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Subsequent Event
12 Months Ended
Dec. 31, 2015
Subsequent Events [Abstract]  
Subsequent Event

13.    Subsequent Events

We did not make the quarterly interest payment due on December 15, 2015 for the royalty securitization financing.  As a result, we received a notice of event of default from the trustee. The aggregate interest payments that were in default were approximately $2,756,000, which includes the interest due and payable on September 15, 2015 and December 15, 2015. In January 2016, we entered into a forbearance agreement with the noteholders whereby the Noteholders would generally forbear from delivering an acceleration notice and exercising other remedies under the agreement for thirty day renewing periods through June 15, 2016. As a result of our default and the short forbearance time period, the principal balance of $45,000,000 and the amortization of the debt discounts of $74,000 related to the five-year warrants issued in March 2014 to purchase 345,661 shares of our common stock  were reclassified from non-current liabilities to current liabilities as of December 31, 2015. Additionally, the deferred interest charges associated with this financing that were being amortized over five years were reclassified from non-current assets to other current assets as of December 31, 2015, consistent with the related debt.

In January 2016, Ferrer exercised its option to manufacture and supply ADASUVE in their exclusive territory, outside their territory in all countries other than the U.S. and Canada, and in the U.S. and Canada in a manner to be agreed in a definitive agreement by April 2016. We are evaluating the impact of these potential changes on our consolidated financial position, results of operations and cash flows. In February 2016, we entered into the non-binding Letter of Intent with Ferrer with respect to the Transaction. The Letter of Intent does not constitute a binding agreement to consummate such acquisition and it entitles both us and Ferrer to terminate discussions at any time in our or Ferrer's sole discretion. Additionally we can, at our discretion, enter into discussions with third parties and continue to explore strategic options. We continue to have discussions with Ferrer regarding a transaction. There can be no assurance that such potential transaction will be agreed to or consummated. The entering into the Letter of Intent follows exploration of strategic options that we announced previously. In September 2015, we announced that we had retained Guggenheim Securities, LLC to assist in exploring strategic options to enhance stockholder value, including a possible sale or disposition of one or more corporate assets, a strategic business combination, partnership or other transactions. Our Board of Directors will review and carefully evaluate the terms of the potential Transaction with our financial and legal advisors.

In September 2015, we issued the Ferrer Note to Ferrer. The terms of the Ferrer Note provide that (i) Ferrer will loan us up to $5,000,000 in tranches, (ii) the initial tranche of $3,000,000 was received by us on September 28, 2015, (iii) another tranche of $1,000,000 was received by us on March 21, 2016, (iv) we have the option to borrow an additional tranche of $1,000,000 at any time, (v) interest accrues on the outstanding principal at the rate of 6% per annum, compounded monthly, through May 31, 2016, (vi) all outstanding principal and accrued interest under the Ferrer Note is due and payable upon Ferrer’s demand on May 31, 2016, (vii) we may prepay the Ferrer Note at any time without premium or penalty, and (viii) we issued 125,000 shares of our common stock to Ferrer as partial consideration for the loan. The common stock was issued to Ferrer pursuant to the Stock Issuance Agreement and was not registered at the time of issuance under the Securities Act of 1933, as amended. As of March 23, 2016, an aggregate of $4,000,000 of the principal amount of the Ferrer Note was outstanding.

In February 2016, we and Teva entered into (i) the Teva Amendment; (ii) the Amended Teva Note; (iii) a stock issuance agreement, or the Stock Issuance Agreement; and (iv) an Amended and Restated Registration Rights Agreement, or the Rights Agreement, that amends and restates the Registration Rights Agreement with Teva dated January 6, 2014.

The Teva Amendment is intended to allow us to continue to provide ADASUVE product to patients and health care providers and provides for (i) the transfer of the New Drug Application, or NDA, and related regulatory filings for ADASUVE to us and the assumption of responsibility by us for all regulatory activities related to ADASUVE in the U.S. as soon as practicable; (ii) an exclusive license of Teva intellectual property with respect to ADASUVE, which intellectual property will be assigned to us in connection with a change of control or an exclusive license to ADASUVE in the U.S. from us to a third party; (iii) our undertaking of responsibility for the ADASUVE United States Phase 4 study, product pharmacovigilance, medical services, and REMS compliance, either through Teva’s vendors or a vendor otherwise selected by us; (iv) the transfer from Teva of existing supplies of ADASUVE as well as all commercial, medical and academic materials, documents and relationships; (v) our right to sell Teva-labeled products in accordance with all applicable laws and Teva policies; (vi) the satisfaction and termination of all payment obligations of the parties with respect to the commercialization of ADASUVE except with respect to the Amended Teva Note and our issuance of 2,172,886 shares of our common stock to Teva pursuant to the Stock Issuance Agreement; and (vii) a mutual release between the parties with respect to claims under the Teva Agreement.

The Amended Teva Note provides that (i) we issued 2,172,886 shares of our common stock to Teva pursuant to a stock issuance agreement as consideration for a reduction in the outstanding balance of the Amended Teva Note by $5,000,000 and forgiveness of all accrued and unpaid interest under the Amended Teva Note; (ii) we are obligated to repay the $20,000,000 outstanding balance of the Amended Teva Note in four annual consecutive payments of $5,000,000 beginning in the first calendar year following the calendar year in which the aggregate annual net sales of ADASUVE and any other Staccato enabled products first reach $50,000,000 in the United States; and (iii) we may prepay the outstanding balance of the Amended Teva Note. We are further evaluating the impact of these potential changes on our consolidated financial position, results of operations and cash flows.

The shares of our common stock were issued to Teva in accordance with the terms of the Amended Note and the related Stock Issuance Agreement as partial consideration for a reduction in the outstanding balance of the Amended Teva Note by $5,000,000 and forgiveness of all accrued and unpaid interest under the Amended Teva Note. The shares of our common stock issued to Teva pursuant to the Stock Issuance Agreement were not registered at the time of issuance under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements, but the Company has agreed to provide certain registration rights under the Securities Act with respect to the Shares pursuant to the Rights Agreement.

In February 2016, we presented a plan to the NASDAQ’s Listing Qualification Panel, or the Panel, for determination to allow the continued listing our common stock on the NASDAQ Capital Market. On March 7, 2016, the Panel issued a determination granting our request for the continued listing of our common stock on The NASDAQ Capital Market. Our continued listing on The NASDAQ Capital Market is subject to, among other things, evidence of our compliance with the minimum $35,000,000 market value of listed securities requirement by June 14, 2016. In order to satisfy the market value of listed securities requirement, we must evidence a market capitalization of at least $35,000,000 for a minimum of 10 consecutive business days on or before June 14, 2016. We also remain subject to the 180-day period within which to evidence compliance with the minimum $1.00 bid price requirement, which does not expire until July 18, 2016. We are taking definitive steps to timely evidence compliance with the terms of the Panel’s decision; however, there can be no assurance that it will be able to do so.