Note 3 - Liquidity Risks and Management's Plans

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Liquidity Disclosures [Text Block]

Note

3

- Liquidity Risks and Management

'

s Plans

As of 

March 31, 2021

, we had cash and cash equivalents of 

$38.5

million and current liabilities of 

$7.5

million.

On

March 25, 2021,

we completed a registered public offering, or the

March 2021

Offering, of 

9,230,500

shares of our common stock and warrants to purchase 

9,230,500

 shares of our common stock, at a combined price of 

$3.25

resulting in net proceeds of 

$27.4

million (

see

,

Note

8

- Stockholders' Equity

).

We also have an At-The-Market Offering Agreement with Ladenburg Thalmann & Co. Inc., or Ladenburg, pursuant to which we

may

offer and sell, from time to time at our sole discretion, up to a maximum of 

$10.0

 million of shares of our common stock through Ladenburg as agent and/or principal through an at-the-market program, or the ATM Program. As of

March 31, 2021

, we sold 

105,083

shares of our common stock under the ATM Program resulting in aggregate gross and net proceeds to us of approximately 

$0.6

million (s

ee,

 

Note

8

- Stockholders' Equity

).

We are subject to risks common to companies in the biotechnology industry, including but

not

limited to, the need for additional capital, risks of failure of preclinical and clinical studies, the need to obtain marketing approval and reimbursement for any drug product candidate that we

may

identify and develop, the need to successfully commercialize and gain market acceptance of our product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development of technological innovations by competitors, and risks associated with our international locations and activities abroad, including but

not

limited to having foreign suppliers, manufacturers and clinical sites in support of our development activities.

We have incurred net losses since inception. Our net loss was

$9.0

 million and

$6.5

 million, respectively, for the

three

-month periods ended

March 31, 2021

and

2020

. We expect to continue to incur operating losses for at least the next several years. As of

March 31, 2021

, we had an accumulated deficit of

$726.6

 million. Our future success is dependent on our ability to identify and develop our product candidates, and ultimately upon our ability to attain profitable operations. We have devoted substantially all of our financial resources and efforts to research and development and general and administrative expense to support such research and development. Net losses and negative cash flows have had, and will continue to have, an adverse effect on our stockholders' equity and working capital, and accordingly, our ability to execute our future operating plans.

We believe that our cash and cash equivalents as of the filing date of our Quarterly Report on Form

10

-Q for the quarterly period ended

March 31, 2021

are sufficient to fund operations through at least the next

12

months. In the future, we will need to raise additional capital to continue funding our development activities and operations. We plan to obtain funding through a combination of public or private equity offerings, or strategic transactions including collaborations, licensing arrangements or other strategic partnerships. There is inherent uncertainty associated with these fundraising activities, and thus they are

not

considered probable.

Our funding requirements are based on estimates that are subject to risks and uncertainties and

may

change as a result of many factors currently unknown. Although management continues to pursue the plans described above, there is

no

assurance that we will be successful in obtaining sufficient funding on terms acceptable to us to fund continuing operations, if at all, including as a result of market volatility following the COVID-

19

pandemic. Until such time as we can generate substantial product revenues, if ever, we expect to finance our cash needs through a combination of equity offerings, strategic partnerships and licensing arrangements. The terms of any future financing

may

adversely affect the holdings or the rights of our existing stockholders.