0001494650-20-000136 | 10-Q | XBRL Viewer

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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-38241
Entity Registrant Name	OPTINOSE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	42-1771610
Entity Address, Address Line One	1020 Stony Hill Road
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Yardley
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19067
City Area Code	267
Local Phone Number	364-3500
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	OPTN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		52,080,552
Entity Central Index Key	0001494650
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 143,134	$ 147,144
Accounts receivable, net	17,524	13,643
Inventory	9,326	3,484
Prepaid expenses and other current assets	2,453	3,789
Total current assets	172,437	168,060
Property and equipment, net	2,408	3,052
Other assets	6,179	1,538
Total assets	181,024	172,650
Current liabilities:
Accounts payable	6,069	3,625
Accrued expenses and other current liabilities	37,281	32,514
Total current liabilities	43,350	36,139
Long-term debt, net	105,013	74,531
Other liabilities	4,978	397
Total liabilities	153,341	111,067
Stockholders' equity:
Common stock, 0.001 par value; 200,000,000 shares authorized at September 30, 2020 and December 31, 2019; 52,080,552 and 45,906,162 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	52	46
Additional paid-in capital	531,598	489,565
Accumulated deficit	(503,902)	(427,980)
Accumulated other comprehensive loss	(65)	(48)
Total stockholders' equity	27,683	61,583
Total liabilities and stockholders' equity	$ 181,024	$ 172,650
Shares issued (in shares)	52,080,552	45,906,162

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Shares authorized (in shares)	200,000,000	200,000,000
Shares issued (in shares)	52,080,552	45,906,162
Shares outstanding (in shares)	52,080,552	45,906,162
Long-term debt, net	$ 105,013	$ 74,531
Other liabilities	4,978	397
Common stock, 0.001 par value; 200,000,000 shares authorized at September 30, 2020 and December 31, 2019; 52,080,552 and 45,906,162 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	52	46
Additional paid-in capital	531,598	489,565
Accounts payable	6,069	3,625
Accrued expenses and other current liabilities	$ 37,281	$ 32,514

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Total revenues	$ 15,436	$ 12,397	$ 32,770	$ 23,550
Costs and expenses:
Cost of product sales	2,221	1,389	5,276	3,216
Research and development	6,524	5,547	16,930	15,404
Selling, general and administrative	24,575	25,270	77,332	77,610
Total operating expenses	33,320	32,206	99,538	96,230
Loss from operations	(17,884)	(19,809)	(66,768)	(72,680)
Other (income) expense:
Interest income	(31)	(559)	(396)	(1,959)
Interest expense	3,350	2,372	9,506	7,148
Foreign currency losses	11	31	44	34
Loss on extinguishment of debt	0	7,155	0	7,155
Net loss	$ (21,214)	$ (28,808)	$ (75,922)	$ (85,058)
Net loss per share of common stock, basic and diluted (in USD per share)	$ (0.43)	$ (0.69)	$ (1.62)	$ (2.06)
Weighted average common shares outstanding, basic and diluted (in shares)	48,907,514	41,454,181	46,914,561	41,341,570
Net product revenues
Total revenues	$ 15,436	$ 8,667	$ 32,770	$ 19,320
Licensing revenues
Total revenues	$ 0	$ 3,730	$ 0	$ 4,230

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (21,214)	$ (28,808)	$ (75,922)	$ (85,058)
Other comprehensive loss:
Foreign currency translation adjustment	13	(12)	(17)	(22)
Comprehensive loss	$ (21,201)	$ (28,820)	$ (75,939)	$ (85,080)

- Definition

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

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+ Details

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2018		41,227,530
Beginning balance at Dec. 31, 2018	$ 118,611	$ 41	$ 436,554	$ (317,927)	$ (57)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation expense	2,425		2,425
Exercise of common stock options (in shares)		5,000
Exercise of common stock options	15		15
Issuance of common stock under employee stock purchase plan (in shares)		31,892
Issuance of common stock under employee stock purchase plan	173		173
Foreign currency translation adjustment	3				3
Net loss	(28,874)			(28,874)
Ending balance (in shares) at Mar. 31, 2019		41,264,422
Ending balance at Mar. 31, 2019	92,353	$ 41	439,167	(346,801)	(54)
Beginning balance (in shares) at Dec. 31, 2018		41,227,530
Beginning balance at Dec. 31, 2018	118,611	$ 41	436,554	(317,927)	(57)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(85,058)
Ending balance (in shares) at Sep. 30, 2019		41,488,370
Ending balance at Sep. 30, 2019	44,518	$ 41	447,541	(402,985)	(79)
Beginning balance (in shares) at Mar. 31, 2019		41,264,422
Beginning balance at Mar. 31, 2019	92,353	$ 41	439,167	(346,801)	(54)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation expense	2,716		2,716
Exercise of common stock options (in shares)		88,587
Exercise of common stock options	354		354
Issuance of common stock under employee stock purchase plan (in shares)		77,909
Issuance of common stock under employee stock purchase plan	439		439
Foreign currency translation adjustment	(13)				(13)
Net loss	(27,376)			(27,376)
Ending balance (in shares) at Jun. 30, 2019		41,430,918
Ending balance at Jun. 30, 2019	68,473	$ 41	442,676	(374,177)	(67)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation expense	2,469		2,469
Exercise of common stock options (in shares)		57,452
Exercise of common stock options	172		172
Exercise of warrants	2,224		2,224
Foreign currency translation adjustment	(12)				(12)
Net loss	(28,808)			(28,808)
Ending balance (in shares) at Sep. 30, 2019		41,488,370
Ending balance at Sep. 30, 2019	44,518	$ 41	447,541	(402,985)	(79)
Beginning balance (in shares) at Dec. 31, 2019		45,906,162
Beginning balance at Dec. 31, 2019	61,583	$ 46	489,565	(427,980)	(48)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation expense	2,429		2,429
Foreign currency translation adjustment	(25)				(25)
Net loss	(28,856)			(28,856)
Ending balance (in shares) at Mar. 31, 2020		45,906,162
Ending balance at Mar. 31, 2020	35,131	$ 46	491,994	(456,836)	(73)
Beginning balance (in shares) at Dec. 31, 2019		45,906,162
Beginning balance at Dec. 31, 2019	61,583	$ 46	489,565	(427,980)	(48)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(75,922)
Ending balance (in shares) at Sep. 30, 2020		52,080,552
Ending balance at Sep. 30, 2020	27,683	$ 52	531,598	(503,902)	(65)
Beginning balance (in shares) at Mar. 31, 2020		45,906,162
Beginning balance at Mar. 31, 2020	35,131	$ 46	491,994	(456,836)	(73)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation expense	2,748		2,748
Exercise of common stock options (in shares)		15,806
Exercise of common stock options	71		71
Issuance of common stock under employee stock purchase plan (in shares)		70,305
Issuance of common stock under employee stock purchase plan	516		516
Foreign currency translation adjustment	(5)				(5)
Net loss	(25,852)			(25,852)
Ending balance (in shares) at Jun. 30, 2020		45,992,273
Ending balance at Jun. 30, 2020	12,609	$ 46	495,329	(482,688)	(78)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation expense	2,615		2,615
Exercise of common stock options (in shares)		43,636
Exercise of common stock options	5		5
Sale of common stock, net of offering costs (in shares)		6,000,000
Sale of common stock, net of offering costs	33,405	$ 6	33,399
Issuance of common stock with Pharmakon Amendment (in shares)		44,643
Issuance of common stock in connection with Pharmakon Amendment	250		250
Foreign currency translation adjustment	13				13
Net loss	(21,214)			(21,214)
Ending balance (in shares) at Sep. 30, 2020		52,080,552
Ending balance at Sep. 30, 2020	$ 27,683	$ 52	$ 531,598	$ (503,902)	$ (65)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities:
Net loss	$ (75,922)	$ (85,058)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	1,036	878
Stock-based compensation	7,857	7,552
Amortization of debt discount and issuance costs	899	382
Loss on extinguishment of debt	0	7,155
Changes in operating assets and liabilities:
Accounts receivable	(3,881)	(8,435)
Grants and other receivables	0	10
Prepaid expenses and other assets	2,144	(221)
Inventory	(5,773)	2,753
Accounts payable	2,821	(1,928)
Accrued expenses and other liabilities	3,770	4,203
Cash used in operating activities	(67,049)	(72,709)
Investing activities:
Purchases of property and equipment	(460)	(485)
Cash used in investing activities	(460)	(485)
Financing activities:
Proceeds from the sale of common stock	33,600	0
Proceeds from long-term debt	34,447	77,596
Proceeds from the issuance of warrants	0	2,404
Repayment of long-term debt	(4,447)	(80,179)
Cash paid for financing costs	(690)	(3,277)
Proceeds from issuance of common stock under employee stock purchase plan	516	612
Proceeds from the exercise of stock options	76	542
Cash provided by (used in) financing activities	63,502	(2,302)
Effects of exchange rate changes on cash and cash equivalents	(11)	(11)
Net decrease in cash, cash equivalents and restricted cash	(4,018)	(75,507)
Cash, cash equivalents and restricted cash at beginning of period	147,165	201,011
Cash, cash equivalents and restricted cash at end of period	143,147	125,504
Supplemental disclosure of noncash activities:
Fixed asset purchases within accounts payable and accrued expenses	55	17
Financing costs within accounts payable and accrued expenses	147	280
Fair value of common stock issued in connection with Pharmakon amendment	250	0
Recognition of right-of-use assets	5,513	2,479
Recognition of lease liabilities	$ 5,513	$ 2,956

Organization and Description of Business	9 Months Ended
Organization and Description of Business	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business OptiNose, Inc. (the Company) was incorporated in Delaware in May 2010 (inception) and has facilities in Yardley, Pennsylvania, Ewing, New Jersey, and Oslo, Norway. The Company's predecessor entity, OptiNose AS, was formed under the laws of Norway in September 2000. In 2010, OptiNose AS became a wholly-owned subsidiary of the Company as part of an internal reorganization. The Company is a specialty pharmaceutical company focused on the development and commercialization of products for patients treated by ear, nose and throat (ENT) and allergy specialists. The Company's first commercial product, XHANCE® (fluticasone propionate) nasal spray, 93 mcg, is a therapeutic utilizing its proprietary Exhalation Delivery System (EDS) device that delivers a topically-acting corticosteroid for the treatment of chronic rhinosinusitis with nasal polyps and, if approved, chronic rhinosinusitis without nasal polyps (also referred to as chronic sinusitis). XHANCE was approved by the United States (US) Food and Drug Administration (FDA) in September 2017 for the treatment of nasal polyps in patients 18 years of age or older. XHANCE was made widely available through commercial channels in April 2018.

Liquidity	9 Months Ended
Liquidity	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity	Liquidity Since inception, the Company's operations have focused on organization and staffing, business planning, raising capital, establishing an intellectual property portfolio, conducting preclinical studies and clinical trials, pursuing regulatory approvals and most recently, commercializing XHANCE in the US. As of September 30, 2020, the Company had cash and cash equivalents of $143,134. In addition, as discussed in Note 9, at the Company's option, $20,000 of Pharmakon Senior Secured Notes (the Third Delayed Draw Notes) may be issued between August 15, 2020 and February 15, 2021 as the Company exceeded XHANCE net sales and royalties for the quarter ended September 30, 2020 of $14,500. The Company expects to draw the $20,000 available to it from the Third Delayed Draw Notes by early 2021, subject to it continuing to meet certain eligibility requirements at the time of the draw. The Company will likely require additional capital in the future secured through equity or debt financings, partnerships, collaborations, or other sources in order to meet its debt service obligations, including repayment, under the Company's outstanding senior secured notes, and to carry out the Company's planned development and commercial activities. The terms of the outstanding senior secured notes, including applicable covenants, are described in Note 9. If additional capital is not secured when required, the Company may need to delay or curtail its operations until additional funding is received. The Company is subject to a number of risks similar to other life sciences companies, including, but not limited to, successful discovery, development and commercialization of its products and product candidates, raising additional capital, the development by its competitors of new technological innovations, protection of proprietary technology and market acceptance of the Company's products.

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited interim consolidated financial statements have been prepared in conformity with US generally accepted accounting principles (GAAP). Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Updates (ASU) of the Financial Accounting Standards Board (FASB).

In the opinion of management, the accompanying unaudited interim financial statements include all normal and recurring adjustments (which consist primarily of accruals and estimates that impact the financial statements) considered necessary to present fairly the Company's financial position as of September 30, 2020 and its results of operations for the three and nine months ended September 30, 2020 and 2019 and cash flows for the nine months ended September 30, 2020 and 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The

unaudited interim financial statements, presented herein, do not contain the required disclosures under GAAP for annual financial statements. The accompanying unaudited interim financial statements should be read in conjunction with the annual audited financial statements and related notes as of and for the year ended December 31, 2019 contained in the Company’s annual report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 5, 2020.

Use of estimates

The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and reported amounts of expenses during the reporting period. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the unaudited interim consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the unaudited interim consolidated financial statements in the period they are determined to be necessary.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and accounts receivable. The Company generally invests its cash in deposits with high credit quality financial institutions. Additionally, the Company performs periodic evaluations of the relative credit standing of these financial institutions.

Customer and supplier concentration

XHANCE is sold to wholesale pharmaceutical distributors and Preferred Pharmacy Network (PPN) partners, who, in turn, sell XHANCE to pharmacies, hospitals and other customers. Five customers represent approximately 48% of the Company's accounts receivable at September 30, 2020 and five customers represent approximately 43% and 46% of the Company's net product sales for the three and nine months ended September 30, 2020, respectively.

The Company purchases XHANCE and its components from several third-party suppliers and manufacturing partners, certain of which are available through a single source. Although the Company could obtain each of these components from alternative third-party suppliers, it would need to qualify and obtain FDA approval for another supplier as a source for each such component.

Fair value of financial instruments

At September 30, 2020 and December 31, 2019, the Company's financial instruments included cash and cash equivalents, accounts receivable, grants receivable, accounts payable and accrued expenses. The carrying amounts reported in the Company's financial statements for these instruments approximate their respective fair values because of the short-term nature of these instruments. In addition, at September 30, 2020, the Company believes the carrying value of long-term debt approximates fair value as the interest rates are reflective of the rate the Company could obtain on debt with similar terms and conditions. At September 30, 2020 and December 31, 2019, there were no financial assets or liabilities measured at fair value on a recurring basis.

Restricted cash

As of September 30, 2020 and December 31, 2019, the restricted cash balance included in prepaid expenses and other assets was $13 and $21, respectively.

Net product revenues

The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (ASC 606), which was adopted on January 1, 2018. The Company recognizes revenue from XHANCE sales at the point customers obtain control of the product, which generally occurs upon delivery. The transaction price that is recognized as revenue for products includes an estimate of variable consideration. The Company’s estimates of

variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available. The components of the Company’s variable consideration include the following:

Provider Chargebacks and Discounts. Chargebacks for fees and discounts to providers represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list prices charged to customers who directly purchase the product from the Company. Customers charge the Company for the difference between what they pay for the product and the ultimate selling price to the qualified healthcare providers. These components of variable consideration are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and accounts receivable.

Trade Discounts and Allowances. The Company generally provides customers with discounts that include incentive fees which are explicitly stated in the Company’s contracts. These discounts are recorded as a reduction of revenue and accounts receivable in the period in which the related product revenue is recognized.

Product Returns. Consistent with industry practice, the Company has a product returns policy that provides customers a right of return for product purchased within a specified period prior to and subsequent to the product’s expiration date. The Company estimates the amount of its product that may be returned and presents this amount as a reduction of revenue in the period the related product revenue is recognized, in addition to establishing a liability. The Company considers several factors in the estimation process, including expiration dates of product shipped to customers, inventory levels within the distribution channel, product shelf life, prescription trends and other relevant factors.

Government Rebates. The Company is subject to discount obligations under state Medicaid programs and Medicare. Reserves related to these discount obligations are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. The Company’s liability for these rebates consists of estimates of claims for the current quarter and estimated future claims that will be made for product that has been recognized as revenue but remains in the distribution channel inventories at the end of the reporting period.

Payor Rebates. The Company contracts with certain third-party payors, primarily health insurance companies and pharmacy benefit managers, for the payment of rebates with respect to utilization of its products. These rebates are based on contractual percentages applied to the amount of product prescribed to patients who are covered by the plan or the organization with which it contracts. The Company estimates these rebates and records such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability.

Patient Assistance. Other programs that the Company offers include voluntary co-pay patient assistance programs intended to provide financial assistance to eligible patients with prescription drug co-payments required by payors and coupon programs for cash payors. The calculation of the current liability for this assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue but remains in the distribution channel inventories at the end of each reporting period.

Licensing revenues

The Company has license agreements with Inexia Limited (Inexia) and Currax Pharmaceuticals LLC (Currax). These license agreements provide for exclusive licensed rights to certain intellectual property, a non-refundable up-front payment, potential milestone payment(s) and potential royalty payment(s). The Company analyzed the performance obligations under the license agreements, the consideration received to date and the consideration the Company could receive in the future as part of its analysis related to ASC 606. No licensing revenues were recognized during the three and nine months ended September 30, 2020 (Note 8). The Company recognized the upfront payments from the licensing agreements of $3,730 and $4,230 as licensing revenue upon the delivery of the license performance obligations during the three and nine months ended September 30, 2019, respectively.

Net income (loss) per common share

Basic net income (loss) per common share is determined by dividing net income (loss) applicable to Company common stock (Common Stock) holders by the weighted average common shares outstanding during the period. For the three and nine months ended September 30, 2020 and 2019, the outstanding Common Stock options, Common Stock warrants and shares to be issued under the Company's 2017 Employee Stock Purchase Plan have been excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, the weighted average shares used to calculate both basic and diluted net loss per share are the same.

Diluted net loss per common share for the periods presented do not reflect the following potential common shares, as the effect would be antidilutive:


	September 30,
	2020	2019
Stock options	8,157,752	7,748,519
Restricted stock units	1,499,456	—
Common stock warrants	2,677,188	2,677,188
Employee stock purchase plan	62,699	48,279
Total	12,397,095	10,473,986

Income taxes

In accordance with ASC 270, Interim Reporting, and ASC 740, Income Taxes, the Company is required at the end of each interim period to determine the best estimate of its annual effective tax rate and then apply that rate in providing for income taxes on a current year-to-date (interim period) basis. For the three and nine months ended September 30, 2020 and 2019, the Company recorded no tax expense or benefit due to the expected current year loss and its historical losses. As of September 30, 2020 and December 31, 2019, the Company has concluded that a full valuation allowance is necessary for all of its net deferred tax assets. The Company had no amounts recorded for uncertain tax positions, interest or penalties in the accompanying consolidated financial statements.

Recent accounting pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 eliminated certain exceptions and changed guidance on other matters. The exceptions relate to the allocation of income taxes in separate company financial statements, tax accounting for equity method investments and accounting for income taxes when the interim period year-to-date loss exceeds the anticipated full year loss. Changes relate to the accounting for franchise taxes that are income-based and non-income-based, determining if a step up in tax basis is part of a business combination or if it is a separate transaction, when enacted tax law changes should be included in the annual effective tax rate computation, and the allocation of taxes in separate company financial statements to a legal entity that is not subject to income tax. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of the adoption of this standard on its results of operations, financial position and cash flows and related disclosures.

In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 requires that certain implementation costs incurred in a cloud computing arrangement be deferred and recognized over the term of the arrangement. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. The Company adopted ASU 2016-02 on January 1, 2020 using the prospective transition method, which did not have a material impact on the Company’s results of operations, financial position, cash flows and related disclosures.

In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 resulted in certain modifications to fair value measurement disclosures, primarily related to level 3 fair value measurements. The new standard is effective for

fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. The Company adopted ASU 2018-13 on January 1, 2020, which did not have a material impact on the Company’s disclosures.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-03, in conjunction with ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022 for companies deemed to be smaller reporting companies as of November 15, 2019, with early adoption permitted. The Company is currently evaluating the potential impact of the adoption of this standard on its results of operations, financial position and cash flows and related disclosures.

Inventory

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following:


	September 30, 2020		December 31, 2019
Raw materials	$	2,733	$	1,227
Work-in-process	2,137		676
Finished goods	4,456		1,581
Total inventory	$	9,326	$	3,484

Inventories are stated at the lower of cost or net realizable value, as determined on a first-in, first-out, basis.

Property and Equipment

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment, net, consisted of the following:


	September 30, 2020		December 31, 2019
Computer equipment and software	$	1,113	$	1,112
Furniture and fixtures	366		366
Machinery and equipment	3,139		3,142
Leasehold improvements	609		609
Construction in process	474		70
	5,701		5,299
Less: accumulated depreciation	(3,293)		(2,247)
	$	2,408	$	3,052

Depreciation expense was $473 and $286 for the three months ended September 30, 2020 and 2019, respectively. Depreciation expense was $1,035 and $877 for the nine months ended September 30, 2020 and 2019, respectively. In addition, depreciation expense of $394 and $10 was charged to inventory and prepaid expenses and other assets, respectively, as of September 30, 2020, which represents depreciation expense related to equipment involved in the manufacturing process.

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

LeasesThe Company leases office space, storage space and equipment (primarily vehicles). Certain office space leases include options to renew that generally can extend the lease term up to three years. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. On September 18, 2020, the Company amended one of its existing office lease agreements to extend the term of the lease by three years.

The table below presents the operating lease assets and liabilities recognized on the Company's consolidated balance sheets as of September 30, 2020:

Balance Sheet Line Item

September 30, 2020

Non-current operating lease assets

Other assets

5,999

Operating lease liabilities:

Current operating lease liabilities

Accrued expenses and other current liabilities

1,904

Non-current operating lease liabilities

Other liabilities

4,236

Total operating lease liabilities

6,140

The table below reconciles the undiscounted future minimum lease payments (displayed in aggregate by year) under non-cancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheets as of September 30, 2020:


	September 30, 2020
2020	$	586
2021	2,166
2022	1,982
2023	1,589
Thereafter	420
Total undiscounted future minimum lease payments	6,743
Less: difference between undiscounted lease payments and discounted operating lease liabilities	$	603
Total operating lease liabilities	$	6,140

Accrued Expenses and Other Current Liabilities

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of:


	September 30, 2020		December 31, 2019
Accrued expenses:
Product revenue allowances	$	15,540	$	12,858
Selling, general and administrative expenses	5,349		5,544
Research and development expenses	4,363		3,379
Payroll expenses	6,686		7,810
Inventory purchases	2,581		1,230
Other	858		558
Total accrued expenses	35,377		31,379
Other current liabilities:
Lease liability	1,904		1,135
Total other current liabilities	1,904		1,135
Total accrued expenses and other current liabilities	$	37,281	$	32,514

Licensing Revenue	9 Months Ended
Licensing Revenue	Sep. 30, 2020
Research and Development [Abstract]
Licensing Revenue	Licensing Revenue Inexia License Agreement On January 31, 2019, OptiNose AS entered into a license agreement (the Inexia License Agreement) with Inexia Limited (Inexia) pursuant to which the Company granted Inexia an exclusive worldwide license to certain intellectual property for the development and commercialization of products containing orexin receptor agonist and/or orexin receptor positive modulator molecules for the treatment, diagnosis or prevention of human diseases or conditions associated primarily with orexin receptor agonism and orexin receptor positive modulation. Under the terms of the Inexia License Agreement, Inexia paid the Company a $500 upfront payment, which was recognized as license revenue in the first quarter of 2019. For each product developed under the Inexia License Agreement, the Company is eligible to receive up to $8,000 of development milestone payments and up to $37,000 of sales milestone payments. In addition, the Company is eligible to receive tiered, low-to-mid single digit royalties based on net sales of any products successfully developed and commercialized under the Inexia License Agreement. Other than the upfront payment, the Company does not anticipate the receipt of any milestone or royalty payments from Inexia in the near term.

Long-term Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Long-term Debt

On September 12, 2019 (the Closing Date), the Company entered into a Note Purchase Agreement (the Pharmakon Senior Secured Notes) with funds managed by Pharmakon Advisors, LP (Pharmakon), the investment manager of the BioPharma Credit funds (BioPharma). The Pharmakon Senior Secured Notes provide the Company with up to $150,000 in debt financing, of which $80,000 was issued on the Closing Date. On February 13, 2020, the Company received an additional $30,000 (the First Delayed Draw Notes) after achieving the $9,000 XHANCE net sales and royalties threshold for the quarter ended December 31, 2019.

At the Company's option, $20,000 of Pharmakon Senior Secured Notes may be issued between August 15, 2020 and February 15, 2021 (the Third Delayed Draw Notes, and together with the First Delayed Draw Notes and the Additional Delayed Draw Notes, collectively, the Delayed Draw Notes) subject to the Company achieving either (x) XHANCE net sales and royalties for the quarter ended September 30, 2020 of at least $14,500 or (y) XHANCE net sales and royalties for the six months ended December 31, 2020 of at least $31,000. The Company achieved the XHANCE net sales and royalties threshold associated with the Third Delayed Draw Notes for the quarter ended September 30, 2020 and therefore, has the option to draw the Third Delayed Draw Notes prior to February 15, 2021, subject to meeting certain eligibility requirements at the time of the draw.

On August 13, 2020, in conjunction with the Offering (see Note 11), the Company entered into an amendment (the Amendment) to the Pharmakon Senior Secured Notes. The Amendment provides the Company with the option to issue an additional $20,000 of Pharmakon Senior Secured Notes (the Additional Delayed Draw Notes), subject to the Company achieving XHANCE net sales and royalties for the quarter ended June 30, 2021 of at least $26,000 and certain other conditions. As consideration for the Amendment, the Company issued 44,643 shares of Common

Stock to Pharmakon. The aggregate fair value of $250 was recorded as debt issuance costs and is being amortized to interest expense over the term of the Pharmakon Senior Secured Notes.

The Pharmakon Senior Secured Notes bear interest at a fixed per annum rate of 10.75% and are scheduled to mature on September 12, 2024 (the Maturity Date). The Company is required to make quarterly interest payments until the Maturity Date. The Company is also required to make principal payments, which are payable in eight equal quarterly installments beginning on December 15, 2022 and continuing until the Maturity Date; provided that the Company may, at its election, postpone any such principal payment until the Maturity Date if, as of the applicable payment date, certain trailing four-quarter consolidated XHANCE net sales and royalties thresholds have been achieved.

In conjunction with the Pharmakon Senior Secured Notes, the Company paid an upfront fee of $1,125 on the Closing Date and issued warrants to purchase an aggregate of 810,357 shares of Common Stock at an exercise price equal to $6.72 per share, which expire on September 12, 2022. The upfront fees were recorded as debt discount at issuance and are being amortized to interest expense over the five year term of the loan. The Company also incurred $4,991 in debt issuance costs, including $2,404 related to the fair value of the warrants and $150 associated with the First Delayed Draw Notes, which are also being amortized to interest expense over the term of the Pharmakon Senior Secured Notes. The Company will incur additional debt issuance costs of 0.5% of the principal amount of the remaining Delayed Draw Notes, if issued.

The Company is required to repay the Pharmakon Senior Secured Notes in full upon the occurrence of a change of control (as defined in the Note Purchase Agreement). In addition, the Company may make voluntary prepayments in whole or in part. All mandatory and voluntary prepayments are subject to the payment of prepayment premiums as follows: (i) if prepayment occurs prior to the third anniversary of the Closing Date, an amount equal to 2% of the principal prepaid, (ii) if prepayment occurs on or after the third anniversary of the Closing Date but prior to the fourth anniversary of the Closing Date, an amount equal to 1% of the principal prepaid, and (iii) if prepayment occurs on or after the fourth anniversary of the Closing Date, no prepayment premium is required. Additionally, the Company is also required to pay a "make-whole" amount in respect of any principal payments (whether mandatory or voluntary) made prior to the 30-month anniversary of the issuance of the applicable note, in an amount equal to the interest that would have accrued through the 30-month anniversary in respect of such note but for such principal payment.

The Pharmakon Senior Secured Notes are secured by a pledge of substantially all of the Company's assets and contains affirmative and negative covenants customary for financings of this type, including limitations on the Company’s and its subsidiaries’ ability, among other things, to incur additional debt, grant or permit additional liens, make investments and acquisitions, merge or consolidate with others, dispose of assets, pay dividends and distributions, repay junior indebtedness and enter into affiliate transactions, in each case, subject to certain exceptions. In addition, the Pharmakon Senior Secured Notes contain financial covenants requiring the Company to maintain at all times certain minimum trailing twelve-month consolidated XHANCE net sales and royalties, tested on a quarterly basis, and at least $30,000 of cash and cash equivalents. As of September 30, 2020, the Company was in compliance with the covenants.

The Note Purchase Agreement also includes events of default customary for financings of this type, in certain cases subject to customary periods to cure, following which BioPharma may accelerate all amounts outstanding under the notes.

On September 12, 2019, in conjunction with the entry into the Pharmakon Senior Secured Notes, the Company terminated the Athyrium senior secured notes and all outstanding amounts under such notes were repaid in full, and all security interests and other liens granted to or held by Athyrium were terminated and released.

The Company recorded interest expense of $3,350 and $2,371 during the three months ended September 30, 2020 and 2019, respectively, and $9,506 and $7,148 during the nine months ended September 30, 2020 and 2019, respectively, in conjunction with both Pharmakon Senior Secured Notes and the Athyrium senior secured notes. Interest expense included total coupon interest, exit fees, front end fees and the amortization of debt issuance costs.

The long-term debt balance is comprised of the following:



	September 30, 2020		December 31, 2019
Face amount	$	110,000	$	80,000
Front end fees	(903)		(1,030)
Debt issuance costs	(4,084)		(4,439)
Long-term debt, net	$	105,013	$	74,531

Employee Benefit Plans	9 Months Ended
Employee Benefit Plans	Sep. 30, 2020
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit PlansFor US employees, the Company maintains a defined contribution 401(k) retirement plan. As of September 30, 2020, approximately $105 is recorded in accrued liabilities related to the Company match. The Company's contributions are made in cash. For Norway employees, the Company maintains defined contribution pension plans which meet the statutory requirements of those jurisdictions. The Company maintained a defined contribution pension plan for former UK employees through August 5, 2020. The Company incurred costs related to the pension plans of $5 and $4 for the three months ended September 30, 2020 and 2019, respectively, and $15 for the nine months ended September 30, 2020 and 2019

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Stockholders' Equity

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Stockholders' Equity

Common stock

On August 18, 2020, the Company closed an underwritten public offering (the Offering) of 6,000,000 shares of Company common stock (Common Stock) at a price of $5.60 per share. As a result of the offering, the Company received $33,405 in net proceeds, after deducting offering expenses of approximately $195 payable by the Company.

Common stock warrants

As of September 30, 2020, the Company had the following warrants outstanding to purchase shares of Common Stock:


Number of Shares	Exercise Price Per Share		Expiration Date
1,866,831	$	8.16	November 1, 2020
810,357	$	6.72	September 12, 2022

Stock-based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

The Company recorded stock-based compensation expense related to stock options and shares issued under the Company's 2017 Employee Stock Purchase Plan (2017 Plan) in the following expense categories of its accompanying consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cost of product sales	$	25	$	33	$	113	$	78
Research and development	334		90		922		617
General and administrative	2,267		2,312		6,822		6,857
	$	2,626	$	2,435	$	7,857	$	7,552

In addition, stock-based compensation expense of $68 and $1 was charged to inventory and prepaid expenses and other assets, respectively, during the nine months ended September 30, 2020, which represents the total stock-based compensation expense incurred related to employees involved in the manufacturing process of finished goods and samples during the period.

Stock Options

The Company issues stock-based awards pursuant to its 2010 Stock Incentive Plan, as amended and restated (A&R Plan).The Company has issued service-based and performance-based stock options that generally have a contractual life of up to 10 years and may be exercisable in cash or as otherwise determined by the Company's board of directors or committee thereof. Vesting generally occurs over a period of not greater than four years. Performance-based options may vest upon the achievement of certain milestones in connection with the Company's development programs. Additionally, the Company has issued stock options in excess of the fair market value of Common Stock on the issuance date that were only exercisable upon a change in control or upon or after an initial public offering. As of September 30, 2020, all of the performance conditions related to performance-based stock options issued by the Company have been achieved.

The following table summarizes the activity related to stock option grants to employees and nonemployees for the nine months ended September 30, 2020:


	Shares	Weighted average exercise price per share		Weighted average remaining contractual life
Outstanding at December 31, 2019	7,399,217	$	9.81	6.37
Granted	1,303,210	5.64
Exercised	(71,748)	2.26
Expired	—	—
Forfeited	(472,927)	10.13
Outstanding at September 30, 2020	8,157,752	$	9.19	6.12
Exercisable at September 30, 2020	5,384,480	$	9.58	4.83
Vested and expected to vest at September 30, 2020	8,157,752	$	9.19	6.12

During the nine months ended September 30, 2020, stock options to purchase 1,303,210 shares of Common Stock were granted to employees and generally vest over four years. The stock options had an estimated weighted average grant date fair value of $3.44. During the nine months ended September 30, 2019, stock options to purchase 2,070,173 shares of Common Stock were granted to employees that generally vest over four years. The stock options had an estimated weighted average grant date fair value of $4.78.

Included in the table above are 90,000 of options granted outside the A&R Plan. The grants were made pursuant to the NASDAQ inducement grant exception in accordance with NASDAQ Listing Rule 5635(c)(4).

The grant date fair value of each stock option grant was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions:


	Nine Months Ended September 30,
	2020			2019
Risk free interest rate	0.71		%	2.48		%
Expected term (in years)	6.03			6.05
Expected volatility	68.77		%	67.03		%
Annual dividend yield	0.00		%	0.00		%
Fair value of common stock	$	5.64		$	7.70

At September 30, 2020, the unrecognized compensation cost related to unvested stock options expected to vest was $14,082. This unrecognized compensation will be recognized over an estimated weighted-average amortization period of 2.13 years.

Restricted Stock Units

The Company has issued service-based and performance-based restricted stock units (RSUs). Vesting generally occurs over a period not greater than four years. Vesting of the performance-based RSUs is subject to the achievement of certain milestones in connection with the Company's development programs.

The following table summarizes the activity related to RSUs granted to employees for the nine months ended September 30, 2020:


			Shares
Balance at December 31, 2019			—
Granted			1,542,172
Vested and settled			—
Expired/forfeited/canceled			(42,716)
Balance at September 30, 2020			1,499,456
Expected to vest at September 30, 2020			1,499,456

During the nine months ended September 30, 2020, the Company granted 1,542,172 RSUs at a weighted-average grant date fair value of $5.27, of which 970,119 were service-based RSUs and 572,053 were performance-based RSUs. As of September 30, 2020, the milestones associated with the performance based-RSUs are not probable of achievement, and accordingly, no stock based compensation expense has been recognized to date for these awards. At September 30, 2020, the unrecognized compensation cost related to unvested service-based RSUs expected to vest was $4,260, to be recognized over an estimated weighted-average amortization period of 3.45 years. The unrecognized compensation cost related to unvested performance-based RSUs was $3,095, which will be recognized commencing in the period in which the performance condition is deemed probable of achievement over the remaining service period.

Included in the table above are 60,000 of RSUs granted outside the A&R Plan. The grants were made pursuant to the NASDAQ inducement grant exception in accordance with NASDAQ Listing Rule 5635(c)(4).

2017 Employee Stock Purchase Plan

Under the 2017 Plan, shares of Common Stock may be purchased by eligible employees who elect to participate in the 2017 Plan at 85% of the lower of the fair market value of Common Stock on the first or last day of designated offering periods. The Company recognized stock-based compensation expense of $102 and $91 during the three months ended September 30, 2020 and 2019, respectively, and $389 and $319 during the nine months ended September 30, 2020 and 2019, respectively, related to the 2017 Plan.

The Company calculated the fair value of each option grant and the shares issued under the 2017 Plan on the respective dates of grant using the following weighted average assumptions:


	Nine Months Ended September 30,
	2020		2019
Risk free interest rate	0.96	%	2.32	%
Expected term (in years)	0.5		0.5
Expected volatility	84.55	%	73.34	%
Annual dividend yield	0.00	%	0.00	%

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of estimates	Use of estimates The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and reported amounts of expenses during the reporting period. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the unaudited interim consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the unaudited interim consolidated financial statements in the period they are determined to be necessary.
Concentration of credit risk and customer and supplier concentration	Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and accounts receivable. The Company generally invests its cash in deposits with high credit quality financial institutions. Additionally, the Company performs periodic evaluations of the relative credit standing of these financial institutions. Customer and supplier concentration XHANCE is sold to wholesale pharmaceutical distributors and Preferred Pharmacy Network (PPN) partners, who, in turn, sell XHANCE to pharmacies, hospitals and other customers
Fair value of financial instruments	Fair value of financial instrumentsAt September 30, 2020 and December 31, 2019, the Company's financial instruments included cash and cash equivalents, accounts receivable, grants receivable, accounts payable and accrued expenses. The carrying amounts reported in the Company's financial statements for these instruments approximate their respective fair values because of the short-term nature of these instruments. In addition, at September 30, 2020, the Company believes the carrying value of long-term debt approximates fair value as the interest rates are reflective of the rate the Company could obtain on debt with similar terms and conditions.
Restricted cash	Restricted cashAs of September 30, 2020 and December 31, 2019, the restricted cash balance included in prepaid expenses and other assets was $13 and $21, respectively.
Net product revenues and licensing revenues	Net product revenues The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (ASC 606), which was adopted on January 1, 2018. The Company recognizes revenue from XHANCE sales at the point customers obtain control of the product, which generally occurs upon delivery. The transaction price that is recognized as revenue for products includes an estimate of variable consideration. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available. The components of the Company’s variable consideration include the following: Provider Chargebacks and Discounts. Chargebacks for fees and discounts to providers represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list prices charged to customers who directly purchase the product from the Company. Customers charge the Company for the difference between what they pay for the product and the ultimate selling price to the qualified healthcare providers. These components of variable consideration are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and accounts receivable. Trade Discounts and Allowances. The Company generally provides customers with discounts that include incentive fees which are explicitly stated in the Company’s contracts. These discounts are recorded as a reduction of revenue and accounts receivable in the period in which the related product revenue is recognized. Product Returns. Consistent with industry practice, the Company has a product returns policy that provides customers a right of return for product purchased within a specified period prior to and subsequent to the product’s expiration date. The Company estimates the amount of its product that may be returned and presents this amount as a reduction of revenue in the period the related product revenue is recognized, in addition to establishing a liability. The Company considers several factors in the estimation process, including expiration dates of product shipped to customers, inventory levels within the distribution channel, product shelf life, prescription trends and other relevant factors. Government Rebates. The Company is subject to discount obligations under state Medicaid programs and Medicare. Reserves related to these discount obligations are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. The Company’s liability for these rebates consists of estimates of claims for the current quarter and estimated future claims that will be made for product that has been recognized as revenue but remains in the distribution channel inventories at the end of the reporting period. Payor Rebates. The Company contracts with certain third-party payors, primarily health insurance companies and pharmacy benefit managers, for the payment of rebates with respect to utilization of its products. These rebates are based on contractual percentages applied to the amount of product prescribed to patients who are covered by the plan or the organization with which it contracts. The Company estimates these rebates and records such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. Patient Assistance. Other programs that the Company offers include voluntary co-pay patient assistance programs intended to provide financial assistance to eligible patients with prescription drug co-payments required by payors and coupon programs for cash payors. The calculation of the current liability for this assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue but remains in the distribution channel inventories at the end of each reporting period. Licensing revenues The Company has license agreements with Inexia Limited (Inexia) and Currax Pharmaceuticals LLC (Currax). These license agreements provide for exclusive licensed rights to certain intellectual property, a non-refundable up-front payment, potential milestone payment(s) and potential royalty payment(s). The Company analyzed the performance obligations under the license agreements, the consideration received to date and the consideration the Company could receive in the future as part of its analysis related to ASC 606. No licensing revenues were recognized during the three and nine months ended September 30, 2020 (Note 8). The Company recognized the upfront payments from the licensing agreements of $3,730 and $4,230 as licensing revenue upon the delivery of the license performance obligations during the three and nine months ended September 30, 2019, respectively.
Net income (loss) per common share	Net income (loss) per common shareBasic net income (loss) per common share is determined by dividing net income (loss) applicable to Company common stock (Common Stock) holders by the weighted average common shares outstanding during the period. For the three and nine months ended September 30, 2020 and 2019, the outstanding Common Stock options, Common Stock warrants and shares to be issued under the Company's 2017 Employee Stock Purchase Plan have been excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, the weighted average shares used to calculate both basic and diluted net loss per share are the same.
Income taxes	Income taxes In accordance with ASC 270, Interim Reporting, and ASC 740, Income Taxes, the Company is required at the end of each interim period to determine the best estimate of its annual effective tax rate and then apply that rate in providing for income taxes on a current year-to-date (interim period) basis. For the three and nine months ended September 30, 2020 and 2019, the Company recorded no tax expense or benefit due to the expected current year loss and its historical losses. As of September 30, 2020 and December 31, 2019, the Company has concluded that a full valuation allowance is necessary for all of its net deferred tax assets. The Company had no amounts recorded for uncertain tax positions, interest or penalties in the accompanying consolidated financial statements.
Recent accounting pronouncements	Recent accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 eliminated certain exceptions and changed guidance on other matters. The exceptions relate to the allocation of income taxes in separate company financial statements, tax accounting for equity method investments and accounting for income taxes when the interim period year-to-date loss exceeds the anticipated full year loss. Changes relate to the accounting for franchise taxes that are income-based and non-income-based, determining if a step up in tax basis is part of a business combination or if it is a separate transaction, when enacted tax law changes should be included in the annual effective tax rate computation, and the allocation of taxes in separate company financial statements to a legal entity that is not subject to income tax. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of the adoption of this standard on its results of operations, financial position and cash flows and related disclosures. In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 requires that certain implementation costs incurred in a cloud computing arrangement be deferred and recognized over the term of the arrangement. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. The Company adopted ASU 2016-02 on January 1, 2020 using the prospective transition method, which did not have a material impact on the Company’s results of operations, financial position, cash flows and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 resulted in certain modifications to fair value measurement disclosures, primarily related to level 3 fair value measurements. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. The Company adopted ASU 2018-13 on January 1, 2020, which did not have a material impact on the Company’s disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-03, in conjunction with ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022 for companies deemed to be smaller reporting companies as of November 15, 2019, with early adoption permitted. The Company is currently evaluating the potential impact of the adoption of this standard on its results of operations, financial position and cash flows and related disclosures.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

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- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

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+ Details

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Antidilutive Shares Excluded From Computation of Net Loss Per Share

Diluted net loss per common share for the periods presented do not reflect the following potential common shares, as the effect would be antidilutive:


	September 30,
	2020	2019
Stock options	8,157,752	7,748,519
Restricted stock units	1,499,456	—
Common stock warrants	2,677,188	2,677,188
Employee stock purchase plan	62,699	48,279
Total	12,397,095	10,473,986

Inventory (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following:


	September 30, 2020		December 31, 2019
Raw materials	$	2,733	$	1,227
Work-in-process	2,137		676
Finished goods	4,456		1,581
Total inventory	$	9,326	$	3,484

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net, consisted of the following:


	September 30, 2020		December 31, 2019
Computer equipment and software	$	1,113	$	1,112
Furniture and fixtures	366		366
Machinery and equipment	3,139		3,142
Leasehold improvements	609		609
Construction in process	474		70
	5,701		5,299
Less: accumulated depreciation	(3,293)		(2,247)
	$	2,408	$	3,052

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Assets And Liabilities

The table below presents the operating lease assets and liabilities recognized on the Company's consolidated balance sheets as of September 30, 2020:

Balance Sheet Line Item

September 30, 2020

Non-current operating lease assets

Other assets

5,999

Operating lease liabilities:

Current operating lease liabilities

Accrued expenses and other current liabilities

1,904

Non-current operating lease liabilities

Other liabilities

4,236

Total operating lease liabilities

6,140

Operating Lease, Liability, Maturity


	September 30, 2020
2020	$	586
2021	2,166
2022	1,982
2023	1,589
Thereafter	420
Total undiscounted future minimum lease payments	6,743
Less: difference between undiscounted lease payments and discounted operating lease liabilities	$	603
Total operating lease liabilities	$	6,140

Accrued Expenses and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of:


	September 30, 2020		December 31, 2019
Accrued expenses:
Product revenue allowances	$	15,540	$	12,858
Selling, general and administrative expenses	5,349		5,544
Research and development expenses	4,363		3,379
Payroll expenses	6,686		7,810
Inventory purchases	2,581		1,230
Other	858		558
Total accrued expenses	35,377		31,379
Other current liabilities:
Lease liability	1,904		1,135
Total other current liabilities	1,904		1,135
Total accrued expenses and other current liabilities	$	37,281	$	32,514

Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The long-term debt balance is comprised of the following:



	September 30, 2020		December 31, 2019
Face amount	$	110,000	$	80,000
Front end fees	(903)		(1,030)
Debt issuance costs	(4,084)		(4,439)
Long-term debt, net	$	105,013	$	74,531

- Definition

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.

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+ Details

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Schedule of Warrants Outstanding

As of September 30, 2020, the Company had the following warrants outstanding to purchase shares of Common Stock:


Number of Shares	Exercise Price Per Share		Expiration Date
1,866,831	$	8.16	November 1, 2020
810,357	$	6.72	September 12, 2022

Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Allocated Stock-Based Compensation Expense


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cost of product sales	$	25	$	33	$	113	$	78
Research and development	334		90		922		617
General and administrative	2,267		2,312		6,822		6,857
	$	2,626	$	2,435	$	7,857	$	7,552

Schedule of Stock Option Activity

The following table summarizes the activity related to stock option grants to employees and nonemployees for the nine months ended September 30, 2020:


	Shares	Weighted average exercise price per share		Weighted average remaining contractual life
Outstanding at December 31, 2019	7,399,217	$	9.81	6.37
Granted	1,303,210	5.64
Exercised	(71,748)	2.26
Expired	—	—
Forfeited	(472,927)	10.13
Outstanding at September 30, 2020	8,157,752	$	9.19	6.12
Exercisable at September 30, 2020	5,384,480	$	9.58	4.83
Vested and expected to vest at September 30, 2020	8,157,752	$	9.19	6.12

Schedule of Fair Value Options using Black-Scholes Pricing Model

The grant date fair value of each stock option grant was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions:


	Nine Months Ended September 30,
	2020			2019
Risk free interest rate	0.71		%	2.48		%
Expected term (in years)	6.03			6.05
Expected volatility	68.77		%	67.03		%
Annual dividend yield	0.00		%	0.00		%
Fair value of common stock	$	5.64		$	7.70

The Company calculated the fair value of each option grant and the shares issued under the 2017 Plan on the respective dates of grant using the following weighted average assumptions:


	Nine Months Ended September 30,
	2020		2019
Risk free interest rate	0.96	%	2.32	%
Expected term (in years)	0.5		0.5
Expected volatility	84.55	%	73.34	%
Annual dividend yield	0.00	%	0.00	%

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes the activity related to RSUs granted to employees for the nine months ended September 30, 2020:


			Shares
Balance at December 31, 2019			—
Granted			1,542,172
Vested and settled			—
Expired/forfeited/canceled			(42,716)
Balance at September 30, 2020			1,499,456
Expected to vest at September 30, 2020			1,499,456

Liquidity (Details) - USD ($) $ in Thousands	Sep. 12, 2019	Sep. 30, 2020	Dec. 31, 2019
Subsidiary, Sale of Stock [Line Items]
Cash and cash equivalents		$ 143,134	$ 147,144
Note Purchase Agreement - Third Delayed Draw Notes \| Senior Notes
Subsidiary, Sale of Stock [Line Items]
Debt face amount	$ 20,000
Note Purchase Agreement - Third Delayed Draw Notes \| Senior Notes \| Quarter Ended September 30, 2020
Subsidiary, Sale of Stock [Line Items]
Debt issuance criteria term, net sales and royalties benchmark	$ 14,500

Basis of Presentation and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk	3 Months Ended	9 Months Ended
	Sep. 30, 2020 customer	Sep. 30, 2020 customer
Accounts Receivable
Concentration Risk [Line Items]
Number of customers	5	5
Concentration risk (as a percent)		48.00%
Sales Revenue, Net
Concentration Risk [Line Items]
Number of customers	5	5
Concentration risk (as a percent)	43.00%	46.00%

Basis of Presentation and Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Prepaid Expenses and Other Current Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash	$ 13	$ 21

Basis of Presentation and Summary of Significant Accounting Policies - Licensing revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
License Agreement Terms
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Upfront payment received	$ 0	$ 3,730	$ 0	$ 4,230

Basis of Presentation and Summary of Significant Accounting Policies - Antidilutive Shares Excluded From Computation of Net Loss Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securites excluded from computation of net loss per common share (in shares)	12,397,095	10,473,986
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securites excluded from computation of net loss per common share (in shares)	8,157,752	7,748,519
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securites excluded from computation of net loss per common share (in shares)	1,499,456	0
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securites excluded from computation of net loss per common share (in shares)	2,677,188	2,677,188
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securites excluded from computation of net loss per common share (in shares)	62,699	48,279

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 2,733	$ 1,227
Work-in-process	2,137	676
Finished goods	4,456	1,581
Total inventory	$ 9,326	$ 3,484

Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,701	$ 5,299
Less: accumulated depreciation	(3,293)	(2,247)
Property and equipment, net	2,408	3,052
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,113	1,112
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	366	366
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,139	3,142
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	609	609
Construction in process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 474	$ 70

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property, Plant and Equipment [Line Items]
Depreciation	$ 473	$ 286	$ 1,035	$ 877
Inventory
Property, Plant and Equipment [Line Items]
Depreciation			394
Prepaid expenses and other assets
Property, Plant and Equipment [Line Items]
Depreciation			$ 10

Leases - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Non-current operating lease assets	$ 5,999
Current operating lease liabilities	1,904	$ 1,135
Non-current operating lease liabilities	4,236
Total operating lease liabilities	$ 6,140

Leases - Operating Lease Maturities (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Operating leases
2020	$ 586
2021	2,166
2022	1,982
2023	1,589
Thereafter	420
Total undiscounted future minimum lease payments	6,743
Less: difference between undiscounted lease payments and discounted operating lease liabilities	603
Total operating lease liabilities	$ 6,140

Leases - Narrative (Details)		9 Months Ended
Leases - Narrative (Details)	Sep. 18, 2020	Sep. 30, 2020
Lessee, Lease, Description [Line Items]
Option to renew, extension of lease term	3 years
Maximum
Lessee, Lease, Description [Line Items]
Option to renew, extension of lease term		3 years

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued expenses:
Product revenue allowances	$ 15,540	$ 12,858
Selling, general and administrative expenses	5,349	5,544
Research and development expenses	4,363	3,379
Payroll expenses	6,686	7,810
Inventory purchases	2,581	1,230
Other	858	558
Total accrued expenses	35,377	31,379
Other current liabilities:
Lease liability	1,904	1,135
Total other current liabilities	1,904	1,135
Total accrued expenses and other current liabilities	$ 37,281	$ 32,514

Licensing Revenue (Details)		3 Months Ended		9 Months Ended
Licensing Revenue (Details)	Jan. 31, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)
Inexia License Agreement
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Upfront payment received	$ 500,000
Development milestone payments eligible to be received (up to)	8,000,000
Sales milestone payments eligible to be received (up to)	$ 37,000,000
Currax License Agreement
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Upfront payment received			$ 3,730,000
Additional revenue eligible and held in escrow				$ 750,000
Royalty Agreement
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Development milestone payments eligible to be received (up to)		$ 3,000,000		3,000,000
Sales milestone payments eligible to be received (up to)				$ 1,000,000
Percentage of royalty		0.10		0.10
Licensing revenue		$ 0		$ 0

Long-term Debt - Narrative (Details)			3 Months Ended		9 Months Ended
Long-term Debt - Narrative (Details)	Aug. 13, 2020 USD ($) shares	Sep. 12, 2019 USD ($) installment $ / shares shares	Sep. 30, 2020 USD ($) $ / shares	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) $ / shares	Sep. 30, 2019 USD ($)	Feb. 13, 2020 USD ($)
Debt Instrument [Line Items]
Interest expense			$ 3,350,000	$ 2,371,000	$ 9,506,000	$ 7,148,000
Warrants Expiring September 12, 2022
Debt Instrument [Line Items]
Number of shares called by warrants (in shares) \| shares		810,357
Warrants exercise price (in usd per share) \| $ / shares		$ 6.72	$ 6.72		$ 6.72
Senior Notes \| Note Purchase Agreement
Debt Instrument [Line Items]
Debt maximum borrowing capacity		$ 150,000,000
Debt face amount		80,000,000
Debt issuance costs		$ 4,991,000
Stated interest rate		10.75%
Debt principal payments, number of installments \| installment		8
Debt upfront fee		$ 1,125,000
Loans, term		5 years
Fair value of warrants		$ 2,404,000
Debt issuance costs, additional as percentage of principal amount		0.50%
Prepayment fee, after second and before third anniversary		2.00%
Prepayment fee, after third and before fourth anniversary		1.00%
Prepayment premium amount		$ 0
Debt covenant, cash and cash equivalents		30,000,000
Senior Notes \| Note Purchase Agreement - First Delayed Draw Notes
Debt Instrument [Line Items]
Debt face amount							$ 30,000,000
Fair value of warrants		150,000
Senior Notes \| Note Purchase Agreement - First Delayed Draw Notes \| Quarter Ended December 31, 2019
Debt Instrument [Line Items]
Debt issuance criteria term, net sales and royalties benchmark		9,000,000
Senior Notes \| Note Purchase Agreement - Third Delayed Draw Notes
Debt Instrument [Line Items]
Debt face amount		20,000,000
Senior Notes \| Note Purchase Agreement - Third Delayed Draw Notes \| Quarter Ended September 30, 2020
Debt Instrument [Line Items]
Debt issuance criteria term, net sales and royalties benchmark		14,500,000
Senior Notes \| Note Purchase Agreement - Third Delayed Draw Notes \| Six Months Ended December 31, 2020
Debt Instrument [Line Items]
Debt issuance criteria term, net sales and royalties benchmark		$ 31,000,000
Senior Notes \| Note Purchase Agreement - Additional Delayed Draw Notes
Debt Instrument [Line Items]
Debt face amount	$ 20,000,000
Debt issuance criteria term, net sales and royalties benchmark	$ 26,000,000
Issuance of common stock with Pharmakon Amendment (in shares) \| shares	44,643
Debt issuance costs	$ 250,000

Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Short-term Debt [Line Items]
Long-term debt, net	$ 105,013	$ 74,531
Note Purchase Agreement \| Senior Notes
Short-term Debt [Line Items]
Face amount	110,000	80,000
Front end fees	(903)	(1,030)
Debt issuance costs	(4,084)	(4,439)
Long-term debt, net	$ 105,013	$ 74,531

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Defined Contribution Plan Disclosure [Line Items]
Accrued liabilities related to the Company match	$ 105		$ 105
Norway and UK employee plans
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan, cost	$ 5	$ 4	$ 15	$ 15

Stockholders' Equity - Additional Information (Details) - Public Offering $ / shares in Units, $ in Thousands	Aug. 18, 2020 USD ($) $ / shares shares
Class of Stock [Line Items]
Number of shares issued (in shares) \| shares	6,000,000
Price per share (usd per share) \| $ / shares	$ 5.60
Net proceeds received	$ 33,405
Offering expenses payable	$ 195

Stockholders' Equity - Schedule of Warrants Outstanding (Details) - $ / shares	Sep. 30, 2020	Sep. 12, 2019
Warrants Expiring November 1, 2020
Class of Stock [Line Items]
Warrants outstanding (in shares)	1,866,831
Warrants exercise price (in usd per share)	$ 8.16
Warrants Expiring September 12, 2022
Class of Stock [Line Items]
Warrants outstanding (in shares)	810,357
Warrants exercise price (in usd per share)	$ 6.72	$ 6.72

Stock-based Compensation - Allocated Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,626	$ 2,435	$ 7,857	$ 7,552
Cost of product sales
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	25	33	113	78
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	334	90	922	617
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,267	$ 2,312	$ 6,822	$ 6,857

Stock-based Compensation - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,626,000	$ 2,435,000	$ 7,857,000	$ 7,552,000
Plan options contractual life (up to)			10 years
Award vesting period			4 years
Service Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			4 years	4 years
Stock options to purchase shares (in shares)			1,303,210	2,070,173
Weighted average grant date fair value (usd per share)			$ 3.44	$ 4.78
Unrecognized cost related to unvested RSUs expected to vest	14,082,000		$ 14,082,000
Estimated weighted-average amortization period			2 years 1 month 17 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			4 years
Granted (in shares)			1,542,172
Restricted shares fair value at grant date (usd per share)			$ 5.27
Restricted Stock Units, Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized cost related to unvested RSUs expected to vest	4,260,000		$ 4,260,000
Estimated weighted-average amortization period			3 years 5 months 12 days
Granted (in shares)			970,119
Restricted Stock Units, Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 0
Unrecognized cost related to unvested RSUs expected to vest	3,095,000		$ 3,095,000
Granted (in shares)			572,053
NASDAQ Inducement Grant Exception \| Service Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options to purchase shares (in shares)			90,000
NASDAQ Inducement Grant Exception \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			60,000
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 102,000	$ 91,000	$ 389,000	$ 319,000
Inventory
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			68,000
Prepaid expenses and other assets
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 1,000

Stock-based Compensation - Stock Option Activity (Details) - Service Based Stock Options - $ / shares	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Shares
Beginning balance (in shares)	7,399,217
Granted (in shares)	1,303,210	2,070,173
Exercised (in shares)	(71,748)
Expired (in shares)	0
Forfeited (in shares)	(472,927)
Ending balance (in shares)	8,157,752		7,399,217
Exercisable (in shares)	5,384,480
Vested and expected to vest (in shares)	8,157,752
Weighted average exercise price per share
Beginning balance (usd per share)	$ 9.81
Granted (usd per share)	5.64
Exercised (usd per share)	2.26
Expired (usd per share)	0
Forfeited (usd per share)	10.13
Ending balance (usd per share)	9.19		$ 9.81
Exercisable (usd per share)	9.58
Vested and expected to vest (usd per share)	$ 9.19
Weighted average remaining contractual life
Options outstanding, weighted average remaining contractual life	6 years 1 month 13 days		6 years 4 months 13 days
Options exercisable, weighted average remaining contractual life	4 years 9 months 29 days
Vested and expected to vest, weighted average remaining contractual life	6 years 1 month 13 days

Stock-based Compensation - Fair Value Options using Black-Scholed Pricing Model (Details) - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	0.96%	2.32%
Expected term (in years)	6 months	6 months
Expected volatility	84.55%	73.34%
Annual dividend yield	0.00%	0.00%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	0.71%	2.48%
Expected term (in years)	6 years 10 days	6 years 18 days
Expected volatility	68.77%	67.03%
Annual dividend yield	0.00%	0.00%
Fair value of common stock (usd per share)	$ 5.64	$ 7.70

Stock-based Compensation - Restricted Stock Units Activity (Details) - Restricted stock units	9 Months Ended
	Sep. 30, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Balance at December 31, 2019 (in shares)	0
Granted (in shares)	1,542,172
Vested and settled (in shares)	0
Expired/ forfeited/ canceled (in shares)	(42,716)
Balance at June 30, 2020 (in shares)	1,499,456
Expected to vest at June 30, 2020 (in shares)	1,499,456