all potentially dilutive securities outstanding for the period. For the years ended

December

31,

2016

and

2015,

the number of shares of common stock potentially issuable upon the exercise of certain stock options and warrants was

9.4

million and

9.1

million shares, respectively. As of

December

31,

2016

and

2015,

all potentially dilutive securities were anti-dilutive and therefore have been excluded from the computation of diluted net loss per share.

In accordance with A

SC Topic

260,

Earnings per Share,

when calculating diluted net loss per common share, a gain associated with the decrease in the fair value of warrants classified as derivative liabilities results in an adjustment to the net loss; and the dilutive impact of the assumed exercise of these warrants results in an adjustment to the weighted average common shares outstanding. We utilize the treasury stock method to calculate the dilutive impact of the assumed exercise of warrants classified as derivative liabilities. For the year ended

December

31,

2016

and

2015,

the effect of the adjustments for warrants classified as derivative liabilities was anti-dilutive.

The table below provides information pertaining to the calculation of diluted net loss per common share for the periods presented:

	December 31,
(in thousands)	2016			2015

Numerator:
Net loss as reported	$	(39,490	)	$	(55,170	)
Less: income from change in fair value of warrant liability		(223	)		(851	)
Numerator for diluted net loss per common share	$	(39,713	)	$	(56,021	)

Denominator:
Basic weighted average common shares outstanding		8,328			6,967
Dilutive common shares from assumed warrant exercises		-			-
Diluted weighted average common shares outstanding		8,328			6,967

We do not have any components of other comprehensive income (loss).

Concentration of Suppliers

We currently obtain the active pharmaceutical ingredients (APIs) of our

surfactant drug products from single-source suppliers. In addition, we rely on a number of

third

-party institutions and laboratories that perform various studies as well as quality control release and stability testing and other activities related to our KL

surfactant development and manufacturing activities. At the present time, several of these laboratories are single-source providers. The loss of

one

or more of our single-source suppliers or testing laboratories could have a material adverse effect upon our operations.

Business segments

We currently operate in

one

business segment, which is the research and development of products focused on surfactant therapies for respiratory disorders and diseases, and the manufacture and commercial sales of approved products. We are managed and operated as

one

business. A single management team that reports to the Chief Executive Officer comprehensively manages the entire business. We do not operate separate lines of business with respect to our product candidates.

Recent Accounting Pronouncements

May

2014,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)

2014

09,

Revenue from Contracts with Customers

(Topic

606)

, which requires an entity to recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles (GAAP) when it becomes effective. The new standard is effective for us in the annual period ending

December

31,

2017,

including interim periods within that annual period. Early application is not permitted. We are evaluating the effect that ASU

2014

will have on our financial statements and related disclosures. The standard permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method nor determined the effect of the standard on our financial reporting

August

2014,

the FASB issued ASU

2014

15,

Presentation of Financial Statements

–

Going Concern

(Subtopic

205

40):

Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern

, which defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within

one

year after the date that the financial statements are issued (or are available to be issued). ASU

2014

is effective for annual reporting periods ending after

December

15,

2016,

and for annual and interim periods thereafter. We have adopted ASU

2014

effective

December

31,

2016

. Management has concluded that substantial doubt exists with respect to our ability to continue as a going concern through

one

year after the issuance of the accompanying financial statements.

See

, “ – Note

– Liquidity Risks and Management's Plans.

February

2016,

the FASB issued ASU

2016

02,

Leases (Topic

482)

. This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to current accounting standards. The ASU is effective for the annual period ending

December

31,

2019

and interim periods thereafter. Early adoption is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently evaluating the effect that ASU

2016

may

have on our consolidated financial statements and related disclosures.

March

2016,

the FASB issued ASU

2016

09,

Compensation - Stock Compensation (Topic

718)

. This update addresses the income tax effects of stock-based payments and eliminates the windfall pool concept, as all of the tax effects related to stock-based payments will now be recorded at settlement (or expiration) through the income statement. The new guidance also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for stock-based payment awards. Forfeitures can be estimated or recognized when they occur. The standard is effective for annual periods beginning after

December

15,

2016

and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustment reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the effect that ASU

2016

may

have on our consolidated financial statements and related disclosures.

November

2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

230):

Restricted Cash

. The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. The standard is effective for annual periods beginning after

December

15,

2017

2016

may

have on our consolidated financial statements and related disclosures.

Note 5 - Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Text Block]

Note

–

Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on

three

levels of inputs, of which the

first

two

are considered observable and the last unobservable, as follows:

●

Level

– Quoted prices in active markets for identical assets and liabilities.

●

Level

– Inputs other than Level

that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

●

Level

– Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are categorized in the table below as of

December

31,

2016

and

2015:

	Fair Value		Fair value measurement using
	December 31,
(in thousands)	2016		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	5,588	$	5,588	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	5,813	$	5,813	$	-	$	-
Liabilities:
Common stock warrants	$	-	$	-	$	-	$	-

	Fair Value		Fair value measurement using
	December 31,
(in thousands)	2015		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	38,722	$	38,722	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	38,947	$	38,947	$	-	$	-
Liabilities:
Common stock warrants	$	223	$	-	$	-	$	223

The following table summarizes changes in the fair value of common stock warrant liability measured on a recurring basis using Level

inputs for

2015.

For

2016,

the change in fair value of common stock warrant liability represents the write-off of the remaining liability upon expiration of the underlying warrants in

February

2016.

(in thousands)

Balance at January 1, 2015	$	1,258
Exercise of warrants (1)		(184	)
Change in fair value of common stock warrant liability		(851	)
Balance at December 31, 2015	$	223
Change in fair value of common stock warrant liability		(223	)
Balance at December 31, 2016	$	-

(1)

See "

–

Note

–

Common Stock Warrant Liability"

The significant unobservable inputs used in the fair value measurement of the common stock warrants measured on a recurring basis are the historical volatility of our common stock market price, expected term of the applicable warrants, and the risk-free interest rate based on the U.S. Treasury yield curve in effect at the measurement date. In addition to the significant unobservable inputs noted above, certain fair value measurements also take into account an assumption of the likelihood and timing of the occurrence of an event that would result in an adjustment to the exercise price in accordance with the anti-dilutive pricing provisions in

certain of the warrants. Any significant increases or decreases in the unobservable inputs, with the exception of the risk-free interest rate,

may

result in significantly higher or lower fair value measurements.

Significant Unobservable Input	December 31,
Assumptions of Level 3 Valuations	2016		2015

Historical volatility		-		159	%
Expected term (in years)		-		0.2
Risk-free interest rate		-		0.15	%

Fair Value of Long-Term Debt

December

31,

2016

, the estimated fair value of the Deerfield Loan (

see,

" - Note

“Long-term Debt”) was

$21.4

million compared to a carrying value of

$25.0

million. The estimated fair value of the Deerfield Loan is based on discounting the future contractual cash flows to the present value at the valuation date. This analysis utilizes certain Level

unobservable inputs, including current cost of capital. Considerable judgment is required to interpret market data and to develop estimates of fair value. The estimates presented are not necessarily indicative of amounts we could realize in a current market exchange. The use of alternative market assumptions and estimation methodologies could have a material effect on these estimates of fair value.

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

Note 6 - Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment Disclosure [Text Block]

Note

–

Property and Equipment

Property and equipment comprises

the following:

	December 31,
(in thousands)	2016			2015

Manufacturing, laboratory & office equipment	$	4,940		$	6,290
Furniture & fixtures		615			778
Leasehold improvements		2,459			2,437
Subtotal		8,014			9,505
Accumulated depreciation and amortization		(6,960	)		(8,466	)
Property and equipment, net	$	1,054		$	1,039

Depreciation expense on property and equipment for the years ended

December

31,

2016

and

2015

was

$0.3

million and

$0.7

million, respectively.

Note 7 - Collaborative Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2016

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note

–

Collaboration Payable and

Accrued Expenses

Collaboration payable represents amounts due to

Battelle under a collaboration agreement related to the development of a new version of our ADS (

See

, Note

– Collaboration, Licensing and Research Funding Agreements). Under the terms of the agreement, collaboration invoices have

-month terms and begin accruing interest at

12%

per annum after

days from the date of invoice issuance. As of

December

31,

2016,

collaboration payable was

$4.0

million, including

$0.3

million of accrued interest. As of

December

31,

2015,

collaboration payable was

$3.3

million, including

$0.1

million of accrued interest.

Accrued expenses comprise the following:

	December 31,
(in thousands)	2016		2015

Salaries, bonus & benefits	$	1,309	$	2,387
Research and development		5,174		2,867
Manufacturing operations		454		1,097
Professional fees		305		326
Other		369		518
Total accrued expenses	$	7,611	$	7,195

Note 8 - Common Stock Warrant Liability

12 Months Ended

Dec. 31, 2016

Common Stock Warrant Liability [Text Block]

Note

–

Common Stock Warrant Liability

We account for common stock warrants in accordance with applicable accounting guidance provided in ASC Topic

815

either as derivative liabilities or as equity instruments depending on the specific terms of the warrant agreement.

February

22,

2011,

we issued registered warrants

(2011

Warrants) that expired on

February

22,

2016

and had a fair value at issuance of

$8.0

million. These warrants contained anti-dilution provisions and were classified as derivative liabilities and reported, at each balance sheet date until their expiration, at estimated fair value determined using a trinomial pricing model.

No war

rants were exercised during the year ended

December

31,

2016.

During the year ended

December,

31,

2015,

holders of the

2011

Warrants exercised warrants to purchase

51,193

shares of our common stock at an exercise price of

$2.66

per share, resulting in proceeds to us of

$0.1

million.

Changes in the estimated fair value of warrants classified as derivative liabilities are reported in the accompanying

Consolidated Statements of Operations as the “Change in fair value of common stock warrants.” The change for the year ended

December

31,

2016

represents the write-off of the remaining liability upon expiration of the underlying warrants in

February

2016.

Note 9 - Long-term Debt

12 Months Ended

Dec. 31, 2016

Long-term Debt [Text Block]

Note

–

Long-term Debt

ong-term debt consists solely of amounts due under a loan (Deerfield Loan) with affiliates of Deerfield Management Company, L.P. (Deerfield) for the periods presented:

	Years Ended December 31,
(in thousands)	2016		2015

Deerfield Loan	$	25,000	$	25,000

Under the terms of the

Deerfield loan agreement, Deerfield made

two

advances, the

first

upon execution of the agreement in

February

2013

in the amount of

$10

million, and the

second

upon the

first

commercial sale of SURFAXIN in

December

2013

in the amount of

$20

million. In connection with each advance, we paid Deerfield a transaction fee equal to

1.5%

of the amount disbursed. The outstanding principal accrued interest at a rate of

8.75%,

payable quarterly in cash. The Deerfield Loan agreement also contains customary terms and conditions, representations and warranties and affirmative and negative covenants, including restrictions on our ability to incur additional indebtedness and grant additional liens on our assets, but it does not require us to meet minimum financial and revenue performance covenants. In addition, all amounts outstanding under the Deerfield Loan

may

become immediately due and payable upon (i) an “Event of Default,” as defined in the Deerfield Loan agreement, including, among other things, the consummation of a change of control transaction or the sale of more than

50%

of our assets (a Major Transaction).

Upon

execution of the Deerfield Loan, we issued to Deerfield warrants to purchase approximately

0.2

million shares of our common stock at an exercise price of

$39.34

per share. Upon receipt of the

second

advance in

December

2013,

we issued to Deerfield warrants to purchase an additional

0.3

million shares of our common stock at an exercise price of

$39.34

per share (together with the warrants issued in connection with the execution of the agreement, the Deerfield Warrants). The number of shares of common stock into which the Deerfield Warrants are exercisable and the exercise price will be, and have been, adjusted to reflect any stock splits, recapitalizations or similar adjustments in the number of outstanding shares of common stock. The Deerfield Warrants will expire on the

sixth

anniversary of the Deerfield Loan agreement,

February

13,

2019,

and contain limitations on the ability of a holder to exercise the Deerfield Warrants if after such exercise, the holder would beneficially own more than

9.985%

of the total number of shares of our common stock then issued and outstanding. The Deerfield Warrants

may

be exercised in whole or in part either for cash or on a cashless basis. In connection with a Major Transaction, as defined in the Deerfield Warrants, to the extent of consideration payable to stockholders in cash in connection with such Major Transaction, the holder

may

have the option to redeem the Deerfield Warrants or that portion of the Deerfield Warrants for cash in an amount equal to the Black-Scholes value (as defined in the Deerfield Warrants) of the Deerfield Warrants or that portion of the Deerfield Warrants redeemed. In addition, in connection with a Major Transaction, to the extent of any consideration payable to stockholders in securities, or in the event of an Event of Default, the holder

may

have the option to exercise the Deerfield Warrants and receive therefor that number of shares of common stock that equals the Black-Scholes value of the Deerfield Warrants or that portion of the Deerfield Warrants exercised. Prior to a holder exercising the Deerfield Warrants for shares in such transactions, the Company

may

elect to terminate the Deerfield Warrants or that portion of the Deerfield Warrants being exercised and pay the holder cash in an amount equal to the Black-Scholes value of the Deerfield Warrants.

initially recorded the loan as long-term debt at its face value of

$30.0

million less debt discounts and issuance costs consisting of (i)

$11.7

million fair value of the Deerfield Warrants issued upon the

first

advance and the

second

advance

(0.5

million warrants in total), and (ii) a

$450,000

transaction fee. The discount was being accreted to the

$30

million loan over its term using the effective interest method. The Deerfield Warrants are derivatives that qualify for an exemption from liability accounting as provided for in ASC Topic

815

and have been classified as equity.

The fair value of the

Deerfield Warrants at issuance was calculated using the Black-Scholes option-pricing model. The significant Level

unobservable inputs used in valuing the Deerfield Warrants are the historical volatility of our common stock market price, expected term of the warrants, and the risk-free interest rate based on the U.S. Treasury yield curve in effect at the measurement date. Any significant increases or decreases in the unobservable inputs, with the exception of the risk-free interest rate, would have resulted in a significantly higher or lower fair value measurement.

Significant Unobservable Input Assumptions of Level 3 Valuations

Historical volatility		101%
Expected term (in years)	5.2	–	6.0
Risk-free interest rate	1.2%	–	1.5%

July

2015,

we entered into an amendment to our Deerfield Loan agreement and

related notes (Deerfield Notes) to better align our Deerfield Loan principal repayment obligations with anticipated milestones under our clinical development program for AEROSURF. Under the terms of the amendment, (i) upon execution, we prepaid in cash

$2.5

million of the principal amounts outstanding, (ii) on

July

22,

2015,

upon the occurrence of the

July

2015

public offering, we prepaid in cash an additional

$2.5

million of the principal amounts outstanding, (iii) the principal installment originally due in

February

2017

was eliminated and (iv) each of the principal payments due in

February

2018

and

February

2019

was increased to

$12.5

million. We also paid Deerfield’s expenses (including reasonable counsel fees and expenses) incurred in connection with the amendment. Under the Deerfield Loan agreement, the

$12.5

million principal installment due in

February

2018

may

be deferred

one

year if we achieve the market capitalization milestone set forth in the Deerfield Loan agreement.

July

22,

2015,

we entered into a

second

amendment to our Deerfield Loan

agreement and Deerfield Notes, pursuant to which (a) upon closing the

July

2015

public offering on

July

22,

2015,

we prepaid in cash

$2.5

million of the principal amounts outstanding, as contemplated by the

first

amendment, and (b) Deerfield purchased and accepted

million Series A and Series B units offered in our

July

2015

public offering in satisfaction of

million of future interest payments due under the Deerfield Notes. In addition, (i) we paid in cash when due on

September

30,

2015,

all accrued and unpaid interest under the Deerfield Notes for the period from

June

30,

2015

July

22,

2015

at the original rate of

8.75%;

(ii) Deerfield agreed to apply the

million prepaid interest accruing from and after

July

23,

2015,

as and when such payments are due and payable, as follows;

first

, to interest accruing on the

$12.5

million principal installment due on

February

13,

2019,

and

second

, to interest accruing on the

$12.5

million principal installment due on

February

13,

2018,

until fully allocated, which is scheduled to occur at the end of the

second

quarter of

2016;

(iii) after the full allocation of the

million interest prepayment, any remaining interest due on the principal amount of the Deerfield Notes will accrue at a rate of

8.25%

per annum; and (iv) no credit will be given with respect to prepaid interest on principal under the Deerfield Notes that is prepaid, in whole or in part, except for a prepayment at our election or a prepayment required under the Deerfield Loan agreement in connection with a Major Transaction that qualifies as a “Qualified Major Transaction.” A “Qualified Major Transaction” means a change of control transaction (as defined in the Deerfield Warrants), in which (i) we are not the surviving entity and (ii) our common stock valuation (as defined in the Deerfield Warrants) immediately prior to the change of control transaction equals or exceeds

$100

million. In addition, we paid Deerfield’s expenses (including reasonable counsel fees and expenses) incurred in connection with the

second

amendment.

The restructuring of the Deerfield Loan was accounted for as an extinguishment of debt in accordance with ASC Topic

470,

Debt – Modifications and Extinguishments

, and as a result, we incurred an

$11.8

million non-cash loss on debt extinguishment for the year ended

December

31,

2015

consisting of the difference between the reacquisition price of the Deerfield Loan and the net carrying amount of the extinguished Deerfield Loan, which includes

$4.1

million in fair value of the Series A and Series B warrants issued to Deerfield as part of the

million of Series A and Series B units Deerfield agreed to purchase and accept in our

July

2015

public offering in satisfaction of

million of future interest payments due under the Deerfield Notes.

The following amounts comprise the

Deerfield Loan interest expense for the periods presented:

	Years Ended December 31,
(in thousands)	2016		2015

Amortization of prepaid interest expense	$	1,710	$	971
Cash interest expense		450		1,451
Non-cash amortization of debt discount		-		1,287
Debt discount write-off		-		707
Amortization of debt costs		-		12
Write-off of debt costs		-		66
Total interest expense	$	2,160	$	4,494

Amortization of prepaid interest expense represents non-cash amortization of

million of Series A

Units and Series B units that Deerfield purchased in our

July

2015

public offering and accepted in satisfaction of

million of future interest payments calculated at an interest rate of

8.75%

under the Deerfield Notes. Cash interest expense represents interest at an annual rate of

8.25%

and

8.75%,

respectively, in

2016

and

2015

on the outstanding principal amount for the period, paid in cash on a quarterly basis. Non-cash amortization of debt discount represents the amortization of transaction fees and the fair value of the Deerfield Warrants prior to the

second

amendment to the Deerfield Loan. Debt discount write-off represents the proportional write-off of unamortized debt discount at the time of a

$2.5

million prepayment of principal amount outstanding under the Deerfield Loan.

Note 10 - Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note Disclosure [Text Block]

Note

–

Stockholders

’ Equity

Registered Public Offerings

July

22,

2015,

we completed a registered public offering of

1,791,667

Series A units and

3,000,000

Series B units each at a price per unit of

$8.40,

resulting in gross proceeds of

$40.25

million

($37.6

million net after underwriting discount and expenses), including the exercise in full by the underwriters of their option to purchase up to an additional

625,000

Series A units at a price per unit of

$8.40

to cover over-allotments. The proceeds included

$5.0

million in non-cash consideration from Deerfield in the form of a reduction in future interest payments due under the Deerfield Loan (

see,

“ – Note

– Long-term Debt”). Each Series A unit consists of

one

share of common stock and a Series A warrant to purchase

one

share of common stock at an exercise price of

$9.80

per share. Each Series B unit consists of a fully paid pre-funded Series B warrant to purchase

one

share of common stock at an exercise price of

$8.40

per share, and a Series B warrant to purchase

one

share of common stock at an exercise price of

$9.80

per share. The shares of common stock and warrants were immediately separable such that no units were issued. The warrants are exercisable immediately at the election of the holder for cash or through a net cashless exercise, provided that a holder

may

not exercise a warrant to the extent that after giving effect to such exercise, such holder would beneficially own in excess of

9.99%

(or

4.99%

may

be elected by such holder) of the shares of our common stock outstanding immediately after such exercise. All warrants will expire on the

seventh

anniversary of the issue date. The net proceeds will be used primarily (i) to advance the AEROSURF development program, and (ii) for general corporate purposes. The offering was made pursuant to a preliminary prospectus supplement dated

July

16,

2015

to the

2014

Universal Shelf.

At-the-Market Program (ATM Program)

Stifel ATM Program

February

11,

2013,

we entered into an At-the-Market Equity Sales Agreement (ATM Agreement) with Stifel, Nicolaus & Company, Incorporated (Stifel), under which Stifel, as our exclusive agent, at our discretion and at such times that we

may

determine from time to time,

may

sell over a

three

-year period up to a maximum of

$25,000,000

of shares of our common stock (ATM Program). We are not required to sell any shares at any time during the term of the ATM Program.

If we issue a sale notice to Stifel, we

may

designate the minimum price per share at which

may

be sold and the maximum number of shares that Stifel is directed to sell during any selling period. As a result, prices are expected to vary as between purchasers and during the term of the offering. Stifel

may

sell the shares by any method deemed to be an “at-the-market” equity offering as defined in Rule

415

promulgated under the Securities Act of

1933,

as amended, which

may

include ordinary brokers’ transactions on The Nasdaq Capital Market

, or otherwise at market prices prevailing at the time of sale or prices related to such prevailing market prices, or as otherwise agreed by Stifel and us. Either party

may

suspend the offering under the ATM Agreement by notice to the other party.

The ATM Agreement

, as amended on

February

11,

2016,

will terminate upon the earliest of:

(1)

the sale of all shares subject to the ATM Agreement,

(2)

February

11,

2019

(3)

the termination of the ATM Agreement in accordance with its terms. Either party

may

terminate the ATM Agreement at any time upon written notification to the other party in accordance with the ATM Agreement, and upon such termination, the offering will terminate.

We agreed to pay Stifel a commission equal to

3.0%

of the gross sales price of any

shares sold pursuant to the ATM Agreement. With the exception of expenses related to the shares, Stifel will be responsible for all of its own costs and expenses incurred in connection with the offering.

During the

year ended

December

31,

2016,

we completed offerings of our common stock under our ATM Program of

360,263

shares, resulting in aggregate gross and net proceeds to us of approximately

$0.7

million.

In addition, from

January

2017

through

March

23,

2017,

we completed registered offerings under our ATM Program, resulting in aggregate gross and net proceeds to us of approximately

$0.9

million.

As of

December

31,

2016,

approximately

$22.3

million remained available under the ATM Program, subject to certain current limitations under our

2014

Universal Shelf as described in Note

– Liquidity Risks and Management’s Plans.

401(k)

Plan Employer Match

We have a voluntary

401(k)

savings plan

(401(k)

Plan) covering eligible employees that allows for periodic discretionary company matches equal to a percentage of each participant

’s contributions (up to the maximum deduction allowed, including “catch up” amounts). We currently provide for the company match by issuing shares of common stock that are registered pursuant to a registration statement on Form S-

filed with the U.S. Securities and Exchange Commission (SEC). For the years ended

December

31,

2016

and

2015,

the match resulted in the issuance of

168,753

and

94,114

shares of common stock, respectively. Expenses associated with the

401(k)

match for the years ended

December

31,

2016

and

2015

were

$0.3

million and

$0.5

million, respectively.

Common Shares Reserved for Future Issuance

Common shares reserved for potential future issuance upon exercise of warrants

The chart below summarizes shares of our common stock reserved for future issuance upon the exercise of warrants:

	December 31,						Expiration
(in thousands, except price per share data)	2016		2015		Exercise Price		Date

Battelle - 2014 collaboration agreement (1)		107		107	$	70.00	10/10/2024
Investors - July 2015 financing		4,792		4,792	$	9.80	7/22/2022
Investors - July 2015 financing (prefunded)		2,857		2,857	$	-	7/22/2022
Deerfield - 2013 loan		500		500	$	39.34	2/13/2019
Former employee		-		2	$	44.80	3/18/2016
Investors - February 2011 financing		-		274	$	2.66	2/22/2016
Total		8,256		8,532

(1)

See

, “ – Note

–

llaboration, Licensing and Research Funding Agreements"

for further details on the Battelle collaboration agreement

Common shares reserved for potential future issuance upon exercise of stock options or granting of additional equity incentive awards

January

21,

2016,

at a Special Meeting of Stockholders, our stockholders

authorized the issuance of an additional

1.1

million shares under the

2011

Long-Term Incentive Plan, which shares were registered on Form S-

January

27,

2016.

As of

December

31,

2016

and

2015,

we had

1.0

million and

0.4

million shares, respectively, available for potential future issuance under the

2011

Long-Term Incentive Plan (the

2011

Plan).

Common shares reserved for potential future issuance under our

401(k)

Plan

As of

December

31,

2016

and

2015,

we had

167,372

and

4,567

common shares, respectively, reserved for potential future issuance under the

401(k)

Plan. On

March

2016,

the Board of Directors approved the issuance of

300,000

shares of common stock that

may

be issued pursuant to our

401(k)

Plan. These shares were registered on Form S-

March

29,

2016.

October

27,

2015

the Board of Directors approved the issuance of

78,571

shares of common stock that

may

be issued pursuant to our

401(k)

Plan. These shares were registered on Form S-

January

2016.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6521494

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Note 11 - Stock Options and Stock-based Employee Compensation

12 Months Ended

Dec. 31, 2016

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

Note

–

Stock Options and Stock-based Employee Compensation

Long-Term Incentive Plans

We have

the

2011

Plan that provides for the grant of long-term equity and cash incentive compensation awards and replaced a

2007

Long-Term Incentive Plan (the

2007

Plan). Awards outstanding under the

2007

and an earlier

1998

Plan (expired) will continue to be governed by the terms of the plans and award agreements under which they were granted.

Under the

2011

Plan, we

may

grant awards for up to

2.0

million shares of our common stock. Additionally, any shares returnable to the

2007

Plan as a result of cancellations, expirations and forfeitures will be returned to, and become available for issuance under, the

2011

Plan. Shares returnable to the

1998

Plan as a result of cancellations, expirations and forfeitures will not become available for issuance under the

1998

Plan or the

2011

Plan. Awards under the Plan

may

include stock options, stock appreciation rights (SARs), restricted stock awards (RSAs), restricted stock units, other performance and stock-based awards, and dividend equivalents.

An administrative committee (the Committee

– currently the Compensation Committee of the Board of Directors) or Committee delegates

may

determine the types, the number of shares covered by, and the terms and conditions of, such awards. Eligible participants

may

include any of our employees, directors, advisors or consultants.

Stock options and

restricted stock units (RSUs) outstanding and available for future issuance are as follows:

	December 31,
(in thousands)	2016		2015

Stock Options and RSUs Outstanding
2011 Plan		942		493
2007 Plan		12		17
1998 Plan		1		12
Non-Plan		205		-
Total Outstanding		1,160		522

Available for Future Grants under 2011 Plan		1,042		420

No SARs, RSAs, other performance and stock-based awards, or dividend equivalents have been granted under the

2011

Plan.

Although individual grants

may

vary, option awards generally are exercisable upon vesting, vest

in a series of

three

successive, equal installments beginning with the

first

anniversary of the grant date

, and have a

-year term. Non-Plan stock options outstanding

are in connection with the hiring of our Chief Executive Officer, Mr. Fraser, on

February

2016.

Mr. Fraser was awarded an inducement grant in accordance with Nasdaq Listing Rule

5635(c)(4)

and this inducement grant is exercisable upon vesting, vests in a series of

three

successive, equal installments beginning with the

first

anniversary of the grant date, and has a

-year term.

A summary of activity under our long-term incentive plans is presented below:

(in thousands, except for weighted-average data)

Stock Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In Yrs)

Outstanding at January 1, 2016		517		$	51.35
Granted		773			2.10
Forfeited or expired		(148	)		77.14
Outstanding at December 31, 2016		1,142		$	14.66		8.0

Vested and exercisable at December 31, 2016		301		$	44.04		5.1

Vested and expected to vest at December 31, 2016		1,037		$	14.81		8.0

(in thousands, except for weighted-average data)

Restricted Stock Units	Shares			Weighted- Average Grant Date Fair Value

Unvested at January 1 2016		5		$	6.72
Awarded		17			1.84
Vested		(5	)		6.72
Unvested at December 31, 2016		17		$	1.84

Based upon application of the Black-Scholes option-pricing formula described below, the weighted-average grant-date fair value of options granted during the years ended

December

31,

2016

and

2015

was

$1.39

and

$10.48,

respectively. The weighted-average grant-date fair value of RSUs granted during the years ended

December

31,

2016

and

2015

was

$1.84

and

$6.72,

respectively. The total intrinsic value of options outstanding, vested, and exercisable as of

December

31,

2016

are each

$0.

Stock-Based Compensation

We recognized stock-based compensation expense in accordance ASC Topic

718

for the years ended

December

31,

2016

and

2015

$1.4

million and

$1.7

million, respectively.

Stock-based compensation expense was classified as follows:

	December 31,
(in thousands)	2016		2015

Research and development	$	614	$	642
Selling, general and administrative		809		1,054
Total	$	1,423	$	1,696

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula that uses assumptions noted in the following table. Expected volatilities are based upon the historical volatility of our common stock and other factors. We also use historical data and other factors to estimate option exercises, employee terminations and forfeiture rates. The risk-free interest rates are based upon the U.S. Treasury yield curve in effect at the time of the grant.

	December 31,
	2016			2015

Weighted average expected volatility		78	%		83	%
Weighted average expected term (years)		5.7			5.5
Weighted average risk-free interest rate		1.39	%		1.50	%
Expected dividends		-			-

The total fair value of the underlying shares of the options vested during

2016

and

2015

equals

$1.9

million and

$2.7

million, respectively. As of

December

31,

2016,

there was

$1.1

million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the

2011

Plan. That cost is expected to be recognized over a weighted-average vesting period of

1.9

years.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Note 12 - Collaboration, Licensing and Research Funding Agreements

12 Months Ended

Dec. 31, 2016

Corporate Partnership, Licensing and Research Funding Agreements [Text Block]

Note

–

llaboration

, Licensing and Research Funding Agreements

Collaboration

Agreement

Battelle Memorial Institute

October

2014,

we entered into a collaboration agreement with Battelle providing for the development of a new version (NextGen) of our ADS potentially for use in our remaining AEROSURF development activities and, if approved, initial commercial activities. Under our agreement, we and Battelle are executing a development plan to design, develop, and complete the testing, verification, and documentation of the NextGen ADS, with a sharing of development costs. These costs are recognized in research and development expense as incurred and were

$2.9

million and

$3.1

million for the years ended

December

31,

2016

and

2015,

respectively.

In connection with the collaboration agreement, we issued to Battelle

two

warrants to purchase shares of our common stock, each having an exercise price of

$70.00

per share and a term of

years, subject to earlier termination under certain circumstances set forth therein, including (i) a warrant to purchase up to

71,429

shares of our common stock, exercisable upon successful completion by Battelle of development activities described above (Initial Warrant), and (ii) a warrant to purchase up to

35,714

shares of our common stock (Additional Warrant; and together with the Initial Warrant, the Battelle Warrants), exercisable if and only if Battelle successfully completes the development activities no later than

November

15,

2016,

which date was adjusted, and

may

be further adjusted, as provided in the Collaboration Agreement. We and Battelle have agreed to execute a registration rights agreement, which has not been executed, providing for the registration of the resale of shares underlying the Battelle Warrants. The Battelle Warrants

may

be exercised for cash only, except that, in the event a registration statement is not effective at the time of exercise and if an exemption from registration is otherwise available at that time, the Battelle Warrants

may

be exercised on a cashless basis. The Battelle Warrants were issued pursuant to an exemption from registration contained in Regulation D, Rule

506.

The Battelle Warrants are accounted for as equity instruments under the applicable accounting guidance of ASC Topic

815.

If Battelle suc

cessfully completes their activities under the agreement, we have agreed to pay Battelle royalties equal to a low single-digit percentage of the worldwide net sales and license royalties on sales of AEROSURF for the treatment of RDS in premature infants, up to an aggregate limit of

$25

million.

Licensing and Research Funding Agreements

Philip Morris USA Inc. and

Philip Morris Products S.A.

Under license agreements with Philip Morris USA Inc. (PMUSA) and Philip Morris Products S.A. (PMPSA), we hold exclusive worldwide licenses to

the ADS technology for use with pulmonary surfactants (alone or in combination with any other pharmaceutical compound(s)) for all respiratory diseases and conditions (the foregoing uses in each territory, the Exclusive Field), and an exclusive license in the U.S. for use with certain non-surfactant drugs to treat a wide range of pediatric and adult respiratory indications in hospitals and other health care institutions. We generally are obligated to pay royalties at a rate equal to a low single-digit percent of sales of products sold in the Exclusive Field (as defined in the license agreements) in the territories, including sales of aerosol devices and related components that are not based on the capillary aerosolization technology (unless we exercise our right to terminate the license with respect to a specific indication). We also agreed to pay minimum royalties quarterly beginning in

2014,

but are entitled to a reduction of future royalties in an amount equal to the excess of any minimum royalty paid over royalties actually earned in prior periods. We paid the minimum royalty for

2015

$400,000

related to these license agreements. For

2016,

we paid the minimum royalty of

$250,000

to PMUSA and paid

$62,500

to PMPSA with the remaining

$187,500

deferred until

July

2017.

Johnson & Johnson and Ortho

Pharmaceutical Corporation

We, Johnson & Johnson (J&J) and its wholly-owned subsidiary, Ortho Pharmaceutical Corporation, are parties to a license agreement granting to us an exclusive worldwide license to the J&J proprietary

surfactant technology. Under the license agreement, we are obligated to pay fees of up to

$2.5

million in the aggregate upon our achievement of certain milestones, primarily upon receipt of marketing regulatory approvals for certain designated products. We have paid

$950,000

to date for milestones that have been achieved including a

$500,000

milestone payment in

2012

that became due as a result of the FDA’s approval of SURFAXIN. In addition, we are required to make royalty payments at different rates, depending upon type of revenue and country, in amounts in the range of a high single-digit percent of net sales (as defined in the license agreement) of licensed products sold by us or sublicensees, or, if greater, a percentage of royalty income from sublicensees in the low double digits.

Laboratorios del Dr. Esteve, S.A.

We have a strategic alliance with Laboratorios del Dr. Esteve, S.A. (Esteve) for the development, marketing and sales of a broad portfolio of potential

surfactant products in Andorra, Greece, Italy, Portugal, and Spain. Antonio Esteve, Ph.D., a principal of Esteve, served as a member of our Board of Directors from

May

2002

until

January

2013.

Esteve will pay us a transfer price on sales of our KL

surfactant products. We will be responsible for the manufacture and supply of all of the covered products and Esteve will be responsible for all sales and marketing in the territory. Esteve is obligated to make stipulated cash payments to us upon our achievement of certain milestones, primarily upon receipt of marketing regulatory approvals for the covered products. In addition, Esteve has agreed to contribute to phase

clinical trials for the covered products by conducting and funding development performed in the territory. As part of a

2004

restructuring in which Esteve returned certain rights to us in certain territories (Former Esteve Territories), we agreed to pay Esteve

10%

of any cash up front and milestone fees (up to a maximum aggregate of

$20

million) that we receive in connection with any strategic collaborations for the development and/or commercialization of certain of our KL

surfactant products in the Former Esteve Territories.

Note 13 - Commitments

12 Months Ended

Dec. 31, 2016

Commitments Disclosure [Text Block]

Note

–

Commitments

Operating Leases

Our operating leases consist primarily of facility leases for our operations in Pennsylvania and New Jersey.

We maintain our

corporate headquarters and operations in Warrington, Pennsylvania. The facility serves as the main operating facility for drug and device development, regulatory, analytical technical services, research and development, and administration. In

April

2016,

the lease was amended to (i) reduce the leased space from

39,594

square feet to

30,506

square feet and (ii) extend the term an additional

four

years through

February

2022.

The total aggregate base rental payments remaining under the extended portion of the lease are approximately

$3.9

million.

Until

June

30,

2015,

e leased approximately

21,000

square feet of space for our manufacturing operations in Totowa, New Jersey (Totowa Facility), at an annual rent of

$525,000.

The lease for this facility, which was used to manufacture SURFAXIN drug product, expired on

June

30,

2015.

Rent expense under these leases was $

0.8

million and

$1.0

million for the years ended

December

31,

2016

and

2015,

respectively.

Note 14 - Litigation

12 Months Ended

Dec. 31, 2016

Legal Matters and Contingencies [Text Block]

Note

–

Litigation

We are not aware of any pending or threatened legal actions that would, if determined adversely to us, have a material adverse effect on our business and operations.

We have from time to time been involved in disputes and proceedings arising in the ordinary course of business, including in connection with the conduct of our clinical trials. In addition, a

s a public company, we are also potentially susceptible to litigation, such as claims asserting violations of securities laws. Any such claims, with or without merit, if not resolved, could be time-consuming and result in costly litigation. There can be no assurance that an adverse result in any future proceeding would not have a potentially material adverse effect on our business, results of operations and financial condition.

Note 15 - Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Text Block]

Note

–

Income Taxes

Since our inception, we have never recorded a provision or benefit for Federal and state income taxes.

The reconciliation of the income tax benefit computed at the Federal statutory rates to our recorded tax benefit for the years ended

December

31,

2016

and

2015

is as follows:

	December 31,
(in thousands)	2016			2015

Income tax benefit, statutory rates	$	13,426		$	18,758
State taxes on income, net of Federal benefit		2,599			3,760
Research and development tax credit		1,305			1,047
Employee related		(1,215	)		(340	)
Interest related		890			-
Warrant valuation related		76			289
Income tax benefit, statutory rates		17,081			23,514
Valuation allowance		(17,081	)		(23,514	)
Income tax benefit, net	$	-		$	-

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities, at

December

31,

2016

and

2015,

are as follows:

	December 31,
(in thousands)	2016			2015

Long-term deferred assets:
Net operating loss carryforwards (Federal and state)	$	234,825		$	218,203
Research and development tax credit		15,700			13,917
Compensation expense on stock		2,157			2,776
Charitable contribution carryforward		6			6
Other accrued		342			469
Depreciation		460			482
Total long-term deferred tax assets		253,490			235,853
Valuation allowance		(253,490	)		(235,853	)
Deferred tax assets, net	$	-		$	-

We are in a net deferred tax asset position at

December

31,

2016

and

2015

before the consideration of a valuation allowance. Because we have never realized a profit, management has fully reserved the net deferred tax asset since realization is not assured. It is our policy to classify interest and penalties recognized on uncertain tax positions as a component of income tax expense. There was neither interest nor penalties accrued as of

December

31,

2016

2015,

nor were any incurred in

2016

2015.

December

31,

2016

and

2015,

we had available carryforward net operating losses for Federal tax purposes of

$581.4

million and

$540.2

million, respectively, and a research and development tax credit carryforward of

$15.7

million and

$13.9

million, respectively. The Federal net operating loss and research and development tax credit carryforwards will continue to expire through

2036.

December

31,

2016,

we had available carryforward Federal and State net operating losses of

$5.2

million and

$0.4

million, respectively, related to stock-based compensation, the tax effect of which will result in a credit to equity as opposed to income tax expense, to the extent these losses are utilized in the future.

December

31,

2016

and

2015,

we had available carryforward losses of approximately

$570.3

million and

$527.1

million, respectively, for state tax purposes. Of the

$570.3

million state tax carryforward losses,

$544.8

million is associated with the state of Pennsylvania, with the remainder associated with the other

states within which we have established tax nexus.

Utilization of net operating loss (NOL) and research and development (R&D) credit carryforwards

may

be subject to a substantial annual limitation under Section

382

of the Internal Revenue Code of

1986

due to ownership change limitations that have occurred previously or that could occur in the future.

These ownership changes

may

limit the amount of NOL and R&D credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. There also could be additional ownership changes in the future, which

may

result in additional limitations in the utilization of the carryforward NOLs and credits.

A full valuation allowance has been provided against our deferred tax assets and, if a future assessment requires an adjustment, an adjustment would be offset by an adjustment to the valuation allowance.

Thus, there would be no impact to the consolidated balance sheet or statement of operations if an adjustment were required.

Note 16 - Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Text Block]

Note

–

Selected Quarterly Financial Data (Unaudited)

The following table

s contain unaudited statement of operations information for each quarter of

2016

and

2015.

The operating results for any quarter are not necessarily indicative of results for any future period.

2016 Quarters Ended:
(in thousands, except per share data)	Mar. 31			June 30			Sept. 30			Dec. 31			Total Year
Revenues:
Product sales	$	-		$	-		$	-		$	-		$	-
Grant Revenue		75			106			961			900			2,042
Total revenues		75			106			961			900			2,042
Expenses:
Cost of product sales		-			-			-			-			-
Research and Development		10,360			8,316			7,081			5,948			31,705
Selling, general and administrative		3,657			1,783			1,613			1,320			8,373
Total expenses		14,017			10,099			8,694			7,268			40,078
Operating loss		(13,942	)		(9,993	)		(7,733	)		(6,368	)		(38,036	)
Change in fair value of common stock warrant liability		223			-			-			-			223
Other expense, net		(182	)		(631	)		(630	)		(234	)		(1,677	)
Net loss	$	(13,901	)	$	(10,624	)	$	(8,363	)	$	(6,602	)	$	(39,490	)
Net loss per common share - basic	$	(1.70	)	$	(1.29	)	$	(1.00	)	$	(0.77	)	$	(4.74	)
Net loss per common share - diluted	$	(1.70	)	$	(1.29	)	$	(1.00	)	$	(0.77	)	$	(4.74	)
Weighted average number of common shares outstanding - basic		8,191			8,238			8,355			8,523			8,328
Weighted average number of common shares outstanding - diluted		8,191			8,238			8,355			8,523			8,328

2015 Quarters Ended:
(in thousands, except per share data)	Mar. 31			June 30			Sept. 30			Dec. 31			Total Year
Revenues:
Product sales	$	7		$	-		$	-		$	-		$	7
Grant Revenue		184			75			66			655			980
Total revenues		191			75			66			655			987
Expenses:
Cost of product sales		929			-			-			-			929
Research and Development		7,082			7,129			6,452			8,225			28,888
Selling, general and administrative		3,353			3,383			2,057			2,211			11,004
Total expenses		11,364			10,512			8,509			10,436			40,821
Operating loss		(11,173	)		(10,437	)		(8,443	)		(9,781	)		(39,834	)
Change in fair value of common stock warrant liability		(31	)		469			139			274			851
Other expense, net		(975	)		(1,358	)		(13,252	)		(602	)		(16,187	)
Net loss	$	(12,179	)	$	(11,326	)	$	(21,556	)	$	(10,109	)	$	(55,170	)
Net loss per common share - basic	$	(1.96	)	$	(1.82	)	$	(2.80	)	$	(1.26	)	$	(7.98	)
Net loss per common share - diluted	$	(1.96	)	$	(1.82	)	$	(2.80	)	$	(1.26	)	$	(7.98	)
Weighted average number of common shares outstanding - basic		6,114			6,125			7,550			8,050			6,967
Weighted average number of common shares outstanding - diluted		6,114			6,125			7,550			8,050			6,967

Note 17 - Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Text Block]

Note

ubsequent Events

We evaluated all events or transactions that occurred after

December

31,

2016

through the date we issued these financial statements.

During this period, we noted a subsequent event as described below:

February

15,

2017,

we completed a private placement offering of

7,049

Series A Convertible Preferred Stock units for net proceeds of approximately

$10.5

million, including

$1.6

million of non-cash consideration representing a reduction in amounts due and accrued as of

December

31,

2016

for current development services that otherwise would have become payable in cash in the

first

and

second

quarters of

2017.

Each unit consists of (i)

one

share of Series A Convertible Preferred Stock; and (ii)

1,000

Series A-

Warrants to purchase

one

share of Common Stock at an exercise price equal to

$1.37.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Consolidation

The consolidated financial statements include all of the accounts of

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of financial statements, in conformity with accounting principles generally accepted in the

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents

Cash and cash equivalents are held in U.S. banks and consist of liquid investments and money market funds with a maturity from date of purchase of

days or less that are readily convertible into cash

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair value of financial instruments

December

31,

2016

and

2015,

Property, Plant and Equipment, Policy [Policy Text Block]

Property and equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets (generally

three

ten

years). Leasehold improvements are amortized over the shorter of the estimated useful lives or the remaining term of the lease. Repairs and maintenance costs are charged to expense as incurred.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted cash

Restricted cash consists of a certificate of deposit held by our bank as collateral for a letter of credit in the same notional amount held by our landlord

(as amended

January

2013)

to secure our obligations under our Lease Agreement dated

May

26,

2004

for our headquarters location in Warrington, Pennsylvania (

See,

Note

– Commitments, for further discussion on our leases).

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-lived assets

Our long-lived assets, primarily consisting of equipment, are reviewed for impairment when events or changes in circumstances indicate the carrying amount of an asset

may

December

31,

201

and

2015

as management believes there are no circumstances that indicate the carrying amount of the assets will not be recoverable. In the

second

quarter of

2015,

we closed the Totowa Facility and sold manufacturing equipment for total cash proceeds of

$0.3

million, resulting in a

$0.1

million loss from the sale and disposal of these assets.

Revenue Recognition, Multiple-deliverable Arrangements, Description [Policy Text Block]

Grant

evenue

We recognize grant revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collecta

bility is reasonably assured.

Research and Development Expense, Policy [Policy Text Block]

Research and development

account for research and development expense by the following categories: (a) product development and manufacturing, (b) medical and regulatory operations, and (c) direct preclinical and clinical programs. Research and development expense includes personnel, facilities, manufacturing and quality operations, pharmaceutical and device development, research, clinical, regulatory, other preclinical and clinical activities and medical affairs. Research and development costs are charged to operations as incurred.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-based compensation

Stock-based compensation is accounted for under the fair value recognition provisions of Accounting Standards Codification (ASC) Topic

718

Stock Compensation

(ASC Topic

718).

See, Note

– Stock Options and Stock-based Employee Compensation, for a detailed description of our recognition of stock-based compensation expense. The fair value of stock option grants is recognized evenly over the vesting period of the options or over the period between the grant date and the time the option becomes non-forfeitable by the employee, whichever is shorter.

Derivatives, Policy [Policy Text Block]

Warrant accounting

We account for common stock warrants in accordance with applicable accounting guidance provided in ASC Topic

815

Derivatives and Hedging – Contracts in

Entity’s Own Equity

(ASC Topic

815),

as either derivative liabilities or as equity instruments depending on the specific terms of the warrant agreement. We classify derivative warrant liabilities on the consolidated balance sheet as current liabilities, which are revalued at each balance sheet date subsequent to the initial issuance. Depending on the terms of a warrant agreement, we use valuation pricing models to value the related derivative warrant liabilities. Changes in the fair value of the warrants are reflected in the consolidated statement of operations as “Change in fair value of common stock warrant liability.”

See,

“Item

– Notes to consolidated financial statements – Note

– Common Stock Warrant Liability,” for a detailed description of our accounting for derivative warrant liabilities.

Collaborative Arrangement, Accounting Policy [Policy Text Block]

Collaborative arrangements

We account for

collaborative arrangements in accordance with applicable accounting guidance provided in ASC Topic

808,

Collaborative Arrangements

(ASC Topic

808).

See,

“ – Note

– Corporate Partnership, Licensing and Research Funding Agreements – Battelle Memorial Institute,” for a description of our accounting for the Battelle collaboration Agreement.

Income Tax, Policy [Policy Text Block]

Income taxes

We account for income taxes in accordance with ASC Topic

740,

Accounting for Income Taxes

(ASC Topic

740),

which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities.

We use a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

Because we have never realized a profit, management has fully reserved the net deferred tax asset since realization is not assured.

Earnings Per Share, Policy [Policy Text Block]

Net loss per common share

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period.

Diluted net loss per common share is computed by giving effect to all potentially dilutive securities outstanding for the period. For the years ended

December

31,

2016

and

2015,

the number of shares of common stock potentially issuable upon the exercise of certain stock options and warrants was

9.4

million and

9.1

million shares, respectively. As of

December

31,

2016

and

2015,

all potentially dilutive securities were anti-dilutive and therefore have been excluded from the computation of diluted net loss per share.

In accordance with A

SC Topic

260,

“Earnings per Share,” when calculating diluted net loss per common share, a gain associated with the decrease in the fair value of warrants classified as derivative liabilities results in an adjustment to the net loss; and the dilutive impact of the assumed exercise of these warrants results in an adjustment to the weighted average common shares outstanding. We utilize the treasury stock method to calculate the dilutive impact of the assumed exercise of warrants classified as derivative liabilities. For the year ended

December

31,

2016

and

2015,

the effect of the adjustments for warrants classified as derivative liabilities was anti-dilutive.

The table below provides information pertaining to the calculation of diluted net loss per common share for the periods presented:

	December 31,
(in thousands)	2016			2015

Numerator:
Net loss as reported	$	(39,490	)	$	(55,170	)
Less: income from change in fair value of warrant liability		(223	)		(851	)
Numerator for diluted net loss per common share	$	(39,713	)	$	(56,021	)

Denominator:
Basic weighted average common shares outstanding		8,328			6,967
Dilutive common shares from assumed warrant exercises		-			-
Diluted weighted average common shares outstanding		8,328			6,967

We do not have any components of other comprehensive income (loss).

Concentration of Suppliers [Policy Text Block]

Concentration of Suppliers

We currently obtain the active pharmaceutical ingredients (APIs) of our KL

surfactant drug products from single-source suppliers. In addition, we rely on a number of

third

-party institutions and laboratories that perform various studies as well as quality control release and stability testing and other activities related to our KL

surfactant development and manufacturing activities. At the present time, several of these laboratories are single-source providers. The loss of

one

or more of our single-source suppliers or testing laboratories could have a material adverse effect upon our operations.

Segment Reporting, Policy [Policy Text Block]

Business segments

We currently operate in

one

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

May

2014,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)

2014

09,

Revenue from Contracts with Customers

(Topic

606)

December

31,

2017,

including interim periods within that annual period. Early application is not permitted. We are evaluating the effect that ASU

2014

August

2014,

the FASB issued ASU

2014

15,

Presentation of Financial Statements

–

Going Concern

(Subtopic

205

40):

Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern

one

year after the date that the financial statements are issued (or are available to be issued). ASU

2014

is effective for annual reporting periods ending after

December

15,

2016,

and for annual and interim periods thereafter. We have adopted ASU

2014

effective

December

31,

2016

. Management has concluded that substantial doubt exists with respect to our ability to continue as a going concern through

one

year after the issuance of the accompanying financial statements.

See

, “ – Note

– Liquidity Risks and Management's Plans.

February

2016,

the FASB issued ASU

2016

02,

Leases (Topic

482)

December

31,

2019

2016

may

have on our consolidated financial statements and related disclosures.

March

2016,

the FASB issued ASU

2016

09,

Compensation - Stock Compensation (Topic

718)

December

15,

2016

may

have on our consolidated financial statements and related disclosures.

November

2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

230):

Restricted Cash

December

15,

2017

2016

may

have on our consolidated financial statements and related disclosures.

Note 4 - Accounting Policies and Recent Accounting Pronouncements (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	December 31,
(in thousands)	2016			2015

Numerator:
Net loss as reported	$	(39,490	)	$	(55,170	)
Less: income from change in fair value of warrant liability		(223	)		(851	)
Numerator for diluted net loss per common share	$	(39,713	)	$	(56,021	)

Denominator:
Basic weighted average common shares outstanding		8,328			6,967
Dilutive common shares from assumed warrant exercises		-			-
Diluted weighted average common shares outstanding		8,328			6,967

Note 5 - Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Fair Value		Fair value measurement using
	December 31,
(in thousands)	2016		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	5,588	$	5,588	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	5,813	$	5,813	$	-	$	-
Liabilities:
Common stock warrants	$	-	$	-	$	-	$	-

	Fair Value		Fair value measurement using
	December 31,
(in thousands)	2015		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	38,722	$	38,722	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	38,947	$	38,947	$	-	$	-
Liabilities:
Common stock warrants	$	223	$	-	$	-	$	223

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

(in thousands)

Balance at January 1, 2015	$	1,258
Exercise of warrants (1)		(184	)
Change in fair value of common stock warrant liability		(851	)
Balance at December 31, 2015	$	223
Change in fair value of common stock warrant liability		(223	)
Balance at December 31, 2016	$	-

Significant Unobservable Input Assumption Used for Valuation [Table Text Block]

Significant Unobservable Input	December 31,
Assumptions of Level 3 Valuations	2016		2015

Historical volatility		-		159	%
Expected term (in years)		-		0.2
Risk-free interest rate		-		0.15	%

Note 6 - Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Table Text Block]

	December 31,
(in thousands)	2016			2015

Manufacturing, laboratory & office equipment	$	4,940		$	6,290
Furniture & fixtures		615			778
Leasehold improvements		2,459			2,437
Subtotal		8,014			9,505
Accumulated depreciation and amortization		(6,960	)		(8,466	)
Property and equipment, net	$	1,054		$	1,039

Note 7 - Collaborative Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Accrued Liabilities [Table Text Block]

	December 31,
(in thousands)	2016		2015

Salaries, bonus & benefits	$	1,309	$	2,387
Research and development		5,174		2,867
Manufacturing operations		454		1,097
Professional fees		305		326
Other		369		518
Total accrued expenses	$	7,611	$	7,195

Note 9 - Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Long-term Debt Instruments [Table Text Block]

	Years Ended December 31,
(in thousands)	2016		2015

Deerfield Loan	$	25,000	$	25,000

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

Significant Unobservable Input Assumptions of Level 3 Valuations

Historical volatility		101%
Expected term (in years)	5.2	–	6.0
Risk-free interest rate	1.2%	–	1.5%

Schedule of Debt Instrument Interest Expense [Table Text Block]

	Years Ended December 31,
(in thousands)	2016		2015

Amortization of prepaid interest expense	$	1,710	$	971
Cash interest expense		450		1,451
Non-cash amortization of debt discount		-		1,287
Debt discount write-off		-		707
Amortization of debt costs		-		12
Write-off of debt costs		-		66
Total interest expense	$	2,160	$	4,494

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Note 10 - Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2016

Common Shares Reserved for Future Issuance, Warrants [Table Text Block]

	December 31,						Expiration
(in thousands, except price per share data)	2016		2015		Exercise Price		Date

Battelle - 2014 collaboration agreement (1)		107		107	$	70.00	10/10/2024
Investors - July 2015 financing		4,792		4,792	$	9.80	7/22/2022
Investors - July 2015 financing (prefunded)		2,857		2,857	$	-	7/22/2022
Deerfield - 2013 loan		500		500	$	39.34	2/13/2019
Former employee		-		2	$	44.80	3/18/2016
Investors - February 2011 financing		-		274	$	2.66	2/22/2016
Total		8,256		8,532

Note 11 - Stock Options and Stock-based Employee Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Share Based Compensation Arrangement by Stock Options and Restricted Stock Units Outstanding and Available for Future Issuance [Table Text Block]

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31,</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2015</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Stock Options and RSUs Outstanding</div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 57.8%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">2011 Plan</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">942</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">493</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">2007 Plan</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">1998 Plan</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Non-Plan</div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">205</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total Outstanding</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,160</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">522</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Available for Future Grants under 2011 Plan</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,042</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">420</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

Stock Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In Yrs)

Outstanding at January 1, 2016		517		$	51.35
Granted		773			2.10
Forfeited or expired		(148	)		77.14
Outstanding at December 31, 2016		1,142		$	14.66		8.0

Vested and exercisable at December 31, 2016		301		$	44.04		5.1

Vested and expected to vest at December 31, 2016		1,037		$	14.81		8.0

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

(in thousands, except for weighted-average data)

Restricted Stock Units	Shares			Weighted- Average Grant Date Fair Value

Unvested at January 1 2016		5		$	6.72
Awarded		17			1.84
Vested		(5	)		6.72
Unvested at December 31, 2016		17		$	1.84

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

	December 31,
(in thousands)	2016		2015

Research and development	$	614	$	642
Selling, general and administrative		809		1,054
Total	$	1,423	$	1,696

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

	December 31,
	2016			2015

Weighted average expected volatility		78	%		83	%
Weighted average expected term (years)		5.7			5.5
Weighted average risk-free interest rate		1.39	%		1.50	%
Expected dividends		-			-

Note 15 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	December 31,
(in thousands)	2016			2015

Income tax benefit, statutory rates	$	13,426		$	18,758
State taxes on income, net of Federal benefit		2,599			3,760
Research and development tax credit		1,305			1,047
Employee related		(1,215	)		(340	)
Interest related		890			-
Warrant valuation related		76			289
Income tax benefit, statutory rates		17,081			23,514
Valuation allowance		(17,081	)		(23,514	)
Income tax benefit, net	$	-		$	-

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
(in thousands)	2016			2015

Long-term deferred assets:
Net operating loss carryforwards (Federal and state)	$	234,825		$	218,203
Research and development tax credit		15,700			13,917
Compensation expense on stock		2,157			2,776
Charitable contribution carryforward		6			6
Other accrued		342			469
Depreciation		460			482
Total long-term deferred tax assets		253,490			235,853
Valuation allowance		(253,490	)		(235,853	)
Deferred tax assets, net	$	-		$	-

Note 16 - Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Table Text Block]

2016 Quarters Ended:
(in thousands, except per share data)	Mar. 31			June 30			Sept. 30			Dec. 31			Total Year
Revenues:
Product sales	$	-		$	-		$	-		$	-		$	-
Grant Revenue		75			106			961			900			2,042
Total revenues		75			106			961			900			2,042
Expenses:
Cost of product sales		-			-			-			-			-
Research and Development		10,360			8,316			7,081			5,948			31,705
Selling, general and administrative		3,657			1,783			1,613			1,320			8,373
Total expenses		14,017			10,099			8,694			7,268			40,078
Operating loss		(13,942	)		(9,993	)		(7,733	)		(6,368	)		(38,036	)
Change in fair value of common stock warrant liability		223			-			-			-			223
Other expense, net		(182	)		(631	)		(630	)		(234	)		(1,677	)
Net loss	$	(13,901	)	$	(10,624	)	$	(8,363	)	$	(6,602	)	$	(39,490	)
Net loss per common share - basic	$	(1.70	)	$	(1.29	)	$	(1.00	)	$	(0.77	)	$	(4.74	)
Net loss per common share - diluted	$	(1.70	)	$	(1.29	)	$	(1.00	)	$	(0.77	)	$	(4.74	)
Weighted average number of common shares outstanding - basic		8,191			8,238			8,355			8,523			8,328
Weighted average number of common shares outstanding - diluted		8,191			8,238			8,355			8,523			8,328

2015 Quarters Ended:
(in thousands, except per share data)	Mar. 31			June 30			Sept. 30			Dec. 31			Total Year
Revenues:
Product sales	$	7		$	-		$	-		$	-		$	7
Grant Revenue		184			75			66			655			980
Total revenues		191			75			66			655			987
Expenses:
Cost of product sales		929			-			-			-			929
Research and Development		7,082			7,129			6,452			8,225			28,888
Selling, general and administrative		3,353			3,383			2,057			2,211			11,004
Total expenses		11,364			10,512			8,509			10,436			40,821
Operating loss		(11,173	)		(10,437	)		(8,443	)		(9,781	)		(39,834	)
Change in fair value of common stock warrant liability		(31	)		469			139			274			851
Other expense, net		(975	)		(1,358	)		(13,252	)		(602	)		(16,187	)
Net loss	$	(12,179	)	$	(11,326	)	$	(21,556	)	$	(10,109	)	$	(55,170	)
Net loss per common share - basic	$	(1.96	)	$	(1.82	)	$	(2.80	)	$	(1.26	)	$	(7.98	)
Net loss per common share - diluted	$	(1.96	)	$	(1.82	)	$	(2.80	)	$	(1.26	)	$	(7.98	)
Weighted average number of common shares outstanding - basic		6,114			6,125			7,550			8,050			6,967
Weighted average number of common shares outstanding - diluted		6,114			6,125			7,550			8,050			6,967

Note 2 - Basis of Presentation (Details Textual)	Jan. 22, 2016
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	14

Note 3 - Liquidity Risks and Management's Plans (Details Textual)			3 Months Ended									12 Months Ended
	Feb. 15, 2017 USD ($)	Jul. 22, 2015 USD ($)	Mar. 23, 2017 USD ($)	Dec. 31, 2016 USD ($) shares	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares	Nov. 30, 2016 USD ($)	Dec. 31, 2014 USD ($)
Cash and Cash Equivalents, at Carrying Value				$ 5,588,000				$ 38,722,000				$ 5,588,000	$ 38,722,000	$ 38,722,000	$ 44,711,000
Accounts Payable and Accrued Liabilities, Current				13,400,000								13,400,000
Long-term Debt, Excluding Current Maturities				25,000,000				25,000,000				$ 25,000,000	25,000,000
Debt Instrument Repayment of Principal Portion Number of Installments												2
Deferred Period for Loan Payment												1 year
Market Capitalization, Threshold for Deferral				250,000,000								$ 250,000,000
Excess Percentage of Common Stock Issued to Acquire Additional Capital												20.00%
Revenue from Grants				$ 900,000	$ 961,000	$ 106,000	$ 75,000	$ 655,000	$ 66,000	$ 75,000	$ 184,000	$ 2,042,000	$ 980,000
Common Stock, Shares Authorized \| shares				60,000,000				36,000,000				60,000,000	36,000,000
Preferred Stock, Shares Authorized \| shares				5,000,000				5,000,000				5,000,000	5,000,000
Common Stock Capital Shares Available for Issuance \| shares				40,700,000								40,700,000
Preferred Stock Capital Shares Available for Issuance \| shares							5,000,000
Stockholders' Equity Attributable to Parent				$ (28,830,000)				$ 8,266,000				$ (28,830,000)	$ 8,266,000		$ 19,199,000
Stockholders' Equity, Market Value of Listed Securities				10,900,000								10,900,000
Phase II Small Business Innovation Research Grant from the NHLBI [Member]
Grant Award				$ 2,600,000								2,600,000
Revenue from Grants												$ 900,000
Private Placement [Member] \| Series A Units [Member] \| Subsequent Event [Member]
Gross Proceeds From Issuance Of Units	$ 10,500,000
Non-cash Consideration Received	$ 1,600,000
Registered Public Offerings [Member]
Gross Proceeds From Issuance Of Units		$ 40,250,000
Registered Public Offerings [Member] \| Subsequent Event [Member]
Gross Proceeds From Issuance Of Units			$ 900,000
July 2015 Public Offering [Member] \| Prefunded Warrants [Member]
Class of Warrant or Right, Outstanding \| shares				2,900,000								2,900,000
Deerfield Loan [Member]
Long-term Debt, Excluding Current Maturities				$ 25,000,000				$ 25,000,000				$ 25,000,000	$ 25,000,000

Note 4 - Accounting Policies and Recent Accounting Pronouncements (Details Textual) $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2016 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares
Proceeds from Sale of Property, Plant, and Equipment	$ 27	$ 300		$ 270
Number of Shares of Common Stock Potentially Issuable upon the Exercise of Stock Options and Warrants \| shares			9.4	9.1
Number of Operating Segments			1
Impairment of Long-Lived Assets Held-for-use			$ 0	$ 0
Selling, General and Administrative Expenses [Member] \| The 2016 Restructuring Plan [Member]
Restructuring Charges		$ 100
Minimum [Member]
Property, Plant and Equipment, Useful Life			3 years
Maximum [Member]
Property, Plant and Equipment, Useful Life			10 years

Note 4 - Accounting Policies and Recent Accounting Pronouncements - Calculation of Diluted Net Loss Per Common Share (Details) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Numerator:
Net loss	$ (39,490)	$ (6,602)	$ (8,363)	$ (10,624)	$ (13,901)	$ (10,109)	$ (21,556)	$ (11,326)	$ (12,179)	$ (39,490)	$ (55,170)
Less: income from change in fair value of warrant liability										(223)	(851)
Numerator for diluted net loss per common share										$ (39,713)	$ (56,021)
Denominator:
Weighted average number of common shares outstanding - basic (in shares)		8,523	8,355	8,238	8,191	8,050	7,550	6,125	6,114	8,328	6,967
Dilutive common shares from assumed warrant exercises (in shares)
Diluted weighted average common shares outstanding (in shares)		8,523	8,355	8,238	8,191	8,050	7,550	6,125	6,114	8,328	6,967

Note 5 - Fair Value Measurements (Details Textual) $ in Millions	Dec. 31, 2016 USD ($)
Deerfield Loan [Member] \| Estimate of Fair Value Measurement [Member]
Long-term Debt, Fair Value	$ 21.4

Note 5 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Liabilities:
Derivative Liability, Current		$ 223
Fair Value, Measurements, Recurring [Member]
Assets:
Cash and cash equivalents	5,588	38,722
Total Assets	5,813	38,947
Liabilities:
Derivative Liability, Current		223
Fair Value, Measurements, Recurring [Member] \| Certificates of Deposit [Member]
Assets:
Certificate of deposit	225	225
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and cash equivalents	5,588	38,722
Total Assets	5,813	38,947
Liabilities:
Derivative Liability, Current
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Certificates of Deposit [Member]
Assets:
Certificate of deposit	225	225
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets:
Cash and cash equivalents
Total Assets
Liabilities:
Derivative Liability, Current
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Certificates of Deposit [Member]
Assets:
Certificate of deposit
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets:
Cash and cash equivalents
Total Assets
Liabilities:
Derivative Liability, Current		223
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Certificates of Deposit [Member]
Assets:
Certificate of deposit

Note 5 - Fair Value Measurements - Level 3 Rollforward (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Balance

Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member]

Balance

223

$ 1,258

Exercise of warrants(1)

^[1]

(184)

Change in fair value of common stock warrant liability

$ (223)

(851)

Balance

$ 223

[1]	See Note 8 - Common Stock Warrant Liability

Note 5 - Fair Value Measurements - Significant Unobservable Input Assumptions of Level 3 Valuations (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Historical volatility	0.00%	159.00%
Expected term (in years) (Year)	0 years	73 days
Risk-free interest rate	0.00%	0.15%

Note 6 - Property and Equipment (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Depreciation	$ 0.3	$ 0.7

Note 6 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Manufacturing, laboratory & office equipment	$ 8,014	$ 9,505
Accumulated depreciation and amortization	(6,960)	(8,466)
Property and equipment, net	1,054	1,039
Manufacturing, Laboratory, and Office Equipment [Member]
Manufacturing, laboratory & office equipment	4,940	6,290
Furniture and Fixtures [Member]
Manufacturing, laboratory & office equipment	615	778
Leasehold Improvements [Member]
Manufacturing, laboratory & office equipment	$ 2,459	$ 2,437

Note 7 - Collaborative Payable and Accrued Expenses (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Collaboration Agreement, Invoice Term	1 year
Collaboration Agreement, Interest Rate for Outstanding Invoices	12.00%
Collaboration Payable, Current	$ 3,967	$ 3,281
Collaboration Agreement, Accrued Interest	$ 300	$ 100

Note 7 - Collaboration Payable and Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Salaries, bonus & benefits	$ 1,309	$ 2,387
Research and development	5,174	2,867
Manufacturing operations	454	1,097
Professional fees	305	326
Other	369	518
Total accrued expenses	$ 7,611	$ 7,195

Note 8 - Common Stock Warrant Liability (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Feb. 22, 2011
Derivative Liability, Current		$ 223
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 39.34
The 2011 Warrants [Member]
Derivative Liability, Current			$ 8,000
Stock Issued During Period on Exercise of Warrants	0	51,193
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 2.66
Proceeds from Warrant Exercises		$ 100

Common Stock, Capital Shares Reserved for Future Issuance

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References + Details

Note 9 - Long-term Debt (Details Textual) - USD ($) $ / shares in Units, shares in Millions					1 Months Ended	12 Months Ended
	Jul. 22, 2015	Jul. 09, 2015	Dec. 03, 2013	Feb. 13, 2013	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Number of Advances						2
Line Of Credit Agreement, Transaction Fee Percentage						1.50%
Debt Instrument, Interest Rate, Stated Percentage					8.75%	8.75%
Debt Repayment, Percentage Sale of Assets						50.00%
Class of Warrant or Right, Issued During Period						0.5
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 39.34	$ 39.34
Common Stock Outstanding, Maximum Percentage Issued						9.985%
Line of Credit Facility, Maximum Borrowing Capacity					$ 30,000,000	$ 30,000,000
Fair Value of Warrants Issued under Both the First and Second Advance					11,700,000	11,700,000
Debt Instrument, Fee Amount					450,000	$ 450,000
Deferred Period for Loan Payment						1 year
Gain (Loss) on Extinguishment of Debt							$ (11,758,000)
Deerfield Debt Restructuring [Member]
Debt Instrument, Interest Rate, Stated Percentage					8.75%	8.75%
Early Repayment of Senior Debt	$ 2,500,000	$ 2,500,000				$ 2,500,000
Long-term Debt, Maturities, Repayments of Principal in Year Five	12,500,000	12,500,000
Long-term Debt, Maturities, Repayments of Principal in Year Four	12,500,000	$ 12,500,000
Deferred Period for Loan Payment		1 year
Debt Instrument, Prepaid Interest	$ 5,000,000
Remaining Interest Due on the Principal Amount Outstanding	8.25%
Increase Decrease in Common Stock Valuation Prior to Change	$ 100,000,000
Gain (Loss) on Extinguishment of Debt						11,800,000
Gains Losses on Extinguishment of Debt Related to Fair Value of Warrants						4,100,000
Debt Instrument, Periodic Payment, Principal						5,000,000
Debt Instrument, Periodic Payment, Interest						$ 5,000,000
First Advance [Member]
Proceeds from Lines of Credit				$ 10,000,000
Class of Warrant or Right, Issued During Period						0.2
Second Advance [Member]
Proceeds from Lines of Credit			$ 20,000,000
Class of Warrant or Right, Issued During Period						0.3
Deerfield Debt Restructuring [Member]
Debt Instrument, Interest Rate During Period						8.25%	8.75%

Note 9 - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Long-term Debt, Excluding Current Maturities	$ 25,000	$ 25,000
Deerfield Loan [Member]
Long-term Debt, Excluding Current Maturities	$ 25,000	$ 25,000

Note 9 - Long-term Debt - Significant Unobservable Input Assumptions of Level 3 Valuations (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Historical volatility	0.00%	159.00%
Expected term (in years) (Year)	0 years	73 days
Risk-free interest rate	0.00%	0.15%
Deerfield Warrants [Member]
Historical volatility	101.00%
Deerfield Warrants [Member] \| Minimum [Member]
Expected term (in years) (Year)	5 years 73 days
Risk-free interest rate	1.20%
Deerfield Warrants [Member] \| Maximum [Member]
Expected term (in years) (Year)	6 years
Risk-free interest rate	1.50%

Note 9 - Long-term Debt - Long-term Debt Interest Expense (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Debt discount write-off			$ 707
Deerfield Loan [Member]
Amortization of prepaid interest expense		$ 1,710	971
Cash interest expense		450	1,451
Non-cash amortization of debt discount			1,287
Debt discount write-off			707
Amortization of debt costs			12
Write-off of debt costs			66
Total interest expense		$ 2,160	$ 4,494

Note 10 - Stockholders' Equity (Details Textual) - USD ($)			3 Months Ended	12 Months Ended
	Jul. 22, 2015	Feb. 11, 2013	Mar. 23, 2017	Dec. 31, 2016	Dec. 31, 2015	Mar. 08, 2016	Jan. 21, 2016	Oct. 27, 2015
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 39.34
Common Stock, Capital Shares Reserved for Future Issuance				8,256,000	8,532,000
2011 Long-term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				1,042,000	420,000		1,100,000
The 401(k) Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance				167,372	4,567	300,000		78,571
Registered Public Offerings [Member]
Gross Proceeds From Issuance Of Units	$ 40,250,000
Proceeds from Issuance of Common Stock	$ 37,600,000
Class of Warrants, May Not Exercise To Extent, Percentage	9.99%
Class of Warrants, Exercise, May Be Elected by Holders, Percentage	4.99%
Registered Public Offerings [Member] \| Subsequent Event [Member]
Gross Proceeds From Issuance Of Units			$ 900,000
Registered Public Offerings [Member] \| Deerfield Debt Restructuring [Member]
Non-cash Consideration Received	$ 5,000,000
Registered Public Offerings [Member] \| Series A Units [Member]
Stock Issued During Period, Shares, New Issues	1,791,667
Sale Of Unit, Price Per Unit	$ 8.40
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1
Registered Public Offerings [Member] \| Series B Units [Member]
Stock Issued During Period, Shares, New Issues	3,000,000
Sale Of Unit, Price Per Unit	$ 8.40
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 8.40
Registered Public Offerings [Member] \| Series A Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 9.80
Registered Public Offerings [Member] \| Series B Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 9.80
Over-Allotment Option [Member] \| Series A Units [Member]
Stock Issued During Period, Shares, New Issues	625,000
Stifel ATM Program [Member]
Stock Issued During Period, Shares, New Issues				360,263
Proceeds from Issuance of Common Stock				$ 700,000
Agency Agreement Period		3 years
Maximum Potential Common Stock Available for Issue, Value		$ 25,000,000
Percentage Sales Commission on Shares		3.00%
Common Stock, Remaining Shares Available under Program, Value				$ 22,300,000
Stifel ATM Program [Member] \| Subsequent Event [Member]
Proceeds from Issuance of Common Stock			$ 900,000
The 401(k) Plan [Member]
Stock Issued During Period, Shares, New Issues				168,753	94,114
Defined Contribution Plan, Cost Recognized				$ 300,000	$ 500,000

Note 10 - Stockholders' Equity - Common Shares Reserved for Future Issuance (Details) - $ / shares
shares in Thousands

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

8,256

8,532

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 39.34

Battelle 2014 Collaboration Agreement [Member]

Common Stock, Capital Shares Reserved for Future Issuance

^[1]

107

Class of Warrant or Right, Exercise Price of Warrants or Rights

^[1]

$ 70

Investors - July 2015 Financing [Member]

^[1]

10/10/2024

Common Stock, Capital Shares Reserved for Future Issuance

4,792

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 9.80

Investors - July 2015 Financing (Prefunded) [Member]

7/22/2022

Common Stock, Capital Shares Reserved for Future Issuance

2,857

Deerfield - 2013 Loan [Member]

7/22/2022

Common Stock, Capital Shares Reserved for Future Issuance

500

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 39.34

Common Stock, Capital Shares Reserved for Future Issuance

2/13/2019

Former Employee [Member]

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 44.80

Investor - February 2011 Financing [Member]

3/18/2016

Common Stock, Capital Shares Reserved for Future Issuance

274

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 2.66