0001437749-20-023006 | 10-Q | XBRL Viewer | Liquidia Technologies INC

Nature of Operations [Text Block]

1. Business

Liquidia Technologies, Inc. (“Liquidia” or the “Company”) is a late-stage clinical biopharmaceutical company focused on the development and commercialization of novel products utilizing the Company’s proprietary PRINT technology to transform the lives of patients. PRINT is a particle engineering platform that enables precise production of uniform drug particles designed to improve the safety, efficacy and performance of a wide range of therapies. The Company is currently focused on the development of two product candidates for which it holds worldwide commercial rights: LIQ861 for the treatment of pulmonary arterial hypertension (“PAH”) and LIQ865 for the treatment of local post-operative pain.

The development and commercialization activities are conducted at the Company’s headquarters located in Morrisville, North Carolina. The Company was incorporated under the laws of the state of Delaware in 2004.

Recent Developments and Subsequent Events

Acquisition of RareGen, LLC

On June 29, 2020, the Company entered into that certain Agreement and Plan of Merger with RareGen, LLC, a privately-held entity, Liquidia Corporation, a wholly owned subsidiary of the Company (“HoldCo”), Gemini Merger Sub I, Inc., a wholly owned subsidiary of HoldCo (“Liquidia Merger Sub”), Gemini Merger Sub II, LLC, a wholly owned subsidiary of HoldCo (“RareGen Merger Sub”), and PBM RG Holdings, LLC, as the Members’ Representative (the “Merger Agreement”), pursuant to which, among other things, the Company and RareGen will each become a subsidiary of HoldCo (the “Merger Transaction”). RareGen provides strategy, investment, and commercialization for generic Treprostinil injection. RareGen has a small, targeted sales force focused on PAH. Pursuant to a Promotion Agreement, dated as of August 1, 2018, as amended (the “Promotion Agreement”), between RareGen and Sandoz Inc. (“Sandoz”), RareGen owns the exclusive rights to conduct any and all promotional and non-promotional activities to encourage the appropriate use of the first-to-file substitutable generic of treprostinil injection for the treatment of patients with PAH in the United States. The Merger Transaction is expected to close in the fourth quarter of 2020. If the Merger Transaction is completed, (i) each share of Company common stock, $0.001 par value per share (“Company Common Stock”), whether certificated or held in book-entry form, will automatically convert into one share of HoldCo common stock, $0.001 par value per share (“HoldCo Common Stock”), (ii) each option and warrant to purchase a share of Company Common Stock will entitle the holder to purchase one share of HoldCo Common Stock, and the exercise price per share will be identical to the Company option or warrant, and (iii) each Company restricted stock unit will entitle the holder to a HoldCo restricted stock unit, each to vest and settle into a share of HoldCo Common Stock. At the effective time of the Merger Transaction, an aggregate of 6,166,666 shares of HoldCo Common Stock, including 616,666 shares of HoldCo Common Stock which will be withheld from RareGen members to secure the indemnification obligations of RareGen members (the “Holdback Shares”), will be issued to RareGen members in exchange for all of the 10,000 outstanding RareGen common units, representing all of the issued and outstanding RareGen equity. RareGen members will be entitled to receive, on a pro rata basis, any Holdback Shares remaining on March 31, 2022. Additionally, RareGen members shall be entitled to a pro rata portion of any RareGen cash at closing in excess of $1 million. RareGen members will also be entitled to receive a pro rata portion of up to an additional 2,708,333 shares of HoldCo Common Stock in the aggregate in 2022, based on the amount of 2021 net sales of the generic treprostinil product owned by Sandoz, which RareGen markets pursuant to the Promotion Agreement. The fair value of the purchase consideration, or the purchase price is currently estimated to be approximately $23.9 million based on 6,166,666 shares of HoldCo Common Stock at a per share price of $3.34, which represents the closing price of Company Common Stock on November 2, 2020, and the estimated fair value of the contingent consideration liability of $3.3 million. The estimated purchase price is variable depending on the valuation of the Company Common Stock and the acquisition of RareGen is currently anticipated to be accounted for as a business combination in accordance with Accounting Standards Codification (ASC) 805, Business Combinations. The special meeting for stockholders to consider approval of the Merger Transaction is currently scheduled for November 13, 2020.

Note 2 - Basis of Presentation, Significant Accounting Policies and Going Concern

9 Months Ended

Sep. 30, 2020

Basis of Presentation and Significant Accounting Policies [Text Block]

2. Basis of Presentation, Significant Accounting Policies and Going Concern

Basis of Presentation and Significant Accounting Policies

The unaudited interim consolidated financial statements as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments and accruals) necessary for a fair statement of the results for the periods presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 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 fiscal year ending December 31, 2020. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been omitted in accordance with the SEC’s rules and regulations for interim reporting. The Company’s financial position, results of operations and cash flows are presented in U.S. Dollars.

The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2019, which are included in the Company’s Annual Report on Form 10-K.

There have been no material changes to the Company’s significant accounting policies during the three and nine months ended September 30, 2020 compared with the significant accounting policies disclosed in Note 2 of the financial statements for the years ended December 31, 2019 and 2018.

Going Concern

The Company’s consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company's operations have consisted primarily of developing its technology, developing products, prosecuting its intellectual property and securing financing. The Company has incurred recurring losses and cash outflows from operations, has an accumulated deficit, and has debt principal payments that commenced in the first quarter of 2020. The Company expects to continue to incur losses in the foreseeable future and will require additional financial resources to continue to advance its products and intellectual property, in addition to repaying its maturing debt and other obligations. These conditions raise substantial doubt regarding the Company’s ability to continue as a going concern.

The Company believes that its existing cash will enable it to fund its operating expenses and capital expenditure requirements, make payments of interest and principal on its term loan facility with Pacific Western, and remain in compliance with its minimum cash covenant of $8.5 million pursuant to this term loan facility, into the first quarter of 2022. The Company has based these estimates on assumptions that may prove to be wrong, and it could utilize its available capital resources sooner than it expects. The Company will need to raise substantial additional capital to continue its business operations and remain in compliance with the minimum cash covenant of $8.5 million on its debt during and beyond the first quarter of 2022, in addition to commercializing LIQ861, if approved. Such capital may not be available on a timely basis, on terms that are favorable to the Company, or at all.

The pandemic caused by the outbreak of the novel coronavirus, or COVID-19, and the various governmental, industry and consumer actions related thereto, could have a material and adverse effect on the Company’s business. The effect, which largely depends on future developments that cannot be accurately predicted and are uncertain, could include a negative impact on the availability of the Company’s key personnel, temporary closures of the Company’s facilities or the facilities of the Company’s business partners, suppliers, third-party service providers or other vendors, delays in payments or purchasing decisions, and the interruption of domestic and global supply chains, distribution channels and financial markets. As the pandemic continues to spread, the Company has and may continue to experience disruptions that could severely impact the Company’s business. Currently, most of the Company’s employees are working remotely, with only essential personnel working on site as needed to produce LIQ861 and prepare for a pre-approval inspection by the FDA.

Consolidation

The accompanying consolidated financial statements include the Company’s wholly owned subsidiary, Liquidia Corporation, and Liquidia Corporation’s wholly owned subsidiaries, Gemini Merger Sub I, Inc. and Gemini Merger Sub II, LLC. All intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of 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 as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates.

Reclassifications

The Company has reclassified certain prior period amounts for comparative purposes. The Company reclassified certain prior period amounts to conform to the current period presentation, including the categorization of non-cash lease expense within the operating activities section of the Statements of Cash Flows. These reclassifications did not have any effect on the Company’s previously reported financial condition, results of operations or cash flows.

Revision of Previously Issued Financial Statements

During the three months ended June 30, 2020, the Company identified an error in the matter in which it calculated diluted weighted common shares outstanding and diluted net loss per common share. While the Company has included common stock warrants whose exercise price is de minimis in the calculation of basic weighted average common shares outstanding and basic net loss per common share, these warrants were inappropriately excluded from the calculation of diluted weighted common shares outstanding and diluted net loss per common share, which resulted in an error in those previously reported amounts for the three and nine month periods ended September 30, 2019. The Company has evaluated this error and determined that this presentation error was not material to any prior annual or interim periods. However, the Company is revising the previously presented September 30, 2019 diluted weighted common shares outstanding and diluted net loss per common share as follows:

Three Months Ended

Nine Months Ended

September 30, 2019

September 30, 2019

As Presented

As Revised

As Presented

As Revised

Net loss per common share: Diluted
$ (0.72
)
$ (0.72
)
$ (1.87
)
$ (1.85
)

Diluted weighted average shares outstanding
18,650,965 18,757,166 17,737,737 17,856,826

Summary of Significant Accounting Policies

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash. The Company is exposed to credit risk, subject to federal deposit insurance, in the event of default by the financial institutions holding its cash to the extent of amounts recorded on the consolidated balance sheet. With regard to cash, 100% of the Company’s cash is held on deposit with Pacific Western.

Revenue Recognition

The Company may derive revenue from licensing its proprietary PRINT technology and from performing research and development services. Revenue is recognized as services are performed in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services and technology.

The Company’s research, development and licensing agreements provide for multiple promised goods and services to be satisfied by the Company and include a license to the Company’s technology in a particular field of study, participation in collaboration committees, performance of certain research and development services and obligations for certain manufacturing services.

The transaction price for these contracts includes non-refundable fees and fees for research and development services. Non-refundable up-front fees which may include, for example, an initial payment upon effectiveness of the contractual relationship or payment to secure a right for a future license, are recorded as deferred revenue and recognized into revenue over time as the Company provides the research services under the contract required to advance the products to the point where the Company is able to transfer control of the licensed technology to the customer (“Technology Transfer”). The contract consideration may also include additional non-refundable payments due to the Company based on the achievement of research, development, regulatory or commercialization milestone events. In agreements involving multiple goods or services promised to be transferred to customers, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is “distinct”), or whether such promises should be combined as a single performance obligation. As these goods and services are considered to be highly interrelated, they may be considered to represent a single, combined performance obligation. The Company includes an estimate of the probable amount of milestone payments to which it will be entitled in the transaction price. The estimate requires evaluation of factors which are outside of the Company’s control and significantly limit the Company’s ability to achieve the remaining milestone payments. The Company revises the transaction price to include milestone payments once the specific milestone achievement is not considered to be subject to a significant reversal of revenue. At that time, the estimated transaction price is adjusted and a cumulative catch-up adjustment is recorded to adjust the amount of revenue to be recognized from the license inception to the date the milestone was deemed probable of achievement. The milestone is included with other non-refundable up-front fees and recognized into revenue over time as the Company continues to provide services under the contract through the Company’s Technology Transfer. The amount of revenue recognized is based on the proportion of total research services performed to date to the expected services to be provided through the Technology Transfer.

The estimate of the research services to be provided through the Technology Transfer requires significant judgment to evaluate assumptions regarding the level of effort required for the Company to have performed sufficient obligations for the customer to be able to utilize the licensed technology without requiring further services from the Company. If the estimated level of effort changes, the remaining deferred revenue is recognized over the revised period in which the expected research services and Technology Transfer are required. Changes in estimates occur for a variety of reasons, including but not limited to (i) research and development acceleration or delays, (ii) customer prioritization of research projects, or (iii) results of research and development activities. The Company recognizes the consideration it is entitled to receive for research and development services, which are primarily billed quarterly in arrears on a time and materials basis, as the services are performed (under a proportional performance model) and collection is reasonably assured. Additionally, any up-front or development milestone payments received are also recognized as revenue, over time, under this same proportional performance model.

Royalties related to product sales will be recognized as revenue when the sale occurs since payments relate directly to products that will have been fully developed and for which the Company will have satisfied all of its performance obligations.

Stock-Based Compensation

The Company estimates the grant date fair value of its share-based awards and amortizes this fair value to compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award (see Note 4). The grant date fair value of stock options is determined using the Black-Scholes option-pricing model.

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period, without consideration of common stock equivalents.

Diluted net loss per share is calculated by adjusting the weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the diluted net loss per share calculation, stock options and restricted stock units are considered to be common stock equivalents but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Due to their anti-dilutive effect, the calculation of diluted net loss per share for the three and nine months ended September 30, 2020 and 2019 does not include the following common stock equivalent shares:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Stock Options
2,747,538 2,037,003 2,516,604 2,037,003

Restricted Stock Units
123,369 — 98,355 —

Total
2,870,907 2,037,003 2,614,959 2,037,003

For the three and nine months ended September 30, 2020 and 2019, common stock warrants are included in the calculation of basic and diluted net loss per share since their exercise price is de minimis.

Fair Value of Financial Instruments

The carrying values of cash and accounts payable at September 30, 2020 and December 31, 2019 approximated their fair value due to the short maturity of these instruments.

The Company’s valuation of financial instruments is based on a three-tiered approach, which requires that fair value measurements be classified and disclosed in one of three tiers. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities;

Level 2 — Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly; and

Level 3 — Unobservable inputs for the asset and liability used to measure fair value, to the extent that observable inputs are not available.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables present the placement in the fair value hierarchy of financial liabilities measured at fair value as of September 30, 2020 and December 31, 2019:

September 30, 2020

Quoted
Prices in
Active
Markets
(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Carrying
Value

Pacific Western Bank note - A&R LSA
$ — $ 9,972,600 $ — $ 11,690,010

December 31, 2019

Quoted
Prices in
Active
Markets
(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Carrying
Value

Pacific Western Bank note - A&R LSA
$ — $ 14,094,792 $ — $ 15,878,121

The fair value of debt is measured in accordance with ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The fair value is determined based on the exit price notion using credit spreads and an illiquidity premium for each loan. The credit spread is determined by the credit risk rating, loan rate index, and maturity date. The illiquidity premium is based on the loan’s credit risk rating.

Recent Accounting Pronouncements

In October 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 ("ASU 2018-18"). The provisions of ASU 2018-18 clarify when certain transactions between collaborative arrangement participants should be accounted for under ASC 606 and incorporates unit-of-account guidance consistent with ASC 606 to aid in this determination. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2018-18 effective January 1, 2020 and it did not have a material effect on the Company's consolidated financial statements for the three and nine months ended September 30, 2020.

Note 3 - Stockholders' Equity

9 Months Ended

Sep. 30, 2020

Stockholders' Equity Note Disclosure [Text Block]

3. Stockholders’ Equity

Authorized Capital

As of September 30, 2020, the authorized capital of the Company consists of 70,000,000 shares of capital stock, $0.001 par value per share, of which 60,000,000 shares are designated as common stock and 10,000,000 shares are designated as preferred stock.

Common Stock

Upon any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, the holders of the common stock shall be entitled to receive that portion of the remaining funds to be distributed to the stockholders, subject to the liquidation preferences of any outstanding preferred stock, if any. Such funds shall be paid to the holders of common stock on the basis of the number of shares so held by each of them.

Issuance of Common Stock on July 2, 2020 from an Underwritten Public Offering

On June 29, 2020, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Jefferies LLC, as representative of the several underwriters named therein (collectively, the “Underwriters”), pursuant to which 9,375,000 shares of the Company’s Common Stock were sold in an underwritten registered public offering at an offering price of $8.00 per Share (the “Offering”).

The Offering closed on July 2, 2020, and the Company received net proceeds of approximately $70.3 million from the sale of the Shares, after deducting the underwriting discounts and commissions and other offering expenses. The Company intends to use the net proceeds from this Offering for ongoing commercial development of LIQ861, for continued development of LIQ865 and for general corporate purposes. The Company’s management will retain broad discretion over the allocation of the net proceeds.

Issuance of Common Stock from the Private Placement in December 2019

On December 23, 2019, the Company entered into a Common Stock Purchase Agreement (the “Purchase Agreement”) with certain institutional accredited investors (the “Purchasers”) for the sale by the Company in a private placement (the “Private Placement”) of an aggregate of 7,164,534 shares (the “Private Placement Shares”) of common stock, at a purchase price of $3.13 per Private Placement Share. The closing of the Private Placement occurred on December 27, 2019. The Company granted the Purchasers indemnification rights with respect to its representations, warranties, covenants and agreements under the Purchase Agreement. The gross proceeds from the sale of the Private Placement Shares were $22.4 million and net proceeds were $21.0 million, after deducting placement agent fees and offering expenses.

Issuance of Common Stock from the ATM Agreement Commencing in August 2019

The Company entered into a sales agreement (the “ATM Agreement”) with Jefferies LLC (“Jefferies”) to issue and sell shares of the Company’s common stock, having an aggregate offering price of up to $40.0 million, from time to time during the term of the ATM Agreement, through an “at-the-market” equity offering program at the Company’s sole discretion, under which Jefferies will act as the Company’s agent and/or principal. The Company pays Jefferies a commission equal to 3.0% of the gross proceeds of any common stock sold through Jefferies under the ATM Agreement. During the nine months ended September 30, 2020, the Company sold 131,425 shares of common stock for net proceeds of $0.7 million after deducting underwriting discounts and other offering expenses under the ATM Agreement.

Issuance of Common Stock from an Underwritten Public Offering in March 2019

In March 2019, the Company closed an underwritten offering of 3,000,000 shares of its common stock at a public offering price of $11.50 per share. The gross proceeds from the offering were $34.5 million and net proceeds were $31.8 million, after deducting underwriting discounts and commissions and other offering expenses.

Warrants

During the three and nine months ended September 30, 2020 and 2019, no warrants to purchase shares of common stock were exercised. During the three and nine months ended September 30, 2020 and 2019, no warrants and 64,629 warrants to purchase shares of common stock were exercised, respectively. As of September 30, 2020 and December 31, 2019, there were outstanding warrants to purchase 106,274 shares of common stock with an exercise price of $0.0168 per share. The warrants expire on December 31, 2026.

Note 4 - Stock-based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Text Block]

4. Stock-Based Compensation

The Company’s 2018 Long-Term Incentive Plan (the “2018 Plan”) was approved by stockholders in July 2018. In addition to stock options, the 2018 Plan provides for the granting of stock appreciation rights, stock awards, stock units, and other stock-based awards. A total of 1,600,000 shares of the Company’s common stock was initially authorized and reserved for issuance under the 2018 Plan. This reserve will automatically increase each subsequent anniversary of January 1 through 2028, by an amount equal to the smaller of (a) 4% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Board of Directors (the “Evergreen Provision”).

On January 1, 2019, the number of shares of common stock available for issuance under the 2018 Plan automatically increased by 620,778 shares from 1,600,000 shares to 2,220,778 shares pursuant to the Evergreen Provision. On January 1, 2020, the number of shares of common stock available for issuance under the 2018 Plan automatically increased by 1,129,250 shares from 1,287,561 shares to 2,416,811 shares pursuant to the Evergreen Provision. The 2018 Plan provides for accelerated vesting under certain change of control transactions. As of September 30, 2020, there were 1,696,052 shares of common stock available for issuance under the 2018 Plan.

The 2018 Plan replaced the 2016 and 2004 Plans as the Company’s primary long-term incentive program. The 2016 and 2004 Plans were discontinued following stockholder approval of the 2018 Plan, but the outstanding awards under the 2016 and 2004 Plans will continue to remain in effect in accordance with their terms. Shares that are returned under the 2016 and 2004 Plans upon cancellation, termination or otherwise of awards outstanding under the 2016 and 2004 Plans will not be available for grant under the 2018 Plan. As of September 30, 2020, the Company had reserved for issuance 656,927 shares of common stock under the 2016 Plan and 375,056 shares of common stock under the 2004 Plan, representing the remaining outstanding options granted under the 2016 and 2004 Plans.

Stock-Based Compensation Valuation and Expense

The Company accounts for its employee stock-based compensation plans using the fair value method. The fair value method requires the Company to estimate the grant-date fair value of its stock-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term. The fair value of each option grant is estimated using a Black-Scholes option-pricing model.

For restricted stock units (“RSUs”), the grant-date fair value is based upon the market price of the Company’s common stock on the date of the grant. This fair value is then amortized to compensation expense over the requisite service period or vesting term.

The Company recorded the following share-based compensation expense:

	Three Months Ended September 30,				Nine Months Ended September 30,
By Expense Category:	2020		2019		2020		2019
Research and development	$	292,386	$	238,920	$	853,704	$	679,875
General and administrative		788,614		591,582		2,094,378		1,859,419

Total stock-based compensation expense	$	1,081,000	$	830,502	$	2,948,082	$	2,539,294

	Three Months Ended September 30,				Nine Months Ended September 30,
By Type of Award:	2020		2019		2020		2019
Stock Options	$	1,044,991	$	808,153	$	2,843,409	$	2,424,654
Restricted stock awards		36,009		22,349		104,673		114,640

Total stock-based compensation expense	$	1,081,000	$	830,502	$	2,948,082	$	2,539,294

The following table summarizes the unamortized compensation expense and the remaining years over which such expense would be expected to be recognized, on a weighted average basis, by type of award:

	As of September 30, 2020
	Unamortized Expense		Weighted Average Remaining Recognition Period (Years)
Stock Options	$	7,000,498		2.53
Restricted Stock Units	$	443,913		3.38

Stock Options

The following table summarizes the assumptions used for estimating the fair value of stock options granted under the Black-Scholes option-pricing model during:

	Nine Months Ended
	September 30,
	2020				2019
Expected dividend yield			—%				—%
Risk-free interest rate		0.40%	-	1.60%		1.44%	-	2.54%
Expected Volatility		87%	-	90%		83%	-	85%
Expected life (years)			6.32				6.04

As a result of using these assumptions in the Black-Scholes option-pricing model, the weighted average fair value for options granted during the nine months ended September 30, 2020 and 2019 was $4.16 and $8.35 per share, respectively.

The following describes each of these assumptions and the Company’s methodology for determining each assumption:

Expected Dividend Yield

The dividend yield percentage is zero because the Company neither currently pays dividends nor intends to do so during the expected option term.

Risk-Free Interest Rate

The risk-free interest rate is based on the U.S. Treasury yield curve approximating the term of the expected life of the award in effect on the date of grant.

Expected Volatility

Expected stock price volatility is based on a weighted average of several peer public companies and the historical volatility of the Company’s common stock during the period for which it has traded since the initial public offering. For purposes of identifying peer companies, the Company considered characteristics such as industry, length of trading history and similar vesting terms.

Expected Life

The expected life represents the period the awards are expected to be outstanding. The Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate an expected term because of a lack of sufficient data. Therefore, the Company estimates the expected term by using the simplified method.

The following table summarizes the Company’s stock option activity during the nine months ended September 30, 2020:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding as of December 31, 2019		2,052,976		$	9.33
Granted		963,191		$	5.63
Exercised		(22,351	)	$	3.30
Cancelled		(424,454	)	$	8.11
Outstanding as of September 30, 2020		2,569,362		$	8.20		7.20	$	1,030,161
Exercisable as of September 30, 2020		1,274,181		$	8.34		5.55	$	444,747
Vested and expected to vest as of September 30, 2020		2,392,942		$	8.26		7.05	$	901,226

The aggregate intrinsic value of stock options in the table above represents the difference between the $4.92 closing price of the Company’s common stock as of September 30, 2020 and the exercise price of outstanding, exercisable, and vested and expected to vest in-the-money stock options.

Restricted Stock Unit Awards

During the nine months ended September 30, 2020, the Board of Directors approved grants of an aggregate of 138,614 non-performance-based RSUs to employees. RSUs represent the right to receive shares of common stock of the Company at the end of a specified time period. The RSUs vest over a four-year period similar to stock options granted to employees. RSUs can only be settled in shares of the Company’s common stock.

A summary of nonvested RSU awards outstanding as of September 30, 2020 and changes during the nine months then ended is as follows:

	Number of RSUs			Weighted Average Grant-Date Fair Value (per RSU)
Nonvested as of December 31, 2019		7,493		$	28.87
Granted		138,614			3.32
Vested		(2,107	)		28.87
Forfeited		(39,102	)		3.31
Nonvested as of September 30, 2020		104,898		$	4.63

Employee Stock Purchase Plan

On May 8, 2019, the Company’s stockholders approved the Liquidia Technologies, Inc. 2019 Employee Stock Purchase Plan (the “ESPP”). As of September 30, 2020, a total of 446,731 shares of the Company’s common stock are reserved for issuance under the ESPP. Subject to any plan limitations, the ESPP allows eligible employees to contribute through payroll deductions up to $25,000 per year of their earnings for the purchase of the Company’s common stock at a discounted price per share. The offering periods are six months each and begin in March and September of each year, with the initial offering period having commenced on September 3, 2019. Unless otherwise determined by the administrator, the Company’s common stock will be purchased for the accounts of employees participating in the ESPP at a price per share that is 85% of the fair market value of the Company’s common stock on the last trading day of the offering period.

During the Company’s first offering period from September 1, 2019 to February 28, 2020, based upon 85% of the closing price of $4.13 on February 28, 2020, 3,269 shares were purchased based upon employee withholdings. During the Company’s second offering period from March 1, 2020 to August 31, 2020, based upon 85% of the closing price of $5.12 on August 31, 2020, 1,821 shares were purchased based upon employee withholdings.

Note 5 - License Agreements

9 Months Ended

Sep. 30, 2020

License Agreements [Text Block]

5. License Agreements

The Company performs research under a license agreement with The University of North Carolina at Chapel Hill (“UNC”) as amended to date (the “UNC Letter Agreement”). As part of the UNC Letter Agreement, the Company holds an exclusive license to certain research and development technologies and processes in various stages of patent pursuit, for use in its research and development and commercial activities, with a term until the expiration date of the last to expire patent subject to the UNC Letter Agreement, subject to industry standard contractual compliance. Under the UNC Letter Agreement, the Company is obligated to pay UNC royalties equal to a low single digit percentage of all net sales of drug products whose manufacture, use or sale includes any use of the technology or patent rights covered by the UNC Letter Agreement. The Company may grant sublicenses of UNC licensed intellectual property in return for specified payments based on a percentage of any fee, royalty or other consideration received.

Note 6 - Revenue From Contracts With Customers

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Text Block]

6. Revenue From Contracts With Customers

The Company derived its revenue during the nine months ended September 30, 2019 primarily from licensing its proprietary PRINT technology and from performing research and development services. Revenue was recognized as services were performed in an amount that reflected the consideration the Company expected to be entitled to in exchange for those services and technology.

The Company’s research, development and licensing agreements provide for multiple promised goods and services to be satisfied by the Company and include a license to the Company’s technology in a particular field of study, participation in collaboration committees, performance of certain research and development services and obligations for certain manufacturing services.

The transaction price for these contracts includes non-refundable fees and fees for research and development services. Non-refundable up-front fees which may include, for example, an initial payment upon effectiveness of the contractual relationship or payment to secure a right for a future license, are recorded as deferred revenue and recognized into revenue over time as the Company provides the research services under the contract required to advance the products to the point where the Company is able to transfer control of the licensed technology to the customer (“Technology Transfer”). The contract consideration may also include additional non-refundable payments due to the Company based on the achievement of research, development, regulatory or commercialization milestone events. In agreements involving multiple goods or services promised to be transferred to customers, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is “distinct”), or whether such promises should be combined as a single performance obligation. As these goods and services are considered to be highly interrelated, they were considered to represent a single, combined performance obligation. The Company includes an estimate of the probable amount of milestone payments to which it will be entitled in the transaction price. The estimate requires evaluation of factors which are outside of the Company’s control and significantly limit the Company’s ability to achieve the remaining milestone payments. Therefore, the Company has not included any future milestone payments in the transaction price allocated to research, development and licensing agreements as of September 30, 2020. The Company revises the transaction price to include milestone payments once the specific milestone achievement is not considered to be subject to a significant reversal of revenue. At that time, the estimated transaction price is adjusted and a cumulative catch-up adjustment is recorded to adjust the amount of revenue to be recognized from the license inception to the date the milestone was deemed probable of achievement. The milestone is included with other non-refundable up-front fees and recognized into revenue over time as the Company continues to provide services under the contract through the Company’s Technology Transfer. The amount of revenue recognized is based on the proportion of total research services performed to date to the expected services to be provided through the Technology Transfer.

The estimate of the research services to be provided through the Technology Transfer requires significant judgment to evaluate assumptions regarding the level of effort required for the Company to have performed sufficient obligations for the customer to be able to utilize the licensed technology without requiring further services from the Company. If the estimated level of effort changes, the remaining deferred revenue is recognized over the revised period in which the expected research services and Technology Transfer are required. Changes in estimates occur for a variety of reasons, including but not limited to (i) research and development acceleration or delays, (ii) customer prioritization of research projects, or (iii) results of research and development activities. The Company recognizes the consideration it is entitled to receive for research and development services, which are primarily billed quarterly in arrears on a time and materials basis, as the services are performed (under a proportional performance model) and collection is reasonably assured. Additionally, any up-front or development milestone payments received are also recognized as revenue, over time, under this same proportional performance model.

No royalties have been recognized during the three and nine months ended September 30, 2020 or during the three and nine months ended September 30, 2019.

In September 2015, GSK Inhaled exercised the option to permanently license the technology for a non-refundable payment to the Company of $15.0 million. Pursuant to the license provisions of the collaboration agreement, GSK Inhaled is potentially required to pay the Company for certain milestones reached in addition to tiered royalties on the worldwide sales of the licensed products at percentages ranging from the mid-single digits to low-single digits depending on the total number of products developed and other royalty step-down events with a fixed low-single digit royalty floor. In February 2016, GSK Inhaled paid the Company a $3.0 million milestone payment pursuant to the collaboration agreement. The combined $18 million in up-front and milestone payments was subject to deferral pursuant to the adoption of ASC 606 and the revenue policy described herein.

In July 2018, GSK notified the Company of its plans to discontinue development of the inhaled antiviral for viral exacerbations in chronic obstructive pulmonary disease under the GSK Inhaled collaboration agreement after completion of the related Phase 1 clinical trial. In June 2019, the Company and GSK executed the third amendment to the collaboration agreement providing the Company rights to develop and commercialize additional inhaled programs at the Company’s sole cost and development. This amendment granted the Company the right to develop three additional molecular entities for application in inhaled programs using the Company’s PRINT technology and a mechanism to acquire further molecular entities for inhaled applications. New inhaled programs developed under this amendment would carry milestone and royalty payments due to GSK upon initiation of Phase 3 studies and subsequent commercialization, respectively. This amendment, among other factors including the lack of continued performance anticipated by the Company and GSK under the original agreement, led the Company to the belief that no further research and development services will be provided to GSK under the collaboration agreement and the earnings process related to the up-front and development milestone payments previously received under the collaboration agreement is completed under the proportional performance model. Therefore, the remaining deferred revenue of $8.1 million was recognized as revenue during the nine months ended September 30, 2019. If GSK were to request additional services under the original agreement, which the Company believes is a remote likelihood, the Company does not expect the value of any incremental efforts that the Company might agree to perform to be material. Any potential milestone or royalty payments from the Company to GSK associated with this amendment will be recorded as operating expenses.

The following tables represent a disaggregation of revenue by each significant research, development and licensing agreement and payment type for the nine months ended September 30, 2019:

	Revenue for the Nine Months Ended
	September 30, 2019 From
	Non-Refundable Payments				Research and
			Up-front		Development
	Milestones		Payments		Services		Total
GSK Inhaled	$	1,345,320	$	6,726,600	$	—	$	8,071,920
Other		—		—		200		200
Total	$	1,345,320	$	6,726,600	$	200	$	8,072,120

Deferred Sublicense Payments

Sublicense payments to UNC are considered direct and incremental fulfillment costs of the Company’s research, development and licensing agreements as the PRINT technology resources used by the Company are continually researched by UNC. These costs are deferred and then amortized into Cost of Sales over the same estimated period of benefit as the period of the underlying revenue recognition. In conjunction with the June 2019 amendment to the GSK collaboration agreement, the balance of deferred sublicense payments were expensed to Cost of revenue in the nine months ended September 30, 2019.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Note 7 - Property, Plant and Equipment

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment Disclosure [Text Block]

7. Property, Plant and Equipment

Property, plant and equipment consisted of the following:

	September 30,			December 31,
	2020			2019
Lab and build-to-suit equipment	$	8,071,881		$	7,562,263
Office equipment		128,669			128,669
Furniture and fixtures		294,689			237,951
Computer equipment		896,022			804,046
Leasehold improvements		11,524,739			11,762,351
Construction-in-progress		—			91,797
Total property, plant and equipment		20,916,000			20,587,077
Accumulated depreciation and amortization		(13,527,624	)		(11,333,112	)
Property, plant and equipment, net	$	7,388,376		$	9,253,965

The Company recorded depreciation and amortization expense of $722,325 and $604,164 for the three months ended September 30, 2020 and 2019, respectively, and $2,178,402 and $1,857,070 for the nine months ended September 30, 2020 and 2019, respectively.

Note 8 - Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Text Block]

8. Income Taxes

The Company did not record a federal or state income tax expense or benefit for the three or nine months ended September 30, 2020 and 2019 as a result of the establishment of a full valuation allowance being required against the Company’s net deferred tax assets.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Note 9 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments Contingencies and Guarantees [Text Block]

9. Commitments and Contingencies

Commitments

In March 2012, the Company entered into an agreement, as amended, with Chasm Technologies, Inc. for manufacturing consulting services related to the Company’s manufacturing capabilities during the term of the agreement. The Company agreed to pay future contingent royalties on net sales totaling no more than $1,500,000, none of which has been earned as of September 30, 2020.

Contingencies

Merger Termination Fee and Merger Transaction Fees

In the event the Merger Agreement is terminated by the Company on account of its acceptance of a Superior Proposal or by RareGen, if the Board of Directors shall have made a change in recommendation to its stockholders following the receipt of a Superior Proposal, then, in the case of a termination by the Company pursuant to (i), the Company shall pay to RareGen by wire transfer a one-time termination fee equal to $7.5 million immediately before and as a condition to such termination, and in the case of a termination by RareGen pursuant to (ii), within two business days after the date of such termination.

The Company estimates it will incur $5.0 million of fees in connection with the Merger Transaction.

The Company from time-to-time is subject to claims and litigation in the normal course of business, none of which the Company believes represent a risk of material loss or exposure.

Note 10 - Long-term Debt

9 Months Ended

Sep. 30, 2020

Long-term Debt [Text Block]

10. Long-Term Debt

Long-term debt consisted of the following as of September 30, 2020 and December 31, 2019:

		September 30,			December 31,
	Maturity Date	2020			2019
Pacific Western Bank term loan outstanding	October 25, 2022	$	11,690,010		$	15,878,121
Less current portion			(5,585,636	)		(5,585,637	)
Long-term debt, less current portion		$	6,104,374		$	10,292,484

Pacific Western Bank

In October 2018, the Company and Pacific Western entered into the A&R LSA in which the Company received an initial tranche of $11.0 million to extinguish its existing debt of $8.0 million under the LSA, repay in full the $1.8 million in outstanding indebtedness under the UNC Promissory Note and for general corporate purposes. The indebtedness under the A&R LSA bears interest at the greater of the Prime rate or 5% and has a four-year term maturing in October 2022. The A&R LSA provided for access to a second tranche of up to $5.0 million available to be drawn at the Company’s option through June 30, 2019. The second tranche became accessible as a result of the full enrollment of the Company’s LIQ861 INSPIRE clinical trial, without observing any materially adverse data through the two week endpoint. The entire second tranche of $5.0 million was drawn by the Company in May 2019 bringing the total amount outstanding to $16.0 million. Both tranches required payments of interest-only through December 31, 2019.

The A&R LSA carries a one-time success fee of $375,000 and a prepayment penalty of 1% if the drawn tranche is prepaid prior to October 27, 2020. The success fee was triggered in December 2019 by the sale of common stock and this was recorded as interest expense of $375,000 during the year ended December 2019. Accrued interest is included in Other accrued expenses in the Balance Sheet as of December 31, 2019. The minimum cash covenant is $8.5 million. Pacific Western maintains a blanket lien on all assets excluding intellectual property, for which it has been provided a negative pledge. Pursuant to the A&R LSA, the Company is also obligated to comply with various other customary covenants, including, among others, restrictions on its ability to dispose of assets, replace or suffer the departure of the CEO or CFO without delivering ten days’ prior written notification to Pacific Western, suffer a change on the Board of Directors which would result in the failure of at least one partner of Canaan Partners or their respective affiliates to serve as a voting member in each case without having used best efforts to deliver at least 15 days’ prior written notification to Pacific Western, make acquisitions, be acquired, incur indebtedness, grant liens, make distributions to its stockholders, make investments, enter into certain transactions with affiliates or pay down subordinated debt, subject to specified exceptions.

In May 2019, the Company and Pacific Western entered into a First Amendment to A&R LSA to provide for a limit of $2.5 million of the Company’s capital expenditures during the year ended December 31, 2019. As of September 30, 2020, the Company was in compliance with all covenants under the A&R LSA. The Company received a waiver of covenant compliance from Pacific Western for non-timely submissions of monthly financial statements for the January and February 2020 periods.

Joinder and Second Amendment to Amended and Restated Loan and Security Agreement on July 3, 2020

On July 3, 2020, the Company, HoldCo, Liquidia Merger Sub and RareGen Merger Sub entered into a Joinder and Second Amendment (the “Second Amendment”) to Amended and Restated Loan and Security Agreement, dated as of October 26, 2018 (the “A&R LSA”), with Pacific Western Bank (“Pacific Western”), pursuant to which, among other things, (i) HoldCo, Liquidia Merger Sub and RareGen Merger Sub have executed a joinder to the A&R LSA for the purpose of acknowledging that it shall be a “Borrower” along with the Company thereunder and, in connection therewith, collaterally assign and transfer to Pacific Western, and grant the Bank a continuing security interest in, all of such parties’ now owned and existing or hereafter acquired and arising assets of “Collateral” (as defined in the A&R LSA), (ii) the Borrowers shall not make any payments pursuant to that certain Litigation Funding and Indemnification Agreement, to be entered into by and between RareGen and the Members’ Representative prior to closing the Merger Transaction, without Pacific Western’s consent unless such payments are reimbursed within 30 days and do not exceed $250,000 at any time and (iii) the definition of “Permitted Indebtedness” was amended to accommodate the transactions contemplated by the Litigation Funding and Indemnification Agreement.

Scheduled annual maturities of long-term debt as of September 30, 2020 are as follows:

Year ending December 31:
2020 – three months remaining	$	1,411,766
2021		5,647,059
2022		4,705,881
Thereafter		—
Total		11,764,706
Less: Unamortized discount		(52,336	)
Less: Unamortized debt issuance costs		(22,360	)
Less: Current portion of long-term debt		(5,585,636	)
Long-term debt, noncurrent	$	6,104,374

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation and Significant Accounting Policies

The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2019, which are included in the Company’s Annual Report on Form 10-K.

There have been no material changes to the Company’s significant accounting policies during the three and nine months ended September 30, 2020 compared with the significant accounting policies disclosed in Note 2 of the financial statements for the years ended December 31, 2019 and 2018.

Substantial Doubt About Going Concern, Policy [Policy Text Block]

Going Concern

The Company’s consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company's operations have consisted primarily of developing its technology, developing products, prosecuting its intellectual property and securing financing. The Company has incurred recurring losses and cash outflows from operations, has an accumulated deficit, and has debt principal payments that commenced in the first quarter of 2020. The Company expects to continue to incur losses in the foreseeable future and will require additional financial resources to continue to advance its products and intellectual property, in addition to repaying its maturing debt and other obligations. These conditions raise substantial doubt regarding the Company’s ability to continue as a going concern.

The Company believes that its existing cash will enable it to fund its operating expenses and capital expenditure requirements, make payments of interest and principal on its term loan facility with Pacific Western, and remain in compliance with its minimum cash covenant of $8.5 million pursuant to this term loan facility, into the first quarter of 2022. The Company has based these estimates on assumptions that may prove to be wrong, and it could utilize its available capital resources sooner than it expects. The Company will need to raise substantial additional capital to continue its business operations and remain in compliance with the minimum cash covenant of $8.5 million on its debt during and beyond the first quarter of 2022, in addition to commercializing LIQ861, if approved. Such capital may not be available on a timely basis, on terms that are favorable to the Company, or at all.

The pandemic caused by the outbreak of the novel coronavirus, or COVID-19, and the various governmental, industry and consumer actions related thereto, could have a material and adverse effect on the Company’s business. The effect, which largely depends on future developments that cannot be accurately predicted and are uncertain, could include a negative impact on the availability of the Company’s key personnel, temporary closures of the Company’s facilities or the facilities of the Company’s business partners, suppliers, third-party service providers or other vendors, delays in payments or purchasing decisions, and the interruption of domestic and global supply chains, distribution channels and financial markets. As the pandemic continues to spread, the Company has and may continue to experience disruptions that could severely impact the Company’s business. Currently, most of the Company’s employees are working remotely, with only essential personnel working on site as needed to produce LIQ861 and prepare for a pre-approval inspection by the FDA.

Consolidation, Policy [Policy Text Block]

Consolidation

The accompanying consolidated financial statements include the Company’s wholly owned subsidiary, Liquidia Corporation, and Liquidia Corporation’s wholly owned subsidiaries, Gemini Merger Sub I, Inc. and Gemini Merger Sub II, LLC. All intercompany accounts and transactions have been eliminated.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of 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 as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications

The Company has reclassified certain prior period amounts for comparative purposes. The Company reclassified certain prior period amounts to conform to the current period presentation, including the categorization of non-cash lease expense within the operating activities section of the Statements of Cash Flows. These reclassifications did not have any effect on the Company’s previously reported financial condition, results of operations or cash flows.

Revision of Previously Issued Financial Statements

During the three months ended June 30, 2020, the Company identified an error in the matter in which it calculated diluted weighted common shares outstanding and diluted net loss per common share. While the Company has included common stock warrants whose exercise price is de minimis in the calculation of basic weighted average common shares outstanding and basic net loss per common share, these warrants were inappropriately excluded from the calculation of diluted weighted common shares outstanding and diluted net loss per common share, which resulted in an error in those previously reported amounts for the three and nine month periods ended September 30, 2019. The Company has evaluated this error and determined that this presentation error was not material to any prior annual or interim periods. However, the Company is revising the previously presented September 30, 2019 diluted weighted common shares outstanding and diluted net loss per common share as follows:

	Three Months Ended						Nine Months Ended
	September 30, 2019						September 30, 2019
	As Presented			As Revised			As Presented			As Revised

Net loss per common share: Diluted	$	(0.72	)	$	(0.72	)	$	(1.87	)	$	(1.85	)

Diluted weighted average shares outstanding		18,650,965			18,757,166			17,737,737			17,856,826

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash. The Company is exposed to credit risk, subject to federal deposit insurance, in the event of default by the financial institutions holding its cash to the extent of amounts recorded on the consolidated balance sheet. With regard to cash, 100% of the Company’s cash is held on deposit with Pacific Western.

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

The Company may derive revenue from licensing its proprietary PRINT technology and from performing research and development services. Revenue is recognized as services are performed in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services and technology.

The transaction price for these contracts includes non-refundable fees and fees for research and development services. Non-refundable up-front fees which may include, for example, an initial payment upon effectiveness of the contractual relationship or payment to secure a right for a future license, are recorded as deferred revenue and recognized into revenue over time as the Company provides the research services under the contract required to advance the products to the point where the Company is able to transfer control of the licensed technology to the customer (“Technology Transfer”). The contract consideration may also include additional non-refundable payments due to the Company based on the achievement of research, development, regulatory or commercialization milestone events. In agreements involving multiple goods or services promised to be transferred to customers, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is “distinct”), or whether such promises should be combined as a single performance obligation. As these goods and services are considered to be highly interrelated, they may be considered to represent a single, combined performance obligation. The Company includes an estimate of the probable amount of milestone payments to which it will be entitled in the transaction price. The estimate requires evaluation of factors which are outside of the Company’s control and significantly limit the Company’s ability to achieve the remaining milestone payments. The Company revises the transaction price to include milestone payments once the specific milestone achievement is not considered to be subject to a significant reversal of revenue. At that time, the estimated transaction price is adjusted and a cumulative catch-up adjustment is recorded to adjust the amount of revenue to be recognized from the license inception to the date the milestone was deemed probable of achievement. The milestone is included with other non-refundable up-front fees and recognized into revenue over time as the Company continues to provide services under the contract through the Company’s Technology Transfer. The amount of revenue recognized is based on the proportion of total research services performed to date to the expected services to be provided through the Technology Transfer.

Royalties related to product sales will be recognized as revenue when the sale occurs since payments relate directly to products that will have been fully developed and for which the Company will have satisfied all of its performance obligations.

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

The Company estimates the grant date fair value of its share-based awards and amortizes this fair value to compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award (see Note 4). The grant date fair value of stock options is determined using the Black-Scholes option-pricing model.

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period, without consideration of common stock equivalents.

Diluted net loss per share is calculated by adjusting the weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the diluted net loss per share calculation, stock options and restricted stock units are considered to be common stock equivalents but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Due to their anti-dilutive effect, the calculation of diluted net loss per share for the three and nine months ended September 30, 2020 and 2019 does not include the following common stock equivalent shares:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Stock Options		2,747,538		2,037,003		2,516,604		2,037,003
Restricted Stock Units		123,369		—		98,355		—
Total		2,870,907		2,037,003		2,614,959		2,037,003

For the three and nine months ended September 30, 2020 and 2019, common stock warrants are included in the calculation of basic and diluted net loss per share since their exercise price is de minimis.

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

Fair Value of Financial Instruments

The carrying values of cash and accounts payable at September 30, 2020 and December 31, 2019 approximated their fair value due to the short maturity of these instruments.

The Company’s valuation of financial instruments is based on a three-tiered approach, which requires that fair value measurements be classified and disclosed in one of three tiers. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities;

Level 2 — Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly; and

Level 3 — Unobservable inputs for the asset and liability used to measure fair value, to the extent that observable inputs are not available.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables present the placement in the fair value hierarchy of financial liabilities measured at fair value as of September 30, 2020 and December 31, 2019:

September 30, 2020

Quoted
Prices in
Active
Markets
(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Carrying
Value

Pacific Western Bank note - A&R LSA

—

9,972,600

—

11,690,010

December 31, 2019

Quoted
Prices in
Active
Markets
(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Carrying
Value

Pacific Western Bank note - A&R LSA

—

14,094,792

—

15,878,121

The fair value of debt is measured in accordance with ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The fair value is determined based on the exit price notion using credit spreads and an illiquidity premium for each loan. The credit spread is determined by the credit risk rating, loan rate index, and maturity date. The illiquidity premium is based on the loan’s credit risk rating.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In October 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 ("ASU 2018-18"). The provisions of ASU 2018-18 clarify when certain transactions between collaborative arrangement participants should be accounted for under ASC 606 and incorporates unit-of-account guidance consistent with ASC 606 to aid in this determination. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2018-18 effective January 1, 2020 and it did not have a material effect on the Company's consolidated financial statements for the three and nine months ended September 30, 2020.

Note 2 - Basis of Presentation, Significant Accounting Policies and Going Concern (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30, 2019						September 30, 2019
	As Presented			As Revised			As Presented			As Revised

Net loss per common share: Diluted	$	(0.72	)	$	(0.72	)	$	(1.87	)	$	(1.85	)

Diluted weighted average shares outstanding		18,650,965			18,757,166			17,737,737			17,856,826

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Stock Options		2,747,538		2,037,003		2,516,604		2,037,003
Restricted Stock Units		123,369		—		98,355		—
Total		2,870,907		2,037,003		2,614,959		2,037,003

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]

September 30, 2020

Quoted
Prices in
Active
Markets
(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Carrying
Value

Pacific Western Bank note - A&R LSA

—

9,972,600

—

11,690,010

December 31, 2019

Quoted
Prices in
Active
Markets
(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Carrying
Value

Pacific Western Bank note - A&R LSA

—

14,094,792

—

15,878,121

Note 4 - Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended September 30,				Nine Months Ended September 30,
By Expense Category:	2020		2019		2020		2019
Research and development	$	292,386	$	238,920	$	853,704	$	679,875
General and administrative		788,614		591,582		2,094,378		1,859,419

Total stock-based compensation expense	$	1,081,000	$	830,502	$	2,948,082	$	2,539,294

	Three Months Ended September 30,				Nine Months Ended September 30,
By Type of Award:	2020		2019		2020		2019
Stock Options	$	1,044,991	$	808,153	$	2,843,409	$	2,424,654
Restricted stock awards		36,009		22,349		104,673		114,640

Total stock-based compensation expense	$	1,081,000	$	830,502	$	2,948,082	$	2,539,294

Share-based Payment Arrangement, Nonvested Award, Cost [Table Text Block]

	As of September 30, 2020
	Unamortized Expense		Weighted Average Remaining Recognition Period (Years)
Stock Options	$	7,000,498		2.53
Restricted Stock Units	$	443,913		3.38

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

	Nine Months Ended
	September 30,
	2020				2019
Expected dividend yield			—%				—%
Risk-free interest rate		0.40%	-	1.60%		1.44%	-	2.54%
Expected Volatility		87%	-	90%		83%	-	85%
Expected life (years)			6.32				6.04

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding as of December 31, 2019		2,052,976		$	9.33
Granted		963,191		$	5.63
Exercised		(22,351	)	$	3.30
Cancelled		(424,454	)	$	8.11
Outstanding as of September 30, 2020		2,569,362		$	8.20		7.20	$	1,030,161
Exercisable as of September 30, 2020		1,274,181		$	8.34		5.55	$	444,747
Vested and expected to vest as of September 30, 2020		2,392,942		$	8.26		7.05	$	901,226

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

	Number of RSUs			Weighted Average Grant-Date Fair Value (per RSU)
Nonvested as of December 31, 2019		7,493		$	28.87
Granted		138,614			3.32
Vested		(2,107	)		28.87
Forfeited		(39,102	)		3.31
Nonvested as of September 30, 2020		104,898		$	4.63

Note 6 - Revenue From Contracts With Customers (Tables)

9 Months Ended

Sep. 30, 2020

Disaggregation of Revenue [Table Text Block]

	Revenue for the Nine Months Ended
	September 30, 2019 From
	Non-Refundable Payments				Research and
			Up-front		Development
	Milestones		Payments		Services		Total
GSK Inhaled	$	1,345,320	$	6,726,600	$	—	$	8,071,920
Other		—		—		200		200
Total	$	1,345,320	$	6,726,600	$	200	$	8,072,120

Note 7 - Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Table Text Block]

	September 30,			December 31,
	2020			2019
Lab and build-to-suit equipment	$	8,071,881		$	7,562,263
Office equipment		128,669			128,669
Furniture and fixtures		294,689			237,951
Computer equipment		896,022			804,046
Leasehold improvements		11,524,739			11,762,351
Construction-in-progress		—			91,797
Total property, plant and equipment		20,916,000			20,587,077
Accumulated depreciation and amortization		(13,527,624	)		(11,333,112	)
Property, plant and equipment, net	$	7,388,376		$	9,253,965

Note 10 - Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2020

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

		September 30,			December 31,
	Maturity Date	2020			2019
Pacific Western Bank term loan outstanding	October 25, 2022	$	11,690,010		$	15,878,121
Less current portion			(5,585,636	)		(5,585,637	)
Long-term debt, less current portion		$	6,104,374		$	10,292,484

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

Year ending December 31:
2020 – three months remaining	$	1,411,766
2021		5,647,059
2022		4,705,881
Thereafter		—
Total		11,764,706
Less: Unamortized discount		(52,336	)
Less: Unamortized debt issuance costs		(22,360	)
Less: Current portion of long-term debt		(5,585,636	)
Long-term debt, noncurrent	$	6,104,374

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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Note 1 - Business (Details Textual) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares	Sep. 30, 2020 $ / shares	Dec. 31, 2019 $ / shares
Number of Products Under Development		2
Common Stock, Par or Stated Value Per Share (in dollars per share) \| $ / shares		$ 0.001	$ 0.001
Merger With RareGen LLC [Member] \| Forecast [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	6,166,666
Business Acquisition, Minimum Cash at Closing to Entitle Members of Acquired Company to Pro Rata Portion in Excess \| $	$ 1.0
Business Combination, Consideration Transferred, Total \| $	$ 23.9
Business Acquisition, Share Price (in dollars per share) \| $ / shares	$ 3.34
Business Combination, Contingent Consideration, Liability, Total \| $	$ 3.3
Merger With RareGen LLC [Member] \| Forecast [Member] \| Maximum [Member]
Business Acquisition, Number of Additional Shares Issuable Upon Achievement of Sales Target (in shares)	2,708,333
Merger With RareGen LLC [Member] \| Forecast [Member] \| RareGen Common Units Converted to HoldCo Common Units [Member]
Conversion of Stock, Shares Converted (in shares)	10,000
Merger With RareGen LLC [Member] \| Forecast [Member] \| Holdback Shares [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	616,666

Note 2 - Basis of Presentation, Significant Accounting Policies and Going Concern (Details Textual) - USD ($) $ in Millions		9 Months Ended
	Oct. 26, 2018	Sep. 30, 2020
Credit Concentration Risk [Member] \| Cash Held on Deposit [Member] \| Pacific Western Bank [Member]
Concentration Risk, Percentage		100.00%
Pacific Western Bank Note, A&R LSA [Member]
Debt Instrument Agreement, Minimum Cash Balance To Be Maintained	$ 8.5	$ 8.5

Note 2 - Basis of Presentation, Significant Accounting Policies and Going Concern - Revision of Previously Issued Financial Statements (Details) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Net loss per common share: Diluted (in dollars per share)	$ (0.72)	$ (1.85)
Diluted weighted average shares outstanding (in shares)	18,757,166	17,856,826
Previously Reported [Member]
Net loss per common share: Diluted (in dollars per share)	$ (0.72)	$ (1.87)
Diluted weighted average shares outstanding (in shares)	18,650,965	17,737,737

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Note 2 - Basis of Presentation, Significant Accounting Policies and Going Concern - Common Stock Equivalent Shares Excluded From Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Anti-dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share (in shares)	2,870,907	2,037,003	2,614,959	2,037,003
Share-based Payment Arrangement, Option [Member]
Anti-dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share (in shares)	2,747,538	2,037,003	2,516,604	2,037,003
Restricted Stock Units (RSUs) [Member]
Anti-dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share (in shares)	123,369	0	98,355	0

Note 2 - Basis of Presentation, Significant Accounting Policies and Going Concern - Fair Value of Financial Liabilities (Details) - Pacific Western Bank Note, A&R LSA [Member] - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Reported Value Measurement [Member]
Total financial instruments	$ 11,690,010	$ 15,878,121
Fair Value, Inputs, Level 1 [Member] \| Estimate of Fair Value Measurement [Member]
Total financial instruments	0	0
Fair Value, Inputs, Level 2 [Member] \| Estimate of Fair Value Measurement [Member]
Total financial instruments	9,972,600	14,094,792
Fair Value, Inputs, Level 3 [Member] \| Estimate of Fair Value Measurement [Member]
Total financial instruments	$ 0	$ 0

Note 3 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions				1 Months Ended		3 Months Ended		9 Months Ended
	Sep. 29, 2020	Jul. 02, 2020	Dec. 23, 2019	Aug. 31, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Common Stock and Preferred Stock, Shares Authorized (in shares)						70,000,000		70,000,000
Common Stock and Preferred Stock, Par or Stated Value Per Share (in dollars per share)						$ 0.001		$ 0.001
Common Stock, Shares Authorized (in shares)						60,000,000		60,000,000		40,000,000
Preferred Stock, Shares Authorized (in shares)						10,000,000		10,000,000		10,000,000
Stock Issued During Period, Shares, New Issues (in shares)					3,000,000
Proceeds from Issuance of Common Stock					$ 34.5
Proceeds from Issuance of Common Stock, Net of Offering Costs					$ 31.8
Share Price (in dollars per share)					$ 11.50
Warrants to Purchase Common Stock [Member]
Class of Warrant or Right, Exercised During Period (in shares)						0	0	0	64,629
Class of Warrant or Right, Outstanding (in shares)						106,274		106,274		106,274
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)						$ 0.0168		$ 0.0168		$ 0.0168
Underwritten Public Offering [Member]
Stock Issued During Period, Shares, New Issues (in shares)	9,375,000
Shares Issued, Price Per Share (in dollars per share)	$ 8.00
Proceeds from Issuance of Common Stock		$ 70.3
Private Placement [Member]
Stock Issued During Period, Shares, New Issues (in shares)			7,164,534
Shares Issued, Price Per Share (in dollars per share)			$ 3.13
Proceeds from Issuance of Private Placement			$ 22.4
Proceeds from Issuance of Private Placement, Net of Offering Costs			$ 21.0
ATM Agreement [Member]
Stock Issued During Period, Shares, New Issues (in shares)								131,425
Proceeds from Issuance of Common Stock, Net of Offering Costs								$ 0.7
ATM Agreement [Member] \| Jefferies, LLC [Member]
Sale of Stock, Maximum Aggregate Offering Price				$ 40.0
Sale of Stock, Commission Percentage				3.00%

Note 4 - Stock-based Compensation (Details Textual) - USD ($)						6 Months Ended	9 Months Ended		12 Months Ended
	Aug. 31, 2020	Feb. 28, 2020	Jan. 01, 2020	May 08, 2019	Jan. 01, 2019	Aug. 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2019	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)							$ 4.16	$ 8.35
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate							0.00%	0.00%
Share Price (in dollars per share)											$ 11.50
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)							138,614
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)							4 years
Restricted Stock Units (RSUs) [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)							138,614
Common Stock [Member]
Share Price (in dollars per share)	$ 5.12	$ 4.13				$ 5.12	$ 4.92
The 2018 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)			2,416,811		2,220,778		1,696,052		1,600,000	1,287,561
Increase in Reserve, Percentage of Shares Issued and Outstanding									4.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares)			1,129,250		620,778
The 2016 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)							656,927
The 2004 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)							375,056
The ESPP [Member]
Common Stock, Capital Shares Reserved for Future Issuance (in shares)							446,731
Employee Stock Purchase Plan, Maximum Contribution Per Eligible Employee				$ 25,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent				85.00%		85.00%
Employee Stock Purchase Plan, Stock Issued During Period, Shares (in shares)	1,821	3,269

Note 4 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stock-based compensation expense	$ 1,081,000	$ 830,502	$ 2,948,082	$ 2,539,294
Share-based Payment Arrangement, Option [Member]
Stock-based compensation expense	1,044,991	808,153	2,843,409	2,424,654
Restricted Stock Units (RSUs) [Member]
Stock-based compensation expense	36,009	22,349	104,673	114,640
Research and Development Expense [Member]
Stock-based compensation expense	292,386	238,920	853,704	679,875
General and Administrative Expense [Member]
Stock-based compensation expense	$ 788,614	$ 591,582	$ 2,094,378	$ 1,859,419

Note 4 - Stock-based Compensation - Unamortized Compensation Expense (Details)	9 Months Ended
	Sep. 30, 2020 USD ($)
Share-based Payment Arrangement, Option [Member]
Stock-based awards, unamortized expense	$ 7,000,498
Stock-based awards, weighted average remaining recognition period (Year)	2 years 6 months 10 days
Restricted Stock Units (RSUs) [Member]
Stock-based awards, unamortized expense	$ 443,913
Stock-based awards, weighted average remaining recognition period (Year)	3 years 4 months 17 days

Note 4 - Stock-based Compensation - Fair Value Assumptions (Details)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Expected dividend yield	0.00%	0.00%
Risk-free interest rate, minimum	0.40%	1.44%
Risk-free interest rate, maximum	1.60%	2.54%
Expected Volatility, minimum	87.00%	83.00%
Expected Volatility, maximum	90.00%	85.00%
Expected life (years) (Year)	6 years 3 months 25 days	6 years 14 days

Note 4 - Stock-based Compensation - Stock Option Activity (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020
Outstanding, number of shares (in shares)	2,052,976
Outstanding, weighted average exercise price (in dollars per share)	$ 9.33
Granted, number of shares (in shares)	963,191
Granted, weighted average exercise price (in dollars per share)	$ 5.63
Exercised, number of shares (in shares)	(22,351)
Exercised, weighted average exercise price (in dollars per share)	$ 3.30
Cancelled, number of shares (in shares)	(424,454)
Cancelled, weighted average exercise price (in dollars per share)	$ 8.11
Outstanding, number of shares (in shares)	2,569,362
Outstanding, weighted average exercise price (in dollars per share)	$ 8.20
Outstanding, weighted average contractual term (Year)	7 years 2 months 12 days
Outstanding, aggregate intrinsic value	$ 1,030,161
Exercisable, number of shares (in shares)	1,274,181
Exercisable, weighted average exercise price (in dollars per share)	$ 8.34
Exercisable, weighted average contractual term (Year)	5 years 6 months 18 days
Exercisable, aggregate intrinsic value	$ 444,747
Vested and expected to vest, number of shares (in shares)	2,392,942
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 8.26
Vested and expected to vest, weighted average contractual term (Year)	7 years 18 days
Vested and expected to vest, aggregate intrinsic value	$ 901,226

Note 4 - Stock-based Compensation - Nonvested RSU Awards Outstanding (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Nonvested, number (in shares) \| shares	7,493
Nonvested , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 28.87
Granted, number (in shares) \| shares	138,614
Granted , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 3.32
Vested , number (in shares) \| shares	(2,107)
Vested , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 28.87
Forfeited, number (in shares) \| shares	(39,102)
Forfeited , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 3.31
Nonvested , number (in shares) \| shares	104,898
Nonvested , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 4.63

Note 6 - Revenue From Contracts With Customers (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Feb. 29, 2016	Sep. 30, 2015	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue from Contract with Customer, Excluding Assessed Tax, Total			$ 0	$ 0	$ 0	$ 8,072,120
GSK Inhaled 1 [Member]
Nonrefundable Payment To Be Received		$ 15,000,000.0
Collaboration Agreement Milestone Payment	$ 3,000,000.0
Collaboration Agreement Combined Up Front and Milestone Payments	$ 18,000,000
Contract with Customer, Liability, Revenue Recognized						8,100,000
Royalty [Member]
Revenue from Contract with Customer, Excluding Assessed Tax, Total			$ 0	$ 0	$ 0	$ 0

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (a)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

Note 6 - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue	$ 0	$ 0	$ 0	$ 8,072,120
Non-Refundable Payments - Milestones [Member]
Revenue				1,345,320
Non-Refundable Payments - Up-front Payments [Member]
Revenue				6,726,600
Research and Development Services [Member]
Revenue				200
GSK Inhaled [Member]
Revenue				8,071,920
GSK Inhaled [Member] \| Non-Refundable Payments - Milestones [Member]
Revenue				1,345,320
GSK Inhaled [Member] \| Non-Refundable Payments - Up-front Payments [Member]
Revenue				6,726,600
GSK Inhaled [Member] \| Research and Development Services [Member]
Revenue				0
Other Customer [Member]
Revenue				200
Other Customer [Member] \| Non-Refundable Payments - Milestones [Member]
Revenue				0
Other Customer [Member] \| Non-Refundable Payments - Up-front Payments [Member]
Revenue				0
Other Customer [Member] \| Research and Development Services [Member]
Revenue				$ 200

Note 7 - Property, Plant and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Depreciation, Depletion and Amortization, Nonproduction, Total	$ 722,325	$ 604,164	$ 2,178,402	$ 1,857,070

Note 7 - Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Total property, plant and equipment	$ 20,916,000	$ 20,587,077
Accumulated depreciation and amortization	(13,527,624)	(11,333,112)
Property, plant and equipment, net	7,388,376	9,253,965
Lab and Build-to-Suit Equipment [Member]
Total property, plant and equipment	8,071,881	7,562,263
Office Equipment [Member]
Total property, plant and equipment	128,669	128,669
Furniture and Fixtures [Member]
Total property, plant and equipment	294,689	237,951
Computer Equipment [Member]
Total property, plant and equipment	896,022	804,046
Leasehold Improvements [Member]
Total property, plant and equipment	11,524,739	11,762,351
Construction in Progress [Member]
Total property, plant and equipment	$ 0	$ 91,797

Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Expense (Benefit), Total	$ 0	$ 0	$ 0	$ 0