wint20170331

0001437749-17-009269.txt : 20170515 0001437749-17-009269.hdr.sgml : 20170515 20170515170055 ACCESSION NUMBER: 0001437749-17-009269 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 45 CONFORMED PERIOD OF REPORT: 20170331 FILED AS OF DATE: 20170515 DATE AS OF CHANGE: 20170515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WINDTREE THERAPEUTICS INC /DE/ CENTRAL INDEX KEY: 0000946486 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 943171943 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-26422 FILM NUMBER: 17845427 BUSINESS ADDRESS: STREET 1: 2600 KELLY ROAD STREET 2: SUITE 100 CITY: WARRINGTON STATE: PA ZIP: 18976 BUSINESS PHONE: 2154889300 MAIL ADDRESS: STREET 1: 2600 KELLY ROAD STREET 2: SUITE 100 CITY: WARRINGTON STATE: PA ZIP: 18976 FORMER COMPANY: FORMER CONFORMED NAME: DISCOVERY LABORATORIES INC /DE/ DATE OF NAME CHANGE: 19971201 FORMER COMPANY: FORMER CONFORMED NAME: ANSAN PHARMACEUTICALS INC DATE OF NAME CHANGE: 19961121 FORMER COMPANY: FORMER CONFORMED NAME: ANSAN INC DATE OF NAME CHANGE: 19950609 10-Q 1 wint20170331_10q.htm FORM 10-Q wint20170331_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 000-26422

Windtree Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

Delaware		94-3171943
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
	2600 Kelly Road, Suite 100
	Warrington, Pennsylvania 18976-3622
	(Address of principal executive offices)

(215) 488-9300

(Registrant’s telephone number, including area code)

__________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller reporting company	☒

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of May 11, 2017, there were outstanding 10,301,287 shares of the registrant’s common stock, par value $0.001 per share.

Table of Contents

PART I - FINANCIAL INFORMATION

		Page

Item 1.	Financial Statements	1

	CONDENSED CONSOLIDATED BALANCE SHEETS As of March 31, 2017 (unaudited) and December 31, 2016	1

	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the Three Months Ended March 31, 2017 and 2016	2

	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the Three Months Ended March 31, 2017 and 2016	3

	Notes to Condensed Consolidated Financial Statements (unaudited)	4

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11

Item 3.	Quantitative And Qualitative Disclosures About Market Risk	18

Item 4.	Controls and Procedures	18

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	18

Item 1A.	Risk Factors	18

Item 6.	Exhibits	19

Signatures		20

Unless the context otherwise requires, all references to “we,” “us,” “our,” and the “Company” include Windtree Therapeutics, Inc., and its wholly owned, presently inactive subsidiary, Discovery Laboratories, Inc.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements provide our current expectations or forecasts of future events and financial performance and may be identified by the use of forward-looking terminology, including such terms as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology, though the absence of these words does not necessarily mean that a statement is not forward-looking. Forward-looking statements include all matters that are not historical facts and include, without limitation, statements concerning: our business strategy, outlook, objectives, future milestones, plans, intentions, goals, and future financial condition, including the period of time during which our existing resources will enable us to fund our operations and continue as a going concern. Forward-looking statements also include our financial, clinical, manufacturing and distribution plans, and our expectations related to our development and potential regulatory plans to secure marketing authorization for AEROSURF®, if approved, and other potential future products that we may develop; our expectations, timing and anticipated outcomes of submitting regulatory filings for our products under development; our research and development programs, including planning for development activities, anticipated timing of clinical trials and potential development milestones, for our KL4 surfactant product candidates, our aerosol delivery system (ADS) based on our proprietary aerosol technology for delivery of aerosolized medications; plans for the manufacture of drug products, active pharmaceutical ingredients (APIs), materials and medical devices; plans regarding potential strategic alliances and collaborative arrangements to develop, manufacture and market our products, and other potential strategic transactions.

We intend that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from any future results expressed or implied by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Examples of the risks and uncertainties include, but are not limited to:

Risks Related to Capital Resource Requirements

•

the risk that our ability to continue as a going concern in the near-term is highly dependent upon our successfully completing the AEROSURF phase 2b clinical trial in mid-2017 and obtaining results that are sufficiently positive to support a strategic transaction and/or equity financing immediately thereafter. If we obtain results that are suboptimal or present an unacceptable benefit/risk profile, we may be unable to secure the additional required capital, which likely would prevent us from continuing as a going concern;

•

the risk that, as a development company, with limited resources and no operating revenues, we currently have sufficient capital resources to fund our AEROSURF development program, support our business operations and pay our debt service obligations on a timely basis to mid-year 2017, and, if for any reason we are unable to raise additional capital before our resources are exhausted, we likely would be unable to continue as a going concern;

•

the risk that, even if we successfully complete the AEROSURF phase 2b clinical trial in accordance with our plan, we will continue to require significant additional infusions of capital to support our business operations and efforts to potentially identify and secure significant strategic transactions, pay our debt service obligations, and advance our development activities, including additional AEROSURF clinical development programs; and the risk that our ability to raise such capital may be adversely impacted by future developments;

•

the risk that our transition to the OTC Markets’ OTCQB® market tier, which was effective on May 5, 2017, following suspension of our common stock from The Nasdaq Capital Market® on the same date may adversely affect our ability to raise the additional capital that we will require and, in turn, adversely affect the ability of our stockholders to trade our securities and may negatively impact the value and liquidity of our common stock, which could have a material and adverse effect on our ability to raise the additional capital that we will require;

•

the risk that our ability to raise additional capital is subject to certain other risks, including (i) limitations on the amount that we can raise under our 2014 universal shelf registration statement on Form S-3 (2014 Universal Shelf), which in any event will expire on June 12, 2017 and will not be replaced; (ii) the risk that our "at-the-market" equity sales program (ATM Program), our only arrangement to efficiently secure additional capital in the public market, has been suspended effective with the delisting of our common stock from The Nasdaq Capital Market; (iii) the risk that our stockholders may not approve a capital transaction for which stockholder approval is required under Delaware law; (iv) our capital structure, which currently consists of common stock, convertible preferred stock, pre-funded warrants and warrants to purchase common stock, and $25 million of debt, may make it difficult to conduct equity-based financings, and (iv) that unfavorable credit and financial markets may adversely affect our ability to fund our activities and that additional equity financings could result in substantial equity dilution of stockholders' interests;

•

risks relating to our pledge of substantially all of our assets to secure our obligations under a $25 million secured loan with affiliates of Deerfield Management Company, L.P. (Deerfield), which could make it more difficult for us to secure additional capital, including to satisfy our Deerfield debt obligations, with respect to which a principal payment in the amount of $12.5 million is payable in February 2018, and require us to dedicate cash flow to pay debt service, which would reduce the availability of our cash flow to fund working capital, capital expenditures and other investments; moreover, we may be required to seek the consent of Deerfield to enter into certain strategic transactions;

•

risks relating to our ability to manage our limited resources effectively and timely modify our business strategy as needed to respond to developments in our research and development activities, as well as in our business, our industry and other factors;

Risks related to Development Activities

•

risks related to our AEROSURF clinical development program, which involves significant risks and uncertainties that are inherent in clinical development. Our clinical trials may be delayed, terminated early due to safety or other concerns, subjected to conditions imposed by the FDA or other regulatory body, or fail. Failure to achieve positive results from our ongoing phase 2b clinical trial, for any reason, will harm our business prospects and have a material adverse effect on our business and operations;

•

risks related to our AEROSURF development program, including with respect to our aerosol delivery system (ADS), lyophilized KL4 surfactant and clinical development activities, that might arise and could affect the AEROSURF development program and potential future research and development activities, and potentially have a material adverse effect on our business and operations;

•

risks related to our efforts to gain regulatory approval in a timely and successful manner, in the U.S. and in international markets, for our drug products and combination drug/device product candidates, including AEROSURF, including that changes in the national or international political and regulatory environment may make it more difficult to gain FDA or international regulatory approvals for our product candidates;

•

risks relating to the rigorous regulatory approval processes required for approval of any drug, medical device or combination drug/device product that we may develop, whether independently, with strategic partners or pursuant to collaboration arrangements, including that the FDA or other regulatory authorities may withhold or delay consideration of any applications that we may submit; or that the FDA or other regulatory authorities may not agree on matters raised during the review process, or that we may be required to conduct significant additional activities to potentially gain approval of our product candidates; or that the FDA or other regulatory authorities may not approve our applications or may limit approval of our products to particular indications or impose unanticipated label limitations;

Risks Related to Strategic and Other Transactions

•

the risk that we may be unable to identify and enter into strategic alliances, collaboration agreements or other strategic transactions that would provide capital to support our AEROSURF development activities and resources and expertise to support the registration and commercialization of AEROSURF in various markets and potentially support the development and, if approved, commercialization, of our other potential KL4 surfactant pipeline products;

Risks related to Manufacturing

•

the risk that we, our contract manufacturing organizations (CMOs) or any of our third-party suppliers, most of which are single-source providers, may encounter problems in manufacturing our KL4 surfactant, the active pharmaceutical ingredients (APIs) used in the manufacture of our KL4 surfactant, the ADS and related components, and other materials on a timely basis or in an amount sufficient to support our needs;

•

risks relating to the transfer of our KL4 surfactant manufacturing technology to our CMOs, and our CMOs’ ability to manufacture our lyophilized KL4 surfactant, which must be processed in an aseptic environment and tested using sophisticated and extensive analytical methodologies and quality control release and stability tests, for our research and development activities and, if approved, commercial applications;

•

risks related to ongoing manufacturing process development by our suppliers of APIs and our ability to comply with ultimate drug approval specifications;

•

risks relating to our ability and our device manufacturer and assembler’s ability to develop and manufacture our ADS and related components for preclinical and clinical studies of our combination drug/device product candidates and, if approved, commercial activities;

iii

Other Risks Affecting our Business

•

the risk, even if we are able to secure regulatory approval for our products in one or more of the U.S. and international markets, that reimbursement and health care reform may adversely affect our ability to secure appropriate reimbursement; or that market conditions and other factors may make it difficult to gain access to certain markets and patient populations, which could have a material adverse effect on our business;

•

the risk that we, our strategic partners or collaborators will be unable to attract and retain key employees, including qualified scientific, professional and other personnel, in a competitive market for skilled personnel, which could have a material adverse effect on our commercial and development activities and our operations;

•

the risks that we may be unable to maintain and protect the patents and licenses related to our products and that other companies may develop competing therapies and/or technologies;

•

the risks that we may become involved in securities, product liability and other litigation and that our insurance may be insufficient to cover costs of damages and defense; and

•

other risks and uncertainties detailed in “Risk Factors” in our most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on March 31, 2017, and our other filings with the SEC and any amendments thereto, and in the documents incorporated by reference in this report.

Pharmaceutical, biotechnology and medical technology companies have suffered significant setbacks conducting clinical trials, even after obtaining promising earlier preclinical and clinical data. Moreover, data obtained from clinical trials are susceptible to varying interpretations, which could delay, limit or prevent regulatory approval. After gaining approval of a drug product, pharmaceutical and biotechnology companies face considerable challenges in marketing and distributing their products, and may never become profitable.

The forward-looking statements contained in this report or the documents incorporated by reference herein speak only as of their respective dates. Factors or events that could cause our actual results to differ may emerge from time to time and it is not possible for us to predict them all. Except to the extent required by applicable laws, rules or regulations, we do not undertake any obligation to publicly update any forward-looking statements or to publicly announce revisions to any of the forward-looking statements, whether as a result of new information, future events or otherwise.

Trademark Notice

AEROSURF®, AFECTAIR®, SURFAXIN®, SURFAXIN LS™, WINDTREE THERAPEUTICS™, and WINDTREE™ are registered and common law trademarks of Windtree Therapeutics, Inc. (Warrington, PA)

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

WINDTREE THERAPEUTICS, INC. AND SUBSIDIARY

Condensed Consolidated Balance Sheets

(in thousands, except share data)

	March 31, 2017			December 31, 2016
	Unaudited
ASSETS
Current Assets:
Cash and cash equivalents	$	8,022		$	5,588
Prepaid interest, current portion		1,094			1,094
Prepaid expenses and other current assets		392			512
Total current assets		9,508			7,194

Property and equipment, net		1,018			1,054
Restricted cash		225			225
Prepaid interest, non-current portion		956			1,226
Total assets	$	11,707		$	9,699

LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	2,312		$	1,813
Collaboration payable		4,098			3,967
Accrued expenses		5,926			7,611
Long-term debt, current portion		12,500			-
Total current liabilities		24,836			13,391

Long-term debt, non-current portion		12,500			25,000

Other liabilities		131			138
Total liabilities		37,467			38,529

Stockholders' Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 7,049 and 0 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively		-			-
Common stock, $0.001 par value; 60,000,000 authorized; 9,592,048 and 8,725,069 shares issued at March 31, 2017 and December 31, 2016, respectively; 9,590,556 and 8,723,577 shares outstanding at March 31, 2017 and December 31, 2016, respectively		10			9
Additional paid-in capital		604,676			592,883
Accumulated deficit		(627,392	)		(618,668	)
Treasury stock (at cost); 1,492 shares		(3,054	)		(3,054	)
Total stockholders' equity		(25,760	)		(28,830	)
Total liabilities & stockholders' equity	$	11,707		$	9,699

See notes to condensed consolidated financial statements

WINDTREE THERAPEUTICS, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share data)

	Three Months Ended
	March 31,
	2017			2016

Revenues:
Grant revenue	$	219		$	75

Expenses:
Research and development		6,413			10,360
General and administrative		1,922			3,657
Total operating expenses		8,335			14,017
Operating loss		(8,116	)		(13,942	)

Change in fair value of common stock warrant liability		-			223

Other income / (expense):
Interest income		3			7
Interest expense		(611	)		(622	)
Other income		-			433
Other income / (expense), net		(608	)		(182	)

Net loss	$	(8,724	)	$	(13,901	)

Deemed dividend on preferred stock		(3,604	)		-

Net loss attributable to common shareholders	$	(12,328	)	$	(13,901	)

Net loss per common share
Basic and diluted	$	(1.37	)	$	(1.70	)

Weighted average number of common shares outstanding
Basic and diluted		8,998			8,191

See notes to condensed consolidated financial statements

WINDTREE THERAPEUTICS, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Three Months Ended
	March 31,
	2017			2016
Cash flows from operating activities:
Net loss	$	(8,724	)	$	(13,901	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		56			76
Stock-based compensation and 401(k) plan employer match		370			658
Fair value adjustment of common stock warrants		-			(223	)
Amortization of prepaid interest		270			544
Changes in:
Prepaid expenses and other current assets		120			(138	)
Accounts payable		1,697			2,149
Collaboration payable		131			815
Accrued expenses		(1,252	)		835
Net cash used in operating activities		(7,332	)		(9,185	)

Cash flows from investing activities:
Purchase of property and equipment		(20	)		(137	)
Net cash used in investing activities		(20	)		(137	)

Cash flows from financing activities:
Proceeds from private placement issuance of securities, net of expenses		8,796			-
Proceeds from ATM Program, net of expenses		990			-
Net cash provided by financing activities		9,786			-
Net increase/(decrease) in cash and cash equivalents		2,434			(9,322	)
Cash, cash equivalents and restricted cash - beginning of year		5,813			38,947
Cash, cash equivalents and restricted cash - end of year	$	8,247		$	29,625

Supplementary disclosure of cash flows information:
Interest paid	$	259		$	22

See notes to condensed consolidated financial statements

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1 –

The Company and Description of Business

Windtree Therapeutics, Inc. (referred to as “we,” “us,” or the “Company”) is a biotechnology company focused on developing novel KL4 surfactant therapies for respiratory diseases and other potential applications. Surfactants are produced naturally in the lung and are essential for normal respiratory function and survival. Our proprietary technology platform includes a synthetic, peptide-containing surfactant (KL4 surfactant) that is structurally similar to endogenous pulmonary surfactant, and novel drug delivery technologies being developed to enable noninvasive administration of aerosolized KL4 surfactant. We believe that our proprietary technology platform may make it possible to develop a pipeline of surfactant products to address a variety of respiratory diseases for which there are few or no approved therapies.

Our lead development program is AEROSURF® (lucinactant for inhalation), an investigational combination drug/device product that combines our KL4 surfactant with our novel aerosol delivery system (ADS). We are developing AEROSURF to improve the management of respiratory distress syndrome (RDS) in premature infants. RDS is a serious respiratory condition caused by a deficiency of natural lung surfactant in lungs of premature infants, and the most prevalent respiratory disease in the neonatal intensive care unit (NICU). By enabling administration of aerosolized KL4 surfactant, AEROSURF may reduce or eliminate the need for invasive endotracheal intubation and mechanical ventilation, which currently are required to administer life-saving surfactant therapy, but which are associated with serious respiratory conditions and other complications. To avoid the risks of surfactant administration, many neonatologists initially treat premature infants with noninvasive respiratory support (such as nasal continuous positive airway pressure (nCPAP)), and then, if the infants do not do well, they are treated with delayed surfactant therapy using invasive procedures. We believe that AEROSURF, if approved, has the potential to address a serious unmet medical need by enabling earlier KL4 surfactant therapy for infants receiving nCPAP alone, reducing the number of premature infants who are subjected to invasive surfactant administration, and potentially providing transformative clinical and pharmacoeconomic benefits.

We are conducting an AEROSURF phase 2b clinical trial to evaluate aerosolized KL4 surfactant administered to premature infants 28 to 32 week gestational age receiving nCPAP, in two dose groups (25 and 50 minutes) with up to two potential repeat doses, compared to infants receiving nCPAP alone. This trial is being conducted in approximately 50 clinical sites in the U.S., Canada, the European Union (EU) and Latin America. Enrollment is ongoing and we remain on track to release top-line results in July 2017.

Note 2 –

Liquidity Risks and Management’s Plans

As of March 31, 2017, we had cash and cash equivalents of $8.0 million, current liabilities of $24.8 million (including $12.5 million of long-term debt, current portion) and $12.5 million of long-term debt, non-current portion.

In February 2017, we completed a private placement offering for which we received net proceeds of approximately $10.5 million, including $1.6 million of non-cash consideration. In addition, from January 1, 2017 through March 31, 2017, we completed registered offerings under our at-the-market equity sales program (ATM Program) with Stifel, Nicolaus & Company, Incorporated (Stifel) resulting in net proceeds to us of $1.0 million. Before any additional financings, including in connection with potential strategic transactions, we believe that we have sufficient cash resources available to support our development activities, business operations and debt service obligations through the planned completion of the AEROSURF® phase 2b clinical trial and announcement of results in July 2017.

We expect to continue to incur significant losses and require significant additional capital to further advance our AEROSURF clinical development program, if warranted by the results of our phase 2b clinical trial, support our operations and meet our debt service obligations beyond mid-year 2017, and we do not have sufficient existing cash and cash equivalents for at least the next year following the date that the financial statements are issued. These conditions raise substantial doubt about our ability to continue as a going concern within one year after the date that these financial statements are issued.

To potentially alleviate the conditions that raise substantial doubt about our ability to continue as a going concern, management plans to seek additional capital through the following: (i) all or a combination of strategic transactions, including potential alliances and collaborations focused on markets outside the U.S., as well as potential combinations (including by merger or acquisition) or other corporate transactions; and (ii) through public or private equity offerings. However, there can be no assurance that these alternatives will be available, or if available, that we will be able to raise sufficient capital through such transactions. If we are unable to raise the required capital, we will not have sufficient cash resources and liquidity to fund our business operations for at least the next year following the date that the financial statements are issued. Accordingly, management has concluded that substantial doubt exists with respect to our ability to continue as a going concern through one year after the issuance of these financial statements.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business, and do not include any adjustments relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Our ability to secure the needed capital through equity financings and other similar transactions is subject to regulatory and other restrictions (discussed below) and we cannot be certain that we will be able to raise a sufficient amount when needed, if at all, on favorable terms or otherwise. In the event that we cannot raise sufficient capital, we may be forced to consider transactions on less-than-favorable terms, or limit or cease our development activities, or consider other means of creating value for our stockholders. If we are unable to raise the required capital, we may be forced to curtail all of our activities and, ultimately, cease operations. Even if we are able to raise sufficient capital, such financings may only be available on unattractive terms, or result in significant dilution of stockholders’ interests and, in such event, the market price of our common stock may decline.

We believe that our ability to fund our activities in the near term will be highly dependent upon whether our AEROSURF phase 2b clinical trial is deemed a success and we achieve results that are sufficiently positive to support a strategic transaction and/or equity financing. Even if we are able to complete the phase 2b trial as planned, if the results of our clinical trial are inconclusive, or present an unacceptable benefit/risk profile due to suboptimal efficacy and/or safety profile, we may be unable to secure the additional capital that we will require to continue our development activities and operations, which could have a material adverse effect on our business.

Moreover, our ability to secure additional capital at a time when we would like or require may be affected by the following factors: (i) following the suspension of our common stock from The Nasdaq Capital Market® (Nasdaq) effective May 5, 2017, we transitioned trading of our common stock to OTCQB® Market (“OTCQB”), which is operated by OTC Market Groups Inc., under the symbol “WINT;” (ii) our 2014 Universal Shelf on Form S-3 will expire June 12, 2017 and, due to our suspension from Nasdaq, we will be unable to file a replacement shelf registration statement for use after the expiration date; (iii) since the market value of our common stock held by non-affiliated persons (public float) is less than $75 million, Form S-3 includes a “limited offering” rule that limits the size of primary securities offerings that we may conduct in any 12-month period to no more than one third of our public float calculated based on a closing price of our common stock within 60 days of a transaction. Since the suspension of our common stock from Nasdaq, we are no longer able to make use of our ATM Program, (iv) our stockholders may not approve a proposal to be presented for approval at our 2017 Annual Meeting of Stockholders to increase the number of shares of common stock authorized under our Amended and Restated Certificate of Incorporation, as amended, from 60 million to 120 million, which could impair our ability in the future to conduct equity financings or enter into certain strategic transactions; (v) our stockholders may not approve, to the extent required under Delaware law, strategic transactions (mergers and acquisitions) recommended by our Board, (vi) our capital structure, which currently consists of common stock, convertible preferred stock, pre-funded warrants and warrants to purchase common stock, and $25 million of debt, may make it difficult to conduct equity-based financings, and (vii) negative conditions in the broader financial and geopolitical markets. In light of the foregoing restrictions on our ability to conduct primary offerings on Form S-3, to be in a position to raise more than one third the value of our public float, we will be required to seek other methods of completing primary offerings, including, for example, under a registration statement on Form S-1, the preparation and maintenance of which would be more time-consuming and costly, and private placements, potentially with registration rights or priced at a discount to the market value of our stock, or other transactions, any of which could result in substantial equity dilution of stockholders’ interests.

In addition, we have from time to time collaborated with research organizations and universities to assess the potential utility of our KL4 surfactant in studies funded in part through non-dilutive grants issued by U.S. Government-sponsored drug development programs, including grants in support of initiatives related to our AEROSURF clinical development program. In August 2016, we announced that the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health (NIH) had awarded to us a Phase II Small Business Innovation Research Grant (SBIR) valued at up to $2.6 million to support the AEROSURF phase 2b clinical trial in premature infants 28 to 32 week gestational age. As of March 31, 2017, we have received and expended $1.0 million of this award. We also have received grants that support medical and biodefense-related initiatives under programs that encourage private sector development of medical countermeasures against chemical, biological, radiological and nuclear terrorism threat agents, and pandemic influenza, and provide a mechanism for federal acquisition of such countermeasures. In June 2016, we announced the results of a study funded by the NIH that KL4 surfactant could potentially be an effective medical countermeasure to mitigate acute and chronic/late-phase radiation-induced lung injury (pneumonopathy) due to exposure from a nuclear accident or act of terrorism. In addition, in February 2017 we announced the results of a study funded by the NIH that KL4 surfactant could be a potential medical intervention to reduce morbidity and mortality associated with both seasonal and pandemic influenza pneumonia. Although there can be no assurance, we expect to pursue potential additional funding opportunities as they arise and expect that we may qualify for similar programs in the future.

If we fail in the future to make any required payment under a secured loan (Deerfield Loan) with affiliates of Deerfield Management, L.P. (Deerfield) or if we fail to comply with any commitments contained in the loan documents, Deerfield would be able to declare a default under the loan agreement, which could result in the acceleration of the payment obligations under all or a portion of our indebtedness. Since we have pledged substantially all of our assets to secure our obligations under the Deerfield Loan, a debt default would enable the lenders to foreclose on our assets securing the debt and could significantly diminish the market value and marketability of our common stock.

As of March 31, 2017, we had outstanding 2.9 million pre-funded warrants issued in a July 2015 public offering, of which the entire exercise price was prepaid upon issuance and 7,049 convertible preferred stock units issued in the February 2017 private placement offering, of which each unit is convertible into 1,000 shares. Upon exercise of the pre-funded warrants and the convertible preferred stock units, we would issue common shares to the holders and receive no additional proceeds. In addition, as of March 31, 2017, there were 60 million shares of common stock and 5 million shares of preferred stock authorized under our Amended and Restated Certificate of Incorporation, as amended, and approximately 25.7 million shares of common stock and approximately 5 million shares of preferred stock available for issuance and not otherwise reserved.

There can be no assurance that our phase 2b clinical trial or other development program will be successful, that any products we develop will obtain necessary regulatory approval, that any approved product will be commercially viable, or that we will be able to secure strategic alliances or obtain additional capital when needed on acceptable terms, if at all. Even if we succeed in securing strategic alliances, raising additional capital and developing and subsequently commercializing product candidates, we may never achieve sufficient sales revenue to achieve or maintain profitability.

Nasdaq Suspension of Listing

On May 3, 2017, we received written notification from The Nasdaq Stock Market LLC (“Nasdaq”) that the Nasdaq Qualifications Hearings Panel (the “Panel”) had determined to delist our common stock from The Nasdaq Capital Market and that trading in our common stock would be suspended on The Nasdaq Capital Market effective at the open of business on Friday, May 5, 2017. Our shares were being delisted due to our continuing failure to comply with the minimum stockholders’ equity requirement set forth in Nasdaq Listing Rule 5550(b)(1). We filed an application to have our shares quoted on the OTCQB and our shares began trading there effective Friday, May 5, 2017.

The transition to the OTCQB does not have an immediate effect on our business operations, including our plans to complete and release top-line results from the AEROSURF phase 2b clinical trial by mid-2017. We also will continue to be registered with the SEC under the Exchange Act and will continue to file periodic financial reports that will be available on the SEC’s website, www.SEC.gov. However, delisting our common stock from Nasdaq and transitioning to the OTCQB may adversely affect our ability to raise the additional capital that we will require, through public or private sales of equity securities, and may impair the ability of our stockholders to trade our securities, which could negatively impact the value and liquidity of our common stock. If our common stock falls within the definition of a “penny stock,” brokers trading in our common stock will be required to adhere to more stringent market rules, which could result in reduced trading activity in our common stock, which could result in reduced trading levels and limited or no analyst coverage. Moreover, reduced trading activity in our common stock could adversely affect liquidity and make it more difficult for stockholders to sell their common stock.

Note 3 –

Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of normally recurring accruals) considered for fair presentation have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. There have been no changes to our critical accounting policies since December 31, 2016. For a discussion of our accounting policies, see, "– Note 4 – Accounting Policies and Recent Accounting Pronouncements,” in the Notes to Condensed Consolidated Financial Statements in our 2016 Form 10-K. Readers are encouraged to review those disclosures in conjunction with this Quarterly Report on Form 10-Q.

Note 4 –

Stockholders’ Equity

February 2017 Private Placement

On February 15, 2017, we completed a private placement offering of 7,049 Series A Convertible Preferred Stock units at a price per Unit of $1,495, for an aggregate purchase price of approximately $10.5 million, including $1.6 million of non-cash consideration representing a reduction in amounts due and accrued as of December 31, 2016 for current development services that otherwise would have become payable in cash in the first and second quarters of 2017. Each Unit consists of: (i) one share of Series A Convertible Preferred Stock, par value $0.001 per share ("Preferred Shares"); and (ii) 1,000 Series A-1 Warrants ("Warrants") to purchase one share of common stock at an exercise price equal to $1.37 per share. Each Preferred Share may be converted at the holder's option at any time into 1,000 shares of common stock at a conversion price of $1.37 per share. The Warrants may be exercised beginning six months after the date of issuance and through the seventh anniversary of the date of issuance. The Preferred Shares and the Warrants may not be converted or exercised to the extent that the holder would, following such exercise or conversion, beneficially own more than 9.99% (or other lesser percent as designated by each holder) of our outstanding shares of common stock. In addition to the offering, the securities purchase agreement also provides that, until February 13, 2018, the investors are entitled to participate in subsequent bona fide capital raising transactions that we may conduct.

At-the-Market (ATM) Program

During the three months ended March 31, 2017, we completed offerings of our common stock under our ATM Program of 805,916 shares resulting in an aggregate purchase price of approximately $1,034,000 ($990,000 net). As of March 31, 2017, approximately $21.3 million remained unutilized under the ATM Program. During the three months ended March 31, 2016, there were no offerings under our ATM Program.

Effective on May 5, 2017, since the suspension of our common stock from Nasdaq, we are no longer able to make use of our ATM Program (see, " –Note 2 – Liquidity Risks and Management’s Plans”)

Note 5 –

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements, in conformity with accounting principles generally accepted in the U.S., requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Severance

Effective February 1, 2016, we terminated the Employment Agreement between ourselves and our then President and Chief Executive Officer (Former CEO). During the first quarter of 2016, we incurred a severance charge of $1.2 million in selling, general and administrative expense under the terms of the Former CEO’s employment agreement, including $0.2 million related to stock option expense for certain options that will continue to vest through August 1, 2017. Of the $1.0 million in severance not related to stock-based compensation, $0.8 million was paid as of March 31, 2017. The remaining $0.2 million will be paid through the third quarter of 2017.

Research and Development Expense

We account for research and development expense by the following categories: (a) product development and manufacturing, (b) medical and regulatory operations, and (c) direct preclinical and clinical programs. Research and development expense includes personnel, facilities, manufacturing and quality operations, pharmaceutical and device development, research, clinical, regulatory, other preclinical and clinical activities and medical affairs. Research and development costs are charged to operations as incurred.

Net Loss Per Common Share

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per common share is computed by giving effect to all potentially dilutive securities outstanding for the period.

As of March 31, 2017 and 2016, the number of shares of common stock potentially issuable upon the conversion of preferred stock or the exercise of stock options and warrants was 24.3 million and 9.2 million shares, respectively. For the three months ended March 31, 2017 and 2016, all potentially dilutive securities were anti-dilutive and therefore have been excluded from the computation of diluted net loss per share.

In accordance with Accounting Standards Codification Topic 260, Earnings per Share, when calculating diluted net loss per common share, a gain associated with the decrease in the fair value of warrants classified as derivative liabilities results in an adjustment to the net loss; and the dilutive impact of the assumed exercise of these warrants results in an adjustment to the weighted average common shares outstanding. We utilize the treasury stock method to calculate the dilutive impact of the assumed exercise of warrants classified as derivative liabilities. For the three months ended March 31, 2017 and 2016, the effect of the adjustments for warrants classified as derivative liabilities was anti-dilutive.

We do not have any components of other comprehensive income (loss).

Beneficial Conversion Feature

The issuance of our Series A Convertible Preferred Stock (see, "– Note 4 – Stockholders' Equity") resulted in a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor (or in the money) at inception due to the conversion option having an effective conversion price that is less than the fair value of the underlying stock at the commitment date. We recognized the beneficial conversion feature by allocating the relative fair value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A Convertible Preferred Stock. As the Series A Convertible Preferred Stock is immediately convertible by the holders, the discount allocated to the beneficial conversion factor was immediately accreted and recognized as a $3.6 million one-time, non-cash deemed dividend to the preferred shareholders.

Recently Adopted Accounting Standards

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or are available to be issued). ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. We adopted ASU 2014-15 effective December 31, 2016. Management has concluded that substantial doubt exists with respect to our ability to continue as a going concern through one year after the issuance of the accompanying financial statements. See, "– Note 2 – Liquidity Risks and Management's Plans."

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update addresses the income tax effects of stock-based payments and eliminates the windfall pool concept, as all of the tax effects related to stock-based payments will now be recorded at settlement (or expiration) through the income statement. The new guidance also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for stock-based payment awards. Forfeitures can be estimated or recognized when they occur. We adopted ASU 2016-09 during the three months ended March 31, 2017 and will continue to recognize stock compensation expense with estimated forfeitures. The adoption did not have a material impact on our unaudited condensed consolidated financial statements and is not expected to have a material impact on the annual 2017 financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. We adopted ASU 2016-18 on March 31, 2017 on a retrospective basis. As a result, beginning-of-period cash, cash equivalents and restricted cash in the statement of cash flows increased by $0.2 million for each of the three month periods ended March 31, 2017 and 2016.

Recent Accounting Pronouncements

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU is effective prospectively for the annual period ending December 31, 2018 and interim periods within that annual period. Early adoption is permitted. We are currently evaluating the effect that ASU 2017-09 may have on our consolidated financial statements and related disclosures.

Note 6 –

Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

	●	Level 1 – Quoted prices in active markets for identical assets and liabilities.
	●	Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	●	Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair Value on a Recurring Basis

The tables below categorize assets and liabilities measured at fair value on a recurring basis for the periods presented:

	Fair Value		Fair value measurement using
	March 31,
(in thousands)	2017		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	8,022	$	8,022	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	8,247	$	8,247	$	-	$	-

	Fair Value		Fair value measurement using
	December 31,
(in thousands)	2016		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	5,588	$	5,588	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	5,813	$	5,813	$	-	$	-

The following table summarizes changes in the fair value of common stock warrant liability measured on a recurring basis using Level 3 inputs for the three months ended March 31, 2016 representing the write-off of the remaining liability upon expiration of the underlying warrants in February 2016.

(in thousands)

Balance at January 1, 2016	$	223
Change in fair value of common stock warrant liability		(223	)
Balance at March 31, 2016	$	-

Fair Value of Long-Term Debt

At March 31, 2017, the estimated fair value of the Deerfield Loan (see, "– Note 7 – Deerfield Loan”) was $21.4 million, compared to a carrying value for current and non-current portions of $25.0 million. The estimated fair value of the Deerfield Loan is based on discounting the future contractual cash flows to the present value at the valuation date. This analysis utilizes certain Level 3 unobservable inputs, including current cost of capital. Considerable judgment is required to interpret market data and to develop estimates of fair value. The estimates presented are not necessarily indicative of amounts we could realize in a current market exchange. The use of alternative market assumptions and estimation methodologies could have a material effect on these estimates of fair value.

Note 7 –

Long-term Debt

Long-term debt consists solely of amounts due under the Deerfield Loan for the periods presented:

	March 31,		December 31,
(in thousands)	2017		2016

Current portion	$	12,500	$	-
Non-current portion		12,500		25,000
Total Deerfield Loan	$	25,000	$	25,000

The principal amount of the loan is payable in two equal annual installments of $12.5 million, payable in each of February 2018 and 2019. Under the Deerfield Loan agreement, the February 2018 installment is subject to a potential one-year deferral until February 2019 if we have achieved a market capitalization of $250 million as set forth in the Deerfield Loan agreement. See, "– Note 9 – Long-term Debt,” in the Notes to Consolidated Financial Statements in our 2016 Form 10-K.

The following amounts comprise the Deerfield Loan interest expense for the periods presented:

	Three Months Ended March 31,
(in thousands)	2017		2016

Amortization of prepaid interest expense	$	270	$	544
Cash interest expense		254		-
Total interest expense	$	524	$	544

Amortization of prepaid interest expense represents non-cash amortization of $5 million of units purchased by Deerfield in our July 2015 public offering and accepted in satisfaction of $5 million of future interest payments calculated at an interest rate of 8.75% under the Deerfield Loan. Cash interest expense represents interest at an annual rate of 8.25% on the outstanding principal amount in 2017, paid in cash on a quarterly basis.

Note 8 –

Stock Options and Stock-Based Employee Compensation

We recognize in our condensed consolidated financial statements all stock-based awards to employees and non-employee directors based on their fair value on the date of grant, calculated using the Black-Scholes option-pricing model. Compensation expense related to stock-based awards is recognized ratably over the vesting period, which for employees is typically three years.

A summary of activity under our long-term incentive plans is presented below:

(in thousands, except for weighted-average data) Stock Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In Yrs)

Outstanding at January 1, 2017		1,142		$	14.66
Granted		822			1.23
Forfeited or expired		(1	)		112.42
Outstanding at March 31, 2017		1,963		$	8.96		8.7

Vested and exercisable at March 31, 2017		486		$	29.89		6.2

Vested and expected to vest at March 31, 2017		1,798		$	9.07		8.6

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula based on the following weighted average assumptions:

	Three Months Ended March 31,
	2017		2016

Weighted average expected volatility		79%		79%
Weighted average expected term (in years)		6.6		5.7
Weighted average risk-free interest rate		2.22%		1.40%
Expected dividends		-		-

The table below summarizes the total stock-based compensation expense included in the statements of operations for the periods presented:

	Three Months Ended March 31,
(in thousands)	2017		2016

Research and development	$	159	$	182
Selling, general and administrative		141		421
Total	$	300	$	603

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business and related financing activities, includes forward-looking statements that involve risks and uncertainties. The reader should review the “Forward-Looking Statements” section, and risk factors discussed elsewhere in this Quarterly Report on Form 10-Q, which are in addition to and supplement the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2016 that we filed with the Securities and Exchange Commission (SEC) on March 31, 2017 (2016 Form 10-K,) and our other filings with the SEC, and any amendments thereto, for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis or elsewhere in this Quarterly Report on Form 10-Q. The disclosure in this Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) of this Quarterly Report on Form 10-Q includes information on preclinical studies supported in part from funds from the National Institutes of Health (NIH). Such information is solely our responsibility and does not necessarily represent the official views of the National Institutes of Health.

This MD&A is provided as a supplement to the accompanying unaudited condensed consolidated financial statements and footnotes to help provide an understanding of our financial condition, the changes in our financial condition and our results of operations. This item should be read in connection with our accompanying interim unaudited Condensed Consolidated Financial Statements (including the notes thereto). Unless otherwise specified, references to Notes in this MD&A shall refer to the Notes to Condensed Consolidated Financial Statements (unaudited) in this Quarterly Report on Form 10-Q.

OVERVIEW

As a development company, with limited resources and no operating revenues, we believe that our ability to continue as a going concern in the near term is highly dependent upon our successfully completing the AEROSURF phase 2b clinical trial in mid-2017, as planned, and obtaining results that are sufficiently positive to support a strategic transaction and/or equity financing immediately thereafter. If the results are suboptimal or present an unacceptable benefit/risk profile, we may be unable to secure the additional required capital and ultimately could be forced to curtail our development activities and cease operations.

Business and Pipeline Program Updates

The reader is referred to, and encouraged to read in its entirety “Item 1 – Business – Company Overview” and “– Business Strategy,” in the 2016 Form 10-K, which contains a discussion of our Business and Business Strategy, as well as information concerning our proprietary technologies and our current and planned KL4 pipeline programs.

The following are updates to our business and development programs since filing the 2016 Form 10-K on March 31, 2017:

●

On May 3, 2017, we received written notification from The Nasdaq Stock Market LLC (“Nasdaq”) that the Nasdaq Qualifications Hearings Panel (the “Panel”) had determined to delist our common stock from The Nasdaq Capital Market® and that trading in our common stock would be suspended on The Nasdaq Capital Market effective at the open of business on Friday, May 5, 2017. Our shares are being delisted due to our continuing failure to comply with the minimum stockholders’ equity requirement set forth in Nasdaq Listing Rule 5550(b)(1). We filed an application to have our shares quoted on the OTCQB® Market ("OTCQB"), which is operated by OTC Market Group Inc. under the symbol "WINT," and our shares began trading there effective Friday, May 5, 2017.

●

We announced in April 2017 that the AEROSURF phase 2b independent Data Safety Monitoring Board (DSMB) completed its second and final interim safety review and recommended continuing the trial without modification. This final DSMB interim review was convened following achievement in mid-March 2017 of a pre-specified patient enrollment milestone. In addition, we reaffirmed our plan to announce top-line results from the AEROSURF phase 2b clinical trial in July 2017.

CRITICAL ACCOUNTING POLICIES

There have been no changes to our critical accounting policies since December 31, 2016. For a discussion of our accounting policies, see, "Note 4 – Accounting Policies and Recent Accounting Pronouncements,” in the Notes to Consolidated Financial Statements (Notes) in our 2016 Form 10-K. Readers are encouraged to review those disclosures in conjunction with this Quarterly Report on Form 10-Q.

RESULTS OF OPERATIONS

Net Loss and Operating Loss

The operating loss for the three months ended March 31, 2017 and 2016 was $8.1 million and $13.9 million, respectively. The decrease in operating loss from 2016 to 2017 was due to both a $0.1 million increase in grant revenues and a $5.7 million decrease in operating expenses.

The net loss for the three months ended March 31, 2017 and 2016 was $8.7 million and $13.9 million, respectively. Included in the net loss is (i) interest expense of $0.5 million for both 2017 and 2016 associated with the Deerfield Loan (see, "Note 7 – Deerfield Loan”); and (ii) for 2016, $1.2 million for a severance charge related to the termination of our former CEO and the change in fair value of certain common stock warrants classified as derivative liabilities, resulting in non-cash income of $0.2 million.

The net loss attributable to common shareholders for the three months ended March 31, 2017 and 2016 was $12.3 million (or $1.37 basic net loss per common share) and $13.9 million (or $1.70 basic net loss per common share), respectively. Included in the net loss attributable to common shareholders in 2017 is a $3.6 million one-time, non-cash deemed dividend on preferred stock (see, "Note 5 – Summary of Significant Accounting Policies").

Grant Revenue

We recognize grant revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collectability is reasonably assured.

For the three months ended March 31, 2017 and 2016 we recognized grant revenue of $0.2 million and $0.1 million, respectively.

Research and Development Expenses

Our research and development expenses are charged to operations as incurred and we account for such costs by category rather than by project. As many of our research and development activities form the foundation for the development of our KL4 surfactant and drug delivery technologies, they are expected to benefit more than a single project. For that reason, we cannot reasonably estimate the costs of our research and development activities on a project-by-project basis. We believe that tracking our expenses by category is a more accurate method of accounting for these activities. Our research and development costs consist primarily of expenses associated with (a) product development and manufacturing, (b) medical and regulatory operations, and (c) direct preclinical and clinical development programs. We also account for research and development and report by major expense category as follows: (i) salaries and benefits, (ii) contracted services, (iii) raw materials, aerosol devices and supplies, (iv) rents and utilities, (v) depreciation, (vi) contract manufacturing, (vii) travel, (viii) stock-based compensation and (ix) other.

Research and development expenses by category for the three months ended March 31, 2017 and 2016 are as follows:

	Three Months Ended March 31,
(in thousands)	2017		2016

Product development and manufacturing	$	1,877	$	3,781
Clinical, medical and regulatory operations		1,808		2,065
Direct preclinical and clinical programs		2,728		4,514
Total Research and Development Expenses	$	6,413	$	10,360

Research and development expenses include non-cash charges associated with stock-based compensation and depreciation of $0.2 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively.

Product Development and Manufacturing

Product development and manufacturing includes (i) manufacturing operations, both in-house and with CMOs, validation activities, quality assurance and analytical chemistry capabilities that support the manufacture of our KL4 surfactant used in research and development activities, and our medical devices, including our ADS, (ii) design and development activities related to our ADS for use in our AEROSURF clinical development program; and (iii) pharmaceutical and manufacturing development activities, including development of a lyophilized dosage form of our KL4 surfactant. These costs include employee expenses, facility-related costs, depreciation, costs of drug substances (including raw materials), supplies, quality control and assurance activities, analytical services, and expert consultants and outside services to support pharmaceutical and device development activities.

Product development and manufacturing expenses decreased $1.9 million for the three months ended March 31, 2017 compared to the same period in 2016 due to our efforts in the second quarter of 2016 to initiate cash conservation and other cost reduction measures.

Clinical, Medical and Regulatory Operations

Clinical, medical and regulatory operations includes (i) medical, scientific, preclinical and clinical, regulatory, data management and biostatistics activities in support of our research and development programs; and (ii) medical affairs activities to provide scientific and medical education support for our KL4 surfactant and aerosol delivery systems under development. These costs include personnel, expert consultants, outside services to support regulatory and data management, symposiums at key medical meetings, facilities-related costs, and other costs for the management of clinical trials.

Clinical, medical and regulatory operations expenses decreased $0.3 million for the three months ended March 31, 2017 compared to the same period in 2016 due to our efforts in the second quarter of 2016 to initiate cash conservation and other cost reduction measures.

Direct Preclinical and Clinical Development Programs

Direct preclinical and clinical development programs include: (i) development activities, toxicology studies and other preclinical studies; and (ii) activities associated with conducting clinical trials, including patient enrollment costs, clinical site costs, clinical device and drug supply, and related external costs, such as consultant fees and expenses.

Direct preclinical and clinical development programs expenses decreased $1.8 million for the three months ended March 31, 2017 compared to the same period in 2016 due to a decrease in AEROSURF phase 2 clinical development program costs, including the initiation of fewer clinical trial sites and a decrease in the manufacture of clinic-ready ADSs, as many of these upfront site initiations and manufacture of ADSs were completed during the three months ended March 31, 2016 and are not ongoing clinical trial costs.

General and Administrative Expenses

	Three Months Ended March 31,
(in thousands)	2017		2016

General and Administrative Expenses	$	1,922	$	3,657

General and administrative expenses consist of costs for executive management, business development, intellectual property, finance and accounting, legal, human resources, information technology, facility, other administrative costs and, for 2015, sales and marketing activities.

General and administrative expenses decreased $1.7 million for the three months ended March 31, 2017 compared to the same period in 2016 due to (i) cost reduction initiatives beginning in the second quarter of 2016 and (ii) $1.2 million of severance charges during the three months ended March 31, 2016 (see, "Note 5 –

Summary of Significant Accounting Policies”).

Other Income and (Expense)

	Three Months Ended March 31,
(in thousands)	2017			2016

Interest income	$	3		$	7
Interest expense		(611	)		(622	)
Other income		-			433
Other income / (expense), net	$	(608	)	$	(182	)

Interest expense primarily consists of interest expense associated with the Deerfield Loan (see, "Note 7 – Deerfield Loan”).

Other income/(expense) primarily consists of proceeds from the sale of Commonwealth of Pennsylvania research and development tax credits.

The following amounts comprise the Deerfield Loan interest expense for the periods presented:

	Three Months Ended March 31,
(in thousands)	2017		2016

Amortization of prepaid interest expense	$	270	$	544
Cash interest expense		254		-
Total interest expense	$	524	$	544

Amortization of prepaid interest expense represents non-cash amortization of $5 million of units that Deerfield purchased in our July 2015 public offering and accepted in satisfaction of $5 million of future interest payments calculated at an interest rate of 8.75% under the Deerfield Loan. Cash interest expense represents interest at an annual rate of 8.25% on the outstanding principal amount in 2017, paid in cash on a quarterly basis.

LIQUIDITY AND CAPITAL RESOURCES

In February 2017, we completed a private placement offering for which we received net proceeds of approximately $10.5 million, including $1.6 million of non-cash consideration. In addition, from January 1, 2017 through March 31, 2017, we completed registered offerings under our at-the-market equity sales program (ATM Program) with Stifel, Nicolaus & Company, Incorporated (Stifel) resulting in net proceeds to us of $1.0 million. Before any additional financings, including in connection with potential strategic transactions, we believe that we have sufficient cash resources available to support our development activities, business operations and debt service obligations through the planned completion of the AEROSURF phase 2b clinical trial and announcement of results in July 2017.

In addition, we have from time to time collaborated with research organizations and universities to assess the potential utility of our KL4 surfactant in studies funded in part through non-dilutive grants issued by U.S. Government-sponsored drug development programs, including grants in support of initiatives related to our AEROSURF clinical development program. In August 2016, we announced that the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health (NIH) had awarded to us a Phase II Small Business Innovation Research Grant (SBIR) valued at up to $2.6 million to support the AEROSURF® phase 2b clinical trial in premature infants 28 to 32 week gestational age. As of March 31, 2017, we have received and expended $1.0 million of this award. We also have received grants that support medical and biodefense-related initiatives under programs that encourage private sector development of medical countermeasures against chemical, biological, radiological and nuclear terrorism threat agents, and pandemic influenza, and provide a mechanism for federal acquisition of such countermeasures. In June 2016, we announced the results of a study funded by the NIH that KL4 surfactant could potentially be an effective medical countermeasure to mitigate acute and chronic/late-phase radiation-induced lung injury (pneumonopathy) due to exposure from a nuclear accident or act of terrorism. In addition, in February 2017 we announced the results of a study funded by the NIH that KL4 surfactant could be a potential medical intervention to reduce morbidity and mortality associated with both seasonal and pandemic influenza pneumonia. Although there can be no assurance, we expect to pursue potential additional funding opportunities as they arise and expect that we may qualify for similar programs in the future.

Nasdaq Suspension of Listing

On May 3, 2017, we received written notification from The Nasdaq Stock Market LLC (“Nasdaq”) that the Nasdaq Qualifications Hearings Panel (the “Panel”) had determined to delist our common stock from The Nasdaq Capital Market® and that trading in our common stock would be suspended on The Nasdaq Capital Market effective at the open of business on Friday, May 5, 2017. Our shares were being delisted due to our continuing failure to comply with the minimum stockholders’ equity requirement set forth in Nasdaq Listing Rule 5550(b)(1). We filed an application to have our shares quoted on the OTCQB and our shares began trading there effective Friday, May 5, 2017.

The transition to the OTCQB does not have an immediate effect on our business operations, including our plans to complete and release top-line results from the AEROSURF phase 2b clinical trial by mid-2017. We also will continue to be registered with the SEC under the Securities Exchange Act of 1934 (Exchange Act) and will continue to file periodic financial reports that will be available on the SEC’s website, www.SEC.gov. However, delisting our common stock from Nasdaq and transitioning to the OTCQB may adversely affect our ability to raise the additional capital that we will require, through public or private sales of equity securities, and may impair the ability of our stockholders to trade our securities, which could negatively impact the value and liquidity of our common stock. If our common stock falls within the definition of a “penny stock,” brokers trading in our common stock will be required to adhere to more stringent market rules, which could result in reduced trading activity in our common stock, which could result in reduced trading levels and limited or no analyst coverage. Moreover, reduced trading activity in our common stock could adversely affect liquidity and make it more difficult for stockholders to sell their common stock.

Cash Flows

As of March 31, 2017, we had cash and cash equivalents of $8.0 million compared to $5.6 million as of December 31, 2016. Cash outflows for the three months ended March 31, 2017 consisted of $7.4 million used for ongoing operating and investing activities offset by cash inflows for the three months ended March 31, 2017 of $9.8 million for financing activities.

Operating Activities

Net cash used in operating activities for the three months ended March 31, 2017 and 2016 was $7.3 million and $9.2 million, respectively. Net cash used in operating activities is a result of our net losses for the period, adjusted for non-cash items and changes in working capital.

Investing Activities

Net cash used in investing activities for the three months ended March 31, 2017 and 2016 represents capital expenditures of $20,000 and $137,000, respectively.

Financing Activities

Net cash provided by financing activities for three months ended March 31, 2017 was $9.8 million and represents net cash proceeds from both the February 2017 private placement of $8.8 and the use of the ATM Program of $1.0 million.

The following sections provide a more detailed discussion of our available financing facilities.

Financings Pursuant to Common Stock Offerings

Historically, we have funded, and expect that we will continue to fund, our business operations through various sources, including financings in the form of equity offerings. In May 2014, we filed a universal shelf registration statement on Form S-3 (No. 333-196420) (2014 Universal Shelf) with the SEC that was declared effective on June 13, 2014 for the proposed offering from time to time of up to $250 million of our securities, including common stock, preferred stock, varying forms of debt and warrant securities, or any combination of the foregoing, on terms and conditions that will be determined at the time of an offering. The 2014 Universal Shelf replaces an expired 2011 Universal Shelf. As of March 31, 2017, after reserves for outstanding unexercised warrants and amounts remaining available under our ATM Program, approximately $139.8 million remained available under the 2014 Universal Shelf. Given the limited offering restrictions that apply to smaller company transactions under the 2014 Universal Shelf (see, “– Liquidity and Capital Resources”), we expect that the 2014 Universal Shelf will expire in June 2017 with the remaining capacity largely unutilized.

Private Placement Offering

On February 15, 2017, we completed a private placement offering of 7,049 Series A Convertible Preferred Stock units for net proceeds of approximately $10.5 million, including $1.6 million of non-cash consideration in the form of a reduction in amounts due and accrued as of December 31, 2016 for current development services that otherwise would have become payable in cash in the first and second quarters of 2017. Each unit consists of (i) one share (Preferred Share) of Series A Convertible Preferred Stock; which may be converted at any time into 1,000 shares of common stock at a conversion price of $1.37 per share, and (ii) 1,000 Series A-1 Warrants to purchase one share of common stock at an exercise price equal to $1.37 per share which may be exercised beginning six months after the date of issuance and through the seventh anniversary of the date of issuance. The Preferred Shares and the Warrants may not be converted or exercised if, following such conversion or exercise, the holder would beneficially own more than 9.99% (or other lesser percent as designated by each holder) of our outstanding shares of common stock.

At-the-Market Program (ATM Program)

ATM Program

During the quarter ended March 31, 2017, we completed offerings of our common stock under our ATM Program of 805,916 shares, resulting in aggregate gross and net proceeds to us of approximately $1.0 million. During the three months ended March 31, 2016, there were no offerings under the ATM Program. As of March 31, 2017, approximately $21.3 million remained unutilized under the ATM Program.

Effective on May 5, 2017, since the suspension of our common stock from Nasdaq, we are no longer able to make use of our ATM Program (see, “Note 2 – Liquidity Risks and Management’s Plans”)

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures

Our management, including our President and Chief Executive Officer (principal executive officer) and our Senior Vice President and Chief Financial Officer (principal financial officer), does not expect that our disclosure controls or our internal control over financial reporting will prevent all error and all fraud. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer, to allow for timely decisions regarding required disclosures, and recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in internal control

There were no changes in our internal control over financial reporting identified in connection with the evaluation described above that occurred during the quarter ended March 31, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not aware of any pending legal actions that would, if determined adversely to us, have a material adverse effect on our business and operations.

We have from time to time been involved in disputes and proceedings arising in the ordinary course of business, including in connection with the conduct of our clinical trials. In addition, as a public company, we are also potentially susceptible to litigation, such as claims asserting violations of securities laws. Any such claims, with or without merit, if not resolved, could be time-consuming and result in costly litigation. There can be no assurance that an adverse result in any future proceeding would not have a potentially material adverse effect on our business, results of operations and financial condition.

ITEM 1A. RISK FACTORS

Investing in our securities involves risks. In addition to the other information in this Quarterly Report on Form 10-Q, stockholders and potential investors should carefully consider the risks and uncertainties discussed in the section "Item 1A. Risk Factors" in our 2016 Form 10-K, as supplemented by the risks and uncertainties discussed below and elsewhere in this Quarterly Report on 10-Q. The risks and uncertainties set forth below and discussed elsewhere in this Quarterly Report on Form 10-Q and described in our 2016 Form 10-K are not the only ones that may materialize. Additional risks and uncertainties not presently known to us or that we currently consider to be immaterial may also impair our business operations. If any of the risks and uncertainties set forth below or in our 2016 Form 10-K actually materialize, our business, financial condition and/or results of operations could be materially adversely affected, the trading price of our common stock could decline and a stockholder could lose all or part of his or her investment. In particular, the reader’s attention is drawn to the discussion in “Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Overview.” In addition, risks and uncertainties not presently known to us or that we currently consider immaterial may also impair our business operations.

At times, our shares of common stock, which since May 5, 2017 are quoted on the OTCQB, may be thinly traded, which may make it difficult to sell shares of our common stock or our stockholders may be unable to sell their shares at or near ask prices or even at all if they need to sell shares to raise money or otherwise desire to liquidate their shares.

Since May 5, 2017, when our common stock was suspended from Nasdaq, our common stock has been quoted on the OTCQB. Companies quoted on the OTCQB may experience periods of illiquidity when the trading volumes of their stocks decline. A number of factors could cause this circumstance and could affect the trading in our common stock. Since we are now a smaller reporting company that is not listed on an exchange, stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume may stop covering our common stock, and even if we are followed by such persons, they may abide by investment policies that avoid trading in unlisted securities or that exclude from their portfolios securities that trade at less than $5.00 per share (“penny stocks”). As a consequence, there is a risk that we may experience periods of several days or more when trading activity in shares of our common stock is minimal, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on share price. There can be no any assurance that a broader or more active public trading market for our common stock will be sustained, or that current trading levels will be sustained or not diminish.

Item 6. Exhibits

Exhibits are listed on the Index to Exhibits at the end of this Quarterly Report. The exhibits required by Item 601 of Regulation S-K, listed on such Index in response to this Item, are incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Windtree Therapeutics, Inc.
		(Registrant)

Date: May 15, 2017	By:	/s/ Craig Fraser
		Craig Fraser
		President and Chief Executive Officer


Date: May 15, 2017	By:	/s/ John Tattory
		John Tattory
		Senior Vice President and Chief Financial Officer

INDEX TO EXHIBITS

The following exhibits are included with this Quarterly Report on Form 10-Q.

Exhibit No.	Description	Method of Filing

31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act.	Filed herewith.

31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act.	Filed herewith.

32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Furnished herewith.

101.1	The following condensed consolidated financial statements from the Windtree Therapeutics, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in Extensive Business Reporting Language (“XBRL”): (i) Balance Sheets as of March 31, 2017 (unaudited) and December 31, 2016, (ii) Statements of Operations (unaudited) for the three and nine months ended March 31, 2017 and March 31, 2016 (iii) Statements of Cash Flows (unaudited) for the three months ended March 31, 2017 and March 31, 2016, and (v) Notes to Condensed consolidated financial statements.

101.INS	Instance Document.	Filed herewith.

101.SCH	XBRL Taxonomy Extension Schema Document.	Filed herewith.

101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.	Filed herewith.

101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.	Filed herewith.

101.LAB	XBRL Taxonomy Extension Label Linkbase Document.	Filed herewith.

101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.	Filed herewith.

EX-31.1 2 ex31-1.htm EXHIBIT 31.1 ex31-1.htm

Exhibit 31.1

CERTIFICATIONS

I, Craig Fraser, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Windtree Therapeutics, Inc. (the “Company);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

Date: May 15, 2017	By:	/s/ Craig Fraser
		Craig Fraser
		President and Chief Executive Officer

EX-31.2 3 ex31-2.htm EXHIBIT 31.2 ex31-2.htm

Exhibit 31.2

CERTIFICATIONS

I, John A. Tattory, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Windtree Therapeutics, Inc. (the “Company);

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

Date: May 15, 2017	By:	/s/ John A. Tattory
		John A. Tattory
		Senior Vice President and Chief Financial Officer

EX-32.1 4 ex32-1.htm EXHIBIT 32.1 ex32-1.htm

Exhibit 32.1

CERTIFICATIONS

Pursuant to 18 U.S.C. § 1350, each of the undersigned officers of Windtree Therapeutics, Inc. (the “Company”) hereby certifies that, to his knowledge, the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 15, 2017

/s/ Craig Fraser

Craig Fraser

President and Chief Executive Officer

/s/ John A. Tattory

John A. Tattory

Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to us and will be retained by us and furnished to the SEC or its staff upon request.

This certification is being furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. This certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="; text-indent: 0px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: top;"> <td style="width: 45pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> –</div></div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Stock Options and Stock-Based Employee Compensation</div></div> </td> </tr> </table> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">We recognize in our condensed consolidated financial statements all stock-based awards to employees and non-employee directors based on their fair value on the date of grant, calculated using the Black-Scholes option-pricing model. Compensation expense related to stock-based awards is recognized ratably over the vesting period, which for employees is typically <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> years.</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" margin: 0pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">A summary of activity under our long-term incentive plans is presented below:</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="margin: 0pt auto 0pt 36pt; text-indent: 0px; font-family: Times New Roman; font-size: 10pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: thin; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands, except for weighted-average data)</div><br /> <br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Stock Options</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Shares</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted-</div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Average</div><br /> <div style="display: inline; font-weight: bold;">Exercise</div><br /> <div style="display: inline; font-weight: bold;">Price</div></div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted-</div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Average</div><br /> <div style="display: inline; font-weight: bold;">Remaining</div><br /> <div style="display: inline; font-weight: bold;">Contractual</div><br /> <div style="display: inline; font-weight: bold;">Term (In Yrs)</div></div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 49%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Outstanding at January 1, 2017</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,142</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14.66</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 49%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Granted</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">822</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.23</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 49%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Forfeited or expired</div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">112.42</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Outstanding at March 31, 2017</div> </td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,963</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.96</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.7</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 49%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Vested and exercisable at March 31, 2017</div> </td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">486</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29.89</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.2</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 49%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Vested and expected to vest at March 31, 2017</div> </td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,798</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.07</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.6</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt 7.5pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula based on the following weighted average assumptions:</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended </div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2017</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Weighted average expected volatility</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79%</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79%</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Weighted average expected term (in years)</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.6</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.7</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Weighted average risk-free interest rate</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.22%</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.40%</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Expected dividends</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">The table below summarizes the total stock-based compensation expense included in the statements of operations for the periods presented:</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2017</div></div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Research and development</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">159</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">182</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Selling, general and administrative</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">141</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">421</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">300</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">603</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table> </div></div>

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin: 0pt auto 0pt 36pt; text-indent: 0px; font-family: Times New Roman; font-size: 10pt;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: thin; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands, except for weighted-average data)</div><br /> <br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Stock Options</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Shares</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted-</div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Average</div><br /> <div style="display: inline; font-weight: bold;">Exercise</div><br /> <div style="display: inline; font-weight: bold;">Price</div></div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Weighted-</div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Average</div><br /> <div style="display: inline; font-weight: bold;">Remaining</div><br /> <div style="display: inline; font-weight: bold;">Contractual</div><br /> <div style="display: inline; font-weight: bold;">Term (In Yrs)</div></div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 49%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Outstanding at January 1, 2017</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,142</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14.66</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 49%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Granted</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">822</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.23</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 49%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Forfeited or expired</div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">112.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Outstanding at March 31, 2017</div> </td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,963</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.96</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 49%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Vested and exercisable at March 31, 2017</div> </td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">486</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29.89</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.2</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 49%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 49%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Vested and expected to vest at March 31, 2017</div> </td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,798</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.07</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.6</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>

-1.37

-1.70

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Net Loss Per Common Share</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per common share is computed by giving effect to all potentially dilutive securities outstanding for the period.</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">As of <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the number of shares of common stock potentially issuable upon the conversion of preferred stock or the exercise of stock options and warrants was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24.3</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.2</div> million shares, respectively. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> all potentially dilutive securities were anti-dilutive and therefore have been excluded from the computation of diluted net loss per share.</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">In accordance with Accounting Standards Codification Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">260,</div> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Earnings per Share,</div> when calculating diluted net loss per common share, a gain associated with the decrease in the fair value of warrants classified as derivative liabilities results in an adjustment to the net loss; and the dilutive impact of the assumed exercise of these warrants results in an adjustment to the weighted average common shares outstanding. We utilize the treasury stock method to calculate the dilutive impact of the assumed exercise of warrants classified as derivative liabilities. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the effect of the adjustments for warrants classified as derivative liabilities was anti-dilutive. </div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">We do not have any components of other comprehensive income (loss).</div></div></div>

370000

658000

-223000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="; text-indent: 0px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: top;"> <td style="width: 45pt;"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div> –</div></div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Fair Value of Financial Instruments</div></div> </td> </tr> </table> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.</div> <div style=" margin: 0pt 7.5pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> levels of inputs, of which the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> are considered observable and the last unobservable, as follows:</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <table style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="width: 3.3%; vertical-align: middle;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> </td> <td style="width: 3.3%; vertical-align: top;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">●</div> </td> <td style="width: 93.3%; vertical-align: top;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– Quoted prices in active markets for identical assets and liabilities.</div></div> </td> </tr> <tr> <td style="width: 3.3%; vertical-align: middle;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> </td> <td style="width: 3.3%; vertical-align: top;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">●</div> </td> <td style="width: 93.3%; vertical-align: top;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– Inputs other than Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.</div></div> </td> </tr> <tr> <td style="width: 3.3%; vertical-align: middle;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> </td> <td style="width: 3.3%; vertical-align: top;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">●</div> </td> <td style="width: 93.3%; vertical-align: top;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">– Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.</div></div> </td> </tr> </table> <div style=" margin: 0pt 7.5pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Fair Value on a Recurring Basis</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">The tables below categorize assets and liabilities measured at fair value on a recurring basis for the periods presented:</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 9pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fair Value</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="10" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fair value measurement using</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2017</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Assets:</div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Cash and cash equivalents</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,022</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,022</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Certificate of deposit</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total Assets</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,247</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,247</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table> </div> <div style=" margin: 0pt;"> </div> <div> <table style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 9pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fair Value</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="10" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fair value measurement using</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31,</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Assets:</div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Cash and cash equivalents</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,588</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,588</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Certificate of deposit</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total Assets</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,813</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,813</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">The following table summarizes changes in the fair value of common stock warrant liability<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> measured on a recurring basis using Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> inputs for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> representing the write-off of the remaining liability upon expiration of the underlying warrants in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div> <table style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 81%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;"> </div></td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 81%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 81%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Balance at January 1, 2016</div></div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">223 </div></div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 81%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Change in fair value of common stock warrant liability</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(223</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 81%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Balance at March 31, 2016</div></div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">- </div></div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Fair Value of Long-Term Debt</div></div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">At <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the estimated fair value of the Deerfield Loan (<div style="display: inline; font-style: italic;">see,</div>  "– Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> – Deerfield Loan”) was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$21.4</div> million, compared to a carrying value for current and non-current portions of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25.0</div> million. The estimated fair value of the Deerfield Loan is based on discounting the future contractual cash flows to the present value at the valuation date. This analysis utilizes certain Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> unobservable inputs, including current cost of capital. Considerable judgment is required to interpret market data and to develop estimates of fair value. The estimates presented are not necessarily indicative of amounts we could realize in a current market exchange. The use of alternative market assumptions and estimation methodologies could have a material effect on these estimates of fair value. </div></div></div>

223000

1697000

2149000

-1252000

835000

-120000

138000

-270000

-544000

611000

622000

524000

544000

254000

259000

22000

3000

7000

37467000

38529000

11707000

9699000

24836000

13391000

25000000

12500000

21400000

25000000

12500000

25000000

12500000

25000000

9786000

-20000

-137000

-7332000

-9185000

-8724000

-13901000

-12328000

-13901000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;">Recently Adopted Accounting Standards</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">Presentation of Financial Statements </div>– <div style="display: inline; font-style: italic;">Going Concern</div> <div style="display: inline; font-style: italic;">(Subtopic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">205</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40):</div></div> <div style="display: inline; font-style: italic;">Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern</div>, which defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date that the financial statements are issued (or are available to be issued). ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> is effective for annual reporting periods ending after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> and for annual and interim periods thereafter. We adopted ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> Management has concluded that substantial doubt exists with respect to our ability to continue as a going concern through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the issuance of the accompanying financial statements. <div style="display: inline; font-style: italic;">See</div>,  "– Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> – Liquidity Risks and Management's Plans."</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">Compensation - Stock Compensation (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718):</div> Improvements to Employee Share-Based Payment Accounting</div>. This update addresses the income tax effects of stock-based payments and eliminates the windfall pool concept, as all of the tax effects related to stock-based payments will now be recorded at settlement (or expiration) through the income statement. The new guidance also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for stock-based payment awards. Forfeitures can be estimated or recognized when they occur. We adopted ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and </div>will continue to recognize stock compensation expense with estimated forfeitures. The adoption did not have a material impact on our unaudited condensed consolidated financial statements and is not expected to have a material impact on the annual <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> financial statements.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">Statement of Cash Flows (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230):</div> Restricted Cash</div>. The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. We adopted ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> on a retrospective basis. As a result, beginning-of-period cash, cash equivalents and restricted cash in the statement of cash flows increased by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.2</div></div> million for each of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;">Recent Accounting Pronouncements</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">Compensation </div>– <div style="display: inline; font-style: italic;">Stock Compensation (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718):</div> Scope of Modification Accounting</div>.  This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU is effective prospectively for the annual period ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> and interim periods within that annual period. Early adoption is permitted. We are currently evaluating the effect that ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> have on our consolidated financial statements and related disclosures.</div></div></div></div>

-608000

-182000

8335000

14017000

-8116000

-13942000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px;"> <tr style="vertical-align: top;"> <td style="width: 45pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">–</div></div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">The Company and Description of Business</div></div> </td> </tr> </table> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Windtree Therapeutics, Inc. (referred to as “we,” “us,” or the “Company”) is a biotechnology company focused on developing novel KL<div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> surfactant therapies for respiratory diseases and other potential applications. Surfactants are produced naturally in the lung and are essential for normal respiratory function and survival. Our proprietary technology platform includes a synthetic, peptide-containing surfactant (KL</div><div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> surfactant) that is structurally similar to endogenous pulmonary surfactant, and novel drug delivery technologies being developed to enable noninvasive administration of aerosolized KL</div><div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> surfactant. We believe that our proprietary technology platform <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> make it possible to develop a pipeline of surfactant products to address a variety of respiratory diseases for which there are few or no approved therapies.</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Our lead development program is AEROSURF<div style="display: inline; font-family: times new roman; font-size: 7pt;">®</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> (lucinactant for inhalation), an investigational combination drug/device product that combines our KL</div><div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">surfactant with our novel aerosol delivery system (ADS). We are developing AEROSURF to improve the management of respiratory distress syndrome (RDS) in premature infants. RDS is a serious respiratory condition caused by a deficiency of natural lung surfactant in lungs of premature infants, and the most prevalent respiratory disease in the neonatal intensive care unit (NICU). By enabling administration of aerosolized KL</div><div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> surfactant, AEROSURF <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> reduce or eliminate the need for invasive endotracheal intubation and mechanical ventilation, which currently are required to administer life-saving surfactant therapy, but which are associated with serious respiratory conditions and other complications. To avoid the risks of surfactant administration, many neonatologists initially treat premature infants with noninvasive respiratory support (such as nasal continuous positive airway pressure (nCPAP)), and then, if the infants do not do well, they are treated with delayed surfactant therapy using invasive procedures. We believe that AEROSURF, if approved, has the potential to address a serious unmet medical need by enabling earlier KL</div><div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> surfactant therapy for infants receiving nCPAP alone, reducing the number of premature infants who are subjected to invasive surfactant administration, and potentially providing transformative clinical and pharmacoeconomic benefits.</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">We are conducting <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">an AEROSURF phase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2b</div> clinical trial to evaluate aerosolized KL</div><div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> surfactant administered to premature infants <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32</div> week gestational age receiving nCPAP, in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> dose groups <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(25</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50</div> minutes) with up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> potential repeat doses, compared to infants receiving nCPAP alone. This trial is being conducted in approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50</div> clinical sites in the U.S., Canada, the European Union (EU) and Latin America. Enrollment is ongoing and we remain on track to release top-line results in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div></div></div></div>

131000

138000

433000

800000

200000

20000

137000

3604000

0.001

5000000

7049

392000

512000

1094000

200000

990000

8796000

1018000

1054000

6413000

10360000

225000

-627392000

-618668000

1000000

219000

75000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31,</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2017</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Current portion</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Non-current portion</div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,500</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,000</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total Deerfield Loan</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,000</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,000</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2017</div></div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Research and development</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">159</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">182</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Selling, general and administrative</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">141</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">421</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">300</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">603</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 9pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fair Value</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="10" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fair value measurement using</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2017</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Assets:</div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Cash and cash equivalents</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,022</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,022</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Certificate of deposit</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total Assets</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,247</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,247</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap"> </td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 9pt;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fair Value</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="10" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fair value measurement using</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31,</div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 44%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Assets:</div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Cash and cash equivalents</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,588</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,588</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 44%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Certificate of deposit</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">225</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 44%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> <div style=" margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total Assets</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,813</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,813</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 11%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended </div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2017</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Weighted average expected volatility</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79%</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79%</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Weighted average expected term (in years)</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.6</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Weighted average risk-free interest rate</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.22%</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.40%</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Expected dividends</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>

1922000

3657000

1200000

200000

1000000

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270000 544000 4098000 3967000 25700000 21300000 1495 2 250000000 P1Y 2600000 10500000 1000000 131000 815000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="; text-indent: 0px;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: top;"> <td style="width: 45pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> –</div></div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Liquidity Risks and Management<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">’s Plans</div></div></div> </td> </tr> </table> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> we had cash and cash equivalents of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8.0</div> million, current liabilities of $<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24.8</div> million (including <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$12.5</div> million of long-term debt, current portion) and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$12.5</div> million of long-term debt, non-current portion.   </div></div> <div style=" margin: 0pt 14.7pt 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> we completed a private placement offering for which we received net proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.5</div> million, including <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.6</div> million of non-cash consideration.<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">  In addition, from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> we completed registered offerings under our at-the-market equity sales program (ATM Program) with Stifel, Nicolaus & Company, Incorporated (Stifel) resulting in net proceeds to us of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.0</div> million.  Before any additional financings, including in connection with potential strategic transactions, we believe that we have sufficient cash resources available to support our development activities, business operations and debt service obligations through the planned completion of the AEROSURF</div><div style="display: inline; font-family: times new roman; font-size: 7pt;">®</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> phase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2b</div> clinical trial and announcement of results in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> </div></div> <div style=" margin: 0pt 14.7pt 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">We expect to continue to incur significant losses and require significant additional capital to further advance our AEROSURF clinical development program, if warranted by the results of our phase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2b</div> clinical trial, support our operations and meet our debt service obligations beyond mid-year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and we do not have sufficient existing cash and cash equivalents for at least the next year following the date that the financial statements are issued. These conditions raise substantial doubt about our ability to continue as a going concern within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date that the<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">se financial statements are issued. </div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">To potentially alleviate the conditions that raise substantial doubt about our ability to continue as a going concern, management plans to seek additional capital through the following: (i) all or a combination of strategic transactions, including potential alliances and collaborations focused on markets outside the U.S., as well as potential combinations (including by merger or acquisition) or other corporate transactions; and (ii) through public or private equity offerings. However, there can be no assurance that these alternatives will be available, or if available, that we will be able to raise sufficient capital through such transactions. If we are unable to raise the required capital, we will not have sufficient cash resources and liquidity to fund our business operations for at least the next year following the date that the financial statements are issued. Accordingly, management has concluded that substantial doubt exists with respect to our ability to continue as a going concern through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the issuance of these financial statements.</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business, and do not include any adjustments relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.</div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Our ability to secure the needed capital through equity financings and other similar transactions is subject to regulatory and other restrictions (discussed below) and we cannot be certain that we will be able to raise a sufficient amount when needed, if at all, on favorable terms or otherwise. In the event that we cannot raise sufficient capital, we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> be forced to consider <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">transactions on less-than-favorable terms, or limit or cease our development activities, or consider other means of creating value for our stockholders. If we are unable to raise the required capital, we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> be forced to curtail all of our activities and, ultimately, cease operations. Even if we are able to raise sufficient capital, such financings <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> only be available on unattractive terms, or result in significant dilution of stockholders’ interests and, in such event, the market price of our common stock <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> decline.</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">We believe that our ability to fund our activities in the near term will be highly dependent upon whether our <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">AEROSURF phase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2b</div> clinical trial is deemed a success and we achieve results that are sufficiently positive to support a strategic transaction and/or equity financing. Even if we are able to complete the phase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2b</div> trial as planned, if the results of our clinical trial are inconclusive, or present an unacceptable benefit/risk profile due to suboptimal efficacy and/or safety profile, we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> be unable to secure the additional capital that we will require to continue our development activities and operations, which could have a material adverse effect on our business. </div></div> <div style=" margin: 0pt 15pt 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Moreover, our ability to secure additional capital at a time when we would like or require <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> be affected by the following factors: (i)<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> following the suspension of our common stock from The Nasdaq Capital Market</div><div style="display: inline; font-family: times new roman; font-size: 7pt;">®</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> (Nasdaq) effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> we transitioned trading of our common stock to OTCQB</div><div style="display: inline; font-family: times new roman; font-size: 7pt;">®</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> Market (“OTCQB”), which is operated by OTC Market Groups Inc., under the symbol “WINT;” (ii) our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div> Universal Shelf on Form S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> will expire <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and, due to our suspension from Nasdaq, we will be unable to file a replacement shelf registration statement for use after the expiration date; (iii) since the market value of our common stock held by non-affiliated persons (public float) is less than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$75</div> million, Form S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> includes a “limited offering” rule that limits the size of primary securities offerings that we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> conduct in any <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div>-month period to no more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> of our public float calculated based on a closing price of our common stock within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60</div> days of a transaction. Since the suspension of our common stock from Nasdaq, we are no longer able to make use of our ATM Program, (iv)  our stockholders <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> not approve a proposal to be presented for approval at our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> Annual Meeting of Stockholders to increase the number of shares of common stock authorized under our Amended and Restated Certificate of Incorporation, as amended, from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60</div> million to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">120</div> million, which could impair our ability in the future to conduct equity financings or enter into certain strategic transactions; (v) our stockholders <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> not approve, to the extent required under Delaware law, strategic transactions (mergers and acquisitions) recommended by our Board, (vi) our capital structure, which currently consists of common stock, convertible preferred stock, pre-funded warrants and warrants to purchase common stock, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25</div> million of debt, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> make it difficult to conduct equity-based financings, and (vii) negative conditions in the broader financial and geopolitical markets. In light of the foregoing restrictions on our ability to conduct primary offerings on Form S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,</div> to be in a position to raise more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> the value of our public float, we will be required to seek other methods of completing primary offerings, including, for example, under a registration statement on Form S-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> the preparation and maintenance of which would be more time-consuming and costly, and private placements, potentially with registration rights or priced at a discount to the market value of our stock, or other transactions, any of which could result in substantial equity dilution of stockholders’ interests.</div></div> <div style=" margin: 0pt 15pt 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">In addition, we have from time to time collaborated with research organizations and universities to assess the potential utility of our KL<div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">surfactant in studies funded in part through non-dilutive grants issued by U.S. Government-sponsored drug development programs, including grants in support of initiatives related to our AEROSURF</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> clinical development program. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> we announced that the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health (NIH) had awarded to us a Phase II Small Business Innovation Research Grant (SBIR) valued at up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.6</div> million to support the AEROSURF phase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2b</div> clinical trial in premature infants <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32</div> week gestational age. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> we have received and expended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.0</div> million of this award. We also have received grants that support medical and biodefense-related initiatives under programs that encourage private sector development of medical countermeasures against chemical, biological, radiological and nuclear terrorism threat agents, and pandemic influenza, and provide a mechanism for federal acquisition of such countermeasures. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> we announced the results of a study funded by the NIH that KL</div><div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">surfactant could potentially be an effective medical countermeasure to mitigate acute and chronic/late-phase radiation-induced lung injury (pneumonopathy) due to exposure from a nuclear accident or act of terrorism. In addition, in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> we announced the results of a study funded by the NIH that KL</div><div style="display: inline; font-family: times new roman; font-size: 7pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">surfactant could be a potential medical intervention to reduce morbidity and mortality associated with both seasonal and pandemic influenza pneumonia. Although there can be no assurance, we expect to pursue potential additional funding opportunities as they arise and expect that we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> qualify for similar programs in the future.</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">If we fail in the future to make any required payment under <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">a secured loan (Deerfield Loan) with affiliates of Deerfield Management, L.P. (Deerfield) or if we fail to comply with any commitments contained in the loan documents, Deerfield would be able to declare a default under the loan agreement, which could result in the acceleration of the payment obligations under all or a portion of our indebtedness. Since we have pledged substantially all of our assets to secure our obligations under the Deerfield Loan, a debt default would enable the lenders to foreclose on our assets securing the debt and could significantly diminish the market value and marketability of our common stock.</div></div> <div style=" margin: 0pt 15pt 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">As of <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> we had outstanding <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.9</div> million pre-funded warrants issued in a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> public offering, of which the entire exercise price was prepaid upon issuance and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,049</div> convertible preferred stock units issued in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> private placement offering, of which each unit is convertible into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,000</div> shares. Upon exercise of the pre-funded warrants and the convertible preferred stock units, we would issue common shares to the holders and receive no additional proceeds. In addition, as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60</div> million shares of common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> million shares of preferred stock authorized under our Amended and Restated Certificate of Incorporation, as amended, and approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25.7</div> million shares of common stock and approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div> million shares of preferred stock available for issuance and not otherwise reserved.</div></div> <div style=" margin: 0pt 15pt 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">There can be no assurance that our phase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2b</div> clinical trial or other development program will be successful, that any products we develop will obtain necessary regulatory approval, that any approved product will be commercially viable, or that we will be able to secure strategic alliances or obtain additional capital when needed on acceptable terms, if at all. Even if we succeed in securing strategic alliances, raising additional capital and developing and subsequently commercializing product candidates, we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> never achieve sufficient sales revenue to achieve or maintain profitability.<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">  </div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Nasdaq </div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Suspension of Listing</div></div></div> <div style=" margin: 0pt 15pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> we received written notification from The Nasdaq Stock Market LLC (“Nasdaq”) that the Nasdaq Qualifications Hearings Panel (the “Panel”) had determined to delist our common stock from The Nasdaq Capital Market</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"> and that trading in our common stock would be suspended on The Nasdaq Capital Market effective at the open of business on Friday, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> Our shares were being delisted due to our continuing failure to comply with the minimum stockholders’ equity requirement set forth in Nasdaq Listing Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5550(b)(1).</div> We filed an application to have our shares quoted on the OTCQB and our shares began trading there effective Friday, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div></div></div> <div style=" margin: 0pt 15pt 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">The transition to the OTCQB does not <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">have an immediate effect on our business operations, including our plans to complete and release top-line results from the AEROSURF phase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2b</div> clinical trial by mid-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> We also will continue to be registered with the SEC under the Exchange Act and will continue to file periodic financial reports that will be available on the SEC’s website, www.SEC.gov. However, delisting our common stock from Nasdaq and transitioning to the OTCQB <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> adversely affect our ability to raise the additional capital that we will require, through public or private sales of equity securities, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may</div> impair the ability of our stockholders to trade our securities, which could negatively impact the value and liquidity of our common stock</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">. If our common stock falls within the definition of a “penny stock,” brokers trading in our common stock will be required to adhere to more stringent market rules, which could result in reduced trading activity in our common stock, which could result in reduced trading levels and limited or no analyst coverage. Moreover, reduced trading activity in our common stock could adversely affect liquidity and make it more difficult for stockholders to sell their common stock.</div></div></div> 1600000 24300000 9200000 5000000 956000 1226000 120000000 225000 225000 225000 225000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 10%;"> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended</div><br /> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">(in thousands)</div></div> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2017</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2016</div></div></div> </td> <td style="padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td colspan="1" style="width: 62%;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Amortization of prepaid interest expense</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">270</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">544</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Cash interest expense</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">254</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> </td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 1px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="1" style="width: 62%; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Total interest expense</div> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">524</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;">$</td> <td style="width: 16%; text-align: right; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 3px; border-bottom-style: double;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">544</div></td> <td nowrap="nowrap" style="width: 1%; padding-bottom: 3px; font-family: Times New Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Severance</div></div> <div style=" margin: 0pt 7.5pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> we terminated the Employment Agreement between ourselves and our then President and Chief Executive Officer (Former CEO). During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> we incurred a severance charge of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.2</div> million in selling, general and administrative expense under the terms of the Former CEO<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">’s employment agreement, including <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.2</div> million related to stock option expense for certain options that will continue to vest through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> Of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.0</div> million in severance not related to stock-based compensation, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.8</div> million was paid as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> The remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.2</div> million will be paid through the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> </div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;">Beneficial Conversion Feature</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The issuance of our Series A Convertible Preferred Stock (<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">see</div>, "– Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> – Stockholders' Equity") resulted in a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor (or in the money) at inception due to the conversion option having an effective conversion price that is less than the fair value of the underlying stock at the commitment date. We recognized the beneficial conversion feature by allocating the relative fair value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A Convertible Preferred Stock. As the Series A Convertible Preferred Stock is immediately convertible by the holders, the discount allocated to the beneficial conversion factor was immediately accreted and recognized as a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.6</div> million <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-time, non-cash deemed dividend to the preferred shareholders.</div></div></div></div> xbrli:shares xbrli:pure iso4217:USD iso4217:USD xbrli:shares 0000946486 2016-01-01 2016-03-31 0000946486 us-gaap:FairValueInputsLevel3Member us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember 2016-01-01 2016-03-31 0000946486 us-gaap:ResearchAndDevelopmentExpenseMember 2016-01-01 2016-03-31 0000946486 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2016-01-01 2016-03-31 0000946486 wint:DeerfieldLoanMember 2016-01-01 2016-03-31 0000946486 wint:DeerfieldLoanMember 2016-01-01 2016-12-31 0000946486 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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2017	May 11, 2017
Document Information [Line Items]
Entity Registrant Name	WINDTREE THERAPEUTICS INC /DE/
Entity Central Index Key	0000946486
Trading Symbol	wint
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		10,301,287
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false

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Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 8,022	$ 5,588
Prepaid interest, current portion	1,094	1,094
Prepaid expenses and other current assets	392	512
Total current assets	9,508	7,194
Property and equipment, net	1,018	1,054
Restricted cash	225	225
Prepaid interest, non-current portion	956	1,226
Total assets	11,707	9,699
Current Liabilities:
Accounts payable	2,312	1,813
Collaboration payable	4,098	3,967
Accrued expenses	5,926	7,611
Long-term debt, current portion	12,500
Total current liabilities	24,836	13,391
Long-term debt, non-current portion	12,500	25,000
Other liabilities	131	138
Total liabilities	37,467	38,529
Stockholders' Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 7,049 and 0 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively
Common stock, $0.001 par value; 60,000,000 authorized; 9,592,048 and 8,725,069 shares issued at March 31, 2017 and December 31, 2016, respectively; 9,590,556 and 8,723,577 shares outstanding at March 31, 2017 and December 31, 2016, respectively	10	9
Additional paid-in capital	604,676	592,883
Accumulated deficit	(627,392)	(618,668)
Treasury stock (at cost); 1,492 shares	(3,054)	(3,054)
Total stockholders' equity	(25,760)	(28,830)
Total liabilities & stockholders' equity	$ 11,707	$ 9,699

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Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	7,049	0
Preferred stock, shares outstanding (in shares)	7,049	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	9,592,048	8,725,069
Common stock, shares outstanding (in shares)	9,590,556	8,723,577
Treasury stock, shares (in shares)	1,492	1,492

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Grant revenue	$ 219	$ 75
Expenses:
Research and development	6,413	10,360
General and administrative	1,922	3,657
Total operating expenses	8,335	14,017
Operating loss	(8,116)	(13,942)
Change in fair value of common stock warrant liability		223
Other income / (expense):
Interest income	3	7
Interest expense	(611)	(622)
Other income		433
Other income / (expense), net	(608)	(182)
Net loss	(8,724)	(13,901)
Deemed dividend on preferred stock	(3,604)
Net loss attributable to common shareholders	$ (12,328)	$ (13,901)
Net loss per common share
Basic and diluted (in dollars per share)	$ (1.37)	$ (1.70)
Weighted average number of common shares outstanding
Basic and diluted (in shares)	8,998	8,191

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (8,724)	$ (13,901)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	56	76
Stock-based compensation and 401(k) plan employer match	370	658
Fair value adjustment of common stock warrants		(223)
Amortization of prepaid interest	270	544
Changes in:
Prepaid expenses and other current assets	120	(138)
Accounts payable	1,697	2,149
Collaboration payable	131	815
Accrued expenses	(1,252)	835
Net cash used in operating activities	(7,332)	(9,185)
Cash flows from investing activities:
Purchase of property and equipment	(20)	(137)
Net cash used in investing activities	(20)	(137)
Cash flows from financing activities:
Proceeds from private placement issuance of securities, net of expenses	8,796
Proceeds from ATM Program, net of expenses	990
Net cash provided by financing activities	9,786
Net increase/(decrease) in cash and cash equivalents	2,434	(9,322)
Cash, cash equivalents and restricted cash - beginning of year	5,813	38,947
Cash, cash equivalents and restricted cash - end of year	8,247	29,625
Supplementary disclosure of cash flows information:
Interest paid	$ 259	$ 22

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Note 1 - The Company and Description of Business

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note

–

The Company and Description of Business

Windtree Therapeutics, Inc. (referred to as “we,” “us,” or the “Company”) is a biotechnology company focused on developing novel KL

surfactant therapies for respiratory diseases and other potential applications. Surfactants are produced naturally in the lung and are essential for normal respiratory function and survival. Our proprietary technology platform includes a synthetic, peptide-containing surfactant (KL

surfactant) that is structurally similar to endogenous pulmonary surfactant, and novel drug delivery technologies being developed to enable noninvasive administration of aerosolized KL

surfactant. We believe that our proprietary technology platform

may

make it possible to develop a pipeline of surfactant products to address a variety of respiratory diseases for which there are few or no approved therapies.

Our lead development program is AEROSURF

(lucinactant for inhalation), an investigational combination drug/device product that combines our KL

surfactant with our novel aerosol delivery system (ADS). We are developing AEROSURF to improve the management of respiratory distress syndrome (RDS) in premature infants. RDS is a serious respiratory condition caused by a deficiency of natural lung surfactant in lungs of premature infants, and the most prevalent respiratory disease in the neonatal intensive care unit (NICU). By enabling administration of aerosolized KL

surfactant, AEROSURF

may

reduce or eliminate the need for invasive endotracheal intubation and mechanical ventilation, which currently are required to administer life-saving surfactant therapy, but which are associated with serious respiratory conditions and other complications. To avoid the risks of surfactant administration, many neonatologists initially treat premature infants with noninvasive respiratory support (such as nasal continuous positive airway pressure (nCPAP)), and then, if the infants do not do well, they are treated with delayed surfactant therapy using invasive procedures. We believe that AEROSURF, if approved, has the potential to address a serious unmet medical need by enabling earlier KL

surfactant therapy for infants receiving nCPAP alone, reducing the number of premature infants who are subjected to invasive surfactant administration, and potentially providing transformative clinical and pharmacoeconomic benefits.

We are conducting

an AEROSURF phase

clinical trial to evaluate aerosolized KL

surfactant administered to premature infants

week gestational age receiving nCPAP, in

two

dose groups

(25

and

minutes) with up to

two

potential repeat doses, compared to infants receiving nCPAP alone. This trial is being conducted in approximately

clinical sites in the U.S., Canada, the European Union (EU) and Latin America. Enrollment is ongoing and we remain on track to release top-line results in

July

2017.

XML 17 R7.htm IDEA: XBRL DOCUMENT

Note 2 - Liquidity Risks and Management's Plans

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Liquidity Disclosures [Text Block]

Note

–

Liquidity Risks and Management

’s Plans

As of

March

31,

2017,

we had cash and cash equivalents of

$8.0

million, current liabilities of $

24.8

million (including

$12.5

million of long-term debt, current portion) and

$12.5

million of long-term debt, non-current portion.

February

2017,

we completed a private placement offering for which we received net proceeds of approximately

$10.5

million, including

$1.6

million of non-cash consideration.

In addition, from

January

2017

through

March

31,

2017,

we completed registered offerings under our at-the-market equity sales program (ATM Program) with Stifel, Nicolaus & Company, Incorporated (Stifel) resulting in net proceeds to us of

$1.0

million. Before any additional financings, including in connection with potential strategic transactions, we believe that we have sufficient cash resources available to support our development activities, business operations and debt service obligations through the planned completion of the AEROSURF

phase

clinical trial and announcement of results in

July

2017.

We expect to continue to incur significant losses and require significant additional capital to further advance our AEROSURF clinical development program, if warranted by the results of our phase

clinical trial, support our operations and meet our debt service obligations beyond mid-year

2017,

and we do not have sufficient existing cash and cash equivalents for at least the next year following the date that the financial statements are issued. These conditions raise substantial doubt about our ability to continue as a going concern within

one

year after the date that the

se financial statements are issued.

one

year after the issuance of these financial statements.

may

be forced to consider

transactions on less-than-favorable terms, or limit or cease our development activities, or consider other means of creating value for our stockholders. If we are unable to raise the required capital, we

may

be forced to curtail all of our activities and, ultimately, cease operations. Even if we are able to raise sufficient capital, such financings

may

only be available on unattractive terms, or result in significant dilution of stockholders’ interests and, in such event, the market price of our common stock

may

decline.

We believe that our ability to fund our activities in the near term will be highly dependent upon whether our

AEROSURF phase

clinical trial is deemed a success and we achieve results that are sufficiently positive to support a strategic transaction and/or equity financing. Even if we are able to complete the phase

trial as planned, if the results of our clinical trial are inconclusive, or present an unacceptable benefit/risk profile due to suboptimal efficacy and/or safety profile, we

may

be unable to secure the additional capital that we will require to continue our development activities and operations, which could have a material adverse effect on our business.

Moreover, our ability to secure additional capital at a time when we would like or require

may

be affected by the following factors: (i)

following the suspension of our common stock from The Nasdaq Capital Market

(Nasdaq) effective

May

2017,

we transitioned trading of our common stock to OTCQB

Market (“OTCQB”), which is operated by OTC Market Groups Inc., under the symbol “WINT;” (ii) our

2014

Universal Shelf on Form S-

will expire

June

12,

2017

and, due to our suspension from Nasdaq, we will be unable to file a replacement shelf registration statement for use after the expiration date; (iii) since the market value of our common stock held by non-affiliated persons (public float) is less than

$75

million, Form S-

includes a “limited offering” rule that limits the size of primary securities offerings that we

may

conduct in any

-month period to no more than

one

third

of our public float calculated based on a closing price of our common stock within

days of a transaction. Since the suspension of our common stock from Nasdaq, we are no longer able to make use of our ATM Program, (iv) our stockholders

may

not approve a proposal to be presented for approval at our

2017

Annual Meeting of Stockholders to increase the number of shares of common stock authorized under our Amended and Restated Certificate of Incorporation, as amended, from

million to

120

million, which could impair our ability in the future to conduct equity financings or enter into certain strategic transactions; (v) our stockholders

may

not approve, to the extent required under Delaware law, strategic transactions (mergers and acquisitions) recommended by our Board, (vi) our capital structure, which currently consists of common stock, convertible preferred stock, pre-funded warrants and warrants to purchase common stock, and

$25

million of debt,

may

make it difficult to conduct equity-based financings, and (vii) negative conditions in the broader financial and geopolitical markets. In light of the foregoing restrictions on our ability to conduct primary offerings on Form S-

to be in a position to raise more than

one

third

the value of our public float, we will be required to seek other methods of completing primary offerings, including, for example, under a registration statement on Form S-

the preparation and maintenance of which would be more time-consuming and costly, and private placements, potentially with registration rights or priced at a discount to the market value of our stock, or other transactions, any of which could result in substantial equity dilution of stockholders’ interests.

In addition, we have from time to time collaborated with research organizations and universities to assess the potential utility of our KL

surfactant in studies funded in part through non-dilutive grants issued by U.S. Government-sponsored drug development programs, including grants in support of initiatives related to our AEROSURF

clinical development program. In

August

2016,

we announced that the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health (NIH) had awarded to us a Phase II Small Business Innovation Research Grant (SBIR) valued at up to

$2.6

million to support the AEROSURF phase

clinical trial in premature infants

week gestational age. As of

March

31,

2017,

we have received and expended

$1.0

million of this award. We also have received grants that support medical and biodefense-related initiatives under programs that encourage private sector development of medical countermeasures against chemical, biological, radiological and nuclear terrorism threat agents, and pandemic influenza, and provide a mechanism for federal acquisition of such countermeasures. In

June

2016,

we announced the results of a study funded by the NIH that KL

surfactant could potentially be an effective medical countermeasure to mitigate acute and chronic/late-phase radiation-induced lung injury (pneumonopathy) due to exposure from a nuclear accident or act of terrorism. In addition, in

February

2017

we announced the results of a study funded by the NIH that KL

surfactant could be a potential medical intervention to reduce morbidity and mortality associated with both seasonal and pandemic influenza pneumonia. Although there can be no assurance, we expect to pursue potential additional funding opportunities as they arise and expect that we

may

qualify for similar programs in the future.

If we fail in the future to make any required payment under

a secured loan (Deerfield Loan) with affiliates of Deerfield Management, L.P. (Deerfield) or if we fail to comply with any commitments contained in the loan documents, Deerfield would be able to declare a default under the loan agreement, which could result in the acceleration of the payment obligations under all or a portion of our indebtedness. Since we have pledged substantially all of our assets to secure our obligations under the Deerfield Loan, a debt default would enable the lenders to foreclose on our assets securing the debt and could significantly diminish the market value and marketability of our common stock.

As of

March

31,

2017,

we had outstanding

2.9

million pre-funded warrants issued in a

July

2015

public offering, of which the entire exercise price was prepaid upon issuance and

7,049

convertible preferred stock units issued in the

February

2017

private placement offering, of which each unit is convertible into

1,000

shares. Upon exercise of the pre-funded warrants and the convertible preferred stock units, we would issue common shares to the holders and receive no additional proceeds. In addition, as of

March

31,

2017,

there were

million shares of common stock and

million shares of preferred stock authorized under our Amended and Restated Certificate of Incorporation, as amended, and approximately

25.7

million shares of common stock and approximately

million shares of preferred stock available for issuance and not otherwise reserved.

There can be no assurance that our phase

clinical trial or other development program will be successful, that any products we develop will obtain necessary regulatory approval, that any approved product will be commercially viable, or that we will be able to secure strategic alliances or obtain additional capital when needed on acceptable terms, if at all. Even if we succeed in securing strategic alliances, raising additional capital and developing and subsequently commercializing product candidates, we

may

never achieve sufficient sales revenue to achieve or maintain profitability.

Nasdaq

Suspension of Listing

May

2017,

we received written notification from The Nasdaq Stock Market LLC (“Nasdaq”) that the Nasdaq Qualifications Hearings Panel (the “Panel”) had determined to delist our common stock from The Nasdaq Capital Market

and that trading in our common stock would be suspended on The Nasdaq Capital Market effective at the open of business on Friday,

May

2017.

Our shares were being delisted due to our continuing failure to comply with the minimum stockholders’ equity requirement set forth in Nasdaq Listing Rule

5550(b)(1).

We filed an application to have our shares quoted on the OTCQB and our shares began trading there effective Friday,

May

2017.

The transition to the OTCQB does not

have an immediate effect on our business operations, including our plans to complete and release top-line results from the AEROSURF phase

clinical trial by mid-

2017.

We also will continue to be registered with the SEC under the Exchange Act and will continue to file periodic financial reports that will be available on the SEC’s website, www.SEC.gov. However, delisting our common stock from Nasdaq and transitioning to the OTCQB

may

adversely affect our ability to raise the additional capital that we will require, through public or private sales of equity securities, and

may

impair the ability of our stockholders to trade our securities, which could negatively impact the value and liquidity of our common stock

. If our common stock falls within the definition of a “penny stock,” brokers trading in our common stock will be required to adhere to more stringent market rules, which could result in reduced trading activity in our common stock, which could result in reduced trading levels and limited or no analyst coverage. Moreover, reduced trading activity in our common stock could adversely affect liquidity and make it more difficult for stockholders to sell their common stock.

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Note 3 - Basis of Presentation

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Basis of Accounting [Text Block]

Note

–

Basis of Presentation

-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of normally recurring accruals) considered for fair presentation have been included. Operating results for the

three

months ended

March

31,

2017

are not necessarily indicative of the results that

may

be expected for the year ending

December

31,

2017.

There have been no changes to our critical accounting policies since

December

31,

2016.

For a discussion of our accounting policies,

see

, "– Note

– Accounting Policies and Recent Accounting Pronouncements,” in the Notes to Condensed Consolidated Financial Statements in our

2016

Form

-K. Readers are encouraged to review those disclosures in conjunction with this Quarterly Report on Form

-Q.

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Note 4 - Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

–

Stockholders

’ Equity

February

2017

Private Placement

February

15,

2017,

we completed a private placement offering of

7,049

Series A Convertible Preferred Stock units

at a price per Unit of

$1,495,

for an aggregate purchase price of approximately

$10.5

million, including

$1.6

million of non-cash consideration representing a reduction in amounts due and accrued as of

December

31,

2016

for current development services that otherwise would have become payable in cash in the

first

and

second

quarters of

2017.

Each Unit consists of: (i)

one

share of Series A Convertible Preferred Stock, par value

$0.001

per share ("Preferred Shares"); and (ii)

1,000

Series A-

Warrants ("Warrants") to purchase

one

share of common stock at an exercise price equal to

$1.37

per share. Each Preferred Share

may

be converted at the holder's option at any time into

1,000

shares of common stock at a conversion price of

$1.37

per share. The Warrants

may

be exercised beginning

six

months after the date of issuance and through the

seventh

anniversary of the date of issuance. The Preferred Shares and the Warrants

may

not be converted or exercised to the extent that the holder would, following such exercise or conversion, beneficially own more than

9.99%

(or other lesser percent as designated by each holder) of our outstanding shares of common stock. In addition to the offering, the securities purchase agreement also provides that,

until

February

13,

2018,

the investors are entitled to participate in subsequent bona fide capital raising transactions that we

may

conduct.

At-the-Market (ATM) Program

During the

three

months ended

March

31,

2017,

we completed offerings of our common stock under our ATM Program of

805,916

shares resulting in an aggregate purchase price of approximately

$1,034,000

($990,000

net). As of

March

31,

2017,

approximately

$21.3

million remained unutilized under the ATM Program. During the

three

months ended

March

31,

2016,

there were no offerings under our ATM Program.

Effective on

May

2017,

since the suspension of our common stock from Nasdaq, we are no longer able to make use of our ATM Program (

see

, " –Note

– Liquidity Risks and Management’s Plans”)

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Note 5 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Significant Accounting Policies [Text Block]

Note

–

Summary of Significant Accounting Policies

Use of Estimates

Severance

Effective

February

2016,

we terminated the Employment Agreement between ourselves and our then President and Chief Executive Officer (Former CEO). During the

first

quarter of

2016,

we incurred a severance charge of

$1.2

million in selling, general and administrative expense under the terms of the Former CEO

’s employment agreement, including

$0.2

million related to stock option expense for certain options that will continue to vest through

August

2017.

Of the

$1.0

million in severance not related to stock-based compensation,

$0.8

million was paid as of

March

31,

2017.

The remaining

$0.2

million will be paid through the

third

quarter of

2017.

Research and Development Expense

We account for research and development expense by the following categories: (a) product development and manufacturing, (b)

medical and regulatory operations, and (c) direct preclinical and clinical programs. Research and development expense includes personnel, facilities, manufacturing and quality operations, pharmaceutical and device development, research, clinical, regulatory, other preclinical and clinical activities and medical affairs. Research and development costs are charged to operations as incurred.

Net Loss Per Common Share

As of

March

31,

2017

and

2016,

the number of shares of common stock potentially issuable upon the conversion of preferred stock or the exercise of stock options and warrants was

24.3

million and

9.2

million shares, respectively. For the

three

months ended

March

31,

2017

and

2016,

all potentially dilutive securities were anti-dilutive and therefore have been excluded from the computation of diluted net loss per share.

In accordance with Accounting Standards Codification Topic

260,

Earnings per Share,

when calculating diluted net loss per common share, a gain associated with the decrease in the fair value of warrants classified as derivative liabilities results in an adjustment to the net loss; and the dilutive impact of the assumed exercise of these warrants results in an adjustment to the weighted average common shares outstanding. We utilize the treasury stock method to calculate the dilutive impact of the assumed exercise of warrants classified as derivative liabilities. For the

three

months ended

March

31,

2017

and

2016,

the effect of the adjustments for warrants classified as derivative liabilities was anti-dilutive.

We do not have any components of other comprehensive income (loss).

Beneficial Conversion Feature

The issuance of our Series A Convertible Preferred Stock (

see

, "– Note

– Stockholders' Equity") resulted in a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor (or in the money) at inception due to the conversion option having an effective conversion price that is less than the fair value of the underlying stock at the commitment date. We recognized the beneficial conversion feature by allocating the relative fair value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A Convertible Preferred Stock. As the Series A Convertible Preferred Stock is immediately convertible by the holders, the discount allocated to the beneficial conversion factor was immediately accreted and recognized as a

$3.6

million

one

-time, non-cash deemed dividend to the preferred shareholders.

Recently Adopted Accounting Standards

August

2014,

the FASB issued ASU

2014

15,

Presentation of Financial Statements

–

Going Concern

(Subtopic

205

40):

Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern

, which defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within

one

year after the date that the financial statements are issued (or are available to be issued). ASU

2014

is effective for annual reporting periods ending after

December

15,

2016,

and for annual and interim periods thereafter. We adopted ASU

2014

effective

December

31,

2016.

Management has concluded that substantial doubt exists with respect to our ability to continue as a going concern through

one

year after the issuance of the accompanying financial statements.

See

, "– Note

– Liquidity Risks and Management's Plans."

March

2016,

the FASB issued ASU

2016

09,

Compensation - Stock Compensation (Topic

718):

Improvements to Employee Share-Based Payment Accounting

. This update addresses the income tax effects of stock-based payments and eliminates the windfall pool concept, as all of the tax effects related to stock-based payments will now be recorded at settlement (or expiration) through the income statement. The new guidance also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for stock-based payment awards. Forfeitures can be estimated or recognized when they occur. We adopted ASU

2016

during the

three

months ended

March

31,

2017

and

will continue to recognize stock compensation expense with estimated forfeitures. The adoption did not have a material impact on our unaudited condensed consolidated financial statements and is not expected to have a material impact on the annual

2017

financial statements.

November

2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

230):

Restricted Cash

. The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. We adopted ASU

2016

March

31,

2017

on a retrospective basis. As a result, beginning-of-period cash, cash equivalents and restricted cash in the statement of cash flows increased by

$0.2

million for each of the

three

month periods ended

March

31,

2017

and

2016.

Recent Accounting Pronouncements

May

2017,

the FASB issued ASU

2017

09,

Compensation

–

Stock Compensation (Topic

718):

Scope of Modification Accounting

. This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU is effective prospectively for the annual period ending

December

31,

2018

and interim periods within that annual period. Early adoption is permitted. We are currently evaluating the effect that ASU

2017

may

have on our consolidated financial statements and related disclosures.

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Note 6 - Fair Value of Financial Measurements

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

–

Fair Value of Financial Instruments

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on

three

levels of inputs, of which the

first

two

are considered observable and the last unobservable, as follows:

	●	Level 1 – Quoted prices in active markets for identical assets and liabilities.
	●	Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	●	Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair Value on a Recurring Basis

The tables below categorize assets and liabilities measured at fair value on a recurring basis for the periods presented:

	Fair Value		Fair value measurement using
	March 31,
(in thousands)	2017		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	8,022	$	8,022	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	8,247	$	8,247	$	-	$	-

	Fair Value		Fair value measurement using
	December 31,
(in thousands)	2016		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	5,588	$	5,588	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	5,813	$	5,813	$	-	$	-

The following table summarizes changes in the fair value of common stock warrant liability

measured on a recurring basis using Level

inputs for the

three

months ended

March

31,

2016

representing the write-off of the remaining liability upon expiration of the underlying warrants in

February

2016.

(in thousands)

Balance at January 1, 2016	$	223
Change in fair value of common stock warrant liability		(223	)
Balance at March 31, 2016	$	-

Fair Value of Long-Term Debt

March

31,

2017,

the estimated fair value of the Deerfield Loan (

see,

"– Note

– Deerfield Loan”) was

$21.4

million, compared to a carrying value for current and non-current portions of

$25.0

million. The estimated fair value of the Deerfield Loan is based on discounting the future contractual cash flows to the present value at the valuation date. This analysis utilizes certain Level

unobservable inputs, including current cost of capital. Considerable judgment is required to interpret market data and to develop estimates of fair value. The estimates presented are not necessarily indicative of amounts we could realize in a current market exchange. The use of alternative market assumptions and estimation methodologies could have a material effect on these estimates of fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

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Note 7 - Long-term Debt

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Long-term Debt [Text Block]

Note

–

Long-term Debt

Long-term debt consists solely of amounts due under the Deerfield Loan for the periods presented:

	March 31,		December 31,
(in thousands)	2017		2016

Current portion	$	12,500	$	-
Non-current portion		12,500		25,000
Total Deerfield Loan	$	25,000	$	25,000

The principal amount of the loan is payable in

two

equal annual installments of

$12.5

million, payable in each of

February

2018

and

2019.

Under the Deerfield Loan agreement, the

February

2018

installment is subject to a potential

one

-year deferral until

February

2019

if we have achieved a market capitalization of

$250

million as set forth in the Deerfield Loan agreement.

See

, "– Note

– Long-term Debt,” in the Notes to Consolidated Financial Statements in our

2016

Form

-K.

The following amounts comprise the Deerfield Loan interest expense for the periods presented:

	Three Months Ended March 31,
(in thousands)	2017		2016

Amortization of prepaid interest expense	$	270	$	544
Cash interest expense		254		-
Total interest expense	$	524	$	544

Amortization of prepaid interest expense represents non-cash amortization of

million of units

purchased by Deerfield in our

July

2015

public offering and accepted in satisfaction of

million of future interest payments calculated at an interest rate of

8.75%

under the Deerfield Loan. Cash interest expense represents interest at an annual rate of

8.25%

on the outstanding principal amount in

2017,

paid in cash on a quarterly basis.

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Note 8 - Stock Options and Stock-based Employee Compensation

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note

–

Stock Options and Stock-Based Employee Compensation

three

years.

A summary of activity under our long-term incentive plans is presented below:

(in thousands, except for weighted-average data) Stock Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In Yrs)

Outstanding at January 1, 2017		1,142		$	14.66
Granted		822			1.23
Forfeited or expired		(1	)		112.42
Outstanding at March 31, 2017		1,963		$	8.96		8.7

Vested and exercisable at March 31, 2017		486		$	29.89		6.2

Vested and expected to vest at March 31, 2017		1,798		$	9.07		8.6

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula based on the following weighted average assumptions:

	Three Months Ended March 31,
	2017		2016

Weighted average expected volatility		79%		79%
Weighted average expected term (in years)		6.6		5.7
Weighted average risk-free interest rate		2.22%		1.40%
Expected dividends		-		-

The table below summarizes the total stock-based compensation expense included in the statements of operations for the periods presented:

	Three Months Ended March 31,
(in thousands)	2017		2016

Research and development	$	159	$	182
Selling, general and administrative		141		421
Total	$	300	$	603

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Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2017
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the U.S., requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Severance Cost [Policy Text Block]	Severance Effective February 1, 2016, we terminated the Employment Agreement between ourselves and our then President and Chief Executive Officer (Former CEO). During the first quarter of 2016, we incurred a severance charge of $1.2 million in selling, general and administrative expense under the terms of the Former CEO ’s employment agreement, including $0.2 million related to stock option expense for certain options that will continue to vest through August 1, 2017. Of the $1.0 million in severance not related to stock-based compensation, $0.8 million was paid as of March 31, 2017. The remaining $0.2 million will be paid through the third quarter of 2017.
Research and Development Expense, Policy [Policy Text Block]	Research and Development Expense We account for research and development expense by the following categories: (a) product development and manufacturing, (b) medical and regulatory operations, and (c) direct preclinical and clinical programs. Research and development expense includes personnel, facilities, manufacturing and quality operations, pharmaceutical and device development, research, clinical, regulatory, other preclinical and clinical activities and medical affairs. Research and development costs are charged to operations as incurred.
Earnings Per Share, Policy [Policy Text Block]	Net Loss Per Common Share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per common share is computed by giving effect to all potentially dilutive securities outstanding for the period. As of March 31, 2017 and 2016, the number of shares of common stock potentially issuable upon the conversion of preferred stock or the exercise of stock options and warrants was 24.3 million and 9.2 million shares, respectively. For the three months ended March 31, 2017 and 2016, all potentially dilutive securities were anti-dilutive and therefore have been excluded from the computation of diluted net loss per share. In accordance with Accounting Standards Codification Topic 260, Earnings per Share, when calculating diluted net loss per common share, a gain associated with the decrease in the fair value of warrants classified as derivative liabilities results in an adjustment to the net loss; and the dilutive impact of the assumed exercise of these warrants results in an adjustment to the weighted average common shares outstanding. We utilize the treasury stock method to calculate the dilutive impact of the assumed exercise of warrants classified as derivative liabilities. For the three months ended March 31, 2017 and 2016, the effect of the adjustments for warrants classified as derivative liabilities was anti-dilutive. We do not have any components of other comprehensive income (loss).
Stockholders' Equity Note, Convertible Preferred Stock, Beneficial Conversion Feature, Policy [Policy Text Block]	Beneficial Conversion Feature The issuance of our Series A Convertible Preferred Stock ( see , "– Note 4 – Stockholders' Equity") resulted in a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor (or in the money) at inception due to the conversion option having an effective conversion price that is less than the fair value of the underlying stock at the commitment date. We recognized the beneficial conversion feature by allocating the relative fair value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A Convertible Preferred Stock. As the Series A Convertible Preferred Stock is immediately convertible by the holders, the discount allocated to the beneficial conversion factor was immediately accreted and recognized as a $3.6 million one -time, non-cash deemed dividend to the preferred shareholders.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Standards In August 2014, the FASB issued ASU 2014 - 15, Presentation of Financial Statements – Going Concern (Subtopic 205 - 40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern , which defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or are available to be issued). ASU 2014 - 15 is effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. We adopted ASU 2014 - 15 effective December 31, 2016. Management has concluded that substantial doubt exists with respect to our ability to continue as a going concern through one year after the issuance of the accompanying financial statements. See , "– Note 2 – Liquidity Risks and Management's Plans." In March 2016, the FASB issued ASU 2016 - 09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This update addresses the income tax effects of stock-based payments and eliminates the windfall pool concept, as all of the tax effects related to stock-based payments will now be recorded at settlement (or expiration) through the income statement. The new guidance also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for stock-based payment awards. Forfeitures can be estimated or recognized when they occur. We adopted ASU 2016 - 09 during the three months ended March 31, 2017 and will continue to recognize stock compensation expense with estimated forfeitures. The adoption did not have a material impact on our unaudited condensed consolidated financial statements and is not expected to have a material impact on the annual 2017 financial statements. In November 2016, the FASB issued ASU 2016 - 18, Statement of Cash Flows (Topic 230): Restricted Cash . The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. We adopted ASU 2016 - 18 on March 31, 2017 on a retrospective basis. As a result, beginning-of-period cash, cash equivalents and restricted cash in the statement of cash flows increased by $0.2 million for each of the three month periods ended March 31, 2017 and 2016. Recent Accounting Pronouncements In May 2017, the FASB issued ASU 2017 - 09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU is effective prospectively for the annual period ending December 31, 2018 and interim periods within that annual period. Early adoption is permitted. We are currently evaluating the effect that ASU 2017 - 09 may have on our consolidated financial statements and related disclosures.

XML 25 R15.htm IDEA: XBRL DOCUMENT

Note 6 - Fair Value of Financial Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Fair Value		Fair value measurement using
	March 31,
(in thousands)	2017		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	8,022	$	8,022	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	8,247	$	8,247	$	-	$	-

	Fair Value		Fair value measurement using
	December 31,
(in thousands)	2016		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	5,588	$	5,588	$	-	$	-
Certificate of deposit		225		225		-		-
Total Assets	$	5,813	$	5,813	$	-	$	-

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

(in thousands)

Balance at January 1, 2016	$	223
Change in fair value of common stock warrant liability		(223	)
Balance at March 31, 2016	$	-

XML 26 R16.htm IDEA: XBRL DOCUMENT

Note 7 - Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2017

Notes Tables

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

	March 31,		December 31,
(in thousands)	2017		2016

Current portion	$	12,500	$	-
Non-current portion		12,500		25,000
Total Deerfield Loan	$	25,000	$	25,000

Schedule of Debt Instrument Interest Expense [Table Text Block]

	Three Months Ended March 31,
(in thousands)	2017		2016

Amortization of prepaid interest expense	$	270	$	544
Cash interest expense		254		-
Total interest expense	$	524	$	544

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

XML 27 R17.htm IDEA: XBRL DOCUMENT

Note 8 - Stock Options and Stock-based Employee Compensation (Tables)

3 Months Ended

Mar. 31, 2017

Notes Tables

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

(in thousands, except for weighted-average data) Stock Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In Yrs)

Outstanding at January 1, 2017		1,142		$	14.66
Granted		822			1.23
Forfeited or expired		(1	)		112.42
Outstanding at March 31, 2017		1,963		$	8.96		8.7

Vested and exercisable at March 31, 2017		486		$	29.89		6.2

Vested and expected to vest at March 31, 2017		1,798		$	9.07		8.6

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

	Three Months Ended March 31,
	2017		2016

Weighted average expected volatility		79%		79%
Weighted average expected term (in years)		6.6		5.7
Weighted average risk-free interest rate		2.22%		1.40%
Expected dividends		-		-

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three Months Ended March 31,
(in thousands)	2017		2016

Research and development	$	159	$	182
Selling, general and administrative		141		421
Total	$	300	$	603

XML 28 R18.htm IDEA: XBRL DOCUMENT

Note 2 - Liquidity Risks and Management's Plans (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Feb. 15, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Cash and Cash Equivalents, at Carrying Value		$ 8,022		$ 5,588
Accounts Payable and Accrued Liabilities, Current		24,800
Long-term Debt, Current Maturities		12,500
Long-term Debt, Excluding Current Maturities		$ 12,500		$ 25,000
Common Stock, Shares Authorized		60,000,000		60,000,000
Proposal, Common Stock, Shares Authorized		120,000,000
Revenue from Grants		$ 219	$ 75
Preferred Stock, Shares Authorized		5,000,000		5,000,000
Common Stock Capital Shares Available for Issuance		25,700,000
Preferred Stock Capital Shares Available for Issuance		5,000,000
Phase II Small Business Innovation Research Grant from the NHLBI [Member]
Grant Award		$ 2,600
Revenue from Grants		1,000
Private Placement [Member]
Convertible Preferred Stock, Shares Issued upon Conversion	1,000
Private Placement [Member] \| Series A Units [Member]
Gross Proceeds From Issuance Of Units	$ 10,500
Non-cash Consideration Received	$ 1,600
Stock Issued During Period, Shares, New Issues	7,049
Registered Public Offerings [Member]
Gross Proceeds From Issuance Of Units		$ 1,000
July 2015 Public Offering [Member] \| Prefunded Warrants [Member]
Class of Warrant or Right, Outstanding		2,900,000

XML 29 R19.htm IDEA: XBRL DOCUMENT

Note 4 - Stockholders' Equity (Details Textual) - USD ($)		3 Months Ended
	Feb. 15, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001		$ 0.001
Proceeds from Issuance of Common Stock		$ 990,000
Private Placement [Member]
Convertible Preferred Stock Units, Price Per Unit	$ 1,495
Private Placement [Member] \| Series A Units [Member]
Stock Issued During Period, Shares, New Issues	7,049
Gross Proceeds From Issuance Of Units	$ 10,500,000
Non-cash Consideration Received	$ 1,600,000
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1
Private Placement [Member] \| Series A Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.37
Stifel ATM Program [Member]
Stock Issued During Period, Shares, New Issues		805,916
Stock Issued During Period, Value, New Issues		$ 1,034,000
Proceeds from Issuance of Common Stock		990,000
Common Stock, Remaining Shares Available under Program, Value		$ 21,300,000

XML 30 R20.htm IDEA: XBRL DOCUMENT

Note 5 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands, shares in Millions			3 Months Ended
	Mar. 31, 2017	Feb. 01, 2016	Sep. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Number of Shares of Common Stock Potentially Issuable upon the Exercise of Stock Options and Warrants				24.3	9.2
Preferred Stock Dividends, Income Statement Impact				$ 3,604
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect				2,434	$ (9,322)
Accounting Standards Update 2016-18 [Member]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect				200
Reclassification of Cash and Cash Equivalents to Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Member] \| Quarter Ended March 31, 2016 [Member]
Prior Period Reclassification Adjustment				$ 200
Former CEO's Employment Agreement [Member]
Payments for Restructuring	$ 800
Former CEO's Employment Agreement [Member] \| Scenario, Forecast [Member]
Payments for Restructuring			$ 200
Former CEO's Employment Agreement [Member] \| Stock Option Expense [Member]
Severance Costs		$ 200
Former CEO's Employment Agreement [Member] \| Not Related to Stock-based Compensation [Member]
Severance Costs		1,000
Selling, General and Administrative Expenses [Member] \| Former CEO's Employment Agreement [Member]
Severance Costs		$ 1,200

XML 31 R21.htm IDEA: XBRL DOCUMENT

Note 6 - Fair Value of Financial Measurements (Details Textual) - Deerfield Loan [Member] $ in Millions	Mar. 31, 2017 USD ($)
Estimate of Fair Value Measurement [Member]
Long-term Debt, Fair Value	$ 21.4
Reported Value Measurement [Member]
Long-term Debt, Fair Value	$ 25.0

XML 32 R22.htm IDEA: XBRL DOCUMENT

Note 6 - Fair Value of Financial Measurements - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 8,022	$ 5,588
Total Assets	8,247	5,813
Certificates of Deposit [Member]
Assets:
Certificate of deposit	225	225
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and cash equivalents	8,022	5,588
Total Assets	8,247	5,813
Fair Value, Inputs, Level 1 [Member] \| Certificates of Deposit [Member]
Assets:
Certificate of deposit	225	225
Fair Value, Inputs, Level 2 [Member]
Assets:
Cash and cash equivalents
Total Assets
Fair Value, Inputs, Level 2 [Member] \| Certificates of Deposit [Member]
Assets:
Certificate of deposit
Fair Value, Inputs, Level 3 [Member]
Assets:
Cash and cash equivalents
Total Assets
Fair Value, Inputs, Level 3 [Member] \| Certificates of Deposit [Member]
Assets:
Certificate of deposit

XML 33 R23.htm IDEA: XBRL DOCUMENT

Note 6 - Fair Value of Financial Measurements - Level 3 Rollforward (Details) - Fair Value, Inputs, Level 3 [Member] - Derivative Financial Instruments, Liabilities [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Balance	$ 223
Change in fair value of common stock warrant liability	(223)
Balance

XML 34 R24.htm IDEA: XBRL DOCUMENT

Note 7 - Long-term Debt (Details Textual) - Deerfield Loan [Member] - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument Repayment of Principal Portion Number of Installments	2
Long-term Debt, Maturities, Repayments of Principal in Year Two	$ 12.5
Deferred Period for Loan Payment	1 year
Debt Instrument, Threshold for Potential One-year Deferral, Market Capitalization	$ 250.0
Debt Instrument, Periodic Payment, Principal		$ 5.0
Debt Instrument, Periodic Payment, Interest		$ 5.0
Debt Instrument, Interest Rate, Stated Percentage	8.75%
Debt Instrument, Interest Rate During Period	8.25%
Long-term Debt, Maturities, Repayments of Principal in Year Three	$ 12.5

XML 35 R25.htm IDEA: XBRL DOCUMENT

Note 7 - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Long-term debt, current portion	$ 12,500
Long-term debt, non-current portion	12,500	25,000
Deerfield Loan [Member]
Long-term debt, current portion	12,500
Long-term debt, non-current portion	12,500	25,000
Total Deerfield Loan	$ 25,000	$ 25,000

XML 36 R26.htm IDEA: XBRL DOCUMENT

Note 7 - Long-term Debt - Long-term Debt Interest Expense (Details) - Deerfield Loan [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Amortization of prepaid interest expense	$ 270	$ 544
Cash interest expense	254
Total interest expense	$ 524	$ 544

XML 37 R27.htm IDEA: XBRL DOCUMENT

Note 8 - Stock Options and Stock-based Employee Compensation (Details Textual)	3 Months Ended
	Mar. 31, 2017
2011 Long-term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	3 years

XML 38 R28.htm IDEA: XBRL DOCUMENT

Note 8 - Stock Options and Stock-based Employee Compensation - Summary of Stock Option Activity (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2017 $ / shares shares
Shares Outstanding, Beginning Balance (in shares) \| shares	1,142
Weighted Average Exercise Price, Outstanding, at Beginning Period (in dollars per share) \| $ / shares	$ 14.66
Shares Granted (in shares) \| shares	822
Weighted Average Exercise Price, Granted (in dollars per share) \| $ / shares	$ 1.23
Shares Forfeited or Expired (in shares) \| shares	(1)
Weighted Average Exercise Price, Forfeited or Expired (in dollars per share) \| $ / shares	$ 112.42
Shares Outstanding, Ending Balance (in shares) \| shares	1,963
Weighted Average Exercise Price, Outstanding, at Ending Period (in dollars per share) \| $ / shares	$ 8.96
Weighted Average Remaining Contractual Life, Outstanding (Year)	8 years 255 days
Shares Vested and Exercisable (in shares) \| shares	486
Weighted Average Exercise Price, Vested and Exercisable (in dollars per share) \| $ / shares	$ 29.89
Weighted Average Remaining Contractual Life, Vested and Exercisable (Year)	6 years 73 days
Vested and expected to vest (in shares) \| shares	1,798
Weighted Average Exercise Price, Vested and Expected to Vest (in dollars per share) \| $ / shares	$ 9.07
Weighted Average Remaining Contractual Life, Vested and Expected to Vest (Year)	8 years 219 days

XML 39 R29.htm IDEA: XBRL DOCUMENT

Note 8 - Stock Options and Stock-based Employee Compensation - Stock Options Valuation Assumptions (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Weighted average expected volatility	79.00%	79.00%
Weighted average expected term (in years) (Year)	6 years 219 days	5 years 255 days
Weighted average risk-free interest rate	2.22%	1.40%
Expected dividends

XML 40 R30.htm IDEA: XBRL DOCUMENT

Note 8 - Stock Options and Stock-based Employee Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock-based compensation expense	$ 300	$ 603
Research and Development Expense [Member]
Stock-based compensation expense	159	182
Selling, General and Administrative Expenses [Member]
Stock-based compensation expense	$ 141	$ 421

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