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The Company and Basis of Presentation
9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
The Company and Basis of Presentation

1. The Company and Basis of Presentation

Business

We were incorporated in the state of Delaware on December 19, 2000 as FaxMed, Inc., changed our name to Alexza Corporation in June 2001 and in December 2001 became Alexza Molecular Delivery Corporation. In July 2005, we changed our name to Alexza Pharmaceuticals, Inc.

We are a pharmaceutical company focused on the research, development, and commercialization of novel proprietary products for the acute treatment of central nervous system conditions. We operate in one business segment. Our facilities and employees are currently located in the United States.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not contain all of the information and footnotes required for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly our interim condensed consolidated financial information. The results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014 or for any other interim period or any other future year.

The accompanying unaudited condensed consolidated financial statements and notes to condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on March 25, 2014.

Basis of Consolidation

The unaudited condensed consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

Significant Risks and Uncertainties

We have incurred significant losses from operations since our inception and expect losses to continue for the foreseeable future. As of September 30, 2014, we had cash, cash equivalents, marketable securities and restricted cash of $39,047,000 and working capital of $32,355,000. We believe that, based on our cash, cash equivalents, marketable securities and restricted cash balances at September 30, 2014, estimated product revenues, milestone payments associated with the sale of ADASUVE, the proceeds from our October 2014 stock sale to Grupo Ferrer Internacional, S.A., or Ferrer (see Note 11), and our current expected cash usage, we have sufficient capital resources to meet our anticipated cash needs into the fourth quarter of 2015. In light of our ongoing cost, investments in ADASUVE manufacturing and product candidate development and our projected working capital needs, we expect to need to source additional capital to finance our ongoing operations in the next twelve months. We may not be able to source sufficient capital on acceptable terms, or at all, to continue to pursue approval to commercialize ADASUVE in the United States or other countries, to continue development of our other product candidates or to continue operations. We plan to source additional capital to fund our operations and working capital, to develop our product candidates and to continue the development of our commercial manufacturing capabilities. In addition to product revenues, royalties and milestone payments, we plan to finance our operations through the sale of equity securities, utilization of debt arrangements, or additional distribution or licensing collaborations. Such funding may not be available or may be on terms that are not favorable to us. Our inability to source capital as and when needed could have a negative impact on our financial condition, results of operations or our ability to execute on our strategic initiatives.

On October 27, 2014, we received a notice from The NASDAQ Stock Market indicating that the total market value of our listed securities had not met the minimum value of $50 million for any of the 30 consecutive business days prior to that date. If our total market value of listed securities does not equal or exceed $50 million, based on the closing price of our common stock, for at least ten consecutive business days prior to April 27, 2015, our common stock may become subject to delisting from the Nasdaq Global Market. If we do not regain compliance within the 180 calendar day grace period, we may transfer the listing of our common stock to the Nasdaq Capital Market, provided that we meet the applicable requirements for continued listing on the Nasdaq Capital Market based on our most recent public filings and market information. We may also request a hearing to remain on the Nasdaq Global Market at the expiration of this 180 calendar day grace period. Even if we regain compliance or transfer the listing of our common stock to the Nasdaq Capital Market, we may subsequently fail to maintain compliance with applicable listing standards.