ARADIGM CORP

CIK:0001013238|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue:
Total revenue	$ 282	$ 2,728	$ 2,011	$ 12,096
Operating expenses:
Research and development	1,545	3,543	6,715	10,111
General and administrative	1,246	2,133	4,348	5,722
Total operating expenses	2,791	5,676	11,063	15,833
Loss from operations	(2,509)	(2,948)	(9,052)	(3,737)
Interest income	7	23	27	73
Interest expense	(1,130)	(970)	(3,172)	(2,882)
Other income (expense)	(4)	9	(43)	17
Net loss and comprehensive loss	$ (3,636)	$ (3,886)	$ (12,240)	$ (6,529)
Basic and diluted net loss per common share	$ (0.24)	$ (0.26)	$ (0.81)	$ (0.44)
Shares used in computing basic and diluted net loss per common share	15,186	14,860	15,135	14,836
Contract Revenue Related Party [Member]
Revenue:
Total revenue	$ 170	$ 2,709	$ 1,581	$ 11,804
Contract Revenue [Member]
Revenue:
Total revenue	52	6	176	241
Grant Revenue [Member]
Revenue:
Total revenue	$ 60	$ 13	$ 254	$ 51

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (12,240)	$ (6,529)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	100	85
Stock-based compensation expense	1,214	1,899
Amortization of convertible debt discount	1,399	1,318
Loss on extinguishment of convertible debt	24
Financing costs, debt restructuring	77
Changes in operating assets and liabilities:
Receivables	82	(196)
Prepaid and other current assets	(23)	407
Other assets		(92)
Accounts payable	(691)	269
Accrued compensation	(882)	854
Deferred revenue - related party	(1,542)	(6,647)
Deferred revenue - other	26
Other accrued liabilities	1,320	(2,336)
Deferred Rent	25	21
Net cash used in operating activities	(11,111)	(10,947)
Cash flows from investing activities:
Transfer to/from restricted cash		1,006
Capital expenditures	(1)	(112)
Net cash (used in) provided by investing activities	(1)	894
Cash flows from financing activities:
Proceeds from issuance of note payable	7,000
Proceeds from issuance of common stock	95	56
Payment of convertible debt	(50)
Payments for financing costs	(82)
Net cash provided by financing activities	6,963	56
Net decrease in cash and cash equivalents	(4,149)	(9,997)
Cash and cash equivalents at beginning of period	7,095	22,591
Cash and cash equivalents at end of period	2,946	12,594
Supplemental disclosure of non-cash activities:
Accrued interest capitalization	$ 1,044
Cumulative effect of adoption of new accounting standards		6,046
Stock issued in payment of officer bonus		$ 444

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 2,946	$ 7,095
Receivables	118	200
Other assets	412	389
Total current assets	3,476	7,684
Property and equipment, net	190	289
Other assets	92	92
Total assets	3,758	8,065
Current liabilities:
Accounts payable	323	903
Accrued clinical and cost of other studies	14	274
Accrued compensation	761	1,643
Deferred revenue - related party, current	415	1,900
Deferred revenue - other	209	183
Other accrued liabilities	1,099	563
Total current liabilities	2,821	5,466
Deferred rent	57	32
Deferred revenue - related party, non-current	33	90
Debt - non-current, net of discount	1,003
Debt - related party, non-current, net of discount	5,905
Convertible debt - non-current, net of discount	2,615	2,382
Convertible debt - related party, non-current, net of discount	14,786	12,626
Total liabilities	27,220	20,596
Commitments and contingencies
Shareholders' deficit:
Preferred stock, 5,000,000 shares authorized, none outstanding
Common stock, no par value; authorized shares: 50,045,765 at September 30, 2018; 35,045,765 at December 31, 2017; issued and outstanding shares: 15,219,793 at September 30, 2018; 15,170,200 at December 31, 2017	443,948	442,639
Accumulated deficit	(467,410)	(455,170)
Total shareholders' deficit	(23,462)	(12,531)
Total liabilities and shareholders' deficit	$ 3,758	$ 8,065