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Nature of Operations [Text Block]

Organization and Operations

The Company

Proteon Therapeutics, Inc. (the “Company”) is a late-stage biopharmaceutical company focused on the development of novel,

first

-in-class pharmaceuticals to address the medical needs of patients with kidney and vascular disease. The Company was formed in

June

2001

and incorporated on

March

24,

2006.

During

2013,

the Company formed a wholly-owned subsidiary, organized in the United Kingdom, Proteon Therapeutics Limited. As of

December

31,

2016,

there has been no activity in this subsidiary other than its formation. During

2014,

the Company formed a wholly-owned Massachusetts Securities Corporation subsidiary as a holding company for its available-for-sale investments, Proteon Securities Corp. On

April

20,

2016,

the Company formed a wholly-owned holding company in Delaware, Proteon International Holdings, Inc. (“Proteon International”). On

May

2016,

Proteon International formed a wholly-owned subsidiary company in Bermuda, Proteon Bermuda Limited (“Proteon Bermuda”). On

June

2016,

Proteon Bermuda formed a wholly-owned subsidiary company in Ireland, Proteon Ireland Limited. Since inception, the Company has been primarily involved in research and development activities.

The Company devotes substantially all of its efforts to product research and development, initial market development and raising capital. The Company has not generated any product revenue related to its primary business purpose to date and is subject to a number of risks similar to those of other development stage companies, including dependence on key individuals, competition from other companies, the need for development of commercially viable products and the need to obtain adequate additional financing to fund the development of its product candidates. The Company is also subject to a number of additional risks similar to other companies in the biotechnology industry, including regulatory approval of products, uncertainty of market acceptance of products, competition from substitute products and larger companies, compliance with government regulations, protection of proprietary technology, dependence on

third

parties and product liability.

As of

December

31,

2016,

the Company had cash, cash equivalents and available-for-sale investments of

$41.3

million. The Company believes that its existing cash, cash equivalents and available-for-sale investments will be sufficient to fund operations and capital expenditures into the

third

quarter of

2018

based on budgeted rates. The Company had an accumulated deficit of

$159.8

million as of

December

31,

2016

and has not yet earned revenues other than the

$2.9

million recognized in the

third

quarter of

2014

related to the expiration of rights and obligations in connection with the

2009

agreement.

Note 2 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Initial Public Offering

October

27,

2014,

the Company completed the IPO of its Common Stock, pursuant to a registration statement on Form S-

as amended. An aggregate of

7,026,500

shares of Common Stock registered under the registration statement were sold at a price of

$10.00

per share (including

916,500

shares of Common Stock sold by the Company pursuant to the full exercise of an overallotment option granted to the Company’s underwriters in connection with the IPO). Net proceeds of the IPO were

$62.5

million, after deducting underwriting discounts, commissions and offering-related expenses payable by the Company of approximately

$7.8

million. In this transaction, all shares of the Company’s redeemable convertible preferred stock (the “Preferred Stock”) were automatically converted into an aggregate of

8,651,805

shares of its Common Stock and the Series D redeemable convertible preferred stock (the “Series D Preferred Stock”) investors’ rights and obligations were either exercised or extinguished.

At-The-Market Equity Offering Program

November

12,

2015,

the Company filed a shelf registration statement on Form S-

(the “Registration Statement”), and entered into a Sales Agreement with Cowen and Company, LLC (the “Sales Agreement”) to establish an at-the-market (“ATM”) equity offering program pursuant to which they are able, with the Company’s authorization, to offer and sell up to

$40

million of the Company’s Common Stock at prevailing market prices from time to time. The Registration Statement became effective on

January

12,

2016.

As of

December

31,

2016,

the Company had not commenced sales under this program.

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”).

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates its estimates, which include, but are not limited to, estimates related to stock-based compensation expense, clinical trial accruals and reported amounts of expenses during the reported period. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances. Actual results

may

differ from those estimates or assumptions.

Segment Information

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company and the Company's chief operating decision maker view the Company's operations and manage its business in

one

operating segment, which is the business of developing and commercializing vonapanitase for the treatment of renal and vascular disease. Currently, the Company operates in only

one

geographic segment.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, available-for-sale investments, forward foreign currency contracts (see Note

6),

accounts payable, and accrued liabilities. The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. FASB ASC Topic

820,

Fair Value Measurement and Disclosures

, established a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the financial instrument based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the financial instrument and are developed based on the best information available under the circumstances. The fair value hierarchy applies only to the valuation inputs used in determining the reported or disclosed fair value of the financial instruments and is not a measure of the investment credit quality. Fair value measurements are classified and disclosed in

one

of the following

three

categories:

Level

1—Valuations

based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level

2—Valuations

based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level

3—Valuations

that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Financial instruments measured at fair value on a recurring basis include cash equivalents, short-term investments and forward foreign currency contracts (see Note

6).

There have been no changes to the valuation methods utilized by the Company during the years ended

December

31,

2016

and

2015.

The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of financial instruments between levels during the years ended

December

31,

2016

and

2015.

Derivative Financial Instruments

The Company enters into forward foreign currency contracts to mitigate its exposure to fluctuations in the exchange rates between the Swiss Franc and the U.S. dollar (see Note

6).

The Company records these derivative financial instruments on the consolidated balance sheets at fair value. Although these derivative contracts are intended to economically hedge foreign exchange risk, the Company has not elected to apply hedge accounting. As such, changes in the fair value of these instruments are recorded directly in earnings as a component of other income (expense), as they occur. The Company executes its derivative instruments with financial institutions that the Company judges to be credit-worthy, defined as institutions that hold an investment-grade credit rating.

Recent Accounting Pronouncements

May

2014,

the FASB issued ASU

2014

09,

“Revenue from Contracts with Customers”

(“ASU

2014

09”),

a new standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The new revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard is effective beginning

January

2018,

with no early adoption permitted. Earlier application is permitted only as of annual reporting periods beginning after

December

15,

2016,

including interim reporting periods within that reporting period. The amendments

may

be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the impact of the new guidance on its condensed consolidated financial statements, if any.

August

2014,

the FASB issued ASU

2014

15,

“Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”

(“ASU

2014

15”).

ASU

2014

is authoritative guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements, including requiring management to perform interim and annual assessments of an entity’s ability to continue as a going concern within

one

year of the date of issuance of the entity’s financial statements and providing certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern. The Company adopted this standard as of

December

31,

2016

and it did not have a material impact. Refer to Note

for further details regarding the Company’s liquidity.

November

2015,

the FASB issued ASU

2015

17,

Income Taxes (Topic

740):

Balance Sheet Classification of Deferred Taxes

(“ASU

2015

17”),

which simplifies the presentation of deferred income taxes. ASU

2015

requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. ASU

2015

is effective for financial statements issued for fiscal years beginning after

December

15,

2016

(and interim periods within those fiscal years) with early adoption permitted. ASU

2015

may

be either applied prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company elected to early adopt ASU

2015

prospectively in the

fourth

quarter of

2015.

As a result, the Company has presented all deferred tax assets and liabilities as noncurrent on the consolidated balance sheet as of

December

31,

2016

and

2015.

There was no impact on the Company’s results of operations as a result of the adoption of ASU

2015

17.

February

2016,

the FASB issued ASU

2016

02,

Leases (Topic

842):

Amendments to FASB Codification

(“ASU

2016

02”),

which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. At the lease commencement date, the lessee must recognize a lease liability and right-of-use asset, which is initially measured at the present value of future lease payments. ASU

2016

is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after

December

15,

2018,

with early adoption permitted. ASU

2016

must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

March

2016,

the FASB issued ASU

2016

09,

Compensation - Stock Compensation (Topic

718):

Improvements to Employee Share-Based Payment Accounting

(“ASU

2016

09”),

which simplifies various aspects of the accounting for share-based payments, including accounting for income taxes, earnings per share, and forfeitures. ASU

2016

is effective for annual periods beginning after

December

15,

2016,

and interim periods within those annual periods with early adoption permitted. The Company will adopt ASU

2016

for the quarter ended

March

31,

2017.

The Company is still currently evaluating the effects this ASU

may

have on its consolidated financial statements.

August

2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230):

Classification of Certain Cash Receipts and Cash Payments

(“ASU

2016

15”),

which provides clarification regarding how certain cash receipts and cash payment are presented and classified in the statement of cash flows. This update addresses

eight

specific cash flow issues with the objective of reducing the existing diversity in practice. This update is effective for annual and interim periods beginning after

December

15,

2017,

which will require the Company to adopt these provisions in the

first

quarter of fiscal

2019

using a retrospective approach. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of

days or less from the purchase date to be cash equivalents. Cash and cash equivalents are held in depository and money market accounts and are reported at fair value.

Short-Term Investments

The Company classifies its investments as available-for-sale and records such assets at estimated fair value in the consolidated balance sheets, with unrealized gains and losses, if any, reported as a component of other comprehensive income (loss) within the consolidated statements of operations and comprehensive loss and as a separate component of stockholders' equity (deficit). The Company invests its excess cash balances primarily in government debt securities and money market funds with strong credit ratings and maturities of less than

one

year. There have been no realized gains and losses for the years ended

December

31,

2016,

2015

and

2014.

At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is other-than-temporary. The Company considers factors including: the significance of the decline in value compared to the cost basis, underlying factors contributing to a decline in the prices of securities in a single asset class, the length of time the market value of the security has been less than its cost basis, the security's relative performance versus its peers, sector or asset class, expected market volatility and the market and economy in general. When the Company determines that a decline in the fair value below its cost basis is other-than-temporary, the Company recognizes an impairment loss in the year in which the other-than-temporary decline occurred. There have been no other-than-temporary declines in value of short-term investments for the years ended

December

31,

2016,

2015

and

2014,

as it is more likely than not the Company will hold the securities until maturity or a recovery of the cost basis.

Concentrations of Credit Risk and Off-Balance Sheet Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents and short-term investments. The Company's cash and cash equivalents are held in accounts with financial institutions that management believes are creditworthy. The Company's investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. These amounts at times

may

exceed federally insured limits. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. The Company has no financial instruments with off-balance sheet risk of loss.

Property and Equipment

Property and equipment is stated at cost, less accumulated depreciation. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed to operations as incurred. Upon disposal, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in the results of operations. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets, which are as follows:

Asset	Estimated Useful Life
Computer equipment and software (years)		3
Furniture, fixtures and other (years)		5
Laboratory equipment (years)		7

Revenue

In general, the Company recognizes revenue when all of the following criteria are met: persuasive evidence of arrangement exists; delivery has occurred or services have been rendered; the Company's price to the customer is fixed or determinable and collectability is reasonably assured. During

2014,

the Company recognized

$2.9

million of revenue related to the expiration of residual rights to license the Company’s technology.

Research and Development Costs

Research and development costs are charged to expense as incurred in performing research and development activities. The costs include employee compensation costs, facilities and overhead, clinical study and related clinical manufacturing costs, regulatory and other related costs. Nonrefundable advanced payments for goods or services to be received in the future for use in research and development activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are performed.

Stock-Based Compensation Expense

The Company accounts for its stock-based compensation awards to employees and directors in accordance with FASB ASC Topic

718,

Compensation-Stock Compensation

(“ASC

718”).

ASC

718

requires all stock-based payments to employees, including grants of employee stock options and restricted stock, to be recognized in the consolidated statements of operations and comprehensive loss based on their grant date fair values. Compensation expense related to awards to employees is recognized on a straight-line basis based on the grant date fair value over the associated service period of the award, which is generally the vesting term. Share-based payments issued to non-employees are recorded at their fair values and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC

718

and FASB ASC Topic

505,

Equity

and are expensed using an accelerated attribution model.

The Company estimates the fair value of its stock options using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including (a) the expected stock price volatility, (b) the expected term of the award, (c) the risk-free interest rate, (d) expected dividends and (e) the estimated fair value of its Common Stock on the measurement date. Due to the lack of company specific historical and implied volatility data of its Common Stock, the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. When selecting these public companies on which it has based its expected stock price volatility, the Company selected companies with comparable characteristics to it, including enterprise value, risk profiles, position within the industry and with historical share price information sufficient to meet the expected term of the stock based awards. The Company computes historical volatility data using the daily closing prices for the selected companies' shares during the equivalent period of the calculated expected term of the stock-based awards. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Due to the lack of Company specific historical option activity, the Company has estimated the expected term of its employee stock options using the “simplified” method, whereby, the expected term equals the arithmetic average of the vesting term and the original contractual term of the option. The expected term for non-employee awards is the remaining contractual term of the option. The risk-free interest rates are based on the U.S. Treasury securities with a maturity date commensurate with the expected term of the associated award. The Company has never paid and does not expect to pay dividends in the foreseeable future. Refer to Note

“

Use of Estimates

,” for a discussion of the Company's estimated fair value of its Common Stock.

The Company is also required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from its estimates. The Company uses historical data to estimate forfeitures and records stock-based compensation expense only for those awards that are expected to vest. To the extent that actual forfeitures differ from the Company's estimates, the differences are recorded as a cumulative adjustment in the period the estimates were revised. Stock-based compensation expense recognized in the financial statements is based on awards that are ultimately expected to vest.

Income Taxes

Income taxes are recorded in accordance with FASB ASC Topic

740,

“Income Taxes” (“ASC

740”),

which provides for deferred taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax reporting basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Valuation allowances are provided if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has evaluated available evidence and concluded that the Company

may

not realize the benefit of its deferred tax assets; therefore, a valuation allowance has been established for the full amount of the deferred tax assets.

The Company accounts for uncertain tax positions in accordance with the provisions of ASC

740.

When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of

December

31,

2016

and

2015,

the Company did not have any significant uncertain tax positions. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. See Note

for further details.

Net Income (Loss) per Share Attributable to Common Stockholders

Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common equivalent shares outstanding for the period, including any dilutive effect from outstanding stock options and warrants using the treasury stock method.

The Company follows the

two

-class method when computing net income (loss) per share in periods when issued shares that meet the definition of participating securities are outstanding. The

two

-class method determines net income (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The

two

-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Accordingly, in periods in which the Company reports a net loss attributable to common stockholders when participating securities are outstanding, losses are not allocated to the participating securities. For purposes of calculating diluted net income per share attributable to common shareholders, preferred stock, stock options, warrants and convertible debt are considered common stock equivalents.

Comprehensive Loss

Comprehensive loss consists of net income or loss and changes in equity during a period from transactions and other events and circumstances generated from non-owner sources. The Company's net loss equals comprehensive loss, net of any changes in the unrealized gains and losses of the Company's short-term investments, held as available-for-sale, for all periods presented.

Subsequent Events

The Company considers events or transactions that occur after the balance sheet date but prior to the date the consolidated financial statements are available to be issued for potential recognition or disclosure in the financial statements. The Company has completed an evaluation of all subsequent events after the consolidated balance sheet date of

December

31,

2016

to ensure that this filing includes appropriate disclosure of events both recognized in the consolidated financial statements as of

December

31,

2016

and events which occurred subsequently but were not recognized in the consolidated financial statements.

Note 3 - Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Text Block]

Fair Value Measurements

Below is a summary of assets and liabilities measured at fair value (in thousands):

	As of December 31, 2016
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Cash equivalents	$	28,876	$	-	$	-	$	28,876
Government securities		4,925		-		-		4,925
Total	$	33,801	$	-	$	-	$	33,801

Liabilities
Foreign currency forward contracts	$	-	$	-	$	-	$	-
Total	$	-	$	-	$	-	$	-

	As of December 31, 2015
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Cash equivalents	$	39,233	$	-	$	-	$	39,233
Government securities		25,232		-		-		25,232
Total	$	64,465	$	-	$	-	$	64,465

Liabilities
Foreign currency forward contracts	$	-	$	537	$	-	$	537
Total	$	-	$	537	$	-	$	537

As of

December

31,

2016

and

2015,

the Company’s cash equivalents consist principally of money market funds and government debt securities with original maturities of

days or less. Government securities consist principally of government debt securities and money market funds which are classified as available-for-sale. Forward foreign currency contracts consist of contracts with credit-worthy financial institutions to buy Swiss Francs with U.S. dollars in the future at agreed upon exchange rates.

Forward foreign currency contracts are stated at fair value and consist of Level

financial instruments in the fair value hierarchy. The Company determines the fair value of its forward foreign currency contracts based on pricing from a service provider. The service provider values the instruments based on market prices from a variety of industry-standard independent data providers. Such market prices are based on inputs other than quoted prices included within Level

that are observable for the asset, either directly or indirectly (Level

inputs). Cash equivalents and government securities are stated at fair value and consist of Level

financial instruments in the fair value hierarchy

The Company determined the fair value of its government debt security holdings based on pricing from a service provider. The service provider values the securities based on market prices from a variety of industry-standard independent data providers. These market prices are quoted prices in active markets for identical assets (Level

inputs).

Available-for-sale securities at

December

31,

2016

and

2015

consist of the following (in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2016
Government securities
(Due within 1 year)	$	4,924	$	1	$	-		$	4,925
	$	4,924	$	1	$	-		$	4,925

December 31, 2015
Government securities
(Due within 1 year)	$	25,243	$	1	$	(12	)	$	25,232
	$	25,243	$	1	$	(12	)	$	25,232

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.

Note 4 - Property and Equipment, Net

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment, net

Property and equipment, net consists of the following (in thousands):

	As of December 31,
	2016			2015

Computer equipment and software	$	141		$	167
Furniture, fixtures, and other		318			244
Laboratory equipment		478			254
		937			665
Accumulated depreciation		(565	)		(441	)
Property and equipment, net	$	372		$	224

Depreciation expense for the years ended

December

31,

2016,

2015

and

2014

was

$123,000,

$57,000,

and

$30,000,

respectively.

Note 5 - Accrued Expenses

12 Months Ended

Dec. 31, 2016

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	As of December 31,
	2016		2015

Payroll and employee-related costs	$	1,139	$	1,058
Contracted service costs		2,891		1,040
Professional fees and other		493		478
Total	$	4,523	$	2,576

Note 6 - Derivative Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Financial Instruments

Beginning in

May

2015,

the Company entered into a series of forward foreign currency contracts to mitigate its exposure to fluctuations in the U.S. dollar value of forecasted transactions denominated in Swiss Franc. The Company elected not to apply hedge accounting to these instruments. As a result, during the years ended

December

31,

2016

and

2015,

the Company experienced unrealized gains and (losses) within other income (expense), net, in the consolidated statements of operations from the mark-to-market of outstanding forward foreign currency contracts. As of

December

31,

2016,

all forward foreign currency contracts had been settled and are no longer outstanding.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet (in thousands):

		Balance Sheet line item		Gross amounts of recognized liabilities		Gross amount offset in consolidated balance sheet		Net Amount

December 31, 2016	Forward foreign currency contracts		Other current liabilities	$	-	$	-	$	-
December 31, 2015	Forward foreign currency contracts		Other current liabilities		537		-		537

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
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+ Details

Note 7 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Significant Contracts and Agreements

February

2002,

the Company entered into an agreement to license certain intellectual property with Johns Hopkins University. The agreement calls for payments to be made by the Company upon the commencement of product sales, in the form of a royalty of

2.5%

on net sales of the product. As of

December

31,

2016

the Company has not commenced product sales and therefore has recognized no royalties on product sales.

July

2015,

the Company entered into a manufacturing services agreement with Lonza Ltd for the processing, development and manufacture of the active pharmaceutical ingredient (“API”) in its lead product candidate, vonapanitase. Under the agreement, the Company will execute purchase orders authorizing Lonza to manufacture the batches and will pay for the services and batches in accordance with terms and assumptions in the agreement and to be set forth in a project plan. As of

December

31,

2016,

the Company has executed

one

purchase order of

$1.9

million for the manufacturing of

one

batch which commenced in

June

2016

and finished in the

fourth

quarter of

2016.

The Company has made payments of

1.0

million Swiss Francs and accrued

0.9

million Swiss Francs for the manufacturing services rendered under the agreement as of

December

31,

2016.

Additionally, in connection with this transaction, the Company issued and paid for a purchase order of

0.2

million Swiss Francs, related to Lonza’s acquisition of raw materials used within manufacturing of this batch. Lastly, the Company has issued a purchase order for

7.6

million Swiss Francs, approximately

$7.5

million at current exchange rates, for the manufacturing of

three

batches to commence in

July2017

and

one

batch to commence in late

2018.

No services have been rendered under this purchase order as of

December

31,

2016.

Operating Leases

The Company has various non-cancellable operating leases for facilities and office equipment that expire at various dates through

2018.

August

2014,

the Company entered into an Amendment (the “Lease Amendment”) to the existing Lease Agreement dated

July

13,

2009

(the “Lease Agreement”), with Boston Properties Limited Partnership (“Lessor”) pursuant to which the Company has agreed to extend the lease for approximately

5,000

square feet of property to be used for office space (the “Leased Property”) located at

200

West St., Waltham, Massachusetts. The term of the Lease Amendment commences on

January

2015

(the “Commencement Date”) and expires in

June

2018,

approximately

three

years and

six

months from the Commencement Date. The Company has the option to extend the term for an additional

one

-year period upon the Company's written notice to the Lessor at least

nine

months in advance of the extension. Rental expense for each of the years ended

December

31,

2016,

2015

and

2014

was

$0.2

million.

Future minimum payments required under operating leases as of

December

31,

2016

are summarized as follows (in thousands):

Year Ending December 31:	Amount

2017	$	168
2018		84
Total minimum lease payments	$	252

In addition to the base rent, the Company is also responsible for its share of operating expenses and real estate taxes, in accordance with the terms of the lease agreement. As of

December

31,

2016,

the Company has provided a security deposit in the amount of

$14,000

to the lessor.

Restricted cash related to facilities leases

December

31,

2016

and

2015,

the Company had

$14,000

in an outstanding letter of credit to be used as collateral for leased premises. At

December

31,

2016

and

2015,

the Company pledged an aggregate of

$14,000

to the bank as collateral for the letter of credit, which is included in long-term assets.

Note 8 - Common Stock

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note Disclosure [Text Block]

Common Stock

General

December

31,

2016,

the Company has

100,000,000

shares of Common Stock authorized for issuance,

$0.001

par value per share, of which

16,603,559

shares were issued and outstanding.

Reserved for Future Issuance

December

31,

2016,

the Company has

100,000,000

shares of Common Stock authorized for issuance,

$0.001

par value per share, of which

16,603,559

shares were issued and outstanding. The Company has the following shares of Common Stock reserved for future issuance:

	December 31,
	2016		2015

Stock-based compensation awards		2,982,470		2,419,901
Employee Stock Purchase Plan		292,821		297,359
Total		3,275,291		2,717,260

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 4
-Subparagraph (SAB Topic 4.E)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Note 9 - Stock-based Compensation

12 Months Ended

Dec. 31, 2016

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

Stock-based Compensation

August

21,

2014,

the Company’s Board of Directors adopted the

2014

Equity Incentive Plan (the

“2014

Plan”), the

2014

Employee Stock Purchase Plan (the

“2014

ESPP”) and the

2006

Equity Incentive Plan (the

“2006

Plan”), as amended and restated (collectively the “Plans”). On

October

2014,

the stockholders approved these plans.

The Plans provide for the grant of incentive and non-statutory stock options, stock appreciation rights, restricted stock and stock unit awards, performance units, stock grants and qualified performance-based awards. Under the

2006

Plan, no new stock compensation awards will be granted subsequent to the completion of the Company’s IPO. The Company initially reserved

704,000

shares of Common Stock for issuance under the

2014

Plan. The

2014

Plan provides that the number of shares reserved and available for issuance under the

2014

Plan will automatically increase each

January

beginning

January

2015

four

percent of the outstanding shares of Common Stock on the immediately preceding

December

or such lesser number of shares as determined by the Company’s Board of Directors prior to each such

January

1st.

Terms of the stock awards, including vesting requirements, are determined by the Board of Directors, subject to the provisions of the Plans. Options granted by the Company typically vest over

three

four

years. Certain awards provide for accelerated vesting if there is a change in control as defined in the Plans. Stock options outstanding under the

2006

Plan are exercisable from the date of grant for a period of

ten

years. Stock options granted under the

2014

Plan are exercisable only upon vesting. For options granted to date, the exercise price equaled the fair value of the Common Stock as determined by the Board of Directors on the date of grant.

Stock-based compensation expense

Total stock-based compensation expense is recognized for stock options granted to employees and non-employees and has been reported in the Company’s consolidated statements of operations as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014

Research and development	$	1,114	$	650	$	114
General and administrative		2,229		1,514		345
Total	$	3,343	$	2,164	$	459

The Company estimates the fair value of each employee stock award on the grant date using the Black-Scholes option-pricing model based on the following assumptions regarding the fair value of the underlying Common Stock on each measurement date:

	Year Ended December 31,
	2016			2015			2014
Weighted average expected volatility		84.4	%		79.8	%		79.5	%
Expected term (in years)		6.05			6.11			6.00
Risk free interest rate		1.45	%		1.76	%		1.88	%
Expected dividend yield		0	%		0	%		0	%

Stock options issued to non-employees are accounted for using the fair value method of accounting; they are periodically revalued as the options vest and are recognized as expense over the related service period. The total expense related to all options granted to non-employees for the years ended

December

31,

2016,

2015

and

2014

was

$0,

$2,000

and

$4,000,

respectively.

Stock Options

The following table summarizes stock option activity for employees and non-employees:

	Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value

Outstanding at December 31, 2015		2,200,369		$	8.52		7.8	$	15,705
Granted		132,495		$	7.11
Exercised		(97,521	)	$	2.01
Cancelled or forfeited		(69,089	)	$	14.12
Outstanding at December 31, 2016		2,166,254		$	8.55		7.1	$	124
Exercisable at December 31, 2016		1,227,575		$	6.80		6.0	$	124
Vested or expected to vest at December 31, 2016 (1)		2,052,214		$	8.37		7.0	$	124

_______________________

(1)

Represents the number of vested options at

December

31,

2016

plus the number of unvested options expected to vest based on the unvested options outstanding at

December

31,

2016.

During the year ended

December

31,

2016,

the Company granted stock options to purchase an aggregate of

132,495

shares of its Common Stock with a weighted-average exercise price of

$7.11

and a weighted-average grant date fair value of

$5.08.

During the year ended

December

31,

2015,

the Company granted stock options to purchase an aggregate of

1,010,256

shares of its Common Stock with a weighted-average grant date fair value of

$9.34.

During the year ended

December

31,

2014,

the Company granted stock options to purchase an aggregate of

659,865

shares of its Common Stock with a weighted-average grant date fair value of

$4.07.

The total intrinsic value of options exercised in the years ended

December

31,

2016

and

2015

was

$0.6

million and

$0.5

million, respectively. As of

December

31,

2016,

there was

$5.6

million of total unrecognized compensation cost related to employee non-vested stock options. As of

December

31,

2016,

total compensation cost related to non-employee, non-vested stock options was fully recognized. The total unrecognized compensation cost for employee awards will be adjusted for future forfeitures. The Company expects to recognize its remaining stock-based compensation expense over a weighted-average period of

2.2

years.

Employee Stock Purchase Plan

The

2014

ESPP initially authorized the issuance of up to

140,500

shares of Common Stock. The number of shares increases each

January

commencing on

January

2015

and ending on (and including)

January

2024,

by an amount equal to the lesser of

one

percent of the outstanding shares as of the end of the immediately preceding fiscal year,

281,000

shares and any lower amount determined by the Company’s Board of Directors prior to each such

January

1st.

As of

December

31,

2016,

the

2014

ESPP authorized the issuance of up to

304,991

shares of Common Stock. The Company’s Board of Directors has determined there was to be no increase on

January

2017.

The

third

offering under the

2014

ESPP began on

January

2016

and ended on

June

30,

2016.

The

fourth

offering under the

2014

ESPP began on

July

2016

and ended on

December

31,

2016.

During the years ended

December

31,

2016

and

2015,

4,538

and

7,632

shares, respectively, were issued under the

2014

ESPP resulting in

292,821

shares remaining for future issuance under the plan as of

December

31,

2016.

The Company incurred

$93,000

and

$32,000

in stock-based compensation expense related to the

2014

ESPP for the years ended

December

31,

2016

and

2015,

respectively.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Note 10 - Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Text Block]

10.

Income Taxes

The components of income from operations before income taxes are as follows (in thousands):

	Years ended December 31,
	2016			2015			2014
Domestic	$	(15,860	)	$	(21,377	)	$	(3,342	)
Foreign		(12,666	)		-			-
Loss before income taxes	$	(28,526	)	$	(21,377	)	$	(3,342	)

For the years ended

December

31,

2016,

2015,

2014,

the Company has not recorded a provision for federal or state income taxes as it has had net operating losses since inception.

A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations is as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Income tax benefit using U.S. federal statutory rate	$	(9,696	)	$	(7,315	)	$	(1,136	)
Permanent differences		430			260			124
Orphan Drug credit permanent addback		1,437			1,310			674
State income taxes, net of federal benefit		(498	)		(808	)		(303	)
Tax credits		(4,846	)		(4,219	)		(2,176	)
Expired net operating losses and tax credits		-			-			312
Change in valuation allowance		8,804			9,782			4,394
Mark-to-market derivative liability		-			-			(1,779	)
Foreign rate differential		4,304			-			-
Other		65			990			(110	)
		-		$	-		$	-

The significant components of the Company's deferred tax assets are as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Net operating loss carryforwards	$	37,237		$	34,488		$	29,217
Federal and state tax credits		21,223			16,404			12,126
Accrued expenses		544			27			478
Patents		360			443			531
Stock-based compensation		1,353			596			92
Other		321			276			8
		61,038			52,234			42,452
Valuation allowance		(61,038	)		(52,234	)		(42,452	)
Net deferred tax asset	$	-		$	-		$	-

Management of the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Based on the Company's history of operating losses, management of the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Accordingly, the Company has provided a full valuation allowance for deferred tax assets as of

December

31,

2016,

2015

and

2014.

The valuation allowance increased by approximately

$8.8

million during the year ended

December

31,

2016,

due primarily to the addition of Orphan Drug Tax credits and the generation of net operating losses. The valuation allowance increased by approximately

$9.8

million during the year ended

December

31,

2015,

due primarily to the addition of Orphan Drug Tax credits and the generation of net operating losses. The valuation allowance increased by approximately

$3.8

million during the year ended

December

31,

2014,

due primarily to the addition of Orphan Drug Tax credits and the generation of net operating losses.

Subject to the limitations described below, as of

December

31,

2016,

2015,

and

2014,

the Company has net operating loss carryforwards of approximately

$101.4

million,

$94.2

million, and

$78.3

million, respectively, to offset future federal taxable income, which will expire at various times between

2026

and

2036.

The Company has an additional

$0.6

million of net operating losses in

2016

that are attributable to excess stock option deductions which would be recorded as an increase in additional paid-in capital upon reducing cash taxes paid. As of

December

31,

2016,

2015,

and

2014,

the Company has state net operating loss carryforwards of approximately

$53.0

million,

$46.4

million, and

$55.1

million, respectively, to offset future state taxable income, which will expire at various times between

2023

and

2036.

As of

December

31,

2016,

2015

and

2014,

the Company has tax credit carryforwards of approximately

$21.8

million,

$16.9

million and

$12.5

million, respectively, to offset future federal and state income taxes, which will expire at various times between

2026

and

2036.

Net operating loss and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service (the "IRS") and

may

become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a

three

-year period in excess of

50%

as defined under Sections

382

and

383

in the Internal Revenue Code. This could substantially limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the Company's value immediately prior to the ownership change. Subsequent ownership changes

may

further affect the limitation in future years.

The Company had no unrecognized tax benefits or related interest and penalties accrued during the years ended

December

31,

2016,

2015,

and

2014.

The Company will recognize interest and penalties related to uncertain tax positions in income tax expense.

The Company is subject to U.S. federal income tax and primarily Massachusetts state income tax. The statute of limitations for assessment by the IRS and state tax authorities is open for tax years ending

December

31,

2013

through

2016,

although carryforward attributes that were generated prior to tax year

2013

may

still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a future period. Currently, no federal or state income tax returns are under examination by the respective taxing authorities.

The deferred tax assets above exclude

$0.6

million of tax effected net operating losses related to tax deductions from the exercise of stock options subsequent to the adoption of the

2006

accounting standard on stock-based compensation. This amount represents an excess tax benefit and has not been included in the gross deferred tax assets. The Company will adopt ASU

2016

09,

Improvements to Employee Share-Based Payment Accounting, for the quarter ended

March

31,

2017.

As a result of adoption, the deferred tax assets associated with net operating losses will increase by

$0.6

million. These amounts will be offset by a corresponding increase in the valuation allowance.

Note 11 - Net Loss Per Share Attributable to Common Stockholders

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Text Block]

11.

Net Loss per Share Attributable to Common Stockholders

As described in Note

Summary of Significant Accounting Policies, the Company computes basic and diluted loss per share using a methodology that gives effect to the impact of outstanding participating securities (the

“two

-class method”). As the years ended

December

31,

2016,

2015

and

2014

resulted in net losses, there is no income allocation required under the

two

-class method or dilution attributed to weighted-average shares outstanding in the calculation of diluted loss per share.

The following Common Stock equivalents, presented on an as converted basis, were excluded from the calculation of net loss per share for the periods presented, due to their anti-dilutive effect:

	Year Ended December 31,
	2016		2015		2014
Convertible preferred stock		-		-		7,581,475	(a)
Common stock warrants		-		-		659,806	(a)
Outstanding stock options		2,166,254		2,200,369		1,235,526
Convertible notes		-		-		243,876	(a)
		2,166,254		2,200,369		9,720,683

_______________________

(a)

These instruments were either exercised or converted to Common Stock during

2014.

Note 12 - Quarterly Financial Information (Unaudited, in Thousands, Except Share and Per Share Data)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Text Block]

12.

Quarterly Financial Information (unaudited, in thousands, except share and per share data)

The following table contains selected quarterly financial information from

2016

and

2015.

The Company believes that the following information reflects all normal recurring adjustments necessary for a fair statement of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.

	Three Months Ended
	March 31,			June 30,			September 30,			December 31,
	2016			2016			2016			2016
Operating expenses	$	6,819		$	7,854		$	7,166		$	6,866
Net loss attributable to common stockholders		(6,552	)		(7,905	)		(7,107	)		(6,962	)
Net loss per share attributable to common stockholders:
Basic and Diluted	$	(0.40	)	$	(0.48	)	$	(0.43	)	$	(0.42	)
Weighted-average common shares outstanding used in net loss per share attributable to common stockholders:
Basic and Diluted		16,507,586			16,561,239			16,582,276			16,595,502

	Three Months Ended
	March 31,			June 30,			September 30,			December 31,
	2015			2015			2015			2015
Operating expenses	$	4,620		$	4,981		$	5,082		$	6,187
Net loss attributable to common stockholders		(4,580	)		(5,072	)		(5,383	)		(6,342	)
Net loss per share attributable to common stockholders:
Basic and Diluted	$	(0.28	)	$	(0.31	)	$	(0.33	)	$	(0.38	)
Weighted-average common shares outstanding used in net loss per share attributable to common stockholders:
Basic and Diluted		16,448,688			16,449,937			16,466,945			16,490,430

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Initial Public Offering, Policy [Policy Text Block

Initial Public Offering

October

27,

2014,

the Company completed the IPO of its Common Stock, pursuant to a registration statement on Form S-

as amended. An aggregate of

7,026,500

shares of Common Stock registered under the registration statement were sold at a price of

$10.00

per share (including

916,500

shares of Common Stock sold by the Company pursuant to the full exercise of an overallotment option granted to the Company’s underwriters in connection with the IPO). Net proceeds of the IPO were

$62.5

million, after deducting underwriting discounts, commissions and offering-related expenses payable by the Company of approximately

$7.8

million. In this transaction, all shares of the Company’s redeemable convertible preferred stock (the “Preferred Stock”) were automatically converted into an aggregate of

8,651,805

shares of its Common Stock and the Series D redeemable convertible preferred stock (the “Series D Preferred Stock”) investors’ rights and obligations were either exercised or extinguished.

At-the-market Equity Offering Program [Policy Text Block]

At-The-Market Equity Offering Program

November

12,

2015,

the Company filed a shelf registration statement on Form S-

$40

million of the Company’s Common Stock at prevailing market prices from time to time. The Registration Statement became effective on

January

12,

2016.

As of

December

31,

2016,

the Company had not commenced sales under this program.

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation and Principles of Consolidation

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

may

differ from those estimates or assumptions.

Segment Reporting, Policy [Policy Text Block]

Segment Information

one

operating segment, which is the business of developing and commercializing vonapanitase for the treatment of renal and vascular disease. Currently, the Company operates in only

one

geographic segment.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, available-for-sale investments, forward foreign currency contracts (see Note

6),

820,

Fair Value Measurement and Disclosures

one

of the following

three

categories:

Level

1—Valuations

based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level

2—Valuations

based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level

3—Valuations

that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Financial instruments measured at fair value on a recurring basis include cash equivalents, short-term investments and forward foreign currency contracts (see Note

6).

There have been no changes to the valuation methods utilized by the Company during the years ended

December

31,

2016

and

2015.

The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of financial instruments between levels during the years ended

December

31,

2016

and

2015.

Derivatives, Policy [Policy Text Block]

Derivative Financial Instruments

The Company enters into forward foreign currency contracts to mitigate its exposure to fluctuations in the exchange rates between the Swiss Franc and the U.S. dollar (see Note

6).

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

May

2014,

the FASB issued ASU

2014

09,

“Revenue from Contracts with Customers”

(“ASU

2014

09”),

January

2018,

with no early adoption permitted. Earlier application is permitted only as of annual reporting periods beginning after

December

15,

2016,

including interim reporting periods within that reporting period. The amendments

may

August

2014,

the FASB issued ASU

2014

15,

“Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”

(“ASU

2014

15”).

ASU

2014

one

December

31,

2016

and it did not have a material impact. Refer to Note

for further details regarding the Company’s liquidity.

November

2015,

the FASB issued ASU

2015

17,

Income Taxes (Topic

740):

Balance Sheet Classification of Deferred Taxes

(“ASU

2015

17”),

which simplifies the presentation of deferred income taxes. ASU

2015

requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. ASU

2015

is effective for financial statements issued for fiscal years beginning after

December

15,

2016

(and interim periods within those fiscal years) with early adoption permitted. ASU

2015

may

be either applied prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company elected to early adopt ASU

2015

prospectively in the

fourth

quarter of

2015.

As a result, the Company has presented all deferred tax assets and liabilities as noncurrent on the consolidated balance sheet as of

December

31,

2016

and

2015.

There was no impact on the Company’s results of operations as a result of the adoption of ASU

2015

17.

February

2016,

the FASB issued ASU

2016

02,

Leases (Topic

842):

Amendments to FASB Codification

(“ASU

2016

02”),

2016

is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after

December

15,

2018,

with early adoption permitted. ASU

2016

March

2016,

the FASB issued ASU

2016

09,

Compensation - Stock Compensation (Topic

718):

Improvements to Employee Share-Based Payment Accounting

(“ASU

2016

09”),

which simplifies various aspects of the accounting for share-based payments, including accounting for income taxes, earnings per share, and forfeitures. ASU

2016

is effective for annual periods beginning after

December

15,

2016,

and interim periods within those annual periods with early adoption permitted. The Company will adopt ASU

2016

for the quarter ended

March

31,

2017.

The Company is still currently evaluating the effects this ASU

may

have on its consolidated financial statements.

August

2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230):

Classification of Certain Cash Receipts and Cash Payments

(“ASU

2016

15”),

which provides clarification regarding how certain cash receipts and cash payment are presented and classified in the statement of cash flows. This update addresses

eight

specific cash flow issues with the objective of reducing the existing diversity in practice. This update is effective for annual and interim periods beginning after

December

15,

2017,

which will require the Company to adopt these provisions in the

first

quarter of fiscal

2019

using a retrospective approach. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of

days or less from the purchase date to be cash equivalents. Cash and cash equivalents are held in depository and money market accounts and are reported at fair value.

Investment, Policy [Policy Text Block]

Short-Term Investments

one

year. There have been no realized gains and losses for the years ended

December

31,

2016,

2015

and

2014.

December

31,

2016,

2015

and

2014,

as it is more likely than not the Company will hold the securities until maturity or a recovery of the cost basis.

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

Concentrations of Credit Risk and Off-Balance Sheet Risk

may

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Asset	Estimated Useful Life
Computer equipment and software (years)		3
Furniture, fixtures and other (years)		5
Laboratory equipment (years)		7

Revenue Recognition, Policy [Policy Text Block]

Revenue

2014,

the Company recognized

$2.9

million of revenue related to the expiration of residual rights to license the Company’s technology.

Research and Development Expense, Policy [Policy Text Block]

Research and Development Costs

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation Expense

The Company accounts for its stock-based compensation awards to employees and directors in accordance with FASB ASC Topic

718,

Compensation-Stock Compensation

(“ASC

718”).

ASC

718

and FASB ASC Topic

505,

Equity

and are expensed using an accelerated attribution model.

“

Use of Estimates

,” for a discussion of the Company's estimated fair value of its Common Stock.

Income Tax, Policy [Policy Text Block]

Income Taxes

Income taxes are recorded in accordance with FASB ASC Topic

740,

“Income Taxes” (“ASC

740”),

may

not realize the benefit of its deferred tax assets; therefore, a valuation allowance has been established for the full amount of the deferred tax assets.

The Company accounts for uncertain tax positions in accordance with the provisions of ASC

740.

December

31,

2016

and

2015,

the Company did not have any significant uncertain tax positions. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. See Note

for further details.

Earnings Per Share, Policy [Policy Text Block]

Net Income (Loss) per Share Attributable to Common Stockholders

The Company follows the

two

-class method when computing net income (loss) per share in periods when issued shares that meet the definition of participating securities are outstanding. The

two

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Loss

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

December

31,

2016

to ensure that this filing includes appropriate disclosure of events both recognized in the consolidated financial statements as of

December

31,

2016

and events which occurred subsequently but were not recognized in the consolidated financial statements.

Note 2 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Property Plant and Equipment Useful Lives [Table Text Block]

Asset	Estimated Useful Life
Computer equipment and software (years)		3
Furniture, fixtures and other (years)		5
Laboratory equipment (years)		7

Note 3 - Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	As of December 31, 2016
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Cash equivalents	$	28,876	$	-	$	-	$	28,876
Government securities		4,925		-		-		4,925
Total	$	33,801	$	-	$	-	$	33,801

Liabilities
Foreign currency forward contracts	$	-	$	-	$	-	$	-
Total	$	-	$	-	$	-	$	-

	As of December 31, 2015
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Cash equivalents	$	39,233	$	-	$	-	$	39,233
Government securities		25,232		-		-		25,232
Total	$	64,465	$	-	$	-	$	64,465

Liabilities
Foreign currency forward contracts	$	-	$	537	$	-	$	537
Total	$	-	$	537	$	-	$	537

Available-for-sale Securities [Table Text Block]

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2016
Government securities
(Due within 1 year)	$	4,924	$	1	$	-		$	4,925
	$	4,924	$	1	$	-		$	4,925

December 31, 2015
Government securities
(Due within 1 year)	$	25,243	$	1	$	(12	)	$	25,232
	$	25,243	$	1	$	(12	)	$	25,232

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

Note 4 - Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Table Text Block]

	As of December 31,
	2016			2015

Computer equipment and software	$	141		$	167
Furniture, fixtures, and other		318			244
Laboratory equipment		478			254
		937			665
Accumulated depreciation		(565	)		(441	)
Property and equipment, net	$	372		$	224

Note 5 - Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Accrued Liabilities [Table Text Block]

	As of December 31,
	2016		2015

Payroll and employee-related costs	$	1,139	$	1,058
Contracted service costs		2,891		1,040
Professional fees and other		493		478
Total	$	4,523	$	2,576

Note 6 - Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

		Balance Sheet line item		Gross amounts of recognized liabilities		Gross amount offset in consolidated balance sheet		Net Amount

December 31, 2016	Forward foreign currency contracts		Other current liabilities	$	-	$	-	$	-
December 31, 2015	Forward foreign currency contracts		Other current liabilities		537		-		537

Note 7 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Year Ending December 31:	Amount

2017	$	168
2018		84
Total minimum lease payments	$	252

Note 8 - Common Stock (Tables)	12 Months Ended
Note 8 - Common Stock (Tables)	Dec. 31, 2016
Notes Tables
Common Stock Reserved for Future Issuance [Table Text Block]	<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center"> </td> <td> </td> <td colspan="3"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Stock-based compensation awards</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,982,470</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,419,901</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Employee Stock Purchase Plan</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">292,821</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">297,359</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,275,291</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,717,260</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>

Note 9 - Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

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

	Year Ended December 31,
	2016		2015		2014

Research and development	$	1,114	$	650	$	114
General and administrative		2,229		1,514		345
Total	$	3,343	$	2,164	$	459

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

	Year Ended December 31,
	2016			2015			2014
Weighted average expected volatility		84.4	%		79.8	%		79.5	%
Expected term (in years)		6.05			6.11			6.00
Risk free interest rate		1.45	%		1.76	%		1.88	%
Expected dividend yield		0	%		0	%		0	%

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value

Outstanding at December 31, 2015		2,200,369		$	8.52		7.8	$	15,705
Granted		132,495		$	7.11
Exercised		(97,521	)	$	2.01
Cancelled or forfeited		(69,089	)	$	14.12
Outstanding at December 31, 2016		2,166,254		$	8.55		7.1	$	124
Exercisable at December 31, 2016		1,227,575		$	6.80		6.0	$	124
Vested or expected to vest at December 31, 2016 (1)		2,052,214		$	8.37		7.0	$	124

Note 10 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	Years ended December 31,
	2016			2015			2014
Domestic	$	(15,860	)	$	(21,377	)	$	(3,342	)
Foreign		(12,666	)		-			-
Loss before income taxes	$	(28,526	)	$	(21,377	)	$	(3,342	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
	2016			2015			2014
Income tax benefit using U.S. federal statutory rate	$	(9,696	)	$	(7,315	)	$	(1,136	)
Permanent differences		430			260			124
Orphan Drug credit permanent addback		1,437			1,310			674
State income taxes, net of federal benefit		(498	)		(808	)		(303	)
Tax credits		(4,846	)		(4,219	)		(2,176	)
Expired net operating losses and tax credits		-			-			312
Change in valuation allowance		8,804			9,782			4,394
Mark-to-market derivative liability		-			-			(1,779	)
Foreign rate differential		4,304			-			-
Other		65			990			(110	)
		-		$	-		$	-

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	Year Ended December 31,
	2016			2015			2014
Net operating loss carryforwards	$	37,237		$	34,488		$	29,217
Federal and state tax credits		21,223			16,404			12,126
Accrued expenses		544			27			478
Patents		360			443			531
Stock-based compensation		1,353			596			92
Other		321			276			8
		61,038			52,234			42,452
Valuation allowance		(61,038	)		(52,234	)		(42,452	)
Net deferred tax asset	$	-		$	-		$	-

Note 11 - Net Loss Per Share Attributable to Common Stockholders (Tables)

12 Months Ended

Dec. 31, 2016

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

	Year Ended December 31,
	2016		2015		2014
Convertible preferred stock		-		-		7,581,475	(a)
Common stock warrants		-		-		659,806	(a)
Outstanding stock options		2,166,254		2,200,369		1,235,526
Convertible notes		-		-		243,876	(a)
		2,166,254		2,200,369		9,720,683

Note 12 - Quarterly Financial Information (Unaudited, in Thousands, Except Share and Per Share Data) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Table Text Block]

	Three Months Ended
	March 31,			June 30,			September 30,			December 31,
	2016			2016			2016			2016
Operating expenses	$	6,819		$	7,854		$	7,166		$	6,866
Net loss attributable to common stockholders		(6,552	)		(7,905	)		(7,107	)		(6,962	)
Net loss per share attributable to common stockholders:
Basic and Diluted	$	(0.40	)	$	(0.48	)	$	(0.43	)	$	(0.42	)
Weighted-average common shares outstanding used in net loss per share attributable to common stockholders:
Basic and Diluted		16,507,586			16,561,239			16,582,276			16,595,502

	Three Months Ended
	March 31,			June 30,			September 30,			December 31,
	2015			2015			2015			2015
Operating expenses	$	4,620		$	4,981		$	5,082		$	6,187
Net loss attributable to common stockholders		(4,580	)		(5,072	)		(5,383	)		(6,342	)
Net loss per share attributable to common stockholders:
Basic and Diluted	$	(0.28	)	$	(0.31	)	$	(0.33	)	$	(0.38	)
Weighted-average common shares outstanding used in net loss per share attributable to common stockholders:
Basic and Diluted		16,448,688			16,449,937			16,466,945			16,490,430

Note 1 - Organization and Operations (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash, Cash Equivalents, and Short-term Investments		$ 41,300
Retained Earnings (Accumulated Deficit)		(159,777)	$ (131,251)
Revenues				$ 2,948
Expiration of Rights and Obligations in Connection With 2009 Agreement [Member]
Revenues	$ 2,900

Cash includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid Investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Short-term investments, exclusive of cash equivalents, generally consist of marketable securities intended to be sold within one year (or the normal operating cycle if longer) and may include trading securities, available-for-sale securities, or held-to-maturity securities (if maturing within one year), as applicable.

Options Outstanding, Beginning Balance (in shares)

Note 2 - Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands		12 Months Ended
	Oct. 27, 2014 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period \| shares		97,521
Proceeds from Issuance Initial Public Offering				$ 62,485
Payments of Stock Issuance Costs				452
Sale of Stock, Maximum Value of Stock Offered		$ 40,000
Number of Operating Segments		1
Number of Reportable Segments		1
Revenues				2,948
Available-for-sale Securities, Gross Realized Gain (Loss)		0	0	0
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities		0	0	$ 0
Liability for Uncertainty in Income Taxes, Current		$ 0	$ 0
IPO [Member]
Stock Issued During Period, Shares, New Issues \| shares	7,026,500
Share Price \| $ / shares	$ 10
Proceeds from Issuance Initial Public Offering	$ 62,500
Payments of Stock Issuance Costs	$ 7,800
Conversion of Stock, Shares Converted \| shares	8,651,805
IPO [Member] \| Underwriters [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period \| shares	916,500

Note 2 - Summary of Significant Accounting Policies - Property and Equipment Useful Lives (Details)	12 Months Ended
	Dec. 31, 2016
Computer Equipment and Software [Member]
Property and equipment, useful life (Year)	3 years
Furniture and Fixtures [Member]
Property and equipment, useful life (Year)	5 years
Laboratory Equipment [Member]
Property and equipment, useful life (Year)	7 years

Note 3 - Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Total	$ 33,801	$ 64,465
Foreign currency forward contracts		537
Total		537
Cash Equivalents [Member]
Cash equivalents	28,876	39,233
US Government Agencies Debt Securities [Member]
Government securities	4,925	25,232
Fair Value, Inputs, Level 1 [Member]
Total	33,801	64,465
Foreign currency forward contracts
Total
Fair Value, Inputs, Level 1 [Member] \| Cash Equivalents [Member]
Cash equivalents	28,876	39,233
Fair Value, Inputs, Level 1 [Member] \| US Government Agencies Debt Securities [Member]
Government securities	4,925	25,232
Fair Value, Inputs, Level 2 [Member]
Total
Foreign currency forward contracts		537
Total		537
Fair Value, Inputs, Level 2 [Member] \| Cash Equivalents [Member]
Cash equivalents
Fair Value, Inputs, Level 2 [Member] \| US Government Agencies Debt Securities [Member]
Government securities
Fair Value, Inputs, Level 3 [Member]
Total
Foreign currency forward contracts
Total
Fair Value, Inputs, Level 3 [Member] \| Cash Equivalents [Member]
Cash equivalents
Fair Value, Inputs, Level 3 [Member] \| US Government Agencies Debt Securities [Member]
Government securities

Note 3 - Fair Value Measurements - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amortized Cost	$ 4,924	$ 25,243
Unrealized Gains	1	1
Unrealized Losses		(12)
Fair Value	4,925	25,232
US Government Agencies Debt Securities [Member]
Amortized Cost	4,924	25,243
Unrealized Gains	1	1
Unrealized Losses		(12)
Fair Value	$ 4,925	$ 25,232

Note 4 - Property and Equipment, Net (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Depreciation, Depletion and Amortization	$ 123,000	$ 57,000	$ 30,000

Note 4 - Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property and equipment	$ 937	$ 665
Accumulated depreciation	(565)	(441)
Property and equipment, net	372	224
Computer Equipment and Software [Member]
Property and equipment	141	167
Furniture and Fixtures [Member]
Property and equipment	318	244
Laboratory Equipment [Member]
Property and equipment	$ 478	$ 254

Note 5 - Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Payroll and employee-related costs	$ 1,139	$ 1,058
Contracted service costs	2,891	1,040
Professional fees and other	493	478
Total	$ 4,523	$ 2,576

Note 6 - Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Foreign Exchange Forward [Member] - Other Current Liabilities [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Gross amounts of recognized liabilities		$ 537
Net amount of recognized liabilities		$ 537

Note 7 - Commitments and Contingencies (Details Textual) SFr in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2002	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2016 CHF (SFr)	Aug. 31, 2014 ft²
Royalty Payment, Percentage of Net Sales	2.50%
Area of Real Estate Property \| ft²						5,000
Operating Leases, Rent Expense \| $		$ 200,000	$ 200,000	$ 200,000
Security Deposit \| $		14,000
Letters of Credit Outstanding, Amount \| $		14,000	14,000
Loans Pledged as Collateral \| $		14,000	$ 14,000
Inventories [Member]
Purchase Commitment, Amount Executed \| SFr					SFr 1.9
Inventories [Member] \| Accrued Expenses [Member]
Purchase Commitment, Amount Executed \| SFr					0.9
Acquisition of Raw Materials [Member]
Purchase Commitment, Amount Executed \| SFr					1.0
Acquisition of Raw Materials [Member] \| Accrued Expenses [Member]
Purchase Commitment, Amount Executed \| SFr					0.2
Inventories, Four Batches [Member]
Purchase Commitment, Amount Executed		$ 7,500,000			SFr 7.6

Note 7 - Commitments and Contingencies - Future Minimum Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 168
2018	84
Total minimum lease payments	$ 252

Note 8 - Common Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Outstanding	16,603,559	16,501,500
Common Stock, Shares, Issued	16,603,559	16,501,500
Dividends, Common Stock	$ 0

Note 8 - Common Stock - Common Stock Reserved for Future Issuance (Details) - shares	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reserved for future issuance (in shares)	3,275,291	2,717,260
The 2014 Employee Stock Purchase Plan [Member]
Reserved for future issuance (in shares)	292,821	297,359	140,500
Performance Shares [Member]
Reserved for future issuance (in shares)	2,982,470	2,419,901

Note 9 - Stock-based Compensation (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	6 years
Allocated Share-based Compensation Expense	$ 3,343,000	$ 2,164,000	$ 459,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	132,495	1,010,256	659,865
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 7.11
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 5.08	$ 9.34	$ 4.07
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 600,000	$ 500,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 5,600,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 73 days
Common Stock, Capital Shares Reserved for Future Issuance	3,275,291	2,717,260
Employee Stock Option [Member] \| Non-Employees [Member]
Allocated Share-based Compensation Expense	$ 0	$ 2,000	$ 4,000
The 2014 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	704,000
Share-based Compensation Arrangement by Share-based Payment Award Number of Annual Additional Shares Percentage	4.00%
The 2014 Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
The 2014 Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
The 2006 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	10 years
The 2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	304,991
Share-based Compensation Arrangement by Share-based Payment Award Number of Annual Additional Shares Percentage	1.00%
Allocated Share-based Compensation Expense	$ 93,000	$ 32,000
Common Stock, Capital Shares Reserved for Future Issuance	292,821	297,359	140,500
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	4,538	7,632
The 2014 Employee Stock Purchase Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	281,000

Note 9 - Stock-based Compensation - Stock-based Compensation Expense Recognized for Stock Options Granted (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocated share-based compensation	$ 3,343	$ 2,164	$ 459
Research and Development Expense [Member]
Allocated share-based compensation	1,114	650	114
General and Administrative Expense [Member]
Allocated share-based compensation	$ 2,229	$ 1,514	$ 345

Note 9 - Stock-based Compensation - Black-scholes Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Weighted average expected volatility	84.40%	79.80%	79.50%
Expected term (in years) (Year)	6 years 18 days	6 years 40 days	6 years
Risk free interest rate	1.45%	1.76%	1.88%
Expected dividend yield	0.00%	0.00%	0.00%

Note 9 - Stock-based Compensation - Stock Option Activity for Employees and Non-employees (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

2,200,369

Options Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share)

$ 8.52

Options Outstanding, Weighted-average Remaining Contractual Term, Beginning Balance (Year)

7 years 36 days

7 years 292 days

Options Outstanding, Aggregate Intrinsic Value, Beginning Balance

$ 124

$ 15,705

Options Granted (in shares)

132,495

Options Granted, Weighted Average Exercise Price (in dollars per share)

$ 7.11

Options Exercised (in shares)

(97,521)

Options Exercised, Weighted Average Exercise Price (in dollars per share)

$ 2.01

Options Cancelled or forfeited (in shares)

(69,089)

Options Cancelled or forfeited, Weighted Average Exercise Price (in dollars per share)

$ 14.12

Options Outstanding, Ending Balance (in shares)

2,166,254

2,200,369

Options Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share)

$ 8.55

$ 8.52

Options Exercisable (in shares)

1,227,575

Options Exercisable, Weighted Average Exercise Price (in dollars per share)

$ 6.80

Options Exercisable, Weighted-average Remaining Contractual Term (Year)

6 years

Options Exercisable, Aggregate Intrinsic Value

$ 124

Options Vested or Expected to Vest (in shares)

^[1]

2,052,214

Options Vested or Expected to Vest, Weighted Average Exercise Price (in dollars per share)

^[1]

$ 8.37

Options Vested or Expected to Vest, Weighted-average Remaining Contractual Term (Year)

^[1]

7 years

Options Vested or Expected to Vest, Aggregate Intrinsic Value

^[1]

$ 124

[1]	Represents the number of vested options at December 31, 2016 plus the number of unvested options expected to vest based on the unvested options outstanding at December 31, 2016.

Note 10 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		$ 8,800	$ 9,800	$ 3,800
Operating Loss Carryforwards Attributable to Excess Stock Option Deductions		600
Tax Credit Carryforward, Amount		21,800	16,900	12,500
Operating Loss Carryforwards Excluded from Deferred Tax Assets		600
Unrecognized Tax Benefits		0	0	0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense		0	0	0
Scenario, Forecast [Member] \| Increase to Deferred Tax Assets as Result of Adoption of ASU 2016-09 [Member]
Current Period Reclassification Adjustment	$ 600
Domestic Tax Authority [Member]
Operating Loss Carryforwards		101,400	94,200	78,300
Income Tax Expense (Benefit)		0	0	0
State and Local Jurisdiction [Member]
Operating Loss Carryforwards		53,000	46,400	55,100
Income Tax Expense (Benefit)		$ 0	$ 0	$ 0

Note 10 - Income Taxes - Domestic and Foreign Loss Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Domestic	$ (15,860)	$ (21,377)	$ (3,342)
Foreign	(12,666)
Loss before income taxes	$ (28,526)	$ (21,377)	$ (3,342)

Note 10 - Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income tax benefit using U.S. federal statutory rate	$ (9,696)	$ (7,315)	$ (1,136)
Permanent differences	430	260	124
Orphan Drug credit permanent addback	1,437	1,310	674
State income taxes, net of federal benefit	(498)	(808)	(303)
Tax credits	(4,846)	(4,219)	(2,176)
Expired net operating losses and tax credits			312
Change in valuation allowance	8,804	9,782	4,394
Mark-to-market derivative liability			(1,779)
Foreign rate differential	4,304
Other	$ 65	$ 990	$ (110)

Note 10 - Income Taxes - Summary of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net operating loss carryforwards	$ 37,237	$ 34,488	$ 29,217
Federal and state tax credits	21,223	16,404	12,126
Accrued expenses	544	27	478
Patents	360	443	531
Stock-based compensation	1,353	596	92
Other	321	276	8
	61,038	52,234	42,452
Valuation allowance	(61,038)	(52,234)	(42,452)
Net deferred tax asset	$ 0	$ 0	$ 0

Note 11 - Net Loss Per Share Attributable to Common Stockholders - Common Stock Equivalents Excluded from Calculation of Net Loss Per Share (Details) - shares

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Common Stock Warrants [Member]

2,166,254

2,200,369

9,720,683

Employee Stock Option [Member]

659,806

^[1]

Convertible Debt Securities [Member]

2,166,254

2,200,369

1,235,526

Convertible Preferred Stock [Member]

243,876

^[1]